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tradefx9
2018-1-15 05:46 PM
FOREX NEWS: UNITED STATES CELEBRATES MARTIN LUTHER KING DAY. LOW TRADING VOLUMES EXPECTED

EUR/USD


Forex News: Friday’s US data was mixed and did little to stop the assault of the Euro, which was boosted by positive news coming from the German political scene. The pair climbed strongly for the entire day, finishing the session more than 150 pips higher.




Technical Outlook

The pair is on a massive bull run and is headed towards the long term resistance at 1.2280 but until it gets there, we will most likely see a pullback. Usually after a strong climb price tends to retrace or to consolidate in a tight range due to profit taking (buyers close their positions by selling). The Relative Strength Index is also overbought, increasing the chance of a move lower but after the possible retracement is over, we expect higher prices.

Fundamental Outlook

Today banks in the United States will be closed in observance of Martin Luther King Day and no economic data will be released. Also, Europe will not release any data today and this may lead to a slow, ranging session.

GBP/USD

Friday the US Dollar remained under heavy selling pressure for the entire trading session and the pair posted massive gains, reaching a high at 1.3745.



Technical Outlook

The overall environment is clearly bullish but today it is very possible to see a move lower, basically for the same reasons as outlined above. The Relative Strength Index is overbought and usually after a strong move up, price tends to retrace south due to profit taking. After the pullback is complete we expect the pair to move higher unless the US Dollar gets a boost from unexpected news.

Fundamental Outlook

Similar to the Euro and US Dollar, the Pound will not be affected today by any important economic releases, so the technical aspect will prevail.

tradefx9
2018-1-16 06:15 PM
FOREX NEWS: BULLISH RUN CONTINUES. OVERBOUGHT LEVELS SIGNAL PULLBACKS

EUR/USD


Forex News: Price action remained bullish yesterday but without any major developments coming from the fundamental scene. The pair reached the long term resistance at 1.2280 and bounced lower.




Technical Outlook

The massive bullish rally seen last week and yesterday has brought the pair into the resistance at 1.2280 and the Relative Strength Index in deep overbought territory. These two facts will most likely trigger a pullback today but after its completion, we expect the pair to break 1.2280 – 1.3000. If that happens, the pair will be in “uncharted” territory until it reaches the zone around 1.2600.

Fundamental Outlook

Both the Euro and US Dollar have a slow economic day ahead, without any notable releases, so the technical aspect will take center stage.

GBP/USD

The US Dollar couldn’t make any advances against the Pound, although some attempts were made, so the pair continued higher. This was a continuation of the momentum started last week, not the result of new developments on the fundamental scene.




Technical Outlook

The bulls are in clear control but the possibility of a retracement lower is higher than it was yesterday, due to the long distance travelled upwards in a short period of time. The RSI and Stochastic are extremely overbought, thus increasing the chances of a pullback. The levels to watch are 1.3745 as potential support and place where bullish movement may resume and 1.3860 as resistance.

Fundamental Outlook


The day’s main event will be the release of the British Consumer Price Index, scheduled at 9:30 am GMT and expected to show a yearly change of 3.0% compared to the previous 3.1%. This is the main gauge of inflation, showing changes in the price that consumers pay for the goods and services they purchase. The indicator usually strengthens the Pound if it posts readings above forecast.


tradefx9
2018-1-17 05:51 PM
FOREX NEWS: RETRACEMENTS FINALLY HAPPENING. OVERALL BIAS STILL VERY BULLISH

EUR/USD


Forex News: The pair finally retraced lower during yesterday’s trading session after failing to break 1.2280 resistance. The move was mostly technical as no major economic data was released for either currency in the pair.



Technical Outlook

Several candles have shown long wicks on their upper part, piercing through 1.2280 and then retreating below the level. This is a clear sign that 1.2280 cannot be broken for the time being, so we expect the retracement started yesterday to extend below 1.2220, which is a minor support. A good place for upside movement to resume is somewhere around 1.2200 but if that barrier is broken, the pair will be headed into the 50 EMA.

Fundamental Outlook

The European Final Consumer Price Index will be released today at 10:00 am GMT, showing changes in the price paid by consumers for the goods and services they purchase. This is the main gauge of inflation but the Final version tends to have a lesser impact than the previous two versions; however, a higher change than the forecast 1.4% usually strengthens the Euro and takes the pair higher.

On the US Dollar side the only notable release will be the Industrial Production, scheduled at 2:15 pm GMT. The indicator has a low-to-medium impact and higher numbers than the forecast 0.3% have a positive influence on the greenback.

GBP/USD

Yesterday the British CPI matched the market consensus so the release didn’t have a strong impact on the Pound and the pair finally moved lower after a long period of bullish action.



Technical Outlook

Price action created resistance at 1.3820 and the pair dropped into the minor support at 1.3745 but the Relative Strength Index and the Stochastic are still close to overbought levels so it is very possible to see a continuation of this retracement below 1.3745. The overall bias is still clearly bullish, so we expect a break of 1.3820 after the pullback is over.

Fundamental Outlook

The United Kingdom didn’t schedule any notable economic data releases for today so the technical aspect will decide the pair’s direction.

tradefx9
2018-1-18 07:10 PM
FOREX NEWS: THE MARKET ENTERS CONSOLIDATION PHASE. STRONG BREAKOUTS ON THE HORIZON

EUR/USD


Forex News: The Final version of the European CPI was in line with expectations, posting a 1.4% change and the pair remained inside a range for most of yesterday’s session.



Technical Outlook

Price spiked above 1.2280 but immediately retraced below the level and dropped into the support at 1.2195. This type of behaviour means that the pair is likely to spend an extended period of time in a consolidation phase between 1.2195 and 1.2280 but once a clear breakout occurs, price will likely move in that direction for a longer period of time.

Fundamental Outlook

At 1:30 pm GMT the US Building Permits come out, showing how many permits were issued during the previous month. This is a good gauge of construction activity because getting a permit is the first step in starting a building and usually higher numbers strengthen the US Dollar but the impact is not always notable. Today’s forecast is 1.29 Million, very close to the previous 1.30 Million.


GBP/USD

Similar to the EUR/USD, the Cable showed mixed movement yesterday and remained confined in a relatively small range after a failed attempt to break resistance.



Technical Outlook

The overall bias remains clearly bullish but it seems the pair is taking a breather and is consolidating between 1.3745 and 1.3820. Until a breakout occurs we expect to see choppy movement and once it does, the pair will extend into 1.3860 or the 50 period Exponential Moving Average, depending on the direction of the breakout.

Fundamental Outlook

The Pound will not be affected by major economic data today so the technical aspect will be the main price driver.

tradefx9
2018-1-19 05:43 PM
FOREX NEWS: UPTREND STALLS. BRITISH RETAIL SALES EYED FOR POUND’S NEXT MOVE

EUR/USD


Forex News: The pair continued to trade in a range yesterday and showed a bounce at resistance followed by a failed break of support. The US data was mixed and didn’t have a notable impact on price action.



Technical Outlook

The uptrend is still strong but for the time being the pair remains in consolidation phase until 1.2195 support or 1.2280 resistance is broken. It must be noted that the bulls have tried several times to break 1.2280 and each time the attempt resulted in a huge pin bar candle (very long wick, small body), which is a sign of strong rejection. If the pair descends again below 1.2195 we expect to see an encounter with the 50 EMA.

Fundamental Outlook

Today’s only notable release for the pair will be the University of Michigan Consumer Sentiment, scheduled at 3:00 pm GMT. This survey gauges the opinions of consumers regarding current and future economic conditions and acts as a leading indicator of consumer spending. Higher readings indicate optimism and usually strengthen the US Dollar but the impact is limited if the actual number comes close or matches expectations. Today’s forecast is 97.0 while the previous was 95.9.

GBP/USD

The pair created a new top at 1.3942 but retraced lower and at the time of writing it is hovering close to the previous resistance at 1.3860. The outlook remains bullish but short term action is mixed.




Technical Outlook

The Relative Strength Index is moving lower but price is still moving higher. This is a bearish divergence that warns of a potential move south, which will have increased chances of happening if the pair moves below 1.3860. Such a scenario will have 1.3820 – 1.3800 as first target but if the pair stays above 1.3860, we expect another move towards 1.3942.

Fundamental Outlook

At 9:30 am GMT the British Retail Sales come out, showing changes in the total value of sales made through retail stores. Such sales represent the main part of consumer spending, thus higher numbers can have a positive impact on the currency. Today’s expected change is a drop of -0.8% from the previous 1.1%.

tradefx9
2018-1-22 06:00 PM
FOREX NEWS: RANGE-BOUND TRADING AMID A LACKLUSTER FUNDAMENTAL SCENE
  
EUR/USD


Forex News: Friday we saw mixed price action and yet another move into resistance that resulted in a bounce lower. The US Consumer Sentiment survey posted a lower than expected reading but the US Dollar still gained against the Euro and overall price remained in range-mode.



Technical Outlook

Price bounced several times at 1.2280 resistance and this suggests that we will see moves lower before bullish price action can resume. For today we expect to see a slow and ranging session, confined within the channel created by 1.2280 and 1.2195. A break of the 50 period EMA will make 1.2100 the next target but it will probably take more than one day to reach it.

Fundamental Outlook

Today the Eurogroup Meetings will take place in Brussels but other than that, the fundamental scene is calm and without major economic data.

GBP/USD

Friday the pair made another attempt to break the previous high located at 1.3942 but this resulted in a perfect bounce lower, thus establishing the level as strong resistance for the future.



Technical Outlook

The pair showed several times that it is overextended and the last bounce at 1.3942 is indicative of an extended move to the downside. The first target for today will be 1.3820, followed by the 50 period Exponential Moving Average. If the bulls take price higher from the current level and break 1.3942, we don’t expect strong moves above it.

Fundamental Outlook

The Pound will not be affected today by economic data so the technical aspect will take center stage.


tradefx9
2018-1-23 06:38 PM
FOREX NEWS: EURO STALLS, POUND GAINS MOMENTUM. WEF MEETINGS IN THE SPOTLIGHT

EUR/USD

Forex News: The pair remained inside the range for the entire yesterday’s trading session, mostly due to the lack of any fundamental developments or economic data releases. Trading was choppy and without important advances to either side.



Technical Outlook

The balance of power doesn’t favour either side as long as price remains confined inside the channel created by 1.2195 support and 1.2280 resistance. Usually when a horizontal channel is broken, price continues to move in the direction of the break for an extended period of time and because an uptrend is in place, we favour a bullish break, followed by upside movement. Today’s price action will likely be influenced by the WEF Meetings, so caution is advised.

Fundamental Outlook

The German ZEW Economic Sentiment will be released today at 10:00 am GMT, showing the opinions of about 300 German investors and professional analysts about a 6-month outlook for the German economy. The survey acts as a leading indicator of economic health but the impact is not always notable; nonetheless, numbers above the expected 17.8 can strengthen the Euro. Also, today is the first day of the World Economic Forum Annual Meetings held in Davos.


GBP/USD

The bias was mostly bullish yesterday and the Pound bulls made notable advances, breaking the previous top at 1.3942.



Technical Outlook

The break of 1.3942 marks the resumption of the uptrend and indicates that higher prices will probably follow. The next major hurdle is the psychological resistance at 1.4000, which is a big, round number that will very likely generate a bounce lower if it’s touched. It must be noted that the Relative Strength Index is again close to overbought and this increases the chances of a move lower.

Fundamental Outlook

The Pound will not be affected by major economic data today but United Kingdom representatives will attend the WEF Meetings and this may be a reason for increased volatility.

tradefx9
2018-1-25 12:34 AM
FOREX NEWS: US DOLLAR TAKES ANOTHER BEATING. HIGHER PRICES TO FOLLOW?

EUR/USD


Forex News: The pair remained in a tight range for most of yesterday’s trading session but later in the afternoon bullish pressure increased and we saw a break of the horizontal channel. However, it remains to be seen whether this break is true or not.



Technical Outlook

The move outside the horizontal channel created by 1.2195 support and 1.2280 resistance cannot be considered a true break at least at the time of writing. If it will turn out to be a clear break, then 1.2280 will become support and the next target will become 1.2350 followed by 1.2400. A more important resistance is located at 1.2570 but that’s a distance too big to be travelled over the course of one day.

Fundamental Outlook

We have a slow day ahead, with some Eurozone data making the headlines: at 9:00 am GMT the European Manufacturing and Services PMIs will be released, showing the opinions of purchasing managers about business conditions in the respective sector. The surveys act as leading indicators of optimism and economic health but the impact is often overlooked by market participants if the actual reading doesn’t differ a lot from expectations. The forecast for the Manufacturing PMI is 60.4 and for the Services PMI is 56.5.

GBP/USD

The US Dollar remained under pressure yesterday and allowed the Pound to take the pair into 1.4000 territory. The move was mostly technical but the USD weakness played an important role.



Technical Outlook

At the time of writing the pair is hovering near 1.4000, which is a major psychological level that may trigger a bounce lower. The overall bias is clearly bullish and the pair is in an uptrend so all moves south should be treated as retracements as long as price remains above the 50 EMA. The first target for the day is 1.4050 if 1.4000 turns into support.

Fundamental Outlook

Today’s highlight for the Pound will be the Average Earnings Index, scheduled for release at 9:30 am GMT. The index shows changes in the wages paid by employers for labor and acts as a leading indicator of inflation because when businesses increase the price they pay for work, they usually increase the price of their products. The expected change is 2.5%, same as previous and higher numbers usually strengthen the Pound.


tradefx9
2018-1-25 05:39 PM
FOREX NEWS: BREXIT IN THE LIMELIGHT ONCE AGAIN. POUND AND EURO POST MASSIVE GAINS

EUR/USD


Forex News: Yesterday the US Dollar remained under heavy selling pressure for the entire trading session and the pair made huge advances, reaching the resistance zone around 1.2400.



Technical Outlook

Part of yesterday’s move was triggered by new hints that the United Kingdom – European Union divorce will be smooth, so both the Euro and the Pound strengthened against the US Dollar. The pair is now sitting at a big round number (1.2400) which acts as resistance and this calls for a retracement. Some of yesterday’s buyers are likely to close out their positions due to profit taking and this normally generates a move lower. The overall bias is clearly bullish so after the pullback, we expect higher prices.

Fundamental Outlook

All eyes will be on the Euro today for the ECB Interest Rate announcement scheduled at 12:45 pm GMT and followed shortly after by Mario Draghi’s press conference (1:30 pm GMT). The rate is not expected to change (currently 0.00%) but if the ECB President will hint towards changes to the QE program, then the Euro is likely to show strong volatility.


GBP/USD

Positive British jobs data combined with hopes of a smooth Brexit were the main ingredients for yesterday’s huge rally that took the price above 1.4200. The pair is now prone to a move lower.



Technical Outlook

The pair is massively overextended and once the bullish momentum dims down we expect to see a pullback based on profit taking. The Relative Strength Index and Stochastic are both above their respective overbought levels, thus supporting a bounce lower. Of course, the main bias is clearly bullish so we will most likely see higher prices after the retracement.

Fundamental Outlook

The United Kingdom didn’t schedule major data releases for today so the technical aspect will decide the pair’s direction.

tradefx9
2018-1-29 10:06 PM
FOREX NEWS: BALANCE TILTS TOWARDS THE SHORT SIDE AS PULLBACKS CONTINUE

EUR/USD


Forex News: Friday the Advance version of the US Gross Domestic Product showed a very disappointing figure of just 2.6%, compared to the expected 3.0% but the previous value was revised better. All this generated a mixed trading session, with choppy movement.
  


Technical Outlook

Bullish momentum shows signs of slowing down but the pair is facing support at 1.2400. This level will probably generate a bounce higher but we don’t expect to see a move above last week’s high located at 1.2540. On the other hand, a break of 1.2400 will send the pair into the 50 EMA but the oscillators lack momentum and the fundamental scene will be mostly quiet today, which are factors that may contribute to a low volatility session.

Fundamental Outlook

The day lacks any notable economic data releases for both currencies, so we expect slow or possibly ranging price action.

GBP/USD

Price made another attempt to climb into 1.4300 resistance but returned lower later during Friday’s trading session. This may mark the beginning of a ranging period.



Technical Outlook

After the huge climb started at 1.3450, the pair is finally showing signs of slowing down as seen by Friday’s failed attempt to move into 1.4300 and the consequent drop below 1.4200. Today we will most likely see a drop into 1.4100 and possibly into the 50 EMA but the overall outlook is clearly bullish so the current move should be treated as a retracement, not a reversal.

Fundamental Outlook

Similar to the other two currencies, the Pound will not be affected by economic data today, so the technical aspect will decide the pair’s behavior.

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