Key To Markets - Discussions

[KeyToMarketsUK]

Brent: price action appears more bearish.

• Brent oil rejected at the supply zone.
• Re-tested 200DMA.
• The lower end of the symmetrical triangle in focus.

TECHNICAL VIEW​

The near term price action likely being a sideways with in a tight trading range between 53.50 and 51. We believe the recent price action appears more bearish. The daily RSI and oscillator remain bearish.

Brent oil price down nearly 2% on Thursday session, from intraday high down nearly 3.8% and re-tested the 200DMA. Even though the price breaches the higher end of the symmetrical triangle, the supply zone seems between 53.50-53.70 rejected.

We repeatedly said, “Set of resistance zones are likely to play a significant role in the near and medium term. Initial zone seems at 53.50 and 53.70 above this 54.30 and 54.60 exists”.

In the near term, it has a support finds at 51.80 its 200DMA below this 51.50 and 51.10/51 are next in line. A move below 50.90 needed to re-test the 50.60, 50 and even 49.70. Resistances remain at 52.60/52.70, 53.10 and 53.50.

It is important to always keep in mind the risks involved in trading with leveraged instruments.

What is your Technical View?
Do you have a different idea? Please leave us a comment and get an answer from our professional analysts.​

 

[KeyToMarketsUK]

JPY crosses technical overview

• Safe heaven flows lifted the CHF and JPY last week as Geopolitical risk has increased as the US and North Korea.
• We have couple of buy trades after a reasonable correction in JPY crosses,according to our technical analysis.
• The ECB minutes are the key risk event in this week, EURCHF in lime light

EURJPY: Respected the parallel support​

• We have previously advised that EURJPY likely to pause between 128.00 and 127.60.
• Last Friday, it has made a low at 128.04 and change the direction.
• The daily RSI remain bearish and the oscillator appears a bearish H&S pattern.
• Near term resistances seems at 129.50,130.00 and 130.70.
• Further retracement expected if 50DMA taken out. In this case, 127 and 126/125.80 is an open target.
• View: Medium term potential support zone remains between 126 and 124. The weekly RSI remains oversold and oscillator turns bearish. We are a buyer between these levels.

USDJPY: Resistance moved down to 110.10 from 111.00​

• The cross has been moving lower for five-straight weeks and finally re-tested the 200EMA (weekly).
• USDJPY continues to form the lower lows and lower highs pattern on a medium term basis.
• Last week price action completed the breakdown target. (109.80-111=1.2, 109.80-1.2=108.60)
• Near term support zone remains between 108.60 and 108.10/108.
• Additional support finds at 107.50.
• Near term trading range remains between 108.00 and 111.
• From a technical point of view, a move below 108.00 needed to re-test the 107.50 and 107.00 levels.
• Resistances seems at 110.00 and 111.00
• View: We believe a rebound until holds the 107.50. Buying expected between 108.60 and 108.00. We are watching at 110.00 and 111.00

CHFJPY: Buying the dip​

Since four trading sessions it has managed to hold the 200MAs.
The daily oscillator turns bullish.
We forecast a bullish reaction in the term.
Supports moved to 113.20, 112.90 and 112.50.
Resistance seems at 113.65, 114.00 and 114.80/115.00
Bulls regain the strength if propelled above 113.60.
A move below 112.30 should open to 112, 111.60 and 111.00
View: Until the cross holds 112.30, a potential move expected for 115.00 and 115.50.

GBPJPY: Erased the 4-month trendline​

• GBPJPY erased the four-month ascending trendline.
• The recent price action remains in a falling channel.
• The oversold daily RSI might ignite a minor uptrend but limited to 144.00.
• Supports finds at 140.80, 140/139.80 and 139/138.70.
• Resistances seems at 142.40, 143 and 144.00.
• The daily oscillator remains bearish.
• View: We are waiting for 140.80 and 140 levels.
• Alternatively, bullish trade available if settles above 142.40 aims at 143, 143.30 and 143.80.

It is important to always keep in mind the risks involved in trading with leveraged instruments.

What is your Technical View?

Do you have a different idea? Please leave us a comment and get an answer from our professional analysts.​

 

[KeyToMarketsUK]

EURUSD: Rejected at a parallel resistance. Spotted with a H&S pattern.

EURUSD rose nearly 0.6% last week amid Geopolitical concerns.
The euro bullish sentiment retains the recent vertical rally.
Focus shift to the Fed and the ECB latest meeting minutes.

FUNDAMENTAL NEWS​

The empty economic calendar and the Geopolitical risk unable to derail the EURUSD vertical rally. Recent economic data were more positive than negative, supported the euro to outperform.

The July FOMC meeting minutes likely to reveal hint regarding timing of balance sheet normalization. The July ECB minutes unlikely to provide a new information to trigger a fresh rally.

Data Review:

Germany industrial production was down by 1.1%.
German exports increased by 0.7% and imports by 3.6% in June 2017 year on year.
In June 2017 French, industrial production index increased by 1.1% compared with the previous month.
Compared with June 2017, the Germany CPI rose by 0.4% in July 2017.
Industrial production down by 0.6% in euro area down by 0.5% in EU

Upcoming data:

Wed, Aug 16:

Final Q2GDP

July FOMC meeting minutes

The July FOMC meeting minutes likely to reveal hint regarding timing of balance sheet normalization.

Thu, Aug 17:

July ECB meeting minutes

The July ECB minutes unlikely to provide a new major information.

Fri, Aug 18:

Final July CPI and core CPI

TECHNICAL VIEW​

Post NFP the other week EURUSD off the high, retrace 23.6% and re-tested the 20DMA. Twice held the 20DMA then rebounded to 1.1847 last Friday.

The near-term trading range remains between 1.1850 and 1.1680. On Monday Europe session it ran to 1.1850 and rejected at a parallel resistance. Propel above 1.1850 expected for 1.1890/1.1900 initially. Alternatively, a move below 1.1680 needed to re-test the 1.1610/1.1600 and 1.1570.

On the four-hour chart, the price action spotted with a bearish H&S pattern. Shoulders seems at 1.1850, a neckline (blue) breakdown needed to complete the pattern target at 1.1630.

Tactically EURUSD is overbought, a dip is a good opportunity for the medium-term perspective, aiming at 1.20/1.2040 and 1.2300 finally.

It is important to always keep in mind the risks involved in trading with leveraged instruments.

What is your Technical View?

Do you have a different idea? Please leave us a comment and get an answer from our professional analysts.​

 

[KeyToMarketsUK]

Introducing the Key To Saving account​

Successful traders know that it is not necessary to always be in the market with open positions in order to be profitable, what is crucial is to be in the markets at the right time.

What happens to your money when sitting on your Metatrader 4 account while you are waiting for the right opportunity to trade? Nothing.

This is why Key To Markets is offering the perfect solution for you: Key To Savings Account.

 

[KeyToMarketsUK]

GBPUSD: Key support zone in focus.

• UK inflation stalls at 2.6% in July 2017, unchanged from June 2017.
• The cable lost 0.90% on Tuesday.
• Re-tested the five-month ascending trend line.

Tuesday report showed weak inflation at 2.6% figure below economists expectations 2.7%. Following the report, the pound fell as the weak inflation likely to pressure the BOE in preparing the ground for a rate hike.

The other week BOE policy decision printed on the dovish side, pressure the GBP. Focus shifts back to politics rather than economic data.

Upcoming data:

Wed, Aug 16:

June labor market

Barclays: Average weekly earnings 1.9% y/y; consensus: 1.8% and an unchanged unemployment rate at 4.5%.

July FOMC meeting minutes

The July FOMC meeting minutes likely to reveal hint regarding timing of balance sheet normalization.

Thu, Aug 17:

Retail sales

Barclays: Sales data are likely to show strong growth in July 1.1%.

TECHNICAL VIEW​

The cable continues the fall for the third straight week currently sits tad below 20WMA. It has retraced more than 30.0% (Oct-July rally) and 61.8% (1.2650-1.3268 rally), manages to hold the key MAs on the daily chart.

Yesterday’s price action drift the cable to the five-month ascending trend line and 100MA. The daily RSI and oscillator remain bearish.

Supports moved to 1.2840, 1.2810/1.2800 it’s 100.0fe and 1.2700.

A move below 1.2770 needed to forecast further retracement to 1.2720 it’s 38.2 fibs and 1.2700 early February high.

Resistance s seems at 1.2900, 1.2950 and 1.3030. Until remains, 1.3030 selling the rally is the favorable trade in the near term.

Medium term potential support zone finds at 1.2640 and 1.2580 (below chart). At this point, we forecast a bullish reaction.

It is important to always keep in mind the risks involved in trading with leveraged instruments.

What is your Technical View?

Do you have a different idea? Please leave us a comment and get an answer from our professional analysts.​

 

[wisefoolx]

http://www.trade2win.com/boards/forex/221462-understanding-bollinger-bands-2.html

 

[KeyToMarketsUK]

AUDUSD: Facing resistance at the descending trendline.

On the back of the strong base metals and a sell-off in the USD investors migrate to the higher yield currencies like AUD and NZD on Wednesday session.

• Strongest one- day rise.
• Daily oscillator turns to bullish.
• Potential resistance seems between 0.7970 and 0.79990.

AUDUSD rose nearly 1.5% and erased two-week descending trend line, but fails to breach the other (below chart) on today Asia session. Even the July employment data unable to push the cross above.

TECHNICAL ANALYSIS​

After a spectacular run, the daily oscillator turns to bullish. It has a potential resistance seems between 0.7970 and 0.79990 rounded to 0.8000. The weekly 200MAs seems at 0.7980 and 0.7990.

Aussie bulls can feel comfortable only after crossing these hurdles decisively! In this case, 0.8050/0.8060 July high and 0.8150 expected.
Supports moved to 0.7880, 0.7830 and 0.7800.

Additional support finds at 0.7780 it’s 38.2% (May-July rally) below this 0.7750 its 50DMA and an earlier breakout level 0.7740. A move below 0.7740 needed to retrace further to 0.7690 it’s 50.0% fib which coincides with 100DEMA.

View: If the descending trend line rejected the cross, likely to re-test the earlier breakout descending wedge sits around 0.7900-0.7880.

It is important to always keep in mind the risks involved in trading with leveraged instruments.

What is your Technical View?

Do you have a different idea? Please leave us a comment and get an answer from our professional analysts.​

 

[wisefoolx]

What is your Technical View?

Old school TA is subjective and calculated with babymaths. The coming TA evolution will see the retail trader have access to objectively calculated TA removing the sillyness of hand drawn lines.

 

[KeyToMarketsUK]

What is your Technical View?

Old school TA is subjective and calculated with babymaths. The coming TA evolution will see the retail trader have access to objectively calculated TA removing the sillyness of hand drawn lines.

Great! Show us an example

 

[wisefoolx]

Great! Show us an example

I will be dedicating a thread to this in the not too distant future but let's start with trendlines.

They are all utterly subjective, whether you connect higher lows to other higher lows of higher highs to other higher highs or any combination you like, they are all as valid as each other so why this so called ' rule ' of connecting higher lows to establish an uptrend.

Why not just use linear regression ? Simple, objective, unbiased.

 

[EnlightenedJoe]

Why not just use linear regression ? Simple, objective, unbiased.

Sounds impressive. Maybe it's just another mirage like all those that came before it.

Trends are not useful in practice since most trend followers are shaken out of them. So it probably doesn't matter what the trend is since people can't really benefit from it.

 

[KeyToMarketsUK]

I will be dedicating a thread to this in the not too distant future but let's start with trendlines.

They are all utterly subjective, whether you connect higher lows to other higher lows of higher highs to other higher highs or any combination you like, they are all as valid as each other so why this so called ' rule ' of connecting higher lows to establish an uptrend.

Why not just use linear regression ? Simple, objective, unbiased.

I will give a couple of reasons why I like the standard technical analysis:

1) Because technical analysis is about interpretation of the market movements and conditions.
If everybody would look for, for example, a perfect "Double top" they would have traded maybe once in a year (and probably with a loss since it was too obvious).

With the experience you will get better and better with your interpretations and you will spot powerful patterns around the markets.

2) To be successful you just need to "trade with the money", spot a pattern that everybody is seeing and trade with it.
Try this experiments: draw some horizontal lines at the psychological levels, you will see that the price always reacts at these levels. Why?
Because everybody considers them.
Nobody sees the result of some weird indicators

 

[wisefoolx]

Can someone answer me this question:


Prices are produced from numbers (maths) , so give me one good reason why price indicators should not also be produced from maths (and pretty simple maths really) ?

 

[wisefoolx]

Sounds impressive. Maybe it's just another mirage like all those that came before it.

Trends are not useful in practice since most trend followers are shaken out of them. So it probably doesn't matter what the trend is since people can't really benefit from it.

Linear regression is standard maths = objective.

' Trendlines ' are handdrawn = subjective.

I know which I prefer.

 

[KeyToMarketsUK]

EURUSD update 2: We have four bearish patterns

Account of the monetary policy August meeting summary:
In the minutes from July’s ECB policy meeting, there were concerns over risk of Euro over-shooting.

The accounts stated, “Acknowledged the strengthening of the economic expansion and confirmed that the risks to the growth outlook were broadly balanced”.

Regarding the economic and monetary developments in the euro area, “Financial conditions had remained broadly favourable, despite some repricing across financial markets”.
In the euro area, the economic expansion continued to be solid and broad based, mainly driven by domestic demand.

Regarding Monetary policy stance and policy considerations, “it was generally judged paramount at this stage to avoid sending signals that could be prone to over-interpretation and might prove premature”.
Overall, financial conditions remained supportive of the economic expansion, although the repricing in some financial market segments, in particular in foreign exchange markets and the bond markets, had led to some deterioration since the previous meeting.

Regarding exchange rates, “while it was remarked that the appreciation of the euro to date could be seen in part as reflecting changes in relative fundamentals in the euro area vis-à-vis the rest of the world, concerns were expressed about the risk of the exchange rate overshooting in the future”.

Market participants shift the focus to next week’s Jackson Hole meeting.
According to Chris Turner at ING, “We believe Draghi will not be making any new policy announcements during his Jackson Hole speech next week may have come as a disappointment to EUR bulls”.

Weekly data Review:
• Industrial production down by 0.6% in euro area and in EU down by 0.5% .
• Germany prelim GDP up 0.6% in the Q2 of 2017.
• GDP rose by 0.6% in both the euro area and the EU.
• Euro area annual inflation was 1.3% in July 2017, stable compared with June 2017.
• European Union annual inflation was 1.5% in July 2017, also stable compared to June 2017.

TECHNICAL VIEW​

EURUSD fell as low as 1.1660 in the European session and off the lows on NY session. We have previously advised that price action appears bearish. The near-term trading range remains between 1.1850 and 1.1680.

As we see the four-hour chart, we have four bearish patterns.
• Symmetrical triangle
• Descending wedge
• Lower low and lower high
• Bearish H&S pattern

The daily RSI and oscillator remain bearish. We believe a breakdown below the lower end of the symmetrical triangle needed to retrace further to 1.1620/1.1610.
The 38.2% fib finds at 1.1600 (1.1118-1.1910 rally) fail to hold might drag to 1.1510 it’s 50DMA and coincides with 50.0% fib.
The medium term support finds at 1.1510 and 1.1470 levels.
We believe it has a potential to re-test to 38.2% and 50.0% levels before the September ECB meeting.
Resistances seems at 1.1800, 1.1850 and 1.1900.
The continuation of lower low and lower high pattern aiming at 1.1620/1.1600 levels.
Tactically EURUSD is overbought, a dip is a good opportunity for the medium-term perspective, aiming at 1.20/1.2040 and 1.2300 finally.

It is important to always keep in mind the risks involved in trading with leveraged instruments.

What is your Technical View?

Do you have a different idea? Please leave us a comment and get an answer from our professional analysts.

 

[KeyToMarketsUK]

USDJPY: The elevated level cast on Fed Chair Yellen speech at Jackson Hole.

Geopolitical risk, Dovish FOMC minutes and Trump administration concerns dragged the USDJPY to the bottom of the channel.

This week market participants focus on Yellen and Draghi’s speeches at Jackson Hole Symposium. Besides, Japan key economic data releases this week scheduled on Friday. Japan CPI and Tokyo CPI are unlikely to drive the cross.

Data Preview:

Japan CPI:

Barclays: We estimate that nationwide core CPI inflation strengthened to 0.5% y/y (consensus: 0.5%, June: 0.4%) in July.

Jackson Hole Symposium:

Fed Chair Yellen speech at Jackson Hole is the key driver this week apart from politics.

Technical view​

We believe USDJPY to move in a sideways this week. The Weekly price action has tested the 200WEMA again. Recent price action printed a top at 111.00, the level to watch here is 108.60 and 108.10 rounded to 108.00.

Until the price close above 108.00, we believe the price action trying to form a base between 108.60 and 108.10 levels. On the four-hour chart, the oscillator turns bullish. In this case, 110.00 and 111.00 is an open target.

Alternatively, a move below 108.00 needed to retrace further to 106.50 (61.8% 98.93-118.65 rally).

The cross has been moving lower for six-straight weeks. It has continued to form the lower lows and lower highs pattern on a medium-term basis.

Over the past four-months, USDJPY has been in a tight range between 108-114.50. Using a higher time frame, selling on a rise favors the trend.

View: We have previously advised “Buying expected between 108.60 and 108.00. We are watching at 110.00 and 111.00”. Last Friday, the trade was activated. Our near-term view on USDJPY is unchanged.

The elevated level of the USDJPY cast on Fed Chair Yellen speech at Jackson Hole.

It is important to always keep in mind the risks involved in trading with leveraged instruments.

What is your Technical View?

Do you have a different idea? Please leave us a comment and get an answer from our professional analysts.​

 

[KeyToMarketsUK]

EURUSD: We believe Draghi likely to disappoint the euro bulls at Jackson Hole

• Renewed Euro strength witnessed as dollar drifts again.
• Political uncertainties continuing to weigh on the dollar.
• Yellen and Draghi’s speeches at Jackson Hole Symposium.

FUNDAMENTAL NEWS​

ECB’s comments and Barcelona terrorist attack were the key factors for euro’s resilience last week. In the minutes from July’s ECB policy meeting, there were concerns over risk of Euro over-shooting.

Market participants shift focus to the Yellen and Draghi’s speeches at the 2017 Jackson Hole Symposium scheduled between August 24-26.
Here are the analysts forecast on Draghi speech at Jackson Hole:

Barclays: We do not think that Draghi will provide meaningful hints on monetary policy.
HSBC: Reuters, citing ECB sources, suggests he is unlikely to announce any policy change.
Morgan Stanley: Media reports that he will not deliver a new policy message at Jackson Hole, taking risks of a policy surprise out of the equation.

Data Review:
• Industrial production down by 0.6% in euro area and in EU down by 0.5%.
• Germany prelim GDP up 0.6% in the Q2 of 2017.
• GDP rose by 0.6% in both the euro area and the EU.
• Euro area annual inflation was 1.3% in July 2017, stable compared with June 2017.
• European Union annual inflation was 1.5% in July 2017, also stable compared to June 2017.
• In the minutes from July’s ECB policy meeting, there were concerns over risk of Euro over-shooting.

Upcoming data:
Tue, Aug 22
German ZEW Economic Sentiment
Wed, Aug 22
ECB President Draghi speaks at the 6th Lindau Meeting on Economic Sciences, in Germany.
Germany and EZ Flash Manufacturing PMI’s
Barclays: August flash PMIs data should come in broadly in line with the previous month, as growth momentum across the euro area stabilizes.
Fri, Aug 25
Germany Ifo Business Climate

TECHNICAL VIEW​

EURUSD closed above the descending wedge and settles above 1.1800 and 20DMA again. But keeping Jackson Hole meeting in mind the levels to watch here are 1.1850 and 1.1900.
On the hourly chart (H1) the price action gave an upside breakout through the inverse H&S pattern and a symmetrical triangle (below chart). The pattern target aiming at 1.1845 coincides with the parallel resistance on the four-hour chart seems at 1.1850.

The daily oscillator turns bullish but the RSI keep making lower low and lower high.
Last week’s price action formed a base between 1.1680 and 1.1660 and changed the direction yesterday. We believe Draghi likely to disappoint euro bulls at Jackson Hole, as a result EURO is biased to the downside risk. Our near-term view on EURUSD is unchanged.
Support moved to 1.1770, 1.1730 and 1.1680/1.1680.A move below 1.1660 needed to retest the key fib levels.
The 38.2% fib finds at 1.1600 (1.1118-1.1910 rally) fail to hold might drag to 1.1530 it’s 50DMA and coincides with 50.0% fib.

Tactically EURUSD is overbought; a dip is a good opportunity for the medium-term perspective, aiming at 1.20/1.2040 and 1.2300 finally.

It is important to always keep in mind the risks involved in trading with leveraged instruments.

What is your Technical View?

Do you have a different idea? Please leave us a comment and get an answer from our professional analysts.
​

 

[KeyToMarketsUK]

EURGBP: The levels to watch here are 0.9230 and 0.9260.

We believe central bank divergence and political headwinds are likely to dominate
EURGBP has been moving higher trajectory for four straight months.
UK GDP and Draghi speech at Jackson Hole are the key risk events.

FUNDAMENTAL NEWS​

Central Bank themes and politics are the key drivers in the recent days rather than economic data. Last week economic data was mixed.

This week speeches at Jackson Hole and next week’s second round of Brexit negotiations are the two events offering fresh risk to the FX markets and for GBP especially against EUR,JPY and USD.

Event1: Market participants shift focus to the Yellen and Draghi’s speeches at the 2017 Jackson Hole Symposium scheduled between August 24-26.

Here are the analysts forecast on Draghi speech at Jackson Hole:

Barclays: We do not think that Draghi will provide meaningful hints on monetary policy.

HSBC: Reuters, citing ECB sources, suggests he is unlikely to announce any policy change.

Morgan Stanley: Media reports that he will not deliver a new policy message at Jackson Hole, taking risks of a policy surprise out of the equation.


Event2: The second round of Brexit negotiations begins next week on August 28.

According to Adarsh Sinha at Merrill Lynch, “A speedy agreement on the ‘divorce’ bill and EU citizens’ rights would facilitate new trade deal talks, which if successful, would be bullish for GBP and potentially pave the way for UK rate hikes”.

Data review:

CPI was 2.6% in July 2017, unchanged from June 2017 on YoY basis.

PPI Input 0.0% vs. -0.3%, forecast 0.4%.

House Price Index was 4.9% vs 5.0%, forecast 4.3%.

ILO Unemployment Rate 4.4% vs. 4.5%, forecast 4.5%

Jobless Claims Change -4.2k vs. 3.5.

Employment Change 125k vs. 97k.

Retail sales 0.3% vs 0.3%, forecast 0.2%.

Upcoming data:

Thu, Aug 24

2nd estimate GDP

Barclays: This week’s GDP print should confirm that the subdued economic growth in the UK.

TECHNICAL VIEW​

The higher low and higher high pattern pushing the cross higher in a well-defined uptrend. Supports moved to 0.9100, 0.9050 and 0.8990.

The selling pressure looms below 0.9050 but strengthens only below 0.8990. A move below 0.8990 to retrace further to 0.8900/0.8890.

The daily RSI remain overbought and the oscillator remains bearish.

VIEW: The levels to watch here are 0.9230 and 0.9260.

It is important to always keep in mind the risks involved in trading with leveraged instruments.

What is your Technical View?

Do you have a different idea? Please leave us a comment and get an answer from our professional analysts.​

 

[KeyToMarketsUK]

EURCAD: Spotted with an inverse H&S pattern.

• Consolidating in a narrow range.
• Spotted with an inverse H&S pattern.
• Draghi’s speech and NAFTA developments are the key drivers.
  

Data review:

Canada Retail sales rose for the fourth consecutive month in June, edging up 0.1% to $49.0 billion.

Risk events:

Market participants shift focus to the Draghi’s speech at the 2017 Jackson Hole Symposium scheduled between August 24-26.
The NAFTA negotiations began last week (August 16) between US, Canada and Mexico. They wrapped with up their first round of talks on Sunday.

TECHNICAL VIEW​

EURCAD retested the 100EMA twice on the daily chart and on the monthly chart re-tested the 200EMA twice. It has been consolidating between 1.4880 it’s 50.0% (June-July fall) and 1.4725 for five straight sessions.

A breakout above 1.4880/1.4900 opens up to 1.4960 and 1.5000 in the near term. Further extension possible if the neckline taken out, in this case, 1.5090 and 1.5200 are possible. Shoulders seem at 1.4725.

Supports moved to 1.4800, 1.4725 and 1.4600. Fails to hold the 100DEMA, further retracement expected to 1.4650 and 1.4610.

It is important to always keep in mind the risks involved in trading with leveraged instruments.

What is your Technical View?

Do you have a different idea? Please leave us a comment and get an answer from our professional analysts.​

 

[KeyToMarketsUK]

EURAUD: Bullish patterns visible on the daily and weekly charts.

• EURAUD has been facing resistance at 200EMA on the monthly chart.
• Long term descending trend line in focus.
• Bullish patterns visible on the daily and weekly charts.

TECHNICAL ANALYSIS​

EURAUD continues to trade higher this week, but facing resistance at the three-month and longer term descending trend line.In the 1H of 2017, EURAUD rose more than 10%.

As shown on the below weekly chart, the price action appears an inverse H&S pattern. A breakout above the 3-month descending trend line opens to the way to long term descending trend line. It is worth to watch EURAUD in the near and medium term perspective. If propel above the long term trend line opens to 1.5330 and 1.5400 initially, later 1.5640 and 1.5700 possible.

Medium term potential support finds between 1.4440 and 1.4330. At higher time frames (weekly &monthly) the oscillator remains bullish.

If we turn to the daily chart, the price pattern appears same as the weekly. In addition to that, symmetrical triangle also spotted. On Thursday session, the 3month descending trend line rejected the cross.

It has a resistance zone seems between 1.5020 and 1.5075. If propel above 1.5100 opens to 1.5200 and 1.5230 in the near term. Further extension possible if the longer term descending trend line breaches. In this case, 1.5330 is the immediate target. Near term, support finds at 1.4890, 1.4820 and 1.4730. A move below 1.4700 needed to re-test 1.4630 a parallel support.

The RSI appears bearish.

View: We are sidelines waiting for new setup either to buy the dip or buying the breakout.

It is important to always keep in mind the risks involved in trading with leveraged instruments.

What is your Technical View?

Do you have a different idea? Please leave us a comment and get an answer from our professional analysts.
​