the daily chartist

The Euro with weak attempt to reverse

published 11 months ago
EUR/USD Daily

 As the forecast's execution goes on, we saw at the end of the week slight attempts from the pair to break the selling cycle and to make a move up. The attempt was made on Friday with the mixed fundamentals for the US economy and the battle between the Bulls and Bears ended with a draw. The price went above 1.15282 for a moment, but it slipped down shortly and closed under the level. On Thursday the price reached 1.14632 and from there the push started up, so there may be an attempt for the Euro Bulls to climb up towards 1.15926 for a correction before moving down further and to resume the movement down towards 1.14632 again and further below to 1.13005. Stoch and CCI are hinting for that push-up, so longs will be reasonable and all will go as planned if the goes above 1.15282 and closes above. This is key to watch for that decision to counter the trend and to enter long to catch the correction. The wisest thing is to wait and see if this is going to occur. If this fails, the Bears will take control again over the price and the selloff will continue. 

Gold drifting sideways

published 11 months ago
Gold Daily

 Gold is still stuck in a sideways movement since it broke out from the downtrend and entered the range between 1180 buy zone and 1202 - 1214 sell zone. The inside triangle which was charted didn't play out at all, as there was indeed a breach on the 27.09 dipping below 1195.89 where the breach was. Unfortunately, it gave false hopes for a new strong impulse down for the Bears and an overall continuation of the downtrend, these hopes were quickly destroyed because as the soon as the price dipped inside the buy zone, the price was quickly boosted up from the Bulls. Two days later the impulse followed, but with a move up towards the ranges of the triangle (which is invalid anymore) and towards the 1207 level where the movement stopped.  Even though the CCI and Stoch are starting to form up for a sell signal I highly doubt that they are going to be true as the price will keep this range until a strong technical or fundamental catalyst appears. Movement up is highly probable as we've been in a downtrend for some time now and the range is getting more tight so as we know after any trend we have a range and after that, we have a reversal on the trend. 

Pound moving deep into Bearish territory

published 11 months ago
GBP/USD Daily

 Sterling has played out the Bearish scenario very well also, slipping under 1.30562 around Brexit uncertainty and USD across the board. The price is currently still subdued as Bulls have a hard time even for a 10 pip push up. With that, I think the price will continue to slip further towards 1.29 level and to 1.27903 for a good take profit level there from a well placed short at 1.30563. Have in mind still thought that the both Stoch and CCI oscillators are starting to move North and to hint for possible buying signals for the future. Even if true, regards to the negative fundamentals for the GBP they will manifest in nothing more than Bullish corrections. Today's daily candle will be an important one to watch for as if it closes with a big shadow and under the 1.30562, selling will be resumed with great acceleration from the Bears. Tough period for the Sterling, but hey... good one for the export and the economy (watch that trade balance).

EUR/USD subdued by the Bears

published 11 months ago
EUR/USD Daily

 The pair has played out very well the Bearish wedge I've been talking about in my previous posts and it has reached indeed the 1.15282 level and target, so congratulations to the ones who sold on time and took the profits. The Euro has beautifully landed on the level, charting good looking red, clear candles on the daily chart without any resistance or major attempts from the Bulls to push up. They just watched as the Bears sold with great determination the Euro. Today, we are seeing some take profits on the table as the daily candle is making an attempt to turn into a Bullish engulfing one and Stochastic and CCI are starting to reverse again for a new buy signal. Currently, 1.15926 is acting as resistance for the Bulls to push up and it will important for them to clear this level out if they want a move up again towards 1.16. I have charted the two possible outcomes for the pair in the short - term. I recommend a wait and see strategy to be sure that the 1.15926 level will hold for new shorts if you are on the Bearish side. If overall dollar strength remains we will see the pair failing to do so and slipping back towards 1.15282. 

USD/JPY climbs to new highs

published 11 months ago
USD/JPY Daily

 The recent rally in USD/JPY has been well backed by the strong US dollar and we have breached 113 and moved rapidly towards 114. Overall the price is in an uptrend and we had two attempts to move past the upper line above 114 on the 01.10 and Yesterday. Tuesday's daily candle ended with a Bearish engulfing one, signalling the end of the trend, which was too steep as well, quickly exhausting the Bulls. Move down to 113.161 is acceptable and we may see a test there on the line for possible breach and a new downtrend movement towards 112.146. Stochastic indicator is making a sell signal crossover as well and CCI starts to move below the overbought line. It is appropriate to short the pair at these levels, catching the correction down towards 113.161 with a stop loss at 114.110 and take profit at 113.161. That's a couple of pips you can squeeze out from the market at this point and you can wait out for further breach and confirmation that the move down will continue for new short entries.