the daily chartist

Cable aiming for the top

published 2 years ago
GBP/USD Daily

 GBP/USD is in a downtrend still, but recently the price managed to pull from the bottom from 15.08 where it reached 1.26613. We are talking about a correction here, but for the past two days, the pair has made two good daily impulses as on Thursday we had a daily Bullish engulfing candle and on Friday the price managed to test 1.30562 and to move up. CCI and Stoch are on their crossovers as well so I think a move up is well backed up. For this to happen though, we need to see dollar losing further steam across the board so that we can see a test on the top line of the downtrend circa 1.31648. We are going to see resistance on the top line for sure, so don't hurry with opening any longs for potential breaches. We need to see more technical and fundamental for confirmation that we are going to see a reversal on the downtrend. 

The Yen delaying the movement down

published 2 years ago
USD/JPY Daily

 I've mentioned on Wednesday that the price will initiate a movement down as there were a couple of factors for that to play as a catalyst and to drive the price lower for a correction to 113.161. As the day went on, the USD  lost strength and the Yen gained some grounds. It reached a high of 114.553 where the price closed there as the impulse for the ended. On Thursday and Friday USD strength resumed and we saw the movement down to accelerate Both of the CCI and Stoch are still overbought so for me the movement on Wednesday was the last call for Bulls to clear out more stops and to set the price higher for better selling opportunity, which indeed followed. I am still hanging on to the idea that the price will make a correction to 113.161 for a test to see if the USD can actually gain more in the future against the Yen. 

The Euro with weak attempt to reverse

published 2 years 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 2 years 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 2 years 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).