the daily chartist

The Yen delaying the movement down

published 1 year 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 1 year 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 1 year 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 1 year 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 1 year 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.