GBPUSD – Still Bullish Despite Retail Sales Data

GBPUSD – Still Bullish Despite Retail Sales Data

Having rallied strongly on Wednesday, the cable is paring gains today, but we are still seeing signs the pair remains bullish

.

The most obvious of these came after the US release of retail sales, which together with the basic reading was better than high expectations. The previous reading for April was also revised higher.

This suggests that the consumer starts to spend some of that extra disposable income higher wages and oil prices. This should start to filter through into higher inflation readings could prompt the Federal Reserve to raise interest rates this year -. An event that would typically be bullish for the dollar

The first reaction to this reading was just that, a dollar rally, but when it faces its first key area of ​​technical support - the recent strength on some occasions and the previous support between 1.54 and 1.5450 - it bounced higher

.

what we were left with the four-hour chart is something that looks like a tweezer bottom, a bullish trend reversal.

this suggests to me that there are more benefits to come in this pair and if the peaks of yesterday can be broken 1.56 level looks bright next to the resistance.

I still think the pair could go beyond here and the first major test will be the 233-day simple moving average just below 1.57, but I will keep an eye on the table for any signs that this does not happen.

for example, this might be a discrepancy between a discrepancy between an action of the oscillator and the price associated with a reversal on the 4 hour chart.

If we do not manage to break above the highs of yesterday, it could be a warning sign of a bearish reversal, especially if accompanied by a hanging man candle. This would make tomorrow very interesting and important.

* The tools above and many others can be found in OANDA Forex Labs.

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GBPUSD – Still Bullish Despite Retail Sales Data

GBPUSD – Still Bullish Despite Retail Sales Data

Having rallied strongly on Wednesday, the cable is paring gains today, but we are still seeing signs the pair remains bullish

.

The most obvious of these came after the US release of retail sales, which together with the basic reading was better than high expectations. The previous reading for April was also revised higher.

This suggests that the consumer starts to spend some of that extra disposable income higher wages and oil prices. This should start to filter through into higher inflation readings could prompt the Federal Reserve to raise interest rates this year -. An event that would typically be bullish for the dollar

The first reaction to this reading was just that, a dollar rally, but when it faces its first key area of ​​technical support - the recent strength on some occasions and the previous support between 1.54 and 1.5450 - it bounced higher

.

what we were left with the four-hour chart is something that looks like a tweezer bottom, a bullish trend reversal.

this suggests to me that there are more benefits to come in this pair and if the peaks of yesterday can be broken 1.56 level looks bright next to the resistance.

I still think the pair could go beyond here and the first major test will be the 233-day simple moving average just below 1.57, but I will keep an eye on the table for any signs that this does not happen.

for example, this might be a discrepancy between a discrepancy between an action of the oscillator and the price associated with a reversal on the 4 hour chart.

If we do not manage to break above the highs of yesterday, it could be a warning sign of a bearish reversal, especially if accompanied by a hanging man candle. This would make tomorrow very interesting and important.

* The tools above and many others can be found in OANDA Forex Labs.

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EURUSD – Divergence at 50 Fib Level

EURUSD – Divergence at 50 Fib Level

The euro was paring its losses against the dollar in recent days, but we see signs that the movement the increase may have run into a brick wall

pair has resistance around 38.2 fib - July 10 high at 20 July low - and support before, but as the stressed yesterday (EURUSD - bullish bounce Off Big Fib Level), there was reason to believe that the correction would be greater. The pair then join another 100 pips before running into resistance around 1.1010 fees, 50 fib of the same movement.

This alone does not suggest that the rally is over, of course, but when combined with a bearish divergence on both the MACD and stochastic histogram, he suggested the move could be tiring

the fact that it falls on a big psychological -. 1.10 - might also add this as a key resistance level.

for now, we are still seeing a significant reversal candlestick to support the above points, although the big red candle on the hourly chart which followed the Test 50 fib was quite bearish. down below must follow the lower peaks that have since been made to provide some support, as would a break of the rising trend line from yesterday's low, although even these would not be conclusive.

or the 4-hour or daily charts seem particularly bearish quite yet despite the rejection of the 50 fib level and 1.10 at the second attempt. And while divergences highlight the dynamic fall, it is always best when they are paired with a reversal pattern in price action.

With this unlikely looking on them, a break of the ascending trend line would go some way to make this look even more bearish once. Similarly, a break from the high today suggests this level does not hold, bringing 1.1050 to 1.11 in the foyer.

The above and other tools can be found in OANDA Forex Labs.

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EURUSD – Closing in on Massive Resistance

EURUSD – Closing in on Massive Resistance

The euro continued its impressive move higher for a third day Friday, after rallying 2.75% on more low on Wednesday, where he found support from the descending trend line, it broke above the previous week.

1.13 the pair crossed with relative ease despite facing initial resistance causing a small correction.

it opened a movement toward a key area of ​​resistance, how we should get a much better idea of ​​the strength of this rally.

There are a lot of resistance between 1.1525 and 1.14, which will provide an important test for the EURUSD bulls.

it was a media key area and strength this year and on this occasion, the descending trend line from last May 8 years and 233 days simple moving average will combine to make it even stronger.

this does not mean that it certainly will not be broken, but if it is, it is a very bullish signal. To this number of technical resistance levels will have a very strong push for bulls and could trigger a rather aggressive push later, a movement fundamentals really justify not now.

Alternately, the pair could run into resistance here, how the decline following could provide a strong insight into the next movement of the pair. A small correction and another rally suggests the market remains bullish, even at these levels. Anything larger could see 1.08 come under pressure, the lower end of the trading range, it is now in.

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GBPUSD – Potential Bearish Setup at Resistance

GBPUSD – Potential Bearish Setup at Resistance

Cable realized steady gains again on Monday on the back of stronger than expected manufacturing data in the United Kingdom early in the session before running into resistance around 1.55, as it has done on numerous occasions in October.

the last stage of the rally came at a time when the stochastic made lower highs suggesting momentum in the last rally fades. This divergence in what was recently a key resistance level is not in itself a bearish signal but it does make me less optimistic in the short term.

With the pair trading at earlier summits with divergence, the only thing that is missing is a reversal pattern that could be considered as confirmation that the consolidation, correcting the inversion occurred.

We can see that now on the 4 hour chart, with an evening star formation may appear. If the current candle closes and confirms that, it suggests a further decline could follow.

Initial support came around 1.54, which held the first request. A break below here would support the idea that more losses are coming. Below, additional support may be found around 1.5380 - front support and resistance - 1.5350 .. And

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Gold and Silver Not Glittering Against the JPY

Gold and Silver Not Glittering Against the JPY

Deception today as the Bank of Japan failed to deliver its part of the "big bazooka" by a new rate cut or significantly increase the size or extension of the timetable for their quantitative easing program. The only crumb that was thrown on the markets was an increase in the ETF purchase program and increased funding facility to USD Japanese Corporates.

More surprisingly, they kept their schedule up to hit their 2% inflation target in 2017 really rather interesting when Japan CPI figures came to an asthmatic -0.4% this morning

* (JP) JAPAN NATIONAL June CPI Y / Y :. -0.4% -0.4% V E; ICC EX FRESH FOOD (CORE) Y / Y: -0.5% (3 years low) V -0.4% E - CPI excluding food and energy (core-core) Y / Y: 0 4% (1 -Year down) v 0.5% e - Source TradeTheNews.com

Some of the comments of the Governor Kuroda seems somewhat contradictory to the decision of the Bank of Japan

BOJ GOV Kuroda .: BOJ POLICY WILL EXAMINE WITH REGARD TO QUESTION NECESSARY FUTURE TO MEET 2 PCT TARGET PRICE
BOJ GOV Kuroda: WRONG TO THINK We join IMPORTANCE LESS quantitative easing
source: Reuters s

My view of this result is that the BoJ will send a signal that we are reaching the limits of monetary policy for the moment, and they want to keep their powder dry. On the contrary, in the future, fiscal policy will do more heavy lifting. Tuesday cabinet meeting will become more important than the details of the supplementary budget will be unveiled governments. Critical to this will be the amount of new spending between the overall package estimated at 28Tn Yen (USD 265 bio).

USD / JPY price action since early this morning was ugly, to say the least. With 100 points moves to the vapors of the extremely thin liquidity pre- Bank of Japan. USD / JPY fell from 105.20 to 103.30 in a heartbeat early this morning before recovering to 104.60. Things are not much better job ad, with USD / JPY falling in the area of ​​105 to 102.70 before rebounding to 103.50. Positioning seems to be very light now in JPY, which has exacerbated the moves.

The ball is really in the court of governments now with disappointment potentially exacerbate the downward pressure to USD / JPY. The daily chart is in particularly heavy research. I not that USD? JPY failed at the bottom of the Ichimoku cloud daily four times in the last eight days. (Circled area) intra-day resistance should be around 104.00 now with the support at the bottom of the previous day around 102.40.

XAUJPY and XAGJPY

Neither picture looks pink run in the end of the session. Both have double tops in the last three days and are closing on their lows for the session in Asia.

I note that on the OANDA Long / Short Ratios position XAGUSD XAUUSD and both remain in the top four of the longest positioning. It will be important to watch the end of New York in two crosses tonight for further evidence of the downward pressure on Monday.

XAU / JPY Strength 141276 and 138100 support. A daily close below here, in particular, set up a test 137000 moving average at 100 days.

XAG / JPY resistance is triple top in 2152 and 2055 support.

Nikkei

Nikkei was sold hard today to 1.8% in a step prior to a rapid recovery in the logoff. It seems that the comments of ETF Kuroda have supported late in the index

BOJ GOV Kuroda :.
INCREASED PURCHASES ETF is not intended to support SHARE PRICES
BELIEVE PURCHASES ETF will not distort market functioning
source: Reuters

the daily chart shows a small peak at the base of the daily cloud at 10 before Kuroda led to rebound 16470. it is 100 days on average and the mobile was low in three of the last four sessions. A daily close below would not be a good sign.

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Read More : Gold and Silver Not Glittering Against the JPY

Gold and Silver Not Glittering Against the JPY

Gold and Silver Not Glittering Against the JPY

Deception today as the Bank of Japan failed to deliver its part of the "big bazooka" by a new rate cut or significantly increase the size or extension of the timetable for their quantitative easing program. The only crumb that was thrown on the markets was an increase in the ETF purchase program and increased funding facility to USD Japanese Corporates.

More surprisingly, they kept their schedule up to hit their 2% inflation target in 2017 really rather interesting when Japan CPI figures came to an asthmatic -0.4% this morning

* (JP) JAPAN NATIONAL June CPI Y / Y :. -0.4% -0.4% V E; ICC EX FRESH FOOD (CORE) Y / Y: -0.5% (3 years low) V -0.4% E - CPI excluding food and energy (core-core) Y / Y: 0 4% (1 -Year down) v 0.5% e - Source TradeTheNews.com

Some of the comments of the Governor Kuroda seems somewhat contradictory to the decision of the Bank of Japan

BOJ GOV Kuroda .: BOJ POLICY WILL EXAMINE WITH REGARD TO QUESTION NECESSARY FUTURE TO MEET 2 PCT TARGET PRICE
BOJ GOV Kuroda: WRONG TO THINK We join IMPORTANCE LESS quantitative easing
source: Reuters s

My view of this result is that the BoJ will send a signal that we are reaching the limits of monetary policy for the moment, and they want to keep their powder dry. On the contrary, in the future, fiscal policy will do more heavy lifting. Tuesday cabinet meeting will become more important than the details of the supplementary budget will be unveiled governments. Critical to this will be the amount of new spending between the overall package estimated at 28Tn Yen (USD 265 bio).

USD / JPY price action since early this morning was ugly, to say the least. With 100 points moves to the vapors of the extremely thin liquidity pre- Bank of Japan. USD / JPY fell from 105.20 to 103.30 in a heartbeat early this morning before recovering to 104.60. Things are not much better job ad, with USD / JPY falling in the area of ​​105 to 102.70 before rebounding to 103.50. Positioning seems to be very light now in JPY, which has exacerbated the moves.

The ball is really in the court of governments now with disappointment potentially exacerbate the downward pressure to USD / JPY. The daily chart is in particularly heavy research. I not that USD? JPY failed at the bottom of the Ichimoku cloud daily four times in the last eight days. (Circled area) intra-day resistance should be around 104.00 now with the support at the bottom of the previous day around 102.40.

XAUJPY and XAGJPY

Neither picture looks pink run in the end of the session. Both have double tops in the last three days and are closing on their lows for the session in Asia.

I note that on the OANDA Long / Short Ratios position XAGUSD XAUUSD and both remain in the top four of the longest positioning. It will be important to watch the end of New York in two crosses tonight for further evidence of the downward pressure on Monday.

XAU / JPY Strength 141276 and 138100 support. A daily close below here, in particular, set up a test 137000 moving average at 100 days.

XAG / JPY resistance is triple top in 2152 and 2055 support.

Nikkei

Nikkei was sold hard today to 1.8% in a step prior to a rapid recovery in the logoff. It seems that the comments of ETF Kuroda have supported late in the index

BOJ GOV Kuroda :.
INCREASED PURCHASES ETF is not intended to support SHARE PRICES
BELIEVE PURCHASES ETF will not distort market functioning
source: Reuters

the daily chart shows a small peak at the base of the daily cloud at 10 before Kuroda led to rebound 16470. it is 100 days on average and the mobile was low in three of the last four sessions. A daily close below would not be a good sign.

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Read More : Gold and Silver Not Glittering Against the JPY