Category Archives: Market Anakysis

Forex market analyized

USDJPY reverses off our 2nd target

In a previous post we noted the bullish flag pattern in USDJPY and the two possible targets. Price almost touched the second target area and is now pulling back towards the break out area. This is most probably a back test of the breakout area, rather than a failed break out.Blue line -long-term resistance trend lineGreen line – support trend lineRed horizontal Fibonacci expansions = targetsUSDJPY managed to reach 112.22, but prices reversed as risk off took over due to the coronavirus threat spreading into risky assets. Price has fulfilled its upside target and we are now seeing an important back test.Blue line – resistanceGreen line – supportGreen rectangle – horizontal supportUSDJPY has reached the previous highs and once resistance area at 110.30. Bouncing off this area would be a bullish sign. Inability to hold above 110.30 would be a very bearish sign. Major long-term support is at 108.30. Bulls need to hold above this level no matter what.The material has been provided by InstaForex Company – www.instaforex.com…

Technical analysis on Gold for February 25, 2020

Gold price is pulling back after making a spike higher in early trading this morning at $1,689. The Daily candlestick is a bearish reversal one as the long upper tail with a hammer formation does not leave us with the confidence that a new high is coming soon.Red lines – bullish channelGreen line – bearish divergenceGold price is making new highs not followed by the RSI. The RSI is making lower highs in what we call a bearish divergence. This is an important warning. Not a reversal signal, but just a warning. Gold price has recently moved higher in a parabolic way, so it is normal to see big fluctuations and big drops as volatility rises. Weekly support is found at $1,600-$1,620 and we could see a pull back towards that area before we resume the up trend to $1,700.The material has been provided by InstaForex Company – www.instaforex.com…

February 24, 2020 : EUR/USD Intraday technical analysis and trade recommendations.

On December 30, a bearish ABC reversal pattern was initiated around 1.1235 (Previous Key-zone) just before another bearish movement could take place towards 1.1100 (In the meanwhile, the EURUSD pair was losing much of its bearish momentum).One more bullish pullback was executed towards 1.1175 where the depicted key-zone as well as the recently-broken uptrend were located. That’s why, quick bearish decline was executed towards 1.1100 then 1.1035 which failed to provide enough bullish SUPPORT for the EURUSD pair.Further bearish decline took place towards 1.1000 where the pair looked quite oversold around the lower limit of the depicted bearish channel where significant bullish rejection was able to push the pair back towards the nearest SUPPLY levels around 1.1080-1.1100 (confluence of supply levels (including the upper limit of the channel).Since then, the pair has been down-trending within the depicted bearish channel until last week when bearish decline went further below 1.0950 and 1.0910 (Fibonacci Expansion levels 78.6% and 100%) establishing a new low around 1.0790.Currently, the EUR/USD pair looks quite oversold after such a long bearish decline and if bullish recovery is expressed above 1.0845-1.0860, further bullish advancement would be expected towards 1.0910 then 1.0950.Intraday traders were advised to look for signs of…

February 24, 2020 : GBP/USD Intraday technical analysis and trade recommendations.

On December 13, the GBPUSD pair looked overpriced around the price levels of 1.3500 while exceeding the upper limit of the previous bullish channel.On the period between December 18th – 23rd, bearish breakout below the depicted channel followed by temporary bearish closure below 1.3000 were demonstrated on the H4 chart.However, immediate bullish recovery (around 1.2900) brought the pair back above 1.3000.Bullish breakout above 1.3000 allowed the mentioned Intraday bullish pullback to pursue towards 1.3250 (the backside of the broken channel) where bearish rejection and a new wide-ranged movement channel were established between (1.3200-1.2980).Recent temporary bearish breakdown below 1.2980 enhanced further bearish decline towards 1.2890 (the lower limit of the movement channe) where evident bullish rejection has been manifested on February 10.Last week, temporary bullish breakout above 1.3000 has been expressed until Wednesday when another bearish decline below 1.3000 brought the GBPUSD pair back towards the lower limit of the channel @ 1.2870 -1.2850 where another episode of bullish recovery is being demonstrated.The current bullish pullback will probably pursue towards the price zone of 1.2980-1.3000 which may fail to offer enough bearish rejection.Although the Intermediate-term technical outlook remains bearish below the price level of 1.3000 (Supply-zone), any bullish breakout above 1.3000 invalidates…

Fractal analysis for major currency pairs as of February 24

Hello, colleagues!
For the Euro/Dollar pair, we follow the formation of the initial conditions for the upward cycle from February 20 and the level of 1.0868 is the key resistance. For the Pound/Dollar pair, the price formed a pronounced upward structure for the top of February 20 and the level of 1.2876 is the key support. For the Dollar/Franc pair, we follow the formation of the downward structure from February 20 and the level of 0.9768 is the key resistance. For the Dollar/Yen pair, we expect a resumption of the upward trend after the breakdown of 111.98. For the Euro/Yen pair, we follow the initial conditions for the top from February 18 and the level of 121.25 is the key resistance. For the Pound/Yen pair, we expect the continuation of the upward movement after the breakdown of 144.60 and the level of 143.90 is the key support.
Forecast for February 24:
Analytical review of currency pairs on the H1 scale:

For the Euro/Dollar pair, the key levels on the H1 scale are: 1.0951, 1.0928, 1.0895, 1.0868, 1.0843, 1.0807, 1.0794, 1.0775, and 1.0751. Here, we follow the formation of the initial conditions for the top of February 20. We expect the continuation of the upward movement…

GBP/USD: plan for the US session on February 24. The pound lost all Friday’s positions, however, this is a great chance for

To open long positions on GBPUSD, you need:
In the first half of the day, the bulls failed to catch on to the support of 1.2927, the breakdown of which led to a rapid fall of the pound in the area of 1.2884, from which I recommended opening long positions. A good rebound from this level with the building of the lower border of the new ascending channel keeps the bulls’ hope for the continued growth of the pound in the short term. An important task for the second half of the day will be a breakdown and consolidation above the resistance of 1.2927, which will lead to an update of the highs in the area of 1.2960 and 1.2996, where I recommend taking the profits. If the bears again return the pair to the minimum of 1.2884, it is better to abandon long positions and wait for the update of the minimum of 1.2851, where I recommend buying immediately for a rebound.
To open short positions on GBPUSD, you need:
Bears continue to control the market. The return to the support of 1.2927 led to complete overlap of Friday’s growth. Now an important task for sellers is to break through and consolidate below…

BTC analysis for 02.24.2020 – Watch for breakout of the Pitchfork downward parallel line to confirm further drop towards

Industry news:JPMorgan’s most recent Perspectives report claims that blockchain is still years away from achieving mainstream adoption, despite making strides among certain sectors. According to the 74-page report , JPMorgan analysts contend that blockchain has seen extensive growth and use among certain companies like stock exchanges, but is still several years from reaching mainstream distribution. The report’s authors claimed to see “long-term potential” for Distributed Ledger Technology (DLT) to transform the current business model for banks by providing a more efficient method for information transfer. However, the analysts said the pace of blockchain adoption will depend upon “resolving legal and technical concerns,” especially those related to cross-platform integration. Technical analysis:BTC has been trading sideways at the price of $9.780. I found that BTC failed to test the Median Pitchfork line in the recent upside move, which is sign that sellers are still present and downside is expected.I would watch for selling opportunities If I see the breakout of the support at $9.666. Downward targets would be set at the price of $9.265 and $9.053.MACD oscillator is showing neutral stance and in this condition is not that valid.Major resistance levels are set at $10.022 and $1.300Support levels are set at $9.670, $9.265…

EUR/USD: plan for the US session on February 24. The euro is trading around the level of 1.0822, however, the bears took

To open long positions on EURUSD, you need:
In the first half of the day, I paid attention to the level of 1.0822, around which trading continues. The bears took the initiative, pushing the pair under this range. Data on the German business environment indicator, which rose slightly in February this year compared to January, did not provide significant support for the euro. Buyers in the second half of the day need to return to the level of 1.0822, since only in this scenario can we expect a repeated growth to the maximum of last week in the area of 1.0860, where I recommend fixing the profits. Given that there are no important fundamental statistics in the afternoon, probably the advantage will remain with the sellers of the euro. In the case of reduction, it is best to return to long positions to rebound from the low of the year at 1.0785 or after updating the larger area of 1.0765.
To open short positions on EURUSD, you need:
The bears coped with the task for the first half of the day and returned the euro to the level of 1.0820. While trading is below this range, we can expect a decline in the pair,…

Trading plan for Gold for February 24, 2020

Technical outlook:Gold has managed to push through fresh highs around $1,688/89 levels today above the expected resistance zone around $1,650 as highlighted here. It remain to be seen is that the level is sustainable or the yellow metal produces a sharp reversal ahead. Please note that the metal has drop from $1,689 and is currently seen to be trading around $1,673/74 levels. On the shorter time frames, immediate support is seen through $1,660 and a break below that could be the first sign of a potential bearish reversal. We would refrain from buying at this point and rather wait for a break below $1,660 to prepare selling on rallies. Looking at the overall structure on the Weekly chart (not shown here), Gold might have complete or is near to completing a corrective rally that began in December 2015 since $1,046 lows. Please wait for a bearish confirmation to initiate shorts but we are preparing to sell on rallies as a major trade setup.Trading plan:Remain flat for now. Be ready to sell.Good luck!The material has been provided by InstaForex Company – www.instaforex.com…

EUR/USD for February 24,2020 – Pitchfork Warning line 1 at the pice of 1.0810 on the test, watch for buillish opportunities

Technical analysis:EUR/USD has been trading sideways at the price of 1.0820. The Pitchfork Warning line at at 1.0810 is on the test and I do expect upside rotation and test of 1.0862 and 1.0886.I would watch for buying opportunities due to the test of support confluence at 1.0810. Upward targets are set at the price of 1.0862 and 1.0886. MACD oscillator is showing bullish divergence on the last pushes down, which is great confirmation for further upside movementStochastic oscillator is in oversold condition with potential for further upside.Resistance levels are set at the price of 1.0840, 1.0860 and 1.0886Support levels are set at the price of 1.0806 and major at 1.0778.The material has been provided by InstaForex Company – www.instaforex.com…