British Pound To Continue Trading Lower Against Aussie

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The British pound traded lower against the Aussie dollar recently and tested the 1.8076 support area. The Aussie dollar performed relatively better against a basket of currencies, including the British pound. The market sentiment was broadly favouring gains in the Aussie dollar, which ignited downside pressure in the GBPAUD pair. However, it looks like the pair is correcting in the short term and it is possible that it might head towards the 1.8210 level where sellers might appear again to protect the upside in the pair. There is no economic release lined up in the UK, which means any nasty move is unlikely today.

There is a monster bearish trend line formed on the hourly chart of the GBPAUD pair, which might act as a hurdle on the upside moving ahead. The pair recently managed to climb higher, but failed to clear the 61.8% fib retracement level of the last drop from the 1.8262 high to 1.8076 low. There is a chance that the pair might spike one more time from the current levels towards the mentioned bearish trend line. The most important point is that the 100 hourly moving average is coinciding with the same trend line, so the GBPAUD buyers could struggle around the 1.8210 level if reached. The hourly RSI just failed to close above the 50 level which is another bearish sign in the short term.

GBPAUD 10.31.2014

Alternatively, there is a chance that it might continue trading lower in the coming session. In that situation, the recent low of 1.8080 might come into play again.

Overall, one might consider selling rallies around the highlighted trend line.

EURUSD Forming A Breakout Pattern

Euro 13 - Copy

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The Euro managed to find healthy bids against the US dollar yesterday after the US GDP release. The outcome of the US GDP was not bad, but it was just that the EURUSD pair was seen correcting higher. The pair after trading below the 1.2560 level managed to climb back higher above the 1.2610 level. The pair as of now forming a breakout pattern which might act as a catalyst for the pair in the near term. We need to see how the Euro trades in the coming sessions and close the month. There is an important release during the London session which might impact the EURUSD pair moving ahead.

As mentioned after climbing back above the 1.2610 the EURUSD pair is now forming a breakout pattern, which is a contracting triangle on the hourly chart. The pair is on the verge of breaking the triangle, which would call for either upside or downside in the short term depending upon the break. So, we need to follow the pattern closely and trade accordingly. There is a chance that the pair might break higher if this can be considered as a bullish flag, but for that the pair needs to hold the 50% fib retracement level of the last leg from the 1.2545 low to 1.2631 high. If the Euro buyers manage to hold it, then there is a possibility of a break higher.

EURUSD 10.31.2014

Alternatively, if the EURUSD pair moves lower and breaks the triangle, then it would be considered as a completion of correction and might take the pair towards the recent low of 1.2545.

Overall, one might consider buying or selling depending upon the break of the triangle.

NZDUSD Takes Control As RBNZ Stayed Dovish

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The New Zealand dollar collapsed during the last two sessions against the US dollar. It was a double assault, as the Fed stayed Hawkish and the Reserve Bank of New Zealand continued selling the NZD in September 2014. The RBNZ interest rate decision was lined up during the London session, which ignited a down-move in the NZDUSD pair. The pair broke an important support which caused heavy downside in the pair. It traded as low as 0.7767 during the past Asian session. It is now correcting higher, but won’t be able to hold the correction mode for long as the sentiment is strong bearish for the pair.

There was a critical bullish trend line formed on the hourly chart of the NZDUSD pair, which was breached after the release. The downside was very sharp as the pair fell around 100 pips and traded below the last swing low. It even failed to hold the 100 and 200 simple moving average on the one hour chart. The pair after the decline managed to correct higher but failed horribly around the 23.6% fib retracement level of the last down-move from the 0.7976 high to 0.7767 low. It is now moving lower again. It would be interesting to see whether the recent low acts as support or the pair creates a new low.

NZDUSD 10.30.2014

If the NZDUSD pair breaks the recent low, then the next support can be seen around the 0.7720 area, followed by the all-important 0.7700 handle.

Overall, one might consider selling rallies dips around as long as the bearish sentiment is intact.

USDJPY Surged Higher Post Positive FOMC

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The US dollar blasted higher against almost all major currencies, including the Euro, British pound, Swiss franc, Australian dollar and the Japanese yen. The USDJPY pair climbed higher and traded close to the 109.10 level. The main reason for this move was the fed interest rate decision in which the fed ended the QE and stated that the labour market is moving in the right direction. This caused heavy buying interest in the US dollar, which helped the USDJPY pair. We need to see how the pair trades in the coming sessions, as it is facing several important resistances on the way up.

There is a critical bullish trend line formed on the hourly chart of $USDJPY, which helped the pair to hold the downside yesterday. The fundamentals then aligned with the same and caused a severe upside in the pair. As of writing it is trading around the 109.10 level where we might see some sellers for a very minor correction of 15-20 pips. This correction can be seen as a buying opportunity. The pair might move towards the 23.6% fib retracement level of the last leg from the 108.03 low to the recent high. So, whenever this correction happens, the US dollar buyers might take the stage again for the next leg higher.

USDJPY 10.30.2014

On the upside, the next resistance can be seen around the 109.50 level which is a swing level and might cause a healthy correction in the pair. However, there is no denial that the pair might challenge the 110.00 level in the coming days.

Overall, one might consider buying dips around as long as the pair stays above the bullish trend line.

GOLD Awaits Fed For Action

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The US dollar was seen trading lower Intraday against a basket of currencies. However, GOLD was not affected much as it failed to capitalize in the short term. There is an important risk event lined up during the NY session, as the fed interest rate decision is scheduled. The fed might be ending the asset purchases this time and will stay away from hinting about a rate hike. It would be interesting to see how the US dollar performs after the release. One might expect volatility in GOLD as well around the same time. It is trading around important levels, so any surprise might cause a break in GOLD.

There was a monster bearish trend line formed on the hourly chart of GOLD, which was broken recently. It climbed towards the 38.2% fib retracement level of the last fall from the $1255 high to $1222 low, but failed to hold the gains. GOLD is now trading lower again and struggling around the 100 moving average. GOLD is currently in a consolidation phase as it is waiting for the fed’s outcome for further action in the short term. The hourly RSI is above the 50 mark which is a positive sign, but if it tilts below the same then more losses in GOLD are possible. The last low of $1222 is an important support moving ahead.

GOLD 10.29.2014

On the upside, the 100 hourly moving average remains a major hurdle for GOLD. If buyers manage to clear it, then a move towards the 200 MA is possible in the near term.

Overall, one might consider buying dips around as long as the last low of $1222 holds.

Euro Eyes More Gain Against British Pound

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The Euro managed to gain bids against a few major currencies yesterday, including the British pound. There was no major economic release lined up yesterday in the Euro zone, which caused a slight upward momentum in the shared currency. It is worth noting that the EURGBP pair broke an important resistance area, which has opened the doors for more gains in the short term. Today, there are a couple of important releases lined up during the London session in the UK, which might cause moves in the EURGBP pair. Let us see how the outcome shapes up and affects the pair in the short term.

There was a monster bearish trend line formed on the hourly chart of the EURGBP pair, which was breached recently. The pair traded towards the 200 hourly moving average, which was coinciding with the 50% fib retracement level of the last drop from the 0.7940 high to 0.7860 low. The pair failed to move above the mentioned confluence area and is now trading lower. If the pair moves further towards the broken trend line, then it is likely to find buyers moving ahead. The most important point is that the 100 hourly moving average is waiting around the 0.7880 level to support the pair. The hourly RSI is well above the 50 level acting as a catalyst for the pair.

EURGBP 10.29.2014

On the upside, the 200 hourly moving average remains a major hurdle for the Euro buyers. Once it is breached the EURGBP pair might trade back towards the 0.7950 level.

Overall, one might consider buying dips around the 100 MA.

USDCHF Looks Set For A Move Lower

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The US dollar was seen trading lower Intraday against the Swiss franc, as there was selling interest noted. The US dollar also traded lower against currencies such as the Euro and the British pound. There is an important event lined up during the NY session in the US i.e. durable goods orders data will be published. The market is expecting it to register a gain of 0.5%, compared with the decline of around 18% last time. If the data misses the forecast and fails to register an increase, then the US dollar might move lower in the short term.

There is a monster bearish trend line formed on the hourly chart of the USDCHF pair, as can be seen in the chart below. The highlighted trend line might act as a catalyst for the pair towards the downside in the near term. The USDCHF pair recently failed around the 23.6% fib retracement level of the last drop from the 0.9558 high to 0.9475 low. Currently, the pair is testing the 200 hourly moving average, which is acting as a support for the pair and holding the downside. If the pair manages to clear the 200 MA, then it might head lower moving ahead. The next level of interest would be around the 0.9420 level.

USDCHF 10.28.2014

The USDCHF pair is trading below the 100 MA, which can be seen as a bearish sign and might weigh on the US dollar in the short term. We need to see how it trades during the coming sessions.

Overall, one might consider selling with a break below the 100 MA.

AUDUSD Trading Around Critical Juncture

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The Aussie dollar was broadly seen consolidating in a range against the US dollar. However, the market sentiment was favouring the Aussie dollar, as every time the AUDUSD pair fell lower it managed to gain buyers. There was no major release in the Australia during the Asian session, so the pair followed the consolidation path with a slight bullish tone. The AUDUSD pair is actually facing a monster resistance, which is holding the upside in the pair. Once it manages to clear it, then we might witness sharp gains in the pair in the short term.

As it can be seen in the chart below, there are two trend lines forming on the hourly chart. One is acting as a resistance and other is a monster support trend line. So, there is a support and a resistance for the pair. The most important point which suggests that the pair might break higher is that the pair is trading above the 100 and 200 moving average on the hourly chart. So, there is a possibility that the pair might surge higher in the near term. If the pair moves lower from the current levels, then it could find buyers around the 100 MA, which is also coinciding with the 38.2% fib retracement level of the last move from the 0.8717 low to 0.8822 high.

AUDUSD 10.28.2014

A break above the bearish trend line could ignite a move towards the next important resistance area around the 0.8900-20 level where sellers are likely to take a stand.

Overall, one might consider buying dips as long as the pair stays above the 100 MA.

Euro Looks Set For A Move Higher

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The Euro was seen trading higher against the Japanese yen earlier during the Asian session, but the upside was stalled around the 137.34 level. The EURJPY is under retracement as of now and testing an important support area which could produce a bounce in the pair moving ahead. The German IFO business climate index is due for release in a few minutes, which is expected to decline from 104.7 to 104.3. If the outcome surpasses the expectation, then it might create buying interest for the Euro in the near term. Moreover, the Euro area private loans data will also be released which can ignite some moves in the pair.

There is a critical bullish trend line formed on the hourly chart of the EURJPY pair, which acted as a support and resistance on a number of occasions. The pair is currently trading around the mentioned trend line which can push it back up. Currently, the trend line also coincides with the 38.2% fib retracement level of the last leg from the 136.47 low to 137.34 high. So, there is a strong chance of a move higher in the near term. The pair has to break the recent high for more upside towards the 138.00 area where the Euro sellers might appear again. The hourly RSI is heading towards the 50 level, which might also provide support to the pair.

EURJPY 10.27.2014

If the economic releases in the Euro area miss the forecast, then the pair might break the highlighted bullish trend line to trade lower towards the 100 moving average.

Overall, one might consider buying dips as long as the pair stays above the mentioned trend line.

British Pound Holds Positive Tone Against US Dollar

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There British pound dropped against the US dollar recently, but it managed to gain bids around the 1.60 level which acted as support on a number of occasions. The economic data released in the UK during this past week was not that great, which kind of discouraged the British pound buyers in the short term. However, the GBPUSD pair holds the positive tone and we need to see how it trades in the upcoming days. There is a chance that the pair might dive one more time in the coming sessions, but it can be considered as a buying opportunity.

There is a crucial bullish trend line formed on the hourly chart of the GBPUSD pair, which might act as a support for the pair if it moves lower from the current levels. There are several bullish signs on the hourly chart, including the most important one i.e. the pair trading above the 100 and 200 simple moving averages. The pair has closed above both key moving averages and managed to clear the 50% fib retracement level of the last fall from the 1.6183 high to 1.5993 low. So, the pair might head towards the last high in the short term. There is a chance that it might dip one more time to retest the highlighted bullish trend line which might act as a support moving ahead.

GBPUSD 10.27.2014

So, on the downside the 1.6040-30 levels remain an important support area for the pair where buyers might appear.

Overall, one might consider buying dips as long as the pair stays above the mentioned trend line.