GBPCHF All Set For A Decline

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The British pound was seen struggling recently not only against the US dollar, but also against the Swiss franc. There is a lot of selling pressure developing especially on the GBPCHF pair. There was an important release during the London session, which caused downside in the British pound. The GFK consumer confidence was released, which came in at -2, compared with the expectation of -1. The GBPCHF pair broke a critical support area, which can be seen as selling opportunity in the near term. The FX market volatility is low, and that might be the reason that there is no major move in the pair else there was a possibility of a slide.

There was a critical bullish trend line formed on the hourly chart of the GBPCHF pair, which was broken earlier. This break was very crucial, as the pair is now trading below the 100 hourly moving average as well opening the doors for more losses moving ahead. There is a chance that the pair might retest the broken trend line one more time and fail to move higher. In that situation, the pair might head lower again. The next level of buying interest can be considered around the 38.2% fib retracement level of the last leg from the 1.4942 low to 1.5229 high. This is where the 200 hourly moving average is floating around.

GBPCHF 11.28.2014

On the upside, the 100 hourly MA might continue to act as a resistance. Any further strength might take the pair towards the broken trend line where sellers might appear again.

Overall, one might consider selling rallies around the broken trend line as long as the pair is trading below the last high.

Euro Headed Lower Again

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The Euro was seen struggling against the US dollar recently. One of the main reasons behind this was the poor economic releases’ outcome in the Euro zone. The most important one was the German consumer price index, which missed the expectation and ignited a down-move in the EURUSD pair. The EURUSD pair also broke an important support area, which is likely to encourage the Euro sellers in the short term. There are again a few important releases in the Euro area, including the German retail sales and the Euro area consumer price index. We need to see how the pair trades around the mentioned events.

There was a monster bullish trend line formed on the hourly chart of the EURUSD pair, which was breached recently. This break might take the pair further lower, as there is a lot of bearish pressure on the pair. Currently, the pair is trading around the 50% fib retracement level of the last leg from the 1.2360 low to 1.2530 high, which is acting as a support. Moreover, the 100 hourly moving average is also around the mentioned fib level. The hourly RSI also around the extreme levels. So, there is a possibility that the pair might bounce a little from the current levels. However, in that situation, the EURUSD pair might struggle around the broken trend line.

EURUSD 11.28.2014

On the downside, a break below the 100 hourly moving average could ignite more losses in the pair, which might take it towards the 1.2400 support area.

Overall, one might consider selling rallies around the broken trend line as long as the pair is trading below the 200 MA.

NZDUSD Looks Set For More Gains

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The New Zealand dollar traded lower against the US dollar earlier during this week, but it recently managed to find buyers and jumped higher. It also breached an important resistance area, which might call for more gains in the pair moving ahead. The New Zealand trade balance data was released earlier during the Asian session by the Statistics New Zealand. The data was not according to the market’s expectation, but somehow encouraged the New Zealand dollar buyers, as the NZDUSD pair traded higher during the Asian session.

There was a critical bearish trend line formed on the hourly chart of the NZDUSD pair, which was broken recently. This break has opened the doors for more gains in the pair in the short term. The pair has even settled above the 76.4% Fibonacci retracement level of the last drop from the 0.7945 high to 0.7765 low. However, there is a possibility that the pair might correct a bit lower from the current levels and retest the broken resistance area. In that situation, the pair is likely to gain bids, as the 200 hourly moving average is also sitting just below the mentioned trend line. The hourly RSI is around the extreme levels raising the case of a short-term minor correction in the NZDUSD pair.

NZDUSD 11.27.2014

On the upside, initial resistance is around the last swing high of 0.7945. However, if the pair continues to trade higher, then it might challenge the 0.8000 level again.

Overall, one might consider buying dips around the broken trend line as long as the pair is trading above the 200 MA.

USDJPY Forming A Breakout Pattern

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The US dollar traded lower recently against a basket of currencies, including the Euro, the British pound and the Japanese yen. The most important point here is that the USDJPY pair is forming a breakout pattern on the hourly chart, which is likely to act as a catalyst for the pair in the near term. The economic releases in the US like the initial jobless claims released recently failed to match the expectation of the market, and ignited a move lower in the US dollar. One of the other best performers against the US dollar was the British pound.

There is a critical descending triangle formed on the hourly chart of the USDJPY pair, which might pave the way for more upside in the near term. Currently, the pair is testing a critical support area in the form of the 200 hourly moving average. The highlighted triangle is a contracting one and is on the verge of a breakout. There is a chance that the pair might climb higher from the current levels, and break the mentioned triangle. We need to see important bullish signs before jumping into any kind of position. However, there is an important resistance just above the triangle resistance area, as the 100 hourly moving average is siting above it. The hourly RSI is below the 50 mark, which is a bearish sign in the short term.

USDJPY 11.27.2014

On the downside, the USDJPY pair might find support around the last swing low of 117.37 level. A break lower could take it towards the 116.80 area.

Overall, one might consider buying with a break above the triangle as long as the pair is trading above the 100 MA.

GOLD Eying A Major Break

GOLD 3

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The US dollar was recently seen struggling, and as a result prices of the precious metals managed to rise and recover ground. However, GOLD is currently trading in a range and it looks like it is setting up for more gains moving ahead. There were a couple of important releases lined up recently in the US, which were mostly better than expected, but failed to push GOLD and SILVER lower. Today, the US durable goods orders data will be published. Let us see how the outcome shapes and affects the US dollar. The chance of a break higher in GOLD is looming ahead of the release.

There is a critical bearish trend line formed on the hourly chart of GOLD, which is currently protecting the upside. However, there are a lot of bullish signs developed on the hourly chart, as GOLD is trading above the 100 and 200 hourly moving averages. Moreover, it recently bounced a couple of times from the 50% fib retracement level of the last leg from the $1174 low to $1207 high. Let us see whether GOLD buyers can manage to break the highlighted trend line or not. A break above the same might take the prices towards the $1210 level, followed by the $1230 level. Any further gains might be limited in the near term.

GOLD 11.26.2014

On the downside, the most important support is around the 100 MA, followed by the 200 MA which is sitting around the 50% fib retracement level.

Overall, one might consider buying with a break above the trend line as long as GOLD is trading above the 100 MA.

Euro Facing A Major Hurdle Against British Pound

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The Euro somehow managed to slowly grind higher against the British pound, but buyers need to be very careful as the EURGBP pair is heading towards an important resistance area in the short term. We need to see whether the pair can manage to break higher or not. If it somehow manages to break the resistance, then there is a chance of a bullish scenario to develop. There is a major economic release lined up during the London session, which might ignite a break in the pair. The UK GPD data will be published, which has a potential to cause a break in the EURGBP pair in the near term.

There is a critical bearish trend line formed on the hourly chart of the EURGBP pair, which might act as a catalyst for the pair moving ahead. The pair is slowly heading towards the mentioned trend line. The most important point is that the same trend line is coinciding with the 100 hourly moving average. There is a chance that the pair might struggle around the 0.7850 levels, but if the sellers fail to defend the mentioned area, then it might head towards the 0.8000 handle. Any further gains should be limited as there is still a lot of bearish pressure looming on the Euro in the near term which could protect any major gains in the pair.

EURGBP 11.26.2014

On the downside, there is one more trend line which is acting as a support as of writing. A break below the same might call for more losses moving ahead.

Overall, one might consider buying with a break above the trend line as long as the pair is trading above the 0.7920 level.

US Dollar Remains Buy On Dips Against Swiss Franc

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The US dollar traded a touch lower against the Swiss franc recently, but it does not mean that the USDCHF pair’s trend has changed. It is still a good option to buy on dips in the near term. As long as the pair is trading above 0.9640 support area it might continue to trade higher. There is an important release lined up later during the NY session. The US Gross Domestic Product report will be released by the US Bureau of Economic. The market is expecting a minor decline this time from the last reading of 3.5% to 3.3%. Let us wait and see if the outcome can manage to exceed the expectation or not.

There was a monster bearish trend line formed on the hourly chart of the USDCHF pair, which was broken recently by the US dollar buyers. This break ignited a sharp upside in the pair as it traded towards the 0.9725 level. It is now correcting lower and might head towards the 50% fib retracement level of the last leg from the 0.9529 low to 0.9725 high. The most crucial sign to note is the fact that the mentioned fib level is coinciding with the broken trend line, 100 moving average and 200 moving average. So, the US dollar buyers might appear around the 0.9630 level if reached in the short term.

USDCHF 11.25.2014

On the upside, the USDCHF pair might face hurdle around the 0.9700 handle. Any further gains might take the pair towards the last swing high of 0.9725.

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

Aussie Dollar Struggling To Hold Ground Against Greenback

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The Aussie dollar traded lower against the US dollar recently, and broke an important support area around the 0.8620 levels. This particular break has put a lot of pressure on the Aussie dollar buyers and it looks like that the AUDUSD pair might continue trading lower in the near term. There was no major release lined up during the Asian session in Australia, but the FX market sentiment was favouring the Aussie dollar sellers. As a result, the AUDUSD pair was seen trading lower towards the 0.8560 support area. We need to see how the pair trades during the coming sessions as pressure mounts in the near term.

There was a critical short-term bullish trend line formed on the hourly chart of the AUDUSD pair, which was breached recently. The most important point is the fact that the pair is now trading below the 100 and 200 hourly moving averages, which is a strong bearish sign. If we connect the last two swing lows, then the pair will meet a possible trend line around the 0.8770 level where there is a chance that the Aussie buyers might try to protect the downside in the pair. There is a possibility of a spike higher from the current levels towards the broken trend line, which might act as a resistance moving ahead.

AUDUSD 11.25.2014

On the downside, initial support is around the next possible bullish trend line, followed by the last swing low of 0.8560. The hourly RSI is around the extreme levels raising the case of a correction in the short term.

Overall, one might consider selling rallies as long as the pair is trading below the broken trend line.

Euro At Risk Of More Downside Moving Ahead

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The Euro headed lower against a few major currencies during this past week, including the Japanese yen. The Euro remains under severe bearish pressure and that is the reason why it might move lower in the short term. There was an important support for the EURJPY pair which was breached earlier, which has raised the case for more downside in the near term. The German IFO business climate index will be released later during the London session, which is expected to register a minor improvement this time. If the outcome misses the forecast, then the Euro sellers might take control in the near term.

There was a monster bullish trend line formed on the hourly chart of the EURJPY pair, which was broken recently. This break was crucial, as it has opened the doors for more downside towards the 144.00 area. The pair is currently struggling to break the 200 hourly moving average, which is a positive sign as of now. So, there is a chance of a correction in the short term, which might take the pair towards the 38.2% fib retracement level of the last drop from the 149.12 high to 145.57 low, which also coincides with the broken trend line. Moreover, the 100 hourly moving average is also sitting around the mentioned resistance area.

EURJPY 11.24.2014

On the downside, initial support is around the 200 MA. We need to see how long the EURJPY pair can manage to hold the downside. A break below the same might take it towards 144.00.

Overall, one might consider selling rallies as long as the pair is trading below the broken trend line.

British Pound Might Continue To Struggle

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The British pound consolidated in a range against the US dollar this past week, and traded with a more or less bearish tone. We need to see how the GBPUSD pair trades during this week, and whether it can overcome the bearish pressure or not. There are some key releases lined up this week in the UK and the US, which might impact the GBPUSD pair in the near term. The pair is currently struggling to break an important resistance area. If it somehow manages to break it and trade above it then there are chances of the pair trading higher moving ahead.

There is a critical bearish trend line formed on the hourly chart of the GBPUSD pair, which has acted as a resistance on a number of times. The pair is again heading towards the mentioned trend line. The most important and worrying point to note from the charts is the fact that the 100 hourly moving average is also sitting around the mentioned trend line. So, there is a high probability that the pair might struggle around the 1.5660-80 area. Only a break above the same might call for more gains in the near term. In that situation, the next target could be around the 1.5710-20 area, which is again an important hurdle for the pair.

GBPUSD 11.24.2014

On the downside, initial support is around the last swing low of 1.5624, followed by the last low around the 1.5580 area. The hourly RSI is below the 50 level, which is another bearish sign.

Overall, one might consider selling rallies as long as the pair is trading below the 100 MA.