British Pound Might Continue Trading Higher Against Swiss Franc

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There British pound managed to gain traction against the Swiss franc recently and jumped above the 1.3840 resistance area. The GBPCHF pair is following a nice bullish trend, which might continue in the near term, as the British pound seems to be gaining momentum. There is an important release lined up during the London session, as the UK Consumer Credit report will be released by the Bank of England. The market is expecting it to register a reading of £1.200B in December 2014. Let us see how the British pound reacts to the outcome and whether it can continue trading higher or not moving ahead.

There is a monster bullish trend line formed on the hourly chart of the GBPCHF pair, which is acting as a barrier for the British pound sellers. The pair is well above the 100 and 200 hour moving average, which is a positive sign. However, the pair is trading around the highlighted trend line, and it would be interesting to see how the pair trades in the near term. The chance of a break lower is less, as the hourly RSI is also above the 50 mark. It somewhat depends on the incoming economic data. If the pair continues to trade higher, then a move above the last high of 1.3973 might take the pair towards the 1.40 level in the short term.

GBPCHF 01.30.2015

If the British pound sellers manage to clear the highlighted trend line, then the pair might head towards the 100 hour MA.

Overall, one might consider buying dips in the GBPCHF pair as long as it is trading above the stated trend line.

EURUSD Might Present A Buying Opportunity

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There Euro somehow managed to gain some ground against the US dollar, and broke an important resistance area. The economic releases in the Euro area were not on the positive side recently, but still the pair managed to gain bids and contain the downside may be due to the oversold readings. Today is an important day as a critical release is lined up during the London session, as the Euro area consumer price index will be released. The market is expecting it to decline by 0.5% in January, which if stays in line or beats the forecast, then the Euro might gain traction moving ahead.

There was a critical bearish trend line formed on the hourly chart of the EURUSD pair, which was recently cleared by the Euro buyers. This particular break has opened to the doors more gains in the near term. The most important point here is the fact that the pair has closed above the 100 hour moving average, which is also a bullish sign. If the pair moves lower from the current levels, then it might find support around the same broken trend line. The 38.2% fib retracement level of the last leg from the 1.0976 low to 1.14221 high is also around the same area. So, there are a lot of reasons for the Euro buyers to take control if the EURUSD pair moves lower from here.

EURUSD 01.30.2015

On the upside, the most crucial resistance is around the 200 hour moving average where sellers might put up a fight in the near term.

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

NZDUSD Looks Set For More Downsides

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There were a couple of important releases lined up during the Asian session today in New Zealand. The first one was the RBNZ interest rate decision in which the central bank decided to keep the interest rates unchanged. However, the eye-catching point was the fact that the central bank was dovish more than expected. This caught the attention of the Kiwi dollar sellers, as the NZDUSD pair traded lower after the release. Moreover, the Trade balance data was also released by Statistics New Zealand. The forecast was slated for a trade deficit of $-0.98B in December 2014, but the outcome was a touch disappointing, as the deficit was $-1.15B in December 2014, compared to the same month a year ago. This again mounted pressure on the NZDUSD pair.

There was a crucial bullish trend line formed on the hourly chart of the NZDUSD pair, which was recently breached by sellers. It opened the doors for sharp downside in the near term. Furthermore, the RBNZ statement ignited more losses and the pair traded below the 0.7350 support area. It traded as low as 0.7298. There is a chance of a minor pullback in the pair as the hourly RSI is around the extreme oversold region. However, any correction from the current levels might take the pair towards the 23.6% fib retracement level of the last drop where sellers might appear again.

NZDUSD 01.29.2015

If the NZDUSD pair moves lower, then the 0.7300 support area might come into play. A break below the same might call for more losses towards the 0.7250 level.

Overall, one might consider selling rallies in the NZDUSD pair as long as it is trading below the 38.2% fib retracement level.

USDCHF At Risk Of A Major Break

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The US dollar was seen trading lower against the Japanese yen, as the latter one managed to get bids during the past couple of sessions. However, the USDJPY pair is testing an important support area, which might act as a catalyst for the pair in the near term. The fed interest rate decision failed to cause much of action in the Forex market. The US dollar traded a bit higher against the Euro and the British pound. However, at the same time struggled against the Japanese yen. Let us see whether the pair can hold the 177.20-30 support area or not in the near term.

There is a monster bullish trend line formed on the hourly chart of the USDJPY pair, which acted as a support for many times. The pair recently bounced from the highlighted trend line and currently heading back towards the 200 hour moving average. The mentioned MA might act as a resistance for the pair, as it is sitting around the 61.8% fib retracement level of the last drop from the 118.25 high to 117.24 low. Moreover, the 100 hour MA is also just above the 200 hour MA. So, in short there is a major resistance formed around the 118.00 area. If the US dollar buyers fail to break the same, then more losses are likely in the near term.

USDJPY 01.29.2015

On the downside, a break below the highlighted trend line might be a bearish call for the USDJPY pair. In that situation, the pair might head towards the 116.50 support area.

Overall, one might consider buying dips in the USDJPY pair as long as it is trading above the stated trend line.

GOLD Positioning For Gains In Short Term

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GOLD after testing the $1270 support area managed to climb back higher and recently broke an important resistance area around $1280. GOLD managed to gain buyers lately as the economic releases in the US failed to match the expectation. It is likely aligning itself for more gains in the near term, and if the US dollar correct lowers then it might have one more reason to go higher moving ahead. There is no major release scheduled in the US today, which means GOLD might trade in a range or according to the FX market sentiment.

There was an important bearish trend line formed on the hourly chart of GOLD, which was recently breached and opened the doors for more gains in the near term. The most important point is that GOLD is now trading above the 100 and 200 hour moving averages. This might encourage buyers to take the prices higher. Any correction from the current levels could be seen as a buying opportunity. The broken trend line might act as a support, as the 200 hour simple moving average is also sitting around the same area. Moreover, the 50% fib retracement level of the last leg from the $1272 low to $1297 high is also around the same area. In short, there is a major support around the $1284-2 area.

GOLD 01.28.2015

On the upside, a break above the $1292 level might take GOLD towards the $1300 level where sellers are likely to defend more gains moving ahead.

Overall, one might consider buying dips GOLD as long as it is trading above the 200 MA.

Euro Might Trade Above 0.7500 Moving Ahead

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The Euro somehow managed to gain bids around the 0.7400-20 level recently against the British pound and corrected back higher. However, it is facing an important resistance area on the upside, which is protecting gains in the EURGBP pair. The British pound performed well recently, and it moistly depends on how it perform moving ahead for break in the EURGBP pair. The German GFK consumer confidence will be released today, which might cause some swing moves in the EURGBP pair. The market is expecting a minor rise this time from 9 to 9.1. If it exceeds the forecast, then gains are possible in the shared currency.

There is a monster bearish trend line formed on the hourly chart of the EURGBP pair, which recently acted as a resistance for the pair. The pair is now moving towards the 38.2% fib retracement level of the last leg from the 0.7403 low to 0.7510 high where it might find support in the short term. The most important support is seen around the 50% fib level. If the pair moves higher and breaks the highlighted trend line, then it might be considered as a bullish call, which could push the pair towards the 100 hour MA. The 100 hour MA is the next major barrier for the upside in EURGBP, which needs to be breached if the pair has to continue trading higher.

EURGBP 01.28.2015

The downside might be limited in the EURGBP pair considering the fact that the market sentiment is not favouring sellers much in the near term.

Overall, one might consider buying with a break above the trend line in the EURGBP pair as long as it is trading above the 0.7450 level.

Buy Dips In USDCHF

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The US dollar corrected a bit lower against the Euro and the British pound, but at the same time it traded higher against the Swiss franc. In short, the Swiss franc weakened which pushed the USDCHF and EURCHF higher. The USDCHF pair traded higher and broke an important resistance area, which opened to doors for more upsides in the near term. There are several important releases lined up today in the US, including the services PMI and new home sales data. It would be interesting to see how the pair trades in the coming sessions. There is a possibility of a correction, but it can be considered as a buying opportunity.

There was a critical bearish trend line formed on the hourly chart of the USDCHF pair, which was breached recently and encouraged the US dollar buyers to take the pair higher. Currently, the pair is trading above the 0.90 resistance, but struggling to clear the 0.9040 pivot. So, there is a chance of a correction in the near term back towards the broken trend line where buyers might appear again. Moreover, the 23.6% fib retracement level of the last leg from the 0.8515 low to 0.9040 high is also around the same area. So, a lot of buying interest might be seen if the pair reaches towards the 0.8900-20 area.

USDCHF 01.27.2015

On the upside, the last high of 0.9040 holds a lot of importance. Once it is breached, then the USDCHF pair might head towards the 0.9100 area.

Overall, one might consider buying dips around the broken trend line in the USDCHF pair as long as it is trading above 0.8900.

AUDUSD Eying A Major Break

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The Aussie dollar recently struggled a lot against the US dollar, as the AUDUSD pair traded towards the 0.7858 level. Now the pair is seen correcting higher and forming a major breakout pattern, which might act as a catalyst in the near term. The Australian National Australia Bank Business Confidence was released during the Asian session. The outcome was a touch positive as the confidence rose from the previous reading of 1 to 2. This is not a major reason for the Aussie dollar, but the oversold conditions might take it higher in the near term. We need to see how the pair reacts around the 0.7940 resistance area.

There is a crucial triangle forming on the hourly chart of the AUDUSD pair, which is contracting and about to break as can be seen from the chart. The chance of a break higher is more compared to a move lower, as the hourly indicators suggesting a push towards the 100 hour moving average. Currently, the pair is struggling to clear the triangle resistance area, which is also coinciding with the 23.6% fib retracement level of the last drop from the 0.8136 high to 0.7858 low. So, if the pair manages to clear it, then the chances of a move towards the 50% fib retracement level is possible in the short term. The most important resistance is around the 100 hour MA.

AUDUSD 01.27.2015

On the downside, the triangle support area might act as a support. A break below the same might call for more losses may be back towards the last low.

Overall, one might consider buying with a break above the triangle resistance in the AUDUSD pair as long as it is trading inside it.

Euro Heading Towards A Critical Barrier

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The Euro traded lower recently against the Japanese yen and tested the 130.10-00 support area. It is currently retracing higher, but heading towards an important resistance area. Earlier today, the Japanese Merchandise Trade Balance Total was released by the Ministry of Finance. The outcome was a touch better as the trade deficit was around ¥-660.7B whereas the market was expecting it to be around ¥-740.3B. Moreover, the Japanese Exports of goods and services, released by Japan Customs managed to register an increase of 12.96%. However, the imports were on the lower side compared with the expectation of 2.3% increase it came in at 1.9%.

There is a monster bearish trend line formed on the hourly chart of the EURJPY pair, which might act as a catalyst for the pair in the near term. Currently, the pair is testing the 38.2% fib retracement level of the last drop from the 135.04 high to 130.14 low. However, the most important resistance is around the highlighted trend line. There is a chance that the pair might struggle to clear the 132.20-30 area and continue trading lower. The hourly RSI is still below the 50 level, which is a discouraging sign. A break above the trend line could be a bullish call for the Euro buyers and the pair might climb higher in that situation.

EURJPY 01.26.2015

On the downside, the recent low of 130.14 might act as a support. A break below the same might call for more downsides in the near term.

Overall, one might consider selling rallies in the EURJPY pair as long as it is trading below the highlighted trend line.

GBPUSD Looks Set For More Downsides

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The British pound followed the Euro to some extent and traded lower against the US dollar. The most important point is that the GBPUSD pair even breached the 1.50 level to trade close to the 1.4950 level. Currently, it is back above the 1.50 level, but remains at risk of more downsides in the near term. The UK BBA Mortgage approvals data will be published today. The chances of a major movement is very less, but it would be interesting to see how long the pair can stay above the 1.50 level. There are several resistances on the way up which might protect upside moving ahead.

There was a critical bullish trend line formed on the 4 hour chart of the GBPUSD pair, which the British pound sellers managed to clear recently. This particular break ignited sharp downside, which took the pair below the 1.50 level. Currently, the pair is correcting higher and trading around the 23.6% fib retracement level of the last drop from the 1.5211 high to 1.4950 low, which is acting as a resistance for the pair. If the pair manages to climb a bit higher, then the most important barrier is around the broken trend line where the 100 hour moving average is also coinciding. Moreover, the 50% fib retracement level is also just below the mentioned resistance area.

GBPUSD 01.26.2015

On the downside, the recent low of 1.4950 can be seen as a support. A break below the mentioned level can be considered as a bearish sign in the short term.

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