GBPJPY Looks Set For Gains

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The British pound fell against the Japanese yen recently, but it found buyers around a critical support area where buyers defended losses in the GBPJPY pair. Today, there were a couple of economic releases in Japan, which ignited moves in the yen pairs. The unemployment rate was released the Ministry of Health, Labour and welfare and published by the Japan Statistics Bureau. The market was not expecting any rise in the unemployment rate, but the outcome was lower as the Japanese unemployment rate climbed to 3.6% in January 2015, compared to the preceding month. This helped the GBPJPY pair to some extent and caused an upside reaction in the short term.

There was a support trend line formed on the hourly chart of the GBPJPY pair, which helped the pair and protected the downside in the near term. Currently, the pair is correcting lower and moving towards the 38.2% fib retracement level of the last drop from the 185.01 high to 183.57 low. However, there is a major point to note that the pair is now trading above the 100 hour MA, which is a bullish sign. If the pair gains momentum, then the next level of interest would be around the 50% fib level where the British pound sellers might try to protect the upside in the short term. Any further gains might be limited considering the importance of 184.40 resistance area.

GBPJPY 02.27.2015

On the downside, the 100 hour MA might act as a support, followed by the highlighted trend line where buyers might appear again

Overall, one might consider buying dips around the 100 MA as long as it is trading above the stated trend line.

Euro Nosedived, Eyes More Losses

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The Euro was seen trading lower against the US dollar, as the EURUSD pair sellers managed to gain strength and took the pair lower. There were several releases recently in the US, which were on the positive side of the US dollar. It ignited a downside reaction in the EURUSD pair and it moved back towards the 1.1200 support area after breaking an important hurdle. There are again several releases lined up today in the Euro area and the US. The Germany consumer price index will be released by the Statistiches Bundesamt Deutschland today during the London session. If the German CPI fails to impress and dives further, then it might ignited more losses in the EURUSD pair.

There was a major bullish trend line formed on the hourly chart of the EURUSD pair, which was cleared by the Euro sellers recently. The downside reaction was very swift in the pair and ignited sharp losses in the short term. The pair moved more than 80 pips lower and cleared an important support area around the 1.1280 level. The EURUSD pair is currently around the oversold area, so there is a chance of a correction from the current levels. However, if the pair moves higher from the current levels, then initial resistance is around the 23.6% fib retracement level of the last drop from the 1.1378 high to 1.1181 low.

EURUSD 02.27.2015

On the downside, a break of the low around the 1.1180 level might ignite sharp losses in the EURUSD pair moving ahead.

Overall, one might consider selling rallies around the 38.2% fib level as long as it is trading below the 50% fib level.

USDJPY Looks Set For A Push Higher

dollar yen 9

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‘The US dollar traded lower against the Japanese yen, but found support around an important area, which means the USDJPY pair might climb higher one more time. There were some releases in Japan during the Asian session, which had no impact on the yen pairs. Most of them were seen trading in a range and some of them were seen gaining traction. There are some important releases lined up during the NY session today, including the Consumer Price Index (CPI) and CPI Ex Food & Energy, which will be released by the US Department of Labor Statistics. The inflation report holds a lot of importance for the US dollar and might impact USDJPY to a great extent.

There was a crucial bearish trend line formed on the hourly chart of the USDJPY pair, which was one of the reasons the US dollar buyers held the downside. Moreover, the pair found support around the 76.4% fib retracement level of the last leg from the 118.28 low to 119.82 high. Furthermore, the hourly RSI is now above the 50 level, which is a positive sign in the near term. Currently, the pair is trading above the 200 hour moving average, and attempting to break the 100 hour MA. If buyers succeed in doing so, then there is a chance of more gains in the short term.

USDJPY 02.26.2015

On the downside, a break of the highlighted trend line might be bearish for the USDJPY pair, which might ignite downside reaction moving ahead.

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

Buy Dips In NZDUSD

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The New Zealand dollar surged higher against the US dollar recently and blasted above an important level to trade higher. The NZDUSD recent moves suggest that the pair might continue trading higher in the near term. There were a couple of important releases lined up during the Asian session in the New Zealand. The Trade balance report was released by Statistics New Zealand, which registered a reading of $-1.41B in January 2015, compared to the same month of the last year. This was somehow above the forecast and helped the NZDUSD pair in the short term.

There was a critical bearish trend line formed on the hourly chart of the NZDUSD pair, which was breached recently by the Kiwi dollar buyers. The pair traded as high as 0.7575 where it found sellers and is currently moving lower. There are several support levels on the way down for the pair starting with the 23.6% fib retracement level of the last leg from the 0.7420 low to 0.7575 high. However, the most important one is around the broken trend line where sellers are likely to struggle in the near term. There is also a crucial support just below the trend line as the 100 and 200 hour moving averages are colliding, which is likely to act as a barrier for the Kiwi dollar sellers.

NZDUSD 02.26.2015

On the upside, the last wing high of 0.7575 might act as a resistance, but if buyers clear it then a move towards the 0.7800 swing area is possible.

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

GOLD Remains An Attractive Buy

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The US dollar traded lower to some extent against most major currencies, including the Aussie dollar and the Euro. GOLD was also not far behind. It was seen trading lower ahead of the Yellen speech, but soon after her speech it recovered ground and traded higher. GOLD buyers managed to clear an important resistance area, which means there is a chance of more gains in the near term. The Fed’s Yellen is also scheduled for her second speech today. So, let’s see how the dollar trades in the coming sessions. Moreover, the number of new home sales will be released by the US Census Bureau. The market is expecting a decline in January 2015, which if fulfilled might help GOLD.

There was a monster bearish trend line formed on the hourly chart of GOLD, which was cleared recently by buyers. Currently, GOLD is heading towards the 50% fib retracement level of the last leg from the $1236 high to $1188 low. The mentioned fib level holds a lot of importance in the near term, as the 200 hour moving average is also sitting around the same area. So, there is a chance of a correction in the short term, which might find support around the 100 hour MA. Moreover, the broken trend line might also act as a support moving ahead.

GOLD 02.25.2015

A break above the 200 hour MA could ignite sharp gains in GOLD, which could take it towards the $1220 resistance area where sellers might appear.

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

EURGBP Looks Like Setting Up For Correction

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The Euro was seen trading lower against the British pound, but it looks like the EURGBP pair is finding buyers around the 0.7300-20 support area. There is a chance of a correction in the EURGBP pair, which can be again seen as a selling opportunity. There are a couple of important releases lined up in the Euro zone and the UK, including speeches from both the central banks head – Mario Draghi and Carney. So, one might witness a lot of moves in the EURGBP pair, which is likely to make or break in the near term. We need to see how it trades in the near term and whether it can break the 0.7310 support area or not.

There is a crucial bearish trend line formed on the hourly chart of the EURGBP pair, which is likely to act as a magnet for the pair in the near term. The pair is currently testing the 23.6% fib retracement level of the last leg from the 0.7428 high to 0.7315 low. If the pair manages to clear it, then the next hurdle can be seen around the 100 hour moving average, which is sitting around the 38.2% fib level. The most important resistance is seen around the highlighted trend line where the 200 hour MA is also colliding to act as a barrier for the Euro buyers.

EURGBP 02.25.2015

On the downside, the last swing low of 0.7310 might act as a support. A break below the stated level might call for more losses in short term.

Overall, one might consider selling rallies in the EURGBP pair as long as it is trading below the 200 hour MA.

Dollar Nervous As Yellen Takes Stage

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The US dollar corrected a bit lower against a few major currencies including the Euro and the British pound. However, it gained traction against the Swiss franc and the Canadian dollar. There are many releases lined up today during the NY session including the consumer confidence and the services PMI. The most important one is the speech from the fed chairwoman Janet Yellen. A lot of volatility is expected around her speech and we can witness a lot of swing moves in the US dollar. The USDCHF pair is sitting around an important level, which means that if the US dollar gains traction, then the pair might rocket higher.

There is a major bearish trend line formed on the hourly chart of the USDCHF pair, which might act as a pivot zone for the pair. The pair failed on many occasions around the mentioned trend line so there is a chance of a move towards the 38.2% fib retracement level of the last leg from the 0.9372 low to 0.9524 high. However, the most important support is around the 50% fib level, which is coinciding with the 100 hour simple moving average. A break above the highlighted trend line might call for more gains in the pair, but if it fails to break higher it might head back towards the last swing low.

USDCHF 02.24.2015

On the upside, a break above the highlighted trend line might take the pair towards the 0.9550 resistance area, followed by the 0.9580 level.

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

Aussie Dollar Looks Poised For Gains

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The Aussie dollar struggled a lot against the US dollar and traded lower. There is a major resistance around the 0.7840 area where the Aussie dollar sellers defended the upside time and again. However, there is also a critical support on the downside, which if held, then the AUDUSD pair might gain strength one more time. There are several important releases lined up during the NY session today, including a speech from the fed chairwoman Yellen. Moreover, the US Consumer Confidence will be released by the Conference Board, which is expected to register a reading of 99.6. Let us see how the outcome would be.

There is a monster bullish trend line formed on the hourly chart of the AUDUSD pair, which is currently protecting downside in the near term. However, there is a bearish sign to note as well, as the pair is now trading below the 100 hour moving average. Still, there is a major point that the pair is finding buyers around the 61.8% fib retracement level of the last leg from the 0.7755 low to the 0.7847 high, which is sitting around the stated trend line. Moreover, the 200 hour MA is sitting just below the highlighted trend line, which means bulls are here to stay, and might take the pair higher in the short term.

AUDUSD 02.24.2015

On the upside, initial hurdle is around the 100 hour MA, and if buyers break it, then a move towards the 0.7820 level is very likely.

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

 

EURJPY Looks Set To Break Higher

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The Euro managed to gain traction against the Japanese yen recently and traded towards the 135.50-60 resistance area where the Euro sellers managed to hold the upside in the near term. There was no release lined up in the Asian session today, but there is an important event lined up in the Euro area. The German IFO business climate index will be released by the CESifo Group. The market is expecting the index to rise from the last reading of 106.7 to 107.7 in January 2015. Moreover, the German IFO Expectations and Current Assessment data will also be released along with the same report.

There is a critical bearish trend line formed on the hourly chart of the EURJPY pair, which might halt the upside in the short term. However, if the Euro buyers step and manage to clear the highlighted trend line, then more upsides are likely moving ahead. So, it depends on the German IFO business climate index to some extent of the EURJPY pair can break higher or not. Currently, the pair is consolidating around the 100 and 200 hour moving averages, which are acting as a support for the pair. However, there is a chance of a spike lower moving ahead towards the 50% fib retracement level of the last leg from the 133.53 low to 135.88 high.

EURJPY 02.23.2015

If the EURJPY pair breaks the highlighted trend line, then the next resistance can be seen around the 136.20 swing area.

Overall, one might consider buying with a break above the trend line in the EURJPY pair as long as it is trading above the 50% fib level.

Can GBPUSD Break Higher?

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The British pound managed to hold the ground against the US dollar, but buyers look like struggling to clear an important resistance area. If they continue to struggle, then there is a chance of a move lower in the near term. The US dollar weakened a bit recently, but it does not mean it is out of woods just yet. In the UK, the CBI Distributive Trades Survey will be released by the Confederation of British Industry. The market is expecting a minor improvement this time. So, we need to see how it shapes and whether the GBPUSD pair can break higher in the near term or not.

There is a monster bearish trend line formed on the hourly chart of the GBPUSD pair, which is acting as a hurdle for the pair on the upside. The most important point is that the pair settled below the 100 hour moving average, which might enforce selling pressure on the pair. However, there is also a fact that the 200 hourly MA is holding the downside in the near term. So, if the pair moves higher from the current levels, then initial hurdle is around the 100 MA, which is sitting around the 38.2% fib retracement level of the last leg from the 1.5479 high to 1.4342 low. Any further upside might see the highlighted trend line.

GBPUSD 02.23.2015

If the GBPUSD pair moves lower from here, then it might find support around the 200 hour MA. A break below the same might ignite losses in the short term.

Overall, one might consider selling around the stated trend line in the GBPUSD pair as long as it is trading below the same.