Weekly bullish hammer candlestick in AUDUSD

Trading 10 août 2019 Commentaire »

AUDUSD made a new lower low the past week at 0.6677 but managed to close near its weekly highs around 0.6784 forming a bullish hammer candlestick pattern. This bullish pattern in order to be confirmed needs a bullish follow through the coming week.

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As pointed out in previous posts, in the 4 hour chart the AUDUSD pair has been showing bullish divergence signs in the RSI. The weekly candle implies that a bounce is coming and we should expect more upside the coming weeks. Price has so far retraced nearly 38% of the decline from 0.7081 and our minimum bounce target is at 0.6930. The weekly hammer gives us hopes for a longer-term and bigger bounce even above 0.7050 but it is too early to tell if this will be the case. The foundation has been placed, we now need to see strength from buyers and a sequence of higher highs and higher lows on a daily and weekly basis.

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EURUSD forming a bullish pennant pattern

Trading 10 août 2019 Commentaire »

EURUSD has made an impressive bounce from 1.10 to 1.12 and is now forming a bullish pennant pattern. A break out above 1.1250 would give us 1.1330-1.1350 as the first target area to watch out for.

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Purple lines - pennant pattern

EURUSD despite making new lows at the start of August, last week was a large scale bounce as we expected given the warnings from the bullish RSI divergence signs. Now that price is 200 pips higher from its lows we see a bullish pennant formation. Resistance is at 1.1250 and support at 1.1165. Keep a close eye on these two levels as a break of either will point the direction of the move we should expect to see next. The most probable scenario is the bullish break out as the longer-term technical picture of EURUSD favors a longer-term bullish reversal from the current levels.

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Is Gold forming a bull flag pattern

Trading 10 août 2019 Commentaire »

After a strong rally from $1,400 to $1,510, Gold price is consolidating sideways. This could be a bull flag forming. A break above $1,510 would be a bullish sign as long as price holds above $1.490-85.

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Red lines - bull flag pattern

Purple line - potential price action

Blue rectangle - major support area

Gold price is most probably forming a bull flag pattern. Price might continue to move sideways for the first couple of sessions next week. A break out above $1,510 would be a bullish sign that would give us $1,530 our first short-term target and next $1,550. Breaking below $1,490-85 would most probably cancel the bull flag pattern possibilities, but it would not cause problems to the medium-term bullish trend. Major support area is found at $1,440-50 and any pull back towards that area is considered a buying opportunity.

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Dollar Stays Mostly Subdued

Trading 10 août 2019 Commentaire »

The U.S. dollar stayed subdued below the unchanged line for the entire duration of the session on Friday, with traders tracking the developments on trade and economic fronts.

The dollar index, which dropped to a low of 97.36, recovered subsequently and was last seen moving around 97.50, down by about 0.11% from previous close.

According to the data released by the Labor Department, U.S. producer prices showed a modest increase in the month of July, reflecting a rebound in energy prices.

The producer price index for final demand rose by 0.2% in July after inching up by 0.1% in both May and June, the data said. The uptick in prices matched economist estimates.

Meanwhile, core producer prices, which exclude food and energy prices, edged down by 0.1% in July after climbing by 0.3% in June. Economists had expected core prices to rise by 0.2%.

Against the euro, the dollar was down 0.22% at 1.1205.

The Pound Sterling weakened to $1.2027, losing more than 0.8%, after the UK economy unexpectedly contracted for the first time in more than six years in the second quarter, fueling fears of a recession even ahead of Brexit due for October 31.

Gross domestic product fell 0.2% sequentially, partly reversing the first quarter's 0.5% growth, a first estimate from the Office for National Statistics showed Friday. GDP was forecast to remain unchanged.

On an annual basis, the economy grew at a slower pace of 1.2% after rising 1.8% in the first quarter.

The Japanese currency was up 0.4%, trading at 105.64 yen a dollar, having recovered from a low of 106.09 yen a dollar.

The dollar was down 0.1% against the loonie with the dollar-loonie pair trading at 1.3214.

Against Swiss franc, the dollar was down nearly 0.2% at 0.9726, and against the Aussie, it moved up 0.28% with the pair quoting at 0.6783.

Switzerland's unemployment rate remained unchanged in July, data from the State Secretariat for Economic Affairs showed. The jobless rate came in at a seasonally adjusted 2.3% in July, remaining unchanged from June, and was in line with economists' expectation.


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