USDJPY in bounce mode eyeing 107.50.

Trading 08 sept 2019 Commentaire »

As we warned in previous posts, USDJPY was ready for a bounce towards 107-107.50 and maybe higher. Price broke above short-term resistance and is trying to recapture 107. There is potential for a move higher and bulls are in control of the short-term trend as long as price is above 105.85.

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Red line - short-term resistance

Blue lines - bullish divergence

Green line - important resistance trend line

USDJPY is expected to move towards the green trend line resistance around 107.50. Short-term trend is bullish and as can be seen in the 4 hour chart below, price is above the Kumo (cloud) with tenkan-sen (red line indicator) above the kijun-sen (yellow line indicator) and with a recent bullish cross.

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Support in the 4 hour chart is found in the upper cloud boundary at 106.30. Major support is at the lower cloud boundary at 105.60. Bulls do not want to see price break below that level. Trend is bullish in the short-term as long as price is above the cloud. The Chikou span and both tenkan-sen kijun-sen indicators are positively sloped implying more upside should be expected at least at the start of the week.The material has been provided by InstaForex Company - www.instaforex.com

EURUSD gets rejected at previous support now resistance area of 1.1050.

Trading 08 sept 2019 Commentaire »

EURUSD has bounced as expected from 1.0950 to 1.1050 as expected. Price back tested the previous support now resistance area and got rejected. This bounce was a selling opportunity as we explained since trend remains bearish and price challenged the cloud resistance.

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Red rectangle -resistance

EURUSD bounced towards cloud resistance and got rejected. Price has broken below the tenkan- sen (red line indicator). Support is found at 1.10 by the kijun-sen (yellow line indicator). Breaking below it combined with a break below the Kumo (cloud) would be a bearish signal at least for the short-term. If the tenkan-sen (red line indicator) crosses the kijun-sen (yellow line indicator) we will have another bearish signal for EURUSD that could lead to a move below 1.09. On the other hand if support at 1.10 holds and price breaks above 1.1085 then we have a bullish signal. However traders need to be very cautious even if price breaks above resistance and wait for a pull back towards cloud support.

The material has been provided by InstaForex Company - www.instaforex.com

Weekly analysis on Gold

Trading 08 sept 2019 Commentaire »

Gold price despite making a slightly higher high this week at $1,557, price reversed and closed below last week's low breaking below short-term support levels. The bearish divergence warning signs that we noted in previous posts together with one more new higher high come to life.

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Red lines -medium-term bullish channel

Red rectangle - resistance

Green rectangle - support

Gold price initially moved above the red resistance area but it seems that was a false break out. The chances for this happening were high because we noted in previous posts that the bullish trend was weakening and each new higher high was followed by a divergent high by the RSI. Breaking below $1,533 was the confirmation of the false breakout. Price failed to hold above the green support area and is now moving lower. Our short-term target is the medium-term lower channel boundary near $1,480. Short-term trend is bearish. Support is at $1,490-$1,500 and breaking below this level will certainly push prices lower to test the channel support.

The material has been provided by InstaForex Company - www.instaforex.com