USDCAD challenges important resistance

Trading 06 oct 2019 Commentaire »

USDCAD has reached the important resistance are of 1.3360 last week and price got rejected. This resistance area is important if USDCAD bulls want to continue to push price higher towards 1.35.

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Blue lines - long-term bullish channel

Blue rectangle - major resistance area

USDCAD is making higher highs and higher lows on a daily basis. Price is challenging the blue resistance area and if it breaks above it, we should expect USDCAD first to reach 1.3490. Support is at 1.32 and as long as price is above this level, bulls remain in control of the trend. Breaking below this level will put the longer-term up trend in danger.

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

Daily Analysis on USDJPY using Ichimoku clouds

Trading 06 oct 2019 Commentaire »

USDJPY ended last week on a negative note but price stopped the decline right on top of the Daily Ichimoku cloud. USDJPY has strong support at 108.85 not only from the Ichimoku perspective but also from the Fibonacci point of view.

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USDJPY has so far reached the 38% Fibonacci retracement and the upper cloud boundary. Support is important at current levels. A bounce is justified if not a full scale upward trend reversal. Resistance is at 107.10 and 107.50. Breaking above this zone will open the way for a move above 108. Inability to break 107.50 will most probably lead to a decline below 106.85 towards 106 where we find the 61.8% Fibonacci retracement.The material has been provided by InstaForex Company - www.instaforex.com

Weekly EURUSD analysis

Trading 06 oct 2019 Commentaire »

EURUSD remains in a weekly bearish trend. Price bounced 100 pips from the 2019 lows at 1.0879 but bears remain in full control of the trend. Price remains inside the long-term wedge pattern and is heading towards the 78.6% Fibonacci retracement of the entire 1.0340-1.2555 rise.

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Black lines - resistance trend lines

Green line - major support trend line

EURUSD touched again the green trend line support and bounced. Price has broken below the 61.8% Fibonacci retracement and this is now resistance. Short-term resistance is found at the first black trend line at 1.1030. A weekly close above it will open the way towards the second black trend line resistance at 1.1190 where we also find the 61.8% Fibonacci level.

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In Ichimoku cloud terms as long as price is below 1.1065 bulls remain weak. A weekly close above it will open the way for a move towards 1.1150 at least with potential reaching the lower Kumo (cloud) boundary near 1.13. Long-term trend remains bearish but bears should lower stops and protect their profits as the bullish wedge pattern shown in the first chart could push price towards 1.14 if we see a break out above the wedge.

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

Weekly Gold analysis

Trading 06 oct 2019 Commentaire »

Gold price had a strong positive week with a low at $1,459 while in the end it closed near its highs at $1,504. $1,500 remains a pivotal price level and as long as price holds above it bulls could make another try to break the weekly resistance at $1,535.

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Red rectangle - overbought RSI Possible top

Green line -major long-term support trend line

Gold price ended last week above $1,500 having a positive week despite the deep pull back towards our first target of $1,460. Price bounced strongly and closed above $1,500. However the important resistance is last week's high at $1,536. A break above this level will open the way for $1,600. Bulls however need to be very cautious as the weekly RSI is turning lower below 70. A break in price below last week's low would be a very bearish sign.

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In Ichimoku cloud terms, bulls barely saved the day the last minute. A weekly close above $1,496 held bulls in control of the trend. Will they be strong enough this week? A weekly close below $1,496 in Ichimoku cloud terms would open the way for a move towards $1,410. So bulls need to be very cautious.The material has been provided by InstaForex Company - www.instaforex.com