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EUR/NZD: Support pushing the price towards the upside

EUR/NZD produced a bullish engulfing candle yesterday. Thus, intraday buyers may keep their eyes on the pair to go long. The price has been choppy on the H1 chart so far. However, the price may have found its double bottom support. Thus, it may head towards the North and offer a long entry to the buyers. Chart 1 EUR/NZD H1 Chart The H1 chart shows that the price upon finding its support made a strong bullish move yesterday. It had a rejection at 1.78500 yesterday and today as well. On the other hand, the level of 1.77650 has been working as a level of support. As of writing, the level produced a bullish inside bar at its last bounce. If the price heads towards the North and makes a bullish breakout at the level of resistance, the buyers may go long above 1.78500. Trade Summary: Entry: Buy above 1.78500 Stop Loss: Below 1.77650 Take Profit 1: 1.79080 Take Profit 2: 1.79435 Take Profit 3: 1.80000
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USD/JPY: Eying on the next breakout

USD/JPY has been bullish on the daily chart for the last three trading days. Yesterday’s candle came out as a long bullish candle closing within a significant level of resistance. This may make the pair consolidate around the level before making its next move. However, major intraday charts suggest that the pair may continue its bullish move today as well. Let us now have a look at those three major charts. Chart 1 USD/JPY Daily Chart The chart shows that the price after being bearish had a bounce at 106.085 and headed towards the North finding its resistance at 107.815. The reversal candle came out like a spinning top. The bear looked strong till then. However, the next two candles came out as bullish candles with a long body having no upper shadow. The buyers on the daily chart may want to wait for the price to consolidate and produce a bullish reversal candle to go long in the pair. Chart 2 USD/JPY H4 Chart The H4 chart shows that the price made a strong bullish move before finding its resistance around 107.800. Upon producing a shooting star, it headed towards the South. The level of 107.730 has been working as support. As of writing, the price has been bullish in the last candle. If the level produces a bullish reversal candle, the buyers may go long in the pair above 107.800. The price may find its next resistance around 108.445. Chart 3 USD/JPY H1 Chart The H1 chart shows that the price after making a bearish move had a bounce at 107.365. It seems that the price may have found its resistance, which may make the price come towards the support again. If the support holds and pushes the price towards the North, the buyers may go long above 107.800. On the contrary, if the price makes a bearish breakout at 107.365, it may head towards the level of 107.100. A bearish breakout may make the pair remain bearish in the daily chart for a while. This means, either way, the next breakout is going to be crucial for the pair. The H1 chart looks good for the sellers. The H4 and the daily chart look good for the buyers, though. Thus, we may say that the bull has an upper hand here. This may help the pair make a bullish breakout. If that happens, the USD/JPY buyers are going to be busy buying the pair in the coming days.
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Daily F.X.Analysis, May 12 – Mixed Risk Sentiments In-Play, Eyes on U.S. Retail Sales! 

During the last week on Friday, the data from the U.S. showed the unemployment rate climbed to 14.7% from the expected 16% and again supported the U.S. dollar. The Average Hourly Earnings from the U.S. also increased to 4.7% from expected0.5% and supported the dollar. On the news front, the eyes will remain on the European industrial production figures, but the event is a medium impact, and it may not drive sharp selling or buying in the market today. Yesterday, the BTC/USD opened with a vast gap, falling sharply below 10K psychological resistance level to 8,500 support zone. Currently, the leading crypto pair is gaining support at this level and has closed a Doji candle above the 8,500 level. The BTC/USD prices have declined towards the $8,000 support mark after being discarded from the psychological $10,000 resistance mark during the weekend. Looking forward to this week, the BTCUSD sellers seem dominant, and they may target the $6,500 mark if they can drive a violation of BTC price below the $8,000 support zone this week. The BTCUSD is particularly bullish while trading over the $8,700 mark, key resistance is located at the $9,400 and the $10,000 marks. If the BTCUSD pair trades beneath the $8,700, sellers may examine the $8,000 and $7,000 support marks. At the moment, the volatility in the leading cryptocurrency is notably high. Nevertheless, from a technical perspective, Bitcoin's downside is maintained by the assembly created by the 61.8% Fibonacci level and the 200-day SMA. Today, a bearish breakout of 8,500 level may extend selling bias until the next support level of 8,230. BTC/USD - Daily Technical Levels Support Resistance 8,054 9,485 7,376 10,239 6,622 10,917 Pivot Point 8,808 BTC/USD – Daily Forecast The BTC/USD hasn't changed much as the huge gap continues to stay there. The Bitcoin has dropped sharply below 10K psychological resistance level to 8,500 support zone. Currently, the BTC/USD prices are gaining support above 8,400 level and 8,100 level. Today, bearish breakout and closing of candles below 8,450 level may extend selling bias until the next support level of 8,120. However, if Bitcoin continues to close candles above the 8,500 level, we may see bullish correction until the 9,000 level. The EUR/USD currency pair flashing red but still trading above 1.0802, having hit a low of 1.0784 early on the day, and the prospectus of shared currency bullish bias during the next session seem eased mainly due to the broad-based U.S. dollar strength in the wake of risk-off market sentiment. The second wave of coronavirus also weighed on the currency pair. The European Union has raised concerns over a lack of progress in negotiations and blamed the U.K. for prioritizing its interests over the mutual issues. Only seven months have left to reach a deal with E.U. before December 31, and Britain is showing a delayed approach towards negotiations. As European Union has tried to negotiate a new trade deal with United Kingdom, France and the Netherland have joined forces to urge the European Union to impose labor and environmental standards more forcefully with the countries it signed trade deals with. The initiative came amid the concerns that the U.K. might seek E.U. to undercut the labor and environmental standards for boosting its competitiveness. The European Dairy Association has issued a framework set out for future EU-UK trade. The framework issued by EDA consists of "rules of origin," which are the criteria used within the World Trade Organization to define where a product was made. After Brexit, U.K. will become a third country where rules of origin will apply for trade between E.U. & U.K. Meanwhile, the largest country of Europe has reported a decreased number of deaths from the virus on Monday as it has proceeded with the gradual easing of restrictions. However, the fear of the second wave of coronavirus is still there, and it has created a risk-on sentiment in the market. EUR/USD - Daily Technical Levels Support Resistance 1.0789 1.084 1.0769 1.0871 1.0738 1.089 Pivot Point 1.082 EUR/USD – Daily Forecast The EUR/USD is trading at 1.0820, holding mostly below an intraday pivot point resistance level of 1.082. A bearish breakout of 1.082 level can lead the EUR/USD prices towards the next support area of 1.07630, which marks the double bottom level. Below this, the next support holds around 1.0725. On the higher side, resistance holds around 1.0864. The RSI is holding below 50, which is keeping the EUR/USD in a bearish mode while the 50 EMA is also suggesting odds of selling trend in the EUR/USD. Consider staying bearish below 1.082 today, while buying can also be seen above this level today. During Tuesday's Asian trading hours, the GBP/USD currency pair erases its early-day losses but still trading bearish while taking rounds near the 1.2326 as the broad-based U.S. dollar returned from the multi-day high. However, the currency pair hit the low of 1.2288 earlier in the morning, mainly due to the risk-off market sentiment in the wake of the second wave of the virus. This weighed on single currency British Pound on Monday in early sessions. Furthermore, the PM Boris Johnson on Monday released a 50-page document that contained the details about more relaxed coronavirus lockdown measures. He further said that a guideline for maintaining social distancing in the workplace would be given out late Monday. The easing of lockdown by the U.K. government was not only criticized by the group of companies but also by devolved nations like Scotland and Wales. The previous message from the Tory government of "Stay at home, protect the NHS, save lives" was now converted into "Stay alert, control the virus, save lives." The new "stay alert" warning from the UK PM Boris Johnson was widely criticized as confused and nonsensical. The question has been raised against it like, why change the message if the situation has not changed? Most criticisms were based on the fact that people should be provided with a crystal clear and straight messages that cannot be misinterpreted or misunderstood. On the other hand, the greenback remained supportive of the increased U.S. Treasury Yields and increasing U.S. Dollar Index. The DXY erased its losses and recovered 1.2% on the day and reached to 100.27. On the data front, there was no data to be published from the Britain side on Monday, but on Wednesday, the preliminary first-quarter GDP data from the U.K. will be under consideration by U.K. traders. Support Resistance 1.2268 1.2422 1.2198 1.2508 1.2113 1.2577 Pivot Point 1.2353 The GBP/USD is trading in a sideways range in between 1.2350 - 1.2285, holding below 50 EMA, which is extending resistance at 1.2400. The GBP/USD prices are holding the right blow daily pivot point level of 1.2353, which is suggesting odds of the bearish trend in the Cable. In case, the Cable violate 1.2353 level, we may see GBP/USD prices heading towards 1.2435 and 1.2530. The RSI and 50 EMA are suggesting the chances of a selling bias today. On the lower side, the GBP/USD prices are likely to find support at around 1.2310 and 1.2204. Let's look for selling trades below 1.2400 and buying above the same level today. Good luck!
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AUD/USD On a Bearish Run - Stronger Dollar In Play!

The AUD/USD was closed at 0.65298 after placing a high of 0.65477 and a low of 0.64922. Overall the movement of AUD/USD pair remained throughout the day as bullish. Aussie pair was flashing green on Friday due to the new hopes that emerged after the easing of lockdowns from all over the world, which will make the economic recovery faster. However, the pair was also supportive of the easing of Sino-US trade conflicts. On Friday, the Reserve Bank of Australia published its Monetary Policy Statement, which showed a sharp cut in the economic forecast of this year. Though it was as expected due to the ongoing coronavirus pandemic lockdown. According to the policy statement, the GDP of Australia was expected to be contracted by 10% in the quarter and 5% in the year. The unemployment rate for the year 2020 was expected to jump to a peak of 10%. The inflation projection was made negative as -1% in this quarter. According to RBA, fiscal measures would drive the economy in order to boost economic growth. However, there were no hints about the further easing of measures by the policymakers in the latest policy statement. Australian Dollar was rebounded after the Sino-US trade relations took a positive turn after both parties announced to fulfill their phase-one promises. Donald Trump, while considering the state of Beijing amid coronavirus lockdown, threatened to impose new tariffs if China failed to buy $200 worth U.S. farm goods. After that, trade representatives from both sides held a meeting via phone call and announced a positive report hence created optimism about the US-China relationship. AUD/USD - Technical Levels Support Resistance 0.6519 0.6544 0.6505 0.6553 0.6495 0.6568 Pivot point: 0.652 AUD/USD - Daily Trade Sentiment The AUD/USD is trading with a selling bias around 0.6510 and has recently bearish engulfing pattern below 0.6564 level, which is suggesting the market is overbought. Hence, the AUD/USD pair may drop until a 38.2% Fibonacci support level of 0.6492. Below this, the next support prevails around 50% and 61.8% levels, which holds around 0.6467 and 0.64410. At the same time, the 50 EMA may support the pair around 0.6465. The RSI is holding above 50, which is suggesting odds of bullish bias in the pair. So let's wait for a bearish retracement to complete before we see further buying in the Aussie. 0.6540 remains selling level, and 0.6440 remains the buying level.
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USD/CAD Is Ready for Retracement - Who's Up for It?

The USD/CAD was closed at 1.39218 after placing a high of 1.39902 and a low of 1.39084. Overall the movement of USD/CAD remained bearish throughout the day. At 17:17 GMT, the Housing Starts in April increased to 171K against the expectations of 107K and supported Canadian Dollar. At 17:30 GMT, the Employment Change reported that during April, Canada lost 1993.8K jobs, which were expected to be 4000K. The Unemployment Rate from Canada increased to 13% against the expected increase to 18%. The Building Permits in March was reported to be 13.2% down, when the expected drop was 20.1%. The number of houses that started construction in April increased, better than expected fall in the job loss during April and better than expected rise of unemployment rate along with the better than expected decline in the building permits from Canada during March, all helped CAD to gain strength against U.S. dollar on Friday. Strong CAD due to strong employment data dragged down the USD/CAD pair and extended the losses of the pair at the ending day of the week. Furthermore, the recovery in Crude Oil prices on Friday due to risk-on market sentiment after the easing of lockdown measures and increased demand for oil also added in the strength of commodity-linked currency Loonie and further weighed on USD/CAD prices on Friday. Meanwhile, the USD was also supportive of its better than expected employment data on Friday. The Average Hourly Earnings from the United States recorded at 4.7% during April, whereas 0.5% was the expected figure.The Non-Farm Employment Change fell by 20.5M jobs during April, undwer the expected 22M and supported the U.S. dollar. The U.S. Unemployment rate was recorded as 14.7% against the forecasted 16% and helped the U.S. dollar to gain traction in the market. The strength of the U.S. dollar after employment data limited the losses of USD/CAD pair on the ending day of the week; however, it failed to reverse the pair's direction. USD/CAD- Daily Technical Levels Support Resistance 1.3920 1.3941 1.3912 1.3954 1.3898 1.3962 Pivot Point: 1.3933 USD/CAD- Daily Trade Sentiment The USD/CAD was trading bullish around 1.3965 level, but it entered the oversold zone. Traders seem to drive the bullish correction in the market until 38.2% Fibonacci retracement level of 1.400 and 1.3035, which marks a 50% Fibonacci retracement level. Above 1.3910, the USD/CAD pair has formed a bullish engulfing pattern, which may drive bullish retracement in the Loonie. On the lower side, the USD/CAD may find support at 1.3905 and 1.3864, the double bottom pattern. Let's look for selling trades below 1.3933 and buying above the same level to target the 1.400 level today.
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NZD/JPY: Has the Bear Taken Over the Charge?

NZD/JPY produced two bullish daily candles on the daily chart. Friday’s candle closed within a level, which has been a strong level of resistance on the daily chart. The H1 chart shows that the price is about to make a vital breakout. If the chart produces a bearish reversal candle at pullback after the breakout, the sellers may get an opportunity to go short in the pair. Chart 1 NZD/JPY H1 Chart The chart shows that the price consolidated around 65.800 for a while before making the bearish move. The price reacted at the level of 65.345 several times. The pair produced three bearish candles consecutively. As of writing, the pair is trading below the level. If the price goes back to the level and produces a bearish reversal candle, the sellers may trigger a short entry. Entry: Sell below 65.255 Stop Loss: Above 65.345 Take Profit 1: 64.985 Take Profit 2: 64.900 Take Profit 3: 64.750
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