If you are trading the British pound this week, make sure you watch out for the three main events coming out of the UK that are set to rock the forex dance floor. Other than that, we are looking at Japanese yen, Aussie dollar and Euro on this week’s trading and looking to catch some fancy pips trading FX.
We will be hearing a lot from the UK and the US economy this week and therefore let’s start today’s analysis with a rundown on Mr. British Pound as he dances against Ms. USA. A lack of wage growth remains a persistent concern in the U.K. economy so potentially investors would be less excited to buy into Mr. British Pound.After a period of consolidation around a 5-year high at the 1.7 level, the pair finally broke below the Ichimoku cloud and as predicted in our videos from previous weeks, we saw drops drops below 1.68. The pair however wasn’t able to reach our target of 1.6650 on Friday and formed a spinning top on the forex dance floor which indicates indecisiveness in the pairs movement. We still have our bearish targets set and looking for more down moves with 1.65 in extension. Now if the pair suddenly decides to go nuts and break back above the Ichimoku and 1.71 level, that would open doors for more gains towards 1.74 and 1.79.
USD/JPY continues to dance above the Ichimoku cloud after forming a Hammer candlestick formation last week, confirming our bullish outlook for the pair. The moves are pretty slow though so it could take the pair some time to reach our target at 105. Now a break below our long-term support and 61% Fibonacci level at 100 would change our outlook to bearish with the 97 level as first alternative target.
Mr. Aussie has rebounded from his 7-month high of 0.95 against Ms. USA. After breaking below the Ichimoku cloud on dismal Australian jobs report, the AUD/USD pair seems to be heading south towards the key Fibonacci retracement levels. Our next targets are set at 0.9181 and 0.9081, though a break above 0.95 would change our outlook back to bullish with 0.9750 as an alternative target.
EUR/USD is still teasing the 50% Fibonacci level after making us some fancy pips as they reached our previous targets 1.345 and 1.33. It seems the pair just can’t get enough of their vacation and we’re still waiting to see if the pair is going to gain enough energy to break below the 50% Fibo level which would open doors for more down moves towards 1.31.A break above 1.37, could call for further upside with 1.4 & 1.4245 as targets.
Short-term FX Signals
USD/CHF 4-hour: Under pressure.
Invest Diva likes: Long positions above 0.907 with targets @ 0.909 & 0.915 in extension.
If pair goes nuts: Below 0.907 look for further downside with 0.904 & 0.901 as targets.
What’s up on the forex dance floor: The pair is teasing Ichimoku cloud with RSI being uptrend above the neutrality area.
Supports and resistances:
0.915
0.909
0.907 pivot point
0.904
0.901
GBP/JPY 4-hour: Teasing support level.
Invest Diva likes: Long positions above 170.66 with targets @ 171.69 & 172.09 in extension.
If pair goes nuts: Below 170.92 look for further downside with the previous long term bottom at 169.99 as targets.
What’s up on the forex dance floor: The pair is dancing under Ihchimoku cloud and teasing its support level. Beak out of its support level could call further drop.
Supports and resistances:
172.09
170.69
170.92 pivot point
169.99
USD/CAD 4-hour: Moving up
Invest Diva likes: Long positions above 1.087 with targets @ 1.093 & 1.097 in extension.
If pair goes nuts: Below 1.087 look for further downside with 1.083 & 1.079 as targets.
What’s up on the forex dance floor: The pair was in down channel and teasing its upper boundary. If the pair is strong enough to break above it, we would see more moving up to the Ichimoku’s cloud.
Supports and resistances:
1.097
1.935
1.089 pivot point
1.083
1.079
Short-term US Index/Other Signals
Dow Jones Intraday: further upside.
Invest Diva’s likes: Long positions above 16665 with targets @ 16875 & 16920 in extension.
Alternative scenario: Below 16665 look for further downside with 16530 & 16450 as targets.
Gold Intraday: Under pressure.
Invest Diva’s likes: Short positions below 1310 with targets @ 1292 & 1287.7 in extension.
Alternative scenario: Above 1310 look for further upside with 1317.5 & 1322.7 as targets.
Crude Oil Intraday: the upside prevails.
Invest Diva’s likes: Long positions above 95.8 with targets @ 97.4 & 97.8 in extension.
Alternative scenario: Below 95.8 look for further downside with 95.28 & 94.5 as targets.
