From the city that loves to trade, my name is Kiana Danial, they call me Invest Diva, the go to investing advisor who helps you make money the right way. Here is your weekly outlook on a bunch of currency pairs dancing on the forex dance floor.
Mr. Euro stands above its support at 23% Fibonacci level at 1.3620 after completing a double top pattern on the daily dance floor. On the fundamental side, even though the ECB has said that they will keep rates close to zero for a very long period, some investors are finding slightly darker corners of Europe to invest in, knowing that with the ECB’s measures, there money will be all safer and the yield a bit higher. Despite what they say, the team at ECB do have a interest in a weaker currency – or certainly don’t want to see their previous hard work be entirely offset by a stronger one. So we still see further down moves by Mr. euro as he dances against Ms. USA. Our next targets are 1.345 and 1.33 in extension. Alternative scenario would be above 1.378 for further upside with 1.4 & 1.4245 as targets.
Intraday we could see some up moves towards an intraday top at 1.3670 and 1.3690 in extension
Mr. British pound and Ms. USA are neatly dancing along side the rising Ichimoku cloud. The pair is back above the 50% Fibonacci level, remaining within the upward channel. The RSI is struggling at the neutrality area and we are looking for the pair to move back up and reach our targets at 1.704 and 1.74 in extension.
A downside breakout of 1.6450 would call for 1.62 and 1.5870 in extension. Intraday further advance is likely with intraday top at 1.6850 as a first target and 1.6880 in extension
Japan added to the good news, with a better than expected GDP reading. The Nikkei made a more controlled move than it often does, but still hit a three month high. On the daily forex dance floor, Mr. Japanese yen and Ms. USA are on a slow dance mode, in and out of the prevailing Ichimoku cloud. We are still awaiting the confirmation of the falling wedge to take us back to our previously set targets at 104 and 105. Alternatively a break below 100.3 could change our outlook to bearish with 97.7 and 96 as targets.
Intraday, the pair has rebounded above its support at 102.15 and remains on the upside. The RSI is reversing up above its oversold area
We could expect further up moves with intraday top at 102.80 and 103.10 as next targets
We’re light on data today as it’s the Whit Monday holiday and a few European markets are closed. At midnight we’ll get UK retail sales though and tomorrow is business as usual with European industrial output numbers and also a UK GDP estimate from the NIESR. ‘Highlights’ later in the week will include George Osborne’s annual Mansion House speech, UK unemployment and house prices.
Long term traders. Don’t sweat the small losses and look at the big picture. Short term traders, invest responsibly. And if you liked this video, share it on Facebook or Twitter or any other awesome means of social media and help you friends learn something new today.