GBP/CAD At Support

GBP/CAD is now trading near short term support level at 1.7083. The pair went as low as 1.7060 before the bulls jumped at the chance and went long it. It's worth noting that the pair has not yet achieved a double bottom in accordance with the previous low at this level in the end of May.

It would be best to wait for a clear double bottom before opening long positions. However, chances are that this week is bound to be volatile-heavy for the pair as we are yet to see Thursday's news impact on the Sterling.

Bank of England will release the Inflation report along with the Interest rate decision which is expected to rise with 25 basis points from 0.50% to 0.75%.

Chart: GBP/CAD H4

USD/JPY Moves Up

USD/JPY is trading higher today as market participants sold the Japanese yen in the early trading hours of the Asian session. The Japanese yen is losing value against all major counterparts, namely USD/JPY, CHF/JPY and GBP/JPY.

The USD/JPY exchange rate is again above the resistance line on the long term downward trading channel. The pair broke the resistance in the beginning of July and then briefly dipped below it again just to rise above.

This time the breakout seems stronger and the bull camp determined to keep the fire going. It bulls manage to sustain the momentum we could see USD/JPY go to first target at 113.20 and onward to new horizons.

Chart: USD/JPY D1

NZD/CAD Backed By Support

NZD/CAD reached the support level last week during the early hours of the US trading session on Friday. The pair went as low as 0.8830 and was supported by market participants to levels beyond 0.8870.

The pair is seen to consolidate between two narrowing lines of support and resistance on the long term. If bears can get a break below 0.8750 this would indicate a new leg down that could turn into another medium term downturn.

On the other hand, if bulls get the strength to push the pair up, we could see a break above 0.9400 which would invalidate the medium term bearish trend and create opportunities for levels not reached since late 2016 early 2017.

Chart: NZD/CAD D1

CHF/JPY Moves Lower

CHF/JPY is trading down this week as the pair moved from its high of 113.24 on July 17 to yesterday's low of 111.50. The pair is now gravitating towards the lowest point reached yesterday, currently trading at 111.64.

If bears continue to pressure the pair they may persuade the bulls to give up for a while until first support level on the short term is reached at 110.60. Second support is seen at 109.50.

On Tuesday next week the BoJ will hold a press conference and announce the updated monetary policy statement. The event will be anticipated by traders and thus it is very likely that CHF/JPY will be affected in either ways.

Chart: CHF/JPY H4

Gold Consolidates

Gold is now trading at $1,224, it appears that it will close the week with little to no change. Gold opened trading around $1,228 on Monday and went as low as $1,218 on Tuesday morning. Market participants seems to be holding onto the safe haven asset without any expectations to turn a quick profit.

The stagnation in price is due to no attention to the market this week as we are light on events and happenings that can cause volatility and assets to change hands.

Next week, however, the schedule is tight with news releases coming out of Japan, the European union, the United Kingdom and the US. Traders and investors are expecting prices to go on their usual swing during such market movers and Gold will not be on the sideline.

Chart: XAU/USD H4

EUR/JPY Moves Higher

EUR/JPY has been trading higher for the past few weeks as the pair reached 132.00 some ten days ago and is now gravitating towards 130.00. The exchange rate made a triple bottom on the short term time span with the latest low being the third point serving as a catalyst for the bullish camp to initiate buying.

Whether the third inflection point will hold will become clear once the rate passes the resistance zone at 131.34 and 131.50. Stronger resistance on the short term is seen at latest high at 132.00.

EUR/JPY is in a strong upward move for the last two months going from a low of 124.67 to a high of 132.00 with only two corrections and almost no consolidation.

Chart: EUR/JPY H4

USD/CAD Breaks Support

USD/CAD is trading lower today after it broke the support line yesterday in the early European trading hours. The pair went from 1.3150, which was seen as the short term support zone, to today's low of 1.3025.

Currently, the pair has improved a bit and it's trading around 1.3040. The short term trend remains bearish as market participants are eyeing next support level at 1.2940-1.2910.

This week has no significant US or CAD data and therefore we might expect the pair to trade sideways to negative.

Long term trend remains strongly bullish as price is in an uptrend for the past 3 years.

Chart: USD/CAD H4

USD/CHF Drifts Lower

The USD/CHF pair is hovering around the support level at 0.9950 to 0.9910. Recently, the pair has been trying to break the parity level to the upside but so far attempts have proved to be unsuccessful. The exchange rate reached 1.0037 last week only to give in to bearish pressure and move lower.

The pair is now at inflection point when market participants need to decide whether it breaks the support at current market price or it pushes higher based on technical for the lack of strong fundamentals.

This week is low on fundamentals, so if there isn't a strong enough drive for technicals, the pair could be expected to consolidate until significant US news shake the market again.

Chart: USD/CHF H4

ESMA And Overcoming Restrictions for EU Traders

The ESMA (European Securities and Markets Authority) recently ruled out an update regarding the protection of investors and implementing new regulations and restrictions for brokers. In March this year, ESMA introduced leverage restrictions for CFDs and prohibited any type of binary options involvement to European clients.

These restrictions play a big role in the development of brokerage services in the EU. The maximum leverage European brokers are allowed to offer is now 30:1 on major currency pairs and CFDs and 20:1 for Gold and non major currency pairs.

The new rules came as a surprise to retail traders and brokers sought to offer a way to overcome the measures implemented by the ESMA.

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AUD/USD At Support

AUD/USD reached the support level earlier today in the pre-opening hours of the European session. The pair went as low as 0.7327 and then immediately pulled up as traders and investors sought to catch the double bottom.

The exchange rate is now 0.7367, slightly higher due to technicals, less so fundamentals. Both parties are event-free today, meaning we may be in for a calm and smooth trading activity at least in this pair.

If bulls are able to hold on to the buying wave and sustain momentum we might see first resistance level at 0.7520 next week. On the other hand, a break out of the support level would indicate bearish dominance.

Chart: AUD/USD H4

Gold Moves Down

Gold prices plummeted to new lows yesterday as the precious metal reached a low of $1,222. The safe haven asset was hovering around $1,240 yesterday before the sell wave occurred in the mid hours of the US trading session.

Gold broke the long term support zone that held the precious metal in an uptrend and now it seems price is headed to a double bottom at the psychological $1,204 level.

The upward trending channel that started in the end of December 2015 at the low of $1,047 is now invalidated and Gold bugs might be scared to go long. The spin off is yet to occur and we are yet to see how this will play out in the minds of money managers and market participants.

Chart: XAU/USD D1

USD/JPY Above Bearish Channel

The US dollar has been strengthening against the Japanese Yen for the past few months. Starting in March, the USD/JPY exchange rate went from 104.00 to last week's high of 112.78. The long term bearish channel was broken last week at 111.00 and now the pair is painting a new beginning.

Above bearish pressure, the pair is now exposed to new highs starting with first resistance at 113.50. If that level does not break, we will see a double top with the last high before the final slip to latest low.

This week is packed with significant news as we have two testimonies by Fed Chair Powell on Tuesday and Wednesday as well as Building permits and Philadelphia Fed Manufacturing Index.

Chart: USD/JPY D1

GBP/JPY Higher

The GBP/JPY pair is trading at 149.00 as it has been on an uptrend since the beginning of July when it was below 145.00. The Sterling is seeing some inflows of capital as traders and investors saw an opportunity to buy at low levels due to economic uncertainties and political spats.

If the pair continues on its uptrend, we could see it reach the resistance level which falls at 150.00. This would mark the third touch of the downward trading channel started in early February this year.

Technically, the pair is still in a downturn and it will take some muscle to break through it. If we can get passed the resistance at 150.00, bulls might pour in new capital to fund the continuation of the appreciation of the Sterling against major currencies, JPY included.

Chart: GBP/JPY H4

 

USD/CHF Breaks Parity

The USD/CHF pair broke the parity level today as it went as high as 1.0068. The US dollar strengthened against major currencies and we saw Gold and Silver go down in value. Currently, the USD/CHF pair is trading a little lower at 1.0049 but a sudden move to the upside is not out of the picture.

The highest high was a test of the double top as the first one was reached in early May this year. So far the level has been holding up strongly and we have not yet broken out of it.

If the bear camp decides to sell on the bounce we could expect the exchange rate to reach below the upside trading channel at 0.9980. On the other hand, a break out of the double top could result in a continuation of the bullish trend with first target at 1.0100.

Chart: USD/CHF H4

USD/CAD Upside Momentum

The US dollar has been strengthening against major currencies, most obviously to the Canadian dollar. The USD/CAD pair reached a high of 1.3380 at the end of June and is now trading around 1.3200. The exchange rate has been trading steadily to the upside since the beginning of the year when it was floating around 1.2250.

The strong momentum is both due to fundamentals and technicals. Fundamentally, the pair has been enjoying solid support by strong US economy, low unemployment data and raising rates.


Technically, we had a few successful support level tests during the year which boosted the pair to its highest high.

First support level is seen at 1.3100 while first resistance level is seen at 1.3380.

Chart: USD/CAD H4

USD/CHF Consolidates

USD/CHF has been consolidating around parity level. The pair is now trading at 0.9946 and it seems ready to re-test the previous high of 1.0050. If that level is broken, we could see another leg to the upside with potential target at 1.0350.

The US dollar has been strengthening lately and traders and investors are pushing aside other currencies like the Euro and Sterling as well as safe haven assets like Gold and Silver.

This rush to the Greenback could be the result of easing the tariff tensions and bringing back the certainty and optimism to the US economy. However, it is still early to draw the line and go long equities and US dollars so it would be best to wait for more clarity and mutual agreements between the US and China.

Chart: USD/CHF D1

Gold Higher Amidst Trade Concerns

Gold is trading higher in today's session just less than an hour before the opening of the US session. The precious metal went to a high of $1,265 earlier today and gave away some its gains to currently trade at $1,263.36.

Gold reached a strong support level on the long term at $1,237 earlier this month and market participants quick to get a hold on to the safe haven as trade concerns started looming last week.

If Gold continues on its way north, we can expect to see first resistance level at $1,280. If that level is broken, second resistance level is seen at $1,310 - a double top after the psychological $1,300 level.

This week is lighter on events and so we can expect smooth sailing based predominantly on technicals.

Chart: XAU/USD H4

EUR/JPY Moves Higher

The EUR/JPY pair broke the resistance level at 130.00 and is now trading at 130.20. The pair is trading in a short term bullish direction but still remains pressured by bearish sentiment in the medium and long term perspective.

As trade fears become a significant factor in the financial markets stage, traders are turning from the unsafe US dollar to its major counterpart the Euro and the all time safe haven asset - Gold.

EUR/JPY moved from a low of 124.65 to its current high in a bit more than a month and it's now beyond the bearish resistance. If it continues to trade to the upside we can see a double top at 133.50 before long.

Chart: EUR/JPY H4

EUR/AUD Rally Consolidates

The EUR/AUD pair has been trading to the upside for the past month and only this week it came to a temporary halt as market participants have been agreeing upon the price. The exchange rate is currently floating around 1.58 and is trading in the range of 1.5900 and 1.5750.

It is still unclear whether the pair will continue on its course north, and if it does, we can expect to reach the short term resistance zone at 1.60.

On the other hand, a sell off in the Euro could lead to potential short term correction with major target at 1.5450. No matter what, we can expect a breakout and then draw conclusions.

Chart: EUR/AUD H4

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USD/CHF Drifts Up

USD/CHF has been moving to the upside for the last month marking a choppy trading behavior from 0.9790 in the beginning of June to 0.9918 made last week. The pair is now trading at 0.9925 right at the support line that took place in the end of March.

The pair is now testing the support line and if we have a confirmation, bulls will initiate another buying wave to possible first target of 1.0037 or at least the psychological level of parity.

It is still not clear whether the support will hold as we are yet to see the latest NFP and Jobs data later today. If the data is negative, bears will most certainly sell a significant amount of US dollars thus breaking the support line. Until the data release, consolidation might be expected.

Chart: USD/CHF H4

EUR/NZD Moves Down

The EUR/NZD pair reached a new high today at 1.7375 and a few moments later it was taken over by the bearish camp. The exchange rate is now trading slightly below 1.7300 and it seems that after the long bullish run a bearish correction is at hand.

The pair moved strongly to the upside in the past two weeks, in mid June it was trading at 1.6600 and had only two days in the red up until today.

It is worth noting that indicators signal the bullish run still has fuel in it as we are above the 200SMA and MACD continues to remain bullish.

A short correction, however, could be healthy for the progressive and steady move to the upside.

Chart: EUR/NZD D1

Gold Supported at $1,236

Gold is trading higher in today's session as the bearish camp got exhausted by selling and Gold bulls took things in control. The precious metal reached a low of $1,236 and shortly after, Gold reacted to the upside by a strong tick to a high of $1,246.50.

Gold reached a strong support in the long term as the lowest is actually a third touch point of the upward trending channel that started in December 2015 at $1,046.90. If there is enough buying pressure we can see Gold go for a prior pivot point at $1,290-$1,300.

On the other hand, we are still in a bearish trend started at $1,360 and a break out of the bullish trendline would be a strong sign of a continuation of the bearish run. Below $1,235 there is a lot of room to go.

Chart: XAU/USD D1