USD/CHF Consolidates

The USD/CHF pair has been heavily consolidated for the last month when the pair entered trading in the range of 0.9980 and 0.9850. The pair has gone out of the consolidation pattern twice, once to the downside with a low of 0.9787 and once to the upside with a high of 1.0066.

Currently, USD/CHF is back into the pattern and is trading at 0.9916. Market sentiment for the pair is neutral thus causing the pair to trade sideways without significant events or news that could shake the market and possibly give us a direction.

It's still undecided whether market participants will keep on buying the US dollar in light of its recent rally or they will choose the more stable Swiss franc.

Chart: USD/CHF H4

Silver Closing in on Support

Silver has been trading to the downside for the last month and moreover, it's been depreciating on the long term since mid-2016 when it reached a high of $21. The recent downtrend began in the middle of the last month at $17.30 and yesterday the precious metal reached the lowest low at 14.95.

Silver is now gravitating towards support level between 14.90 and 14.70. If those support levels are broken, 14.55 is seen as the next one and the major support is seen at the Dec 2016 low at 13.63.

Currently, the US dollar is having a rally against major peers and investors feel secure to divest of Gold and Silver for the highly regarded Greenback.

Following developments next month could give us key insights regarding the direction of the precious metals.

Chart: XAG/USD H4

Gold Moves Lower

Gold is trading below the psychological $1,200 level today as market participants boosted the price of the US dollar. Currently, Gold has recovered a bit and is trading at $1,201, with a low of $,1194 earlier today.

The depreciation in the Gold market is expected by market analysts as we are anticipating another rush to US dollars in the mid of strengthening US economy. If that is the case, Gold could go further down and test the lows all the way to $1,120 and, according to some, $1,000.

If, however, the US economy comes to a halt and the Greenback depreciates we could see a quick turn of events in the Gold market and a renewed interest in the safe haven.

Chart: XAU/USD D1

USD/JPY Backed By Support

USD/JPY went as low as 110.15 in the early trading hours of the European session today. Bulls, however, were quick to buy the dip as it just touched upon the support line on the medium term ascending trading channel.

Currently, USD/JPY is trading at 110.75, as the Yen is depreciating against major currencies. If the bulls could keep the momentum going, we could see first bull target at 112.30 this week.

On the other hand, Japanese bulls might not be yet ready to admit defeat and we could see the pair do another leg down below the support at 110.10. If that happens, major bear target will be seen at 106.00

Chart: USD/JPY H4

Silver Moving Sideways

Silver is trading sideways today as it has been doing for the last three months. Currently, the precious metal is trading at 15.50 as it has consolidated in the range of 15.70 to 15.20. No major news are expected this week except manufacturing production, but this most likely will not have a direct and significant impact on the pair.

Silver needs to break either side of the consolidation before we can conclude a definite move. Short term trend is bearish to neutral while on the long term silver is performing in the negative territory, gravitating towards a one year low at 15.10.

In light of this, 15.10 is seen as major support to the downside and a good long entry, while resistance on the short term is seen at 15.70, which is the upped end of the consolidation pattern.

Chart: XAG/USD H4

GBP/CAD Making New Lows

The Sterling is having a rather bad week as the single UK currency is taking a beating by its counterparts. While a cheap currency might favor export costs, weakness in a currency is a sign of weakness in the economy.

So far, the Brexit hasn't been panning out nicely for the UK but this might change as new opportunities arise.

GBP/CAD is close to its lowest low which came as a post Brexit sell off result. The pair is now hovering around 1.6800 as the lowest low is waiting at 1.5767. If the UK economy continues to release weak data we could see the low levels again before year end.

Chart: GBP/CAD D1

CHF/JPY Consolidates

The CHF/JPY exchange rate has entered into consolidation on the medium term scale as the pair is now trading at 111.76. The exchange rate has been trading at a zig-zag pattern since mid July when the pair tried to break the 200SMA to the upside but was unsuccessful as traders took it down to the 50SMA at 111.46 and then back again close to the starting point at 113.15.

Bears seem to have taken control once again over the pair as it's moving down today from a high of 111.90.

Main bear target is seen at 110.00 - 109.80, while second and third targets rest at 108.48 and 107.68 which would both make double bottoms in accordance with previous lows.

Chart: CHF/JPY D1

Gold Sell Of on Hold

The sell off in the precious metal has been somewhat troublesome as Gold has been going through support zones and SMA levels without a sign of a halt. Currently, Gold is seen to be taking a breather from the steep downfall at its current market price of $1,210.

The precious metal dipped to $1,204 last week and market participants were quick to get their longs as it went right to the previous low made in July 2017.

The precious metal is facing a dilemma now whether to continue its short term trend to the downside or move up using the support level with increased momentum and trust. Some experts are already eyeing the $1,000 level amidst a stable US economy and healthy signs of growth.

Chart: XAU/USD D1

GBP/AUD Falls Below Support

The GBP/AUD pair is now trading below long term support as it broke the support level at 1.7733 which also collided with the 200SMA serving as another tool to sustain the upside momentum of the pair.

However, market participants were eager to sell the pair breaking both the 200SMA and the support line. Currently, GBP/AUD is trading at 1.7530 and it seems that it's going to go for the next support level at 1.7400 which would create a double bottom.

The Sterling is depreciating against all counterparts in the early trading hours of the European Monday session. No major news are scheduled for today so we could see a continuation of trading based on technicals.

Chart: GBP/AUD D1

ActivTrades SmartCalculator

Risk management is seen as one of the most, if not the most, important elements in trading. As any successful trader knows, preserving your capital is crucial to your survival in markets. This is why ActivTrades offers its clients a very useful and helpful solution for every trader, regardless of their level of experience.

The free tool is called SmartCalculator and it does a number of good things. You can calculate your expected return by setting a Take profit order and the allowed loss by setting a Stop loss order.

Basically, you write down your capital, choose a leverage and base currency and then enter the trade details - instrument, lots (goes to 0.01) and the position side - buy or sell. Then you insert open price, TP and SL and the system shows you important data as Pip value, potential gain and loss etc. It's definitely worth checking, for those interested just go HERE.

EUR/CAD Sell Off

EUR/CAD has been trading to the downside for the past three days as the pair is going through a heavy selling wave. The short term momentum implies that the exchange rate will continue to trade lower as market participants are aiming towards the support level on the medium term at 1.5000.

The pair has other indications of a bearish market, namely the main moving averages and the fact that EUR/CAD is trading below them. Last week the pair went below the 200SMA and now the three of them, 50, 100 and 200SMA are gravitating above the exchange rate.

If EUR/CAD can reach the support level we could expect strong bullish reaction in the initial time as an attempt to buy at the bottom and potentially reverse the trend. On the long term, however, the pair is still making good bullish steps.

Chart: EUR/CAD D1

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.

ActivTrades is ready with two solutions. The first one is to open a professional account. In order to do that, a client must be eligible by covering three necessary criteria. You can check it out HERE.

The second solution for retail traders is to open an account in the Bahamas. The legislative framework there is suited to accommodate clients from abroad and they will still have the option to choose higher leverage and better conditions. You can check it out HERE.