EUR/JPY The Beginning of The Uptrend?

EUR/JPY is trading at resistance at current market price (128.95). Traders and investors are now facing the question whether this level would hold and provide a stable support or the EUR/JPY pair will succumb below 128 and beyond.

Although the pair is in sharp downtrend for weeks, the 128 level has been tested and has provided the necessary support for the pair.

Keep your stops around the 127 level. Have in mind that price might attempt to visit the 128 level again before heading north.

Chart: EUR/JPY D1

EUR/USD Posts New Losses

The pair witnessed some insecure buying in the early hours of today's session. Fortunately for Dollar bulls, this gain proved to be short-lived and the pair is now below opening price currently trading at 1.1088.

Although the trend is now bearish, the EUR/USD is above the 200SMA which indicates a bullish market. A dip below 1.1052 will put the pair again under the 200SMA and the bearish trend can be expected.

First level of resistance - 1.1130
First level of support - 1.1068

Chart: EUR/USD D1

EUR/USD Weekly Outlook

EUR/USD was one of the most traded instruments for the past week. 1.0814 to 1.1247 and a close of 1.1156 is volatility we do not see every week.

We can conclude several things from last week's EUR/USD move:

Euro bulls are trying to sustain the momentum since the beginning of December with their latest strong move on Wednesday and Thursday.
Dollar bulls are getting excited about the latest positive US data announced on Friday and gave a good push to the downside.

Technically, the EUR/USD is not yet ready to end the downfall. Although we are a bit above the downtrend channel, the US dollar has not yet given up.

Last high (1.1247) remains the first resistance level, while last low (1.1108) remains the first support level.

Fundamentally, next week we do not have any high impact news until Friday when we get the German and the Euro-zone GDP and also the US Advance Retail Sales.

Charts: EUR/USD W1, EUR/USD D1

EUR/USD After NFP's

The EUR/USD is not so excited about the latest NFP data. Here is the report:

USD Average Hourly Earnings (YoY) (JAN): 2.5% actual vs 2.2% estimate, prior revised up to 2.7%.

USD Unemployment Rate (JAN): 4.9% actual vs 5.0% estimate, 5.0% prior.

USD Change in Non-farm Payrolls (JAN): 151k actual vs 190k estimate, prior revised down to 262k.

#NFP prints at 151K vs Expected 190K - Previously 292K- Unemployment 4.9%

Initial reaction resulted in some 50 pips gain for the Euro, only to falter and succumb below prior-to-release level of 1.1205. The EUR/USD is currently trading at 1.1165 but there's plenty of room for the pair to go. 

Trading the News

Another useful webinar was presented by ActivTrades. This time, the guest speaker, Paul Matheson, talked about how to trade using the economic news that are released daily. 

He discussed how the news impact the market and why it is important to follow events, press conferences and data releases. 

This type of strategy is also called Fundamental analysis. Fundamental analysts pay a lot of attention to major news and events and do their trades based on them. 

To learn more about next free webinars of ActivTrades, visit Here.

Gold Trading in the Resistance Zone

The precious metal saw some safe haven buying today and barely touched the resistance line visible best on the H4 chart. Gold rose to $1,128.72 - enough to activate bearish selling and is currently trading at $1,125.xx. Price is still in the bullish channel on the long-term.

A possible correction could be expected in the near-term if Gold remains in the upward channel. If price breaks the level of $1,130 then this could indicate that Gold is ready to take it to the next level, i.e. $1,150.

On the other hand, a pullback towards the level of $1,090 is surely looking like a good deal to bears.

Chart: XAU/USD H4

GBP/USD Confused

The pair is trading in a very tight range as each new day is a challenge for the other camp. Bears and Bulls are having a tough fight as they try to push price into their preferred direction. In the last five days price has been reacting to buying and selling just enough to keep in the zone of 1.4380 as an upper line and 1.4220 as a lower line.

Trend still remains heavily to the downside in the long term and it would take a lot of buying to make bears give up. Currently, price is 1.4358 with a high for the day of 1.4378 and a low of 1.4227.

First resistance is 1.44, first support is 1.42.

Chart: GBP/USD D1