Forex Conversation Points:
– DailyFX Quarterly Forecasts for the second quarter have recently been published and are available directly on the following link: DailyFX Trade Guides, Q2 Forecasts.
– For trading ideas, Take a look at our trading guides. If you are looking for something more interactive in nature, Check out our DailyFX Live blogs.
– If you want more colors in the settings below, join us live Webinars DailyFX every week, scheduled for Tuesday and Thursday at 1 pm Eastern time. For each of these sessions, you can sign up for the link below:
Tuesday: Tuesday, 1:00 ET
Thursday: Thursday 1:00 ET
Want to see how retailers currently trade with the US dollar? Take a look at our Customer Protection Indicator IG.
EURUSD: Support Bounce Gradi Bullish Channel – Bear Flag Potential
In the last part of last week, things did not look very positive for the euro. EURUSD began to re-test the key support area in the first days of the second quarter and a significant number of grinding was developed last week in this area. But, as shown in the FX settingsThis kept the open door for bullish strategies in EURUSD with the expectation that it would have a multi-month range, and both targets were met when customers rose – higher the ECB / FOMC record on Wednesday this week.
On this spot, this skipping support is built into the Bulletin Channeland according to the previous bear movement, this can be called the formation of a bear's flag. This would be a more short-term observation in the middle of a longer-term range; and this sets up a rather interesting table for short-term strategies around EURUSD.
Next week there is a short-term potential looking for prices that will have higher support over the area of 1.1280-1.1300, which showed resistance on Thursday. Keeping support here through an open Monday keeps the opportunity to test prices more deeply in the longer-term design of the range, targeted at 1.1400, and then to 1.1448.
EURUSD pricing diagram after two hours
For short strategies, there are several possible ways to advance. The first and bigger approach, we would be looking for breakthrough support around level 1.1175, which we reviewed last week. Alternatively, if buyers stay in control enough time to allow crossover resistance, from 1.1448 to 1.1500, and the short side can be reopened to continue the range. And for traders with short-term approaches seeking to break the bear's flags, a trip below level 1.1250 could re-open the back door to support tests at 1.1212, followed by 1.1187, and possibly even a median breakthrough below 1.1175 level, which currently indicates the 21-month minimum value in pair.
EURUSD eight-hour price diagram
GBPUSD: Bearish Potential Under 1.3200
A similar layout was introduced last week in GBPUSD, in which long-term support helped keep the lowest values in the midst of the shorter digestion period.
GBP / USD closed last week after another support zone 1.2962-1.3000. This is the fourth separate recurrence of support tests in this field since mid-February, and this support has been held back with some rather aggressive fundamental issues. However, as is apparent from EURUSD, the bear's potential remained as though this support was abandoning, and in the sense of the British pound, it equated this with falling triangular design when it included that horizontal support with the trend line taken from lower altitudes to March.
Next week, I want to watch the teddy bear strategy pair, but I'm ready to accept the fall of this bear trend line; instead of concentrating on the confluent area Fibonacci resistance which previously took place in April swing-highs. This happens from 1.3181-1.3187; and retaining resistance to the or-below zone in the beginning of next week will keep the door open for short-term strategies in pairs. The initial targets can be found at 1.3035, followed by a large support zone of 1.2962-1.3000; and if bears can represent a negative push, a longer-lasting triangle will be launched, and then additional short-term targets around 1.2900 can be found.
GBPUSD Four-hour price diagram
USD / JPY Potential peak in the construction of the inverse head and shoulders
In this I concentrated on this on the Thursday webinar, when Yen-weakness issues re-emerged in the first days of Q2. The USD / JPY is embedded in the inverse pattern of the head and shoulders, and as I shared it, traders would probably want to look at the resistance level around 112.00 before they prepared long-term bulls strategies.
This area returned to the game when it pushed USD / JPY to a fresh high score of 2019. The following week this topic can be appealing; but entry can remain a challenge, as the breakthrough has already begun.
Traders can find resistance somewhat higher on a key level on a 112.34 scale. This is a 76.4% correction of the big step from November 2017 to March 2018; and this level has already worked in the last quarter as a support in the month, when it helped set the low fluctuation just before the onset of high risk aversion to the yen. This Fibonation study was also useful in the 2019 trade, with all 38.2, 50 and 61.8% of the recovery operating as support, which turned to resistance.
USD / JPY Daily Price
The resistance test at this level can open the gate for the high-low-support element, and this can keep the open door for strategies for continuing the bullish trend. For higher-low support after the 112.34 test, merchants can look at the level of 111.50, which led to a short-term evening star at the beginning of this week, which was extended to 111.81 last weekend. The second possible range remains for support if it is drawn through this first area, and it ranges from 111.13 to 111.29. IF prices, which can not be held above the 110.86 area marking fluctuations this week, would be invalid.
USD / JPY price for two hours
USDCAD: Bearish on Hold Below under 1.3450
I looked at the short-term USD / CAD that came this week, which was largely based on the rebellion in a large area of long-term interests. This rebellion went through the store this week and opened the door for short-term strategy pairs. This could be particularly well-matched with weaknesses in USD with weaknesses or strategies that are expected to take some time to complete a longer-running rising triangle in the US.
In USD / CAD, again to the resistor range running from 1.3161-1.3185 opens the door for short side of the oscillation, with a target potential of about 1.3300, followed by 1.3250.
USDCAD Four-Hour Price Chart
The table prepared James Stanley
More about this:
Are you looking for a long-term analysis of the US dollar? Our Forecasts DailyFX We have a section for each major currency and we also offer many resources US dollar-Pari, like it is EUR / USD, GBP / USD, USD / JPY, AUD / USD. Traders can also stay in the short-term positioning through our Customer Protection Indicator IG.
Forex Trading Resources
DailyFX offers a number of tools, indicators and resources to help merchants. For those who are looking for ideas for trading, our IG Client Sentiment shows the position of retailers with real business and live positions. Our merchant guides Bring our DailyFX quarterly forecasts and our best trading opportunities; and ours news in real time has interactions between the DailyFX team within the day. And if you're looking for real-time analysis, ours Daily Events DailyFX every week you offer numerous sessions where you can see how and why we look at what we are looking at.
If you are looking for educational information, ours New in the FX Guide is there to help new (s) traders, while ours Characteristics of successful merchant research is built to help sharpen the range of skills by focusing on risk management and trade.
— Written James Stanley, Strategist for DailyFX.com
Contact and follow James on Twitter: @JStanleyFX