EURUSD : Bearish Waves In Play

Gregor Horvat

Finally, EURUSD weakness is here; pair fell sharply last week through 1.1300 level and even finished trading on Friday beneath 1.1081 which was our minimum objective target. But because of very strong downside momentum with impulsive price action we think that pair will fall much deeper. As such, any bounce in the meantime, will be corrective. First one may already occur this week with wave 4 retracement back to around 1.1080-1.1130 resistance from where we would expect more downside. Generally speaking we see pair now in strong bearish mode, with first five waves from 1.1496 headed to 1.0800/1.0900 area.
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EM Rundown: Policymakers Set The Tone In China, Turkey, Russia, And Poland

Matt Weller

As readers of our week ahead report know, it will be a very busy week for monetary policymakers in the developed markets, with potentially high-impact central bank decisions in the US, Japan, New Zealand, and Sweden. However, many traders may not be aware that emerging market policymakers will be just as active over the next few days. Below, we highlight several of the most important events for EM FX traders to watch: more…

GBP/CHF Could Surge As SNB Responds To ECB’S Policy; UK GDP Eyed

Fawad Razaqzada

It has been a slow day in the FX markets today after last week’s ECB-inspired sell-off in the euro had raised volatility across many currency pairs. But one currency that has caught some attention today is the Swiss franc, which has been sold heavily in response to comments from the Swiss National Bank’s Vice President. In a Swiss newspaper on Sunday Mr Fritz Zurbruegg said that the SNB would be analysing more…

Honey, I Shrunk The Euro

Ville Vainio

EUR/USD had a massive decline at the end of the week and the bears seems to be in charge here. The decline went trough the support area around 1.1145 and kept going. This decline is in line with the wave count which has been expecting powerful decline for some time now. Although this decline is still a 3 wave structure, the larger wave structure is supporting the view that we have started the next phase in dollar strength. more…

EURUSD : More Bearish Momentum Is Expected

Gregor Horvat

EURUSD fell sharply lower last week with accelerating price action beneath 1.1000 level which confirms a continuation of a downtrend. We see huge possibility for wave (3) in progress that is part of a big five wave move within wave V that began unfolding at the end of September, away from 1.1700. Based on current very strong bearish momentum we may see extension towards 1.0400-1.0500 area this year, where we see Fibonacci levels for wave (3). For now invalidation level remains at 1.1500; as long it will hold trend is down. more…

S&P 500 Surging Towards Major Resistance

Fawad Razaqzada

US stocks were trading sharply higher Thursday, tracking the massive gains seen across the European markets after the ECB President Mario Draghi delivered a surprisingly dovish message at the much-anticipated press conference earlier today. Without going too much into any technical details, the long and short of it is that the ECB’s bond buying stimulus package could be beefed up as early as the Bank’s December meeting, while interest rates could also be cut to negative. Unsurprisingly, the euro tanked, while the higher-yielding currencies and stocks have rallied across the board. more…

My Wife’s Grandfather Lives Alone

Matt Weller

My wife’s grandfather lives alone.

That probably seems like an unusual way to begin an article about European monetary policy and EUR/JPY, but bear with me.

Whenever we visit Walter, he is so overjoyed to have someone to converse with that he’ll eagerly ask for updates about the groundhogs in our yard, our new toaster, and other mundane happenings in our lives. While these day-to-day happenings are hardly interesting even to us, he gobbles them up as if they’re the most fascinating developments in the world. more…

USDJPY: Range Bound Trading Continues

Nenad Kerkez

As I already stated a couple of times, USDJPY is range bound with a bit more buying into dips. Presumably it is done by institutional traders as we can see from the chart. Scholastic example of double bottom vs V shaped reversal spike the pair up close to 120.00 level. Interim resistance zone lies at 120.00-10 ( channel top + H3 ) and we could see some selling towards 119.40 which is important support. more…

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