American Dollar Retaliates

Yesterday’s FOMC brought havoc to the market. The vast majority of the instruments quoted against the USD are going down. Stocks are mixed…with this amount of money on the market that is indeed a great occasion for a correction but definitely not a major sign for a reversal.

The SP500 is still safely above the main uptrend line.

The Dow Jones on the other hand broke the major uptrend line but I do not think it will be permanent.

The DAX is doing great, it’s in a channel up formation above the major support.

Gold dropped like a rock. It’s back inside the flag and the sentiment is negative.

The USDCAD climbed higher with a sweet long-term buy signal.

The EURCHF is fighting for a bullish engulfing on the weekly chart. That is possibly a great occasion to go long.

The AUDUSD broke the lower line of the triangle is aiming lower.

The GBPUSD broke the crucial horizontal support and long-term up trendline, it’s is an invitation to go short.

For a look at all of today’s economic events, check out our economic calendar.

Few FX Pairs Where We Are Still Waiting for a Breakout

First one is the GBPUSD pair, where the price is inside the flag formation, just below crucial long-term highs. Breakout to the upside, will give us a signal to buy.

The USDJPY pair is testing the lower line of the flag. Breakout should activate more sellers.

The EURGBP pair with a descending triangle pattern. Currently aiming its horizontal support.

The EURJPY pair testing the neckline of a big H&S pattern. That can result with a breakout.

The CHFJPY pair with a H&S pattern on a long-term resistance. Possibly an interesting trade for the sellers.

The AUDJPY pair is trying to break the upper line of the triangle but the first attempt looks bad. It is possible that a false breakout is happening right this moment.

The GBPJPY pair showing the beauty of price action. First two pennants and now very clean flag. Breakout to the upside can be a great buy signal.

For a look at all of today’s economic events, check out our economic calendar.

Buyers Do Not Have Enough

Indices are firm in the middle of the week with the SP500 flirting with all-time-highs and the Nasdaq coming back above major supports. Two main indices are slightly behind: the DAX and Nikkei but we cannot say that there is a major bearish situation there. At least not yet.

Gold protected the crucial mid-term up trendline and saved its positive sentiment.

Brent Oil escaped from a few days long consolidation and is aiming for new long-term highs.

The USDCAD consolidated above the strong long-term horizontal support, which may indicate willingness for a breakout.

The ERUCHF keeps dropping but the price is getting closer to the mother of all supports, where the situation can get very interesting.

The EURAUD is in a very clean price action setup, where the price bounces from a combination of two horizontal and one dynamic resistance. As long as we stay below, the sentiment is negative.

For a look at all of today’s economic events, check out our economic calendar.

USD Gains Traction Ahead of the NFP

American Traders did what they love to do. They bought the dip and made another V-shape reversal. SP500 and Dow Jones are back above the major supports with handsome buy signals.

The Nasdaq on the other hand is still struggling. Here, a further drop is very probable.

The DAX is flirting with all-time-highs, again

Gold drops after a brilliant head and shoulders pattern. The drop stopped on a mid-term up trendline. This can be a good place to stop this correction.

The EURUSD drops ahead of the NFP data.

This day is important for the USDCAD as we do have labor market data from Canada and the US. The ‘loonie’ tries to bounce from a major long-term horizontal support.

The AUDCHF doing everything to defend the 38,2% Fibo.

The AUDUSD breaks the neckline of the H&S formation and the lower line of the triangle is possibly bearish.

For a look at all of today’s economic events, check out our economic calendar.

Indices and Commodities Continue the Bull Run

 

The new week – with the US market starting on Tuesday due to Labor Day – is starting on the front foot with all the major indices climbing significantly higher.

The DAX broke the upper line of the pennant formation and is heading north with high momentum.

Gold is still climbing inside a big channel up formation. The price will most probably hit the 1960 USD/oz pretty soon.

Brent Oil is breaking the psychological barrier of 70 USD/bbl at the time of writing.

The EURUSD has fully recovered after a false bearish breakout of the mid-term up trendline which started on Friday.

The USDCAD broke the lower line of the pennant formation and all this is happening on a major, long-term support.

The AUDCHF tried to break the short-term horizontal resistance in order to create a bigger bounce from the 38,2% Fibonacci.

For a look at all of today’s economic events, check out our economic calendar.

Indices In a Correction Mode but Still Bullish in The Long-Term

 

American indices take a small break after the buying marathon which started the previous week.

DAX bounces from the 38,2% Fibo and the lower line of the flag. That is bullish but the false breakout from Monday can be a little bit worrying.

Gold breaks the upper line of the pennant and climbs higher to test the upper line of the channel up formation. The life of a gold bull seems ok at the moment.

The same with oil bulls. Today, we do have a small correction but the main sentiment is definitely positive.

The EURUSD extends loses after the double top formation.

The AUDCHF is still above a major support but it doesn’t look like a bounce, more like a correction and preparation for another leg down.

The NZDCAD climbs higher after the false bearish breakout.

The EURCAD makes a double top formation on the 38,2% Fibonacci. That is one of the best price action setups there is. A bearish setup of course

The GBPJPY is waiting for a breakout from the symmetric triangle pattern. That can turn into an awesome trade pretty soon.

For a look at all of today’s economic events, check out our economic calendar.

Indices Continue the Rise From the Last Week

 

Indices start this week on the front foot. The global bounce from the end of the last week seems secure.

Gold waiting for a breakout inside of the pennant formation.

Brent Oil continuing the bounce from a crucial horizontal support on the 65 USD/oz.

The EURUSD pair cannot decide which direction it is heading, having strong bullish and bearish days, one after another.

The AUDCHF pair is testing 38,2% Fibonacci. First buyers are there!

The NZDCAD pair is coming back above the lower line of the descending triangle pattern. That is potentially a start of a false breakout pattern and a legitimate buy signal.

The GBPJPY pair tests the neckline of a nice Head and Shoulders formation.

For a look at all of today’s economic events, check out our economic calendar.

Bear Market? Not Yet

 

Indices hold strong after most of them create a double bottom formation. In some cases, it is strengthened by the fact that the price bounced off a long-term uptrend line. This is the bread and butter for technical buyers.

Gold is inside of a pennant formation waiting for, most probably, a bullish breakout.

Brent Oil bounces from a crucial support on the 65 USD/bbl.

The EURUSD pair is on a good way to beat the highs from the beginning of the year.

The USDCAD pair with a new, long-term lows and not stopping.

The EURPLN pair breaks the major long-term uptrend line, showing us a global positive sentiment towards risky assets.

For a look at all of today’s economic events, check out our economic calendar.

Indices and Gold Continue The Rise

 

So far saying “Sell in May and go away” is not much of a thing on global stock exchanges.

The SP500 made a nice V shape reversal from a major uptrend line.

The Dow Jones is seeing the same kind of movement.

The Nasdaq on the other hand is struggling a little bit but an inverse head and shoulders pattern could make the situation more positive.

The DAX just hit new intra-day all-time highs, so I guess that we have to admit that the sentiment is positive.

Gold broke the upper line of the wedge pattern, officially starting a new bullish wave.

Brent oil is surely aiming for the upper line of the channel up formation.

The EURUSD is moving very similarly to gold but it also escaped from the wedge to the upside.

The EURCAD is in an inverse head and shoulders pattern. For a buy signal, we need to see a breakout of the neckline.

For a look at all of today’s economic events, check out our economic calendar.

Major Indices Bounce From Crucial Supports, Not All of Them Though

 

SP500 is doing what it always does – V shape reversal and a rapid bounce from the major support (in this case, long-term up trendline).

Dow Jones is in a similar situation; surge after contact with an uptrend line sorts out the situation.

Nasdaq on the other hand is having some issues, here the price broke the uptrend line, so the buy signal is no longer here.

DAX with a sweet-looking hammer on the daily chart yesterday. We’re still inside of the wedge, with a bright outlook for tomorrow

Nikkei with a similar situation to Nasdaq – the major uptrend line got broken. What’s more, we broke the lower line of the triangle and the support on the 28300, which is negative

Brent Oil bounces from the lower line of the channel up formation

The USDCAD is on a key long-term horizontal support. A bounce here wouldn’t be a surprise

The AUDCHF breaks the lower line of the symmetric triangle pattern, that’s bearish

The GBPJPY currently creates the right shoulder of the H&S pattern. Here a breakout of the neckline would a mid-term sell signal

American Indices Moving in Opposite Directions

American Indices are currently moving in opposite directions. The tech-heavy NASDAQ index is going down, aiming for the long-term up trendline while the old-school Dow Jones flirts with all-time highs after the price escaped from the pennant formation.

The German Dax is trading inside a flag formation, which is promoting a long-term breakout to the upside.

Gold is aiming higher after a successful bounce from the 1760 USD/oz support.

The USDCAD broke the lower line of the channel down formation, which should be considered an extreme weakness.

The AUDCHF tested the lower line of the symmetric triangle pattern. A breakout to the downside is very probable.

The ZARJPY shot higher after a false bearish breakout from the Head and Shoulders formation.

The EURPLN is aiming higher after a very handsome bullish engulfing pattern on the daily chart.

The USDHUF dropped like a rock after the price created a shooting star on the daily chart, which bounced from a combination of dynamic and horizontal resistances.

For a look at all of today’s economic events, check out our economic calendar.

 

Indices Start a New Month With a Drop

Gold is still holding above the 1760 USD/oz support.

The Dow Jones bounced from the upper line of the symmetric triangle pattern.

The DAX is aiming for the lower line of the rectangle formation.

The EURUSD is back inside the wedge formation, sentiment is back to negative.

The USDCAD bounced from the lower line of the wedge formation.

The EURCAD bounced after Friday’s heavy drop.

The NZDCHF broke the lower line of the rectangle pattern and then tested it as a closest resistance.

The GBPNZD broke from the sideways trend to the upside. This perfectly shows the recent negative sentiment towards the New Zealand’s currency.

The USDHUF tested the broken supports as closest resistances. When the price stays below the resistance levels, a strong sell signal will emerge.

For a look at all of today’s economic events, check out our economic calendar.

Terrible Month for USD but Maybe the Last Day Will Be Better

Gold attacked a crucial support again but this time with a very sharp fall.

Brent oil initiated a bearish correction.

The Dow Jones is still in a pennant waiting for a breakout.

The DAX is still in a rectangle pattern also patiently waiting for a direction.

The EURUSD has started a bearish correction.

The Canadian Dollar is still going stronger.

The EURAUD is in a symmetric triangle waiting for a breakout.

The AUDCHF is in a similar situation.

The EURNZD is also waiting to end the sideways trend but in this case, the price is locked inside of a rectangle.

The AUDJPY defends a crucial support level after the bullish breakout from the triangle. It’s an interesting opportunity in terms of risk to reward ratio.

The ZARJPY defends the neckline of the head and shoulders formation.

The USDHUF is in a long-term sell signal after the price drops below the major support.

For a look at all of today’s economic events, check out our economic calendar.

Gold With a Bounce From a Crucial Support

Gold is bouncing from a crucial support with a hammer formation on the daily chart.

Silver is still in a a mid-term channel up formation.

The SP500 is at the all-time highs.

The Dow Jones and Dax are still inside a pennant, in both cases we’re waiting for a breakout.

The EURUSD is still moving upwards.

The USDCAD is moving lower after a false breakout from the down trend. The Bank of Canada (BoC) is helping the situation.

The EURCAD is also moving lower but the drop is slowed down by a stronger EUR.

The NZDCHF is inside a rectangle pattern, waiting for a decisive breakout.

For a look at all of today’s economic events, check out our economic calendar.

Indices Continue the Friday’s Magic Recovery

The end of last week was a real rollercoaster on the global indices. On Thursday, many bears were opening champagne bottles, celebrating a long-awaited sell signal. As usual, sellers were a bit too optimistic and their dream was rapidly cancelled on Friday, when major indices surged. Leading one was the SP500, which managed to set new all-time highs (intra-day). On the weekend, we did not have any major news, so markets opened in the neutral territory, which favors buyers more as, well…we’re close to all-time highs, duh!

Although buyers are winning, we still have something, which can attract possible sellers. Let me show you the SP500 first. As we mentioned, before, we have a new ATH intraday. Additionally, the price broke out of the pennant (black lines) to the upside, which in theory brings us a fresh buy signal. What could be worrying for buyers is that the price created a shooting star on the H4 chart and possibly a double top formation, which can be confirmed by the MACD and RSI divergence.

S&P 500 chart

The situation on the Dow is of course a bit similar but here, the price did not manage to set the new ATH on Friday. What’s more, buyers did not manage to escape from the pennant pattern, yet. As long as we stay inside this formation there’s no fresh buy signal. Only the price closing an H4 candle above that resistance will be an invitation to open a long position.

Dow Jones chart

OK, let’s move to DAX, which is back inside a tight range between 15150 and 15300 points. Monday starts below the resistance on 15300 and for now, that is a key level for this German index. Price staying below that level gives hope for the sellers but price breaking that line can trigger a proper long-term buy signal, which can possibly end in making new all-time highs.

DAX chart

For a look at all of today’s economic events, check out our economic calendar.

Yen Finishes a Great Week of a Great Month

Yesterday, we talked about the Canadian Dollar and today, our hero will be Japanese Yen. JPY significantly weakened in 2021 but since the beginning of April, buyers are back in the game and pushing the Japanese currency higher. In today’s analysis, I will focus on two instruments, where I can see the most promising technical situations – The USDJPY and the GBPJPY, both of which, beloved by traders all over the world.

Let’s start with the USDJPY, which is now finishing its third bearish week in a row. This negative sentiment, from a technical point of view, can be explained by the false breakout pattern (the yellow line on the chart) from the beginning of April.

As you can see, the price broke the upper line of the symmetric triangle and the major down trendline (the blue line on the chart) but failed to hold above. Buyers did not manage to continue the upswing and the price collapsed, coming back inside of the triangle. Usually, that is a very strong signal for a movement in the opposite direction and that is what we are witnessing right now. As long as we stay inside of the triangle, the sentiment is negative.

USD/JPY chart

Let’s move on to our favorite volatile instrument – GBPJPY. Here, the situation is pretty similar, till the beginning of April, the Yen was heavily beaten and since the beginning of this month, the JPY is recovering. The familiar structure, which you can spot on the chart is the head and shoulders pattern.

GBP/JPY chart

What is promising here is that the neckline (the green line on the chart) was broken and already tested as a resistance. The test was positive for sellers as the price bounced from it and went lower. With all this, sentiment seems negative and the chances for a test of the major uptrend line (the black line on the chart) look promising. That gives us a great trade in terms of the risk to reward ratio, and that is what serious traders like the most!

For a look at all of today’s economic events, check out our economic calendar.

Canadian Dollar is Coming Back From a Long Trip

April didn’t start out too well for the Canadian Dollar, but it’ll probably end up great for it. That’s thanks to the Bank of Canada, which decided to cut the stimulus yesterday and hinted about rising interest rates in the very near future. Rates are what really drive the sentiment on the market, so we didn’t have to wait long to see significant movements on pairs with the Canadian Dollar.

What’s amazing is that those movements didn’t happen in random places. Before the statement from the BOC, CAD was technically on a very slippery slope, particularly in pairs with USD and EUR.

Let me show you the situation on the USDCAD. Here, the price was in a long-term downtrend but yesterday, the price was breaking both important down trendlines! In theory that was very bullish for this pair, therefore negative for the Canadian Dollar, that is, until the BOC stepped in.

The Canadian dollar strengthened immediately and the price reversed creating a bearish engulfing pattern. What’s more is we saw a false bullish breakout, which almost always is a great opportunity to trade in the opposite direction. Now we’re back below downtrend lines, ready for another drop.

USD/CAD chart

A similar situation can be spotted on the EURCAD. Here, we also do have a bearish engulfing on a daily candlestick chart (green area). We also have a false breakout, which, in this case, is above the horizontal resistance on the 1.507 (yellow). In addition to this, we have a bounce from the mid-term down trendline (green) and also bounce from the 38,2% Fibonacci. Well, based on my understanding of price action, all that is pretty bearish. Sentiment is negative, as long as we stay below the green down trendline.

EUR/CAD

In the case of USDCAD, everything seems pretty clear, on the EURCAD too, but only from the technical point of view, because today we have ECB! We all know what can happen if ECB surprises the market; none of the technical analyses work and traders go bananas.

Will that be the case on the Euro today? Well, we are not expecting anything major, so maybe…

For a look at all of today’s economic events, check out our economic calendar.

Is That It for the Global Indices?

Gold is about to test the broken resistance at 1760 USD/oz as a closest support.

The DAX came back to the area of its previous consolidation.

The Dow Jones dropped to test the mid-term uptrend line.

The EURUSD rose and is aiming for the upper line of the wedge.

The GBPUSD broke the upper line of the flag and is aiming higher with a nice buy signal.

The AUDUSD rose after the price broke the neckline of the inverted head and shoulders pattern.

The USDCAD consolidated below a major long-term down trendline.

The NZDCHF finished a nice inverted head and shoulders pattern below the lower line of the flag.

The EURCAD broke the neckline of the inverted head and shoulders formation and then defended it as a closest support.

For a look at all of today’s economic events, check out our economic calendar.

Canadian Dollar Flexes Muscles

The GBPJPY is in a triple top formation and a divergence on MACD and RSI. There’s a very promising short but before that happens sellers need to break the neckline of this pattern.

The AUDCAD broke the neckline of the inverted head and shoulders formation and later tested it as a closest support.

The EURCAD bounced off a crucial horizontal resistance with two shooting stars. That’s usually very pessimistic.

The Canadian Dollar Index is in a false breakout from the head and shoulders formation. That is promising for the CAD.

The USDCAD bounced off long-term down trendlines and broke the lower line of the rectangle.

The USDJPY is possibly in a very dangerous bearish reversal.

The AUDUSD denied the long-term sell signal and is aiming lower.

For a look at all of today’s economic events, check out our economic calendar.

Australian Dollar On The Rise

Gold traders are fighting to keep the bullish dream alive and they’re trying to create the right shoulder of the Inverse head and shoulders pattern. A breakout of the neckline can possibly bring serious bullish sentiment.

Silver bounced from a crucial support on the 24.8 USD/oz.

Brent oil broke the mid-term down trendline and is aiming higher.

The Dow Jones is in the third wedge pattern in a row. The previous two ended in an upswing.

The EURUSD climbed back above the 23.6% Fibonacci.

The GBPUSD wasted a great chance for an upswing and failed to break the neckline of the inversed head and shoulders pattern.

The AUDUSD on the other hand, is very close to activating the buy signal from its own inversed head and shoulders formation.

The USDCAD is locked in a tight rectangle below major down trendlines.

The GBPAUD is in a sweet long-term sell signal, after the price created a head and shoulders pattern at the end of the wedge. A breakout of the lower line of the wedge opens a way towards new mid-term lows.

For a look at all of today’s economic events, check out our economic calendar.