Friday, June 30, 2017

GBP/USD Is Aiming For The Resistance Trend Line



On the weekly time frame you can also notice how closely that trend line coincides with the resistance zone marked by the Bollinger Bands indicator.

I think that there is little doubt at this point that the target of the rally is the zone around 1.3130 exactly, and until the pair reaches it there are about 100 pips left.

The situation will become interesting once GBP/USD does reach it – for now it is difficult to predict what will follow after that. The divergence on the weekly time frame is weak, between two lows only, but as far as it exists and it can be calculated, its limit is around 1.3267, which fits the rest of the technical analysis signals.

Once the pair does reach this zone we should be careful and look for other signals that will clarify the pair’s further development.


Thursday, June 29, 2017

The Medium Term Gold Tendency Is Bearish


That tendency is particularly noticeable if you examine the largest, monthly time frame.

Gold has been moving within a wide consolidation for the past few months, and during the past five months it has been developing the barbed wire candlestick formation a little above the middle line of the Bollinger Bands indicator, which is essentially a MA20 indicator and often work as a magnet, drawing the price as either a strong resistance or a strong support level.

After the barbed wire has finished forming there is usually a sharp movement in either direction.


If we look at the smaller, weekly time frame, we will notice that Gold is trading within a trend channel which so far is developing as a flag, but the price has reached its trend lines only three times. We can conclude that the flag isn’t fully developed and there will be a possible movement to the resistance trend line.

More important, however, is in which direction there will be a breakout. In case it is to the downside, we can expect a drop to the historical low from 1st December 2015 at $1046.14.
In the alternate scenario there will be a breakout to the upside and a new rally, but that scenario is less probable for the moment.

Wednesday, June 28, 2017

This Is Just The Beginning Of The USD/CAD Drop



USD/CAD completely fulfilled my expectations>>>  although the drop reached not only 1.3240, but much lower – 1.3160. After a small correction in the zone around 1.3160 – 1.3200, which is visible on the weekly time frame, the pair continued its bearish movement and my expectation is that the next strong support zone will be around 1.3000 – 1.2970.

I think that after the drop to that level the limit of the blue trend channel will be reached, and that limit is around 430 pips, but the pair will not reach the limit of the red flag that has been developing for a year (from  1st  May 2016 to 19th May 2017), the limit of which is 700 pips.

However, considering that the first breakout below that flag was at 1.3170 and the development of the pair gave us an opportunity to open short positions from better levels, we could say that that the drop which is part of an attempt to reach its limit is just beginning and we could expect the pair to reach 1.2450 in the medium term.


Tuesday, June 27, 2017

Pivot Points Indicator: An ActivTrades Trading Tool



Pivot points are a very popular way among professional traders to predict market movements. Now you can use them as well, thanks to the Pivot Points Indicator, a famous trading tool developed by the leading online broker ActivTrades. The Pivot Points Indicator was developed both for the MetaTrader 4 and MetaTrader 5 platforms, with three levels of support and resistance.

The lines displayed on the chart represent the Pivot Point (Orange) as well as Support and Resistance levels (Dark Blue, Maroon and Green). If the price is above the Pivot Point, the market is usually considered as bullish, whereas price below the Pivot Point is usually seen as a bearish market. Supports and resistances help determine potential reversals levels of the current market trend.

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Monday, June 26, 2017

The Forex Calendar For This Week




This week there are several events that will have a major effect on the market and traders need to be on the lookout for them, since they can affect their trading as well.

Today will be announced the US Core Durable Goods Orders m/m and there will be a speech by the European Central Bank President Mario Draghi.

On Tuesday we can expect another Mario Draghi speech, together with a speech by the Bank of England Governor Carney and a speech by the Fed Chair Janet Yellen and the BoE Financial Stability Report.

On Wednesday there will be speeches by the BoE Governor Carney, the Bank of Japan Governor Kuroda and once again a speech by ECB President Mario Draghi.

On Thursday will be announced the US Unemployment Claims.

And finally, on Friday, we can expect information about the UK Current Account.