Category: Market Analysis

EURUSD went up as the week started but then it broke down significantly. We can notice that the break to the downside came after a ‘head & shoulder’ pattern formation on the  daily chart. Based on the move after the head & shoulder, the pair could drop further to the 1330 region, especially if Fibonacci 38.2 level is broken on its way. However, when we look at the weekly chart, this downward movement can be considered as a retrachment after such a parabolic upward move for most part of the…

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Fundamental Analysis USDCAD rallied significantly on Friday due to the disappointing retail sales report from Canada. We can see that the Canadian Dollar has given up all it gained when Bank of Canada delivered as surprise interest rate hike in September. Technical Analysis The pair is currently at a resistance zone. A break above this zone will send the pair much higher. In fact it looks very much likely that it is going to happen. Bank of Canada is not so hawkish. Feds are Hawkish. This, coupled with the balance…

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Technical Analysis GBPUSD fell down significantly but not enough to break the weekly up trend line. In fact the pair found support before touching the trendline. This makes us believe that the pair is in fact trying to build enough momentum to go higher to test the resistance of 1.3650. Bank of England is likely to raise interest rates. The Cable will likely to see continued bullish pressure. Trading Preference. Our preference is to buy this market until the uptrend is broken and also until 1.30 level is also broken….

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Technical Analysis We can see that, Gold has rallied significantly after the hammer that was formed the previous week as shown in the chart below. In fact it closed the week above 1300 resistance level. Fundamental Analysis The economic data that is coming out of US are not overly impressive. There are also unsettled geopolitical tensions that could move gold markets higher. Trading preference With the technical showing a good setup for the gold to go higher and with fundamentals also not opposing this setup, our preference is to go…

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The Cable has been a currency that takes its turns in primary trend changes from the political events most notably from Brexit uncertainty for quite some time now. In the face of recent inability of the government of Teresa May to get any substantial break-through out of negotiations with EU. This, together with an overall hawkishness from Feds in USA has resulted in a massive fall last week. The pair could not break above the strong resistance of 1.3650, and has fallen towards the round figure of 1.30. A break…

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