Daily Forex Analysis by Orbex

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Daily Forex Market Preview, 26/02/2016

The British Pound closed in the positive yesterday for the first time this week, forming an inside bar, while EURUSD is attempting to rally following two days of doji candlesticks, as USDJPY slips back to test 112 support. The short pullbacks across these currencies are likely to indicate a larger move in the making. USD GDP estimates and PCE data will be the key fundamentals to watch for today.

EURUSD Daily Analysis

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EURUSD (1.10): Following two days of indecision, EURUSD is currently attempting to rally higher. A daily close above 1.1046 is needed for any further attempts to push higher as 1.10 support is established. To the upside 1.11 - 1.113 resistance will be key to watch as the resistance could cap the gains. The Stochastics on H4 continues to print a hidden bearish divergence posting higher highs against price's lower highs, which further adds to the downside risks. EURUSD could remain range bound with the support/resistance levels but could also signal a potential breakout. Above 1.113, EURUSD could test 1.1285 resistance, while to the downside 1.095 - 1.093 support comes into the picture.

USDJPY Daily Analysis

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USDJPY (112.6): USDJPY closed on a bullish notice yesterday following the doji reversal near 112. Price action is currently slipped back and could possibly test 112 support again. If prices manage to remain above 112, a test to 116 and 117 is likely, but a break below 112 on the daily chart could signal further downside. On the H4 chart, price action is near the 113 - 112.5 resistance level. A dip below could see a test to 111.31 support. Depending on how the Stochastics will print this low, a bearish divergence here could see USDJPY eventually rally to 117 on a break above 113 resistance to the upside.

GBPUSD Daily Analysis

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GBPUSD (1.396): GBPUSD managed to close in the positive yesterday, the first time this week since the strong losses started out on Monday. There is an inside bar being formed and a close above the previous high of 1.4028 is needed for GBPUSD to test the 1.42 resistance. The Stochastics is currently printing a higher low against price's lower low. A daily bullish close will confirm the move to the upside as prices correct to 1.42 broken support to establish resistance. On the H4 chart, 1.40 resistance is now currently in play and a break above 1.40 could trigger further upside. A break below the previous low could, however, see GBPUSD continue to trend lower.

Gold Daily Analysis

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XAUUSD (1237): Gold prices remain range bound but trading below the previous highs near 1265. Support is found at 1230 - 1225 and Gold could remain trading sideways within 1250 and 1225, with only a breakout above or below these levels indicating further direction. To the downside 1200 remains a key support level to watch for, while to the upside, a break above 1250 could see Gold test 1275 - 1280 resistance which lies ahead.

 

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Daily Forex Market Preview, 29/02/2016

An upside revision to the US GDP for the fourth quarter sent the Greenback stronger across the board. However, market sentiment is currently pointing to a modest risk aversion with the Yen gaining in early Asian trading, which could, in turn, see the Euro attempt to post a recovery rally. End of month flows could also keep the US Dollar volatile on the last trading day of the month.

EURUSD Daily Analysis

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EURUSD (1.09): EURUSD closed Friday with strong losses, as prices briefly fell below the 1.10 handle. The decline comes after nearly three days of sideways price action indicating a further decline to the downside on a successful close below 1.089. With prices trading in the support level of 1.095 - 1.093, EURUSD could be attempting a go at reclaiming the 1.10 support/resistance level. However, the upside momentum is capped with resistance at 1.113 - 1.1105 likely to hold the rally. Below 1.093, EURUSD could be looking at testing the previous lower support at 1.0835 - 1.0825.

USDJPY Daily Analysis

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USDJPY (112.9): USDJPY rallied strongly after forming a doji pattern last week near 112 support. The support saw USDJPY rally towards 113 region but current price action is bearish with Greenback easing against the Yen. To the downside, a continued momentum could see USDJPY test 111.31 levels in the near term following the hidden bearish divergence formed on the charts. A test to 111.31 with a potentially higher low in the Stochastics could see a move to the upside on a close above 113 - 112.5 resistance. The upside target to 117 remains in place as long as USDJPY does not see a daily close below 111 - 111.31 support.

GBPUSD Daily Analysis

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GBPUSD (1.387): GBPUSD closed bearish on Friday following Thursday's attempt at a bullish close. On the daily chart, prices are trading close to the lower median line which if supports the prices, a short-term bounce could be expected. Currently, GBPUSD has formed a doji on the 4-hour chart followed by a bullish close higher. A continuation to this could see prices eventually rise back to the 1.40 handle where resistance is previously established. The Stochastics on the 4-hour chart also points to a bullish divergence taking shape. Below the current lows at 1.387, GBPUSD could be at risk for a dip to 1.385.

Gold Daily Analysis

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XAUUSD (1226): Gold prices continue to trade sideways with the 1200 support holding prices strongly. However, the strong consolidation is likely to give way to a strong momentum led rally or a decline. On the 4-hour chart, minor support/resistance is seen at 1230 - 1225 region. The median line connecting the recent price action shows Gold breaking outside the lower median line. With a near-term top formed at 1250 and a modest lower high being formed, Gold could remain range bound between 1230/1225 and 1200 region. The bias remains to the downside with the potential to test 1130 on a break below the 1200 support.

 

[Orbex_Expert]

The Euro remained weak yesterday as flash CPI estimates from the Eurozone continued to highlight the lack of any growth in consumer prices, which is likely to see the ECB come out with policy measures in a few weeks from now. The Yen, on the other hand, remains stronger across the board with USDJPY likely to seek support near 111 - 111.31 levels.

EURUSD Daily Analysis

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EURUSD (1.08): EURUSD has closed below 1.093 level of support which could signal a continued decline lower. Price action could, however, attempt a modest pullback to test the recently broken support level back to 1.095 - 1.093 with a test of lower support at 1.0835 - 1.0825 to the downside. With prices trending lower and below the falling trend line, the decline in the lower support will be key. A break below 1.0825 could signal a move lower with the next key support at 1.07 levels. To the upside, above 1.095, EURUSD could attempt a move towards 1.1105 - 1.113 resistance, which is pending to be retested following a break of support.

USDJPY Daily Analysis

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USDJPY (112.5): USDJPY closed bearish yesterday but prices are currently supported above the 112 support level. However, a decline lower is likely following the Stochastics oscillator which is likely to show another leg lower. 111 - 111.31 support will be key to the downside following a test of resistance near 113 - 112.5 levels as the hidden bearish divergence remains in play. A move to 111 - 111.31 could possibly pave the way for an eventual upside correction to 117 on a break above 113.

GBPUSD Daily Analysis

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GBPUSD (1.393): GBPUSD managed to bounce off the dynamic support from the lower median line on the daily chart. A continuation to the upside could see GBPUSD attempt to retest the 1.42 broken support for resistance which is likely only on a daily close above 1.40. On the 4-hour chart, there is a likelihood for prices to consolidate into a descending triangle pattern, which is validated could see the move to the upside, above 1.40. Alternatively, below 1.383, a dip to 1.38 is likely if the bearish momentum takes over again.

Gold Daily Analysis

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XAUUSD (1243): Gold prices continue to consolidate below the previous highs of 1260 and the 1200 support level with yesterday's price action forming a bullish engulfing pattern. A retest to the previous higher close at 1246 could potentially pave the way for a breakout higher while if the price holds the rally, Gold could decline lower. There is also a bullish ascending triangle in place currently, validating the breakout to the upside. Only a close below 1190 - 1200 will confirm a move to the downside.

 

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Daily Forex Market Preview, 02/03/2016

Following yesterday's better than expected ISM manufacturing PMI, the US Dollar has managed to strengthen albeit briefly. Prices remain cautious ahead of the Friday's nonfarm payrolls. Today's big event is likely to be the ADP private payroll numbers. Gold prices, on the other hand, continue to trade flat with a strong consolidation building up which indicates a strong momentum led breakout around the horizon.

EURUSD Daily Analysis

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EURUSD (1.08): EURUSD is attempting to test the lower support identified at 10935 - 1.0825 with the test of this support so far being tested by price rejection. A firm test with closing prices at this level will signal a possible move back to the upper resistance at 1.093 - 1.095. Below 1.0825, EURUSD could be looking to test the previous lows near 1.056 region. The Stochastics continues to print a possible higher low, which if confirmed by the bullish divergence and the break of the falling trend line, EURUSD could be looking to correct towards 1.11 if prices manage to break above 1.095 - 1.093 support.

USDJPY Daily Analysis

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USDJPY (113.9): USDJPY has managed to close on a bullish note yesterday but prices look to be capped by the dynamic resistance of the 20-day moving average. A test back to 112, in this case, cannot be ruled out as a result. The daily chart Stochastics shows a hidden bearish divergence with the oscillator printing a higher high against price's lower high, pointing to another test to the downside. Currently, prices have formed a doji near 113.9 region and a lower close could see USDJPY test the 113 - 112.5 support. A breakout from the rising median line could potentially signal a move lower towards 111.31 region.

GBPUSD Daily Analysis

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GBPUSD (1.396): GBPUSD has posted two days of gains off the 1.386 lows. Prices, however, remain below the recent highs made at 1.404. We expect a continuation of the sideways pattern as prices remain capped below the 1.40 resistance. On the 4-hour chart, the breakout from the possible consolidating descending triangle hasn't shown any strong moves indicating the potential for a downside risk if prices fail to close above 1.40.

Gold Daily Analysis

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XAUUSD (1227): Gold prices have been pushing lower after prices briefly tested the 1246 highs yesterday. The strong consolidation continues to keep prices flat with the potential to break out strongly. Currently, support at 1230 - 1225 is holding prices but a break below this level with convincing close could see another dip to the 1200 region. Below 1200, 1130 support comes into the picture.

 

[Orbex_Expert]

Daily Forex Market Preview, 03/03/2016

The ADP payrolls numbers released yesterday showed a better than expected print with private payrolls rising 214k, above estimates. The US Dollar remained well supported across the board and the markets are likely to move sideways ahead of tomorrow's NFP numbers. British Pound continues to recover after hitting 9-year lows last week while the Euro remains weak as ECB officials hinted at further rate cuts at the next meeting. Meanwhile, Gold continues to trade sideways and we could anticipate a possible breakout when the monthly jobs report from the US is released tomorrow.

EURUSD Daily Analysis

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EURUSD (1.08): EURUSD formed a doji pattern yesterday following the previous day's small bodied candlestick pattern. Prices briefly touched the 1.0835 - 1.0825 support before pushing higher on price rejection. A firmer test of support here could see the support being tested ahead of further direction being established. With the trend line firmly established, a break below the support could see further declines lower as 1.056 comes into question. Alternately if the 1.0835 - 1.0825 support holds, EURUSD could post a bounce to 1.10 handle. Overall, EURUSD is likely to start trading sideways within the mentioned levels.

USDJPY Daily Analysis

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USDJPY (114.1): USDJPY closed on a bearish note yesterday but today's price action has been bullish. Prices remain capped with the 20 days EMA to the upside while support at 112 is firmly established. The daily chart shows a hidden bearish divergence currently in place with the Stochastics forming a higher high on price's lower high, indicating a move lower to retest the 112 support. On the 4-hour chart, the lower median line looks to have held the declines with prices currently attempting to push higher. However, only a break above the previous high of 114.3 will confirm further upside gains, failing which, 113 - 112.5 support will be likely tested.

GBPUSD Daily Analysis

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GBPUSD (1.40): GBPUSD has closed bullish for the third consecutive day following the dip to the lower median line from the daily chart. The Stochastics remain in oversold levels and it is likely for the upside momentum to continue towards 1.42 resistance. On the 4-hour chart, the descending triangle noted yesterday has seen a breakout to the upside. A dip to 1.40 could see further upside, with 1.41 coming in as the initial resistance ahead of a test to 1.42 and possibly to 1.43 where a pending retest of the resistance await. Prices remain poised in this correction mode unless we see a significant close below 1.40 which could send GBPUSD back to previous lows.

Gold Daily Analysis

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XAUUSD (1239): Gold prices continue to trade flat with yesterday's price action seeing a bullish close. With the 1250 resistance and 1230 - 1225 support holding out so far, Gold remains range-bound. Above 1250, there is a potential for Gold to test new highs, while to the downside, below 1225, Gold could dip lower to the 1200 key psychological support level. With no clear candlestick patterns on the daily chart, the sideways range is likely to continue.

 

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Daily Forex Market Preview, 04/03/2016

Gold prices notched early gains breaking above the 1250 handle ahead of the NFP report due later today. The ranging price action saw a breakout to the upside but comes at risk ahead of the jobs report. Meanwhile, EURUSD and USDJPY remain flat with price action likely to push in any direction. Expectations for today's NFP is for 195k jobs with the unemployment rate staying put at 4.90%.

EURUSD Daily Analysis

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EURUSD (1.09): EURUSD reversed off the doji pattern over the last two days closing above the resistance at 1.095 - 1.093. Failure to test the lower support at 1.0835 - 1.0825 with closing prices exposes the risk of a decline back to this level. In the event EURUSD manages to continue to push higher the next resistance at 1.113 - 1.1105 will be targeted. A dip to the current resistance to establish support will pave the way for the next leg up. The falling trend line has been broken but in the interim, 1.10 level will be critical for further upside or downside in prices. The 4-hour Stochastics is showing a hidden bearish divergence, with the current lower high being seen with the oscillator's higher high, which indicates a move lower. As such, EURUSD could dip back to 1.0835 - 1.0825 support if 1.10 resistance holds.

USDJPY Daily Analysis

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USDJPY (113.7): USDJPY remains flat on the daily chart following the test of support at 112. The daily chart shows the Stochastics printing a higher high against price's lower high which could see a dip back to 112 if USDJPY fails to clear above 115. On the 4-hour chart, prices have broken out from the rising median line but so far prices are flat pending a test to 113 support. Below 113 - 112.5 support, lower support at 111.31 comes into question. To the upside, 115 resistance will need to be cleared for a move higher.

GBPUSD Daily Analysis

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GBPUSD (1.41): GBPUSD has completed nearly four days of correction but prices are currently capped near 1.42 resistance. A bearish close below this level on the daily chart could see the downside momentum resume. On the 4-hour chart, however, support at 1.41 will be key. If the support holds, GBPUSD could push higher to 1.43 - 1.435 resistance level. A break below 1.41 could see GBPUSD move sideways within 1.40 lower support with a break below 1.40 opening the declines for a test back to previous lows.

Gold Daily Analysis

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XAUUSD (1261): Gold prices finally managed to break above 1245 high and has posted a new high yesterday at 1264. The daily chart shows a strong bearish divergence currently with the Stochastics printing a lower high. A bearish close near these highs could see a correction down to 1108. On the 4-hour chart, Stochastics remains flat while prices broke above 1250. Establishing support at 1250 could validate further upside in Gold, but failure to hold prices could spell further declines in store.

 

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Daily Forex Market Preview, 07/03/2016

February nonfarm payrolls released on Friday showed an increase of 242k above forecasts of 190k. The unemployment rate was steady but average hourly earnings fell -0.10% against forecasts of 0.20%. The Dollar eased back on the news as the Euro closed Friday with strong gains for the second day. Gold prices were volatile as the precious metal tested 13-month highs at $1279 before closing the day at $1258.

EURUSD Daily Analysis

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EURUSD (1.09): Following the two consecutive days of doji patterns last week, Euro is up for the second day closing Friday at $1.101. While a convincing close above the $1.10 handle is required, the bias shifts to the upside in the very short term with 1.113 - 1.1105 coming into focus if 1.095 - 1.093 support holds. With the ECB meeting looming, EURUSD is likely to trade sideways with any rallies potentially being capped near the mentioned resistance. In the event of a break above this resistance, 1.12 will be the next key level to watch for. In today's session so far, price action has closed below the 1.10 support/resistance level, which could see a possible decline to 1.095 - 1.093 for establishing support. There could be a further downside if the support gives way.

USDJPY Daily Analysis

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USDJPY (113.7): USDJPY has been moving flat for the past two sessions but is supported above 112. Indications of a hidden bearish divergence on the daily chart could see another test to 112 if the high above 114.65 is not breached. Below 112, 111.31 support which was tested briefly on 11th and 24th February will likely be the next level to the downside. 117 - 117.25 is the resistance that will be tested should the Dollar manage to close above 114.65

GBPUSD Daily Analysis

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GBPUSD (1.42): GBPUSD has posted a steady rally for the past five daily sessions. Friday's close above 1.42 is indicative of a potential move higher with 1.43 - 1.435 coming in as the next resistance. Any declines are likely to be supported near the 1.41 handle. However, there is a hidden bearish divergence on the 4-hour chart which could see a possible decline lower. A break below 1.41 will see 1.40 psychological level come into question and in the event of a close below 1.40, GBPUSD could be looking at the new leg of declines.

Gold Daily Analysis

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XAUUSD (1259): Gold prices broke out from the range on Thursday and Friday's session saw the precious metal fail near the 13-month high at 1279. To the downside 1246 - 1240 could be tested for support following the break of resistance. Establishing support here could see further gains in Gold. On the 4-hour chart, the 1250 round number is a key level to watch for any potential bullish reversal patterns as prices are trading inside the range of 1279 and 1250. A convincing close above or below this range could see a further continuation of the bias.

 

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EURUSD Daily Analysis

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EURUSD (1.10): EURUSD is seen ranging above the 1.10 handle following a brief test to 1.095 support level. Resistance near 1.113 - 1.1105 comes into the picture now as EURUSD remains supported above the 1.10 handle. The downside in EURUSD is also limited as long as prices remain above the 1.095 - 1.093 support level. With not much of data to go by into Thursday's ECB meeting, EURUSD is likely to remain range bound with a risk of an upside move. Further bias is most likely to be established following Thursday's event.

USDJPY Daily Analysis

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USDJPY (113.1): USDJPY is looking to breakout from the inside bar formed yesterday. A daily close today below the lows of 113.133 could see a move to 112 support. It is very likely that USDJPY is likely to continue to trade sideways with the momentum showing signs of exhaustion. Below 112, the next main support comes in at 111.31, while to the upside a break above 114.25 could see a gradual push to the upside.

GBPUSD Daily Analysis

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GBPUSD (1.42): GBPUSD is on the path to recover the losses from two weeks ago with prices clearing 1.42 handle. A dip to 1.42 could see a continued move towards 1.43 resistance. The upside remains limited as a hidden bearish divergence is likely to see GBPUSD correct to the downside. Support near 1.4025 - 1.40 is key in this aspect. A break below this support could see GBPUSD resume its downtrend, but prices are likely to range between 1.43 and 1.40 levels in the near term

Gold Daily Analysis

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XAUUSD (1267): Gold prices remain supported above 1246 and 1236 minor resistance that was broken. A decline could see a test of support at this level. However, there is scope for a move to the downside, with 1250 support likely to be critical. The median line plotted on the chart shows prices breaking out currently and a close below 1250 could see a test to 1230 - 1225 lower support levels.

 

[Orbex_Expert]

Daily Forex Market Preview, 09/03/2016

EURUSD gave back its previous gains above the 1.10 handle and closed with a doji candlestick yesterday. Prices could remain range bound into the ECB's meeting with 1.08 and 1.10 likely to be the range highs and lows. Meanwhile, USDJPY is forming a potential bearish descending triangle pattern with the support at 111.31.

EURUSD Daily Analysis

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EURUSD (1.09): Following three daily sessions of gains, EURUSD has closed in a doji candlestick pattern yesterday with early price action today showing bearish momentum taking over. Failure to close above the 1.10 handle is being seen as a potential risk to the downside with 1.095 - 1.093 support likely to hold the declines. However, the further downside could open up if the support fails, leaving EURUSD to test the 1.0835 - 1.0825 support which was barely tested earlier in March. Into the ECB's meeting tomorrow, EURUSD could remain pressured below 1.10 and 1.08 levels.

UUSDJPY Daily Analysis

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USDJPY (112.6): USDJPY continues to drift lower with the increasing likelihood of a test to 112 support. This view is further strengthened by the inside bar that was formed on Monday this week and with yesterday's prices closing below the low near 113.133. On the 4-hour chart, prices are trading in the support zone near 113 - 112.5 and a break below this support could see a test to 111.31 where the next support comes in. USDJPY is also showing signs of forming a descending triangle pattern with the support forming at 111.31. A break below 111.31 could signal further weakness to the downside.

GBPUSD Daily Analysis

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GBPUSD (1.41): GBPUSD has closed bearish yesterday following the previous strong consecutive rally. Price action is gradually moving lower just below the 1.43 resistance level following the hidden bearish divergence noted yesterday. 1.4025 - 1.40 support levels are likely to be tested to the downside, and a break below this support could see a test to previous lows. GBPUSD, however, could range sideways within 1.43 and 1.40 levels. Today's manufacturing and industrial production numbers are likely to remain a fundamental risk to the Pound.

Gold Daily Analysis

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XAUUSD (1255): Gold prices remain supportive above the 1246 and 1237 levels following the breakout of the minor ascending bullish triangle near the top. While prices briefly tested the 1275 measured target, further upside could see another attempt near 1275 and 1295 levels. Support at 1250 is likely to hold Gold prices in the near term but overall, the precious metal remains flat within 1275 and 1250.

 

[Orbex_Expert]

Daily Forex Market Preview, 10/03/2016

The ECB's monetary policy meeting is due today with deposit rate cuts, QE expansion on the table. The markets are heading into today's events with modest expectations so the scope for a surprise is very much a key risk to the EURUSD. Price action has remained flat over the past two days and could see a possible strong reaction to the ECB's decision.

EURUSD Daily Analysis

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EURUSD (1.09): EURUSD has formed two days of flat price action with small bodied candlestick patterns close to the 1.10 handle. Price action remains range bound ahead of the ECB's meeting today, which is likely to see a strong breakout in either direction. The 4-hour chart in EURUSD has shown a triangle pattern with the upside likely to see resistance at 1.113 - 1.1105, while to the downside, 1.095 - 1.093 comes in as support. Over these levels, 1.1335 resistance is the next big level while to the downside 1.0835 - 1.0825 forms the lower support.

USDJPY Daily Analysis

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USDJPY (113.7): USDJPY has managed to close bullish yesterday with current price action looking to move higher. Prices are trading near the outer trend line of the descending triangle and a breakout here could see a move towards the outer median line which could invalidate the downside bias. Support at 112.5 looks to be holding for the moment as prices could target 117.25 - 117 resistance level. If the current rally fails to break above 114.35, the previous recent highs, USDJPY could see another dip back to 112.5 which could make a potential head and shoulders pattern with a downside target to 111.0.

GBPUSD Daily Analysis

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GBPUSD (1.41): GBPUSD has been trading flat below the 1.43 resistance as yesterday's price action closed with a doji. The bias remains flat at the moment with the limited downside to 1.4025 - 1.40 lower support. The minor trend line on the 4-hour chart could act as a dynamic support level limiting the downside, but a break below this trend line could signal a move to 1.4025 - 1.40. The upside remains capped with the resistance zone of 1.435 - 1.43 levels.

Gold Daily Analysis

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XAUUSD (1247): Gold prices are trading near the $1250 handle following the failed breakout higher. However, as long as prices are above this level, the scope for upside stays intact. On the 4-hour chart, the next lower support comes in at 1230 - 1225 levels if price breaks below 1250. Gold could remain within the 1250 - 1225 levels unless we see a strong breakout either above or below these levels. 1275 is the level to watch to the upside, while 1225 is key, following which a test to 1200 could be a possibility.

 

[Orbex_Expert]

Daily Forex Market Preview, 11/03/2016

Despite the ECB matching market expectations and going a bit beyond, the Euro erased previous losses and closed the day with strong gains. The single currency remains supported above the 1.10 handle and now aims for the 1.1335 resistance. Gold prices, on the other hand, continue to post highs but momentum is showing signs of stalling near the 12-month highs.

EURUSD Daily Analysis

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EURUSD (1.11): EURUSD broke out from the triangle pattern initially breaking lower. With support at 1.0825 - 1.0835 holding, prices quickly reversed to the upside breaking above 1.1105 - 1.113 resistance. A dip back to this broken resistance to establish support would see EURUSD look towards 1.1335 previous resistance. In the event of a break below the potential support level, 1.10 psychological level is likely to come in as resistance. There is also a Stochastics bearish divergence forming which if validated could see a decline towards 1.10 handle.

USDJPY Daily Analysis

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USDJPY (113.4): USDJPY remains trading sideways with an attempt to break out to the upside from the bearish descending triangle. Support at 112.50 looks to be holding strongly for the moment and any initial declines could likely stall at this support Below 112.50 support, 111.310 marks the main support level. USDJPY could likely remain range bound into next week with the range being established if prices dip below 112.50 handle with the downside target to 107 - 108 being tested on a break below the main 111.31 support.

GBPUSD Daily Analysis

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GBPUSD (1.42): GBPUSD closed on a bullish note following the previous doji pattern. Closing above the doji high, GBPUSD could likely test further upside in the near term but with resistance at 1.435 - 1.43 holding, price action could remain flat. The trend line is likely to be key as a break below this trend line could see a decline back to 1.4025 - 1.40 support. Above 1.435 - 1.43, GBPUSD could potentially move towards the 1.46 handle erasing almost all the losses from the previous weeks.

Gold Daily Analysis

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XAUUSD (1274): Gold prices remain consolidating above the 1250 handle with prices posting a new high at 1283 earlier today following the bullish engulfing pattern formed yesterday. However, the upside momentum is clearly showing signs of exhaustion with prices being rejected near the highs against closing prices. To the downside, 1250 support is proving a strong level with prices bouncing off on the declines. Gold could remain flat but supported above the 1250 handle.

 

[Orbex_Expert]

Daily Forex Market Preview, 15/03/2016

The US Dollar posted a recovery across the board with the Euro and the British Pound declining against the Greenback. US economic data is due later today with retail sales and PPI numbers which could be the main risk ahead of the FOMC meeting tomorrow. EURUSD has continued to decline following the test to 1.12 last week with 1.10 - 1.09 coming in as the next support level of interest.

EURUSD Daily Analysis

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EURUSD (1.11): EURUSD has declined for the second day following the brief test to 1.12 which saw prices being rejected strongly with a decline back to 1.10 being very likely. The Stochastics on the 4-hour chart is currently moving close to the oversold levels pointing to a short-term correction. If prices continue to hover near the 11105 - 1.113 levels of resistance, another possible leg to the upside could see prices attempt to test the previous highs. Below 1.10 handle, EURUSD could see a decline to as low as 1.095 - 1.093 support.

USDJPY Daily Analysis

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USDJPY (113.3): USDJPY is currently declining but the overall price action remains flat above the 112 support. Resistance near 114.7 - 114.35 is likely to see a test while prices continue consolidating above the 112.5 support. A breakout above 114.7 could open up a test to 117 while to the downside, below 112.50 the lower support at 111.31 will be in focus.

GBPUSD Daily Analysis

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GBPUSD (1.42): GBPUSD has been declining following the test to 1.443. Support at 1.4025 - 1.40 will be in focus in the near term if the declines continue. GBPUSD has also broken the trend line and a possible test back to the resistance levels near 1.435 - 1.43 could see resistance being established firmly at this level for a test down to 1.4025 - 1.40. Above 1.435 - 1.43 GBPUSD could see the bullish momentum push the Cable towards 1.46 where the next main resistance comes in.

Gold Daily Analysis

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XAUUSD (1230): Gold prices have cleared the 1250 support and the declines will continue pushing Gold lower to the 1200 handle. On the 4-hour chart, prices have dipped to 1230 - 1225 support. If this support level holds, another test back to 1250 to establish resistance on this broken support level could confirm the declines towards 1200.

 

[Orbex_Expert]

Daily Forex Market Preview, 16/03/2016

Following two days of quiet, the markets will be gearing up for a lot of economic releases today. First of the UK's jobs report is due with hawkish expectations of an increase in the average wages. GBPUSD has weakened strongly but remains supported above the 1.40 handle. Meanwhile, EURUSD and USDJPY are into a holding pattern ahead of the Fed's statement and press conference today.

EURUSD Daily Analysis

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EURUSD (1.10): EURUSD formed a doji pattern yesterday but the downside remains open towards 1.10 - 1.09 support. Price remains consolidating just below the resistance at 1.113 - 1.1105 which if holds could see the upside limited. Below 1.09 support, EURUSD could decline to as low at 1.0825 - 1.0835 which was barely tested during last week's ECB meeting. With the FOMC meeting due later today and US economic data EURUSD could see some significant volatility into the meeting. In the event that EURUSD breaks above 1113 - 1.1105, a test to the next resistance near 1.12 - 1.13 could be possible.

USDJPY Daily Analysis

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USDJPY (113.4): USDJPY closed on a bearish note yesterday and could see a risk to the downside for 112.0 support. On the 4-hour chart price action remains flat with no clear bias being established just as yet. In this aspect, there is a strong indication that USDJPY could breakout from its range during the FOMC meeting. Watch for 112.0 - 112.5 support level, which if breaks could see a test to 111.0, while to the upside above 114.7 - 114.35 resistance, 117 - 117.25 will be the next resistance level of interest.

GBPUSD Daily Analysis

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GBPUSD (1.41): GBPUSD has declined strongly following a brief test of resistance near 1.435 - 1.43 and is now trading below 1.420. Any upside gains are likely to be limited below 1.43 resistance while a decline to 14025 - 1.40 is very likely. UK jobs report will be due for release today which could be the main fundamental risk aside from the US data due later in the evening.

Gold Daily Analysis

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XAUUSD (1233): Gold has broken out from the rising wedge pattern on the daily chart and is now trading below the $1250 support. A rally back to this level to establish resistance could pave the way for a dip to $1200 with prices currently trading near the 1230 - 1225 support level.

 

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Daily Forex Market Preview, 17/03/2016

With the US Federal Reserve holding rates steady yesterday and lowering its Fed funds rate forecasts to two rate hikes in 2016, aligning with the market expectations, the US Dollar is likely to remain weak in the near term, which should, in turn, see the Euro and the Yen strengthen. The British Pound could, however, remain the exception as we expect to see another test down to 1.40 levels.

EURUSD Daily Analysis

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EURUSD (1.12): Following a small bodied candlestick pattern the day before, EURUSD closed on a bullish note yesterday. Prices are back to the ECB highs of 1.120 resistance which could see another leg of consolidation come in within the 1.13 - 1.12 resistance zone. On the 4-hour chart, the price action still remains a bit doubtful as the Stochastics points to a bearish divergence to the modestly higher highs in price. Support at 1.113 - 1.1105 will be the initial level of interest if the upside is capped but a decline to 1.10 could confirm the much-needed correction.

USDJPY Daily Analysis

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USDJPY (112.02): USDJPY continues it decline with prices now testing the 112.0 support level. A break below this support could open strong declines lower towards 111.0. On the 4-hour chart, prices still remain flat with no bias in sight. Prices have attempted to breakout from the descending triangle pattern but will little success failing to clear the 114.7 - 114.35 resistance. With 112.5 support being cleared, USDJPY will see potential declines towards 111.310.

GBPUSD Daily Analysis

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GBPUSD (1.423): The British Pound managed to post a strong reversal yesterday following a decline to the 1.41 handle. With prices trading above 1.40 the bias remains to the upside for the resistance at 1.43. Currently, the GBPUSD's rally has seen a retest back to the breakout of the trend line. If this is validated GBPUSD could resume its declines and test the 1.4025 - 1.40 support level.

Gold Daily Analysis

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XAUUSD (1257): Gold prices are back above the $1250 handle and closed yesterday with a strong bullish price action coming after the previous day's doji pattern. We can expect Gold to continue consolidating within the 1275 - 1250 levels unless there is a break of the 1250 support in which case, a dip back to the previous support at 1230 - 1225 is likely.

 

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Daily Forex Market Preview, 21/03/2016

The US Dollar closed last week on a bearish note and further downside is likely to follow but not before prices pullback from the recently established directions. Gold is likely to stay soft as a risk on the environment is likely to prevail in light of Central bank decisions over the last two weeks.

EURUSD Daily Analysis

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EURUSD (1.12): Continuing from Friday's price action, EURUSD is back trading near the 11th February highs of 1.1323 - 1.130 level of resistance. A break above 1.13 is essential for EURUSD to post new highs, failing which, below the resistance zone low of 1.120, a dip back to 1.11 is possible. On the 4-hour chart, price action in EURUSD is currently seeing a consolidation following the rally over the past few days. As such, 1.13350 resistance on the 4-hour chart will be critical for further price action with 1.1202 - 1.119 coming in as the lower support. A break below this support could see EURUSD test the next support at 1.113 - 1.1105. As long as EURUSD is supported above 1.11, the bias remains to the upside.

USDJPY Daily Analysis

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USDJPY (111.5): USDJPY broke below 112.0 support level but managed to close Friday's session with a modest bullish price action. A close back above 112.0 could see further upside in store, but price action's rally could be limited to the 114.35 - 114.70 resistance. The 4-hour chart shows a strong bearish divergence forming on prices above the 111.31 support. A close above 112.0 - 112.50 will confirm the move towards 117.0 - 117.25 if the interim resistance level of 114.35 - 114.70 gives way. To the downside, below 111.31, a test to 110 is evident.

GBPUSD Daily Analysis

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GBPUSD (1.44): GBPUSD formed a doji candlestick pattern on Friday and if today's bearish price action closes below the low of 1.441, a short-term correction is on the cards. On the 4-hour chart, price action is already showing bearish signs with the occurrence of doji candlestick patterns above 1.448 with a minor support formed at 1.443. A break below this level could see GBPUSD slip towards 1.4263 - 1.4247 support. The bias remains to the upside, as long as GBPUSD remains above the aforementioned support, failing which, a dip to 1.4025 - 1.40 support is possible

Gold Daily Analysis

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XAUUSD (1251): Gold prices are likely to close on the third day of bearish declines, following the small bodied candlestick patterns formed above the 1250 level which has retested the breakout from the daily chart's rising wedge pattern. However, 1250 still remains a key support with Gold biased to the upside. A break below 1250 could see Gold prices decline towards 1230 - 1225 support.

 

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Daily Forex Market Preview, 22/03/2016

The British Pound is likely to come under pressure as further downside momentum is likely to see the GBP give back some of its previous gains as UK's inflation data is due later today. Gold prices remain flat but another test to 1250 is likely while the bias remains to the downside.

EURUSD Daily Analysis

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EURUSD (1.12): EURUSD has eased back from its bullish momentum after prices hit the resistance at 1.13. Trading within the range of 1.13 and 1.12, EURUSD is likely to continue trading sideways unless one of the levels gives way. Above 1.13, price action is likely to see a test of 14th September highs near 1.1460 while to the downside, below 1.120, EURUSD could slip towards 1.11 support. The 4-hour Stochastics is currently in the oversold level which could indicate a potential move higher towards 1.13.

USDJPY Daily Analysis

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USDJPY (111.9): USDJPY closed the second day with bullish gains but remains capped below 112.0 support/resistance. A break above 112.0 will see further upside in store towards 114 resistance level while to the downside below 111.0, the next support at 110 could cap the declines. On the daily chart, USDJPY is forming a bullish divergence which could eventually see a longer term correction to 117 if the resistance at 114 breaks to offer support. On the 4-hour chart, however, the Stochastics is in the oversold levels, indicating a possible move lower to 111.31 to establish support as the bias remains limited to the downside for now.

GBPUSD Daily Analysis

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GBPUSD (1.43): GBPUSD declined below the previous day's doji low and closed below 1.443. Failure to close back above this level could see further downside in GBPUSD towards 1.42. A possible retest to the 1.443 could see GBPUSD cap the upside gains for a move to test the next support near 1.4263 - 1.4247. Below this support, the bias in GBPUSD turns bearish as the next support comes in at 1.4025 - 1.40.

Gold Daily Analysis

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XAUUSD (1244): Gold prices have closed the third day with declines but prices remain supported above 1246 - 1238 levels which could see another test to 1250, this time, to establish resistance. A confirmation of this could see further downside towards 1230 - 1225 levels where the next support comes in. The 4-hour Stochastics is oversold and confirms a move to the upside with an eye on 1250.

 

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Daily Forex Market Preview, 23/03/2016

The terrorist attack in Brussels yesterday briefly rattled the currency markets as a flight to safety saw Gold and Yen being bid up. By the NY session, the US Dollar started to post steady gains with Gold and Yen easing back from the short-term gains in prices. The British Pound was the most affected as the price fell sharply with GBPUSD trading at the $1.42 handle.

EURUSD Daily Analysis

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EURUSD (1.12): EURUSD has closed a third consecutive session to the downside but the daily chart shows prices likely to remain above $1.120 lower support level briefly. A break below this going by the bearish momentum could see further downside in store but prices could bounce off the 1.120 handle on the first test of support. Below 1.12, 1.113 - 1.1105 support will be the next level of support to watch for, which could keep EURUSD biased to the upside.

USDJPY Daily Analysis

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USDJPY (112.37): USDJPY has moved up and is currently trading at the ¥112.0 support level but a confirmation with a higher low is needed to validate the upside as ¥114.0 resistance is likely to cap the gains in the short term. Overall, the long-term view for a test to ¥117 remains on the cards. On the 4-hour chart, 112.50 will be the first level of resistance that needs to be cleared, following which a test to ¥114.7 - ¥114.35 is likely. To the downside, if ¥112.5 resistance holds, USDJPY could remain range bound within ¥111.31 while a break below this support could see the bearish trend resume.

GBPUSD Daily Analysis

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GBPUSD (1.41): GBPUSD has fallen to the 1.42 support following the doji candlestick pattern that was formed last Friday and this Monday's bearish close. The daily chart shows the hidden bearish divergence with the oscillator forming a higher high against price's lower high opening up room for further downside. With the support at $1.4263 being broken on the 4-hour chart, a pullback to this level could establish resistance, in which case GBPUSD could fall to the lower support at $1.4025 - $1.40.

Gold Daily Analysis

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XAUUSD (1234): Gold prices are looking to move lower following yesterday's rally back to $1250 handle. With prices being rejected at this level and the current bearish declines, Gold prices are likely to continue lower towards the $1200 support. In the short term, watch the support near $1230 - $1225, which if holds could see Gold bounce back but remain range-bound below the $1250 handle. Only a close back above the $1250 will shift the current downside bias to neutral.

 

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Daily Forex Market Preview, 24/03/2016

The Greenback continued its recovery with a 4-day winning streak after prices fell last week on dovish Fed outlook. Supported by hawkish speeches from most of the Fed officials speaking for rate hikes, the US Dollar continues to gather momentum. Focus is on today's durable goods data which is expected to decline.

EURUSD Daily Analysis

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EURUSD (1.11): EURUSD continues its declines for the fourth day, albeit price action has remained very tight. Having cleared the 1.120 support, EURUSD is likely to slip towards 1.113 - 1.1105 lower support before any attempts to correct the declines can be made. A close back above the 1.12 handle could keep EURUSD range bound, while below 1.1105, further declines could be seen sending the single currency towards 1.10 handle. The consolidation is likely to continue until the end of the trading week.

USDJPY Daily Analysis

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USDJPY (112.80): USDJPY looks poised to the upside, but yesterday's doji candlestick pattern calls for caution. A close above yesterday's high at 112.907 on a daily basis will clear the way for further upside in prices. With USDJPY now trading above 112.0 handle, the bias shifts to the upside as long as the support holds. There is, of course, a hidden bearish divergence formed in prices right now which could see some downside pressure in USDJPY in the near term. Below 112.0, the previous support at 111.31 will be back in focus.

GBPUSD Daily Analysis

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GBPUSD (1.40): GBPUSD closed below the 1.42 handle yesterday and marks a three-day strong decline following the doji pattern last Friday. Price action could see a possible pullback to the 1.426 - 1.4247 broken support to establish resistance ahead of further declines while support at 1.402 - 1.40 will be likely to hold the declines for now. But a failure below this lower support could send GBPUSD back to previous lows to 1.39. UK retail sales data will be the big catalyst early on followed by US data due later in the afternoon.

Gold Daily Analysis

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XAUUSD (1218): Gold prices have broken below the previous lows established at 1230 and yesterday's close at 1220 indicates a further decline to the 1200 level if there are no pullbacks. In the event of prices retracing the recent losses, the previous low at 1230 will likely come in as resistance capping the gains to the upside. Resistance levels at 1243 - 1237 and 1230 - 1225 will be the levels to watch for.

 

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Daily Forex Market Preview, 25/03/2016

The US Dollar continued its recovery and is likely to close the week with gains. The markets are sparse today with not much of data to go by, and the currency markets are likely to stay flat for the most part. US GDP data is awaited later in the afternoon.

EURUSD Daily Analysis

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EURUSD (1.11): EURUSD closed with a doji candlestick pattern yesterday after four days of consecutive declines. Today's price action will be critical in this regards as a bullish reversal could see a short-term recovery in prices. EURUSD remains flat and is likely to remain the same today. Support comes in at 1.113 - 1.1105 and resistance comes at 1.12, the recently cleared level. The 4-hour chart shows a bullish engulfing candlestick formed a few sessions ago which will likely keep the bias to the upside towards 1.12.

USDJPY Daily Analysis

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USDJPY (113.16): USDJPY managed to clear the doji pattern formed two days ago. Price action remains capped by the 20 day moving average on the daily chart while price sits above 112 support. On the 4-hour chart, the hidden bearish divergence continues to play out and in this regards, 112.5 support will be the focus. A break below 112.5 could send USDJPY lower towards the next support at 112 and eventually to 111.31.

GBPUSD Daily Analysis

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GBPUSD (1.41): GBPUSD managed to close bullish yesterday following the three days of strong declines. Dynamic support off the median line on the daily chart is likely to keep prices biased to the upside. The daily Stochastics is also likely to post a higher lower if the next few sessions manage to close higher. On the 4-hour chart, any pullbacks to the broken support at 1.424 - 1.426 will likely keep the downside pressure. Support at 1.4025 - 1.40 is important to stem further declines.

Gold Daily Analysis

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XAUUSD (1217): Gold prices have moved strongly lower following the reversal off the $1250 handle earlier this week. Prices are currently at 1217 and seeking dynamic support off the lower median line on the daily chart, which could indicate a potential move to the upside, but is limited to the previous low formed at 1230. The bias in Gold clearly is to the downside with 1200 most likely to be tested.

 

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Daily Forex Market Preview, 28/03/2016

A surprise revision to the fourth quarter GDP sent the US Dollar higher on Friday amid holiday thin trading. On the whole, the US Dollar closed last week with strong gains and erasing the losses from the week ago. Economic data today will focus on the PCE numbers from the US, but trading is likely to remain quiet for most of the Europe closed due to Easter Monday bank holiday.

EURUSD Daily Analysis

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EURUSD (1.11): EURUSD has formed an inside bar following the doji candlestick pattern last Friday. Pointing to an imminent breakout, further directional bias is likely to be established. Currently, the declines sit close to the 38.2% retracement level off the 02/03 lows of 1.0825 and 17/03 highs of 1.1342. Support comes in at 1.113 - 1.1105 while resistance is at 1.12 - 1.119, which could be tested and potentially cap any further gains in EURUSD. Below 1.1105, lower support at 1.1095 - 1.1093 will be in focus.

USDJPY Daily Analysis

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USDJPY (113.46): USDJPY continues its gradual bullish trajectory after prices managed to close above the doji and supported above 112.0. On the 4-hour chart, the hidden bearish divergence remains in place and points to a short-term dip to 112.5. This could potentially mark a short-term correction ahead of a rally to the next resistance at 114.35 - 114.7. A break above this level could see USDJPY attempt to test the older resistance at 117 - 117.250.

GBPUSD Daily Analysis

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GBPUSD (1.41): GBPUSD remains range bound within last Thursday's range. Resistance at 1.4263 - 1.424 will cap any rallies while support at 1.4025 - 1.40 will hold any declines. GBPUSD could remain range bound within these levels in the near term and only a break out in one of the directions will see the further continuation. But the bias remains to the upside on a test of support at 1.4025 - 1.40, and if the upper resistance gives way, GBPUSD could be looking to post another leg to the upside.

Gold Daily Analysis

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XAUUSD (1214): Gold prices are trading close to the $1200 handle but at a risk of a possible short-term correction to the upside. The recently broken support at 1225 - 1230 could likely remain a key price zone for a test of resistance, in which case it would confirm a move to the $1200 handle. Only a break above 1230 will confirm further upside in Gold.