Daily Forex Analysis by Orbex

[Orbex_Expert]

Daily Forex Market Preview, 30/06/2016

The US dollar gave up some of its gains for the second day yesterday as the markets continue to recover the Brexit led declines. The economic calendar today is busy with the UK's final GDP revision, but it is unlikely to evoke any strong response from the markets. Euro zone CPI estimates are also on the tap today. GBPUSD remains range bound while EURUSD seeks to find support above 1.110.

EURUSD Daily Analysis

(click to enlarge)

EURUSD (1.11): EURUSD has been bullish for the past three consecutive days with yesterday's price action filling the gap from June 24 closing price at 1.1105. Price action is now seen challenging the 1.110 minor resistance level which previously acted as support around 30th May and in mid March. The 4-hour chart shows a hidden bearish divergence at the current price level which could signal a near term downside in the EURUSD. However, prices remain supported above 1.10 previous support that was formed. The upside bias to 1.112 remains open but expect EURUSD to remain range bound within 1.110 and 1.10 in the near term.

USDJPY Daily Analysis

(click to enlarge)

USDJPY (102.7): USDJPY remains supported above 102 level, but the price action has been limited so far. On the 4-hour chart, there is a possibility that USDJPY is consolidating into an ascending triangle pattern with the resistance seen at 103. The near-term weakness could see USDJPY range between 103 and 102 levels with further upside likely on a break above 103 which could extend USDJPY's gains to 104 resistance. To the downside, a break below 102 could send USDJPY back to the lower support zone near 101.26 and 101.0.

GBPUSD Daily Analysis

(click to enlarge)

GBPUSD (1.339): GBPUSD has managed to close bullish yesterday establishing support at 1.32. On the 4-hour chart, prices started to decline following the shooting star pattern near 1.3488 resistant that was identified. GBPUSD remains range bound within the inside bars off the daily chart. To the downside, support at 1.32 - 1.312 is key while further upside can be expected only on a breakout above 1.348 - 1.341, in which case GBPUSD could extend its gains to 1.3677.

Gold Daily Analysis

(click to enlarge)

XAUUSD (1315.17): Gold was trading bullish yesterday, but prices failed to breakout above the previous day's highs. The ranging price action is expected to continue in the near term with 1300 support to the downside likely to be tested in the near term. On the 4 hour chart, gold prices have remained flat with another retest to 1310 support likely followed by the major support at 1300 pending for a retest.

 

[Orbex_Expert]

Daily Forex Market Preview, 01/07/2016

The British pound fell yesterday evening sharply after comments of rate cuts and QE from BoE's Carney. The euro also came under pressure giving back some of the gains made from earlier this week. The markets remain in a consolidation phase following the strong moves from the week before. With a new trading month, economic data will be back in focus as the markets could be looking to a breakout from the ranges over the coming days.

EURUSD Daily Analysis

(click to enlarge)

EURUSD (1.109): EURUSD formed an outside bar on the daily session yesterday after QE and rate cut comments from the BoE Governor, Carney. The price action from the past three days shows a kind of consolidation taking place near the minor resistance level at 1.110 and a bearish turn around here could push the euro back to trading within 1.110 and 1.10 previous support. The minor rising trend line connecting the lows of 1.09473 from 24/06 and 1.10729 lows from 30/06 could signal a near-term decline in prices on a breakout below the trend line. In the near term, EURUSD could remain trading sideways and further upside can be seen only on a breakout above 1.1128 for 1.120 and a breakout from the trend line could see prices falling back to 1.10.

USDJPY Daily Analysis

(click to enlarge)

USDJPY (102.9): USDJPY has been inching higher gradually, but the pace of the gains has been relatively small. That said, the dollar remains supported above 102Yen. There was an attempt to breakout above 103 resistance from the ascending triangle pattern, but prices quickly fell back lower indicating another session of consolidation below 103. The bias remains to the upside unless the trend line is broken which could weaken the dollar back to 102 lower support.

GBPUSD Daily Analysis

(click to enlarge)

GBPUSD (1.332): GBPUSD remains trading flat after giving up the past two days of gains yesterday evening. Prices briefly fell back to lows just above 1.32 support. The support/resistance level identified on the chart earlier this week remains a strong range for GBPUSD, and further price action is likely only on a breakout from this range. Watch for 1.3488 - 1.3419 resistance and 1.3204 - 1.3121 support.

Gold Daily Analysis

(click to enlarge)

XAUUSD (1330.09): Gold prices continue to modestly push higher following the pullback from Tuesday earlier this week. While 1350 - 1300 remain the levels of interest, the current consolidation is seen within 1327.5 - 1310.5 are showing a possible breakout to the upside. A confirmed breakout from this range could see gold prices edge higher and potentially test the 1350 levels in the near term.

 

[Orbex_Expert]

Daily Forex Market Preview, 04/07/2016

Gold prices rallied early today testing the 1350 resistance as noted over the past few days. Further upside is likely to continue if price clears the 1350 handle which could keep gold testing 1371.90. EURUSD is also inching higher having cleared 1.110 support as 1.120 target remains in sight. GBPUSD is expected to remain range bound in the near term.

EURUSD Daily Analysis

(click to enlarge)

EURUSD (1.113): Having posted a fairly decent recovery after closing Friday's session at 1.1132, EURUSD remains supported above 1.110 support and is now likely to push higher to 1.120 resistance level. The 4-hour chart shows prices breaking above 1.1126 minor resistance level confirming the view with the bias to the upside. Alternately, with prices above the support zone of 1.1126 and 1.110, a break below this support zone could invalidate the upside bias and we could expect EURUSD to push back lower below 1.110 and 1.10.

USDJPY Daily Analysis

(click to enlarge)

USDJPY (102.9): USDJPY remains supported above 102.0 level. However, with prices breaking below the trend line and trading below 103 resistance, we could expect some downside. Overall, USDJPY remains caught within 103 and 102 levels in the near term. Support is seen at 102, but a break below could extend declines to 101 - 101.26. To the upside, a bullish breakout above 103 is required to validate the move towards 104 resistance. Price action has formed a bearish flag pattern as well, which could put USDJPY to the downside on a break below 101.26 - 101 support which could see a decline back to the 100 level psychological barrier.

GBPUSD Daily Analysis

(click to enlarge)

GBPUSD (1.328): GBPUSD has been consolidating above 1.32 support with prices ranging below the resistance of 1.34. The consolidation could see a breakout in either direction. To the upside, above 1.34, GBPUSD could extend its gains to 1.36 as the next main level followed by closing in on the unfilled gap at 1.3677. While to the downside, below 1.32, GBPUSD will need to clear the minor support through to 1.3121 before further downside can be expected.

Gold Daily Analysis

(click to enlarge)

XAUUSD (1345.87): Gold prices have been testing the 1350 resistance as noted over the past few days following the breakout of the consolidation near 1327.5 and 1310. Expect gold to consolidate at the current levels with support no at 1327.5. To the upside, further gains could be seen only above 1350 with the next target coming in at 1371.90.

 

[Orbex_Expert]

Daily Forex Market Preview, 05/07/2016

EURUSD is retesting the 1.110 level for support ahead of what could be the next leg up to test the 1.120 level. USDJPY has turned bearish and is seen paring gains with support at 102, a break below which could accelerate further declines. Gold prices remain stuck at 1350 with a pullback to 1327.50 likely. In terms of economic data, BoE's Financial Stability Report and Services PMI are the major fundamentals to look forward to today.

EURUSD Daily Analysis

(click to enlarge)

EURUSD (1.113): EURUSD is seen pulling back after edging higher yesterday. Having cleared 1.110, the current pullback could be limited to 1.110 to establish support. In such an event, EURUSD could potentially be forming a base at 1.110 for the eventual test to 1.120 resistance. On the 4-hour chart, price action has been strongly consolidating over the past week, moving within a rising price channel and forming a subsequent bull flag pattern, which raises the risk of a breakdown of prices below 1.110. In this case, a bearish reversal near 1.110 could potentially signal an eventual decline down to 1.10.

USDJPY Daily Analysis

(click to enlarge)

USDJPY (102.1): USDJPY has been giving up its gains from the past week with prices seen testing the 102 support. A break below 102 could potentially trigger further declines with prices likely to fall back to 101.267, from June 24th close. Support is seen at 101.267 - 101.0 levels to the downside which could hold the prices. USDJPY is also forming a bearish flag pattern but could be validated only on a strong close below the lower support levels.

GBPUSD Daily Analysis

(click to enlarge)

GBPUSD (1.325): GBPUSD has been pushing lower although price remains range-bound within 1.34 and 1.32. The 4-hour chart also shows the strong sideways price movement within 1.3488 and 1.320 levels. The Stochastics oscillator is, however, pointing to a bullish divergence at the current lows which increases the likelihood of a breakout to the upside. A close above 1.3488 could signal further upside towards 1.3677 and to 1.380 eventually.

Gold Daily Analysis

(click to enlarge)

XAUUSD (1344.33): Gold prices closed at 1350 yesterday, and the current consolidation could remain in play for the near term. On the 4-hour chart, price action is seeing a bearish reversal with the doji candlestick formed a few sessions ago followed by the bearish close. Declines could be limited to 1327.50 to retest the sideways' price action resistance level to establish support.

 

[Orbex_Expert]

Daily Forex Market Preview, 06/07/2016

Risk aversion resumed after the US returned from holiday with investor sentiment turning sour after a third real estate fund suspended trading after an increase in investor redemptions. Sterling slumped as expected, fueled by BoE lowering capital buffer requirements. Today's main catalyst will be the FOMC meeting minutes.

EURUSD Daily Analysis

(click to enlarge)

EURUSD (1.105): The single currency was bearish yesterday closing in a bearish engulfing pattern. With prices breaking below 1.110, further downside is expected on a confirmation of price action falling below 1.10, unless we see a reversal back above 1.10. The dollar has resumed its strength and quite likely that further downside can be expected in EURUSD as a result. Watch for EURUSD to decline to 1.09 if the 1.10 support fails to hold the declines. The bearish view is seen being validated on the 4-hour chart where EURUSD is seen breaking out strongly from the bearish flat pattern, with further downside on a break below 1.10. Look for short-term retracements to 1.110 of the current 1.105 or 1.10, alternatively a bearish close 1.10.

USDJPY Daily Analysis

(click to enlarge)

USDJPY (100.87): USDJPY closed down below 102 support yesterday with prices extending lower. Next major support is at 100, which makes for a strong psychological level. The daily Stochastics is still forming a bullish divergence and as noted in yesterday's commentary the potential bullish divergence could see price post a correction in the near term. On the 4-hour chart, USDJPY is still making a higher low compared to the June 23 lows of 99.01. To the upside, 102 remains a key resistance level with further upside likely only on a break above this level.

GBPUSD Daily Analysis

(click to enlarge)

GBPUSD (1.288): GBPUSD broke out of its range to the downside at 1.320 and promptly extended its decline below 1.30 with prices seen testing the lows of 1.28 earlier today. On the 4-hour chart, the downside breakout has validated the bear flag pattern confirming further downside. However, watch the bullish divergence on the Stochastics, which could offer a modest bounce back to 1.3121 - 1.320 which previously acted as support. A retest of resistance here will confirm more downside in GBPUSD.

Gold Daily Analysis

(click to enlarge)

XAUUSD (1367.67): Gold prices broke out to the upside above 1350 yesterday with early price action this morning seeing a test of 1371. There is a strong median line resistance at the current levels which could keep gold consolidated in the near term. On the 4-hour chart, 1371.91 target is likely to be achieved, but a close above this level would confirm the view. So far we only had a brief test to this level. Overall, gold looks to have completed its bullish extension following the bullish pennant breakout and a resulting retest back to 1310. We also notice a potential broadening funnel pattern forming which could see a downside back to 1327.50 following a bearish reversal near 1371 - 1375 region.

 

[Orbex_Expert]

Daily Forex Market Preview, 07/07/2016

The US dollar gave back most of its gains yesterday, but price action is likely to be supported to the upside in the near term. While the euro remains caught within 1.115 levels, the bias is increasingly turning bearish. For the USDJPY, early price action is showing signs of a turn around, with 102 coming in, as the initial level to be challenged, whereby a close above 102 could see the dollar extend gains to 105.

EURUSD Daily Analysis

(click to enlarge)

EURUSD (1.110): EURUSD closed on a bullish note yesterday with prices stalling just close to 1.110 resistance level as noted the day before. A bearish follow through from here could signal further downside, with 1.10 coming into question. On the 4-hour chart, the recent retracement seen marks a retest of the breakout from the bearish flag pattern indicating further weakness. While 1.10 remains the initial support level of interest, a breakdown below could extend the declines to 1.09. To the upside, should there be a bullish close above 1.11; further gains could be seen, towards 1.120 and 1.124 invalidating the bearish flag pattern.

USDJPY Daily Analysis

(click to enlarge)

USDJPY (101.01): USDJPY extended its declines down to 100.20 yesterday falling short of the 100.00Yen psychological level. Price action is likely to remain range bound within 102 and 100. A lower close at or below 100 could potentially keep the bullish divergence in play signaling a correction in the near term. Any upside gains are likely to come only on a close above the 102 level following which further upside could be extended to 105.

GBPUSD Daily Analysis

(click to enlarge)

GBPUSD (1.297): GBPUSD closed below 1.30 yesterday after a brief touch of support near 1.28 level. Price action is likely to move into a sideways pattern for the moment with 1.30 acting as the initial minor resistance. Any gains are likely to be capped near 1.312 - 1.320 region where resistance could be established before GBPUSD falls lower. To the upside, a breakout above the resistance could signal GBPUSD moving back into the previous range that was established.

Gold Daily Analysis

(click to enlarge)

XAUUSD (1367.82): Gold prices posted new highs yesterday at 1375.29 before pulling back modestly. As noted yesterday, price action could turn flat the current levels of 1375 - 1371 while the broadening wedge/funnel pattern could see a near-term pullback. 1350 followed by 1327.50 remain the key levels of support to the downside, with further declines likely to extend down to 1300. The longer-term view remains biased to the upside, and could only change on a convincing close below 1300.

 

[Orbex_Expert]

Daily Forex Market Preview, 08/07/2016

Markets were trading cautiously yesterday after the initial positive sentiment flipped led by declines in Oil. ADP payrolls report yesterday showed 172k jobs being added to a better than expected jobless claims as well, feeding the optimism into today's nonfarm payrolls report for June, widely anticipated to show a rebound following the weak numbers in May. The US dollar (US Dollar Index) trades precariously above the 96 level, with resistance at 96.5 to the upside and support at 95.

EURUSD Daily Analysis

(click to enlarge)

EURUSD (1.108): EURUSD closed at 1.1062 yesterday after a test to 1.110. Price action has formed an inside bar and a breakout from Wednesday's range of 1.1115 high and 1.10291 low could signal further continuation. The longer term resistance and support levels of 1.120 and 1.10 remain in place which could be targeted on a breakout off the inside bar. On the 4-hour chart, price action has been consolidating following the breakout from the bearish flag pattern and below 1.110 price level which has been acting a minor resistance level. While the bias remains to the downside, watch for any potential bear traps as EURUSD has not completed the correction to 1.120. Only a confirmed break below 1.10 will signal further continuation to the downside.

USDJPY Daily Analysis

(click to enlarge)

USDJPY (100.28): USDJPY closed with an inside bar yesterday following Wednesday's price rejection near the lows of 100Yen. Currently, USDJPY is seen extending declines back to the 100Yen which could hold up as support. 102.00 now comes in as a resistance level with further upside likely only on a breakout above 102. To the downside, below 100, USDJPY could be looking to test 99.95 followed by 98.26 - 98.0 lower support. It will also confirm the completion of the measured move target of the bearish flag pattern.

GBPUSD Daily Analysis

(click to enlarge)

GBPUSD (1.295): GBPUSD is seen trading within 1.30 and 1.28 levels on the daily chart. The retest of the 1.312 - 1.32 previous support remains. A correction to this level to establish resistance could well confirm the downside in GBPUSD which could see a renewed decline to the downside. The price action on the 4-hour chart shows a consolidation taking shape in a descending wedge pattern, where a breakout above 1.30 could see GBPUSD extend its gains towards 1.312 - 1.30 levels. A close above 1.32 could keep the gains intact and see GBPUSD move back into its previous range with the next resistance at 1.34 coming into the picture. To the downside, only a break below 1.28 will see further declines.

Gold Daily Analysis

(click to enlarge)

XAUUSD (1358.77): Gold prices closed with a spinning top yesterday, but price remains above the $1350 handle. On the 4-hour chart, we notice gold prices declining and briefly sliding to just above the $1350 support. We can expect to see some near-term consolidation within the broadening wedge pattern. Further gains or declines can be seen on an upside breakout above 1371 and a break of support at 1350. Below 1350, gold prices could be seen targeting 1327.50 major support.

 

[Orbex_Expert]

Daily Forex Market Preview, 11/07/2016

GBPUSD is likely to see a retracement back to 1.32 level ahead of the inflation report hearing and the BoE meeting this week. The falling wedge pattern on the 4-hour chart is indicative of a short term correction to the upside with 1.32 level in focus having acted previously as a strong support level; a retracement could establish resistance here. Gold prices, on the other hand, could stay range bound within 1375 and 1350 levels with further gains or declines coming off a breakout from either of the two levels.

EURUSD Daily Analysis

(click to enlarge)

EURUSD (1.104): EURUSD closed with an outside bar on Friday with prices still supported above 1.10. The ranging price action between 1.110 and 1.10 is, therefore, likely to continue over the week with a breakout off these levels likely to see a continuation. On the 4-hour chart, EURUSD has been posting lower highs ever since prices bounced off the 1.0950 level. Minor support/resistance is seen at 1.1045 which could see the sideways price action continue to move within the levels mentioned.

USDJPY Daily Analysis

(click to enlarge)

USDJPY (101.43): USDJPY is looking to retrace its declines with Friday's session closing in a modest spinning bottom candlestick pattern. A bullish close today above the resistance at 102 could signal the correction. On the 4-hour chart, we can see a strong hidden bearish divergence in play with 102 very likely to hold out as resistance. USDJPY could, therefore, remain range bound within 102 and 101 levels in the near term. A break below 101 could, however, signal a test to the 100Yen psychological support level.

GBPUSD Daily Analysis

(click to enlarge)

GBPUSD (1.296): GBPUSD formed an inside bar on Friday and could potentially signal either a continuation or a retracement depending on which way the breakout is triggered. Last Thursday's high of 1.3047 and lows of 1.2876 remain the key levels of interest. To the upside, resistance is seen at 1.32 which previously acted as support and could potentially cap the rallies. Further upside is expected only on a breakout above this level. To the downside, 1.28, last week's lows remain the key level. On the 4-hour chart, prices are seen a gradually breakout from the descending wedge pattern, and further upside can be seen only above 1.30, for a move to 1.312 - 1.32.

Gold Daily Analysis

(click to enlarge)

XAUUSD (1366.44): Gold prices have remained supported to the upside, but the price action is showing signs of consolidation above the $1350 handle. After falling to 1350, gold prices briefly pulled back and closed the latest 4-hour session within a spinning top near 1371.91. A bearish follow through here could potentially signal a decline back to 1350. Overall, gold prices could stay flat within 1375 and 12350 in the near term with the support at 1327.50 likely to be tested on a downside breakout.

 

[Orbex_Expert]

Daily Forex Market Preview, 12/07/2016

Political developments in Japan and the UK saw the respective currencies react in the positive. While the GBP managed to close bullish on news that Theresa May is likely to be the new PM, the Japan elections have boosted hopes for fiscal stimulus and potentially more BoJ easing later this month. The pullback in the risk aversion has kept gold price action subdued, but it is likely to stay range bound within 1350 - 1370 in the near term.

EURUSD Daily Analysis

(click to enlarge)

EURUSD (1.107): EURUSD posted a small bodied candlestick pattern yesterday, marking two consecutive days of limited open and close. Prices remain steady above 1.10 support with 1.110 coming into the picture. On the 4-hour chart, it is evident that price has formed a higher low above 1.10, and we could expect to see a near term continuation to the upside. Above 1.110, 1.120 could be back into focus, unless the ranging price action breaks out strongly. Minor support at 1.1037 is seen to be established at the current levels, keeping the scope for an upside move intact.

USDJPY Daily Analysis

(click to enlarge)

USDJPY (102.98): USDJPY closed on a bullish note yesterday with price action clearing the 102 resistance level. The daily chart is also marked by the bullish divergence against the lower low in price. Next resistance at 104 could be challenged in the near term, while 102 is likely to be tested for support in the near term. On the 4-hour chart, we notice a strong hidden bearish divergence currently and the price action near 104 will be key in this regard. A bearish close after establishing resistance at 104 could keep USDJPY ranging above 102.

GBPUSD Daily Analysis

(click to enlarge)

GBPUSD (1.306): GBPUSD has been trading modestly stronger, closing two days on a bullish note. Prices cleared above 1.30 level, and 1.32 resistance could be coming into question. While the breakout from the falling wedge pattern hasn't been strong enough, the upside continuation is likely to confirm the move to 1.32. Establishing resistance here could signal renewed declines in the GBPUSD.

Gold Daily Analysis

(click to enlarge)

XAUUSD (1354.57): Gold prices closed with a bearish engulfing body yesterday, but prices remain supported above 1350. On the 4-hour chart, we can see gold prices likely to remain range bound within 1370 and 1350. There is scope for further declines only on a breakout below the 1350 support which could see 1327.50 being challenged.

 

[Orbex_Expert]

Daily Forex Market Preview, 13/07/2016

GBPUSD and the USDJPY rallied yesterday, breaching $1.32 and 104Yen respectively as noted in yesterday's commentary. Price action is likely to pause in the near term as investors wait for more clues. USDJPY is seen trading within 102 - 105 levels, while GBPUSD could be in a range within 1.30 and 1.32 with the potential to challenge previous resistance near 1.34. For gold, following the breakout below 1350, we expect near term declines to test 1327.50 support and eventually a slide back to 1300.

EURUSD Daily Analysis

(click to enlarge)

EURUSD (1.106): EURUSD failed to close back above 1.110 resistance yesterday with price action continuing to trade flat within 1.11 and 1.10 price levels. The daily chart's price action shows a bearish flag being formed and could see a potential continuation to the downside on a break out below 1.10. On the 4-hour chart, the previously mentioned bear flag continues to be valid with price retesting the 1.110 level. The further downside could be therefore expected on a price breakout below 1.10.

USDJPY Daily Analysis

(click to enlarge)

USDJPY (104.42): USDJPY rallied yesterday to close above 104 as noted. The daily chart is seen with prices consolidating within a descending wedge pattern with the potential to test the previous resistance at 106, last seen around June 23. In the near term, USDJPY could remain range bound between 106 and 102 levels. On the 4-hour chart, the hidden bearish divergence confirms the view for a potential correction to 102 - 101.5 support level.

GBPUSD Daily Analysis

(click to enlarge)

GBPUSD (1.330): GBPUSD closed above 1.320 resistance yesterday and any dips could be supported above this level now. Establishing a base at 1.32 could see GBPUSD extend its gains towards 1.34 which marks a retest of the resistance level between 1.34 and 1.3420. The falling wedge shows a continuation to the upside with the main target at 1.3677 - 1.380. Extending the gains here could be seen as filling the gap as well as an establishing resistance at this level which could confirm renewed downside in the medium term.

Gold Daily Analysis

(click to enlarge)

XAUUSD (1337.29): Gold prices broke below 1350 yesterday and could continue the declines albeit a brief retest back to 1350 to establish resistance. The upside remains capped for the moment until support level is established. 1300 remains a critical price level in this aspect and could keep prices supported in the near term. On the 4-hour chart, gold is seen bouncing off just a few points above the 1327.50 support level noted yesterday.

 

[Orbex_Expert]

Daily Forex Market Preview, 14/07/2016

The British pound is likely to come under pressure today as the Bank of England is expected to cut interest rates by 25bps, a close call which could go either way. GBPUSD remains supported above 1.30 for now. EURUSD has formed an inverse head and shoulders pattern on the 4-hour session and could be seen extending its gains towards 1.120 if we get to see an upside breakout.

EURUSD Daily Analysis

(click to enlarge)

EURUSD (1.110): EURUSD remains range bound with 1.110 proving to be a price level for consolidation. EURUSD is seen hovering around 1.110 for 11 consecutive days so far with prices staying flat. On the 4-hour chart, the consolidation has formed an inverse head and shoulders pattern which could be validated on a bullish breakout above 1.110. In this case, EURUSD could be seen extending gains close to 1.120. While this would invalidate the bearish flag pattern, on the daily chart, this could mark a retest of the previously broken support level. Forming resistance at 1.120 could signal a completion of the retest of resistance paving the way for a larger decline.

USDJPY Daily Analysis

(click to enlarge)

USDJPY (104.58): USDJPY retraced some of its declines yesterday, but prices closed with a small range yesterday above 104. The consolidation is likely to see USDJPY turn flat within 104 and 102 levels. In the very near term, another test to 105 cannot be ruled out; following which USDJPY could be looking weaker to the downside. Establishing support at 102 could potentially signal a confirmation of a bottom being formed in USDJPY and prepares for a longer term move to the upside.

GBPUSD Daily Analysis

(click to enlarge)

GBPUSD (1.318): GBPUSD turned bearish yesterday near 1.320 with prices currently seen testing this level. In the near term, GBPUSD could be seen sliding back to 1.30 which could act as a short term support. This potentially points to GBPUSD looking to test 1.38 price level to establish resistance. To the downside, a break down below 1.30 could signal further declines in the GBPUSD. Price action has comfortably broken out from the falling wedge pattern with 1.32 coming in as a strong barrier for prices so far.

Gold Daily Analysis

(click to enlarge)

XAUUSD (1339.56): Gold prices closed bullish yesterday following the previous two days of declines. With 1350 level being breached, the upside is likely to stay limited close to this level. Establishing resistance at 1350 could, however, signal further downside to 1300. On the 4-hour chart, price action is seen to be bearish currently following the previous doji close. In the near term 1350 - 1327.50 remains the levels that gold could remain trading within.

 

[Orbex_Expert]

Daily Forex Market Preview, 15/07/2016

The Bank of England's decision to hold monetary policy steady saw the GBP surged against the US dollar, clearing 1.32 with 1.36 now coming into focus. EURUSD's price remains broadly flat but with the 1.110 resistance being cleared; we could expect to see an eventual rally to 1.120. Gold prices are seen establishing support at 1327.50 and could see a near term bounce to the upside. Watch USDJPY for a potential pullback to 102 - 103 support.

EURUSD Daily Analysis

(click to enlarge)

EURUSD (1.112): EURUSD has been bullish for the past two days with price action seen clearing above 1.110 yesterday. Following the break of the inverse head and shoulders pattern yesterday, EURUSD remained largely flat with brief retest back to the broken neckline resistance of 1.110 to establish support. Further upside is likely to see EURUSD inch higher with 1.120 remaining in focus. A breakdown below 1.110 support could, however, invalidate the bullish bias.

USDJPY Daily Analysis

(click to enlarge)

USDJPY (105.59): USDJPY touched 106 resistance and price action is likely to see a pullback. Support at 103 is likely to hold the declines in the near term, which is also confirmed by the hidden bearish divergence. This is more evident on the 4-hour chart. Support zone near 103 - 102 is most likely to be retested following which USDJPY could be seen pushing higher following a subsequent breakout above 106. To the downside, a breakdown below 102 could potentially bring the bearish bias back into the picture.

GBPUSD Daily Analysis

(click to enlarge)

GBPUSD (1.339): GBPUSD cleared the 1.32 resistance on the daily chart with price action now seen testing 1.34. In the near term, a dip back to 1.32 could establish support following which further upside could be seen towards 1.36. Currently, price action is caught near the 4-hour resistance zone of 1.3488 - 1.342 region. Establishing support at 1.32 could pave the way for GBPUSD to potentially close the gap from the Brexit close at 1.36770.

Gold Daily Analysis

(click to enlarge)

XAUUSD (1334.26): Gold prices posted a 9-day low yesterday testing 1320.31 before pulling back modestly higher. Support at 1327.50 is seen as holding prices which could see a near-term correction in gold prices back to the 1350 handle. To the downside below 1327.50, the main support is seen at 1310.50, while to the upside 1350 remains the resistance level in question. A close above 1350 could, however, signal a sharper correction to the upside with gold likely to move back into the 1370 - 1350 range.

 

[Orbex_Expert]

Daily Forex Market Preview, 25/07/2016

A quiet economic calendar today ahead of the FOMC and BoJ meetings this week could keep prices fairly flat. The US dollar looks well supported moving into the FOMC meeting first which could keep the euro subdued. But with price consolidating within the falling wedge pattern watch for a possible breakout to the upside with EURUSD gains likely to extend to 1.110. GBPUSD is looking bearish with a 4-hour minor head and shoulders pattern that could trigger a short-term dip to 1.30.

EURUSD Daily Analysis

(click to enlarge)

EURUSD (1.097): With EURUSD closing below 1.10 on Friday, price action is now looking bearish with the potential to slide towards 1.09. On the 4-hour chart, EURUSD is seen trading within the falling wedge pattern, and a close above 1.10 could see a near term retracement to 1.105 - 1.104 minor resistance. Watch for a possible break out from the median line in which case; price could be eyeing a deeper retracement potentially to 1.110. To the downside, if resistance is established at 1.10, we could expect to see EURUSD fall towards the next main support at 1.09.

USDJPY Daily Analysis

(click to enlarge)

USDJPY (105.80): USDJPY has formed an inside bar on Friday. Price action is likely to be limited to the FOMC meeting first, trading within 107 - 106 price levels in the near term. A bearish close below 106 is required for USDJPY to post a correction. Support at 103 - 102 will be key in this aspect. To the upside, a close above 107 could see renewed bullish bets emerge, in which case, 110 remains the initial price level in sight.

GBPUSD Daily Analysis

(click to enlarge)

GBPUSD (1.312): GBPUSD closed bearish on Friday and below 1.320. Still, price action could move in either direction. A close back above 1.32 could keep the bullish bias intact while to the downside, 1.30 remains the next main support level of interest. On the 4-hour chart, price action fell to the minor head and shoulders support level at 1.311 - 1.308. A breakdown below this minor support could see GBPUSD slide towards 1.30 - 1.285 support. The bearish bias is likely to fail if GBPUSD can close above 1.32 on a daily session.

Gold Daily Analysis

(click to enlarge)

XAUUSD (1317.34): Gold prices continue to post gradual declines with the current bearish price action retracing the gains from last Thursday. Still, the bullish flat pattern on the daily chart remains key with 1350 resistance likely to be tested and could limit the rally. On the 4-hour chart, gold prices are currently posting a higher low and a bullish close above 1327.50 could validate the correction towards 1350. Also, watch for a potential bullish divergence being formed currently.

 

[Orbex_Expert]

Daily Forex Market Preview, 26/07/2016

A fairly quiet Monday saw USDJPY retreating from its recent highs ahead of the big events this week. USDJPY has retraced its gains and now trades just above the support level of 104. The markets look to another slow day today with no major events on the tap, leaving the bulk of trading on the technical aspects. The US dollar is, however, looking a bit weaker ahead of tomorrow's FOMC meeting which could signal a near-term correction in the major currency pairs.

EURUSD Daily Analysis

(click to enlarge)

EURUSD (1.098): EURUSD closed bullish yesterday with the Stochastics posting a higher low relatively and marking a bullish divergence. A close back above 1.10 level of support could confirm a near term correction towards 1.110. On the 4-hour chart, price action remains weak but moving within a descending wedge pattern, making 1.10 key for any upside to occur. A close above 1.10 could see the next minor resistance at 1.105 - 1.104 being challenged and a break above this resistance could signal further upside towards 1.110 and eventually to 1.120. Look for a possible higher low being formed at or near 1.10 for a confirmation to the upside.

USDJPY Daily Analysis

(click to enlarge)

USDJPY (104.84): USDJPY turned weaker yesterday following a brief retest to the 106 resistance level. The declines continue to extend currently and could likely find support at 104. However, the main support at 103 remains key. The upside remains limited to 107, and a break out above 107 could see further gains. Currently, we have a potentially (hidden) bullish divergence with the 4-hour Stochastics posting a lower low against price's higher low near the 105 level. This could signal a near-term bounce with USDJPY likely to to range between 106 and 105 levels.

GBPUSD Daily Analysis

(click to enlarge)

GBPUSD (1.311): GBPUSD continues to trade flat following the break below 1.32. On the 4-hour chart, the minor head and shoulders pattern shows prices finding support at 1.311 - 1.308. The bias remains to the downside for a test towards 1.30. Alternately, if the minor support holds, GBPUSD could close back above 1.32, in which case the upside breakout from the descending triangle could trigger a short term move to the upside back to 1.34.

Gold Daily Analysis

(click to enlarge)

XAUUSD (1315.64): Gold remains weaker with price action staying within last Friday's range. The daily chart shows a hidden bullish divergence near the minor support at 1315.71. On the 4-hour chart, gold has formed a modestly higher low with resistance seen at 1327.50. A break above this resistance is essential for any chance for gold to retest back to 1350. Establishing resistance at 1327.50 could, however, confirm further downside with a test of 1300 support.

 

[Orbex_Expert]

Daily Forex Market Preview, 27/07/2016

After a rather flat two days with no main fundamentals to go by, the markets will be looking to a busy day with the European session focusing on the UK's Q2 GDP number while later in the day, the NY session will see the release of the FOMC statement which overshadows the durable goods orders due for release earlier in the day. Most of the major currencies and gold remain flat at key price levels with the news likely to push prices in either direction. Still, the main take away comes from USDJPY, which technically points to a near-term correction to 104 - 103.

EURUSD Daily Analysis

(click to enlarge)

EURUSD (1.099): The EURUSD is seen hovering near 1.10, for nearly 6 days so far, but that could change heading into today's trading session. 1.10 remains a near term resistance level on the 4-hour chart and subject to a breakout above 1.10; further upside can be expected. Overall, EURUSD remains range bound within 1.110 and 1.10 ahead of the FOMC meeting today. A break above 1.11 will signal further upside towards 1.120 which will mark a completion of the bullish divergence seen on the daily chart and the Stochastics. To the downside, look for initial resistance at 1.10 to hold following a break below the previous low established at 1.0951.

USDJPY Daily Analysis

(click to enlarge)

USDJPY (105.84): USDJPY is seen testing 106 levels this morning, but we expect the declines to resume shortly as the lower support at 103.0 - 103.5 remain untested. Price action also shows the hidden bearish divergence on the daily time frame indicating that USDJPY will be looking weaker in the near term towards 103.0 - 103.5. To the upside, only a breakout above 108 could signal further upside. For the moment, price action will likely remain flat within 106 and 105 levels.

GBPUSD Daily Analysis

(click to enlarge)

GBPUSD (1.312): GBPUSD has been flat for the past two days, trading below 1.320. With the advance Q2 GDP due out today, the Sterling might get the much required push. Price remains flat bouncing off the 1.311 - 1.308 support level which marks the minor head and shoulders on the 4-hour chart. A break below this support could send GBPUSD testing 1.280 - 1.285 lows. Further declines can be expected only on a conclusive break down of prices below 1.28, failing which GBPUSD is likely to remain range bound.

Gold Daily Analysis

(click to enlarge)

XAUUSD (1319.00): Gold is seen testing 1318 - 1315 support level with the daily chart showing a hidden bullish divergence currently near this support level. The upside is, therefore, likely to unfold if gold can breakout above 1327.50 resistance level. On the 4-hour chart, price action is evolving into a descending triangle pattern with the support identified near 1315.30 - 1309.50. A break out below this support could signal a dip to 1300 which could limit the declines initially followed by a move lower towards 1250.

 

[Orbex_Expert]

Daily Forex Market Preview, 28/07/2016

The US dollar weakened yesterday after the release of the FOMC statement which saw the Fed keep its outlook intact from June. Despite a minor rally, the dollar soon gave back its gains. Expect a near term weakness in the US dollar which should see the euro and the pound gain as a result. GBPUSD has an interesting set up with an inverse head and shoulders pattern on the 4-hour chart which potentially looks towards a rally towards 1.40.

EURUSD Daily Analysis

(click to enlarge)

EURUSD (1.1072): EURUSD closed on a bullish note yesterday after the FOMC statement, clearing 1.10 support and now aiming for 1.110 resistance. Price action needs to clear above 1.1076 minor resistance level in order for further gains to be extended. The 4-hour chart shows a hidden bearish divergence currently, and a reversal near 1.1076 - 1.110 could signal a near-term correction back to 1.10 and possibly invalidate further upside.

USDJPY Daily Analysis

(click to enlarge)

USDJPY (104.89): USDJPY failed to break above 106 resistance, and as noted in yesterday's commentary, price action is likely to pull back towards 104 - 103.50 support in the near term. This is validated by the hidden bearish divergence which points to a downside correction in the near term. The declines are likely to be limited to 103 - 102 support level at the very best with the bias remaining intact for an upside rally towards 107 followed by 110.00. The bullish bias will be invalidated if USDJPY breaks down below 103 - 102 support in which case 100 remains the next key level of interest.

GBPUSD Daily Analysis

(click to enlarge)

GBPUSD (1.322): GBPUSD has managed to break out from the bullish pennant that has formed on the daily chart with price cleared above 1.32. Further upside can be expected with the initial price of 1.34 likely to be challenged. The upside breakout indicates that the 4-hour head and shoulders pattern has failed following the strong support formed near 1.3127 and 1.3085. Price has also consolidated into a longer term inverse head and shoulders pattern on the 4-hour chart with the neckline resistance at 1.35 - 1.340. A breakout above this resistance will see GBPUSD extend its gains towards 1.40 at the very least. To the downside, a close below 1.30 will invalidate this potential bullish expectation.

Gold Daily Analysis

(click to enlarge)

XAUUSD (1337.60): Gold prices broke out to the upside yesterday closing at 1339.92. The gains come following days of multiple tests at 1315 support. Resistance is now seen at 1350. On the 4-hour chart, we can see the upside breakout from the descending triangle pattern. Any pullback is limited towards 1327.50. Gold prices are likely to see a near-term top being established near 1350 with the bias remaining to the downside. This view can change only on a daily close above 1350 with bullish conviction. To the downside, if the pullback fails to stall near 1327.50, expect gold to slide back to 1315 and eventually to 1310 putting the bullish bias into question.

 

[Orbex_Expert]

Daily Forex Market Preview, 29/07/2016

The Japanese yen strengthened sharply this morning after the BoJ's policy fell short of market expectations. With USDJPY trading near the support zone, the declines are limited to 102 lows. Later this afternoon, the US advance GDP estimate is due which could keep USDJPY volatile. The euro continues to struggle to clear the 1.110 resistance level and remains caught within the familiar range of 1.110 and 1.10 price levels.

EURUSD Daily Analysis

(click to enlarge)

EURUSD (1.1091): EURUSD has managed to break out from the consolidated falling wedge pattern on the daily chart but struggles near the 1.110 resistance level. After rising to a high of 1.1119, the euro pulled back to close the day at 1.1078 yesterday. On the 4-hour chart, price remains supported above 1.1076 level with further upside likely only on a strong breakout above 1.110. To the downside, any pullback is likely to be limited to 1.10.

USDJPY Daily Analysis

(click to enlarge)

USDJPY (103.16): USDJPY has pushed lower following the failure to break out above the resistance of 106. Price action is seen currently testing the 103 - 102 support level. A breakdown below this support level could shift USDJPY into bearish territory with the next support seen at the psychological support of 100.

GBPUSD Daily Analysis

(click to enlarge)

GBPUSD (1.3184): GBPUSD was bearish yesterday with prices posting a steady decline from the 1.32 resistance. The consolidation is likely to continue into next week's all important BoE meeting. On the 4-hour chart, the bias is inclined to the upside but comes with a risk of a breakdown below 1.312 - 1.311. Further declines towards 1.28 - 1.285 can be expected if GBPUSD breaks the minor support. To the upside, price action needs to clear the overhead resistance at 1.34 - 1.32.

Gold Daily Analysis

(click to enlarge)

XAUUSD (1337.60): Gold is looking bullish today with price posting a pullback to just above the support at 1327.50. Further gains can be expected with the resistance at 1350 in focus, but this bullish view comes at a risk of a more firm test of support near 1327.50. The gains are likely limited at this point unless gold manages to break out above the 1350 resistance level.

 

[Orbex_Expert]

Daily Forex Market Preview, 01/08/2016

The US dollar fell sharply on Friday after the Q2 GDP data showed that the US economy grew only 1.20%, much less than the forecast of 2.60%. With the markets not convinced about a Fed rate hike in September, the USD crosses jumped including gold, which rose to 1350 while USDJPY fell to 102 on Friday.

EURUSD Daily Analysis

(click to enlarge)

EURUSD (1.1176): EURUSD closed above the resistance level of 1.110 with prices seen pulling back from close to 1.120. The failure to retest 1.120 with closing prices on Friday could keep EURUSD hovering near this level in the near term. Looking forward, EURUSD is likely to resume its declines. Resistance levels at 1.1240 - 1.120 will be important in this aspect, as a bearish reversal here could signal the start of a new decline in prices. For the moment, EURUSD is likely to remain to trade within the previous H4 range of 1.1197 and 1.1149 with a breakout from this range establishing the near term bias.

USDJPY Daily Analysis

(click to enlarge)

USDJPY (102.38): USDJPY weakened on Friday with the BoJ's actions falling short of expectations and a weaker US data. But with prices sliding to the 103 - 102 support zone, we expect that the declines are likely to stall. On the 4-hour chart, we notice the Stochastics forming a hidden bullish divergence with the Stochastics making a lower low against price's higher low, compared to the 101 - 100 low formed in early July. Watch for a possible consolidation at this level ahead of a move to the upside. A breakout below 102 could, however, keep USDJPY biased to the downside with 101 - 100 support coming into question.

GBPUSD Daily Analysis

(click to enlarge)

GBPUSD (1.325): GBPUSD attempted to close back above 1.32, but Friday's price action wasn't that convincing. Still, we expect the bias to the upside being retained. On the 4-hour chart, the multiple bounces of 1.312 - 1.308 could see price action extend to the upside. However, GBPUSD could remain range bound into this Thursday's BoE meeting where expectations for a rate cut run high. GBPUSD could be seen trading within 1.34 - 1.30 as a result

Gold Daily Analysis

(click to enlarge)

XAUUSD (1350.90): Gold prices rallied to 1350 on Friday as we noted over the past few weeks. While the daily candlestick has been bullish, the 4-hour close on Friday was a doji. In the near term, we expect gold prices to consolidate within 1350 - 1360 levels before prices start to decline. 1327.50 support will be challenged again, and a break down below this level could trigger further downside to 1300. To the upside, above 1350, gold prices could look to test previous highs near 1373.

 

[Orbex_Expert]

Daily Forex Market Preview, 02/08/2016

The euro continues to trade flat against the dollar with 4-hour sessions shows prices forming multiple inside bars. Japan is expected to announce plans for its proposed fiscal stimulus spending, which could cause a knee-jerk reaction in the markets. For the GBPUSD, price action remains at a critical level with the 4-hour chart showing the potential inverse head and shoulders pattern, but a break down below 1.30 likely to invalidate the bullish view.

EURUSD Daily Analysis

(click to enlarge)

EURUSD (1.1172): The price action in EURUSD was quite limited yesterday, closing bearish, but still shy of confirmation to 1.120 resistance. The daily chart shows a hidden bearish divergence on the charts with resistance levels seen at 1.120 - 1.1240. Price action remains range bound within 1.1197 - 1.1149 levels pointing to a potential break out in either direction that could lead the way for further momentum led gains or declines. To the downside, support at 1.110 - 1.1076 remains a likely scenario.

USDJPY Daily Analysis

(click to enlarge)

USDJPY (102.49): USDJPY has stalled in its declines with price seen bouncing off close to the 102 support level. A dip to 102 and a few pips lower cannot be ruled out, but the declines are limited as long as the support holds. On the 4-hour chart, with price action firmly within 103 - 102 support zone, we can anticipate further sideways price action. Only a close above 103 and a possible higher low will confirm early signals for a move to the upside. 104 resistance remains strong at the moment.

GBPUSD Daily Analysis

(click to enlarge)

GBPUSD (1.319): GBPUSD formed an inside bar yesterday, and the ranging price action could extend into a second day with the price hovering near 1.32. On the 4-hour chart, the inverse head and shoulders pattern remains in play with the neckline resistance at 1.36 - 1.3488 likely to hold the gains in the near term. The bullish view that is evolving could be at risk if GBPUSD closes below 1.30, which will invalidate the bullish bias and pave the way for further declines to 1.280.

Gold Daily Analysis

(click to enlarge)

XAUUSD (1349.97): Gold prices rallied back but closed modestly higher just a few points above 1350. A bearish close today and below yesterday's low of 1346.40 would confirm a move to the downside with support seen at 1300. To the upside, price action may hover near the current levels with a more firm test to 1355 - 1356 region to mark the completion of the measured move from the bullish flag pattern. A break below the current support established at 1350 - 1348.28 will, however, see the weakness in price send gold down to the lower support at 1341.85 - 1339.45.

 

[Orbex_Expert]

Daily Forex Market Preview, 03/08/2016

The euro picked up steam yesterday after the dollar weakened following the unimpressive fiscal stimulus package from Shinzo Abe and the lackluster inflation data in the US. With the rally to 1.120 now complete, EURUSD is likely to sit back and await this Friday's NFP data. Today's main event with the ADP payrolls which is likely to set the tone heading into this Friday's jobs report. Gold prices are also sitting near a key resistance level, and unless we see a strong bullish breakout above 1360, the bias remains to the downside.

EURUSD Daily Analysis

(click to enlarge)

EURUSD (1.1212): EURUSD finally rallied to the 1.120 resistance level, which was mentioned over the past few weeks. Price action is likely to stay limited at the current levels, within 1.1240 - 1.120 resistance zone. On the daily chart, the Stochastics points to a hidden bearish divergence, with the higher low being formed against price's lower high. We can expect the downside to resume over the next few daily sessions. Initial support is seen at 1.110 - 1.1076 followed by the next main support identified at 1.10.

USDJPY Daily Analysis

(click to enlarge)

USDJPY (101.07): USDJPY broke down below the 102 support level to test the lower support at 101. The Stochastics on the 4-hour chart continues to point to a hidden bullish divergence, but USDJPY will have to bounce off the current 101 and clear the overhead resistance at 102 to confirm any more further upside in prices. If 102 turns to resistance and keeps a lid on the gains, USDJPY could weaken to the 100 psychological price level. Either way, watch for a higher low in USDJPY on the 4-hour chart for an early confirmation of a move to the upside.

GBPUSD Daily Analysis

(click to enlarge)

GBPUSD (1.332): GBPUSD posted strong gains yesterday with price breaking above 1.32 price level. The daily chart shows the potential inverse head and shoulders, with the right shoulder confirmed near the lows of 1.3121 - 1.320. Further gains are likely to continue towards the neckline resistance near 1.34 - 1.3488. Watch for a daily close above 1.34 in order to confirm further gains to the upside. Alternately, if GBPUSD falls back below 1.32, we can expect the declines to push lower towards 1.30.

Gold Daily Analysis

(click to enlarge)

XAUUSD (1363.56): Gold prices posted strong gains yesterday retesting the 1350 resistance. Price closed above the 1360 level, but further upside can be confirmed only on a convincing close above 1360. On the 4-hour chart, we notice a strong hidden bearish divergence in gold prices which could signal a near-term weakness. Watch for a breakdown below 1355 - 1356 support level in order to confirm the correction to the downside. The next main support comes in at 1348 - 1350 level followed by 1300.