Market Forecast 25/10/2017

EUR/GBP is eyeing further gains above 0.8975 and USD/CHF remains in a major uptrend above the 0.9875 support level.

EUR/GBP Forecast – Euro Eyeing Further Gains

Key Points

  • The Euro after forming a base around the 0.8880 level against the British Pound started an upside move.
  • There was a break above a short-term bearish trend line with resistance at 0.8890 on the hourly chart of the EUR/GBP pair.
  • Today in the Euro Zone, the German business sentiment index for Oct 2017 was released by the CESifo Group.
  • The forecast was 115.2, but there was an increase from the last revised reading of 115.3 to 116.7.

EURGBPH1.png

The Euro after finding bids near the 0.8880 support against the British Pound started an upside move. The EUR/GBP pair made good ground and was able to break the 0.8920 resistance.

The pair also managed to move above the 50% Fib retracement level of the last decline from the 0.9021 high to 0.8885 low. Moreover, the pair succeeded in clearing a short-term bearish trend line with resistance at 0.8890 on the hourly chart.

At the moment, the pair is trading near another trend line at 0.8965. The trend line resistance is also close to the 61.8% Fib retracement level of the last decline from the 0.9021 high to 0.8885 low.

Therefore, there can be a downside reaction from 0.8970 back towards the 0.8930-20 support area. However, the overall trend is bullish for EUR/GBP as long as the pair is above 0.8920.

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German Business Climate Index

Today in the Euro Zone, the German business sentiment index for Oct 2017 was released by the CESifo Group. The forecast was slated for no change in the index from the last reading of 115.2.

However, the actual result was above the forecast, as there was an increase in the index to 116.7. The last reading was also revised up from 115.2 to 115.3. The German IFO Current Assessment also posted an increase from the last revised reading of 123.7 to 124.8, whereas the market was looking for 123.5.

The overall result was positive, which could push the EUR/GBP pair higher towards the 0.9000 handle in the near term.

 

USD/CHF Forecast – US Dollar Remains in Uptrend

Key Points

  • The US Dollar remains in a solid uptrend and looking for more gains above the 0.9915 level against the Swiss Franc.
  • There is a major ascending channel forming with support at 0.9880 on the hourly chart of the USD/CHF pair.

USDCHFH1.png

The US Dollar gained a lot of momentum recently from the 0.9740 swing low against the Swiss Franc. The USD/CHF pair traded higher and broke the 0.9850 and 0.9900 resistance levels.

The upside move was strong, and the pair is currently following a major ascending channel with support at 0.9880 on the hourly chart. At present, the pair is trading near the channel resistance at 0.9920 and looking for more gains.

Once there is a break above 0.9920, the next stop could be 0.9950. On the downside, the 0.9900 and 0.9880 levels are decent supports and can be considered as buy levels.

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The information above cannot be a taken as an investment advice and FXPMarkets will not be held liable for any losses that may occur by using the provided above information.

For more information on risks, please read our General Risk Disclosure.

Market Forecast 10/24/2017

EUR/USD is about to gain traction in the short term, GBP/USD is struggling to clear an important resistance and USD/JPY remains in a solid uptrend.

EUR/USD Forecast – Euro To Gain Strength Soon

Key Points

  • The Euro after finding support near 1.1730 against the US Dollar started an upside move.
  • There was a break above a bearish trend line with resistance at 1.1745 on the hourly chart of the EUR/USD pair.
  • Today in the Euro Zone, the Manufacturing Purchasing Managers Index (PMI) for Oct 2017 (Prelim) was released by the Markit Economics.
  • The forecast was slated for 57.8, but there was a rise to 58.6 from 58.1.

EURUSDH1.png

The Euro declined recently and moved towards the 1.1720-30 support area against the US Dollar. The EUR/USD pair traded as low as 1.1723 and later started an upside correction.

During the upside, the pair was able to break a bearish trend line with resistance at 1.1745 on the hourly chart. It has opened the doors for more gains and the pair might continue to move higher towards 1.1780-90 in the near term.

 

Euro Zone Manufacturing PMI

Today in the Euro Zone, the Manufacturing Purchasing Managers Index (PMI) for Oct 2017 (Prelim) was released by the Markit Economics. The forecast was slated for a decline from the last reading of 58.1 to 57.8.

The actual result was above the forecast as the Euro Zone Manufacturing PMI is expected to increase to 58.6 in Oct 2017. On the other hand, the Euro Zone Services PMI is forecasted to decline from 55.8 to 54.9 in Oct 2017.

The overall result was positive and might help EUR/USD to gain strength above 1.1770 in the near term.

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GBP/USD Forecast – Cable Struggles to Break 1.3225

Key Points

  • The British Pound is trading in the bullish zone, but struggling to break 1.3225 against the US Dollar.
  • The GBP/USD pair is currently trading near a bullish trend line with support at 1.3190 on the hourly chart.

GBPUSDH1.png

The British Pound traded higher from the 1.3085 swing low against the US Dollar. The GBPUSD pair traded above the 1.3200 level, but struggled to break the 1.3225-1.3230 resistance.

There were 2-3 attempts to break the 1.3225 resistance, but buyers failed to gain traction. At the moment, the pair is correcting lower and trading near a bullish trend line with support at 1.3190 on the hourly chart.

If sellers manage a break below the trend line support at 1.3190 and the 100 hourly SMA, there could be a downside move towards the 1.3150 level in the short term.

 

USD/JPY Forecast – US Dollar Remains in Uptrend

Key Points

  • The US Dollar is in a solid uptrend above the 113.20 level against the Japanese Yen.
  • There is a monster bullish trend line forming with support at 113.18 on the hourly chart of USD/JPY.

USDJPYH1.png

The US Dollar is following a nice bullish path and recently traded as high as 114.07 against the Japanese Yen. Later, the USD/JPY pair started a downside correction and moved towards the 38.2% Fib retracement level of the last wave from the 112.28 low to 114.07 high.

On the downside, there is a monster bullish trend line forming with support at 113.18 on the hourly chart, which is aligned with the 50% Fib retracement level of the last wave from the 112.28 low to 114.07 high.

Overall, the pair remains buy on dips near the 113.25-18 levels as long as there is no close below 113.00.

 

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The information above cannot be a taken as an investment advice and FXPMarkets will not be held liable for any losses that may occur by using the provided above information.

For more information on risks, please read our General Risk Disclosure.

Market Forecast 23/10/2017

The British Pound is in an uptrend above 149.80 vs the Japanese Yen. AUDUSD remains sell on rallies near 0.7830-40.

GBP/JPY Forecast – British Pound Downsides Limited

Key Points

  • The British Pound climbed higher recently and moved above 149.00 against the Japanese Yen.
  • There was a break above a major resistance trend line at 149.75 on the hourly chart of GBP/JPY.
  • Today in Japan, the Leading Economic Index for August 2017 was released by the Cabinet Office.
  • The outcome was above the forecast of 106.00, as there was a rise from the last revised reading of 105.2 to 107.2.

GBPJPYH1.png

The British Pound after consolidating above the 147.80 level against the Japanese Yen started an upside move. The GBP/JPY pair made a nice upside move and traded above the 149.00 resistance and the 100 hourly simple moving average.

There was also a close above a major resistance trend line at 149.75 on the hourly chart of GBP/JPY. It opened the doors for more gains above 150.00. The pair traded as high as 150.47 before it started correcting lower.

The pair is currently trading lower and approaching the 23.6% Fib retracement level of the last wave from the 147.88 low to 150.47 high at 149.86. The mentioned 149.86 is also near the broken resistance trend line.

Therefore, any dips from the current levels will most likely find support near 149.80.

 

Japan’s Leading Economic Index

Today in Japan, the Leading Economic Index for August 2017 was released by the Cabinet Office. The forecast was slated for a minor rise from the last reading to 106.00.

The actual result was above the forecast of 106.00, as there was a rise from the last revised reading of 105.2 to 107.2. Moreover, the Coincident Index was forecasted to increase to 117.00. Again, the outcome was positive, as there was a rise from the last revised reading of 115.7 to 117.7.

The GBP/JPY pair might correct a few pips, but remains supported on the downside near 149.80-60.
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AUDUSD – Aussie Dollar Remains Sell on Rallies

Key Points

  • The Aussie Dollar failed to break the 0.7880 resistance against the US Dollar and moved down.
  • There was a break below a bullish trend line with support at 0.7830 on the hourly chart of the AUD/USD pair.

AUDUSDH1.png

The Aussie Dollar moved higher this past week, but was not able to gain strength above the 0.7880-0.7900 levels against the US Dollar. As a result, the AUD/USD pair started a downside move and traded below the 0.7840 support plus the 100 hourly simple moving average.

During the downside, the pair even broke a bullish trend line with support at 0.7830 on the hourly chart. It traded as low as 0.7801 and is currently correcting higher.

It has moved above the 23.6% Fib retracement level of the last drop from the 0.7882 high to 0.7801 low. However, the broken trend line at 0.7830 may now prevent gains. The 38.2% Fib retracement level of the last drop from the 0.7882 high to 0.7801 low is also near 0.7833 to act as a resistance for more upsides in AUD/USD.

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The information above cannot be a taken as an investment advice and FXPMarkets will not be held liable for any losses that may occur by using the provided above information.

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On the Global Front

This week, new records were recorded on Wall Street. This time it was the Dow Jones Industrial Average which broke the 23,000 points mark. Oil continued the upward trend that began in recent weeks, mainly due to two reasons: The first is the appeal made last week to the oil shale producers to adjust its prices with OPEC countries. The trend has also continued upwards due to the sharp decline in Crude Oil inventories. Are that relatively When looking at inflation, Oil prices must be taken under consideration. The expectations for the next upcoming months are for indices to climb higher and therefore, bringing annual inflation closer to the target of price stability.

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Earning Season is in full swing! Yesterday it was IBM (160.9, + 0.86%) Which beat early forecasts and the stock soared by about 9%, the steepest intraday rally in recent years. It should be noted that this is a significant figure, due to the fact that IBM is one of the oldest and most heavily traded companies on Wall Street.

eBay ($37.29, -1.79%)

 

Published its financial statements, in the framework of which it lowered its profit forecasts. Snap ($15.25, -3.17%) One of Wall Street’s most disappointing companies since its IPO, will also report today. Apple ($155.98, -2.37%) Fell on the back of market concerns about low demand for newly launched iPhone 8 and iPhone 8 devices. The technology giant from Cupertino will launch its new flagship device, the iPhone X, on November 3, in a move that may trigger positive sentiment in the recent stock.

 

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Swiss pharmaceutical giant Roche ($239.10, + 0.21%)

Reported a significant increase in revenues in the first nine months of the year, and approved the forecasts for the entire year. German software giant SAP ($96.33, + 0.76%) Has raised its forecasts for all of 2017, while its third-quarter revenue rose to € 5.59 billion.

 

On the Global Front

  • Numbers for the weekly unemployment claims in the U.S. stood at 222,000 last week, better than the expected 240,000 new claims.
  • In China, the second largest economy in the world, have 2 important pieces of data.
    In the third quarter of the year, China’s GDP grew at an annualized rate of 6.8%, in line with expectations, and slightly below 6.9% during the second quarter.

Industrial output in September increased by 6.6% compared to September 2016, above expectations of an increase of 6.2%. Retail sales in the past month also exceeded expectations – an increase of 10.3%.

  • In Japan, trade figures were released below earlier forecasts. Exports from the country rose by 14.1% in September from a year ago, below expectations of a rise of 14.9%. Imports to Japan rose 12%, well below forecasts of a 15% increase.

 

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The information above cannot be a taken as an investment advice and FXPMarkets will not be held liable for any losses that may occur by using the provided above information.

For more information on risks, please read our General Risk Disclosure.

Market Forecast 10/19/2017

Gold prices declined recently and remain at a risk of more losses, while EUR/JPY might continue to move higher.

 

Gold Price Under Selling Pressure

Key Points:

  • Gold price declined heavily this week and traded below $1284 against the US Dollar.
  • There is a major bearish trend line forming with resistance at $1280 on the hourly chart.
  • Today in China, the Gross Domestic Product (GDP) for Q3 2017 was released by the National Bureau of Statistics of China.
  • The forecast was +1.7% (QoQ) and the actual result was in line with the forecast.

XAUUSDH1.png

Gold prices were under a lot of pressure this week and made a downside move from the $1300 swing high against the US Dollar. The price declined sharply and moved below the $1290 and $1280 support levels.

The pair traded towards $1275 and settled below the 100 hourly simple moving average. A low was formed at $1276.46 and later the price started correcting higher.

On the upside, an initial resistance is around the 23.6% Fib retracement level of the last decline from the $1288.81 high to $1276.46 low. Moreover, there is a major bearish trend line forming with resistance at $1280 on the hourly chart.

A break above the trend line resistance followed by the 50% Fib retracement level of the last decline from the $1288.81 high to $1276.46 low is required for buyers to gain control.

On the downside, a break of the recent low at $1276 would open the doors for a move towards $1270.

Chinese GDP

Today in China, the Gross Domestic Product (GDP) for Q3 2017 was released by the National Bureau of Statistics of China. The forecast was slated for a rise of 1.7% in the GDP in Q3 2017 compared with the previous quarter.

The actual result was in line with the forecast of +1.7%. Looking at the yearly change, the market was looking for an increase of 6.8% in Q3 2017, and again the result was as expected. The Industrial output for Sep 2017 was also released today by the National Bureau of Statistics of China.

The forecast was slated for a rise of 6.2%, but the actual was better as there was a rise of 6.8% compared with the same month a year ago.

 

EUR/JPY Forecast – Euro To Break 133.50 Vs Yen

Key Points:

  • The Euro traded higher recently and settled above the 133.00 resistance against the Japanese Yen.
  • There are two bullish trend lines forming with support at 132.65 and 132.30 on the hourly chart of the EUR/JPY pair.

 

EURJPYH1.png

The Euro started a new upside move and traded above the 132.60 and 133.00 resistance levels against the Japanese Yen. The EURJPY pair is now approaching the last swing high at 133.42 and looks set for more gains.

The pair is likely to clear all sell offers near 133.40-50. A close above 133.50 would open the doors for a move towards the next resistance at 134.00 in the near term.

Buying dips in the short term towards 133.00 can be considered with a tight stop.
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Risk Disclosure: By trading a leveraged product your capital is at risk.

The information above cannot be a taken as an investment advice and FXPMarkets will not be held liable for any losses that may occur by using the provided above information.

For more information on risks, please read our General Risk Disclosure.

Market Forecast 18/10/2017

FTSE 100 is slightly correcting lower, but remains supported. SPX 500 would continue to move higher in the near term.

FTSE 100 Index Forecast – Corrections Are Limited

Key Points

  • The FTSE 100 index after forming a short-term top at 7,564 started a downside move.
  • There is a short-term descending channel forming with support at 7,500 on the 4-hours chart of FTSE 100 Index.
  • Today in the UK, the Claimant Change for Sep 2017 was released by the National Statistics.
  • The forecast was slated for 1.0K, but the actual was lower, as the change was 1.7K.

FTSE100H4

The FTSE 100 index made good ground recently and moved above the 7,500 level. The index formed a short-term top near 7,564 and later started a downside correction.

At present, there is a short-term descending channel forming with support at 7,500 on the 4-hours chart of FTSE 100 Index. On the downside, the channel support remains a crucial barrier near 7,500.

Below 7,500, the next support is around the 23.6% Fib retracement level of the last wave from the 7,195 low to 7,564 high. It seems like there is a chance of a downside extension towards the 7,500 and 7,450 levels before the index resumes its uptrend.

On the upside, the channel resistance is at 7,550. A break above the channel resistance and the last swing high at 7,564 would open the doors for a move towards the 7,600 level in the near term.

 

UK’s Claimant Count Change

Today in the UK, the Claimant Change for Sep 2017 was released by the National Statistics. The forecast was slated for a change of 1K compared with the previous reading of 2.8K.

However, the actual result was lower than the forecast as the change was 1.7K. The unemployment rate remained at 4.3%, similar to the forecast of 4.3%.

Looking at the Average earing including bonus, there was a rise of 4.2%, which was more than the forecast of 2.1% and above the last +2.1%. The overall result was positive, but failed to help GBP.

 

SPX 500 Index Forecast – Uptrend Intact

Key Points

  • The SPX 500 Index is trading higher and remains in a major uptrend above 2,550.
  • There is a monster contracting triangle forming with support at 2,558 on the 4-hours chart of the SPX 500 Index.

SPX500H4 (3)

In the last few analysis, we saw a monster contracting triangle forming with current support at 2,558 on the 4-hours chart of the SPX 500 Index. The index followed the triangle and remains in a major uptrend above the 2,550 level.

The index is on the move and might continue to trade higher above 2,560. On the downside, the triangle support is near the 23.6% Fib retracement level of the last wave from the 2,542 low to 2,562 high.

The most important support is close to 2,500 and the 50% Fib retracement level of the last wave from the 2,542 low to 2,562 high.

The overall trend is positive and there are chances of an upside break above 2,562 in the near term.

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Risk Disclosure: By trading a leveraged product your capital is at risk.

The information above cannot be a taken as an investment advice and FXPMarkets will not be held liable for any losses that may occur by using the provided above information.

For more information on risks, please read our General Risk Disclosure.

Market Forecast 10/17/2017

EUR/USD might soon start an upside recovery, GBP/USD is gaining upside momentum and USD/JPY is back in the bullish zone above 112.00.

EUR/USD Forecast – Euro To Recover Soon

Key Points

  • The Euro declined recently and moved below 1.1780 against the US Dollar.
  • There is a major declining triangle forming with current resistance at 1.1780 on the hourly chart of the EUR/USD pair.

EURUSDH1.png

The Euro declined recently and moved below the 1.1800 and 1.1780 support levels against the US Dollar. The EUR/USD pair traded as low as 1.1754 and is currently attempting an upside correction.

On the upside, the pair needs to clear a major declining triangle with current resistance at 1.1780 on the hourly chart. If the pair fails to move above 1.1780-1.1800, there are chances of further declines toward 1.1740 in the near term.

 

GBP/USD Forecast – Cable Gaining Upside Momentum

Key Points

  • The British Pound is back in the bullish zone above 1.3240 against the US Dollar.
  • The GBP/USD pair is currently attempting an upside break above a descending channel with resistance at 1.3280 on the hourly chart.
  • Today in the UK, the Consumer Price Index for Sep 2017 was released by the National Statistics.
  • The forecast was slated for a 0.3% rise (MoM), and the actual was in line with the forecast.

GBPUSDH1.png

The British Pound started a nice uptrend from the 1.3120 swing low against the US Dollar. The GBPUSD pair traded above the 1.3320 level and later started a short-term correction.

It tested the 50% Fib retracement level of the last wave from the 1.3120 low to 1.3335 high and found bids. The pair is now moving back higher and currently attempting an upside break above a descending channel with resistance at 1.3280 on the hourly chart.

It seems like the pair might succeed in breaking 1.3280 and 1.3300 for a retest of 1.3335. Buying with a break above 1.3280 can be considered with a stop below 1.3250.

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UK’s CPI

Today in the UK, the Consumer Price Index for Sep 2017 was released by the National Statistics. The forecast was slated for a rise of 0.3% in the CPI compared with the previous month.

The actual result was in line with the forecast as the CPI increased 0.3%. In terms of the yearly change, the market was looking for an increase of 3%, and the actual was similar. However, Sep’s reading was more than the last +2.9%. The report added that “the main contributors to the increase in the rate were rising prices for food and recreational goods, along with transport costs, which fell by less than they did a year ago”.

The overall result was positive and could help GBP/USD is gaining strength above 1.3280 in the near term.

 

USD/JPY Forecast – US Dollar Back above 112.00 Vs Yen

Key Points

  • The US Dollar found support at 111.64 against the Japanese Yen and started an upside move.
  • The USD/JPY pair broke a bearish trend line at 112.00 on the hourly chart.

USDJPYH1.png

The US Dollar after consolidating above the 111.60 support against the Japanese Yen started an upside move. The USD/JPY pair succeeded in gaining strength above 111.80 and a bearish trend line at 112.00 on the hourly chart.

The pair is now struggling to break the 50% Fib retracement level of the last decline from the 112.81 high to 111.64 low. Once buyers succeed in pushing the pair above the 112.30 level, there can be a solid upside move towards the last swing high at 112.80.

Overall, the pair remains buy near 112.00 as long as there is no close below 111.65.

 

Risk Disclosure: By trading a leveraged product your capital is at risk.

The information above cannot be a taken as an investment advice and FXPMarkets will not be held liable for any losses that may occur by using the provided above information.

For more information on risks, please read our General Risk Disclosure.

Market Forecast 16/10/2017

EUR/GBP remains in a bearish trend below 0.8940 and USD/CHF is attempting an upside break above the 0.9770 resistance.

EUR/GBP Forecast – Euro Remains in Downtrend

Key Points

  • The Euro started a new downtrend from the 0.9030 swing high against the British Pound.
  • There is a declining channel forming with resistance at 0.8880 on the hourly chart of the EUR/GBP pair.
  • Today in the Euro Zone, the German wholesale price Index for Sep 2017 was released by the Statistisches Bundesamt Deutschland.
  • The forecast was +0.4%, but there was an increase of 0.6% (MoM) in the WPI.

EURGBPH1.png

The Euro after a steady uptrend found sellers above the 0.9020 level against the British Pound. The EUR/GBP pair started a downside move and traded below the 0.8950 and 0.8900 support levels.

The pair even traded below the 0.8880 support level and settled below the 100 hourly simple moving average. A low was formed recently at 0.8855 and the pair is currently correcting higher.

An initial resistance is around the 23.6% Fib retracement level of the last decline from the 0.8929 high to 0.8855 low. Moreover, there is a declining channel forming with resistance at 0.8880 on the hourly chart.

Any major correction from the current levels towards 0.8880 or the 50% Fib retracement level of the last decline from the 0.8929 high to 0.8855 low will most likely face sellers in the near term.

 

German Wholesale Price Index

Today in the Euro Zone, the German wholesale price Index for Sep 2017 was released by the Statistisches Bundesamt Deutschland. The forecast was slated for a rise of 0.4% in the WPI compared with the previous month.

However, the actual result was above the forecast, as there was an increase of 0.6% in the WPI in Sep 2017. In terms of the yearly change, the market was looking for the WPI to increase by 3.2%. The actual was better, as there was a rise of 3.4%.

The overall result was positive, which could help the EUR/GBP pair in correcting towards the 0.8880 resistance area.

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USD/CHF Forecast – US Dollar Attempting Upside Break

Key Points

  • The US Dollar was under a lot of pressure recently and traded below 0.9720 against the Swiss Franc.
  • There is a bearish trend with resistance at 0.9765 on the hourly chart of the USD/CHF pair, which is preventing a recovery.

 

USDCHFH1.png

The US Dollar remained in a downtrend and traded towards the 0.9700 handle against the Swiss Franc. The USD/CHF pair traded as low as 0.9704 and later started an upside move.

It managed to move above the 0.9720 resistance and the 100 hourly simple moving average. However, a bearish trend with resistance at 0.9765 on the hourly chart is preventing further gains.

On the downside, the 38.2% Fib retracement level of the last wave from the 0.9704 low to 0.9768 high at 0.9743 and the 100 hourly simple moving average are important supports.

As long as the pair is above the 100 hourly SMA, it might break 0.9770 for more gains in the near term.

 

Risk Disclosure: By trading a leveraged product your capital is at risk.

The information above cannot be a taken as an investment advice and FXPMarkets will not be held liable for any losses that may occur by using the provided above information.

For more information on risks, please read our General Risk Disclosure.

Market Forecast 13/10/2017

The NZD/USD pair is back in the bullish zone above 0.7120 and Crude Oil price is set to break the $51.90-52.00 resistance.

NZD/USD Forecast – Back in Bullish Zone

Key Points

  • The New Zealand Dollar after forming a bottom near 0.7050 started an upside move against the US Dollar.
  • There was a break above a bearish trend line with resistance at 0.7080 on the hourly chart of the NZD/USD pair.
  • Recently in New Zealand, the Business NZ PMI for Sep 2017 was released by the Business NZ.
  • The outcome was above the forecast of 57.0, as there was only a minor decline in the PMI to 57.5.

NZDUSDH1.png

The New Zealand Dollar was under a lot of pressure, but the 0.7050-0.7055 support managed to hold losses against the US Dollar. As a result, the NZDUSD pair formed a bottom above 0.7050 and started an upside move.

It moved above the 23.6% Fib retracement level of the last decline from the 0.7204 high to 0.7056 low. The most important move was a break above a bearish trend line with resistance at 0.7080 on the hourly chart.

The 100 hourly simple moving average was also cleared along with the 50% Fib retracement level of the last decline from the 0.7204 high to 0.7056 low.

It has opened the doors for more gains and the pair now looks set for an upside break above the 0.7180 level followed by 0.7200. On the downside, there is a bullish trend line with support at 0.7140, which is a decent buy zone.

 

New Zealand Business PMI

Today in New Zealand, the Business NZ PMI for Sep 2017 was released by the Business NZ. The forecast was slated for a decline from the last reading of 57.9 to 57.0.

However, the actual result was above the forecast of 57.0, as there was only a minor decline in the PMI to 57.5. This means the Business PMI in New Zealand continues to display very healthy levels of expansion.

Commenting on the data, the BusinessNZ’s executive director for manufacturing, Catherine Beard, stated, “It was encouraging to see the proportion of positive comments increase further to 69.5%, compared with 65% in August”.

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Crude Oil Price To Break $52.00?

Key Points

  • Crude oil price after a tiny correction found support at $50.40 against the US Dollar.
  • There was a break above a connecting bearish trend line with resistance at $51.20 on the hourly chart.

USOILH1.png

Crude oil price is back in the bullish zone after forming a base around the $50.40 level against the US Dollar. The price is once again gaining pace and recently cleared the 51.00 resistance and a connecting bearish trend line with resistance at $51.20 on the hourly chart.

It even managed to surpass the recent high of $51.62, which means the price might now test the 1.236 extension of the last decline from the $51.62 high to $50.41 low.

If buyers remain in action, there is even a chance of a break above the $52.00 handle in the near term.

 

Risk Disclosure: By trading a leveraged product your capital is at risk.

The information above cannot be a taken as an investment advice and FXPMarkets will not be held liable for any losses that may occur by using the provided above information.

For more information on risks, please read our General Risk Disclosure.

Market Forecast 12/10/2017

The DAX 30 index remains elevated above the 12,900 support and the SPX 500 Index remains buy on dips near the 2,545 level.

DAX 30 Index Forecast – Break above 13,000 Possible?

Key Points:

  • The DAX 30 index managed to move above the 12,900 resistance level, which is a positive sign.
  • There is a short-term bullish trend line forming with support near 12,950 on the 4-hours chart of DAX 30 Index.
  • Today in the Euro Zone, the French Consumer Price Index for Sep 2017 was released by INSEE.
  • The forecast was slated for -0.1%, but the actual was lower as there was a decline of 0.2% (MoM).

DAX30H4

The DAX 30 remained in the bullish zone and moved above the 12,800 resistance area. The upside move was strong enough to place the index above the 12,900 level as well.

A high was formed recently at 12,996. The index was just shy of the 13,000 handle and is currently consolidating gains above the 12,950 level.

On the downside, an initial support is near a short-term bullish trend line forming with support near 12,950 on the 4-hours chart. Below the trend line, the 23.6% Fib retracement level of the last wave from the 12,556 low to 12,996 high is at 12,892.

It seems like the index might continue to trade in a range above 12,900 before making an upside attempt above 13,000.

 

French Consumer Price Index

Today in the Euro Zone, the French Consumer Price Index for Sep 2017 was released by INSEE. The forecast was slated for a decline of 0.1% in the CPI in Sep 2017 compared with the previous month.

However, the actual result was lower than the forecast, as there was a decline of 0.2% in the CPI in Sep 2017. In terms of the yearly change, there was a rise of 1.1% in the CPI, just as the market expected and similar to the last.

Looking at the Inflation ex-tobacco index, there was a decline of 0.2% (MoM), more than the last -0.7%.

 

SPX 500 Index Forecast – Buy Dips?

Key Points:

  • The SPX 500 Index is trading with a positive bias above the 2,540 level.
  • There is a contracting triangle forming with current support at 2,545 on the 4-hours chart of the SPX 500 Index.

SPX500H4 (2)

There was no stopping buyers as the SPX 500 Index broke the 2,500 handle and settled above the stated level. There was even a break of the 2,550 level and a new monthly high was formed at 2,556.

At the moment, the pair is trading in a range and forming a contracting triangle with current support at 2,545 on the 4-hours chart.

The triangle support is near the 23.6% Fib retracement level of the last wave from the 2,533 low to 2,556 high. As long as the index is above the channel support at 2,545, there are chances of more gains in the near term.

On the upside, the next target could be 2,580 and if buyers remain in control, the 2,600 level might be tested.

 

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