EUR/GBP In bearish consolidation

Since the beginning of the week, the EUR/GBP is seen in tight trading, having the Brexit concerns on one side and on the other side the Catalunia’s independence drama. Technically, the pair conquered the resistance at 0.8900 (former support) and broke out of the bullish channel, that has formed from late September. On the four hour time frame the price is trying to cross to above its bullish 20-day SMA. Stochastic is showing strong bullish momentum and is located very close to its extreme overbought territory, while RSI is at around 60, but has lost directional strength. The pair is currently consolidating lower, but the short term outlook still favors to the upside.

EUR/USD At 38.2% Fibo

Since yesterday the EUR/USD is trading stable above the 1.80 mark and the main reason for the surge is the Catalonia's PM Puigdemont who appealed for discussion with Spain about the independence concerns. Technically speaking on the four hour time frame, EUR/USD is keeping the upside bias. Currently the pair is flirting with the 1.1830 level, which has proved to be a very important barrier for the pair. Also this level coincides with the 38.2% Fibonacci retracement of latest September to October bearish run and in case of conquering it, the next target for the bulls would be the 50% of same Fibo at 1.1880, where the 200-day SMA is currently located. RSI is showing strong bullish momentum and is nearing the extreme overbought area. Stochastic is located at its extreme territory, but is starting to loose directional strength.  Considering all above, there is a possibility for slight rebound but meanwhile the focus today is on the FOMC meeting, which which would rather support the greenback.

An ActivTrades Seminar: The Power Of Strategy

The recent  political and economic events, such as Trump administration, the UK activating Article 50 in March and the French Presidential Elections in April, brought volatility and continue to impact the markets with their consequences. Having a strong and powerful strategy is more than necessary in order to be in line how these events might affect your trading.

You can learn how to form a strategy by attending the “The Power of Strategy” seminar, organized by the competitive online broker ActivTrades, that will take place on 7th October 2017.

The seminar will be led by two professional traders - Paul Wallace and Martin Walker, who will discuss the importance of a solid strategy and how you can implement a system into your own trading everyday.

The schedule of the seminar is composed by Martin Walker’s Introducing and Understanding Strategic Trading and Paul Wallace’s Simple Intra-Day Trading Set Ups. And before closing the event there will be an opportunity to network.

The Power of Strategy seminar will take place in Grange Tower Bridge Hotel, 45 Prescot Street, London, E1 8GP on the 7th October 2017.

For detailed information and to register for The Power of Strategy Seminar, follow this link!

EUR/USD Flirting with 1.1700 level ahead of NFP

The greenback gathered momentum in the US session after the better than expected US data and the hawkish tone from the Fed’s speakers. Adding to the big picture the ECB's meeting minutes which hit the single currency, the EUR/USD pair was seen gravitating around 1.1700 level. On the four hour time frame the price has crossed to below its bearish 20-day SMA, while the 200-day SMA has moved above the 100-day SMA (also bearish). Stochastic has turned sharply to south and is displaying strong bearish momentum. RSI is starting to recover from the extreme oversold territory and is currently located at 35. Ahead of NFP tomorrow the pair is vulnerable to extend its decline in case of strong numbers. 

GBP/USD Close to the key support at 1.1300

Political uncertainties in UK, boosted US data and ECB’s meeting minutes dragged the GBP/USD pair its lowest level for over a month. The pair surpassed the September low and is currently trading at 1.3122 and continues to fall deeper as the time of writing. According to the four hour time frame it seems that the bearish momentum is accelerating whit next target at 1.3100 level. The 200-day SMA is about to cross to above the bearish 20-day SMA. Indicators are located within negative territory with stochastic at its bottom, while RSI is currently at 17, but has lost directional strength. The price is now developing below its moving averages and in case the pair break below 1.3100, the bears would be poised to extend their march towards 1.3075.

AUD/USD Stonger ahead of Australian data tomorrow

The Aussie is seen higher today and moved up to 0.7874, the highest level for the last 5 sessions despite greenback’s comeback. The AUD/USD pair is up with 0.33% today and the short term outlook favor an advance. On the four hour time frame the price is developing above the 20-day SMA, which has started to turn north. Meanwhile the 100-day SMA crossed to below the flat 200-day SMA. Stochastic has retreated from the extreme oversold area but has lost directional strength and is currently located at 80. RSI is slightly above its mid-line and has also aiming north. 

During the upcoming Asian session Australia will release August retail sales and trade balance figures and both are expected to be above July’s numbers. If that’s the case, we may see the pair extending the rally towards 0.79 and even higher. 

USD/JPY Bounced from the oversold area

The release of the ADP report surprised the markets with better than expected figures and the USD/JPY pair bounced from the daily low at 112.30, having in mind that since last Friday the pair is caught in a tight range. 

Technically speaking in the short term the bias remains neutral to bullish. The price is now developing well above its uptrending 100-day SMA, while the 20 day SMA is staying flat around 112.75. Stochastic has bounced from the extreme oversold area and has turned sharply to north but yet remains below its mid-line. RSI is also displaying bullish momentum and is located at 53. 

To confirm the bullish outlook the pair needs to conquer the 113.00 level, where the first resistance is located. Next one is seen at 113.27 – last week’s high. Looking to the downside, below 112.20 the pair would be poised to extend its decline towards 111.90. 

However until Friday, when US NFP will be released, we have calm days and USD/JPY is more likely to extend its range.