The USDJPY currency pair recently experienced a bounce from the 0.382 Fibonacci retracement level. This bullish wave was initiated by a long wick shadow candlestick pattern in the 4-hour time frame. As a result, the pair is now surging towards its previous high of around 144.0.
In addition, the RSI indicator is currently hovering above the 50 level, indicating that there is still room for it to reach the 70 level or enter the overbought zone. This suggests that the market expects the USDJPY to continue its upward trend and test the 144.0 resistance level in the next trading session at least.
When looking at the daily time frame, the outlook for the USDJPY remains bullish. The next major resistance level is R1 at 145.71. Furthermore, machine learning indicators signal that bulls are in control of the market. A dip to the pivot point could provide an opportunity for buyers to go long on the currency pair.
EURUSD May Break the Channel as RSI Indicator Crosses Signal Line
The EURUSD currency pair has recently responded to the support level at 1.093. It is now testing the weekly pivot at 1.099, which coincides with the upper band of the declining channel in the 4-hour time frame. The RSI indicator has crossed the signal line and is hovering above the 50 line. This suggests that the rise that started yesterday may lead to a break of the channel upward.
It is important to note that horizontal support and resistance levels are generally considered more valid and reliable than trend lines or channels. With this in mind, the main resistance level for bulls is the 0.382 Fibonacci retracement level, which is around 1.105. As long as this level is not breached, the market outlook will remain bearish. The decline may continue to test the previous low around 1.093, followed by 1.086.
What is a Channel in Forex Technical Analysis?
In forex technical analysis, a channel is a trading range. It is defined by two lines: a trend line and a concurrent line. These lines are plotted through opposite peaks or troughs. There are three types of channels based on price direction: ascending, descending, and sideways (also known as ranging). Channels are commonly used in technical analysis to confirm trends and identify breakouts and reversals.
Recently, Bitcoin broke through its channel and tested the significant $30,000 psychological level. After this break, the outlook for Bitcoin has become increasingly bullish. In fact, the BTCUSD pair has returned to test the broken channel in the 4H time frame, which now acts as support. Additionally, the pivot point is located at 29,183 and with a hold above this level, there is a high chance that we will witness a rise to the 30,739 resistance level.
Furthermore, the dip that occurred a few hours ago provides buyers with an opportunity to enter their buy orders in the market at a cheaper price. Moreover, with the RSI hovering above the signal level, there is strong support for the bullish scenario. Overall, the current market conditions present an attractive opportunity for buyers to enter the market and potentially profit from a rise in Bitcoinâs value.
GBPJPY Sets for Gains as Bears Offer Little Resistance
The GBPJPY currency pair has recently closed above the key resistance level of 183.26, indicating that a rise is imminent. In fact, the pair is now poised to test the second weekly resistance at 184.28. Furthermore, there appears to be little resistance from the bears, suggesting that the uptrend is likely to continue. This is certainly an exciting development for traders and investors alike.
Fundamental Highlights for JPY
Japanâs economy grew at a slower pace in the second quarter of 2023, as rising inflation and a weak yen weighed on consumer spending. The economy expanded at an annualized rate of 0.5% in the April-June quarter, down from 2.5% in the previous quarter.
The Japanese government is considering raising the minimum wage by a record 4.3%, in an effort to boost consumer spending. The current minimum wage in Japan is around $9 USD per hour, and the government believes that a higher minimum wage would help to improve the purchasing power of low-income workers.
The Japanese yen has fallen to its lowest level against the US dollar in 20 years, as investors have lost confidence in the Japanese economy. The weak yen is making it more expensive for Japanese companies to import goods and raw materials, which is raising costs and could lead to further inflation.
EURUSD Trading Below Middle Line of Declining Channel
The EURUSD currency pair is currently experiencing a downward trend, trading below the middle line of the declining channel at approximately 1.0920. The bears have managed to close under the 1.0915 support level, and the market is now testing this level as it acts as resistance. The long wick of the candlestick and the RSI indicator, which hovers below the 50 signal line, both indicate that the bears are still in control. As a result, another drop to the 1.08833 support level is possible.
In summary, the outlook for the EURUSD currency pair remains bearish as long as it continues to trade within the downward channel.
Upon a detailed examination of the GBPUSD daily chart, itâs evident that the trend has shifted sideways following the pairâs break from the upward channel. The resistance zone is currently situated at 1.26, a critical level that the market must surpass to maintain the downward trend initiated on July 14th.
Taking a closer look at the 4-hour timeframe, we observe that GBPUSD has managed to close above the 1.2773 pivot and exit the downward channel. This development has led to an increase in bearish pressure, causing the currency pair to test the previously broken resistance, which now serves as a minor support. The primary resistance is firmly established at 1.2785. As long as this level remains intact, we can consider the downtrend to be valid. Consequently, we can anticipate the market would target the 1.26 support and potentially attempting to breach this level.
Navigating the XAUUSD Downtrend: Key Levels to Watch
The XAUUSD, or gold price, has been on a downward trend. This happened after the upward trendline was broken. The decline in gold prices slowed when it reached a significant support level at $1894.6, which is just below the 50% mark of the Fibonacci retracement tool. Please note, the RSI indicator is hovering near the oversold area.
For those who are bullish on gold, itâs crucial to prevent the price from closing below this level on the daily chart. They need to push the price above the 50% Fibonacci level to halt the steep decline. If they succeed, thereâs a possibility for the price to fluctuate between $1894 and $1945.
However, if the price closes below this key level, the next target could be the 0.618 level of the Fibonacci retracement around $1865.
Bitcoinâs Double Bottom Pattern: A Sign of Hope?
Bitcoin is back in a key area of support, which ranges from 28,484 to 28,266. This happened after the bulls failed to overcome the strong resistance at 30,000. This point is not just a pivot point, but also a level that carries a lot of psychological importance. The bears have taken over and pushed the price down from the pivot area. They are currently testing the high of May 28th, which is between 28,484 and 28,266.
Our team of analysts at Hubufx suggests being patient at this stage. They advise against rushing into a long trade. The important thing is to watch if the bears can close below the low of August 1st. If they canât, we might see a double bottom pattern forming in the support area.
When we look more closely at the 4-hour timeframe, we see a long wick candlestick. This shows that the bulls are trying to keep the price above 28,000. So far, they have stopped the bears from closing below this important level. If a double bottom pattern does form, Bitcoinâs market price could surge to test the psychological resistance at 30,000. The minor resistance at 28,794 is crucial in this situation. For the uptrend to continue and for confirmation of a double bottom pattern, itâs vital for the market to close above this resistance.
On the flip side, if the bears manage to break through the support at 28,240, we could see Bitcoinâs value continue its downward trend towards lower support levels as shown on the daily chart.
The GBPJPY currency pair is currently hovering around the 184.81 mark. This comes after a noticeable break in the rising trendline, a development that was somewhat expected. The reason for this anticipation was the RSI indicator, a tool used by traders to identify potential market reversals. The RSI had been lingering in the overbought zone for several sessions, hinting at a possible decline.
This recent drop in GBPJPY is seen as a correction, a common occurrence in financial markets. It has allowed the bears, or those betting on a price decrease, to temporarily take control of the market. This has led to a lowering of the price to the 0.236 level of Fibonacci retracement, a popular technical analysis tool used by traders. Following this, the price has reached the 183.26 support level, which serves as a robust supply zone for GBPJPY bulls, or those betting on a price increase.
As long as this level holds firm, the market direction of GBPJPY is considered bullish, indicating an upward trend. The resistance level, another key concept in technical analysis representing a price level that an asset struggles to exceed, is at the recent high of 186.46.
Despite these market fluctuations, the outlook for GBPJPY remains bullish. The 0.236 level of Fibonacci and the 183.26 supply zone provide a reasonable bid for bulls to enter long positions in the market.
Our dedicated analysis team at HubuFX suggests keeping a close eye on these two levels and looking out for candlestick patterns and price action behaviors. These are key elements of technical analysis that can provide valuable insights into future price movements. We will continue to provide more updates on the GBPJPY pair in future sessions. So stay tuned with us for more insightful technical analysis on GBPJPY and make informed trading decisions.
The GBPUSD currency pair failed to breach the 1.2785 resistance level once again and declined from the resistance, closing below the 1.273 pivot. There is a minor support for GBPUSD at 1.2704. With the RSI hovering below the 50 line, there is a high chance for the bears to break this level and continue the downtrend.
The HubuFX analysis team suggests waiting for the price action around this level before making a decision. It is wise to wait since the GBPUSD price around the 1.2704 support has been erratic, as seen in the 1-hour chart. A close below the 1.27038 support will be considered a continuation of the downtrend, and the GBPUSD price is likely to target the 1.2622 supply zone.
The resistance level remains at 1.2785. The bulls must break this level in order to rise the price to upper levels.
It is important to note that the forex and stock markets always move between support and resistance levels. Therefore, it is vital to trade the assets based on when and how these levels are breached.
The USDJPY currency pair experienced an uptrend that came to a halt after reaching a high of 146.51 on August 17. Subsequently, it returned to the previous high around the 145 area, which now acts as support for the USDJPY. The outlook for the USDJPY remains bullish, with the 145 level providing support for the bulls. As a result, it is likely that the price will continue to rise and target the 149.14 resistance level.
On the other hand, if the market closes below the 145 support level on USDJPY, the path will be cleared for a test of the 143.86 support level. This scenario could potentially lead to further downside movement in the USDJPY currency pair.
The EURUSD currency pair has recently bounced from the support zone at 1.085 and is currently testing the resistance area between 1.0915 and 1.0935. Interestingly, the EURUSD formed a bullish engulfing candlestick on its daily chart, which is usually a signal for the start of an uptrend or the end of a downtrend. However, it is important to note that based on price action trading, the 1.0915 - 1.0935 area is a significant barrier for the bulls and the market must close above this level on EURUSD before we can confirm the bullish scenario.
Despite this, the overall outlook for the EURUSD remains bearish as long as it is trading below 1.0935.
On the other hand, the EURUSD is currently hovering near a demand zone where selling pressure is likely to increase. As such, traders looking to go short on EURUSD should consider placing a stop loss above 1.0935 with a potential reward target at the previous low around 1.085.
In summary, while there are some bullish signals for the EURUSD currency pair, it remains in a bearish trend and traders should exercise caution when considering going long on this pair. As always, it is important to manage risk carefully and use appropriate stop loss levels when trading.
The NZDUSD currency pair is currently experiencing a surge as it moves toward the upper band of the declining channel in the 4 hour time frame. Interestingly, the RSI indicator has flipped above the signal line, providing a favorable forecast for bulls. This indicates that the NZDUSD has the potential to touch channel resistance and possibly even break outside the channel to test the 0.236 level of Fibonacci.
Despite the RSI signaling a rise in the value of NZDUSD, there are two bullish engulfing patterns and a hammer that are in line with this bullish scenario. However, for this scenario to be considered more valid, the NZDUSD bulls must close above the 0.5963 minor resistance. Only after this occurs will the road to 0.6019 be paved.
It is important to note that the overall outlook for the NZDUSD remains bearish and that this recent rise can be considered as a correction. The 0.236 Fibonacci retracement level plays a crucial role in determining the future outlook of the pair. As long as the pair continues to trade within the channel and under the 0.6019 resistance, the bearish outlook will remain valid.
Trading Ideas:
HubuFX analysis team suggests closely monitoring the price action and candlestick patterns to identify an optimal entry point for a short order, either around the upper band of the channel or near the 0.236 Fibonacci retracement level.
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GBPUSD Bounces from Support, But Turns Bearish Again
The GBPUSD currency pair experienced a strong bounce from the 1.2621 support level and broke through the 1.271 weekly pivot point. After testing this level, the pair once again turned bearish in todayâs trading session. The presence of a doji candle and a long wick candle pattern indicates market uncertainty at this level. With the GBPUSD now back below the pivot point, we can view last dayâs high as a resistance level and consider the market direction to be bearish, with 1.2621 as its first target. The RSI indicator supports this bearish bias by remaining below the 50 level.
In summary, the bearish scenario remains valid as long as the 1.2732 resistance level remains unbreeched.
Trade Idea:
The HubuFX Analysis team suggests entering a short trade at GBPUSD while limiting the risk at 1.2745 and setting a target at 1.263. This strategy is designed to minimize potential losses for short traders on GBPUSD while maximizing potential gains. It is important to carefully consider the risks and potential rewards before entering any trade.
The AUDUSD currency pair recently returned from the resistance zone near the 0.65 area and began trading in a declining channel, as illustrated in the daily chart. Upon closer inspection of the 4-hour time frame, a bearish engulfing pattern emerges, indicating that the bears have gained control over the bulls. At the time of writing this technical analysis, the AUDUSD is approaching the 0.643 pivot. It is highly probable that the breakout from the channel was a false alarm and that the decline will persist, starting with the recent lower lows.
The resistance for AUDUSD stands at 0.65, and bulls must overcome this threshold to pave the road to 0.66.
Trade Idea
The bearish engulfing pattern near the critical resistance area presents a favorable opportunity to enter a short trade, with a risk of being stopped at 0.65 and a potential reward around the 0.63 area.
The EURUSD downtrend has recently extended to the 0.786 Fibonacci level, reaching a low of 1.07731. Despite this, the fundamentals are not in favor of a bullish scenario. As a result, we do not recommend entering into a long trade at this time. In fact, the US economy is performing well, and there is a possibility that an even more bearish scenario could be on the horizon.
From a technical standpoint, the EURUSD has formed a hammer pattern on the 4-hour chart, clinging to both the bottom line of the declining channel and the 0.786 Fibonacci level. Although the RSI is not yet in oversold territory, there is a chance that the market may experience a pullback to correct the recent sharp declines.
As previously mentioned, the bullish scenario for the EURUSD is currently very weak. Therefore, it is recommended to closely observe the price action of the EURUSD near important resistance levels such as the 0.618 Fibonacci level and the 1.089 pivot point. These two levels could potentially provide a decent demand zone for bearish traders looking to enter short positions.
Bitcoin Technical Analysis: Bullish Signals for BTCUSD
The crypto market has experienced a growth of 1.6% in its capitalization over the last 24 hours, reaching a total of $1.066 trillion. This impressive growth was observed on Wednesday afternoon. Following the strong rally in US tech stocks, buyers are now cautiously investing in cryptocurrencies after the recent sell-off.
In addition, the decline of Bitcoin has halted near the $25,000 support and it is currently trading in a range area between 25K and 27K.
From a technical analysis standpoint, we see a hammer and a bullish engulfing candlestick pattern in the daily chart which signals that bulls might take the role in the upcoming sessions. The RSI indicator is still hovering in the oversold zone under the level 30, making it 3 bullish signals for BTCUSD.
It is important to note that these bullish signals are formed in the daily chart which augments the bullish scenario. However, there is a minor resistance around the 27K that needs to be breached by the bulls in order to confirm the bullish scenario. If this breach happens in the following sessions, the target for buyers at Bitcoin will be the 28K resistance.
On the other hand, for the decline to continue, bears on Bitcoin need to close below 25K.
GBPUSD Forex Analysis: Downtrend Likely to Continue
Stay updated with the latest Forex Analysis and Forex News in this article for the GBPUSD currency pair. You will find valuable information about both technical and fundamental analysis related to GBPUSD.
The GBPUSD currency closed under the 1.2591 support and the 0.382 level of Fibonacci retracement. Zooming to the 4 hour chart, the pair has tested the broken support which now acts as resistance. Consequently, the downtrend of GBPUSD is likely to continue, and the next target would be the 1.2468 area if the 1.264 pivot is not breached. Please note that as long as the GBPUSD trades below the pivot, the bearish scenario remains valid.
On the flip side, resistance is at the pivot at 1.2626. The bulls must close above the pivot to raise the GBPUSD price to 1.2779 again. This level of resistance is very strong and the market couldnât break through it in the last couple of weeks.
EURUSD Analysis: Can the Bears Hold Below 1.083 Pivot Level?
The EURUSD Currency pair is currently trading near the 1.083 pivot level. A bearish long wick shadow candle has formed near this level, indicating potential downward pressure on the pair. Additionally, the RSI indicator is hovering below the signal line, further supporting the bearish market outlook for EURUSD.
If the 1.083 pivot level holds, a decline to 1.073 is likely. However, on the flip side, if the bulls can close above the 1.083 pivot, a target of 1.089 can be considered.
A long wick shadow candle is a line on a candlestick chart that shows the highest and lowest prices a stock has traded at during a specific time period. It helps to show how the price of the stock has changed compared to its opening and closing prices. In simpler terms, itâs a way to see the range of prices a stock has had over a certain time.
