Analysis for August 19th, 2016
EURUSD, "Euro vs US Dollar"
After rebounding from the 6/8 level, the EUR/USD pair started a local correction. Possibly, on Friday the price may test the H4 Super Trend. If the market rebounds from it, the pair will resume growing towards the 7/8 level.
The lines at the H4 and H1 charts are completely the same, and it makes the 7/8 level even more important. Consequently, if the pair is able to stay above the 6/8 level, it will resume moving upwards. Moreover, if later the price breaks the 7/8 level, bulls will test the 8/8 one.
USDCAD, "US Dollar vs Canadian Dollar"
In case of the USD/CAD pair, Super Trends are influenced by "bearish cross". Considering that the price is moving under the 2/8 level, it is expected to continue falling towards the 0/8 one in the nearest future. If later the market rebounds from this level, it may start a new ascending correction.
As we can see at the H1 chart, the 0/8 level is confirmed by levels from longer timeframes. It's highly likely that on Friday the market may break the local low and continue moving to reach its downside targets.
Before you enter foreign exchange and stock markets, you have to remember that trading currencies and other investment products is trading in nature and always involves a considerable risk. As a result of various financial fluctuations, you may not only significantly increase your capital, but also lose it completely. Therefore, our clients have to assure RoboForex that they understand all the possible consequences of such risks, they know all the specifics, rules and regulations governing the use of investment products, including corporate events, resulting in the change of underlying assets. Client understands that there are special risks and features that affect prices, exchange rates and investment products.
Recommended Content
Editors’ Picks
EUR/USD holds below 1.0750 ahead of key US data
EUR/USD trades in a tight range below 1.0750 in the European session on Friday. The US Dollar struggles to gather strength ahead of key PCE Price Index data, the Fed's preferred gauge of inflation, and helps the pair hold its ground.
USD/JPY stays firm above 156.00 after BoJ Governor Ueda's comments
USD/JPY stays firm above 156.00 after surging above this level on the Bank of Japan's decision to leave the policy settings unchanged. BoJ Governor said weak Yen was not impacting prices but added that they will watch FX developments closely.
Gold price oscillates in a range as the focus remains glued to the US PCE Price Index
Gold price struggles to attract any meaningful buyers amid the emergence of fresh USD buying. Bets that the Fed will keep rates higher for longer amid sticky inflation help revive the USD demand.
Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.
US core PCE inflation set to signal firm price pressures as markets delay Federal Reserve rate cut bets
The core PCE Price Index, which excludes volatile food and energy prices, is seen as the more influential measure of inflation in terms of Fed positioning. The index is forecast to rise 0.3% on a monthly basis in March, matching February’s increase.