fxsoriginal

 

Friday’s close proved to be its most bullish of the month, after dovish comments from Fed officials gave equity markets another tailwind heading into the weekend.

On Wednesday we noted the bullish engulfing pattern which hinted at a swing low. Whilst Thursday’s trade was indeed lacklustre, early trade on Friday saw it break out of a possible bullish wedge formation which now targets the 6769.6 high. Support has been found at the 50-period eMA and the MACD is curling up and could soon cross back above its signal line.

 

  • Given the bullish trend structure, Fed tailwind and resurgence of bullish momentum, we favour a move towards the 6,436-6,800 zone.
  • If momentum is to peter out, we’ll keep an eye on the potential for a lower high to form as part of a topping pattern, which would require a break below the 6,600 area to confirm.
 

  • The relative strength watchlist includes two stocks which are ripping higher and likely in need of some consolidation (at the very least) before considering entries on the daily.
  • Newcrest (gold mining company) has seen a breakout of a symmetrical triangle, and we’d be keen to see if it can retrace towards the breakout level or build a new level of support. However, Friday’s small Rikshaw man Doji is a slight concern, and a notable gap lower on Monday could mark an island gap reversal at the highs to warn of a reversal.
  • Whilst Coca-cola Amatil has made the cut, we’ve noticed a potential bearish wedge below resistance which is also worth keeping an eye on. A break above resistance invalidates the reversal warning, whereas a return of bearish momentum could warn of a top.

CFD and forex trading are leveraged products and can result in losses that exceed your deposits. They may not be suitable for everyone. Ensure you fully understand the risks. From time to time, City Index Limited’s (“we”, “our”) website may contain links to other sites and/or resources provided by third parties. These links and/or resources are provided for your information only and we have no control over the contents of those materials, and in no way endorse their content. Any analysis, opinion, commentary or research-based material on our website is for information and educational purposes only and is not, in any circumstances, intended to be an offer, recommendation or solicitation to buy or sell. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. No representation or warranty is made, express or implied, that the materials on our website are complete or accurate. We are not under any obligation to update any such material. As such, we (and/or our associated companies) will not be responsible or liable for any loss or damage incurred by you or any third party arising out of, or in connection with, any use of the information on our website (other than with regards to any duty or liability that we are unable to limit or exclude by law or under the applicable regulatory system) and any such liability is hereby expressly disclaimed

Analysis feed

Latest Forex Analysis

Editors’ Picks

EUR/USD retreats after strong NFP, weak German data

EUR/USD is trading below   1.11 after US Non-Farm Payrolls beat expectations with 266K and mixed wage growth. Earlier, weak German data weighed on the euro. Updates on trade are awaited.

EUR/USD News

GBP/USD shrugs off strong NFP, focuses on UK elections

GBP/USD is trading below 1.3150 but off the post-NFP lows. The US gained more jobs than expected. The Conservatives remain in the lead ahead of the debate between PM Johnson and Labour leader Corbyn.

GBP/USD News

US recession? Not so fast, a calm look at the economy and currencies ahead of the NFP

Recent US economic indicators have been downbeat, but they include silver linings and are backed by robust consumption. Valeria Bednarik, Joseph Trevisani, and Yohay Elam...

Read more

Gold drops to fresh multi-day lows on upbeat NFP report

Gold faded an intraday bullish spike to the $1480 area and tumbled to fresh multi-day lows, around the $1465 region in reaction to upbeat US monthly jobs report.

Gold News

USD/JPY: bearish ahead of US employment figures

Japanese data missed the market’s expectations, triggering fresh concerns about the economy. Focus on US employment figures, market players anticipate dismal numbers. USD/JPY is technically bearish could break below the 108.00 level.

USD/JPY News

Forex Majors

Cryptocurrencies

Signatures