Ichimoku cloud analysis: EUR/USD, XAU/USD, NZD/USD

RoboForex Team RoboForex

EUR/USD, “Euro vs US Dollar”

EUR/USD is rising towards the upper boundary of a Wolfe Wave descending pattern. The pair is going inside the Ichimoku Cloud, which suggests a sideways movement. A test of the Cloud’s upper boundary at 1.0715 is expected, followed by a decline to 1.0580. A rebound from the upper boundary of the descending channel will signal the price decline. The scenario can be cancelled by a breakout of the upper boundary of the Cloud, with the price securing above 1.0765, indicating a further rise to 1.0955. Meanwhile, the decline could be confirmed by a breakout of the lower boundary of the ascending channel, with the price gaining a foothold below 1.0660.

XAU/USD, "Gold vs US Dollar"

Gold has established itself above the Tenkan-Sen line. The instrument is going below the Ichimoku Cloud, which suggests a downtrend. A test of the upper boundary of the Cloud at 2345 is expected, followed by a decline to 2265. An additional signal confirming the decline will be a rebound from the upper boundary of the bearish channel. The scenario can be cancelled by a breakout of the upper boundary of the Cloud, with the price securing above 2355, which will signal a further rise to 2405. Meanwhile, the decline could be confirmed by a breakout of the lower boundary of the bullish channel, with the price finding a foothold below 2315.

NZD/USD, “New Zealand Dollar vs US Dollar”

NZD/USD is correcting within a Wedge reversal pattern. The pair is going inside the Ichimoku Cloud, which suggests a sideways movement. A test of the Cloud’s upper boundary at 0.5960 is expected, followed by a decline to 0.5825. An additional signal confirming the decline could be a rebound from the upper boundary of the Wedge pattern. The scenario can be cancelled by a breakout of the upper boundary of the Cloud, with the price securing above 0.5990, indicating a further rise to 0.6090. Meanwhile, the decline could be confirmed by a breakout of the lower boundary of the Wedge reversal pattern, with the price gaining a foothold below 0.5905.

Author

RoboForex Team

RoboForex

RoboForex Team is a group of professional financial experts with high experience on financial market, whose main purpose is to provide traders with quality and up-to-date market information.

EUR/USD: US Dollar to remain pressured until uncertainty fog dissipates

Unimpressive European Central Bank left monetary policy unchanged for the fifth consecutive meeting. The United States first-tier employment and inflation data is scheduled for the second week of February. EUR/USD battles to remain afloat above 1.1800, sellers moving to the sidelines.

GBP/USD reclaims 1.3600 and above

GBP/USD reverses two straight days of losses, surpassing the key 1.3600 yardstick on Friday. Cable’s rebound comes as the Greenback slips away from two-week highs in response to some profit-taking mood and speculation of Fed rate cuts. In addition, hawkish comments from the BoE’s Pill are also collaborating with the quid’s improvement.

Gold: Volatility persists in commodity space

After losing more than 8% to end the previous week, Gold remained under heavy selling pressure on Monday and dropped toward $4,400. Although XAU/USD staged a decisive rebound afterward, it failed to stabilize above $5,000. The US economic calendar will feature Nonfarm Payrolls and Consumer Price Index data for January, which could influence the market pricing of the Federal Reserve’s policy outlook and impact Gold’s performance.

Week ahead: US NFP and CPI data to shake Fed cut bets, Japan election looms

US NFP and CPI data awaited after Warsh’s nomination as Fed chief. Yen traders lock gaze on Sunday’s snap election. UK and Eurozone Q4 GDP data also on the agenda. China CPI and PPI could reveal more weakness in domestic demand.

Three scenarios for Japanese Yen ahead of snap election

The latest polls point to a dominant win for the ruling bloc at the upcoming Japanese snap election. The larger Sanae Takaichi’s mandate, the more investors fear faster implementation of tax cuts and spending plans.

XRP rally extends as modest ETF inflows support recovery

Ripple is accelerating its recovery, trading above $1.36 at the time of writing on Friday, as investors adjust their positions following a turbulent week in the broader crypto market. The remittance token is up over 21% from its intraday low of $1.12.