Technical levels: support – 0.7610; resistance – 0.7690
Trade recommendations:
Buy — 0.7610; SL — 0.7590; TP1 — 0.7690; TP2 — 0.7730.
Reason: bearish Ichimoku Cloud, falling Senkou Span A and B; a dead cross of Tenkan-sen and Kijun-sen, falling Tenkan-sen and Kijun-sen; but the prices are on the strong daily support.
On the daily chart, EUR/USD formed a 5-0 pattern: after a pullback towards 50% of the wave CD of the “Shark” pattern, the pair declined. Correction towards 200% target of AB=CD will likely continue.
On H1, EUR/USD formed a «Widening wedge” and almost reached 127.2% target of the ideal butterfly pattern. Pullbacks towards 1.1670 and 1.1695 may be used for selling.
EUR/GBP: BULLS DREAM ABOUT SURFING
06:37 27.10.2017
Recommendations:
BUY 0.8895 SL 0.884 TP1 0.8995 TP2 0.9075
SELL 0.8770 SL 0.8825 TP 0.8670
On the daily chart, the “Shark” pattern is transforming into 5-0. Return to 50% of the wave CD may be a reason for buying. On the other hand, a break of support levels at 78.6% and 88.6% of the wave CD will increase the risks of odds of a decline.
On H1, there are conditions for triggering “Wolfe waves” pattern with the following formation of a “Shark” pattern. At first, bulls need to conquer resistance at 0.8895 (high of the bar which marked the previous low).
Bears faced with support at 1.1615, so the price is consolidating. The main intraday target is the next support at 1.1582 - 1.1560. If a pullback from this area happens, there'll be an opportunity to have an upward correction in the direction of the closest resistance at 1.1615 - 1.1668.
There's a "Flag" pattern, so the market is likely going to reach another support at 1.1582 - 1.1560 during the day. However, if we see a pullback from these levels, there'll be time for a bullish correction.
The last bearish "Double Top" led to the current decline. It seems like bears are ready to move on, so we could have a new local low soon. At the same time, there's an opportunity to have an upward correction afterwards. The main bullish target is the nearest resistance at 1.3182 - 1.3227.
The market has plunged because of the last "Triple Top" pattern. The price is likely going to reach the next support at 1.3061 - 1.3047 during the day. If we have a pullback from this area, bulls will probably try to test the closest resistance at 1.3150 - 1.3182.
EUR/USD: SERIES OF "THREE METHODS" PATTERNS
12:11 27.10.2017
There's a developing bearish "Three Methods". If this pattern confirms, the price is likely going to continue moving down until any bullish model forms.
We've got series of "Three Methods" patterns, so the price is still declining. It's likely that the market is going to test the nearest support area, which could be a departure point for a bullish correction.
The price reached the nearest resistance, but there isn't any reversal pattern so far. So, bulls are likely going to deliver a new local high. Nevertheless, there's an opportunity to have a downward correction in the short term.
There's a bullish "Doji", which has been formed at the local low. This pattern has confirmation, so we could have another upward price movement. If any bearish pattern arrives little later on, there'll be time for a downward correction.
Technical levels: support – 1.3100; resistance – 1.3150.
Trade recommendations:
Sell — 1.3150; SL — 1.3170; TP1 — 1.3100; TP2 — 1.3075.
Reason: expanding bearish Ichimoku Cloud with falling Senkou Span A and B; a new dead cross of Tenkan-sen and Kijun-sen with falling Tenkan-sen; the prices are under the resistance of Senkou Span A.
USD/JPY: DOLLAR RETURNED TO CLOUD
06:51 30.10.2017
Technical levels: support – 113.40; resistance – 114.40.
Trade recommendations:
Buy — 113.40; SL — 113.20; TP1 — 114.00; TP2 — 114.40.
Reason: expanding bullish Ichimoku Cloud with rising Senkou Span A; a golden cross of Tenkan-sen and Kijun-sen with rising Tenkan-sen; the prices are tested the resistance of 114.40 and returned to support of the Cloud.
There's a "V-Bottom" pattern, so the price reached the nearest resistance at 1.1615. Nevertheless, the market is likely going to achieve the next resistance at 1.1668 - 1.1695 in the short term. If a pullback from this area happens, we could have a downward correction towards the closest support at 1.1560 - 1.1533.
The last "V-Bottom" pattern led to the current consolidation. The main intraday target is the nearest support at 1.1582 - 1.1560. If a pullback from this area happens, there'll be an opportunity to have an upward price movement in the direction of another resistance at 1.1668 - 1.1695.
GBP/USD: 34 MOVING AVERAGE ACTS AS RESISTANCE
06:57 30.10.2017
We've got a "V-Bottom", which pushed the price to the nearest resistance at 1.3150. The 89 Moving Average is likely going to act as resistance in the short term. If we have a pullback from this line, bears will probably try to test the closest support at 1.3120 - 1.3081.
There's a "Double Bottom", which has been confirmed. At the same time, the 34 Moving Average acts as resistance, so bears are likely going to reach the nearest support at 1.3109 - 1.3087 during the day. This area could be a departure point for a bullish price movement towards the next resistance at 1.3182 - 1.3208.
EUR/USD: +1/8 MM LEVEL ACTED AS RESISTANCE
07:11 30.10.2017
+1/8 MM Level has acted as resistance, so a bullish impulse in wave (c) might be ended. In this case, there's an opportunity to have bearish wave 3. The main target for the coming days is 6/8 MM Level.
There's a pullback from 2/8 MM Level, so wave (iii) might have been formed. So, we're likely going to have an upward correction, which could be wave (iv). If a pullback from 3/8 MM Level happens little later on, we could have another decline in wave (v) of [iii].
NZD/USD: KIWI CAUGHT A CRAB
07:17 30.10.2017
Recommendation:
BUY 0.689
SL 0.6835
TP 0.699
On the daily chart, NZD/USD broke below the diagonal support and went outside of the uptrend channel. As a result, the odds of reaching 127.2% and 161.8% targets of “Crab” pattern will increase.
On H1, NZD/USD keeps forming the inverted pattern “Spike and reversal with acceleration”. As long as the pair hasn’t risen above 0.7050, bears will keep the situation under control. Formation of the “Head and shoulders” pattern will allow a short-term correction.
AUD/USD: AUSSIE CALLED A SHARK
07:39 30.10.2017
Recommendation:
BUY 0.7685
SL 0.7630
TP 0.7775
On the daily chart, AUD/USD reached convergence area of 0.7607-0.7732 (88.6% and 161.8% targets of the “Shark” and “Crab” patterns + 61.8% of the long-term descending wave). This together with the formation of a pin bar will increase the risks of a pullback.
On H1, AUD/USD is forming the inverted “Spike and reversal with acceleration”. As long as the Australian dollar is trading above 0.7810, the situation will be controlled by bears. Triggering of the “Shark” pattern will increase the risks of a pullback to 88.6%.
There're bullish patterns such a "High Wave" and an "Engulfing", which both have been formed at the local low. In this case, the market is likely going to test the 34 Moving Average, which could be a departure point for another decline.
We've got an "Inverted Hammer" pattern, but bulls faced with the nearest resistance, so we could have a local bearish correction during the day. Nevertheless, an upward correction is likely going to be continued afterwards.
USD/JPY: 89 MOVING AVERAGE ACTING AS SUPPORT
12:49 30.10.2017
There's a bearish "Engulfing", which has been confirmed, so the price is declining. The main intraday target is the 34 Moving Average, which could be a departure point another bullish rally.
The 89 Moving Average is acting as support, so we've got a "Hammer" and a "Tweezers" on this line. However, confirmation of these patterns is a quite weak. So, we could have a local upward correction and the following decline little later on.
On the daily chart, the first attempt to test support at $1264-1267 an ounce was a failure. Bears want to repeat their attack. Their success will increase the odds of the pair reaching 78.6% and 200% targets of Gartley pattern and AB=CD.
On H1, to resume the downtrend XAU/USD needs to make another test of support at 88.6% of the last descending wave. If bulls manage to keep gold above the upper border of the downtrend channel, the possibility of reaching 88.6% target of the "Shark” pattern will increase.
On the daily chart, USD/CAD keeps forming an inverted “Shark” pattern with a target at 88.6%. To continue the rally bulls, need to renew October low. As long as the pair is trading below 1.2710-1.2715, buyers remain in control of the situation. Pullbacks may be used for buying.
On H1, USD/CAD there’s a “Spike and reversal with acceleration” pattern. To break the uptrend, bears need to lead the pair below 1.26.
There's a "V-Bottom" pattern, so the price is consolidating. It's likely that bulls are going to reach the nearest resistance at 1.1668 - 1.1695 in the short term. If a pullback from this area happens, there'll be an opportunity to have a decline towards the next support at 1.1560 - 1.1533.
The price is consolidating under the 34 Moving Average, so bears are likely going to test the next support at 1.1615 - 1.1601 during the day. Meanwhile, if we see a pullback from these levels, there'll be an option to have an upward price movement in the direction of the 55 Moving Average.
The Moving Averages are acting as resistance. Nevertheless, the pair is likely going to test the next resistance at 1.3278 - 1.3311 in the short term. If we have a pullback from this area, there'll be an option to have a decline towards the closest support at 1.3227 - 1.3182.
There's a bullish "Flag" pattern, so the market is likely going to test the nearest resistance at 1.3278 - 1.3286 in the coming hours. This area could be a departure point for a bearish correction towards the closest support at 1.3208 - 1.3182.
