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DAY 25 - PBOC REACTION

One day after a massive financial market selloff across the globe the PBOC finally reacted to investors concerns about its slowing economy and cut its benchmark interest rate by 25bp to 4.6% lending and 1.75% deposits while cutting the reserve requirement ratio by 50 basis points. Chinese authorities also lower the stamp tax on equity transactions in hopes of encouraging more investment into stocks. As a result we have seen some retracement in JPY and Commodity currencies.
However, another rete…
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EUR/GBP - Bearish price action !

  • Charts: 4Hours, 1 Day.
  • Indicators: Fibonacci Fan Lines,Fibonacci Retracements.
  • Prepared with : JForex 4.
  • Current Level : 0.8141
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UPDATE 1:EXCELENT PREDICTION. The pair had the bearish price action that i managed to predict so accuratly. In the first chart i  draw some support zones towards which the price action might be heading and where it can encounter resistance. My wiew at the time of analysis was that  the sell wave will find support at 0.8337 price level but the  momentum was much strong and the price action pushed lower finding  support in its lowest point at 0.7957 which is only 4 pips away  from 0.7953 my second support that i draw in the first chart.

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UPDATE1 -Part 2 :As i mentioned in this analysis the red circled area in the first chart was  very important  because it helped me predicted & project future price action developement based on historical price reaction. This idee of mine proved very accurate if we take into consideration that the pair found support at 0.7957 ,only 4 pips away from the support that i draw in first chart.Current price level is 0.8024 which is only 72 pips bellow  the target.This one truly remarkable prediction and has all the premises to hit the target.

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UPDATE 2: The deviation from target increased in the meantime  to  96 pips. This prediction still remain in the books.

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SGD/JPY - Retest & Break of Fan Lines


Charts: 4Hours, 1 Day.
Elements used: Fibonacci Retracements,Fibonacci Fan Lines,Support & Resistance Levels , MACD, EMA 200,100,50.
Current Level : 80.41

SGD/JPY pair is in general a very interesting pair to study & analize.In the chart below we can that recent price development that occured as a retracement from that big bullish trend is constantly testing ,retesting & breaking fibonacci fan lines.I highlighted this zone in purple.We can see the first break of the fan lines 23.
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UPDATE 1 . Wrong Prediction

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