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EUR/GBP to Calm Down

The EUR/GBP continues its strong rally. In August the pair advanced by another near 200 pips move and is currently resting above the 0.9000 round figure.
But as you can see on the chart above, indicators are already flashing red. The weekly Stochastic Oscillator is printing values over 90, indicating a very overbought market. On our next chart below we see a similar situation on the monthly chart.
Here too the (5,3,3) Stochastic is printing values over 90. I also added 3 lines to indicate what h…
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EURo Nearing Cluster of Previous Resistance Levels

The Euro is slowly becoming overbought. Look at the weekly chart below. We are already trading past the 80 level on the Stochastic Oscillator, a level which signifies an overbought market condition. But that on it's own shouldn't be traded upon.
Exhibit number two is the second picture below. We are nearing a cluster of previous resistance levels, starting from this month's high at 1.1268 to the 1.1302 spike on Trump election day. Higher up more levels can be found at 1.1370, 1.1428 and of cours…
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Aussie Going Back to 0.7500

The Aussie is nearing oversold levels. On the daily chart below we can see that the pair dipped below the 20 level in the Stoch (8,3,3) and is now moving higher. This confirms a bullish signal for this pair.
A similar situation can be seen on the hourly chart below, although here the bullish scenario has been underway for several bars now. Notice how the pair rallied shortly after the dip below 20 and the move back above it.
Now let’s talk about the target. We’re currently quoted at 0.7222. Wi…
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Elens94 avatar
Elens94 1 Ene

great!

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Kiwi Could be Bottoming Out

The New Zealand Dollar could be bottoming out. First let’s take a look at the daily chart. Here we see that the Stochastic Oscillator dipped below the 20 oversold level three bars ago. We’re now rallying from these lows and we closed back above 20, indicating a bullish condition.
Our second chart below shows that the momentum during the past few days has been strongly up, with little to no retracement. This confirms what the longer-term charts are saying.
I’ll be placing my target just below t…
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Cable Back in Oversold Territory

Cable is back in oversold territory. Let’s take a look at tour first chart below. Notice how on the daily chart the Stoch (5,3,3) dipped below the 20 figure. This is considered oversold in technical analysis. The climb back above the level confirms the ‘buy’ signal.
Our second chart below shows a similar oversold pattern but one that has run its course further then on the daily chart. Here the dip and climb back above the 20 level happened few bars ago.
I’m targeting 1.2781. This is right belo…
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EURo Should Stablize in January

Europe's single currency could finally stabilize in January. On the weekly chart below we can see that the trend has been down. But the Stochastic Oscillator is flashing oversold level at only 10. This means that the downtrend could be on its last legs.
On our next chart below we see that the EUR/USD had a surge of buying as we trade close to support. This happened soon after prices hit a low of 1.0372, which is very close to the monthly low at 1.0352. A high of 1.0652 was hit during the frenzie…
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EUR/JPY Overbought on Multiple Timeframes

The EUR/JPY is overbought on most time-frames. The first picture below shows a daily chart. Notice how the Stochastic Oscillator traded above the 80 line and is now coming down. This is a classic overbought signal followed by a confirmation, the moving down back below the 80 line.
Exhibit number two shows us the situation on the 4 Hour chart. Here too the pair is flashing an overbought signal. The Stoch is printing a value of 91 right now. The pair is stretched to extreme levels.
Our final chart…
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fxsurprise8 avatar

So far so good! After a long post-election rally the EUR/JPY has traded mostly range-bound during December. Looks like all those overbought signals are finally having an effect.

The high to low range is now at 539 pips, with a high at 124.09 and a low at 118.70. But most important, the open to close range is tiny at only 48 pips.

We are currently quoted at 122.01 in the EUR/JPY, only 94 pips or 0.77 percent above my forecasted price. Here's to hoping for a small drop into month-end!

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Yen Looks Overbought

The Yen looks overbought. Normally a safe-haven currency, the Japanese Yen got bought up aggressively in the post-Brexit mayhem. But as we can see on the 4 Hour chart below, things are starting to change with prices possibly bottoming out. We have now retraced over 50% of the Brexit related move, with possibly more gains on the way.
There are signs of a bottom on longer-term charts as well. Notice below how the Stochastic has clearly hit oversold territory in the USD/JPY. The Stoch moved below 2…
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USD/CAD to Rally Higher

The Canadian Dollar has been one of the big winners from the rally in oil prices this year. The USD/CAD saw most of the post-Fed December gains evaporate and is currently trading at 1.2986, over 1600 pips below the January highs at 1.4688.
Notice the Stochastic indicator on the daily chart below. It has been in oversold territory for over one month now since late February. But things may be changing, notice how the indy is finally turning back higher above the 20 level, signalling a potential r…
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SvetLena avatar
SvetLena 31 Mar

good

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