News & Analysis

Eightcap Forex technical insights – 015/01/18

Jan 15, 2018 | Forex News

What a start to 2018, EUR, GBP, AUD and Gold soaring, USD a shell of it 2017 self. After Friday’s surges should we be thinking new USD bear trend? Buy the rumor sell the fact looks proven now post U.S tax plan. A U.S pull out from NAFTA could be the icing on the USD cake?

AUDUSD – daily, buyers have had an impressive start to 2018 adding 122 pips with one retracement so far. Price has started to hit potential supply areas. We would like to see .7875 to .7896 hold as a low for future retracements.

EURUSD – daily, what looked like a potential turning point turned out to be a failed double top as the ECB set the EURUSD buyer cat amongst the pigeons. The EURUSD rallied by 250 pips in two sessions, taking it back to late 2014 levels. Due to Friday’s surge we wouldn’t be surprised if price made a consolidation / retracement. We would like to see 1.2090 come in as a support low if sellers take price lower.

GOLD – daily, had a great last two sessions, breaking above 1330. Today buying has continued with a further $6.40 added. Under the current momentum buyers could end up testing 1350. USD looks to be running out of puff after an earlier small fight back this morning. 

USD Index – weekly, sellers broke 2017 low on Friday taking price back to low’s not seen since late 2014. After one decent counter rally last year that made a single HH sellers have resumed the down trend. Friday show’s a new LL breakout. Is this a sign that a new long term bear market is in play?

Good trading from Eightcap

Sources – Investing.com

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