On the daily chart, bulls manage to stay above support at 1.2460 and renew October low. As a result, the odds of the pair reaching 88.6% target of the inverted “Shark” pattern increased. It’s situated near 1.3240.
On H1, USD/CAD broke above the upper border of the 1.2440-1.2555 consolidation range. This allowed bulls to form long positions. To continue the rally towards 224% target of AB=CD pattern, bulls need to keep the pair outside of the triangle.
There are bullish patterns such a "Hammer" and an "Inverted Hammer", which both have been confirmed enough. So, the 55 Moving Average is likely going to act as resistance soon. If a pullback from this line happens, we could have another decline.
The last bullish "Harami" led to the current upward correction. Meanwhile, if a pullback from the 34 Moving Average happens little later on, there'll be an opportunity to have a local bearish correction towards the nearest "Window".
USD/JPY: NO ANY BEARISH PATTERN SO FAR
13:15 24.10.2017
We've got a bullish "Hammer", which has been formed at the local low. Considering confirmation of this pattern, the market is likely going to reach the nearest resistance level. In this case, the last local high could be broken soon.
There's a bullish "Tweezers", which has been formed at the local low. Also, there's no any bearish pattern so far. So, the pair is likely going to continue moving up during the day.
EUR/USD: EURO READY TO GOING LOWER
05:39 25.10.2017
Technical levels: support – 1.1730; resistance – 1.1770.
Trade recommendations:
Sell — 1.1750; SL — 1.1870; TP1 — 1.1700; TP2 – 1.1680
Reason: narrow bearish Ichimoku Cloud, but horizontal Senkou Span A and B; a strong dead cross of Tenkan-sen and Kijun-sen with falling Tenkan-sen; the prices are tested the Cloud’s resistance and ready to continue a downtrend.
GBP/USD: POUND RETURNED TO MINIMUMS OF LAST WEEK
05:40 25.10.2017
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 weak golden cross of Tenkan-sen and Kijun-sen with horizontal lines; the prices are in negative area, below the Kijun-sen.
On the daily chart, USD/CHF completely formed the “Dragon” pattern. After it renewed the “Dragon's head” and quitted the descending trade channel, we are certain that bulls have the initiative. They unfolded the long-term trend and are ready to continue the rally at least until 224% target of AB=CD.
On H1, USD/CHF is forming «Spike and reversal with acceleration”. As long as it’s staying above 0.9770-0.9800, bulls will remain control.
GBP/USD: BEARS WANT TO CONTINUE THE FEAST
06:45 25.10.2017
Recommendation:
SELL 1.3100
SL 1.3155
TP1 1.3 TP2 1.271
On the daily chart, inability of bulls to keep GBP/USD above 1.3175 points at their weakness. Bears are regaining the initiative and are ready to attack the lower border of the uptrend channel and trigger AB=CD pattern with the target at 200%.
On H1, the formation of the “Widening wedge” will allow expecting the pair to reach 113% target of a “Shark” pattern. To do this bears need a successful test of support levels at 78.6% and 88.6% of the wave 4-5.
There's a "Thorn" pattern, so the price is consolidating. The main intraday target is the nearest support at 1.1729 - 1.1719. If we have a pullback from this area, there'll be an opportunity to have an upward price movement towards the nearest resistance at 1.1793 - 1.1822.
Bears faced with support at 1.1757, but there's also resistance by the 34 Moving Average. If a pullback from this line happens, the market is likely going to test the next support at 1.1724 - 1.1719. This area could be a departure point for another bullish price movement towards a resistance at 1.1780 - 1.1793.
The Moving Averages have acted as resistance, so there's a "Double Top" pattern, which led to the current consolidation. It's likely that the pair is going to achieve the closest support at 1.3081 - 1.3026 during the day. If a pullback from these levels happens little later on, we could have a bullish price movement towards the next resistance at 1.3227 - 1.3258.
There's a bearish "Pennant", so the price is likely going to reach the nearest support at 1.3080 - 1.3073 during the day. If we have a pullback from this area, we should keep an eye on the next resistance at 1.3150 - 1.3169 as an intraday target.
EUR/USD: 21 & 34 MA ACTING AS RESISTANCE
12:22 25.10.2017
The 21 & 34 Moving Averages are acting as resistance, but there's still no any reversal pattern so far. If a pullback from these lines happens little later on, there'll be an opportunity to have another decline.
Bulls have reached the 89 Moving Average, so the pair is consolidating. If the 34 MA acts as support, we could have a local upward price movement. The main intraday target is the upper "Window".
There's a bullish "Three Methods" pattern, which has been confirmed enough. So, the market is likely going to continue moving up in the short term. If any bearish pattern forms afterwards, there'll be an option to have a decline in the direction of the nearest support.
The lower "Window" has acted as support, but there's a bearish "Harami", which has been formed at the last local high. In this case, bears are likely going to test the closest support level, which could be a departure point for another upward price movement.
EUR/USD: POSSIBLE DOUBLE ZIGZAG IN WAVE [II]
12:41 25.10.2017
Wave [ii] might have been ended, so there's an opportunity to have another upward impulse wave. Previously, an upward impulse in wave was formed. The main target for wave [iii] is 6/8 MM Level.
As we can see on the one-hour chart, there's a possible double zigzag in wave [ii]. 1/8 MM Level acted as support, so bulls are likely going to deliver an extension in wave (iii) of [iii].
On the daily chart, EUR/JPY keeps trading within an uptrend and junior and senior AB=CD. Their 161.8% and 224% targets are near 136. The recent resistance at 133.50 acts as support.
On H1, EUR/JPY formed the “Widening wedge” pattern. A break of the lower border of an uptrend channel and triggering of the “Shark” pattern will increase the risks of correction towards 133.25. On the other hand, renewal of October low will allow bulls to keep pushing the pair higher.
USD/JPY: SHARKS ARE CHASING THE YEN
07:19 26.10.2017
Recommendation:
BUY 112.5 SL 111.95 TP1 113.5 TP2 114.3 TP3 115.3
BUY 114.25 SL 113.7 TP1 115.3
On the daily chart, USD/JPY reached 88.6% target of the «Shark” pattern. As a result, the risks of correction towards 23.6%, 38.2% and 50% of the wave CD in line with the transformation of the “Shark” into 5-0 have increased. The trend remains bullish, so use the pullbacks for buying.
On H1, USD/JPY is forming “Three Indians” pattern. A break of the lower border of the uptrend channel will trigger the “Shark” and the “Widening wedge” patterns and increase the odds of correction towards 112.50.
EUR/USD: PRICE GOING TO TEST NEXT SUPPORT
08:59 26.10.2017
All the Moving Averages have been broken, so the price is moving up. The main intraday target is the nearest resistance at 1.1857. If a pullback from this level happens, there'll be an opportunity to have a decline towards the closest support at 1.1772 - 1.1757.
Bulls faced with resistance at 1.1831, so the price is consolidating. It's likely that the market is going to test the next support at 1.1810 during the day. If we have a pullback from this level, bulls will probably try to test another resistance at 1.1848 - 1.1857.
There's a "Double Bottom" pattern, so the price is rising. The 34 Moving Average is likely going to act as support in the short term. If a pullback from this line happens little later on, there'll be an option to have a bullish price movement towards the next resistance at 1.3336 - 1.3398.
The last "Pennant" pattern has been transformed into a "Double Bottom", which led to the current bullish rally. Finally, the price found resistance at 1.3286, so we could have a local downward correction during the day. The main target for bears is the closest support at 1.3221 - 1.3200. This area could be a departure point for another upward price movement.
The price has been rising since wave [ii] ended. It's likely that there's a developing bullish impulse, which could be wave [iii]. The main intraday target is 6/8 MM Level.
There are two bullish impulses, which are likely waves (i) and i. So, there's an opportunity to have an extension in wave (iii). In this case, bulls are likely going to deliver wave iii of (iii) in the short term.
There's a "Shooting Star", which has been formed at the local high. So, the price is likely going to continue declining until any bullish pattern arrives.
The last bearish "High Wave" led to the current massive decline, but there's an opportunity to have a local bullish correction in the coming hours. If a pullback from the Moving Averages arrives afterwards, we could have another decline.
USD/JPY: PRICE CONSOLIDATING NEAR "WINDOW"
13:25 26.10.2017
The price is consolidating near the "Window". The 55 Moving Average is likely going to act as support, which could be a departure point for another bullish price movement.
There's a bearish "Engulfing", which has been formed at the local high. So, the market is likely going to test the 89 Moving Average in the coming hours. If a pullback from this line happens afterwards, bulls will probably try to deliver another upward price movement.
GBP/USD: POUND RETURNED TO NEGATIVE AREA
06:05 27.10.2017
Technical levels: support – 1.3100; resistance – 1.3150.
Trade recommendations:
Sell — 1.3160; SL — 1.3180; TP1 — 1.3100; TP2 — 1.3075.
Reason: narrowing bearish Ichimoku Cloud with falling Senkou Span B; a cancelled golden cross of Tenkan-sen and Kijun-sen with horizontal lines; the prices are in negative area, but on the strong support of 1.3100.
