GBPJPY climbed to its highest point in over a year yesterday, despite Brexit negotiations not going in the best possible way. The pair has been in recovery mode since October 2016, but its chart is looking quite heavy, not because we expect Brexit to eventually take its toll on Britain’s economy, which is also very…
The “5-trillion-a-day“ Forex market, is the place to be, if you are wondering who is going to win or lose the currency war between the central banks worldwide. However, bankers cannot brake the rules by which the market is flowing. They can only obey the laws of mass psychology.
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USDJPY’s Sudden Change of Heart Explained
Not too long ago, on November 6th, the U.S. dollar climbed to as high as 114.73 against the Japanese yen, which was its highest level since mid-March. But instead of maintaining the bullish momentum, USDJPY had a sudden change of heart and reversed to the south. Two trading weeks later, the pair closed slightly above…
EURUSD and the Broken Price Channel
It has been a good week for EURUSD bulls so far, who managed to lift the pair from 1.1637 to as high as 1.1860 by Wednesday. This rally has not been widely expected for two reasons. First, the euro has been declining against the U.S. dollar since it reached an intraday high of 1.2092 on…
USDJPY’s Chart Was Bullish Three Weeks Ago
Less than a month ago, on October 16th, USDJPY fell to 111.65 and it looked like more weakness would follow. Instead, the pair is currently trading above 114.30, after it climbed to 114.73 yesterday, November 6th. The good news is that traders did not have to watch from the sidelines, because the Elliott Wave Principle…
USDCAD’s Choppy Advance Still Delivers 250 Pips
USDCAD fell from 1.3793 to as low as 1.2061 in a little over 4 months. This means the U.S. dollar lost a total of 1732 pips against the Canadian counterpart, or 433 per month on average. In the Forex world this selloff could easily qualify as fast and sharp. So while the pair was trading…
GBPJPY On Its Elliott Wave Way to 160?
Despite the fact that volatility drops significantly during the summer, obviously not everyone was on vacation, because on August 9th we received an on demand order to make an Elliott Wave analysis of GBPJPY. Back then, the pair was hovering around 142.50 and has been moving sideways between 148.50 and 135.60 for more than half…
EURUSD’s Chart Was Heavy Ahead of FOMC
The Federal Reserve announced yesterday it is keeping the interest rate unchanged, a move that was largely anticipated. However, 2017 is still expected to see another rate hike with three more coming in 2018. Following the news, the dollar strengthened against its major rivals. The EURUSD pair crashed from above 1.2030 to 1.1860 in less…
GBPUSD, Time to Hold Your Horses
Ever since it fell to as low as 1.2774 on August 24th, GBPUSD has been steadily rising. Today, the pair climbed as high as 1.3353 after it became clear that the Bank of England was getting ready for a rate hike later this year. The long-term economic logic behind the Pound’s jump is clear. Higher…
Elliott Wave Months Ahead of USDCNH’s Selloff
It has been a rough 2017 for USDCNH bulls so far. The pair has been in an uptrend since January, 2014, but it feels as if it was simply waiting for the calendar to change. The dollar climbed to as high as 6.9872 in late-December, 2016. Nine months later, it is down by 6.6% to…
GBPUSD Winning Strike Coming to an End?
GBPUSD bulls managed to take a breath after the pair recovered from as low as 1.2774 to almost 1.3000. Unfortunately, there is no way to know what this means without taking a look at the big picture and see where does this recovery fit into it. Should we join the bulls or get ready for…
EURUSD Only Using Draghi and Yellen as Catalysts
The Euro climbed to its highest level against the U.S. dollar since January 2015 after ECB President Mario Draghi expressed optimism about the Eurozone’s economic prospects in his speech at Jackson Hole on Friday. At least this is the reason mainstream media uses to explain the sudden surge in EURUSD. In our opinion, though, the…
GBPUSD’s Clear Pattern Makes 1.30 a Target
GBPUSD climbed to 1.3267 at the start of August, but the bulls’ dreams of reaching even higher levels were destroyed, when the pair reversed to the south for what turned out to be a selloff of over 430 pips – the pair fell to 1.2831 on Friday. Today is Monday and the Pound is in…
USDJPY False Breakout Right On Schedule
USDJPY’s rally from 108.80 came to its natural end last week, when the pair climbed to 114.50. The rate exceeded the mid-May high of 114.36 for what is usually called a “bullish breakout.” Unfortunately, instead of rising even more, the U.S. dollar reversed sharply to the south to reach 111.55 yesterday for a decline of almost 300…
USDCAD Two Months Ahead of Bank of Canada
Last week, the Bank of Canada raised the interest rate for the first time in seven years, thus reinforcing the downtrend in USDCAD, which has been in progress since the top at 1.3793 in May. In this respect, the hike itself is hardly the reason for anything. Despite the fact that the U.S. dollar lost over 200…
EURGBP Prone to More Weakness
EURGBP has been rising for over two months now. The pair’s journey to the north began from 0.8313 in mid-April and did not stop until 0.8879 was reached on June 28th. However, everything comes to an end and the euro’s rally against the pound is unlikely to be an exception. In fact, judging from the…
