USD/BRL Techninal Analysis: Bearish Reversal in Sight?...

USD/BRL Technical Strategy: PENDING Short USD/BRL may be forming a Head and Shoulders topping pattern Brazilian politics are likely the biggest factor leading BRL charge Decline may accelerate after daily close below neckline support See our free guide to learn how to use economic news in your trading strategy! The Brazilian Real has been losing major ground against the US Dollar since the start of the year. However, a convincing Head and Shoulders pattern – a setup likely inspired by Brazilian politics – appears to have emerged and may indicate a bearish reversal for the pair. The recent tumultuous election that saw the firebrand Social Liberal Party Leader Jair Bolsonaro rise to power boosted the local currency. This in large part has to do with his affirmation of central bank independence and appointment of Chicago School-trained Finance Minister Paulo Guedes. He is an advocate of mass privatization and of reforming the country’s bloated pension system. USD/BRL Leading to Potential Bearish Reversal A neckline at 3.6861 has provided adequate support despite a brief false breakout inArticle source:...

NZD/USD Technical Analysis: Double Top Forming Below 0.69?...

NZD/USD Technical Strategy: 0.6785 New Zealand Dollar bounce cut short at familiar resistance level RSI divergence suggests that a double top may be in in the works Short position remains in play absent clear bullish invalidation See our free trading guide to help build confidence in your NZD/USD trading strategy! The New Zealand Dollar has returned to challenge resistance in the 0.6851-84 area after a foray to the downside was cut short below the 0.68 figure. A nominally higher high has been set but confirmation of a break on a daily closing basis is conspicuously absent (at least for now) and negative RSI divergence warns of ebbing upside momentum. A reversal downward from here sees initial trend line support at 0.6795, with a break below making a compelling argument for downtrend resumption and opening the door for a test of the 0.6688-0.6726 zone. Alternatively, a daily close above 0.6884 eyes a minor chart inflection point barrier at 0.6965, followed by a more substantive threshold at 0.7060 (June 6 high). The short NZD/USD tradeArticle source:...

EUR/GBP Technical Analysis: Euro Prices Awaiting Range Breakout...

EUR/GBP Technical Analysis EUR/GBP appears to be transitioning into a consolidation mode for the time being Upper boundary of the range around 0.89394 while the lower one is near 0.88108 A climb above the range exposes 2018 high, a descent meanwhile eyes April lows Just started trading EUR/GBP? Check out our beginners’ FX markets guide! Since we last took a look at EUR/GBP, the pair was struggling to confirm a break above a falling trend line from August. Confirmation via more closes to the upside could have meant a lasting uptrend to come. But, that was not the case as anticipated. The pair fell instead, but lasting downside progress was not achieved and we are now back to where we left off. With that in mind, the Euro appears to be transitioning into a consolidation mode against the British Pound. EUR/GBP is sitting squarely at the edge of a horizontal range of resistance between 0.89235 and 0.89394. Looking below, near-term horizontal support is between a range of 0.88384 and 0.88108. Until we get aArticle source:...

S&P 500, Dow Jones & Nasdaq 100 Charts: Buyer Beware, Looks like Just a Bounce...

SP 500/Nasdaq 100/Dow Jones Technical Highlights: SP 500 rallied to trend-line, just shy of 200-day Dow Jones bounced from support, another test could come soon Nasdaq 100 also rallied to trend-line resistance With global stocks falling sharply, see how this fits into our outlook for the remainder of the year in the Q4 Global Equities Forecast. U.S. stock rally looks like another corrective bounce The sharp rally in stocks this week doesn’t look likely to last, and in fact yesterday may have been the end of the bounce. The SP 500 finished off yesterday with a Doji candlestick at the trend-line running down off the record high. The candle at resistance suggests upward momentum may have met its match in selling. Even if the market were to resolve a bit higher first, the 200-day is just a short ways higher and should prove challenging to maintain above. As long as price stays below the last bounce high of 2815 the market remains tilted lower. But if the market is to make good on the Doji at resistance then we should see the market start to turn down today. On a pushArticle source:...

Bitcoin Sentiment Sparks a Bullish Bias

73% of Traders are Net-long Bitcoin: Retail trader data shows 73.6% of traders are net-long with the ratio of traders long to short at 2.78 to 1. The number of traders net-long is 4.4% lower than yesterday and 3.5% higher from last week, while the number of traders net-short is 4.7% higher than yesterday and 7.2% higher from last week. Be sure to check out our Bitcoin Trading Guide if you’re new to cryptocurrencies! Bitcoin Sentiment Suggest Prices May Rise We typically take a contrarian view to crowd sentiment, and the fact traders are net-long suggests Bitcoin prices may continue to fall. Yet traders are less net-long than yesterday and compared with last week. Recent changes in sentiment warn that the current Bitcoin price trend may soon reverse higher despite the fact traders remain net-long. — Written by Fan Xu, DailyFX Research Article source:...

FTSE Chart Analysis – Lifting on Heels of Surge in S&P 500, but Not Meaningful...

FTSE Technical Highlights: FTSE starts day on positive note with help of Powell, SP 500 Price action still sluggish, suggests market only digesting prior losses Still in the works relatively soon; a weekly close below March/Oct lows is big trouble Looking for forecasts, long-term trade ideas, and educational content? We got you covered. Check out the DailyFX Trading Guides page for details. FTSE starts day on positive note with help of Powell, SP 500 Yesterday, shortly after European trade closed Fed Chairman Powell delivered a speech where he eased up on the Fed’s hawkish tone, which sent U.S. markets spiraling higher and with it sympathy moves out of other major global markets to start today. But it may not last long, trend and market tone are still negative. As of late the FTSE has been caught in a washing machine of choppy trading, making the past month or so difficult and also indicative of corrective price action of the last down-move during October. It is currently trying to cross a trend-line from September, one it was rejected from yesterday. A break above may allow for the market to trade higherArticle source:...