GBPUSD: Bullish Bias Continues

The GBPUSD currency pair has successfully broken through the resistance line of the falling wedge pattern and is striving to remain above it. This supports the likelihood of the bullish trend continuing today, driven by positive momentum indicated by the stochastic oscillator. The pair is aiming to reach its targets, starting at 1.3200 and extending to 1.3295.

It is crucial for the pair to maintain its position above the 1.3075 level in order to sustain its upward trajectory. If this level is broken, it could trigger a correctional bearish wave on an intraday basis.

USDJPY Key Levels to Watch

The USDJPY currency pair is trading around 138.35 trying to stabilize the price above the demand zone at 137.33. The green long wick shadow candle-stick signals a continuation to the mail bullish trend. Continuing to the current market situation, please note that the price reacted downward to the 23.6 level of the Fibonacci Retracement which act as a minor support to the pair. The inverted hammer candle stick supports the sellers will in keeping the downtrend active.

The 23.6 level acts as today's resistance, the bullish trend would probably resume if the market can close above 139.4 in the 4H time-frame. On the other hand 137.33 is the main support, and a breach in this level will signal the continuation of the negative movements which was initiated from 145.

The USDJPY currency pair is currently trading around 138.35, as it attempts to stabilize its price above the key demand zone at 137.33. Notably, the appearance of a green long-wick shadow candlestick signals a potential continuation of the main bullish trend. In light of the current market situation, it’s important to note that the price has reacted downward to the 23.6 level of the Fibonacci Retracement, which is acting as a minor support for the pair. Furthermore, the presence of an inverted hammer candlestick further supports the sellers’ efforts to keep the downtrend active.

In terms of resistance, today’s level is at the 23.6 mark. If the market can close above 139.4 in the 4H time-frame, it’s likely that the bullish trend will resume. On the other hand, 137.33 serves as the main support level, and a breach of this level could signal a continuation of the negative movements that were initiated from 145.

In conclusion, key levels to watch for USDJPY on July 18th, 2023 include a support level at 137.33 and a resistance level at 139.4.

What is an Inverted Hammer

An inverted hammer is a type of candlestick pattern that is usually found after a downtrend and is often taken to be a trend-reversal signal. The pattern is made up of a candle with a small lower body and a long upper wick, which is at least two times as large as the short lower body. The body of the candle should be at the low end of the trading range, and there should be little or no lower wick in the candle.

EURJPY: Forming a Double Bottom

The EURJPY is exhibiting an upward trend and has rebounded from the support level at 155.13, which coincides with the Fibonacci 38.2 retracement level. This convergence lends further credibility to this support area. Notably, the instrument is forming a double bottom pattern at the edge of the rising trend line. If the price remains above 155.13, the initial target will be 156.34.

At present, the candlestick pattern is forming a long wick shadow, representing the third bullish signal for taking a long position on this currency pair.

Conversely, if the price falls below the 155.13 support level, the 156.34 high will be considered a new higher high and the decline may extend to lower Fibonacci retracement levels at 50 and subsequently 61.8.

What is Double Bottom Pattern?

A Double Bottom Pattern in forex is a chart pattern that signals a potential bullish reversal. It comprises of two distinct bottoms of similar width and height, forming near a similar horizontal price level, resembling the letter “W”. A measured strengthening in price will occur between the two low points showing some support at the price lows.

Bulls Stabilize USDJPY Above Key Support Level

The USDJPY currency pair has recently retested the 23.6% Fibonacci retracement level. Despite this retest, the bulls have managed to stabilize the price above the minor support level of 139.4. This stabilization is a positive sign for traders who are bullish on the pair. If the price can hold above the aforementioned support level, it is likely to target the next support level at 140.9 in the following trading sessions. This would represent a continuation of the bullish trend and could provide further opportunities for traders to enter long positions.

The MACD indicator is currently trading above its signal line, which is typically considered a bullish sign. This suggests that the underlying asset may be experiencing upward momentum and could continue to rise in price.

On the other hand, if the minor support at 139.4 breaks, it could signal a resumption of the decline. In this scenario, the price could retest the next support level at 137.33. Traders who are bearish on the pair may look to enter short positions if this support level is broken.

EURJPY: How to Trade the Recent Price Action

The EURJPY currency pair has recently experienced a rise, holding steady near its last high, which is acting as a resistance level at 158. However, the price had a negative reaction to this resistance and started Monday with a decline. This could potentially be just a temporary correction before another surge in price. Despite the 158 resistance appearing fragile, a break could be imminent as long as the bulls are able to maintain control of the market above the rising trendline.

On the other hand, it is important to note that there is also support at 153.46, which correlates with the 23.6% Fibonacci retracement level. In the unlikely event that this support level is broken in a downward direction, the decline may continue to lower levels of the Fibonacci retracement. As always, it is important to carefully monitor market trends and make informed decisions when trading.

EURUSD Technical and Fundamental Outlook

The EURUSD currency pair has been experiencing an upward trend since October 2022. Currently, it is trading above its 1.1060 support level. Additionally, technical indicators such as the MACD and RSI are in neutral territory, suggesting a bullish outlook.

This morning, the EURUSD is trading close to the strong support at 1.1060. This price level provides a decent supply zone for the pair, and the price may bounce from here. In the near term, there are several factors that could support the EURUSD. Firstly, the European Central Bank (ECB) is expected to raise interest rates, which could make the euro more attractive to investors. Secondly, the US economy is showing signs of slowing down, which could weigh on the dollar.

As a result, the EURUSD is expected to continue its upward trend in the near term. The pair could test the 1.1200 level in the coming weeks. However, if the ECB does not raise interest rates as expected or if the US economy shows signs of improvement, the EURUSD could pull back.

Gold Analysis: Price Line Resistance Acts as Support

Gold, the yellow metal, began the day with an increase and is currently trading at $1,971, clinging to the price line resistance that previously acted as support. The market is likely to move back to the channel since it was unable to break the 38.2 Fibonacci level. As long as the Fibo level holds, the bullish outlook remains valid. The price is likely to target $1,987 again, and the previous breakdown of the rising channel can be considered a false breakdown.

The 4-hour timeframe is the best for trading XAUUSD. This timeframe provides enough detail to identify trends and reversals while also capturing the overall market sentiment. In technical analysis, a price channel is a chart pattern that occurs when the price of an asset moves between two parallel trendlines. The upper trendline connects the swing highs in price, while the lower trendline connects the swing lows. The channel can slant upward, downward, or sideways on the chart.

USDCAD: Is the Bear Market Over?

The USDCAD currency pair is currently testing the resistance level of 1.3235, which is also near the 50% Fibonacci retracement level. The RSI indicator has not yet reached the overbought level of 80 in the 4-hour time frame, indicating that there is still room for the bulls to push the price higher.

The candle sticks formed near the resistance level do not show any significant selling pressure from the bears. This suggests that the upward bias is likely to continue, with the 25 SMA acting as support for the bulls.

If the bulls are successful in breaking through the resistance level, their target will be the 61.8% Fibonacci resistance level. However, traders should also watch the price action closely for doji, long-wicked candles, or bearish engulfing candles, which could signal a reversal in the trend.

In general, the trend is bearish, and the current uptick movement can be considered a correction. However, if the bulls are able to break through the resistance level, the trend could shift to bullish.

EURUSD Strategy: A Closer Look at the 4-Hour Chart

The EURUSD currency pair is trading bullish above the trend line from May 31. However, it is important to note that the pair is below the pivot level at 1.104. There are several high-impact economic news releases scheduled for today in the euro zone, which could impact the pair's direction in the short term. Therefore, it is not recommended to trade this currency pair until the new data is released.

On a technical standpoint, the euro is bullish against the dollar as long as the pair is traded above the resistance line at 1.0966. Zooming in to the 4-hour chart, we see a bullish engulfing candle stick, which signals that the rising trend may continue. However, the pair could break the trend line if the economic data released today is disappointing for the euro area.

Traders should keep an eye on today's economic data and watch the market behavior closely before going long or short on the EURUSD currency pair.

Gold Price Update: Double Bottom Pattern in Play

Following up on yesterday’s analysis, the XAUUSD pair has tested the support level of $1,940 and is currently challenging the broken trendline on the 4-hour chart, which now acts as resistance. Despite the bears’ efforts, they were unable to close below the low of July 27th, and the price bounced back from that zone. This could potentially lead to the formation of a double bottom pattern.

If the price breaks above $1,952, it would provide an opportunity for the bulls to push the price above the trendline and target the pivot point at $1,961.

On the other hand, S1 remains a key factor in maintaining a bullish bias. If it breaks, the path towards S2 at $1,921 will be cleared. We recommend keeping an eye on minor resistance levels and monitoring market behavior around these support and resistance areas.

A double bottom pattern in forex is a bullish reversal pattern that comprises of two distinct bottoms of similar width and height, below a resistance level (the neckline), giving it the shape of a "W"1. The first bottom forms immediately after a strong downtrend. The price then retraces to the neckline and then falls back to the downside.

GBPUSD Tests 1.26 Support, Bulls Ready for Reversal

The GBPUSD currency pair is currently trading below the broken trendline, around 1.2696. At the moment, the bears are testing the support area, which extends from 1.2681 to 1.26. This support zone is clearly shown in green on the GBPUSD daily time frame. Interestingly, this support was tested once on June 29, and the bullish trend extended its legs to as high as 1.3141 until July 13.

If we take a closer look by zooming into the 4-hour time frame, we can see a long-wick candlestick. This signals a possibility of a trend reversal or an exhaustion in the bearish bias from July 13. Please note, the green area acts as the supply zone all the way down to S1 support at 1.261. Consequently, there is a high chance for the bulls to regain control if the latter level holds.

On the other hand, for the bears to keep their bearish bias valid, they have to close below the S1 barrier. HubuFX suggests monitoring the price action in the green zone closely before executing a new order or exiting a current short trade.

AUDUSD: Is the Uptrend Over?

The AUDUSD currency pair is currently trading at around 0.6549. Recently, the pair bounced off the resistance level at 0.6589 and formed a doji candlestick pattern on the 4-hour time frame. This pattern suggests a bearish bias in the market. It is important to note that the bearish trend remains valid as long as the price stays below the resistance level of 0.65959. If this scenario plays out, the downward momentum could continue, with the price potentially targeting May's lower lows in the range of 0.6492 to 0.6445.

On the other hand, if the price breaks above the resistance level of 0.6595, we could see a continuation of the correction. In this case, the price of the asset may rise to test the next resistance level at 0.6638.

In summary, traders should keep an eye on key levels of support and resistance when making their trading decisions for the AUDUSD currency pair. A break above or below these levels could signal a potential change in market direction.
According to the latest news, the AUDUSD pair is preparing to extend losses below the immediate support of 0.6595 as the United States Automatic Data Processing (ADP) reports that employment additions were higher than expectations. The US labor market witnessed an addition of fresh 324K private payrolls, significantly higher than the estimates of 189K but lower than the former release of 497K. The AUDUSD broke below the key support area at 0.6600 and tumbled to 0.6527, reaching the lowest level since June 1. The decline added negative pressure to the Aussie, which still persists. The pair is currently looking for the next support.