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USDCHF Weekly Forex Forecast – 31st Dec 2018 to 4th Jan 2019
Fundamentals Outlook
The economic data for the week ahead will see the markets looking to a new trading week of the year. Data from the U.S. is particularly busy. The week starts off with the Institute of Supply Management’s manufacturing and non-manufacturing PMI reports coming out. Economists forecast that manufacturing activity will decline following various regional indicators showing a decrease in manufacturing activity. Later in the week, the U.S. jobs report is due starting with ADP/Moody’s private payrolls report. This is later followed by the official non-farm payrolls report for the month of December.
From the Eurozone, economic data pertains to the manufacturing and services PMI reports. The reports cover the month of December and investors will be keen to see how the economy fared during the last month of the year. Data from Japan and Switzerland are relatively quiet for the most part this week. However, year end flows could bring some volatility to the markets.
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Chart set up: The USDCHF currency pair was seen breaking out to the downside below 0.9870 level of support last week. The declines came following nearly two weeks of trading within the range of 1.0001 and 0.9870 region. Still, the breakout from this level saw the USDCHF posting a strong reversal by Friday’s close.
Key support/resistance levels:
Support: 0.9741; Resistance: 0.9870
Commentary:
The reversal pattern seen on Friday could potentially indicate that the USDCHF currency pair will be testing the breached support level of 0.9870 where resistance could now be established. If the level holds the USDCHF from posting any further gains, we could expect the currency pair to post declines in the coming week. The lower support is seen at 0.9741 which will need to be tested to the downside. For the week ahead, we expect the USDCHF currency pair to be slightly bearish.
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The post USDCHF Weekly Forex Forecast – 31st Dec 2018 to 4th Jan 2019 appeared first on Advanced Forex Strategies.
USDJPY Weekly Forex Forecast – 31st Dec 2018 to 4th Jan 2019
Fundamentals Outlook
The economic data for the week ahead will see the markets looking to a new trading week of the year. Data from the U.S. is particularly busy. The week starts off with the Institute of Supply Management’s manufacturing and non-manufacturing PMI reports coming out. Economists forecast that manufacturing activity will decline following various regional indicators showing a decrease in manufacturing activity. Later in the week, the U.S. jobs report is due starting with ADP/Moody’s private payrolls report. This is later followed by the official non-farm payrolls report for the month of December.
From the Eurozone, economic data pertains to the manufacturing and services PMI reports. The reports cover the month of December and investors will be keen to see how the economy fared during the last month of the year. Data from Japan and Switzerland are relatively quiet for the most part this week. However, year end flows could bring some volatility to the markets.
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Chart set up: The USDJPY currency pair continued to extend declines last week as price action settled near the lower support area of 110.50. A brief consolidation around this area saw the currency pair establishing the support level rather firmly. Despite the decline below the 110.50 level, we expect that price action could be biased to the upside.
Key support/resistance levels:
Support: 110.50; Resistance: 111.78
Commentary:
The 4-hour Stochastic oscillator has posted a bullish divergence near the lows. This could potentially indicate an upside momentum in price action as a result. The previously breached support at 111.78 remains a key level of interest. If the upside rally will fail to breakout above this level, then the USDJPY currency pair could be seen holding a flat range within the said levels. Above 111.78, the currency pair will face resistance at the 112.74 level. However, for the near term, we expect the USDJPY to maintain the range within 111.78 resistance and 110.50 support. The USDJPY could be seen trading to the upside in the very short term but holding a flat range in the medium term.
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The post USDJPY Weekly Forex Forecast – 31st Dec 2018 to 4th Jan 2019 appeared first on Advanced Forex Strategies.
EURUSD Weekly Forex Forecast – 31st Dec 2018 to 4th Jan 2019
Fundamentals Outlook
The economic data for the week ahead will see the markets looking to a new trading week of the year. Data from the U.S. is particularly busy. The week starts off with the Institute of Supply Management’s manufacturing and non-manufacturing PMI reports coming out. Economists forecast that manufacturing activity will decline following various regional indicators showing a decrease in manufacturing activity. Later in the week, the U.S. jobs report is due starting with ADP/Moody’s private payrolls report. This is later followed by the official non-farm payrolls report for the month of December.
From the Eurozone, economic data pertains to the manufacturing and services PMI reports. The reports cover the month of December and investors will be keen to see how the economy fared during the last month of the year. Data from Japan and Switzerland are relatively quiet for the most part this week. However, year end flows could bring some volatility to the markets.
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Chart set up: The EURUSD currency pair remained fairly flat last week. Price action settled back at the resistance area of 1.1463 – 1.14490 level by Friday’s close. The common currency rallied following a brief decline before reversing the losses mid-way. Overall, the currency pair was seen maintaining its sideways range.
Key support/resistance levels:
Support: 1.1351; Resistance: 1.1449 – 1.1463
Commentary:
The week ahead will see the EURUSD currency pair likely to continue its sideways range with the lower support at 1.1351 level. The minor trend line that is plotted remains key. A breakout from this trend line and the horizontal support level could potentially keep the EURUSD biased to the downside. A break below 1.1351 could see the EURUSD extending the declines to test the lower support at 1.1241 which hasn’t been tested that firmly. To the upside, a breakout above the resistance level needs to be backed by strong fundamentals. For the week ahead, the EURUSD currency pair is expected to remain flat.
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The post EURUSD Weekly Forex Forecast – 31st Dec 2018 to 4th Jan 2019 appeared first on Advanced Forex Strategies.
USDCAD Price Action Analysis – 28th Dec 2018
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USDCAD has been on a bullish run and has been climbing steadily over the past 4 weeks. We think that this climb perhaps is due for a reversal especially with the hint that the pin bar has provided to us the day before. So here’s our trades for this pair today. We will be entering a Buy and Sell Stop Order. In the event of a breakout of either direction, please cancel the opposing order.
Here’s the first order for Buy:
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Here’s the Sell Stop Order:
If you have entered the orders correctly, then we are waiting for a breakout to happen either on the long or short side. Your MT4 screen should look like this.
Either way… we are getting some action
The post USDCAD Price Action Analysis – 28th Dec 2018 appeared first on Advanced Forex Strategies.
USDJPY took a massive bearish ride on the Daily chart. However, the H4 chart shows that it might be the time for the pair to make some bullish move. The price seems to have found a strong level of support from where an H4 bullish engulfing candle has already been produced. Thus, a correction, an H4 bullish engulfing candle and an H1 breakout at the higher high would be the things that USDJPY buyers are going to look for. Let us have a look at the H4 USDJPY chart.
USDJPY Price Action Analysis – 27th Dec 2018`
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The level of 110.300 is the level of support here. The H4 bullish engulfing candle and the next H4 candle have set a bullish tone here. The level of 111.425 is the level of resistance here and the level of 110.875 is the level which has the potential to be the level of support. If that happens and we get an H4 bullish engulfing candle right on the level, then an H1 breakout at the resistance level would be the signal to take a long entry. Let us have a look at the summary of the trade…
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It is noticed that most of the pairs have been having enough liquidity, but the price is not held or ends up producing a breakout candle. I assume this is a year ending effect. Nevertheless, good thing is the pairs have enough movement even at the very last moment of the year 2018. Let us hope movement continues in the next year as well.
The post USDJPY Price Action Analysis – 27th Dec 2018 appeared first on Advanced Forex Strategies.