Mind The Weekly Doji In EUR/USD
ORBEX | Apr 11, 2016 03:22AM ET
Daily Forex Market Preview, 04/11/2016
The markets were very mixed on Friday as oil prices surged, closing the day with over 5.0% gains. However, the equity markets failed to keep up with the gains as yen started to trim its losses and continued to gather steam again, sending USD/JPY to close on a modestly bearish note. EUR/USD's weekly chart shows last week's price action closing with a doji, which could see further downside if we see EUR/USD close below 1.1326.
EUR/USD Daily Analysis
EUR/USD (1.14): EUR/USD closed last week with a doji pattern following the previous weeks of gains. This could signal a short-term pause, but a weekly close below the doji's low at 1.1326 could signal a correction lower. Support comes in at 1.130 and 1.120. There is evidence that EUR/USD could see a stronger correction lower towards 1.10 if the support levels near 1.12 and 1.11 give way. On the 4-hour chart, EUR/USD has been consolidating near the lower median line and forming lower highs. A move below the short-term base at 1.136 - 1.135 will confirm the move lower for 1.13 initially, followed by 1.120.
USD/JPY Daily Analysis
USD/JPY (107.8): USD/JPY remains biased to the downside with no strong evidence of any short-term bounce or correction. Price action is, however, trading near the support level of the 108.1 - 108.0 region. A break below this level will see further declines towards 105.36 - 105 levels of support, from which we can anticipate some kind of a correction to the upside. Any rallies ahead of USD/JPY reaching the lower support at 105 levels will be capped near the resistance level of 112.4 - 111.4.
GBP/USD Daily Analysis
Get The News You Want
GBP/USD (1.41): Price action in GBP/USD is currently showing some conflicting signals. While there is a larger inverse head and shoulders pattern playing out with the right shoulder's low formed near 1.405 - 1.41, a break below this level could see GBP/USD post new lows. Resistance at 1.4425 remains key for any further upside gains to be formed above 1.420. To the downside, 1.4025 - 1.40 will be key, as a weekly close below this level could confirm a move lower.
Gold Daily Analysis
XAU/USD (1252): Gold prices closed with a doji candlestick pattern on Friday, but early Monday session has seen gold prices start off on a bullish note. A higher close on the daily session could keep gold biased to the upside. With prices trading near 1252 currently, the price action validated the bullish flag breakout, which points to a minimum price target near the $1260 region. The downside is well supported with initial support at 1250 followed by 1243 – 1237 levels of support.
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.