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Intraday Analysis for this Week's Market Bias

Monday, August 7, 2017 11:14 AM GMT

Friday’s strong NFP report stopped temporally (?) US Dollar downside bias against the major rivals. The question mark concerns the scenario that US Dollar is forming a major bottom after bouncing on the 78.6% Fibonacci level on daily timeframe. On the contrary, EURUSD created a bearish daily candlestick and traders wonder if this is the beginning of a deeper correction.  The Cable has activated a rising wedge (read post) while Aussie remains on correction mode. Naturally USDJPY follows a similar price action as US dollar, but lets see what major events we are expecting this week.

Source: ZuluTrade Calendar

Reviewing the basic pairs on the hourly, EURUSD regained the 200SMA (still rising) but due to the bearish daily candlestick, bears may have a selling opportunity close to 61.8% (inverse 32.8% Fibonacci). However, the basic rule remains stable, meaning, as long as price stays above 200SMA, the trend is bullish.

GBPUSD has a measured downside target 1.29 due to the broken rising wedge (read post). Heading to hourly, the ABCD is still valid as noted on the chart below. Bulls need to reclaim 200 SMA but according the current picture; any setbacks could be selling opportunities.

AUDUSD reached the target of ABCD target (read post) while now recovers after bouncing on the trendline (T1). However, there is a possibility of a new ABCD pattern, but needs to break the T1 to the downside to be activated. Buyers need to reclaim the 200 SMA and noted Resistance zone to negate the negative outlook.

USDJPY created a swing failure and had an upside recovery rally to the resistance zone (Z1). There is the possibility of forming a double bottom pattern, but price needs to break out this zone (Z1) to the upside. Double Bottom’s target is close to 111.95. However, the price may continue moving inside this range (110-111).

 

 

 

 

 

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