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  • EUR/JPY Forecast – Euro To Face Resistance Near 120.00 Vs Yen

    EUR/JPY Forecast – Euro To Face Resistance Near 120.00 Vs Yen

    • – The Euro moved down recently against the Japanese yen to settle below the 120.30 support.
    • – During the downside, the EUR/JPY pair broke an ascending channel support at 120.0, which might now act as a resistance.
    • – The German IFO business sentiment index released by the CESifo Group for March 2017 posted a rise from 111.1 (revised) to 112.3.

     

    German IFO Business Sentiment Index

    Today during the London session, the German IFO business sentiment index released by the CESifo Group for March 2017 was released. The market an unchanged reading from 111 in March 2017.

     

    The outcome was on better than the forecast, as the German IFO business sentiment index posted a rise to 112.3 in March 2017. The last reading was also revised up from 111 to 111.1. The German IFO Current Assessment index also posted a nice increase from 118.4 to 119.3. Similarly, the IFO Expectations moved higher from the revised reading of 104.2 to 105.7 in March 2017. The report mentioned that the “business outlook for companies also improved again this month. The upswing in the German economy is gaining impetus”.

     

    Overall, there is a chance of EUR/JPY moving higher towards 120.00 or 120.10, but it might face resistances near the stated levels.

     

    EUR/JPY Technical Analysis

    The Euro was under a lot of pressure, as it dived below 120.50 support against the Japanese yen. The EUR/JPY pair later extended declines below 120.00 and traded as low as 119.40. Then, a recovery was initiated, which failed near the 100 hourly simple moving average at 120.26, and the pair started a downside move.

     

    EUR/JPY Technical Analysis Euro Yen

     

    During the downside move, the pair broke an ascending channel support at 120.0 for a move towards 119.60. It traded as low as 119.54 and currently correcting higher. It has moved above the 23.6% Fib retracement level of the last decline from the 120.26 high to 119.54 low.

     

    However, it is likely to face sellers near the broken channel at 120.00. Moreover, the 50% Fib retracement level of the last decline from the 120.26 high to 119.54 low might also act as a hurdle on the upside. Last, but not the least, the most important resistance is still near the 100 hourly simple moving average at 120.20-102.30.

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  • EUR/GBP – Euro Facing Crucial Resistance at 0.8400 Vs Pound

    EUR/GBP – Euro Facing Crucial Resistance at 0.8400 Vs Pound

    • – The Euro is currently recovering from the 0.8350 level against the British Pound.
    • – The EUR/GBP is heading higher, but most likely to face sellers near 0.8400-10.
    • – The German business sentiment index released by the CESifo Group posted an increase from the last reading of 110.4 to 111.0 in Dec 2016.

     

    German IFO Business Climate Index

    The Euro zone saw today the release of the German business sentiment index by the CESifo Group. It is an important indicator of current conditions and business expectations in Germany, and was forecasted to rise from 110.4 to 110.8 in Dec 2016.

     

    However, the result was positive, as there was a rise to 111.0 in Dec 2016. It is the highest level since February 2012. The German IFO Expectations also posted a better than forecast reading of 105.6, up from the last reading of 105.5.

     

    The report stated that “In the manufacturing sector, the index rose. Assessments of both the current business situation and expectations improved. Demand picked up significantly and the order back log grew. More companies plan to ramp up production in the months ahead as a result”.

     

    Overall, the result was positive, and helped the Euro to gain ground. However, the EUR/GBP pair upside won’t be easy, as there is a major hurdle waiting on the upside at 0.8400-10.

     

    EUR/GBP Technical Analysis

    The Euro after trading towards the 0.8350 level against the British Pound found support in the form of a bullish trend line on the 4-hours chart. The EUR/GBP pair is currently recovering, and heading towards a major resistance confluence area at 0.8400-10.

     

    EUR/GBP Technical Analysis Euro Pound

     

    The stated resistance is formed via two bearish trend lines on the H4 chart. Moreover, the 38.2% Fibonacci retracement level of the last decline from the 0.8571 high to 0.8331 low is also just above the confluence area.

     

    The last but not least, the 100 simple moving average is also above the highlighted trend lines. So, we can say that there is a major hurdle for the pair at 0.8400. It won’t be easy for the pair to break it. On the downside, the bullish trend line is a short-term support. Overall, we may soon witness a break either lower or higher in EUR/GBP.

     

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