Home Forex Forex Market Analysis Forex and Indices Daily Update – May 16th, 2018

Forex and Indices Daily Update – May 16th, 2018

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Hot Topics:

  • Currencies against the Dollar could be completing internal cycles.
  • EURAUD – Closing partials and moving SL.
  • GBPNZD – More falls are expected.
  • Indices continue consolidating.

Currencies against the Dollar could be completing internal cycles.

Forex and Indices Market Update: EURUSD continues to move below 1.18 and bouncing within the potential reversal zone. However, it still shows no signs of changing the trend. It should be noted that the Dollar Index has completed an internal cycle which should begin to correct soon. For the pair, we maintain a neutral position.



In the same way, GBPUSD continues to move within a sideway range towards the zone of a potential reversal from where we expect it to begin to bounce.



Without significant changes, the Swiss Franc (USDCHF) continues moving sideways around the parity level; the current movement makes us speculate that there could be a limited upward move as a false breakout.


EURAUD – Closing partials and moving SL.

Forex and Indices Market Update: The EURAUD cross has reached the first level of the potential reversal zone at 1.57236, fulfilling the conditions of the completion of an internal cycle. Additionally, EURAUD has touched the long-term uptrend line and would be forming a bearish channel structure. The bearish bias persists, and the price could reach 1.5610. We still maintain our short positions and move the invalidation level to 1.5888. Now is time to make partial closes in open trades.



GBPNZD – More falls are expected.

Forex and Indices Market Update: The GBPNZD cross is moving within a consolidation structure with a bullish bias. Our outlook is that the price could make a new low in areas from 1.9388 to 1.93049, this area coincides with the long-term trend line. In case of breaking below 1.93, we could see more falls with a target at 1.905 level.



Indices continue consolidating.

Forex and Indices Market Update: The German DAX 30 index continues moving in a range between 12,918 and 13,034 points. We expect a new upward movement to complete the ascending wedge structure that could be in the form of a false breakout. The AO oscillator is showing a bearish divergence, which indicates a price exhaustion signal which could support our bullish target forecasted at 13,250 points.


 

The FTSE 100 shows the same situation; the British index is also consolidating in the upper part of the ascending wedge. For the moment we remain neutral in indices expecting a new trading opportunity.



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