Fundamental Analysis

FX Setups for the Week of February 11, 2019

FX Setups for the Week of February 11, 2019

– DailyFX Quarterly Forecasts have been up to date for Q1, and can be found straight from the next hyperlink: DailyFX Buying and selling Guides, Q1 Forecasts.

– For buying and selling concepts, please take a look at our Buying and selling Guides. And should you’re in search of one thing extra interactive in nature, please take a look at our DailyFX Stay webinars.

– Should you’d like extra coloration round any of the setups beneath, take part our stay DailyFX webinars every week, set for Tuesday and Thursday at 1PM Japanese Time. You may join every of these periods from the beneath hyperlink:

Tuesday: Tuesday, 1PM ET

Thursday: Thursday 1PM ET

Do you need to see how retail merchants are at present buying and selling the US Greenback? Try our IG Shopper Sentiment Indicator.

US Greenback Bulls Proceed to Run

It was a large week for US Greenback bulls after the foreign money set a higher-low final week after the FOMC fee resolution. Consumers have remained in-control for a lot of the time since, and already USD is making a quick method in direction of the 2019 excessive across the 97.00-handle. A pullback that developed this week off of month-to-month highs was stopped brief, with patrons returning to indicate assist across the 96.47 stage, which is the 23.6% Fibonacci retracement of the post-Election transfer in DXY.

For subsequent week, the financial calendar brings high-impact US information on Wednesday (CPI) and Friday (Advance Retail Gross sales, U of Mich Client Sentiment). This will help to maintain the Greenback’s current bullish development in-focus, and beneath I have a look at two setups designed for subsequent week based mostly across the US Greenback.

US Greenback 4-Hour Worth Chart

us dollar usd four hour price chart

Chart ready by James Stanley

Bullish USDJPY on a High-side Break By 110.10

It’s already been a busy yr for USD/JPY. The Japanese Yen got here into the yr with a major surge of power, with USD/JPY leaping all the way in which down beneath the 105.00 psychological stage after buying and selling above 111.00 only a week earlier. However calm quickly prevailed and Yen-sellers returned, serving to the pair to get better.

The 109.67-110.00 resistance zone checked out final month quickly got here again into play. This space held three separate topside advances within the month of January, and because the door opened into February, 110.00 continued to assist maintain the highs within the pair. As checked out in yesterday’s webinar, a spread had even developed inside that resistance zone, indicating the bulls are persevering with to persist regardless of the continued protection of 110.00 from sellers.

A topside break by way of this zone subsequent week, with costs pushing as much as contemporary two-month highs can re-open the door to bullish methods within the pair. The previous month-plus of value motion has inbuilt an ascending triangle formation on the chart; which is able to typically be approached in a bullish method with the expectation for the motivation that’s introduced bulls in at higher-lows to ultimately take out the horizontal resistance that’s held the highs.

Subsequent attainable areas of resistance following a break to contemporary highs can be 110.86 (61.eight% Fibonacci retracement), 111.40 (late-December swing-highs) and 112.34 (76.four% Fibonacci retracement.

USD/JPY 4-Hour Worth Chart

usdjpy usd/jpy four hour price chart

Chart ready by James Stanley

Bearish USDCAD on Maintain Beneath 1.3326

It was a busy week in USD/CAD, because the pair firmed after final Friday’s assist inflection on the 1.3066 Fibonacci stage. As Oil costs dropped, CAD weakened, and this propelled costs in USDCAD back-above the 1.3300 deal with on this week’s commerce, albeit briefly. Canadian employment numbers on Friday morning introduced a little bit of power again into the foreign money, however USD/CAD sellers had been thwarted at the assist zone checked out in yesterday’s webinar that runs from 1.3235 as much as 1.3259.

Taking a step again, ought to resistance maintain at this morning’s highs, this is able to open the door for a continuation of the lower-lows and lower-highs that printed within the pair all through this yr. This will preserve the door open for bearish methods with the subsequent potential areas of assist round 1.3180, 1.3132, 1.3065 after which the psychological stage of 1.3000.

USDCAD Eight-Hour Worth Chart

usdcad usd/cad eight hour price chart

Chart ready by James Stanley

To learn extra:

Are you in search of longer-term evaluation on the U.S. Greenback? Our DailyFX Forecasts have a bit for every main foreign money, and we additionally supply a plethora of sources on USD-pairs akin to EUR/USD, GBP/USD, USD/JPY, AUD/USD. Merchants also can keep up with near-term positioning through our IG Shopper Sentiment Indicator.

Foreign exchange Buying and selling Assets

DailyFX gives a plethora of instruments, indicators and sources to assist merchants. For these in search of buying and selling concepts, our IG Shopper Sentiment exhibits the positioning of retail merchants with precise stay trades and positions. Our buying and selling guides carry our DailyFX Quarterly Forecasts and our High Buying and selling Alternatives; and our real-time information feed has intra-day interactions from the DailyFX workforce. And should you’re in search of real-time evaluation, our DailyFX Webinars supply quite a few periods every week in which you’ll be able to see how and why we’re taking a look at what we’re taking a look at.

Should you’re in search of instructional data, our New to FX information is there to assist new(er) merchants whereas our Traits of Profitable Merchants analysis is constructed to assist sharpen the ability set by specializing in threat and commerce administration.

— Written by James Stanley, Strategist for

Contact and observe James on Twitter: @JStanleyFX

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