Foreign Exchange

No sooner had markets given a sigh of relief over Italy’s woes, Powell comes out swinging to rejuvenate broad dollar buying and push EUR/USD below key support. Since the previous analysis we can safely confirm that the neckline is broken and the head and shoulders pattern has been decapitated. Now trading beneath 1.1510 resistance (previously support), momentum favours […]

Gold has spent the best part of the year under heavy selling pressure, but several clues point towards its potential to break this trend. We can see on the weekly chart that bears have had a field day since the 2018 high. Most notably its fall from 1365.01 to 1160.25 showed little in the way […]

An increasingly bullish structure and break to a 4-year high puts $80 within easy reach. Yet the cluster of resistance around this level and the fact that large speculators appear less eager to wade in at the highs is something to keep in mind as it makes its way to target. Faraday Research offers real […]

Here’s the market outlook for the week: EURUSD Dominant bias: Bearish This pair has become bearish, especially in the short-term. Last week, price went sideways from Monday to Wednesday and then dropped sharply on Thursday and Friday. The drop was 170 pips, and it was enough to bring about a near-term bearish outlook on the […]

EUR/USD broke out of a 4-day consolidation pattern earlier today. Whilst the direction was against bullish wishes, markets are now fully focused on the neckline of a 10-week reversal pattern. An inverted head and shoulders on the daily chart projects an approximate target near the May 2018 low. That is, of course, if it doesn’t […]

AUD’s 2018 bearish channel continues to hold and is likely to tempt bears with a test of its upper trendline. Yet, with bullish technicals appearing on the weekly chart whilst major commodity FX hits a record level of short exposure, we’re also keeping an eye for a breakout of Aussie’s ‘channel of the year’. Faraday […]

Here’s the market outlook for the week: EURUSD Dominant bias: Bullish The current bias on the market is bullish, but the bullishness is not very strong. Price consolidated in the first few trading days of last week, and went higher on Thursday. The outlook on the market remains bullish for this week, and thus, buying […]

Brexit shenanigans drove Sterling broadly lower on Friday. We see the potential for these declines to extend further, particularly against the Swiss franc. Among GBP pairs it was GBP/CHF which fell the hardest on Friday, closing the session -1.5% lower and suffering its most bearish day in 10 months. Given that GBP/CHF has also been the […]

EUR/USD has carved out a clear inverted head-and-shoulders pattern over the last couple of months – see what resistance levels we’re watching if the pattern leads to a bigger rally in the coming weeks! Faraday Research offers real time FX and Equity trade signals from qualified analysts. Click here to try us free.

After rallying nearly 4% since the 83.76 low it’s just the May high which stands in its way to clearer skies. And whilst the daily trend structure has appeared erratic in recent times, we see a few clues which hint at a bullish breakout. Since crashing to the 2018 low, three prominent higher lows have formed to show […]