Never miss a story from Paul Robinson

Subscribe to recieve updates on publications
Please enter valid First Name
Please fill out this field.
Please enter valid Last Name
Please fill out this field.
Please enter valid email
Please fill out this field.
Please select a country

I’d like to receive information from Daily FX and IG about trading opportunities and their products and services via email.

Please fill out this field.

Your Forecast Is Headed to Your Inbox

But don't just read our analysis - put it to the rest. Your forecast comes with a free demo account from our provider, IG, so you can try out trading with zero risk.

Your demo is preloaded with £10,000 virtual funds, which you can use to trade over 10,000 live global markets.

We'll email you login details shortly.

Learn More about Your Demo

You are subscribed to Paul Robinson

You can manage you subscriptions by following the link in the footer of each email you will receive

An error occurred submitting your form.
Please try again later.

The euro has declined in-line with expectations, but now falling into a support zone, caution warranted on fresh shorts. A couple of euro crosses worth checking out. AUD/NZD lower out of H&S pattern. Crude oil breaking support levels, broader move lower may be in store.

Technical Highlights:

  • EUR/USD trading down into top of support area, cautious on shorts
  • EUR/GBP wedge forming, EUR/JPY at risk of losses further into Q4 range
  • AUD/NZD snaps neckline of H&S, swift rejection yesterday
  • Crude oil broader decline may be underway, watching next line of slope support

For longer-term technical and fundamental analysis, and to view DailyFX analysts’ top trading ideas for 2018, check out the DailyFX Trading Guides page.

EUR/USD trading down into top of support area, cautious on shorts

Coming into this week and reiterated in Wednesday’s webinar, we were looking for further weakness out of the euro. But with momemtum slowing at slope support dating back to May 2016 and the trend-line from December just a shade lower, caution on new shorts looks warranted at this juncture. A break below, however, will bring support just below 12100 into view.

EUR/USD Daily Chart

EUR/USD daily price chart

EUR/GBP wedge forming, EUR/JPY at risk of losses further into Q4 range

EUR/GBP continues to construct a multi-month wedge (not the cleanest pattern, but…), and while it may not trigger next week, it could break down any time soon. Or, for that matter, break the top-side trend-line which has kept a tight lid on it since October. The thinking is it will lead to a continuation from the August high, but patience will need to be applied first before becoming too aggressive on that idea.

EUR/GBP Daily Chart

EUR/GBP daily price chart with wedge forming

EUR/JPY has once again fallen into the range which dominated trade during Q4. It broke the trend-line from August yesterday and is currently retesting it. A rejection on the retest will have focus shifted on the bottom off the range around 13150.

Struggling right now? Check out this guide, Building Confidence in Trading.

EUR/JPY Daily Chart

EUR/JPY daily price chart

AUD/NZD snaps neckline of H&S, swift rejection yesterday

AUD/NZD has been on our radar in recent weeks with the development of a ‘head-and-shoulders’ pattern. It broke the neckline earlier this week, put in a strong rejection bar yesterday post-RBNZ. Looking for follow-through to the downside with ~10500 targeted in the intermediate-term. (Speaking of H&S patterns, the EUR/AUD idea posted the other day never triggered the neckline, so no trade.)

AUD/NZD Daily Chart

AUD/NZD daily price chart with head-and-shoulders pattern

Crude oil broader decline may be underway, watching next line of slope support

Crude oil snapped a slope earlier this week dating back to July. We’ve been discussing it lately as important support, and with its break on Monday came a rush of selling. Two trend-lines from the fall have come under fire, and another slope from July is eyed as the next level of support. That level currently clocks in around the mid-58s.

The record long positioning in the futures market (734k) could be becoming a factor as the market appears to have gotten ahead of itself and now unwinding. We’ll discuss the technical and positioning developments further on Tuesday at 10 GMT in the weekly indices/commodities webinar.

Crude Oil Daily Chart

US crude oil daily price chart with slopes

Trader Resources

Whether you are a new or experienced trader, we have several resources available to help you; indicator for tracking trader sentiment, quarterly trading forecasts, analytical and educational webinars held daily, trading guides to help you improve trading performance, and one specifically for those who are new to forex.

---Written by Paul Robinson, Market Analyst

To receive Paul’s analysis directly via email – SIGN UP HERE

You can follow Paul on Twitter at @PaulRobinsonFX