Best of the Week
Most Popular
1. Stock Markets and the History Chart of the End of the World (With Presidential Cycles) - 28th Aug 20
2.Google, Apple, Amazon, Facebook... AI Tech Stocks Buying Levels and Valuations Q3 2020 - 31st Aug 20
3.The Inflation Mega-trend is Going Hyper! - 11th Sep 20
4.Is this the End of Capitalism? - 13th Sep 20
5.What's Driving Gold, Silver and What's Next? - 3rd Sep 20
6.QE4EVER! - 9th Sep 20
7.Gold Price Trend Forecast Analysis - Part1 - 7th Sep 20
8.The Fed May “Cause” The Next Stock Market Crash - 3rd Sep 20
9.Bitcoin Price Crash - You Will be Suprised What Happens Next - 7th Sep 20
10.NVIDIA Stock Price Soars on RTX 3000 Cornering the GPU Market for next 2 years! - 3rd Sep 20
Last 7 days
Premium Bonds Good, Bad or Ugly Investment? Here's What Return (Prize Wins) to Expect - 5th Dec 20
How to accomplish a technical analysis with the Forex - 5th Dec 20
What is life insurance and what are the benefits of having it? - 5th Dec 20
Pre-COVID US Economy Wasn’t All That Great Either - 4th Dec 20
Bitcoin Breath Taking Surge - Crypto Trading Event - 4th Dec 20
Platinum Begins A New Rally – Gold & Silver Will Follow - 4th Dec 20
Don't Let the Silver (and Gold) Bull Shake You Off! - 4th Dec 20
Stronger Risk Appetite Sends Gold below $1,800 - 4th Dec 20
A new “miracle compound” is set to take over the biotech market - 4th Dec 20
Eiro-group Review –The power of trading education - 4th Dec 20
Early Investors set to win big as FDA fast-tracks this ancient medicine - 3rd Dec 20
New PC System Switch On, Where's Windows 10 Licence Key? Overclockers UK OEM Review (5) - 3rd Dec 20
Poundland Budget Christmas Decorations Shopping 2020 to Beat the Corona Economic Depression - 3rd Dec 20
What is the right type of insurance for you, and how do you find it? - 3rd Dec 20
What Are the 3 Stocks That Will Benefit from Covid-19? - 3rd Dec 20
Gold & the USDX: Correlations - 2nd Dec 20
How An Ancient Medicine Is Taking On The $16 Trillion Pharmaceutical Industry - 2nd Dec 20
Amazon Black Friday vs Prime Day vs Cyber Monday, Which are Real or Fake Sales - 1st Dec 20
The No.1 Biotech Stock for 2021 - 1st Dec 20
Stocks Bears Last Chance Before Market Rally To SPX 4200 In 2021 - 1st Dec 20
Globalists Poised for a “Great Reset” – Any Role for Gold? - 1st Dec 20
How to Get FREE REAL Christmas Tree 2020! Easy DIY Money Saving - 1st Dec 20
The Truth About “6G” - 30th Nov 20
Ancient Aztec Secret Could Lead To A $6.9 Billion Biotech Breakthrough - 30th Nov 20
AMD Ryzen Zen 3 NO UK MSRP Stock - 5600x, 5800x, 5900x 5950x Selling at DOUBLE FAKE MSRP Prices - 29th Nov 20
Stock Market Short-term Decision Time - 29th Nov 20
Look at These 2 Big Warning Signs for the U.S. Economy - 29th Nov 20
Dow Stock Market Short-term and Long-term Trend Analysis - 28th Nov 20
How To Spot The End Of An Excess Market Trend Phase – Part II - 28th Nov 20
BLOCKCHAIN INVESTMENT PRIMER - 28th Nov 20
The Gold Stocks Correction is Maturing - 28th Nov 20
Biden and Yellen Pushed Gold Price Down to $1,800 - 28th Nov 20
Sheffield Christmas Lights 2020 - Peace Gardens vs 2019 and 2018 - 28th Nov 20

Market Oracle FREE Newsletter

FIRST ACCESS to Nadeem Walayat’s Analysis and Trend Forecasts

British Pound, Canadian Dollar, Russian Ruble and Euro Show Massive Volatility / Rotation Setup

Currencies / Forex Trading Jul 26, 2018 - 01:10 PM GMT

By: Chris_Vermeulen

Currencies

Our research team has been watching the foreign currency markets with great interest.  Recently, the strength of the US Dollar has put extended pressures on many foreign currencies.  The recent crash of the Chinese Yuan has alerted many traders to the concerns that China could be edging over the precipice in terms of debt and credit market collapse.

As traders/investors, we need to understand how these currencies move, and future moves may drive the global equity markets to new highs or lows.  Let’s take a brief look at how some of our proprietary indicators are set up on these Weekly charts.


Weekly British Pound chart

This Weekly British Pound chart showing our proprietary Fibonacci Price Modeling system presents a very clear picture that the current trend is Bearish and that price is contracting.  The Weekly Fibonacci price modeling system functions as an adaptive price modeling system – allowing the price rotations (peaks and valleys – highlighted by the yellow, cyan, magenta and white markers on the chart) to develop into a concise and efficient current model of price expectations and projections.  The multiple price projection levels (the six projected lines to the right of the current price bar) show us where price may attempt to target should a breakout move happen.

Notice that the current British Pound price has reached and stalled near the 1.3100 level – which is exactly where two of our Fibonacci price modeling system has predicted with the Red and Grey projection levels?  Also, notice how the Blue and Cyan projected levels are aligning near 1.3775?  This would be a proper expected price level should price find some support near the 1.3000 level and attempt a short recovery.

As get further into these charts, please understand the key elements of these charts and what they are attempting to illustrate to all of us.  With each pivot high or low, this price modeling system identifies a “trigger price level” that is used to confirm a trend reversal (if it happens) as well as to identify key future support/resistance.  These are drawn as Green and Red horizontal lines.  You’ll notice a Green trigger price level near the current price bar – this is the “upside price trigger level” that would have to be breached if we were to see any further upside price advance.  As long as price stays below this level, we should continue to expect a downside price move with a strong potential for new lows.

Summarizing this charts analysis, the current trend is Bearish.  The current bullish trigger level is near 1.3600.  Price is trending lower from a previous Bearish price trigger level near 1.4240.  Price has reached the two (Red & Grey) projected price levels which means we should expect some price consolidation near these levels before establishing a new price trend (extending lower or rotating higher).  Recent, new price bar lows show a very strong potential for further downside price activity.  At this point, we see that support from a previous bottom, near 1.3060, will likely cause the price to stall near this level.  We believe the price will continue to fall below the 1.3000 eventually as the strength of the US Dollar continues to push higher and the Brexit issues continue.  The British Pound could fall well below 1.2500 before finding real support.  Wait for this consolidation period to end and watch for lower prices to continue.

Weekly Canadian Dollar chart

This Weekly Canadian Dollar chart below shows a very interesting setup with our proprietary price modeling system.  Notice the wide range between the trigger price levels (Green and Red) near the right edge of this chart?  This extended range of the trigger price levels happens when the adaptive price modeling system finds price trend rotation.  Previously, on this chart, we can see the trigger price levels were closer to price and within rotational ranges – the most recent breached trigger level being a Red (Bearish) trigger – indicating the start of a new bearish trend near February 5, 2018.

At this point, should price fall below 0.7450, we should expect price to continue to drop towards 0.7250.  Upside resistance should be near the Cyan projected price level – near 0.7850.  Unless the Canadian Dollar finds support near 0.7500 and rotates higher to breach 0.81875 – this is nothing but extended price rotation.  Typically, as price sets up an extended Top or Bottom, the trigger price levels will eventually tighten to establish a breakout trend setup.  Right now, the extended ranges of these trigger levels is showing us that volatility and price rotation should be expected and the downward sloping Moving Average level will likely operate as a key resistance zone.  The YELLOW markers at the bottom of the chart show us that price range is expanding and volatility is increasing.  We could see some bigger swings in the Canadian Dollar over the next few weeks and months – but the trend is still bearish.

Weekly Euro chart

This Weekly Euro chart shows a more traditional price rotation setup with our Fibonacci price modeling system.  Notice how the trigger price levels are very narrow and close to the current price.  You’ll also notice the Cyan price trend indicator, near the bottom of the chart, that is indicating that price range is contracting.  The two price trigger levels (Red and Green) provide very clear breakout trigger levels (bullish near 1.1913 & bearish near 1.1687).  The most recent trigger level to be breached was the Bearish level near 1.2200.  A recent low price rotation has established a new low price pivot that is projecting much higher price projection points.  Additionally, a more recent high price rotation has established new lower price projection points.

This sideways price rotation will be broken and a new trend will be established in time.  At this point, we know the 1.1913 level is the bullish trend trigger point and the 1.1687 level is the bearish trend trigger point. Price trend is still bearish and any lower price breakdown below 1.1576 would be a strong indication that price is breaking below current support and should attempt to move to near 1.1000.  To summarize, the Euro appears to be under extended pressure and any price breakdown could be a great short for traders.

Russian Ruble Weekly chart

Lastly, this Russian Ruble Weekly chart shows, again, price rotation and volatility.  Notice how the bullish trigger price levels have been expanding throughout this sideways price rotation for the past year or longer?

As we stated early, the adapting modeling component of our proprietary Fibonacci price modeling system identified this rotation as “extended price congestion” and attempts to identify broader market breakout levels as a means to confirm a true change in price trend.  The most recent bearish trigger price level was breached on April 9, 2018.  Price is trending lower/bearish and the price trend indicator near the bottom is showing yellow – price volatility is expanding.  We should expect further downside price moves with expanded volatility.  Any price move below 0.01520 will indicate a very strong downside price move with the potential for price to reach 0.01250.

Concluding Thoughts:

Overall, we need to remember the recent political, economic and geopolitical conundrums are reflecting in expectations within global economies and currencies to be put under greater concerns.  What was once a given, that the world would continue to operate without much disruption in the global balance of thing, is now open for debate.  We are watching global concerns and liabilities as a result of China’s recent downturn and currency devaluation reflect in additional concerns throughout the global currency markets.  We have to be aware that these issues typically don’t end quickly or without some form of government intervention.  This means we may have quite a bit of time to play these moves and find good trades.

Right now, the Russian Ruble, British Pound and the Canadian Dollar appear to be poised for a breakdown in prices in the immediate future – breaking through support and possibly dropping to recent historical lows.  The Euro is setting up for a breakout/breakdown move with a very narrow trigger price level range.  The Euro may follow rally, briefly, if the US Dollar retraces a bit from current levels.  Remember, these are weekly chart and help to understand the broader price trend.  A breakdown in the Russian Ruble, British Pound and Canadian Dollar would likely coincide with a rally in the US Dollar and possibly the Euro.  Therefore, watch for weakness in these markets and strength in the US Dollar as these moves happen.

If you’ve been follow our research recently, you already know why our members and followers stay dedicated to our team and our services.  We have called nearly every move in the markets over the past 8 months perfectly.  We urge you to visit www.TheTechnicalTraders.com to read some of our most recent research and to stay ahead of the markets by joining our membership services where we provide access to our most advanced predictive analysis tools and research.  You owe it to yourself to have a dedicated team of professionals that can help you find success and stay ahead of the markets if you want to build greater success in your future.

53 years experience in researching and trading makes analyzing the complex and ever-changing financial markets a natural process. We have a simple and highly effective way to provide our customers with the most convenient, accurate, and timely market forecasts available today. Our stock and ETF trading alerts are readily available through our exclusive membership service via email and SMS text. Our newsletter, Technical Trading Mastery book, and 3 Hour Trading Video Course are designed for both traders and investors. Also, some of our strategies have been fully automated for the ultimate trading experience.

Get our advanced research and market reporting, Daily market videos, detailed trading signals and join the hundreds of other traders that follow our research every day and profit.

Chris Vermeulen
www.TheTechnicalTraders.com

Chris Vermeulen has been involved in the markets since 1997 and is the founder of Technical Traders Ltd. He is an internationally recognized technical analyst, trader, and is the author of the book: 7 Steps to Win With Logic

Through years of research, trading and helping individual traders around the world. He learned that many traders have great trading ideas, but they lack one thing, they struggle to execute trades in a systematic way for consistent results. Chris helps educate traders with a three-hour video course that can change your trading results for the better.

His mission is to help his clients boost their trading performance while reducing market exposure and portfolio volatility.

He is a regular speaker on HoweStreet.com, and the FinancialSurvivorNetwork radio shows. Chris was also featured on the cover of AmalgaTrader Magazine, and contributes articles to several leading financial hubs like MarketOracle.co.uk

Disclaimer: Nothing in this report should be construed as a solicitation to buy or sell any securities mentioned. Technical Traders Ltd., its owners and the author of this report are not registered broker-dealers or financial advisors. Before investing in any securities, you should consult with your financial advisor and a registered broker-dealer. Never make an investment based solely on what you read in an online or printed report, including this report, especially if the investment involves a small, thinly-traded company that isn’t well known. Technical Traders Ltd. and the author of this report has been paid by Cardiff Energy Corp. In addition, the author owns shares of Cardiff Energy Corp. and would also benefit from volume and price appreciation of its stock. The information provided here within should not be construed as a financial analysis but rather as an advertisement. The author’s views and opinions regarding the companies featured in reports are his own views and are based on information that he has researched independently and has received, which the author assumes to be reliable. Technical Traders Ltd. and the author of this report do not guarantee the accuracy, completeness, or usefulness of any content of this report, nor its fitness for any particular purpose. Lastly, the author does not guarantee that any of the companies mentioned in the reports will perform as expected, and any comparisons made to other companies may not be valid or come into effect.

Chris Vermeulen Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules