USDJPY remains inside bullish channel despite end of the week pull back

USDJPY is holding above 108 respecting the medium-term bullish channel since the end of August. Price should continue higher as long as we trade above last week's lows. This is still considered as a buying opportunity and a corrective pull back inside a bullish trend.


Green lines - bullish channel

Blue line - long-term resistance trend line

USDJPY is bouncing off the lower channel boundary. Support is key at 108 area and as long as price is above we remain bullish looking for a move closer to the long-term resistance trend line at 110.50. Important resistance level that must be broken in order to push closer to 110.50 is at 109.10.


Green rectangle - major support area

Green line - support trend line

Red arrows - reversal points in time inside the green rectangle

Blue line - long-term resistance

USDJPY has formed a major low and important support area around 104. Price as expected has moved towards 108.50 since then and back at that time we were targeting the blue downward sloping trend line. We continue to see the blue trend line as the most probable target. Price continues to make higher highs and higher lows. This week's low is very important for bulls as they do not want to see a weekly close below it, in order to remain in control of the short-term trend.

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USDCAD back tests broken long-term channel

USDCAD has bounced from 1.3050 to 1.3150 but I believe that most probably this is just a back test of the break down area. I expect prices to get rejected at current levels and I continue to be bearish USDCAD looking for a move below 1.30.


Red line - major long-term support

Orange rectangle - resistance (previous support)

USDCAD has pulled back towards the broken red trend line support, now resistance. Price has also entered the orange area which was once support and now resistance. Price has retraced 50% of the last move down and now we see some signs of rejection.


Red line -long-term support trend line

The breaking below this long-term weekly trend line support is big news for USDCAD. This back test is also very important because it will clear things up. A rejection will increase the chances that the break down is real and not a fake one. Price moving below 1.3050 will also increase chances of a move towards 1.28 and lower as this is where the next major support area is found.

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EURUSD reverses short-term trend as expected respecting support at 1.11-1.1070.

EURUSD was expected to move higher from the key support of 1.1070. Price has managed to recapture 1.11 and is now trading above 1.1150. EURUSD remains inside the short-term bullish channel targeting 1.12 to 1.1250.


Black line - support trend line

Red line -RSI resistance

EURUSD continues to make higher highs and higher lows in the 4 hour chart. the RSI has broken its resistance trend line. We find support at 1.1130 which was short-term resistance and next at 1.1073 this week's lows.


Green lines - bullish channel

As EURUSD continues to trade inside the bullish short-term channel we focus on the next Fibonacci resistance at 1.12 (61.8% retracement) and at 1.1250-1.1260 (upper channel boundary). As long as price is inside the channel we remain bullish. Price reversed to the upside from 1.1070 and this is where bulls should protect their profits.

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Weekly Gold analysis

Gold price started the week on a negative note reaching $1,483 but reversing its trend and recapturing the key pivot level of $1,500. Gold price has been moving around $1,500 since late July but so far it has not managed to break out of the $1,530-$1,480 trading range.


The weekly chart shows how price is supported each time it moves below $1,500. This time we might also have a new weekly high relative to the past 4 weekly closing prices. This could be a positive signal for the next couple of weeks and a rally to $1,600 could be seen. Key support remains at $1,500-$1,490.

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