Incredible drop on the Pound versus the Yen

The Pound has been weakening versus most of its main counterparts, but today it accelerates its bearish momentum versus the Yen and it keeps breaking round number levels. So far the pair has fallen more than 400 pips during today’s session and reaches a low at the 185.00 level. When the market is trending strongly, the best thing to do is to wait for the pullbacks to enter in the direction of the main trend or impulse. The 185.00 level may act as support, but the bearish momentum is still in place and the price may try to break it and go visit its next round number support level at the 184.00.

Possible short entry on the EUR/JPY

The Euro has retraced quite well versus the Yen and it is reaching the 135.00 level from where it may try to bounce to the downside. It was expected to see a retracement on this pair, due to the fact that it was dropping rapidly since the beginning of today’s session. But once the price reached the 134.00 zone, it consolidated there for a while and formed an inverted Head-and-Shoulders pattern on the 15 minute chart. The pattern was completed perfectly and the price changes direction to the upside, now the 135.00 level may act as resistance.

Breakout and pullback on the GBP/USD

The Pound versus the Dollar has been very volatile since last week. At the beginning of today’s trading session the price started oscillating around Friday’s low at the 1.5562. The price finally gained some bullish momentum and broke above the 1.5600 level. On the one hour chart of the GBP/USD we can see that the price has retraced to the 1.5600 level, which is currently acting as a support. If the price bounces from that level to the upside, then the breakout and pullback pattern will be completed and the pair may try to rally to the 1.5643 level, which is Friday’s high.

The USD/CAD is not able to break above the 1.2600 level

The US Dollar tries to regain some ground versus the Canadian Dollar and it goes back up to the 1.2600, but it couldn’t break above that level. The Canadian Dollar has a positive correlation with oil, and because oil has been dropping, that’s why this pair has been rising. If the price of oil goes back up, then the pair may bounce from this zone to the downside and the 1.2421 or the 1.2400 could become a good support.

Important notice for ActivTrades clients

The uncertainty surrounding the negotiations with Greece still persist, because the Hellenic Republic has not been able to come to an agreement with its creditors. There is a referendum scheduled for this Sunday in Greece to have its people decide if they accept or not the terms imposed by the European Central Bank, The International Monetary Fund, and the European Commission. These three entities are Greece’s main creditors. The referendum on Sunday may cause a lot of volatility in the markets, especially on the Euro crosses and other instruments. That is why ActivTrades has decided to raise its margin requirements on certain trading instruments in order to protect its clients from adverse market reactions. The complete notice may be found at:

http://view.news.activtrades.info/?j=fec6167777610474&m=fe9112727164037477&ls=fe3315717d66077d721674&l=ff5a137772&s=fe551277766c0d757414&jb=ffcf14&ju=fe681570716100787615&r=0

FOREX: EURAUD EURCAD EURCHF EURGBP EURHUF EURJPY EURNOK EURNZD EURPLN EURSEK EURSGD EURTRY EURUSD

INDICES: Blg20Jul15 Bra50Aug15 Esp35Jul15 Euro50Sep15 Fra40Jul15 Ger30Sep15 GerTecSep15 HKIndJul15 Ind50Jul15 Ita40Sep15 Jp225Sep15 Neth25Jul15 Nor25Jul15 Swi20Sep15 UK100Sep15 Usa500Sep15 UsaIndSep15 UsaRusSep15 UsaTecSep15 UsaVixJul15 USDIndSep15

FINANCIALS EuBblSep15 EuBundSep15 EuStzSep15 UsaTBSep15 UsaTNSep15

METALS: Gold, Palladium, Platinum, and Silver. 

Possible hammer formation on the NZD/USD

The Kiwi versus the Greenback breaks below the 0.6700 level, but it couldn’t stay below that level and goes back up, leaving behind a relatively long lower shadow. We are on the Daily chart and if this Friday’s candle closes bullish, then it will confirm the hammer formation, which is a bullish reversal pattern. But a change in trend on the pair would not be confirmed until the price breaks above the trendline or above the 0.6900 level. 

The GBP/USD nears the 1.5600 level

The Pound versus the Dollar had been consolidating for the past few days between the 1.5700 level as support and the 1.5800 level as resistance. For today the Dollar strengthen versus its main counterparts and that is why we see a breakdown below the 1.5700 level and yesterday’s low. On the one hour chart of the GBP/USD we can see how the bearish momentum accelerated once the price broke below the 1.5700 level and it is currently trying to visit the 1.5600 level. If there is a visit to the 1.5600 level, then the price may try to stall there or even bunce to the upside, but if the Dollar keeps gaining ground, then the bearish trend may continue.