Categories
Forex Market Analysis

USD/CAD Approaching Trendline Resistance – Can We Setup a Sell Limit?

The USD/CAD pair was closed at 1.27385 after placing a high of 1.28288 and a low of 1.27064. The USD/CAD pair fell a day before after placing gains for three consecutive days amid the broad-based US dollar weakness and the rising crude oil prices. On Thursday, the USD/CAD pair fell to its lowest since April 2018 after the US dollar became weak across the board. The greenback suffered as its rival currency raised on Thursday amid the release of further stimulus measures from ECB. 

The ECB extended its bond-buying scheme and issued further stimulus measures on Thursday to support the Eurozone economy from the coronavirus pandemic. The additional support from ECB raised the hopes of the quick economic recovery of the Eurozone economy. It supported the single currency Euro that ultimately added weight to the US dollar. The US dollar was also under pressure as Congress has still not issued a second round of stimulus packages due to Democrats and Republicans’ stalemate over the size of the package. The weak US dollar added weight to the USD/CAD pair on Thursday.

Meanwhile, the Crude oil prices rose by 4.4% to above the $47.7 level on Thursday, and it was the highest level in months. The rising risk sentiment in the market related to vaccine optimism and quick global economic recovery with the release of stimulus measures from big nations added that energy demand would rise, and it supported the Crude oil prices.

On Thursday, the rising crude oil prices added strength in the Canadian dollar that ultimately weighed on the USD/CAD pair and added in its losses.

On the data front, at 18:30 GMT, the CPI for November advanced to 0.2% against the forecasted 0.1% and supported the US dollar. The Core CPI for November also raised to 0.2% against the anticipated 0.1% and supported the US dollar. The Unemployment Claims from last week rose to 853K against the estimated 723K and weighed on the US dollar added in the losses of the USD/CAD pair.

The US dollar was also weak because of the higher unemployment claims last week due to the state governments’ rising number of restrictive measures. The weak US dollar supported the bearish trend in the USD/CAD pair on Thursday. Furthermore, a Deputy Governor of the Bank of Canada, Paul Beaudry, said that the central bank was monitoring rising housing prices on Thursday. It kept the interest rates low to help the borrowers cope with the coronavirus pandemic. 

Beaudry said that BoC had lowered borrowing costs so that homebuyers can better carry the monthly burden of mortgages. He added that before a bank increases the interest rates, it wants everyone to work on a sustainable basis and the economy back to full capacity. He also stated that a whole set of businesses was on the edge of falling over due to the second wave of coronavirus, although there have not been too many bankruptcies. These comments from Beaudry added strength to the Canadian dollar and weighed on the USD/CAD pair.


Daily Technical Levels

Support Resistance

1.2775 1.2843

1.2738 1.2872

1.2708 1.2910

Pivot point: 1.2805

The USD/CAD pair is trading with a bullish bias today at the 1.2778 level, holding below an immediate resistance level of 1.2800. The resistance level is extended by a downward trendline, which suggests odds of selling bias in the market. On the lower side, the support stays at the 1.2722 level while the 50 periods EMA also holds around the 1.2836 level suggesting bearish bias in the market. The MACD is crossing over into the bullish zone, suggesting odds of buying trend continuation in the market. That’s why we are not entering the market right now. Let’s wait for the market to test and close below the 1.28300 area, and then we can take a sell trade. Good luck! 

Categories
Forex Market Analysis

Daily F.X. Analysis, December 11 – Top Trade Setups In Forex on Friday! 

On the news front, eyes will remain on the German Final CPI m/m, which are expected to remain unchanged, and it may not drive any major movement in the market. BOE Gov Bailey is due to hold a press conference about the Financial Stability Report in London. Euro Summit also remains in highlight as the heads of state from the European Union countries are due to discuss the banking union and the capital markets union in Brussels.

 


EUR/USD – Daily Analysis

The EUR/USD closed at 1.21215 after placing a high of 1.21588 and a low of 1.20633. After falling for four consecutive days, the EUR/USD pair rose on Thursday amid the European Central Bank’s latest decision.

On Thursday, the European Central Bank held its interest rates on its main refinancing operations at 0.00%, marginal lending facility at 0.25%, and the deposit facility at -0.50%. ECB said that it would continue to monitor the exchange rate’s developments about their possible implications for the medium-term inflation outlook.

The European Central Bank expanded its massive monetary stimulus program by another 500 billion euros as the second wave of lockdown measures weighed on the euro area’s economic recovery. It also expanded the emergency bond purchases scheme for nine months worth 1.85 trillion euros and aimed to keep firms and governments afloat until the economy was ready to re-open.

Central Bank also announced that it would hold the interest rates at the same level until the inflation outlook comes close to its below 2% target. The additional support to the Eurozone economy from ECB added that the Eurozone economy will now recover quickly. These hopes added strength in the single currency Euro that helped EUR/USD pair to post gains on Thursday. Meanwhile, on the Data front, at 12:45 GMT, the French Industrial Production for October raised to 1.6% against the expected 0.4% and supported the single currency Euro. From the U.S. side, at 18:30 GMT, the CPI for November rose to 0.2% against the estimated 0.1% and supported the U.S. dollar. The Core CPI for November also raised to 0.2% against the expected 0.1% and supported the U.S. dollar. The Unemployment Claims from last week rose to 853K against the forecasted 723K and weighed on the U.S. dollar that added strength in the EUR/USD pair on Thursday.

The U.S. dollar was also weak on Thursday as the Unemployment claims rose from their expected level during last week due to increased restrictive measures in the U.S. and supported the EUR/USD pair’s upward trend. Furthermore, the U.S. dollar came under more pressure after releasing additional stimulus by the European Central Bank. The U.S. lawmakers were also unable to sort out disagreements over aid to state and local governments, holding up a broader spending package. The U.S. dollar weakness added further support to the upward momentum of the EUR/USD pair.

Daily Technical Levels

Support   Resistance

1.2044       1.2133

1.2006       1.2186

1.1954       1.2223

Pivot point: 1.2096

EUR/USD– Trading Tip

The technical side of the EUR/USD continues to remain the same as the pair is trading at 1.2103 level, facing immediate resistance at 1.2160 and 1.2196 level along with a support level of 1.2085. Closing of candles below the 1.2103 level can send the EUR/USD pair further lower until 1.2080 and 1.2040. Euro Summit will remain in highlights, and the choppy session is expected until the release of the event.

 


GBP/USD – Daily Analysis

The GBP/USD pair was closed at 1.32900 after placing a high of 1.34108 and a low of 1.32453. The GBP/USD pair declined on Thursday as the meeting between PM Boris Johnson and E.U. Commission President Ursula von der Leyen failed to bridge major gaps between them.

PM Boris Johnson offered his ministers to prepare for the strong possibility of a no-deal Brexit. He said that the E.U.’s current offer was unacceptable because the U.K. could not be treated like its twin. He added that the deal offered by the E.U. was not sensible and was unlike any other free trade deal. He said that it was a way of keeping the U.K. locked in the E.U.’s regulatory orbit.

Johnson added a strong possibility that they would have a solution that will be much more like an Australian & Canadian relationship with the E.U. However, after the meeting, the PM Boris Johnson and E.U. Commission President Ursula von der Leyen agreed that a firm decision should be taken about the future of the talks by Sunday. The talks between the E.U.’s top negotiator Michel Barnier and the U.K.’s top negotiator David Frost will resume Brussels. Whereas, Foreign Secretary Dominic Raab said that it was unlikely the negotiations would be extended beyond Sunday.

At 05:30 GMT, the RICS House Price Balance from the U.K. raised 66% against the estimated 64% and supported British Pound. At 12:00 GMT, the Construction Output in October declined to 1.0% against the expectations of 1.2%. The Gross Domestic Product from Great Britain in October remained flat with expectations of 0.4%. The Goods Trade Balance from the U.K. showed a deficit of -12.0B against the forecasted -9.6B and weighed on British Pound and added losses in the GBP/USD pair. The Index of Services for the quarter also dropped to 9.7% against the expected 9.8% and weighed on Sterling and added further losses in GBP/USD pair. The Industrial Production in October surged to 1.3% against the expected 0.3% and supported British Pound. The Manufacturing Production for October also raised to 1.7% against the projected 0.3% and supported British Pound. 

At 18:30 GMT, the CPI for November surged to 0.2% against the anticipated 0.1% and supported the U.S. dollar that added pressure on GBP/USD pair. For November, the Core CPI also rose to 0.2% against the anticipated 0.1% and supported the U.S. dollar and added losses on GBP/USD pair. The Unemployment Claims from last week increased to 853K against the anticipated 723K and weighed on the U.S. dollar.

Moreover, the E.U. outlined contingency measures for a no-deal Brexit that reflected significant uncertainty whether a deal would be in place on January 1, 2021. This also raised the expectations that a Brexit deal might not be reached and weighed on GBP/USD pair on Thursday.

Daily Technical Levels

Support   Resistance

1.3338       1.3466

1.3280       1.3536

1.3209       1.3594

Pivot point: 1.3408

GBP/USD– Trading Tip

The GBP/USD is trading at the 1.3313 level, holding below an immediate resistance level of 1.3322. On the upper side, the GBP/USD pair can lead to a 1.3390 level, and support stays at 1.3269, which is extended by a double bottom level. Selling bias seems dominant, therefore, we should be looking for a sell trade only upon the violation of 1.3265 level. The lagging technical indicators like 50 EMA is suggesting selling bias, thus we should look for selling trades below 1.3400 and upon breakout 1.3265 level too.   

 


USD/JPY – Daily Analysis

The USD/JPY was closed at 104.212 after placing a high of 104.577 and a low of 104.139. The USD/JPY pair rose in the early trading session on Thursday amid the rising risk sentiment in the market after the stimulus measure from ECB and the vaccine optimism. On Thursday, an independent committee of experts recommended the U.S. Food and Drug Administration to approve the use of Pfizer and BioNtech’s coronavirus vaccine for people over the age of 16. It will be up to the FDA to decide whether to follow the recommendation or not. The agency is anticipated to announce its decision within days, and if it decides to approve the vaccine, then the health care workers could begin receiving the shots almost immediately.

The vaccine optimism in the U.S. raised the risk sentiment in the market as the chances for vaccine approval raised the chance for quick economic recovery and weighed on the safe-haven Japanese Yen, which ultimately added gains in the USD/JPY pair. The European Central Bank announced expanding its debt purchases scheme and further stimulus measures that also added in the market’s risk sentiment and supported the upward trend in the USD/JPY pair after weighing on the safe-haven Japanese Yen.

However, the USD/JPY pair failed to hold its gain on Thursday and started to decline as the U.S. Unemployment claims from last week raised to their highest since September 19 level. The rise in Americans’ jobless claim benefits was due to the states’ increased restrictive measures that halted economic activities. The raised unemployment claims weighed on the U.S. dollar and dragged the USD/JPY pair on the downside. 

On the data front, at 04:50 GMT, the BSI Manufacturing Index for the 4th quarter raised to 21.6 from the expectations of 3.5 and supported the Japanese Yen and weighed on the USD/JPY pair. The Producer Price Index from Japan came in line as expected -2.2%.

From the U.S. side, at 18:30 GMT, the CPI for November rose to 0.2% against the projected 0.1% and supported the U.S. dollar. The Core CPI for November also raised to 0.2% against the estimated 0.1% and supported the U.S. dollar. The Unemployment Claims from last week rose to 853K against the forecasted 723K and weighed on the U.S. dollar that made the USD/JPY pair to lose all of its gains on Thursday.

Daily Technical Levels

Support   Resistance

104.04        104.41

103.86        104.60

103.67        104.78

Pivot Point: 104.23

USD/JPY – Trading Tips

The USD/JPY violation of the symmetric triangle pattern at 104.346 faked out as the safe-haven currency pair reversed trade within the same triangle pattern. The current trading range of the USD/JPY pair remains 104.375 – 103.650, and violation of this range can extend the selling trend until the next support area of 103.200 level. Typically, such a triangle pattern can breakout on either side; this, we should be careful before opening any trade. The market is neutral as investors seem to wind up their positions ahead of the December holidays. Good luck

Categories
Forex Signals

Gold Signal Hit Take Profit – Risk-off Sentiment In Play! 

The yellow metal prices managed to stop its previous day losing streak and took some modest bids around well above the $1,830 level mainly due to the broad-based U.S. dollar weakness, which tends to underpin the gold prices as the price of oil is inversely related to the price of the U.S. dollar. However, the sentiment around the U.S. dollar was being pressured by the optimism over the coronavirus vaccine and the probability of U.S. economic stimulus measures, which urge investors towards riskier currencies and higher-yielding assets against the safe-haven asset.

Across the pond, the downbeat market trading sentiment, driven by the worsening coronavirus (COVID-19) conditions in the U.S. and Europe, also keeps the gold prices well bid. Apart from this, the equity markets’ losses were further bolstered by the US-China tussle, which eventually lends some additional support to the yellow metal prices. On the contrary, the optimism over a possible vaccine and treatment for the highly infectious coronavirus keeps challenging the market risk-off mood, which might cap further upside momentum for the gold prices. The yellow metal prices are currently trading at 1,836.17 and consolidating in the range between 1,833.80 – 1,842.54.

However, the global markets’ sentiment failed to extend its previous-day positive performance and turned sour amid renewed Sino-US tensions and growing coronavirus fears. As per the latest report, America blacklists the Chinese crime boss and some other diplomats from Beijing in an anti-corruption sanction crackdown, which instantly fueled the Sino-US tension and weighed on the market trading sentiment. In addition to this, the U.S. and Europe still not refraining from imposing back-to-back lockdown, which threatening to undermine economic recovery as lockdown restrictions tend to have an instant negative effect on economic activities. In the meantime, the lingering uncertainty over the Brexit trade talks also exerted downside pressure on the global equity market. Thus, all these factors weigh on the market trading sentiment, which could be considered the main factors for the gold on-going bullish moves.

Despite the risk-off-market sentiment, the broad-based U.S. dollar failed to stop its previous session declining streak and remained bearish on the day as doubts persist over the global economic recovery from COVID-19. Furthermore, the U.S. Federal Reserve’s expectations of further monetary easing also weigh on the U.S. dollar. Besides this, the encouraging data from COVID-19 vaccine developers urge investors towards riskier currencies and higher-yielding assets against the safe-haven asset, which eventually leads to losses in the safe-haven U.S. dollar. However, the U.S. dollar losses become the key factor that kept the gold prices higher as the price of oil is inversely related to the price of the U.S. dollar. Meantime, the U.S. Dollar Index that tracks the greenback against a bucket of other currencies dropped to 91.052.

In contrast, the losses in the global risk sentiment were capped by the latest reports suggesting that the U.S. Food and Drug Administration (FDA) will meet later in the day to talk about BNT162b2, the COVID-19 vaccine co-developed by Pfizer (NYSE: PFE) and BioNTech SE (F:22UAy). While Canada also approved its first COVID-19 vaccine on Wednesday and said inoculations would start next week, which also helps the market sentiment limit its deeper losses.


Daily Support and Resistance

S1 1838.47

S2 1853.58

S3 1861.99

Pivot Point 1868.69

R1 1877.1

R2 1883.8

R3 1898.91

Gold prices dropped amid the greenback’s strength versus another important trading instrument in the nonexistence of any further U.S. fiscal incentive to support the rollback within the coronavirus pandemic. Gold is currently trading at the 1,836 mark, facing immediate resistance at the 1,851 level along with a support level of 1,828 and 1,824. The U.S. Inflation data may help determine further gold trends now; nonetheless, the technical side seems bearish today.

Categories
Forex Signals

AUD/USD Bullish Channel Underpins – Signal Outlook!

The AUD/USD pair is trading with a bullish bias at the 0.7486 level, heading upward until the next target level of 0.7520 level. The risk-sensitive AUD experienced following Britain’s top medical expert urged people with notable allergies to not utilize the coronavirus vaccine from Pfizer and BioNtech as it will give them an unfavorable response. This information came in after two people were advised to have drastic consequences from coronavirus vaccine usage.

This news deteriorated the risk sentiment and weighed on risk-sensitive Aussie that made the AUD/USD pair to lose some of its early daily gains. The rising number of coronavirus cases in the US surpassed the 15M daily on average; about 200,000 people were reported as positive for coronavirus infection in the US. These pandemic developments faded hopes for quick economic recovery despite vaccine development progress and weighed on the US dollar that added gains in the AUD/USD pair.

Meanwhile, China’s macro-economic data was also released on Wednesday but failed to give a decisive move to the pair AUD/USD as the data gave mixed results. The CPI from China dropped to -0.5% against the expected 0.0% and weighed on China-proxy Aussie. The PPI from China dropped less than expectations of -1.8% at -1.5% and supported the China-proxy Aussie. The New Loans from China dropped to 1430B from the expected 1450B and weighed on China-proxy Aussie that capped further gains in the AUD/USD pair on Wednesday.


Daily Technical Levels:
Support Resistance
0.7401 0.7478
0.7366 0.7520
0.7323 0.7555
Pivot point: 0.7443

On the technical front, the AUD/USD is trading bullish at the 0.7487 level, facing next resistance near 0.7485. The bullish moves can prolong the buying trend to the next resistance area of 0.7525 level in the higher direction. On the 4 hour timeframe, the AUD/USD has developed an upward channel that holds the buying trend. Thus we have begun a buying trade in the AUD/USD pair today.

Entry Price – Buy 0.74844
Stop Loss – 0.74444
Take Profit – 0.75244
Risk to Reward – 1:1
Profit & Loss Per Standard Lot = -$400/ +$400
Profit & Loss Per Micro Lot = -$40/ +$40
Fellas, now you can check out forex trading signals via Forex Academy mobile app. Follow the links below.
iPhone Users: https://apps.apple.com/es/app/fasignals/id1521281368
Andriod Users: https://play.google.com/store/apps/details?id=academy.forex.thesignal&hl=en_US

Categories
Forex Signals

USD/CAD Sideways Channel Remains Intact – Brace to Trade Breakout! 

The USD/CAD pair was closed at 1.28179 after placing a high of 1.28332 and a low of 1.27691. The USD/CAD pair was choppy on Wednesday as it dropped to weekly lows in the early session but recovered all of its losses in the late session. The Bank of Canada released its interest rate decision on Wednesday that drove the USD/CAD pair lower in early trading hours. Later the crude oil prices and the strength of the US dollar pushed the pair higher on board.

On Wednesday, the Bank of Canada held rates at 0.25% and reiterated intentions to keep interest rates at the same level until at least 2023 as the Canadian economic recovery from the coronavirus pandemic was proceeding in line with the expectations.

The Bank said that the new infections and lockdowns continue to hold back the Canadian economy. Bank also mentioned that stronger demand for energy sources had pushed oil prices to boost the Canadian dollar. As well, the looming vaccines rolling out were also helping the Canadian dollar.

The Bank of Canada said that the news on the development of effective vaccines provided reassurance that the pandemic will end and more normal activities will resume, although the pace and breadth of the global rollout of vaccinations remain uncertain. However, there were no surprises on Wednesday from the Bank of Canada that weighed on Loonie and supported the upward trend in the USD/CAD pair.

Meanwhile, the declining crude oil prices on Wednesday after the release of US Crude oil stockpiles data weighed on Loonie. For the last week, the US crude oil inventories raised to 15.2M against the expectations of -0.9M and weighed on crude oil prices that added losses in the commodity-linked currency Loonie and supported the upward momentum in the USD/CAD pair.

Moreover, the US dollar was also strong on Wednesday amid multiple reasons, including deteriorated risk sentiment from Pfizer’s vaccine adverse reaction on two people, faded hopes for quick delivery of second round of US stimulus measure, and the rising safe-haven demand after the increased number of coronavirus cases in the US. The strong US dollar also helped the USD/CAD pair’s gains to persist in the market on Wednesday.

On the data front, at 20:00 GMT, the Final Wholesale Inventories for October raised to 1.1% against the projected 0.9% and weighed on the US dollar. The JOLTS Job Opening for October also surged to 6.65M against the estimated 6.30M and supported the US dollar that added further gains in the USD/CAD pair. On the data front, at 20:00 GMT, the Final Wholesale Inventories for October raised to 1.1% against the projected 0.9% and weighed on the US dollar. The JOLTS Job Opening for October also surged to 6.65M against the estimated 6.30M and supported the US dollar that added further gains in the USD/CAD pair.


Daily Technical Levels

Support Resistance

1.2787 1.2852

1.2745 1.2875

1.2722 1.2917

Pivot point: 1.2810

The USD/CAD pair is trading sideways at the 1.2789 level due to a lack of market volatility. On the lower side, the support holds around the 1.2770 level, whereas the bullish trend continuation can extend the buying trend until the next resistance level of 1.2835. We may not see a further trend in the pair until this range gets violated. On the lower side, a bearish breakout of the 1.2770 level can extend selling bias until the 1.2720 level. It seems like investors are waiting for a solid fundamental to determine further moves in the market. Let’s look for selling below 1.2836 and buying over 1.2770 level today. Good luck! 

Categories
Forex Market Analysis

Daily F.X. Analysis, December 10 – Top Trade Setups In Forex – Eyes on ECB Policy Decision! 

On the news front, it’s going to be an important day for the Euro and U.S. dollar as investors await the Main Refinancing Rate and the U.S. CPI figures during the European and the U.S. session. The ECB monetary policy decision, especially the Main Refinancing Rate, is expected to remain unchanged while the Inflation figures can support the U.S. dollar today.

Economic Events to Watch Today  

 


EUR/USD – Daily Analysis

The EUR/USD pair was closed at 1.20811 after placing a high of 1.21471 and a low of 1.20585. On Wednesday, the currency pair EUR/USD continued its bearish trend for the fourth consecutive day amid the deteriorated risk sentiment and higher U.S. yields that supported the greenback. The U.S. dollar was strong on Wednesday as the U.S. Dollar Index (DXY) rose above the 91.00 level, which was the highest in two days. The coronavirus situation in the U.S. has escalated to an alarming level as more than 200,000 Americans tested positive for the coronavirus every day on average. The total number of infections in the U.S. has surpassed 15 million.

Dr. Anthony Fauci, the nation’s top infectious disease expert, warned on Monday that the country was likely to see a Thanksgiving-related spike in coronavirus cases and hospitalizations in another week or so, in the middle of Hanukkah and just ahead of Christmas. The rising number of coronavirus cases in the U.S. raised the appeal for safe-haven and supported the greenback that ultimately added losses in EUR/USD pair.

Meanwhile, another reason for the continuous losses in the EUR/USD pair was the latest news from Great Britain about the coronavirus vaccine. On Wednesday, Britain’s health officials warned people with significant allergies to avoid receiving the Pfizer-BioNtech vaccine as two people reported an adverse reaction.

On the data front, at 12:00 GMT, the German Trade Balance for October showed a surplus of 18.2B against the expected 18.7B and weighed on Euro. From the U.S. side, at 20:00 GMT, the Final Wholesale Inventories for October surged to 1.1% against the forecasted 0.9% and weighed on the U.S. dollar. The JOLTS Job Opening for October also rose to 6.65M against the expected 6.30M and supported the U.S. dollar that added further losses in EUR/USD pair.

The U.S. dollar was also strong onboard after the hopes for further stimulus package were diminished with the White House’s latest proposal. Steven Mnuchin submitted a proposal on Wednesday worth $916 billion. The offer included only $40 billion towards unemployment benefits that were far less than the amount proposed in the package from a bipartisan group of lawmakers worth $180 billion. Democrats rejected the proposal as they have been trying since the CARES ACT for additional financial aid for laid-off workers.

This new proposal from the Trump administration gave mixed signals in the market. Some believed that the stalemate between Republicans & Democrats would remain intact for long to reach a deal. Others believed that the White House has reengaged in talks for the first time since the election and that it was a positive sign that a compromise could be reached before the end of the year. All the stimulus uncertainty added strength to the U.S. dollar and weighed on the riskier EUR/USD pair on Wednesday.

Daily Technical Levels

Support   Resistance

1.2042     1.2131

1.2006     1.2184

1.1954     1.2220

Pivot point: 1.2095

EUR/USD– Trading Tip

The technical side of the EUR/USD continues to remain the same as the pair is trading at 1.2103 level, facing immediate resistance at 1.2160 and 1.2196 level along with a support level of 1.2085. Closing of candles below the 1.2103 level can send the EUR/USD pair further lower until 1.2080 and 1.2040. However, the focus is likely to stay on the ECB monetary policy decision, especially the Main Refinancing Rate, which is expected to remain unchanged. The choppy session is expected until the release of the ECB report.

 


GBP/USD – Daily Analysis

The GBP/USD pair was closed at 1.34060 after placing a high of 1.34778 and a low of 1.33455. The GBP/USD pair ended its day in positive territory on Wednesday and climbed above 1.34700 as the final round of talks between UK PM Boris Johnson and the European Commission President Ursula von der Leyen started.

Ahead of the talks, the U.K. Pm Boris Johnson said that the E.U. insisted on terms that no prime minister could accept in EU-UK trade talks. The PM said that a good deal was still there to be done as the E.U. sought an automatic right to retaliate against the U.K. if its labor and environmental standards diverge from theirs. PM Boris Johnson also said that the E.U. could not accept the U.K. as having sovereign control over its fishing waters after Brexit. Major disagreements remain over fisheries, business competition rules, and governance issues.

PM Boris Johnson said that a deal would not be possible if the E.U. insisted that if a new law is passed in the future and if the U.K. did not follow suit, then the E.U. wanted an automatic right to punish the U.K. and retaliate. He also claimed that the E.U. wanted the U.K. to become the only country in the world not to have sovereign control over its fishing waters. He said that he would not believe that any prime minister of this country could accept under these terms. However, German Chancellor Angela Merkel has said that a Brexit deal was still possible but insisted that the E.U. single market’s integrity must be respected.

On Wednesday, PM Boris Johnson arrived in Brussels to find common grounds on significant differences that have stalled the talks for eight months. Over the past couple of days, the optimism has increased that a deal might reach as both sides have successfully reached a post-Brexit arrangement in principle over the Irish border. This optimism kept the British Pound on the upside ahead of the talks and pushed the GBP/USD pair higher. Both sides have confirmed that these final talks’ decision will be revealed on Sunday, and this statement forced investors to lose some of its early daily gains.

Meanwhile, on the USD front, the U.S. dollar was strong across the board. The risk sentiment deteriorated, and safe-haven appeal emerged after the rising number of coronavirus cases posted global economic recovery threats despite the vaccine development. The total number of infections in the U.S. surpassed 15 million on Wednesday, and it was reported that almost 200,000 Americans were tested positive for coronavirus every day in the U.S.

Furthermore, the British Pound lost some of its gains in the late trading session on Wednesday after Britain’s top medical adviser warned people with significant allergies to avoid having Pfizer and BioNtech’s vaccine shots as they could give an adverse reaction. On Wednesday, two people were reported to have an adverse reaction to Pfizer’s coronavirus vaccine in Great Britain and weighed on the local currency that capped further gains in GBP/USD pair.

Daily Technical Levels

Support   Resistance

1.3301     1.3453

1.3236     1.3542

1.3148     1.3606

Pivot point: 1.3389

GBP/USD– Trading Tip

The GBP/USD is trading at 1.3378, holding below an immediate resistance level of 1.3395. On the higher side, the GBP/USD pair can lead to a 1.3437 level, and support stays at 1.3340, which is extended by an upward trendline. Overall it’s an ascending triangle, and it typically breaks on the higher side; thus, we can expect the GBP/USD price to move until 1.3435.


USD/JPY – Daily Analysis

The USD/JPY pair was closed at 104.231 after placing a high of 104.403 and a low of 104.050. USD/JPY pair extended its gains for the second consecutive day on Wednesday as the U.S. dollar gained traction on the day. The hopes for the second round of massive stimulus package from Congress decreased n Wednesday after the Trump administration came up with a new proposal. The U.S. Secretary State Steven Mnuchin submitted a new proposal for an economic relief package that would offer far fewer unemployment benefits than what has been offered by a bipartisan group of lawmakers.

The unemployment benefits for millions of jobless Americans would be delivered as $180 billion under the framework proposed by a bipartisan group of lawmakers. But in contrast to this, the new package submitted by the Trump administration included $40billion in new funding for unemployment benefits.

The bipartisan effort of $908 billion packages has brought the Democrats and Republicans closer to a compromise on a coronavirus package. However, the new White House proposal of $916 billion was a sharp rejection from Democrats as the White House’s proposal was strongly criticized by House Speaker Nancy Pelosi and Senate Minority Leader Charles E. Schumer in a joint statement.

Meanwhile, on Wednesday, the U.S. House of Representatives agreed on a one-week extension of federal government funding that would give lawmakers more time to agree on a massive coronavirus relief package. However, the Senate Majority leader Mitch McConnell said that lawmakers were still looking forward to a relief package.

These developments raised the uncertainty related to the U.S. stimulus package, supported the U.S. dollar, and supported the USD/JPY pair’s upward trend.

Meanwhile, on the data front, At 04:50 GMT, the Core Machinery Orders for October raised to 17.1% against the forecasted 2.6% and supported the Japanese Yen. The M2 Money stock for the year from Japan also raised to 9.1% against the estimated 8.9% and supported the Japanese yen that capped further gains in the USD/JPY pair.

On the U.S. front, at 20:00 GMT, the Final Wholesale Inventories for October rose to 1.1% against the anticipated 0.9% and weighed on the U.S. dollar. The JOLTS Job Opening for October also raised to 6.65M against the projected 6.30M and supported the U.S. dollar that added further gains in the USD/JPY pair.

Daily Technical Levels

Support   Resistance

104.10      104.44

103.90      104.60

103.75      104.79

Pivot point: 104.25

USD/JPY – Trading Tips

The USD/JPY has violated the symmetric triangle pattern at 104.346, and it opens further odds of buying until the 104.750 level. The pair has recently disrupted the sideways trading series of 104.200 – 103850. Now it’s trading at 104.300 level, especially after bouncing off over 103.700 level on the lower side, supporting the pair nearby 103.700 mark. On the downside, the USD/JPY may find support at the 103.200 level upon a bearish breakout of the 103.750 support level. While resistance stays at 104.700 today. Good luck

Categories
Forex Signals

USD/CAD Trades Descending Triangle – Traders Loom for a Breakout!

The USD/CAD pair was closed at 1.28286 after placing a high of 1.28254 and a low of 1.27678. The USD/CAD pair was raised on Tuesday due to declining crude oil prices and improving the market’s risk sentiment. The risk sentiment in the market surged on Tuesday after a combination of supporting factors. The rising hopes for global economic recovery after the latest news that Great Britain has officially started using Pfizer coronavirus vaccine to treat coronavirus patients on Tuesday added to the market’s risk sentiment.

Another factor involved in the risk mood enhancement was the rising demand for a US coronavirus stimulus package. The continuous talks between Democrats and the Republicans over the stimulus package and the agreement of both sides over a bipartisan proposal of a $908 billion package also supported the market’s risk sentiment as it will enhance the US economic recovery.

Meanwhile, the latest comments from the foreign minister of China, Wang Yi, that Beijing was open to restarting its relationship with the US also added to the market’s risk flows. Wang declared that a year of escalating tensions between both countries had pushed them to a critical historical juncture. He also said the time has come that objectivity and rationality should bring back in the US policy towards China.

He stated that both sides should restart the dialogues and get back on the right track to rebuilding mutual trust in the next Sino-US relations phase. Wang blamed some Americans’ outdated Cold War mentality for the growing division between the US and China. The raised risk sentiment helped the USD/CAD pair rose for the second consecutive day.

On the data front, at 01:00 GMT, the Consumer Credit for October from the US fell to 7.2B against the estimated 17.6B and weighed on the US dollar. At 16:00 GMT, the NFIB Business Index declined to 101.4 against the anticipated 102.6 in November and weighed on the US dollar that capped further gains in the USD/CAD pair. At 18:30 GMT, the Revised Nonfarm Productivity for the quarter declined to 4.6% against the projected 4.9% and supported the US dollar and supported the USD/CAD pair’s an upward trend. The Revised Unit Labor Costs for the quarter grew in as -6.6% against the projected -8.9%, supported the US dollar and pushed the pair on the upside. At 20:00 GMT, the IBD/TIPP Economic Optimism came in as 49.0 in December compared to the previous 50.0.

Meanwhile, the USD/CAD pair’s gains were also supported by the declining Crude oil prices on Tuesday. The Crude oil prices posted losses on Tuesday and reached $45.13 on the day ahead of the American Petroleum Institute’s weekly crude oil stock data. The declining crude oil prices weighed on commodity-linked currency Loonie and ultimately added strength in the USD/CAD pair.

Furthermore, the Canadian dollar was also under pressure on Tuesday ahead of Wednesday’s Bank of Canada policy meeting. The central bank is expected to hold its interest rates at the same level, but the bank’s tone could affect the Canadian dollar as a positive message will act as a vote of confidence in the economy and support the local currency and vice versa.


Daily Technical Levels

Support Resistance

1.2777 1.2839

1.2740 1.2864

1.2715 1.2901

Pivot point: 1.2802

The USD/CAD pair is trading sideways at the 1.2789 level due to a lack of market volatility. On the lower side, the support holds around the 1.2770 level, whereas the bullish trend continuation can extend the buying trend until the next resistance level of 1.2835. We may not see a further trend in the pair until this range gets violated. On the lower side, a bearish breakout of the 1.2770 level can extend selling bias until the 1.2720 level. It seems like investors are waiting for a solid fundamental to determine further moves in the market. Let’s look for selling below 1.2836 and buying over 1.2770 level today. Good luck! 

Categories
Forex Signals

USD/CHF Violates Descending Triangle Pattern – Brace for a Sell Signal! 

During Wednesday’s trading session, the USD/CHF currency pair failed to stop its previous-day bearish bias and remained pessimistic around below the 0.8900 level. However, the reason for the bearish tone around the currency pair could be associated with the broad-based U.S. dollar weakness. The U.S. dollar was being pressured by the optimism over the potential vaccine for the hazardous coronavirus infection, which urges investors to retreat from the safe-haven assets. 

Apart from this, the U.S. dollar losses could also be attributed to the on-going concerns of further monetary easing by the U.S. Federal Reserve, which adds burden around the U.S. dollar and contributes to the currency pair losses. On the contrary, the upbeat market sentiment boosted investors’ confidence and undermined the safe-haven Swiss Franc, which, in turn, was seen as one of the leading factors that help the USD/CHF currency pair to limit its deeper losses. Currently, the USD/CHF currency pair is currently trading at 0.8879 and consolidating in the range between 0.8871 – 0.8897.

The equity market had been flashing green since the Asian session started. The reason could be associated with the major positive catalysts. Be it the renewed probabilities of the U.S. aid package or optimism over treatment for the highly infectious coronavirus, both factors have favored the market trading sentiment. Therefore, the risk-on market mood tends to undermine the safe-haven Swiss franc, which becomes the key factor that lends some support to the currency pair to ease the intraday bearish pressure surrounding the USD/CHF currency pair.

The hopes of potential vaccines were further boosted after the U.K.’s has started vaccination, witnessed after the 1st-patients inoculated with BNT162b2, the COVID-19 vaccine co-developed by Pfizer (NYSE: PFE) and BioNTech SE (F:22UAy). In addition to this, the sentiment around the equity market was improved further after House Speaker Nancy Pelosi told that the stimulus discussions had made good progress. Meanwhile, the U.S. Treasury Secretary Steve Mnuchin offers a larger amount than the previously highlighted $908 billion for the stimulus package. 

At the USD front, the broad-based U.S. dollar failed to stop its bearish trend and remained depressed on the day as doubts persist over the U.S. economic recovery from COVID-19. Besides this, the risk-on market sentiment, backed by the optimism over a potential vaccine for the highly contagious coronavirus disease, also played its major role in undermining the safe-haven U.S. dollar. Besides this, the U.S. dollar losses could also be attributed to the concerns of further monetary easing by the U.S. Federal Reserve, which tends to undermine the American currency. However, the losses in the U.S. dollar becomes the key factor that kept the currency pair lower. Meantime, the U.S. Dollar Index, which tracks the greenback against a bucket of other currencies, dropped to 90.778.

Conversely, the optimism around the equity market was slightly unaffected by the intensifying market worries regarding the continuous surge in new coronavirus cases in the U.S. and Europe, which fueled the global economic recovery concerns imposing new lockdown restrictions on economic and social activity. Furthermore, the equity market gains were also capped by the lingering uncertainty over the Brexit deal and intensified China-US tussles over the U.S. sanctions on Chinese diplomats and the arrest of the Hong Kong opposition party members by police.

Moving ahead, the market traders will keep their eyes on the U.S. stimulus headlines and vaccine news. In the meantime, the updates surrounding the Brexit trade talks and the Sino-US tussle could not lose their importance on the day.

Daily Support and Resistance

S1 0.8767

S2 0.8839

S3 0.8874

Pivot Point 0.8911

R1 0.8946

R2 0.8982

R3 0.9054

Technically, the USD/CHF pair is gaining support above the 0.8875 mark, and it’s triggered an upward wave to achieve a 23.6% Fibonacci retracement mark of 0.8935. On the further higher front, an upward movement and violation of 0.8933 mark can drive more buying trend unto next Fibo level of 61.8% at 0.8965. However, the pair has formed a descending triangle pattern which, if violated, can send the pair until the 0.8835 level. Check out a trading plan below. 

Entry Price – Sell 0.88778

Stop Loss – 0.89178

Take Profit – 0.88378

Risk to Reward – 1:1

Profit & Loss Per Standard Lot = -$400/ +$400

Profit & Loss Per Micro Lot = -$40/ +$40

Fellas, now you can check out forex trading signals via Forex Academy mobile app. Follow the links below.

iPhone Users: https://apps.apple.com/es/app/fasignals/id1521281368

Andriod Users: https://play.google.com/store/apps/details?id=academy.forex.thesignal&hl=en_US

Categories
Forex Market Analysis

Daily F.X. Analysis, December 09 – Top Trade Setups In Forex – Brace for BOC Policy! 

On the news front, the economic calendar is filled with the Bank of Canada’s policy rate. The BOC is expected to keep the Overnight Rate rate unchanged at 0.25%, which is likely to drive no major change in the Loonie. The BOC Rate Statement will be worth watching to determine further moves in CAD.

Economic Events to Watch Today  

 


EUR/USD – Daily Analysis

The EUR/USD closed at 1.21044 after placing a high of 1.21337 and a low of 1.20952. EUR/USD pair fell on Tuesday for the third consecutive session but remained under consolidation in a tight range. The EUR/USD pair avoided major losses as the Euro remained appealing due to broad weakness in the U.S. dollar. The U.S. Dollar Index fell to its two and a half years lowest level on Tuesday and capped further losses in the EUR/USD pair. The U.S. dollar was weak on Tuesday as the country crossed the threshold of 15 million coronavirus cases, which was the world’s highest total. American hospitals braced to ration care amid staff shortages and warned about the rampant spread of the disease.

Pennsylvania’s governor Tom Wolf said that the coronavirus was running extensively throughout the state and could soon reach the level where hospitals will begin turning away patients. He also said that additional pandemic restrictions might be on controlling the spread of the virus.

Meanwhile, the talks for the second round of coronavirus relief stimulus between Democrats and the Republicans and the agreement of both parties over the bipartisan proposal of a $908 billion stimulus package also weighed on the U.S. dollar. Due to stimulus hopes and the rising number of coronavirus cases, the weak U.S. dollar capped further downside in the EUR/USD pair on Tuesday.

On the data front, at 11:30 GMT, the French Final Private Payrolls for the quarter raised to 1.6% against the expected -1.0% and supported the single currency Euro. At 12:45 GMT, the French Trade Balance showed a deficit of -4.8B against the expected -5.5B and supported Euro. At 15:00 GMT, the quarter raised the Final Employment Change to 1.0% against the forecasted 0.9% and supported Euro. The Revised GDP for the quarter dropped to 12.5% against the expected 12.6% and weighed on Euro. The ZEW Economic Sentiment raised in December to 54.4 against the estimated 37.5 and supported Euro. The German ZEW Economic Sentiment also surged to 55.0 from the projected 45.9 and supported Euro.

From the U.S. side, at 01:00 GMT, the Consumer Credit for October fell to 7.2B against the projected 17.6B and weighed on the U.S. dollar and capped further losses in EUR/USD pair. At 16:00 GMT, the NFIB Business Index fell to 101.4 against the estimated 102.6 in November and weighed on the U.S. dollar that capped further losses in the EUR/USD pair.

At 18:30 GMT, the Revised Nonfarm Productivity for the quarter declined to 4.6% against the expected 4.9% and supported the U.S. dollar and supported the downward momentum in EUR/USD pair. The Revised Unit Labor Costs for the quarter came in as -6.6% against the estimated -8.9% and supported the U.S. dollar. 

At 20:00 GMT, the IBD/TIPP Economic Optimism came in as 49.0 in December compared to the previous 50.0.

Moreover, the Euro remained comparatively appealing due to a more optimistic outlook of the Eurozone’s economy than the U.S. that capped further losses in the EUR/USD pair. The ECB’s policy decision is scheduled for Thursday. If the ECB takes a more hawkish tone, then Euro will rise and vice versa.

Daily Technical Levels

Support   Resistance

1.2086        1.2125

1.2071       1.2149

1.2046       1.2165

Pivot point: 1.2110

EUR/USD– Trading Tip

The EUR/USD is trading at 1.2127 level, finding an immediate resistance at 1.2160 and 1.2196 level along with a support level of 1.2085. Closing of candles underneath the 1.2103 level can send the EUR/USD pair further lower until 1.2080 and 1.2040. However, the focus is likely to stay on the German Trade Balance, which is due during the European session. Choppy session expected until economic figures show major deviations. The MACD is mixed, suggesting bearish; therefore, the idea will be to open a sell trade below the 1.2175 level today to capture quick green pips. 


GBP/USD – Daily Analysis

The GBP/USD pair closed at 1.33564 after placing a high of 1.33935 and a low of 1.32894. The GBP/USD pair fell on Tuesday for the third consecutive day amid the rising Brexit uncertainty that took its toll on British Pound. The mixed comments from various officials from both sides raised the uncertainty in the market related to the Brexit deal and weighed on British Pound. The British Cabinet Minister Michael Gove announced that they had reached an agreement in principle. The E.U.’s chief negotiator Michel Barnier told European ministers that a deal’s chances were very thin. At the same time, German Minister Michael Roth said there was no substantial progress in the trade talks between the E.U. and the U.K. He added that it was uncertain whether Britain and the E.U. could reach a trade deal.

All this uncertainty in the market weighed on the British Pound and dragged the pair GBP/USD on the downside. Another factor involved in the GBP/USD pair’s downward momentum was the latest move by the U.K. government to drop parts of its controversial internal market bill that paved the way for both sides to meet in Brussels on Wednesday to settle an agreement.

The U.K. government reached a post-Brexit arrangement in principle over the Irish border with the European Union after agreeing to ditch the most controversial parts of its internal markets bill. On Tuesday, the U.K. government said that it would abandon all the Brexit clauses relating to Northern Ireland in the internal market bill in exchange for promises by the E.U. to minimize checks and control due to being imposed on food and medicines going into Northern Ireland from Great Britain from January 01.

A deal on Ireland is reached between the E.U. and the U.K. it was not one of the key sticking points that have held the Brexit talks hostage. The Brexit talks will enter a last decisive phase from Wednesday as the PM Boris Johnson has prepared to travel to Brussels on that day to secure a deal over the European Union’s relations with the U.K. If he failed to reach an agreement with the E.U. It would mean that from the start of next year, the tariffs would be applied to some trade between the U.K. and the E.U. for the first time in almost half a century. U.K. sends almost 43% of its exports to the trade bloc E.U. and tariffs on its exports will be harmful to its economy. Failure to reach a deal will also end many cooperation types between the U.K. and the E.U. over crime, security, and travel.

The British Pound remains under pressure on Tuesday ahead of the final round of talks between PM Johnson and E.U. Commission President Ursula von der Leyen on Wednesday. On the data front, at 05:01 GMT, the BRC Retail Sales Monitor for the Year raised to 7.7%against the forecasted 5.0% and supported British Pound, and capped further losses in GBP/USD pair.

From the U.S. side, at 01:00 GMT, the Consumer Credit for October declined to 7.2B against the estimated 17.6B and weighed on the U.S. dollar. At 16:00 GMT, the NFIB Business Index declined to 101.4 against the expected 102.6 in November and weighed on the U.S. dollar.

At 18:30 GMT, the Revised Nonfarm Productivity for the quarter fell to 4.6% against the expected 4.9% and supported the U.S. dollar. The Revised Unit Labor Costs for the quarter came in as -6.6% against the projected -8.9% and supported the U.S. dollar. At 20:00 GMT, the IBD/TIPP Economic Optimism came in as 49.0 in December compared to the previous 50.0.

Daily Technical Levels

Support   Resistance

1.3297       1.3400

1.3242       1.3448

1.3193       1.3504

Pivot point: 1.3345

GBP/USD– Trading Tip

The GBP/USD is trading at 1.3378, holding below an immediate resistance level of 1.3395. On the higher side, the GBP/USD pair can lead to a 1.3437 level, and support stays at 1.3340, which is extended by an upward trendline. Overall it’s an ascending triangle, and it typically breaks on the higher side; thus, we can expect the GBP/USD price to move until 1.3435.


USD/JPY – Daily Analysis

The USD/JPY pair closed at 104.161 after placing a high of 104.204 and a low of 103.953. The pair posted gains on Tuesday as the market’s risk sentiment improved due to a combination of factors.

The news that Great Britain has started using the Pfizer vaccine on patients from Tuesday increased the risk-on sentiment as the hopes for economic recovery increased. Another factor involved in the rising risk-on sentiment was the rising hopes that the U.S. will soon deliver the second round of stimulus measures.

On late Monday, the Chinese Foreign Minister, Wang Yi, said that Beijing was open to restarting its relationship with the U.S. He also declared that both countries were at a critical historical stage after a year of intensifying tensions. Wang said that U.S. policy on China needed to return to objectivity and rationality. He also said that both sides should struggle to restart the dialogue and get back on the right track and rebuild mutual trust in the next Sino-US relations phase. Wang blamed the growing division between the world’s two biggest economies on some Americans with outdated Cold War mentality and ideological preconceptions. All these developments in vaccine usage, rising hopes for stimulus, and the U.S. and China relationship raised the risk sentiment that weighed heavily on the safe-haven Japanese Yen that ultimately supported the USD/JPY pair on Tuesday.

On the data front, at 04:30 GMT, the Average Cash Earnings for the Year came in as -0.8% against the expected -0.7% and weighed on the Japanese Yen. The Household Spending for the Year dropped to 1.9% against the forecasted 2.7% and weighed on the Japanese Yen and added gains in the USD/JPY pair. At 04:50 GMT, the Bank Lending for the Year came in line with the expectations of 6.3%. The Current Account Balance from Japan showed a surplus of 1.98T against the forecasted 1.83T for October and supported the Japanese Yen.

The quarter’s final GDP also raised to 5.3% against the expected 5.0% and supported the Japanese Yen. AT 04:52 GMT, the Final GDP Price Index for the Year raised to 1.2% against the forecasted 1.1% and supported the Japanese Yen. At 10:00 GMT, the Economic Watchers Sentiment dropped to 45.6 against the expected 52.7 and weighed on the Japanese Yen that supported the USD/JPY pair’s upward trend.

From the U.S. side, at 01:00 GMT, the Consumer Credit for October fell to 7.2B against the estimated 17.6B and weighed on the U.S. dollar. At 16:00 GMT, the NFIB Business Index fell to 101.4 against the estimated 102.6 in November and weighed on the U.S. dollar. At 18:30 GMT, the Revised Nonfarm Productivity for the quarter declined to 4.6% against the forecasted 4.9%, supported the U.S. dollar, and added further gains in the USD/JPY pair. The Revised Unit Labor Costs for the quarter came in as -6.6% against the projected -8.9% and supported the U.S. dollar and supported the USD/JPY pair’s upside momentum. At 20:00 GMT, the IBD/TIPP Economic Optimism came in as 49.0 in December than the previous 50.0.

Meanwhile, the USD/JPY pair’s gains remained limited as the U.S. dollar was under pressure as the country crossed 15 million coronavirus cases, which was the world’s highest total. American hospitals started to give warnings about the staff shortage and extensive spread of the disease. Pennsylvania’s governor Tom Wolf said that the coronavirus was spreading extensively throughout the state and could soon reach the level where hospitals will begin turning away patients. He also said that additional pandemic restrictions might be on controlling the spread of the virus.

Daily Technical Levels

Support   Resistance

104.00       104.27

103.84       104.38

103.73       104.54

Pivot point: 104.11

USD/JPY – Trading Tips

The USD/JPY is trading within a symmetric triangle pattern observed in the 4-hour timeframe. The pair recently disrupted the sideways trading series of 104.600 – 104.200, and now it’s trading at 104.300 level, especially after bouncing off over 103.700 level on the lower side, supporting the pair nearby 103.700 mark. On the downside, the USD/JPY may find support at the 103.200 level upon a bearish breakout of the 103.750 support level. While resistance stays at 104.350 and 104.700 today. Good luck

Categories
Forex Signals

GBP/USD Violates Choppy Range – Brace for a Sell Trade! 

The GBP/USD pair bounced off over 1.3263 level, trading at 1.3340 level now. On the 4 hour timeframe, the GBP/USD is consolidating in between a broad trading range of 1.3406 – 1.3263. The Cable may find the next support at 1.3204 level, and below this, the next support can also be found around 1.3100 level today. On the higher side, the resistance hold around the 1.3406 mark. The 50 periods EMA also helps sell bent, while the Sterling is still seeking to close candle beneath 1.3330. If this occurs, we may see a revival of a selling bias in the GBP/USD pair. The MACD and RSI are suggesting selling bais in the pair, and we should look for selling trades below the 1.3350 level today. 


Entry Price – Sell 1.33248

Stop Loss – 1.331

Take Profit – 1.32848

Risk to Reward – 1:1

Profit & Loss Per Standard Lot = -$400/ +$400

Profit & Loss Per Micro Lot = -$40/ +$40

Fellas, now you can check out forex trading signals via Forex Academy mobile app. Follow the links below.

iPhone Users: https://apps.apple.com/es/app/fasignals/id1521281368

Andriod Users: https://play.google.com/store/apps/details?id=academy.forex.thesignal&hl=en_US

Categories
Forex Signals

USD/CAD Breaking Below Double Bottom Level – Selling Bias in Play! 

The USD/CAD pair was closed at 1.27993 after placing a high of 1.28328 and a low of 1.27738. After posting losses for four consecutive days, the USD/CAD pair raised on Monday amid the US dollar’s strength and declining crude oil prices. On Monday, the US dollar was strong in early European trade as the coronavirus cases continued to rise and lockdowns expanded that added weight on the hopes of the US economic recovery. The US Dollar Index that tracks the greenback against the basket of six other currencies raised by 0.3% to 90.993 and supported the USD/CAD pair’s an upward trend.

The rising number of coronavirus cases in the California State pushed its governor to extend the time duration of imposed restrictive measures and raised the safe-haven appeal to impact the US economic recovery. The rising demand for safe-haven added strength in the greenback that pushed the USD/CAD pair higher.

The recent sanctions and travel ban on 14 Chinese officials from the US government also added the appeal for safe-haven as it would escalate the dispute between the world’s two biggest economies. The rising safe-haven appeal added strength to the greenback and supported the USD/CAD pair’s an upward trend. Meanwhile, the WTI crude oil prices on Monday also declined to $45.34 per barrel level and weighed on Loonie’s commodity-linked currency. The declining Canadian dollar also added to the upward momentum of the USD/CAD pair.

The Canadian dollar was the second worst-performing currency among the G10 currencies on Monday, partially because of the profit-taking in the wake of last Friday’s much stronger than expected November jobs report. Besides, the risk-off market mood weighed on risk-sensitive Loonie and added strength in the USD/CAD pair. On the data front, at 20:00 GMT, the Ivey PMI from Canada raised to 52.7 against the forecasted 52.3 and supported the Canadian dollar that capped further gains in the USD/CAD pair.


Daily Technical Levels

Support Resistance

1.2773 1.2790

1.2765 1.2799

1.2756 1.2807

Pivot point: 1.2782

The USD/CAD pair is trading sideways at the 1.2789 level due to a lack of volatility in the market. On the lower side, the support holds around the 1.2770 level, whereas the bullish trend continuation can extend the buying trend until the next resistance level of 1.2835. We may not see a further trend in the pair until this range gets violated. On the lower side, a bearish breakout of the 1.2770 level can extend selling bias until the 1.2720 level. It looks like investors are waiting for a solid fundamental to determine further moves in the market. Let’s look for selling below 1.2836 and buying over 1.2770 level today. Good luck! 

Categories
Forex Signals

Daily F.X. Analysis, December 08 – Top Trade Setups In Forex – Eyes on European Events! 

On the news front, the market is likely to remain muted in the absence of high impact events. Italian banks will be closed in observance of Immaculate Conception Day while the Frend Trade Balance, European Revised GDP q/q, and German ZEW Economic Sentiment will remain in the highlights today.

Economic Events to Watch Today  

 


 


EUR/USD – Daily Analysis

The EUR/USD pair was closed at 1.21088 after placing a high of 1.21660 and a low of 1.20784. EUR/USD pair extended its losses on Monday for the second consecutive day over the diminishing risk sentiment and the hopes for further easing package from ECB. The EUR/USD pair remained under pressure on Monday ahead of the upcoming ECB meeting on Thursday. The European Central Bank was set to deliver a further easing package of almost 500 billion euros to the Pandemic Emergency Purchase Programme that will extend the purchases for many more months and weighed on the single currency Euro. 

Furthermore, the European Central Bank is also expected to increase its targeted longer-term refinancing operations and also to make them more accommodative. The ECB’s governing council members said that these decisions have been taken to extend the duration of accommodative financial conditions to support the recovery in 2021 further and beyond, rather than making financial conditions right now more accommodative.

The pressure on ECB to over-deliver on the market expectations declined due to the recent improvement in global financial market conditions since Joe Biden won the U.S. presidential election and positive vaccine news in early November. The more important event of the day for EUR was the Summit of 27 E.U. countries that will begin on Thursday and Friday.

The top agenda will be Brexit in the Summit as the question remained that UK PM Boris Johnson and E.U. Commission President Ursula von der Leyen will be successful in reaching a deal before the Summit. The paused Brexit talks by top E.U. negotiator Michel Barnier on Friday also added pressure on EUR/USD pair on Monday. Another factor pressuring the European Union was the Polish and Hungarian veto against the E.U. Recovery Fund and the 2021-2027 Budget. Both nations announced their intentions shortly before ambassadors of the E.U. member states met on Monday to veto various parts of the financial settlement. If a deal cannot be agreed with these two nations regarding the rule of law attachments being added to funding, then the E.U. has threatened to go with EU-minus Poland and Hungary fiscal package. 

On the data front, at 12:00 GMT, the German Industrial Production also raised to 3.2% against the estimated 1.8% and supported Euro and capped further losses in EUR/USD pair. At 14:30 GMT, the Sentix Investor Confidence came in as -2.7 against the estimated -11.9 and supported Euro and limited additional losses in EUR/USD pair.

Daily Technical Levels

Support   Resistance

1.2113      1.2129

1.2107      1.2139

1.2097     1.2146

Pivot point: 1.2123

EUR/USD– Trading Tip

The market’s technical side continues to be the same as the pair continues to trade sideways due to a lack of high impact economic events. On the higher side, the EUR/USD may find an immediate resistance at 1.2160 and 1.2196 level. Simultaneously, the closing of candles below the 1.2103 level can send the EUR/USD pair further lower until 1.2080 and 1.2040 level. The MACD is strongly bearish; therefore, the idea will be to open a sell trade below the 1.2175 level today to capture quick green pips. 


GBP/USD – Daily Analysis

The GBP/USD pair was closed at 1.33785 after placing a high of 1.34375 and a low of 1.32239. The GBP/USD pair dropped to its lowest since November 19 on Monday in the early trading session due to the rising U.S. dollar, but it started to recover in the late trading session after the Brexit hopes raised. The U.S. dollar raised on Monday after the coronavirus cases continued to rise, and lockdowns expanded and weighed on the U.S. economic recovery. On Sunday, the Governor of California, Gavin Newsom, ordered large parts of the most populous U.S. state to close down as coronavirus cases spiked to record levels. 

On Sunday, California reported more than 30,000 new cases and marked a new record for hospitalized coronavirus patients. Other states including, New Jersey, North Carolina, Virginia, and West Virginia, also announced a record one-day rise in new infections. These increased cases raised concerns over the economic recovery hopes and raised the demand for safe-haven greenback that ultimately weighed on GBP/USD pair. However, the currency pair GBP/USD recovered some of its losses on Monday after the UK PM Boris Johnson revealed that he was set to travel to Brussels in a last-ditch effort to break a post-Brexit deal. The E.U. Commission President Ursula von der Leyen and the UK PM Boris Johnson will remove the differences on a post-Brexit deal in the coming days. This came in after a 90 minutes phone call between the two leaders failed to produce a breakthrough. 

In a joint statement, both said that the conditions for a deal were not there, and significant differences remained on fishing, level playing field, and any deal governance. They have asked their chief negotiators to prepare an overview of the remaining sticking points discussed in a physical meeting in Brussels in the coming days. A senior U.K. governmental source warned that a deal might not be possible after the phone call between Ursula and Johnson. It was also reported that the talks were in the same position as they were on Friday and made no progress. All these downbeat statements related to Brexit weighed heavily on GBP/USD pair.

On the data front, at 13:30 GMT, the Halifax Housing Price Index for November raised to 1.2% against the forecasted 0.6% and supported British Pound, and capped further losses in GBP/USD pair.

Daily Technical Levels

Support  Resistance

1.3377      1.3438

1.3338      1.3462

1.3315      1.350 0

Pivot point: 1.3400

GBP/USD– Trading Tip

The GBP/USD pair bounced off over 1.3263 level, trading at 1.3340 level now. On the 4 hour timeframe, the GBP/USD is consolidating in between a wide trading range of 1.3406 – 1.3263 level. The Cable may find the next support at 1.3204 level, and below this, the next support can also be found around 1.3100 level today. On the higher side, the resistance hold around the 1.3406 mark. The MACD and RSI are suggesting selling bais in the pair, and we should look for selling trades below 1.3400 and buying over 1.3265 level today. 


USD/JPY – Daily Analysis

The USD/JPY pair was closed at 104.046 after placing a high of 104.310 and a low of 103.920. On Monday, the USD/JPY pair consolidated within a tight range around 104.00 level after placing a high of 104.310 on the U.S. dollar’s strength in the early European morning. However, the pair USD/JPY reversed its direction and started posting losses in late trading hours. The U.S. dollar was strong in early European trade on Monday as the coronavirus cases continued to rise and lockdowns expanded and weighed on the U.S. economic recovery. The U.S. Dollar Index that tracks the greenback against the six other currencies basket was up by 0.3% at 90.993.

The record hike in the coronavirus spread caused the Governor of California, Gavin Newsom, to order large parts of the most populous U.S. state to close down again. California state reported 30,000 new cases in a single day and broke its daily high record. Other states like New Jersey, North Carolina, Virginia, and West Virginia also reported a record-high number of coronavirus cases.

The rising number of coronavirus infections and the U.S. hospitalization rate added pressure on the U.S. economic recovery and raised the appeal for safe-haven that ultimately added strength to the greenback. The strong U.S. dollar helped the USD/JPY pair rise to the 104.300 level in the early trading session.

However, the USD/JPY pair’s gains were short-lived as the pair started to decline in the late trading session and posted losses for the day. The decline in the USD/JPY pair was due to appreciation in the Japanese Yen after the lower U.S. yields on the day.

The 10-year Treasury yield fell by 4bps to 0.929%, and the 10-year real rates also dropped to -0.97% by 3bps. The declining U.S. yields thus decreased the attractiveness of USD investments relative to Japanese government bonds and underpinned selling pressure in the USD/JPY pair.

On the data front, at 09:59 GMT, the Leading Indicators from Japan came in line with the expectations of 93.8%. Meanwhile, the latest optimism regarding the vaccine and fiscal stimulus also kept the USD/JPY pair supported and limited the day’s losses.

Another reason behind the increasing demand for safe-haven Japanese Yen was the recent financial sanctions imposed by the U.S. and a travel ban on 14 Chinese officials over their suspected role in disqualifying elected opposition legislators in Hong Kong.

Hong Kong’s Beijing-backed government expelled four opposition members last month. In this response, the U.S. levied sanctions on Chinese officials and also blocked any assets the official might have within the U.S. These sanctions added in the safe-haven demand in the market and added strength in the Japanese Yen against the U.S. dollar, and weighed on the USD/JPY pair on Monday.

Daily Technical Levels

Support   Resistance

104.10      104.27

104.00      104.34

103.94      104.44

Pivot point: 104.17

USD/JPY – Trading Tips

The USD/JPY is trading within a symmetric triangle pattern seen in the 4-hour timeframe. The pair lately violated the sideways trading range of 104.600 – 104.200, and now it’s trading at 104.300 level, especially after bouncing off over 103.700 level on the lower side, supporting the pair around 103.700 level. On the downside, the USD/JPY may find support at the 103.200 level upon a bearish breakout of the 103.750 support level. While resistance stays at 104.350 and 104.700 today. Good luck

Categories
Forex Signals

AUD/USD Breaking Below Double Bottom Level – Selling Bias in Play! 

The AUD/USD pair was closed at 0.74189 after placing a high of 0.74532 and a low of 0.73722. The currency pair AUD/USD extended its bearish moves on Monday amid the rising demand for the greenback and the improving risk-off market sentiment. The risk perceived Aussie came under fresh pressure on Monday as the rising number of coronavirus cases in the US forced many state governors to expand the restrictions that ultimately diminished the hopes of the US economic recovery and raised the appeal for risk-averse market sentiment.

In the first trading session of Monday, the AUD/USD pair printed fresh multi-year highs above the 0.7450 level, but the pair started to decline after the risk-averse mode took its pace in the market.

The latest sanctions over 14 Chinese officials by the US also added in the risk-averse market sentiment and weighed on the risk perceived Aussie that dragged the AUD/USD pair on the downside. The Beijing-backed government of Hong Kong expelled four opposition members last month that ended up having the US government impose sanctions on Chinese officials and a travel ban and blocking any assets the official might have within the US.

On the data front, at 02:30 GMT, the AIG Services Index in November came in as 52.9 compared to 51.4. At 05:30 GMT, the ANZ Job Advertisements in November came in as 13.9% compared to 11.9%.

The Chinese Trade Balance showed a surplus of 75.4B US dollars in the month of November and gave strength to the China-proxy Australian dollar due to their trading relationship and capped further losses in the AUD/USD pair on Monday.

Another factor involved in the declining AUD/USD pair’s prices on Monday was the US dollar’s strength due to its safe-haven status. The greenback gained traction in the market after the risk-off mood appeared because of the rising number of coronavirus cases in the US and the increasing hospitalization rate. The strong US dollar also added pressure on AUD/USD pair on Monday.


Daily Technical Levels

Support Resistance

0.7421 0.7437

0.7413 0.7445

0.7406 0.7453

Pivot point: 0.7429

Technically, the AUD/USD pair breaks below the double bottom support level of 0.7417, and its violation of the 0.7420 level can extend the selling trend until 0.7375. The support level of 0.7372 level is extended by an upward trendline support level of 0.7372. The MACD supports selling bias, and recent bearish engulfing and closing below the 0.7415 level can extend the selling trend until the 0.7375 level today.  

Entry Price – Sell 0.74057

Stop Loss – 0.74457

Take Profit – 0.73657

Risk to Reward – 1:1

Profit & Loss Per Standard Lot = -$400/ +$400

Profit & Loss Per Micro Lot = -$40/ +$40

Fellas, now you can check out forex trading signals via Forex Academy mobile app. Follow the links below.

iPhone Users: https://apps.apple.com/es/app/fasignals/id1521281368

Andriod Users: https://play.google.com/store/apps/details?id=academy.forex.thesignal&hl=en_US

Categories
Forex Signals

USD/CAD Completes 23.6% Fibonacci – What’s Next? 

The USD/CAD closed at 1.27841 after placing a high of 1.28735 and a low of 1.27720. The USD/CAD pair extended its losses towards its lowest level since May 2018 amid the strength of the Canadian dollar against the US dollar and the rising crude oil prices. On Friday, the Canadian dollar outlook improved on the expectations that the currency will benefit from the domestic economic stimulus and the rollout of the coronavirus vaccine. On Monday, the Canadian Finance Minister Chrystia Freeland forecasted the budget deficit to hit a historic C$382 billion on coronavirus emergency aid. She also added that C$100 billion would be rolled out in stimulus once the virus came under control.

These statements from the Canadian Finance Minister added strength to the Canadian dollar as the hopes for Canadian economic recovery increased. The strong Canadian dollar added heavy pressure on the USD/CAD pair on Friday and dragged the pair on the downside.

Meanwhile, the Canadian dollar was also strong because of the positive macroeconomic data on Friday. At 18:30 GMT, the Employment Change from Canada raised to 62.1K against the forecasted 22.0K and supported the Canadian dollar and added losses in USD/CAD pair. 

The Unemployment Rate from Canada dropped to 8.5% against the forecasted 9.0% and supported the Canadian dollar and supported the USD/CAD pair’s downward trend. The Trade Balance from Canada came in as -3.8B against the forecasted -3.2B and weighed on the Canadian dollar.

From the US side, at 18:30 GMT, the Average Hourly Earnings raised to 0.3% against the estimated 0.1% and supported the US dollar, and capped further losses in the USD/CAD pair. The Non-Farm Employment Change declined to 245K against the estimated 480K and weighed on the US dollar and supported the USD/CAD pair’s losses. The Unemployment Rate dropped to 6.7% against the estimated 6.8% and supported the US dollar. The Trade Balance from the US came in as -63.1B against the estimated -64.7B and supported the US dollar. 

At 20:00 GMT, the Factory Orders for November raised to 1.0% against the estimated 0.8%, supported the US Dollar, and capped further USD/CAD pair losses. Most of the US dollar economic data came in favor of the US dollar, but the NFP employment change or the job creation by the US economy fell short of expectations and weighed on the US dollar that added losses in the USD/CAD pair.

Another important factor involved in the USD/CAD pair’s losses on Friday was the rising crude oil prices. The price of crude oil, one of Canada’s major export, rose on Friday above $46 per barrel after the coronavirus vaccine’s speedy approval that would boost the global economic recovery and ultimately increase the energy demand. The higher crude oil prices supported the commodity-linked currency Loonie and added pressure on the currency pair USD/CAD on Friday.


Daily Technical Levels

Support Resistance

1.2825 1.2918

1.2791 1.2977

1.2733 1.3011

Pivot point: 1.2884

The USD/CAD slipped to trade at a 1.2811 level, holding above an immediate support level of 1.2775. Above this level, the commodity currency pair has formed a Doji candle, suggesting odds of selling bias until the 1.2770 level. Taking a look at the 4-hour timeframe, the USD/CAD pair has closed a bullish engulfing pattern at the 1.2811 level, and it may head upward until the 38.2% Fibonacci retracement level of 1.2837 level. Bullish trend continuation can lead to its prices further higher until the next resistance level of the 1.2904 level marks a 61.8% Fibonacci level. Good luck! 

Categories
Forex Signals

AUD/USD Upward Channel In-Play – Brace for a Buying Trend! 

The AUD/USD closed at 0.74260 after placing a high of 0.74435 and a low of 0.74100. After rising for three consecutive days, the AUD/USD pair dropped on Friday and posted small losses as it remained confined in a range between 0.74100 and 0.74400. The currency pair rose in the early trading session on Friday as it followed the previous day’s trend and because of the Australian side’s supportive economic data. Another factor involved in the rising AUD/USD prices in the early trading session was the improved risk-sentiment from the latest development in the coronavirus vaccine.

The approval for emergency use authorization to Pfizer and BioNtech added in the risk sentiment as the hopes for global economic recovery increased and supported the risk-sensitive Aussie. The strong Australian dollar pushed the AUD/USD pair higher in early trading hours on Friday. On the data front, at 05:30 GMT, the Retail Sales from Australia raised to 1.4% against the projected 0.5% and supported the Australian dollar, and capped further losses in AUD/USD pair.

From the US side, at 18:30 GMT, the Average Hourly Earnings rose to 0.3% against the expected 0.1% and supported the US dollar and added pressure on AUD/USD pair. The Non-Farm Employment Change fell to 245K against the expected 480K and weighed on the US dollar, and capped further losses in AUD/USD pair. The Unemployment Rate fell to 6.7% against the expected 6.8% and supported the US dollar. The Trade Balance from the US came in as -63.1B against the expected -64.7B and supported the US dollar. At 20:00 GMT, the Factory Orders for November rose to 1.0% against the expected 0.8% and supported US Dollar and added pressure on AUD/USD pair.

Despite the US’s disappointing Job report, the unemployment rate and factory order data managed to support the US dollar through the rough time and exerted downward pressure on AUD/USD pair. Meanwhile, the AUD/USD pair’s losses were also limited because of the underlying pressure on the US dollar after the agreement between Democrats and Republicans over the $908 billion stimulus package. The agreement on the bipartisan proposal added hopes that a massive stimulus could also be approved and weighed on the US dollar that kept the losses in AUD/USD pair limited on Friday.


Daily Technical Levels

Support Resistance

0.7407 0.7461

0.7376 0.7482

0.7354 0.7514

Pivot point: 0.7429

The AUD/USD slipped to trade at 0.7372 level, holding above an upward support level, which is extended by an upward channel. The AUD/USD channel may drive upward movement until 0.7405 and 0.7440 resistance levels on the higher side. Conversely, a bearish breakout of 0.7372 level can extend the selling trend until the next support level of 0.7337. The RSI and MACD are reporting selling bias in the pair. Good luck! 

Categories
Forex Signals

USD/CHF Heading North to Complete 38.2% Fibonacci Level – Brace for Buying! 

The USD/CHF trade is sharply bearish to drop until the 0.8885 level, holding above a support level of 0.8880 amid a stronger U.S. dollar. The tussle between China and the U.S. kept gaining market attention and challenged the market risk tone. As per the latest report, the Trump administration was preparing sanctions on at least a dozen Chinese officials in the wake of their alleged role in China’s disqualification of elected opposition legislators in Hong Kong.

As in result, the broad-based U.S. dollar managed to stop its early day losses and picked some bids during the early European session as the traders started to cheering the risk-off marker mood. However, the U.S. dollar bullish bias was rather unaffected by the worsening coronavirus (COVID-19) conditions in the U.S., or the disappointing U.S. jobs data, which raised expectations of fresh economic stimulus measures. However, the gains in the U.S. dollar turned out to be one of the leading factors that help the currency pair to limit its deeper losses. Meanwhile, the U.S. Dollar Index that tracks the greenback against a bucket of other currencies rose to 90.850.

On the other hand, the optimism over treatment for the highly infectious coronavirus becomes the key factor that helps the market trading sentiment stop its bearish rally, which might support the currency pair. The hopes of vaccine fueled further after the reports suggesting that the U.K.is set to become the 1st-country to roll out BNT162b2, the COVID-19 vaccine developed by Pfizer Inc (NYSE: PFE) and BioNTech SE (F:22UAy), this week.

In the absence of the key data/events on the day, the market traders will keep their eyes on RBA Gov Lowe Speaks. In addition to this, the updates about the U.S. stimulus package will also be key to watch. In the meantime, the risk catalyst like geopolitics and the virus woes, not to forget the Brexit, will not lose their importance.


Daily Support and Resistance   

S1 0.8833

S2 0.8871

S3 0.8895

Pivot Point 0.8909

R1 0.8933

R2 0.8947

R3 0.8985

Technically, the USD/CHF pair is gaining support above the 0.8886 mark, and it’s triggered an upward wave to achieve a 23.6% Fibonacci retracement mark of 0.8935. On the further higher front, an upward movement and violation of 0.8933 mark can drive more buying trend unto next Fibo level of 61.8% at 0.8965. Check out a trading plan below. 

Entry Price – Buy 0.89342

Stop Loss – 0.88942

Take Profit – 0.89942

Risk to Reward – 1:1

Profit & Loss Per Standard Lot = -$400/ +$400

Profit & Loss Per Micro Lot = -$40/ +$40

Fellas, now you can check out forex trading signals via Forex Academy mobile app. Follow the links below.

iPhone Users: https://apps.apple.com/es/app/fasignals/id1521281368

Andriod Users: https://play.google.com/store/apps/details?id=academy.forex.thesignal&hl=en_US

Categories
Forex Market Analysis

Daily F.X. Analysis, December 07 – Top Trade Setups In Forex – Eyes on European Events! 

The calendar is a bit muted today, and the market can exabit thin trading volume on the news front. However, the focus can stay on German Industrial Production m/m and Sentix Investor Confidence from the Eurozone, which are expected to perform better than the previous month and may underpin the Euro currency. Besides, the U.K. Halifax HPI m/m will also play a slight role in determining the GBP trend, while economists expect HPI to improve from 0.3% to 0.6% this month.

Economic Events to Watch Today  

 


EUR/USD – Daily Analysis

The EUR/USD pair was closed at 1.21185 after placing a high of 1.21772 and a low of 1.21101. After rising for three consecutive days, the EUR/USD pair dropped on Friday after the initial rally. The downfall in EUR/USD pair on the day came in after U.S. job figures’ release.

In the trading session on Friday, the EUR/USD pair rallied slightly on the back of improved risk sentiment and the U.S. dollar’s weakness. The risk perceived EUR/USD followed the optimism regarding the coronavirus vaccine and moved higher in the early trading session on Friday. Besides, the U.S. dollar’s weakness due to the increased spread of coronavirus and hospitalization rate in the U.S. also added strength to the rising EUR/USD pair.

The U.S. dollar was also weak due to increased hopes for the next round of U.S. stimulus package after the CARES Act passed in March. Democrats and Republicans have agreed over a $908 billion stimulus package, and the expectations have increased that a big stimulus will also be delivered soon. The weak U.S. dollar gave a Pushto EUR/USD pair on Friday and raised its prices above the 1.21700 level.

However, the EUR/USD pair’s gains started to reverse and converted into losses after the release of macroeconomic data from the U.S.

At 12:00 GMT, the German Factory Orders for November raised to 2.9% against the expected 1.4% and supported Euro. At 12:45 GMT, the French Gov Budget Balance came in as -159.9B. At 14:00 GMT, the Italian Retail Sales raised to 0.6% against the forecasted 0.2% and supported Euro.

At 18:30 GMT, the Average Hourly Earnings rose to 0.3% against the anticipated 0.1% and supported the U.S. dollar and added pressure on EUR/USD. The Non-Farm Employment Change declined to 245K against the anticipated 480K and weighed on the U.S. dollar. 

The Unemployment Rate declined to 6.7% against the anticipated 6.8% and supported the U.S. dollar and dragged the EUR/USD pair. The Trade Balance from the U.S. came in as -63.1B against the anticipated -64.7B and supported the U.S. dollar and weighed on EUR/USD pair. At 20:00 GMT, the Factory Orders for November raised to 1.0% against the anticipated 0.8% and supported U.S. Dollar. Most of the U.S. data came in support of the U.S. dollar that resulted in the EUR/USD pair’s downfall on Friday in the late trading session.

Daily Technical Levels

Support  Resistance

1.2101        1.2178

1.2063       1.2215

1.2025       1.2254

Pivot point: 1.2139

EUR/USD– Trading Tip

On Monday, the EUR/USD continues to trade sideways amid mixed NFP figures released on Friday. On the higher side, the EUR/USD may find an immediate resistance at 1.2160 and 1.2196 level. While the closing of candles below the 1.2103 level can send the EUR/USD pair further lower until 1.2080 and 1.2040 level. The MACD is strongly bearish; therefore, the idea will be to open a sell trade below the 1.2175 level today to capture quick green pips. 


GBP/USD – Daily Analysis

The GBP/USD pair was closed at 1.3413 after a high of 1.35390 and a low of 1.34096. The GBP/USD pair rose to its highest level since May 2018 in the early trading session on Friday over the combined factor of Brexit optimism and the weakness of the U.S. dollar. However, the British Pound cut its gains after the E.U.’s Brexit negotiator Michel Barnier paused the talks.

During the early trading session on Friday, the GBP/USD pair rose and started to post gains following the Brexit optimism triggered after the agreement was reached over the Fisheries between the U.K. and the E.U. Another factor involved in the GBP/USD pair’s upward momentum was the U.S. dollar’s weakness.

The U.S. dollar index (DXY) that measures the value of the U.S. dollar against the basket of six currencies fell to its six years, the lowest level of 90.47 on Friday. The losses in DXY were due to a combination of factors, including the rising number of coronavirus in the nation and the rising expectations of the U.S. stimulus package.

The number of new coronavirus cases in the past five days in the U.S. reached about 1 million. The hospitalization rate also increased to an alarming level and hit a record high after 101,487 patients were reported to be hospitalized in a single day. This negative news from the U.S. added further pressure on the U.S. dollar and supported the upward trend in the GBP/USD pair in the early trading session on Friday.

British Pound was under demand on Thursday after the U.K. and E.U. reported that they had reached an agreement over one key sticking issue of Fisheries. Investors started to buy GBP/USD in the early trading session on Friday as they continued following the previous trend.

However, the currency pair GBP/USD pair started to decline on Friday after the release of U.S. macroeconomic data and the announcement from Michel Barnier. The E.U. Brexit negotiator, Michel Barnier, said that he had paused the trade talks with the U.K. and added that the conditions for a deal had not yet been met.

After one week of intensive negotiations in London, the U.K. and E.U. agreed to pause talks because the post-Brexit deal conditions were not met. Barnier said that E.U. Commission president Ursula von der Leyen and PM Boris Johson would try to make progress on a deal in the next meeting that will take place on Saturday.

After these comments by the E.U. top negotiator, the earlier optimism that the deal was imminent could be reached before the end of the week. These updates suggested that talks have reached a very critical stage, and anything could happen. It raised the market’s uncertainty and supported the safe-haven greenback that exerted pressure on GBP/USD pair.

On the data front, at 14:30 GMT, the Construction PMI from Great Britain raised to 54.7 against the projected 52.3 and supported British Pound and limited the losses in GBP/USD pair.

From the U.S. side, at 18:30 GMT, the Average Hourly Earnings surged to 0.3% against the projected 0.1% and supported the U.S. dollar and added losses in GBP/USD pair. The Non-Farm Employment Change fell to 245K against the projected 480K and weighed on the U.S. dollar. The Unemployment Rate fell to 6.7% against the projected 6.8%, supported the U.S. dollar, and dragged GBP/USD pair. The Trade Balance from the U.S. came in as -63.1B against the projected -64.7B and supported the U.S. dollar. At 20:00 GMT, the Factory Orders for November surged to 1.0% against the projected 0.8% and supported U.S. Dollar and added losses in the GBP/USD pair on Friday.

Daily Technical Levels

Support   Resistance

1.3286       1.3441

1.3209       1.3519

1.3131       1.3596

Pivot Point: 1.3364

GBP/USD– Trading Tip

The GBP/USD is falling dramatically from 1.3450 to 1.3230 level by the time of covering this report. On the 4 hour timeframe, the GBP/USD pair has dipped sharply and has already violated the upward channel, which supported the pair around the 1.3350 level. The Cable may find the next support at 1.3204 level, and below this, the next support can also be found around 1.3100 level today. On the higher side, the resistance hold around the 1.3300 mark. The MACD and RSI are suggesting selling bais in the pair, we should look for selling trades below 1.3350 and buying over 1.3185 level today. 


USD/JPY – Daily Analysis

The USD/JPY pair was closed at 104.186 after placing a high of 104.242 and a low of 103.736. The currency pair USD/JPY rose on Friday amid the supportive U.S. macroeconomic data and the increased U.S. yields.

On Friday, the U.S. Bureau of Labour reported that only 245K jobs were added to the economy while the unemployment rate fell by 0.2% in November and supported the U.S. dollar.

On the data front, at 18:30 GMT, the Average Hourly Earnings advanced to 0.3% against the anticipated 0.1% and supported the U.S. dollar and added gains in the USD/JPY pair. The Non-Farm Employment Change declined to 245K against the anticipated 480K and weighed on the U.S. dollar capped further gains in the USD/JPY pair. The Unemployment Rate declined to 6.7% against the anticipated 6.8% and supported the U.S. dollar.

The Trade Balance from the U.S. came in as -63.1B against the anticipated -64.7B and supported the U.S. dollar and pushed the pair USD/JPY higher. At 20:00 GMT, the Factory Orders for November advanced to 1.0% against the anticipated 0.8% and supported the U.S. Dollar, and added further gains in the USD/JPY pair.

The U.S.’s supportive data proved good news for the market that pushed the S&P 500 to an all-time high and raised the U.S. 10-year yield by 5bps to 0.97%. The rise in U.S. yields also added strength in the U.S. dollar and added gains in the USD/JPY pair. The less than expected job creation by the U.S. Labor Department made the near-term U.S. fiscal stimulus more likely and exerted pressure on Congress to swiftly avert the labor market’s slowdown.

However, the risk sentiment was also strong in the market after the vaccine optimism escalated and supported the hopes that the economic activities will return to pre-pandemic levels. These hopes, along with the rising expectations that the world’s largest economy will also recover soon as the stimulus package was near to be delivered, added to the risk-sentiment. These risk flows added weight on the safe-haven Japanese Yen that supported the USD/JPY pair and pushed it higher.

Meanwhile, the gains in the USD/JPY pair were also limited because of the rising number of coronavirus cases in the U.S. Over the period of 5 days, the U.S. has recorded about 1 million new coronavirus cases, and the hospitalization rate in the U.S. also hit its highest record by reaching more than 104,000 patients in a single day.

The USD/JPY pair rose on Friday due to supportive U.S. macroeconomic data, higher U.S. yields, and the rising risk sentiment in the market due to global economic recovery hopes.

Daily Technical Levels

Support   Resistance

103.48       104.35

103.13       104.89

102.60       105.23

Pivot point: 104.01

USD/JPY – Trading Tips

The USD/JPY is trading within a symmetric triangle pattern seen in the 4-hour timeframe. The pair lately violated the sideways trading range of 104.600 – 104.200, and now it’s trading at 104.300 level, especially after bouncing off over 103.700 level on the lower side, supporting the pair around 103.700 level. On the downside, the USD/JPY may find support at the 103.200 level upon a bearish breakout of the 103.750 support level. While resistance stays at 104.350 and 104.700 today. Good luck

Categories
Forex Signals

AUD/USD Upward Channel Supports Buying – Dollar Getting Weaker! 

The AUD/USD pair was closed at 0.74414 after placing a high of 0.74493 and a low of 0.73977. The AUD/USD pair advanced to its highest since August 2018 on Thursday over the broad-based U.S. dollar weakness and the rising risk sentiment in the market. The U.S. dollar saw a massive sell-off on Thursday that led the U.S. Dollar Index to fell to its 2-years lowest level at 90.50. The latest decline in the demand for the U.S. dollar was droved by the rising hopes of a second round of stimulus package by Congress.

The second round of stimulus talks was resumed that succeeded in getting a consensus on a $908 billion bipartisan bill for coronavirus pandemic. The Democrats said that they would back the proposal as it was the starting step toward the stimulus package. These optimistic statements raised the hopes that the second round of financial aid from Congress for coronavirus pandemic will be released soon and support the economy. These hopes weighed on the U.S. dollar and supported the AUD/USD pair’s gains on Thursday. 

On the data front, at 02:30 GMT, AIG Construction Index from Australia came in as 55.3 against the previous 52.7. At 05:30 GMT, the Trade Balance from Australia surged to7.46B against the forecasted 5.83B and supported Aussie that added further gains in the AUD/USD pair on Thursday. At 17:30 GMT, the Challenger Job Cuts for the year in November came in as 45.4%against the previous 60.4%. At 18:30 GMT, the Unemployment Claims from last week declined to 712K against the predicted 775K and supported the U.S. dollar and capped further gains in AUD/USD pair. At 19:45 GMT, the Final Services PMI for November surged to 58.4 against the predicted 57.5 and supported the U.S. dollar. At 20:00 GMT, the ISM Services PMI stayed as predicted 55.9. Meanwhile, the AUD/USD pair also rose to its 2-years highest level on Thursday after the Caixin Services PMI on Thursday raised to 57.8 against the expected 56.5 and supported the China-proxy Aussie. 

The risk-perceived Australian dollar also followed the risk appetite and reached above its more than 2-years highest level as the optimism in the market related to vaccine development continuously supported the quick global economic recovery. This optimism also raised hopes that soon the vaccine will circulate in the market, and the economy will return to its pre-pandemic level that would help people return to their everyday routine lives. These positive hopes kept the market sentiment higher and supported Aussie’s risk on the bullish track.


Daily Technical Levels

Support Resistance

0.7371 0.7441

0.7326 0.7466

0.7301 0.7512

Pivot point: 0.7396

Entry Price – Buy 0.7437

Stop Loss – 0.7397

Take Profit – 0.7477

Risk to Reward – 1:1

Profit & Loss Per Standard Lot = -$400/ +$400

Profit & Loss Per Micro Lot = -$40/ +$40

Fellas, now you can check out forex trading signals via Forex Academy mobile app. Follow the links below.

iPhone Users: https://apps.apple.com/es/app/fasignals/id1521281368

Andriod Users: https://play.google.com/store/apps/details?id=academy.forex.thesignal&hl=en_US

We are really sorry for the unexpected result but we are working very hard to improve this strategy and let you enjoy it asap.

Kind regards

Categories
Forex Signals

USD/CAD Bearish Bias Seems to Halt – Eyes on U.S. NFP Figures! 

The USD/CAD pair was closed at 1.28619 after placing a high of 1.29411 and a low of 1.28519. The USD/CAD pair extended its losses for the 3rd consecutive day on Thursday due to broad-based U.S. dollar weakness and the rising crude oil prices.

The USD/CAD fell to its lowest since October 2018 on Thursday as the U.S. Dollar Index (DXY) reached 90.50 level, its lowest for 31 months. The U.S. dollar weakness could be attributed to the latest progress made in the talks of stimulus relief package in the U.S.

The Top Democrats officials, including President-elect Joe Biden, House Speaker Nancy Pelosi, and the Senate Minority Leader Chuck Schumer, have said that they favored a $908 billion worth bipartisan bill for now as it was the starting step towards the stimulus package. These comments from Democrats raised hopes that a deal might be reached between Republicans and Democrats. Both parties have a shared view that there was a need for a 2020 stimulus package in the economy and that a deal should be reached soon.

This progress raised the hopes and optimism in the market related to the U.S.’s stimulus package and weighed heavily on the U.S. dollar that ultimately added in the losses of the USD/CAD pair. Meanwhile, the WTI crude oil prices increased on Thursday as producers, including Saudi Arabia and Russia, resumed discussion to agree on how much crude to pump in 2021 after earlier talks failed to compromise how to tackle the weak oil demand coronavirus pandemic.

In late Thursday, OPEC+ announced after three days of discussion that they have agreed to increase the production by 500,000 barrels per day beginning in January. This will bring the total production cuts at the start of next year to 7.2 million BPD. On Thursday, the rising crude oil prices added strength in the commodity-linked Loonie that added further pressure on the USD/CAD pair.

On the data front, at 17:30 GMT, the Challenger Job Cuts for the year in November came in as 45.4%against the previous 60.4%. At 18:30 GMT, the Unemployment Claims from last week fell to 712K against the expected 775K and supported the U.S. dollar. At 19:45 GMT, the Final Services PMI for November rose to 58.4 against the forecasted 57.5 and supported the U.S. dollar. At 20:00 GMT, the ISM Services PMI stayed as forecasted 55.9.


Daily Technical Levels

Support Resistance

1.2898 1.2950

1.2877 1.2981

1.2847 1.3002

Pivot point: 1.2929

The USD/CAD traded in a selling mode, falling below the 1.2885 level to test the support area of the 1.2845 level. Bearish crossover of 1.2845 level can extend selling bias until 1.289 level. We opened a selling trade during the European open, but it seems to consolidate sideways ahead of the NFP figures. Here’s a trading plan for now…

Entry Price – Sell 1.28485

Stop Loss – 1.28885

Take Profit – 1.28085

Risk to Reward – 1:1

Profit & Loss Per Standard Lot = -$400/ +$400

Profit & Loss Per Micro Lot = -$40/ +$40

Fellas, now you can check out forex trading signals via Forex Academy mobile app. Follow the links below.

iPhone Users: https://apps.apple.com/es/app/fasignals/id1521281368

Andriod Users: https://play.google.com/store/apps/details?id=academy.forex.thesignal&hl=en_US

Categories
Forex Market Analysis

Daily F.X. Analysis, December 04 – Top Trade Setups In Forex – NFP in Highlights! 

The eyes will remain on the U.S. NFP data on the news side, which is expected to report a slight drop from 638K to 500K during the previous month. Besides, the U.S. Average Hourly Earnings m/m and Unemployment Rate will also remain the main highlight of the day, and these may determine the USD trend for today and next week. Let’s wait for the news.

Economic Events to Watch Today  

 


EUR/USD – Daily Analysis

The EUR/USD pair was closed at 1.21474 after placing a high of 1.21744 and a low of 1.21008. EUR/USD pair extended its gains for the 3rd consecutive day on Thursday due to the U.S. dollar’s weakness amid the rising hopes for the next round of U.S. stimulus package from Congress.

The Top Democrats, Joe Biden, and Nancy Pelosi backed the bipartisan $908 billion stimulus plan on the previous day. They urged the Senate Majority Leader Mitch McConnell to drop his plan to bring a more modest package. All top Democrats, including the President-elect Joe Biden, Nancy Pelosi, and the Senate Minority Leader Chuck Schumer, said that the bill would be acceptable as a starting point. 

The need for more stimulus relief packages to support the economy was increasingly evident, with both the ADP Non-Farm Payrolls and the ISM manufacturing survey below the expectations. Meanwhile, Car and Truck sales in November also fell from October level. On the coronavirus front, the U.S. had its deadliest day since the start of the pandemic on Thursday, with over 2700 recorded deaths due to coronavirus. Over the past 2-days alone, the death toll has reached 5000. The number of hospitalized people also reached for the first time, an alarming level of 100,000. All these developments weighed heavily on the U.S. dollar on Thursday and added strength to the EUR/USD pair.

The Spanish Services PMI for November raised to 39.5 against the expected 36.5 and supported Euro and added further gains in EUR/USD pair. At 13:45 GMT, the Italian Services PMI declined to 39.4 against the forecasted 40.9 and weighed on Euro. At 13:50 GMT, the French Final Services PMI fell to 38.8 against the anticipated 49.1 and weighed on Euro. AT 13:55 GMT, the German Final Services PMI came in line with the expectations of 46.2. At 14:00 GMT, the Final Services PMI from Eurozone raised to 41.7 against the expected 41.3 and supported Euro and the EUR/USD pair raised further. At 15:00 GMT, the Retail Sales for October also surged to 1.5% against the anticipated 0.7% and supported Euro and helped the EUR/USD pair to continue its bullish momentum.

From the U.S. side, at 17:30 GMT, the Challenger Job Cuts for the year in November came in as 45.4%against the previous 60.4%. At 18:30 GMT, the Unemployment Claims from last week fell to 712K against the anticipated 775K and supported the U.S. dollar. At 19:45 GMT, the Final Services PMI for November surged to 58.4 against the anticipated 57.5 and supported the U.S. dollar. At 20:00 GMT, the ISM Services PMI stayed as anticipated 55.9.

Daily Technical Levels

Support   Resistance

1.1971       1.2122

1.1873       1.2175

1.1819       1.2273

Pivot point: 1.2024

EUR/USD– Trading Tip

On Friday, the EUR/USD pair continues to trade sideways ahead of the NFP figures, which may drive sharp movements during the U.S. session.

On the higher side, the EUR/USD may find an immediate resistance at 1.2160 and 1.2196 level. Simultaneously, the closing of candles below the 1.2103 level can send the EUR/USD pair further lower until 1.2080. Trend depends upon the NFP data.


GBP/USD – Daily Analysis

The GBP/USD closed at 1.34525 after placing a high of 1.34998 and a low of 1.33288. The GBP/USD pair rose and reached above one year’s highest level over the bullish Brexit bets and the U.S. dollar’s weakness. On Thursday, the latest news raised the British Pound over the board that suggested that the Brexit trade deal could be reached by the weekend after the two sides showed hints of compromise over fish quotas. The positive news made the British Pound the best performer on the day in the G10 currencies. 

In an attempt to break the deadlock, Mr. Barnier and Boris Johnson lowered their demands by asking to get back only 60% of the fish that E.U. boats currently catch in British waters, down from 80%. Under the reported proposal, the U.K. would hold onto increased stocks of fish that are sold in the U.K. while the E.U. will keep the similar quotas of stock that are popular in the E.U. but not in the U.K.

The compromise was reported less than a week after E.U. Brexit negotiator Michel Barnier proposed to return about 15-18% of the fish caught by European fleets in British waters to the U.K. under a free trade agreement; however, at that time, the U.K. rejected this proposal.

The progress on fisheries is progress after a months-long stalemate; however, other key sticking points, including the level-playing field and governance, need to be solved to reach a deal. The time for the end of the Brexit transition period is near, and both sides have shown hints that a deal might reach by this weekend.

All these optimistic Brexit progress reports gave the local currency British Pound strength and supported the GBP/USD pair’s upward momentum that led the pair to its one-year highest level near 1.35000 on Thursday.

On the data front, at 14:30 GMT, the Final Services PMI from Britain raised to 47.6 against the expected 45.8 and supported British Pound and added further gains in GBP/USD pair.

From the U.S. front, at 17:30 GMT, the Challenger Job Cuts for the year in November came in as 45.4%against the previous 60.4%. At 18:30 GMT, the Unemployment Claims from last week declined to 712K against the projected 775K and supported the U.S. dollar. At 19:45 GMT, the Final Services PMI for November rose to 58.4 against the projected 57.5 and supported the U.S. dollar. At 20:00 GMT, the ISM Services PMI stayed as projected 55.9.

Furthermore, the gains in GBP/USD pair on Thursday were also because of the U.S. dollar’s weakness due to the progress in talks to reach a consensus between Republicans & Democrats over the second round of stimulus talks. Joe Biden, Nancy Pelosi, and Chuck Schumer have shown their consent for the bipartisan bill of $908 billion. This progress raised the hopes for a stimulus bill and weighed on the U.S. dollar that added strength to the GBP/USD pair.

Daily Technical Levels

Support   Resistance

1.3286       1.3441

1.3209       1.3519

1.3131       1.3596

Pivot Point: 1.3364

GBP/USD– Trading Tip

The GBP/USD is trading sideways in between a fresh trading range of 1.3305 – 1.3445. Breakout of this range can lead the Cable price towards the 1.3517 level. The volatility seems low ahead of the Christmas holidays. However, the European session can trigger a buying trend until the 1.3515 level, while support continues to stay at the 1.3305 level. A bearish breakout of the 1.3305 level can trigger selling until the 1.3212 level. The MACD and RSI are suggesting a bullish bias in the market. Let’s consider taking buying trades over 1.3305 and 1.3447 level today.


USD/JPY – Daily Analysis

The USD/JPY pair was closed at 103.841 after placing a high of 104.534 and a low of 103.669. The USD /JPY pair dropped to its lowest since November 18 on Thursday due to broad-based U.S. dollar weakness.

The U.S. Dollar Index extended its losses for 3rd consecutive day on Thursday and fell to a 31-month lowest level below 91.10 after the hopes for the next round of stimulus raised in the market. The top three Democratic Leaders, President-elect Joe Biden, House Speaker Nancy Pelosi, and Senate Minority Leader Chuck Schumer, backed the bipartisan proposal for a coronavirus relief package worth $908 billion. They all urged the Senate Majority Leader Mitch McConnell to drop his plans of bringing a more modest package back to the floor of the upper chamber.

Both parties agree that more relief aid should be delivered to Americans to curb the coronavirus pandemic’s effects but have differences over the size, method, and healthcare system. The renewed efforts to strike a deal followed a months-long deadlock over the second stimulus relief package and weighed heavily on the greenback that added losses in the USD/JPY pair.

On the data front at 17:30 GMT, the Challenger Job Cuts for the year in November came in as 45.4%against the previous 60.4%. At 18:30 GMT, the Unemployment Claims from last week dropped to 712K against the estimated 775K and supported the U.S. dollar, and capped further losses in the USD/JPY pair. At 19:45 GMT, the Final Services PMI for November rose to 58.4 against the estimated 57.5 and supported the U.S. dollar. At 20:00 GMT, the ISM Services PMI stayed as estimated at 55.9.

Furthermore, the U.S. dollar was also weak because of the rising cases of coronavirus in the U.S. The U.S. saw its deadliest day since the start of the pandemic on Thursday after 2,700 deaths were reported in a single day. Over the past two days only, the death toll has reached 5,000 in the U.S. from the coronavirus, and the hospitalization rate has also increased, with more than 100,000 cases reported to be hospitalized in a single day.

These raised concerns for the U.S. economy as many states were still under strict restrictive measures, and the economic activities there were still affected. The rising number of deaths might weigh more on the local currency. The U.S. dollar came under pressure and dragged the USD/JPY pair further on the downside.

Daily Technical Levels

Support   Resistance

104.13       104.54

103.95       104.77

103.72       104.95

Pivot point: 104.36

USD/JPY – Trading Tips

The USD/JPY has violated the sideways trading range of 104.600 – 104.200, and now it’s trading at 103.876 level. On the lower side, the pair has formed a triple bottom level, supporting the pair around 103.700 level. Investors seem to wait for the U.S. NFP and unemployment rate figures to determine further U.S. dollar trends. On the lower side, the USD/JPY may head towards the 103.200 level upon a bearish breakout of the 103.750 support level. While resistance stays at 104.350 today. Good luck

Categories
Forex Signals

USD/CHF Violates Descending Triangle Pattern – Quick Trade Setup! 

During Thursday’s early European trading hours, the USD/CHF currency pair failed to stop its overnight bearish bias and remained depressed for the 3rd-consecutive session on the day. However, the reason for the bearish bias around the currency pair could be associated with the broad-based U.S. dollar weakness, triggered by hopes for additional U.S. fiscal stimulus from the U.S. Federal Reserve. Moreover, the U.S. economic recovery concerns amid intensifying coronavirus woes also exerted downside pressure on the American currency, which turned out to be one of the major factors that kept the currency pair under pressure. 

Across the pond, the disappointing ADP report on private-sector employment fueled worries about the economic fallout from the continuous surge in new COVID-19 cases in the United States, which also exerted downside pressure on the market trading sentiment and contributed to the currency pair losses. In the meantime, the on-going uncertainty over Brexit trade talks and worries of trade/political war between the West and China provides additional support to the safe-haven Swiss Francs, which adds further burden around the currency pair. Conversely, the selling bias surrounding the equity market was capped by the optimism over a potential vaccine for the hazardous coronavirus infection, which might help the currency pair limit its deeper losses. 

The market risk-on tone faded instantly after the Trump administration issued new guidelines restricting travel to the U.S. by members of the Chinese Communist Party, which tend to fuel already intensified tension between the United States and China. Across the pond, the rising COVID-19 cases still not showing any sign of slowing down, which in turn strengthened lockdown restrictions across Europe and the U.S. As per the latest report, Germany and France have been introducing new measures to curb the virus spread. These concerns kept fueling the global economic recovery worries and kept the market trading sentiment under pressure. 

Despite the risk-off-market sentiment, the broad-based U.S. dollar failed to stop its previous session declining streak and remained bearish on the day as doubts persist over the global economic recovery from COVID-19. Furthermore, the U.S. Federal Reserve’s expectations of further monetary easing also weigh on the U.S. dollar. Besides this, the encouraging data from COVID-19 vaccine developers urge investors towards riskier currencies and higher-yielding assets against the safe-haven asset, which eventually leads to losses in the safe-haven U.S. dollar. However, the U.S. dollar losses became the key factor that kept the currency pair under pressure. 

On the contrary, the bearish bias around the equity market was capped by the prevalent optimism over a possible vaccine for the highly infectious coronavirus disease. However, the hopes of the vaccine were boosted after the United Kingdom became the first country to approve a vaccine jointly developed by Pfizer and BioNTech. These optimistic hopes become the key factor that lends some support to the currency pair to ease the intraday bearish pressure surrounding the USD/CHF currency pair.  


Looking forward, the market traders will keep their eyes on the Unemployment Claims and the Final Services PMI for fresh directions. In addition to this, the risk catalyst like geopolitics and the virus woes, not to forget the Brexit, will not lose their importance.

Daily Support and Resistance

S1 0.8828

S2 0.8898

S3 0.8922

Pivot Point 0.8968

R1 0.8991

R2 0.9038

R3 0.9107

The market’s technical side is exhibiting a sharp bearish bias for the USD/CHF as the pair is trading at a 0.8907 level. The USD/CHF pair has recently violated the descending triangle pattern on the daily timeframe, driving a sharp selling trend in the pair. For now, the pair may find resistance at 0.89500 and 0.9000 level while the support stays at the 0.8843 level. Let’s consider taking a buying trade near the 0.8843 level today. Good luck! 

Categories
Forex Signals

USD/CAD Bearish Continues to Dominate the Market- Sell Signal In-Play

The USD/CAD pair was closed at 1.29183 after placing a high of 1.29584 and a low of 1.29098. The USD/CAD pair dropped for the second consecutive day on Wednesday towards its lowest since October 2018 amid the broad-based US dollar weakness and rising crude oil prices.
The US dollar was weak across the board on Wednesday as the hopes for further stimulus relief bill from Congress rose day by day and calls for its from top officials. The prospects of a renewed stimulus bill to support the US economy through the pandemic crisis weighed on the local currency US dollar and weighed on the USD/CAD pair.

After the vaccine development from various drug companies, the ongoing risk sentiment also added weight to the safe-haven greenback. The US dollar index plunged to its lowest in 30 months on Wednesday to 91.10 level and added pressure on the USD/CAD pair. Meanwhile, Pfizer and BioNtech received approval from the UK Administration on Wednesday and became the first to use their vaccine widely. This optimistic report added strength to the risk sentiment and weighed on the US dollar that dragged the currency pair USD/CAD on the two-year lower level.

Meanwhile, the WTI Crude oil prices raised on Wednesday to near $46 per barrel amid declining crude oil stockpiles from the US on the day and added strength in the commodity-linked currency Loonie ultimately added in the losses of USD/CAD pair.

Furthermore, on the data front, at 18:30 GMT, the Labor Productivity for the quarter from Canada came in as -10.3% against the forecasted -6.9% and supported the Canadian Dollar and added losses in USD/CAD pair. From the US front, at 18:15 GMT, the ADP Non-Farm Employment Change for November declined to 307K against the expected 433K and weighed on the US dollar and added losses in the USD/CAD pair.


Daily Technical Levels
Support Resistance
1.2902 1.2984
1.2873 1.3037
1.2820 1.3066
Pivot point: 1.2955

On the technical side, the commodity currency pair USD/CAD is trading with a selling bias at the 1.2939 level, having crossed below the 1.2939 support level, which is now anticipated to work as a resistance. On the 4 hour timeframe, the USD/CAD has produced a downward channel, which supports the selling bias in the Loonie. Closing of candles below the 1.2945 level may assist us catch a quick selling trade. Good luck!

Categories
Forex Market Analysis

Daily F.X. Analysis, December 03 – Top Trade Setups In Forex – Services PMI under Spotlight! 

The focus will remain on the range of services PMI numbers from the Eurozone and U.K. on the data front. Most of the data is anticipated to be neutral; nevertheless, the U.S. Unemployment Claims and ISM Services PMI will be the main highlight of the day.

Economic Events to Watch Today  

 


EUR/USD – Daily Analysis

The EUR/USD closed at 1.21150 after placing a high of 1.21182 and a low of 1.20398. The EUR/USD pair rose to its highest since April 2018 on Wednesday amid rising optimism from the vaccine front and the fiscal stimulus hopes.

On Wednesday, the U.K. regulator approved Pfizer and BioNtech’s vaccine for emergency use to fight against the coronavirus. This news added further support to the already improved risk sentiment in the market and helped the EUR/USD pair to rise as it is a riskier asset.

On the data front, at 12:00 GMT, the German Retail Sales for October raised to 2.6% against the projected 1.3% and supported Euro that added further gains in EUR/USD pair. At 13:00 GMT, the Spanish Unemployment Change dropped to 25.3K against the estimated 54.5K and supported Euro and added further gains in EUR/USD pair. At 14:00 GMT, Italian Monthly Unemployment Rate for October declined to 9.8% against the forecasted 9.9% and supported Euro and helped EUR/USD rise. At 15:00 GMT, the PPI for October raised to0.4% against the forecasted 0.2% and kept the single currency Euro and gave additional support to EUR/USD pair. The Unemployment Rate in Eurozone remained flat at 8.4%.

At 18:15 GMT, the ADP Non-Farm Employment Change for November fell to 307K against the anticipated 433K and weighed on the U.S. dollar and added further in EUR/USD pair. After the release of macroeconomic data on Wednesday, the currency pair EUR/USD raised sharply and surpassed the 1.2100 level as all the data was in favor of it. Meanwhile, the lawmakers in Washington continued their negotiations related to a fiscal stimulus deal to support the U.S. economy. The negotiations weighed on local currency and made the U.S. dollar weak across the board. Furthermore, the optimism about a $908 billion package also boosted the market’s risk sentiment and weighed on the U.S. dollar that added additional gains in EUR/USD pair.

The U.S. dollar was also weak because of the rising number of coronavirus cases in the U.S. On Wednesday, the total number of deaths from coronavirus set a new record in a single day, and hospitalizations also reached an all-time high. On Wednesday, about 100,200 patients of coronavirus were hospitalized in the U.S. The U.S. Dollar Index on Wednesday slumped to its lowest level in more than 30 months at 91.10 and supported the upward momentum of the EUR/USD pair.

Daily Technical Levels

Support   Resistance

1.1971       1.2122

1.1873       1.2175

1.1819       1.2273

Pivot point: 1.2024

EUR/USD– Trading Tip

The bullish bias of the EUR/USD continues to dominate the market as the pair surged further higher until the 1.2117 level. On the higher side, the EUR/USD may find an immediate resistance at 1.2150 and 1.2196 level. Simultaneously, the closing of candles below the 1.2153 level can send the EUR/USD pair further lower until 1.2080. On the 4 hour timeframe, the EUR/USD has formed an upward channel, which is suggesting odds of further buying trend in the pair. The MACD is forming histograms above 0, suggesting odds of an upward trend in the market. Let’s consider the buying trend until the 1.2200 level today. 


GBP/USD – Daily Analysis

The GBP/USD closed at 1.33651 after placing a high of 1.34410 and a low of 1.32875. The British Pound erased gains and slipped to a 3-week lowest level on Wednesday after the E.U.’s chief Brexit negotiator said that progress in talks had stalled and cooled the expectations that a deal was near.

Michel Barnier said that a deal was not guaranteed and signaled that differences over key issues, including access to the U.K. fishing waters and level playing field rules, were still there. A day before this news, reports suggested that post-Brexit trade talks had reached the so-called tunnel. Tunnel refers to a situation where both parties don’t leave until a consensus is reached.

Ahead of the update, there were signs the ongoing impasse was starting to frighten some members, who have called on the E.U. to start preparation for a no-deal scenario. There likely could be another twist to come in Brexit talks in the days ahead with the U.K.’s proposal for a new finance bill. This bill undermines some parts of the original Brexit Withdrawal agreement, and it could dent the little progress in negotiations seen so far.

Whereas, Barnier said that if the U.K. government moved ahead next week with draft clauses in the Finance Bill that were inconsistent with the Withdrawal Agreement, then the talks will come under crisis.

All these negative reports depressed Brexit’s expectations and started to weigh on British Pound that added losses in GBP/USD pair. The time for an end of Brexit transition period on December 31 has come near, and if a deal has not been reached by then, U.K. will have to follow WTO rules and regulations while trading with the E.U.

Meanwhile, on the data front, at 05:01 GMT, the BRC Shop Price Index for the year dropped to -1.8% against the forecasted -1.3% and weighed on British Pound and added pressure on GBP/USD pair. On the U.S. front, at 18:15 GMT, the ADP Non-Farm Employment Change for November dropped to 307K against the anticipated 433K and weighed on the U.S. dollar, and capped further losses in the GBP/USD pair.

Daily Technical Levels

Support   Resistance

1.3340       1.3468

1.3263       1.3519

1.3212       1.3595

Pivot point: 1.3391

GBP/USD– Trading Tip

The GBP/USD is trading sideways in between a fresh trading range of 1.3305 – 1.3445. Breakout of this range can lead the Cable price towards the 1.3517 level. The volatility seems low ahead of the Christmas holidays. However, the European session can trigger a buying trend until the 1.3515 level, while support continues to stay at the 1.3305 level. A bearish breakout of the 1.3305 level can trigger selling until the 1.3212 level. The MACD and RSI are suggesting a bullish bias in the market. Let’s consider taking buying trades over 1.3305 and 1.3447 level today.


USD/JPY – Daily Analysis

The USD/JPY pair was closed at 104.410 after placing a high of 104.749 and a low of 104.223. The USD/JPY pair raised for the third consecutive day on Wednesday amid the market’s optimism. However, most of USD/JPY’s daily gains were lost during the late trading session as U.S. stimulus raised.

The risk sentiment in the market was improved after the successful vaccine development from famous drug companies. Pfizer and BioNtech even received approval from the U.K. administration for emergency use authorization of their vaccine on Wednesday. Pfizer & BioNtech became the first in the world to get approval for the widespread use of their vaccine. It means that their vaccine can now be used to prevent the coronavirus officially, and it raised the risk sentiment in the market that ultimately added weight on the Japanese Yen due to its safe-haven nature; thus, it supported the upward momentum of the USD/JPY pair.

The Monetary Base for the year dropped to 16.5% against the forecasted 17.2%. At 09:59 GMT, Consumer Confidence raised to 33.7 against the anticipated 33.0 and supported the Japanese Yen that capped additional gains in the USD/JPY pair on Wednesday. At 18:15 GMT, the ADP Non-Farm Employment Change for November fell to 307K against the estimated 433K and weighed on the U.S. dollar that limited the gains of the USD/JPY pair on Wednesday.

The prospects of a U.S. coronavirus relief package weighed on the greenback and forced the currency pair USD/JPY to lose most of its daily gains. As the $1.4trillion spending bill’s support increased, the top U.S. economic officials on Tuesday advised Congress to present more assistance for small businesses to survive during the pandemic.

Meanwhile, Philadelphia Federal Reserve Bank President Patrick Harker said on Wednesday that due to the increased spread of the coronavirus and delayed fiscal help along with the permanent job loss of some workers, the U.S. economic growth has been moderate.

Harker also forecasted moderate growth for the rest of this year and the first quarter of 2021. He also predicted that the economy would stay below pre-pandemic levels. Harker also said that if the vaccine is widely available by next spring and summer, then the growth will pick up in the second half of the next year. Harker added that more financial support was needed to get the economy to that point and to support low-income households.

Harker also said that the Central Bank’s emergency lending programs should be extended beyond next year as they are set to expire on December 31. Harker’s comments came in after Treasury Secretary Steven Mnuchin asked the Fed to return the unused funds. All these comments added pressure on the U.S. dollar as the continuous demand for a second stimulus bill weighed on local currency.

Daily Technical Levels

Support   Resistance

104.13       104.54

103.95       104.77

103.72       104.95

Pivot point: 104.36

USD/JPY – Trading Tips

The USD/JPY is trading with a sideways trading range of 104.600 – 104.200, holding below an immediate resistance level of 104.600. On the lower side, the safe-haven currency pair may find support at the 103.719 level. The pair seems to disrupt the resistance level of 104.600, and if this happens, the USD/JPY may soar until the next resistance area of 105.030 level. The MACD and RSI support the buying trend, but we should only take buying positions over the 104.600 level today. Good luck!

Categories
Forex Signals

EUR/USD Fibonacci Retracement in Play – Signal Seems to Reverse! 

The EUR/USD surged dramatically on the back of risk-on sentiment amid positive reports over the COVID19 vaccine, which dragged the pair higher above the 1.2074 level. On the higher side, the violation of the 1.2010 resistance level is now working as a support, and it can lead the pair further higher until 1..2160. The bullish bias remains dominant today, especially over the 1.2015 level. However, the EUR/USD pair has recently formed a tweezers top pattern around 1.2076, suggesting the bearish retracement’s odds. In this case, the EUR/USD can also drop until the support level of 1.2017 that marks 23.6% Fibonacci retracement. Let’s keep an eye on the 1.2060 support level today. 


Entry Price – Sell 1.20589

Stop Loss – 1.20989

Take Profit – 1.20189

Risk to Reward – 1:1

Profit & Loss Per Standard Lot = -$400/ +$400

Profit & Loss Per Micro Lot = -$40/ +$40

Fellas, now you can check out forex trading signals via Forex Academy mobile app. Follow the links below.

iPhone Users: https://apps.apple.com/es/app/fasignals/id1521281368

Andriod Users: https://play.google.com/store/apps/details?id=academy.forex.thesignal&hl=en_US

Categories
Forex Signals

AUD/USD Supported By Upward Channel – Brace for a Buy Trade! 

The AUD/USD closed at 0.73723 after placing a high of 0.73731 and a low of 0.73393. The increasing risk sentiment in the market due to vaccine hopes they raised the risk-sensitive Aussie in the market and supported the AUD/USD pair’s upward momentum. Another factor involved in the rising AUD/USD prices on Tuesday as the US dollar’s weakness.

The US dollar lost its traction in the market after the hopes for further stimulus from Congress were raised, and the macroeconomic data also came in against the local currency. The losses in the US dollar could also be attributed to the rising number of coronavirus cases in the USA.

On Tuesday, the US health officials said that Americans would hopefully receive the vaccine shots against the coronavirus starting from mid-December after the emergency authorization use of Pfizer’s vaccine will be approved by the US FDA. This positive news supported the risk sentiment, raised the risk-sensitive Aussie on board, and supported the AUD/USD pair’s upward momentum.

Another reason behind the bullish movement of the AUD/USD pair on Tuesday was the increasing hopes of the US stimulus bill after the testimony of Jerome Powell and Steven Mnuchin. The Fed chair Jerome Powell said that the rising number of coronavirus cases and deaths because of the pandemic had destroyed the US economy’s outlook. The outgoing US Treasury Secretary Steven Mnuchin also urged the lawmakers to release the second round of US stimulus package as the economy has been hit hard because of the pandemic due to increased restrictive measures in many states of America.

On the data front, at 02:30 GMT, the AIG Manufacturing Index came in November as 52.1 against the previous 56.3. At 05:30 GMT, the Building Permits from Australia raised in October to 3.8% against the forecasted -3.0% and supported the Australian dollar that added gains in AUD/USD pair. The Current Account Balance from Australia for October also raised to 10.0B from the forecasted 7.2B and supported Aussie that added further gains in AUD/USD pair. At 10:30 GMT, the Commodity Prices for the year from Australia were reported as 2.2%.

From the US front, at 20:00 GMT, the ISM Manufacturing PMI for November fell to 5.75 against the projected 5.9 and weighed on the US dollar and supported the upward momentum of the AUD/USD pair. For October, the Construction Spending rose to 1.3% against the estimated 0.8% and supported the US dollar. The ISM Manufacturing Prices for November surged to 65.4 against the forecasted 65.0 and supported the US dollar. The Wards Total Vehicle Sales from the US declined to 15.6M against the estimated 16.1M and weighed on the US dollar that added further gains in AUD/USD pair.

Meanwhile, on Tuesday, the Reserve Bank of Australia kept its Cash Rates to their rock bottom level at 0.1% and said it would not further cut the rates. The Governor of RBA Philip Lowe said that the bank was doing its best to revive the nation from its current coronavirus induced recession. Lowe added that the economic recovery was underway, but its economic data was coming better than expected.

He also said that the recovery was still expected to be uneven and was dependent on significant policy support. RBA’s GDP forecast would grow by around 5% in 2021 and 4% in 2022. The positive comments from RBA and positive outlook for Australia added strength in local currency Aussie and supported the bullish momentum of the AUD/USD pair on Tuesday.


Daily Technical Levels

Support Resistance

0.7347 0.7382

0.73270.7395

0.7313 0.7416

Pivot point: 0.7361

The AUD/USD is trading sideways, holding between 0.7392 – 0.7342 levels, and closing of candles below 0.7392 level supports selling bias. While buying trend can be seen over 0.7345 level. On the 2 hour timeframe, the AUD/USD has formed an upward channel, which is likely to keep the pair supported. Let’s consider taking a buying trade over the 0.7340 level today. Good luck! 

 

Categories
Forex Signals

USD/CAD Breaking Below Intraday Support – Quick Sell Trade!

The USD/CAD pair was closed at 1.29331 after placing a high of 1.30087 and a low of 1.29277. The USD/CAD pair fell on Tuesday despite the declining WTI crude oil prices due to weak US dollar demand on the day.
The USD/CAD pair dropped on the day as the US dollar was weak across the board after the release of US macroeconomic figures and also because of the rising hopes for the US stimulus package after the testimony of Jerome Powell and Steven Mnuchin.

On the data front, at 18:30 GMT, the Canadian Gross Domestic Product in October declined to 0.8% against the expected 0.9% and weighed on the Canadian dollar but failed to cap losses in the USD/CAD pair as the focus of investors was more towards the weakness of US dollar on the day. At 19:30 GMT, the Manufacturing PMI from Canada for November came in line with the forecasts of 55.8.

Whereas, on the US dollar front, at 20:00 GMT, the ISM Manufacturing PMI for November declined to 5.75 against the anticipated 5.9 and weighed on the US dollar and added further losses in the USD/CAD pair. For October, the Construction Spending rose to 1.3% from the projected 0.8% and supported the US dollar. The ISM Manufacturing Prices for November also raised to 65.4 against the anticipated 65.0 and supported the US dollar. The Wards Total Vehicle Sales from the US declined to 15.6M against the forecasted 16.1M and weighed on the US dollar that added further pressure on the USD/CAD pair on Tuesday.

Meanwhile, the hopes for further stimulus aid in the US from Congress started to rise as Jerome Powell called the outlook for the United States economy extraordinarily uncertain due to increased coronavirus cases and deaths. The US health officials have said that vaccinating Americans will hopefully be started by mid-December as the death rates have risen to an alarming level. All these things included US stimulus hopes, a rising number of coronavirus cases, and the weak macroeconomic data added heavy pressure on the US dollar that dragged the USD/CAD pair lower despite the declining crude oil prices on Tuesday.

The WTI Crude Oil prices also declined on Tuesday after the OPEC+ meeting was reportedly delayed until Thursday to allow for more negotiations. It came in as UAE signaled that it would not support the three months extension of current output cuts by OPEC+. Furthermore, Saudi Arabia also said that it was considering stepping down from the co-chair of the OPEC+ JMMC as the country was unhappy with the things going on recently.

The declining crude oil prices due to the delayed OPEC+ meeting also weighed on commodity lined Loonie, but it failed to reverse the USD/CAD pair’s direction as the focus of the market was solely on the US dollar’s weakness on Tuesday.


Daily Technical levels
Support Resistance
1.2902 1.2984
1.2873 1.3037
1.2820 1.3066
Pivot point: 1.2955

On the technical front, the USD/CAD pair is trading with a bearish bias at the 1.2939 level, having crossed below the 1.2939 support level, which is now likely to work as a resistance. On the 4 hour timeframe, the USD/CAD has formed a downward channel, which supports the selling bias in the Loonie. Closing of candles below the 1.2945 level may help us capture a quick selling trade. Check out a trading plan…

Entry Price – Sell 1.29237
Stop Loss – 1.29637
Take Profit – 1.28837
Risk to Reward – 1:1
Profit & Loss Per Standard Lot = -$400/ +$400
Profit & Loss Per Micro Lot = -$40/ +$40
Fellas, now you can check out forex trading signals via Forex Academy mobile app. Follow the links below.
iPhone Users: https://apps.apple.com/es/app/fasignals/id1521281368
Andriod Users: https://play.google.com/store/apps/details?id=academy.forex.thesignal&hl=en_US

Categories
Forex Market Analysis

Daily F.X. Analysis, December 02 – Top Trade Setups In Forex – Advance NFP in Focus!

On Wednesday, the eyes will remain on the Fed Chair Powell Testifies, ADP Non-Farm Employment Change and Unemployment Rate from the Eurozone. A primary focus will remain on the ADP Non-Farm Employment Change as this will help investors determine the odds of actual NFP data, which is due on Friday.

Economic Events to Watch Today  

 


EUR/USD – Daily Analysis

The EUR/USD closed at 1.20715 after placing a high of 1.20764 and a low of 1.19243. The EUR/USD surged above 1.2000 level and reached 1.20764 level, the highest level since May 2018 amid the optimism surrounding the coronavirus vaccine and broad-based U.S. dollar weakness.

Many factors were involved in the breakout of the EUR/USD pair on Tuesday above the 1.2000 level, including the latest optimism because of vaccine hopes, monetary stimulus from both sides, and the political certainty for a change. 

Pfizer and BioNtech were the first to report a high efficacy of 95% in a phase-3 coronavirus immunization trial on November 09. After that, many drug companies, including Moderna, AstraZeneca, Novavax, and Oxford University, also followed them. Pfizer and Moderna have already applied for emergency use authorization from the US FDA, and soon after getting the approval, these vaccines will be available for usage. Even Pfizer has sent its first mass shipment of vaccine to Chicago on Monday. All this vaccine optimism pushed the safe-haven U.S. dollar down and raised the risk sentiment in the market that supported the upward momentum of the EUR/USD pair on Tuesday.

On the stimulus front, the European Central Bank and the U.S. Federal Reserve were set to expand their bond-buying schemes. Since the pandemic has started, the stimulus aid from ECB has supported the Eurozone’s economy by allowing governments to spend more. In the United States, the Federal Reserve’s dollar printing triggered a broad risk-on mood that also helped the riskier assets like EUR/USD pair to rise. 

On the Political certainty front, the U.S. elections have declared a final winner- Joe Biden. While outgoing President Donald Trump has been continuously crying foul, his attempts to overturn the elections failed, and investors continued to price the Joe Biden victory and selling the U.S. dollar. Moreover, the nomination of Janet Yellen as Treasury Secretary was also reassuring.

On the E.U. front, the political development in the upcoming Brexit deal has entered a tunnel as an intense final round of talks is in progress, and the results of talks are yet to be declared. All these factors combined and supported the EUR/USD pair’s upward momentum on Tuesday.

On the data front, at 13:15 GMT, the Spanish manufacturing PMI for November declined to 49.8 against the forecasted 50.8 and weighed on Euro. At 13:45 GMT, the Italian Manufacturing PMI also dropped to 51.5 against the projected 52.0 and weighed on the single currency. At 13:50 GMT, the French Final Manufacturing PMI raised to 49.6 from the expected 49.1 and supported Euro. AT 13:55 GMT, the German Final Manufacturing PMI stayed the same at 57.8. The German Unemployment Change came in as -39K against the expected 9K and supported the single currency. At 14:00 GMT, the Final Manufacturing PMI from the Eurozone remained flat with the expected 53.8. At 15:00 GMT, the CPI Flash Estimate for the year dropped to -0.3% against the estimated -0.2% and weighed n Euro. The Core CPI Flash Estimate for the year came in line as expected 0.2%. 

On the U.S. front, at 20:00 GMT, the ISM Manufacturing PMI for November fell to 5.75 against the forecasted 5.9 and weighed on the U.S. dollar and supported the upward momentum of the EUR/USD pair. The Construction Spending for October surged to 1.3% against the estimated 0.8% and supported the U.S. dollar. The ISM Manufacturing Prices for November also surged to 65.4 against the forecasted 65.0 and helped the U.S. dollar. The Wards Total Vehicle Sales from the U.S. declined to 15.6M against the estimated 16.1M and weighed on the U.S. dollar that added further gains in EUR/USD pair.

Given the above manufacturing data, the Eurozone economy’s outlook looks somewhat better than the United States outlook that added extra pressure on the U.S. dollar and helped the EUR/USD pair to place highs above the 1.200 level on Tuesday.

Daily Technical Levels

Support   Resistance

1.1971       1.2122

1.1873       1.2175

1.1819       1.12273

Pivot point: 1.2024

EUR/USD– Trading Tip

The EUR/USD surged dramatically on the back of risk-on sentiment amid positive reports over the COVID19 vaccine, which dragged the pair higher above the 1.2074 level. On the higher side, the violation of the 1.2010 resistance level is now working as a support, and it can lead the pair further higher until 1..2160. The bullish bias remains dominant today, especially over the 1.2015 level. However, the EUR/USD pair has recently formed a tweezers top pattern around 1.2076, suggesting the odds of bearish retracement. In this case, the EUR/USD can also drop until the support level of 1.2017 that marks 23.6% Fibonacci retracement. Let’s keep an eye on the 1.2060 support level today. 


GBP/USD – Daily Analysis

The GBP/USD closed at 1.34224 after placing a high of 1.34424 and a low of 1.33149. After placing losses for three consecutive days, the GBP/USD pair rose on Tuesday and recorded gains on the back of broad-based U.S. dollar weakness and increased Brexit hopes. The GBP/USD pair hit the highs at 1.3400 level on Tuesday over the positive Brexit news after the Times Radio’s Chief Political Commentator Tom Newton Dunn tweeted the U.K. and E.U. trade deal talks have entered a mythical tunnel. Though either side formally confirmed or rejected the “tunnel” status of negotiations after his tweet. 

The tunnel refers to a state of intense negotiation that essentially ends up having some agreement between both parties, and before that, neither side leaves. Though it does not guarantee a deal will be made, it shows a strong willingness/commitment from both sides to work as hard as possible to get a compromise. After this tweet by Dunn, the GBP/USD pair started to gain traction and rise in the financial market due to increased demand for British Pound. 

On the other hand, the GBP/USD pair’s gains could also be attributed to the U.S. dollar’s weakness. The greenback was weak across the board after the release of poor macroeconomic data and the rising number of coronavirus cases in the U.S.

The top U.S. health officials announced plans on Tuesday to begin vaccinating Americans against the coronavirus as early as mid-December amid the increasing death from coronavirus. The nationwide deaths hit the highest number for a single day in six months in the U.S. and raised economic recovery fears that led to the U.S. dollar’s weakness and improved GBP/USD pair.

On the data front, at 20:00 GMT, the ISM Manufacturing PMI for November declined to 5.75 against the estimated 5.9 and weighed on the U.S. dollar and supported the bullish momentum of the GBP/USD pair. For October, the Construction Spending rose to 1.3% against the projected 0.8% and helped the U.S. dollar. The ISM Manufacturing Prices for November also raised to 65.4 against the estimated 65.0 and supported the U.S. dollar. The Wards Total Vehicle Sales from the U.S. fell to 15.6M against the anticipated 16.1M and weighed on the U.S. dollar that added further gains in GBP/USD pair.

On Britain front, at 12:00 GMT, the Nationwide HPI for November raised to 0.9% against the forecasted 0.2% and supported the British Pound that added further gains in GBP/USD pair on Tuesday. At 14:30 GMT, the Final Manufacturing PMI also raised to 55.6 against the expected 55.2 and supported the British Pound that added further gains in GBP/USD pair.

Daily Technical Levels

Support   Resistance

1.3316       1.3342

1.3301       1.3353

1.3290       1.3368

Pivot point: 1.3327

GBP/USD– Trading Tip

The GBP/USD is trading sideways, having violated the narrow trading range of 1.3397 – 1.3304. The market is expected to display choppy sessions with a new limited range of 1.3397 to 1.3452 level. The violation of a triple top resistance level of 1.3397 level is now working as a support, and it may trigger a bounce off in the Cable until 1.3452 and 1.3512 level. Let’s keep an eye on the 1.3397 level to stay bullish above this level today. 


USD/JPY – Daily Analysis

The USD/JPY pair was closed at 104.305 after placing a high of 104.576 and a low of 104.180. The USD/JPY pair stayed on a bullish track on Tuesday despite the broad-based U.S. dollar weakness due to increased risk flow in the market. The stock markets have been buoyed by the news that the first coronavirus vaccine could be administered by the end of the year. Despite the acceleration of the pandemic in the U.S. and many other parts of the world, the riskier assets gained on the back of improved risk sentiment due to vaccine hopes. The U.S. Dollar Index (DXY) that measures the U.S. dollar value against the six currencies basket fell to 92 levels on Tuesday.

The pair rose above 104.5 level on Tuesday amid the broad-based risk sentiment in the market over the optimism surrounding the vaccine hopes. However, the gains in USD.JPY pair started to fade away in the late trading session after the US ISM Manufacturing PMI release for November. In November, the declining manufacturing activity was the proof of halted manufacturing activity due to the rising number of restrictive measures in many states of America due to escalated second wave of coronavirus.

At 04:30 GMT, the Unemployment Rate from Japan for October remained flat with the expectations of 3.1%. At 04:50 GMT, the Capital Spending for the quarter from Japan came in as -10.6% against the expected -12.0% and supported the Japanese Yen that limited the USD/JPY pair’s gains. AT 05:30 GMT, the Final Manufacturing PMI from Japan also raised to 49.0 against the expected 48.3 and supported the Japanese Yen that capped further gains in the USD/JPY pair.

On the U.S. dollar front, at 20:00 GMT, the ISM Manufacturing PMI for November fell to 5.75 against the projected 5.9 and weighed on the U.S. dollar that capped further gains in the USD/JPY pair. For October, the Construction Spending surged to 1.3% against the estimated 0.8% and supported the U.S. dollar and added gains in the USD/JPY pair. The ISM Manufacturing Prices for November also rose to 65.4 against the expected 65.0 and helped the U.S. dollar that added additional gains in the USD/JPY pair. The Wards Total Vehicle Sales from the U.S. dropped to 15.6M against the expected 16.1M and weighed on the U.S. dollar that capped further gains in the USD/JPY pair.

Meanwhile, the U.S. death rate because of the COVID-19 virus has also increased to an alarming level as it posted the highest number for a single day in six months. The Top U.S. health official announced plans on Tuesday to begin vaccinating Americans against the coronavirus as early as mid-December. This statement also raised the risk sentiment and added weight on the Japanese Yen that supported the USD/JPY pair’s upward momentum on Tuesday.

Furthermore, On Tuesday, Federal Reserve Chairman Jerome Powell said that the United States economy’s outlook was extraordinarily uncertain due to increased numbers of coronavirus cases that have affected the U.S. economy hardly. 

In his testimony to the U.S. Senate Committee on Banking, Housing and Urban Affairs, Powell said that the increasing number of COVID-19 cases in the U.S. and abroad were concerning. He said that until the people were confident about re-engaging the economic activities confidently, full economic recovery was impossible. At the same time, Powell was upbeat over the recent optimistic news on vaccine development worldwide.

Meanwhile, several programs set by the Federal Reserve in March are near to end of the year. In response to this, Powell stated that these programs would help unlock almost $2 trillion funding. After this report, the USD/JPY pair started losing its early daily gains as the greenback became weak across the board due to rising hopes for stimulus measure.

Furthermore, On Tuesday, the outgoing Treasury Secretary Steven Mnuchin also testified before the Senate and urged lawmakers to pass a second stimulus bill quickly. This also added in the U.S. dollar weakness and capped further gains in the USD/JPY pair on Tuesday.

Daily Technical Levels

Support   Resistance

104.03       104.16

103.97       104.23

103.91       104.29

Pivot point: 104.10

USD/JPY – Trading Tips

The USD/JPY is trading with a sideways trading range of 104.600 – 104.200, holding below an immediate resistance level of 104.600. On the lower side, the safe-haven currency pair may find support at the 103.719 level. The pair seems to disrupt the resistance level of 104.600, and if this happens, the USD/JPY may soar until the next resistance area of 105.030 level. The MACD and RSI support the buying trend, but we should only take buying positions over the 104.600 level today. Good luck!

Categories
Forex Signals

AUD/USD Violates Upward Channel – An Update on Signal! 

The AUD/USD pair was closed at 0.73435 after placing a high of 0.74070 and a low of 0.73388. The currency pair AUD/USD raised to its highest in 4 months on Monday in an early trading session due to improved risk sentiment failed to remain there for longer and reversed its direction as the US dollar Index raised.

The risk sentiment in the market was supported by multiple factors, including the vaccine optimism and the resumed talks in Congress for issuance of a second stimulus package. Pfizer sent its first mass shipment of coronavirus vaccine to Chicago on Monday and added in the market’s risk sentiment. Moderna also applied on Monday for emergency use authorization of its vaccine to curb the coronavirus pandemic’s effect.

These factors raised the demand for risk-sensitive Aussie and supported the upward momentum of AUD.USD pair in early trading hours of the day. However, the gains were lost during the late trading session as the US Dollar Index rebounded. The US Dollar Index (DXY) bounced back on Monday from its lower 91.8 level amid the decline in US Wall Street’s main indexes. The Dow Jones Industrial Average and S&P 500 indexes fell on Monday and added strength to the US dollar.

Meanwhile, on the data front, at 05:00 GMT, the MI Inflation Gauge for November came in as 0.3% in comparison to -0.1%. At 05:30 GMT, the Company’s Operating Profits for the quarter decreased to 3.2% against the forecasted 4.0% and weighed on the Australian dollar and added further in the losses of AUD/USD pair. The Private Sector Credit for November also declined to 0.0% against the estimated 0.1% and weighed on the Australian dollar and added further losses in AUD/USD pair.

On the US dollar front, at 19:45 GMT, the Chicago PMI for November dropped to 58.2 against the expected 59.4 and weighed on the US dollar that capped further losses in AUD/USD pair. At 20:00 GMT, the Pending Home Sales for October also dropped to -1.1% against the estimated 1.1% and weighed on the US dollar. However, the AUD/USD pair’s losses were limited by the release of positive macroeconomic data from China. China’s economic activity in the manufacturing and services sector was improved during November and helped China-proxy Australian dollar to gather strength against its counterpart US dollar and capped further losses in the AUD/USD pair on Monday.


Daily Technical Levels
Support Resistance
0.7389 0.7410
0.7377 0.7417
0.7369 0.7430
Pivot point: 0.7397

Entry Price – Sell 0.73437

Stop Loss – 0.73837

Take Profit – 0.73037

wisk to Reward – 1:1

Profit & Loss Per Standard Lot = -$400/ +$400

Profit & Loss Per Micro Lot = -$40/ +$40

Fellas, now you can check out forex trading signals via Forex Academy mobile app. Follow the links below.

iPhone Users: https://apps.apple.com/es/app/fasignals/id1521281368

Andriod Users: https://play.google.com/store/apps/details?id=academy.forex.thesignal&hl=en_US

Categories
Forex Signals

EUR/JPY Bullish Engulfing Signals Further Buying – Quick Signal Update!

During Tuesday’s early European trading session, the EUR/JPY currency pair managed to extend its overnight bullish streak and drew some further bids around closer to the 125.00 level mainly due to the market risk-on mood, which tends to undermine the safe-haven Japanese yen and contributes to the currency pair gains. Hence, the market trading sentiment was being supported by the prospects of a COVID-19 vaccine.

Across the pond, the shared currency upticks also played a significant role in underpinning the currency pair. On the contrary, the long-lasting coronavirus woes in the U.S. and Europe keep challenging the upbeat market sentiment, which becomes the key factor that kept the lid on any additional gains in the currency pair.

On the contrary, the intensifying coronavirus woes across the globe and intensifying lockdowns restrictions in Europe and the U.S. keep challenging the upbeat market performance and become the key factor that kept the lid on any additional gains in the currency pair.

In the absence of the key data/events on the day, the market traders will keep their eyes on US ISM Manufacturing PMI for November and original comments from the Fed Chair’s Testimony for fresh impetus. In addition to this, the updates about the U.S. stimulus package will also be key to watch. In the meantime, the risk catalyst like geopolitics and the virus woes, not to forget the Brexit, will not lose their importance.


Daily Support and Resistance
S1 122.99
S2 123.8
S3 124.11
Pivot Point 124.62
R1 124.93
R2 125.44
R3 126.25

The EUR/JPY has violated the resistance level of 124.780, and above this, the pair has the potential to go after the 125.530 level. However, if the EUR/JPY pair fails to stay over 124.750 support, the odds of bearish reversal will also remain solid. The leading indicator, such as MACD is supporting the buying trend. Checkout a trade setup below.

Entry Price – Buy 124.898

Stop Loss – 124.498

Take Profit – 125.298

Risk to Reward – 1:1

Profit & Loss Per Standard Lot = -$400/ +$400

Profit & Loss Per Micro Lot = -$40/ +$40

Fellas, now you can check out forex trading signals via Forex Academy mobile app. Follow the links below.

iPhone Users: https://apps.apple.com/es/app/fasignals/id1521281368

Andriod Users: https://play.google.com/store/apps/details?id=academy.forex.thesignal&hl=en_US

Categories
Forex Signals

Gold Violates Ascending Triangle Pattern – Signal Update

The yellow metal prices succeeded in stopping its previous 3-day losing streak and recovered from monthly lows of $1,764.73 to $1,764.73 level mainly due to the broad-based U.S. dollar weakness, triggered by hopes of more monetary easing measures from the U.S. Federal Reserve. Moreover, the concerns over the economic recovery amid intensifying coronavirus cases also exerted downside pressure on the U.S. dollar, which eventually lend support to the yellow-metal prices as the weaker USD tends to make it cheaper holders of other currencies to purchase the yellow-metal. Across the pond, the mixed market trading sentiment, driven by the negative comments of Fed Chair Jerome Powell and U.S. Treasury Secretary Steve Mnuchin, lend some additional support to the safe-haven metal. In the meantime, the worsening coronavirus (COVID-19) conditions in the U.S. and Europe also keeps the gold prices bullish.

Apart from this, the western tussle with China and uncertainty over the Brexit trade deal also probed the market’s positive performance and contributed to its gains. On the contrary, the optimism over a possible vaccine and treatment for the highly infectious coronavirus keeps challenging the market’s bears, which was seen as one of the key factors that kept the lid on any additional gains in the yellow metal prices. The yellow metal prices are currently trading at 1,786.03 and consolidating in the range between 1,775.87 – 1,788.37.

However, the sentiment around the global markets remains mixed amid stimulus concerns and growing coronavirus fears, as well as the negative comments of the Fed Chair Jerome Powell and U.S. Treasury Secretary Steve Mnuchin also kept the market trading sentiment cautious. It should be noted that the Fed’s Powell and Treasury Secretary Mnuchin both said during Monday’s testimony in front of the Senate Banking Committee that the economy is on the way to recovery but needs additional help to stay on track. In the meantime, Mnuchin urged Congress to use $455 billion from the CARES Act to present the much-needed stimulus to the world’s biggest economy.

Daily Support and Resistance
S1 1735.75
S2 1755.61
S3 1766.35
Pivot Point 1775.48
R1 1786.22
R2 1795.34
R3 1815.21


The precious metal gold is violating the ascending triangle pattern on the four hourly timeframes, extending resistance at the 1,792 level. Over this level, the gold price may head further higher until the 1,818 level; therefore, we have entered the buying trade in gold. Check out the trade plan below.

Entry Price – Buy 1792.46

Stop Loss – 1786.46

Take Profit – 1799.96

Risk to Reward – 1:1

Profit & Loss Per Standard Lot = -$400/ +$400

Profit & Loss Per Micro Lot = -$40/ +$40

Fellas, now you can check out forex trading signals via Forex Academy mobile app. Follow the links below.

iPhone Users: https://apps.apple.com/es/app/fasignals/id1521281368

Andriod Users: https://play.google.com/store/apps/details?id=academy.forex.thesignal&hl=en_US

Categories
Forex Market Analysis

Daily F.X. Analysis, December 01 – Top Trade Setups In Forex – Manufacturing PMI Figures in Highlights!

Eyes will remain on the series of Manufacturing PMI figures from the Eurozone, UK, Canada, and the U.S. Although it is a low impact event, it may help determine the market sentiment today. The U.S. Fed Chair Powell will be in highlight as he is due to testify on the CARES Act before the Committee on Banking, Housing, and Urban Affairs, in Washington DC. Lastly, the ECB President Lagarde is also due to speak at an online event hosted by the Atlantic Council; however, it is now expected to significantly influence the Euro.

Economic Events to Watch Today  


EUR/USD – Daily Analysis

The EUR/USD closed at 1.19547 after placing a high of 1.20030 and a low of 1.19235. The currency pair EUR/USD surpassed the 1.20000 level on Monday amid the rising risk sentiment in the market and decreasing U.S. dollar; however, the pair started to lose its gains and ended up posting losses for the day.

The EUR/USD pair continued its bullish movement in the early trading session on Monday as the risk sentiment improved with more positive news from the coronavirus vaccine side. Pfizer has sent the first mass shipment of its vaccine to Chicago on Monday. Whereas, Moderna has applied for emergency use authorization of its vaccine from the US FDA on Monday. Both these latest reports from the vaccine side added further strength in the risk sentiment as it showed progress in steps that would eventually lead to global economic recovery.
The improved risk sentiment because of optimism regarding vaccine and economic recovery gave strength to riskier assets like EUR/USD pair on Monday.

Meanwhile, the U.S. dollar’s weakness also played an essential role in raising the currency pair EUR/USD above the 1.2000 level. The U.S. dollar was weak across the board due to the latest announcement that Congress has started its brief session to pass the next stimulus package for coronavirus.

Furthermore, both sides’ macroeconomic data were also in favor of pushing the currency pair EUR/USD near its mid-August high level on Monday. From the European Union side, The German Prelim CPI for November came in as -0.8% against the forecasted -0.7% and weighed on the single currency Euro. At 13:00 GMT, Spanish Flash CPI for the year came in as -0.8% against the forecasted -0.9% and supported Euro. At 15:00 GMT, the Italian Prelim CPI for November came in as -0.1%against the forecasted -0.2% and supported the single currency Euro.

On the U.S. dollar front, At 19:45 GMT, the Chicago PMI for November dropped to 58.2 against the anticipated 59.4 and weighed on the U.S. dollar. At 20:00 GMT, the Pending Home Sales for October fell to -1.1% against the estimated 1.1% and weighed on the U.S. dollar. However, the gains in the EUR/USD pair failed to remain till the end of the trading day and started to reverse in late trading hours amid the concerns of coronavirus pandemic in Europe. The outlook for the largest economy in the Eurozone, Germany, became increasingly uncertain due to the rising number of coronavirus cases surpassed above 1 Million.

Daily Technical Levels

Support   Resistance

1.1962       1.1976
1.1954       1.1982
1.1948       1.1991
Pivot point: 1.1968

EUR/USD– Trading Tip

The market’s technical side remains mostly unchanged on the back of a limited number of economic events on the calendar. The EUR/USD pair is trading with a bullish bias at the 1.1955 area, facing immediate resistance at the 1.2000 area. Closing of candles above the 1.1915 support level suggests odds of bullish bias in the EUR/USD as this level is extended by an ascending triangle breakout pattern. On the lower side, the EUR/USD may find support at the 1.1912 and the 1.1865 areas; however, bullish bias remains stable over the 1.1912 level.


GBP/USD – Daily Analysis

The GBP/USD closed at 1.33229 after placing a high of 1.33856 and a low of 1.32911. The GBP/USD pair tried to rise and post gains for Monday but failed to do so and continued its bearish streak for the third consecutive day. The rise in GBP/USD pair in the earlier trading session on Monday was due to the hopes that there was little progress in Brexit talks between U.K. and E.U. to settle disputes on several issues, including the fishing quotas.

The rise in British Pound was due to the latest comments from French European Affairs Minister Clement Beaune. On Monday, he said that he hoped to see an agreement in the next few days and called on negotiators to leap required. He acknowledged that two sticking issues, U.K. fishing waters and the so-called level-playing field for business, are still unresolved.

As both sides have already warned each other that the time was running out, a French presidency official said on Monday that Britain should clarify its positions and consult to find a Brexit deal on its association with the European Union. He added that the E.U. also has the interest to fight for, to give fair competition for its businesses and fishermen. He said that the Union has made a clear and balanced offer for a future partnership with Britain and that the E.U. will not accept a substandard deal that would not respect the E.U.’s interests.

On the other hand, Boris Johnson’s officials believed that the Brexit trade deal could be reached within days if both sides continue working in good faith to resolve fishing rights’ big obstacle. The U.K.’s Foreign Secretary Dominic Raab called on the E.U. to recognize that regaining control over British waters was the question of sovereignty for Britain. He said that talks were going good and he believed a deal on fish might be achievable during the final week of talks.

These optimistic and hopeful comments from both sides added strength to the GBP/USD pair on Monday during the early trading session. Still, the currency pair failed to maintain its gains and started to decline and post losses for the day despite the broad-based U.S. dollar weakness due to insufficient macroeconomic data on the day.

On the U.S. dollar front, at 19:45 GMT, the Chicago PMI for November fell to 58.2 against the estimated 59.4 and weighed on the U.S. dollar. At 20:00 GMT, the Pending Home Sales for October also declined to -1.1% against the projected 1.1% and weighed on the U.S. dollar that capped further losses in GBP/USD pair.

From the Britain side, at 14:30 GMT, the M4 Money Supply for October from Britain was dropped to 0.6% against the forecasted 1.0% and weighed on British Pound and added further losses in GBP/USD pair. The Net Lending to Individuals for October also declined to 3.7B against the expected 4.7B and weighed on British Pound and supported the bearish momentum in GBP/USD pair. At 14:32 GMT, Mortgage Approvals for October raised to 98K against the anticipated 85K and supported British Pound and capped further losses in the currency pair.

Meanwhile, the GBP/USD pair’s bearish trend was continued for the third consecutive day because of the rising fears that the U.K. and E.U. will end up having no-deal at the end of the transition period that is due on December 31. Only a month has left behind to resolve both parties’ issues, and none of them has shown any lenience. If both sides failed to reach a deal by the end of the deadline, then the U.K. will be forced to trade with the E.U. under the World Trade Organization terms that will not be good for both sides.


Daily Technical Levels

Support   Resistance

1.3316       1.3342
1.3301       1.3353
1.3290       1.3368
Pivot point: 1.3327

GBP/USD– Trading Tip

The GBP/USD is trading sideways, within a narrow trading range of 1.3397 – 1.3304. The market is likely to exhibit choppy sessions until this narrow trading range gets violated. On the higher side, the GBP/USD is facing a triple top level at the 1.3397 level; however, the bullish breakout of the 1.3397 level can trigger a buying trend until the 1.3454 level. On the lower side, the Cable is supported over 1.3350 level, supported by an upward channel on the four hourly charts. The MACD suggests a buying trend, and we should look for a buy trade over the 1.3325 level or 1.3400 level today.


USD/JPY – Daily Analysis

The USD/JPY pair was closed at 104.289 after placing a high of 104.384 and a low of 103.830. After placing losses for two consecutive days, the USD/JPY pair rose on Monday as the U.S. dollar rebounds.

The broad-based U.S. dollar weakness in the early trading session pushed the USD/JPY pair lower after the hopes for the U.S. stimulus measure raised. However, Wall Street’s main indexes’ poor performance allowed the U.S. dollar to remain firm against its peers. The Dow Jones Industrial Average and the S&P 500 indexes lost about 1.2% and 0.78% respectively on Monday, which added strength to the U.S. dollar and pushed the USD/JPY pair higher.

Meanwhile, on Monday, US Health Secretary Alex Azar said that Americans could get their first shot of coronavirus vaccine before Christmas if all thing went well. These comments from Azar added further strength in risk-sentiment and weighed on the safe metal Japanese Yen that added gains in USD/JPY pair. Furthermore, on Monday, Moderna applied for emergency authorization with the U.S. Food and Drug Administration to start using its vaccine to reduce the effect of coronavirus. Pfizer and BioNtech, which has already filed for similar FDA approval earlier this month, sent the first mass shipment of its COVID-19 vaccine to Chicago through United Airlines on Friday. This positive news from the drug companies added optimism in the market and weighed on the safe-haven Japanese Yen that added further gains in the USD/JPY pair.

On the data front, at 04:50 GMT, the Prelim Industrial Production for October from Japan raised to 3.8% against the forecasted 2.3% and supported the Japanese Yen that capped further gains in the USD/JPY pair. The Retail Sales for the year from Japan stayed the same as expected by 6.4%. At 10:00 GMT, the Housing Starts for the year came from Japan came in as -8.3% against the forecasted -9.0% and supported the Japanese Yen.

On the U.S. dollar front, at 19:45 GMT, the Chicago PMI for November declined to 58.2 against the expected 59.4 and weighed on the U.S. dollar that capped further gains in the USD/JPY pair. At 20:00 GMT, the Pending Home Sales for October fell to -1.1% against the estimated 1.1% and weighed on the U.S. dollar that capped further gains in the USD/JPY pair.
Another factor involved in the risk sentiment that supported the upward momentum of the USD/JPY pair on Monday was the start of a brief session of Congress over the issue of a second stimulus bill for the coronavirus pandemic. The Democrats and Republicans were under dispute over the size of the stimulus package, and now that the Presidency has shifted from Republicans to Democrats after the victory of Joe Biden, it could be expected that a massive stimulus is on its way that would curb the effects of COVID-19 and support the risk sentiment of the market. The improved risk demand added pressure on the safe-haven Japanese yen and supported the USD/JPY pair on Monday. Another factor involved in the gains of the US/JPY pair was Pfizer’s vaccine’s shipment to Chicago on Monday, along with the latest application by Moderna to FDA for emergency use authorization of its vaccine.

Daily Technical Levels

Support   Resistance

104.03       104.16
103.97       104.23
103.91      104.29
Pivot point: 104.10

USD/JPY – Trading Tips

The USD/JPY is trading with a sideways trading range of 104.475, holding below an immediate resistance level of 104.478. On the lower side, the safe-haven currency pair may find support at the 103.719 level. The pair seems to disrupt the resistance level of 104.478, and if this happens, the USD/JPY may soar until the next resistance area of 105.030 level. The MACD and RSI support the buying trend, but we should only take buying positions over the 104.500 level today. Good luck!

Categories
Forex Signals

EUR/AUD Violates Downward Trendline – Buy Signal Update!


Entry Price – Buy 1.6243

Stop Loss – 1.62496

Take Profit – 1.6283

Risk to Reward – 1:1

Profit & Loss Per Standard Lot = -$400/ +$400

Profit & Loss Per Micro Lot = -$40/ +$40

Fellas, now you can check out forex trading signals via Forex Academy mobile app. Follow the links below.

iPhone Users: https://apps.apple.com/es/app/fasignals/id1521281368

Andriod Users: https://play.google.com/store/apps/details?id=academy.forex.thesignal&hl=en_US

Categories
Forex Signals

EUR/JPY Triple Top Breakout – Brace for a Buy Trade

The EUR/JPY currency pair failed to stop its early-day losing streak and still flashing red around below 124.50 level mainly due to the intensifying coronavirus cases across Eurozone and lockdown restrictions in France and Germany, which keep fueling the worries over the Eurozone economic recovery and undermines the shared currency. These concerns got further lifted after the German Economic Minister Peter Altmaier said that COVID-19 infection numbers are still much too high in most regions, which adds further burden around the shared currency and contributes to the currency pair losses.

Across the pond, the prevalent optimism over a potential vaccine for the highly dangerous coronavirus infection urges investors to retreat from the safe-haven Japanese yen, which could be considered one of the key factors that help the currency pair to limit its deeper losses.

In the meantime, the Japanese Finance Minister Taro Aso said that the Japanese economy remains severe due to the COVID-19 virus, which added further burden around the Japanese yen and becomes the key factor that kept the lid on any additional losses in the currency pair. At this moment, the USD/CHF currency pair is currently trading at 0.9029 and consolidating in the range between 124.31 – 124.67

It is worth recalling that the prevalent optimism over a possible vaccine for the highly infectious coronavirus disease keeps boosting the market risk tone. However, the hopes of the vaccine were boosted after pharmaceutical regulators from the US, Europe, and the UK showed readiness for approving the leading vaccines that have shown almost 90% effective rates during the final rates, which in turn, boosted the hopes of the early arrival of the much-awaited cure to the pandemic. Thereby, the risk-on market mood tends to undermine the safe-haven Japanese yen, which becomes the key factor that lends some support to the currency pair to ease the intraday bearish pressure surrounding the EUR/PY currency pair.

On the other side, the rising coronavirus cases across Eurozone and back-to-back lockdown restrictions in Germany and Franc keep the shared currency under pressure. As per the latest report, German Economic Minister Peter Altmaier said that the COVID-19 infection numbers are still much too high in most regions, putting further pressure around the single currency and contributing to the currency pair declines.

On the contrary, the intensifying market worries regarding the continuous surge in new coronavirus cases in the US and Europe, which keep fueling the concerns over the global economic recovery through imposing new lockdown restrictions on economic and social activity, keep trying to probe the upbeat market performance. Apart from this, the long-lasting inability to pass the US fiscal package and the uncertainty over Brexit, and fears of a full-fledged trade/political war between the West and China also challenging the market risk-on mood, which might push the currency pair further down.

In the absence of significant data/events on the day, the market traders will keep their eyes on the US NFP data, which is due later this week. In addition to this, the updates about the US stimulus package will also be key to watch. In the meantime, the risk catalyst like geopolitics and the virus woes, not to forget the Brexit, will also be key to watch for a fresh direction.

Daily Support and Resistance

S1 122.99
S2 123.66
S3 124.09
Pivot Point 124.33
R1 124.76
R2 125
R3 125.66


The EURJPY has violated the triple top resistance level of 124.730 level and above this it has strong odds of soaring until 125.450. Thus, we have entered the buying trade to capture quick green pips in the market.

Entry Price – Buy 124.932

Stop Loss – 124.532

Take Profit – 125.332

Risk to Reward – 1:1

Profit & Loss Per Standard Lot = -$400/ +$400

Profit & Loss Per Micro Lot = -$40/ +$40

Fellas, now you can check out forex trading signals via Forex Academy mobile app. Follow the links below.

iPhone Users: https://apps.apple.com/es/app/fasignals/id1521281368

Andriod Users: https://play.google.com/store/apps/details?id=academy.forex.thesignal&hl=en_US

Categories
Forex Signals

USD/CAD Breaks Below Support Level – Weaker Dollar In Play!

The USD/CAD pair was closed at 1.29907 after placing a high of 1.30247 and a low of 1.29719. The USD/CAD pair dropped on Friday after posting gains for two consecutive sessions amid the broad-based US dollar weakness.

On Thursday night, the US President Donald Trump said that he would be leaving the White House office as the Electoral Votes were in favor of Joe Biden. The smooth transition of power in the White House was not expected and weighed on the US dollar as Biden has promised to issue massive financial support for the pandemic-hit economy.

Biden has been fighting for a larger stimulus package from Congress since pre-elections, and now as he has won the US Presidency, he would likely deliver a larger fiscal aid to an economy that will add pressure on the US dollar and markets was weighing on the USD/CAD pair.
Another factor involved in the declining USD/CAD pair prices was the rising Crude oil prices. WTI crude oil prices reached the $45.65 level on Friday amid the rising optimism in the market. The risk sentiment improved after several pharmaceutical companies started reporting their vaccine’s efficacy in preventing the coronavirus.

Pfizer and BioNtech started the race to approve US FDA emergency authorization use of the vaccine, and Moderna and AstraZeneca followed them. The hopes that the global economy will soon be free from the pandemic and the social activities will resume to pre-pandemic level raised the bars for increased demand for energy sources. The hopes that energy demand will rise supported the crude oil prices that eventually added strength in the commodity-linked currency Loonie and added weight on USD/CAD pair on Friday.

There was no macroeconomic data to be released from both sides on Friday due to Thanksgiving Holiday, and the pair USD/CAD followed the US dollar’s movement ad Crude oil movement on Friday.


Daily Technical Levels
Support Resistance
1.2992 1.3028
1.2972 1.3044
1.2957 1.3064
Pivot point: 1.3008

Entry Price – Sell 1.29684

Stop Loss – 1.30084

Take Profit – 1.29284

Risk to Reward – 1:1

Profit & Loss Per Standard Lot = -$400/ +$400

Profit & Loss Per Micro Lot = -$40/ +$40

Fellas, now you can check out forex trading signals via Forex Academy mobile app. Follow the links below.

iPhone Users: https://apps.apple.com/es/app/fasignals/id1521281368

Andriod Users: https://play.google.com/store/apps/details?id=academy.forex.thesignal&hl=en_US

Categories
Forex Signals

EUR/USD Breaking Above Resistance Level – Brace for a Buy Trade!

The risk perceived EUR/USD pair gained traction on Friday after the optimism surrounding the market related to the coronavirus vaccine increased. The hopes for a quick economic recovery also increased along with the vaccine progress and supported the market’s risk sentiment that lifted the global equity market.

The news regarding vaccines from several candidates and their efficacy rates raised hopes that the economy would come back to its pre-pandemic levels, and that weighed on the safe-haven greenback. The EUR/USD pair is trading with a bullish bias at the 1.1974 area, facing immediate resistance at the 1.1975 area.

Closing of candles below this level suggests chances of bearish correction as the pair has entered the overbought zone. However, the bullish breakout of the 1.1975 level can extend the buying trend until the next resistance level of the 1.2010 level. The bullish bias remains dominants today. Let us consider taking a selling trade below the 1.1979 level, and above this, the next target stays at 1.1997.


Support Resistance
1.1885 1.1942
1.1856 1.1970
1.1828 1.1999
Pivot point: 1.1913

Entry Price – Buy 0.9025

Stop Loss – 0.9065

Take Profit – 0.8985

Risk to Reward – 1:1

Profit & Loss Per Standard Lot = -$400/ +$400

Profit & Loss Per Micro Lot = -$40/ +$40

Fellas, now you can check out forex trading signals via Forex Academy mobile app. Follow the links below.

iPhone Users: https://apps.apple.com/es/app/fasignals/id1521281368

Andriod Users: https://play.google.com/store/apps/details?id=academy.forex.thesignal&hl=en_US

Categories
Forex Signals

USD/CHF Bearish Bias Continues to Dominate – Sell Signal Update!

During Monday’s Asian trading hours, the USD/CHF currency pair failed to extend its last week winning streak and edged lower around the 0.9027 level. However, the bearish tone around the currency pair could be associated with the broad-based U.S. dollar weakness, triggered by the possibilities of further monetary easing by the U.S. Federal Reserve, which weakens the U.S. dollar and contributes to the currency pair losses. Moreover, the optimism over a potential vaccine for the highly dangerous coronavirus infection urges investors to retreat from the safe-haven asset, which also kept the U.S. dollar on the defensive and push the currency pair down. In that way, the COVID-19 vaccine optimism also weighed on the safe-haven CHF and became the key factor that helps the currency pair to limit its deeper losses. On the contrary, the on-going uncertainty over Brexit trade talks and fears of a full-fledged trade/political war between the West and China keep probing the upbeat market performance, which might push the currency pair further down. Currently, the USD/CHF currency pair is currently trading at 0.9029 and consolidating in the range between 0.9026 – 0.9047.

The prevalent optimism over a possible vaccine for the highly infectious coronavirus disease keeps providing a boost to the market risk tone. However, the hopes of the vaccine were boosted after pharmaceutical regulators from the U.S., Europe, and the U.K. showed readiness for approving the leading vaccines that have shown almost 90% effective rates during the final rates, which in turn, boosted the hopes of the early arrival of the much-awaited cure to the pandemic. Thus, the risk-on market mood tends to undermine the safe-haven Swiss franc, which becomes the key factor that lends some support to the currency pair to ease the intraday bearish pressure surrounding the USD/CHF currency pair.


Daily Support and Resistance
S1 0.8969
S2 0.9012
S3 0.9029
Pivot Point 0.9056
R1 0.9072
R2 0.9099
R3 0.9143

The USD/CHF has violated the support level of 0.9036 level, and the closing of a candle below the 0.9036 level of 0.9036 can extend selling bias until the 0.8983 level. The MACD has crossed below 0 level suggesting odds of selling trend continuation. Thus, we have opened a sell trade; here is a trade plan below.

Entry Price – Buy 0.9025

Stop Loss – 0.9065

Take Profit – 0.8985

Risk to Reward – 1:1

Profit & Loss Per Standard Lot = -$400/ +$400

Profit & Loss Per Micro Lot = -$40/ +$40

Fellas, now you can check out forex trading signals via Forex Academy mobile app. Follow the links below.

iPhone Users: https://apps.apple.com/es/app/fasignals/id1521281368

Andriod Users: https://play.google.com/store/apps/details?id=academy.forex.thesignal&hl=en_US

 

Categories
Forex Market Analysis

Daily F.X. Analysis, November 30 – Top Trade Setups In Forex – ECB President Lagarde Speaks!

On the news front, the eye will remain on the ECB President Lagarde Speaks, OPEC Meetings, Chicago PMI, and Pending Home Sales m/m. The U.S. events are expected to perform badly, and the dollar index can bear a bearish hit.

Economic Events to Watch Today  


EUR/USD – Daily Analysis

The EUR/USD pair was closed at 1.19637 after placing a high of 1.19637 and a low of 1.19060. EUR/USD pair raised near its highest level since August amid the increasing risk-on sentiment. Due to Thanksgiving celebrations, the EUR/USD pair continued to move higher in the upward direction in the absence of U.S. traders.

The risk perceived EUR/USD pair gained traction on Friday after the optimism surrounding the market related to the coronavirus vaccine increased. The hopes for a quick economic recovery also increased along with the vaccine progress and supported the market’s risk sentiment that lifted the global equity market on Friday.

The news regarding vaccines from several candidates and their efficacy rates raised hopes that the economy would come back to its pre-pandemic levels, and that weighed on the safe-haven greenback. The U.S. dollar was also weak across the board after the smooth transition of the White House. Joe Biden is set to take power on January 20, and he is expected to work on a second stimulus bill that would weigh on the U.S. dollar.

The U.S. Dollar Index (DXY) that measures the U.S. dollar value against the six currencies basket was also under pressure and at a new monthly low level at 91.8 level on Friday. The U.S. dollar weakness combined with the vaccine optimism added strength in the EUR/USD pair and helped it reach near its highest since mid-August level.

Meanwhile, the single currency Euro was also strong on Friday after releasing strong macroeconomic data from the European Union. At 12:00 GMT, German Import Prices for October raised to 0.3% against the expected 0.1% and supported Euro. At 12:45 GMT, the French Consumer Spending for October also raised to 3.7% from the forecasted 3.6% and supported the single currency Euro. The French Prelim CPI for November surged to 0.2% against the forecasted 0.0% and supported Euro. The French Prelim GDP for the quarter also surged to 18.7% against the anticipated 18.2% and supported Euro. The Euro’s strength added further gains in the already rising EUR/USD pair and pushed it higher on board.
The rising risk sentiment in the market also supported the stock market worldwide as the outlook of the upcoming year 2021 was improved due to the successful development of the coronavirus vaccine.

Furthermore, the victory of Joe Biden in the U.S. Presidential elections also added positivity to the market mood because he has signaled a more promising approach toward international relations, unlike Trump. Due to his promise of keeping smooth trade relations with China and other countries, the favorable global trade conditions improved the global risk sentiment and supported the riskier assets like EUR/USD pair.

Daily Technical Levels

Support   Resistance

1.1885      1.1934

1.1859      1.1957

1.1836      1.1983

Pivot point: 1.1908

EUR/USD– Trading Tip

The EUR/USD pair is trading with a bullish bias at the 1.1974 area, facing immediate resistance at the 1.1975 area. Closing of candles below this level suggests chances of bearish correction as the pair has entered the overbought zone. However, the bullish breakout of the 1.1975 level can extend the buying trend until the next resistance level of the 1.2010 level. The bullish bias remains dominants today. Let us consider taking a selling trade below the 1.1979 level, and above this, the next target stays at 1.1997.


GBP/USD – Daily Analysis

The GBP/USD pair was closed at 1.33066 after placing a high of 1.33815 and a low of 1.32856. The GBP/USD pair continued its previous day’s bearish move and extended its losses on Friday amid the increased Brexit worries. Despite the positive risk environment in the market, the currency pair GBP/USD pair posted losses for the day on Friday as the deadline for the transition period was coming closer day by day, and a deal has still not been secured. With only 34 days left for the Brexit-transition period to end, the pressure on both sides, the E.U. and the U.K., has increased to reach a deal by Saturday to complete the required paper-work legislation process in time.

Chief EU negotiator Michel Barnier reached London for in-person talks after completing his quarantine, and this was the only positive news surrounding Brexit. UK PM Boris Johnson has said that the U.K. will prosper with or without a deal, and the likelihood of a deal is dependent on the E.U. There were still disagreements on Fisheries, governance, and level playing field that needed to sort out to reach a deal.

The rising uncertainty regarding Brexit has been weighing on the local currency British Pound. The E.U. Commission President Ursula von der Leyen, along with the E.U. chief negotiator Barnier, said that they do not know if a deal was possible as the talks were in progress.

On Friday, Barnier told MEPs that he was prepared for a further four days of make-or-break Brexit negotiations, with growing skepticism among E.U. member states about the utility of further talks. Barnier has said that he would work through the weekend and then maybe one-or-two more days in the last-ditch attempt to bridge the large gaps between both sides and reach a deal.

E.U. sources have said that there was a growing feeling that the lack of progress and the need to prepare businesses for the consequences of a no-deal British departure from the E.U. made it unwise for talks to continue beyond then. These concerning statements from both sides have weighed on British Pound and added losses in GBP/USD pair.
Whereas, the U.K.’s foreign minister Dominic Raab said on Sunday that the next week would be very significant for Brexit, in reply to how near the deadline was in trade talks with the European Union. He said that this was a very significant week, the last real major week, subject to further postponement.

As the last 4-6 days for securing a Brexit deal have reached, the local currency pressure also increased and weighed on Sterling that ultimately weighed o GBP/USD pair ahead of any decision despite the improved risk sentiment in the market because of vaccines progress.

Daily Technical Levels

Support   Resistance

1.3319     1.3397
1.3281     1.3437
1.3241     1.3475
Pivot point: 1.3359

GBP/USD– Trading Tip

The GBP/USD traded in line with our previous forecast to hit the support level of 1.333, which is extended by an upward channel. On the higher side, Cable may find resistance at 1.3400 level that’s extended by the double top pattern on the two-hour timeframe. Simultaneously, the bullish crossover of the 1.3400 level is likely to open additional room for buying until the 1.3446 level. On the 4 hour timeframe, the GBP/USD pair has formed a bullish channel that supports the pair at the 1.333 area, and violation of this level on the lower side can drive a sharp selling trend until the 1.3270 mark. The RSI and MACD are suggesting a selling trend in sterling. However, I will prefer to open a buying trade over the 1.3330 area and selling trade below the same level today.


USD/JPY – Daily Analysis

The USD/JPY pair was closed at 104.064 after placing a high of 104.279 and a low of 103.904. Despite the improved risk-on market sentiment, the USD/JPY pair dropped for the second consecutive session amid the U.S. dollar weakness. The U.S. dollar weakness was driven by the increased expectations of a large-scale stimulus from the new Biden administration to combat the coronavirus pandemic. Joe Biden has been fighting to provide massive stimulus support to the economy to fight against the COVID-19 pandemic. As he has won the U.S. Presidential elections and is now due to take power on January 20, the chances for a massive stimulus fiscal support to the economy has increased and weighed on the U.S. dollar.

The U.S. Dollar Index (DXY) that tracks the greenback against a basket of six other currencies was down by 0.1% to a 3-months lower level at 91.8. The trade market volume was also limited, keeping the U.S. dollar under pressure due to Thanksgiving Holiday in the U.S. as many traders were enjoying a long weekend.

Meanwhile, the environment around U.S. politics also got better with President Trump’s latest decision to leave office regarding Electoral College votes for Biden. This smooth transition of power in the White House also supported the risk-on market sentiment and weighed over the safe-haven greenback that added losses in the currency pair USD/JPY.
Furthermore, on the data front, at 04:30 GMT, the Tokyo Core CPI for the year came in as -0.7% against the expected -0.6% and weighed on the Japanese Yen and capped further losses in the USD/JPY pair on Friday.
The risk-on market sentiment failed to impress the USD/JPY buyers. The traders were more focused on the U.S. dollar’s weakness instead of the rising optimism surrounding the global economic recovery due to vaccine development.

Several candidates worldwide, including Pfizer & BioNtech, Moderna, and AstraZeneca, have reported a 60-95% efficacy rate of their vaccine ad said that it would be available for use within weeks as some have applied for US FDA approval for emergency authorization use.

AstraZeneca vaccine is considered the cheapest vaccine as it can be stored at ordinary room temperature or refrigerator temperature, but it requires two dosages to reach a 90% efficacy rate. The hopes for global economic recovery and the outlook for 2021 have improved and weighed on the safe-haven U.S. dollar that ultimately added pressure on the USD/JPY pair.

Daily Technical Levels

Support   Resistance

104.27      104.63

104.09      104.79

103.92      104.98

Pivot point: 104.44

USD/JPY – Trading Tips

The USD/JPY pair’s recent price action has violated the choppy trading range of 104.700 – 104.056. On the lower side, the USD/JPY pair can drop further until the next support level of 103.667 level, especially after the breakout of the 104.150 support level. On the higher side, a bullish breakout of 104.700 resistance can extend the buying trend until the next resistance area of 104.700 and 105.063 level. On the lower side, the support continues to hold around the 103.667 level. The MACD suggests selling bias in the USD/JPY pair; thus, we should consider selling trade below 104.150 and buying above the same. Good luck!

Categories
Forex Signals

GBP/USD Upward Trend in Play – Quick Update on Buy Signal! 

Our forex trading signal on the GBP/USD pair is doing well as the market has bounced off over the 1.3330 support level. On the higher side, Cable may find resistance at 1.3400 level that’s extended by the double top pattern on the two-hour timeframe. Simultaneously, the bullish crossover of the 1.3400 level is likely to open additional room for buying until the 1.3446 level. On the 4 hour timeframe, the GBP/USD pair has formed a bullish channel that supports the pair at the 1.333 area, and violation of this level on the lower side can drive a strong selling trend until the 1.3270 mark. The RSI and MACD are suggesting a selling trend in sterling. However, I will prefer to open a buying trade over the 1.3330 area today as the market has the potential to go after the 1.3400 level. 


Entry Price – Buy 1.33719

Stop Loss – 1.33319

Take Profit – 1.34119

Risk to Reward – 1:1

Profit & Loss Per Standard Lot = -$400/ +$400

Profit & Loss Per Micro Lot = -$40/ +$40

Fellas, now you can check out forex trading signals via Forex Academy mobile app. Follow the links below.

iPhone Users: https://apps.apple.com/es/app/fasignals/id1521281368

Andriod Users: https://play.google.com/store/apps/details?id=academy.forex.thesignal&hl=en_US

Categories
Forex Market Analysis

Daily F.X. Analysis, November 27 – Top Trade Setups In Forex – French Events in Focus! 

The economic calendar is a bit muted on the last trading day of the week as investors seem to enjoy the Thanksgiving holiday. However, France is due to report few low impact economic events such as French Consumer Spending with a positive forecast of 3.6% vs. -5.1%, Prelim CPI m/m with a neutral forecast of 0.0%, and Prelim GDP with a neutral growth rate forecast of 18.2% vs. 18.2%. These events are likely to have a muted impact on the market today. 

 

Economic Events to Watch Today  

  


EUR/USD – Daily Analysis

The EUR/USD pair was closed at 1.19123 after placing a high of 1.19406 and a low of 1.18850. EUR/USD pair hit a fresh 2-months high on Thursday in the early trading session and started to decline and ended up posting losses for the day after the German Consumer Confidence contracted.

At 12:00GMT, the German GfK Consumer Climate in November missed the market’s expectations and dropped to -6.7 against the expected -4.9 and weighed on Euro. At 14:00 GMT, the M3 Money Supply for the year from Eurozone remained flat at 10.5%. Private Loans for the year also came in line with the expectations of 3.1%.

The Eurozone’s largest economy, Germany, appeared to struggle to shake off the coronavirus crisis as consumers’ confidence declined. The investors became cautious about it. That weighed on the single currency Euro and added in the losses of EUR/USD pair.

Furthermore, the European Central bank (ECB) published its November policy meeting minutes in which the policymakers believe that there was the possibility that pandemic might have long-lasting effects. They were cautious that pandemics might take a toll on the demand side, supply sides and reduce the economy’s growth potential.

Minutes revealed that Inflation would remain negative for longer while employment could contract further. Policymakers believed that flexibility from PEPP was essential to its continued success, and they wanted to wait for a further fiscal response before reacting instead. They were of the review that more bond-buying may not have the same impact now. There were no surprises in the minutes as Central Bank has begun to pave the way towards additional easing next December.

The single currency Euro came under pressure after releasing these minutes from the European Central Bank and weighed on EUR/USD pair on Thursday. The U.S. markets were closed due to the Thanksgiving Holiday, and as Friday is not an official holiday, thin trading is expected to extend into the weekend.

Moreover, the currency pair also followed yesterday’s release of the flash US GDP data for the third quarter that remained low at 33.1% in annualized terms and raised concerns over the world’s largest economy. The coronavirus vaccine and the U.S. stimulus talks are considered as the prevailing risks to the Federal Reserve’s outlook going ahead.

The demand for safe-haven greenback continued to slip with the global economy’s improving outlook after the release of vaccines for a deadly virus. The weak U.S. dollar kept the losses in EUR/USD pair limited on Thursday.

Daily Technical Levels

Support   Resistance

1.1885      1.1934

1.1859      1.1957

1.1836      1.1983

Pivot point: 1.1908

EUR/USD– Trading Tip

On Friday, the direct currency pair EUR/USD is trading with a bullish bias at the 1.1912 level, holding above an immediate resistance becomes a support level of the 1.1905 level. On the higher side, the EUR/USD pair may find resistance at 1.1979, and a bullish breakout of 1.199 level can extend the upward trend until 1.1942. On the 2 hour timeframe, the EUR/USD pair has violated the symmetric triangle pattern that was extending resistance at the 1.19052 level, and now this level is working as a support. Let’s consider taking a buying trade over the 1.1905 level, and above this, the next target stays at 1.1997.


GBP/USD – Daily Analysis

The GBP/USD pair was closed at 1.33550 after a high of 1.33974 and a low of 1.33218. GBP/USD pair struggled to surpass the 1.3400 level and was unable to do so during the early European session, and after that, sellers came in and reversed the pair’s movement to as low as 1.3320 level.

The GBP/USD pair was amongst the worst performers on Thursday out of the G10 currencies, with losses of around 40 pips on the day. After posting gains for four consecutive days, the GBP/USD pair declined on Thursday. Much of the GBP/USD pair’s bullish rally was due to the U.S. dollar’s weakness following the U.S. President-elect Joe Biden’s victory at the start of the month was also escalated by the combination of vaccine optimism and the increasingly dovish tone of the FOMC.

Federal Reserve is expected to squeeze their asset purchase program in December to offer the economy more stimulus because of the rising number of coronavirus cases across the States that has forced the local governments to impose a second lockdown, as the fiscal stimulus from Congress remains indefinable.

Meanwhile, British Pound has also performed significantly better during this month as the hopes surrounding the Brexit deal were higher after the French compromise over the fisheries issue. An agreement over one sticking point also revealed progress made in the Brexit agreement and supported the Sterling that added gains in GBP/USD pair. Furthermore, the vaccine development from Pfizer & BioNtech, Moderna, and AstraZeneca also gave strength to the GBP/USD pair after adding demand for the market’s risk sentiment.

However, on Thursday, the tone behind GBP/USD was changed somewhat after the hopes for a Brexit deal started to fade away. Many reports suggested that the remaining key sticking issues related to Ireland and level playing field were proving to be very hard to reach an agreement. During Thursday’s European session, the Irish Foreign Minister said that Brexit’s outstanding issues were proving to be complicated. E.U. sources also reported that talks between the E.U. and the U.K. were not going well. Simultaneously, the French Foreign Minister put public pressure on the U.K. to adopt a more realistic negotiating stance on Wednesday that faded the optimistic tone around the market and weighed on GBP/USD pair.

During the Thanksgiving Holiday in the U.S. and, in the absence of any macroeconomic data from the U.K., the GBP/USD pair continued following the latest headlines and dropped on Thursday.

Daily Technical Levels

Support   Resistance

1.3318      1.3394

1.3282      1.3434

1.3242      1.3470

Pivot point: 1.3358

GBP/USD– Trading Tip

The GBP/USD traded in line with our previous forecast to hit the support level of 1.333, which is extended by an upward channel. On the higher side, Cable may find resistance at 1.3400 level that’s extended by the double top pattern on the two-hour timeframe. Simultaneously, the bullish crossover of the 1.3400 level is likely to open additional room for buying until the 1.3446 level. On the 4 hour timeframe, the GBP/USD pair has formed a bullish channel that supports the pair at the 1.333 area, and violation of this level on the lower side can drive a sharp selling trend until the 1.3270 mark. The RSI and MACD are suggesting a selling trend in sterling. However, I will prefer to open a buying trade over the 1.3330 area and selling trade below the same level today. 


USD/JPY – Daily Analysis

The USD/JPY pair was closed at 104.233 after placing a high of 104.479 and a low of 104.214. On Thursday, the U.S. dollar was down in early trading session subdued by weak U.S. economic data. The optimism surrounding the coronavirus vaccines prompted investors to seek out riskier assets instead of safe-haven. The U.S. Dollar Index (DXY) was down on Thursday against the basket of six major currencies by 0.3% at 91.97 level, the lowest level in more than two months as the volume was limited due to the holiday in the U.S. for Thanksgiving.

In late Wednesday, the Federal Reserve released the minutes of its last monetary policy meeting, and they showed that Fed members debated on a range of options on bond purchases to support the recovery, including pivoting to purchases of longer-term securities that could put more pressure on the dollar by keeping longer-term yield unattractively low. These comments from the Fed weighed on the U.S. dollar and added pressure on the USD/JPY pair on Thursday.

Meanwhile, the number of global coronavirus cases reached above 60 million on Thursday, out of which 12.7 million were from the U.S., according to Johns Hopkins University. Many states in the U.S. started to impose restrictive measures to curb the increasing numbers of coronavirus cases that led to more job losses, weighed on the U.S. dollar, and kept the USD/JPY pair under pressure.

Positive data from 3 vaccine candidates and their efficacies, along with a smoother transition to Joe Biden administration in the U.S., added pressure on the greenback and forced investors to move towards riskier currencies. Reports also suggested that the Fed’s monetary easing was on its way that continued weighing on the greenback and added pressure on the USD/JPY pair. Apart from this, a mixed performance in the European equity markets provided a modest lift to the safe-haven Japanese yen that ultimately contributed to the USD/JPY pair’s fall on Thursday.

Due to the absence of any macroeconomic data on the day and the thin liquidity conditions due to the Thanksgiving Holiday, the pair USD/JPY continued following the last day’s economic data of Unemployment claims that showed a negative labor market report and added pressure on the pair.

Daily Technical Levels

Support   Resistance

104.27      104.63

104.09      104.79

103.92      104.98

Pivot point: 104.44

USD/JPY – Trading Tips

The USD/JPY pair’s recent price action has violated the choppy trading range of 104.700 – 104.056. On the lower side, the USD/JPY pair can drop further until the next support level of 103.667 level, especially after the breakout of the 104.150 support level. On the higher side, a bullish breakout of 104.700 resistance can extend the buying trend until the next resistance area of 104.700 and 105.063 level. On the lower side, the support continues to hold around the 103.667 level. The MACD suggests selling bias in the USD/JPY pair; thus, we should consider selling trade below 104.150 and buying above the same. Good luck! 

Categories
Forex Signals

AUD/USD Upward Channel Continues to Support Bullish Bias – What’s Next?

The AUD/USD pair was closed at 0.73570 after placing a high of 0.73742 and a low of 0.73533. The Australian dollar tried to rally during the early session on Thursday but gave back some of its gains and ended up losing. This week has been quite supportive to the riskier currencies like the Australian dollar and Aussie has been on its highest since September level due to the combination of vaccine news, the beginning of Joe Biden transition, and the weakness of the US dollar.

The US dollar was weak on Wednesday after the US Labor Market data showed that the Initial Jobless Claims rose to 778,000 from the previous 748,000 during last week, and the trade deficit was climbed to $80,29B from the previous $79.36B. The negative macroeconomic data on Wednesday also drove the AUD.USD pair on the next day as there was no data to be released due to Thanksgiving Holiday.

During thin trading, the Aussie suffered as the pair were left with the macroeconomic data from Australia. At 05:30 GMT, the Private Capital Expenditure for the quarter in Australia declined to -3.0% from the forecasted -1.5% and weighed heavily on the Australian dollar that added pressure on AUD/USD pair.

Meanwhile, the market’s risk sentiment was also deteriorated because of the increased number of coronavirus cases from across the globe. The total number of worldwide coronavirus cases reached above 60 million and weighed on market sentiment.

Out of 660 Million cases, 12.7M were from the world’s largest economy, the United States. The rising number of coronavirus cases in the US forces many state governments to impose lockdown restrictions that added pressure on the US dollar and the market’s risk sentiment.

The risk perceived Aussie suffered on Thursday despite the latest coronavirus update that Queensland had decided to allow Victorians to enter the state from Dec-1st without quarantining. The pair AUD/USD followed the market mood that was disturbed by the rising number of coronavirus cases, and the pair ended up posting small losses on Thursday.


Daily Technical Levels

Support Resistance

0.7349 0.7371

0.7341 0.7383

0.7328 0.7392

Pivot point: 0.7362

The AUD/USD is approaching a resistance level at 0.73400, which has now been violated and the AUD/USD pair has the potential to go after the 0.7397 level. We have already captured this trade and enchased 30+ pips in a trade. For now, we will be looking for a retracement until the 0.7395-90 area to take another buying position in AUD/USD as bullish bias seems dominant today. Good luck! 

Categories
Forex Signals

GBP/USD Sell Signal Update – Brace for a Manual Close! 

The GBP/USD is trading bullish around 1.3396 level, facing resistance at 1.3400 level. The resistance level is extended by the double top pattern at 1.3400 level, and a bullish crossover of 1.3400 level is likely to open further room for buying until 1.3446 level. On the 4 hour timeframe, the GBP/USD pair has formed a bullish channel that supports the pair at the 1.333 area. The RSI and MACD are suggesting a buying trend in sterling. However, I will prefer to open a buying trade only above the 1.3396 area, and below this, sell trade will be preferred. Therefore, I have shared a sell trade below 1.3395 area to capture quick green pips. Check out a trading plan below… 


Entry Price – Sell 1.33519

Stop Loss – 1.33919

Take Profit – 1.33119

Risk to Reward – 1:1

Profit & Loss Per Standard Lot = -$400/ +$400

Profit & Loss Per Micro Lot = -$40/ +$40

Fellas, now you can check out forex trading signals via Forex Academy mobile app. Follow the links below.

iPhone Users: https://apps.apple.com/es/app/fasignals/id1521281368

Andriod Users: https://play.google.com/store/apps/details?id=academy.forex.thesignal&hl=en_US

Categories
Forex Signals

USD/CAD Violates Choppy Session – Bearish Setup in Play! 

The USD/CAD pair was closed at 1.30060 after placing a high of 1.30288 and a low of 1.29860. The currency pair USD/CAD rose to1.3030 level in the early trading session but failed to remain there and started to decline on the back of US dollar weakness and the rising crude oil prices on Wednesday.

The US’s mixed macroeconomic data failed to help the greenback gather strength against its rival currencies and forces the USD/CAD pair to lose most of its daily gains in the late trading session. There was no macroeconomic data from the Canadian side, so the pair followed the US data on Wednesday.

On the data front, at 18:30 GMT, the Prelim Gross Domestic Product for the third quarter remained flat at 33.1%. The Unemployment Claims from last week surged to 778K against the projected 732K and weighed on the US dollar. The Core Durable Goods Orders for October surged to 1.3% against the projected 0.5% and supported the US dollar. The Durable Goods Orders rose to 1.3% from the forecasted 1.0% and supported the US dollar. The Prelim Wholesale Inventories for October rose to 0.9% against the expected 0.4% and weighed on the US dollar.

The New Home Sales for October rose to 999K against the forecasted 972K and supported the US dollar. The Personal Income fell to -0.7% from the projected 0.0% and weighed on the US dollar. The Personal Spending raised to 0.5% from the anticipated 0.4% and supported the US dollar.

On the other hand, the weekly report published by the US Energy Information Administration (EIA) showed that the Crude Oil stocks declined by 0.75M barrels last week and boosted oil prices. 

The WTI crude oil raised above the $46 level on Wednesday and gave strength to the Canadian dollar that added pressure on the USD/CAD pair.

However, the pair managed to remain on the positive side as the market mood was still risky due to the rising hopes of global economic recovery from the latest progress made in coronavirus vaccines from Pfizer & BioNtech, Moderna, and AstraZeneca.

Meanwhile, from Canada, almost 1,373 cases of coronavirus were reported, along with 35 additional deaths in Ontario. The total number of deaths from coronavirus in Toronto reached 3554 on Wednesday. The currency pair also remained strong ahead of the FOMC minutes release published in the early Thursday session.

Daily Technical Levels

Support Resistance

1.2979 1.3026

1.2959 1.3051

1.2933 1.3072

Pivot Point: 1.3005

The USD/CAD has violated the sideways trading range of 1.3119 – 1.3035 level. A bearish breakout of the 1.3035 level is likely a further selling trend until the 1.2936 level. The pair forms a neutral candle, suggesting indecision among investors, perhaps due to lack of economic events. Secondly, the investors are expecting thin volatility amid the Thanksgiving holiday. Let’s consider staying bearish below 1.3030 today. Good luck! 

Categories
Forex Signals

AUD/USD Continues Trading Upward Channel – Quick Trade Setup! 

The AUD/USD pair was closed at 0.73658 after placing a high of 0.73732 and a low of 0.73248. The AUD/USD pair extended its gains on Wednesday after falling to the 0.73200 level. The pair fell in an earlier trading session on the day but reversed its direction after releasing U.S. macro-economic data.

At 05:30 GMT, the Construction Work done in the third quarter in Australia came in as -2.6% against the forecasted -2.0% and weighed on the Australian dollar. From the U.S. side, at 18:30 GMT, the Prelim GDP for the third quarter came in line with the expectations of 33.1%. The Unemployment Claims from last week surged to 778K against the estimated 732K and weighed on the U.S. dollar that added gains in AUD/USD pair. The Core Durable Goods Orders for October rose to 1.3% against the estimated 0.5% and supported the U.S. dollar. The Durable Goods Orders raised to 1.3% from the anticipated 1.0% and supported the U.S. dollar. The Prelim Wholesale Inventories for October surged to 0.9% against the projected 0.4% and weighed on the U.S. dollar that added further gains in AUD/USD pair.

The New Home Sales for October surged to 999K against the estimated 972K and supported the U.S. dollar. The Personal Income dropped to -0.7% from the anticipations of 0.0% and weighed on the U.S. dollar. The Personal Spending rose to 0.5% from the projected 0.4% and supported the U.S. dollar.

The rising unemployment claims and personal income data weighed on the optimism that economic recovery was near and faded the risk sentiment. The risk rally deteriorated after the mixed macroeconomic data from the U.S. and weighed on the risk perceived Aussie that caused the pair to fall in an earlier session.

The pair managed to end its day on a bullish stance due to U.S. dollar weakness in the absence of any major fundamental. The market mood was smooth on Wednesday and the risk perceived AUD/USD continued following the previous optimism regarding the vaccine development from AstraZeneca and Moderna. Pfizer and BioNtech were close to getting approval from the US FDA for emergency use authorization of their vaccine, causing an immediate rise in risk rally and supporting further the AUD/USD currency pair. Investors also remained cautious on Wednesday and followed the previous daily movement ahead of the release of FOMC minutes from the November meeting.


Daily Technical Levels

Support Resistance

0.7333 0.7383

0.7304 0.7404

0.7284 0.7433

Pivot point: 0.7354

The AUD/USD long term view of the market is bullish. We were approaching a resistance level at 0.73400, which has now been violated and the AUD/USD pair has the potential to go after the 0.7397 level. We have already captured this trade and enchased 30+ pips in a trade. For now, we will be looking for a retracement until the 0.7395-90 area to take another buying position in AUD/USD as bullish bias seems dominant today. Good luck! 

Categories
Forex Market Analysis

Daily F.X. Analysis, November 26 – Top Trade Setups In Forex – Thanksgiving Day! 

The economic calendar is a bit muted amid the Thanksgiving holiday. Most Forex brokers remain open for every holiday except Christmas and New Year’s Day. Stock markets and banks have slightly different holiday schedules. In addition to this, the eyes will remain on ECB Monetary Policy Meeting Accounts during the European session. It’s a detailed record of the ECB Governing Board’s most recent meeting, providing in-depth insights into the economic conditions that influenced their decision on where to set interest rates. 

Economic Events to Watch Today  

  


EUR/USD – Daily Analysis

The EUR/USD pair closed at 1.19136 after placing a high of 1.18959 and a low of 1.18334. EUR/USD pair extended its upward momentum on Wednesday amid the broad-based U.S. dollar weakness and the rising optimism around the market. 

The risk sentiment was triggered by the latest vaccine development that suggested a quick economic recovery and pushed riskier assets like EUR/USD pair on the higher levels. The currency pair EUR/USD rose and placed fresh highs on Wednesday after reaching its highest level since mid-August.

The U.S. dollar was weak on Wednesday after the release of mixed and depressing data from the U.S. The Unemployment claims rose unexpectedly and weighed on the U.S. dollar, and supported the upward momentum in EUR/USD pair.

On the data front, there was no data from the Europe side on Wednesday, while from the U.S., at 18:30 GMT, the Prelim Gross Domestic Product for the third quarter came in line with the anticipations of 33.1%. The Unemployment Claims from last week rose to 778K against the projected 732K and weighed on the U.S. dollar. The Core Durable Goods Orders for October rose to 1.3% against the estimated 0.5% and supported the U.S. dollar. The Durable Goods Orders also rose to 1.3% from the projected 1.0% and helped the U.S. dollar. The Goods Trade Balance from the U.S. for October came in as forecasted -80.3B. The Prelim Wholesale Inventories for October rose to 0.9% against the estimated 0.4% and weighed on the U.S. dollar that added strength to EUR/USD pair.

At 18:36 GMT, the Prelim GDP Price Index for the third quarter also remained as expected at 3.6%. At 20:00 GMT, the Revised UoM Consumer Sentiment for November also came in line with the projections of 76.9. The Core PCE Price Index for October remained flat with the predictions of 0.0%. The New Home Sales for October surged to 999K against the anticipated 972K and supported the U.S. dollar. The Personal Income declined to -0.7% from the projected 0.0% and weighed on the U.S. dollar added in the gains of EUR/USD pair. The Personal Spending raised to 0.5% from the forecasted 0.4% and supported the U.S. dollar. The Revised UoM Inflation Expectations also came in line as expected at 2.8%.

On Wednesday, the European Central Bank released its review on the economy’s financial stability. The central bank warned that European banks would not see profits return to the pre-pandemic level before 2022. According to ECB, the Eurozone leaders have struggled to make sizeable profits over the last decade after the 2008 global financial crisis with more robust regulatory scrutiny and low-interest rates. While the recent coronavirus crisis has worsened bottom lines further, and that will continue to affect the financial sector in the coming months.

In simple words, the banks’ profitability will remain weak, which could hurt their ability to lend money to businesses and individuals that would also reflect the economy’s weak health. These comments from ECB failed to break the upward momentum of the EUR/USD pair on Wednesday.

Daily Technical Levels

Support   Resistance

1.1888     1.1936

1.1861     1.1957

1.1841     1.1984

Pivot point: 1.1909

EUR/USD– Trading Tip

The EUR/USD is trading with a bullish bias at the 1.1936 level, holding below an immediate resistance level of 1.1979. On the higher side, the EUR/USD pair may find resistance at 1.1979, and a bullish breakout of 1.199 level can extend the upward trend until 1.1942. On the 2 hour timeframe, the EUR/USD pair has violated the symmetric triangle pattern that was extending resistance at the 1.19052 level, and now this level is working as a support. Let’s consider taking a buying trade over the 1.1905 level, and above this, the next target stays at 1.1997.


GBP/USD – Daily Analysis

The GBP/USD pair closed at 1.33864 after a high of 1.33935 and a low of 1.33037. GBP/USD pair extended its gains for the 4th consecutive session on Wednesday amid the U.S. dollar weakness and the rising global market confidence due to vaccine progress. Meanwhile, the currency pair GBP/USD also remained under pressure on Wednesday after the Brexit uncertainty returned to the market.

The GBP/USD pair has been trading with an upside bias since the start of this week due to rising optimism in the market regarding the latest vaccine developments. Pfizer and BioNtech first reported its vaccine’s efficacy rate, followed by Moderna and AstraZeneca within two weeks. The back to back vaccine progress and the fact that Pfizer and BioNtech have already filed for emergency use authorization of their vaccine and others being in line for it has further supported the market’s risk sentiment.

The risk perceived GBP/USD pair gained traction and saw a jump in demand on expectations that the U.K. and the E.U. were getting closer to reaching a deal on Brexit. However, on Wednesday, the lack of recent progress raised uncertainty in the market and weighed on British Pound.

The French Foreign Minister Jean-Yves Le Drian recently commented that British proposals in the latest negotiations were insufficient. He also accused the U.K. of slowing talks over secondary subjects and playing with the calendar. He urged that securing a deal over fisheries will not be the adjustment variable in the talks.

Meanwhile, a BBC reporter Katya Adler also tweeted that E.U. sources have said that there were doubts about the E.U. Brexit negotiator Michelle Barnier going to London to negotiate once he leaves quarantine on Friday and that the talks were not going well. These updates were also confirmed by the President of the European Commission, Ursula von der Leyen, who said on Wednesday morning that she could not say if there will be a deal and the next few days would be decisive.

All this Brexit news dented the expectations that the two sides will eventually reach a deal on key sticking points. However, market participants decided not to react to such news for Wednesday and continued following the market’s optimism.

On the data front, at 18:30 GMT, the Prelim Gross Domestic Product for the third quarter remained flat with the expectations of 33.1%. The Unemployment Claims from last week surged to 778K against the anticipated 732K and weighed on the U.S. dollar. 

The Core Durable Goods Orders for October raised to 1.3% against the forecasted 0.5% and supported the U.S. dollar. The Durable Goods Orders increased to 1.3% from the estimated 1.0% and helped the U.S. dollar. The Goods Trade Balance from the U.S. for October remained flat at -80.3B. The Prelim Wholesale Inventories for October raised to 0.9% against the projected 0.4% and weighed on the U.S. dollar that added strength to GBP/USD pair.

At 18:36 GMT, the Prelim GDP Price Index for the third quarter also came in line with the projections of 3.6%. At 20:00 GMT, the Revised UoM Consumer Sentiment for November also remained flat at 76.9. The Core PCE Price Index for October stayed the same at 0.0%. The New Home Sales for October raised to 999K against the estimated 972K and supported the U.S. dollar. The Personal Income fell to -0.7% from the forecasted 0.0% and weighed on the U.S. dollar added in the GBP/USD pair’s gains. The Personal Spending rose to 0.5% from the projected 0.4% and supported the U.S. dollar. Revised UoM Inflation Expectations also remained flat at 2.8%.

Daily Technical Levels

Support   Resistance

1.3325     1.3416

1.3269     1.3451

1.3235     1.3507

Pivot Point: 1.3360

GBP/USD– Trading Tip

The GBP/USD is trading bullish around 1.3396 level, facing resistance at 1.3400 level. The resistance level is extended by the double top pattern at 1.3400 level, and a bullish crossover of 1.3400 level is likely to open further room for buying until 1.3446 level. On the 4 hour timeframe, the GBP/USD pair has formed a bullish channel that supports the pair at the 1.333 area. The RSI and MACD are suggesting a buying trend in sterling. However, I will prefer to open a buying trade over the 1.3396 area today. 


USD/JPY – Daily Analysis

The USD/JPY pair closed at 104.456 after a high of 104.596 and a low of 104.253. The USD/JPY pair stayed relatively low, around 104.5 level for the majority of the day, and remained more down during the American trading hours due to mixed macroeconomic data releases from the U.S.

The U.S. Dollar Index (DXY) edged lower in the late American session, remained at the 91.97 level, and kept the U.S. dollar depressed. On the data front, at 18:30 GMT, the Prelim Gross Domestic Product for the third quarter remained flat at 33.1%. The Unemployment Claims from last week rose to 778K against the expected 732K and weighed on the U.S. dollar. The Core Durable Goods Orders for October rose to 1.3% against the expected 0.5% and supported the U.S. dollar. The Durable Goods Orders surged to 1.3% from the anticipated 1.0% and helped the U.S. dollar. 

The Goods Trade Balance from the U.S. for October remained flat with the expectations of -80.3B. The Prelim Wholesale Inventories for October rose to 0.9% against the estimated 0.4% and weighed on the U.S. dollar.

At 18:36 GMT, the Prelim GDP Price Index for the third quarter remained flat at 3.6%. At 20:00 GMT, the Revised UoM Consumer Sentiment for November stayed at 76.9. The Core PCE Price Index for October came in line with the expectations of 0.0%. The New Home Sales for October surged to 999K against the projected 972K and supported the U.S. dollar. The Personal Income dropped to -0.7% from the expected 0.0% and weighed on the U.S. dollar. The Personal Spending surged to 0.5% from the forecasted 0.4% and supported the U.S. dollar. The Revised UoM Inflation Expectations also came in line with the anticipations of 2.8%.

The rising unemployment claims and declined personal income weighed on the local currency while the durable goods orders and new home sales, along with the personal spending, supported the U.S. dollar on Wednesday.

Meanwhile, from the Japanese side, the year’s SPPI declined to -0.6% from the forecasted -0.5% and weighed on the Japanese Yen. At 09:59 GMT, the BoJ Core CPI for the year raised to 0.0% from the forecasted -0.1% and supported the Japanese Yen that added weight on the USD/JPY pair on Wednesday.

The currency pair USD/JPY remained bullish throughout the day despite the U.S.’s mixed economic data on the back of rising optimism in the market. The global market sentiment remained confident due to the rising number of vaccine candidates reporting progress. The race to file for emergency use authorization of vaccine started with Pfizer and BioNtech has extended to AstraZeneca and Moderna that has helped raised hopes for a pre-pandemic economic environment and supported the risk sentiment.

The rising risk sentiment added weight on the safe-Haven Japanese Yen and supported the USD/JPY pair’s upward momentum on Wednesday. Another factor involved in the USD/JPY pair’s upward movement was the beginning of the transition of the presidency of President-elect Joe Biden.

Daily Technical Levels

Support   Resistance

104.27     104.63

104.09     104.79

103.92     104.98

Pivot point: 104.44

USD/JPY – Trading Tips

The USD/JPY continues to trade in a fresh choppy range of 104.700 – 104.056 level. On the higher side, a bullish breakout of 104.700 resistance can extend the buying trend until the next resistance area of 104.700 and 105.063 level. On the lower side, the support continues to hold around 104.056 and 103.667 level. The MACD suggests an overbought situation of the USD/JPY pair; thus, we should look for selling trade below 104.598 and buying above the same. Good luck! 

Categories
Forex Market Analysis

Daily F.X. Analysis, November 25 – Top Trade Setups In Forex – Unemployment Claims Eyed! 

The economic calendar is filled with medium impact economic events such as Unemployment Claims, UoM Consumer Sentiment, and Prelim GDP q/q from the United States on the news front. The market may show some price action during the U.S. session on the release of U.S. Jobless Claims.

Economic Events to Watch Today  

 


EUR/USD – Daily Analysis

The EUR/USD pair was closed at 1.18897 after placing a high of 1.18959 and a low of 1.18334. After placing losses for two consecutive days, the EUR/USD pair rose and started to post gains on Tuesday amid the rising optimism and risk sentiment surrounding the market.

The safe-haven appeal suffered after AstraZeneca’s latest news that its vaccine could reach a 90% efficacy rate on the second dosage from 70% in the first one. However, the EUR/USD pair traders remained confused on Tuesday and moved the currency pair between gains and losses throughout the day and ended the day with gains as optimism regarding vaccine overshadowed the U.S. dollar’s strength. The U.S. dollar was strong in the market ahead of Wall Street’s opening; however, it fell under selling pressure after the U.S. Consumer Confidence fell in November. 

On the data front, at 12:00 GMT, the German Final GDP for the third quarter raised to 8.5% against the forecasted 8.2% and supported the single currency Euro that added further gains in EUR/USD pair. AT 14:00 GMT, the German IFO Business Climate for November also raised to 90.7 against the expected 90.3 and supported EUR/USD pair. At 19:00 GMT, the Housing Price Index for September elevated to 1.7% against the projected 0.8% and supported the U.S. dollar from the U.S. side. 

The S&P/CS Composite -20 HPI for the year also surged to 6.6% against the expected 5.3% and supported the U.S. dollar that ultimately capped further gains in EUR/USD pair. At 19:59 GMT, the Richmond Manufacturing Index dropped to 15 points from the projected 20 and weighed on the U.S. dollar that added gains in EUR/USD pair. The most awaited C.B. Consumer Confidence from the U.S. was released at 20:00 GMT also fell to 96.1 against the anticipated 97.7 and weighed on the U.S. dollar that added further gains in EUR/USD pair on Tuesday.

Meanwhile, the reports that the U.S. President Trump has agreed with the transition process with Joe Biden and that the White House has given the go-ahead to Biden raised the risk sentiment and added further gains EUR/USD pair. Furthermore, the vaccine hopes also kept the market sentiment improved with the news that the new vaccine developed by AstraZeneca, a British Pharmaceutical, can provide 90% protection against the coronavirus and be cheaper against the previous Pfizer and Moderna due to its comfortable storage facility. These reports raised hopes that the global economy will start recovering now, and the riskier asset EUR/USD pair gained traction and started posting gains.

Daily Technical Levels

Support   Resistance

1.1851     1.1911

1.1814     1.1934

1.1791     1.1972

Pivot point: 1.1874

EUR/USD– Trading Tip

The EUR/USD is trading with a bullish bias at the 1.1895 level, holding below an immediate resistance level of 1.1912. On the higher side, the EUR/USD pair may find resistance at 1.1912, and a bullish breakout of 1.1912 level can extend the upward trend until 1.1942. On the 2 hour timeframe, the EUR/USD pair was supported by an upward trendline, which got violated, and now the same trendline is supporting EUR/USD pair at 1.1862. Let’s look for a selling trade below the 1.1866 level today. 


GBP/USD – Daily Analysis

The GBP/USD pair was closed at 1.33615 after a high of 1.33802 and a low of 1.32929. The currency pair GBP/USD continued its bullish movement on Tuesday for the 3rd consecutive day. The GBP/USD pair continued getting support from the British Pound’s strength after the rising Brexit optimism in the market. The hopes that a Brexit deal will be reached soon between the U.K. and the E.U. kept underpinning the Sterling and forced GBP/USD pair to remain on the market’s positive side.

Although nothing has been confirmed about the Brexit deal, the talks between both nations have been extended into this week. On Tuesday, a member of the Bank of England’s monetary policy committee said Tuesday that vaccine news had provided some light at the end of the tunnel.

He also said that he saw a long-term scarring effect from the coronavirus outbreak. He added that it was too early to say that vaccine news will significantly improve the Bank’s economic outlook for 2021. He said that even if the economy came back because of the vaccine, it would have to face the economy-Brexit’s further long-term problem.

On the data front, at 16:00 GMT, the CBI Realized Sales for November came in as -25 against the forecasted -34 and supported British Pound and added in the gains of the GBP/USD pair. At 19:00 GMT, the Housing Price Index for September rose to 1.7% against the expected 0.8% and supported the U.S. dollar from the U.S. side. The S&P/CS Composite -20 HPI for the year also raised to 6.6% against the estimated 5.3% and helped the U.S. dollar that ultimately capped further gains in GBP/USD pair. At 19:59 GMT, the Richmond Manufacturing Index fell to 15 points from the anticipated 20 and weighed on the U.S. dollar that added gains in GBP/USD pair. The most awaited C.B. Consumer Confidence from the U.S. was released at 20:00 GMT, also fell to 96.1 against the projected 97.7 and weighed on the U.S. dollar that added further gains in GBP/USD pair on Tuesday.

Furthermore, the GBP/USD pair was also supported by the latest optimism in the market that had kept the risk-on market sentiment improved. The risk perceived British Pound was supported by the risk sentiment raised by the AstraZeneca vaccine news. Its vaccine was proven to be 90% effective in the second dosage. It was said to be cheaper as it can be stored in an ordinary refrigerator compared to Pfizer, and Moderna’s vaccines that provide 95% protection against the virus were not so easy to store. This optimism also kept the market’s risk sentiment on the upper side and continued supporting the GBP/USD pair on Tuesday.

Daily Technical Levels

Support   Resistance

1.3289     1.3312

1.3274     1.3320

1.3266     1.3336

Pivot point: 1.3297

GBP/USD– Trading Tip

The GBP/USD traded bearishly at 1.3340, having bounced off over the support area of the 1.3292 level. On the higher side, the pair may go after the resistance level of 1.3394. Over there’s an upward trendline that is supporting Sterling on the 2-hour timeframe. The Cable below the 1.3292 level may find support at the 1.3240 level while the RSI and MACD support buying. Thus we should consider taking buying trade over the 1.3292 level to target 1.3394. 


USD/JPY – Daily Analysis

The USD/JPY pair was closed at 104.439 after placing a high of 104.759 and a low of 104.144. The pair USD/JPY seesawed on Tuesday as it moved in an upward direction in early trading hours and reached near 104.76 level while in the late trading session, the USD/JPY pair started to lose its earlier gains and continued its bearish bias. The selling bias in the currency pair USD/JPY raised on Tuesday after posting massive gains on Monday amid the mixed market sentiment. The safe-haven Japanese Yen was under pressure on Tuesday after the positive market mood circulated due to progress in AstraZeneca’s coronavirus vaccine.

The equity market rallied after the latest optimism regarding the 90% adequate protection against the coronavirus with a comfortable storage facility compared to Pfizer’s and Moderna vaccine’s 95% protection against the virus with a difficult storage facility. The market participants continued following the optimism and shifted towards riskier assets against the safer ones.

The equity market was also boosted on Tuesday, with Dow Jones moving up at 30,000 points and the three main indexes in Wall Street rising by 1.5% each. The risk rally in Wall Street added pressure on the safe-haven Japanese Yen and supported the USD/JPY pair’s upward momentum on Tuesday. The USD/JPY pair could not remain on the upper side for long and started to lose its earlier gains after releasing the U.S. Macroeconomic data. At 19:00 GMT, the Housing Price Index for September from the U.S. rose to 1.7% against the anticipated 0.8% and supported the U.S. dollar. The S&P/CS Composite -20 HPI for the year also raised to 6.6% against the estimated 5.3% and helped the U.S. dollar. At 19:59 GMT, the Richmond Manufacturing Index was dropped to 15 points from the forecasted 20 and weighed on the U.S. dollar that added pressure on the USD/JPY pair. The most awaited C.B. Consumer Confidence from the U.S. was also released at 20:00 GMT that fell to 96.1 against the estimated 97.7 and weighed on the U.S. dollar that ultimately added in the losses of the USD/JPY pair on Tuesday.

The decline in Consumer Confidence in November weighed on the local currency U.S. dollar as the rising number of coronavirus cases in the U.S. was raising questions over the economic recovery in the absence of further stimulus aid. The talks were set to resume between Republicans and Democrats to discuss the possibility of delivering an additional aid package in December.

Furthermore, the latest news from the White House that the U.S. President-elect Joe Biden was formally given the go-ahead by the federal agency to begin his transition to the presidency also capped further losses in the USD/JPY pair on Tuesday. The U.S. General Services Administration (GSA), an independent agency, determined that Biden was the outward winner of the election and informed Biden that his transition until January 20 could officially begin. The go-ahead was given by the White House to Biden to intensify the fight against the coronavirus. All these positive news kept the risk-on market sentiment supported and continued supporting the USD/JPY pair.

Daily Technical Levels

Support   Resistance

103.76     103.87

103.69     103.93

103.64     103.99

Pivot point: 103.81

USD/JPY – Trading Tips

The USD/JPY continues to trade in a fresh choppy range of 104.700 – 104.056 level. On the higher side, a bullish breakout of 104.700 resistance can extend the buying trend until the next resistance area of 104.700 and 105.063 level. On the lower side, the support continues to hold around 104.056 and 103.667 level. The MACD suggests an overbought situation of the USD/JPY pair; thus, we should look for selling trade below 104.598 and buying above the same. Good luck! 

Categories
Forex Signals

AUD/JPY Triple Top Pattern Offering Sell Trade – Quick Update! 

During Wednesday’s Asian trading session, the AUD/JPY currency pair failed to halt its modest bearish moves and remained depressed near below the 77.00 level due to Australia’s downbeat housing data, which tends to undermine the Australian dollar and contribute to the currency pair declines. Apart from this, the reason for the currency pair’s losses could also be attributed to the prevalent Brexit risks and trade tussles between China and the West, which keep challenging the upbeat market mood and undermining the perceived riskier Australian dollar. 

On the contrary, the market risk-on sentiment, backed by the optimism over a potential vaccine for the highly dangerous coronavirus infection, tends to undermine the safe-haven Japanese yen and becomes the key factor that helps the currency pair limit its deeper losses. Furthermore, the risk-on market sentiment could also be attributed to the reports suggesting that the U.S. presidential transition has finally started, which offers political certainty. Across the pond, the downbeat Japanese corporate service price index data added further burden around the Japanese yen and became the key factor that kept the lid on any additional losses in the currency pair. Currently, the USD/JPY currency pair is currently trading at 76.67 and consolidating in the range between 76.64 – 77.05.

Despite the lingering doubts about the U.S. economic recovery and the escalating tension between the world’s two biggest economies, the market players continue to cheering optimism over a potential vaccine for the highly dangerous coronavirus infection, boosts the hopes of global economic recovery and supporting the market trading sentiment. Thus, these further developments surrounding the covid vaccine favor the market’s risk-on mood. However, the perceived risk currency Australian dollar is relatively unaffected by the risk-on market sentiment and remains defensive amid downbeat housing data from Australia. At the data front, the Constriction Work Done for the 3rd-quarter (Q3) dropped below -2.0% forecast and -0.7% previous readouts to -2.3% QoQ.

Across the pond, the reason for the upbeat market mood could also be associated with the on-going optimism over the U.S. economy as President-elect Joe Biden has recently been allowed to receive the President’s Daily Brief, the collection of classified intelligence reports prepared for the national leader. This, in turn, undermined the safe-haven Japanese yen and became the key factor that helps the currency pair limit its deeper losses. Moreover, the currency pair’s losses were also capped by the downbeat Japanese corporate service price index data, which tends to undermine the Japanese yen and helps the currency pair to cap its downside momentum.

On the other hand, the intensifying coronavirus woes across the globe and intensifying lockdown restrictions in Europe and the U.S. keep challenging the upbeat market sentiment, which could also be considered one of the key factors the currency pair down. The reason could also be associated with the long-lasting delay in the much-awaited coronavirus (COVID-19) relief package, which also probes the bulls and contributes to currency pair declines.

Looking ahead, the market traders will keep their eyes on the U.S. economic calendar, which will show the releases of the U.S. Preliminary Q3 GDP, Initial Jobless Claims, Durable Goods, and Core PCE Index. This data will likely influence the USD price dynamics and help traders to take some fresh directions. All in all, the updates surrounding the Brexit, virus, and U.S. stimulus package will not lose their importance.



Daily Support and Resistance

S1 75.57

S2 76.15

S3 76.52

Pivot Point 76.73

R1 77.1

R2 77.31

R3 77.88

The AUD/JPY pair faced resistance at 77 levels, holding below an immediate support level of 76.58. A bearish breakout of the 76.58 level can extend selling bias until the 76.23 level. The MACD and RSI are holding below a double top level of 77, suggesting odds of a selling bias in the AUD/JPY. Continuing a selling trend can lead the AUD/JPY until 76.58 and 76.25 level today, thus we entered the sell trade signal. Stay tuned; good luck! 

Categories
Forex Signals

AUD/USD Breaking Over Triple-Top Pattern – Quick 32 pips Encashed! 

The AUD/USD pair was closed at 0.72859 after placing a high of 0.73371 and a low of 0.72651. On Monday, AUD/USD pair rose and reached a near 0.73380 level amid the risk-on market sentiment; however, the gains started to decline and eventually ended up losing due to increased demand for the US dollar.

The market’s risk sentiment was improved after AstraZeneca; the British pharmaceutical said that its vaccine was 90% effective in preventing the coronavirus with the second dosage. The risk perceived Australian dollar gained traction with the increased risk sentiment and supported the AUD/USD pair’s gains on Monday. However, the AUD/USD pair’s upward momentum started to reverse its direction after the US macroeconomic data released. At 15:00 GMT, Flash Manufacturing PMI from Australia in November came in as 56.1 in comparison to the previous 54.2. Flash Services PMI from Australia came in as 54.9 against the previous 53.7. At 19:45 GMT, the Flash Manufacturing PMI from the US in November surged to 56.7 against the estimated 52.5 and supported the US dollar that weighed on AUD/USD pair. The Flash Services PMI rose to 57.7 against the expected 55.8 and kept the US dollar and added pressure on AUD/USD pair.

Another factor involved in the AUD/USD pair’s downward momentum on Monday was the latest punitive measures imposed by the US over China. The US Trump Administration has banned US investment in 89 Chinese companies and reportedly sent a navy admiral to Taiwan.

Many reports suggest plans by Trump’s administration for a series of confrontations with China before Biden’s inauguration on 20th January. These concerns also kept the risk perceived Australian dollar under pressure and added further in AUD/USD pair losses.

Daily Technical Levels

Support Resistance

0.7303 0.7321

0.7290 0.7328

0.7284 0.7340

Pivot point: 0.7309

The general and long term view of the market is bullish. We were approaching a resistance level at 0.73400, which has now been violated and the AUD/USD pair has the potential to go after the 0.7397 level. We have already captured this trade and enchased 30+ pips in a trade. For now, we will be looking for a retracement until the 0.7395-90 area to take another buying position in AUD/USD as bullish bias seems dominant today. Good luck! 

Categories
Forex Signals

GBP/USD Bounces off Upward Trendline Support – Quick Update on Signal

The GBP/USD pair closed at 1.33222 after a high of 1.33975 and a low of 1.32636. The British Pound raised to its 10-weeks high level and then gave up some gains against the U.S. dollar in late trading sessions on the back of U.S. dollar strength. The rise in GBP/USD pair came in after the rising optimism over a Brexit deal after the European Commission reportedly told E.U. ambassadors that 95% of a post-Brexit deal had been agreed.

Daily Technical Levels

Support Resistance

1.3289 1.3312

1.3274 1.3320

1.3266 1.3336

Pivot point: 1.3297

The GBP/USD traded bearishly at 1.3290, but it now seems to bounce off over the support area of the 1.3292 level. On the higher side, the pair may go after the resistance level of 1.3394. Over there’s an upward trendline that is supporting Sterling on the 2-hour timeframe. Below the 1.3292 level, the Cable may find support at the 1.3240 level while the RSI and MACD are in support of buying. Thus we should consider taking buying trade over the 1.3292 level to target 1.3394. 


Entry Price – Buy 1.33583

Stop Loss – 1.33631

Take Profit – 1.33983

Risk to Reward – 1:1

Profit & Loss Per Standard Lot = -$400/ +$400

Profit & Loss Per Micro Lot = -$40/ +$40

Fellas, now you can check out forex trading signals via Forex Academy mobile app. Follow the links below.

iPhone Users: https://apps.apple.com/es/app/fasignals/id1521281368

Andriod Users: https://play.google.com/store/apps/details?id=academy.forex.thesignal&hl=en_US

Categories
Forex Market Analysis

USD/CAD Breaking Below Triple Bottom – Brace for a Sell Trade! 

The USD/CAD pair was closed at 1.30853 after placing a high of 1.31123 and a low of 1.30452. The USD/CAD pair remained flat during the Monday trading session as the strength of the US dollar kept the pair on the upside while the strength of the Canadian dollar dragged the pair on the lower side simultaneously, which resulted in a flat movement.

The rise in the USD/CAD pair was due to the better-than-expected macroeconomic data on Monday. At 19:45 GMT, the Flash Manufacturing PMI from the US in November raised to 56.7 against the forecasted 52.5, supported the US dollar, and pushed the USD/CAD pair higher. The Flash Services PMI surged to 57.7 against the anticipated 55.8 and kept the US dollar and added gains in the USD/CAD pair.

However, the USD/CAD pair’s gains could not live longer as the improved risk sentiment in the market continuously supported the riskier Canadian dollar. The latest news from AstraZeneca, a British pharmaceutical, said that its vaccine effectively prevented coronavirus. AstraZeneca’s first dosage of vaccine could provide 70% immunity from the virus, whereas the second dosage could provide 90% immunity.

The rising optimism after the vaccine developers’ positive reports gave strength to risk perceived Canadian dollar that added weight on the USD/CAD pair on Monday. Meanwhile, the WTI Crude Oil prices also weighed on the USD/CAD pair after the prices of crude oil rose above the $43 level on Monday amid the rising optimism in the market that, with the progress in vaccine development, the chances for lifting the lockdown restrictions increased that would raise the demand for crude oil.

The rising crude oil prices helped the commodity-sensitive Canadian dollar gather strength against its rival currencies supported by the optimism that coronavirus vaccines will lead to a steady recovery in energy demand. The strong Loonie weighed on the USD/CAD pair, and the pair lost all of its earlier daily gains.

Daily Technical Levels

Support Resistance

1.3079 1.3093

1.3073 1.3101

1.3065 1.3108

Pivot Point: 1.3087


Entry Price – Sell 1.30711

Stop Loss – 1.30711

Take Profit – 1.29911

Risk to Reward – 1:1

Profit & Loss Per Standard Lot = -$400/ +$400

Profit & Loss Per Micro Lot = -$40/ +$40

Fellas, now you can check out forex trading signals via Forex Academy mobile app. Follow the links below.

iPhone Users: https://apps.apple.com/es/app/fasignals/id1521281368

Andriod Users: https://play.google.com/store/apps/details?id=academy.forex.thesignal&hl=en_US

Categories
Forex Market Analysis

Daily F.X. Analysis, November 24 – Top Trade Setups In Forex – Consumer Confidence in Focus!

On the news front, the focus will remain on the U.S. Prelim Consumer Confidence and C.B. Leading Index m/m, which are expected to report mixed outcomes and drive choppy movement in the U.S. dollar. Let’s focus on technical levels today.

Economic Events to Watch Today  

 


 


EUR/USD – Daily Analysis

The EUR/USD pair closed at 1.18402 after placing a high of 1.19058 and a low of 1.17997. The EUR/USD pair rose to its highest since November 9 and reversed its direction after that, and continued placing losses for the day. The decline in the EUR/USD pair despite the improved risk sentiment was due to the U.S. dollar’s strength. The risk-on market sentiment was supported by the latest optimism from various vaccine developments. In contrast, the strength in the U.S. dollar was derived from better-than-expected U.S. macroeconomic data on Monday.

A British pharmaceutical AstraZeneca announced that its potential vaccine was more than 90% effective in its clinical trials for protecting the coronavirus. The first dosage of its vaccine provides 70% protection, while the second dosage could increase the efficacy rate to 90%.

AstraZeneca also said that it would be cheaper than its rival Pfizer vaccine as it can be stored at refrigerator temperature while Pfizer’s vaccine requires a frozen temperature that could make its cost of distribution higher.

Meanwhile, the risk sentiment was also supported by the reports that the US FDA has approved the antibody-drug used by U.S. President Donald Trump last month during his treatment of coronavirus for emergency use. These optimistic reports gave the EUR/USD pair strength in the earlier session and pushed its prices to their highest since November 9.

On the data front, at 13:15 GMT, the French Flash Services PMI declined to 38.0 against the forecasted 39.2 and weighed on Euro. The French Flash Manufacturing PMI also fell to 49.1 against the projected 50.2 and weighed on Euro. At 13:30 GMT, the German Flash Manufacturing PMI raised to 57.9 against the forecasted 56.0 and supported Euro. German Flash Services PMI remained flat with the expectations of 46.2. At 14:00 GMT, Flash Manufacturing PMI from Eurozone in November raised to 53.6 from the projected 53.2 and supported single currency Euro. Flash Services PMI declined 41.3 against the expected 42.2 and weighed on Euro.

The mixed data from Eurozone related to business activity failed to provide any significant movement in EUR/USD pair while the currency pair followed the U.S. dollar movement after the release of macroeconomic data in the American session.

At 19:45 GMT, the Flash Manufacturing PMI from the U.S. in November rose to 56.7 against the projected 52.5 and supported the U.S. dollar. The Flash Services PMI surged to 57.7 against the projected 55.8 and supported the U.S. dollar. After the release of better than expected Manufacturing and Services PMI, the strong U.S. dollar exerted pressure on EUR/USD pair on Monday.

Daily Technical Levels

Support   Resistance

1.1855      1.1871

1.1845      1.1877

1.1839      1.1888

Pivot point: 1.1861

EUR/USD– Trading Tip

The EUR/USD traded sharply bearish, falling from 1.1866 level to 1.1816 support level, which is extended by double bottom level. Closing of a candle over 1.1816 is supported by bullish correction, but at the same time, the EUR/USD pair may also head further higher until the 1.1866 resistance mark. On the 2 hour timeframe, the EUR/USD pair was supported by an upward trendline, which got violated on Monday, and now the same trendline is supporting EUR/USD pair. Let’s look for a selling trade below the 1.1866 level today. 


GBP/USD – Daily Analysis

The GBP/USD pair closed at 1.33222 after a high of 1.33975 and a low of 1.32636. The British Pound raised to its 10-weeks high level and then gave up some gains against the U.S. dollar in late trading sessions on the back of U.S. dollar strength. The rise in GBP/USD pair came in after the rising optimism over a Brexit deal after the European Commission reportedly told E.U. ambassadors that 95% of a post-Brexit deal had been agreed. The deal might be announced over the coming days to allow sufficient time for ratification by the European Parliament before year-end, possibly just the week after Christmas.

Meanwhile, on the data front, at 14:30 GMT, the Flash Manufacturing PMI from the U.K. raised to 55.2 against the forecasted 50.5 and supported British Pound and supported GBP/USD pair. The Flash Services PMI for November from the U.K. also raised to 45.8 against the forecasted 43.2 and supported British Pound and added gains in the GBP/USD pair.

From the U.S. side, at 19:45 GMT, the Flash Manufacturing PMI from the U.S. in November surged to 56.7 against the anticipated 52.5 and supported the U.S. dollar that capped further gains in GBP/USD pair. The Flash Services PMI rose to 57.7 against the forecasted 55.8 and supported the U.S. dollar, and GBP/USD pair lost some of its gains.

Meanwhile, on Monday, the Governor of Bank of England Andrew Bailey said that the long-term effects of a no-deal Brexit on the economy would be worse than the coronavirus pandemic’s long-term impacts. He added that he was relatively optimistic about the economy’s ability to recover from the coronavirus outbreak, but it would be more difficult to adjust with the U.K. trading with the E.U. on World Trade Organization terms.

These concerns added pressure on risk-on market sentiment and made GBP/USD pair to lost some of its earlier daily losses.

Furthermore, Prime Minister Boris Johnson confirmed that the England lockdown would be lifted on December 2, though regional restrictions would be kept to stop coronavirus spread. The second lockdown miscued the U.K. economy that the economy could slip into a double-dip recession and these concerns also added pressure on the GBP/USD pair that lost some of its earlier daily gains.

Daily Technical Levels

Support Resistance

1.3289      1.3312

1.3274      1.3320

1.3266      1.3336

Pivot point: 1.3297

GBP/USD– Trading Tip

The GBP/USD traded bearishly at 1.3290, but it now seems to bounce off over the support area of the 1.3292 level. On the higher side, the pair may go after the resistance level of 1.3394. Over there’s an upward trendline that is supporting Sterling on the 2-hour timeframe. Below the 1.3292 level, the Cable may find support at the 1.3240 level while the RSI and MACD are in support of buying. Thus we should consider taking buying trade over the 1.3292 level to target 1.3394. 


USD/JPY – Daily Analysis

The USD/JPY pair closed at 104.544 after placing a high of 104.635 and a low of 103.681. The USD/JPY pair rose by about 100 pips on Monday after the U.S. dollar became strong across the board. The strength of the greenback was derived from the release of macroeconomic data from the U.S.

At 19:45 GMT, the Flash Manufacturing PMI from the U.S. in November raised to 56.7 against the estimated 52.5 and supported the U.S. dollar. The Flash Services PMI surged to 57.7 against the estimated 55.8 and supported the U.S. dollar that added gains in the USD/JPY pair on Monday.

The better-than-expected U.S. business activity data showed that it was expanded in November at its fastest rate in more than five years and boosted optimism about the U.S. economy’s health that lifted the U.S. dollar, and provided strength to the rising USD/JPY pair.

Other than economic data, the USD/JPY pair was also supported by the market’s rising risk sentiment. The risk sentiment was supported by the latest optimism regarding vaccine developments from different countries. AstraZeneca, the British pharmaceutical, said that its vaccine was 70% effective on the first dosage and 90% effective on the second dosage.

It also reported that it would be cost-effective also as it does not require the frozen temperature to be stored and can only be stored in a refrigerator. These optimistic reports added strength in the risk sentiment and weighed on the safe-haven Japanese Yen that ultimately added strength in the USD/JPY pair.

On Monday, another positive news was that Regeneron’s coronavirus antibody cocktail that President Donald Trump used last month when he was hospitalized with COVID-19 had been approved for an emergency authorization use by the US FDA. There were also reports that the vaccine developed by Pfizer and BioNtech will likely be approved by the US FDA by December 11 and will be available for Americans to use.

With more progress in the vaccine area, lifting the lockdown restrictions increased along with the chances for an economic recovery that raised the risk sentiment and weighed on the safe-haven Japanese Yen that added gains in the USD/JPY pair. However, the pandemic hit economy still needs further support from governments to go through the crisis, and that is why investors were hopeful that the Fed and European Central Banks would likely issue more stimulus aid in December. The USD/JPY pair will likely rise as the risk sentiment has been improved after vaccine development progress.

Daily Technical Levels

Support Resistance

103.76      103.87

103.69      103.93

103.64      103.99

Pivot point: 103.81

USD/JPY – Trading Tips

The USD/JPY has violated a choppy range of 104.056 – 103.667 level. On the higher side, a bullish breakout of 104.056 resistance can extend the buying trend until the next resistance area of 104.59 and 105.063 level. On the lower side, the support continues to hold around 104.056 and 103.667 level. The MACD suggests an overbought situation of the USD/JPY pair; thus, we should look for selling trade below 104.598 and buying above the same. Good luck!