Author: Ali B.

Categories
Forex Signals

USD/CAD Choppy Trading in Play – Brace for a Breakout! 

The USD/CAD closed at 1.30921 after placing a high of 1.30967 and a low of 1.30387. The USD/CAD pair remained on the upward momentum on Friday despite the strength in WTI Crude Oil prices and the Canadian Dollar amid the positive optimism regarding the vaccines. The optimism surrounding the vaccine development from Pfizer and Moderna was also followed by Oxford, the Russian Sputnik V, and China’s Sinovac and raised the market’s risk-on sentiment that supported the risk perceived USD/CAD pair on Friday.

The USD/CAD closed at 1.30921 after placing a high of 1.30967 and a low of 1.30387. The USD/CAD pair remained on the upward momentum on Friday despite the strength in WTI Crude Oil prices and the Canadian Dollar amid the positive optimism regarding the vaccines. The optimism surrounding the vaccine development from Pfizer and Moderna was also followed by Oxford, the Russian Sputnik V, and China’s Sinovac and raised the market’s risk-on sentiment that supported the risk perceived USD/CAD pair on Friday.

The USD/CAD closed at 1.30921 after placing a high of 1.30967 and a low of 1.30387. The USD/CAD pair remained on the upward momentum on Friday despite the strength in WTI Crude Oil prices and the Canadian Dollar amid the positive optimism regarding the vaccines. The optimism surrounding the vaccine development from Pfizer and Moderna was also followed by Oxford, the Russian Sputnik V, and China’s Sinovac and raised the market’s risk-on sentiment that supported the risk perceived USD/CAD pair on Friday.

On the data front, at 18:30 GMT, the Core Retail Sales from Canada raised to 1.0% against the expectations of 0.0% and supported the Canadian Dollar. For September, the Retail Sales also grew to 1.1% from the forecasted 0.2% and kept the Canadian Dollar. The NHPI for October came in line with the projection of 0.8%. At 18:32 GMT, the Corporate Profits for the quarter from Canada also came in line with the anticipations of 44.9%.

The Canadian Dollar was strong across the board on Friday due to supportive macroeconomic data and the rising Crude oil prices. The WTI crude oil was higher on Friday above the $42.5 level after the increased optimism about the coronavirus vaccines from across the world. The rising crude oil prices also supported the commodity-linked currency Loonie that capped further USD/CAD pair gains.

Meanwhile, the Canadian health officials warned that daily coronavirus infections could reach 60K per day by the end of December from their current level of 4.8K if people continue to increase their number of daily contacts. The Canadian PM Justin Trudeau said that Canada saw a massive spike in cases and that there was a risk that hospitals could get overwhelmed. He also said that it was frustrating that Canadians would have to do more to contain the virus from what they did weeks ago. These virus tensions across the North kept the Canadian Dollar weak and supported the rising USD/CAD prices on Friday. 

On the US dollar front, the Dollar was strong across the board as the US Federal Reserve Chairman refrained from providing any clues about further easing in the upcoming Fed meeting and supported the USD/CAD pair’s upward momentum.


Daily Technical Levels:

Support Resistance

1.3039 1.3114

1.3007 1.3157

1.2964 1.3189

Pivot point: 1.3082

The USD/CAD pair is trading sideways in between the narrow range of 1.3120 – 1.3045 level. Investors seem to wait for a solid reason to trigger a breakout of the choppy range. The idea will be take a sell USD/CAD pair below 1.3045 level until 1.2937. Conversely, the continuation of a bullish trend over 1.3120 can lead the USD/CAD pair towards 1.3245. Good luck! 

Categories
Forex Signals

EUR/JPY Breaking Over Intraday Resistance – Buy Setup In-Play

During Monday’s Asian trading session, the EUR/JPY currency pair managed to gain positive traction and edged higher above the 130.00 level 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 upbeat market sentiment was supported by optimism over a potential vaccine/treatment for the highly infectious coronavirus, which boosted the sentiment around the shared currency and helped the currency pair to stay bid. 

During Monday’s Asian trading session, the EUR/JPY currency pair managed to gain positive traction and edged higher above the 130.00 level 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 upbeat market sentiment was supported by optimism over a potential vaccine/treatment for the highly infectious coronavirus, which boosted the sentiment around the shared currency and helped the currency pair to stay bid. 

During Monday’s Asian trading session, the EUR/JPY currency pair managed to gain positive traction and edged higher above the 130.00 level 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 upbeat market sentiment was supported by optimism over a potential vaccine/treatment for the highly infectious coronavirus, which boosted the sentiment around the shared currency and helped the currency pair to stay bid. 

On the contrary, the worsening Coronavirus (COVID-19) Condition in Europe keeps fueling the worries over the Eurozone economic recovery, which could be considered one of the key factors that kept the lid on any additional gains in the currency pair. At the moment, the EUR/JPY currency pair is currently trading at 123.31 and consolidating in the range between the 123.02 – 123.34. Moving on, the traders seem cautious to place any strong position ahead of the German/ Eurozone flash PMIs. However, the big miss on expectations would suggest that worsening Coronavirus (COVID-19) is taking a toll on the Eurozone economy, which could lead to big declines in the shared currency.

As we already mentioned that the market trading sentiment remained well supported by the renewed optimism over a possible vaccine for the highly infectious coronavirus disease, which instantly boosted the market risk tone. The vaccine hopes were bolstered after reports came that the vaccinations against coronavirus disease in the U.S. will likely start in 3-weeks, as the FDA is showing readiness to approve drugmaker Pfizer and German partner BioNTech’s experimental candidate in mid-December. Apart from the U.S., the U.K. is expected to give Pfizer’s vaccine a green signal this week. This, in turn, boosted hopes for a global economic recovery in 2021. Therefore, 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 put some bids.

Moreover, the market trading sentiment was further bolstered by the positive developments surrounding the Brexit talks between the U.K. and the European Union (E.U.). It is worth recalling that the European Union (E.U.) and the U.K. are very closer to breaking the deadlock over fisheries’ key issue. 

On the contrary, the worsening Coronavirus (COVID-19) condition in Europe keeps fueling the worries over the Eurozone economic recovery, which could be considered one of the key factors that kept the lid on any additional gains in the currency pair. However, the shared currency’s ability to stay bid will be tested on the day as a survey-based indicator(Eurozone PMIs) is set to show the true amount of damage to the economy caused by the resurgence of coronavirus. Thus, the big miss on expectations would suggest that worsening Coronavirus (COVID-19) is taking a toll on the Eurozone economy, leading to significant declines in the shared currency. Conversely, the Upbeat PMIs, especially Germany’s manufacturing sector, could push the single currency higher.

Across the pond, the gains in the currency pair were further capped by the latest statements of Christine Lagarde, President of the ECB, that the ECB will be taking action in December and caused the shared currency to come under pressure against its rivals. In the meantime, the Italian Prime Minister Giuseppe Conte said they are considering starting setting nightly curfews in the country, while the German Chancellor Angela Merkel said they are expected to limit contacts between people in private for all winter months. This, in turn, becomes the key factor that kept the lid on any further gains in the currency pair.

Looking ahead, the market traders will keep their eyes on U.S. Markit Manufacturing PMIs along with the German/ Eurozone flash PMIs, which are scheduled to release later in the day. All in all, the updates surrounding the Brexit, virus, and U.S. stimulus package will not lose their importance. 

Daily Support and Resistance

S1 122.27

S2 122.74

S3 122.94

Pivot Point 123.21

R1 123.41

R2 123.68

R3 124.16

Entry Price – Buy 123.281

Stop Loss – 122.881

Take Profit – 123.681

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 23 – Top Trade Setups In Forex – PMI Figures in Highlights! 

On the news front, eyes will remain on the Manufacturing PMI and Services PMI figures from the Eurozone, the U.K., and the United States. Almost all economic figures are expected to perform better than previous months, perhaps due to a lift of lockdown. Price action will depend upon any surprise changes in the PMI figures.

On the news front, eyes will remain on the Manufacturing PMI and Services PMI figures from the Eurozone, the U.K., and the United States. Almost all economic figures are expected to perform better than previous months, perhaps due to a lift of lockdown. Price action will depend upon any surprise changes in the PMI figures.

On the news front, eyes will remain on the Manufacturing PMI and Services PMI figures from the Eurozone, the U.K., and the United States. Almost all economic figures are expected to perform better than previous months, perhaps due to a lift of lockdown. Price action will depend upon any surprise changes in the PMI figures.

Economic Events to Watch Today  

 

EUR/USD – Daily Analysis

The EUR/USD pair closed at 1.18563 after placing a high of 1.18906 and a low of 1.18495. Despite vaccine-related optimism and improved risk sentiment in the market, the currency pair EUR/USD dropped on Friday amid the continuous rise in the number of coronavirus cases along with the latest disagreement between the Fed and U.S. Treasury related to the unused funds of emergency lending programs.

On Thursday, U.S. Treasury Secretary Steven Mnuchin sent a letter to Fed’s Chair Jerome Powell and asked him to return the unused funds in five emergency lending programs that will expire in December. Mnuchin claimed that those funds could be used for other purposes by Congress. Mnuhcin also asked Powell to extend the other four emergency credit facilities.

Meanwhile, the U.S. coronavirus situation got worse as November was not still over, but there have been almost 3 million new cases reported. It is about a quarter of all the U.S. cases since the beginning of the pandemic. The U.S. hospitalization rate was getting higher to an alarming level as it was forcing the health care system to reduce care for even non-COVID-19 patients.

Given the coronavirus situation in the U.S., many states announced restrictive measures to control the spread. On the European side, the situation was a bit under control after the strict lockdown measures. However, the old continent’s situation in Europe was far from getting better, and market players were worried that a steep economic downturn would be seen in the last quarter of the year.

These tensions raised the concerns that economic recovery was under pressure and supported the safe-haven appeal that ultimately weighed on the risk perceived EUR/USD pair on Friday. Furthermore, central banks’ calls for another round of stimulus measures to help support the economy started to increase. In response, the Federal Reserve Chairman Jerome Powell has been refrained to give any hint about any action in December whereas, his European counterpart Christine Lagarde has said that a large easing package will be coming in the next meeting. Lagarde’s comments also weighed on the single currency that ultimately added losses in the EUR/USD pair on Friday.

At 12:00 GMT, The German PPI for October remained flat at 0.1% on the data front. At 19:50 GMT, the Consumer Confidence also came in line with the expectations of -18. There was no macroeconomic figure to be released from the U.S., which means the pair EUR/USD was unaffected by any data on Friday.

Meanwhile, the vaccine news from Pfizer and BioNtech that they were going to apply for US FDA approval for emergency authorization use of their vaccine raised the risk sentiment in the market. Combined with this optimism, the other companies, including Moderna, Oxford, the Russian Sputnik V, and China’s Sinovac, also provided updates about the vaccine’s efficacy and supported the market’s risk of improved sentiment that ultimately capped further losses in the EUR/USD pair.


Daily Technical Levels

Support  Resistance

1.1831      1.1898

1.1790      1.1924

1.1764      1.1965

Pivot point: 1.1857

EUR/USD– Trading Tip

The EUR/USD is trading with a bearish bias at the 1.173 level, forming an ascending triangle on the 2-hour timeframe. On the lower side, the pattern supports the EUR/USD pair at 1.1850, and here violation of the 1.1850 level can extend the EUR/USD pair towards the 1.1816 level. On the higher side, a bullish breakout of the 1.1889 level can extend the buying trend until the 1.1924 level. The bullish bias remains dominants today as the MACD and 50 periods EMA support a bullish trend. Let’s consider taking a buying trade over 1.1889 with a take profit of 1.1924 level. 

GBP/USD – Daily Analysis

The GBP/USD pair closed at 1.32891 after placing a high of 1.32977 and a low of 1.32403. GBP/USD remained bullish on Friday amid the latest Brexit optimism and the coronavirus vaccine’s rising hopes. The currency pair remained on the upper track this week as Brexit dominated the scene and supported the British Pound. The coronavirus situation in the U.K. was improving as the U.K. was set to announce a wide easing of coronavirus rules for a week at Christmas.

Next week, Boris Johnson will announce a plan for an easing of rules on Covid, and he also warned that the level of restrictions for the rest of next month would depend on how well the public obey the current lockdown in England that will end on 2nd December. Brexit headlines were, however, contradictory during the week as PM Boris Johnson signaled that the U.K. would prosper without a deal and E.U. officials indicated that talks could collapse. The British press talked about a French compromise on the fisheries issue that a key sticking point in the Brexit deal. After the French compromise on fisheries, the Brexit optimism continued supporting the British Pound and added gains in GBP/USD pair.

Another factor involved in the GBP/USD’s bullish sentiment, Pfizer and BioNtech said that they would apply for approval of emergency use of their vaccine on Friday, which also helped risk sentiment improve and support the British Pound. Following Pfizer, Moderna also said that its vaccine was 94.5% effective in preventing the coronavirus and helped raise the market’s optimism that also supported the GBP/USD pair’s upward trend.

On the data front, at 05:01 GMT, GfK Consumer Confidence remained flat with the forecasted -33. At 12:00 GMT, the Retail Sales from the U.K. for October raised to 1.2% against the expected -0.3% and supported British Pound that added further gains in GBP/USD pair. The Public Sector Net Borrowing declined to 21.6 against the forecasted 31.6B and kept British Pound and added improvements in the currency pair GBP/USD pair.

Meanwhile, in the U.S., the need for a stimulus package increased with the rising coronavirus cases, but Fed Chairman Jerome Powell refrained from giving any hint about further aid in the upcoming December meeting. The hospitalization in the U.S. for coronavirus patients increased to a worse level, forcing many state governors to announce restrictive measures to control the virus’s spread. It weighed on the U.S. dollar and helped GBP/USD pair to post gains on Friday.

Daily Technical Levels

Support   Resistance

1.3211      1.3296

1.3161      1.3331

1.3127      1.3381

Pivot point: 1.3246

GBP/USD– Trading Tip

The GBP/USD continues trading bullish at the 1.3307 level, holding over the 1.3303 support level, supporting the buying trend. The recent bullish engulfing candle on the 2-hour timeframe can lead Sterling further higher until the 1.3368 area. The MACD and RSI have crossed over on the higher side, suggesting further odds of bullish trend continuation. Typically such kind of ascending trend breakout can lead the pair further higher, so let’s consider taking buying trade over the 1.3307 level today. 

USD/JPY – Daily Analysis

The USD/JPY pair closed at 103.823 after placing a high of 103.909 and a low of 103.700. After falling for six consecutive days, the USD/JPY pair posted small gains on Friday amid the reports about the resumption of the U.S. fiscal aid talks. The small uptick in the USD/JPY pair after massive selling in the previous six days could be solely attributed to optimism led by reports that U.S. lawmakers have agreed to resume talks on another coronavirus stimulus package.

The positive sentiment was somehow offset by the U.S. Treasury Secretary Steven Mnuchin’s decision to end some pandemic relief for struggling businesses. This came in after the tensions increased about the potential economic fallout from the continuous rise in new coronavirus cases, which held the U.S. dollar bulls from placing aggressive bets.

Meanwhile, the safe-haven appeal came back in the market after the number of coronavirus cases started to increase in the U.S. On Thursday, the U.S. reported about 185,000 cases of coronavirus in a single day and set a record. The number of hospitalized patients in the U.S. also increased by almost 50% in just the last two weeks that eventually urged many states to impose new restrictions to stop the virus from spreading further.

Meanwhile, the Governor of California imposed a 10 PM curfew in most populated U.S. states that will take effect from Saturday. Moreover, the Centre for Disease Control advised Americans not to travel on Thanksgiving holiday as it would increase the infection rate. These concerns added uncertainty in the market and raised a safe-haven appeal that supported the safe-haven Japanese Yen and capped the USD/JPY pair’s gains on Friday.

There was no macroeconomic data from the U.S. on Friday, and from Japan, at 04:30 GMT, the National Core CPI for the year from Japan remained flat with the anticipations of -0.7%. The macroeconomic data failed to impact on currency pair USD/JPY.

Pfizer and BioNtech announced on Friday that they would apply on the day to the US FDA for approval of emergency use of their vaccine on the vaccine front. This, combined with the other companies, included AstraZeneca and Oxford University’s latest reports of their vaccine’s efficacy, added strength in the risk sentiment, and supported the USD/JPY pair’s gains on Friday.

Daily Technical Levels

Support   Resistance

103.56      104.07

103.38      104.40

103.04      104.58

Pivot point: 103.89

USD/JPY – Trading Tips

The USD/JPY extends its bearish trend below the 104.102 level, consolidating within a narrow trading range 104.102 – 103.650. On the lower side, the USD/JPY pair is likely to find support at the 103.650 level, and violation of this level can also extend further selling bias until 103.227. On the higher side, the USD/JPY safe-haven pair may find resistance at 104.400 and may help us capture a selling trades below this level as the MACD and RSI support the selling trend today. Good luck! 

Categories
Forex Signals

Descending Triangle Pattern in the USD/CHF – Is It Going to Break Lower?

During Monday’s Asian trading hours, the USD/JPY currency pair failed to stop its overnight bearish moves and caught further offers below the 0.9100 level. However, the reason for the bearish tone around the currency pair could be associated with the broad-based U.S. dollar weakness, triggered by the risk-on market mood, which tends to weaken the safe-haven U.S. dollar. Hence, optimism was supported by optimism over a potential vaccine/treatment for the highly infectious coronavirus. In that way, the positive tone around the equity market also weakened the safe-haven Swiss franc and became the factor that cap further downside momentum for the USD/CHF currency pair. Currently, the USD/CHF currency pair is currently trading at 0.9099 and consolidating in the range between 0.9095 – 0.9117.

During Monday’s Asian trading hours, the USD/JPY currency pair failed to stop its overnight bearish moves and caught further offers below the 0.9100 level. However, the reason for the bearish tone around the currency pair could be associated with the broad-based U.S. dollar weakness, triggered by the risk-on market mood, which tends to weaken the safe-haven U.S. dollar. Hence, optimism was supported by optimism over a potential vaccine/treatment for the highly infectious coronavirus. In that way, the positive tone around the equity market also weakened the safe-haven Swiss franc and became the factor that cap further downside momentum for the USD/CHF currency pair. Currently, the USD/CHF currency pair is currently trading at 0.9099 and consolidating in the range between 0.9095 – 0.9117.

During Monday’s Asian trading hours, the USD/JPY currency pair failed to stop its overnight bearish moves and caught further offers below the 0.9100 level. However, the reason for the bearish tone around the currency pair could be associated with the broad-based U.S. dollar weakness, triggered by the risk-on market mood, which tends to weaken the safe-haven U.S. dollar. Hence, optimism was supported by optimism over a potential vaccine/treatment for the highly infectious coronavirus. In that way, the positive tone around the equity market also weakened the safe-haven Swiss franc and became the factor that cap further downside momentum for the USD/CHF currency pair. Currently, the USD/CHF currency pair is currently trading at 0.9099 and consolidating in the range between 0.9095 – 0.9117.

While discussing the positive side of the story, the renewed optimism over a possible vaccine for the highly infectious coronavirus disease boosted the market risk tone. However, the hopes of the vaccine were boosted after Gilead Sciences received US FDA approval for its antiviral therapy to treat the highly contagious coronavirus disease. Elsewhere, the reasons for the risk-on market trading sentiment could also be attributed to rising expectations of further U.S. stimulus package. These hopes were fueled by the positive remarks of President Donald Trump and House of Representatives Speaker Nancy Pelosi, which eventually raised hopes for the measures to be passed before the election. 

Despite the worries over the coronavirus pandemic’s resurgence, the renewed optimism over a possible vaccine for the highly infectious coronavirus disease boosted the market risk tone. These hopes were boosted after reports suggesting that the vaccinations against coronavirus disease in America may start in 3-weeks, as the FDA will approve drugmaker Pfizer and German partner BioNTech’s experimental candidate in mid-December. Simultaneously, the U.K. is expected to give a green signal to Pfizer’s vaccine this week. This, in turn, boosted hopes for a global economic recovery in 2021. 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.

As a result of the upbeat market sentiment, the broad-based U.S. dollar failed to gain any bullish traction and edged lower on the day as doubts persist over the global 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. 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, was down at 92.707.

Across the ocean, the optimism around the equity market was rather unaffected by the intensifying market worries regarding the continuous surge in new coronavirus cases in Europe and the United States, which keep fueling the doubts over the global economic recovery through imposing new lockdown restrictions on economic and social activity. Apart from this, the long-lasting inability to pass the U.S. fiscal package and the jitters over the Sino-US also capped upside momentum for the trading sentiment.

Looking ahead, the market traders will keep their eyes on U.S. Markit Manufacturing PMIs, which are scheduled to release later in the day. All in all, the updates surrounding the Brexit, virus, and U.S. stimulus package will not lose their importance. 

Daily Support and Resistance

S1 0.9045

S2 0.9077

S3 0.9094

Pivot Point 0.9109

R1 0.9125

R2 0.9141

R3 0.9172

The USD/CHF is trading over 0.9093 level, testing the support level of 0.9093 for the fourth time now. Typically the descending triangle pattern breaks on the lower side, and that’s what we are expecting today. If this happens, we may see USD/CHF pair falling towards the 0.9033 area. Checkout a trade plan below…

Entry Price – Sell 0.90995

Stop Loss – 0.91395

Take Profit – 0.90595

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 Triple Top Pattern Pushing the Pair Lower!


The EUR/USD is trading with a bearish bias at the 1.1844 level, having violated an upward trendline on the hourly chart. On the lower side, the support stays at 1.1832, and below this, the EUR/USD may find next support at 1.1814. On the higher side, the resistance can be found at the 1.1867 level. The bullish bias remains dominants today as the MACD and 50 periods EMA support a bullish trend. We are already holding a buying trade from yesterday; therefore, you are advised to follow our forex signals page for more updates on the EUR/USD pair.

Categories
Forex Market Analysis

Daily F.X. Analysis, November 20 – Top Trade Setups In Forex – Eyes on Retail Sales!

The broad-based U.S. dollar failed to stop its overnight losses and remain bearish on the day mainly due to the mixed U.S. Stimulus story. Moreover, the doubts over the U.S. economic recovery in the wake of coronavirus resurgence also weigh on the U.S. dollar. On the news front, eyes will remain on U.K.’s and Canada’s core retail sales to determine further market trends. 

The broad-based U.S. dollar failed to stop its overnight losses and remain bearish on the day mainly due to the mixed U.S. Stimulus story. Moreover, the doubts over the U.S. economic recovery in the wake of coronavirus resurgence also weigh on the U.S. dollar. On the news front, eyes will remain on U.K.’s and Canada’s core retail sales to determine further market trends. 

The broad-based U.S. dollar failed to stop its overnight losses and remain bearish on the day mainly due to the mixed U.S. Stimulus story. Moreover, the doubts over the U.S. economic recovery in the wake of coronavirus resurgence also weigh on the U.S. dollar. On the news front, eyes will remain on U.K.’s and Canada’s core retail sales to determine further market trends. 

Economic Events to Watch Today  

 

 

EUR/USD – Daily Analysis

The EUR/USD currency pair managed to stop its previous day losing streak and remain bullish around the 1.1886 level mainly due to the broad-based U.S. dollar selling bias, triggered by the cautious sentiment around the U.S. stimulus story, which ultimately lends support to the currency pair. However, Mnuchin’s call to recollect funds allocated to Federal Reserve, which eventually weighed on the market trading sentiment, failed to provide any support to the greenback as the Republican heavyweight McConnell recently showed readiness to resume the discussions with the Democrats on a new COVID-19 relief package, which ultimately undermined the U.S. dollar. 

That’s very surprising as the U.S. dollar usually draws bids alongside losses in the equities market. On the contrary, the buying interest around the single currency was capped by the intensifying virus fugues in Europe, which eventually becomes the key factor that has been capped further upside in the currency pair. At the moment, the EUR/USD currency pair is currently trading at 1.1888 and consolidating in the range between the 1.1865 – 1.1891.

The equity market has been declining since the day started amid mixed concerns over the U.S. stimulus story. The Mnuchin’s asked the Federal Reserve to return the remaining coronavirus stimulus funds, which could limit the central bank’s capacity to give additional support to businesses at a time when the coronavirus second wave is accelerating. Let me remind you that these funds were meant for global lending to local government, non-profits, businesses. These factors have been weighing on the market trading sentiment, which could be considered as the main factors that cap further downside in the safe-haven U.S. dollar losses.

On the contrary, Republican heavyweight McConnell recently showed a willingness to continue the negotiations with the Democrats on a new COVID-19 relief package. This news is negative for the U.S. dollar, as a stimulus package would have the effect of reducing the U.S. dollar.

As in result, the broad-based U.S. dollar failed to stop its overnight losses and remain bearish on the day mainly due to the mixed U.S. Stimulus story. Moreover, the doubts about the U.S. economic recovery in the wake of coronavirus resurgence also weigh on the U.S. dollar. Thus, the U.S. dollar losses could also be a key factor that kept the currency pair higher. Meantime, the dollar index unchanged at 92.306 (=USD), off Thursday’s low of 92.236, though it is still down 0.3% on the week.

On the bearish side, the intensifying market worries regarding the continuous hike in new coronavirus cases in Europe and the United States keep fueling the doubts over the global economic recovery through imposing back to back lockdown restrictions on economic and social activity, which eventually weighed on the shared currency and becomes the key factor that kept the lid on any additional gains in the currency pair. 

In the absence of significant data/events on the day, the market traders will keep their eyes on the ongoing drama surrounding the U.S. stimulus package. 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 Technical Levels

Support   Resistance

1.1836       1.1880

1.1820       1.1908

1.1791       1.1924

Pivot point: 1.1864

EUR/USD– Trading Tip

On Friday, the EUR/USD is trading with a bearish bias at the 1.1844 level, having violated an upward trendline on the hourly chart. On the lower side, the support stays at 1.1832, and below this, the EUR/USD may find next support at 1.1814. On the higher side, the resistance can be found at the 1.1867 level. The bullish bias remains dominants today as the MACD and 50 periods EMA support a bullish trend. We are already holding a buying trade from yesterday; therefore, you are advised to follow our forex signals page for more updates on the EUR/USD pair. 

GBP/USD – Daily Analysis

During Friday’s European trading session, the GBP/USD currency pair managed to gain positive traction for the second straight session and refresh the intra-day high around closer to 1.3300 level mainly due to the broad-based U.S. dollar fresh weakness, backed by the doubts over the next round of the U.S. fiscal stimulus measures, which eventually undermined the U.S. dollar and contributed to the currency pair gains. 

On the contrary, the worsening coronavirus (COVID-19) conditions in the U.S. and Europe raised the fears of global economic recovery, which could be considered one of the key factors that kept the lid on any additional gains in the currency pair. In the meantime, the gains in the currency pair were also capped by negative Brexit news. At a particular time, the GBP/USD currency pair is currently trading at 1.3275 and consolidating in the range between 1.3247 – 1.3288.

According to the latest report, the European Union (E.U.) prepares for no-deal Brexit plans after the discussions’ dragging. The fears of no-deal Brexit were further bolstered after E.U.’s Chief Negotiator Michel Barnier self-isolated after a member of his team contracted the infection.

Despite the fears of no-deal Brexit and the Sino-American skirmish, not to forget the record single-day increase in COVID-19 cases, the currency pair managed to gain positive traction amid a weaker U.S. dollar. At the USD front, the broad-based U.S. dollar failed to gain any positive traction and edged lower on the day as doubts over the U.S. economic recovery remain amid the coronavirus crisis. The losses in the U.S. dollar kept the currency pair higher. Meantime, the dollar index unchanged at 92.306 (=USD), off Thursday’s low of 92.236, though it is still down 0.3% on the week.

In the absence of significant data/events on the day, the market traders will keep their eyes on the ongoing drama surrounding the U.S. stimulus package. 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 Technical Levels

Support    Resistance

1.3155       1.3236

1.3118       1.3280

1.3073       1.3317

Pivot point: 1.3199

GBP/USD– Trading Tip

Most technical levels are the same as Sterling didn’t make any significant change in the market. The GBP/USD pair is trading bullish at the 1.3279 level, holding over the 1.3227 support level, which is extended by an upward trendline on a 2-hour timeframe. The Cable is likely to face immediate resistance at the 1.3297 area, which will be confirmed if the candle starts closing below this level. However, the bullish breakout of the 1.3297 level can drive further upside movement until the 1.3370 level today. 

USD/JPY – Daily Analysis

A day before, the USD/JPY pair was closed at 103.795 after placing a high of 104.207 and a low of 103.650. The currency pair USD/JPY remained bearish for the 5th consecutive session on Wednesday and dragged its prices below the 103.700 level. The USD/JPY pair was extending its losses due to the U.S. dollar weakness on Wednesday despite the latest optimism regarding the coronavirus vaccine. On Wednesday, Pfizer announced that its vaccine was 95% effective in its study and planning to seek authorization within days.

This news added to the market’s risk sentiment and supported the equity market by providing a 0.45% gain to Dow Jones and 0.04% to NASDAQ. The latest news from Pfizer and BioNtech failed to impress the market, and the pair USD/JPY continued following the U.S. dollar’s weakness on Wednesday. The currency pair was under pressure as the coronavirus situation was getting worse day by day in the U.S. as the death toll surpassed 250,000 level in the major economy. According to Johns Hopkins University, the coronavirus has cost almost 250,180 American lives so far, and the count was increasing day by day. This raised fears that more restrictions could be imposed in many states, which would slow down the economic recovery. These fears weighed in the local currency U.S. dollar, and hence, USD/JPY remained under pressure for the 5th consecutive session on Wednesday.

Given the rising number of infections in the country, the States like California and Illinois stretched their restrictions to battle the rising number of cases as any financial aid package was not close to being delivered by Congress. The rising number of coronavirus cases in the U.S. has forced U.S. officials to announce that public schools in New York City will close again on Thursday as the city has reached a 3% coronavirus test positivity rate. These fears also kept the U.S. dollar under pressure on Wednesday.

The House Speaker Nancy Pelosi and Senate Minority Leader Chuck Schumer urged the Senate Majority Leader Mitch McConnell to resume talks related to the coronavirus relief package. However, McConnell was insisting on a targeted package. The U.S. dollar came under further pressure after the hopes for the talks for further stimulus package increased and weighed on the USD/JPY pair.

On the data front, at 02:00 GMT, the TC Long Term Purchases surged to 108.9B from the expected 41.5B and supported the U.S. dollar. At 18:30 GMT, the Building Permits for October came in line with the projections of 1.55M. The Housing Starts rose to 1.53M from the expected 1.45M and supported the U.S. dollar that ultimately capped further losses in the USD/JPY on Wednesday. On the Japanese side, the Trade Balance for October raised to 0.31T against the 0.11T and supported the Japanese Yen that added further pressure on the USD/JPY pair on Wednesday.

Daily Technical Levels

Support    Resistance

103.58       104.16

103.32       104.48

102.99       104.74

Pivot point: 103.90

USD/JPY – Trading Tips

The USD/JPY extends its bearish trend below the 104.430 level, falling from the 104.850 support area. On the lower side, the USD/JPY pair is likely to find support at the 103.800 level, and violation of this level can also extend further selling bias until 103.227. On the higher side, the USD/JPY safe-haven pair may find resistance at 104.400 and may help us capture a selling trades below this level as the MACD and RSI support the selling trend today. Good luck! 

Categories
Forex Signals

Choppy Session Continues in USD/CAD – Brace for a Breakout! 

The USD/CAD closed at 1.30858 after placing a high of 1.31174 and a low of 1.30341. The USD/CAD pair declined on Wednesday amid the broad-based US dollar weakness and the Canadian dollar’s strength on the day. The risk sentiment was improved on Wednesday after Pfizer and BioNtech said that their vaccine was 95% effective in their study. They were going to seek approval from the US for emergency authorization of vaccine in the coming days. This news raised optimism in the market that vaccines will be delivered soon and would help the global economy recover.

The USD/CAD closed at 1.30858 after placing a high of 1.31174 and a low of 1.30341. The USD/CAD pair declined on Wednesday amid the broad-based US dollar weakness and the Canadian dollar’s strength on the day. The risk sentiment was improved on Wednesday after Pfizer and BioNtech said that their vaccine was 95% effective in their study. They were going to seek approval from the US for emergency authorization of vaccine in the coming days. This news raised optimism in the market that vaccines will be delivered soon and would help the global economy recover.

The USD/CAD closed at 1.30858 after placing a high of 1.31174 and a low of 1.30341. The USD/CAD pair declined on Wednesday amid the broad-based US dollar weakness and the Canadian dollar’s strength on the day. The risk sentiment was improved on Wednesday after Pfizer and BioNtech said that their vaccine was 95% effective in their study. They were going to seek approval from the US for emergency authorization of vaccine in the coming days. This news raised optimism in the market that vaccines will be delivered soon and would help the global economy recover.

The rising risk-sentiment in the market helped risk perceived Canadian dollar gain traction against the US dollar that ultimately added pressure on the USD/CAD pair. Meanwhile, the US dollar was already weak across the board after the chances for a further stimulus package from Congress increased after House Speaker Nancy Pelosi and the Senate Minority Leader Chuck Schumer urged the Senate Majority Leader McConnell to start the talks for fiscal aid.

The US was reporting a rising rate of infection cases that were weighing on its local currency as the virus’s spread was costing record lives. According to Johns Hopkins University, the death toll in the US raised to 250,180, and the fears for economic shutdown to control the virus from being spread increased. The US officials also announced to close the New York schools again from Thursday to fight the pandemic.

The inefficiency of Trump’s administration during the pandemic crisis has cost the United States many American lives. The recent Trump’s refusal to give in his presidency to Joe Biden has also created chaos in the economy has weighed heavily on the US dollar. The US dollar weakness added further to the losses of the USD/CAD pair on Wednesday.

Furthermore, on the data front, at 02:00 GMT, the TC Long Term Purchases rose to 108.9B from the anticipated 41.5B and supported the US dollar. At 18:30 GMT, the Building Permits for October remained flat at 1.55M. The Housing Starts raised to 1.53M from the projected 1.45M and supported the US dollar that ultimately capped further losses in the USD/CAD pair.

From the Canadian side, the Consumer Price Index for October rose to 0.4% against the expected 0.2% and supported the Canadian dollar that weighed on the USD/CAD pair. The Common CPI for the year also surged to 1.6% against the anticipated 1.5% and supported the Canadian dollar that added losses in the USD/CAD pair. The Median and Trimmed CPI for the year came in line with the expectations of 1.9% and 1.8%, respectively.

The positive macroeconomic data and the rising WTI crude oil prices on Wednesday supported the commodity-linked Loonie. The crude oil prices raised above $43.4 per barrel despite the increasing number of crude oil inventories from the US and supported the Loonie that weighed on the USD/CAD pair.


Daily technical Levels

Support Resistance

1.3036 1.3122

1.2991 1.3163

1.2949 1.3208

Pivot Point: 1.3077

The USD/CAD pair is trading over the 1.3060 level, mostly supported by the Retail Sales. A bearish breakout of the 1.3040 level can drive the selling trend until the 1.2935 area. While on the other hand, the resistance stays at the 1.3173 level today. The MACD and RSI support the selling trend; thus, we may consider taking a selling trade only upon the breakout of the 1.3055 level and buying over the 1.3060 level. Good luck! 

Categories
Forex Signals

EUR/JPY Supported Over 122.980 – Is it a Good Time to go Long? 

During Thursday’s Early European trading session, the EUR/JPY currency pair failed to stop its early-day declining streak. They took further offers around below 123.00 level mainly due to the intensifying coronavirus (COVID-19) cases in the U.S., Europe, and some of the notable Asian nations like Japan, which eventually exerted downside pressure on the market trading sentiment and contributed to the currency pair losses. As a result of worsening coronavirus (COVID-19) cases in Europe, the Eurozone started to face the risk of a renewed economic contraction, which tends to undermine the shared currency and contributes to the currency pair losses. Apart from this, the geopolitical tensions between China and some notable countries like the U.S. added a burden around the equity market. 

During Thursday’s Early European trading session, the EUR/JPY currency pair failed to stop its early-day declining streak. They took further offers around below 123.00 level mainly due to the intensifying coronavirus (COVID-19) cases in the U.S., Europe, and some of the notable Asian nations like Japan, which eventually exerted downside pressure on the market trading sentiment and contributed to the currency pair losses. As a result of worsening coronavirus (COVID-19) cases in Europe, the Eurozone started to face the risk of a renewed economic contraction, which tends to undermine the shared currency and contributes to the currency pair losses. Apart from this, the geopolitical tensions between China and some notable countries like the U.S. added a burden around the equity market. 

During Thursday’s Early European trading session, the EUR/JPY currency pair failed to stop its early-day declining streak. They took further offers around below 123.00 level mainly due to the intensifying coronavirus (COVID-19) cases in the U.S., Europe, and some of the notable Asian nations like Japan, which eventually exerted downside pressure on the market trading sentiment and contributed to the currency pair losses. As a result of worsening coronavirus (COVID-19) cases in Europe, the Eurozone started to face the risk of a renewed economic contraction, which tends to undermine the shared currency and contributes to the currency pair losses. Apart from this, the geopolitical tensions between China and some notable countries like the U.S. added a burden around the equity market. 

The downbeat market sentiment tends to underpin the safe-haven Japanese yen and contribute to the currency pair losses. On the contrary, the optimism about promising vaccine trial results helps the market trading sentiment limit its deeper losses, which might support the currency pair. As of writing, the EUR/JPY currency pair is currently trading at 123.12 and consolidating in the range between 122.83 – 123.19.0.

The intensifying market worries regarding the continuous surge in new coronavirus cases in Europe and the United States keep fueling the doubts over the global economic recovery through imposing back to back lockdown restrictions on economic and social activity, which eventually weighed on the market trading sentiment. As per the latest Johns Hopkins University report, the global cases crossed 56 million figures, of which 11.5 million are in the U.S., along with nearly 250,000 deaths, almost one-fifth of total global deaths. Not only from the U.S. but Tokyo also alarmed investors. As in result, New York restricts personal presence at the schools while Japan alarmed alerts in the capital after the daily cases rise crosses 500 on November 16. It is worth mentioning that Japan’s COVID-19 claims raised past-2,000 for the first time since the virus outbreak began. At the same time, Germany reported 22,609 new coronavirus infections, the 3rd-highest daily hike on record. Two hundred fifty-one deaths were recorded, as the total fatalities reached 13,370 so far. This, in turn, exerted downside pressure on the market risk tone and contributed to currency pair gains.

Apart from this, the bearish market sentiment could also be associated with the long-lasting US-China tussle, which continuously picks the pace. As per the latest report, the U.S., U.K., and Australia recently released a joint statement showing their disappointment over the Dragon Nation’s performance in Hong Kong. The global policymakers urged the Asian major to respect international commitment while urging to stop threatening Hong Kong peoples. 

On the other side, the Eurozone has been facing the risk of a renewed economic contraction, sparked by the second wave of the coronavirus accelerating in Europe. As in result, the consumer prices are already declining in a worrying sign for the European Central Bank, which is already running an ultra-accommodative policy and has chances to give a dovish surprise. 

Looking forward, the traders will keep their eyes on U.S. Unemployment Claims along with Philly Fed Manufacturing Index. The release of Switzerland Trade Balance will be key to watch. Across the pond, the ongoing drama surrounding the US-China relations and updates about the U.S. stimulus package will not lose their importance. 


Daily Support and Resistance

 S1 122.04

S2 122.63

S3 122.86

Pivot Point 123.23

R1 123.45

R2 123.82

R3 124.41

The EUR/JPY gained support over 122.981 and has formed a bullish candle followed by a Doji pattern. On the higher side, the pair has strong odds of retracing until the 123.500 level; however, a bearish breakout of the 122.950 level can extend the selling trend until 122.226. There can be a buying trade in EUR/JPY pair if it continues to trade over the 122.950 mark. Let’s wait for a buying trade over 122.950 level near 122.860 level. Good luck! 

Categories
Forex Signals

USD/CHF Breaks Above Descending Triangle – Watch out! 

The USD/CHF failed to stop its overnight losing streak and remain depressed around just above the 0.9100 level mainly due to the worsening coronavirus (COVID-19) woes in the U.S., Europe, and some of the notable Asian nations like Japan, which eventually exerted downside pressure on the market trading sentiment and contributed to the currency pair losses. 

The USD/CHF failed to stop its overnight losing streak and remain depressed around just above the 0.9100 level mainly due to the worsening coronavirus (COVID-19) woes in the U.S., Europe, and some of the notable Asian nations like Japan, which eventually exerted downside pressure on the market trading sentiment and contributed to the currency pair losses. 

The USD/CHF failed to stop its overnight losing streak and remain depressed around just above the 0.9100 level mainly due to the worsening coronavirus (COVID-19) woes in the U.S., Europe, and some of the notable Asian nations like Japan, which eventually exerted downside pressure on the market trading sentiment and contributed to the currency pair losses. 

Apart from this, the geopolitical tensions between China and some notable countries like the U.S. added a burden around the equity market. Thereby, the risk-off market sentiment underpins the safe-haven Swiss franc and contributes to the currency pair losses. Conversely, the broad-based U.S. dollar strength, backed by the market risk-off tone, has become the key factor that kept the lid on any additional losses in the currency pair. 

In the meantime, the fresh optimism over Brexit talks and the positive news about vaccine progress help the market trading sentiment limit its deeper losses, which might provide some support to the currency pair. As of writing, the USD/CHF currency pair is currently trading at 0.9109 and consolidating in the range between 0.9104 – 0.9126.

Despite the renewed optimism over the possible vaccine for the highly infectious coronavirus disease, the market trading sentiment failed to extend its overnight positive performance. It started to flash red during the Asian session on the day, possibly due to the combination of factors. Be it the worrisome headlines concerning the US-China tussle or the resurgence of COVID-19 new cases in the U.S., Europe, and Japan; everything has been weighing on the market trading sentiment. This, in turn, provided a boost to the safe-haven Swiss Franc and exerted some additional pressure on the currency pair.

As per the latest Johns Hopkins University report, the global cases crossed 56 million figures, of which 11.5 million are in the U.S., along with nearly 250,000 deaths, nearly one-fifth of total global deaths. Not only from the U.S. but Tokyo also alarmed investors. As in result, New York restricts personal presence at the schools while Japan alarmed alerts in the capital after the daily cases rise crosses 500 on November 16. It is worth mentioning that Japan’s COVID-19 cases raised past-2,000 for the first time since the virus outbreak began. At the same time, Germany reported 22,609 new coronavirus infections, the 3rd-highest daily hike on record. Two hundred fifty-one deaths were recorded, as the total fatalities reached 13,370 so far.

Considering the current condition of virus spreading, Poland is also thinking about imposing a nationwide lockdown while major European economies, including France, Italy, Spain, and the U.K., are already under lockdowns. This, in turn, exerted downside pressure on the market risk tone and contributed to currency pair gains.

Elsewhere, the U.S., U.K., and Australia recently released a joint statement showing their disappointment over the Dragon Nation’s performance in Hong Kong. The global policymakers urged the Asian major to respect international commitment while urging to stop threatening Hong Kong peoples. 

As in result, the broad-based U.S. dollar managed to keep its gains throughout the Asian session as the traders are still 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 US COVID-19 aid package delay. However, the U.S. dollar gains turned out to be one of the leading factors that help the currency pair limit its deeper losses. Simultaneously, the U.S. Dollar Index that tracks the greenback against a bucket of other currencies rose to 92.448.

Looking forward, the traders will keep their eyes on U.S. Unemployment Claims along with Philly Fed Manufacturing Index. In the meantime. The release of Trade Balance will be key to watch. Across the pond, the ongoing drama surrounding the US-China relations and updates about the U.S. stimulus package will not lose their importance. 


Daily Support and Resistance

S1 0.9049

S2 0.908

S3 0.91

Pivot Point 0.9111

R1 0.9131

R2 0.9143

R3 0.9174

The USD/CHF has violated the descending triangle pattern, extending resistance at 0.9148 level. Previously, the USD/CHF was extending resistance at the 0.9120 level, and since this level has already been violated, we may have further upward movement until 0.9150 and 0.9199 level. The MACD is also supporting the buying trend; therefore, we can try to capture a quick buy trade over the 0.9110 level today. Good luck!  

Categories
Forex Signals

EUR/GBP Faces Resistance Below Downward Trendline – Sell Trade in Play! 


Entry Price – Buy 0.8973

Stop Loss – 0.9013

Take Profit – 0.8933

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 Violates Upward Channel Breakout – Update on Sell Signal! 

The AUD/USD pair is trading with bearish bias around 0.7284 level; that’s where we have entered sell trade in the Aussie. The U.S. dollar seems to gain strength amid supported fundamentals. From the U.S. side, at 02:00 GMT, the TC Long Term Purchases for October rose to 108.9B against the estimated 41.5B and supported the U.S. dollar. At 18:30 GMT, the Building Permits for October came in line with the estimation of 1.55M. The Housing Starts also rose to 1.53M from the forecasted1.45M and supported the U.S. dollar that ultimately capped further gains in AUD/USD pair on Wednesday.

The AUD/USD pair is trading with bearish bias around 0.7284 level; that’s where we have entered sell trade in the Aussie. The U.S. dollar seems to gain strength amid supported fundamentals. From the U.S. side, at 02:00 GMT, the TC Long Term Purchases for October rose to 108.9B against the estimated 41.5B and supported the U.S. dollar. At 18:30 GMT, the Building Permits for October came in line with the estimation of 1.55M. The Housing Starts also rose to 1.53M from the forecasted1.45M and supported the U.S. dollar that ultimately capped further gains in AUD/USD pair on Wednesday.

The AUD/USD pair is trading with bearish bias around 0.7284 level; that’s where we have entered sell trade in the Aussie. The U.S. dollar seems to gain strength amid supported fundamentals. From the U.S. side, at 02:00 GMT, the TC Long Term Purchases for October rose to 108.9B against the estimated 41.5B and supported the U.S. dollar. At 18:30 GMT, the Building Permits for October came in line with the estimation of 1.55M. The Housing Starts also rose to 1.53M from the forecasted1.45M and supported the U.S. dollar that ultimately capped further gains in AUD/USD pair on Wednesday.

The rising number of coronavirus cases and extended restrictions in California in the U.S. with New York closing its schools from Thursday weighed on the U.S. dollar. As well as, the death rate from the virus in the U.S. reached above 250,000 numbers and became the highest death rate that depressed the U.S. dollar and supported.

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Daily technical Levels

Support Resistance

0.7273 0.7334

0.7242 0.7364

0.7212 0.7395

Pivot point: 0.7303

The AUD/USD was consolidating near the 0.7291 mark, staying below an immediate resistance area of 0.7330. The AUD/USD is expected to remain supported above 0.7270, but until this level gets achieve, we may have an opportunity to short the Aussie. Checkout a trade signal below…

 

Entry Price – Buy 0.8973
Stop Loss – 0.9013
Take Profit – 0.8933
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 19 – Top Trade Setups In Forex – U.S. Jobless Claims in Focus! 

The economic calendar is filled with medium impact economic events such as Unemployment Claims, C.B. Leading Index m/m, and Existing Home Sales from the United States on the news front. Besides, the Current Account from the Eurozone will also remain in the highlights today. The market may show some price action during the U.S. session on the release of U.S. Jobless Claims.

The economic calendar is filled with medium impact economic events such as Unemployment Claims, C.B. Leading Index m/m, and Existing Home Sales from the United States on the news front. Besides, the Current Account from the Eurozone will also remain in the highlights today. The market may show some price action during the U.S. session on the release of U.S. Jobless Claims.

The economic calendar is filled with medium impact economic events such as Unemployment Claims, C.B. Leading Index m/m, and Existing Home Sales from the United States on the news front. Besides, the Current Account from the Eurozone will also remain in the highlights today. 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 1.18539 after placing a high of 1.18908 and a low of 1.18491. The EUR/USD pair dropped on Wednesday after placing gains for four consecutive days. The EUR/USD pair remained on an upbeat track last days amid the market sentiment’s risk-on market sentiment due to the vaccine optimism. The riskier currencies gathered strength against the safe-havens like the USD and posted gains over the last week. However, on Wednesday, the EUR/USD pair started to decline as Europe’s lockdown situation started to raise fears for economic recovery.

However, the second wave of the coronavirus in Europe started to show signs of slowing. The latest numbers showed a stabilization in new cases in Germany, Spain, Italy and a decline in Belgium, France, and the Netherlands. Despite this, the experts have warned that it was too early to get complacent. The lockdowns and tough social restrictions were reintroduced across numerous European countries in October due to the increased spread of the second wave of coronavirus. These restrictions have been placing a threat on European nations’ economic recovery and weighed on Euro currency that has dragged the EUR/USD pair down on Wednesday.

On the data front, at 02:00 GMT, the TC Long Term Purchases from the U.S. raised to 108.9B against the forecasted 41.5B and supported the U.S. dollar that ultimately added losses in the EUR/USD pair. At 18:30 GMT, the Building Permits from October remained flat with the anticipations of 1.55M. The Housing Starts were raised to 1.53M from the projected 1.45M and supported the U.S. dollar that weighed on EUR/USD pair on Wednesday.

From the European side, at 15:00 GMT, the Final CPI for the year came in line with the expectations of -0.3%. The Final CPI for the year also remained flat as expected, 0.2%. European data failed to impact the EUR/USD pair on Wednesday, and the pair continued following the U.S. dollar’s movement.

The losses in the EUR/USD pair were limited after the risk sentiment was improved in the market due to the latest optimism regarding the coronavirus vaccine. Pfizer and BioNtech announced that they would be filing for emergency authorization of their vaccine in the coming days from the U.S. This raised the optimism that vaccines will soon be available in the market, and the chaos will be lifted from the economy, and it will start to recover. The riskier currency Euro gained traction and capped further losses in the EUR/USD pair on Wednesday.

Daily   Technical Levels

Support Resistance

1.1836      1.1880

1.1820      1.1908

1.1791      1.1924

Pivot point: 1.1864

EUR/USD– Trading Tip

The EUR/USD is trading with a bearish bias at the 1.1844 level, having violated an upward trendline on the hourly chart. On the lower side, the support stays at 1.1832, and below this, the EUR/USD may find next support at 1.1814. On the higher side, the resistance can be found at the 1.1867 level. The bullish bias remains dominants today as the MACD and 50 periods EMA support a bullish trend. We are already holding a buying trade from yesterday; therefore, you are advised to follow our forex signals page for more updates on the EUR/USD pair. 

GBP/USD – Daily Analysis

The GBP/USD closed at 1.32670 after placing a high of 1.33120 and a low of 1.32410. The pair GBP/USD continued its bullish momentum for the 4th consecutive day on Wednesday and reached near 1.33200 level. The latest rise in the GBP/USD pair was driven by the growing hopes that a Brexit deal could be within reach after the French President Emmanuel Macron was ready to cave in on demands from the U.K. for full sovereignty waters that will likely rein in access for French fishermen.

This news raised hopes for a Brexit deal before the end of the transition period and supported the British Pound that ultimately lifted the GBP/USD pair higher on board. The Irish Minister Micheal Martin also said that a landing zone for an agreement was within sight just a day ahead of the European Union Summit when the E.U. Brexit negotiator Michel Barnier will brief E.U. leaders about the two weeks of talks held with the U.K.

Chances are increased that an agreement will be made as soon as Monday and will be approved within a week, most likely at the next E.U. Summit on December 10. After that, the European Parliament would have to rubberstamp the agreement to ensure a deal was placed before the end of the transition period on Dec.31st.

All these hopes lifted the British Pound as the chances of a deal were clear for the first time, and things were going in favor of the U.K. However, analysts were concerned that inflation was likely to slow in the months ahead. The GBP/USD pair picked up its pace towards an upward direction due to renewed Brexit optimism and reached near 1.3200 level on Wednesday. On the data front, At 12:00 GMT, the Consumer Price Index for the year raised to 0.7% from the expected 0.5% and supported the Sterling. The year’s Core CPI also raised to 1.5% against the anticipated 1.3% and supported British Pound. The RPI from the U.K. also rose to 1.3% from the expected 1.2% and supported British Pound that ultimately added further gains in GBP/USD pair. At 12:02 GMT, the PPI Input for October surged to 0.2% against the expected 0.0% and supported the British Pound. At the same time, the PPI Output in October remained flat with the expectations of 0.0%. The Housing Price Index from the U.K. also surged to 4.7% against the forecasted 2.9% and supported the British Pound.

The U.K.’s positive macroeconomic data supported the British Pound against the U.S. dollar and raised the GBP/USD pair on Wednesday.

While from the U.S. side, at 02:00 GMT, the TC Long Term Purchases rose to 108.9B against the anticipated 41.5B and supported the U.S. dollar. At 18:30 GMT, the Building Permits for October remained flat with the projections of 1.55M. The Housing Starts surged to 1.53M from the anticipated 1.45M and supported the U.S. dollar that ultimately capped further gains in GBP/USD pair on Wednesday.

Meanwhile, the Bank of England’s Chief Economist Andy Haldane said that the economic outlook for 2021 was materially brighter than he had expected just a few weeks ago despite the short-term uncertainty from a renewed coronavirus lockdown in England. He said that Britain’s economy shrank by almost 20% in the second quarter of 2020, more than any other peer economy, and at the end of September, it was still 8.4% smaller than a year before. He struck a somewhat positive note in line with his previous assessments of Britain’s recovery on Wednesday that raised the British Pound on board against the U.S. dollar. This also benefited the GBP/USD pair on Wednesday, and hence, the pair ended its day with a bullish candle.

Daily Technical Levels

Support   Resistance

1.3155      1.3236

1.3118      1.3280

1.3073      1.3317

Pivot point: 1.3199

GBP/USD– Trading Tip

The GBP/USD pair is trading bullish at the 1.3279 level, holding over the 1.3227 support level, which is extended by an upward trendline on a 2-hour timeframe. The Cable is likely to face immediate resistance at the 1.3297 area, which will be confirmed if the candle starts closing below this level. However, the bullish breakout of the 1.3297 level can drive further upside movement until the 1.3370 level today. 

USD/JPY – Daily Analysis

The USD/JPY pair was closed at 103.795 after placing a high of 104.207 and a low of 103.650. The currency pair USD/JPY remained bearish for the 5th consecutive session on Wednesday and dragged its prices below the 103.700 level. The USD/JPY pair was extending its losses due to the U.S. dollar weakness on Wednesday despite the latest optimism regarding the coronavirus vaccine. On Wednesday, Pfizer announced that its vaccine was 95% effective in its study and planning to seek authorization within days.

This news added to the market’s risk sentiment and supported the equity market by providing a 0.45% gain to Dow Jones and 0.04% to NASDAQ. The latest news from Pfizer and BioNtech failed to impress the market, and the pair USD/JPY continued following the U.S. dollar’s weakness on Wednesday.

The currency pair was under pressure as the coronavirus situation was getting worse day by day in the U.S. as the death toll surpassed 250,000 level in the major economy. According to Johns Hopkins University, the coronavirus has cost almost 250,180 American lives so far, and the count was increasing day by day. This raised fears that more restrictions could be imposed in many states, which would slow down the economic recovery. These fears weighed in the local currency U.S. dollar, and hence, USD/JPY remained under pressure for the 5th consecutive session on Wednesday.

Given the rising number of infections in the country, the States like California and Illinois stretched their restrictions to battle the rising number of cases as any financial aid package was not close to being delivered by Congress. The rising number of coronavirus cases in the U.S. has forced U.S. officials to announce that public schools in New York City will close again on Thursday as the city has reached a 3% coronavirus test positivity rate. These fears also kept the U.S. dollar under pressure on Wednesday.

The House Speaker Nancy Pelosi and Senate Minority Leader Chuck Schumer urged the Senate Majority Leader Mitch McConnell to resume talks related to the coronavirus relief package. However, McConnell was insisting on a targeted package. The U.S. dollar came under further pressure after the hopes for the talks for further stimulus package increased and weighed on the USD/JPY pair.

On the data front, at 02:00 GMT, the TC Long Term Purchases surged to 108.9B from the expected 41.5B and supported the U.S. dollar. At 18:30 GMT, the Building Permits for October came in line with the projections of 1.55M. The Housing Starts rose to 1.53M from the expected 1.45M and supported the U.S. dollar that ultimately capped further losses in the USD/JPY on Wednesday. On the Japanese side, the Trade Balance for October raised to 0.31T against the 0.11T and supported the Japanese Yen that added further pressure on the USD/JPY pair on Wednesday.

Daily Technical Levels

Support   Resistance

103.58      104.16

103.32      104.48

102.99      104.74

Pivot point: 103.90

USD/JPY – Trading Tips

The USD/JPY extends its bearish trend below the 104.430 level, falling from the 104.850 support area. On the lower side, the USD/JPY pair is likely to find support at the 103.800 level, and violation of this level can also extend further selling bias until 103.227. On the higher side, the USD/JPY safe-haven pair may find resistance at 104.400 and may help us capture a selling trades below this level as the MACD and RSI support the selling trend today. Good luck! 

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Forex Signals

AUD/USD Upward Channel Supports – Choppy Session in Play!

The AUD/USD was closed at 0.72998 after placing a high of 0.73393 and a low of 0.72887. After placing gains for two consecutive days, the AUD/USD pair was declined on Tuesday amid the risk-off market sentiment. On Tuesday, the Assistant Governor of Reserve Bank of Australia, Dr. Kent, said that the Aussie’s recent rise was due to the optimistic news of the coronavirus vaccine rather than about the US Presidential election outcome. He said that any positive news about vaccine development would be a good thing for the global economy, including the Australian economy.

The AUD/USD was closed at 0.72998 after placing a high of 0.73393 and a low of 0.72887. After placing gains for two consecutive days, the AUD/USD pair was declined on Tuesday amid the risk-off market sentiment. On Tuesday, the Assistant Governor of Reserve Bank of Australia, Dr. Kent, said that the Aussie’s recent rise was due to the optimistic news of the coronavirus vaccine rather than about the US Presidential election outcome. He said that any positive news about vaccine development would be a good thing for the global economy, including the Australian economy.

The AUD/USD was closed at 0.72998 after placing a high of 0.73393 and a low of 0.72887. After placing gains for two consecutive days, the AUD/USD pair was declined on Tuesday amid the risk-off market sentiment. On Tuesday, the Assistant Governor of Reserve Bank of Australia, Dr. Kent, said that the Aussie’s recent rise was due to the optimistic news of the coronavirus vaccine rather than about the US Presidential election outcome. He said that any positive news about vaccine development would be a good thing for the global economy, including the Australian economy.

Over the chances of negative interest rates by the Reserve Bank of Australia, Kent said it was extraordinarily unlikely that the bank would go for it. These comments from Kent failed to provide any specific movement in AUD/USD pair. Meanwhile, the minutes from the Reserve Bank of Australia were released on Tuesday, showing that the central bank was ready to provide more policy stimulus if needed after cutting rates to record lows. The bank’s board felt taking interest rates negative was not sensible, and any further action would involve increasing bond purchases.

The minutes revealed that the bank has decided to cut its main cash rate by 15 basis points to just 0.1% and launch a new bond-buying program. The board was ready to do more in need, and the focus over the period ahead will be the government bond purchase program. Moreover, on the data front, from the US side, at 19:00 GMT, the Capacity Utilization Rate raised to 72.8% against the estimated 72.3%. It supported the US dollar added further losses in the AUD/USD pair. The Industrial Production came in line with the anticipations of 1.1% in October. At 20:00 GMT, the Business Inventories for September rose to 0.7% against the expected 0.5% and weighed on the US dollar. The NAHB Housing Market Index from the US surged to 90 from the expected 85 and supported the US dollar that weighed on AUD/USD pair.

Another aspect included in the AUD/USD pair’s downward momentum was the risk-off market sentiment due to the rising coronavirus cases across the globe. The second wave of coronavirus forced many governments to re-impose restrictions that raised economic recovery concerns and increased the appeal for safe-haven that weighed on the AUD/USD pair on Tuesday.


Daily technical Levels
Support Resistance
0.7278 0.7329
0.7257 0.7361
0.7226 0.7381
Pivot point: 0.7309

The AUD/USD pair’s technical side hasn’t changed much as it continues to trade around the 0.7291 level, holding below an immediate resistance area of 0.7330 level. The AUD/USD is likely to remain supported over the 0.7270 level, and it may find resistance around the 0.7330 mark. A bearish breakout of the 0.7272 level can extend the selling trend until the 0.7260 level today; let’s keep an eye on the 0.7290 level as below this selling trend can be seen and vice versa. Good luck!

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Forex Signals

USD/CAD Holds Above 1.3060 Support – Brace for a Buy Trade! 

The USD/CAD pair was closed at 1.31037 after placing a high of 1.31164 and a low of 1.30631. After placing losses for two consecutive days, the USD/CAD pair raised on Tuesday amid the declining crude oil prices and weak Canadian dollar. The Canadian dollar was weak on Tuesday as the crude oil prices declined after the coronavirus cases surged in the US to an alarming level and forced many states to re-impose lockdown restrictions. The restrictions meant less use and demand for energy and weighed on crude oil prices that were also considered commodity-linked Loonie. The weak Loonie then eventually pushed the USD/CAD pair higher on Tuesday.

The USD/CAD pair was closed at 1.31037 after placing a high of 1.31164 and a low of 1.30631. After placing losses for two consecutive days, the USD/CAD pair raised on Tuesday amid the declining crude oil prices and weak Canadian dollar. The Canadian dollar was weak on Tuesday as the crude oil prices declined after the coronavirus cases surged in the US to an alarming level and forced many states to re-impose lockdown restrictions. The restrictions meant less use and demand for energy and weighed on crude oil prices that were also considered commodity-linked Loonie. The weak Loonie then eventually pushed the USD/CAD pair higher on Tuesday.

The USD/CAD pair was closed at 1.31037 after placing a high of 1.31164 and a low of 1.30631. After placing losses for two consecutive days, the USD/CAD pair raised on Tuesday amid the declining crude oil prices and weak Canadian dollar. The Canadian dollar was weak on Tuesday as the crude oil prices declined after the coronavirus cases surged in the US to an alarming level and forced many states to re-impose lockdown restrictions. The restrictions meant less use and demand for energy and weighed on crude oil prices that were also considered commodity-linked Loonie. The weak Loonie then eventually pushed the USD/CAD pair higher on Tuesday.

The rising hopes of a coronavirus vaccine after the release of Moderna vaccine promising test results and market speculation about a likely OPEC+ agreement to extend output cuts beyond January 2021 failed to offset fears about the economic consequences of the escalating numbers of infections and deaths in Europe and the US. On the data front, the US dollar remains weak after the release of macroeconomic data on Tuesday. At 18:30 GMT, the Core Retail Sales from the US dropped to 0.2% against the expected 0.6% and weighed on the US dollar that capped further gains in the USD/CAD pair. The Retail Sales in October from the US also fell to 0.3% from the anticipated 0.5% and weighed on the US dollar. The Import Prices in the US for October also fell to -0.1% from the expected 0.2%and weighed on the US dollar.

At 19:00 GMT, the Capacity Utilization Rate from the US surged to 72.8% against the estimated 72.3% and supported the US dollar that provided support to the USD/CAD pair’s bullish moves. The Industrial Production remained flat at 1.1% in October. At 20:00 GMT, the Business Inventories for September raised to 0.7% against the expected 0.5% and weighed on the US dollar. The NAHB Housing Market Index from the US surged to 90 from the expected 85 and supported the US dollar that eventually supported the USD/CAD pair’s gains on Tuesday.

From the Canadian side, the Housing Starts for October were released at 18:13 GMT that dropped to 215K from the forecasted 220K and weighed on the Canadian dollar that eventually pushed the USD/CAD pair higher. At 18:30 GMT, the Foreign Securities Purchases were dropped to 4.46B against the projected 5.0B and weighed on the Canadian dollar that ultimately added strength to the USD/CAD pair. The Wholesale Sales from Canada raised to 0.9% against the forecasted 0.4% and supported the Canadian dollar.


Daily Technical Levels

Support Resistance

1.3070 1.3127

1.3037 1.3151

1.3014 1.3184

Pivot point: 1.3094

The USD/CAD pair is trading over the 1.3060 level, mostly supported by the CPI report. A bearish breakout of the 1.3060 level can drive the selling trend until the 1.2935 area. While on the other hand, the resistance stays at the 1.3173 level today. The MACD and RSI are in support of the selling trend; thus, we may consider taking a selling trade only upon the breakout of the 1.3055 level and buying over the 1.3060 level. Good luck! 

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Forex Market Analysis

Daily F.X. Analysis, November 18 – Top Trade Setups In Forex – Series of Inflation Reports Ahead! 

On the news front, eyes will remain on the low and medium series impacts economic evens from U.K., Eurozone, and Canada. Its the CPI figures which are coming from all three major economies during European and the U.S. sessions. The U.K. and Eurozone Inflation reports are expected to remain neutral, with no major change expected, and these may have a muted impact on the market. However, the Canadian CPI is expected to perform slightly better, surging by 0.2% vs. -0.1% dip during the previous month. It may support Lonnie pairs today.

On the news front, eyes will remain on the low and medium series impacts economic evens from U.K., Eurozone, and Canada. Its the CPI figures which are coming from all three major economies during European and the U.S. sessions. The U.K. and Eurozone Inflation reports are expected to remain neutral, with no major change expected, and these may have a muted impact on the market. However, the Canadian CPI is expected to perform slightly better, surging by 0.2% vs. -0.1% dip during the previous month. It may support Lonnie pairs today.

On the news front, eyes will remain on the low and medium series impacts economic evens from U.K., Eurozone, and Canada. Its the CPI figures which are coming from all three major economies during European and the U.S. sessions. The U.K. and Eurozone Inflation reports are expected to remain neutral, with no major change expected, and these may have a muted impact on the market. However, the Canadian CPI is expected to perform slightly better, surging by 0.2% vs. -0.1% dip during the previous month. It may support Lonnie pairs today.

Economic Events to Watch Today  

 

 

EUR/USD – Daily Analysis

The EUR/USD pair was closed at 1.18605 after placing a high of 1.18935 and a low of 1.18423. The EUR/USD pair continued to move in bullish track for the 4th consecutive day on Tuesday amid the downbeat economic data from the U.S. and broad-based U.S. dollar weakness. The improved risk sentiment in the market continued supporting the EUR/USD pair on Tuesday in the early trading session, which pushed the currency pair towards a fresh weekly high at 1.1894. The risk sentiment was supported by the latest optimism from the vaccine candidates of Pfizer and Moderna. After the latest announcement from Moderna that its vaccine was 94.5% effective in last stage trials, the risk sentiment picked its pace and favored the riskier assets like EUR/USD pair.

However, the currency pair could not remain on the top for long and started losing some of its daily gains on Tuesday amid the risk-off market environment in the second half of the day. The U.S. dollar gained traction in the second half and weighed on the currency pair EUR/USD after the chances for a further stimulus package from Congress declined.

The U.S. Dollar Index was down to an 8-day lowest level of 92.26 in the first half of the day because of the rising number of coronavirus cases and lockdown restrictions in the economy. The increased number of coronavirus cases from the U.S. forced governments to impose restrictive measures to control the spread of the virus, and the chances for quick economic recovery faded that ultimately weighed on the U.S. dollar and helped EUR/USD pair to reach a new weekly high level.

However, the U.S. dollar lost its momentum after the release of its macroeconomic data on Tuesday. At 18:30 GMT, the Core Retail Sales for October dropped to 0.2% from the estimated 0.6% and weighed on the U.S. dollar. In October from the U.S., the Retail Sales also dropped to 0.3% from the expected 0.5% and weighed on the U.S. dollar. The Import Prices in the U.S. for October were declined to -0.1% from the estimated 0.2%and weighed on the U.S. dollar that helped EUR/USD pair to post gains.

At 19:00 GMT, the Capacity Utilization Rate from the U.S. raised to 72.8% against the forecasted 72.3% and supported the U.S. dollar that capped further gains in EUR/USD pair. The Industrial Production remained flat with the anticipations of 1.1% in October. At 20:00 GMT, the Business Inventories for September surged to 0.7% against the projected 0.5% and weighed on the U.S. dollar. The NAHB Housing Market Index from the U.S. surged to 90 from the estimated 85 and supported the U.S. dollar that eventually weighed on the EUR/USD pair and capped further gains.

From the European side, at 14:02 GMT, the Italian Trade Balance raised to 5.85B against the forecasted 4.30B. It supported the single currency Euro that ultimately added gains in the EUR/USD pair.

Furthermore, the European Central Bank President, Christine Lagarde, sounded pessimistic on Tuesday concerning the economic outlook and said that there was very negative news on the second wave of coronavirus in the economy before vaccine news. She expected a massive effect of the second wave of COVID-19 on the European economy into 2021. These comments from Lagarde also kept the pair EUR/USD under pressure on Tuesday.

Daily Technical Levels

Support   Resistance

1.1837      1.1890

1.1814      1.1918

1.1785      1.1942

Pivot Point: 1.1866

EUR/USD– Trading Tip

The EUR/USD is trading with a bullish bias, holding mostly above the upward trendline support level of 1.1850. Closing of candles above the 1.1869 level is likely to drive bullish movement in the EUR/USD pair until the 1.1885 level. The bullish bias remains dominants today as the MACD and 50 periods EMA support a bullish trend. We are already holding a buying trade from yesterday; therefore, you are advised to follow our forex signals page for more updates on the EUR/USD pair. 

GBP/USD – Daily Analysis

The GBP/USD pair was closed at 1.32483 after a high of 1.32724 and a low of 1.31863. The GBP/USD pair raised and continued its bullish track for 3rd consecutive day on Tuesday amid the latest Brexit hopes.

Due to the increased number of COVID-19 cases from across the globe, and the restrictive measures by countries to curb the virus’s spread, the demand for safe-haven currencies increased. In contrast, the riskier currencies like the British Pound remained under pressure.

The Sterling remained supportive in this risk-off mode due to the latest comments from the U.K. chief negotiator, David Frost, that boosted the Brexit deal’s confidence. According to a news report by the U.K. newspaper, The Sun, the previous concerns about the differences in key issues vanished after Britain’s chief negotiator David Frost commented to Boris Johnson that he expects a trade deal signed early next week.

After these comments from David Frost, the GBP/USD pair rallied and started moving upward for the 3rd consecutive day.

Meanwhile, the risk sentiment buoyed by the latest optimism regarding the vaccine development from Moderna also supported the British Pound’s bullish momentum and added further to the gains of the GBP/USD pair on Tuesday. Furthermore, the U.S. dollar weakness also played an important role in pushing the currency pair GBP/USD higher on Tuesday with poor macroeconomic figures. At 18:30 GMT, the Core Retail Sales for October declined to 0.2% from the expected 0.6% and weighed on the U.S. dollar. In October from the U.S., the Retail Sales also fell to 0.3% from the anticipated 0.5% and weighed on the U.S. dollar. The Import Prices in the U.S. for October fell to -0.1% against the projected 0.2%and weighed on the U.S. dollar that added further gains in the GBP/USD pair on Tuesday.

At 19:00 GMT, the Capacity Utilization Rate from the U.S. surged to 72.8% against the anticipated 72.3% and supported the U.S. dollar that capped further gains in GBP/USD pair. The Industrial Production came in line with the projections of 1.1% in October. At 20:00 GMT, the Business Inventories for September increased to 0.7% against the estimated 0.5% and weighed on the U.S. dollar, which added strength to the GBP/USD pair. The NAHB Housing Market Index from the U.S. rose to 90 from the projected 85 and supported the U.S. dollar.

Meanwhile, the governor of Bank of England, Andrew Bailey, said that the development of seemingly effective coronavirus vaccines was a bigger step forward for the economy that could lower uncertainty and get firms to reinvest. He also said that the business investment had been unusually weak since the financial crisis and weighting on productivity. Bailey also said that the changes due to coronavirus would more likely be within the services sector as it can be seen with a focus on digital services over the face to face work taking hold. Moreover, the Bank of England Deputy Governor Dave Ramsden said that positive news about the coronavirus vaccine could help reduce the risks facing Britain’s economy. Still, the central bank was unlikely to revise up its forecasts as a result.

Daily Technical Levels

Support   Resistance

1.3155      1.3236

1.3118      1.3280

1.3073      1.3317

Pivot point: 1.3199

GBP/USD– Trading Tip

The GBP/USD pair is trading bullish at the 1.3279 level, holding over the 1.3227 support level, which is extended by an upward trendline on a 2-hour timeframe. The Cable is likely to face immediate resistance at the 1.3297 area, which will be confirmed if the candle starts closing below this level. However, the bullish breakout of the 1.3297 level can drive further upside movement until the 1.3370 level today. 

USD/JPY – Daily Analysis

The USD/JPY pair was closed at 104.184 after placing a high of 104.598 and a low of 104.069. The pair USD/JPY continued its bearish trend for the 4th consecutive day on Tuesday amid broad-based U.S. dollar weakness and Japanese yen strength due to safe-haven appeal.

On Tuesday, the USD/JPY pair fell below 104.1 level after the safe-haven demand rose due to the increasing number of coronavirus cases and the restrictions from all over the world. Many countries started imposing restrictive measures to control the spread of coronavirus that raised concerns over the global economy’s recovery that lifted the safe-haven appeal. The rising safe-haven demand supported the safe-haven Japanese Yen and weighed on the USD/JPY pair on Tuesday.

The safe-haven demand deteriorated a little after the latest optimism regarding the vaccine development from Moderna that gave an efficacy rate of 94.5%. However, there was still a long way to go before the vaccine can be delivered to everyone. According to Federal Reserve Vice Chairman Richard Clarida, the chances for the U.S. economic recovery have been improved due to candidates’ successful test from both Moderna and Pfizer Inc.

On the U.S. front, the U.S. dollar was weak due to the poor macroeconomic data on Tuesday. At 18:30 GMT, the Core Retail Sales for October fell to 0.2% from the anticipated 0.6% and weighed on the U.S. dollar that added pressure on the USD/JPY pair. In October from the U.S., the Retail Sales also declined to 0.3% from the forecasted 0.5% and weighed on the U.S. dollar that weighed on USD/JPY pair. The Import Prices in the U.S. for October were declined to -0.1% from the estimated 0.2%and weighed on the U.S. dollar added pressure on the USD/JPY pair.

At 19:00 GMT, the Capacity Utilization Rate from the U.S. surged to 72.8% against the estimated 72.3% and supported the U.S. dollar that capped further losses in the USD/JPY pair. The Industrial Production came in line with the anticipations of 1.1% in October. At 20:00 GMT, the Business Inventories for September rose to 0.7% against the projected 0.5% and weighed on the U.S. dollar that added pressure on the USD/JPY pair. The NAHB Housing Market Index from the U.S. surged to 90 from the expected 85 and supported the U.S. dollar that eventually capped further losses in the USD/JPY pair.

Moreover, the Federal Reserve Chairman, Jerome Powell, said on Tuesday that as the coronavirus cases were increasing to an alarming rate, it was the time when there was a bigger need for further coronavirus relief from Congress. Powell also noted that the recent announcements from Pfizer and Moderna were certainly good news in the medium term; however, major challenges and uncertainties remain in the near term.

Powell also said that Congress should deliver direct financial support targeted to specific groups instead of using the Federal Reserve’s lending tools. Powell’s comments also weighed on the USD/JPY pair as the need for further support from the Fed and Congress weighed on the U.S. dollar.

Daily Technical Levels

Support   Resistance

103.95      104.51

103.73      104.85

103.39      105.08

Pivot point: 104.29

USD/JPY – Trading Tips

The USD/JPY extends its bearish trend below the 104.430 level, falling from the 104.850 support area. On the lower side, the USD/JPY pair is likely to find support at the 103.800 level, and violation of this level can also extend further selling bias until 103.227. On the higher side, the USD/JPY safe-haven pair may find resistance at 104.400 and may help us capture a selling trades below this level as the MACD and RSI support the selling trend today. Good luck! 

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Forex Signals

USD/CAD Choppy Sessions Continues – Traders Brace for a Breakout Setup!

The USD/CAD pair was closed at 1.30730 after placing a high of 1.31379 and a low of 1.30652. The risk perceived Canadian Dollar received another vaccine driven boost on Monday morning after another drug maker, Moderna announced positive news about their vaccine.

The USD/CAD pair was closed at 1.30730 after placing a high of 1.31379 and a low of 1.30652. The risk perceived Canadian Dollar received another vaccine driven boost on Monday morning after another drug maker, Moderna announced positive news about their vaccine.

The USD/CAD pair was closed at 1.30730 after placing a high of 1.31379 and a low of 1.30652. The risk perceived Canadian Dollar received another vaccine driven boost on Monday morning after another drug maker, Moderna, announced positive news about their vaccine.
After Pfizer and BioNtech, Moderna became the second company to announce that its vaccine has been proved 94.5% effective in phase-3 clinical trials. The market mood improved after this news as hopes raised that their vaccine might be better than Pfizer’s vaccine as it was 5% more effective in results.

The efficacy rate of Moderna’s vaccine was 94.5% against Pfizer’s & BioNtech’s 90%. The second thing that makes Moderna’s vaccine better was that it can be stored at refrigerator temperature while Pfizer’s vaccine must be kept frozen, which presents a key distribution challenge.
After this news, the risk sentiment improved in the market and supported the Canadian Dollar that ultimately weighed on the USD/CAD pair and dragged the prices of the pair on the downside.

Furthermore, the US dollar was also on the back foot as the rising number of coronavirus cases in the US was weighing on the local currency. The US has reported more than 11 million cases of coronavirus so far that raised the need for the further stimulus package, and weighed on the US dollar that ultimately added in the losses of the USD/CAD pair on Monday.
Meanwhile, the WTI Crude Oil prices raised above the $42 level on Monday on the back of rising optimism related to the vaccine and supported the commodity-linked currency Loonie that ultimately added further pressure on the USD/CAD pair.

Moreover, on the data front, at 18:30 GMT, the Manufacturing Sales from Canada for September dropped to 1.5% against the expected 1.7% and weighed on the Canadian Dollar that capped further losses in the USD/CAD pair on Monday. On the US side, the Empire State Manufacturing Index for November dropped to 6.3 against the expected 13.8 and weighed on the US dollar that added further losses in the USD/CAD pair on Monday.



Daily Technical Levels

Support   Resistance
1.3043      1.3123
1.3013      1.3173
1.2963      1.3203
Pivot point: 1.3093

The USD/CAD pair is trading with a neutral bias, holding below an immediate resistance level of 1.3100. On the 4 hour timeframe, the USD/CAD pair is facing resistance by the downward trendline, and below this, there are strong odds of selling bias until the 1.3028 level. Further selling bias can extend movement until the 1.2934 level as the MACD is also suggesting selling bias. Thus, we should consider selling below the 1.3100 level today. Good luck!

Categories
Forex Market Analysis

Daily F.X. Analysis, November 17 – Top Trade Setups In Forex – Retail Sales in Focus! 

TheThe eyes will remain on the retail sales, Capacity Utilization Rate, and Industrial Production from the United States on the news side on the news side. Retail sales are expected to drop, and they may place bearish pressure on the U.S. dollar. At the same time, the Capacity Utilization Rate and Industrial Production are expected to perform better.

TheThe eyes will remain on the retail sales, Capacity Utilization Rate, and Industrial Production from the United States on the news side on the news side. Retail sales are expected to drop, and they may place bearish pressure on the U.S. dollar. At the same time, the Capacity Utilization Rate and Industrial Production are expected to perform better.

TheThe eyes will remain on the retail sales, Capacity Utilization Rate, and Industrial Production from the United States on the news side on the news side. Retail sales are expected to drop, and they may place bearish pressure on the U.S. dollar. At the same time, the Capacity Utilization Rate and Industrial Production are expected to perform better.

Economic Events to Watch Today  

 

EUR/USD – Daily Analysis

The EUR/USD pair was closed at 1.18537 after placing a high of 1.18686 and a low of 1.18139. EUR/USD pair remained on positive foot for the 3rd consecutive day and posted gains on Monday. In the early trading session, risk sentiment started to dominate financial markets after Moderna announced that its COVID vaccine candidate showed 94.5% effectiveness in the latest trials. However, the single currency Euro found it hard to take advantage of the improved market mood since the European Central Bank made it clear that they will act in the upcoming December meeting.

While speaking at an event on Monday, the European Central Bank and policymaker Pablo Hernandez de Cos said that foreign exchange moves between the USD and the EUR had reached a concerning phase. De Cos further said that the monetary aid should be increased to avoid market destruction, given the worsening outlook for economic activity and inflation.

These comments from ECB policymaker, along with the hopes for further easing from ECB next month, exerted high pressure on the single currency that capped further gains in EUR/USD pair on Monday. However, the currency pair remained positive for the day, even though the European economy was hit hard by the coronavirus pandemic.

According to Johns Hopkins University, more than 54 million people had been infected by COVID-19 globally. In Europe, governments scrambled amid an alarming rise in numbers as France’s health authorities reported 9406 new cases on Monday. Germany postponed its decision on further lockdown measures until next week.

The German Chancellor Angela Merkel said that she wanted to impose further restrictions immediately, but she did not have a majority, so the decision was postponed until November 25. The tightening of lockdown measures was something nobody wanted, and that helped the single currency Euro and supported it. Meanwhile, Sweden placed a nationwide limit of eight people for all gatherings to slow down coronavirus spread. The limit will take effect from November 24 and will last for four weeks.

Despite all these tensions regarding the coronavirus pandemic, the single currency Euro struggled to hold near its best levels against its rival, the U.S. dollar, on Monday. The higher market sentiment also supported Euro amid the coronavirus vaccine news.

On the data front, the Empire State Manufacturing Index for November declined to 6.3 against the forecasted 13.8 and weighed on the U.S. dollar that added gains in EUR/USD pair on Monday. Other than macroeconomic data, the U.S. dollar was already weak in the market due to the rising number of coronavirus cases in the U.S. The weak U.S. dollar added further to the upward movement of the EUR/USD pair.

Daily   Technical Levels

Support Resistance

1.1821      1.1877

1.1789      1.1901

1.1765      1.1932

Pivot point: 1.1845

EUR/USD– Trading Tip

The EUR/USD is trading sideways, holding mostly below the double top resistance level of 1.1860 level. Still, recently it has formed a Doji pattern followed by bullish candles, suggesting that the buyers are exhausted, and sellers may enter into the market soon. Therefore, we can expect the EUR/USD price to trade bearish until the 1.1838 level, the support level extended by an upward trendline on the hourly timeframe. Bullish crossover of 1.1865 level can also trigger buying until 1.1910.

GBP/USD – Daily Analysis

The GBP/USD pair was closed at 1.31999 after placing a high of 1.32422 and a low of 1.31654. The British Pound was high on Monday as the Brexit talks were resumed between the E.U. and the U.K.

There were increasing signs that little progress could be made in this week’s trade talks. The Brexit optimism with the resumed trade talks drove the British Pound higher on Monday that ultimately pushed the GBP/USD pair on the upside.

However, the pair failed to remain there for long as some investors started giving warning that a deal between the E.U. and the U.K. was unlikely this week in the wake of turmoil in the U.K. government. The two of Prime Minister Boris Johnson’s pro-Brexit advisors, Cummings and Cain, were ousted last week. Moreover, the prospects of failure to reach a deal were fading away with the hopes that if an agreement would not be reached, the deadline could stretch into the final weeks before the end of the transition period on December 31.

The negotiations are potentially stretching into December as the deadline of November 19 was close, and the differences in both sides were larger. Ireland’s foreign minister initially warned that a deal f this size is difficult to reach within a week or ten days, although the talks could continue for a further two weeks. The Brexit deal has left to solve 3 key sticking points, including the level playing field, governance, and fisheries. The control over fisheries has been highlighted as one of the main hindrances, as French President Emmanuel Macron has been reluctant to give Britain’s demand for full sovereignty over access to its waters amid concerns French fishers could lose out.

However, the GBP/USD pair posted gains as the UK PM Boris Johnson’s office said in a statement that they were confident that the U.K. would prosper if they fail to reach a trade deal with the E.U. Apart from Brexit, the GBP/USD pair’s gains were lost a bit after the UK PM Johnson self-isolated himself after having close contact with a coronavirus case despite without symptoms and being well. Johnson has already contracted coronavirus case back in April.

The number of coronavirus cases in the U.K. stayed above 20,000 per day despite the ongoing restrictive measures. Meanwhile, a medical adviser in the U.K. said that the government would have to consider strengthening the three-tier system of restrictions used to control coronavirus spread when the full lockdown in England ends. These tensions kept the GBP/USD pair under pressure on Monday and kept the gains limited.

Meanwhile, a U.S. drugmaker Moderna also announced that its vaccine was proven 94.5% effective in preventing the coronavirus that raised risk sentiment in the market and supported the risk perceived British Pound and added in the gains of GBP/USD pair on Monday. Furthermore, Britain reported that it had secured about five million doses of an experimental coronavirus vaccine developed by Moderna after reporting positive trial results. The health minister Matt Hancock from the U.K. said that the earliest doses are expected for delivery in Spring.

On the data front, the Rightmove HPI from Great Britain was released on Monday at 05:01 GMT, which came in as -0.5% in November against October’s 1.1%. From the U.S. side, the Empire State Manufacturing Index was declined to 6.3 against the forecasted 13.8 and weighed on the U.S. dollar and added strength to GBP/USD pair on Monday.

Daily   Technical Levels

Support Resistance

1.3155      1.3236

1.3118      1.3280

1.3073      1.3317

Pivot point: 1.3199

GBP/USD– Trading Tip

The GBP/USD pair is trading at 1.3208 level, holding over 1.3189 level, which is extended by an upward trendline on a 2-hour timeframe. The Cable has recently crossed over the resistance level of the 1.3185 resistance level as the candle’s closing above this level may drive further upward movement in the market. The MACD and RSI support buying trend, and considering the trendline support and oversold indicators, it is worth giving a buy shot to GBP/USD pair. Let’s consider buying over 1.3160 level today. 

USD/JPY – Daily Analysis

The USD/JPY pair was closed at 104.565 after placing a high of 105.135 and a low of 104.361. The pair followed its previous day’s bearish trend and dropped for 3rd consecutive day on Monday. The USD/JPY pair surged to its previous daily high level on Monday in early trading hours after the news from another drug maker came in about their vaccine’s efficiency. The Moderna reported that its vaccine’s last stage clinical trials were 94.5% effective. After this news, Moderna became the second company to announce its results from last stage clinical trials.

This news raised the risk sentiment in the market and weighed on the safe-haven Japanese Yen that kept the USD/JPY pair higher at the beginning of the Asian session. However, the gains started to fade as the market participant realized the difficulty of vaccine availability and its usage. The vaccine requires -70C temperature to be stored to be transported, that is not an easy task. Furthermore, there was also a lack of information regarding the time duration for the immunity induced through the vaccine. This can only be ascertained after the vaccine becomes available to the general public for usage.

These uncertainties raised the market’s safe-haven status and supported the Japanese Yen that ultimately weighed on the USD/JPY pair and forced it to lose some of its earlier daily gains. Meanwhile, on the U.S. front, the U.S. dollar was also weak on the day as the rising number of coronavirus cases raised fears for further restrictions and raised the hopes for further stimulus aid from the government.

The global cases of coronavirus reached 54 million, out of which 11 million were reported from the United States, according to the Johns Hopkins University. The rising number of coronavirus in the United States raised hopes that the Fed will announce further easing or a larger monetary aid to support the economy after the victory of Joe Biden in the U.S. presidential election this month.

Biden always favors a larger stimulus package to provide strength to the economy through the coronavirus crisis. With him becoming the U.S. 46th President, the chances for a massive stimulus bill for the U.S. economy have increased, which started to weigh on the U.S. dollar and ultimately dragged the USD/JPY pair’s prices on the downside.

On the data front, the Prelim GDP Price Index from Japan was released at 04:50 GMT that raised to 1.1% in the 3rd quarter against the expected 1.0% and supported the Japanese Yen that ultimately added further losses in the USD.JPY pair on Monday. The Prelim GDP for the 3rd Quarter from Japan also raised to 5.0% against the projected 4.4% and supported the Japanese Yen that dragged the USD.JPY pair on the downside. On the U.S. front, the Empire State Manufacturing Index in November dropped to 6.3 from the projected 13.8 and weighed on the U.S. dollar that dragged the USD/JPY pair further on the downside.

Daily   Technical Levels

Support Resistance

104.24      105.02

103.91      105.47

103.46      105.81

Pivot point: 104.69

USD/JPY – Trading Tips

The USD/JPY is with a bearish bias at the 104.400 level, falling from the 104.850 support area. On the lower side, the USD/JPY pair is likely to find support at the 104.141 level, and violation of this level can also extend further selling boas until 103.500. On the higher side, the USD/JPY safe-haven pair may find resistance at 104.845 and may help us capture a selling trades below this level as the MACD and RSI support the selling trend today. Good luck! 

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Forex Signals

EUR/USD Violates Triple Top – Upward Trendline Supports!

The EUR/USD currency pair managed to extend its previous 2-day gaining streak and remained bullish around near above mid-1.1800 level, mainly due to the broad-based U.S. dollar selling bias, triggered by the risk-on market sentiment, which keeps the currency pair higher. Hence the market trading sentiment was being supported by the coronavirus vaccine-led enthusiasm. 

The EUR/USD currency pair managed to extend its previous 2-day gaining streak and remained bullish around near above mid-1.1800 level, mainly due to the broad-based U.S. dollar selling bias, triggered by the risk-on market sentiment, which keeps the currency pair higher. Hence the market trading sentiment was being supported by the coronavirus vaccine-led enthusiasm. 

The EUR/USD currency pair managed to extend its previous 2-day gaining streak and remained bullish around near above mid-1.1800 level, mainly due to the broad-based U.S. dollar selling bias, triggered by the risk-on market sentiment, which keeps the currency pair higher. Hence the market trading sentiment was being supported by the coronavirus vaccine-led enthusiasm. 

On the contrary, the buying interest around the currency pair was capped by the intensifying virus fugues in Europe, which raised doubts over the Eurozone economic recovery and became the key factor that has been capped further upside in the currency pair. At the moment, the EUR/USD currency pair is currently trading at 1.1849 and consolidating in the range between the 1.1834 – 1.1854.

The EUR/USD traded bullish at 1.1850 level, but recently it has formed a Doji pattern followed by bullish candles, suggesting that the buyers are exhausted, and sellers may enter the market soon. Therefore, we can expect the EUR/USD price to trade bearish until the 1.1838 level, the support level extended by an upward trendline on the hourly timeframe. Bullish crossover of 1.1856 level can also trigger buying until 1.1880.


 

Entry Price – Buy 1.18588

Stop Loss – 1.18188

Take Profit – 1.18988

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.

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Forex Signals

AUD/USD Upward Channel Supports – Brace for Buying 

During Monday’s early European Asian trading session, the AUD/USD currency pair succeeded to extend its previous session gains and caught some sharp bids around above 0.7300 level mainly due to the risk-on market sentiment, which tend to underpin the perceived risk currency Australian dollar and contributes to the currency pair gains. Hence, the market trading sentiment was being supported by optimism over a potential vaccine for the highly infectious coronavirus disease. Apart from this, the market trading sentiment was further bolstered by China and Japan’s positive data, which suggests gradual recoveries in global economics. This, in turn, provided an additional boost to the currency pair.

During Monday’s early European Asian trading session, the AUD/USD currency pair succeeded to extend its previous session gains and caught some sharp bids around above 0.7300 level mainly due to the risk-on market sentiment, which tend to underpin the perceived risk currency Australian dollar and contributes to the currency pair gains. Hence, the market trading sentiment was being supported by optimism over a potential vaccine for the highly infectious coronavirus disease. Apart from this, the market trading sentiment was further bolstered by China and Japan’s positive data, which suggests gradual recoveries in global economics. This, in turn, provided an additional boost to the currency pair.

During Monday’s early European Asian trading session, the AUD/USD currency pair succeeded to extend its previous session gains and caught some sharp bids around above 0.7300 level mainly due to the risk-on market sentiment, which tend to underpin the perceived risk currency Australian dollar and contributes to the currency pair gains. Hence, the market trading sentiment was being supported by optimism over a potential vaccine for the highly infectious coronavirus disease. Apart from this, the market trading sentiment was further bolstered by China and Japan’s positive data, which suggests gradual recoveries in global economics. This, in turn, provided an additional boost to the currency pair.

Across the pond, the bullish sentiment around the currency pair was further improved after Governor Lowe dimmed negative rates expectations. In addition to this, the broad-based U.S. dollar bearish bias, triggered by the upbeat market sentiment, has also played its major role in supporting the currency pair. Moreover, the losses in the U.S. dollar were further bolstered by the intensifying doubts over the U.S. economic recovery amid rising coronavirus cases in the U.S. Conversely, the long-lasting coronavirus woes in the U.S. and Europe keep challenging the market risk-on sentiment, which becomes the key factor that kept the lid on any additional gains in the currency pair. The AUD/USD currency pair is currently trading at 0.7293 and consolidating in the range between 0.7265 – 0.7310.

Despite the lingering doubts over the global economic recovery from intensifying coronavirus (COVID-19) woes in the U.S. and Europe, the market trading sentiment has remained supportive by the optimism over a potential vaccine for the highly contagious coronavirus disease. Although, the hopes of potential vaccine were further boosted after the vaccine producers showed readiness to release data on their vaccine candidates shortly. Meanwhile, China and Japan’s positive data, which suggests gradual recoveries in global economics, also boosted the market trading tone. On the data front, the Industrial production in China’s economy surged 6.9% year-on-year for the 2nd-straight month in October, surpassing the expected gain of 6.5%. Moreover, the Fixed Asset Investment grew 1.8% year-on-year in October against 1.6% expected and 0.8% previous. At home, Japan’s Q3 Gross Domestic Product preliminary result came in at 5.0% QoQ vs. against 4.4%.

As in result, the S&P 500 futures managed to extend its previous session positive momentum and remained bullish throughout the European session, which tends to undermine the demand for the safe-haven U.S. dollar and extended support to the currency pair. At the USD front, the broad-based U.S. dollar failed to erase its previous session losses and remained under pressure on the day, mainly due to the marker risk-on tone. Apart from this, coronavirus’s resurgence keeps fueling the fears that the U.S. economic recovery could be halt, which also keeps the greenback under pressure. However, the U.S. dollar losses could be considered the major factor that kept the currency pair higher. Meantime, the U.S. Dollar Index that tracks the greenback against a bucket of other currencies dropped by 0.14% to 92.588 by 10:05 PM ET (2:05 AM GMT).

In addition to this, the sentiment around the currency pair was improved further after the RBA Governor Lowe said that negative rates are still unlikely in Australia, which instantly lend support to the Australian dollar and contributes to the currency pair gains. H further added that “Would only apply negative rates if all the world’s major banks had negative rates.”

On the contrary, the intensifying coronavirus woes in the U.S. and Europe and intensifying lockdowns restrictions in Europe keep challenging the upbeat market sentiment, which becomes the key factor that kept the lid on any additional gains in the currency pair. As per the latest report, there were over 54 million cases across the globe and over 1.3 million deaths as of Nov. 16. At the same time, there are approximately 11 million cases in the U.S. separately.

Moving ahead, the market traders will keep their eyes on the economic calendar, which highlights the RBA Gov Lowe Speaks and Monetary Policy Meeting Minutes. In the meantime, the updates surrounding the Brexit trade talks and the U.S. stimulus package could not lose their importance on the day.


Daily Support and Resistance

S1 0.7166

S2 0.7211

S3 0.7241

Pivot Point 0.7257

R1 0.7287

R2 0.7303

R3 0.7349

The technical side of the AUD/USD pair continues to remain the same on the back of lack of economic events; however, it continues to trade bullish, in between 0.7300 -0.7286 level. On the higher side, the AUD/USD is likely to remain supported over the 0.7286 level. On the higher side, the resistance continues to hold around the 0.7298 mark. A bearish breakout of 0.7286 level can extend the selling trend until 0.7276 and 0.7260 level today; let’s keep an eye on the 0.7286 level. Good luck! 

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Forex Market Analysis

Daily F.X. Analysis, November 16 – Top Trade Setups In Forex – ECB President Lagarde Speaks!

The eyes will remain on the ECB Financial Stability Review, and President Lagarde Speaks on the news front. The ECB Financial Stability report is an assessment of conditions in the financial system and potential risks to financial stability – the evidence on strains and imbalances can provide insight into monetary policy’s future. Therefore, traders keep a closer eye on reports to predict policy decisions to cope with Covid19 driven economic slowdown.

The eyes will remain on the ECB Financial Stability Review, and President Lagarde Speaks on the news front. The ECB Financial Stability report is an assessment of conditions in the financial system and potential risks to financial stability – the evidence on strains and imbalances can provide insight into monetary policy’s future. Therefore, traders keep a closer eye on reports to predict policy decisions to cope with Covid19 driven economic slowdown.

The eyes will remain on the ECB Financial Stability Review, and President Lagarde Speaks on the news front. The ECB Financial Stability report is an assessment of conditions in the financial system and potential risks to financial stability – the evidence on strains and imbalances can provide insight into monetary policy’s future. Therefore, traders keep a closer eye on reports to predict policy decisions to cope with Covid19 driven economic slowdown.

Economic Events to Watch Today  

 

EUR/USD – Daily Analysis

The EUR/USD currency pair managed to extend its previous 2-day gaining streak and remained bullish around near above mid-1.1800 level, mainly due to the broad-based U.S. dollar selling bias, triggered by the risk-on market sentiment, which keeps the currency pair higher. Hence the market trading sentiment was being supported by the coronavirus vaccine-led enthusiasm. 

On the contrary, the buying interest around the currency pair was capped by the intensifying virus fugues in Europe, which raised doubts over the Eurozone economic recovery and became the key factor that has been capped further upside in the currency pair. At the moment, the EUR/USD currency pair is currently trading at 1.1849 and consolidating in the range between the 1.1834 – 1.1854.

Despite the doubts over the global economic recovery from intensifying coronavirus (COVID-19) woes in the U.S. and Europe, the market trading sentiment flashing green at the start of the week’s trading and remained supportive by the optimism over a potential vaccine for the highly infectious coronavirus disease. After cheering the U.S. pharma giant Pfizer’s recent declaration of its coronavirus vaccine’s positive results, the market traders expect the biotechnology company Moderna to follow suit this week. This, in turn, the futures tied to the S&P 500, Wall Street’s benchmark index, is currently trading 0.8% higher on the day and the major Asian indices are up at approximately 1% each. 

At the USD front, the broad-based U.S. dollar failed to gain any positive traction on the day as doubts persist over the global 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 weakening the safe-haven U.S. dollar. However, the U.S. dollar losses became the key factor that kept the currency pair’s higher. Meantime, the U.S. Dollar Index that tracks the greenback against a bucket of other currencies dropped by 0.14% to 92.588 by 10:05 PM ET (2:05 AM GMT).

On the contrary, the bullish bias around the EUR/USD currency pair was capped by the on-going doubts over the Eurozone economic recovery amid intensifying coronavirus (COVID-19) worries in the U.S. and Europe. The rising coronavirus (COVID-19) worries urged some European countries, such as the U.K. and France, to imposing restrictive measures such as lockdowns and curfews. As in result, the vehicle traffic in both Europe and the U.S. slowing sharply. As per the latest report, there were over 54 million cases across the globe and over 1.3 million deaths as of November 16.

Looking ahead, the market traders will keep their eyes on updates surrounding the U.S. stimulus package. In the meantime, the risk catalyst like geopolitics and the virus woes, not to forget the Brexit, could not lose their importance. Apart from this, the RBA Gov Lowe Speaks and Monetary Policy Meeting Minutes will also be key to watch.

Daily Technical Levels

Support   Resistance

1.1738      1.1827

1.1697      1.1875

1.1648      1.1917

Pivot point: 1.1786

EUR/USD– Trading Tip

The EUR/USD traded bullish at 1.1850 level, but recently it has formed a Doji pattern followed by bullish candles, suggesting that the buyers are exhausted, and sellers may enter the market soon. Therefore, we can expect the EUR/USD price to trade bearish until the 1.1838 level, the support level extended by an upward trendline on the hourly timeframe. Bullish crossover of 1.1856 level can also trigger buying until 1.1880.

GBP/USD – Daily Analysis

The GBP/USD currency pair managed to extend its overnight winning streak and refreshed 4-day high around above 1.3200 level as the currency pair buyers get a warm welcome after returning from the weekend. However, the bullish tone around the currency pair could be attributed to the broad-based U.S. dollar weakness. The U.S. dollar was being pressured by the market risk-on sentiment, undermining the safe-haven U.S. dollar and contributing to the currency pair gains. 

Whereby, the market trading sentiment has remained supportive by the renewed optimism over a possible vaccine for the highly infectious coronavirus disease, which lends some support to the higher-yielding Pound and contributes to the currency pair gains. On the contrary, the Brexit woes and the virus concerns could stop the currency pair’s on-going recovery moves. At this particular time, the GBP/USD currency pair is currently trading at 1.3234 and consolidating in the range between 1.3174 – 1.3235.

Despite the lingering doubts about global economic recovery and the intensifying tension between the world’s two biggest economies, the market players continue to cheering the optimism over a possible vaccine for the highly infectious coronavirus disease. In the meantime, the release of an above-forecast China factory data, which raised hopes of China’s economic growth, has also played its major role in underpinning the market trading sentiment. However, the risk-on mood slightly overshadowed the concerns over virus cases and restrictions in the U.S. 

On the data front, the Industrial production in China’s economy surged 6.9% year-on-year for the 2nd-straight month in October, surpassing the expected gain of 6.5%. Moreover, the Fixed Asset Investment grew 1.8% year-on-year in October against 1.6% expected and 0.8% previous. 

As a result, the higher-yielding British Pound took support from the risk-rally by ignoring the Brexit issue’s latest negative developments. As per the latest report, the discussions over a possible trade deal between the U.K. and E.U. are expected to extend beyond this week.

At the USD front, the broad-based U.S. dollar failed to stop its previous losses and remain depressed on the day, mainly due to the risk-on market sentiment. Moreover, the losses in the U.S. dollar could also be attributed to the on-going doubts over the global economic recovery in the wake of intensifying coronavirus (COVID-19) worries in the U.S., which tend to undermine the American currency. However, the losses in the U.S. dollar kept the currency pair higher. Meantime, the U.S. Dollar Index that tracks the greenback against a bucket of other currencies dropped by 0.14% to 92.588 by 10:05 PM ET (2:05 AM GMT).

 

On the negative side, the latest negative developments surrounding the Brexit issue and the rising number of coronavirus in the U.K. could be considered the leading factor that kept the lid on a y additional gains in the currency pair. As per the latest report, Irish Foreign Minister Simon Coveney clearly warned that we would not get a deal if the U.K. imposes Internal Market Bill. In the meantime, the U.K. Environment Secretary George Eustice stated that both sides’ agreement remains intact, keeping the hopes alive as differences continue to persist over fisheries and state aid.

Looking ahead, the market traders will keep their eyes on updates surrounding the U.S. stimulus package. In the meantime, the risk catalyst like geopolitics and the virus woes, not to forget the Brexit, could not lose their importance. Apart from this, the RBA Gov Lowe Speaks and Monetary Policy Meeting Minutes will also be key to watch.

Daily Technical Levels

Support   Resistance

1.3170      1.3291

1.3119      1.3361

1.3050      1.3412

Pivot point; 1.3240

GBP/USD– Trading Tip

The GBP/USD pair is trading at 1.3208 level, holding over 1.3189 level, which is extended by an upward trendline on a 2-hour timeframe. The Cable has recently crossed over the resistance level of the 1.3185 resistance level as the candle’s closing above this level may drive further upward movement in the market. The MACD and RSI support buying trend, and considering the trendline support and oversold indicators, it is worth giving a buy shot to GBP/USD pair. Let’s consider buying over 1.3160 level today. 

USD/JPY – Daily Analysis

The USD/JPY pair was closed at 105.121 after placing a high of 105.476 and a low of 105.068. The pair USD/JPY reversed its direction and started falling on Thursday amid the broad-based U.S. dollar weakness. The decreased risk sentiment due to the escalated second wave of the coronavirus in the United States weighed on the USD/JPY pair on Thursday. The investors started to fear that governments might respond by imposing the lockdown restrictions that will slow down the economic recovery.

The United States reported about 140,453 cases on a single day on Wednesday, and it was the ninth straight day of above 100,000 cases. According to Johns Hopkins University, about 10.4 million Americans have been infected by the coronavirus so far, and nearly 242,000 have died from it. These concerns raised the safe-haven appeal and supported the Japanese Yen that ultimately weighed on the USD/JPY.

On the data front, at 04:50 GMT, the Core Machinery Orders from Japan for September came in as -4.4% against the expected -1.1% and weighed on the Japanese Yen. The Purchasing Price Index (PPI) from Japan remained flat with the expectations of -2.1% for the year. At 09:30 GMT, the Tertiary Industry Activity for September raised to 1.8% against the anticipated 1.3% and supported the Japanese Yen and weighed on the USD/JPY pair.

The Federal Reserve Chairman Jerome Powell cautioned that the U.S. economy would further need support from Congress and the central bank even if a coronavirus vaccine becomes available by the end of the year. He said that despite the vaccine’s availability, there still will be millions of people left who have lost their job to the pandemic, and they will still struggle to find work as the economy will attempt to recover from the economic downturn.

He added that in the Federal Reserve’s eyes, the terrible rise in COVID-19 cases across the country was the “main risk” for the U.S. economy. He added that the coronavirus’s third wave had forced several states to re-impose lockdown restrictions and caused people to lose confidence. He stressed that the economy would not fully recover until people are confident that it was safe to resume activities involving the crowd. These comments from Powell also weighed on the U.S. dollar and added in the losses of the USD/JPY pair on Thursday.

Daily Technical Levels

Support   Resistance

103.82       106.29

102.27       107.21

101.35       108.75

Pivot point: 104.74

USD/JPY – Trading Tips

The USD/JPY is with a bearish bias at the 104.400 level, falling from the 104.850 support area. On the lower side, the USD/JPY pair is likely to find support at the 104.141 level, and violation of this level can also extend further selling boas until 103.500. On the higher side, the USD/JPY safe-haven pair may find resistance at 104.845 and may help us capture a selling trades below this level as the MACD and RSI are supporting the selling trend today. Good luck! 

Categories
Forex Signals

EUR/GBP Closes Bearish Setup – Quick Signal Update


Entry Price – Buy 0.8973
Stop Loss – 0.9013
Take Profit – 0.8933
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

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Forex Signals

USD/CAD Extends Overnight Bearish Moves – Weaker U.S. Dollar in Play! 

During Friday’s Early Asian trading session, the USD/CAD currency pair extended its overnight losses and remain bearish around the 1.3135 level, mainly due to the broad-based U.S. dollar weakness. Hence, the broad-based U.S. dollar was being pressured by the doubts persist over the global economic recovery from COVID-19. This, in turn, undermined the greenback and contributed to the currency pair losses. Moreover, the political uncertainty in the U.S. also weighs on the already weaker U.S. dollar, which adds further burden around the currency pair.

During Friday’s Early Asian trading session, the USD/CAD currency pair extended its overnight losses and remain bearish around the 1.3135 level, mainly due to the broad-based U.S. dollar weakness. Hence, the broad-based U.S. dollar was being pressured by the doubts persist over the global economic recovery from COVID-19. This, in turn, undermined the greenback and contributed to the currency pair losses. Moreover, the political uncertainty in the U.S. also weighs on the already weaker U.S. dollar, which adds further burden around the currency pair.

During Friday’s Early Asian trading session, the USD/CAD currency pair extended its overnight losses and remain bearish around the 1.3135 level, mainly due to the broad-based U.S. dollar weakness. Hence, the broad-based U.S. dollar was being pressured by the doubts persist over the global economic recovery from COVID-19. This, in turn, undermined the greenback and contributed to the currency pair losses. Moreover, the political uncertainty in the U.S. also weighs on the already weaker U.S. dollar, which adds further burden around the currency pair.

On the contrary, the decline in the crude oil prices tends to undermine the commodity-linked currency the Loonie, which turned out to be one of the leading factors that kept the lid on any additional losses in the currency pair contributes to the currency pair’s losses. However, the crude oil prices were being pressured by the worsening coronavirus (COVID-19) conditions in Europe and the U.K. Apart from this, the crude oil prices’ losses were further bolstered after the EIA’s downbeat inventory numbers, which showed a sharp build-up in U.S. crude oil stocks. As of writing, the USD/CAD currency pair is currently trading at 1.3139 and consolidating in the range between 1.3133 – 1.3147.

Despite the optimism over the potential vaccine for the highly infectious coronavirus disease, the market trading sentiment failed to stop its previous negative performance and remain depressed during the early Asian session on the day, possibly due to the combination of factors. Be it the worrisome headlines concerning Brexit or the tension between the US-China, not to forget the coronavirus issues in the U.S. and Europe, everything has been weighing on the market trading sentiment; as per the latest report, the U.S. sanctions 4- Chinese diplomats over the Hong Kong crackdown. Apart from this, the Trump administration shows a willingness to limit investments in Chinese companies, fueling the already intensified tussle. 

At the coronavirus front, the U.S. coronavirus cases touched a new daily record high, with 140,543 reported. Almost 10.4 million peoples in the U.S. have been infected by the Covid-19 so far. While nearly 242,000 have died so far, according to the Johns Hopkins University report. As in result, New York has announced a 10 p.m. curfew on bars, gyms, and restaurants to curb the spread. Afterward, Chicago also followed the footsteps of New York and restricted activities.

In addition to the U.S., Europe also imposed lockdown again last week, threatening the oil outlook and undermining oil prices. It is worth recalling that Sweden declared a partial lockdown shutting down bars and restaurants for the 1st-time since the virus started. Thus, the back to back lockdowns restrictions keep harming the crude oil demand.

Despite the risk-off market mood, the broad-based U.S. dollar remained depressed. The investors continue to sell U.S. dollars on the back of optimism over the potential vaccine for the highly infectious coronavirus disease. Moreover, the losses in the U.S. dollar could also be associated with political uncertainty in the U.S. However, the U.S. dollar losses could be considered the major factor that kept the currency pair under pressure. Meanwhile, the U.S. Dollar Index that tracks the greenback against a bucket of other currencies dropped to 92.957.

The crude oil prices dropped further after the U.S. Energy Information Administration reported that crude oil inventories across the country climbed sharply by 4.3 million barrels last week, against expectations for a draw of 913,000 barrels. Moreover, the decline in crude oil prices was further bolstered after Libya’s oil production increased, which eventually raised fears of oversupply and undermined the crude oil prices. Hence, the declines in oil prices undermined demand for the commodity-linked currency the Loonie and became the key factor that helped the currency pair limit its deeper losses. 

In the absence of the major data/events on the day, the market traders will keep their eyes on the ongoing drama surrounding the U.S. elections result and updates about the U.S. stimulus package. 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 1.2933

S2 1.3025

S3 1.3084

Pivot Point 1.3117

R1 1.3176

R2 1.3209

R3 1.3302

Entry Price – Buy 1.31412

Stop Loss – 1.31812

Take Profit – 1.31012

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

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Forex Market Analysis

Daily F.X. Analysis, November 13 – Top Trade Setups In Forex – CPI, Employment in Focus! 

The eyes will remain on the U.S. Core PPI m/m and the Prelim UoM Consumer Sentiment from the United States on the news side. Both of the events are expected to drive some movement in the U.S. dollar and related currency pairs. During the European session, the French Final CPI m/m, Flash Employment Change q/q, and Flash GDP q/q will remain in highlights as these are coming from European counties; therefore, we can expect support to the Euro pairs.

The eyes will remain on the U.S. Core PPI m/m and the Prelim UoM Consumer Sentiment from the United States on the news side. Both of the events are expected to drive some movement in the U.S. dollar and related currency pairs. During the European session, the French Final CPI m/m, Flash Employment Change q/q, and Flash GDP q/q will remain in highlights as these are coming from European counties; therefore, we can expect support to the Euro pairs.

The eyes will remain on the U.S. Core PPI m/m and the Prelim UoM Consumer Sentiment from the United States on the news side. Both of the events are expected to drive some movement in the U.S. dollar and related currency pairs. During the European session, the French Final CPI m/m, Flash Employment Change q/q, and Flash GDP q/q will remain in highlights as these are coming from European counties; therefore, we can expect support to the Euro pairs.

Economic Events to Watch Today  

 

EUR/USD – Daily Analysis

The EUR/USD pair was closed at 1.18054 after placing a high of 1.18230 and a low of 1.17584. The currency pair EUR/USD reversed its Wednesday’s movement and raised on Thursday despite coronavirus worsened Europe’s situation. Italy was now expecting to enter a nationwide lockdown due to the increased number of coronavirus cases and curb the virus’s spread that should have caused the EUR/USD pair to continue movement in the downward direction. Still, the pair surged on the back of the weak U.S. dollar.

The U.S. dollar has suffered from risk-on markets sentiment, with investors becoming more optimistic after Pfizer’s 90% effective coronavirus vaccine. The greenback was also weak due to the declining CPI data from the U.S. At 12:00 GMT, the German Final CPI for October came in line with the expectations of 0.1%. At 15:00 GMT, the Industrial Production in September from Eurozone declined to -0.4% against the forecasted 0.6% and weighed on Euro and capped further gains in EUR/USD pair.

At 18:30 GMT, the Consumer Price Index for October fell to 0.0% against the projected 0.1% and weighed on the U.S. dollar and supported the EUR/USD pair’s upward direction. The Core CPI for October also declined to 0.0% from the projected 0.2% and weighed on the U.S. dollar and added further in gains of EUR/USD pair. However, the Unemployment Claims from last week fell to 709K against the projected 730K and supported the U.S. dollar and capped further gains in currency pair EUR/USD pair.

Moreover, the U.S. political uncertainties also continued weighing on the U.S. dollar after the victory of Joe Biden and becoming 46th U.S. President. Donald Trump has failed to concede Biden’s victory and has left the markets uncertain about what could happen next as Trump attempts to challenge the vote. 

Meanwhile, the U.S. dollar was also under pressure because of the rising number of coronavirus infections on Wednesday. The cases increased to 142,000 new cases in a single day, and the hospitalization rate also increased and reached 65,000, the highest during the pandemic. These virus conditions in the U.S. also weighed on the U.S. dollar and supported the upward movement of the EUR/USD pair.

On the other hand, the ECB President Christine Lagarde said that she believes that the region’s monetary authority will move to launch a digital version of the Euro in the next two to four years. Previously, ECB officials disclosed that they were researching a central bank digital currency.

On the virus front, the ECB President, Christine Lagarde, said that the coronavirus vaccine had reduced the uncertainty and complete lockdown was not the best way to deal with the second wave. These comments from Lagarde also supported the upward movement of the EUR/USD pair on Thursday.

Daily Technical Levels

Support   Resistance

1.1738      1.1827

1.1697      1.1875

1.1648      1.1917

Pivot point: 1.1786

EUR/USD– Trading Tip

The EUR/USD continues to trade sideways at the 1.1804 area, facing immediate support at the 1.1749 level along with resistance at the 1.1835 level. On the further higher side, the violation of the 1.1835 level can extend the buying trend until 1.1907. On the lower side, the support level prevails at 1.1749 and 1.1680 level. The MACD and EMA are also neutral; therefore, we may see selling below the 1.1835 and bullish above the same level today.

GBP/USD – Daily Analysis

The GBP/USD pair was closed at 1.31222 after a high of 1.32281 and a low of 1.31062. The pair GBP/USD continued following its previous day movement and extended its losses on Thursday. On Thursday, the Bank of England Governor said that he hoped a goodwill spirit would prevail between Britain and the European Union countries to smooth over unavoidable trade disruptions after the end of the Brexit transition period on Jan-1st.

Bailey also told a panel discussion with the U.S. Federal Reserve Chair Jerome Powell and European Central bank President Christine Lagarde that he felt very uncomfortable at the huge amount of economic uncertainty created by a coronavirus. On Thursday, Bailey said that he was encouraged by the latest coronavirus vaccine developments, which reduce economic uncertainty.

He also said that the trade talks were continuing between Britain and the European Union, but he could not judge the outcome. He said that he hoped that if there will be a trade agreement, there will be a goodwill spirit. However, he also told the panel Britain’sain’s financial sector was ready for the end of transition periods irrespective of a deal and was better prepared than the rest of the economic sectors. Bailey’s comments raised concerns in the market sentiment and kept the British Pound under pressure that left the GBP/USD pair on the downside.

On the data front, at 05:01 GMT, the RICS House Price Balance from the U.K. for October raised to 68% from the forecasted 54% and supported GBP. At 12:00 GMT, the Prelim GDP for the 3rd Quarter declined to 15.5% against the expected 15.8% and weighed on British Pound and added in the losses of GBP/USD pair. For September, the U.K.’s Construction Output raised to 2.9% against the forecasted 2.1% and supported British Pound. The GDP for September from the U.K. also declined to 1.1% against the estimated 1.5% and weighed on British Pound and further supported the GBP/USD pair’s losses.

The Goods Trade Balance came in as expected -9.3B. The Index of Services for the Quarter also declined to 14.2% from the forecasted 14.6% and weighed on British Pound and added losses in currency pair. The Industrial Production for September again fell to 0.5% from the estimated 0.9% and weighed on GBP. The Manufacturing Production in September from the U.K. dropped to 0.2% against the projected 0.7% and weighed on GBP. The Prelim Business Investment dropped to 8.8% in September from the projected 14.4% and weighed on local currency Sterling and further pushed the pair on the downside.

From the U.S. side, at 18:30 GMT, the Consumer Price Index for October was dropped to 0.0% against the expected 0.1% and weighed on the U.S. dollar and capped further losses in GBP/USD pair. The Core CPI for October also dropped to 0.0% from the expected 0.2% and weighed on the U.S. dollar. However, the Unemployment Claims from last week fell to 709K against the estimated 730K and supported the U.S. dollar and added losses in GBP/USD pair on Thursday.

Daily Technical Levels

Support   Resistance

1.3170      1.3291

1.3119      1.3361

1.3050      1.3412

Pivot point; 1.3240

GBP/USD– Trading Tip

The GBP/USD pair is trading at 1.3116 level, holding over 1.3110 level, which is extended by an upward trendline on a 2-hour timeframe. The Cable has recently completed 38.2% Fibonacci retracement, and now it’s holding above the double bottom support level of 1.3110 level. On the higher side, the pair may surge until the resistance level of 1.3190 level. The MACD and RSI support selling trend, but considering the trendline support and oversold indicators, it is worth giving a buy shot to GBP/USD pair. Let’s consider buying over 1.3110 level today. 

USD/JPY – Daily Analysis

The USD/JPY pair was closed at 105.121 after placing a high of 105.476 and a low of 105.068. The pair USD/JPY reversed its direction and started falling on Thursday amid the broad-based US dollar weakness. The decreased risk sentiment due to the escalated second wave of the coronavirus in the United States weighed on the USD/JPY pair on Thursday. The investors started to fear that governments might respond by imposing the lockdown restrictions that will slow down the economic recovery.

The United States reported about 140,453 cases on a single day on Wednesday, and it was the ninth straight day of above 100,000 cases. According to Johns Hopkins University, about 10.4 million Americans have been infected by the coronavirus so far, and nearly 242,000 have died from it. These concerns raised the safe-haven appeal and supported the Japanese Yen that ultimately weighed on the USD/JPY pair on Thursday.

On the data front, at 04:50 GMT, the Core Machinery Orders from Japan for September came in as -4.4% against the expected -1.1% and weighed on the Japanese Yen. The Purchasing Price Index (PPI) from Japan remained flat with the expectations of -2.1% for the year. At 09:30 GMT, the Tertiary Industry Activity for September raised to 1.8% against the anticipated 1.3% and supported the Japanese Yen and weighed on the USD/JPY pair.

From the US side, at 18:30 GMT, the Consumer Price Index for October was dropped to 0.0% against the anticipated 0.1% and weighed on the US dollar and dragged the pair USD/JPY on the downside. The Core CPI for October also dropped to 0.0% from the anticipated 0.2% and weighed on the US dollar and added further in the USD/JPY pair’s losses. However, the Unemployment Claims from last week were declined to 709K against the anticipated 730K and supported the US dollar that capped further losses in the USD/JPY pair.

Meanwhile, on Thursday, the Federal Reserve Chairman Jerome Powell cautioned that the US economy would further need support from Congress and the central bank even if a coronavirus vaccine becomes available by the end of the year. He said that despite the vaccine’s availability, there still will be millions of people left who have lost their job to the pandemic, and they will still struggle to find work as the economy will attempt to recover from the economic downturn.

He added that in the Federal Reserve’s eyes, the terrible rise in COVID-19 cases across the country was the “main risk” for the US economy. He added that the coronavirus’s third wave had forced several states to re-impose lockdown restrictions and caused people to lose confidence. He stressed that the economy would not fully recover until people are confident that it was safe to resume activities involving the crowd. These comments from Powell also weighed on the US dollar and added in the losses of the USD/JPY pair on Thursday.


Daily Technical Levels

Support   Resistance

103.82      106.29

102.27      107.21

101.35      108.75

Pivot point: 104.74

USD/JPY – Trading Tips

The USD/JPY is trading sideways between 105.650 – 104.900 level, and violation of this level can extend the selling trend until the next support level of 104.430 mark. Simultaneously, the bullish breakout of the 105.650 level may open further room for buying until the 106.142 level. Overall, the eyes will remain at 104.835 level to trade bearish below this level until 104.435 and 104.175 level today. Good luck! 

Categories
Forex Signals

AUD/USD Maintain Bullish Streak Despite Risk-off Sentiment – Trade Plan!  

Today in the Asian trading session, the AUD/USD currency pair erased some of its earlier gains but still trading on the bullish track and taking rounds just closer to the 0.7250 level, mainly due to the broad-based U.S. dollar weakness. Hence, the broad-based U.S. dollar was being pressured by the doubts persist over the global economic recovery from COVID-19. This, in turn, undermined the greenback and contributed to the currency pair gains. 

Today in the Asian trading session, the AUD/USD currency pair erased some of its earlier gains but still trading on the bullish track and taking rounds just closer to the 0.7250 level, mainly due to the broad-based U.S. dollar weakness. Hence, the broad-based U.S. dollar was being pressured by the doubts persist over the global economic recovery from COVID-19. This, in turn, undermined the greenback and contributed to the currency pair gains. 

Today in the Asian trading session, the AUD/USD currency pair erased some of its earlier gains but still trading on the bullish track and taking rounds just closer to the 0.7250 level, mainly due to the broad-based U.S. dollar weakness. Hence, the broad-based U.S. dollar was being pressured by the doubts persist over the global economic recovery from COVID-19. This, in turn, undermined the greenback and contributed to the currency pair gains. 

On the other hand, the optimism over the coronavirus (COVID-19) vaccine/treatment also lends some minor support to the currency pair by underpinning the perceived risk currency Australian dollar. On the contrary, the intensified clashes between the US-China over the Hong Kong crackdown could be regarded as one of the important factors that might cap further upside momentum for the AUD/USD pair. The AUD/USD pair is currently trading at 0.7237 and consolidating in the range between 0.7228 – 0.7242.

The intensifying market worries regarding the continuous surge in new coronavirus cases in Europe and the United States keep fueling the doubts over the global economic recovery through imposing new lockdown restrictions on economic and social activity, which eventually weighed on the market trading sentiment. As per the recent report, the U.S. coronavirus cases reached a new daily record high, with 140,543 reported. Almost 10.4 million peoples in the U.S. have been infected by the Covid-19 so far. While almost 242,000 have died from this, according to the Johns Hopkins University report. As in result, New York has announced a 10 p.m. curfew on bars, gyms, and restaurants to curb the spread. Afterward, Chicago also followed the footsteps of New York and restricted activities.

In addition to the U.S., Europe also imposed lockdown again last week, threatening the oil outlook and undermining oil prices. It is worth recalling that Sweden declared a partial lockdown shutting down bars and restaurants for the 1st-time since the virus started. Thus, the back to back lockdowns restrictions keep harming the crude oil demand.

Besides the virus woes, the reason for the downbeat market sentiment could also be associated with the long-lasting US-China tussle, which fueled further after the U.S. warned China over the Hong Kong crackdown during the previous day. Apart from this, the Trump administration shows a willingness to limit investments in Chinese companies, fueling the already intensified tussle. 

Despite the risk-off market sentiment, the broad-based U.S. dollar failed to extend its previous day gains. It slipped lower mainly due to the heavy optimism over the potential vaccine for the highly infectious coronavirus disease. Apart from this, coronavirus’s resurgence keeps fueling the fears that the U.S. economic recovery could be halt, which also keeps the USD under pressure. However, the U.S. dollar losses could be considered the major factor that pushes the currency pair higher. Meanwhile, the U.S. Dollar Index that tracks the greenback against a bucket of other currencies dropped to 92.957.

In the absence of the major data/events on the day, the market traders will keep their eyes on the continuous drama surrounding the U.S. stimulus package. 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 0.7128

S2 0.7186

S3 0.7208

Pivot Point 0.7245

R1 0.7267

R2 0.7304

R3 0.7363

The AUDUSD traded with a bullish bias, but it recently has violated the upward channel at the 0.7245 level. The Aussie has now entered the new region, and it has formed a downward channel on the smaller timeframe now, which is likely to extend resistance at 0.7245 level along with support at 0.7200. A bearish breakout of 0.7200 level can open further room for buying until 0.7122 level. The MACD is also in support of selling; therefore, we should look for selling trades below the 0.7245 level today. Goold luck! 

Categories
Forex Signals

GBP/JPY Reverses Over Support – Doji & Bullish Engulfing in Play!

The GBP/JPY pair slipped to drop until 137.500 support level and has closed a Doji candle which is suggesting odds of bullish reversal in the market. On the 4 hour timeframe, the GBP/JPY pair has closed a Doji pattern which is suggesting that the sellers are exhausted and bulls may enter the market. On the higher side, the GBP/JPY pair can find resistance at the 138.687 level. Thus, we have decided to capture this move, and opened a signal with a stop loss at 137.46 and take profit of 138.36. Let’s keep an eye on the pair.

The GBP/JPY pair slipped to drop until 137.500 support level and has closed a Doji candle which is suggesting odds of bullish reversal in the market. On the 4 hour timeframe, the GBP/JPY pair has closed a Doji pattern which is suggesting that the sellers are exhausted and bulls may enter the market. On the higher side, the GBP/JPY pair can find resistance at the 138.687 level. Thus, we have decided to capture this move, and opened a signal with a stop loss at 137.46 and take profit of 138.36. Let’s keep an eye on the pair.

The GBP/JPY pair slipped to drop until 137.500 support level and has closed a Doji candle which is suggesting odds of bullish reversal in the market. On the 4 hour timeframe, the GBP/JPY pair has closed a Doji pattern which is suggesting that the sellers are exhausted and bulls may enter the market. On the higher side, the GBP/JPY pair can find resistance at the 138.687 level. Thus, we have decided to capture this move, and opened a signal with a stop loss at 137.46 and take profit of 138.36. Let’s keep an eye on the pair.


Entry Price – Buy 137.86
Stop Loss – 137.46
Take Profit – 138.36
Risk to Reward – 1:1.25
Profit & Loss Per Standard Lot = -$400/ +$500
Profit & Loss Per Micro Lot = -$40/ +$50
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 12 – Top Trade Setups In Forex – Spotlight on ECB, BOE & FED! 

On the news side, the eyes will remain on the U.K. Prelim GDP q/q, which is expected to have improved from -19.8% to 15.8% previous month, and it may support the Sterling today. Later in the day, the speeches from the ECB President Lagarde, BOE Gov Bailey, and Fed Chair Powell will remain under the spotlight. All three officials are due to participate in a panel discussion about monetary policy at the ECB Forum on Central Banking via satellite. Lastly, the U.S. CPI figures can also trigger some price action during the U.S. session today; let’s keep an eye on it. 

On the news side, the eyes will remain on the U.K. Prelim GDP q/q, which is expected to have improved from -19.8% to 15.8% previous month, and it may support the Sterling today. Later in the day, the speeches from the ECB President Lagarde, BOE Gov Bailey, and Fed Chair Powell will remain under the spotlight. All three officials are due to participate in a panel discussion about monetary policy at the ECB Forum on Central Banking via satellite. Lastly, the U.S. CPI figures can also trigger some price action during the U.S. session today; let’s keep an eye on it. 

On the news side, the eyes will remain on the U.K. Prelim GDP q/q, which is expected to have improved from -19.8% to 15.8% previous month, and it may support the Sterling today. Later in the day, the speeches from the ECB President Lagarde, BOE Gov Bailey, and Fed Chair Powell will remain under the spotlight. All three officials are due to participate in a panel discussion about monetary policy at the ECB Forum on Central Banking via satellite. Lastly, the U.S. CPI figures can also trigger some price action during the U.S. session today; let’s keep an eye on it. 

Economic Events to Watch Today  

 

 

EUR/USD – Daily Analysis

The EUR/USD closed at 1.17786 after placing a high of 1.18325 and a low of 1.17453. The Euro dropped on Wednesday against the U.S. dollar as the European Central Bank (ECB) policymakers continued signaling further easing, though they downplayed the prospect of further interest rate cuts.

At the ECB forum on central banking in Frankfurt, the ECB President Christine Lagarde said that the coronavirus crisis had produced a highly unusual recession, and recovery is likely to be uneven. She also warned against excessive optimism over the short-term impact on the economy from a vaccine.

Lagarde continued that as the latest news on vaccine looked encouraging, the chances were still there. The economy could face frequent cycles of accelerating viral spread and tightening restrictions until widespread immunity was achieved. On Monday, the U.S. drugmaker Pfizer said that its vaccine’s last stage trials had shown a high level of success in preventing reinfection. Lagarde signaled that the central bank would almost certainly loose monetary policy in the next meeting as the Eurozone economy risks falling back towards recession. She told lawmakers that ECB was ready to take further easing actions. These comments from ECB President weighed on the single currency Euro and dragged the pair EUR/USD on the downside on Wednesday.

Lagarde said that the ECB would keep its interest rates at 0.0%, and it has an asset purchase program in place worth 1.35 trillion euros. She said that bond-buying and pumping extra cash into the financial system were the best ways for the central bank to support the economy.

According to Lagarde, while all the other options were on the table, the PEPP and TLTRO’s have proven their effectiveness in the current environment. Therefore, they will likely remain the main tools for adjusting monetary policy.

According to the latest forecast, the Eurozone GDP in the fourth quarter is likely to decline by roughly 2% as the renewed lockdowns have affected the economic activities. All these updates kept the single currency Euro under pressure and, ultimately, the EUR/USD pair on the downside.

On the U.S. front, the U.S. dollar was high onboard due to the rising hopes of a quick economic rebound and less need for stimulus measures from the FED after the latest optimism from the vaccine front. 

The U.S. Dollar Index rose by about 0.3% on Wednesday and supported the U.S. dollar’s upward trend that ultimately added pressure on the EUR/USD pair. Meanwhile, there was a Bank Holiday in the U.S. and France that kept the macroeconomic data out of the table and left the EUR/USD pair on the mercy of market mood and Lagarde’s speech.

Daily Technical Levels

Support   Resistance

1.1738      1.1827

1.1697      1.1875

1.1648      1.1917

Pivot point: 1.1786

EUR/USD– Trading Tip

The EUR/USD is trading with a bearish bias at the 1.1780 level, having violated the double bottom support level at 1.1800. The same support level was also extended by an upward trendline pattern on the hourly timeframe. At the moment, the EUR/USD has formed a downward channel, which extends resistance at the 1.17800 level. On the lower side, the support holds around 1.1743 level. The MACD and EMA are also turning bearish; therefore, we may see selling below the 1.17800 mark today.

GBP/USD – Daily Analysis

The GBP/USD closed at 1.32237 after placing a high of 1.33133 and a low of 1.31912. The GBP/USD pair dropped on Wednesday after placing gains for four consecutive days on the back of rising concerns over the Brexit deal and the broad-based U.S. dollar strength.

On the Brexit front, the U.K. and E.U. are still far apart on fisheries and the flow of goods between Ireland and Northern Ireland. However, hopes were still high that talks between both sides were moving positively as there had been no public finger-pointing by both parties in the preceding few weeks. Despite this, it cannot be said that a deal will surely reach as when it comes to Brexit, there is nothing sure.

Another unofficial deadline for reaching a deal has been set by both sides: the European Summit on November 19. If a settlement is not reached by then, the chances are high that the U.K. will leave the E.U. on December 31 without a trade deal and will bound to follow WTO rules. As the new deadline was reaching closer, these latest concerns raised the fears of no-deal Brexit and weighed on the British Pound that ultimately dragged GBP/USD pair on the downside.

Furthermore, on the U.S. front, the greenback was strong across the board as the Fed’s need for further stimulus dropped after releasing the latest vaccine news. The U.S. Dollar Index rose by about 0.3% and weighed on GBP/USD pair. Moreover, traders’ eyes will be upon the release of the third quarter GDP from Great Britain. Investors believe that the economy will post a strong rebound in Q3 as the coronavirus pandemic caused a sharp decline in GDP in Q2 when it fell by 19.8%. The third-quarter GDP is expected to stand at 15.3%, and any figure within the expectations will prove bullish for GBP. U.K. will also release monthly GDP for September that is projected to decline by 1.5% down from August’s 2.1%.

Meanwhile, the GBP/USD pair’s losses remained limited as the risk sentiment in the market continued supporting the risk perceived GBP. The risk sentiment was supported by the latest optimism about the vaccine development from Pfizer and BioNtech on Monday. However, the British Pound was also under pressure due to the victory of Joe Biden in the U.S. election last week. Biden has said that he will not make a trade deal with the U.K. after its transition period ends if it failed to reach a deal with the E.U. Now the pressure has been increased in the U.K. for securing a trade deal with the E.U., which has also exerted pressure on local currency British Pound that has been weighing on GBP/USD pair since Biden’s victory.

Daily Technical Levels

Support   Resistance

1.2997      1.3222

1.2851      1.3301

1.2771      1.3448

Pivot point: 1.3076

GBP/USD– Trading Tip

On Thursday, the GBP/USD is consolidating with a neutral bias at 1.3210 level ahead of the UK GDP figures later today. The GBP/USD is holding over the resistance becomes a support level of 1.3159. At the moment, the Cable may find immediate support at the 1.3208 level, and below this, Sterling can dip until the 1.3140 level. As you can see on the hourly timeframe, the Cable is stuck in a very narrow range, and there is likely to be an excellent trade opportunity in the market upon breakout. Let’s consider selling below the 1.3190 level and buying above the same area today. 

USD/JPY – Daily Analysis

During Thursday’s Asian trading session, the USD/JPY currency pair failed to extend its early-day recovery streak and edged lower around below the 105.30 level. Selling bias could be associated with the risk-off market sentiment, which underpins the safe-haven Japanese yen and contributes to the currency pair losses. Therefore, the market trading sentiment was being pressured by the increasing market concerns about the possible economic fallout from the second wave of continuous. 

Across the pond, the broad-based U.S. dollar selling bias, triggered by the optimism over a potential vaccine for the highly infectious coronavirus pandemic, could also be considered as one of the key factors that dragged the currency pair lower. In the meantime, the U.S. dollar losses were further bolstered by the renewed hopes for substantial U.S. fiscal stimulus measures. On the contrary, the optimism over a potential vaccine and the progress surrounding the Brexit talks keep challenging market risk-off mood and become the key factor that helps the currency pair limit its deeper losses. On the flip side, the currency pair mostly ignores the second-tier data from Japan. At this particular time, the USD/JPY currency pair is currently trading at 105.31 and trading in the range between 105.22 – 105.47.

The market trading sentiment failed to extend its previous day’s positive performance. It started to flash red on the day as the resurgence of (COVID-19) cases still not dispensing any sign of slowing down in the U.S. and Europe, which keep fueling the worries over the global economic recovery. As per the latest report, the U.S. keeps reporting record cases daily, more than 100K per day. Even all U.S. states representing a worse status report of the COVID-19, which was backed by the record hospitalizations and daily cases. As in result, New York has declared a 10 p.m. curfew on bars, gyms, and restaurants to curb the virus spread. It is also worth mentioning that the COVID-19 hospitalizations in the U.S. exceeded 60,000. 

In addition to the U.S., Europe also imposed lockdown again last week, threatening to weaken the economic recovery. As per the latest report, Sweden declared a partial lockdown is shutting down bars and restaurants for the 1st-time since the virus started. Thus, the back to back lockdowns restrictions will have an instant negative effect on global economic recovery.

Moreover, the market risk-off sentiment was further bolstered by the reports suggesting that the Dragon Nation takes one more trade-negative measure for Aussie. As per the latest report, the Dragon Nation extended its anti-Aussie bias while suspending the Victorian timber logs. The dragon nation has already lifted bars for Australian wine, iron ore, and barley after the Pacific inquiry alleging the Asian leader’s negligence caused the coronavirus (COVID-19) outbreak. Apart from this, the bearish market sentiment could also be associated with the long-lasting US-China tussle, which continuously picks the pace. As per the latest report, the U.S. National Security Adviser Robert Charles O’Brien recently threatened the Dragon Nation over its responsibility to trigger Hong Kong freedom violations.

Daily Technical Levels

Support   Resistance

103.82      106.29

102.27     107.21

101.35     108.75

Pivot point: 104.74

USD/JPY – Trading Tips

The USD/JPY is trading sideways, maintaining a narrow range of 105.63 – 104.835 ever since it has violated the descending trendline at 104.950 area. The USD/JPY pair is trading choppy as investors seem to brace for the U.S. inflation figures later today. The USD/JPY pair needs to violate the 104.900 level to continue trading bearish, and below this, we may see the USD/JPY pair falling until the 104.220 level, and a further breakout can lead it towards 102.400. However, we may see buying over 104.950 levels today until 105.600. Good luck! 

Categories
Forex Signals

AUD/USD Weakens Despite the Intensifying Coronavirus (COVID-19) – Upward Channel Breakout! 

During Thursday early Asian trading session, the AUD/USD currency pair successfully extended its overnight winning streak. It drew some further bids around below 0.7300 level, mainly due to the risk-on market sentiment, which underpins the perceived risk currency Australian dollar and contributes to the currency pair gains. Hence, the market trading sentiment was being supported by optimism over a potential vaccine for the highly infectious coronavirus disease. 

During Thursday early Asian trading session, the AUD/USD currency pair successfully extended its overnight winning streak. It drew some further bids around below 0.7300 level, mainly due to the risk-on market sentiment, which underpins the perceived risk currency Australian dollar and contributes to the currency pair gains. Hence, the market trading sentiment was being supported by optimism over a potential vaccine for the highly infectious coronavirus disease. 

During Thursday early Asian trading session, the AUD/USD currency pair successfully extended its overnight winning streak. It drew some further bids around below 0.7300 level, mainly due to the risk-on market sentiment, which underpins the perceived risk currency Australian dollar and contributes to the currency pair gains. Hence, the market trading sentiment was being supported by optimism over a potential vaccine for the highly infectious coronavirus disease. 

Besides this, the upticks in the equity markets were further bolstered by the updates suggesting continuous progress of Brexit talks between the U.K. and the European Union (E.U.), which extended further support to the currency pair. Across the pond, the broad-based U.S. dollar bearish bias, triggered by the marker risk-on mood, has played its significant role in supporting the currency pair. Furthermore, the greenback declines were further bolstered by the intensifying doubts over the U.S. economic recovery in the wake of the intensified U.S. cases. 

Conversely, the long-lasting coronavirus woes throughout the world and delays in the U.S. covid stimulus package keep challenging the upbeat market sentiment, which becomes the key determinant that deposited the lid on any additional gains in the currency pair. In the meantime, the gains in the currency pair were further capped by the Weaker Aussie data, which showed that the Consumer confidence in Australia declined more than expected in November. The AUD/USD is trading at 0.7284 and consolidating in the range between 0.7275 – 0.7294.

The market trading bias has been sluggish since the day started. Hence, mixed trading could be attributed to the mixed signals concerning the coronavirus (COVID-19) and the global monetary policy moves, not to forget about the U.S. election results. Talking about positive factors, the leading vaccine producers like Pfizer and Moderna keep struggling to find the deadly virus’s best cure. In the meantime, the U.S. infectious disease expert Dr. Anthony Fauci recently boosted coronavirus (COVID-19) vaccine optimism during the latest comments. He noted that the data from a large trial of its experimental COVID-19 vaccine anywhere between “a couple of days” to “a little more than a week.”


Daily Support and Resistance

S1 0.7176

S2 0.723

S3 0.7255

Pivot Point 0.7285

R1 0.7309

R2 0.7339

R3 0.7394

The AUDUSD is trading with a bullish bias at a 0.7303 area, having crossed over an immediate resistance level of 0.7287. At the moment, this level is working as a support for the AUD/USD pair. On the higher side, resistance stays at 0.7341 and 0.7411 level today. Bullish bias seems strong over 0.7287 today. Good luck! 

Categories
Forex Signals

USD/CAD Heading North – Is It a Good time to go long?

Today in the early Asian trading session, the USD/CAD currency pair successfully extended its previous day recovery streak and remained bullish around above the mid-1.3000 level. However, the bullish sentiment around the currency pair could be attributed to the modest downticks in the crude oil prices, which ultimately undermined the demand for the commodity-linked currency the loonie, and contributed to the currency pair gains. On the contrary, the broad-based U.S. dollar weakness, triggered by the multiple factors, has become one of the major factors that kept the lid on any further gains in the currency pair. Currently, the USD/CAD currency pair is currently trading at 1.3067 and consolidating in the range between 1.3054 – 1.3073.

Today in the early Asian trading session, the USD/CAD currency pair successfully extended its previous day recovery streak and remained bullish around above the mid-1.3000 level. However, the bullish sentiment around the currency pair could be attributed to the modest downticks in the crude oil prices, which ultimately undermined the demand for the commodity-linked currency the loonie, and contributed to the currency pair gains. On the contrary, the broad-based U.S. dollar weakness, triggered by the multiple factors, has become one of the major factors that kept the lid on any further gains in the currency pair. Currently, the USD/CAD currency pair is currently trading at 1.3067 and consolidating in the range between 1.3054 – 1.3073.

Today in the early Asian trading session, the USD/CAD currency pair successfully extended its previous day recovery streak and remained bullish around above the mid-1.3000 level. However, the bullish sentiment around the currency pair could be attributed to the modest downticks in the crude oil prices, which ultimately undermined the demand for the commodity-linked currency the loonie, and contributed to the currency pair gains. On the contrary, the broad-based U.S. dollar weakness, triggered by the multiple factors, has become one of the major factors that kept the lid on any further gains in the currency pair. Currently, the USD/CAD currency pair is currently trading at 1.3067 and consolidating in the range between 1.3054 – 1.3073.

Despite the renewed optimism about a potential treatment/vaccine for the highly infectious virus, the market trading sentiment has ben flashing mixed signals as the coronavirus woes overshadowed vaccine hopes. However, the increasing market worries over the potential economic fallout from the constant rise in new COVID-19 cases keep weighing on the market trading sentiment. As per the latest report, the country keeps reporting record cases daily, more than 100K per day. Essentially all American states are getting a worse status report of the COVID-19, strengthened by record hospitalizations and daily cases rising past-100,000 in the last few days. As in result, New York has declared a 10 p.m. curfew on bars, gyms, and restaurants to curb the spread. It is also worth mentioning that the COVID-19 hospitalizations in the U.S. exceeded 60,000.

On the bullish side of the story, the prevalent optimism over the potential vaccine for the highly infectious coronavirus disease helps the market trading sentiment limit its deeper losses. The leading vaccine producers like Pfizer and Moderna still show progress over the vaccine for the deadly virus. This was witnessed after the U.S. infectious disease expert Dr. Anthony Fauci said that Moderna could begin analyzing vaccine data within days. However, the market trading mood mostly ignored the U.S. official’s another push to keep vaccine optimism high amid surging virus cases and hospitalizations in the U.S.

Despite the risk-off market sentiment, the broad-based U.S. dollar failed to extend its overnight gains. It edged lower on the day, mainly due to the heavy optimism over the potential vaccine for the highly infectious coronavirus disease. Apart from this, coronavirus’s resurgence keeps fueling the fears that the U.S. economic recovery could be halt, which also keeps the greenback under pressure. However, the U.S. dollar losses could be considered the major factor that pushes the currency pair down. Meanwhile, the U.S. Dollar Index that tracks the greenback against a bucket of other currencies dropped to 92.922.

At the crude oil front, the WTI crude oil prices failed to extend its overnight winning streak and remained under some selling pressure on the day. However, the fresh declines in crude oil could be attributed to reports suggesting the next wave of lockdowns throughout the world, which is threatening the crude oil demand once again. Apart from this, the reason for the modest losses in crude oil prices could also be associated with the latest reports suggesting that OPEC’s oil output in October rose by 320,000 BPD in the wake of recovery in Libya’s production. Thus, the pullback in oil prices undermined demand for the commodity-linked currency – the loonie and remained supportive of the USD/CAD pair’s ongoing recovery momentum.

Moving ahead, the market traders will keep their eyes on the U.S. economic calendar, which highlights the latest data concerning U.S. inflation and jobless claims. In the meantime, the Brexit trade talks’ updates could not lose their importance on the day.


Daily Support and Resistance
S1 1.2951
S2 1.3003
S3 1.3032
Pivot Point 1.3055
R1 1.3084
R2 1.3107
R3 1.3158

The USD/CAD is trading with bullish sentiment at 1.3094, facing immediate resistance at 1.3100. Crossing above this level may drive further upward movement until 1.3177 level. On the downside, the USD/CAD may find support at 1.3025, and below this, the next support level stays at 1.2975 level. The MACD is in support of buying; thus, we may look for a buying trade over the 1.3105 level today. Good luck!

Categories
Forex Signals

EUR/JPY Violates Symmetric Triangle Pattern


Entry Price – Buy 124.623
Stop Loss – 124.223
Take Profit – 125.023
Risk to Reward – 1:1
Profit & Loss Per Standard Lot = -$400/ +$400
Profit & Loss Per Micro Lot = -$40/ +$40
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Categories
Forex Market Analysis

Daily F.X. Analysis, November 11 – Top Trade Setups In Forex – Bank Holidays! 

On the news front, the economic calendar is mostly empty on the back of the Bank holiday in Europe and the United States. French banks will be closed in observance of Armistice Day, while Canadian banks will be closed in observance of Remembrance Day. The U.S. banks will also remain closed amid the Veterans Day holiday in the bank. We may experience thin trading volume and volatility in the market. 

On the news front, the economic calendar is mostly empty on the back of the Bank holiday in Europe and the United States. French banks will be closed in observance of Armistice Day, while Canadian banks will be closed in observance of Remembrance Day. The U.S. banks will also remain closed amid the Veterans Day holiday in the bank. We may experience thin trading volume and volatility in the market. 

On the news front, the economic calendar is mostly empty on the back of the Bank holiday in Europe and the United States. French banks will be closed in observance of Armistice Day, while Canadian banks will be closed in observance of Remembrance Day. The U.S. banks will also remain closed amid the Veterans Day holiday in the bank. We may experience thin trading volume and volatility in the market. 

Economic Events to Watch Today  

 

EUR/USD – Daily Analysis

The EUR/USD pair was closed at 1.18133 after placing a high of 1.19198 and a low of 1.17951. The EUR/USD pair rose to its highest since September 02 on Monday but failed to keep its gains and fell to post losses for the day as the U.S. dollar rallied in the American session as risk appetite took over. Pfizer and BioNtech announced that their coronavirus vaccine was more than 90% effective in preventing the coronavirus. The news about the vaccine optimism raised the risk sentiment further and pushed the pair to its highest in 9 weeks in earlier sessions on Monday.

Pfizer and BioNtech said they would seek the approval authorization for emergency-use from the U.S. later this month. The market’s optimism raised and supported the EUR/USD pair’s an upward movement in earlier trading hours.

A vaccine will likely mean the end of lockdowns and restrictions and hence, a sharp economic comeback. However, it will take up to the second half of next year for the vaccine or vaccines to reach enough people to grant a more regular return to activities. Nevertheless, optimism will prevail. However, the EUR/USD pair failed to keep its gains for the day and started declining on Monday on the back of Joe Biden’s victory in the U.S. presidential election. The political gridlock in the U.S. Senate could stall the prospect of any fresh package of U.S. fiscal stimulus package that failed to keep the U.S. dollar under pressure and weighed on the EUR/USD pair.

The European Central Bank (ECB) President Christine Lagarde refrained from touching upon monetary policy in her scheduled speech at the Green Horizon Summit on Monday. She only talked about climate risks and said that the economic challenges of climate transition were phenomenal. The main driver of the EUR/USD pair remained the strength of the U.S. dollar triggered by the faded hopes of additional stimulus measures as the vaccine news raised optimism about the economic recovery.

European banks will be closed in observance of Armistice Day; therefore, thin trading volume and volatility can be expected today. 

Daily Technical Levels

Support   Resistance

1.1766      1.1891

1.1717      1.1969

1.1640      1.2017

Pivot point: 1.1843

EUR/USD– Trading Tip

On Wednesday, the EUR/USD is trading bullish at the 1.1833 level amid a stronger U.S. dollar. The pair may now head higher until an immediate resistance level of 1.1883. On the 4 hour timeframe, the EUR/USD has formed an upward channel supporting the pair at the 1.18016 level. On the higher side, a bullish crossover of 1.1883 level can extend the buying trend until the 1.1945 area. The MACD entered the oversold zone and now suggesting odds of bullish trend continuation; therefore, we should look for a buying trade over the 1.1801 level.  

GBP/USD – Daily Analysis

The GBP/USD pair was closed at 1.31634 after a high of 1.32081 and a low of 1.31183. Despite higher market sentiment and weaker safe-haven demand on Monday, the British Pound to U.S. dollar exchange rate has been under pressure. The Sterling remained weak despite the increased market sentiment from the news of coronavirus vaccine efficiency. Pfizer and the BioNtech announced that their vaccine had been proved more than 90% efficient in preventing the coronavirus on Monday. Both companies also said they would be taking approval from the U.S. for the vaccine’s emergency-use later this month. After this news, risk appetite increased in the market, and global equities raised; however, the risk perceived GBP/USD pair remained under pressure as British Pound was weak due to Biden victory in the U.S. elections.

Joe Biden’s victory decreased the hopes for the U.K. & U.S. post-Brexit trade deal as Joe Biden has already said that if U.K. fails to reach a deal with the E.U., then the US-UK deal will also be jeopardized. As there was no news regarding the progress made in the U.K. & E.U. talks, the British Pound came under fresh pressure after Joe Biden became the U.S.

The governor of the Bank of England, Andrew Bailey, explained that what the BoE was doing to ensure the financial system plays its part in tackling climate change. He warned that climate change was a bigger risk than coronavirus. Furthermore, the chief economist from the Bank of England, Andy Haldane, said that a breakthrough in developing a coronavirus vaccine could deliver a vital boost of confidence to consumers and businesses. He added that the economy might have reached a decisive moment after the pharmaceutical company Pfizer announced that its coronavirus vaccine candidate was 90% effective.

He also said that the vaccine could be a game-changer for the economy. He cautioned that it would take several months for the vaccine to be rolled out but would have an immediate effect on consumer and business confidence. He added that the economic cycle would start again as it would unlock the business investments, and the economy will start recovering. The GBP/USD pair remained a little bullish due to high pressure on British Pound on Tuesday.

Daily Technical Levels

Support   Resistance

1.2997      1.3222

1.2851      1.3301

1.2771      1.3448

Pivot point: 1.3076

GBP/USD– Trading Tip

The GBP/USD is trading with a strong bullish bias due to a stronger Sterling 1.3191 area. The pair has violated the intraday resistance level at 1.3159, which is now working as a support for Sterling. On the higher side, the continuation of an upward trend can lead to the GBP/USD pair until the 1.3226 area. The cable had violated the descending triangle pattern, and ever since, it’s trading with a bullish bias. 

USD/JPY – Daily Analysis

The USD/JPY pair was closed at 105.388 after placing a high of 105.645 and a low of 103.187. The USD/JPY pair surged past the 105.6 level on Monday after the risk-on market sentiment raised and weighed on the Japanese Yen. The safe-haven Japanese Yen came under fresh pressure after the Pfizer and its German partner BioNtech announced that their vaccine candidate was proved more than 90% efficient in its last-stage trials. Both companies announced that they would seek U.S. approval for the emergency-use of vaccine later this month.

The pair USD/JPY witnessed a sharp rise in its prices of almost 3-4% on Monday after the vaccine optimism raised the risk appetite in the market that weighed heavily on the safe-haven Japanese Yen. This ultimately pushed the USD/JPY pair to the highest level since October 20.

The gains in USD/JPY pair were also supported by the victory of Democratic Joe Biden in U.S. elections. Biden was expected to deliver a massive stimulus package that had been weighing on the U.S. dollar. Still, after the news of vaccine development and its efficiency, the need for the massive stimulus package dropped and raised the U.S. dollar onboard. 

The Bank of Japan released the Summary of opinions that stated that one member said that the bank needs to ensure its purchases of exchange-traded funds are sustainable. Other members said that BOJ must be ready to ramp up stimulus to cushion the economic blow from the coronavirus pandemic. The Cleveland Federal Reserve Bank President Loretta Mester said that the emergency lending programs the Fed set up during the coronavirus pandemic had reduced distress in financial markets. She also said that there was still a need for lending programs. 

Mester also noted that Fed Chair Jerome Powell would be working with the Treasury Department to determine if the programs should be extended beyond the end of the year. She also stated that the Fed was not out of ammunition to stimulate the economy. The Fed could provide more accommodation by adjusting its asset purchase program and using other tools. She said that the economy recovered more strongly than expected, but gains have not been evenly spread. Mester said that economic growth would be more slowly despite the optimistic news about the vaccine. These comments kept the markets under pressure and capped further gains in the USD/JPY pair.

Daily Technical Levels

Support   Resistance

103.82      106.29

102.27      107.21

101.35      108.75

Pivot point: 104.74

USD/JPY – Trading Tips

The USD/JPY has violated the descending trendline at 104.950 area, and on the lower side, it’s testing the support area of 104.840 level. The USD/JPY pair has recently entered the overbought zone, and now investors may experience a bearish correction in the market. The USD/JPY pair needs to violate the 104.900 level. Below this, we may see the USD/JPY pair falling until the 104.220 level, and a further breakout can lead it towards 102.400, which seems a bit hard. However, we may see buying over 104.950 levels today until 105.600. Good luck! 

Categories
Forex Signals

Choppy Session in USD/CAD Continues – Traders Braces for a Breakout Setup!

During Wednesday’s early Asian trading session, the USD/CAD currency pair failed to stop its overnight losses and remain depressed around the 1.3030 level, mainly due to the broad-based U.S. dollar weakness. The prevalent downtrend in the U.S. dollar was mainly tied to the confidence over a potential vaccine for the extremely contagious coronavirus disease, which struggling to keep market trading sentiment positive. Moreover, President-elect Joe Biden faces difficulties from Donald Trump, which also weighs on the already weaker U.S. dollar. The reason for the declines in the currency pair could also be attributed to the fresh upward movement in the crude oil prices, which tend to underpin the commodity-linked currency the Loonie and contributes to the currency pair’s losses. However, the crude oil prices were being supported by fresh released upbeat American Petroleum Institute (API) data. As of writing, the USD/CAD currency pair is currently trading at 1.3028 and consolidating in the range between 1.3024 – 1.3037.

During Wednesday’s early Asian trading session, the USD/CAD currency pair failed to stop its overnight losses and remain depressed around the 1.3030 level, mainly due to the broad-based U.S. dollar weakness. The prevalent downtrend in the U.S. dollar was mainly tied to the confidence over a potential vaccine for the extremely contagious coronavirus disease, which struggling to keep market trading sentiment positive. Moreover, President-elect Joe Biden faces difficulties from Donald Trump, which also weighs on the already weaker U.S. dollar. The reason for the declines in the currency pair could also be attributed to the fresh upward movement in the crude oil prices, which tend to underpin the commodity-linked currency the Loonie and contributes to the currency pair’s losses. However, the crude oil prices were being supported by fresh released upbeat American Petroleum Institute (API) data. As of writing, the USD/CAD currency pair is currently trading at 1.3028 and consolidating in the range between 1.3024 – 1.3037.

During Wednesday’s early Asian trading session, the USD/CAD currency pair failed to stop its overnight losses and remain depressed around the 1.3030 level, mainly due to the broad-based U.S. dollar weakness. The prevalent downtrend in the U.S. dollar was mainly tied to the confidence over a potential vaccine for the extremely contagious coronavirus disease, which struggling to keep market trading sentiment positive. Moreover, President-elect Joe Biden faces difficulties from Donald Trump, which also weighs on the already weaker U.S. dollar. The reason for the declines in the currency pair could also be attributed to the fresh upward movement in the crude oil prices, which tend to underpin the commodity-linked currency the Loonie and contributes to the currency pair’s losses. However, the crude oil prices were being supported by fresh released upbeat American Petroleum Institute (API) data. As of writing, the USD/CAD currency pair is currently trading at 1.3028 and consolidating in the range between 1.3024 – 1.3037.

As we already mentioned, the market trading sentiment represented negative performance on the day as the sluggish appearance of Asia-Pacific stocks and declines of the U.S. 10-year Treasury yields tend to highlight the risk-off mood. However, the reason behind the risk-off market bias could be attributed to a combination of factors. Be it the worrisome headlines concerning the Sino-US tussle or the resurgence of the coronavirus. The market trading sentiment has been flashing red since the day started, which ultimately keeps the safe-haven assets supportive on the day. 

At the US-China front, the tensions between the United States and China still do not show any sign of slowing down as the U.S. imposed fresh sanctions on 4-Chinese diplomats over the Hong Kong Security Bill crackdown initially overshadowed the optimism over a potential vaccine and weighed on the market sentiment. Elsewhere, the declines in the equity market were further bolstered after U.S. President Donald Trump’s push to block election results to confuse optimists. 

Despite the risk-off mood, the broad-based U.S. dollar remained depressed. The investors continue to sell U.S. dollars on the back of optimism over a potential vaccine for the highly contagious coronavirus disease. Moreover, the losses in the U.S. dollar could also be associated with political uncertainty in the U.S. Thus, the losses in the U.S. dollar kept the currency pair lower. Meantime, the U.S. Dollar Index, which tracks the greenback against a bucket of other currencies, was down at 92.707.

At the crude oil front, WTI crude oil prices remained well bid around above $41 on the day, backed by the COVID vaccine hopes and the victory of Joe Biden, which boosted the market trading sentiment and demand sentiment the crude oil. Apart from this, China has played a significant role in underpinning global oil demand recovery. They showed that the inventories had declined considerably in recent weeks, indicating the domestic economic recovery. Moreover, the crude oil prices upticks were further boosted after the American Petroleum Institute (API) reported the major draw in crude oil inventories of 5.147 million barrels for the week ending November 6. Thus, the crude oil prices’ upticks underpinned the commodity-linked currency the Loonie and exerted some downside pressure on the currency pair. 


Daily Support and Resistance

S1 1.289

S2 1.2957

S3 1.2995

Pivot Point 1.3023

R1 1.3061

R2 1.3089

R3 1.3156

The USD/CAD pair is consolidating around the 1.3020 area, testing the resistance level of the 1.3033 mark. On the higher side, the bullish breakout of the 1.3033 level can stretch the buying trend until the next resistance level of 1.3098. While on the lower side, the immediate support stays at 1.3000, and below this, the next support is likely to be found around 1.2935 level. Overall, the USD/CAD isn’t moving a lot as traders are enjoying bank holidays in Canada and the U.S. amid Remembrance and Veterans Day. We may have a thin trading volume and volatility in the market today. Good luck!

Categories
Forex Signals

AUD/USD Breaking Over Intraday Resistance Level – Quick Outlook!

The AUD/USD failed to extend its overnight bullish bias and remains on the backfoot after returning from the 8-week high the previous day. The reason for the downbeat market performance could be associated with the latest reports suggesting that Europe’s imposed trade tariff on U.S. goods worth $4 billion. Furthermore, the mixed data from China and Australia exerted an additional burden around the market trading sentiment, which in turn, tempered investors’ appetite for the perceived riskier Australian dollar and contributed to the currency pair declines.

The AUD/USD failed to extend its overnight bullish bias and remains on the backfoot after returning from the 8-week high the previous day. The reason for the downbeat market performance could be associated with the latest reports suggesting that Europe’s imposed trade tariff on U.S. goods worth $4 billion. Furthermore, the mixed data from China and Australia exerted an additional burden around the market trading sentiment, which in turn, tempered investors’ appetite for the perceived riskier Australian dollar and contributed to the currency pair declines.

The AUD/USD failed to extend its overnight bullish bias and remains on the backfoot after returning from the 8-week high the previous day. The reason for the downbeat market performance could be associated with the latest reports suggesting that Europe’s imposed trade tariff on U.S. goods worth $4 billion. Furthermore, the mixed data from China and Australia exerted an additional burden around the market trading sentiment, which in turn, tempered investors’ appetite for the perceived riskier Australian dollar and contributed to the currency pair declines.

Elsewhere, the currency pair’s losses were further bolstered by the on-going fears of rising COVID-19 cases in the U.S. and Europe, which continually fueling worries over the economic recovery and contributes to the currency pair loss. It is worth recalling that Europe still imposing back to back lockdowns restrictions amid surging coronavirus cases. Apart from this, the U.S. registered its 4th consecutive day of over 100,000 new infections and surges from California to the Midwest and the Mexican border.

On the contrary, the prevalent optimism over a potential vaccine for the highly infectious coronavirus disease has become the key factor that helps the market trading sentiment limit its deeper losses.
It is worth recalling that Pfizer experimental vaccine – co-developed with BioNTech – was more than 90% efficient in curbing COVID-19. However, the claim was based on data from the first 94 people infected with the coronavirus in Pfizer’s large-scale clinical trial.

As in result, the greenback failed to gain any positive traction and edged lower on the day as doubts persist over the global economic recovery from COVID-19. Besides this, the mixed market sentiment also played its major role in undermining the safe-haven U.S. dollar. Thus, the U.S. dollar gains become the key factor that kept the currency pair under pressure. Meantime, the U.S. Dollar Index, which tracks the greenback against a bucket of other currencies, was down at 92.707.


Daily Support and Resistance
S1 0.7194
S2 0.7236
S3 0.726
Pivot Point 0.7277
R1 0.7302
R2 0.7319
R3 0.7361

The AUDUSD is consolidating with bullish sentiment at the 0.7283 area, having crossed over an immediate resistance level of 0.7247. For the moment, this AUD/USD is working as a support for the AUD/USD pair. On the higher side, resistance stays at 0.7341 and 0.7411 level today. Bullish bias seems strong; let’s consider taking bullish trades today, especially 0.7220. Good luck!

Categories
Forex Signals

AUD/USD Stops Previous Day Losing Streak Amid Downbeat China CPI, PPI

The AUD/USD failed to extend its overnight bullish bias and remains on the backfoot after returning from the 8-week high the previous day. However, the reason could be traced to China’s weaker than expected inflation data for October, which initially undermined the Australian dollar and contributed to the currency pair losses. Besides this, the reason for the bearish sentiment around the currency pair could also be associated with the U.K. government’s defeat to convince the House of Lords over the necessity to have the rights to edit the Brexit deal by the Tory members. 

The AUD/USD failed to extend its overnight bullish bias and remains on the backfoot after returning from the 8-week high the previous day. However, the reason could be traced to China’s weaker than expected inflation data for October, which initially undermined the Australian dollar and contributed to the currency pair losses. Besides this, the reason for the bearish sentiment around the currency pair could also be associated with the U.K. government’s defeat to convince the House of Lords over the necessity to have the rights to edit the Brexit deal by the Tory members. 

The AUD/USD failed to extend its overnight bullish bias and remains on the backfoot after returning from the 8-week high the previous day. However, the reason could be traced to China’s weaker than expected inflation data for October, which initially undermined the Australian dollar and contributed to the currency pair losses. Besides this, the reason for the bearish sentiment around the currency pair could also be associated with the U.K. government’s defeat to convince the House of Lords over the necessity to have the rights to edit the Brexit deal by the Tory members. 

On the contrary, the hopes of the latest optimism over a potential vaccine for the highly infectious coronavirus disease having earlier boosted the market trading sentiment, which could be regarded as one of the key determinants that help the currency pair to limit its deeper losses. Besides this, the losses in the currency pair were also capped by the fresh optimism of the Australian Prime Minister (PM) Scott Morrison over the Australian economy. Meanwhile, the broad-based U.S. dollar weakness, buoyed by the market mixed mood, could also be considered as a major factor that might cap the further downside momentum for the currency pair.

As we already mentioned that the reason for the currency pair bearish bias could be traced to China’s weaker than expected inflation data for October, which initially undermined the Australian dollar and contributed to the currency pair losses. At the data front, China’s headline CPI decreased below 0.8% against forecast to 0.5% YoY, marking the first below 1.0% print since March 2017, whereas PPI reprints -2.1% figures while defying -2.0% market consensus.

Despite the optimism over a potential treatment/vaccine for the highly infectious virus, the market risk sentiment failed to extend its previous day positive performance and remains depressive during the early Asian session on the day amid a combination of factors. Be it the worrisome headlines concerning Brexit or the tension between the US-China, not to forget the coronavirus issues in the U.S., the market trading sentiment has been flashing red since the Asian session started, which ultimately keeps the perceived riskier Australian dollar under pressure. As per the latest report, the U.S. sanctions four Chinese diplomats over the Hong Kong crackdown. 

Meanwhile, the reason for the losses in the equity market could also be associated with the U.S. dislikes concerning the European tariffs on goods worth $4 billion, as earlier expressed by the U.S. Trade Representative (USTR) Robert Lighthizer. Furthermore, the British House of Lords rejected the Tory government’s proposal to override the Brexit treaty, which also weighed on the market trading sentiment and contributed to the currency pair losses. 

Across the pond, the prevalent worries over the resurgence of the coronavirus pandemic remain on the card as they could ruin the global economic recovery, which keeps the market trading sentiment under pressure and weakened the perceived riskier Australian dollar. The coronavirus COVID-19 cases continue to climb in Europe, U.K., and the U.S. As per the latest report, the coronavirus (COVID-19) cases crossed over 10 million figures in the U.S. as well as 30 million marks from Europe.

Despite the mixed market sentiment, the broad-based U.S. dollar failed to extend its overnight gains and edged lower on the day mostly due to the heavy optimism over the potential vaccine for the highly infectious coronavirus disease. 

On the bullish side, the pharmaceutical giant Pfizer announced Monday that early analysis of its coronavirus vaccine trial suggested the vaccine was robustly effective in preventing COVID-19, which earlier boosted the market trading sentiment and was seen as one of the key factors that capped further downside momentum for the currency pair. However, the coronavirus vaccine hopes got an additional boost after the U.S. Health Official Dr Anthony Fauci said that the vaccine is around the corner while terming Moderna’s vaccine similar to Pfizer’s during an interview with CNN.

At home, Australian Prime Minister (PM) Scott Morrison recently said that the confidence in the economy is recovering, as the country is re-opening from its coronavirus imposed the second lockdown, which ultimately helped the currency pair to limits its deeper losses. In the meantime, the October month data from National Australia Bank (NAB) recorded better than previous predictions but were mostly ignored.

The traders will keep their eyes on U.S. economic calendars, which will highlight the release of the NFIB Small Business Index along with JOLTS Job Openings. Apart from this, the traders will also closely watch the FOMC Member Kaplan and FOMC Member Quarles speeches. In the meantime, the updates surrounding the Brexit trade talks could not lose their importance on the day.


The AUDUSD is consolidating with bullish sentiment at the 0.7283 area, having crossed over an immediate resistance level of 0.7247 level. For the moment, this AUD/USD is working as a support for the AUD/USD pair. On the higher side, resistance stays at 0.7341 and 0.7411 level today. Bullish bias seems strong; let’s consider taking bullish trades today, especially 0.7220. Good luck! 

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Forex Market Analysis

Daily F.X. Analysis, November 10 – Top Trade Setups In Forex – Risk on Market Sentiment! 

On the news front, the eyes will remain on the European German ZEW Economic Sentiment data and the Industrial Production figures from France and Italy. All of the figures are expected to have dropped, which may put bearish pressure on the single currency Euro. Besides this, the eyes will stay on the labor market figures from the United Kindom. 

On the news front, the eyes will remain on the European German ZEW Economic Sentiment data and the Industrial Production figures from France and Italy. All of the figures are expected to have dropped, which may put bearish pressure on the single currency Euro. Besides this, the eyes will stay on the labor market figures from the United Kindom. 

On the news front, the eyes will remain on the European German ZEW Economic Sentiment data and the Industrial Production figures from France and Italy. All of the figures are expected to have dropped, which may put bearish pressure on the single currency Euro. Besides this, the eyes will stay on the labor market figures from the United Kindom. 

Economic Events to Watch Today  

 


 

EUR/USD – Daily Analysis

The EUR/USD pair was closed at 1.18133 after placing a high of 1.19198 and a low of 1.17951. The EUR/USD pair rose to its highest since September 02 on Monday but failed to keep its gains and fell to post losses for the day as the U.S. dollar rallied in the American session as risk appetite took over.

Pfizer and BioNtech announced that their coronavirus vaccine was more than 90% effective in preventing the coronavirus. The news about the vaccine optimism raised the risk sentiment further and pushed the pair to its highest in 9 weeks in earlier sessions on Monday.

Pfizer and BioNtech said they would seek the approval authorization for emergency-use from the U.S. later this month. The optimism around the market raised and supported the EUR/USD pair’s upward movement in earlier trading hours.

A vaccine will likely mean the end of lockdowns and restrictions and hence, a sharp economic comeback. However, it will take up to the second half of next year for the vaccine or vaccines to reach enough people to grant a more normal return to activities. Nevertheless, optimism will prevail.

However, the EUR/USD pair failed to keep its gains for the day and started declining on Monday on the back of Joe Biden’s victory in the U.S. presidential election. The political gridlock in the U.S. Senate could stall the prospect of any fresh package of U.S. fiscal stimulus package that failed to keep the U.S. dollar under pressure and weighed on the EUR/USD pair.

On the data front, at 12:00 GMT, the German Trade Balance for September raised to 17.8B against the expected 17.2B and supported Euro that pushed the EUR/USD pair higher on Monday. AT 14:30 GMT, the Sentix Investor Confidence for October came in as -10.0 against the forecasted -15.0 and supported Euro.

Moreover, the European Central Bank (ECB) President Christine Lagarde refrained from touching upon monetary policy in her scheduled speech at the Green Horizon Summit on Monday. She only talked about climate risks and said that the economic challenges of climate transition were phenomenal. The main driver of the EUR/USD pair remained the strength of the U.S. dollar triggered by the faded hopes of additional stimulus measures as the vaccine news raised optimism about the economic recovery.

Daily Technical Levels

Support   Resistance

1.1766      1.1891

1.1717      1.1969

1.1640      1.2017

Pivot point: 1.1843

EUR/USD– Trading Tip

The EUR/USD is trading bullish at the 1.1833 level amid a stronger U.S. dollar. The pair may now head higher until an immediate resistance level of 1.1883. On the 4 hour timeframe, the EUR/USD has formed an upward channel supporting the pair at the 1.18016 level. On the higher side, a bullish crossover of 1.1883 level can extend the buying trend until the 1.1945 area. The MACD entered the oversold zone and now suggesting odds of bullish trend continuation; therefore, we should look for a buying trade over the 1.1801 level.  

GBP/USD – Daily Analysis

The GBP/USD pair was closed at 1.31634 after a high of 1.32081 and a low of 1.31183. Despite higher market sentiment and weaker safe-haven demand on Monday, the British Pound to U.S. dollar exchange rate has been under pressure. The Sterling remained weak despite the increased market sentiment from the news of coronavirus vaccine efficiency.

Pfizer and the BioNtech announced that their vaccine had been proved more than 90% efficient in preventing the coronavirus on Monday. Both companies also said they would be taking approval from the U.S. for the vaccine’s emergency-use later this month. After this news, risk appetite increased in the market, and global equities raised; however, the risk perceived GBP/USD pair remained under pressure on Monday as British Pound was weak due to Biden victory in the U.S. elections.

Joe Biden’s victory decreased the hopes for the U.K. & U.S. post-Brexit trade deal as Joe Biden has already said that if U.K. fails to reach a deal with the E.U., then the US-UK deal will also be jeopardized. As there was no news regarding the progress made in the U.K. & E.U. talks, the British Pound came under fresh pressure after Joe Biden became the U.S.

Meanwhile, on Monday, the governor of Bank of England, Andrew Bailey, explained that what the BoE was doing to ensure the financial system plays its part in tackling climate change. He warned that climate change was a bigger risk than coronavirus. Furthermore, the chief economist from the Bank of England, Andy Haldane, said that a breakthrough in developing a coronavirus vaccine could deliver a vital boost of confidence to consumers and businesses. He added that the economy might have reached a decisive moment after the pharmaceutical company Pfizer announced that its coronavirus vaccine candidate was 90% effective.

He also said that the vaccine could be a game-changer for the economy. He cautioned that it would take several months for the vaccine to be rolled out but would have an immediate effect on consumer and business confidence. He added that the economic cycle would start again as it would unlock the business investments, and the economy will start recovering. The GBP/USD pair remained a little bullish due to high pressure on British Pound on Monday.

Daily Technical Levels

Support   Resistance

1.2997      1.3222

1.2851      1.3301

1.2771      1.3448

Pivot point: 1.3076

GBP/USD– Trading Tip

The GBP/USD is trading with a strong bullish bias due to a stronger Sterling 1.3191 area. The pair has violated the intraday resistance level at 1.3159, which is now working as a support for Sterling. On the higher side, the continuation of an upward trend can lead to the GBP/USD pair until the 1.3226 area. The cable had violated the descending triangle pattern, and ever since, it’s trading with a bullish bias. 

USD/JPY – Daily Analysis

The USD/JPY pair was closed at 105.388 after placing a high of 105.645 and a low of 103.187. The USD/JPY pair surged past the 105.6 level on Monday after the risk-on market sentiment raised and weighed on the Japanese Yen. The safe-haven Japanese Yen came under fresh pressure after the Pfizer and its German partner BioNtech announced that their vaccine candidate was proved more than 90% efficient in its last-stage trials. Both companies announced that they would seek U.S. approval for the emergency-use of vaccine later this month.

The pair USD/JPY witnessed a sharp rise in its prices of almost 3-4% on Monday after the vaccine optimism raised the risk appetite in the market that weighed heavily on the safe-haven Japanese Yen. This ultimately pushed the USD/JPY pair to the highest level since October 20.

The gains in USD/JPY pair were also supported by the victory of Democratic Joe Biden in U.S. elections. Biden was expected to deliver a massive stimulus package that had been weighing on the U.S. dollar. Still, after the news of vaccine development and its efficiency, the need for the massive stimulus package dropped and raised the U.S. dollar onboard. The rising U.S. dollar also helped the USD/JPY pair to post massive gains on Monday.

Meanwhile, on Monday, the Bank of Japan released the Summary of opinions that stated that one member said that the bank needs to ensure its purchases of exchange-traded funds are sustainable. Other members said that BOJ must be ready to ramp up stimulus to cushion the economic blow from the coronavirus pandemic.

On Monday, the Cleveland Federal Reserve Bank President Loretta Mester said that the emergency lending programs the Fed set up during the coronavirus pandemic had reduced distress in financial markets. She also said that there was still a need for lending programs. Mester also said that Fed Chair Jerome Powell would be working with the Treasury Department to determine if the programs should be extended beyond the end of the year. She also stated that the Fed was not out of ammunition to stimulate the economy and that the Fed could provide more accommodation by adjusting its asset purchase program and using other tools.

She said that the economy recovered more strongly than expected, but gains have not been evenly spread. Mester said that economic growth would be more slowly despite the optimistic news about the vaccine on Monday. These comments kept the markets under pressure and capped further gains in the USD/JPY pair.

Daily Technical Levels

Support   Resistance

103.82      106.29

102.27      107.21

101.35      108.75

Pivot point: 104.74

USD/JPY – Trading Tips

The USD/JPY has violated the descending trendline at 104.950 area, and on the lower side, it’s testing the support area of 104.840 level. The USD/JPY pair has recently entered the overbought zone, and now investors may experience a bearish correction in the market. To see a bearish retracement, the USD/JPY pair needs to violate the 104.900 level. Below this, we may see the USD/JPY pair falling until the 104.220 level, and a further breakout can lead it towards 102.400, which seems a bit hard. However, we may see buying over 104.950 levels today until 105.600. Good luck! 

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Forex Signals

USD/CAD Downward Channel Continues to Play – Brace for Selling!

The USD/CAD pair was closed at 1.30072 after placing a high of 1.30519 and a low of 1.29281. The USD/CAD pair slipped to its lowest since mid-October 2018 on Monday as the risk appetite increased and weighed on the safe-haven US dollar that ultimately dragged the USD/CAD pair lower.

The USD/CAD pair was closed at 1.30072 after placing a high of 1.30519 and a low of 1.29281. The USD/CAD pair slipped to its lowest since mid-October 2018 on Monday as the risk appetite increased and weighed on the safe-haven US dollar that ultimately dragged the USD/CAD pair lower.

The USD/CAD pair was closed at 1.30072 after placing a high of 1.30519 and a low of 1.29281. The USD/CAD pair slipped to its lowest since mid-October 2018 on Monday as the risk appetite increased and weighed on the safe-haven US dollar that ultimately dragged the USD/CAD pair lower.
On Monday, the primary driver of the USD/CAD was the WTI Crude Oil prices that rose to $41.32 per barrel on the day after the optimism regarding the vaccine development raised in the market. The hopes for economic recovery were also raised as the vaccine news increased the chances of removing lockdowns and restrictions from the countries across the globe.

On Monday, Pfizer in collaboration with the BioNtech, announced together that their vaccine had proven 90% efficient in preventing the infection of coronavirus in its last stage clinical trials. They said that they would seek approval for their vaccine’s emergency use from the US later this month.

This news raised the risk sentiment and decreased the need for lockdowns weighing on the oil prices due to decreased demand during lockdowns. The crude oil prices surged and placed high gains on Monday that gave strength to commodity-linked Loonie that ultimately weighed heavily on the USD/CAD pair.

However, most of its daily losses were recovered after the US dollar rebounded on the hopes of no need for further stimulus measures as the vaccine had been developed. The US dollar strength drove the USD/CAD pair higher and recovered most of its daily losses. There were no macroeconomic releases from both sides s the pair continued following Pfizer and BioNtech’s latest announcement regarding vaccine development.


Daily technical Levels
Support Resistance
1.2932 1.3076
1.2857 1.3145
1.2788 1.3220
Pivot point: 1.3001

The USD/CAD pair is consolidating with a selling bias beneath the 1.3007 zones, disrupting the support region of the 1.3025 mark. On the downside, the bearish breakout of the 1.3025 level can extend selling bias until the 1.29720 level. Continuation of a selling bias can help us capture a quick sell trade until the 1.2972 area. So far, the MACD and EMA are neutral as the market lacks volatility. But we can expect some price action during the European session. Let’s brace for it. Good luck!

Categories
Forex Signals

Oversold USD/JPY Braces for a Bullish Correction – Quick Update on Signal!

The USD/JPY pair was closed at 103.364 after placing a high of 103.758 and a low of 103.174. The USD/JPY pair was dropped to its lowest since 8th March. The U.S. dollar against the Japanese Yen on Friday dragged the pair to a fresh 8-months lowest level as the chances for Joe Biden to win the U.S. election increases. The USD/JPY pair followed the USD weakness throughout the week and reached the 103 level.

The USD/JPY pair was closed at 103.364 after placing a high of 103.758 and a low of 103.174. The USD/JPY pair was dropped to its lowest since 8th March. The U.S. dollar against the Japanese Yen on Friday dragged the pair to a fresh 8-months lowest level as the chances for Joe Biden to win the U.S. election increases. The USD/JPY pair followed the USD weakness throughout the week and reached the 103 level.

The USD/JPY pair was closed at 103.364 after placing a high of 103.758 and a low of 103.174. The USD/JPY pair was dropped to its lowest since 8th March. The U.S. dollar against the Japanese Yen on Friday dragged the pair to a fresh 8-months lowest level as the chances for Joe Biden to win the U.S. election increases. The USD/JPY pair followed the USD weakness throughout the week and reached the 103 level.

The investors have welcomed a Democrat government’s prospects with a split congress where Republicans can block initiatives to raise taxes or introduce tighter regulations with a risk rally that sent the safe-haven U.S. dollar to multi-month lows against its main rivals.

On the data front, at 04:30 GMT, the Average Cash Earning for the year came in as -0.9% against the forecasted -1.1% and supported the Japanese Yen and added further losses in the USD/JPY pair. The Household Spending for the year came in as -10.2% against the expected -10.5% and supported the Japanese Yen that added further weakness in the currency pair USD/JPY.

From the U.S. side, at 18:30 GMT, Average Hourly Earnings from the U.S. for October weakened to 0.1% from the anticipated 0.2% and weighed on the U.S. dollar added further losses in the USD/JPY pair. The Non-Farm Employment Change for October surged to 638K against the anticipated 595K and supported the U.S. dollar, and capped further losses in the USD/JPY pair. In October, the Unemployment Rate from the U.S. weakened to 6.9%from the anticipated 7.7% and supported the U.S. dollar. At 20:00 GMT, the Final Wholesale Inventories for September came in as 0.4% against the anticipated -0.1% and weighed on the U.S. dollar and dragged the pair USD?JPY to the multi-month lowest level.


The USD/JPY has violated the descending triangle pattern at 104.149 area, and on the lower side, it’s testing the support area of 103.270 level. Recently the closing of bullish engulfing patterns may drive an upward movement in the market. On the higher side, the USD/JPY can go after the next 103.850 mark. On the flip side, violation of the 103.215 level can extend selling until the 102.750 mark. The MACD is also showing oversold sentiment among investors; therefore, we should look for a bullish trade over 103.270 and selling below the 103.830 level today.

Entry Price – Buy 1912.42
Stop Loss – 1906.42
Take Profit – 1919.92
Risk to Reward – 1:1.25
Profit & Loss Per Standard Lot = -$600/ +$750
Profit & Loss Per Micro Lot = -$60/ +$75
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Forex Signals

AUD/USD Succeeded to Stop Its Overnight Losses – Combination Of Factors in Play! 

During Monday’s early Asian trading session, the AUD/USD currency pair succeeded to stop its overnight losing streak and caught some sharp bids around above mid-0.7200 level mainly due to the risk-on market sentiment, which tend to support the observed risk currency Australian dollar and offers to the currency pair gains. Therefore, Democratic candidate Joe Biden’s victory in the U.S. presidential elections was supported by the market trading bias. Aside from this, the market trading sentiment was further supported by Brexit’s confidence, which boosted the currency pair. Across the pond, the broad-based U.S. dollar selling bias, triggered by the marker risk-on sentiment, also played its major role in supporting the currency pair. 

During Monday’s early Asian trading session, the AUD/USD currency pair succeeded to stop its overnight losing streak and caught some sharp bids around above mid-0.7200 level mainly due to the risk-on market sentiment, which tend to support the observed risk currency Australian dollar and offers to the currency pair gains. Therefore, Democratic candidate Joe Biden’s victory in the U.S. presidential elections was supported by the market trading bias. Aside from this, the market trading sentiment was further supported by Brexit’s confidence, which boosted the currency pair. Across the pond, the broad-based U.S. dollar selling bias, triggered by the marker risk-on sentiment, also played its major role in supporting the currency pair. 

During Monday’s early Asian trading session, the AUD/USD currency pair succeeded to stop its overnight losing streak and caught some sharp bids around above mid-0.7200 level mainly due to the risk-on market sentiment, which tend to support the observed risk currency Australian dollar and offers to the currency pair gains. Therefore, Democratic candidate Joe Biden’s victory in the U.S. presidential elections was supported by the market trading bias. Aside from this, the market trading sentiment was further supported by Brexit’s confidence, which boosted the currency pair. Across the pond, the broad-based U.S. dollar selling bias, triggered by the marker risk-on sentiment, also played its major role in supporting the currency pair. 

Moreover, the U.S. dollar losses were further bolstered by the intensifying doubts over the U.S. economic recovery as U.S. total coronavirus cases surpass 10 million. On the contrary, the long-lasting coronavirus woes in the U.S. and Europe and Trump’s challenges to the election results keep challenging the upbeat market sentiment, which becomes the key factor that kept the lid on any additional gains in the currency pair. The AUD/USD is trading at 0.7269 and consolidating in the range between 0.7268 – 0.7290.

Despite the doubts over the global economic recovery from intensifying coronavirus (COVID-19) woes in the U.S. and Europe, the market trading sentiment ticked up to the 4-week high at the start of the week’s trading and remained supportive by the Democratic candidate Joe Biden’s victory in the U.S. presidential elections. Despite many lawsuits filed by the Trump administration against the result of the presidential election, the market traders still believe that the Republican member will not keep the White House leadership. Although, the optimism surrounding the Bidden victory was further bolstered after the JPMorgan Chief Executive Jamie Dimon said that “We must respect the results of the U.S. presidential election and, as we have with every election, honor the decision of the voters and support a peaceful transition of power.” However, this helped the market’s risk sentiment and undermined the U.S. dollar’s safe-haven demand.

Across the ocean, bullish sentiment around the equity market was further bolstered by the optimism concerning Brexit, which was recently triggered after the European Union’s (E.U.) Brexit negotiator Michel Barnier recently said that he is pleased to be back in London for Brexit talks.

On the contrary, the intensifying coronavirus woes in the U.S. and Europe and intensifying lockdowns restrictions in Europe keep challenging the upbeat market sentiment and become the key factor that kept the lid on any additional gains in the currency pair. As per the latest report, the coronavirus cases (COVID-19) have exceeded 50 million globally over the weekend. At the same time, the number of infections in Europe was registered approximately 300K in one day. At the U.S. front, the U.S. reported a record rise in coronavirus cases for a 4th-consecutive day with at least 131,420 new infections, bringing the country’s total count to around 9.91 million. Simultaneously, the number of deaths in the U.S. was more than 1,000 for a 5th-consecutive day. It is also worth mentioning that 242,230 people have died from the infection in the U.S., and 6,391,208 have recovered so far. Considering the current coronavirus condition in Europe, the major Europeans like Germany and France have imposed severe restrictions to try controlling the spread. 


Moving ahead, the market traders will keep their eyes on the U.S. economic calendar, which highlights updates on inflation and consumer confidence along with Thursday’s report on initial jobless claims. In the meantime, the Brexit trade talks’ updates could not lose their importance on the day.

The AUD/USD consolidates with bullish sentiment at the 0.7294 area, facing a solid resistance at the 0.7294 level extended by a triple top pattern. On the higher side, the upward breakout can drive the buying drift to the 0.7346 mark. Alongside this, the support extends to operate at the 0.7220 mark today. The MACD trades with a mixed bias; nevertheless, it can adapt bullish if AUD/USD runs to crossover 0.7295 mark. Good luck!

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Forex Signals

USD/CAD Breaking Underneath Double Bottom Support – Brace for Sell! 

The USD/CAD pair was closed at 1.30589 after placing a high of 1.30967 and a low of 1.30192. The USD/CAD fell to its lowest since 1st September on Friday before rising and posting gains for the day.

The USD/CAD pair was closed at 1.30589 after placing a high of 1.30967 and a low of 1.30192. The USD/CAD fell to its lowest since 1st September on Friday before rising and posting gains for the day.

The USD/CAD pair was closed at 1.30589 after placing a high of 1.30967 and a low of 1.30192. The USD/CAD fell to its lowest since 1st September on Friday before rising and posting gains for the day.

After posting sharp losses for the previous four days, the USD/CAD pair reversed and posted gains on Friday despite the broad-based US dollar weakness. The main driver of the USD/CAD pair on Friday was the Crude oil prices.

The WTI Crude Oil prices declined to $37.06 per barrel on Friday amid the rising number of lockdown restrictions from the European nations and other countries. The resurgence of the second wave of coronavirus forced governments to re-impose restrictions, raising concerns for oil prices.

As the previous lockdowns decreased the crude oil prices to its lowest level in history, the same fears emerged in the market after the second wave of virus escalated. These lingering fears kept the crude oil prices under pressure and weighed on commodity-linked Loonie that ultimately pushed the USD/CAD pair on the higher side.

On the data front, at 18:30 GMT, the Employment Change from Canada for October rose to 83.6K against the forecasted 59.0K and supported the Canadian dollar and capped further upside of the USD/CAD pair. The Unemployment Rate from Canada for October also declined to 8.9% from the forecasted 9.0% and supported the Canadian dollar. At 20:00 GMT, the Ivey PM for October from Canada declined to 54.2 against the projected 55.2 and weighed on the Canadian dollar and supported the USD/CAD pair’s gains on Friday.

From the US side, at 18:30 GMT, Average Hourly Earnings from the US for October fell to 0.1% from the predicted 0.2% and weighed on the US dollar and capped further gains in the USD/CAD pair. For October, the Non-Farm Employment Change rose to 638K against the predicted 595K and supported the US dollar and pushed the pair USD/CAD further on the upside. The Unemployment Rate from the US in October dropped to 6.9%from the predicted 7.7% and supported the US dollar. At 20:00 GMT, the Final Wholesale Inventories for September came in as 0.4% against the expected -0.1% and weighed on the US dollar.

Meanwhile, the US dollar was weak across the board due to the chances of Joe Biden’s victory in US elections on Friday as he was expected to deliver a larger stimulus package. However, the US dollar weakness only affected the pair in an early trading hour at the ending day of the week and failed to impact the USD/CAD pair’s prices in a late trading hour due to declining crude oil prices.


Daily Technical Levels

Support Resistance

1.2989 1.3142

1.2931 1.3237

1.2836 1.3295

Pivot point: 1.3084

The USD/CAD pair is trading with a selling bias below the 1.3007 area, having violated the support area of the 1.3025 level. On the lower side, the bearish breakout of the 1.3025 level can extend selling bias until the 1.29720 level. Continuation of a selling bias can help us capture a quick sell trade until the 1.2972 area. So far, the MACD and EMA are neutral as the market lacks volatility. But we can expect some price action during the European session. Let’s brace for it. Good luck! 

Categories
Forex Market Analysis

Daily F.X. Analysis, November 09 – Top Trade Setups In Forex – BOE Gov Bailey Speaks! 

On the news front, the investor’s focus is likely to stay on the German Trade Balance, and the ECB President Lagarde Speaks ahead of the BOE Gov Bailey Speech during the European session today. German Trade Balance is forecasted to improve from 15.7B to 17.2B, and it may help support the Euro as a single currency. While the ECB President Lagarde and BOE Bailey is scheduled to speak at Green Horizon Summit via satellite.

On the news front, the investor’s focus is likely to stay on the German Trade Balance, and the ECB President Lagarde Speaks ahead of the BOE Gov Bailey Speech during the European session today. German Trade Balance is forecasted to improve from 15.7B to 17.2B, and it may help support the Euro as a single currency. While the ECB President Lagarde and BOE Bailey is scheduled to speak at Green Horizon Summit via satellite.

On the news front, the investor’s focus is likely to stay on the German Trade Balance, and the ECB President Lagarde Speaks ahead of the BOE Gov Bailey Speech during the European session today. German Trade Balance is forecasted to improve from 15.7B to 17.2B, and it may help support the Euro as a single currency, while the ECB President Lagarde and BOE Bailey is scheduled to speak at Green Horizon Summit via satellite.

Economic Events to Watch Today  

 

EUR/USD – Daily Analysis

The EUR/USD pair was closed at 1.18746 after placing a high of 1.18907 and a low of 1.17952. The EUR/USD pair was rose to its highest level since September 15 on Friday. The EUR/USD pair has been holding onto gains as the markets were following the U.S. elections. The lead of Democratic Joe Biden in U.S. elections kept the U.S. dollar under pressure and supported the EUR/USD pair’s bullish momentum.

The safe-haven dollar remained on the back foot throughout the week and pushed the riskier EUR/USD pair to its multi week’s highest level. The greenback was also weak due to the dovish decision by Federal Reserve this week. The Federal Reserve Chairman, Jerome Powell, said that the pace of the recovery was moderated and that fed has discussed the bond-buying scheme. He also showed his concerns about the resurgence of coronavirus in the U.S. and all over the globe and urged lawmakers to act.

On the data front, at 12:00 GMT, the German Industrial Production for September declined to 1.6% from the forecasted 2.6% and weighed on Euro. At 12:45 GMT, the French Prelim Private Payrolls for the quarter raised to 1.8% from the forecasted 0.2% and supported Euro that added in the gains of EUR/USD pair. The French Trade Balance for September came in as -5.7B against the expected -6.9B and supported Euro. At 14:00 GMT, the Italian Retail Sales for September came in as -0.8%against the expected -1.5% and supported Euro and pushed EUR/USD pair higher.

At 18:30 GMT, Average Hourly Earnings from the U.S. for October dropped to 0.1% from the projected 0.2% and weighed on the U.S. dollar and supported the upward trend of the EUR/USD pair. The Non-Farm Employment Change for October elevated to 638K against the predictable 595K and supported the U.S. dollar. In October, the Unemployment Rate from the U.S. dropped to 6.9%from the projected 7.7% and supported the U.S. dollar. At 20:00 GMT, the Final Wholesale Inventories for September came in as 0.4% against the expected -0.1% and weighed on the U.S. dollar that ultimately added strength in the EUR/USD pair on Friday.

The COVID-19 cases have been continuously rising on both sides, Europe and the USA, and once the U.S. elections settle, the par could see a decline in its prices.

The focus of market participants was only on the U.S. election, where over the weekend, the Democratic Joe Biden won the presidency of the United States and became 46th President of the USA. Despite the lawsuits claiming electoral fraud, Biden was elected as U.S. President and weighed on the U.S. dollar that ultimately will help the EUR/USD pair to post further gains.

Daily Technical Levels

Support    Resistance

1.1733      1.1884

1.1647      1.1947

1.1583      1.2034

Pivot point: 1.1797

EUR/USD– Trading Tip

The EUR/USD is trading bullish at the 1.1890 level amid a weaker U.S. dollar. The pair may head further higher until the 1.1945 level, having immediate support at the 1.18826 level. On the 4 hour timeframe, the EUR/USD has violated the double top resistance level of 1.1882 level, which may lead the EUR/USD pair further higher until the 1.1945 mark. The MACD supports buying; therefore, we should look for a buying trade over the 1.1880 level.  

GBP/USD – Daily Analysis

The GBP/USD pair was closed at 1.31474 after placing a high of 131770 and a low of 1.30924. The GBP/USD pair rose to its highest since September 07 on Friday despite the better than expected Unemployment rate and NFP data from the U.S.

The market’s focus was shifted to the U.S. Election results that were showing a Democratic lead; it weighed on the U.S. dollar and contributed to the GBP/USD pair’s gains. The strong Employment figures also failed to improve the mood around the U.S. dollar as investors were not impressed by it, and they continued following the U.S. election results.

Over the weekend, Joe Biden won 290 Electoral College votes against Donald Trump’s 214 that confirmed Biden’s victory as the candidate should secure at least 270 Electoral College votes to win the presidency.

On the data front, at 13:30 GMT, the Halifax Housing Price Index for October declined to 0.3% against the forecasted 1.0% and weighed on British Pound and capped further gains in GBP/USD pair.

On the U.S. front, at 18:30 GMT, Average Hourly Earnings from the U.S. for October fell to 0.1% from the estimated 0.2% and weighed on the U.S. dollar and supported the upward trend of the GBP/USD pair. The Non-Farm Employment Change for October rose to 638K against the estimated 595K and supported the U.S. dollar. In October, the Unemployment Rate from the U.S. fell to 6.9%from the estimated 7.7% and supported the U.S. dollar. At 20:00 GMT, the Final Wholesale Inventories for September came in as 0.4% against the estimated -0.1% and weighed on the U.S. dollar and provided strength to the GBP/USD pair.

The improved employment figures from the U.S. failed to give any strength to the falling U.S. dollar on Friday as the focus of traders was only towards the U.S. election results leading Joe Biden over Donald Trump. Whereas, on the Brexit front, the UK PM Boris Johnson will be under greater pressure to strike a Brexit deal with the E.U. as Joe Biden has won the presidency. It is because a no-deal Brexit could seriously threaten relations with a new Democratic administration.

Joe Biden has already made it clear that there will be no agreement on a post-Brexit UK-US trade deal if the U.K. disagreed with the E.U. The talks between E.U. & U.K. officials were continued throughout the week, and the result of those talks has not been published yet. The market’s focus will be shifted towards economic data and other fundamentals rather than on U.S. elections in the coming week as the uncertainty regarding the U.S. election has faded away.

Daily Technical Levels

Support    Resistance

1.2997      1.3222

1.2851      1.3301

1.2771      1.3448

Pivot point: 1.3076

GBP/USD– Trading Tip

The GBP/USD is also trading with a strong bullish bias due to a weaker dollar in the 1.3181 area. The pair has violated the intraday resistance level at 1.3159, which is now working as a support for Sterling. On the higher side, the continuation of an upward trend can lead the GBP/USD pair until the 1.3226 area. The cable had violated the descending triangle pattern, and ever since, it’s trading with a bullish bias. 

USD/JPY – Daily Analysis

The USD/JPY pair was closed at 103.364 after placing a high of 103.758 and a low of 103.174. The USD/JPY pair was dropped to its lowest since 8th March. The U.S. dollar against the Japanese Yen on Friday dragged the pair to a fresh 8-months lowest level as the chances for Joe Biden to win the U.S. election increases. The USD/JPY pair followed the USD weakness throughout the week and reached the 103 level.

The investors have welcomed a Democrat government’s prospects with a split congress where Republicans can block initiatives to raise taxes or introduce tighter regulations with a risk rally that sent the safe-haven U.S. dollar to multi-month lows against its main rivals.

On the data front, at 04:30 GMT, the Average Cash Earning for the year came in as -0.9% against the forecasted -1.1% and supported the Japanese Yen and added further losses in the USD/JPY pair. The Household Spending for the year came in as -10.2% against the expected -10.5% and supported the Japanese Yen that added further weakness in the currency pair USD/JPY.

From the U.S. side, at 18:30 GMT, Average Hourly Earnings from the U.S. for October weakened to 0.1% from the anticipated 0.2% and weighed on the U.S. dollar added further losses in the USD/JPY pair. The Non-Farm Employment Change for October surged to 638K against the anticipated 595K and supported the U.S. dollar, and capped further losses in the USD/JPY pair. In October, the Unemployment Rate from the U.S. weakened to 6.9%from the anticipated 7.7% and supported the U.S. dollar. At 20:00 GMT, the Final Wholesale Inventories for September came in as 0.4% against the anticipated -0.1% and weighed on the U.S. dollar and dragged the pair USD?JPY to the multi-month lowest level.

The USD/JPY pair’s main driver at the ending day of the week remained the U.S. dollar weakness due to Biden’s prospects in U.S. elections. Over the weekend, the results showed that Biden won 290 Electoral College votes compared to Trump’s 214 and became the 46th President of the U.S. Biden is expected to deliver a larger stimulus package, and the markets were following these hopes that could lead further to the downside of the safe-haven U.S. dollar.

Daily Technical Levels

Support    Resistance

103.09      104.22

102.70      104.95

101.97      105.34

Pivot point: 103.83

USD/JPY – Trading Tips

The USD/JPY has violated the descending triangle pattern at 104.149 area, and on the lower side, it’s testing the support area of 103.270 level. Recently the closing of bullish engulfing patterns may drive an upward movement in the market. On the higher side, the USD/JPY can go after the next 103.850 mark. On the flip side, violation of the 103.215 level can extend selling until the 102.750 mark. The MACD is also showing oversold sentiment among investors; therefore, we should look for a bullish trade over 103.270 and selling below the 103.830 level today. Good luck! 

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Forex Signals

AUD/USD Bullish Channel Support Assie – Quick Update

The AUD/USD currency pair failed to extend its previous day bullish moves and took fresh offers near below the 0.7250 level mainly due to prevalent risk-off market sentiment, triggered by the worsening coronavirus (COVID-19) conditions in the U.S. and the U.K., which exerted some selling pressure on the perceived riskier Aussie and dragged the currency pair below 0.7000 marks. 

The AUD/USD currency pair failed to extend its previous day bullish moves and took fresh offers near below the 0.7250 level mainly due to prevalent risk-off market sentiment, triggered by the worsening coronavirus (COVID-19) conditions in the U.S. and the U.K., which exerted some selling pressure on the perceived riskier Aussie and dragged the currency pair below 0.7000 marks. 

AUD/USD Bullish Channel Support Assie – Quick Update

The AUD/USD currency pair failed to extend its previous day bullish moves and took fresh offers near below the 0.7250 level mainly due to prevalent risk-off market sentiment, triggered by the worsening coronavirus (COVID-19) conditions in the U.S. and the U.K., which exerted some selling pressure on the perceived riskier Aussie and dragged the currency pair below 0.7000 marks. 

However, the global risk sentiment was further pressured by the uncertainty surrounding the U.S. election, triggered by the rumors concerning the delay in U.S. election results until January. On the other hand, the broad-based U.S. dollar fresh strength, backed by the risk-off market sentiment, has also played its major role in undermining the currency pair. 

On the contrary, the currency pair’s losses were capped by the RBA’s monetary policy statement, in which the RBA explicitly calling out no further reduction in interest rates, which tend to underpin the Australian dollar and helps the currency pair to limit its deeper losses. At the moment, the AUD/USD currency pair is currently trading at 0.7255 and consolidating in the range between 0.7250 – 0.7285.

The market trading sentiment remains depressed during the early Asian trading session due to the second wave of coronavirus infections in the U.S. and the U.K. getting worse day by day. As per the latest report, there are 109,000 new COVID-19 cases from the U.S. so far. Thus, these figures marked the second day in a row with over 100,000 new cases after beating Wednesday’s daily record.

Additionally, the long-lasting inability to pass the U.S. fiscal package, as well as the jitters of the American presidential election also weighed on the risk sentiment, which eventually undermined the perceived riskier Australian dollar and contributed to the currency pair gains.

Despite Democratic candidate Joe Biden’s heavy role in the electoral votes, currently around 260 counts against 270 required, the U.S. election results still not showing any decision. However, the reason could be attributed to President Donald Trump’s lawsuits against multiple states. As per the latest report from Pennsylvania, Trump’s lead getting narrowed over the democratic rival Biden.

Despite this, the broad-based U.S. dollar succeeded in stopping its last session losses and took some fresh bids during Friday’s Asian session as investors started to prefer the safe-haven assets in the wake of the risk-off market sentiment. However, the U.S. dollar gains seem rather unaffected by the downbeat comments from the Fed Chair Jerome Powell. On the other hand, the U.S. dollar gains were also capped by the prevalent worries over the U.S. economic recovery amid the reappearance of coronavirus cases, which could be bad for both the U.S. and the global economy. However, the U.S. dollar gains become the key factor that kept the currency pair under pressure. Simultaneously, the U.S. Dollar Index that tracks the greenback against a basket of other currencies recovered to 92.698.

The Fed has performed as broadly expected, maintaining its benchmark interest rate at the 0%-0.25% range and its bond-buying program unchanged. In the meantime, he showed readiness to fulfill its pledge to support the U.S. economy, “promoting its maximum employment and price stability goals in times of the COVID-19 pandemic.

At home, the currency pair’s losses were capped by the RBA’s monetary policy statement, in which the RBA indicated for no further reduction in interest rates, which tend to underpin the Australian dollar and helps the currency pair to limit its deeper losses.

Moving ahead, the market traders will keep their eyes on the American employment numbers for October., USD price dynamics, and coronavirus headlines, which could give a fresh direction for the currency pair. In the meantime, the updates surrounding the U.S. elections could not lose their importance on the day.


Daily Support and Resistance

S1 0.6867

S2 0.7007

S3 0.7094

Pivot Point 0.7146

R1 0.7233

R2 0.7286

R3 0.7426

The AUD/USD traded distinctly bullish at the 0.7262 area, with a critical resistance of 0.7282 and 0.7335. In the daily chart, the AUD/USD has established a substantial buying candle, conferring substantial bullish sentiment among investors. While on the lower side, the support can be seen around the 0.7230 mark. Bullish sentiment rules the market. Good luck! 

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Forex Signals

USD/CAD Bearish Price Action Continues – Downward Channel In Play! 

The USD/CAD pair was closed at 1.30425 after placing a high of 1.31781 and a low of 1.30280. The USD/CAD pair dropped to its lowest since 1st September on the back of U.S. dollar weakness triggered by the expectations of Biden victory in the U.S. presidential elections.

The USD/CAD pair was closed at 1.30425 after placing a high of 1.31781 and a low of 1.30280. The USD/CAD pair dropped to its lowest since 1st September on the back of U.S. dollar weakness triggered by the expectations of Biden victory in the U.S. presidential elections.

The USD/CAD pair was closed at 1.30425 after placing a high of 1.31781 and a low of 1.30280. The USD/CAD pair dropped to its lowest since 1st September on the back of U.S. dollar weakness triggered by the expectations of Biden victory in the U.S. presidential elections.

The pair USD/CAD failed to capitalize its early daily gains and fell to its two months lowest level as the selling bias surrounding the U.S. dollar intensified. The greenback was weak due to the U.S. residential Election’s delayed outcome, where Democrat candidate Joe Biden was leading over the incumbent Donald Trump.

However, the final results are yet to announce as Donald Trump has already filed lawsuits against the counting of votes in key battleground states that added to the uncertainty and dampened prospects for a big stimulus package to aid the COVID-19 hit economy. It added further losses in the U.S. Treasury bond yields and contributed to the losses of the USD/JPY pair. Meanwhile, the USD/JPY pair’s downward momentum was cushioned on the back of fresh losses in crude oil prices that tend to undermine the commodity-linked Loonie. The weak Loonie then capped further losses in the USD/CAD pair on Thursday.

The crude oil prices are expected to decrease further in the coming days as the concerns about the renewed lockdown measures to curb the second wave of coronavirus infections were increasing.

On the data front, at 17: 30 GMT, the Challenger Job Cuts for the year came in as 60.4% in comparison to the previous 185.9% from the U.S. At 18:30 GMT, the Unemployment Claims for the last week surged to 751K against the projected 740K and weighed on the U.S. dollar, and added USD/CAD pair losses. The Prelim Nonfarm Productivity for the quarter surged to 4.9% against the projected 3.6% and weighed on the U.S. dollar.

At 18:32 GMT, the Prelim Unit Labor Costs for the quarter came in as -8.9% against the estimated -10.0% and supported the U.S. dollar.

Furthermore, the U.S. dollar was also weak across the board after releasing the Federal Reserve’s latest announcement to keep the interest rates and assets purchases on the same level. This selling bias in the U.S. dollar added further losses in the USD/CAD pair on Thursday.


Daily Technical Levels

Support Resistance

1.2989 1.3142

1.2931 1.3237

1.2836 1.3295

Pivot point: 1.3084

The USD/CAD is trading with a selling bias at the 1.3061 level, having an immediate resistance at 1.3097 along with support at the 1.3030 level. Violation of 1.3030 level can extend selling until 1.2970 level. The downward channel is also putting pressure on the downward trend; therefore, we should look for selling trades below the 1.3090 level today. Good luck! 

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Forex Market Analysis

Daily F.X. Analysis, November 06– Top Trade Setups In Forex – NFP Figures 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 661K to 595K 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.

The eyes will remain on the U.S. NFP data on the news side, which is expected to report a slight drop from 661K to 595K 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.

The eyes will remain on the U.S. NFP data on the news side, which is expected to report a slight drop from 661K to 595K 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 to 1.18269 after placing a high of 1.18595 and a low of 1.17106. The EUR/USD pair surged to its highest level since October 23 amid the U.S. dollar weakness ahead of U.S. election results.

The U.S. dollar came under fresh pressure after the chances for Joe Biden looked increasingly likely to claim the U.S. presidency. Furthermore, the U.S. stimulus package’s expectations will be delivered by any elected government after the results will also be announced exerted pressure on the U.S. dollar and supported the EUR/USD pair’s upward momentum.

On the data front, at 12:00 GMT, the German Factory Orders for September declined to 0.5% against the expected 2.1% and weighed on Euro. At 15:00 GMT, the Retail Sales from the Eurozone for September declined to -2.0% against the expected -1.4% and weighed on single currency Euro that capped further upside movement of EUR/USD pair on Thursday.

From the U.S. side, at 17: 30 GMT, the Challenger Job Cuts for the year from the U.S. came in as 60.4% in comparison to the previous 185.9%. At 18:30 GMT, the Unemployment Claims for the last week were rushed to 751K against the estimated 740K and weighed on the U.S. dollar added further in the gins of EUR/USD pair. The Prelim Nonfarm Productivity for the quarter surged to 4.9% against the predicted 3.6% and weighed on the U.S. dollar. At 18:32 GMT, the Prelim Unit Labor Costs for the quarter came in as -8.9% against the expected -10.0% and supported the U.S. dollar that capped further gains in EUR/USD pair.

Meanwhile, the European Commission reduced its economic growth prediction for next year after governments’ reintroduced lockdowns to control the coronavirus infections. On Thursday, the E.U. executive in Brussels anticipated Eurozone growth of 4.2 percent in 2021, down from 6.1 percent anticipated in July. For 2020, it expects the economy to shrink by 7.8 percent.

Furthermore, the ECB Governing Council member and Bundesbank President, Jens Weidmann, said that it was important for the ECB’s monetary policy to remain expansionary on Thursday. These dovish comments from ECB’s governing council member also added further pressure to cap the gains in EUR/USD. However, investors’ focus remained on the U.S. Presidential election as a winner has not been announced. As few states were still counting votes while the U.S. President Donald Trump is already disputing some results in court. It weighed heavily on the U.S. dollar and pushed the EUR/USD pair higher on board.

Daily Technical Levels

Support    Resistance

1.1733      1.1881

1.1648      1.1944

1.1585     1.2029

Pivot point: 1.1796

EUR/USD– Trading Tip

The EUR/USD pair is trading sideways between a narrow trading range of 1.1859 – 1.1759 amid a weaker dollar. A bearish breakout of the 1.1759 level may extend the selling trend until the 1.1727 level. Simultaneously, the bullish crossover of the 1.1859 area can lead the EUR/USD pair until 1.1895. Breakout highly depends upon the U.S. NFP data today.

GBP/USD – Daily Analysis

The GBP/USD pair was closed at 1.31502 after placing a high of 1.31545 and a low of 1.29309. The British Pound remained in demand and moved higher on Thursday against the U.S. dollar as the chances of Biden victory increased with the counting of votes.

The Bank of England announced on Thursday that it would expand its bond-buying structure by £150 billion to £895 billion, more than the estimates of a more modest £100 boost. Moreover, the BoE also renounced from setting negative interest rates that prompted investors to price that contrary development out.

Meanwhile, on late night Thursday, the Federal Reserve decision on interest rate did just like expected and left rates and bond-buying unchanged. The emphasis was on easing an additional stimulus required from the U.S. government and weighing on the greenback throughout this week.

The U.S. Dollar Index slipped to its lowest of 92.4880 on Thursday and gave strength to the rising GBP/USD pair. On the other hand, the Bank of England’s Monetary Policy Committee unanimously voted to maintain its benchmark bank rate at 0.1%. The market attention was captured by the changes to their Quantitative Easing and economic estimates mentioned in the monetary policy report.

The committee told that the rapid rise in COVID infection rates and subsequent restrictions across the U.K. forced it to respond by increasing its asset purchasing program by 150 billion British Pound to a total of 95 billion Pound surpassed the majority of market expectations of just a 100 billion increase.

The program will last until the end of 2021 beyond the summer, and instead of declining, the British Pound increased as the U.S. dollar was also declining on the day amid the election uncertainty. This added support to the GBP/USD pair that rose above the 1.31500 level on Thursday.

On the data front, the Asset Purchase Facility was increased to 895B against the expected 845B. The official bank rate from the Bank of England remained at 0.10%. At 14:30 GMT, the Construction PMI from Britain also declined to 53.1 against the forecasted 55.0.

From the U.S. side, at 17: 30 GMT, the Challenger Job Cuts for the year from the U.S. came in as 60.4% in comparison to the previous 185.9%. At 18:30 GMT, the Unemployment Claims for the last week advanced to 751K against the projected 740K and weighed on the U.S. dollar that added further to the GBP/USD pair’s gains. The Prelim Nonfarm Productivity for the quarter rose to 4.9% against the projected 3.6% and weighed on the U.S. dollar that added strength to the GBP/USD pair. At 18:32 GMT, the Prelim Unit Labor Costs for the quarter came in as -8.9% against the estimated -10.0% and supported the U.S. dollar.

Meanwhile, the U.S. dollar was also weak due to Biden’s chances of victory that would allow the issuance of a massive stimulus package after the election results. These hopes also weighed on the U.S. dollar and supported the GBP/USD pair’s upward trend.

Daily Technical Levels

Support    Resistance

1.2997      1.3222

1.2851      1.3301

1.2771      1.3448

Pivot point: 1.3076

GBP/USD– Trading Tip

Just like the EUR/USD, the GBP/USD is also trading sharply bullish, having violated the narrow trading range of 1.3122 – 1.2940 area. The Cable has recently broken the double top resistance level of 1.3017 level and now heading further higher until the 1.3158 resistance area. Above this level, the odds of buying remain strong today. On the higher side, the Sterling may find next resistance around 1.3182 while the bearish breakout of 1.3037 may lead the Cable towards the 1.3005 level. Price action highly depends upon the U.S. NFP data today.

USD/JPY – Daily Analysis

The USD/JPY pair was closed at 103.514 after placing a high of 104.547 and a low of 103.441. The USD/JPY pair dropped to its lowest level since March 2020 on the back of a weak U.S. dollar due to increasing hopes for Biden recovery. On Thursday, the Federal Reserve kept its benchmark interest rate unchanged at 0-0.25% range along with its target for asset purchases. According to the monetary policy statement, the economic activity and the employment levels have continued recovering, although they remain at levels well below those at the beginning of the year. The Federal Reserve also warned that the weaker consumer demand and the falling oil prices were holding down consumer inflation.

The comments from Fed chair Jerome Powell remained dovish as he affirmed that the pace of improvement has moderated. He also said that the economic activity continued to recover; he also warned about the highly uncertain path ahead that might have increased negative pressure on the U.S. dollar and added in the USD/JPY pair’s losses.

The U.S. dollar reversed its direction on Thursday from the previous day on the back of expectations of Joe Biden’s recovery as the counting of votes was in his favor so far. However, U.S. President Donald Trump has already filed lawsuits for recounting that could delay the results of the U.S. Presidential election.

On the data front, at 17: 30 GMT, the Challenger Job Cuts for the year came in as 60.4% in comparison to the previous 185.9% from the U.S. At 18:30 GMT, the Unemployment Claims for the last week rose to 751K against the expected 740K and weighed on the U.S. dollar and added in the USD/JPY pair’s losses. The Prelim Nonfarm Productivity for the quarter raised to 4.9% against the estimated 3.6% and weighed on the U.S. dollar. At 18:32 GMT, the Prelim Unit Labor Costs for the quarter came in as -8.9% against the projected -10.0% and supported the U.S. dollar.

The main driver of the USD/JPY pair on Thursday was Biden’s chances of winning the U.S. election 2020 as he will issue a massive stimulus package, which would cause a decline in the U.S. dollar strength.

Daily Technical Levels

Support    Resistance

103.09      104.22

102.70 104.95

101.97 105.34

Pivot point: 103.83

USD/JPY – Trading Tips

The USD/JPY has violated the descending triangle pattern at 104.149 area, and on the lower side, it’s heading towards the next support area of 103.300 level. Violation of these ranges may determine the next trend in the USD/JPY pair. A bullish breakout of 104.149 level can extend the buying trend until 104.880. Conversely, the bearish breakout of 103.300 can lead the USD/JPY pair towards the 102.530 area. The MACD is also showing bearish bias among investors; therefore, let’s wait for a breakout before taking the next position in the USD/JPY. Good luck! 

Categories
Forex Signals

AUD/USD Bounces off Support 0.7155 – Good time to go long?

The AUD/USD pair was closed at 0.71864 after placing a high of 0.72218 and a low of 0.70484. The pair AUD/USD rose to its highest since 12th October on Wednesday amid the U.S. political uncertainty after the election results seemed tighter than expected.

The AUD/USD pair was closed at 0.71864 after placing a high of 0.72218 and a low of 0.70484. The pair AUD/USD rose to its highest since 12th October on Wednesday amid the U.S. political uncertainty after the election results seemed tighter than expected.

The AUD/USD pair was closed at 0.71864 after placing a high of 0.72218 and a low of 0.70484. The pair AUD/USD rose to its highest since 12th October on Wednesday amid the U.S. political uncertainty after the election results seemed tighter than expected.

The AUD/USD pair first declined sharply on Wednesday amid the recent decision of RBA to cut its interest rates to 0.10% from the 0.25% and weighed on Aussie. The RBA also announced its plans to buy A$200 billion government bonds with maturities of around 5-10 years over the next six months.

However, the losses in AUD/USD pair were reversed, and the par started to post gains as the U.S. dollar started losing its gains in late trading session as the U.S. election results delayed and raised uncertainty. The markets started moving with the threats of lawsuits and recounting of votes that would go on for a couple of days and delay the final election results.

The declining U.S. dollar helped the AUD/USD pair to raise its prices and move in the upward direction on Wednesday. On the data front, at 02:30 GMT, the AIG Construction Index for October raised to 52.7 against the previous 45.2. At 05:30 GMT, the Retail Sales for September came in as -1.1% against the forecasted -1.5% and supported the Australian dollar that added strength to AUD/USD pair.

At 18:15 GMT, the ADP Non-Farm Employment Change for October plunged to 365K against the predictable 650K and weighed on the U.S. dollar that ultimately supports the AUD’s upward momentum/USD pair. At 18:30 GMT, the Trade Balance from the U.S. for October remained flat with the anticipations of -63.9B. 

At 19:45 GMT, the Final Services PMI for October rose to 56.9 from the estimated 56.0 and supported the U.S. dollar. At 20:00 GMT, the ISM Services PMI for October fell to 56.6 from the predictable 57.4 and weighed on the U.S. dollar that added further strength to AUD/USD pair.


Daily Technical Levels

Support Resistance

0.7066 0.7215

0.6972 0.7270

0.6917 0.7364

Pivot point: 0.7121

The AUD/USD continues trading sideways, facing immediate resistance at the 0.7160 level along with a support area of 0.7140. The bullish breakout of the 0.7190 level can extend the buying trend until the 0.7220 level. Conversely, the bearish breakout of the 0.7140 level can drive selling bias until 0.7060. Eyes stay on the U.S. elections outcome. Good luck! 

Categories
Forex Signals

USD/CAD Testing Triple Bottom – Is It Good time to go Long? 

The USD/CAD pair was closed at 1.31332 after placing a high of 1.32991 and a low of 1.30953. The USD/CAD pair rose to a daily high of 1.3300 during the Asian session on Wednesday but reversed in the late session and converted gains into modest losses.

The USD/CAD pair was closed at 1.31332 after placing a high of 1.32991 and a low of 1.30953. The USD/CAD pair rose to a daily high of 1.3300 during the Asian session on Wednesday but reversed in the late session and converted gains into modest losses.

The USD/CAD pair was closed at 1.31332 after placing a high of 1.32991 and a low of 1.30953. The USD/CAD pair rose to a daily high of 1.3300 during the Asian session on Wednesday but reversed in the late session and converted gains into modest losses.

The US election results were expected to end with a blue wave and were weighing on the US dollar in previous days, but on Wednesday, the tables turned after the results were tightened. The hopes faded away that democrats will be controlling the Senate, and the expectations of divided government increased that started supporting the US dollar.

The strong US dollar pushed the USD/CAD pair higher; however, the market sentiment reversed after the specter of recounts, appeals to the Supreme Court, and lawsuits emerged and delayed the election results. These uncertainties weighed on market sentiment, and the pair USD/CAD reversed its direction and turned its gains into losses.

On the data front, at 18:30 GMT, the Trade Balance for September dropped to -3.3B against the expected -2.2B and weighed on the Canadian Dollar and supported the upward trend in the earlier session.

From the US side, at 18:15 GMT, the ADP Non-Farm Employment Change for October fell to 365K against the anticipated 650K and weighed on the US dollar and added in USD/CAD losses pair. 

At 18:30 GMT, the Trade Balance from the US for October remained flat at -63.9B. At 19:45 GMT, the Final Services PMI for October rose to 56.9 from the estimated 56.0 and supported the US dollar. At 20:00 GMT, the ISM Services PMI for October plunged to 56.6 from the projected 57.4 and weighed on the US dollar and supported the USD/CAD pair’s bearish trend.

On WTI crude oil front, the prices rose above $39 per barrel on Wednesday and gave strength to the commodity-linked Loonie that ultimately added pressure on the USD/CAD pair and declined its prices.


Daily Technical Levels

Support Resistance

1.3075 1.3209

1.3020 1.3290

1.2940 1.3344

Pivot point: 1.3155

The USD/CAD pair is trading with a neutral bias at the 1.3102 level, holding right below an immediate support area of 1.3100 level. It’s a triple bottom level. Therefore we can expect the Loonie pair to bounce off over this level to target the 1.3219 area. On the higher side, the USD/CAD may find support at the 1.3377 level. Let’s wait for a signal to enter a trade! 

Categories
Forex Signals

Gold on a Bullish Run – Quick Update on Signal!


Entry Price – Buy 1912.42
Stop Loss – 1906.42
Take Profit – 1919.92
Risk to Reward – 1:1.25
Profit & Loss Per Standard Lot = -$600/ +$750
Profit & Loss Per Micro Lot = -$60/ +$75
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Categories
Forex Market Analysis

Daily F.X. Analysis, November 05 – Top Trade Setups In Forex – Eyes on U.S. Election Results! 

On the news front, the eyes will remain on the outcome of the U.S. elections, although Joe seems to be the next president of the United States considering the voting lead against Trump so far. Besides, the Monetary Policy decision from the Bank of England will remain in highlights. The BOE isn’t expected to make any changes in the policy; however, the press conference will be worth watching. The muted impact is expected on the news. Lastly, the Unemployment Claims from the U.S. may support the U.S. dollar today.

On the news front, the eyes will remain on the outcome of the U.S. elections, although Joe seems to be the next president of the United States considering the voting lead against Trump so far. Besides, the Monetary Policy decision from the Bank of England will remain in highlights. The BOE isn’t expected to make any changes in the policy; however, the press conference will be worth watching. The muted impact is expected on the news. Lastly, the Unemployment Claims from the U.S. may support the U.S. dollar today.

On the news front, the eyes will remain on the outcome of the U.S. elections, although Joe seems to be the next president of the United States considering the voting lead against Trump so far. Besides, the Monetary Policy decision from the Bank of England will remain in highlights. The BOE isn’t expected to make any changes in the policy; however, the press conference will be worth watching. The muted impact is expected on the news. Lastly, the Unemployment Claims from the U.S. may support the U.S. dollar today.

Economic Events to Watch Today  

 

EUR/USD – Daily Analysis

The EUR/USD pair was closed at 1.17227 after placing a high of 1.17706 and a low of 1.16025. After falling to its lowest since mid-July, the EUR/USD pair reversed and started to rise and ended Wednesday with gains. The EUR/USD pair has been having a highly volatile week so far as uncertainty around the U.S. 2020 Presidential Election intensifies. Results have been tighter than the market’s expectations, and investors felt hesitant to sell the safe-haven U.S. dollar.

On Wednesday, the U.S. dollar rally kept the EUR/USD pair under pressure and made it hard to sustain gains Wednesday as both share a negative correlation. Moreover, the Eurozone’s coronavirus situation also worsened as the pandemic’s second wave raised across the bloc and forced many major economies, including Germany and France, to re-introduce fresh restrictions and lockdown measures.

In turn, the ECB has been signaling that it could introduce a new monetary policy stimulus that only added in the weakness of Euro currency and kept the gains in EUR/USD pair limited on Wednesday.

On the data front, at 13:00 GMT, the Spanish Unemployment Change for October came in as 49.6K compared to the previous -26.3K. At 13:15 GMT, the Spanish Services PMI for October raised to 41.1 from the forecasted 40.0 and supported Euro and added further in EUR/USD air’s gains. AT 13:45 GMT, the Italian Services PMI for October declined to 46.7 against the forecasted 47.4 and weighed on Euro.

 At 13:50 GMT, the French Final Services PMI remained flat at 46.5. At 13:55 GMT, the German Final Services PMI raised to 49.5 against the forecasted 48.9 and supported the single currency Euro. At 14:00 GMT, the Final Services PMI from the whole bloc for October also surged to 46.9 against the forecasted 46.2 and supported the single currency Euro and added further upside momentum to EUR/USD pair.

From the U.S. side, at 18:15 GMT, the ADP Non-Farm Employment Change for October dropped to 365K against the estimated 650K and weighed on the U.S. dollar that added strength to the upward momentum of the EUR/SD pair. At 18:30 GMT, the Trade Balance from the U.S. for October came in line with the expectations of -63.9B. At 19:45 GMT, the Final Services PMI for October surged to 56.9 from the projected 56.0 and supported the U.S. dollar and capped further gains in EUR.USD pair.

At 20:00 GMT, the ISM Services PMI for October fell to 56.6 from the anticipated 57.4 and weighed on the U.S. dollar and provided support to the rising EUR/USD pair.

The U.S. dollar is a safe-haven currency that tends to rise during uncertain environment and in the U.S. 2020 Presidential Election, the fears that election result could be close or contested, it led to a rise in the safe-haven demand and the U.S. dollar, that ultimately added pressure on EUR/USD pair.

Daily Technical Levels

Support    Resistance

1.1650      1.1757

1.1588      1.1802

1.1543      1.1864

Pivot point: 1.1695

EUR/USD– Trading Tip

The EUR/USD is trading sideways, with a wide trading range of 1.1615 to 1.1760 area as the U.S. elections keep the markets on the move. On the lower side, the bearish breakout of the 1.1615 area can extend selling until the next support area of the 1.1591 level. The release of European services PMI data may support the pair; elsewhere, the outcome of elections may drive further market movement. The MACD is entering the selling zone, but we may not see further selling until the 1.1615 level gets violated. 

GBP/USD – Daily Analysis

The GBP/USD pair was closed at 1.29142 after placing a high of 1.31401 and a low of 1.29839. The broad-based U.S. dollar strength added pressure on GBP/USD pair and kept it on the bearish track on Wednesday.

The uncertainty surrounding the U.S. election results increased after the race to White House became tighter than anticipation. However, the results from key battle states like Wisconsin, Michigan, and Pennsylvania were delayed. This uncertainty forced investors to hold onto their U.S. dollar positions and weighed on GBP/USD pair.

On the previous day, the markets were moving on Biden recovery expectations, but as results from different states were announced, the election results became tighter. Chances for a divided government increased, and the blue wave decreased that raised the U.S. dollar onboard and weighed on GBP/USD pair.

On the data front, at 14:30 GMT, the Final Services PMI for October fell to 51.4 against the estimated 52.3 and weighed on British Pound. From the U.S. side, at 18:15 GMT, the ADP Non-Farm Employment Change for October fell to 365K against the expected 650K and weighed on the U.S. dollar. At 18:30 GMT, the Trade Balance from the U.S. for October came in line with the anticipations of -63.9B. At 19:45 GMT, the Final Services PMI for October rushed to 56.9 from the estimated 56.0 and supported the U.S. dollar and weighed on GBP/USD pair. At 20:00 GMT, the ISM Services PMI for October declined to 56.6 from the projected 57.4 and weighed on the U.S. dollar.

In the U.K., the lawmakers approved a one-month lockdown for England as the coronavirus cases were continuously increasing. On Wednesday, the U.K. reported 25,177 new cases in a single day against Tuesday’s 20,018. The British Pound came under fresh pressure after these depressing highlights from the U.K. and added further losses in GBP/USD pair.

The Bank of England will release its monetary policy decision on Thursday. The uncertainty about the decision of BoE also increased with the escalated version of the coronavirus pandemic. The Bank is expected to keep rates stable, but as the lockdowns are re-introduced banks could change its decision and announce further easing. These uncertainties also kept the local currency under pressure and kept weighing on GBP/USD pair.

Daily Technical Levels

Support   Resistance

1.2913      1.2941

1.2898      1.2954

1.2884      1.2969

Pivot point; 1.2926

GBP/USD– Trading Tip

Just like the EUR/USD, the GBP/USD is also trading sideways in between a narrow trading range of 1.3122 – 1.2940 area. The Cable has recently violated the downward channel, supporting the GBP/USD pair around the 1.2940 level. Above this level, the odds of buying remain strong today. On the higher side, the Sterling may find next resistance around 1.3122 while the bearish breakout of 1.2940 may lead the Cable towards the 1.2855 level. A choppy session is expected today. 

USD/JPY – Daily Analysis

The USD/JPY pair was closed at 104.517 after placing a high of 105.343 and a low of 104.149. The USD/JPY pair moved upward towards its 11-days highest level on Wednesday but it lost most of its daily gains in the late trading session.

The primary driver of the USD/JPY pair was the USD’s market valuation on Wednesday. As the early election results showed that the blue wave was un-likely, it supported the safe-haven U.S. dollar and pushed the USD/JPY pair higher. The U.S. Dollar Index (DXY) also rose on Wednesday and moved to the 94.30 level.

As the markets were moving in previous days over the chances of Biden victory, after tighter election results, the chances for divided government increased and weighed on market sentiment. The hopes for larger stimulus also faded away with the declining hopes of the blue wave and the U.S. dollar gained through it and supported a strong bullish move on Wednesday.

However, on late night Tuesday, when it was clear that there will not be a winner, President Trump falsely claimed victory when millions of votes were still uncounted in the tight presidential race. This weighed on the U.S. dollar and the pair USD/JPY started to rise.

On the data front, at 18:15 GMT, the ADP Non-Farm Employment Change for October dropped to 365K against the projected 650K and weighed on the U.S. dollar. At 18:30 GMT, the Trade Balance from the U.S. for October remained flat with the expectations of -63.9B. At 19:45 GMT, the Final Services PMI for October raised to 56.9 from the projected 56.0 and supported the U.S. dollar. At 20:00 GMT, the ISM Services PMI for October dropped to 56.6 from the expected 57.4 and weighed on the U.S. dollar.

Meanwhile, the Bank of Japan released its monetary policy meeting of September on Wednesday that showed that some policymakers called for deeper scrutiny on how to address the fallout from the coronavirus pandemic as the economic outlook remained highly uncertain.

Many in the nine-member board agreed that it was sufficient to maintain the current ultra-loose monetary policy, for now, to cushion the economic blow from the pandemic. But some saw the need to debate how the BOJ could re-shape its policy in an era where the population must balance the need to contain the virus and sustain economic activity.

The Bank of Japan Governor Haruhiko Kuroda has said that the central bank’s focus will be on providing liquidity to cash-strapped firms hit by the pandemic. He has also indicated that deeper debate on how to achieve its 2 percent inflation target will be put on the back burner—these added strengths in the Japanese Yen and capped gains in the USD/JPY pair on Wednesday.

Daily Technical Levels

Support   Resistance

104.32      104.71

104.19      104.95

103.94      105.09

Pivot point: 104.57

USD/JPY – Trading Tips

The USD/JPY is trading choppy in between a wide trading range of 105.64 to 104.420 level. Violation of these ranges may determine the next trend in the USD/JPY pair. A bullish breakout of 105.062 level can extend the buying trend until 105.590. Conversely, the bearish breakout of 104.426 can lead the USD/JPY pair towards the 104 area. The MACD is also showing mixed bias among investors; therefore, let’s wait for a breakout before taking the next position in the USD/JPY. Good luck! 

Categories
Forex Market Analysis

Daily F.X. Analysis, November 04 – Top Trade Setups In Forex – Eyes on U.S. Election Results! 

On the news front, the market is exhibiting mixed but sharp movements in the wake of U.S. elections. Democratic party’s Joe Biden seems to take the lead so far, and his winning remains solid. The market is exhibiting safe-haven appeal in the wake of election results. Besides, the European economy is due to release Services PMI figures that may drive some price action in the market, but most of it is likely to be overshadowed by the U.S. election outcome. 

On the news front, the market is exhibiting mixed but sharp movements in the wake of U.S. elections. Democratic party’s Joe Biden seems to take the lead so far, and his winning remains solid. The market is exhibiting safe-haven appeal in the wake of election results. Besides, the European economy is due to release Services PMI figures that may drive some price action in the market, but most of it is likely to be overshadowed by the U.S. election outcome. 

On the news front, the market is exhibiting mixed but sharp movements in the wake of U.S. elections. Democratic party’s Joe Biden seems to take the lead so far, and his winning remains solid. The market is exhibiting safe-haven appeal in the wake of election results. Besides, the European economy is due to release Services PMI figures that may drive some price action in the market, but most of it is likely to be overshadowed by the U.S. election outcome. 

Economic Events to Watch Today  

 


 

EUR/USD – Daily Analysis

The EUR/USD pair was closed at 1.17198 after placing a high of 1.17396 and a low of 1.16297. The EUR/USD pair surged on Tuesday and recovered some of its previous daily losses of 6 consecutive sessions. The pair climbed to 1.1739 level on U.S. Election Day as the U.S. dollar was down by 0.83% on the day, and the U.S. Dollar Index was trading at a six-day lower level under 93.40. The improvement in the market sentiment could be attributed to the declining expectations of any outcome of a disputed election that could result in a legal battle, political and social tension.

The rise in EUR/USD pair’s prices was also because of the anticipations of a so-called Blue wave outcome of the U.S. election. As the victory of Joe Biden would have a negative impact on the U.S. dollar amid his intentions to deliver a massive stimulus package after his victory, the EUR/USD pair gained further and rose to its three days highest level on Tuesday.

Apart from the U.S. election, rally in EUR/USD pair continued on the day due to risk appetite after European Central Bank reported that Pandemic Emergency Purchase Programme (PEPP) would likely remain the main instrument to increase the stimulus at the next meeting as the ECB has already committed to act in December and has not ruled out using all available instruments. However, the virus spread and the subsequent lockdowns could weigh on EUR/USD pair in the coming days.

On Tuesday, France reported the highest death toll since April, and both Netherlands and Hungary announced new virus lockdowns. These concerning situations in Eurozone related to the coronavirus pandemic kept the gains in EUR/USD pair limited on Tuesday.

On the data front, the French GOV Budget Balance was released at 12:45 GMT that came in as -161.6B for September compared to Previous -165.7B. From the U.S. side, the Wards Total Vehicle Sales dropped to 16.2M from the expected 16.5M and weighed on the U.S. dollar that ultimately added further gains in EUR/USD pair on Tuesday.

The main driver of the EUR/USD pair remained the U.S. dollar on the U.S. Election Day on Tuesday that was under pressure in the uncertain environment and continued supporting the EUR/USD pair’s upward momentum,

Daily Technical Levels

Support Resistance

1.1624     1.1657

1.1607     1.1673

1.1591     1.1690

Pivot point: 1.1640

EUR/USD– Trading Tip

The EUR/USD is trading sideways, with a wide trading range of 1.1615 to 1.1760 area as the U.S. elections keep the markets on the move. On the lower side, the bearish breakout of the 1.1615 area can extend selling until the next support area of the 1.1591 level. The release of European services PMI data may support the pair; elsewhere, the outcome of elections may drive further market movement. The MACD is entering the selling zone, but we may not see further selling until the 1.1615 level gets violated. 

GBP/USD – Daily Analysis

The GBP/USD pair was closed at 1.30635 after placing a high f 1.30787 and a low of 1.29073. The GBP/USD pair reached its five-day highest level on Tuesday amid broad-based U.S. dollar weakness during the U.S. Election Day.

The Americans were heading to the polls, and the market participants were shrugging off the risk aversion by anticipating a clear Democratic victory that would open the way for a larger fiscal stimulus package and, thus, weakened the U.S. dollar, ultimately added in the gains of GBP/USD pair.

Meanwhile, the lack of any news from the Brexit negotiations that have limited period left as the December 31 deadline was near, along with the introduction of a one-month lockdown in the U.K. to curb the traders ignored the effects of COVID-19 infections on Tuesday that could have capped further gains in the currency pair GBP/USD.

Despite there was no news related to Brexit progress from the ongoing talks between the E.U. and the U.K., the hopes for a last-minute deal helped prop up the British Pound. These hopes, combined with the U.S. dollar weakness, added additional gains in GBP/USD pair. The U.S. dollar index fell sharply to below 93.50 level, and it was down by 0.75%.

On the data front, the U.S. Factory Orders for September came in as 1.1% from the expected 1.0%, and the U.S. Wards Total Vehicle dropped to 16.2M from the anticipated 16.5 M weighed on the U.S. dollar that helped the British Pound to U.S. dollar exchange rate.

On the Brexit front, the reports indicated that talks were stuck between both parties on a level playing field and fisheries, the two main issues that stalled progress a month ago. However, other areas like social security saw progress and raised bars for a Brexit deal before the transition period. Both top negotiators Michel Barnier and David Frost will report on the progress of recent talks on Wednesday, and traders are keenly awaiting it.

The pair GBP/USD likely continue trading alongside risk-related sentiment during the upcoming sessions. As well as British Pound will not ignore any Brexit-related headlines once the picture of the U.S. election became clear.  

Daily Technical Levels

Support Resistance

1.2913     1.2941

1.2898     1.2954

1.2884     1.2969

Pivot point; 1.2926

GBP/USD– Trading Tip

Just like the EUR/USD, the GBP/USD is also trading sideways in between a narrow trading range of 1.3122 – 1.2940 area. The Cable has recently violated the downward channel, supporting the GBP/USD pair around the 1.2940 level. Above this level, the odds of buying remain strong today. On the higher side, the Sterling may find next resistance around 1.3122 while the bearish breakout of 1.2940 may lead the Cable towards the 1.2855 level. A choppy session is expected today. 

USD/JPY – Daily Analysis

The USD/JPY pair was closed at 104.497 after placing a high of 104.799 and a low of 104.431. After placing gains for three consecutive sessions, the pair reversed and posted losses on Tuesday. The U.S. dollar was under pressure on the day and was moving below 93.49 level on the back of expectations of a sweeping Democratic Party victory. The so-called blue-wave where the Joe-Biden with Democrats will take both Houses of Congress would indicate that further stimulus was on the way.

Since markets started to price in a global economic recovery, the U.S. dollar was on the back foot, a coronavirus vaccine, and ongoing fiscal and central bank stimulus in anticipation of renewed reflationary momentum.

The uncertainty over the vote’s outcome kept the safe-haven appeal in demand and continued supporting the Japanese Yen due to its safe-haven status and weighed on the USD/JPY pair. The uncertainty further escalated after Trump showed his willingness to challenge any unfavorable outcome to him legally. It came in response to the Initial polls that suggested that Biden was in the lead, and there will be a Blue/Democratic wave in the election. However, the revised readings showed that the gap between Trump and Biden was tightened.

Biden accused Trump of mishandling the COVID-19 pandemic and deserting safety precautions, including the mandated mask-use that could have saved countless lives from the crisis. Trump refuted that the American economy would be shattered under Biden, who wanted to raise most wealthy taxes.

If Biden wins the election, expectations are high that he will issue a massive stimulus package that would weigh on the U.S. dollar and ultimately drag the USD/JPY pair on the downside. Because of the stimulus package, traders started pricing it and kept selling the USD/JPY pair on Tuesday.

Meanwhile, on the data front, there was no macroeconomic release from Japan due to Bank Holiday. From the U.S., at 20:00 GMT, the Factory Orders in September elevated to 1.1% from the estimated 1.0%. The Wards Total Vehicle Sales for October weakened to 16.2 against the anticipated 16.5M and weighed on the U.S. dollar that ultimately added pressure on the USD/JPY pair on Tuesday.

Daily Technical Levels

Support Resistance

104.56     104.92

104.40     105.12

104.20     105.28

Pivot point: 104.76

USD/JPY – Trading Tips

The USD/JPY is trading choppy in between a wide trading range of 105.64 to 104.420 level. Violation of these ranges may determine the next trend in the USD/JPY pair. A bullish breakout of 105.062 level can extend the buying trend until 105.590. Conversely, the bearish breakout of 104.426 can lead the USD/JPY pair towards the 104 area. The MACD is also showing mixed bias among investors; therefore, let’s wait for a breakout before taking the next position in the USD/JPY. Good luck! 

Categories
Forex Signals

USD/CAD Extended Overnight Gains & Hit the Intra-Day – Elections In Play! 

Today in the Asian trading session, the USD/CAD currency pair managed to stop its three-day downtrend and witnessed some heavy buying around above mid-1.3200 level, mainly due to the broad-based U.S. dollar strength. However, the bullish sentiment around the U.S. dollar was being supported by President Donald Trump’s victory in Florida, which pushed the currency pair intraday high. 

Today in the Asian trading session, the USD/CAD currency pair managed to stop its three-day downtrend and witnessed some heavy buying around above mid-1.3200 level, mainly due to the broad-based U.S. dollar strength. However, the bullish sentiment around the U.S. dollar was being supported by President Donald Trump’s victory in Florida, which pushed the currency pair intraday high. 

Today in the Asian trading session, the USD/CAD currency pair managed to stop its three-day downtrend and witnessed some heavy buying around above mid-1.3200 level, mainly due to the broad-based U.S. dollar strength. However, the bullish sentiment around the U.S. dollar was being supported by President Donald Trump’s victory in Florida, which pushed the currency pair intraday high. 

On the contrary, the upticks in the oil prices, backed by the bigger-than-expected draw in the U.S. crude stockpiles, became the key factor that kept the lid on any additional crude gains oil prices. Moreover, the bullish sentiment around the crude oil prices was also supported by the reports suggesting that OPEC and its allies (OPEC+) maintaining current production restrictions, which tend to ease oversupply fears and contribute to oil prices. Currently, the USD/CAD currency pair is currently trading at 1.3234 and consolidating in the range between 1.3093 – 1.3278.

As we all know, the market risk sentiment has been flashing mixed signals since the day started amid U.S. election polls. However, the expectations of a blue wave in the U.S. Congress weakened quickly after President Donald Trump won Florida’s key battleground state. Conversely, the Arizona governor said that it was too early to call the state for Biden. As per Fox News, the tally on the electoral College now stands at 233 for both Joe Biden and Donald Trump, indicating that the race is tighter than expected.

At the USD front, the broad-based U.S. dollar managed to keep its gains throughout the day as the traders still cheering President Donald Trump’s victory in Florida. Put, the bid tone around the safe-haven greenback seems to have increased in response to betting markets having President Trump as the favorite to win elections. However, the U.S. dollar gains seem rather unaffected by the risk-on market sentiment. Thus, the gains in the U.S. dollar become the key factor that kept the currency pair higher. Meantime, the U.S. Dollar Index that tracks the greenback against a bucket of other currencies rose to 93.898.

 At the crude oil front, the crude oil prices succeeded in gaining positive traction and surged to the $38.80 mark after a surprise draw of -8.01M, against 4.55M prior, in private inventory data published by the American Petroleum Institute (API) on Tuesday. This, in turn, boosted crude oil prices by over 3% overnight. Furthermore, the sentiment around crude oil was improved further after the reports concluded that the Organization of the Petroleum Exporting Countries (OPEC) and its allies maintained current production restrictions, which tend to ease oversupply fears and contribute to the oil prices. Thus, the rise in oil prices underpinned demand for the commodity-linked currency the loonie and became the major factor that capped the pair’s further gains.

In the absence of significant data/events on the day, the market traders will keep their eyes on the continuous drama surrounding the U.S. elections and updates about the U.S. stimulus package. 


Daily Support and Resistance

S1 1.2899

S2 1.3029

S3 1.3083

Pivot Point 1.3158

R1 1.3213

R2 1.3288

R3 1.3418

The USD/CAD is trading with a bullish bias at the 1.3278 level, having violated the immediate resistance level of 1.3223. it’s the same level extended by an upward channel, which got violated a couple of days ago. On the higher side, we can expect the USD/CAD pair to continue trading bullish until the 1.3323 level, as the MACD is also in support of the buying trend. The recent bullish engulfing is in support of buying; however, the election results may drive some volatility in the market. Let’s wait for a trading signal! 

Categories
Forex Signals

AUD/USD Reverse Overnight Bearish Moves – Eyes on 0.7206 Resistance! 

The AUD/USD currency pair succeeded to stop its overnight declining streak and drew some modest bids around above mid-0.7000 level mainly due to the risk-on market sentiment, which tends to underpin the perceived risk currency Australian dollar and contributes to the currency pair gains. Hence, the market trading sentiment was being supported by upbeat activity data from the U.S., China, and Europe, which rekindled economic recovery hopes and underpinned the market risk-tone. 

The AUD/USD currency pair succeeded to stop its overnight declining streak and drew some modest bids around above mid-0.7000 level mainly due to the risk-on market sentiment, which tends to underpin the perceived risk currency Australian dollar and contributes to the currency pair gains. Hence, the market trading sentiment was being supported by upbeat activity data from the U.S., China, and Europe, which rekindled economic recovery hopes and underpinned the market risk-tone. 

The AUD/USD currency pair succeeded to stop its overnight declining streak and drew some modest bids around above mid-0.7000 level mainly due to the risk-on market sentiment, which tends to underpin the perceived risk currency Australian dollar and contributes to the currency pair gains. Hence, the market trading sentiment was being supported by upbeat activity data from the U.S., China, and Europe, which rekindled economic recovery hopes and underpinned the market risk-tone. 

Apart from this, the market trading sentiment was further bolstered by the updates suggesting continuous progress of Brexit talks between the U.K. and the European Union (E.U.), which extended further support to the currency pair. Across the pond, the broad-based U.S. dollar selling bias, triggered by the marker risk-on sentiment, also played its major role in supporting the currency pair. Moreover, the losses in the U.S. dollar was further bolstered by the intensifying doubts over the U.S. economic recovery ahead of the U.S. presidential elections. 

On the contrary, the long-lasting coronavirus woes globally, as well as delays in the U.S. covid stimulus, keep challenging the upbeat market sentiment, which becomes the key factor that kept the lid on any additional gains in the currency pair. In the meantime, the gains in the currency pair were further capped by the reports suggesting that the RBA is expected to cut the benchmark rate and announce more Q.E. At this time, the AUD/USD currency pair is currently trading at 0.7057 and consolidating in the range between 0.7044 – 0.7063.

Despite the concern about the second wave of coronavirus infections, which leads the lockdown measures, the market trading sentiment remained positive during the early Asian session amid positive developments surrounding the Brexit talks between the U.K. and the European Union (E.U.), which in turn, underpinned the perceived risk currency Australian dollar and contributed to the currency pair gains. 

Across the ocean, bullish sentiment around the equity market was further bolstered by the upbeat activity numbers from the U.S., China, and Europe, which rekindled economic recovery hopes and underpinned the market trading sentiment. As per the latest report, the ISM manufacturing index jumped to the highest in more than two years.

As in result, the S&P 500 futures succeeded to extend its overnight positive momentum and remain bullish on the day, which tends to undermine the demand for the safe-haven U.S. dollar and extended support to the currency pair. Despite the upbeat U.S. data, the broad-based U.S. dollar failed to erase its overnight losses and remained under pressure on the day mainly due to the marker risk-on tone. Apart from this, the resurgence of coronavirus keeps fueling the fears that the U.S. economic recovery could be halt, which also keeps the greenback under pressure. However, the losses in the U.S. dollar could be considered as the major factor that kept the currency pair higher. Meanwhile, the U.S. Dollar Index that tracks the greenback against a bucket of other currencies dropped to 93.977.

On the contrary, the intensifying coronavirus woes across the globe, as well as, intensifying lockdowns restrictions in Europe keep challenging the upbeat market sentiment and become the key factor that kept the lid on any additional gains in the currency pair. As per the latest report, Europe declared this weekend second lockdowns amid surging coronavirus cases. It is worth recalling that the market and industry professionals were not expecting renewed lockdowns for whole countries. Late last week, Austria announced a second lockdown until the end of November, including closing hotels for tourism, as well as restaurants except for takeaway and delivery. Apart from froths, the U.K., one of the largest economies in Europe, is also imposing lockdown restrictions while Belgium also returned to a nationwide lockdown. 

Elsewhere, the growing probabilities that the RBA will cut interest rates in November could also be considered as one of the key factors that kept the lid on any additional gains in the currency pair. It is worth recalling that the benchmark interest rate likely cut to 0.10% from 0.25%. 

In the absence of the major data/events on the day, the market traders will keep their eyes on the monetary policy meeting of the RBA and the U.S. presidential election for fresh directions. In the meantime, the risk catalyst like geopolitics and the virus woes, not to forget the Brexit, will also be key to watch.


Daily Support and Resistance

S1 0.69

S2 0.6966

S3 0.7008

Pivot Point 0.7033

R1 0.7075

R2 0.71

R3 0.7166

The AUD/USD has traded sharply bullish amid weaker U.S. dollar, as the pair crossed over 0.7150 level. On the higher side, the AUD/USD pair may head further higher until the next resistance area of 0.7199 level. The MACD and RSI are extremely overbought, and however, we have to wait for bearish reversal candles ahead of opening a sell trade in Aussie. On the lower side, the Aussie can find support at 0.7150 and 0.7105 mark. Let’s wait for the U.S. elections before opening any further trades today. Good luck!  

Categories
Forex Signals

USD/CAD Heading for Triple Bottom Support – Brace for the Buying Signal!  

The USD/CAD pair was closed at 1.32158 after placing a high of 1.33702 and a low of 1.32153. The USD/CAD pair dropped on Monday after posting gains for three consecutive sessions. Despite the broad-based U.S. dollar strength, the USD/CAD pair fell on Monday and posted sharp losses on the back of the strength of the Canadian Dollar and rising crude oil prices.

The USD/CAD pair was closed at 1.32158 after placing a high of 1.33702 and a low of 1.32153. The USD/CAD pair dropped on Monday after posting gains for three consecutive sessions. Despite the broad-based U.S. dollar strength, the USD/CAD pair fell on Monday and posted sharp losses on the back of the strength of the Canadian Dollar and rising crude oil prices.

The USD/CAD pair was closed at 1.32158 after placing a high of 1.33702 and a low of 1.32153. The USD/CAD pair dropped on Monday after posting gains for three consecutive sessions. Despite the broad-based U.S. dollar strength, the USD/CAD pair fell on Monday and posted sharp losses on the back of the strength of the Canadian Dollar and rising crude oil prices.

The Loonie has been unaffected by the broad-based U.S. dollar strength on Monday as the WTI crude oil prices rebounded by 2% on the day and provided strength to the commodity-linked Loonie.

Furthermore, the risk sentiment was also improved in the market as the main equity indexes advanced on Monday, and oil prices also rose by $2 per barrel. The Chinese factory data also showed advancement along with the improved U.S. manufacturing activity offset the concerns about the coronavirus spread and supported the Canadian Dollar against the U.S. dollar and dragged the pair USD/CAD on the lower side.

On the data front, at 19:30 GMT, the Manufacturing PMI from Canada for October was declined to 55.5 from the previous month’s 56.0 and weighed on the Canadian Dollar that capped further losses in the USD/CAD pair.

Whereas, from the U.S. side, at 19:45 GMT, the Final Manufacturing PMI for October came in line with the projections of 53.4. At 20:00 GMT, the ISM Manufacturing PMI for October rose to 59.3 from the anticipated 55.6 and supported the U.S. dollar. The Construction Spending for September dropped to 0.3% from the estimated 1.0% and weighed on the U.S. dollar. The ISM Manufacturing Prices for October also surged to 65.6 against the anticipated 60.5 and supported the U.S. dollar. The positive U.S. macroeconomic data on Monday limited the additional losses in the USD/CAD pair.

The U.S. dollar came under fresh pressure ahead of the upcoming U.S. election as both candidates Joe Biden and Donald Trump have said that they would introduce the next round of U.S. stimulus after the elections. The fact that stimulus measures will be delivered regardless of who will win the election weighed on the U.S. dollar and added further losses in the USD/CAD pair on Monday.


Daily Technical Levels

Support Resistance

1.3334 1.3388

1.3297 1.3407

1.3279 1.3443

Pivot point: 1.3352

Technically, the USD/CAD fell sharply amid weakness in the U.S. dollar ahead of the U.S. elections. On the lower side, the USD/CAD is facing support at 1.3103 level, and closing of a candle over 1.3103 level can drive bullish movement in the USD/CAD pair. The MACD has entered the oversold zone; therefore, we may have an opportunity to go long over 1.3103 level today.

Entry Price – Buy Limit 1.3086

Stop Loss – 1.3046

Take Profit – 1.3126

Risk to Reward – 1:1

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

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

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