Author: Ali B.

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Forex Market Analysis

Daily F.X. Analysis, November 03 – Top Trade Setups In Forex – U.S. Presidential Election in Highlights!

On the news front, eyes will remain on the U.S. Presidential Election. The voters will elect the 46th President of the United States. The winner will likely be projected before the official vote count is announced, based on early vote counts and exit polling. Besides, the U.S. Factory Orders m/m are also due, but their impact is likely to be overshadowed by the U.S. elections. 

On the news front, eyes will remain on the U.S. Presidential Election. The voters will elect the 46th President of the United States. The winner will likely be projected before the official vote count is announced, based on early vote counts and exit polling. Besides, the U.S. Factory Orders m/m are also due, but their impact is likely to be overshadowed by the U.S. elections. 

On the news front, eyes will remain on the U.S. Presidential Election. The voters will elect the 46th President of the United States. The winner will likely be projected before the official vote count is announced, based on early vote counts and exit polling. Besides, the U.S. Factory Orders m/m are also due, but their impact is likely to be overshadowed by the U.S. elections. 

Economic Events to Watch Today  

 

EUR/USD – Daily Analysis

The EUR/USD pair was closed at 1.16399 after placing a high of 1.16554 and a low of 1.16218. EUR/USD pair extended its losses and dropped for the 6th consecutive session on Monday amid the rising safe-haven appeal and coronavirus situation in Europe. The EUR/USD pair ended its day with modest losses as the currency pair’s bearish momentum was somehow cooled down because of the positive PMI data from European nations. Meanwhile, the U.S. dollar was also strong onboard due to its safe-haven status as well as due to the strong macroeconomic data on Monday.

At 13:15 GMT, the Spanish Manufacturing PMI for October raised to 52.5 against the expected 51.0 and supported the single currency Euro. At 13:45 GMT, the Italian Manufacturing PMI for October remained flat with a forecast of 53.9. At 13:50 GMT, the French Final Manufacturing PMI for October also came in as expected 51.3. At 13:55 GMT, the German Final Manufacturing PMI came in line with the anticipations of 58.0. At 14:00 GMT, the Final Manufacturing PMI for the whole bloc in October raised to 54.8 from the expected 54.4 and supported the single currency Euro.

Europe’s positive PMI data gave some support to Euro that ultimately capped further losses in EUR/USD pair.

From the U.S. side, at 19:45 GMT, the Final Manufacturing PMI for October remained flat at 53.4. At 20:00 GMT, the ISM Manufacturing PMI for October rushed to 59.3 from the estimated 55.6 and supported the U.S. dollar. The Construction Spending for September fell to 0.3% from the projected 1.0% and weighed on the U.S. dollar. The ISM Manufacturing Prices for October also elevated to 65.6 against the anticipated 60.5 and supported the U.S. dollar.

On Monday, the positive data from the U.S. made the U.S. dollar even stronger and supported the downside movement of the EUR/USD pair.

Furthermore, the U.S. dollar was set to lose its bullishness in the days ahead as markets were keenly waiting for the U.S. presidential elections’ results. Although the uncertainty persists in the market regarding the election’s outcome, this is the critical time to enter or place any position in the market. This is the reason behind the consolidated movement of the EUR/USD pair on Monday.

Furthermore, both the U.S. election candidates, Biden and Trump, have said that they would deliver a big stimulus package after the election. So, it means the next round of stimulus packages will be delivered regardless of the winner. These hopes kept weighing in the U.S. dollar and capped further losses in EUR/USD pair.

On the other hand, the renewed lockdown restrictions in France, Germany, Italy, and Belgian to curb the effect of coronavirus pandemic raised the concerns for Eurozone economic recovery and kept weighing on single currency that kept the EUR/USD pair on the downside.

Daily Technical Levels

Support Resistance

1.1637     1.1651

1.1631     1.1659

1.1623     1.1665

Pivot point: 1.1645

EUR/USD– Trading Tip

The EUR/USD traded with a bearish bias, having dropped below the support area of 1.1653. At the moment, the EUR/USD is likely to face the resistance at the same level of 1.1653. On the higher side, a bullish crossover of 1.1653 increases the odds of continuing an upward trend, and it may lead the EUR/USD price towards 1.1700. Further bullish crossover of this area can lead the pair towards the 1.1758 level. Conversely, a bearish crossover of 1.1653 support level has opened additional room for selling until the 1.1613 area as a double bottom support area extends the level.  

GBP/USD – Daily Analysis

The GBP/USD pair was closed at 1.29180 after placing a high of 1.29426 and a low of 1.28539. The British Pound started to decline against the U.S. dollar at the starting day of the week as the hopes raised for further monetary easing by the Bank of England this week following the second lockdown in England.

Over the weekend, the U.K. announced that it would enter a second national lockdown for a month to control the rise in coronavirus infections. On Monday, the coronavirus cases fell to 18,950 in comparison to 10,900 cases a week ago. The expectations for further easing came on board after the Britain government made this announcement on the weekend.

The new lockdown measures in the U.K. demand the people stay at home unless there is an essential purpose like education, medical reason, or shopping for groceries. However, economists have warned that country would enter a double-dip recession if it enters another lockdown as it will dent the economic growth in the final quarter of the year. These concerns kept the risk sentiment under pressure and weighed on British Pound that ultimately added the GBP/USD pair’s losses.

On the data front, at14:30 GMT, the Final Manufacturing PMI from Great Britain was raised to 53.7against the expected 53.3 and supported British Pound and capped further losses in GBP/USD pair. From the U.S. side, at 19:45 GMT, the Final Manufacturing PMI for October came in line with the anticipations of 53.4. At 20:00 GMT, the ISM Manufacturing PMI for October raised to 59.3 from the forecasted 55.6 and supported the U.S. dollar. The Construction Spending for September plunged to 0.3% from the forecasted 1.0% and weighed on the U.S. dollar. The ISM Manufacturing Prices for October also rose to 65.6 against the estimated 60.5 and supported the U.S. dollar.

The positive PMI data from the U.S. gave strength to the U.S. dollar and added further pressure on GBP/USD pair. On the Central Bank front, the BOE will have its monetary policy meeting on Thursday, and the hopes are that it will refrain from announcing negative rates, and the bank could also introduce another easing for supporting the economy.

On the Brexit front, the Brexit-talks continue in Brussels as the U.K. and the E.U. were working to avoid a no-deal Brexit. However, no fresh headlines were seen regarding this matter on Monday that kept the currency pair under the mercy of a strong U.S. dollar across the board.

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

The GBP/USD is trading sharply bearish to trade over the double bottom support area of 1.2910 level. On the 2 hour timeframe, the GBP/USD pair has formed a downward channel, and bearish trend continuation can lead the pair further lower towards the next support area of 1.2830 level. However, to see that kind of selling, the Cable needs to violate the immediate support area of 1.2910. The MACD and 50 EMA support selling; therefore, we should look for a selling trade below the 1.2910 level today. 

USD/JPY – Daily Analysis

The USD/JPY pair was closed at 104.749 after placing a high of 104.947 and a low of 104.514. The USD/JPY pair rose and posted gains for the third consecutive session on Monday amid the broad-based U.S. dollar strength. The U.S. dollar pushed higher in the early European session on Monday as European nations imposed more lockdowns on the back of an incessant rise in coronavirus cases. The uncertainty surrounding the upcoming U.S. elections also weighed on market sentiment and kept the USD/JPY pair higher.

The U.K. joined Germany and France over the weekend and re-introduced partial lockdowns to curb the coronavirus’s spread. Europe crossed the 10 million total cases of coronavirus infections and supported the safe-haven appeal that added further strength to the U.S. dollar.

The Bank of England will hold its monetary policy meeting on Thursday, and investors believe that the bank will increase the asset purchases by 150-200 billion British Pounds. These hopes forced the investors to stick with the U.S. currency in these uncertain times, but the ranges were tight as the markets were under pressure ahead of Tuesday’s U.S. presidential election.

The U.S. dollar was also strong because of the rising hopes for the victory of Joe Biden in the upcoming election as he has maintained a healthy lead over his competitor Donald Trump in national polls over the weekend before elections. Furthermore, some of the gains in the USD/JPY pair were lost in the late trading session as the traders were also waiting for the upcoming Federal Reserve monetary policy meeting on Thursday.

On the data front, at 05:30 GMT, the Final Manufacturing PMI from Japan for October raised to 48.7 from the forecasted 48.0 and supported the Japanese Yen that capped further upside in USD/JPY pair. From the U.S. side, at 19:45 GMT, the Final Manufacturing PMI from the U.S. for October remained flat at 53.4. At 20:00 GMT, the ISM Manufacturing PMI from the U.S. advanced to 59.3 from the estimated 55.6 in October and supported the U.S. dollar. The Construction Spending for September fell to 0.3% from the predicted 1.0% and weighed on the U.S. dollar. The ISM Manufacturing Prices for October also raised to 65.6 against the projected 60.5 and supported the U.S. dollar. The U.S. dollar was further supported by the positive results from the macroeconomic data, and it helped the USD/JPY pair to post gains on Monday.

Daily Technical Levels

Support Resistance

104.51     104.66

104.45     104.75

104.35     104.81

Pivot point: 104.60

USD/JPY – Trading Tips

The USD/JPY is trading slightly bullish at the 104.745 level, having crossed over the immediate resistance area of the 104.600 mark. On the 2 hour timeframe, the USD/JPY has violated the downward trendline at 104.550 level, and now the same level is likely to support the USD/JPY pair. The closing of candles over 104.650 level is supporting strong odds of bullish trend continuation until 105.049 level. Further bullish trend continuation can also lead the USD/JPY pair towards the 105.800 level. Good luck! 

Categories
Forex Signals

USD/CHF Set for Bearish Correction – U.S. Elections in Play!  

During Tuesday’s Early Asian trading session, the USD/CHF extended its overnight losses and remain depressed around just above the 0.9167 support level mainly due to the broad-based U.S. dollar weakness. However, the prevalent downtrend in the greenback is mainly tied to the upbeat activity numbers from the U.S., China, and Europe, which rekindled economic recovery hopes and kept market trading sentiment positive. 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 Tuesday’s Early Asian trading session, the USD/CHF extended its overnight losses and remain depressed around just above the 0.9167 support level mainly due to the broad-based U.S. dollar weakness. However, the prevalent downtrend in the greenback is mainly tied to the upbeat activity numbers from the U.S., China, and Europe, which rekindled economic recovery hopes and kept market trading sentiment positive. 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 Tuesday’s Early Asian trading session, the USD/CHF extended its overnight losses and remain depressed around just above the 0.9167 support level mainly due to the broad-based U.S. dollar weakness. However, the prevalent downtrend in the greenback is mainly tied to the upbeat activity numbers from the U.S., China, and Europe, which rekindled economic recovery hopes and kept market trading sentiment positive. 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.

Despite the intensified Sino-US tussle and coronavirus (COVID-19) woes, the market trading sentiment managed to stop its previous negative performance and started to gain some positive traction during the early Asian session on the day perhaps due to the upbeat activity numbers from the U.S., China, and Europe, which rekindled economic recovery hopes. Moreover, the market trading sentiment got an additional lift from the positive developments surrounding the Brexit talks between the U.K. and the European Union (E.U.), which in turn, provided an instant boost to the market trading sentiment and undermined the safe-haven assets including the safe-haven U.S. dollar.

Despite the upbeat U.S. data, the broad-based U.S. dollar remained depressed as the investors continue to sell U.S. dollars on the back of the upbeat market sentiment. Moreover, the losses in the U.S. dollar could also be associated with political uncertainty in the U.S. ahead of U.S. elections. However, the losses in the U.S. dollar could be considered as 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 93.977 to 93.705.


Technically, the USD/CHF pair has entered the overbought zone at the 0.9204 level and below this, the market has initiated the retracement/correction in the USD/CHF pair. Therefore, we have opened a sell trade below 0.9200 area to target quick 40 pips—checkout out a trading plan below. 

Entry Price – Sell 0.91809

Stop Loss – 0.92209

Take Profit – 0.91409

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/CAD Symmetric Triangle Pattern in Play – Selling Trade Update!


Entry Price – Sell 0.93382
Stop Loss – 0.93782
Take Profit – 0.92982
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 Regression Channel Continues to Drive Selling – Update on Signal! 

The EUR/USD pair was closed at 1.16445 after placing a high of 1.17041 and a low of 1.16398. The EUR/USD pair extended its losses for the 5th consecutive day on Friday and remained bearish throughout the day. The main driver behind the steepest fall in Euro currency this week was the market concerns about the rising number of coronavirus infections in Europe and the effects of the social distancing measures to curb them. 

The EUR/USD pair was closed at 1.16445 after placing a high of 1.17041 and a low of 1.16398. The EUR/USD pair extended its losses for the 5th consecutive day on Friday and remained bearish throughout the day. The main driver behind the steepest fall in Euro currency this week was the market concerns about the rising number of coronavirus infections in Europe and the effects of the social distancing measures to curb them. 

The EUR/USD pair was closed at 1.16445 after placing a high of 1.17041 and a low of 1.16398. The EUR/USD pair extended its losses for the 5th consecutive day on Friday and remained bearish throughout the day. The main driver behind the steepest fall in Euro currency this week was the market concerns about the rising number of coronavirus infections in Europe and the effects of the social distancing measures to curb them. 

The latest lockdown restrictions introduced by France and Germany and the tighter restrictions applied in Italy and Spain raised alarms about their impact on the fragile economic recovery and weighed on the single currency Euro that ultimately added pressure on EUR/USD pair. 

Furthermore, the European Central Bank hinted to unleash new stimulus measures in December to counteract the pandemic’s negative impact and weighed on the Euro currency that added further losses in EUR/USD pair on Friday.

Meanwhile, on the data front, at 11:30 GMT, the French Consumer Spending for September was dropped to -5.1% against the expected -1.5% and weighed on Euro. The French Flash GDP for the quarter raised to 18.2% against the expected 15.0% and supported Euro. At 12:00 GMT, German Retail Sales for September dropped to -2.2% from the forecasted -0.6% and weighed on Euro. At 12:45 GMT, the French Prelim CPI for October fell to -0.1% against the forecasted 0.0% and weighed on Euro. At 13:00 GMT, the Spanish Flash GDP for the quarter surged to 16.7% after placing a high of 13.5% and supported Euro. 

The Italian Monthly Unemployment Rate declined to 9.6% from the forecasted 10.1% and weighed on Euro. At 14:00 GMT, German Prelim GDP for the quarter raised to 8.2% from the forecasted 7.3% and supported Euro. The Italian Prelim GDP for the quarter also raised to 16.1% from the forecasted 11.1% and supported Euro. At 14:58 GMT, the Italian Prelim CPI for October remained flat with the expectations of 0.2%.

Support Resistance

1.1798 1.1789

1.1672 1.1834

1.1626 1.1870

Pivot point: 1.1753


The EUR/USD traded with a bearish bias, having dropped below the support area of 1.1653. At the moment, the EUR/USD is likely to face the resistance at the same level of 1.1653. On the higher side, a bullish crossover of 1.1653 increases the odds of continuing an upward trend, and it may lead the EUR/USD price towards 1.1700. Further bullish crossover of this area can lead the pair towards the 1.1758 level. Conversely, a bearish crossover of 1.1653 support level has opened additional room for selling until the 1.1613 area as a double bottom support area extends the level.  

Entry Price – Buy 1.1646

Stop Loss – 1.1686

Take Profit – 1.1606

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 Signals

USD/CAD Upward Channel to Support the pair – Brace for Buy Trade! 

The USD/CAD pair was closed at 1.33219 after placing a high of 1.33483 and a low of 1.32795. On Friday, the currency pair USD/CAD remained confined in a consolidated range throughout the day. The USD/CAD pair dropped in an earlier trading session on Friday amid the strong Canadian GDP and other economic data. However, the pair started falling in late session due to the declining crude oil prices on the day. Meanwhile, the US dollar was strong over the board ahead of the US Presidential elections and the strong macroeconomic data on the day.

The USD/CAD pair was closed at 1.33219 after placing a high of 1.33483 and a low of 1.32795. On Friday, the currency pair USD/CAD remained confined in a consolidated range throughout the day. The USD/CAD pair dropped in an earlier trading session on Friday amid the strong Canadian GDP and other economic data. However, the pair started falling in late session due to the declining crude oil prices on the day. Meanwhile, the US dollar was strong over the board ahead of the US Presidential elections and the strong macroeconomic data on the day.

The USD/CAD pair was closed at 1.33219 after placing a high of 1.33483 and a low of 1.32795. On Friday, the currency pair USD/CAD remained confined in a consolidated range throughout the day. The USD/CAD pair dropped in an earlier trading session on Friday amid the strong Canadian GDP and other economic data. However, the pair started falling in late session due to the declining crude oil prices on the day. Meanwhile, the US dollar was strong over the board ahead of the US Presidential elections and the strong macroeconomic data on the day.

On the data front, at 17:30 GMT, the Gross Domestic Product for August raised to 1.2% from the forecasted 0.9% and supported the Canadian dollar. The IPPI for September declined to -0.1% from the anticipated 0.1% and weighed on the Canadian dollar. The RMPI for September dropped to -2.2% from the forecasted 0.3% and weighed on the Canadian dollar.

The rise in Canadian dollar demand after the release of GDP started to lose its momentum on Friday after the investors realized that the economic growth in Canada would not persist for long as the coronavirus cases were spreading and hitting the economic growth recovery.

From the US side, at 17:30 GMT, the Core PCE Price Index for September came in line with the expectations of 0.2% from the US. Personal Spending from the US surged to 1.4% from the estimated 1.0% and supported the US dollar. The Employment Cost Index for the quarter remained the same at 0.5%. The Personal Income for September rose to 0.9% from the projected 0.3% and supported the US dollar. 

At 18:45 GMT, the Chicago PMI for October surged to 61.1 against the expected 58.2 and supported the US dollar. At 19:00 GMT, the Revised UoM Consumer Sentiment for October also advanced to 81.8 against the forecasted 81.2 and supported the US dollar. The Revised UoM Inflation Expectations for October came as 2.6% in comparison to September’s 2.7%.

Most of the macroeconomic figures from the US came in favor of the local currency that added strength in the USD/CAD pair on the day.

Furthermore, the gains were extended in the late session as the crude oil prices declined on Friday and remained low till $41.0 per day. The declining crude oil prices weighed on commodity-linked Loonie and forced the US dollar to move higher and push the USD/CAD pair. Another factor involved in the upward trend of the USD/CAD pair was the latest decision by the Federal Reserve on Friday to decrease the minimum limit of short-term and medium-term loans to $100,000 from the previous $250,000 to support the small & medium-sized businesses.


Daily Technical Levels

Support Resistance

1.3269 1.3385

1.3214 1.3446

1.3153 1.3501

Pivot point: 1.3330

The USD/CAD is trading with a selling bias falling from 1.3338 level to 1.3242 level, and it’s pretty much likely to drop further until the next support area of 1.3200 level. It’s the level that’s been extended by an upward trendline. The MACD histograms have also started forming below 0 supporting selling bias in the market. I will be looking to take a buy trade at this level of 1.3200 with a stop loss below the 1.3165 area and take profit level of 1.3340 mark. Good luck! 

Categories
Forex Market Analysis

Daily F.X. Analysis, November 02 – Top Trade Setups In Forex – Series of Manufacturing PMI Ahead! 

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 the 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 the 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 the 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 was closed at 1.16445 after placing a high of 1.17041 and a low of 1.16398. The EUR/USD pair extended its losses for the 5th consecutive day on Friday and remained bearish throughout the day.

The main driver behind the steepest fall in Euro currency this week was the market concerns about the rising number of coronavirus infections in Europe and the effects of the social distancing measures to curb them. 

The latest lockdown restrictions introduced by France and Germany and the tighter restrictions applied in Italy and Spain raised alarms about their impact on the fragile economic recovery and weighed on the single currency Euro that ultimately added pressure on EUR/USD pair. Furthermore, the European Central Bank hinted to unleash new stimulus measures in December to counteract the pandemic’s negative impact and weighed on the Euro currency that added further losses in EUR/USD pair on Friday.

Meanwhile, on the data front, at 11:30 GMT, the French Consumer Spending for September was dropped to -5.1% against the expected -1.5% and weighed on Euro. The French Flash GDP for the quarter raised to 18.2% against the expected 15.0% and supported Euro. At 12:00 GMT, German Retail Sales for September dropped to -2.2% from the forecasted -0.6% and weighed on Euro. At 12:45 GMT, the French Prelim CPI for October fell to -0.1% against the forecasted 0.0% and weighed on Euro.

At 13:00 GMT, the Spanish Flash GDP for the quarter surged to 16.7% after placing a high of 13.5% and supported Euro. The Italian Monthly Unemployment Rate declined to 9.6% from the forecasted 10.1% and weighed on Euro. At 14:00 GMT, German Prelim GDP for the quarter raised to 8.2% from the forecasted 7.3% and supported Euro. The Italian Prelim GDP for the quarter also raised to 16.1% from the forecasted 11.1% and supported Euro. At 14:58 GMT, the Italian Prelim CPI for October remained flat with the expectations of 0.2%.

At 15:00 GMT, the CPI Flash Estimate for the year remained flat at -0.3%. The Core CPI Flash Estimate for the year also came in line as expected, 0.2%. The Prelim Flash GDP for the quarter raised to 12.7% from the forecasted 9.5% and supported Euro. The Unemployment Rate from the whole bloc raised to 8.3% from the forecasted 8.2% and weighed on Euro.

After the release of economic data, the single currency Euro came under fresh pressure amid the rising fears of investors’ that strong quarterly economic growth in Germany, which raised to 8.2% in the third quarter, will be temporary as the virus spread in the region has picked up the pace. This added further pressure on EUR/USD pair on Friday.

From the U.S. side, at 17:30 GMT, the Core PCE Price Index for September came in line with the anticipations of 0.2%. The Personal Spending for September rose to 1.4% against the projected 1.0% and supported the U.S. dollar and added pressure on EUR/USD pair. The Employment Cost Index for the quarter came in line with the expectations of 0.5%. The Personal Income for September also surged to 0.9% from the estimated 0.3% and supported the U.S. dollar and add losses in EUR/USD pair.

 At 18:45 GMT, the Chicago PMI for October upraised to 61.1 against the predictable 58.2 and supported the U.S. dollar. At 19:00 GMT, the Revised UoM Consumer Sentiment for October also elevated to 81.8 against the estimated 81.2 and supported the U.S. dollar that supported the losses on EUR/USD pair on Friday. The Revised UoM Inflation Expectations for October were reported as 2.6% compared to September’s 2.7%.

Daily Technical Levels

Support Resistance

1.1798     1.1789

1.1672     1.1834

1.1626     1.1870

Pivot point: 1.1753

EUR/USD– Trading Tip

The EUR/USD traded with a bearish bias, having dropped below the support area of 1.1653. At the moment, the EUR/USD is likely to face the resistance at the same level of 1.1653. On the higher side, a bullish crossover of 1.1653 increases the odds of continuing an upward trend, and it may lead the EUR/USD price towards 1.1700. Further bullish crossover of this area can lead the pair towards the 1.1758 level. Conversely, a bearish crossover of 1.1653 support level has opened additional room for selling until the 1.1613 area as a double bottom support area extends the level.  

GBP/USD – Daily Analysis

The GBP/USD pair was closed at 1.29464 after placing a high of 1.29879 and a low of 1.28989. After placing losses for two consecutive days, the GBP/USD pair raised on Friday and posted gains. The GBP/USD pair rose on Friday despite the strength of the U.S. dollar, improved risk-averse market sentiment, and the rising number of coronavirus cases in Great Britain. The rising number of coronavirus cases in the U.K. showed that the imposed restrictions might be insufficient, and the country should follow the steps of Europe and France.

On the U.S. Presidential election front, the polls after the presidential debate showed that former vice president Joe Biden was leading over President Donald Trump. The chances for a blue wave in the U.S. gave pressure on local currency and supported the gains of the GBP/USD pair on Friday. On the data front, at 11:52 GMT, the Nationwide House Price Index for October raised to 0.8% from the forecasted 0.4% and supported British Pound that added further gains in GBP/USD pair.

From the U.S. side, at 17:30 GMT, the Core PCE Price Index for September came as anticipated by 0.2%. The Personal Spending for September surged to 1.4% against the anticipated 1.0% and supported the U.S. dollar. The Employment Cost Index for the quarter came as expected of 0.5%. The Personal Income for September also raised to 0.9% from the projected 0.3% and supported the U.S. dollar.

At 18:45 GMT, the Chicago PMI for October surged to 61.1 against the anticipated 58.2 and supported the U.S. dollar. At 19:00 GMT, the Revised UoM Consumer Sentiment for October also rose to 81.8 against the forecasted 81.2 and supported the U.S. dollar. The Revised UoM Inflation Expectations for October came as 2.6% in comparison to September’s 2.7%. Despite the better than expected macroeconomic figures from the U.S., the U.S. dollar remained lower ahead of upcoming elections and weighed on GBP/USD pair on Friday.

Furthermore, the Brexit developments also helped the GBP/USD pair to stay higher in such circumstances this week. The Chief EU Negotiator Michel Barnier extended his stay in London to discuss the Brexit deal with his U.K. counterpart. The fact that he has delayed his stay also gave some hope that progress has been made in Brexit proves and supported GBP/USD pair.

The reports also suggested that both sides have almost reached an agreement over the state aid issue, and the only sticking point in the UK-EU deal left was the fisheries. These Brexit developments in depressing circumstances supported the GBP/USD pair on Friday.

Daily Technical Levels

Support Resistance

1.2909     1.3057

1.2839     1.3135

1.2762     1.3205

Pivot point: 1.2987

GBP/USD– Trading Tip

The GBP/USD is trading sharply bearish to trade over the double bottom support area of 1.2910 level. On the 2 hour timeframe, the GBP/USD pair has formed a downward channel, and bearish trend continuation can lead the pair further lower towards the next support area of 1.2830 level. However, to see that kind of selling, the Cable needs to violate the immediate support area of 1.2910. The MACD and 50 EMA support selling; therefore, we should look for a selling trade below the 1.2910 level today. 

USD/JPY – Daily Analysis

The USD/JPY pair was closed at 104.673 after placing a high of 104.740and a low of 104.123. The USD/JPY pair extended its previous daily gains and rose for the second consecutive session on Friday.

The U.S. dollar was moving back and forth on Friday within the previous ranges, however, was unable to find a significant recovery. The second round of lockdown in Europe and the cautious market mood ahead of the U.S. Presidential elections kept the pair higher as the risk-averse market sentiment was gaining traction.

On the macroeconomic front, at 04:30 GMT, the Tokyo Core CPI for the year remained flat at -0.5%. The Unemployment Rate from Japan declined to 3.0% in September from the forecasted 3.1% and supported the Japanese Yen. At 04:50 GMT, the Prelim Industrial Production for September also raised to 4.0% from the expected 3.0% and supported the Japanese Yen. At 10:00 GMT, the Housing Starts from Japan for September dropped to -9.9% from the forecasted -8.6% and weighed on the Japanese Yen and supported the upside momentum in the USD/JPY pair.

From the U.S. side, at 17:30 GMT, the Core PCE Price Index for September remained flat at 0.2%. The Personal Spending for September advanced to 1.4% from the expected 1.0% and supported the U.S. dollar. The Employment Cost Index for the quarter came in line with the expectations of 0.5%. The Personal Income for September raised to 0.9% from the forecasted 0.3% and supported the U.S. dollar.

 At 18:45 GMT, the Chicago PMI for October surged to 61.1 against the expectable 58.2 and supported the U.S. dollar. At 19:00 GMT, the Revised UoM Consumer Sentiment for October also advanced to 81.8 against the anticipated 81.2 and helped the U.S. dollar. The Revised UoM Inflation Expectations for October came as 2.6% in comparison to September’s 2.7%.

The stronger than expected data from the U.S. side also supported the USD/JPY pair’s upside movement on Friday. Meanwhile, the market mood was inclined towards the U.S. dollar demand in safe-haven as the growing number of infections in Europe forced the governments to impose lockdowns, which raised concerns over the global economic recovery when the economies were already struggling.

Furthermore, on Friday, the Federal Reserve declared that it will amend its main street lending program to support better small businesses that were still fighting the crisis of coronavirus pandemic. The central bank revealed that it would reduce the minimum amount that can be borrowed by the small & medium-sized businesses from $250,000 to $100,000. The Federal Reserve said that the change in the main-street lending program had been made to support pandemic-hit small companies. These announcements from the Fed weighed on the U.S. dollar and kept the gains in USD.JPY pair limited on Friday.

Daily Technical Levels

Support Resistance

104.07     104.53

103.86     104.78

103.62     104.99

Pivot point: 104.32

USD/JPY – Trading Tips

The USD/JPY is trading slightly bullish at the 104.745 level, having crossed over the immediate resistance area of the 104.600 mark. On the 2 hour timeframe, the USD/JPY has violated the downward trendline at 104.550 level, and now the same level is likely to support the USD/JPY pair. The closing of candles over 104.650 level is supporting strong odds of bullish trend continuation until 105.049 level. Further bullish trend continuation can also lead the USD/JPY pair towards the 105.800 level, but, I’m afraid, traders will wait for the U.S. Elections and the U.S. NFP later this Friday. Good luck! 

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Forex Signals

AUD/USD Fails to Stop Previous Week Sharp Losses – Quick Intraday Outlook! 

During Monday’s early Asian trading hours, the AUD/USD currency pair failed to stop its previous week’s bearish moves and took further offers near well below the 0.7000 level mainly due to prevalent risk-off market sentiment, triggered by the worsening coronavirus (COVID-19) conditions in Europe 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 fading hopes of additional U.S. fiscal stimulus. 

During Monday’s early Asian trading hours, the AUD/USD currency pair failed to stop its previous week’s bearish moves and took further offers near well below the 0.7000 level mainly due to prevalent risk-off market sentiment, triggered by the worsening coronavirus (COVID-19) conditions in Europe 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 fading hopes of additional U.S. fiscal stimulus. 

During Monday’s early Asian trading hours, the AUD/USD currency pair failed to stop its previous week’s bearish moves and took further offers near well below the 0.7000 level mainly due to prevalent risk-off market sentiment, triggered by the worsening coronavirus (COVID-19) conditions in Europe 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 fading hopes of additional U.S. fiscal stimulus. 

On the other hand, the broad-based U.S. dollar fresh strength, backed by the combination of factors, has also contributed to the currency pair losses. At the moment, the AUD/USD currency pair is currently trading at 0.7094 and consolidating in the range between 0.7093 – 0.7172.

The market trading sentiment continues to be depressed during the early Asian trading session as the condition of the second wave of coronavirus infections in Europe and the U.K. getting worse time by time. As per the latest report, the global coronavirus cases exceeded 500,000 last week with Europe crossing the bleak milestone of 10 million total infections. 

This, in turn, the major Europeans like Germany and France, are ready to enter partial one-month lockdowns in efforts to stop a growing second wave of the pandemic. Whereas, the U.K. is facing more than 20,000 new cases per day while a record rise of U.S. cases is killing up to 1,000 people a day. 

Additionally, the long-lasting inability to pass the U.S. fiscal package as well as the jitters ahead 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. In the meantime, the renewed concerns over worsening diplomatic tensions between the world’s two largest economies also placed a downside pressure on the market trading, which keeps the AUD/USD currency pair under pressure. 

The greenback succeeded to extend its last week gains and took some further bids during Monday’s Asian session as investors still prefer the safe-haven assets in the wake of risk-off market sentiment. However, the U.S. dollar gains seem rather unaffected by the intensifying political uncertainty ahead of the upcoming U.S. presidential election on November 3. However, the ongoing disappointment ahead of the key U.S. elections where the Democratic victory is widely anticipated might cap further upside momentum for the U.S. dollar. 

The reason for the losses in the currency pair could also be associated with the increased odds of an interest rate cut by the Reserve Bank of Australia in November. As per the latest report. The RBA is broadly expected to take down the benchmark interest rate to the record low of 0.10% from 0.25% currently. The reason could not only be the dovish comments from Governor Philip Lowe but downbeat minutes also favour the rate cut forecasts.

On the contrary, China’s official PMIs came in better than expected in October, which becomes the main factor that helps the currency pair to limit its deeper losses. At the data front, China’s official NBS Manufacturing and Non-Manufacturing PMIs for October flashed better than 51.3 and 52.1 respective forecasts to 51.4 and 56.2 respective figures. Moreover, the losses in the currency pair were also capped by the reports suggesting that the coronavirus conditions in Australia have started to ease, and Queensland is soothing border conditions.


Daily Support and Resistance

S1 0.6916

S2 0.6977

S3 0.7003

Pivot Point 0.7038

R1 0.7064

R2 0.7098

R3 0.7159

The AUD/USD has disrupted the double bottom support mark of 0.7011, and beneath this, the AUD/USD is expected to trade with a bearish sentiment today. On the downside, the AUD/USD may meet critical support at the levels of 0.6997 and 0.6974. In contrast, the AUD/USD may extend to a shift on the higher side on violation of 0.7024 mark to begin the Aussie price towards 0.7054 mark. Good luck! 

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Forex Signals

AUD/USD Choppy Session Continues – Brace for Breakout Signal! 

The AUD/USD pair was closed at 0.70309 after placing a high of 0.70757 and a low of 0.70021. The AUD/USD pair extended its previous daily losses on Thursday and dropped further below towards its lowest level since May 19th. The decline in the AUD/USD pair was understandable ahead of the next week’s massive risk events. The Reserve Bank of Australia and the US election on the same day. The currency pair started rushing towards the crucial support at the 0.700 handle due to the strength of the US dollar.

The AUD/USD pair was closed at 0.70309 after placing a high of 0.70757 and a low of 0.70021. The AUD/USD pair extended its previous daily losses on Thursday and dropped further below towards its lowest level since May 19th. The decline in the AUD/USD pair was understandable ahead of the next week’s massive risk events. The Reserve Bank of Australia and the US election on the same day. The currency pair started rushing towards the crucial support at the 0.700 handle due to the strength of the US dollar.

The AUD/USD pair was closed at 0.70309 after placing a high of 0.70757 and a low of 0.70021. The AUD/USD pair extended its previous daily losses on Thursday and dropped further below towards its lowest level since May 19th. The decline in the AUD/USD pair was understandable ahead of the next week’s massive risk events. The Reserve Bank of Australia and the US election on the same day. The currency pair started rushing towards the crucial support at the 0.700 handle due to the strength of the US dollar.

The US dollar was strong across the board ahead of the US Presidential election on November 3rd due to many factors including the latest uncertainty over the next round of US stimulus measures. The House Speaker Nancy Pelosi has weighed on market hopes for the successive CARES package by saying that the Trump administration would have to answer her on many critical issues before getting a consensus on the US stimulus package.

The investors that were waiting for elections to come next week and after that a stimulus measure will be passes, were disappointed after these comments and their hopes vanished that the same stalemate will continue even after the elections. These concerns weighed on market sentiment and dragged the AUD/USD pair on the downside.

On the data front, at 05:30 GMT, the Import Prices for the quarter dropped to -3.5% from the projected -2.1% and weighed on the Australian dollar and added in the losses of AUD/USD pair. The NAB Quarterly Business Confidence came in as -10 against the previous -15 in the third quarter.

From the US side, at 17:30 GMT, the Advanced GDP for the quarter rose to 33.1% from the forecasted 32.0% and supported the US dollar. The Unemployment Claims for the previous week fell to 751K from the projected 773K and supported the US dollar. At 17:32 GMT, the Advance GDP Price Index for the quarter surged to 3.6% from the forecasted 2.9% and supported the US dollar. At 19:00 GMT, the Pending Home Sales for September was chopped down to -2.2% from the anticipated 3.1% and weighed on the US dollar.

Most of the macroeconomic data from the US like GDP and Unemployment Claims came in better than expected and supported the US dollar that ultimately weighed on AUD/USD pair on Thursday.

Daily Technical levels

Support Resistance

0.7002 0.7122

0.6959 0.7201

0.6881 0.7243

Pivot point: 0.7080

The AUD/USD pair is trading with a bearish bias below 0.7047 level, the resistance level that’s extended downward trendline support area of 0.7047 level. Continuation of a selling trend in the AUD/USD pair may lead the AUD/USD price towards the support area of 0.7005, and below this, the AUD/USD pair may find next support around 0.6967. I will consider opening a selling trade below 0.7069 area today. Good luck! 

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Forex Signals

USD/CAD Choppy Session Continues – Brace for Breakout Signal! 

The USD/CAD pair was closed at 1.33195 after placing a high of 1.33896 and a low of 1.32777. On Thursday, the USD/CAD pair moved higher in the early trading session due to the rising demand for the U.S. dollar and declining crude oil prices on the day. However, the gains in USD/CAD failed to remain until the end of the day, and the pair lost all of its gains at the late trading session on Thursday and provided a flat movement for the session.

The USD/CAD pair was closed at 1.33195 after placing a high of 1.33896 and a low of 1.32777. On Thursday, the USD/CAD pair moved higher in the early trading session due to the rising demand for the U.S. dollar and declining crude oil prices on the day. However, the gains in USD/CAD failed to remain until the end of the day, and the pair lost all of its gains at the late trading session on Thursday and provided a flat movement for the session.

The USD/CAD pair was closed at 1.33195 after placing a high of 1.33896 and a low of 1.32777. On Thursday, the USD/CAD pair moved higher in the early trading session due to the rising demand for the U.S. dollar and declining crude oil prices on the day. However, the gains in USD/CAD failed to remain until the end of the day, and the pair lost all of its gains at the late trading session on Thursday and provided a flat movement for the session.

The USD/CAD pair closed its day at the same level it started its day with at 1.33195 on Thursday. The rise in the USD/CAD pair was due to the strength of the U.S. dollar onboard. The U.S. Dollar Index rose to 94 levels on Thursday to its highest level in a month and supported the upward momentum of the USD/CAD pair. The U.S. dollar was also strong as the House Speaker Nancy Pelosi killed the hopes that a U.S. stimulus package will be delivered after the U.S. elections. These uncertainties raised the risk sentiment and helped the risk perceived USD/CAD pair to rise on Thursday.

Furthermore, the heavy selling pressure surrounding the WTI crude oil prices provided a boost to USD/CAD prices in the early trading session. The concerns over the negative impact of the rising number of coronavirus cases globally have been causing an uneven recovery in energy demand. The increasing number of countries imposing restrictions raised concerns for energy demand and the WTI Crude oil prices suffered on Thursday and fell below the $35 level to $34.92 per barrel. The sharp decline in WTI crude oil prices weighed on commodity-linked Loonie and supported the upward momentum of the USD/CAD pair.

On the data front, from the U.S. side, at 17:30 GMT, the Advanced GDP for the quarter rose to 33.1% from the expected 32.0% and supported the U.S. dollar. The Unemployment Claims for the previous week declined to 751K from the estimated 773K and supported the U.S. dollar. At 17:32 GMT, the Advance GDP Price Index for the quarter rose to 3.6% from the projected 2.9% and supported the U.S. dollar. At 19:00 GMT, the Pending Home Sales for September fell to -2.2% from the anticipated 3.1% and weighed on the U.S. dollar.

The strong GDP and unemployment claim data from the US-supported US dollar and added strength to the USD/CAD pair on Thursday. While from the Canadian side, the Building Permits for September came in as 17.0% against August’s 1.4% and supported the Canadian dollar that kept the gains in the USD/CAD pair limited. The pair USD/CAD started losing all of its daily gains in late trading session as profit-taking started in the market. The USD/CAD pair rose to its one-month highest level but failed to remain there and dropped to give flat movement for Thursday.


Daily Technical levels

Support Resistance

1.3219 1.3377

1.3119 1.3435

1.3061 1.3535

Pivot point: 1.3277

The USD/CAD pair is trading choppy session within 1.3339 – 1.3300 as traders seem to wait for a solid reason to trigger a breakout. In any case, a bearish breakout of 1.3300 level can extend selling bias until 1.3240 level, and below this, the double bottom level is likely to provide next support at 1.3112. Conversely, the bullish breakout of 1.3340 level is likely to target the 1.3420 mark. The MACD and RSI are in support of bullish bias; however, the signal isn’t that strong yet. Let’s brace to trade the breakout pattern today. Good luck! 

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Forex Market Analysis

Daily F.X. Analysis, October 30 – Top Trade Setups In Forex – Series of GDP Ahead! 

On the news front, the economic calendar is due to a report series of CPI and GDP figures from the European economy. These events are likely to be overshadowed by the U.S. Personal Pending, Chicago PMI, and Revised UoM Consumer Sentiment, which are expected to slightly worse than beforehand. This may add further bearish bias for the U.S. dollar today.

On the news front, the economic calendar is due to a report series of CPI and GDP figures from the European economy. These events are likely to be overshadowed by the U.S. Personal Pending, Chicago PMI, and Revised UoM Consumer Sentiment, which are expected to slightly worse than beforehand. This may add further bearish bias for the U.S. dollar today.

On the news front, the economic calendar is due to a report series of CPI and GDP figures from the European economy. These events are likely to be overshadowed by the U.S. Personal Pending, Chicago PMI, and Revised UoM Consumer Sentiment, which are expected to slightly worse than beforehand. This may add further bearish bias for the U.S. dollar today.

Economic Events to Watch Today  

 

Economic Calendar by TradingView

EUR/USD – Daily Analysis

The EUR/USD pair’s prices were closed at 1.16742 after placing a high of 1.17587 and a low of 1.16500. The EUR/USD pair extended its previous daily losses and continued its bearish streak for the 4th consecutive session on Thursday. EUR/USD pair dropped to its more than one month lowest level on Thursday amid the broad-based U.S. dollar strength along with the rising number of lockdown restrictions in Europe.

The sharp decline in Euro against the U.S. dollar was derived by the European Central Bank’s decision on Thursday to hold its interest rates but gave signals that another monetary policy tool remains, and the bank would recalibrate its policy tools in December. As per the President of the European Central Bank, Christine Lagarde, it was necessary to cushion the European economy through pandemic and recalibrate its instruments at their next Governing Council meeting.

Lagarde refrained from expressing that the bank was looking at using all instruments rather than just topping up the 1.35 trillion euros PEPP at its upcoming Dec.10th meeting. Lagarde warned that the risks to the Eurozone recovery were tilted to the downside and suggested the pace to recovery or lack thereof would largely depend on the efforts of the economic bloc to contain the virus spread.

The growth of the Eurozone economy has come under pressure as the two biggest economies of the European Union, France, and Germany, have been forced to re-impose lockdown measures and raised the urgency to deliver more easing at the end of the year.

The Euro currency remained under pressure on Thursday after Lagarde’s comments and the central bank’s decision that ultimately added pressure on EUR/USD pair.

For October, the German Prelim CPI raised to 0.1% from the forecasted 0.0% and supported the single currency Euro on the data front. At 13:00 GMT, the Spanish Flash CPI for the year declined to -0.9% from the forecasted -0.4% and weighed on the single currency Euro that added pressure on EUR/USD pair. At 13:55 GMT, the German Unemployment Change for September came in as -35K against the forecasted -5K and supported the single currency Euro.

At 17:30 GMT, the Advanced GDP for the quarter raised to 33.1% from the estimated 32.0% and supported the U.S. dollar from the U.S. side. The Unemployment Claims for the previous week slipped to 751K from the anticipated 773K and supported the U.S. dollar. At 17:32 GMT, the Advance GDP Price Index for the quarter surged to 3.6% from the projected 2.9% and supported the U.S. dollar. At 19:00 GMT, the Pending Home Sales for September dropped to -2.2% from the projected 3.1% and weighed on the U.S. dollar. Most of the US-supported data weighed on EUR/USD pair towards the downside and added in the losses of the currency pair on Thursday.

Daily Technical Levels

Support Resistance

1.1798 1.1789

1.1672 1.1834

1.1626 1.1870

Pivot point: 1.1753

EUR/USD– Trading Tip

The EUR/USD traded with a bearish bias, having dropped to the support area of 1.1653. Above this, the pair has strong odds of taking a bullish turn until the 1.1700 area. Continuation of an upward trend may lead the EUR/USD price towards 1.1758, and bullish crossover of this area can lead the pair towards the 1.1820 level. Conversely, a bearish crossover of 1.1653 support level can extend selling until the 1.1613 area as a double bottom support area extends the level.  

GBP/USD – Daily Analysis

The GBP/USD pair was closed at 1.29126 after placing a high of 1.30255 and a low of 1.28806. The GBP/USD pair extended its previous daily losses and remained bearish on Thursday. The GBP/USD pair moved to its lowest level in almost 2-weeks and then recovered some of its losses in the late trading session on Thursday. The strength of the U.S. dollar drove the decline in the GBP/USD pair.

The U.S. dollar was strong due to the emerging risk-averse market sentiment and the strong macroeconomic data for the day. The delayed U.S. stimulus measure also helped the U.S. dollar to remain strong in the market. The U.S. Dollar Index (DXY) climbed above 94.00 level, its highest in almost a month, on Thursday as the risk-averse market sentiment emerged. The strong U.S. dollar added pressure on GBP.USD pair and dragged them to its 10-days lowest level.

On the data front, at 14:30 GMT, the M4 Money Supply for September raised 0.9% from the forecasted 0.3% and supported British Pound. At 14:32 GMT, the Mortgage Approvals raised to 91K from the forecasted 76K and supported British Pound. The Net Lending to Individuals came in line with the expectations of 4.2B. Britain’s data supported the local currency Sterling that capped further losses in the GBP/USD pair on Thursday.

From the U.S. side, at 17:30 GMT, the Advanced GDP for the quarter surged to 33.1% from the projected 32.0% and supported the U.S. dollar. The Unemployment Claims for the previous week fell to 751K from the estimated 773K and supported the U.S. dollar. At 17:32 GMT, the Advance GDP Price Index for the quarter advanced to 3.6% from the anticipated 2.9% and supported the U.S. dollar. At 19:00 GMT, the Pending Home Sales for September fell to -2.2% from the expected 3.1% and weighed on the U.S. dollar. The better than expected data from the U.S. supported the local currency U.S. dollar that added pressure on the declining GBP/USD pair’s prices.

On the Brexit front, the negotiations between the E.U. and U.K. were in progress with no headlines for the time being. However, the hopes were high that a deal could be reached this time as both sides were eager to solve the impasse given the limited time left for the end of the transition period. If a deal is reached, then British Pound will see a sharp rise in prices; however, analysts believe that a Brexit deal would likely offer only temporary relief for British Pound. They believe that Sterling’s near-term outlook will continue to be dominated by the late-stage Brexit negotiations that would include the significant trade frictions, the threat of tariffs and quotas.

It means that a Brexit deal between the E.U. and U.K. would not remove all the risks for British Pound and that sterling will still have to face further difficulties even after an agreement is reached.

Daily Technical Levels

Support Resistance

1.2909 1.3057

1.2839 1.3135

1.2762 1.3205

Pivot point: 1.2987

GBP/USD– Trading Tip

The GBP/USD is trading sharply bearish since the violation of the symmetric triangle pattern at the 1.3017 level, and the formation of bearish candles below the 1.3017 level has driven strong selling until the 1.2913 support area. For the moment, the Cable my lead GBP/USD price towards 1.3046 level for the sake of bullish correction. Conversely, the GBP/USD pair may find immediate support at 1.2913, and a bearish breakout of this level can be captured until the 1.2840 level.  

USD/JPY – Daily Analysis

The USD/JPY pair was closed at 104.593 after placing a high of 104.725 and a low of 104.023. The USD/JPY pair rose on Thursday and posted gains after falling for two consecutive sessions on the back of the strong U.S. dollar and the better than expected macroeconomic data from the U.S., along with the disappointing data from Japan.

At 04:50 GMT, the Retail Sales from Japan for September dropped to -8.7% from the forecasted -7.5% and weighed on the Japanese Yen that added strength to the USD/JPY pair. At 10:00 GMT, the Consumer Confidence for October in Japan declined to 33.6 from the forecasted 35.2 and weighed on the Japanese Yen that supported the USD/JPY pair’s bullish move.

From the U.S. side, at 17:30 GMT, the Advanced GDP for the quarter advanced to 33.1% from the estimated 32.0% and supported the U.S. dollar. The Unemployment Claims for the previous week slipped to 751K from the anticipated 773K and supported the U.S. dollar. At 17:32 GMT, the Advance GDP Price Index for the quarter raised to 3.6% from the estimated 2.9% and supported the U.S. dollar. At 19:00 GMT, the Pending Home Sales for September declined to -2.2% from the projected 3.1% and weighed on the U.S. dollar.

The better than expected data from the U.S. gave strength to the U.S. dollar that ultimately added further gains to the USD/JPY pair on Thursday. Meanwhile, the U.S. dollar was also strong due to the comments from the Head of Congress and White House that signaled a tough road ahead for a coronavirus stimulus even after the next week’s U.S. election.

The U.S. Congress delivered a Coronavirus Aid, Relief, and Economic Security (CARES) stimulus worth about $3 trillion. Since then, the Democrats and the Republicans have been locked in a stalemate on a successive package to CARES. The differences have been over the size of the next relief bill among both parties. Over the last two weeks, the hopes that a coronavirus relief package will be delivered before elections faded away despite the months of negotiations between Democrats & Republicans. The investors thought that a deal might be reached after the election, regardless of the winner.

However, the Speaker of the House of Representatives, Nancy Pelosi, revealed on Thursday that these hopes that a package will be delivered after the elections without any difficulty were not right as Republicans were yet to answer her on funding for several critical areas. The uncertainty and lack of hopes that a stimulus will be delivered even after elections raised the U.S. dollar and added further gains in the USD/JPY pair on Thursday. However, the USD/JPY currency pair’s gains were limited due to the emerging risk-averse market sentiment in the market on Thursday.

Daily Technical Levels

Support Resistance

104.07 104.53

103.86 104.78

103.62 104.99

Pivot point: 104.32

USD/JPY – Trading Tips

The bearish bias in the USD/JPY continues to extend the bearish bias; however, it’s trading within a choppy trading range now. The choppy range may provide resistance at 104.505 to 104.200 area. Violation of this range can trigger further selling until the 103.900 level. The MACD and RSI support selling bias today; therefore, we will be looking to enter a selling trade below 104.24 today. A violation of this level has high odds of leading the USD/JPY pair further lower towards the 103.900 level. Good luck! 

Categories
Forex Signals

AUD/USD Stop Its Overnight Sharp Losses – Brace for Correction! 

During Thursday’s early Asian trading hours, the AUD/USD currency pair failed to stop its overnight bearish moves and hit the intra-day low around well below 0.7050 level despite the hotter-than-expected Australian consumer inflation figures, which showed that Australia’s headline CPI increased 1.6% QoQ during the 3rd-quarter as against a 1.9% contraction in the previous quarter.

During Thursday’s early Asian trading hours, the AUD/USD currency pair failed to stop its overnight bearish moves and hit the intra-day low around well below 0.7050 level despite the hotter-than-expected Australian consumer inflation figures, which showed that Australia’s headline CPI increased 1.6% QoQ during the 3rd-quarter as against a 1.9% contraction in the previous quarter.

During Thursday’s early Asian trading hours, the AUD/USD currency pair failed to stop its overnight bearish moves and hit the intra-day low around well below 0.7050 level despite the hotter-than-expected Australian consumer inflation figures, which showed that Australia’s headline CPI increased 1.6% QoQ during the 3rd-quarter as against a 1.9% contraction in the previous quarter.

However, the bearish sentiment around the currency pair could be associated with the prevalent risk-off market sentiment, triggered by the worsening coronavirus (COVID-19) conditions in Europe and the UK, which exerted some additional pressure on the perceived riskier Aussie and dragged the currency pair below 0.7050 marks. The lack of progress in stimulus talks in the US adds a burden around the market trading sentiment. 

Across the pond, the increasing probabilities of an interest rate cut by the Reserve Bank of Australia in November also played its major role in undermining the Australian dollar. On the other hand, the broad-based US dollar fresh strength, backed by the risk-on market mood, turned out to be one of the key factors that kept the currency pair under pressure. At the moment, the AUD/USD currency pair is currently trading at 0.7044 and consolidating in the range between 0.7038 – 0.7157.

The market trading sentiment failed to stop its previous day bearish moves and remains depressed during the early Asian session as the condition of the second wave of coronavirus infections in Europe and the UK getting worse time by time, which suggests that the local lockdowns are not able to tame the pandemic, which in turn suggests fresh national activity restrictions. Apart from this, the prevalent fears of a no-deal Brexit and the long-lasting inability to pass the US fiscal package also weighed on the risk sentiment, which eventually undermined the perceived riskier Australian dollar and contributed to the currency pair gains. 

The reason for the market risk-off mood could also be associated with the on-going U-China tussle as the renewed concerns over worsening diplomatic tensions between the world’s two largest economies keeps exerted downside pressure on the market trading, which keeps the AUD/USD currency pair under pressure. 

This, in turn, the broad-based US dollar succeeded in extending its overnight gains and took some further bid during the early Asian session as investors still prefer the safe-haven assets in the wake of risk-off market sentiment. However, the US dollar gains seem rather unaffected by the intensifying political uncertainty ahead of the upcoming US presidential election on November 3. However, the incoming polls tend to suggest a clear-cut presidential victory for the Democrat candidate Joe Biden, which might cap further upside momentum for the US dollar. However, the US dollar gains become the key factor that kept the currency pair under pressure. The dollar index, which pits the dollar against a bucket of 6-major currencies, stood at 93.472.

On the contrary, the upbeat Australian consumer price index (CPI) inflation data released soon before press time becomes the key factor that helps the currency pair limit its deeper losses. It is worth recalling that Australia’s CPI increased by 1.6% quarter-on-quarter in the 3rd-quarter, surpassing the forecast of 1.5% after the second quarter’s 1.9% contraction. The annualized figure matched the estimate of 0.7%. In the meantime, the Reserve Bank of Australia’s (RBA) trimmed-mean CPI rose 0.4% quarter-on-quarter against expectations for 0.3% and -0.1% previously. The annualized trimmed measure came in at 1.2%. Looking forward, the market traders will keep their eyes on the USD moves amid the lack of major data/events on the day. Furthermore, the risk catalyst like geopolitics and the virus woes, not to forget the Brexit, will also be key to watch for the fresh direction.


Daily Support and Resistance

S1 0.7065

S2 0.7097

S3 0.711

Pivot Point 0.7129

R1 0.7143

R2 0.7161

R3 0.7193

The AUD/USD pair faces immediate support at the 0.7014 area, and closing of candles above this mark is anticipated to direct selling bis until the 0.7060, and above this, the next resistance stays at 0.7106 level. The violation of 0.7060 can help us capture quick buy trade in AUD/USD pair. Further on the lower side, the AUD/USD pair may plunge until 0.7014. Let’s look for selling below 0.7129 level today. Good luck! 

Categories
Forex Market Analysis

Daily F.X. Analysis, October 29 – Top Trade Setups In Forex – Eyes on ECB Policy Rate! 

The focus will remain on the U.S. Advance GDP figures. GDP data expected to perform better than before as the data represents the economic activity of the lockdown period. Besides this, the major focus will remain on the ECB Monetary policy decision, where the ECB is expected to keep the interest rate unchanged. However, the increased number of  Covid-19 cases may trigger a dovish sentiment on the European official bank rate, and it may place bearish pressure on the single currency Euro. 

The focus will remain on the U.S. Advance GDP figures. GDP data expected to perform better than before as the data represents the economic activity of the lockdown period. Besides this, the major focus will remain on the ECB Monetary policy decision, where the ECB is expected to keep the interest rate unchanged. However, the increased number of  Covid-19 cases may trigger a dovish sentiment on the European official bank rate, and it may place bearish pressure on the single currency Euro. 

The focus will remain on the U.S. Advance GDP figures. GDP data expected to perform better than before as the data represents the economic activity of the lockdown period. Besides this, the major focus will remain on the ECB Monetary policy decision, where the ECB is expected to keep the interest rate unchanged. However, the increased number of  Covid-19 cases may trigger a dovish sentiment on the European official bank rate, and it may place bearish pressure on the single currency Euro. 

Economic Events to Watch Today  

 

EUR/USD – Daily Analysis

The EUR/USD pair was closed at 1.17460 after placing a high of 1.17879 and a low of 1.17176. The EUR/USD pair dropped to its one week lowest level and remained bearish throughout the day. The Euro fell against the U.S. dollar on Wednesday ahead of the European Central Bank meeting amid the rising fears that the Eurozone’s economic recovery will be hard as Germany and France introduced fresh lockdown measures to control the spread of coronavirus infections.

A four-week lockdown was introduced by German Chancellor Angela Merkel on Wednesday for the country to control the spread of the virus. The partial lockdown will start from Monday, and under the restrictions, the hospital sector will likely ease as restaurants, bars, gyms, cinemas will be closed while schools, daycare centers, and kindergartens will remain open.

France that is already under curfew, will announce a nationwide lockdown on Friday. The President of France Emmanuel Macron has said that the measures they had taken to control the spread did not work out and were insufficient to counter the second wave of coronavirus affecting all of Europe.

Both Germany and France have seen a rise in coronavirus cases, with France expected to experience 100,000 new cases per day in the coming days. These fears that the lockdown measures will greatly impact the emerging European economic recovery weighed heavily on a single currency on Wednesday.

At 12:00 GMT, German Import Prices raised in September to 0.3% from the forecasted -0.3% and supported Euro currency on the data front. At 17:30 GMT, the Goods Trade Balance for September came in as -79.4B against the projected -84.8B and supported the U.S. dollar that weighed on EUR/USD prices. The Prelim Wholesale Inventories from the U.S. in September were reported as -0.1% against the expected 0.4% and supported the U.S. dollar added in the losses of EUR/USD pair on Wednesday.

On the U.S. dollar front, the United States also saw records high numbers of coronavirus cases; however, the U.S. dollar remained strong across the board. It seems like investors chose to invest in the greenback in these uncertain times due to its safe-haven status. The strong U.S. dollar weighed further on EUR.USD pair on Wednesday, and the prices continued moving in downside momentum.

Daily Technical Levels

Support Resistance

1.1779     1.1825

1.1762     1.1856

1.1732     1.1872

Pivot Point: 1.1809

EUR/USD– Trading Tip

The EUR/USD traded with a bearish bias, having dropped to the support area of 1.1745. Above this, the pair has strong odds of taking a bullish turn until the 1.1790 area. Continuation of an upward trend may lead the EUR/USD price towards 1.1790, and bullish crossover of this area can lead the pair towards the 1.1820 level. Conversely, a bearish crossover of 1.1745 support level can extend selling until the 1.1694 area. 

GBP/USD – Daily Analysis

The GBP/USD pair was closed at 1.29877 after placing a high of 1.30636 and a low of 1.29163. The GBP/USD pair dropped and posted losses on Wednesday. The GBP/USD pair dropped to its seven days lowest level on Wednesday amid broad-based U.S. dollar strength and the rising number of coronavirus cases in the U.K. The Brexit impasse, along with the U.S. elections uncertainty, also weighed on GBP/USD pair on Wednesday.

The U.S. dollar was strong across the board on Wednesday as the global coronavirus spread raised the greenback’s safe-haven allure. The British Pound lost as much as 1% against the U.S. dollar on Wednesday as investors withdraw due to decreased hopes for global economic recovery and increased risk-aversion market sentiment.

The uncertainties surrounding the U.S. elections were already weighing on the market sentiment, and the resurgence of coronavirus cases in Europe and the United States emerged that escalated the concerns. In the past week, the rate of deaths in Europe rose by almost 40%, and it challenged the narrative that the virus was relatively harmless that had encouraged the easing of lockdown measures for the sake of local economies.

Both Germany and France announced new lockdown measures to control coronavirus spread, and the U.K. was also expected to impose Tier-3 restrictions. These fears weighed heavily on the local currency British Pound that ultimately dragged the GBP/USD pair’s prices on Wednesday to its one-week lowest level.

On the data front, t 05:01 GMT, BRC Shop Price Index for October came in as -1.2% compared to -1.6%. Whereas, from the U.S. side, at 17:30 GMT, the Goods Trade Balance for September was reported as -79.4B against the expected -84.8B and supported the U.S. dollar that weighed on GBP/USD prices. The Prelim Wholesale Inventories from the U.S. in September came in as -0.1% against the anticipated 0.4% and supported the U.S. dollar that weighed on GBP/USD pair on Wednesday.

On the Brexit front, Britain and the European Union have just over two months to reach a trade agreement before the status-quo transition period ends on December 31. The E.U.’s chief negotiator, Michel Barnier, is in London for negotiations, and it is believed that progress has been made over some sticking points.

The sentiment has raised hopes that this time a deal will be reached between the U.K. and the E.U. by early November. According to Bloomberg, both sides have begun work on the text of the agreement on the level competitive playing field and were close to finalizing a joint document covering state aid.

These developments regarding Brexit-deal gave some ease to the market sentiment and capped further losses in the GBP/USD pair on Wednesday.

Furthermore, the Bank of England has shown willingness to go for negative rates that had been partially priced in the market and had kept the British Pound under pressure. Therefore, any such action by the bank would not come as a surprise in the upcoming meeting, and it means that a negative interest rate effect could be of secondary importance for GBP traders than a shock of Brexit in the coming days.

Daily Technical Levels

Support Resistance

1.3001     1.3081

1.2961     1.3121

1.2921     1.3161

Pivot Point: 1.3041

GBP/USD– Trading Tip

The GBP/USD has violated the symmetric triangle pattern at the 1.3017 area, and closing of candles below the 1.3017 level has driven strong selling until the 1.2915 support area. On the higher side, the Cable my lead GBP/USD price towards 1.3046 level. For now, the GBP/USD pair may find an immediate resistance at 1.3046 are, and below this, selling can be captured until 1.2980 and 1.2919 level.  

USD/JPY – Daily Analysis

The USD/JPY pair was closed at 104.307 after placing a high of 104.554 and a low of 104.111. The USD/JPY pair remained bearish and placed losses on Wednesday. The USD/JPY pair has posted slight losses on Wednesday despite the broad-based U.S. dollar strength. The Japanese Yen has gained about 1.2% throughout the last three weeks in October and has weighed on the USD/JPY pair. The USD/JPY pair dropped on Wednesday to its lowest level since September 21.

The U.S. dollar was strong on Wednesday as its safe-haven status got attention after European nations started re-imposing lockdown measures to control the virus’s spread. However, the U.S. dollar’s strength could not reverse the USD/JPY pair’s movement on Wednesday as traders were focused more on the Bank of Japan’s decision in its upcoming monetary policy meeting on Thursday.

Bank of Japan is up to hold its monetary policy meeting on Thursday, and investors were pricing the potential moves by it ahead of the meeting. The Bank of Japan is expected to keep its rates unchanged at -10bps while maintaining a 10-year JGB yield target at 0.0%. The Bank of Japan has extended a deadline for two virus linked funding programs and enlarged asset purchases. As mentioned by the quarterly assessment report, the central bank has downgraded this fiscal year’s economic and inflation outlooks.

As the outlook reviews have already been priced in the market, any hint over additional monetary easing through Q.E. in December on Thursday could have a major impact on the Japanese yen and ultimately on the USD/JPY pair. Furthermore, the coronavirus cases in the United States were rising day by day and weighed on local currency as the chances for a fresh lockdown increased with the increased number of COVID-19 infections. Over the last seven days, the U.S. reported about half a million new coronavirus cases, and it has raised both economic and health-related concerns that have weighed on the local currency U.S. dollar. The USD/JPY pair also followed these rising concerns and kept moving in the downward direction on Wednesday.

On the data front, from the U.S. side, at 17:30 GMT, the Goods Trade Balance for September came in as -79.4B against the anticipated -84.8B and supported the U.S. dollar. The Prelim Wholesale Inventories from the U.S. in September came in as -0.1% against the projected 0.4% and supported the U.S. dollar. The strong U.S. dollar failed to reverse the USD/JPY pair’s negative momentum on Wednesday, and the pair kept falling towards its multi-week lowest level.

Daily Technical Levels

Support Resistance

104.22     104.73

104.05     105.07

103.70     105.25

Pivot point: 104.56

USD/JPY – Trading Tips

The bearish bias in the USD/JPY continues to extend the bearish bias; however, it’s trading within a choppy trading range now. The choppy range may provide resistance at 104.505 to 104.200 area. Violation of this range can trigger further selling until the 103.900 level. The MACD and RSI support selling bias today; therefore, we will be looking to enter a selling trade below 104.24 today as a violation of this level has high odds of leading the USD/JPY pair further lower towards the 103.900 level. Good luck! 

Categories
Forex Signals

USD/CAD Extended Overnight Gaining Streak – Is It Time to go Short?

Today in the early Asian trading session, the USD/CAD currency pair extended its previous session bullish bias and hit the session high around above 1.3300 level. However, the bullish sentiment around the currency pair was being supported by a pickup in the U.S. dollar demand and the ongoing drop in crude oil prices, which tend to undermine demand for the commodity-linked currency – the loonie. Hence, the broad-based U.S. dollar succeeded in gaining some positive traction on the day amid growing market worries about surging coronavirus cases in Europe and the United States, which keeps the market trading sentiment under pressure and undermined the safe-haven U.S. dollar. In addition to this, the long-lasting impasse over the next round of the U.S. fiscal stimulus measures added further burden on investors’ sentiment and benefitted the USD’s status as the global reserve currency. Across the pond, the reason for the currency pair bullish bias could also be attributed to the weaker crude oil prices, which undermined the demand for the commodity-linked currency the loonie and contributed to the currency pair gains. As of writing, the USD/CAD currency pair is currently trading at 1.3320 and consolidating in the range between 1.3319 – 1.3326.

Today in the early Asian trading session, the USD/CAD currency pair extended its previous session bullish bias and hit the session high around above 1.3300 level. However, the bullish sentiment around the currency pair was being supported by a pickup in the U.S. dollar demand and the ongoing drop in crude oil prices, which tend to undermine demand for the commodity-linked currency – the loonie. Hence, the broad-based U.S. dollar succeeded in gaining some positive traction on the day amid growing market worries about surging coronavirus cases in Europe and the United States, which keeps the market trading sentiment under pressure and undermined the safe-haven U.S. dollar. In addition to this, the long-lasting impasse over the next round of the U.S. fiscal stimulus measures added further burden on investors’ sentiment and benefitted the USD’s status as the global reserve currency. Across the pond, the reason for the currency pair bullish bias could also be attributed to the weaker crude oil prices, which undermined the demand for the commodity-linked currency the loonie and contributed to the currency pair gains. As of writing, the USD/CAD currency pair is currently trading at 1.3320 and consolidating in the range between 1.3319 – 1.3326.

Today in the early Asian trading session, the USD/CAD currency pair extended its previous session bullish bias and hit the session high around above 1.3300 level. However, the bullish sentiment around the currency pair was being supported by a pickup in the U.S. dollar demand and the ongoing drop in crude oil prices, which tend to undermine demand for the commodity-linked currency – the loonie. Hence, the broad-based U.S. dollar succeeded in gaining some positive traction on the day amid growing market worries about surging coronavirus cases in Europe and the United States, which keeps the market trading sentiment under pressure and undermined the safe-haven U.S. dollar. In addition to this, the long-lasting impasse over the next round of the U.S. fiscal stimulus measures added further burden on investors’ sentiment and benefitted the USD’s status as the global reserve currency. Across the pond, the reason for the currency pair bullish bias could also be attributed to the weaker crude oil prices, which undermined the demand for the commodity-linked currency the loonie and contributed to the currency pair gains. As of writing, the USD/CAD currency pair is currently trading at 1.3320 and consolidating in the range between 1.3319 – 1.3326.

As we all know that the market trading sentiment remains depressed during the Asian trading session as the concern about the second wave of coronavirus infections, the lockdown measures to control the outbreak in several countries, which kept the global risk sentiment under pressure. Thus, the ever-increasing cases of coronavirus across the globe, destroying hopes of any V-shaped economic recovery. This, in turn, urged investors to invest their money into safe-haven assets.

Additionally, the lack of clarity over the much-awaited coronavirus (COVID-19) stimulus bill also keeps the investors cautious. In the meantime, the U.S. political uncertainty also exerted downside pressure on the market trading sentiment. Besides, the long-lasting tussle between the world’s two largest economies also played its major role in undermining the market trading sentiment. This, in turn, boosted the U.S. dollar and was seen as a key factor that kept the currency pair higher.

This, in turn, the broad-based U.S. dollar succeeded in extending its early-day gains and remained well bid on the day as investors turned to the safe-haven in the wake of risk-off market sentiment. However, the greenback gains could be temporary due to the worries that the economic recovery in the U.S. could be stopped because of the reappearance of coronavirus cases. Besides this, the U.S. dollar gains were further boosted by a lack of progress toward a U.S. stimulus package, which puts traders in a cautious mood. However, the gains in the U.S. dollar kept the currency pair higher. The dollar index, which pits the dollar against a bucket of 6-major currencies, stood at 93.472.

Across the pond, the crude oil prices failed to stop its previous-day losing streak and witnessed some dramatic declines around below the $37.00 mark. However, the reason for the bearish bias around the crude oil prices could be attributed to the ever-increasing COVID-19 worries, which raised fears of renewed lockdown measures and depressed hopes for a swift recovery in the fuel demand. Across the pond, the declines in the crude oil prices were further bolstered after the surprisingly large U.S. crude stockpile build for last week reported by the government, which ultimately strengthened fears about depleting demand for fuel amid the worsening global coronavirus pandemic. Thus, the declines in crude oil prices undermined demand for the commodity-linked currency the loonie and contributed to the currency pair gains. 

Looking forward, the market traders will keep their eyes on the USD moves amid the lack of major data/events on the day. Furthermore, the risk catalyst like geopolitics and the virus woes, not to forget the Brexit, will also be key to watch for the fresh direction.


Daily Support and Resistance

S1 1.3066

S2 1.312

S3 1.3153

Pivot Point 1.3175

R1 1.3208

R2 1.323

R3 1.3285

Entry Price – Sell 1.32895

Stop Loss – 1.33295

Take Profit – 1.32395

Risk to Reward – 1:1

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

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

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Forex Signals

USD/JPY Takes Dip Amid Downward Channel – Brace for Selling! 

During the Europen session, the USD/JPY continues trading lower amid a downward channel at 102.298 level. The USD/JPY pair moved in a bearish direction and posted big losses on Tuesday. The USD/JPY pair was down on Tuesday amid the broad-based U.S. dollar weakness along with the rising risk-averse market sentiment on the back of fresh tensions between the U.S. and China. The safe-haven appeal was also supported by the rising number of coronavirus cases and lockdowns that drove the stock market on the downside and weighed on the USD/JPY pair as well.

During the Europen session, the USD/JPY continues trading lower amid a downward channel at 102.298 level. The USD/JPY pair moved in a bearish direction and posted big losses on Tuesday. The USD/JPY pair was down on Tuesday amid the broad-based U.S. dollar weakness along with the rising risk-averse market sentiment on the back of fresh tensions between the U.S. and China. The safe-haven appeal was also supported by the rising number of coronavirus cases and lockdowns that drove the stock market on the downside and weighed on the USD/JPY pair as well.

During the Europen session, the USD/JPY continues trading lower amid a downward channel at 102.298 level. The USD/JPY pair moved in a bearish direction and posted big losses on Tuesday. The USD/JPY pair was down on Tuesday amid the broad-based U.S. dollar weakness along with the rising risk-averse market sentiment on the back of fresh tensions between the U.S. and China. The safe-haven appeal was also supported by the rising number of coronavirus cases and lockdowns that drove the stock market on the downside and weighed on the USD/JPY pair as well.

The U.S. Dollar Index that measures the value of the greenback against the basket of six currencies dropped by 0.3% to 92.8 level on Tuesday that weighed on the U.S. dollar and dragged the USD/JPY pair prices.

On the coronavirus front, the United States, Russia, France, Italy, Netherland, Spain, and many other nations across the globe set a new record for the number of daily coronavirus cases. The U.S. reported more than 74,300 new cases in a single day, France reported more than 52,000 daily cases over the weekend. The global record for the infections was recorded as 43.4 million on Tuesday by the Johns Hopkins University.

The rising number of coronavirus cases urged governments to re-impose lockdown measures to curb the virus’s spread. These lockdowns in a situation where economies were still under recovery phase from the previous lockdown effects raised a high appeal for the safe-haven market sentiment in the market. The risk-averse sentiment supported the safe-haven Japanese Yen that ultimately weighed on the USD/JPY pair on Tuesday.

Meanwhile, on the data front, at 09:59 GMT, the BOJ Core CPI for the year dropped to -0.1% from the forecasted 0.0% and weighed on the Japanese Yen that failed to reverse the negative movement of the USD/JPY pair. At 18:00 GMT, August’s Housing Price Index rose to 1.5% from the anticipated 0.7% and supported the U.S. dollar. The S&P/CS Composite-20 HPI for the year also advanced to 5.2% from the projected 4.2% and supported the U.S. dollar. At 18:59 GMT, the Richmond Manufacturing Index for October raised to 29 against the expected 18 and supported the U.S. dollar but failed to impress investors; thus, the USD/JPY pair continued moving in the downward momentum on Tuesday.

However, at 19:00 GMT, the C.B. Consumer Confidence for October was dropped to 100.9 from the anticipated 102.1 and weighed on the U.S. dollar that added further pressure on the USD/JPY pair. The U.S. dollar failed to cheer the positive macroeconomic data on Tuesday because of the stalled talks for the next round of the U.S. stimulus package. The stalemate between the White House and the House of Representative Speaker Nancy Pelosi over the U.S. stimulus aid package’s size led to delayed talks till November 3rd election results and weighed on the U.S. dollar.

The USD/JPY continues to extend its bearish momentum as the pair trades at the 104.298 level. On the 4 hour timeframe, the USD/JPY has formed a downward channel that’s driving bearish movement in the market, and it may support the pair around 104.300 and 104.007 area. Conversely, the continuation of an upward movement is likely to drive the buying trend until the 104.778 level. Check out the sell setup below…


Categories
Forex Signals

USD/CAD Continues Trading Bullish – Upward Channel In Play! 

The USD/CAD pair was closed at 1.31832 after placing a high of 1.32119 and a low of 1.31420. The USD/CAD pair reversed its previous day move and fell on Tuesday to post losses. The USD/CAD pair dropped on Tuesday amid the broad-based US dollar weakness and the rising crude oil prices. However, the USD/CAD pair’s losses were recovered in the late American session after the release of American macroeconomic data and ahead of the Bank of Canada’s interest rate decision.

The USD/CAD pair was closed at 1.31832 after placing a high of 1.32119 and a low of 1.31420. The USD/CAD pair reversed its previous day move and fell on Tuesday to post losses. The USD/CAD pair dropped on Tuesday amid the broad-based US dollar weakness and the rising crude oil prices. However, the USD/CAD pair’s losses were recovered in the late American session after the release of American macroeconomic data and ahead of the Bank of Canada’s interest rate decision.

The USD/CAD pair was closed at 1.31832 after placing a high of 1.32119 and a low of 1.31420. The USD/CAD pair reversed its previous day move and fell on Tuesday to post losses. The USD/CAD pair dropped on Tuesday amid the broad-based US dollar weakness and the rising crude oil prices. However, the USD/CAD pair’s losses were recovered in the late American session after the release of American macroeconomic data and ahead of the Bank of Canada’s interest rate decision.

The USD/CAD pair failed to capitalize on the previous session’s strong positive move of around 100 pipis and started moving in the downward direction as the US dollar was weak across the board. The US Dollar Index fell to 92.8 level by 0.3% on Tuesday and weighed on the greenback that ultimately exerted pressure on the USD/CAD pair.

The US dollar was also weak because of the US political environment where chances of a blue wave in the upcoming US Presidential elections that will be held on November 3rd, were increasing as the national polls suggested.

Meanwhile, the US also reported 74,300 new coronavirus cases in a single day that also raised bars for fresh lockdowns. These depressing situations kept weighing on the US dollar that was already under pressure due to the stalled talks over the next round of the US stimulus package. As the coronavirus cases were increasing day by day and the governments were forced to impose restrictions again, economic recovery concerns raised even more as the government funding had dried up, and the talks for further measures have stalled till elections. These concerns kept the market sentiment under pressure, and the USD/CAD pair suffered due to it.

However, on the data front, at 18:00 GMT, the Housing Price Index for August from the US was raised to 1.5% from the expected 0.7% and supported the US dollar. The S&P/CS Composite-20 HPI for the year also advanced to 5.2% from the projected 4.2% and supported the US dollar. At 18:59 GMT, the Richmond Manufacturing Index for October surged to 29 against the expected 18 and supported the US dollar that recovered its earlier losses in the USD/CAD pair.

However, at 19:00 GMT, the CB Consumer Confidence for October was dropped to 100.9 from the projected 102.1 and weighed on the US dollar that added further pressure on the USD/CAD pair. The USD/CAD pair reversed its movement after the US economic data release amid the US dollar started to pick its demand as durable goods orders had recovered to their pre-pandemic levels, which was an encouraging sign.

Meanwhile, the WTI crude oil prices raised above the $39 level on Tuesday and gave strength to commodity-linked Loonie that ultimately added pressure on the USD/CAD prices and added further in the losses of pair on the day. Investors will keep a close eye on the Bank of Canada on Wednesday when the central bank will hold its monetary policy meeting. The interest rates are currently at the 0.25% level slashed in March and have not been changed until then. The rate statement could impact USD/CAD prices tomorrow as investors will be interested in the view of BoC related to the health of the economy. 


Entry Price – Buy 1.31941

Stop Loss – 1.31541

Take Profit – 1.32441

Risk to Reward – 1:1.25

Profit & Loss Per Standard Lot = -$400/ +$500

Profit & Loss Per Micro Lot = -$40/ +$50

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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, October 28 – Top Trade Setups In Forex – Bank of Canada Policy! 

On the news front, the Bank of Canada Overnight Rate rate and Rate Statement will be in focus, and it may drive some price action in Canadian pairs. Elsewhere, we don’t have any major event that can drive sharp movements in the U.S. dollar related pairs. Let’s focus on technical levels.

On the news front, the Bank of Canada Overnight Rate rate and Rate Statement will be in focus, and it may drive some price action in Canadian pairs. Elsewhere, we don’t have any major event that can drive sharp movements in the U.S. dollar related pairs. Let’s focus on technical levels.

On the news front, the Bank of Canada Overnight Rate rate and Rate Statement will be in focus, and it may drive some price action in Canadian pairs. Elsewhere, we don’t have any major event that can drive sharp movements in the U.S. dollar related pairs. Let’s focus on technical levels.

Economic Events to Watch Today  

 

EUR/USD – Daily Analysis

The EUR/USD closed at 1.17872 after placing a high of 1.18385 and a low of 1.17821. The EUR/USD pair moved lower and posted losses on Tuesday to extend the previous bearish trend. The EUR/USD pair extended its losses on Tuesday and fell for 2nd consecutive day despite the broad-based U.S. dollar weakness. The decline in the EUR/USD pair was due to the rising number of coronavirus cases and the increased numbers of lockdown in European nations to curb the COVID-19 crisis’s effects.

The EUR/USD pair moved in upward momentum during the first half of Tuesday and recovered most of its previous daily losses on the back of broad-based U.S. dollar weakness. The U.S. Dollar Index was down to 92.8 level by 0.3% on Tuesday as the uncertainty over the next round of U.S. stimulus package and the upcoming U.S. Presidential election weighed on the greenback.

The risk-averse market sentiment emerged in the market due to an increased number of coronavirus cases worldwide, especially in the European nations. The United States reported more than 74,300 new coronavirus cases on Monday that pushed the country’s daily average over the past week above 71,000. Meanwhile, in Europe, France prepared for a fresh lockdown as new daily confirmed coronavirus cases hit the highest ever at above 52,000 on a single day.

Italy and the Netherlands also reported a new record high of cases over the weekend. Spain declared a national emergency and imposed a night-time curfew for six months. All these reports from across the globe weighed on risk sentiment and dragged the riskier asset like EUR/USD pair on the downside. Meanwhile, the risk sentiment was further affected by the latest news from one of the vaccine developers, Pfizer, that said that getting early results by October for coronavirus vaccine shots would be nearly impossible. These comments added further to the downside momentum of EUR.USD pair on Tuesday.

On the data front, at 13:00 GMT, the Spanish Unemployment Rate for September raised to 16.3% against the forecasted 16.0% and weighed on the single currency Euro that added further to the losses of EUR/USD pair. At 14:00 GMT, the M3 Money Supply for the year was advanced to 10.4% from the forecasted 9.6% and supported Euro currency. The Private Loans for the year from Eurozone remained flat at 3.1%.

At 18:00 GMT, August’s Housing Price Index raised to 1.5% from the projected 0.7% and supported the U.S. dollar. The S&P/CS Composite-20 HPI for the year also elevated to 5.2% from the projected 4.2% and supported the U.S. dollar. At 18:59 GMT, the Richmond Manufacturing Index for October surged to 29 from the anticipated 18 and supported the U.S. dollar added in the additional losses in EUR/USD pair on Tuesday.

However, at 19:00 GMT, the C.B. Consumer Confidence for October dropped to 100.9 from the projected 102.1 and weighed on the U.S. dollar that capped further losses in EUR/USD prices on Tuesday. Furthermore, the risk sentiment was deteriorated by the latest tensions between the U.S. & China over the potential sales of American made missiles to Taiwan. This raised the market’s safe-haven appeal and weighed on the riskier EUR/USD pair for the day.

Daily Technical Levels

Support Resistance

1.1787     1.1845

1.1766     1.1882

1.1729     1.1904

Pivot point: 1.1824

EUR/USD– Trading Tip

The EUR/USD traded with a bearish bias, falling from the 1.1800 level to test the support area of the 1.1770 mark. Violation of the 1.1770 level can drive further selling until the 1.1733 support level, which is extended by an upward trendline. However, the MACD and RSI are supporting selling bias; therefore, the EUR/USD may exhibit a selling trend below an intraday pivot point level of 1.1824 level. Buying can be seen over the 1.1700 level today. 

GBP/USD – Daily Analysis

The GBP/USD pair was closed at 1.30414 after placing a high of 1.30793 and a low of 1.30007. The GBP/USD pair reversed on Tuesday and started moving in a bullish track. The GBP/USD pair rose and broke it’s 4 days bearish streak on Tuesday amid the broad-based U.S. dollar weakness and the rising optimism surrounding the Brexit process. The U.S. dollar was weak across the board amid the fallen U.S. yields and rising concerns over the U.S. stimulus package and upcoming U.S. election.

The U.S. dollar also failed to cheer the positive macroeconomic figures from the economic docket on Tuesday as investors’ focus shifted towards other developments. The Wall Street stocks were mixed during the day as the resurgence in COVID-19 cases was creating concerns among the market participants. The market’s risk sentiment was also affected by the latest dispute between the U.S. & China, along with the increased number of coronavirus cases and the slowdown of economies throughout the globe. The deteriorated risk sentiment weighed heavily on the risk perceived British Pound and GBP/USD pair gains remained limited for the day.

The British investors were more focused on the Brexit process’s optimism as the Chief EU negotiator Michel Barnier extended his stay in London for ongoing talks. This raised the hopes that both parties will soon reach a consensus over the Brexit-deal key points as the negotiations were extended. The silence around the talks matter was seen as a positive sign between the investors, and they started buying British Pound against the U.S. dollar.

Meanwhile, the PM Boris Johnson has also said that he was not waiting for the U.S. elections to deal with the E.U. He added that resolving the issues of state aid and fisheries was more critical at the time, and the markets started moving on the positive side for British Pound as U.K. was eager to strike a deal with the E.U.

On the data front, at 16:00 GMT, the CBI Realized Sales for October came in as -23 against the expectations of -1 and weighed on British Pound and capped further gains in GBP/USD pair. At 18:00 GMT, the Housing Price Index for August surged to 1.5% from the expectations of 0.7% and supported the U.S. dollar. The S&P/CS Composite-20 HPI for the year also surged to 5.2% from the forecasted 4.2% and helped the U.S. dollar. At 18:59 GMT, the Richmond Manufacturing Index for October raised to 29 against the expectations of 18 and supported the U.S. dollar that limited further gains in GBP/USD prices.

However, at 19:00 GMT, the C.B. Consumer Confidence for October fell to 100.9 from the expected 102.1 and weighed on the U.S. dollar that pushed the GBP/USD pair further on the upside. As for the U.S. Presidential elections, the uncertainty surrounding the question that who will win the election kept the U.S. dollar weak across the board on Tuesday. Some polls were suggesting a blue wave while others were in favor of re-electing president Donald Trump. Along with the stalled talks for the next round of the U.S. stimulus package before November 3, these uncertainties weighed on the U.S. dollar and supported the GBP/USD pair’s gains on Tuesday.

Daily Technical Levels

Support Resistance

1.2985     1.3067

1.2947     1.3113

1.2902     1.3150

Pivot point: 1.3030

GBP/USD– Trading Tip

The GBP/USD is trading sideways, holding within a symmetric triangle pattern extending neutral with a narrow trading range of 1.3071 – 1.3007 level. Violation of 1.3007 level can open additional room for selling until the 1.2965 area, which extends support due to an upward trendline on the 4-hour timeframe. The MACD and RSI are in support of selling bias today. Consider opening sell trades below the 1.3075 level today. On the other hand, the violation of 1.3071 can drive upward movement until the 1.3165 level today. 

USD/JPY – Daily Analysis

The USD/JPY pair was closed at 104.475 after placing a high of 104.888 and a low of 104.386. The USD/JPY pair moved in a bearish direction and posted big losses on Tuesday. The USD/JPY pair was down on Tuesday amid the broad-based U.S. dollar weakness along with the rising risk-averse market sentiment on the back of fresh tensions between the U.S. and China. The safe-haven appeal was also supported by the rising number of coronavirus cases and lockdowns that drove the stock market on the downside and weighed on the USD/JPY pair as well.

The U.S. Dollar Index that measures the value of the greenback against the basket of six currencies dropped by 0.3% to 92.8 level on Tuesday that weighed on the U.S. dollar and dragged the USD/JPY pair prices.

On the coronavirus front, the United States, Russia, France, Italy, Netherland, Spain, and many other nations across the globe set a new record for the number of daily coronavirus cases. The U.S. reported more than 74,300 new cases in a single day, France reported more than 52,000 daily cases over the weekend. The global record for the infections was recorded as 43.4 million on Tuesday by the Johns Hopkins University.

The rising number of coronavirus cases also urged governments to re-impose lockdown measures to curb the virus’s spread. These lockdowns in a situation where economies were still under recovery phase from the previous lockdown effects raised a high appeal for the safe-haven market sentiment in the market. The risk-averse sentiment supported the safe-haven Japanese Yen that ultimately weighed on the USD/JPY pair on Tuesday.

Meanwhile, on the data front, at 09:59 GMT, the BOJ Core CPI for the year dropped to -0.1% from the forecasted 0.0% and weighed on the Japanese Yen that failed to reverse the negative movement of the USD/JPY pair. At 18:00 GMT, August’s Housing Price Index rose to 1.5% from the anticipated 0.7% and supported the U.S. dollar. The S&P/CS Composite-20 HPI for the year also advanced to 5.2% from the projected 4.2% and supported the U.S. dollar. At 18:59 GMT, the Richmond Manufacturing Index for October raised to 29 against the expected 18 and supported the U.S. dollar but failed to impress investors; thus, the USD/JPY pair continued moving in the downward momentum on Tuesday.

However, at 19:00 GMT, the C.B. Consumer Confidence for October was dropped to 100.9 from the anticipated 102.1 and weighed on the U.S. dollar that added further pressure on the USD/JPY pair. The U.S. dollar failed to cheer the positive macroeconomic data on Tuesday because of the stalled talks for the next round of the U.S. stimulus package. The stalemate between the White House and the House of Representative Speaker Nancy Pelosi over the U.S. stimulus aid package’s size led to delayed talks till November 3rd election results and weighed on the U.S. dollar.

Furthermore, the Biden victory bets were started to weigh on the U.S. dollar as the polls suggested a blue wave in the upcoming Presidential elections. The weak U.S. dollar on Tuesday caused the USD/JPY pair to move on the downside. Moreover, the U.S. and China tensions came on-board after a long pause on Tuesday when news suggested a potential $2.4 billion sale of U.S. anti-ship missiles to Taiwan. In response to this news, China slapped sanctions on U.S. companies over national security interests. These fresh tensions between the U.S. and China raised safe-haven appeal and supported the safe-haven Japanese Yen that ultimately added weight on the USD/JPY pair on Tuesday.

Daily Technical Levels

Support Resistance

104.18     105.35

103.68     106.00

103.02     106.51

Pivot point: 104.84

USD/JPY – Trading Tips

The USD/JPY continues to extend its bearish momentum as the pair trades at the 104.298 level. On the 4 hour timeframe, the USD/JPY has formed a downward channel that’s driving bearish movement in the market, and it may support the pair around 104.300 and 104.007 area. Conversely, the continuation of an upward movement is likely to drive the buying trend until the 104.778 level. The MACD and RSI are supporting selling bias today; therefore, we will be looking to enter a selling trade below 104.84 today. Good luck! 

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Forex Signals

AUD/CAD Breaking Below Upward Channel – Is there a Sell Trade?

The USD/CAD extended its previous session bullish bias and hit the session high around above 0.9416 level. However, the bullish sentiment around the currency pair was being supported by a modest pickup in the ongoing drop in crude oil prices, which tend to undermine demand for the commodity-linked currency – the loonie. Hence, the broad-based U.S. dollar managed to gain some positive traction on the day amid growing market worries about surging coronavirus cases in Europe and the United States, which keeps the market trading sentiment under pressure and undermined the greenback. 

The USD/CAD extended its previous session bullish bias and hit the session high around above 0.9416 level. However, the bullish sentiment around the currency pair was being supported by a modest pickup in the ongoing drop in crude oil prices, which tend to undermine demand for the commodity-linked currency – the loonie. Hence, the broad-based U.S. dollar managed to gain some positive traction on the day amid growing market worries about surging coronavirus cases in Europe and the United States, which keeps the market trading sentiment under pressure and undermined the greenback. 

The USD/CAD extended its previous session bullish bias and hit the session high around above 0.9416 level. However, the bullish sentiment around the currency pair was being supported by a modest pickup in the ongoing drop in crude oil prices, which tend to undermine demand for the commodity-linked currency – the loonie. Hence, the broad-based U.S. dollar managed to gain some positive traction on the day amid growing market worries about surging coronavirus cases in Europe and the United States, which keeps the market trading sentiment under pressure and undermined the greenback. 

In addition to this, the long-lasting impasse over the next round of the U.S. fiscal stimulus measures added further burden on investors’ sentiment and benefitted the USD’s status as the global reserve currency. Across the pond, the reason for the currency pair bullish bias could also be attributed to the weaker crude oil prices, which undermined the demand for the commodity-linked currency the loonie and contributed to the currency pair gains. As of writing, the AUD/CAD currency pair is currently trading at 0.9396 and consolidating in the range between 0.9416 – 9330.

Despite the optimism over a potential treatment/vaccine for the highly infectious virus, the market risk sentiment remains depressive with Wall Street hugging the sellers and S&P 500 Futures flashing losses 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, the market trading sentiment has been flashing red since the week started, which ultimately keeps the safe-haven assets supportive on the day. 

At the coronavirus front, the prevalent worries over the resurgence of the coronavirus pandemic raised fears of global economic recovery, which keeps the market trading sentiment under pressure. The coronavirus COVID-19 cases continue to climb in Europe, U.K., and the U.S. As per the latest report, the U.S. has witnessed its highest ever number of new COVID-19 cases over the weekend, while France is also reporting new case records and Spain announced a state of emergency. As in result, the imposition of stricter lockdown measures to stop the second wave of COVID-19 cases, along with receding hopes for a pre-election fiscal deal also weighed on market trading sentiment.

This, in turn, the broad-based U.S. dollar succeeded to extend its early-day gains and remained well bid on the day as investors turned to the safe-haven in the wake of risk-off market sentiment. However, the gains in the greenback could be temporary due to the worries that the economic recovery in the U.S. could be stopped because of the reappearance of coronavirus cases. Besides this, the gains in the U.S. dollar were further boosted by a lack of progress toward a U.S. stimulus package, which puts traders in a cautious mood. However, the gains in the U.S. dollar kept the currency pair higher. Whereas, the U.S. Dollar Index that tracks the greenback against a basket of other currencies rose to 93.028.

Across the pond, the crude oil prices failed to stop its last week losing streak and remained depressed around below the $38.50 mark. However, the reason for the bearish bias around the crude oil prices could be attributed to the ever-increasing COVID-19 worries, which raised fears of renewed lockdown measures and depressed hopes for a swift recovery in the fuel demand. Across the pond, the anticipation of a rise in Libyan crude supply also played its major role in undermining crude oil. 


Entry Price – Sell 0.9389

Stop Loss – 0.9429

Take Profit – 0.9329

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

EUR/JPY Breaking Below Intra-day Support – Brace for Selling!


Entry Price – Sell 123.855

Stop Loss – 124.255

Take Profit – 123.455

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

AUD/USD Breaking Below Upward Channel – Is there a Sell Trade?

The AUD/USD pair was closed at 0.71185 after placing a high of 0.71461 and a low of 0.71025. The AUD/USD pair fell on Monday and gave a bearish candle for the day. The AUD/USD pair struggled to find a direction throughout Monday however it pared to its losses amid the broad-based US dollar strength in late American hours. The risk-averse market sentiment after the rising number of coronavirus cases across the globe and the deadlock over the US stimulus package caused a surge in the greenback due to its safe-haven status.

The AUD/USD pair was closed at 0.71185 after placing a high of 0.71461 and a low of 0.71025. The AUD/USD pair fell on Monday and gave a bearish candle for the day. The AUD/USD pair struggled to find a direction throughout Monday however it pared to its losses amid the broad-based US dollar strength in late American hours. The risk-averse market sentiment after the rising number of coronavirus cases across the globe and the deadlock over the US stimulus package caused a surge in the greenback due to its safe-haven status.

The AUD/USD pair was closed at 0.71185 after placing a high of 0.71461 and a low of 0.71025. The AUD/USD pair fell on Monday and gave a bearish candle for the day. The AUD/USD pair struggled to find a direction throughout Monday however it pared to its losses amid the broad-based US dollar strength in late American hours. The risk-averse market sentiment after the rising number of coronavirus cases across the globe and the deadlock over the US stimulus package caused a surge in the greenback due to its safe-haven status.

The US Dollar Index was up by 0.30% to above 93 levels on Monday that ultimately weighed on AUD/USD pair. The US dollar was gaining on the back of increasing cases of coronavirus from Europe and other nations. Europe was hit hardest by the second wave of coronavirus as most European nations started re-imposing restrictions to curb the effects of the coronavirus crisis.

France reported more than 50,000 cases in a single day over the weekend and introduced a nationwide curfew. Spain also introduces a curfew for six months on Monday along with Italy. The rising number of countries introducing restrictive measures to control the damage of coronavirus raised questions on the economic recovery as the economies were still struggling through the previous effects of lockdowns.

These rising uncertainties increased the appeal for safe-haven that ultimately diminished the risk sentiment in the market and weighed on riskier Aussie that dragged the AUD/USD pair on the downside. On the data front, at 19:00 GMT, the US economic docket released the New Home Sales that dropped to 959K from the expected 1025K and weighed on US dollar that capped further losses in AUD/USD pair on Monday.

The Australian Dollar was also under pressure because of the last week’s latest decision of the Reserve Bank of Australia (RBA) to cut its cash rate to 0.1%, the lowest in history. The bank decided to cut its interest rates to the lowest level as the country was struggling to fight the coronavirus crisis impact on its economy. The strength of Aussie and the local economic downturn after Victoria’s lockdown pushed RBA to cut its cash rates to 0.1%.

As the Australian Dollar was already under pressure, the strength of the US dollar along with the dampened risk sentiment in the market weighed on AUD.USD pair on Monday and dragged its prices below 0.72000 level.

Daily Technical Levels

Support Resistance

0.7118 0.7145

0.7103 0.7157

0.7091 0.7171

Pivot point: 0.7130

The AUD/USD is trading with a selling bias at the 0.7120 level, facing an immediate resistance around the 0.7149 area. Below 0.7149, we may see AUD/USD pair to drop until the next support area of 0.7105 as the MACD and EMA are in support of selling. Checkout a trading plan below… 

Entry Price – Sell 0.71293

Stop Loss – 0.71693

Take Profit – 0.70893

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 Market Analysis

Daily F.X. Analysis, October 27 – Top Trade Setups In Forex – C.B. Consumer Confidence in Play! 

On the news side, the eyes will remain on the economic events coming out of the U.S. economy. The Core Durable Goods Orders m/m and Durable Goods Orders m/m are expected to report mixed data that may or may not drive price action in dollar related events. While the C.B. Consumer Confidence will be the major highlight of the day, economists expect a slight movement on consumer confidence from 101.8 to 102.1 that may underpin the U.S. dollar today. 

On the news side, the eyes will remain on the economic events coming out of the U.S. economy. The Core Durable Goods Orders m/m and Durable Goods Orders m/m are expected to report mixed data that may or may not drive price action in dollar related events. While the C.B. Consumer Confidence will be the major highlight of the day, economists expect a slight movement on consumer confidence from 101.8 to 102.1 that may underpin the U.S. dollar today. 

On the news side, the eyes will remain on the economic events coming out of the U.S. economy. The Core Durable Goods Orders m/m and Durable Goods Orders m/m are expected to report mixed data that may or may not drive price action in dollar related events. While the C.B. Consumer Confidence will be the major highlight of the day, economists expect a slight movement on consumer confidence from 101.8 to 102.1 that may underpin the U.S. dollar today. 

Economic Events to Watch Today  

 


 

EUR/USD – Daily Analysis

The EUR/USD pair was closed at 1.18-93 after placing a high of 1.18596 and a low of 1.18031. The EUR/USD pair moved in a bearish trend on Monday and lost most of its previous day gains. The EUR/USD pair fell on Monday amid the strong U.S. dollar and the rising number of coronavirus infections through Europe. The market turned risk-averse and weighed on the riskier EUR/USD pair that reversed its movement on Monday.

The rising number of coronavirus cases in Europe kept the shared currency under bearish pressure at the starting day of the week. Spain declared a state of emergency on Sunday for six-months and imposed a national curfew to control the spread of coronavirus. France has already placed a curfew, and it reported more than 50,000 new infections in a single day. On Monday, Italy also announced a national curfew to curb the coronavirus spread. Germany will reportedly introduce more restrictions later in the week.

On Monday, as the coronavirus situation was out of control in Europe, Germany’s DAX 30 and the Euro Stoxx 50 indexes lost more than 2%, reflecting the risk-off market sentiment that ultimately weighed on EUR/USD pair. Another factor involved in the market’s dismal sentiment was the lack of progress in the U.S. stimulus aid package. The U.S. advisor Larry Kudlow said that talks were slowed but not ended as the chances of a deal before the election were null, but investors were awaiting the post-election stimulus.

On the data front, at 14:00 GMT, the German Ifo Business Climate for October dropped to 92.7 from the projected 93.1 and weighed on single Currency Euro that added in the losses n EUR/USD pair on Monday. At 19:00 GMT, the New Home Sales from the U.S. also declined to 959K against the expected 1025K and weighed on the U.S. dollar that ultimately helped to limit the losses of the EUR/USD pair. The U.S. dollar was strong on Monday as the U.S. Dollar Index was up to 93 levels due to its safe-haven nature. The greenback rose on Monday as the global COVID-19 cases continue to soar and weigh on market sentiment. Furthermore, the rising number of infections in China decreased the appetite of risky assets like EUR/USD pair as the world’s second-largest economy could suffer a setback.

Looking forward, the Euro traders will await tomorrow for the release of the European Central Bank’s Lending Survey, and the U.S. dollar investors will be looking to September’s U.S. Durable Goods Orders report. The fresh developments surrounding the coronavirus outbreak in the continent will also remain under observation by EUR/USD pair’s investors.

Daily Technical Levels

Support Resistance

1.1839      1.1861

1.1828      1.1872

1.1817      1.1882

Pivot point: 1.1850

EUR/USD– Trading Tip

The EUR/USD is trading with a slightly bearish bias at the 1.1836 level, holding mostly below an immediate resistance level of 1.1865 area. Closing of candles below the 1.1866 level may drive selling bias until the 1.1811 level that marks 38.2% Fibonacci retracement level. Continuation of a selling bias may lead the EUR/USD pair further lower until 1.1770, the 50% Fibo level. Conversely, the bullish breakout of the 1.1866 area can open further room for buying until the 1.1910 level today. 

GBP/USD – Daily Analysis

The GBP/USD pair was closed at 1.30230 after placing a high of 1.30749 and a low of 1.29928. The GBP/USD pair dropped and continued its previous bearish trend. The GBP/USD pair extended its losses on Monday and continued its bearish streak for the 4th consecutive day, dropping below 1.3000 level despite the Brexit deal optimism in the market mainly due to the broad-based U.S. dollar strength on the day.

The British Pound held steady against the rising U.S. dollar on Monday and shrugged off the renewed demand for the safe-haven greenback on expectations that the U.K. and the E.U. will eventually reach a Brexit deal after both sides agreed to push out the deadline to reach a consensus.

Last Thursday, Brexit talks were resumed and were extended to comping Wednesday when E.U. Brexit negotiator Michel Barnier is expected to attempt to bridge some of the differences between the U.K. and E.U.

It is also assumed that Barnier’s efforts to clinch a deal could revive hopes that German Chancellor Angela Merkel might be able to persuade French President Emmanuel Macron to ease his stance on one of the key sticking points of fishing rights. The United Kingdom has stressed that it would take control over the access to its waters after the Brexit transition period ends. On the other hand, Macron fears that a softer stance over fisheries will sacrifice the French fishermen.

On the other hand, the optimism on progress this week had been mitigated somewhat following reports that the U.K. was waiting until after the U.S. election to reveal its negotiation strategy as a blue wave could weaken Britain’s negotiation stance. Joe Biden has previously said that a UK-US deal would depend on Britain securing a deal with the E.U. These concerns also weighed on British Pound and GBP/USD. However, the British Prime Minister Boris Johnson said that Brexit and the U.S. election results were entirely separate.

On the data front, at 19:00 GMT, the U.S. economic docket released the report of New Home Sales that dropped to 959K from the anticipated 1025Kand weighed on the U.S. dollar that eventually helped GBP/USD pair in capping further losses. Moreover, the GBP/USD pair’s losses could be attributed to the rising number of coronavirus cases in the U.K. As well as the rising fears of the second wave of coronavirus and its impact globally raised the safe-haven demand for greenback that ultimately added pressure on GBP/USD pair on Monday.

The developments surrounding the U.S. stimulus package also kept the U.S. dollar stronger as the package will not be delivered before the election. The stronger U.S. dollar weighed further on the GBP/USD pair on the day.

Daily Technical Levels

Support Resistance

1.3040      1.3064

1.3028      1.3076

1.3016      1.3088

Pivot point: 1.3052

GBP/USD– Trading Tip

The GBP/USD traded with a selling bias below an immediate resistance area of 1.3075. Below this, Cable has closed a bearish engulfing candle that may drive selling bias until the 1.3013 level. Violation of 1.3013 level can open further room for selling until 1.2965 area, the level that’s extending support due to upward trendline on the 4-hour timeframe. The MACD and RSI are in support of selling bias today. Consider opening sell trades below the 1.3075 level today. 

USD/JPY – Daily Analysis

The USD/JPY pair was closed at 104.866 after placing a high of 105.053 and a low of 104.651. The USD/JPY pair remained bullish on Monday and recovered most of the previous daily losses. The USD/JPY pair rose to its highest level in five days above 105 level on Monday. However, it erased a large portion of its gains on the day during the American session.

The broad-based U.S. dollar strength caused the rise in the USD/JPY pair on the day due to its safe-haven status. The selling pressure surrounding the major European currencies on concerns over the rising number of coronavirus cases in the continent also helped the U.S. dollar outperform its rivals. The U.S. Dollar Index that was dropped 1% last week posted a decisive recovery on the starting day of this week and was up by 0.32% on the day at 93.04.

The rising U.S. dollar Index pushed the USD/JPY pair above the 105 level on Monday. However, investors saw this as a selling opportunity regardless of the U.S. dollar strength, and hence, the pair started losing most of its daily gains in the late trading hours. On the data front, at 04:50 GMT, the SPPI for the year from Japan raised to 1.3% against the forecasted 1.0% and supported the Japanese Yen that capped further gains in the USD/JPY pair on Monday.

At 19:00 GMT, the New Home Sales from the U.S. for September fell to 959K from the forecasted 1025K and weighed on the U.S. dollar that also limited further upside in the USD/JPY pair on the day.

The U.S. dollar was also strong on Monday as the talks for the next round of U.S. stimulus measures were stalled till the election. Both parties were moving forward to reach a consensus over the stimulus aid package’s size, but they delayed the delivery of major measures after the election. This raised the U.S. dollar on board and pushed the USD/JPY pair even higher on Monday. Other than that, the U.S. dollar was also up due to rising demand for its safe-haven nature amid the rising number of coronavirus cases globally. France reported 50,000 new cases in a single day and introduced a curfew to curb the virus’s spread. 

Just like that, many European nations, including Italy and Spain, also introduced curfews and restrictive measures. Germany was set to impose restrictions this week and not only in European nations, but the second wave of coronavirus was also spreading worldwide. These concerns weighed on market risk sentiment and raised demand for the greenback that ultimately added strength to the USD/JPY pair on Monday.

Looking forward, the investors will await the release of Durable Goods Orders and the Conference Board’s Consumer Confidence data that will release on Tuesday.

Daily Technical Levels

Support Resistance

104.18      105.35

103.68      106.00

103.02      106.51

Pivot point: 104.84

USD/JPY – Trading Tips

The oversold USD/JPY pair is taking a bullish turn now, perhaps to complete Fibonacci retracement at 104.900 level. A 38.2% Fibonacci retracement level extends this level, and it may extend resistance to the USD/JPY pair today. Continuation of a bullish bias over the 104.900 level can lead the USD/JPY pair further higher until the 105.225 level. The MACD and RSI are also supporting bullish bis in the USD/JPY pair today. However, the pair seems to have formed a bearish flag on the 4-hour timeframe that typically breakout on the lower side; if that happens, we may see USD/JPY price dropping until the 104.350 mark. Good luck! 

Categories
Forex Signals

USD/CAD Bullish Channel Breakout – Potential Buying Trade! 

The USD/CAD pair was closed at 1.31379 after placing a high of 1.31771 and a low of 131235. The USD/CAD pair remained flat throughout the day as it ended its day at the same level it started its day at 1.31378.

The USD/CAD pair was closed at 1.31379 after placing a high of 1.31771 and a low of 131235. The USD/CAD pair remained flat throughout the day as it ended its day at the same level it started its day at 1.31378.

The USD/CAD pair was closed at 1.31379 after placing a high of 1.31771 and a low of 131235. The USD/CAD pair remained flat throughout the day as it ended its day at the same level it started its day at 1.31378.

The on-again-off-again talks for the US stimulus package between Republicans and Democrats confused the traders and caused a flat movement in the USD/CAD pair on Thursday. The House of Representative Speaker Nancy Pelosi and the US Treasury Secretary Steven Mnuchin held talks on Thursday, but the prospect of a deal before elections were dimmed.

If a deal was reached tomorrow, the stimulus package will still not be implemented until after the election. For US President Trump who has pushed for a larger stimulus, it will be good news, but for Republicans senators who have their election campaigns to worry about, it will be bad news. A massive stimulus spending package before elections will not win many votes among conservative voters. Given this situation, the hopes for a stimulus measure package before elections faded away and raised bars for the US dollar that pushed the pair USD/CAD on the upside.

On the data front, the macroeconomic releases from the US on Thursday were also in favor of the US dollar. At 17:30 GMT, the Unemployment Claims from the US reduced to 787K from the anticipated 860K and supported the US dollar. While at 19:00 GMT, the CB Leading Index dropped to 0.7% from 0.8%of expectations and weighed on the US dollar. The Existing Home Sales from the US also raised to 6.45M from the expected 6.20M and supported the US dollar.

The US dollar was even stronger from the macroeconomic data release and pushed the USD/CAD pair even higher to 1.31771 level on Thursday. Whereas, the USD/CAD pair failed to remain on the bullish side as the crude oil prices rose on Thursday.

The rise in WTI crude oil prices above the $41 level gave strength to commodity-linked Loonie that ultimately weighed on USD/CAD pair, and the pair started to lose its early daily gains and ended its day on the same level it started its day with and the pair gave flat movement for the day.


Daily Technical Levels

Support Resistance

1.3110 1.3167

1.3087 1.3201

1.3052 1.3224

Pivot point: 1.3144

The USD/CAD is trading with a bullish bias, especially after violating the upward channel that was enlarging resistance at 1.3203 level. On the lower side, the USD/CAD may find next support at 1.3203 area, and violation of this mark can drive the Loonie price towards the next support mark of 1.3172. The MACD is in a buying zone; therefore, we should look for a buying trade over 1.3203 level. Good luck!

Categories
Forex Market Analysis

Daily F.X. Analysis, October 26 – Top Trade Setups In Forex – New Home Sales in Play! 

On Monday, the market is likely to exhibit thin trading volume and volatility in the wake of the Labor day holiday in New Zealand, while the other economies are expecting to release low impact events that may keep the market unchanged. Most of the focus will stay on the U.S. New Home Sales data that may help drive some market volatility today. 

On Monday, the market is likely to exhibit thin trading volume and volatility in the wake of the Labor day holiday in New Zealand, while the other economies are expecting to release low impact events that may keep the market unchanged. Most of the focus will stay on the U.S. New Home Sales data that may help drive some market volatility today. 

On Monday, the market is likely to exhibit thin trading volume and volatility in the wake of the Labor day holiday in New Zealand, while the other economies are expecting to release low impact events that may keep the market unchanged. Most of the focus will stay on the U.S. New Home Sales data that may help drive some market volatility today. 

Economic Events to Watch Today  

 

EUR/USD – Daily Analysis

The EUR/USD pair was closed at 1.18562 after placing a high of 1.18646 and a low of 1.17865. The movement of the EUR/USD pair was bullish on Friday. Things in European nations were getting out of control and led the governments to impose further restrictions to curb coronavirus’s effect on the economy. France, Italy, and Spain reported a record rise in the daily infection cases that urged their governments to impose curfews and lockdowns.

However, the single currency managed to remain bullish on Friday despite the rising number of coronavirus cases in Europe as the focus of traders shifted more towards the U.S. dollar. The coronavirus condition in the U.S. was also not better as the country reported a record-high number of 82,668 cases in a single day and weighed on the U.S. dollar that ultimately supported the bullish trend of the EUR/USD pair on Friday.

On the data front, at 12:15 GMT, the French Flash Services PMI for October dropped to 46.5 against the forecasted 47.0 and the previous 47.5 and weighed on Euro. The French Flash Manufacturing PMI came in as 51.0 against the expected 51.3 and previous 51.2. AT 12:30 GMT, the German Flash Manufacturing PMI raised to 58.0 against the expected 55.0 and previous 56.4 and supported the single currency. Simultaneously, the German Flash Services PMI raised to 48.9 against the expected 49.6 and previous 50.6 and weighed on the single currency Euro.

At 13:00 GMT, the Flash Manufacturing PMI from Eurozone for October raised to 54.4 against the projected 53.0 and previous 53.7 and supported the single currency Euro. Whereas the Flash Services PMI from the whole bloc dropped to 46.2 from the anticipated 47.1 and the previous 48.0, it also weighed on the single currency Euro. At 17:59 GMT, the Belgian NBB Business Climate from Europe came in as -8.5 against the forecasted -11.2 and supported the single currency. The Eurozone’s macroeconomic data was mixed and failed to provide any meaningful direction to the currency pair EUR/USD on Friday.

From the U.S. side, at 18:45 GMT, the Flash Manufacturing PMI came in line with the expectations of 53.5 for October. The Flash Services PMI from the U.S. for October advanced to 56.0 from the projected 54.7 and supported the U.S. dollar that ultimately capped further gains in EUR/USD pair.

Another factor that kept the additional gains in EUR/USD pair supported was the improved risk sentiment as President Donald Trump and Democratic Joe Biden took part in the final debate of the presidential election campaign in Nashville, Tennessee. The final debate was far more civilized than the previous one, and it potentially led to an additional tightening in the polls that raised the risk sentiment in the market and supported the EUR/USD pair.

Daily Technical Levels

Support Resistance

1.1796     1.1853

1.1776     1.1888

1.1740     1.1909

Pivot point: 1.1832

EUR/USD– Trading Tip

The EUR/USD is trading with a slightly bearish bias at the 1.1836 level, holding mostly below an immediate resistance level of 1.1865 area. Closing of candles below the 1.1866 level may drive selling bias until the 1.1811 level that marks 38.2% Fibonacci retracement level. Continuation of a selling bias may lead the EUR/USD pair further lower until 1.1770, the 50% Fibo level. Conversely, the bullish breakout of the 1.1866 area can open further room for buying until the 1.1910 level today. 

GBP/USD – Daily Analysis

The GBP/USD pair was closed at 1.30400 after placing a high of 1.31221 and a low of 1.30189. Overall the movement of the GBP/USD pair remained bearish throughout the day. The GBP/USD pair was down on Friday as the U.S. dollar gained traction on board and made GBP/USD pair weak. As well As, the retreat inequity and risk sentiment also hit the Pound that dropped to fresh lows.

Wall Street’s equity prices went lower on Friday and raised the greenback on board that ultimately dragged GBP/USD pair on the downside. The Dow Jones was down by 0.10%, and NASDAQ was down by 0.18%. The expectations for a new round of fiscal stimulus by the U.S. government before elections faded away and supported the U.S. dollar that ultimately weighed on GBP/USD pair.

Meanwhile, the Chief EU Brexit negotiator Michel Barnier will provide his weekly assessment of the talks and could point to a lack of meaningful progress despite intensifying talks. The British Brexit negotiator, David Frost, could also do that, and these concerns kept the British Pound under pressure at the ending day of the week.

However, the cautious optimism was prevailing in the market as the E.U. and U.K. had resumed talks related to the Brexit deal. The French President has said to the local fishing industry to brace for an impact that indicated a close deal. Whereas the investors were still cautious as talks could be bent on either side, British Pound remained under pressure ahead of the talks’ results. Moreover, the rising number of coronavirus cases in the United Kingdom pressured the authorities to impose a new full lockdown; however, some were refusing to do so as it had already cost the economy too much. These tensions in the local country also kept the British Pound under pressure.

On the data front, at 04:01 GMT, the GfK Consumer Confidence from Great Britain dropped to -31 against the expected -28and weighed on British Pound and added losses in GBP/USD pair. At 13:30 GMT, the Flash Manufacturing PMI for October remained flat with the anticipated 53.3, and the Flash Services PMI dropped to 52.3 against the projected 53.4 and weighed on British Pound and pulled the pair GBP/USD even lower.

From the U.S. side, at 18:45 GMT, the Flash Manufacturing PMI came in line with the anticipations of 53.5 for October. The Flash Services PMI from the U.S. for October raised to 56.0 from the expected 54.7 and supported the U.S. dollar that ultimately dragged the GBP/USD pair on the downside on Friday.

Daily Technical Levels

Support Resistance

1.3049     1.3129

1.3021     1.3179

1.2970     1.3208

Pivot point: 1.3100

GBP/USD– Trading Tip

The GBP/USD traded with a selling bias below an immediate resistance area of 1.3075. Below this, the cable has closed a bearish engulfing candle that may drive selling bias until 1.3013 level. Violation of 1.3013 level can open further room for selling until 1.2965 area, the level that’s extending support due to upward trendline on the 4-hour timeframe. The MACD and RSI are in support of selling bias today. Consider opening sell trades below the 1.3075 level today. 

USD/JPY – Daily Analysis

The USD/JPY pair was closed at 104.695 after placing a high of 104.934 and a low of 104.545. The USD/JPY pair moved in a bearish trend throughout Friday. The USD/JPY pair fell on Friday after the final presidential debate between U.S. President Donald Trump and Joe Biden before the November 3rd election.

The Final debate between two presidential candidates took place in Nashville, Tennessee. This final debate was more restrained than the first one. The center of the discussion was on policy rather than a personal attack.

It looked like investors were closing their long positions ahead of the elections and were hesitant to place any big position ahead of November 3 as polls before the final debate turned, so it became difficult to project the outcome of elections.

Investors were also keeping a close eye on the negotiations between House of Representative Speaker Nancy Pelosi and the U.S. Treasury Secretary Steven Mnuchin over the next round of U.S. stimulus package. Pelosi has expressed optimism that a consensus could be reached. In contrast, the expectations that a U.S. stimulus package could be delivered before elections faded away as the date of the election has come closer.

These hopes that a stimulus relief bill could not be delivered ahead of elections, whether both parties agreed on the package’s size as the election was only a week away, supported the U.S. dollar and capped further losses in the USD/JPY pair on Friday.

On the data front, at 04:30 GMT, the National Core CPI from Japan for the year came in as -0.3% against the forecasted -0.4% and supported the Japanese Yen that added in the USD/JPY’s losses. At 05:30 GMT, the Flash Manufacturing PMI dropped to 48.0 from the projected 48.4 and weighed on the Japanese Yen.

Daily Technical Levels

Support Resistance

104.18     105.35

103.68     106.00

103.02     106.51

Pivot point: 104.84

USD/JPY – Trading Tips

The oversold USD/JPY pair is taking a bullish turn now, perhaps to complete Fibonacci retracement at 104.900 level. This level is extended by a 38.2% Fibonacci retracement level, and it may extend resistance to the USD/JPY pair today. Continuation of a bullish bias over the 104.900 level can lead the USD/JPY pair further higher until the 105.225 level. The MACD and RSI are also supporting bullish bis in the USD/JPY pair today. However, the pair seems to have formed a bearish flag on the 4-hour timeframe that typically breakout on the lower side; if that happens, we may see USD/JPY price dropping until the 104.350 mark. Good luck! 

Categories
Forex Signals

USD/CHF Continues to Drip Amid Weaker Dollar – Quick Update on Signal

During Friday’s European trading hours, the USD/JPY currency pair failed to stop its previous session bearish moves and took further offers below mid- the 0.9000 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 undermine the safe-haven U.S. dollar. Hence, the upbeat market sentiment, supported by optimism over a potential vaccine/treatment for the highly infectious coronavirus.

During Friday’s European trading hours, the USD/JPY currency pair failed to stop its previous session bearish moves and took further offers below mid- the 0.9000 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 undermine the safe-haven U.S. dollar. Hence, the upbeat market sentiment, supported by optimism over a potential vaccine/treatment for the highly infectious coronavirus.

During Friday’s European trading hours, the USD/JPY currency pair failed to stop its previous session bearish moves and took further offers below mid- the 0.9000 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 undermine the safe-haven U.S. dollar. Hence, the upbeat market sentiment, supported by optimism over a potential vaccine/treatment for the highly infectious coronavirus.

On the contrary, 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 0.90430.9043 and consolidating in the range between 0.9040 – 0.9095.

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 after 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. 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 pair.

As a result of the upbeat market sentiment, the broad-based U.S. dollar failed to gain any positive traction on the day. Apart from this, the U.S. dollar losses could also be associated with the increasing expectations of a strong Democratic victory in the U.S. elections, which tend to undermine the greenback. However, the U.S. dollar losses became 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 dropped to 92.757.

Across the ocean, the equity market’s optimism was rather unaffected by the intensified US-China tussle and Brexit concerns. At the US-China front, the U.S. Secretary of State Michael Pompeo designated 6-more Chinese publications as “foreign missions”, or media outlets controlled by Beijing, at a Wednesday briefing. These headlines have little to no impact on the CHF markets.

Looking forward, the market traders will keep their eyes on the USD moves amid the lack of major data/events on the day. However, the final presidential debate between President Donald Trump and his Democratic rival Joe Biden. will be key to watch. Furthermore, the risk catalyst like geopolitics and the virus woes, not to forget the Brexit, could not lose their importance.


Daily Support and Resistance

S1 0.9016
S2 0.9042
S3 0.9058
Pivot Point 0.9069
R1 0.9085
R2 0.9096
R3 0.9123

Entry Price – Sell 0.90606
Stop Loss – 0.91006
Take Profit – 0.90206
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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Categories
Forex Signals

XAU/USD Concludes Bullish Engulfing Over Intraday Resistance – Signal Update 

The yellow metal gold soared 1% to its highest in a week as traders confidence that a U.S. coronavirus aid package will be announced before the Nov. 3 presidential elections urged the dollar and supported bullion’s appeal as an inflation hedge.

The yellow metal gold soared 1% to its highest in a week as traders confidence that a U.S. coronavirus aid package will be announced before the Nov. 3 presidential elections urged the dollar and supported bullion’s appeal as an inflation hedge.

The yellow metal gold soared 1% to its highest in a week as traders confidence that a U.S. coronavirus aid package will be announced before the Nov. 3 presidential elections urged the dollar and supported bullion’s appeal as an inflation hedge.

On the contrary, the broad-based U.S. dollar strength has become the factor that helps the currency pair limit its deeper losses. Moreover, the bullish tone around the U.S. dollar was sponsored by Thursday’s released upbeat U.S. jobless data, which showed a larger than expected drop in the initial jobless claims. 


Daily Technical Levels

Support Resistance

1902.14 1923.14

1888.87 1930.87

1881.14 1944.14

Pivot point: 1909.87

Gold is fell dramatically on the bearish side, dropping from the 1,930 mark to the 1,912 level. It’s a support mark that’s prolonged by a previously disrupted symmetric triangle pattern. On the lower side, the 1,912 support level violation may trigger more selling until the 1,897 level today.

Entry Price – Buy 1909.86

Stop Loss – 1903.86

Take Profit – 1915.86

Risk to Reward – 1:1

Profit & Loss Per Standard Lot = -$600/ +$600

Profit & Loss Per Micro Lot = -$60/ +$60

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Categories
Forex Signals

USD/JPY Violates Bearish Flag – Buckle up for a Sell Signal! 

The USD/JPY pair is trading sharply bearish after violating the bearish flag at the 104.680 level. Below this level, we may have more selling trade opportunities. The USD/JPY pair traded with a positive note during the whole Thursday session after a goodish pickup in the U.S. dollar demand. The rebounded U.S. dollar helped currency pair USD/JPY to gain positive traction and move away from the six-week lowest level it touched on Wednesday.

The USD/JPY pair is trading sharply bearish after violating the bearish flag at the 104.680 level. Below this level, we may have more selling trade opportunities. The USD/JPY pair traded with a positive note during the whole Thursday session after a goodish pickup in the U.S. dollar demand. The rebounded U.S. dollar helped currency pair USD/JPY to gain positive traction and move away from the six-week lowest level it touched on Wednesday.

The USD/JPY pair is trading sharply bearish after violating the bearish flag at the 104.680 level. Below this level, we may have more selling trade opportunities. The USD/JPY pair traded with a positive note during the whole Thursday session after a goodish pickup in the U.S. dollar demand. The rebounded U.S. dollar helped currency pair USD/JPY to gain positive traction and move away from the six-week lowest level it touched on Wednesday.

The slow progress in the U.S. stimulus measure package attracted some buying in the greenback that dampened the hopes that financial aid will be delivered before elections. The statement by House of Representatives Speaker Nancy Pelosi that soon there will be pen to paper on the stimulus bill failed to impress investors, and the USD/JPY pair continued moving in the upward direction.

Pelosi even said that the stimulus package could be passed in the House before election day, but investors were somewhat unconvinced that the bill could pass through the Senate due to the strong opposition from Republicans over a bigger stimulus deal. This, in turn, weighed on risk sentiment and supported the Japanese Yen that ultimately capped further upside in the USD/JPY pair prices.

Apart from developments surrounding the U.S. fiscal stimulus, the USD bulls further took clues from the better than expected release of the U.S. initial jobless claims. The number of Americans filed for unemployment benefits declined to 787K during the previous week for the first time against the projected 860K and supported the U.S. dollar. The decline in unemployment claims means less need for a U.S. stimulus package and more strength for the U.S. dollar and USD/JPY pair.

On the data front, the C.B. Leading Index from the U.S. dropped to 0.7% against the expected 0.8% and weighed on the U.S. dollar. The Existing Home Sales advanced to 6.54M in comparison to projected 6.20M and supported the U.S. dollar. Another favorable economic data release gave strength to the U.S. dollar that pushed the USD/JPY pair even higher on grounds. Meanwhile, the rising number of coronavirus cases across the globe and fears for economic recovery due to lockdowns imposed to curb the spread of the virus raised the safe-haven appeal, supported the Japanese Yen, and weighed on the USD/JPY pair to limit its bullish move on Thursday.


The USD/JPY traded dramatically bearish to drop from 105.460 level to 104.349 level. Like other pairs, the USD/JPY has also entered the oversold zone, and now sellers seem to be exhausted. On the higher side, the USD/JPY pair has reversed some of the losses to trade at the 104.700 level. On the higher side, the pair may go after the 38.2% Fibonacci retracement level of 104.900 and 50% Fibo level of 105. Let’s consider taking a buying trade over 104.350 area today. 

Entry Price – Buy 104.593

Stop Loss – 104.993

Take Profit – 104.093

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, October 23 – Top Trade Setups In Forex – European PMI In Highlights! 

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 Consumer Confidence 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 Consumer Confidence 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 Consumer Confidence 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 closed at 1.18184 after placing a high of 1.18666 and a low of 1.18111. The EUR/USD pair was down and remained bearish on that day. As the market sentiment deteriorated and the U.S. dollar moved stronger across the board, the EUR/USD pair dropped on a session by 0.3% and remained one of the worst G10 performers on Thursday.

The common currency put an end to a four-day rally on Thursday as the hopes of the next round of U.S. stimulus deal faded away. 

The U.S. President Donald Trump crushed the risk appetite on Thursday after blaming Democrats for not compromising an acceptable agreement. This raised the U.S. dollar on board from its seven-week lowest level. The hopes for the next round of U.S. stimulus package were faded after Trump blamed Democrats that they were unwilling to compromise on the relief aid bill’s size. However, the talks were continuing, and it is uncertain whether a stimulus package is delivered before the Presidential elections or not.

The faded hopes dampened the risk sentiment and added strength to the U.S. dollar that ultimately added weight on the EUR/USD pair on Thursday. Furthermore, the rising number of coronavirus cases in Europe also weighed on the EUR/USD pair. In Europe, the daily number of infections reached record levels, with Spain becoming the first western country to report one million cases. These rising numbers of coronavirus cases from Europe also undermined the Euro currency’s confidence, ultimately added to the losses of the  EUR/USD pair.

On the data front, at 11:00 GMT, the German GfK Consumer Climate came in as -3.1 against the forecasted -2.9 and weighed on Euro currency that added in the losses of EUR/USD pair. At 18:52 GMT, the Consumer Confidence from Europe was also declined to -16 from the projected -15 and weighed on the single currency and added in the losses of EUR/USD pair. From the U.S. side, the Unemployment Claims from last week were dropped to 787K against the projected 860K and supported the U.S. dollar. At 19:00 GMT, the Existing Home Sales also raised to 6.54M against the forecasted 6.20M and supported the U.S. dollar that ultimately weighed on EUR/USD pair.

Apart from macroeconomic data, the European Central bank has also hinted that the Eurozone’s economy was in for a bumpy road ahead. The President of ECB Christine Lagarde also warned about the effects of the second wave of coronavirus on the economy. So, the weak outlook of the Eurozone economy also weighed on EUR/USD pair.

Daily Technical Levels

Support    Resistance

1.1828     1.1889

1.1795     1.1915

1.1768     1.1949

Pivot Point: 1.1855

EUR/USD– Trading Tip

The bullish bias of the EUR/USD has weakened as the pair fell from the 1.1880 level to a 50% Fibonacci retracement level of 1.1805 level. This level’s violation may trigger further selling until the 1.1769 area that marks 61.8% Fibonacci retracement for the EUR/USD. The EUR/USD is likely to exhibit further selling bias today, especially after violating the 1.1770 level to 1.1740 level. The MACD and RSI are also supporting the bearish bias; therefore, bearish bias remains dominant today. The EUR/USD may face resistance around 1.1837 and 1.1880 level today.

GBP/USD – Daily Analysis

The GBP/USD closed at 1.30822 after placing a high of 1.31517 and a low of 1.30704. Overall the GBP/USD pair remained on the downside all through the day. The GBP/USD pair gave up some ground and remained bearish on Thursday amid the broad-based U.S. dollar come back. However, the GBP/USD pair managed to stay in the upper half of its weekly range.

The British Pound fell on Thursday, although the talks between the E.U. & U.K. resumed on the day. The reason could be attributed to the brinkmanship from Britain amid negotiations, risk an accidental no-deal Brexit. On Thursday, the top E.U. Brexit negotiator Michael Barnier arrived in London to intensify talks with his British counterpart David Frost to break the impasse and find a solution to key sticking points, fisheries, and state aid.

The fisheries have long been a debating point in the Brexit negotiations as the U.K. has been determined to control access to its waters after the transition period ends. U.K. has refused to stick with the E.U.’s common fisheries policy that set fishing quotas among the E.U. member states. The transition period has come near to end with just months to go, and the U.K. has refused to allow talks to run past the year-end deadline. According to a spokesman for UK PM Boris Johnson, the time has remained very short as the U.K. has been reportedly clear that any agreement should be placed before the end of the transition period.

The concerns have raised in the market that the U.K.’s strategy to be somewhat tough on talks and deadlines could risk an accidental no-deal Brexit as the end of the year is coming ahead. These concerns weighed on the Sterling and added the GBP/USD pair’s losses on Thursday.

On the data front, the CBI Industrial Order Expectations from the U.K. came in as -34 against the forecasted -50 and supported British Pound. 

However, from the U.S. side, the Unemployment Claims from the previous week declined to 787K against the forecasted 860K and supported the U.S. dollar. The Existing Home Sales also supported the U.S. dollar after rising to 6.54M from the anticipated 6.20M. The positive data from the U.S. exerted pressure on GBP/USD pair on Thursday. Meanwhile, the Bank of England Governor Andrew Bailey told of strong demand to invest in climate change technology. He also sketched a strong demand for green investment. Looking forward, market participants will await the release of PMI for services and manufacturing activities to find a fresh clue about GBP/USD pair.

Daily Technical Levels

Support    Resistance

1.3049     1.3129

1.3021     1.3179

1.2970     1.3208

Pivot point: 1.3100

GBP/USD– Trading Tip

The GBP/USD traded bearishly below the 1.3165 resistance area to trade at the 1.3070 level that marks the 38.2% Fibonacci retracement level for the Sterling. On the further downside, the GBP/USD pair may take another dip until the 61.8% Fibo level of 1.3018 as the MACD is still pointing towards the selling area. At the moment, Sterling’s immediate resistance holds at the 1.3070 mark; however, the closings below this level is supporting the selling bias. Consider opening sell trades below the 1.3100 level today. 

USD/JPY – Daily Analysis

The USD/JPY pair was closed at 104.884 after placing a high of 104.921 and a low of 104.474. The movement of the USD/JPY currency pair stayed bullish throughout the day. The USD/JPY pair traded with a positive note during the whole Thursday session after a goodish pickup in the U.S. dollar demand. The rebounded U.S. dollar helped currency pair USD/JPY to gain positive traction and move away from the six-week lowest level it touched on Wednesday.

The slow progress in the U.S. stimulus measure package attracted some buying in the greenback that dampened the hopes that financial aid will be delivered before elections. The statement by House of Representatives Speaker Nancy Pelosi that soon there will be pen to paper on the stimulus bill failed to impress investors, and the USD/JPY pair continued moving in the upward direction.

Pelosi even said that the stimulus package could be passed in the House before election day. Still, investors were somewhat unconvinced that the bill could pass through the Senate due to the strong opposition from Republicans over a bigger stimulus deal. This, in turn, weighed on risk sentiment and supported the Japanese Yen that ultimately capped further upside in the USD/JPY pair prices.

Apart from developments surrounding the U.S. fiscal stimulus, the USD bulls further took clues from the better than expected release of the U.S. initial jobless claims. The number of Americans filed for unemployment benefits declined to 787K during the previous week for the first time against the projected 860K and supported the U.S. dollar. The decline in unemployment claims means less need for a U.S. stimulus package and more strength for the U.S. dollar and USD/JPY pair.

On the data front, the C.B. Leading Index from the U.S. dropped to 0.7% against the expected 0.8% and weighed on the U.S. dollar. The Existing Home Sales advanced to 6.54M in comparison to projected 6.20M and supported the U.S. dollar. Another favorable economic data release gave strength to the U.S. dollar that pushed the USD/JPY pair even higher on grounds.

Meanwhile, the rising number of coronavirus cases across the globe and fears for economic recovery due to lockdowns imposed to curb the spread of the virus raised the safe-haven appeal, supported the Japanese Yen, and weighed on the USD/JPY pair to limit its bullish move on Thursday.

On Thursday, the U.S. Dollar Index measures the greenback against the six currencies’ basket surge by 0.4% to 92.97. The U.S. dollar index fell to its seven-week lowest level at 92.46 on Wednesday but recovered from there on the next day amid a strong U.S. dollar despite the talks for stimulus package continued. However, traders’ focus will now be shifted towards the final presidential debate between President US Donald Trump and his Democratic rival Joe Biden.

Daily Technical Levels

Support    Resistance

104.18     105.35

103.68     106.00

103.02     106.51

Pivot point: 104.84

USD/JPY – Trading Tips

The USD/JPY traded dramatically bearish to drop from 105.460 level to 104.349 level. Like other pairs, the USD/JPY has also entered the oversold zone, and now sellers seem to be exhausted. On the higher side, the USD/JPY pair has reversed some of the losses to trade at the 104.700 level. On the higher side, the pair may go after the 38.2% Fibonacci retracement level of 104.900 and 50% Fibo level of 105. Let’s consider taking a buying trade over 104.350 area today. Good luck! 

Categories
Forex Signals

USD/CAD Slips Below Downward Trendline – Brace for a Sell Signal! 

The USD/CAD pair was closed at 1.31447 after placing a high of 1.31519 and a low of 1.30808. Overall the movement of the USD/CAD pair remained bullish throughout the day. In the early trading session on Wednesday, the USD/CAD pair followed its Tuesday’s move and dropped to its lowest since 7th September over the US dollar’s weakness. The decline in crude oil prices also played a role in raising the USD/CAD pair on board. The negative macroeconomic data from Canada also added strength to the USD/CAD pair gains on Wednesday.

The USD/CAD pair was closed at 1.31447 after placing a high of 1.31519 and a low of 1.30808. Overall the movement of the USD/CAD pair remained bullish throughout the day. In the early trading session on Wednesday, the USD/CAD pair followed its Tuesday’s move and dropped to its lowest since 7th September over the US dollar’s weakness. The decline in crude oil prices also played a role in raising the USD/CAD pair on board. The negative macroeconomic data from Canada also added strength to the USD/CAD pair gains on Wednesday.

The USD/CAD pair was closed at 1.31447 after placing a high of 1.31519 and a low of 1.30808. Overall the movement of the USD/CAD pair remained bullish throughout the day. In the early trading session on Wednesday, the USD/CAD pair followed its Tuesday’s move and dropped to its lowest since 7th September over the US dollar’s weakness. The decline in crude oil prices also played a role in raising the USD/CAD pair on board. The negative macroeconomic data from Canada also added strength to the USD/CAD pair gains on Wednesday.

On the data front, the Consumer Price Index from Canada was released at 17:30 GMT for September, which came in line with -0.1%. The Core Retail Sales from Canada for September declined to 0.5% from the projected 0.9%. For September, the Retail Sales dropped to 0.4% against the expected 1.0% and weighed on the Canadian dollar. Dollarmmon and Median CPI from Canada came in line with the expectations of 1.5% and 1.9%, respectively.

 Whereas the NHPI for September raised to 1.9% from the forecasted 1.2%. The Core CPI for September also remained the same as the year at 0.1%. However, the Trimmed CPI for the year raised to 1.8% against the forecasted 1.7%. The highlighted CPI, Retail Sales, and Core Retails Sales data came in negative or as expected and weighed on the Canadian Dollar tDollartimately pushed higher the USD/CAD prices on Wednesday.

Meanwhile, the Crude Oil Inventories from the previous week dropped to -1.0M against the forecasted 0.5M and raised the demand for crude oil that ultimately supported the declining WTI crude oil prices on Wednesday.

Crude oil prices suffered on Wednesday though most of its losses recovered still, it closed its day weak, which made its commodity-linked currencies Loonie weaker and supported the rising USD/CAD pair.


Daily technical Levels

Support Resistance

1.3103 1.3184

1.3051 1.3213

1.3023 1.3265

Pivot point: 1.3132

The USD/CAD is facing immediate resistance at the 1.3171 level, and closing of candles below this level is likely to drive selling bias in the market. The USD/CAD has recently closed a Doji candle below 1.3172, which is suggesting that the bullish bias seems to be over, and sellers may enter the market soon. As we can see on the chart, the USD/CAD’s very next candle is bearish engulfing, followed by a doji candle, support strong selling bias for the pair. Therefore, we have opened a sell signal, and we aim for quick 40 pips. Check out a trading plan below.

Entry Price – Buy 0.71124

Stop Loss – 0.70724

Take Profit – 0.71524

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

AUD/USD Set to Complete ABCD Pattern – Buying Signal! 

The AUD/USD pair was closed at 0.71174 after placing a high of 0.71365 and a low of 0.70445. Overall the movement of the AUD/USD pair remained bullish throughout the day. On Wednesday, the AUD/USD pair posted the biggest gain since October 09 amid the broad-based US dollar weakness and the improved risk sentiment due to US stimulus package talks’ developments.

The AUD/USD pair was closed at 0.71174 after placing a high of 0.71365 and a low of 0.70445. Overall the movement of the AUD/USD pair remained bullish throughout the day. On Wednesday, the AUD/USD pair posted the biggest gain since October 09 amid the broad-based US dollar weakness and the improved risk sentiment due to US stimulus package talks’ developments.

The AUD/USD pair was closed at 0.71174 after placing a high of 0.71365 and a low of 0.70445. Overall the movement of the AUD/USD pair remained bullish throughout the day. On Wednesday, the AUD/USD pair posted the biggest gain since October 09 amid the broad-based US dollar weakness and the improved risk sentiment due to US stimulus package talks’ developments.

Investors were confident about the chances of a coronavirus stimulus agreement in the US that raised the market’s risk appetite and supported Aussie’s risk. The US President Trump said that he was willing to accept a larger relief bill despite Senate Republicans’ opposition and boosted optimism in the market. Like the Australian dollar, the riskier currencies gained from it and supported the AUD/USD pair’s upward movement on Wednesday.

On the data front, at 04:30 GMT, the MI Leading Index for September came in as 0.2% compared to August’s 0.5%. At 05:30 GMT, the Retail Sales from Australia came in as -1.5%. The investors mostly ignored Australia’s data as the focus was shifted towards the US stimulus package deal.

The latest minutes released by the Reserve Bank of Australia showed that the further rate cut has been on the table. This weighed on market sentiment as well as increase the bearish pressure on the Australian dollar. The Aussie dropped in previous days because of increased negative pressure generated by the rising chances of further monetary easing. However, on Wednesday, the AUD/USD pair recovered most of its previous day’s losses and rose about 1% on a day.

The risk sentiment was also supported by the hopes that the results from phase-3 trials of vaccines will be delivered in the coming months that will approve one-or-two vaccine by the end of the year. These hopes favored the Australian dollar further and pushed AUD/USD pair even higher.


Daily Technical Levels

Support Resistance

0.7057 0.7144

0.7010 0.7184

0.6970 0.7230

Pivot point: 0.7097

The AUD/USD is trading with a bullish bias at 0.7110, heading towards the next resistance level of 0.7136 level. On the lower side, the AUD/USD may find support at 0.7087, and closing of candles above this level may drive the pair further higher. The MACD is suggesting a buying trends; therefore, we have opened a buying trade over 0.7110. Checkout a trade signal…

Entry Price – Buy 0.71124

Stop Loss – 0.70724

Take Profit – 0.71524

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

Gold Bounces Off Over Support Level of 1,912 – Time to Go Long! 

The yellow metal gold has traded sharply bearish, dropping from the 1,930 mark to the 1,912 level. Gold gained support at 1,912, the same level that extended support previously after a violation of a symmetric triangle pattern. Gold fell despite a dip in the U.S. stocks as they posted modest losses after a choppy session. The Dow Jones Industrial Average fell 98 points (-0.35%) to 28210, the S&P 500 dropped 7 points (-0.22%) to 3435, and the Nasdaq 100 eased 12 points (-0.11%) to 11,665.

The yellow metal gold has traded sharply bearish, dropping from the 1,930 mark to the 1,912 level. Gold gained support at 1,912, the same level that extended support previously after a violation of a symmetric triangle pattern. Gold fell despite a dip in the U.S. stocks as they posted modest losses after a choppy session. The Dow Jones Industrial Average fell 98 points (-0.35%) to 28210, the S&P 500 dropped 7 points (-0.22%) to 3435, and the Nasdaq 100 eased 12 points (-0.11%) to 11,665.

The yellow metal gold has traded sharply bearish, dropping from the 1,930 mark to the 1,912 level. Gold gained support at 1,912, the same level that extended support previously after a violation of a symmetric triangle pattern. Gold fell despite a dip in the U.S. stocks as they posted modest losses after a choppy session. The Dow Jones Industrial Average fell 98 points (-0.35%) to 28210, the S&P 500 dropped 7 points (-0.22%) to 3435, and the Nasdaq 100 eased 12 points (-0.11%) to 11,665.

On the forex front, the U.S. dollar widened its weakness against other major currencies amid a looming fiscal stimulus deal. The ICE Dollar Index dropped 0.48% to a 7-week low of 92.61, posting a four-session losing streak. 

The U.S. Federal Reserve said in its Beige Book economic report that all districts have seen continued growth at a moderate pace since the downturn. The central bank added that employment increased across all districts, and prices rose modestly.

Daily Technical Levels

Support Resistance

1902.14 1923.14

1888.87 1930.87

1881.14 1944.14

Pivot point: 1909.87

On the downside, the 1,912 support level’s breakout may trigger further selling unto the 1,897 mark today. Conversely, gold has solid probabilities of jumping off above the 1,912 level to trade bullish unto the 1,930 level. Let’s look for bullish trades over the 1,909 level today.



Entry Price – Sell 1920.15

Stop Loss – 1914.15

Take Profit – 1926.15

Risk to Reward – 1:1

Profit & Loss Per Standard Lot = -$600/ +$600

Profit & Loss Per Micro Lot = -$60/ +$60

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, October 22 – 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 Consumer Confidence 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 Consumer Confidence 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 Consumer Confidence 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 1.18609 after placing a high of 1.18806 and a low of 1.18209. The EUR/USD pair extended its previous day’s gains and rose for the 4th consecutive session on Wednesday to reach its highest since mid-September. Despite the alarming comments from ECB President Christine Lagarde, the EUR/USD pair managed to post gains on Wednesday over the U.S. dollar’s weakness and improved risk sentiment.

The U.S. Dollar Index was down by 0.5% and fell to its seven-week lowest level on Wednesday to 92.46 over fresh hopes that the U.S. stimulus package for coronavirus would release soon. The hopes were encouraged by the comments of U.S. President Donald Trump, who said that he was ready to accept a larger coronavirus-relief package. This boosted investor’s optimism that eventually led to rising risk sentiment and increasing pressure on the safe-haven U.S. dollar. The U.S. dollar weakness added further strength to the already rising EUR/USD pair’s prices on Wednesday.

According to the White House spokesperson, Allysa Farah, she was optimistic that a fiscal deal between Democrats and Republicans would reach soon as Trump has suggested that he accept the $2.2 trillion bill proposed by Democrats. However, Senate Republicans have made it public that they will oppose a larger bill.

On Wednesday, the President of the European Central bank, Christine Lagarde, said in a pre-recorded interview that the economic outlook was under clear risk due to an unexpected early pickup in coronavirus infections. She said that more scientists in the Eurozone were expecting the epidemic’s resurgence in November or December with the cold. Lagarde’s concerning statements weighed on the single currency Euro and capped further gains in EUR/USD pair on Wednesday.

The central bank of Europe is set to hold a governing council next week to decide on its monetary policy. The majority of economists expect no change in policy until December. ECB is expected to ramp up its 1.35 trillion pandemics bond-buying program at its last policy meeting in 2020.

These expectations also weighed on the single currency Euro and capped further gains in currency pair EUR/USD.

Meanwhile, the number of coronavirus cases in Europe is continuously setting fresh records. However, market participants are ignoring the issue; it still holds some importance in driving the EUR/USD pair as there was no macroeconomic data to be released from Europe or the U.S. On Thursday, Europe will publish the Consumer Confidence Report, and the U.S. will publish its initial jobless claims from last week that will have a major impact on EUR.USD pair’s movements.

Daily Technical Levels

Support Resistance

1.1773     1.1854

1/1725     1.1889

1.1691     1.1936

Pivot point: 1.1807

EUR/USD– Trading Tip

The EUR/USD is trading sharply bullish amid a weaker U.S. dollar to trade at 1.1848 level, and the has formed inside bar down, which suggests that the bullish bias is getting weaker and sellers may dominate the market. On the lower side, the EUR/USD can go for bearish correction until the 1.1819 level that marks the 38.2% Fibonacci retracement level. Continuation of further selling trends can lead the EUR/USD price towards a 1.1800 mark, and below this, the next support level stays at 1.1765. The MACD and RSI are also supporting the bearish bias now. The bearish bias remains dominant today. 

GBP/USD – Daily Analysis

The GBP/USD pair was closed at 1.31461 after a high of 1.31765 and a low of 1.29332. On Wednesday, the GBP/USD pair followed its previous daily trend and rose for 3rd consecutive day. The British Pound jumped higher on the day by 1.6% and reached its highest since September 7.

The recent jump in British Pound against the U.S. dollar came in as the E.U. and the U.K. were set to resume talks after Britain welcomed the bloc’s desire to break the impasse in negotiations. The post-Brexit talks are set to resume on Thursday after the E.U. Brexit negotiator Micheal Barnier said a deal was in reach and pledged to seek the necessary compromises on both sides. He added that an agreement has reached within and if both sides were willing to work constructively and compromise despite the difficulties.

Great Britain signaled that it was ready to intensify talks to soften the key sticking issues included fisheries and sovereign aid. Micheal Barnier believed that sovereignty was a legitimate concern for the U.K., and E.U. would have to compromise. These developments in Brexit talks gave strength to British Pound and supported GBP/USD pair on Wednesday to post gains.

On the data front, at 11:00 GMT, the CPI for the year from Great Britain was released as 0.5% against the forecasted 0.4% in September and supported British Pound. The Core CPI for the year was also released and came in as expected by 1.3%. The Public Sector Net Borrowing advanced to 35.4B against the forecasted 32.5B and weighed on GBP. The RPI for the year also dropped to 1.1% against the expected 1.2% and weighed on GBP.

At11:03 GMT, the United Kingdom’s PPI input raised to 1.1% against the forecasted -0.9% and raised British Pound. However, at 12:30 GMT, the PPI output remained flat at -0.1%. The Housing Price Index for the year from Pound also came in line with 2.5% expectations.

The rising CPI and PPI Input data supported the bullish momentum of the GBP/USD pair on Wednesday.

The British Pound was also helped by easing fears over negative interest rates after Deputy Bank of England Governor Dave Ramsden said that cutting rates below zero could hamper lending activity. He also said that there might be an appropriate time to use negative interest rates, but this was not that time. These comments also gave strength to British Pound and raised the GBP/USD pair on Wednesday.

Meanwhile, the U.K. reported 26,688 coronavirus cases on Wednesday in comparison to Tuesday’s 21,331 cases. The rising number of coronavirus infections from the U.K. forced the government to impose new lockdown measures in the country’s parts. These lockdowns also held the upward trend of the GBP/USD pair on Wednesday.

On the U.S. front, the stimulus package talks were resumed after U.S. President Donald Trump agreed to increase the stimulus package’s size. The renewed hopes for a stimulus package before elections weighed on the U.S. dollar, which added further strength to the rising GBP/USD pair on Wednesday.

Daily Technical Levels

Support Resistance

1.2997     1.3220

1.2864     1.3310

1.2774     1.3443

Pivot point: 1.3087

GBP/USD– Trading Tip

The GBP/USD soared sharply to trade at the 1.3170 level, and recently, it has entered the overbought zone. Below 1.3170, we may see the GBP/USD price trading bearish to complete 23.8% Fibo level and 38.2% Fibo level at 1.3100 and 1.3068 level. Continuation of a bearish trend can lead the Cable towards the 1.3006 level that marks a 61.8% Fibo level. The cable may face resistance at 1.3170 level today. 

USD/JPY – Daily Analysis

The USD/JPY pair was closed at 104.580 after placing a high of 105.523 and a low of 104.339. The USD/JPY pair reversed its previous day momentum and fell on Wednesday to its one-month lowest level on the back of fresh U.S. dollar weakness. The pair hit 104.339 level, the lowest level since September 21 after U.S. President Donald Trump boosted for a larger stimulus package. This report prompted some investors to move toward riskier assets and dampened the safe-haven appeal for the greenback.

The price action from the USD/JPY traders suggested that traders were betting heavily on the news that there might be a stimulus by this weekend and ignored the signs of opposition from Trump’s Republican Party.

The Senate Majority Leader Mitch McConnell provided no timetable for a relief bill and said that he was not in favor of larger stimuli before elections. Whereas, the White House Chief of Staff Mark Meadows preserved the hopes for a stimulus deal and said on Wednesday that he was very hopeful that progress was being made in the negotiations. He added that both parties would remain under talks over the coming days.

The U.S. Treasury yields held near their highest levels in four months on Wednesday over the expectations that a deal might be reached. The 10-year Treasury yield was up by 1.5 basis points and touched its fresh four months high at 0.84%. This weighed on the U.S. dollar and added further pressure on the USD/PY pair.

The Federal Reserve issued it Beige Book on Wednesday that revealed that economic activity was continuously increasing across all districts with a pace of growth characterized as slight to modest in most districts.

The USD/JPY pair’s main driver on Wednesday remained fresh hopes for a stimulus package as there was no macroeconomic data to be released on the day. The focus was entirely on the relief bill, where Nancy Pelosi also affirmed that she was optimistic about the chances of reaching an agreement before the U.S. Presidential elections.

Daily Technical Levels

Support Resistance

104.18     105.35

103.68     106.00

103.02     106.51

Pivot point: 104.84

USD/JPY – Trading Tips

The USD/JPY traded dramatically bearish to drop from 105.460 level to 104.349 level. Like other pairs, the USD/JPY has also entered the oversold zone, and now sellers seem to be exhausted. On the higher side, the USD/JPY pair has reversed some of the losses to trade at the 104.700 level. On the higher side, the pair may go after the 38.2% Fibonacci retracement level of 104.900 and 50% Fibo level of 105. Let’s consider taking a buying trade over 104.350 area today. Good luck! 

Categories
Forex Market Analysis

Daily F.X. Analysis, October 21 – Top Trade Setups In Forex – U.K., U.S., Canada Events in Highlights! 

On the news front, the economic calendar is filled with a series of fundamentals from the U.K. and Canada, focusing on the U.S. Inflation data. The U.K. Inflation data is due during the European session, and economists expect a slight improvement in the U.K. CPI figures from 0.2% to 0.4%, while core CPI is likely to surge to 0.4% from 0.2%, and it may underpin the Cable pair today. On the other hand, the Canadian inflation report is also expected to perform slightly better today to support the Canadian dollar demand. 

On the news front, the economic calendar is filled with a series of fundamentals from the U.K. and Canada, focusing on the U.S. Inflation data. The U.K. Inflation data is due during the European session, and economists expect a slight improvement in the U.K. CPI figures from 0.2% to 0.4%, while core CPI is likely to surge to 0.4% from 0.2%, and it may underpin the Cable pair today. On the other hand, the Canadian inflation report is also expected to perform slightly better today to support the Canadian dollar demand. 

On the news front, the economic calendar is filled with a series of fundamentals from the U.K. and Canada, focusing on the U.S. Inflation data. The U.K. Inflation data is due during the European session, and economists expect a slight improvement in the U.K. CPI figures from 0.2% to 0.4%, while core CPI is likely to surge to 0.4% from 0.2%, and it may underpin the Cable pair today. On the other hand, the Canadian inflation report is also expected to perform slightly better today to support the Canadian dollar demand. 

Economic Events to Watch Today  

 


 

EUR/USD – Daily Analysis

The EUR/USD pair was closed at 1.8221 after placing a high of 1.18406 and a low of 1.17598. Overall the movement of the EUR/USD pair remained bullish throughout the day. The EUR/USD rose for the 3rd consecutive day and extended its previous day’s gains to reach its highest since September 21. On Tuesday, the EUR/USD pair’s upward momentum was supported by a weaker U.S. dollar across the board.

The U.S. Dollar Index was down by 0.45% at 93.0, the lowest October level, however, the Dow Jones gains 0l68%, and the NASDAQ rose by 0.30%. On Tuesday, the greenback remained weak against all of its rivals as the investors look for the results in negotiations for a new round of fiscal stimulus in the U.S.

The EUR/USD pair rose more than 0.5% on Tuesday above the 1.18400 level for the first time in October as the market mood improved. EUR/USD pair followed the lockdown on Brexit talks, coronavirus spread in Europe, and France is reporting the record-high number of people hospitalized with Ireland introducing tough restrictions.

On the data front, the German PPI for September raised to 0.4% from the forecasted 0.1% and supported the single currency. At 13:00 GMT, the Current Account from Eurozone also raised to 19.9B against the forecasted 17.2B and supported EUR/USD pair’s bullish move.

At 17:30 GMT, the Building Permits raised to 1.55M from the expected 1.52M and supported the U.S. dollar on the U.S. front. The Housing Starts from the U.S. declined to 1.42M against the forecasted 1.45M and weighed on the U.S. dollar that ultimately added strength to EUR/USD pair on Tuesday. Furthermore, the improved risk sentiment after the reviving hopes for additional U.S. fiscal stimulus and expectations of a COVID-19 vaccine by the end of this year boosted investors’ confidence. The risk-on flow smashed the greenback’s relative safe-haven status and was seen as a key factor driving the currency pair higher.

The U.S. House Speaker Nancy Pelosi said on Sunday that legislation on a wide-range of coronavirus relief packages could be pushed through before the election on November 3. Whereas, the investors remained unconvinced that a deal could be reached with Republicans before the self-imposed deadline by Pelosi.

Traders were also concerned about the rising number of coronavirus cases in Europe that could lead to fresh lockdown measures and dent global economic recovery. This, in turn, raised the U.S. dollar demand due to its safe-haven status and capped further upside momentum for EUR/USD pair.

Looking forward, the market participants will await the release of German PPI for September on Wednesday for finding fresh clues about the EUR/USD pair’s movements.

Daily Technical Levels

Support Resistance

1.1773     1.1854

1.1725     1.1889

1.1691     1.1936

Pivot point: 1.1807

EUR/USD– Trading Tip

The EUR/USD is trading sharply bullish amid a weaker U.S. dollar at 1.1848 level, and continuation of a bullish trend has formed three white soldiers on the 4-hour timeframe. That bullish setup may drive an upward movement until the 1.1870 mark and 1.1900 level. The MACD and RSI support the buying trend, and on the higher side, the EUR/USD may face resistance at 1.1870. Conversely, the bearish correction can also be seen until the 1.1831 level and 1.1807 mark. Above 1.1807, we can expect a continuation of a buying trade today. 

GBP/USD – Daily Analysis

The GBP/USD pair was closed at 1.29466 after placing a high of 1.29794 and a low of 1.29107. Overall the movement of the GBP/USD pair remained bullish throughout the day. The GBP/USD pair followed its previous daily trend and rose for the second consecutive day on Tuesday; however, the gains remain limited as the frozen Brexit talks overshadowed the U.S. dollar’s weakness. The parts of Britain went into lockdown to curb virus infections also weighed on the rising GBP/USD pair on Tuesday.

The Brexit trade deal’s trade talks were paused after a phone call between negotiators from both sides failed to make a breakthrough. The U.K. negotiator David Frost said that his call with E.U. counterpart Michel Barnier was constructive but in-person talks could not resume. He said that fundamental change in the E.U.’s approach was required before face-to-face talks should continue. At the same time, Barnier said that the E.U.’s door was open following the phone call. The Frenchman who had proposed intensified talks in London this week said that both sides should make the most out of the little time left as both sides sought an agreement to govern their trading relationship[ after the U.K.’s transition period in the E.U. ends in January 2021. Both sides are calling on the other to compromise ahead of the looming December deadline for a deal. The disagreement persists on key issues like fisheries, level playing field, and governance.

On Tuesday, the U.K. Prime Minister Boris Johnson reportedly told the Greek prime minister that Brexit talks would remain paused until the E.U. changes its stance on the negotiations. He also reaffirmed that the E.U. had effectively ended the negotiations by stating that they did not want to change their negotiating positions, so the E.U. should change their position, and then the U.K. would be willing to talk on a new basis.

Without a trade deal, the U.K. will trade on the terms of the World Trade Organization with the E.U. that will hurt both economies, particularly when some parts of Britain were under lockdown to control the rising infection cases. The PM Boris Johnson also confirmed that Great Manchester would be going into the highest lockdown level – Tier 3- from Friday. It came in because the U.K.’s coronavirus cases raised by 21,330 daily, its highest daily rise since June 5.

All these Brexit tensions and rising coronavirus cases, and the renewed lockdowns kept the GBP/USD pair’s additional gains under pressure on Tuesday. Whereas, the internal market of PM Boris Johnson that seeks to undermine parts of the Brexit withdrawal agreement was voted down in Parliament, and this supported the GBP/USD pair’s bullish trend on Tuesday.

There was no macroeconomic release from Britain’s side on the data front, and from the U.S., the Housing Starts were declined to 1.42M against the expected 1.45M and weighed on the U.S. dollar that ultimately added strength to GBP/USD pair.

Daily Technical Levels

Support Resistance

1.2910     1.2980

1.2875     1.3015

1.2841     1.3049

Pivot point: 1.2945

GBP/USD– Trading Tip

The GBP/USD surged sharply to trade at the 1.3006 mark, but soon it slipped again to trade at the 1.2939 level. The cable is currently gaining immediate support at the 1.2939 level, and a bearish breakout of the 1.2939 mark can lead to GBP/USD prices further lower towards the 1.2886 level. On the flip side, the resistance continues to hold around the 1.3006 level. The MACD and RSI show neutral bias as investors seem to wait for a solid reason to enter the market. 

USD/JPY – Daily Analysis

The USD/JPY pair was closed at 105.506 after placing a high of 105.745 and a low of 105.339. Overall the movement of the USD/JPY pair remained bullish throughout the day. The USD/JPY pair rose to its six-day highest level on Tuesday in the early trading session but started losing its intraday gains in the late session due to U.S. dollar weakness. The uncertainty surrounding the next round of the U.S. fiscal stimulus kept the U.S. dollar bulls defensive and the USD/JPY pair under pressure.

The main factor involved in the USD/JPY pair’s upward momentum in U.S. dollar weakness was the solid rebound in U.S. equity markets that undermined the safe-haven Japanese Yen. Furthermore, a strong pickup in the U.S. Treasury bond yields, though, failed to revive the U.S. dollar demand and remained supportive of the move.

On the data front, at 17:30 GMT, the Building Permits for September from the U.S. raised to1.55M from the projected 1.52M and supported the U.S. dollar that ultimately pushed the USD/JPY pair higher. The Housing Starts declined in September to 1.42M from the anticipated 1.45M and weighed on the U.S. dollar helped cap further upside momentum in the USD/JPY pair.

The trade’s focus was on the developments over the U.S. stimulus measure as the self-imposed deadline by the U.S. House of Representatives Speaker Nancy Pelosi to reach a deal with Republicans was about to end. The hopes for the next round of stimulus measures were fading away as only two weeks are left for U.S. presidential elections, and it seems hard that both sides will reach a deal by then.

These faded hopes also supported the U.S. dollar and added further strength to the rising USD/JPY pair on Tuesday.

Meanwhile, on Tuesday, the U.S. Federal Reserve Vice Chair Randal Quarles said that the nonbank financial system was significantly more fragile than its traditional counterparts, and it has been confirmed by the market stresses created by the coronavirus pandemic. Furthermore, the Philadelphia Federal Reserve Bank President Patrick Harker said that Fed’s new framework should help address shortfalls in employment and help affected workers find new opportunities. He said that tolerating higher inflation will be worth it to help achieve employment goals. These comments from Fed officials also supported the USD/JPY pair’s bullish move on Tuesday.

Daily Technical Levels

Support Resistance

105.33     105.69

105.18     105.90

104.96     106.05

Pivot point: 105.54

USD/JPY – Trading Tips

The USD/JPY trades with a bearish bias around the 105.250 level, having violated the upward channel at the 105.450 level. Closing of candles below this level may lead the USD/JPY pair towards the 105 mark; however, it needs to violate the immediate support area of 105.285. Closing of candles below 105.285 may help us capture quick selling trades until the 105 level. The USD/JPY has recently closed a bearish engulfing candle, and it has also violated the upward channel; both of these are supporting further selling trend in the USD/JPY pair today.  

Good luck!  

Categories
Forex Signals

USD/CAD Examines Double Bottom Support – Brace for Bullish Recovery! 

The USD/CAD pair was closed at 1.31273 after placing a high of 1.32036and a low of 1.31042. Overall the movement of the USD/CAD pair remained bearish throughout the day. The USD/CAD pair fell to its fifth day lowest level on Tuesday amid the broad-based US dollar weakness and the strong rebound in crude oil prices.

The USD/CAD pair was closed at 1.31273 after placing a high of 1.32036and a low of 1.31042. Overall the movement of the USD/CAD pair remained bearish throughout the day. The USD/CAD pair fell to its fifth day lowest level on Tuesday amid the broad-based US dollar weakness and the strong rebound in crude oil prices.

The USD/CAD pair was closed at 1.31273 after placing a high of 1.32036and a low of 1.31042. The USD/CAD fell to its fifth day lowest level on Tuesday amid the broad-based US dollar weakness and the strong rebound in crude oil prices.

The greenback was weak across the board due to the pertaining uncertainty over the US stimulus package’s development. The US Dollar Index dropped to 93.02 level, its lowest since October 9 on Tuesday amid the US equity market’s strength. The improved risk sentiment supported the US equity market and weighed on the US dollar that ultimately dragged the USD/Cad pair’s prices on Tuesday.

The focus of traders has been shifted to the US negotiations for a new round of US stimulus package for the coronavirus crisis. The US Speaker of the House, Nancy Pelosi, has set a deadline for reaching an agreement before the November 3 election.

Though US President Donald Trump has shown his support for the wide range of stimulus measures, still Nancy Pelosi has failed to break the impasse, and these developments have faded away from the hopes that US stimulus will be delivered before elections. These uncertainties kept the market sentiment under pressure, and the USD/CAD pair suffered because of it.

There was no macroeconomic fundamentals to be released from Canada on the data front, and from the US, the Building Permits were released for September that raised to 1.55M from the expected 1.52M and supported the US dollar. While the Housing Starts were declined to 1.42M from the expected 1.45M and weighed on the US dollar that ultimately dragged the USD.CAD pair’s prices.

On the crude oil side, the WTI prices soared on Tuesday after falling for three consecutive days and reached near the $42 level amid the broad-based US dollar weakness. The rising crude oil prices gave strength to commodity-linked Loonie that ultimately added weight on the already declining USD/CAD pair. The Canadian dollar’s strength driven by raised risk sentiment and crude oil prices dragged the USD/CAD pair’s prices towards its five days lowest level on Tuesday.



Daily Technical Levels

Support Resistance

1.3083 1.3186

1.3041 1.3247

1.2980 1.3289

Pivot point 1.3144

The USD/CAD traded sharply bearish at the 1.3103 level, having violated the double bottom support area of the 1.3103 level on the 4-hour timeframe. Below this level, we may see further selling until the 1.3055 mark; however, the MACD and RSI are in an extremely oversold zone, and we may see a slight bullish recovery before entering into an additional selling zone. The idea is to wait for a bullish correction until the 1.3140 level that marks the 38.2% Fibonacci retracement level before taking another selling trade. Good luck! 

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Forex Signals

USD/CAD Managed to Extend Its Previous Session Modest Gains

During Tuesday’s early Asian trading session, the USD/CAD currency pair managed to extend its previous session modest gains and remain well bid around closer to 1.3200 level due to the declines in the crude oil prices, which tend to undermine the commodity-linked currency the Loonie and helps the currency pair to put the fresh bids during the early Asian session. 

During Tuesday’s early Asian trading session, the USD/CAD currency pair managed to extend its previous session modest gains and remain well bid around closer to 1.3200 level due to the declines in the crude oil prices, which tend to undermine the commodity-linked currency the Loonie and helps the currency pair to put the fresh bids during the early Asian session. 

During Tuesday’s early Asian trading session, the USD/CAD currency pair managed to extend its previous session modest gains and remain well bid around closer to 1.3200 level due to the declines in the crude oil prices, which tend to undermine the commodity-linked currency the Loonie and helps the currency pair to put the fresh bids during the early Asian session. 

On the contrary, the broad-based U.S. dollar weakness, triggered by the combination of factors, could be considered one of the key factors that kept the lid on any additional gains in the currency pair. As of writing, the USD/CAD currency pair is currently trading at 1.3190 and consolidating in the range between 1.3148 – 1.3195.

The optimism over the coronavirus (COVID-19) vaccine/treatment was recently overshadowed by the concerns about the second wave of coronavirus infections, which keep fueling the doubts over the global economic recovery. Besides this, the renewed conflict between the U.S. and China also weighed on the market trading sentiment. It is worth mentioning that Mike Pompeo has stated that ‘We are sanctioning mainland-China and Hong Kong entities and individuals for conduct related to the sanctioned proliferator the Islamic Republic of Iran Shipping Lines. He further added that our warning is clear: If you do business with IRISL or its subsidiaries, you will face U.S. sanctions.” This recently exerted downside pressure on the trading sentiment and contributed to the currency pair losses.

Despite this, the broad-based U.S. dollar remained depressed as the investors continue to sell U.S. dollars in the wake of the renewed hopes of additional U.S. fiscal stimulus measures and hopes of a coronavirus vaccine at the end of this year, which tends to undermine the safe-haven U.S. dollar. Elsewhere, the U.S. dollar losses were further bolstered by the doubts over the U.S. economic recovery amid rising coronavirus cases. Thus, the U.S. dollar losses become the key factor that cap further gains in the currency pair. Simultaneously, the U.S. Dollar Index that tracks the greenback against a bucket of other currencies dropped by 0.04% to 93.672.

On the bullish side, the WTI’s weakness restricts the USD/CAD bearish moves as oil is the biggest export-item for Canada. However, the WTI crude oil prices failed to extend its previous day gaining streak and remain depressed on the day mainly due to China’s GDP grew less than expected in the third quarter (Q3), which fueling concerns over the demand for crude oil from the world’s second-largest oil consumer. This, in turn, undermined the sentiment around the crude oil prices. The concerns over the sharp rise in new coronavirus cases, which could trigger renewed lockdown restrictions and damage the global economy’s ongoing recovery, continued challenging the crude oil bulls. Thus, the crude oil prices’ losses undermined the commodity-linked currency the Loonie and contributed to the currency pair gains.

Looking forward, the market traders keeping their eyes on the Housing Starts and Building Permits data. In the meantime, the updates surrounding the fresh Sino-US tussle, as well as the coronavirus (COVID-19), could not lose their importance.

Daily Support and Resistance

S1 1.308

S2 1.3141

S3 1.3166

Pivot Point 1.3202

R1 1.3226

R2 1.3263

R3 1.3323

The USD/CAD is trading mostly sideways over the 1.3170 level, and recently, it’s trying to a bullish engulfing pattern that may drive upward movement in the market until the 1.3250 level. Conversely, the bearish breakout of 1.3175 level can drive selling bias until 1.3095. Overall, the RSI and MACD are in support of selling bias until the 1.3095 level. Let’s consider taking a buy trade over 1.3170 and selling below the same level today. Good luck!

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Forex Market Analysis

Daily F.X. Analysis, October 20 – Top Trade Setups In Forex – European Events in Highlights! 

On the news front, the economic calendar is filled with a series of low impact economic events. However, the focus will remain on the German PPI m/m and Current Account from the Eurozone, and the point to note is that both of the data are expected to be positive so that it may underpin the Euro today. Besides, the FOMC Member Williams and Quarles speeches will be monitored for further price action. 

On the news front, the economic calendar is filled with a series of low impact economic events. However, the focus will remain on the German PPI m/m and Current Account from the Eurozone, and the point to note is that both of the data are expected to be positive so that it may underpin the Euro today. Besides, the FOMC Member Williams and Quarles speeches will be monitored for further price action. 

On the news front, the economic calendar is filled with a series of low impact economic events. However, the focus will remain on the German PPI m/m and Current Account from the Eurozone, and the point to note is that both of the data are expected to be positive so that it may underpin the Euro today. Besides, the FOMC Member Williams and Quarles speeches will be monitored for further price action. 

Economic Events to Watch Today  

 


 

EUR/USD – Daily Analysis

The EUR/USD pair was closed at 1.17708 after placing a high of 1.17936 and a low of 1.17030. Overall the movement of the EUR/USD pair remained bullish throughout the day. The EUR/USD pair was up on Monday and tried to approach the 1.1800 arear as the hopes of a U.S. stimulus package weighed on the U.S. dollar. 

The U.S. dollar was weak across the board due to mounting hopes that the U.S. stimulus package will be delivered soon and the encouraging Chinese data published on the day in early trading sessions. It was revealed that Republicans added 0.1 trillion dollars to its previous $1.8 trillion package offer to reach a consensus with Democrats. The Democrats, however, still found it difficult to reach a deal with republicans.

However, the hopes were increased in the market for U.S. stimulus as Republicans were making progress in compromising. This weighed on the U.S. dollar and helped the EUR/USD pair to extend its gains. On China’s front, the data from there reported its GDP at 4.9% in Q3 that was below the expectations of 5.2% and above the previous 3.2%. The U.S. dollar came under pressure because of China’s good performance in Q3 than Q2 and supported the EUR/USD pair’s upward momentum.

On Monday, the European Central Bank President Christine Lagarde said that she wanted E.U. governments to consider the possibility of making E.U. debt a permanent fixture of the bloc’s economic response to the crises. When asked about the 750 billion euros debt-fueled response to the coronavirus crisis, the E.U. commission will borrow on financial markets and disburse to E.U. countries as grants and loans; Lagarde said that this stimulus tool was a response to an exceptional situation like a pandemic. She added that there should be a discussion about this stimulus’s possibility to remain in the European toolbox to be mobilized again in identical circumstances.

Lagarde added that a debate on a common budgetary tool specific to the Euro area should take place and learn lessons from the situation that has happened recently. These comments from Lagarde added further strength to the already rising Euro currency and added additional gains. On the coronavirus front, Belgium extended its restrictions on bars and restaurants for the next four weeks as the infection rate rose continuously. The health minister warned that Belgium could soon be overwhelmed by new coronavirus infections.

Italy recorded its highest daily infection rate on Sunday and announced a raft of measures to control infection spread. Meanwhile, nine major French cities were also placed under curfew. However, these lingering coronavirus tensions failed to reverse the rising EUR/USD pair, and the currency pair remained on the positive track on Monday.

Daily Technical Levels

Support Resistance

1.1709     1.1723

1.1703     1.1731

1.1695     1.1737

Pivot point: 1.1717

EUR/USD– Trading Tip

The EUR/USD is consolidating below a strong resistance level of 1.1793 level, extended by a downward trendline on the 4-hour timeframe. On the lower side, the EUR/USD may find support at the 1.1735 level, and violation of this support level can extend selling until the 1.1690 level. On the higher side, bullish trend continuation can lead the EUR/USD price towards the next target level of the 1.1830 mark. The MACD supports bullish bias; therefore, we should look for buying trades upon today’s breakout of the 1.1790 level. 

GBP/USD – Daily Analysis

The GBP/USD pair was closed at 1.29827 after placing a high of 1.30244 and a low of 1.28912. The British Pound eased from session highs on Monday against the U.S. dollar but remained supported as the E.U. assured that it would remain committed to intensifying Brexit-deal talks with the U.K. The E.U. Brexit negotiator Michel Barnier confirmed that the E.U. remained available to intensify negotiations in London. This marked a change in tone after E.U. leaders dropped their pledge to intensify trade talks last week and called on the U.K. to make concessions for a deal. Barnier’s statement raised the possibility of a Brexit deal and helped GBP/USD pair to remain positive on Monday.

The U.K. Cabinet Office Minister Michael Gove had suggested that the U.K. would not resume talks before acknowledging signs of progress. He also said that he welcomes the constructive move on the part of the E.U. However, he said that there was no basis to find an agreement and that Brussel’s proposals were inconsistent with sovereign status. He also labeled potential talks as meaningless.

The pair GBP/USD was raised during the early trading session but failed to extend gains and eased due to Gove’s statement. Michael Gove said that the U.K. was increasingly well-prepared for an Australian-style exit from the E.U., meaning no-deal. The mixed statements from Barnier and Gove confused the traders, and the currency pair suffered from it as it moved on the upside in the early session and lost most of its gains in the late session.

On the data front, at 04:01 GMT, the Rightmove Housing Price Index for October came in as 1.1% compared to the previous 0.2%. From the U.S. side, the NAHB Housing Market Index rose to 85 from the forecasted 83 and supported the U.S. dollar that limited GBP/USD pair gains on Monday.

Meanwhile, the rising number of coronavirus in the U.K. also weighed on GBP/USD pair as an 18,804 new cases were reported for COVID-19 in the U.K. on Monday with 80 new deaths. This also kept the pair under pressure and its gains limited on the day.

Daily Technical Levels

Support Resistance

1.2900     1.2941

1.2874     1.2956

1.2859     1.2982

Pivot point: 1.2915

GBP/USD– Trading Tip

The GBP/USD surged sharply to trade at the 1.3006 mark, but soon it slipped again to trade at the 1.2939 level. The cable is currently gaining immediate support at the 1.2939 level, and a bearish breakout of the 1.2939 mark can lead to GBP/USD prices further lower towards the 1.2886 level. On the flip side, the resistance continues to hold around the 1.3006 level. The MACD and RSI show neutral bias as investors seem to wait for a solid reason to enter the market. 

USD/JPY – Daily Analysis

The USD/JPY pair was closed to 105.430 after placing a high of 105.501 and a low of 105.299. Overall the movement of the USD/JPY pair remained bullish throughout the day. Despite the U.S. dollar weakness, the USD/JPY pair posted gains on Monday and remained bullish as the U.S. stimulus package deal’s developments started moving on the positive side. The market mood was also better and played against the greenback after releasing the GDP report from China.

The Republicans extended its previous offer of $1.8 trillion to a $1.9 trillion packages on Monday, which was again failed by Democrats. The U.S. President Donald Trump has expressed his willingness for a larger stimulus package, but he still has to convince Republicans. Whereas, the U.S. House Speaker Nancy Pelosi has set out a 48-hour deadline for U.S. stimulus talks in the last effort to reach a deal before the elections.

Before elections, the hopes for a stimulus package dimmed and supported the U.S. dollar and raised the USD/JPY pair on Monday.

Meanwhile, China published its GDP report for the third quarter that came in as 4.9% and fell short of the forecasted 5.5% but extended compared to the previous 3.2%. The U.S. dollar came under pressure because of the Chinese GDP report and further capped gains in the USD/JPY pair on Monday.

On the data front, at 04:50 GMT, the Trade Balance from Japan for September came in as 0.48T against the forecasted 0.85T and weighed on the Japanese Yen. At 19:00 GMT, the NAHB Housing Market Index for October raised to 85 from the forecasted 83 and supported the U.S. dollar that pushed the USD/JPY pair even higher. Meanwhile, the Fed Chair Jerome Powell said in his speech on Monday that it should be more important for the U.S. to get the development of CBDC- cross-border digital currency right than being the first one to issue it.

China has given away about $1.5 million for its digital currency trials and has said that it would become the first to issue a CBDC. China wanted to reduce its dependence on the global dollar payment system and has taken the initiative to issue its digital currency.

Following China’s move, many central banks worldwide have started examining the possibility of issuing a digital currency. Facebook has also announced introducing Libra, its digital currency, given the increased demand for digital payments during the COVID-19 pandemic.

The Bank for International Settlements (BIS) and the seven other central banks, including the U.S. Fed and Bank of England, have released a report that tells the importance of CBDC to catch up with China’s move be the first one. According to Powell, the U.S. Fed has not yet decided on the issuance of digital currency, but it has been an active participant in research into the issue.

Moreover, the Federal Reserve Vice Chair Richard Clarida said on Monday that after taking a substantial hit from the pandemic, the U.S. economy was rebounded strongly. He said that it might take another year to reach pre-pandemic economic levels, but the labor market could take more than that to recover the pandemic’s damage. Fed officials’ comments also weighed on the U.S. dollar and caped further gains in the USD/JPY pair on Monday.

Daily Technical Levels

Support Resistance

105.37     105.50

105.28     105.56

105.23     105.64

Pivot point: 105.42

USD/JPY – Trading Tips

The USD/JPY trades with a bullish bias around the 105.550 level, holding below the double bottom area. Bullish crossover of 105.550 level may lead USD/JPY pair further higher until 105.800 level. On the 2 hour chart, the USD/JPY has formed an upward channel, which is likely to support the USD/JPY pair around the 105.300 level. Below this, the next support is likely to be found around 105.250 and 105.06. Let’s consider opening sell trade beneath 105.60 and buying over 105.050 level today. Good luck!  

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Forex Signals

AUD/USD Violates Bearish Flag – Bearish Bias Dominates!   

The AUD/USD pair was closed at 0.70685 after placing a high of 0.71144 and a low of 0.70685. Overall the movement of the AUD/USD pair remained bearish throughout the day. The AUD/USD pair extended its previous day’s losses and dropped for the third consecutive day on Monday as the market sentiment soared after the reports from the US dampening hopes of a US COVID-19 stimulus deal.

The AUD/USD pair was closed at 0.70685 after placing a high of 0.71144 and a low of 0.70685. Overall the movement of the AUD/USD pair remained bearish throughout the day. The AUD/USD pair extended its previous day’s losses and dropped for the third consecutive day on Monday as the market sentiment soared after the reports from the US dampening hopes of a US COVID-19 stimulus deal.

The AUD/USD pair was closed at 0.70685 after placing a high of 0.71144 and a low of 0.70685. Overall the movement of the AUD/USD pair remained bearish throughout the day. The AUD/USD pair extended its previous day’s losses and dropped for the third consecutive day on Monday as the market sentiment soared after the reports from the US dampening hopes of a US COVID-19 stimulus deal.

The upbeat Chinese GDP data for the third quarter gave strength to the Australian dollar and helped AUD/USD pair to open its week on a strong note. The Asian giant’s economy and the largest trading partner of Australia expanded by 4.9% in Q3 and showed strong industrial output and consumption figures that pointed out a strong recovery from the pandemic that hit Q2 hardest.

The China-proxy Aussie gained traction after the upbeat data from China, and the US dollar became weak, ultimately pushing the AUD/USD pair on the higher side in the early trading session on Monday. However, the gains were short-lived, and the AUD/USD pair’s movement reversed as the hopes for a US stimulus package faded away.

During the Weekend, the statement from Nancy Pelosi that a deal might be reached before elections over the US stimulus package gave strength to the risk sentiment. The improved risk sentiment pushed AUD/USD pair to open on a strong note, but the upward momentum was broken after hopes deteriorated on Monday.

The Republicans added another 0.1 trillion dollars to the previous $1.8 trillion stimulus package that failed to get approval. The US President showed his willingness to approve more stimulus before elections; however, he needed to deal with Republicans first. The US House Speaker Nancy Pelosi provided a 48-hours deadline to Republicans to reach a deal to pass the coronavirus stimulus package before elections. 

The mixed situation has weighed on the risk sentiment as the stimulus hopes are fading with the passage of time and the risk perceived Aussie suffered that reversed the direction of AUD/USD pair on Monday.

The pair AD/USD started moving in the downward trend because of the rate differentials between 10-year government bond yields of Australia and the US. The US 10-year Treasury yields were around 0.77%, and the Australian counterpart was at 0.750%. 

The market participants will be looking forward to the release of monetary policy meeting minutes from the Reserve Bank of Australia on Tuesday and will keep following the bearish bias until finding some fresh clues for future trading.


Daily Technical Levels

Support Resistance

0.7078 0.7101

0.7064 0.7110

0.7056 0.7124

Pivot point: 0.7087

The AUD/USD is trading at the 0.7043 level, having violated the bullish flag pattern on the 2-hour timeframe. On the lower side, bearish trend continuation can lead the AUD/USD pair towards the support area of 0.7014 level. At the same time, the support continues to stay at the 0.7068 level. The bearish bias remains dominant today; therefore, we should look for selling trades below the 0.7067 level today. Good luck! 

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Forex Market Analysis

Daily F.X. Analysis, October 19 – Top Trade Setups In Forex – Eyes on ECB and Fed Officials Speech!  

On the news side, the economic calendar is filled with high impact speeches from the central bank officials such as the U.S. Fed Chair Powell and ECB President Lagarde. The U.S. Fed Chair Powell participates in a panel discussion about cross-border payments and digital currencies at the International Monetary Fund’s annual meeting, via satellite. Audience questions are expected. Simultaneously, the U.K MPC Member Cunliffe and the FOMC Member Clarida are also due to speak during the U.S. sessions.

On the news side, the economic calendar is filled with high impact speeches from the central bank officials such as the U.S. Fed Chair Powell and ECB President Lagarde. The U.S. Fed Chair Powell participates in a panel discussion about cross-border payments and digital currencies at the International Monetary Fund’s annual meeting, via satellite. Audience questions are expected. Simultaneously, the U.K MPC Member Cunliffe and the FOMC Member Clarida are also due to speak during the U.S. sessions.

On the news side, the economic calendar is filled with high impact speeches from the central bank officials such as the U.S. Fed Chair Powell and ECB President Lagarde. The U.S. Fed Chair Powell participates in a panel discussion about cross-border payments and digital currencies at the International Monetary Fund’s annual meeting, via satellite. Audience questions are expected. Simultaneously, the U.K MPC Member Cunliffe and the FOMC Member Clarida are also due to speak during the U.S. sessions.

Economic Events to Watch Today  

 


 

EUR/USD – Daily Analysis

The EUR/USD pair was closed at 1.17043 after placing a high of 1.17458 and a low of1/16937. Overall the movement of the EUR/USD pair remained bullish throughout the day. On Friday, the EUR/USD pair showed limited movement as most of its daily gains vanished during late trading sessions after the U.S. dollar became strong across the board. The U.S. dollar became stronger after the hopes for the next round of stimulus ahead of upcoming elections faded away.

Meanwhile, the financial markets were calmed on Friday by the hopes that Pfizer could apply for a U.S. emergency use of its coronavirus vaccine in November. The financial markets were affected by the coronavirus pandemic’s resurgence that could undermine the fragile economic recovery. The Wall Street futures and European stocks came back into positive territory on Friday after the U.S. pharmaceutical group said that the vaccine’s regulatory filing could come as soon as safety data are available in the 3rd week of November.

The rising risk sentiment in the market helped EUR/USD stay on the positive trend on Friday despite the rising number of coronavirus cases across Europe. On the data front, at 14:00 GMT, the Final CPI for the year from Eurozone remained flat with the projections of -0.3%. The Final Core CPI for the year also came in line with the expectations of 0.2%. Whereas, the Trade Balance from Eurozone showed a surplus of 21.9B against the forecasted 18.1B and the previous 19/3B and supported single currency Euro that ultimately added strength in EUR/USD pair.

Whereas, the Italian Trade Balance was released at 14:02 GMT that showed a surplus of 3.93B against the forecasted 7.23B and weighed on the Euro. Most data from Eurozone came in line with the forecasts and had a null-effect on EUR/USD pair. From the U.S. side, the Core Retail Sales rose to 1.5% against the forecasted 0.4%, and the Retail Sales was advanced to 1/9% against the projected 0.7% and supported the U.S. dollar. The gains in EUR/USD pair were dragged down by the strong Retail Sales figures from the U.S. that added strength to the U.S. dollar and exerted pressure on EUR/USD pair’s prices on Friday.

The combination of the severe economic downturn due to coronavirus and the high value of the Euro weighed heavily on inflation levels on the Eurozone economy. That is why most of the daily gains in EUR/USD were lost on Friday as the continuous threat of deflation remains a severe problem for policymakers; however, it seems like the negative trend would continue for some time.

Whereas the Capacity Utilization Rate from the U.S. dropped to 71.5% against the expected 72.1%, and the Industrial Production from the U.S. also declined to -0.6% from the forecasted 0.6% and weighed heavily on the U.S. dollar. U.S. reports’ negative results exerted pressure on the U.S. dollar and ultimately raised the EUR/USD pair’s gains.

On the other hand, the U.S. dollar was stronger because of the U.S. President’s offer to increase the size of a fiscal stimulus package by Republicans to win the Democrats’ support. The attempt to increase the stimulus package’s size was due to securing his position in the upcoming elections by providing aid to the struggling Americans. However, there are still no signs that Democrats and Republicans will reach an agreement before November 3rd. The strong U.S. dollar weighed on EUR/USD pair and capped further gains in the currency pair on Friday.


Daily Technical Levels

Support Resistance

1.1676     1.1748

1.1646     1.1790

1.1605     1.1820

Pivot point: 1.1718

EUR/USD– Trading Tip

The EUR/USD is trading at 1.1706 level, holding above an immediate double bottom support level of 1.1693. The U.S. dollar is likely to show some volatility during the day on the back of high and medium impact economic events from the United States. A stronger dollar may trigger a selling trend until the 1.1656 level, while the resistance can be found around 1.1725 and the 1.1748 levels.

GBP/USD – Daily Analysis

The GBP/USD pair was closed at1.29150 after placing a high of 1.29622 and a low of 1.28616. Overall the movement of the GBP/USD pair remained flat throughout the day. On Friday, the GBP/USD pair remained flat as the day’s opening and closing levels for the currency pair remained the same at 1.29150. However, the GBP/USD pair remained marginally lowered for the week because of the contradictory reports. The coronavirus and the U.S. Presidential elections headlines and the Brexit developments had a great impact on GBP/USD pair’s prices during the week.

The GBP/USD pushed to the higher side after the hopes that the U.K. and E.U. could continue trade talks emerged in the market. The U.K. foreign secretary Dominic Raab said that both sides were close to a deal, and this encouraged hopes that PM Boris Johnson will not walk away from further discussions. However, the gains in GBP/USD pair could not live for long as the same hopes faded away after the spokesman to PM Boris Johnson said that the trade talks between the U.K. and E.U. were over unless there was a fundamental change from the economic bloc. These comments weighed on the local currency British Pound, and the pair GBP/USD lost all of its gains from the earlier session.

A day earlier, the E.U. leaders dropped their commitments to work intensively with the U.K. to reach a trade deal and said Britain should make the necessary moves to secure an agreement. The key sticking points for Brexit negotiations were still the level playing field, fisheries, and governance issues.

The lack of progress in Brexit talks and the rising number of coronavirus cases in Britain weighed on local currency GBP. There was no macroeconomic data release from the United Kingdom on the data front, so traders kept following the U.S. dollar movements on Friday. At 17:30 GMT, the Core Retail Sales for September from the U.S. advanced to 1.5% from the projected 0.4%. The U.S. dollar Retail Sales also increased to 1.9% against the forecasted 0.7% and supported the U.S. dollar. The Capacity Utilization Rate from the U.S. dropped to 71.5% from the forecasted 72.1% and weighed on the U.S. dollar. The Industrial Production from the U.S. dropped to -0.6% from the anticipated 0.6% and weighed heavily on the U.S. dollar. The economic data from the United States on Friday also came in mixed and provided a null effect on the GBP/USD pair.

Apart from economic data, the U.S. dollar was strong on Friday due to the U.S. stimulus package’s latest developments. It seems like U.S. President Donald Trump wants to win elections and secure his position for the second time on November 3rd. Trump proposed increasing the $1.8trillion package to provide aid to struggling areas before upcoming elections. However, this statement was not enough to raise bars for the GBP/USD pair on Friday.

Over Brexit Front, the PM Boris Johnson agreed to extend the E.U.’s trade talks until October. It was already agreed between the PM Johnson and E.U. Commission president Ursula von der Leyen. The extended deadline raised the chances for a Brexit deal before the end of the transitions period on December 31st. The rising optimism in the market helped the risk sentiment and favored the GBP/USD pair’s upward direction. However, the upward trend of the currency pair was reversed due to the rising number of coronavirus cases, and the pair ended its day at the same level it had started its day with.


Daily Technical Levels

Support Resistance

1.2859     1.3000

1.2804     1.3086

1.2718     1.3141

Pivot point: 1.2945

GBP/USD– Trading Tip

The GBP/USD is trading at 1.2890 level, having supported over 1.2890 level. Above this, the next target is likely to be found around 1.2957 and 1.3020 level. Simultaneously, a bearish breakout of the 1.2890 support level can extend selling bias until 1.2840. The bearish bias remains solid below the 1.2890 mark. The cable may exhibit a breakout on the release of U.S. related economic events, especially the retail sales and consumer confidence. The leading indicators, such as MACD and RSI, support selling; therefore, it’s worth taking a selling trade below 1.2880 today. 

USD/JPY – Daily Analysis

The USD/JPY pair was closed at 105.377 after placing a high of 105.444 and a low of 105.188. Overall the movement of the USD/JPY pair remained bearish throughout the day. Despite the US dollar’s strength across the board on Friday, the pair USD/JPY dropped and posted losses for the day. It was mainly due to the US stimulus measure’s mixed developments in the market.

On Friday, the US President Donald Trump said that he was ready to increase the $1.8 trillion stimulus relief package for coronavirus. This news raised the hopes that the next round of stimulus will be delivered before elections on November 3rd and raised risk sentiment that supported the USD/JPY pair.

However, the same hopes were faded away after the Senate Majority Leader Mitch McConnell said that he wanted to put forward a highly targeted proposal of $500 billion despite the prior skinny bill that was failed. After Trump’s above statement, the Republican senator’s comments showed that Republicans were against the big stimulus package before elections. It raised concerns that stimulus will not be delivered before elections and weighed on risk sentiment, and dragged the USD/JPY pair on Friday to the lower side.

Meanwhile, the Federal Reserve Bank of Minneapolis President Neel Kashkari said on Friday that the US regulators were going in the wrong direction when it comes to the banks, and the arguments banks use against the strict requirements amount to nonsense. He added that there should be tough and higher capital requirements on the bigger banks.
At 17:30 GMT, the highlighted Core Retail Sales from the United States advanced to 1.5% against the forecasted 0.4% and supported the US dollar. The US dollar Retail Sales also raised to 1.9% from the forecasted 0.7% and supported the US dollar. At 19:00 GMT, the Prelim UoM Consumer Sentiment for October also raised o 81.2 against the forecasted 80.2 and supported the US dollar.

All these highlighted macroeconomic releases from the US gave strength to its local currency but failed to provide upside momentum to the USD/JPY pair on Friday as the focus of trades has been shifted towards stimulus package and upcoming US presidential elections.

At 18:15 GMT, the Capacity Utilization Rate from the United States for September dropped to 71.5% against the projected 72.1% and weighed on the US dollar. In August, the Industrial Production from the US also dropped to -0.6% against the forecasted 0.6% and weighed on the US dollar.

At 19:00 GMT, the Business Inventories in August remained flat with a projection of 0.3%. The Prelim UoM Inflation Expectations came in as 2.7% in October against September’s 2.6%. At 23:00 GMT, the Federal Budget Balance also came in line with the expectations of -124.6B.
The US side’s negative data weighed on the US dollar, which ultimately dragged the USD/JPY pair on the downside on Friday. Furthermore, the risk sentiment was also supported by the news that Pfizer could be applied for a US emergency use of its coronavirus vaccine in November. The raised risk sentiment helped limit the losses of the USD/JPY pair on Friday.


Daily Technical Levels

105.05     105.70

104.82     106.12

104.40     106.36

Pivot point: 105.47

USD/JPY – Trading Tips

The USD/JPY traded sideway, with a neutral bias within a narrow trading range of 105.600 level to the 105.250 mark. Most of the selling triggered following the USD/JPY disrupted an upward channel at the 105.900 mark on Monday. The USD/JPY is trading at 105.459 marks, the support that’s was prolonged by double bottom mark on the two-hourly charts. A bearish violation of the 105.450 mark may encourage additional selling unto the 105.070 support level as the MACD, and the 50 periods EMA are in support of selling sentiment today. Let’s consider opening sell trade beneath 105.60 and buying over 105.050 level today. Good luck!  

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Forex Signals

Bearish Flag in AUD/USD – Can we Expect Bearish Trend Continuation?  

During Monday’s early Asian trading session, the AUD/USD currency pair failed to stop its Friday’s losing streak and witnessed some fresh selling on the first trading day of the week while dropped to the near three-week lows below the 0.7100 level. However, the prevalent bearish sentiment around the currency pair could be associated with the on-going expectations of further policy easing by the RBA, which tends to undermine the Australian dollar and contribute to the currency pair losses. 

During Monday’s early Asian trading session, the AUD/USD currency pair failed to stop its Friday’s losing streak and witnessed some fresh selling on the first trading day of the week while dropped to the near three-week lows below the 0.7100 level. However, the prevalent bearish sentiment around the currency pair could be associated with the on-going expectations of further policy easing by the RBA, which tends to undermine the Australian dollar and contribute to the currency pair losses. 

During Monday’s early Asian trading session, the AUD/USD currency pair failed to stop its Friday’s losing streak and witnessed some fresh selling on the first trading day of the week while dropped to the near three-week lows below the 0.7100 level. However, the prevalent bearish sentiment around the currency pair could be associated with the on-going expectations of further policy easing by the RBA, which tends to undermine the Australian dollar and contribute to the currency pair losses. 

Apart from this, the currency pair’s declines were further bolstered by the long-lasting tussle between the US-China and stimulus deadlock in the U.S., which leads to the decline in U.S. stock’s future. This, in turn, undermined the perceived risk currency Australian dollar and contributed to the currency pair losses. The acceleration in the coronavirus (COVID-19) wave 2.0 also played its major role in undermining the market trading sentiment, which adds further burden around the perceived risk currency Australian dollar and dragged the currency pair low. On the contrary, the declines in the broad-based U.S. dollar, triggered by the combination of factors, becomes the factor that helps the currency pair to limit its deeper losses. At this time, the AUD/USD is currently trading at 0.7085 and consolidating in the range between 0.7073 – 0.7086.

As we already mentioned that the AUD/USD currency pair took a hit from Reserve Bank of Australia’s Governor Philip Lowe, who had provided a strong hint on Thursday that the central bank will likely cut interest rates, or announce further stimulus measures at its next meeting in early-November in order to support jobs growth and alleviate currency pressures within the current pandemic situations. This, in turn, undermined the Australian dollar.

The global market trading sentiment failed to stop its Friday negative performance and remains pessimistic on the day amid the intensifying market worries over the rapid rise in new coronavirus cases, which leads to the new lockdown restrictions and hinder the global economic recovery, undermining the perceived riskier Australian dollar. Elsewhere, the intensifying tensions between the U.S. and China added additional burdens around the global trading market. The tension between the world’s two largest economies fueled further after China aggressively warns the U.S. to step back from Taiwan Strait. However, these lingering Sino-US tensions keep challenging the risk market sentiment and contributed to the currency pair losses.

Apart from this, the U.S. policymakers’ inability to offer the much-awaited COVID-19 stimulus also played its major role in weakening the market trading sentiment, which in turn, exerted some additional pressure on the perceived riskier Australian dollar and contributed to the currency pair losses.

 

Across the pond, the reason for the downbeat market trading sentiment could also be associated with the China-Australia tussle. Having initially halted Aussie coal and cotton, the Dragon Nation recently passed a law to limit exports of its controlled items. This shows China’s willingness to combat global criticism to dump the markets with exports and heavy risks. 

Despite the U.S. upbeat data, the broad-based U.S. dollar failed to stop its bearish bias and remained under pressure on the day. Moreover, the U.S. dollar losses could also be associated with political uncertainty in the U.S. ahead of U.S. elections. Thus, the weaker U.S. dollar is seen as the major factor that kept the currency pair higher. Simultaneously, the U.S. Dollar Index that tracks the greenback against a bucket of other currencies dropped to 93.705.

Looking forward, the traders will keep their eyes on China’s 3td-quarter (Q3) GDP, which is expected 5.2% YoY against 3.2% prior. In the meantime, the Fed Chair Powell Speaks will closely be followed. At the same time, the NAHB Housing Market Index data will also be key to watch. Apart from this, the continuous drama surrounding the US-China relations and updates about the U.S. stimulus package will not lose their importance. 


Daily Support and Resistance

S1 0.6931

S2 0.7014

S3 0.7054

Pivot Point 0.7096

R1 0.7137

R2 0.7179

R3 0.7261

The AUD/USD is trading with a bearish bias at the 0.7092 level, forming a bearish flag pattern on the four hourly timeframes. A bearish breakout of 0.7068 level supports the pair; however, this support violation can trigger selling until 0.7014 level. On the flip side, a bullish crossover of 0.7107 can lead the AUD/USD price towards the next target level of 0.7165. Good luck! 

Good luck!

Categories
Forex Signals

Gold Breakout of Symmetric Triangle Pattern – Brace for Buying!


Entry Price – Buy 1904.88

Stop Loss – 1898.88

Take Profit – 1910.88

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 Gains Support Over 1.3170 – Can Bullish Engulfing Drive Bounce off? 

The USD/CAD was closed at 1.31927 after placing a high of 1.32374 and a low of 1.31770. Overall the movement of the USD/CAD pair remained bearish during the Aisan session today. Most of the selling is seen following the gains in USD/CAD for three consecutive days. The USD/CAD pair posted losses on Friday amid the mixed sentiment around the US stimulus package and Canada’s strong data. On late Thursday, President Trump said that he was raising the size of a fiscal stimulus package to win the support of Democrats to deliver the package to struggling Americans. The republicans were not in favor of big stimulus, and it raised concerns that the stimulus package will not be delivered before elections.

The USD/CAD was closed at 1.31927 after placing a high of 1.32374 and a low of 1.31770. Overall the movement of the USD/CAD pair remained bearish during the Aisan session today. Most of the selling is seen following the gains in USD/CAD for three consecutive days. The USD/CAD pair posted losses on Friday amid the mixed sentiment around the US stimulus package and Canada’s strong data. On late Thursday, President Trump said that he was raising the size of a fiscal stimulus package to win the support of Democrats to deliver the package to struggling Americans. The republicans were not in favor of big stimulus, and it raised concerns that the stimulus package will not be delivered before elections.

The USD/CAD was closed at 1.31927 after placing a high of 1.32374 and a low of 1.31770. Overall the movement of the USD/CAD pair remained bearish during the Aisan session today. Most of the selling is seen following the gains in USD/CAD for three consecutive days. The USD/CAD pair posted losses on Friday amid the mixed sentiment around the US stimulus package and Canada’s strong data. On late Thursday, President Trump said that he was raising the size of a fiscal stimulus package to win the support of Democrats to deliver the package to struggling Americans. The republicans were not in favor of big stimulus, and it raised concerns that the stimulus package will not be delivered before elections.

This raised the risk sentiment and pulled back the demand for the safe-haven greenback, and made the USD/CAD pair to post losses on the day. However, the investors remained doubtful about the concerns related to a steep rise in new coronavirus cases in Europe, and this continued to lend some support to the US dollar due to its safe-haven status. The improved US dollar helped cap further losses in the USD/CAD pair.

On the data front, at 17:30 GMT, from the Canada side, the Foreign Securities Purchases for August increased to 15.51B from the expected -3.01B and supported the Canadian Dollar that added pressure on the downward momentum of the currency pair USD/CAD. The Manufacturing Sales data from Canada dropped to -2.0% from the expected -1.4% and weighed on the Canadian Dollar.

The Capacity Utilization Rate was dropped to 71.5% against the anticipated 72.1% and weighed on the US dollar from the US side. The Industrial Production in August also dropped to -0.6% from the forecasted 0.6% and weighed heavily on the US dollar. The US side’s negative economic data added further pressure on the declining USD/CAD pair’s prices.

Meanwhile, the rising fears that another round of lockdowns worldwide to control coronavirus spread could weaken the global energy demand affected crude oil prices. The WTI crude oil dropped on Friday and weighed on commodity-linked Loonie that helped the USD/CAD pair to limit its losses on Friday.

The risk sentiment in the market also kept the USD/CAD pair’s losses limited on Friday after the US pharmaceutical giant Pfizer said that it is expected to file for emergency use authorization for its COVID-19 vaccine in late November. The company said it would move with the vaccine after its safety data are available in late November. The news’s risk sentiment was boosted and kept the USD/CAD pair’s losses under control.


Daily Technical Levels

Support Resistance

1.3175 1.3191

1.3169 1.3201

1.3159 1.3207

Pivot point: 1.3185

The USD/CAD is trading mostly sideways over the 1.3170 level, and recently, it’s trying to a bullish engulfing pattern that may drive upward movement in the market until the 1.3250 level. Conversely, the bearish breakout of 1.3175 level can drive selling bias until 1.3095. Overall, the RSI and MACD are in support of selling bias until the 1.3095 level. Let’s consider taking a buy trade over 1.3170 and selling below the same level today. Good luck!

Categories
Forex Signals

USD/CHF Downward Channel in Play – Quick Update on Signal!

The USD/CHF extended its previous session losing streak and hit the intra-day low around the 0.9130 regions in the last hours. However, the reason for the currency pair prevalent bearish bias could be attributed to the risk-off market sentiment, which underpins the safe-haven Swiss Franc and contributes drive selling in the pair. Hence, the market trading bias was being pressured by the fears of the steep rise in new coronavirus infections in Europe and the U.S.

The USD/CHF extended its previous session losing streak and hit the intra-day low around the 0.9130 regions in the last hours. However, the reason for the currency pair prevalent bearish bias could be attributed to the risk-off market sentiment, which underpins the safe-haven Swiss Franc and contributes drive selling in the pair. Hence, the market trading bias was being pressured by the fears of the steep rise in new coronavirus infections in Europe and the U.S.

The USD/CHF extended its previous session losing streak and hit the intra-day low around the 0.9130 regions in the last hours. However, the reason for the currency pair prevalent bearish bias could be attributed to the risk-off market sentiment, which underpins the safe-haven Swiss Franc and contributes drive selling in the pair. Hence, the market trading bias was being pressured by the fears of the steep rise in new coronavirus infections in Europe and the U.S.

Moreover, the risk-off market sentiment was further bolstered by the prevalent impasse over the next round of the U.S. fiscal stimulus measures, which further pessimism around the currency pair. On the flip side, the broad-based U.S. dollar weakness, triggered by doubts over the U.S. economic recovery, also played its major role in undermining the currency pair. At this particular time, the USD/CHF currency pair is currently trading at 0.9134 and consolidating in the range between 0.9130 – 0.9164.

The market risk tone has been shaky since the day started, possibly due to the worsening coronavirus (COVID-19) conditions in the U.K., Europe, and the U.S., which keeps fueling the worries over the global economic recovery. Meanwhile, the renewed conflict between the U.S. and China and the China-Australia tussle also exerted downside pressure on the market risk-tone and underpinned the safe-haven Swiss franc. As per the latest report, the daily new cases increased past Thursday’s record level of 6,638, with 7,334 new infections leading to 348,557 total numbers. The death toll seems to ease from the previous day’s 33 to 24 while marking a total of 9,734 deaths. As in result, the investors remained cautious that the rise in new coronavirus cases could lead to renewed lockdown measures.

Apart from this, the U.S. policymakers’ inability to offer the much-awaited COVID-19 stimulus also played its major role in weakening the market trading sentiment, which exerted some additional pressure on the market trading sentiment. At the US-China front, the renewed concerns over worsening diplomatic tensions between the world’s two largest economies also exerted downside pressure on the market trading sn time, which keeps the USD/CHF currency pair under pressure. Check out the trading plan below…


Daily Support and Resistance

S1 0.9083
S2 0.9113
S3 0.9128
Pivot Point 0.9142
R1 0.9158
R2 0.9172
R3 0.9201

Entry Price – Sell 0.91405
Stop Loss – 0.91805
Take Profit – 0.91005
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

GBP/USD Succeeded to Stop Losing Streak – Quick Update on Signal!

During the Friday’s early European trading session, the GBP/USD currency pair managed to stop its early-day declining streak and recovered from the daily lows of 1.2883 to the 1.2925 level mainly due to the fresh optimism about the Brexit deal, triggered by the report suggesting that the European Union (E.U.) and the U.K. policymakers are ready to extend talks, which eventually helped the currency pair to limit its deeper losses.

During the Friday’s early European trading session, the GBP/USD currency pair managed to stop its early-day declining streak and recovered from the daily lows of 1.2883 to the 1.2925 level mainly due to the fresh optimism about the Brexit deal, triggered by the report suggesting that the European Union (E.U.) and the U.K. policymakers are ready to extend talks, which eventually helped the currency pair to limit its deeper losses.

During the Friday’s early European trading session, the GBP/USD currency pair managed to stop its early-day declining streak and recovered from the daily lows of 1.2883 to the 1.2925 level mainly due to the fresh optimism about the Brexit deal, triggered by the report suggesting that the European Union (E.U.) and the U.K. policymakers are ready to extend talks, which eventually helped the currency pair to limit its deeper losses.

 Besides, the Brexit hopes were further fueled after the U.K. Foreign Secretary Dominic Raab said, “We are close to a deal.” On the flip side, the broad-based U.S. dollar fresh weakness, backed by the worries over the U.S. economic recovery, also played its major role in supporting the currency pair. On the contrary, the worsening COVID-19 conditions in the U.K. and the renewed fears of tough lockdown measures become the key factor that kept the lid on any further gains in the currency pair. 

As we already mentioned, the GBP/USD currency pair witnessed some instant progress over the last hours after the European Union (E.U.) and the U.K. policymakers showed a willingness to extend Brexit talks. As per the latest report, the E.U.’s chief negotiator Michael Barnier said he is ready for Brexit talks “until last possible day” while his British counterpart blamed the regional leaders for the prevailing impasse the Brexit deal. These positive headlines instantly underpinned the British Pound and pushed the currency pair higher. 

In the meantime, the U.K. Foreign Secretary Dominic Raab said in response to the E.U.’s ultimatum of deciding on the Brexit fate that the “We are disappointed and surprised by the European Union (E.U.) position on Brexit,” He further added that “We are close to a deal.” Hence the Raab’s latest optimism about the Brexit deal helped the currency pair to stay bid.

Despite the rising number of COVID-19 cases and the U.S. Congress’ lack of progress towards passing the latest stimulus measures ahead of the November 3 presidential election, the broad-based U.S. dollar failed to put any heaven bids and remain depressed on the day, possibly due to the doubts over the U.S. economic recovery, which tend to undermine the greenback. The losses in the U.S. dollar becomes the key factor that helps the currency pair. 

On the contrary, the COVID-19 cases in the U.K. and Europe getting worse day by day as the daily counts reached closer to the 20,000 threshold, 18,980 new cases, 138 deaths marked in the latest report. Considering the virus’s current condition spreading, the opposition Labour Party ordered the national lockdown for at least two weeks. Apart from the USK, the U.S. cases of the novel coronavirus crossed 8 million so far, rising by 1 million in less than a month, as another wave in cases hits the nation at the onset of cooler weather.

The traders will keep their eyes on September month’s Retail Sales and Michigan Consumer Confidence for October. Meanwhile, the USD moves and coronavirus headlines will also closely followed as they could play a key role in the crude oil. 

Daily Support and Resistance

S1 1.2671

S2 1.2806

S3 1.2856

Pivot Point 1.2941

R1 1.2991

R2 1.3075

R3 1.321


The GBP/USD is trading at 1.2890 level, having supported over 1.2890 level. Above this, the next target is likely to be found around 1.2957 and 1.3020 level. Simultaneously, a bearish breakout of the 1.2890 support level can extend selling bias until 1.2840. The bearish bias remains solid below the 1.2890 mark.

Entry Price – Sell 1.2917

Stop Loss – 1.2877

Take Profit – 1.2957

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

AUD/CAD Trimmed Its Eary-Day Gains & Dropped – Downward Channel In Play!   

The AUD/CAD failed to extend its early-day modest gains and edged lower around the 0.9362 level. However, the bearish sentiment around the currency pair could be associated with the on-going tussle between the US-China and stimulus deadlock in the U.S., which leads to the decline in U.S. stock’s future. This, in turn, undermined the perceived risk currency Australian dollar and contributed to the currency pair losses. The acceleration in the coronavirus (COVID-19) wave 2.0 also played a major role in undermining the market trading sentiment, which added further burden around the Australian dollar’s perceived risk currency and dragged the currency pair low. 

The AUD/CAD failed to extend its early-day modest gains and edged lower around the 0.9362 level. However, the bearish sentiment around the currency pair could be associated with the on-going tussle between the US-China and stimulus deadlock in the U.S., which leads to the decline in U.S. stock’s future. This, in turn, undermined the perceived risk currency Australian dollar and contributed to the currency pair losses. The acceleration in the coronavirus (COVID-19) wave 2.0 also played a major role in undermining the market trading sentiment, which added further burden around the Australian dollar’s perceived risk currency and dragged the currency pair low. 

The AUD/CAD failed to extend its early-day modest gains and edged lower around the 0.9362 level. However, the bearish sentiment around the currency pair could be associated with the on-going tussle between the US-China and stimulus deadlock in the U.S., which leads to the decline in U.S. stock’s future. This, in turn, undermined the perceived risk currency Australian dollar and contributed to the currency pair losses. The acceleration in the coronavirus (COVID-19) wave 2.0 also played a major role in undermining the market trading sentiment, which added further burden around the Australian dollar’s perceived risk currency and dragged the currency pair low. 

On the contrary, the weaker crude oil prices, triggered by the combination of factors, tend to weaken the demand for the commodity-linked currency the loonie, which becomes the factor that helps the currency pair to limit its deeper losses. The AUD/CAD currency pair is currently trading at 0.9362 and consolidating in the range between 0.9357 – 0.9386.

Intensifying restrictive measures such as lockdowns and curfews in Europe and the U.K. to control the 2nd-wave of coronavirus outbreak pushed global equity markets down. As per the latest report, the daily new cases increased past Thursday’s record level of 6,638, with 7,334 new infections leading to 348,557 total counts. The death toll seems to ease from the previous day’s 33 to 24 while marking a total of 9,734 fatalities. Apart from this, the U.S. policymakers’ inability to offer the much-awaited COVID-19 stimulus also played its major role in weakening the market trading sentiment, which in turn exerted some additional pressure on the perceived riskier Australian dollar and contributed to the currency pair losses.

Elsewhere, the intensifying tensions between the U.S. and China added additional burdens around the global trading market. The tension between the world’s two largest economies fueled further after China aggressively warns the U.S. to step back from Taiwan Strait. However, these lingering Sino-US tensions kept challenging the risk-on market sentiment and contributed to the currency pair losses.

Access the pond, the reason for the downbeat market trading sentiment could also be associated with the latest report suggesting that the World Health Organization (WHO) said that the previously cheered corona-vaccine from Gilead Sciences Inc., Remdesivir, did not affect COVID-19 patients’ length of hospital stay or chances of survival. These negative headlines exerted some additional pressure on the market sentiment. The S&P 500 Futures dropped as it currently marks 0.15% intraday losses to 3,472.

The reason for the crude oil losses could also be associated with the latest reports suggesting that the Organization of the Petroleum Exporting Countries (OPEC) decided to ease supply cuts despite rapidly falling fuel demand in Europe and the U.S. amid rising numbers of COVID-19 cases in both regions. Thus, the decline in oil prices undermined the demand for the commodity-linked currency the loonie and became the key factor that helps 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 September month’s Retail Sales and Michigan Consumer Confidence for October. Meanwhile, the USD moves and coronavirus headlines will also closely followed as they could play a key role in the crude oil. 


Daily Support and Resistance

S1 0.9242

S2 0.9303

S3 0.9341

Pivot Point 0.9364

R1 0.9402

R2 0.9426

R3 0.9487

Entry Price – Sell 0.93594

Stop Loss – 0.93994

Take Profit – 0.93194

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 Market Analysis

Daily F.X. Analysis, October 16 – Top Trade Setups In Forex – Retail Sales in Focus! 

On the news side, the economic calendar is likely to offer another round of central bankers’ speeches worldwide. BOC Gov Council Member Lane, U.S. FOMC officials, is due to speak today. Simultaneously, the main highlight of the day is likely to be ECB President Lagarde Speaks and Unemployment Claims from the U.S. economy.

On the news side, the economic calendar is likely to offer another round of central bankers’ speeches worldwide. BOC Gov Council Member Lane, U.S. FOMC officials, is due to speak today. Simultaneously, the main highlight of the day is likely to be ECB President Lagarde Speaks and Unemployment Claims from the U.S. economy.

On the news side, the economic calendar is likely to offer another round of central bankers’ speeches worldwide. BOC Gov Council Member Lane, U.S. FOMC officials, is due to speak today. Simultaneously, the main highlight of the day is likely to be ECB President Lagarde Speaks and Unemployment Claims from the U.S. economy.

Economic Events to Watch Today  

 

EUR/USD – Daily Analysis

The EUR/USD pair was closed at 1.17068 after placing a high of 1.17576 and a low of 1.16883. Overall the movement of the EUR/USD pair remained bearish throughout the day. The EUR/USD pair dropped on Thursday to its nine-day lowest level over the strength of the U.S. dollar and rising fears of a second wave of coronavirus in Europe. 

The U.S. dollar was strong across the board on Thursday, with the market ruling out the chance of more fiscal stimulus before the November elections despite the surge in coronavirus cases. Furthermore, the unexpected rise in the Philadelphia Fed Manufacturing Index also helped raise the U.S. dollar across the board on Thursday. At 17:30 GMT, it raised to 32.3 in October against the expectations of 14.4 and supported the U.S. dollar. The advanced index encouraged hopes that the U.S. economy could demonstrate greater resilience in the year’s final months.

This raised the U.S. dollar despite the rise in initial jobless claims and weighed on EUR/USD pair.

Meanwhile, the E.U. Summit started on Thursday. E.U. leaders met in Brussels to seek a way out of the Brexit impasse as the bloc remained divided over-ambitious targets to slash greenhouse gas emissions.

E.U. leaders also agreed to extend the trade negotiations with Britain. In a joint statement, E.U. leaders called on the U.K. to make the necessary moves to make an agreement possible and shift from their red lines to make a Brexit deal possible.

The E.U. chief negotiator Michel Barnier said that he wanted talks to continue with the U.K. till next month. Whereas, the German Chancellor Angela Merkel said that the E.U. should also compromise with the U.K. to reach a final agreement. On the data front, the French Final CPI for September came in line with -0.5% expectations. The data from Europe failed to impact the prices of a single currency.

Moreover, the European Central Bank President Christine Lagarde said on Thursday that ECB would be prepared to inflict additional emergency measures to seize the economic fallout from the coronavirus crisis, with the region facing a rapid surge in coronavirus infections. As per the World Health Organization, Europe has recorded more than 7.4 million coronavirus cases, with more than 251000 deaths and an alarming hospitalization rate. Lagarde said that as the second wave of coronavirus was hitting Europe’s coastline, ECB should make sure all the resources that ECB has available will be used to deal with the situation. She added that many resources, including asset purchases and interest rates, were still available, and ECB was ready to use them in need.

The ECB’s concerns and readiness to use further stimulus in need also weighed on Euro currency and dragged the EUR/USD pair downward.

Daily Technical Levels

Support Resistance

1.1676     1.1748

1.1646     1.1790

1.1605     1.1820

Pivot point: 1.1718

EUR/USD– Trading Tip

The EUR/USD is trading at 1.1706 level, holding above an immediate double bottom support level of 1.1693. The U.S. dollar is likely to show some volatility during the day on the back of high and medium impact economic events from the United States. A stronger dollar may trigger a selling trend until the 1.1656 level, while the resistance can be found around 1.1725 and the 1.1748 levels.

GBP/USD – Daily Analysis

The GBP/USD pair was closed at 1.29037 after placing a high of 1.30299 and a low of 1.28903. Overall the movement of the GBP/USD pair remained bearish throughout the day. The British Pound fell dramatically against the U.S. dollar on Thursday after the E.U. leaders urged U.K. to make necessary moves to secure an agreement instead of committing to work intensively with the U.K. to reach a trade deal. 

After the first day of the E.U. Summit, the chief EU negotiator Michel Barnier said that the level playing field, fisheries, and governance issues remained, as the key sticking points that held up the progress on trade talks. E.U. officials also criticized the U.K. Brexit negotiator David Frost and called on the U.K. to make further concessions to reach a deal on trade. Prime Minister Boris Johnson will announce his decision on whether the U.K. will walk away or continue talks on Friday.

One of many reasons behind the lack of progress in talks was the U.K. facing an aggressive second wave of the coronavirus that has forced the government to impose lockdown restrictions that could slow the recovery.

In Great Britain, talks continued between the government and local leaders over expanding the strictest coronavirus restrictions to more parts of England. The rising number of coronavirus cases in the U.K. raised the need for restrictions that will affect the economic recovery. These recovery fears weighed on local currency and ultimately dragged the GBP/USD pair on the downside.

On the data front, the C.B. Leading Index from the United Kingdom came in as 0.5% for August compared to July’s 0.8% and weighed on GBP that added further pressure on GBP/USD pair. From the U.S. side, the Philly Fed Manufacturing Index rose in October to 32.3 from September’s 15.0, and the forecasted 14.4 supported the U.S. dollar. The strong U.S. dollar added further strength to the rising GBP/USD pair on Thursday.

Meanwhile, the U.S. dollar was also strong onboard after Nancy Pelosi said that Trump only wanted to secure his position. That is why he was forcing a smaller stimulus package ahead of elections. She added that he did not have any concern about the struggling Americans and refused to pass a half stimulus measure. These lingering tensions confusion related to U.S. stimulus measures raised uncertainty and supported the U.S. dollar. The main driver of the GBP/USD pair’s downward momentum on Thursday was E.U. leaders’ calls for the U.K. to make necessary moves to reach consensus on the Brexit deal and the rising number of restrictions in England. 

Daily Technical Levels

Support Resistance

1.2859     1.3000

1.2804     1.3086

1.2718     1.3141

Pivot point: 1.2945

GBP/USD– Trading Tip

The GBP/USD is trading at 1.2890 level, having supported over 1.2890 level. Above this, the next target is likely to be found around 1.2957 and 1.3020 level. Simultaneously, a bearish breakout of the 1.2890 support level can extend selling bias until 1.2840. The bearish bias remains solid below the 1.2890 mark. The cable may exhibit a breakout on the release of U.S. related economic events, especially the retail sales and consumer confidence. The leading indicators, such as MACD and RSI, support selling; therefore, it’s worth taking a selling trade below 1.2880 today. 

USD/JPY – Daily Analysis

The USD/JPY pair was closed at 105.420 after placing a high of 105.491 and a low of 105.060. Overall the movement of the USD/JPY pair remained bullish throughout the day. On Thursday, the U.S. dollar appreciated across the board due to its safe-haven status after the rising concerns about tightened coronavirus restrictions. The rising number of coronavirus infections with little expectations of a fiscal stimulus deal kept the investors away from risk.

On Thursday, the U.S. Treasury Secretary Steven Mnuchin said he was open to a targeted deal with the House Speaker Nancy Pelosi. He said that Pelosi should move 300 billion dollars to needy Americans from the previous fund’s leftovers. In response, she replied that Donald Trump only wanted to seek a symbolic victory and genuinely had no intentions to help the struggling poor people. Pelosi also said that she would not go for a half stimulus measure and stick to her $2.2 trillion packages.

These tensions surrounding the U.S. stimulus package dropped the hopes that any measure will release before elections and supported the U.S. dollar. The rising U.S. dollar help provides further support to the USD/JPY pair.

The Philly Fed Manufacturing Index for October raised to 32.3 from the forecasted 14.4 and the previous 15.0 and supported the U.S. dollar. At 17:30 GMT, the Unemployment Claims from the U.S. for last week raised to 898K from the forecasted 810K and weighed on the U.S. dollar. The Empire State Manufacturing Index from the U.S. dropped to 10.5 from the expected 13.9 and weighed on the U.S. dollar. The Import Prices from September remained flat with the expectations of 0.3%. From the Japan side, the Tertiary Industry Activity for August was released at 09:30 GMT that fell short of expectations of 1.2% and came in as 0.8% and weighed on the Japanese Yen that ultimately supported the additional gains in USD/JPY pair on Thursday.

Traders ignored the rising number of unemployment claims and shifted their focus towards the rising Philly Fed Manufacturing Index and supported the USD/JPY pair’s bullish movement. The advanced index refreshed hopes that the U.S. economy could reveal greater flexibility in the final months of the year.

Furthermore, the Dallas Federal Reserve President Robert Kaplan said that minorities and women who have been affected by the job losses due to the coronavirus pandemic would need help to get back to work. Kaplan said that the economic activities were shifting more towards the less dependent sectors on face-to-face interaction due to the fears of coronavirus spread. Whereas, the Fed’s vice chair of supervision, Randal Quarles, said a need for more aid in the short-term funding market.

The rising number of coronavirus in the absence of any approved vaccine has raised fears for an economic recovery that has already been under pressure due to ongoing geopolitical tensions, the trade war between the U.S. & China, and the deep recession. These uncertainties kept the U.S. dollar supportive due to its safe-haven status and helped the USD/JPY pair post gains on Thursday.

Daily Technical Levels

105.05     105.70

104.82     106.12

104.40     106.36

Pivot point: 105.47

USD/JPY – Trading Tips

The USD/JPY traded sideway, with a neutral bias within a narrow trading range of 105.600 level to the 105.250 mark. Most of the selling triggered following the USD/JPY disrupted an upward channel at the 105.900 mark on Monday. The USD/JPY is trading at 105.459 marks, the support that’s was prolonged by double bottom mark on the two-hourly charts. A bearish violation of the 105.450 mark may encourage additional selling unto the 105.070 support level as the MACD, and the 50 periods EMA are in support of selling sentiment today. Let’s consider opening sell trade beneath 105.60 and buying over 105.050 level today. Good luck!  

Categories
Forex Signals

AUD/USD Breaks Below Upward Channel – Braceof Sell Upon Retracement! 

During Thursday’s early European trading hours, the AUD/USD currency pair failed to stop its previous session bearish moves and took further offers near well below 0.7100 level, mainly due to the disappointing release of employment details, which showed that Australia’s economy lost 29.5K jobs in September. This, in turn, undermined the Asutliann dollar and contributed to the currency pair declines. Apart from this, the increasing probabilities of an interest rate cut by the Reserve Bank of Australia in November also played its major role in undermining the Australian dollar. Across the pond, the prevalent risk-off market sentiment, triggered by the worsening coronavirus (COVID-19) conditions in Europe and the U.K., exerted some additional pressure on the perceived riskier Aussie and dragged the currency pair below 0.7100 mars.

During Thursday’s early European trading hours, the AUD/USD currency pair failed to stop its previous session bearish moves and took further offers near well below 0.7100 level, mainly due to the disappointing release of employment details, which showed that Australia’s economy lost 29.5K jobs in September. This, in turn, undermined the Asutliann dollar and contributed to the currency pair declines. Apart from this, the increasing probabilities of an interest rate cut by the Reserve Bank of Australia in November also played its major role in undermining the Australian dollar. Across the pond, the prevalent risk-off market sentiment, triggered by the worsening coronavirus (COVID-19) conditions in Europe and the U.K., exerted some additional pressure on the perceived riskier Aussie and dragged the currency pair below 0.7100 mars.

During Thursday’s early European trading hours, the AUD/USD currency pair failed to stop its previous session bearish moves and took further offers near well below 0.7100 level, mainly due to the disappointing release of employment details, which showed that Australia’s economy lost 29.5K jobs in September. This, in turn, undermined the Asutliann dollar and contributed to the currency pair declines. Apart from this, the increasing probabilities of an interest rate cut by the Reserve Bank of Australia in November also played its major role in undermining the Australian dollar. Across the pond, the prevalent risk-off market sentiment, triggered by the worsening coronavirus (COVID-19) conditions in Europe and the U.K., exerted some additional pressure on the perceived riskier Aussie and dragged the currency pair below 0.7100 mars.

However, the global risk sentiment was further pressured by the fading hopes of additional U.S. fiscal stimulus. On the data front, the economy has lost 29.5K jobs in September against expectations for 35K losses and down from August’s 111K additions. The seasonally adjusted Unemployment Rate surged to 6.9% against expectations for a rise to 7.1% from 6.8%. In the meantime, the part-time jobs dropped by 9.4K in September against 74.8K additions in August. At the same time, the full-time employment sank by 20.1K against 36.2K additions in August. 

Considering the recent condition of the economy, the RBA’s Governor Lowe said that the benchmark interest rate could be cut down to 0.10% from the current record low of 0.25%, which undermined the Australian dollar exerted some additional pressure on the currency pair. The market trading sentiment remains depressed during the early European session as the condition of the second wave of coronavirus infections in Europe and the U.K. getting worse time by time, which suggests that the local lockdowns cannot tame the pandemic, which in turn suggests fresh national activity restrictions. 

In the meantime, the fears of a no-deal Brexit and the dovish tone of major central bankers pushing for further fiscal help also exert downside pressure on the market trading sentiment, which in turn undermined perceived riskier Aussie and dragged the currency pair below 0.7100 marks.

Additionally, the long-lasting inability to pass the U.S. fiscal package also weighed on the risk sentiment, which eventually undermined the perceived riskier Australian dollar and contributed to the currency pair gains. Despite U.S. President Donald Trump’s recent push to break the coronavirus stimulus deadlock, the opposition Democratic Party remains up in its demands. As per the latest report, the U.S. Treasury Secretary Mnuchin recently blamed the opposition to put obstacles for the much-awaited aid package before the presidential election to keep President Donald Trump lagging the election polls. 

At the US-China front, the renewed concerns over worsening diplomatic tensions between the world’s two largest economies also exerted downside pressure on the market trading, which keeps the AUD/USD currency pair under pressure. Other than the US-China tussle, Australia and China are also loggerheads with each other.

As a result, the broad-based U.S. dollar succeeded in extending its Asian session loss gains es and took some further bid during the early European session as investors still 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 intensifying political uncertainty ahead of the upcoming U.S. presidential election on November 3. However, the incoming polls tend to recommend a clear-cut presidential success for the Democrat nominee Joe Biden, which might cap additional upside momentum for the U.S. dollar. However, the U.S. dollar gains become the key factor that kept the currency pair under pressure. At the same time, the U.S. Dollar Index that tracks the greenback against a bucket of other currencies inched up 0.02% to 93.398 by 9:58 PM ET (1:58 AM GMT).

Looking forward, the traders will keep their eyes on the weekly U.S. Initial Jobless Claims, which is expected 825K versus 840K prior. Apart from this, the continuous drama surrounding the US-China relations and updates about the U.S. stimulus package will not lose their importance. 


Daily Support and Resistance

S1 0.7095

S2 0.7133

S3 0.715

Pivot Point 0.717

R1 0.7187

R2 0.7208

R3 0.7245

The AUD/USD pair has violated the double bottom support level of 0.7150 level, and below this, the pair may drop further until the next support area of 0.7098 level. On the higher side, the pair may find resistance at 0.7150 and 0.7190 level. The bearish bias remains solid today, especially below 0.7150.

Entry Price – Buy 105.245

Stop Loss – 105.645

Take Profit – 104.845

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/JPY Under Pressure – Downward Channel Weights! 

The USD/JPY pair was closed at 105.161 after placing a high of 105.514 and a low of 105.034. Overall the movement of the USD/JPY pair remained bearish throughout the day. The rising uncertainties in the market related to US stimulus, vaccine development, global economic recovery, and the US November presidential elections gave a push to safe-haven appeal that supported safe-haven Japanese Yen and weighed on USD/JPY pair.

The USD/JPY pair was closed at 105.161 after placing a high of 105.514 and a low of 105.034. Overall the movement of the USD/JPY pair remained bearish throughout the day. The rising uncertainties in the market related to US stimulus, vaccine development, global economic recovery, and the US November presidential elections gave a push to safe-haven appeal that supported safe-haven Japanese Yen and weighed on USD/JPY pair.

The USD/JPY pair was closed at 105.161 after placing a high of 105.514 and a low of 105.034. Overall the movement of the USD/JPY pair remained bearish throughout the day. The rising uncertainties in the market related to US stimulus, vaccine development, global economic recovery, and the US November presidential elections gave a push to safe-haven appeal that supported safe-haven Japanese Yen and weighed on USD/JPY pair.

The currency pair dropped on Wednesday to one week’s lowest level as the hopes for the next round of US stimulus package before elections fell after Nancy Pelosi said that the newly proposed package of $1.8 trillion by President Trump would be not sufficient to provide support to economic recovery from the pandemic and deep recession.

Another reason behind the faded risk sentiment was the latest news about the vaccine trials from different candidates. Earlier this week, Johnson & Johnson halted their coronavirus vaccine’s clinical trials due to an unexpected illness in one of the participants. And on Wednesday, the Eli Lilly and Co. also stopped its vaccine’s trials for coronavirus, and this raised concerns that without a vaccine, the economic recovery will be slow. These concerns added in demand for safe-haven and raised the Japanese Yen that ultimately weighed on the USD/JPY pair.

On the data front, the Revised Industrial Production from Japan for August dropped to 1.0% from the forecasted 1.7% and weighed on the Japanese Yen. The PPI and the Core PPI data from the United States for September raised to 0.4% from 0.2% of forecasts and supported the US dollar. Macroeconomic data from both sides supported the USD/JPY pair but failed to reverse the direction as the investors were focusing on the rising number of uncertainties in the market.

Meanwhile, the 2020 World Bank Group-IMF Annual Meetings started on October 12th to 18th, in which global finance leaders warned that the fragile recovery would be crushed by the failure to stop the spread of coronavirus, maintain stimulus, and rising debts in developing nations.

Global poverty has been raised to the highest levels for the first time in 2 decades due to the coronavirus crisis. Developing nations had been hit hard by the pandemic as the debts for recovering through the crisis rose in developing nations to alarming levels. The annual meetings’ agenda was to take necessary actions to build a strong foundation for a strong recovery that would help all countries.

The US Treasury Secretary Steven Mnuchin urged both global institutions IMF and World Bank on Wednesday to work thoughtfully within their existing resources to battle the coronavirus pandemic. Mnuchin also urged G20 nations to approve a proposed debt restructuring framework.

The rising hopes that developing nations will be getting help to recover from the pandemic also raised the market’s risk sentiment that limited additional losses in USD/JPY prices on Wednesday.

Furthermore, on Wednesday, the Federal Reserve Vice Chair Richard Clarida said that the US economic data has been shockingly strong since May, but the output will still take another year to climb back to its pre-pandemic level. Clarida’s comments raised uncertainty over recovery and supported the Japanese Yen that weighed on the USD/JPY pair.


Daily Support and Resistance

S1 104.26

S2 104.74

S3 104.93

Pivot Point 105.22

R1 105.41

R2 105.7

R3 106.18

The USDJPY pair is trading with a selling bias below an immediate resistance level of 105.349 level. On the 4 hour timeframe, the USD/JPY has formed a downward channel that’s extending resistance at 105.349. Closing of candles beneath this level is likely to keep the USD/JPY pair in a selling mode until the 105.050 mark, conversely, the bullish breakout of the 105.349 level may lead the pair further higher towards the 105.580 level. 

Entry Price – Buy 105.245

Stop Loss – 105.645

Take Profit – 104.845

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 Market Analysis

Daily F.X. Analysis, October 15 – Top Trade Setups In Forex – ECB President Lagarde Speaks

On the news side, the economic calendar is likely to offer another round of central bankers’ speeches worldwide. BOC Gov Council Member Lane, U.S. FOMC officials, is due to speak today. Simultaneously, the main highlight of the day is likely to be ECB President Lagarde Speaks and Unemployment Claims from the U.S. economy.

On the news side, the economic calendar is likely to offer another round of central bankers’ speeches worldwide. BOC Gov Council Member Lane, U.S. FOMC officials, is due to speak today. Simultaneously, the main highlight of the day is likely to be ECB President Lagarde Speaks and Unemployment Claims from the U.S. economy.

On the news side, the economic calendar is likely to offer another round of central bankers’ speeches worldwide. BOC Gov Council Member Lane, U.S. FOMC officials, is due to speak today. Simultaneously, the main highlight of the day is likely to be ECB President Lagarde Speaks and Unemployment Claims from the U.S. economy.

Economic Events to Watch Today  

 

EUR/USD – Daily Analysis

The EUR/USD pair was closed at 1.17459 after placing a high of 1.17708 and a low of 1.17197. Overall the movement of the EUR/USD pair remained flat yet slightly bullish throughout the day. The EUR/USD pair followed its previous day’s bearish trend and extended its decline in the first half of the day but started to recover losses in the second half of the day as the U.S. dollar became weak. However, the gains were also limited due to the increased uncertainty in the market related to Europe’s coronavirus situation.

The risk sentiment in the market supported the consolidated movement of the EUR/USD pair on Wednesday and turned the prices on the upside after the European Union agreed to pay more than 1 billion euros, about 1.2 billion dollars to Gilead GILD.O. The amount will be paid for a six-month supply of its antiviral drug Remdesivir shortly before the publication of the coronavirus medication’s biggest trial. This news helped EUR/USD pair to recover some losses of the day on Wednesday.

Other than that, the U.S. dollar was weak across the board on Wednesday after the Federal Reserve Vice Chairman Richard Clarida said that the U.S. economic data since May has been surprisingly strong; however, it will still take another year for output to reach back to its pre-pandemic level. 

The rising uncertainty about the economic recovery weighed on risk sentiment and dragged the EUR/USD prices on Wednesday to the downward direction.

On the data front, at 14:00 GMT, the Industrial Production from Eurozone dropped to 0.7% from the expected 0.8% and weighed on the Euro currency. At 17:30 GMT, the Core PPI & PPI data from the U.S. for September raised to 0.4% from the projected 0.2% and supported the U.S. dollar. The macroeconomic data from both sides weighed on EUR/USD pair and kept the pair under pressure on Wednesday.

On October 14, the European Central Bank President Christine Lagarde said that European countries would need to invest 290 billion euros each year to meet their commitments under the 2015 Paris climate agreement. 

The little gains in EUR/USD could also be attributed to the latest Brexit optimism that emerged after U.K. Prime Minister Boris Johnson suggested that the U.K. continue to work on Brexit deal past the October 15 deadline. This raised hopes that no-deal will be out of option soon and raised EUR/USD pair on Wednesday.

Furthermore, the downward pressure on the EUR/USD pair was due to the latest moves from Eli Lilly and Co. to halt the government-sponsored clinical trials of its coronavirus vaccine. This move after a day when Jonson & Johnson halted its vaccine’s clinical trials due to an unexpected illness found in one participant raised economic recovery concerns and weighed on the riskier EUR/USD pair.

Daily Technical Levels

Support Resistance

1.1720     1.1773

1.1694     1.1798

1.1668     1.1825

Pivot point: 1.1746

EUR/USD– Trading Tip

The EUR/USD pair traded sharply bearish to break below a solid support area of 1.1780 extended by an upward channel. On the lower side, the EUR/USD is gaining support at the 1.1732 level, and the bearish breakout of the 1.1732 level may lower the EUR/USD price further than the 1.1697 level. The MACD and RSI favor selling bias, but we may see a slight upward movement until the 1.1764 level before seeing further selling in the pair.

GBP/USD – Daily Analysis

The GBP/USD closed at 1.30113 after placing a high of 1.30642 and a low of 1.28627. Overall the movement of the GBP/USD pair remained bullish throughout the day. The currency pair GBP/USD raised on Wednesday amid the renewed hopes of a Brexit deal and the U.S. dollar weakness. On Wednesday, the U.S. dollar was weak as the U.S. Treasury Secretary Steven Mnuchin said that the U.S. stimulus package would not be delivered before November Presidential elections. The hopes for stimulus measure faded away and weighed on the U.S. dollar, ultimately helping the GBP/USD pair’s upward momentum.

Meanwhile, the upward trend in GBP/USD pair was also supported by the latest extension to the reach a Brexit deal by PM Boris Johnson. The U.K. government allowed Brexit talks to extend beyond the former deadline of October 15, announced by the PM Boris Johnson.

The extension raised renewed hopes to reach a Brexit deal and supported the local currency that favored the additional gains in GBP/USD pair.

However, the gains were limited by the rise of coronavirus cases in the United Kingdom, as it reported almost 20,000 new coronavirus cases on Wednesday. PM Boris Johnson said on the issue of coronavirus spread that the latest three-tier regional approach was productive in controlling the spread as the aim was to avoid the nationwide lockdown.

Moreover, the Brexit headlines overshadowed the coronavirus threats, and the pair kept moving in the upward direction on Wednesday. The main operator of the GBP/USD pair on Wednesday was the optimism about the Brexit deal in the market. On the flip side, the Bank of England chief Andy Haldane said that he was hopeful that Britain’s economic recovery from coronavirus’s initial impact would persist despite the risks. He said it because of the adaptability of businesses and households in the region.

He said that the consumption patterns and work practices of Britain’s had been changed since March lockdowns. This positive comment also raised the British Pound bars that helped the GBP/USD pair’s upward movement. The Core PPI for September and the PPI data rose to 0.4% from the forecasted 0.2% and capped further gains in GBP/USD pair from the U.S. side.

However, the comments from Federal Reserve member Clarida that it will take another year for economic output to reach its pre-pandemic level weighed on the U.S. dollar that helped additional gains in GBP/USD pair on Wednesday.

Daily Technical Levels

Support Resistance

1.2894     1.3098

1.2777     1.3183

1.2691     1.3301

Pivot point: 1.2980

GBP/USD– Trading Tip

The GBP/USD is trading at 1.3020 level, having supported over 1.3005 level. Above this, the next target is likely to be found around 1.3050 and 1.3070 level. At the same time, a bearish breakout of the 1.3005 support level can extend selling bias until 1.2959. The bullish bias remains strong over 1.3005. The leading indicators, such as MACD and RSI, support selling; therefore, it’s worth taking a selling trade below 1.2944 today. 

USD/JPY – Daily Analysis

The USD/JPY currency pair successfully stopped its previous day losing streak and took some fresh bids near two-week highs, around the 105.30 regions in the last hour. However, the reason for the pair’s prevalent bullish bias could be attributed to the stronger U.S. dollar. Hence, the U.S. dollar remained supportive on the back of fading hopes over additional U.S. fiscal stimulus measures and surging COVID-19 cases in the leading European countries, which keeps the market trading sentiment under pressure and increase demand for traditional safe-haven assets. Apart from this, the latest halts in the COVID-19 vaccine trials are also weighing on the market risk tone. On the contrary, the prevalent risk-off market sentiment underpinned demand for traditional safe-haven assets, including the Japanese yen, which could be considered one of the key factors that kept the lid on any additional gains currency pair. At this particular time, the USD/JPY is currently trading at 105.25 and consolidating in the range between 105.10 – 105.30.

However, the market risk sentiment extended the previous two-day slumps to 3,478, down 0.08% intraday on the day. The market trading sentiment was being pressured by the fears of no U.S. stimulus ahead of the U.S. presidential election. Moreover, the S&P 500 Futures’ losses were further bolstered by the intensifying coronavirus (COVID-19) conditions in Europe amid pauses in the (COVID-19) virus vaccine trials. In the meantime, the on-going Brexit woes and downbeat U.S. inflation also exerted downside pressure on the market trading sentiment, which underpinned the demand for traditional safe-haven assets, including the U.S. dollar and Japanese yen.

As per the latest report, the U.S. Treasury Secretary Steve Mnuchin blamed the opposition Democratic Party to stop the stimulus package from keeping President Donald Trump lagging the election polls. Across the pond, the rising COVID-19 cases in notable European countries, such as Spain, France, Germany, and the U.K., orders for strict local lockdowns in recent days. Whereas, Johnson and Johnson’s pause in vaccine trials and Eli Lily also dragged the market sentiment down.

Moreover, the market risk-off sentiment was further bolstered by the reports suggesting that no deal was signed between the European Union (E.U.) and the U.K. Furthermore, the intensifying tussle between the U.S. and China also exerted downside pressure on the market. This, in turn, underpinned the safe-haven Japanese yen, which becomes the key factor that kept the lid on any additional gains in the currency pair.

The broad-based U.S. dollar managed to keep its gains throughout the Asian session as the traders still cheering the risk-off marker mood. However, the U.S. dollar gains seem rather unaffected by the intensifying political uncertainty ahead of the upcoming U.S. presidential election on November 3. However, the incoming polls suggest a clear-cut presidential victory for the Democrat candidate Joe Biden, which might cap further upside momentum for the U.S. dollar. However, the U.S. dollar gains become the key factor that helps the currency pair to stay bid. Simultaneously, the U.S. Dollar Index that tracks the greenback against a bucket of other currencies inched up 0.02% to 93.398 by 9:58 PM ET (1:58 AM GMT).

Looking forward, the traders will keep their eyes on the weekly U.S. Initial Jobless Claims, which is expected 825K versus 840K prior. Apart from this, the continuous drama surrounding the US-China relations and updates about the U.S. stimulus package will not lose their importance. 

Daily Technical Levels

105.05 105.70

104.82 106.12

104.40 106.36

Pivot point: 105.47

USD/JPY – Trading Tips

The USD/JPY traded sideway, with a neutral bias within a narrow trading range of 105.600 level to the 105.250 mark. Most of the selling triggered following the USD/JPY disrupted an upward channel at the 105.900 mark on Monday. The USD/JPY is trading at 105.459 marks, the support that’s was prolonged by double bottom mark on the two-hourly charts. A bearish violation of the 105.450 mark may encourage additional selling unto the 105.070 support level as the MACD, and the 50 periods EMA are in support of selling sentiment today. Let’s consider opening sell trade beneath 105.60 and buying over 105.050 level today. Good luck!  

Categories
Forex Signals

GBP/USD Breaking Below 1.3000 Support – Is It Worth Selling? 

In the European trading session, the GBP/USD currency pair managed to stoop its previous session declining streak and refresh the intra-day high around mid-1.2900 level mainly due to easing fears of a no-deal Brexit, which initially underpinned the Pound and contributed to the currency pair gains. This was witnessed after the latest reports suggesting that the European Union leaders will be meeting in Brussels on Thursday and Friday to discuss Brexit and label progress in talks with the U.K. 

In the European trading session, the GBP/USD currency pair managed to stoop its previous session declining streak and refresh the intra-day high around mid-1.2900 level mainly due to easing fears of a no-deal Brexit, which initially underpinned the Pound and contributed to the currency pair gains. This was witnessed after the latest reports suggesting that the European Union leaders will be meeting in Brussels on Thursday and Friday to discuss Brexit and label progress in talks with the U.K. 

In the European trading session, the GBP/USD currency pair managed to stoop its previous session declining streak and refresh the intra-day high around mid-1.2900 level mainly due to easing fears of a no-deal Brexit, which initially underpinned the Pound and contributed to the currency pair gains. This was witnessed after the latest reports suggesting that the European Union leaders will be meeting in Brussels on Thursday and Friday to discuss Brexit and label progress in talks with the U.K. 

On the other hand, the broad-based U.S. dollar fresh weakness, backed by the U.S. economic recovery worries, also played a major role in supporting the currency pair. Moreover, the U.S. dollar losses were further bolstered after the Bank of America Corp (N: BAC) reported a 15.8% drop in quarterly profit, which instantly raised extra doubts about the U.S. economic recovery pushed the U.S. dollar down. At a particular time, the GBP/USD currency pair is currently trading at 1.2978 and consolidating in the range between 1.2864 – 1.2980.

As we already mentioned, the GBP/USD currency pair witnessed strong progress over the last hours, in the wake of the latest Brexit headlines ahead of the critical meeting between the UK PM Boris Johnson and the E.U. Commission President Ursula von der Leyen later on Wednesday. As per the latest report, the 27 national leaders will tell their negotiators to extend conversations with the U.K. to reach an agreement from January 1, 2021. They will also decide to step up contingency preparations for an abrupt economic split without a deal to avoid tariffs or quotas. These positive headlines instantly underpinned the British Pound and pushed the currency pair higher. 

Across the pond, the Bank of U.S. reported a 15.8% drop in quarterly profit on the day, hit by higher provisions for credit losses due to the COVID-19 pandemic, which in turn, adds burden around the broad-based U.S. dollar. Detail suggested, “Net income applicable to common shareholders dropped to $4.44 billion, or 51 cents per share, in the 3rd-quarter ended September 30, from $5.27 billion, or 56 cents per share, a year earlier.

Despite the risk-off market sentiment, the broad-based U.S. dollar failed to extend its long-day bullish rally and edged lower during the European session amid Bank of America profit falls on pandemic woes. On the other hand, the concerns about the ever-increasing number of coronavirus cases and weakness in the U.S. Consumer Price Index (CPI) also weighed on the broad-based U.S. dollar. However, the losses in the U.S. dollar kept the currency pair higher. Whereas the U.S. Dollar Index that tracks the greenback against a basket of other currencies down to 93.493.

On the contrary, the COVID-19 cases in the U.K. continue to pick up the pace as the U.K. reported the highest new cases since June on the previous day, with 143 deaths and 17,234 new confirmed cases. As in result, the opposition Labour Party ordered the national lockdown for at least two weeks. While considering the previous day’s downbeat employment data, the ruling Conservatives imposed local lockdowns. Hence, the renewed coronavirus worries became the key factor that kept the lid on any additional currency pair gains.


Daily Support and Resistance

S1 1.2683

S2 1.2829

S3 1.2883

Pivot Point 1.2976

R1 1.3029

R2 1.3122

R3 1.3268

Entry Price – Buy 1.29966

Stop Loss – 1.30366

Take Profit – 1.29566

Risk to Reward – 1:1

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

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

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

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

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

Categories
Forex Signals

USD/CHF Failed to Extend Previous Session Gains – Downward Channel In Play

Today in the European trading session, the USD/CHF currency pair stopped its previous session bullish momentum. They edged lower below the 0.9150 level, mainly due to the risk-off market sentiment, triggered by lack of additional U.S. fiscal stimulus and the US-China tussle, which eventually underpinned the safe-haven Swiss franc and kept the currency pair under pressure. Moreover, the market trading sentiment was further pressured by the downbeat reports that Johnson & Johnson paused the coronavirus vaccine trails, which also burdened the currency pair. 

Today in the European trading session, the USD/CHF currency pair stopped its previous session bullish momentum. They edged lower below the 0.9150 level, mainly due to the risk-off market sentiment, triggered by lack of additional U.S. fiscal stimulus and the US-China tussle, which eventually underpinned the safe-haven Swiss franc and kept the currency pair under pressure. Moreover, the market trading sentiment was further pressured by the downbeat reports that Johnson & Johnson paused the coronavirus vaccine trails, which also burdened the currency pair. 

Today in the European trading session, the USD/CHF currency pair stopped its previous session bullish momentum. They edged lower below the 0.9150 level, mainly due to the risk-off market sentiment, triggered by lack of additional U.S. fiscal stimulus and the US-China tussle, which eventually underpinned the safe-haven Swiss franc and kept the currency pair under pressure. Moreover, the market trading sentiment was further pressured by the downbeat reports that Johnson & Johnson paused the coronavirus vaccine trails, which also burdened the currency pair. 

Across the pond, the bearish tone around the currency pair could also be associated with the fears of national lockdowns in Europe, which add further burden to the trading sentiment and dragged the currency lower. On the contrary, the broad-based U.S. dollar strength, backed by the market risk-on tone, becomes the key factor that kept the lid on any additional losses in the pair.

However, the equity market has been flashing red since the day started. Although, the reason could be associated with the major negative catalysts, including the further delay in the much-awaited coronavirus (COVID-19) relief package and the resurgence of COVID-19 new cases in the U.S. and Europe, which keep fueling the worries over the global economic growth. Apart from this, the fears of the U.K. and the European Union’s (E.U.) Brexit talks and the latest pause in the COVID-19 vaccine trials also add pessimism around the market trading sentiment. This, in turn, provided a boost to the safe-haven Swiss Fran and exerted some additional pressure on the currency pair.

As in result, the broad-based U.S. dollar managed to keep its gains throughout the Asian session as the traders still cheering the risk-off marker mood. However, the U.S. dollar gains seem relatively unaffected by the intensifying U.S. political uncertainty. However, the incoming polls suggest a clear-cut presidential victory for the Democrat candidate Joe Biden, which might cap further upside momentum for the U.S. dollar. However, the U.S. dollar gains become the key factor that helps the currency pair limit its more profound losses. Simultaneously, the U.S. Dollar Index that tracks the greenback against a bucket of other currencies rose by 0.01% to 93.550 by 10:12 PM ET (2:12 AM GMT).

Looking forward, the traders will keep their eyes on the release of the US PPI figures for September. Meanwhile, FOMC members and the RBNZ policymaker’s scheduled speeches will key to watch for some meaningful trading direction. Apart from this, 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 0.9006

S2 0.9069

S3 0.9109

Pivot Point 0.9132

R1 0.9172

R2 0.9195

R3 0.9258


The USD/CHF is trading with a bearish bias at 0.9125, holding below an immediate resistance level of 0.9157 resistance area. Closing of candles below this level may drive selling bias until the 0.9086 level. On the two-hourly timeframes, the USD/CHF pair has formed a downward channel that is likely to drive selling bias, and that’s one reason we opened a selling signal in the USD/CHF pair. Here’s a trading plan… 

Entry Price – Sell 0.91392

Stop Loss – 0.91792

Take Profit – 0.90992

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

Bearish Bias Dominates EUR/JPY – Downward Channel In Play! 

Today in the early European trading session, the EUR/JPY currency pair failed to stop its previous session losing streak and picked up further offers around below the 124.00 marks. However, the bearish sentiment around the currency pair could be attributed to the prevalent market risk-off sentiment, which benefitted the safe-haven Japanese yen and exerted some heavy pressure on the currency pair. Thus, the market trading sentiment was being pressured by the US policymakers’ failures to offer the much-awaited fiscal stimulus as well as the intensification of the Sino-American tussle also weighed on the market trading tone. 

Today in the early European trading session, the EUR/JPY currency pair failed to stop its previous session losing streak and picked up further offers around below the 124.00 marks. However, the bearish sentiment around the currency pair could be attributed to the prevalent market risk-off sentiment, which benefitted the safe-haven Japanese yen and exerted some heavy pressure on the currency pair. Thus, the market trading sentiment was being pressured by the US policymakers’ failures to offer the much-awaited fiscal stimulus as well as the intensification of the Sino-American tussle also weighed on the market trading tone. 

Today in the early European trading session, the EUR/JPY currency pair failed to stop its previous session losing streak and picked up further offers around below the 124.00 marks. However, the bearish sentiment around the currency pair could be attributed to the prevalent market risk-off sentiment, which benefitted the safe-haven Japanese yen and exerted some heavy pressure on the currency pair. Thus, the market trading sentiment was being pressured by the US policymakers’ failures to offer the much-awaited fiscal stimulus as well as the intensification of the Sino-American tussle also weighed on the market trading tone. 

Whereas, the renewed halt in the trials of a vaccine for the highly contagious coronavirus diseases also played its major role in weakening the market risk mood, which in turn, adds further burden around the currency pair. Across the pond, the latest data from Germany’s Robert Koch Institute (RKI) fueled the market’s fears of a larger coronavirus (COVID-19) in Europe, which tends to undermine the shared currency and contributing to the currency pair losses. 

On the contrary, the positive remarks from the German Economy Ministry over the EUR economy become the key factor that helps the currency pair to limit its deeper losses. At this particular time, the EUR/JPY currency pair is currently trading at 123.76 and consolidating in the range between 123.64 – 123.97.

As we already mentioned that the market trading sentiment has been flashing mixed signals since the day started. Be it the failure of the American lawmakers to offer any positive announcement on the coronavirus (COVID-19) relief package or the fresh escalation in the Sino-American tussle, not to forget the downbeat US data, these all factors kept the market risk sentiment under pressure. This, in turn, benefitted the safe-haven Japanese yen and exerted some heavy pressure on the currency pair.

Most of the investors remain cautious on the back of the delay in the production of a vaccine for the highly contagious coronavirus diseases. This was witnessed after the Johnson & Johnson suspended clinical trials for its COVID-19 vaccine due to an unexplained illness. 

Moreover, the market trading sentiment was further bolstered by the rising coronavirus cases in the US and Europe, which has been fueling worries about global economic recovery. According to the coronavirus (COVID-19) data from Johns Hopkins University data., the number of global cases crossed 38 million as of Oct. 14. Whereas, the U.S. still not showing any signs of decreasing infection rates, which raised concerns over the economic recovery. 

Across the pond, the shared currency was being pressured by the latest data from Germany’s Robert Koch Institute (RKI), which fueled the market’s fears of a larger coronavirus (COVID-19) in Europe. As per the latest report, the daily new confirmed cases grew 5,132 to 334,585 in Europe while the death toll also rose by 40, taking the total to 9,677. 

On the contrary, the latest positive remarks from the German Economy Ministry over the EUR economy become the key factor that helps the currency pair to limit its deeper losses. As per the keywords, “the economy is expected to show by far the highest quarterly growth rate ever recorded in Q3, though indicators signal a slowed continuation of the recovery process in Q4.” He further added ” COVID-19 effects on the labor market are still significant, slight improvement is already apparent.

The US Michigan Consumer Sentiment Index for September, which is expected 75 versus 74.1 prior, will likely help resolve near-term USD moves. Furthermore, the risk catalyst like geopolitics and the virus woes, not to forget the Brexit, will also be key to watch for the fresh direction.


Daily Support and Resistance

S1 122.75

S2 123.4

S3 123.65

Pivot Point 124.05

R1 124.3

R2 124.71

R3 125.36

The EUR/JPY has already violated the double bottom support level of 123.922 level and closing of candle below this area is likely to drive selling trend until next support area of 123.350 level. On the further lower side, the EUR/JPY may find the next support at 123.270. 

Entry Price – Sell 123.81

Stop Loss – 124.21

Take Profit – 123.41

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/NZD Failed To Gain Any Positive Traction – Quick Update on Signal! 

The AUD/NZD currency pair failed to extend its early-day winning streak and remain flat around 1.0753/70 region, mainly due to the risk-off market sentiment, which eventually undermined the perceived risk currency Australian dollar and contributed to the currency pair declines. However, the market trading sentiment was being pressured by the intensification of the Sino-American tussle, and the uncertainty over the American stimulus package also weighed on the market trading tone. 

The AUD/NZD currency pair failed to extend its early-day winning streak and remain flat around 1.0753/70 region, mainly due to the risk-off market sentiment, which eventually undermined the perceived risk currency Australian dollar and contributed to the currency pair declines. However, the market trading sentiment was being pressured by the intensification of the Sino-American tussle, and the uncertainty over the American stimulus package also weighed on the market trading tone. 

The AUD/NZD currency pair failed to extend its early-day winning streak and remain flat around 1.0753/70 region, mainly due to the risk-off market sentiment, which eventually undermined the perceived risk currency Australian dollar and contributed to the currency pair declines. However, the market trading sentiment was being pressured by the intensification of the Sino-American tussle, and the uncertainty over the American stimulus package also weighed on the market trading tone. 

Meanwhile, the downbeat reports that Johnson & Johnson paused the coronavirus vaccine trails also played its major role in weakening the market risk mood, which adds further burden around the currency pair. Across the pond, the bearish tone around the currency pair could also be associated with the fresh reports suggesting that Australia becomes the largest customer of New Zealand, which eventually underpinned the NZD currency and contributes to the currency pair losses. 

In the meantime, the election expectations in New Zealand also favored the NZD bulls as the current Prime Minister (PM) Jacinda Ardern is a market favorite due to her ability to safeguard, which keeps the NZD currency supportive and dragged the currency pair down. At the moment, the AUD/NZD currency pair is currently trading at 1.0771 and consolidating in the range between 1.0753 – 1.0775.

However, the market risk tone has been sluggish since the day started due to various factors. Be it the U.S. lawmakers’ failure to offer any positive announcement on the coronavirus (COVID-19) relief package or the fresh escalation in the Sino-American tussle, not to forget the delay in the COVID-19 vaccine, these all factors have been weighing on the market risk tone. This, in turn, underpinned the perceived risk currency Australian dollar and contributed to the currency pair declines. 

As per the latest report, the Eli Lilly and Co. (NYSE: LLY) paused the government-led clinical trial of its COVID-19 antibody treatment a day after Johnson & Johnson (NYSE: JNJ) delayed clinical trials for its COVID-19 vaccine due to an unexplained illness in a participant. This, in turn, increased the safe-haven demand in the market. Thus, the downbeat market mood exerted some additional pressure on the perceived riskier Australian dollar.

Moreover, the market trading sentiment was further bolstered by the rising coronavirus cases in the U.S. and Europe, fueling worries about global economic recovery. According to the coronavirus (COVID-19) data from Johns Hopkins University data., the number of global cases crossed 38 million as of October 14. Whereas the U.S. still not showing any signs of decreasing infection rates, which raised concerns over the economic recovery. At the Europe front, the daily new confirmed cases grew 5,132 to 334,585 in Europe while the death toll also rose by 40, taking the total to 9,677. There were additional 4,122 cases the previous day with 13 death, as per the latest data.

Besides, the currency pair’s losses were further bolstered by the prevalent concerns about a row with China over coal imports, which also weighed on the market sentiment and undermined the Australian currency. The 2-major factors have been dominating the AUD currency. Firstly, China appears to have verbally enacted a ban on Australian coal imports. At the same time, China’s Balance of Trade dropped to $37.0 billion in September, which undermined the AUD currency and dragged the currency pair down.

Across the ocean, the bearish tone around the currency pair could also be associated with the fresh reports suggesting that Australia becomes the largest customer of New Zealand, which eventually underpinned the NZD currency and contributes to the currency pair losses. Furthermore, New Zealand is ready for a general election on October 17, which is seen as a positive for the NZD currency as the current Prime Minister (PM) Jacinda Ardern is a market favorite due to her abilities, which in turn, strengthed the kiwi dollar and contributed to the currency pair losses.

Looking forward, the traders will keep their eyes on the release of the US PPI figures for September. Meanwhile, FOMC members and the RBNZ policymaker’s scheduled speeches will key to watch for some meaningful trading direction. Apart from this, the ongoing drama surrounding the US-China relations and updates about the U.S. stimulus package will not lose their importance. 


Entry Price – Buy 1.07734

Stop Loss – 1.07334

Take Profit – 1.08134

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