Author: Ali B.

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Forex Market Analysis

Daily F.X. Analysis, 14th October – Top Trade Setups In Forex – U.S. PPI Figures Ahead! 

On the news side, the focus will remain on the Core PPI and PPI figures that are likely to underperform compared with the previous month’s data, with this, the dollar may get weaker against other currencies. However, the FOMC members’ speeches will be worth monitoring to predict further market action. 

On the news side, the focus will remain on the Core PPI and PPI figures that are likely to underperform compared with the previous month’s data, with this, the dollar may get weaker against other currencies. However, the FOMC members’ speeches will be worth monitoring to predict further market action. 

On the news side, the focus will remain on the Core PPI and PPI figures that are likely to underperform compared with the previous month’s data, with this, the dollar may get weaker against other currencies. However, the FOMC members’ speeches will be worth monitoring to predict further market action. 

Economic Events to Watch Today  

 

EUR/USD – Daily Analysis

The EUR/USD closed at 1.17451 after placing a high of 1.18154 and a low of 1.17301. The EUR/USD pair dropped on Tuesday amid the strength of the U.S. dollar, dampened hopes of a coronavirus vaccine, and the rising number of coronavirus cases from the Eurozone along with the rising unemployment fears in the Euro area.

Euro currency remained stressed on Tuesday due to the strength of its rival U.S. dollar across the board. The impasse over the U.S. stimulus package after the comments from U.S. House Speaker Nancy Pelosi that the newly proposed stimulus relief bill from the U.S. President was not sufficient to meet Americans’ requirements gave strength to the U.S. dollar. The strength of the U.S. dollar weighed on EUR/USD pair on Tuesday.

Meanwhile, the market’s risk appetite was declined by Johnson & Johnson’s recent decision to halt the trials of their COVID-19 vaccine. The dampened hopes of a coronavirus vaccine weighed on the riskier currency Euro and dragged the prices of the EUR/USD pair further on the downside.

Furthermore, the coronavirus pandemic situation in European nations escalated and raised fears for the Eurozone’s economic recovery. The Eurozone’s economic prospects were also down because of the increased uncertainty about the Brexit deal and the U.S. presidential elections. The rising uncertainty caused an increased demand for safe-haven greenback that ultimately added to the EUR/USD pair’s losses on Tuesday.

Moreover, at 10:59 GMT, the German Final Consumer Price Index (CPI) for September remained in-line with the expectations of -0.2%. At 14:00 GMT, the ZEW Economic Sentiment from Eurozone dropped to 52.3 against the forecasted 72.0 and the previous 73.9 in October and weighed on a single currency added further in EUR/USD pair. The German ZEW Economic Sentiment also dropped in October to 56.1 from the forecasted 74.1 and the previous 77.4 and weighed on Euro that ultimately dragged EUR/USD prices on the downside.

The rising number of coronavirus cases in European nations has forced authorities to impose restrictions, which has raised fears for unemployment. The official data suggested that U.K. unemployment started to grow even before the government imposed new restrictions to control the virus’s spread. These fears continuously weighed on the euro currency and EUR/USD pair.

From the U.S. side, the NFIB Small Business Index came in as 104.0 against the projected 100.9 and supported the U.S. dollar added in the EUR/USD pair’s losses on Tuesday. Simultaneously, the CPI and Core CPI data from the U.S. remained flat with the expectations of 0.2% and had no impact on the U.S. dollar and EUR/USD pair.

Daily Technical Levels

Support Resistance

1.1791    1.1832

1.1767    1.1851

1.1749    1.1874

Pivot point: 1.1809

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 1.1732 level, and the bearish breakout of 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 pair was close at 1.29340 after placing a high of 1.30678 and a low of 1.29216. The British Pound fell sharply on Tuesday amid the rising concerns about the no-deal Brexit and fears over a looming lockdown hurt sentiment.

The chances that the U.K. will leave the E.U. without a trade deal increased after the French government appeared reluctant to give in to U.K. demands over its fisheries’ control. The French foreign minister Jean-Yves Le Drian said that the possibility of the U.K. leaving the E.U. without a trade deal was a credible hypothesis.

The French government has already said that it will not accept any bad deal in fisheries, and this has raised the uncertainty over the deal just ahead of October 15-16 European summit. The E.U. Brexit negotiator Michel Barnier will provide updates on Brexit negotiations at the E.U. summit. Barnier will elaborate on the E.U. summit’s situation on the Brexit’s key sticking points with the details about priorities and the red lines. 

The British Pound remained under pressure as the concerns were raised after the French government’s warning about the no-deal Brexit. This weighed ultimately on the GBP/USD prices. Furthermore, the rising number of coronavirus in the United Kingdom forced the local government to impose further restrictions to control the virus’s spread. PM Boris Johnson said that the rising number of cases in the U.K. was flashing at them like dashboard warnings in a passenger jet. 

Boris Johnson unveiled a new three-tier system that categories areas based on the medium, high, and very high alert levels due to an uptick in coronavirus cases across the country. The U.K. government’s rising restrictions to control the spread of the virus raised fears of economic recovery that weighed on the local currency, which added further losses in the GBP/USD pair.

On the data front, at 04:01 GMT, the BRC Retail Sales Monitor for the year from Britain rose in September to 6.1% from the expected 3.5% and the previous 4.7% and supported British Pound and caped further losses in GBP/USD pair. AT 11:00 GMT, the Claimant Count Change in September dropped to 28.1K against the forecasted 78.8K and the previous 39.5K and supported British Pound. In September, the Unemployment Rate rose to 4.5% from the forecasted 4.3% and weighed on British Pound and added the GBP/USD pair’s additional losses.

At 11:02 GMT, Britain’s Average Earnings Index came in as 0.0% for the quarter against the expected -0.6% and supported GBP. On the other hand, the NFIB Small Business Index was released from the United States at 15:30 GMT and raised to 104.0 from the anticipated 100.9 and supported the U.S. dollar that dragged the GBP/USD pair even downward.

Daily Technical Levels

Support Resistance

1.3018    1.3098

1.2971    1.3131

1.1938    1.3177

Pivot point: 1.3051

GBP/USD– Trading Tip

The GBP/USD is trading at 1.2894 level, holding right below an immediate resistance level of 1.2944. The resistance is extended by an intraday horizontal level on the two-hourly timeframes. Below the 1.2944 resistance level, the Sterling can trigger selling until the 1.2894 level and 1.2845 level. On the flip side, a bullish breakout of 1.2944 levels can trigger buying until the 1.2994 level. 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 closed at 105.475 after placing a high of 105.625 and a low of 105.234. The risk aversion market sentiment kept the USD/JPY pair on the high on Tuesday. The impasse supported the market sentiment over the U.S. stimulus package, the pandemic spread worldwide, and the pause of vaccine trials by Johnson & Jonson along with the Australian and Chinese recent clash.

The latest talks between Republicans & democrats for a fresh round of stimulus measures also failed to provide meaningful results and weighed on market sentiment. The U.S. House Speaker Nancy Pelosi downplayed the hopes for another round of stimulus package further after saying that the newly proposed package by US Trump was insufficient to meet the United States’ needs.

These dampened hopes over the next round of coronavirus relief bill raised risk aversion market sentiment and supported the U.S. dollar due to its safe-haven status and supported USD/JPY pair. Furthermore, the risk-off market bias was underpinned by the rising number of coronavirus cases across the globe and the governments’ restrictive measures to curb coronavirus’s effect on the economy. The economic recovery concerns raised even further after the IMF report that revealed that business and other economic activities were highly disturbed by the coronavirus pandemic-induced lockdowns. 

However, the IMF projection for the global recession somewhat improved on Tuesday to 4.4% than the previous projection of 5.2% in summer. This projection helped improve the risk sentiment and weighed on the safe-haven Japanese yen that added further gains in the USD/JPY pair.

The U.S. Dollar Index was up by 0.5% on Tuesday after the risk sentiment suffered due to the pause of vaccine trials by Johnson & Johnson. The company paused its trials after an unexpected illness was found in one of the participants. This pause increased the uncertainty over the economic recovery and supported the safe-haven greenback that pushed the USD/JPY pair.

On the data front, at 04:50 GMT, the M2 Money Stock for the year from Japan dropped to 9.0% from the expected 9.1% and weighed on the Japanese Yen that added strength to the USD/JPY pair on Tuesday. At 15:00 GMT, the NFIB Small Business Index for September advanced to 104.0 against the expected 100.9 and previous 100.2 and supported the U.S. dollar that lifted the USD/JPY pair. At 17:30 GMT, the CPI and the Core CPI data from September remained flat with the anticipated 0.2% and had a null-effect on the U.S. dollar.

Furthermore, China reportedly banned imports of Australian coal and left Australian vessels stuck at Chinese ports. These tensions between China and Australia increased concerns and raised uncertainty that helped improve the safe-haven Japanese yen and capped further gains in the USD/JPY pair on Tuesday.

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 105.250 level today. Good luck!  

Categories
Forex Signals

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

Today in the early European trading session, the USD/CAD currency pair extended its previous session recovery rally and remains bullish around 1.3144 level, mainly due to the broad-based U.S. dollar strength, backed by the risk-off market mood. However, the reason for the prevalent risk-off market sentiment could be associated with the reports suggesting that the U.K. pharma giant, Johnson, and Johnson, stopped its COVID-19 vaccine trial due to an unexplained illness. This, in turn, underpinned the safe-haven U.S. dollar and contributed to the currency pair gains. The on-going uncertainty over the American stimulus package also weighs on the market risk-tone, which gives further support to the U.S. dollar and keeps the currency pair higher. 

Today in the early European trading session, the USD/CAD currency pair extended its previous session recovery rally and remains bullish around 1.3144 level, mainly due to the broad-based U.S. dollar strength, backed by the risk-off market mood. However, the reason for the prevalent risk-off market sentiment could be associated with the reports suggesting that the U.K. pharma giant, Johnson, and Johnson, stopped its COVID-19 vaccine trial due to an unexplained illness. This, in turn, underpinned the safe-haven U.S. dollar and contributed to the currency pair gains. The on-going uncertainty over the American stimulus package also weighs on the market risk-tone, which gives further support to the U.S. dollar and keeps the currency pair higher. 

Today in the early European trading session, the USD/CAD currency pair extended its previous session recovery rally and remains bullish around 1.3144 level, mainly due to the broad-based U.S. dollar strength, backed by the risk-off market mood. However, the reason for the prevalent risk-off market sentiment could be associated with the reports suggesting that the U.K. pharma giant, Johnson, and Johnson, stopped its COVID-19 vaccine trial due to an unexplained illness. This, in turn, underpinned the safe-haven U.S. dollar and contributed to the currency pair gains. The on-going uncertainty over the American stimulus package also weighs on the market risk-tone, which gives further support to the U.S. dollar and keeps the currency pair higher. 

Petroleum Institute data becomes the factor that capped further upside momentum in the currency pair. However, the bullish sentiment around the crude oil prices was being supported by optimism over U.S. President Donald Trump’s negative status for the pandemic. Currently, the USD/CAD is trading at 1.3115 and consolidating in the range between 1.3108 – 1.3144.

However, the market trading sentiment failed to extend its previous day bullish moves and remained depressed by combining factors. Be it the worrisome headlines concerning the Brexit or the tension between the US-China, not to forget the coronavirus woes in the U.S. and Europe, the market trading sentiment has been flashing red since the day started, which ultimately keeps the safe-haven assets supportive on the day. 

As per the latest report, the U.K. pharma giant, Johnson and Johnson, delayed its COVID-19 vaccine trial due to an unexplained illness. Moreover, China’s dislike of the White House arms sale to Taiwan and the recent ban from Beijing to use Aussie coal for power stations adds additional pressure around the market sentiment.

This, in turn, the broad-based U.S. dollar succeeded in gaining positive traction on the day. However, the U.S. dollar gains seem rather unaffected by the political uncertainty in the U.S. ahead of U.S. elections. Thus, the gains in the U.S. dollar become the key factor that kept the currency pair higher. Whereas, the U.S. Dollar Index, which tracks the greenback against a bucket of other currencies, rose by 0.11% to 93.207 by 10:04 PM ET (2:04 AM GMT). However, the bullish sentiment around the crude oil prices could be associated with the positive reports suggesting that the U.S. President Donald Trump’s negative status for the virus infection. 


Daily Support and Resistance

S1 1.3233

S2 1.3272

S3 1.3292

Pivot Point 1.3312

R1 1.3331

R2 1.3351

R3 1.339

The USD/CAD pair is trading sideways within a narrow trading range of 1.3145 – 1.3103 level, which marks double bottom and double top level on the 2-hour timeframe. A bullish breakout of 1.3145 level may lead the USD/CAD price towards the next resistance area of 1.3207 mark, while on the lower side, the support is likely to be found around 1.3040 level today. 

Entry Price – Buy 1.31421

Stop Loss – 1.31021

Take Profit – 1.31821

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 Sideways Session Continues – Brace for Sell Position

The EUR/USD failed to stop its previous session losses and further offers around below the 1.1800 level. However, the bearish sentiment around the currency pair was boosted after the fresh downbeat released German ZEW headline numbers for October, showing that the Economic Sentiment Index came in at 56.1 against 73.0 expectations 77.4 last. This, in turn, undermined the sentiment around the shared currency and contributed to the currency pair losses. 

The EUR/USD failed to stop its previous session losses and further offers around below the 1.1800 level. However, the bearish sentiment around the currency pair was boosted after the fresh downbeat released German ZEW headline numbers for October, showing that the Economic Sentiment Index came in at 56.1 against 73.0 expectations 77.4 last. This, in turn, undermined the sentiment around the shared currency and contributed to the currency pair losses. 

The EUR/USD failed to stop its previous session losses and further offers around below the 1.1800 level. However, the bearish sentiment around the currency pair was boosted after the fresh downbeat released German ZEW headline numbers for October, showing that the Economic Sentiment Index came in at 56.1 against 73.0 expectations 77.4 last. This, in turn, undermined the sentiment around the shared currency and contributed to the currency pair losses. 

Apart from this, the reason for the bearish bias around the currency pair could also be associated with the fresh reports suggesting the re-imposition of stricter restrictions in Germany, Spain, and France to stop the coronavirus second-wave. On the flip side, the broad-based U.S. dollar strength, backed by the upbeat market sentiment, also played a major role in undermining the currency pair. At the moment, the EUR/USD currency pair is currently trading at 1.1793 and consolidating in the range between the 1.1779 – 1.1817.

At the data front, the German ZEW headline numbers for October showed that the Economic Sentiment Index arrived in at 56.1 against 73.0 expectations and 77.4 last. Moreover, the currency pair losses were also bolstered by reports suggesting a sharp rise in the coronavirus cases in Spain, France, and German. It is very downhearted headlines that the second-wave of the virus is picking up pace in Europe once again, which leads re-imposition of stricter restrictions in Germany, Spain, and France to contain the coronavirus second-wave.

According to the coronavirus (COVID-19) data from Germany’s Robert Koch Institute (RKI), the country’s cases rose around ~39,000 as of yesterday while the latest update today added 13 deaths more so that brings the total tally to 9,634 persons. This, in turn, undermined the shared currency and contributed to the currency pair.

Apart from this, the risk sentiment has been flashing red since the Asian session started, witnessed by the S&P 500 Futures’ negative performance. However, the reason for the downbeat trading sentiment could be associated with the worrisome headlines concerning Brexit and on-going tension between the U.S. and China. dislike for the U.S. proposal to the Congress about selling three sales of advanced weaponry to Taiwan recently renewed the trade war saga

At the US-China front, the renewed conflict between the U.S. and China fueled after the Dragon Nation China’s Washington Embassy lashed out at the U.S. passage of the three advanced weaponry sales to Taiwan during late-Monday, per Reuters. As per the latest report, China’s representative said, “China consistently and firmly opposes U.S. arms sales to Taiwan.” This, in turn, added additional pressure around the market sentiment.

Across the pond, the recent coronavirus (COVID-19) warning from the U.S. health official Anthony Fauci and stimulus uncertainty also keep the market trading sentiment under pressure. As per the keywords, “Dr. Anthony Fauci, director of the U.S. National Institute of Allergy and Infectious Diseases (NIH), suggests another 181,000 deaths in the United States by February. 

As per the latest report, the US Centers for Disease Control and Prevention (CDC) reported 7,740,934 cases of the new coronavirus yesterday, with an increase of 46,069 from its previous count. As in result, the broad-based U.S. dollar remains on the bullish track and still reporting gains on the day. However, the U.S. dollar gains were being supported by the reports suggesting that the U.K. pharma giant, Johnson, and Johnson, stopped its COVID-19 vaccine trial due to an unexplained illness, which eventually boosted the safe-haven assets like the U.S. dollar.

However, the U.S. dollar gains seem rather unaffected by the U.S. political uncertainty ahead of U.S. elections. Thus, the gains in the U.S. dollar become the key factor that kept the currency pair lower. Whereas, the U.S. Dollar Index, which tracks the greenback against a bucket of other currencies, rose by 0.11% to 93.207 by 10:04 PM ET (2:04 AM GMT). Looking forward, the market traders will keep their eyes on the U.S. Consumer Price Index (CPI) data. Furthermore, the risk catalyst like geopolitics and the virus woes, not to forget the Brexit, will not lose their importance.

Daily Support and Resistance

S1 1.1626

S2 1.1672

S3 1.1694

Pivot Point 1.1718

R1 1.174

R2 1.1764

R3 1.181

The EUR/USD pair is supported over 1.1790 level, which marks double bottom level on the 4-hour timeframe. Above this level, the EUR/USD is likely to bounce off until the 1.1811 level, and the bullish breakout of the 1.1831 level can also extend buying until the next target level of 1.1870. Conversely, the bearish breakout of the 1.1790 level can extend the selling trend until the 1.1750 level.

Entry Price – Buy 1.17872

Stop Loss – 1.18272

Take Profit – 1.17472

Risk to Reward – 1:1

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

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

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

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

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

Categories
Forex Signals

EUR/JPY Continues to Trade Below Previously Violated Upward Channel – Signal Update! 

The EUR/JPY failed to stop its previous session bearish streak and drew further offers around the 124.17 regions. However, the basis for the bearish sentiment around the EURJPY pair could be associated with the fresh reports suggesting the re-imposition of stricter restrictions in Germany, Spain, and France to stop the coronavirus second-wave. This, in turn, weakened the forecast around the shared currency and dragged the currency pair lower. Apart from this, the intensification of the Sino-American tussle and the uncertainty over the American stimulus package, keep weighing on the market risk-tone, which eventually underpinned the Japanese yen’s safe-haven demand and contributed to the currency pair losses. Moreover, the risk-off market sentiment was further boosted by the fresh discouraging vaccine news, which put a further bid under the safe-haven Japanese yen. At this particular time, the EUR/JPY is trading at 124.29 and consolidating between 124.17 – 124.48.

The EUR/JPY failed to stop its previous session bearish streak and drew further offers around the 124.17 regions. However, the basis for the bearish sentiment around the EURJPY pair could be associated with the fresh reports suggesting the re-imposition of stricter restrictions in Germany, Spain, and France to stop the coronavirus second-wave. This, in turn, weakened the forecast around the shared currency and dragged the currency pair lower. Apart from this, the intensification of the Sino-American tussle and the uncertainty over the American stimulus package, keep weighing on the market risk-tone, which eventually underpinned the Japanese yen’s safe-haven demand and contributed to the currency pair losses. Moreover, the risk-off market sentiment was further boosted by the fresh discouraging vaccine news, which put a further bid under the safe-haven Japanese yen. At this particular time, the EUR/JPY is trading at 124.29 and consolidating between 124.17 – 124.48.

The EUR/JPY failed to stop its previous session bearish streak and drew further offers around the 124.17 regions. However, the basis for the bearish sentiment around the EURJPY pair could be associated with the fresh reports suggesting the re-imposition of stricter restrictions in Germany, Spain, and France to stop the coronavirus second-wave. This, in turn, weakened the forecast around the shared currency and dragged the currency pair lower. Apart from this, the intensification of the Sino-American tussle and the uncertainty over the American stimulus package, keep weighing on the market risk-tone, which eventually underpinned the Japanese yen’s safe-haven demand and contributed to the currency pair losses. Moreover, the risk-off market sentiment was further boosted by the fresh discouraging vaccine news, which put a further bid under the safe-haven Japanese yen. At this particular time, the EUR/JPY is trading at 124.29 and consolidating between 124.17 – 124.48.

The shared currency remained pressured by the vaccine news and re-imposed stricter restrictions in Spain and France, and Germany to stop the coronavirus second-wave. New infections in Germany once again top 4000 on Tuesday. According to the coronavirus (COVID-19) data from Germany’s Robert Koch Institute (RKI), the country’s cases rose around ~39,000 as of yesterday while the latest update today added 13 deaths more so that brings the total tally to 9,634 persons. This, in turn, undermined the shared currency and contributed to the currency pair.

Moreover, the sentiment around the shard currency was further bolstered by the reports suggesting that the UK pharma giant, Johnson, and Johnson, delayed its COVID-19 vaccine trial due to an unexplained illness.

Across the pond, the market trading sentiment has been flashing mixed signals since the day started. Be it the American lawmakers’ failure to offer any positive announcement on the coronavirus (COVID-19) relief package or the recent escalation in the Sino-American tussle, not to forget the Brexit worries, these all factors have been weighing on the market risk tone. At the US-China front, China recently showed his dislikes over the White House arms sale to Taiwan and the recent ban from China to use Aussie coal for power stations, which eventually offered additional pressure to the market sentiment and contributed to the currency pair losses.


Moving on, the ZEW will release its German Economic Sentiment Index and the Current Situation Index at 0900 GMT in the EU session later today, which is expected to drop to 73.0 in October as against a 77.4 reading booked in the previous month. Meanwhile, the Current Situation Sub-Index is expected to arrive at -60.0 against a -66.2-figure recorded last month. Apart from this, the market traders will keep their eyes on the US Consumer Price Index (CPI) data. Furthermore, the risk catalyst like geopolitics and the virus woes, not to forget the Brexit, will not lose their importance.

Daily Support and Resistance

S1 121.85

S2 122.64

S3 123.04

Pivot Point 123.43

R1 123.83

R2 124.22

R3 125

The EUR/JPY pair is trading with a bearish bias at 125.35 level, having violated the support become a resistance level of 124.460 level. On the lower side, the EUR/JPY may gain support at 123.735 levels as worked as a support in the past. Checkout a trading plan below…

Entry Price – Buy 124.19

Stop Loss – 124.59

Take Profit – 123.79

Risk to Reward – 1:1

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

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

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

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

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

Categories
Forex Signals

AUD/USD Fails to Gain Positive Traction Amid Risk Aversion Waves! 

The AUD/USD currency pair failed to stop its early-day losing streak and drew some further offers around well below the 0.7200 level, mainly due to the risk-off market sentiment. The intensification of the Sino-American tussle drove that. The American stimulus package’s ambiguity also weighed on the market trading tone, which eventually undermined the Australian dollar’s perceived risk currency and contributed to the currency pair declines. 

The AUD/USD currency pair failed to stop its early-day losing streak and drew some further offers around well below the 0.7200 level, mainly due to the risk-off market sentiment. The intensification of the Sino-American tussle drove that. The American stimulus package’s ambiguity also weighed on the market trading tone, which eventually undermined the Australian dollar’s perceived risk currency and contributed to the currency pair declines. 

The AUD/USD currency pair failed to stop its early-day losing streak and drew some further offers around well below the 0.7200 level, mainly due to the risk-off market sentiment. The intensification of the Sino-American tussle drove that. The American stimulus package’s ambiguity also weighed on the market trading tone, which eventually undermined the Australian dollar’s perceived risk currency and contributed to the currency pair declines. 

On the other hand, the coronavirus (COVID-19) vaccine’s hopes failed to provide meaningful support to the market trading sentiment, keeping the currency pair under pressure. Apart from this, the bearish tone around the currency pair could also be associated with the broad-based U.S. dollar prevalent strength. The U.S. dollar was being supported by the market risk-off sentiment. At the moment, the AUD/USD currency pair is currently trading at 0.7179 and consolidating in the range between 0.7165 – 0.7214.

However, the market risk tone has been sluggish since the day started due to the combination of 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 Brexit woes, these all factors have been pressing the market risk tone. This, in turn, underpinned the perceived risk currency Australian dollar and contributed to the currency pair declines. 

At the US-China front, China recently showed his dislikes over the White House arms sale to Taiwan and the recent ban from China to use Aussie coal for power stations, which eventually offered additional pressure to the market sentiment and contributed to the currency pair losses.

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 Germany’s Robert Koch Institute (RKI), the country’s cases rose around ~39,000 as of yesterday while the latest update today added 13 deaths more so that brings the total tally to 9,634 persons. At the U.S. front, the virus will firm its grip in the world’s largest economy, said by the U.S. health official Dr. Anthony Fauci. Hence, the pandemic fears regaining market attention and kept the investors cautious.

As in result, the broad-based U.S. dollar managed to keep its gains throughout the day as the traders still cheering the risk-off market tone, which keeps the safe-haven demand high in the market. However, the U.S. dollar gains seem rather unaffected by the U.S. political uncertainty ahead of U.S. elections. Thus, the gains in the U.S. dollar become the key factor that kept the currency pair under pressure Whereas, the U.S. Dollar Index, which tracks the greenback against a bucket of other currencies, rose by 0.11% to 93.207 by 10:04 PM ET (2:04 AM GMT).

However, the coronavirus (COVID-19) vaccine’s hopes failed to help the market sentiment on the day as the market negative headlines overshadowed the vaccine-related optimism and kept the trading sentiment negative. Anyhow, these hopes might play a key role that could help the market trading sentiment to limit the currency pair’s deeper losses.

On the contrary, the Australian dollar is a little impressed by the unexpected rise in Chinese imports last month, strengthening the domestic economy. At the data front, China’s Trade Balance for September, in Yuan terms, arrived in CNY257.68 billion against CNY416.59 billion last. Whereas, September exports arrived in +8.7% against .+11.6% last while imports came in at +11.6% vs. -1.3% expected and -0.5% prior.


Looking forward, the market traders will keep their eyes on the U.S. Consumer Price Index (CPI) data. Furthermore, the risk catalyst like geopolitics and the virus woes, not to forget the Brexit, will not lose their importance.

Daily Support and Resistance

S1 0.7068

S2 0.7112

S3 0.7138

Pivot Point 0.7157

R1 0.7182

R2 0.7201

R3 0.7245

The AUD/USD is taking a bullish turn over a support level of 0.7160 level, perhaps, to complete a 23.6% Fibonacci retracement at 0.7180 and 0.7197 level. On the higher side, AUD/USD may face the next resistance at 0.7203 level. It’s the same level where the downward trendline is likely to match and extend resistance to the AUD/USD level. Good luck! 

Categories
Forex Market Analysis

Daily F.X. Analysis, 13th October – Top Trade Setups In Forex – U.S. Inflation in Highlights! 

Investor’s eyes will stay on the Final CPI and Final core CPI due to the U.S. Economy. The analysts are forecasting no significant changes in the inflation rate; thus, it may go muted. However, the Claimant Count Change and Unemployment Rate data from the U.K. is likely to drive market movements. Let’s keep an eye on U.K. labor market figures and U.S. CPI m/m later today.

Investor’s eyes will stay on the Final CPI and Final core CPI due to the U.S. Economy. The analysts are forecasting no significant changes in the inflation rate; thus, it may go muted. However, the Claimant Count Change and Unemployment Rate data from the U.K. is likely to drive market movements. Let’s keep an eye on U.K. labor market figures and U.S. CPI m/m later today.

Investor’s eyes will stay on the Final CPI and Final core CPI due to the U.S. Economy. The analysts are forecasting no significant changes in the inflation rate; thus, it may go muted. However, the Claimant Count Change and Unemployment Rate data from the U.K. is likely to drive market movements. Let’s keep an eye on U.K. labor market figures and U.S. CPI m/m later today.

Economic Events to Watch Today  

  

EUR/USD – Daily Analysis

The EUR/USD pair was closed at 1.18109 after placing a high of 1.18265 and a low of 1.17865. Overall the movement of the EUR/USD pair remained flat throughout the day. The EUR/USD pair was flat on Monday, as the European Central Bank members reportedly downplayed expectations that it would adopt the Federal Reserve’s average inflation targeting measure, cooling bets on central banks allowing inflation to run above target.

Several ECB policymakers appeared reluctant to follow the Fed with an average inflation target on concerns it could lead to unrealistic expectations about future policy decisions. The European Central Bank has targeted an inflation policy of below but close to 2% for years. If ECB adopts average inflation targeting like Fed, this move will see the ECB allow inflation to run above its 2% target for some time to make up for periods of sluggish price increases. 

Recently, Eurozone inflation has remained short of the bank’s target. Following U.S. Federal Reserve on inflation targeting measure could allow inflation to rise above 2% and makeup periods of lagging price pressures.

Meanwhile, the signs that the second wave of coronavirus has started to weigh on growth have attracted the central bank’s attention and caused a sluggish move in the single currency Euro. On the data front, at 10:59 GMT, the German Wholesale Price Index dropped to 0.0% from the forecasted 0.2% and weighed on single currency Euro that ultimately weighed on EUR/USD pair.

On the U.S. front, the U.S. dollar remained strong onboard on Monday amid the rising hopes that a small coronavirus relief bill will be passed before elections as the talks over the massive stimulus bill stalled on the day. The new proposed bill by Trump of 1.8 trillion dollars faced rejection from both Republicans and Democrats. Republicans were reluctant to add more to the government debt pile, and Democrats wanted their 2.2 trillion packages.

After this, Trump Administration called on Congress for a small stimulus package to be funded from leftover funds and used for hardly-hit sectors like airline and small businesses. The hopes that a small package will be delivered before elections gave strength to the U.S. dollar that added pressure on EUR/USD, and the pair remained flat throughout the day.

Daily Technical Levels

Support Resistance

1.1791 1.1832

1.1767 1.1851

1.1749 1.1874

Pivot point: 1.1809

EUR/USD– Trading Tip

The EUR/USD pair is supported over 1.1790 level, which marks double bottom level on the 4-hour timeframe. Above this level, the EUR/USD is likely to bounce off until the 1.1811 level, and the bullish breakout of the 1.1831 level can also extend buying until the next target level of 1.1870. Conversely, the bearish breakout of the 1.1790 level can extend the selling trend until the 1.1750 level.

GBP/USD – Daily Analysis

The GBP/USD pair was closed at 1.30644 after placing a high of 1.30824 and a low of 1.30052. Overall the movement of the GBP/USD pair remained bullish throughout the day. The GBP/USD pair remained positive on Monday despite broad-based U.S. dollar strength. The pair traded at its four-week highest level, but the prospect remained depressed as the local country’s coronavirus situation escalated and forced to impose new restrictive measures.

The U.S. dollar was high on board after the talks for massive stimulus measures stalled again, and the Chinese yuan depreciated. The strong U.S. dollar helped cap further gains in GBP/USD pair on Monday. The latest move also weighed the gains in the GBP/USD pair from the Bank of England, who asked commercial banks earlier today about their readiness to cope with negative interest rates. On Monday, the Bank of England wrote banks to ask them how ready they were to cope with adopting negative interest rates.

This move from BoE raised concerns that it was considering cutting interest rates further to cope with the rising coronavirus cases in the U.K. The rising speculations over further rate cuts from BoE in the coming months weighed on British Pound and limited the additional gains in GBP/USD pair.

Meanwhile, the Governor of Bank of England, Andrew Bailey, said on Monday that the central bank thought Britain’s economy could struggle more than it has forecasted to recover from the coronavirus pandemic crisis. Bailey said that risk was, unfortunately, all on the downside, which added further pressure on British Pound.

Moreover, British Prime Minister Boris Johnson implemented a three-tiered system of restrictions with the closure of pubs in certain parts of England as the country was trying to deal with the rising number of coronavirus cases. These restrictive measures also exerted downside pressure on GBP/USD pair on Monday.

Furthermore, on the U.S. front, the U.S. dollar remained strong across the board after the Chinese yuan was depreciated. The Chinese city gave away 10M yuan in a lottery trial of digital currency. The latest digital currency trial was aimed at stimulating consumer spending to aid China’s economic recovery from the coronavirus pandemic.

Other than that, the U.S. dollar was also strong as the talks for a massive stimulus bill stalled again when Republicans and Democrats disagreed with passing the newly proposed bill by Trump of worth $1.8 trillion. After this, Trump Administration called on Congress to small stimulus aid for airline and small businesses. The strong U.S. dollar also kept the GBP/USD pair’s gain limited on Monday.

On the Brexit deal front, the concerns rose that negotiations could collapse as the differences between E.U. & U.K. demands were only rising. The deadline to reach a deal is just three days far, and no progress has been reported as of yet that has raised the risk sentiment in the market. The improved risk sentiment kept the GBP/USD pair higher on board.

Daily Technical Levels

Support Resistance

1.3018 1.3098

1.2971 1.3131

1.1938 1.3177

Pivot point: 1.3051

GBP/USD– Trading Tip

The GBP/USD is trading at 1.3043 level, holding right below an immediate resistance level of 1.3063. The resistance is extended by an upward channels’ trendline on the two-hourly timeframes. Below the 1.3063 resistance level, the Sterling can trigger selling until the 1.3003 level and 1.2959 level. On the higher side, a bullish breakout of 1.3063 levels can trigger buying until the 1.3127 level. The fundamental side is muted today, and the U.S. banks are closed in the observance of Columbus day; therefore, we may experience thin volatility. 

USD/JPY – Daily Analysis

The USD/JPY pair was closed at 105.317 after placing a high of 105.817 and a low of 105.240. Overall the movement of the USD/JPY pair remained bearish throughout the day. The USD/JPY pair failed to cheer the Chinese Yuan depreciation and U.S. dollar strength on Monday and continued decline over the fresh hopes that the U.S. stimulus aid package will be delivered before the elections.

The people’s Bank of China removed a 20% reserve requirement ratio for yuan forward settlements that undermined the cost of shorting yuan and weighed on the Chinese currency. But investors failed to take advantage of this depreciation in yuan, and the pair USD/JPY remained depressed in the market.

The rising number of coronavirus cases worldwide and the increased restrictions to curb the coronavirus pandemic’s effect raised the safe-haven appeal and supported the Japanese Yen that weighed on the USD/JPY pair. Meanwhile, the absence of key macroeconomic events due to the U.S. and Canada celebrating Columbus Day and Thanksgiving respectively exerted more pressure on the USD/JPY pair.

On the Japan front, the Bank Lending for the year was released at 04:50 GMT that remained flat at 6.4%. The Core Machinery Orders raised to 0.2% from the forecasted -1.0% and supported the Japanese Yen that weighed on the USD/JPY pair. Whereas, the PPI for the year from Japan decreased to -0.8% against the forecasted -0.5%. At 10:58 GMT, the Prelim Machine Tool Orders for the year remained flat at -15.0%.

Furthermore, the newly proposed U.S. stimulus measure of $1.8 trillion by Trump also faced rejection from both parties. In response to this, the Trump administration asked Congress to provide Americans with a small relief fund specifically for airlines and small businesses before elections.

The hopes that a small package could be passed before elections and a massive stimulus package after elections weighed on the U.S. dollar and added further losses in the USD/JPY pair on Monday.

Moreover, the White House physician Sean Conley said that U.S. President Donald Trump was free of transmission risk to others on Saturday. On Sunday, Trump claimed that he was now immune from the coronavirus, but the chances to get infected remained again. Trump was tested positive for coronavirus on first October, and he has been getting medical assistance since then. The news that Trump was getting better and has no transmission risk raised risk sentiment and capped further losses in the USD/JPY pair by weighing on safe-haven Japanese yen.

Daily Technical Levels

105.05 105.70

104.82 106.12

104.40 106.36

Pivot point: 105.47

USD/JPY – Trading Tips

On Tuesday, the USD/JPY traded sharply bearish to drop from 105.900 level to the 105.450 mark. Most of the selling triggered after the USD/JPY violated an upward channel at 105.900 level. Currently, the USD/JPY pair is trading at 105.459 level, the support level that’s extended by double bottom level. A bearish breakout of 105.450 level may drive further selling until the 105.070 support level as the MACD, and the 50 periods EMA are in support of selling bias today. Let’s consider opening sell trade below 105.40 level today. Good luck!  

Categories
Forex Signals

EUR/JPY Breaks Below Upward Channel at 124.850 – Quick Update on Sell Signal! 

Today in the European trading session, the EUR/JPY currency pair failed to stop its previous session losing streak and remain depressed around below the 124.50 marks. However, the bearish bias around the currency pair could be associated with upbeat Japan’s Machinery Orders data, underpinning the Japanese yen currency and contributing to the currency pair declines. Apart from this, Europe’s intensified coronavirus concerns undermined the shared currency and add further pessimism around the currency pair. On the contrary, the prevalent market risk-on sentiment tends to undermine the safe-haven Japanese yen, which becomes the key factor that helps the pair to limit its deeper losses. At this particular time, the EUR/JPY currency pair is currently trading at 124.38 and consolidating in the range between 124.32 – 125.08.

Today in the European trading session, the EUR/JPY currency pair failed to stop its previous session losing streak and remain depressed around below the 124.50 marks. However, the bearish bias around the currency pair could be associated with upbeat Japan’s Machinery Orders data, underpinning the Japanese yen currency and contributing to the currency pair declines. Apart from this, Europe’s intensified coronavirus concerns undermined the shared currency and add further pessimism around the currency pair. On the contrary, the prevalent market risk-on sentiment tends to undermine the safe-haven Japanese yen, which becomes the key factor that helps the pair to limit its deeper losses. At this particular time, the EUR/JPY currency pair is currently trading at 124.38 and consolidating in the range between 124.32 – 125.08.

Today in the European trading session, the EUR/JPY currency pair failed to stop its previous session losing streak and remain depressed around below the 124.50 marks. However, the bearish bias around the currency pair could be associated with upbeat Japan’s Machinery Orders data, underpinning the Japanese yen currency and contributing to the currency pair declines. Apart from this, Europe’s intensified coronavirus concerns undermined the shared currency and add further pessimism around the currency pair. On the contrary, the prevalent market risk-on sentiment tends to undermine the safe-haven Japanese yen, which becomes the key factor that helps the pair to limit its deeper losses. At this particular time, the EUR/JPY currency pair is currently trading at 124.38 and consolidating in the range between 124.32 – 125.08.

As we all well aware that the coronavirus resurgence in Europe is intensifying, which fueled the worries over the EUR economic recovery. As per the latest report, France has reported record-high new daily cases of approximately 27K during the recession. At the Spain front, Catalonia and Navarre’s regions will tighten restrictions on working and public gatherings after the continued rise in COVID-19 cases, which keeps the shard currency under pressure and contributed to the currency pair losses.

Across the pond, the market trading sentiment has been flashing mixed signals since the day started. Be it the American lawmakers’ failure to offer any positive announcement on the coronavirus (COVID-19) relief package or the on-going in the Sino-American tussle, not to forget the no-deal Brexit fears, these all factors have been weighing on the market risk tone. This, in turn, underpinned the safe-haven Japanese yen and dragged the currency pair further lower.

Across the pond, upbeat Japan’s Machinery Orders data also supported the Japanese yen currency, which keeps the currency pair under pressure. At the data front, the August month’s Machinery Orders recovered from -16.2% previous and -15.6% forecast to -15.2% YoY. On the other hand, the Producer Price Index (PPI) for September dropped below -0.5% expected and previous readings to -0.8%.

On the contrary, the market risk sentiment recently got lift by the positive reports suggesting that Trump had fully recovered from his bout with COVID-19. These hopes were further fueled after his physician Sean Conley stating that he is no longer an infection risk. This, in turn, boosted the market trading sentiment and helped the currency pair limit its deeper losses.


Daily Support and Resistance

S1 121.85

S2 122.64

S3 123.04

Pivot Point 123.43

R1 123.83

R2 124.22

R3 125

Technically, the EUR/JPY is trading at 124.450 level, having violated the upward channel supporting the pair at 124.800 level. For now, the EUR/JPY may find resistance at 124.800, and on the lower side, the pair may drop until 124.247. The leading indicators, such as MACD and RSI, are holding below 50, suggesting the odds of further selling bias among traders. Check out the forex trading signal below… 

Entry Price – Buy 124.439

Stop Loss – 124.839

Take Profit – 124.039

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 Signals

AUD/USD Failed To Gain Any Positive Traction – Double Bottom Supports! 

The AUD/USD failed to stop its early-day losing streak and dropped to 0.7213 level, mainly due to the broad-based U.S. dollar strength, backed by the stalled stimulus talk. Apart from this, the fears of a hard Brexit and surge in the coronavirus (COVID-19) fears from Europe keep challenging the market risk-on tone, which undermined the perceived risk currency Australian dollar and contributed to the currency pair gains. On the contary, the market risk-on sentiment, supported by the vaccine hopes helped the currency pair to limits its deeper losses. At the press time, the AUD/USD is trading at 0.7230 and consolidating in the range between 0.7213 – 0.7236. Moving on, the progress in the currency pair is expected to remain sluggish amid the U.S. holiday.

The AUD/USD failed to stop its early-day losing streak and dropped to 0.7213 level, mainly due to the broad-based U.S. dollar strength, backed by the stalled stimulus talk. Apart from this, the fears of a hard Brexit and surge in the coronavirus (COVID-19) fears from Europe keep challenging the market risk-on tone, which undermined the perceived risk currency Australian dollar and contributed to the currency pair gains. On the contary, the market risk-on sentiment, supported by the vaccine hopes helped the currency pair to limits its deeper losses. At the press time, the AUD/USD is trading at 0.7230 and consolidating in the range between 0.7213 – 0.7236. Moving on, the progress in the currency pair is expected to remain sluggish amid the U.S. holiday.

The AUD/USD failed to stop its early-day losing streak and dropped to 0.7213 level, mainly due to the broad-based U.S. dollar strength, backed by the stalled stimulus talk. Apart from this, the fears of a hard Brexit and surge in the coronavirus (COVID-19) fears from Europe keep challenging the market risk-on tone, which undermined the perceived risk currency Australian dollar and contributed to the currency pair gains. On the contary, the market risk-on sentiment, supported by the vaccine hopes helped the currency pair to limits its deeper losses. At the press time, the AUD/USD is trading at 0.7230 and consolidating in the range between 0.7213 – 0.7236. Moving on, the progress in the currency pair is expected to remain sluggish amid the U.S. holiday.

The market risk-on sentiment faded after the House Speaker Nancy Pelosi rejected Friday’s U.S. President Donald Trump’s aid package proposal of $1.8 trillion. Apart from this, the on-going surge in the COVID-19 cases from the U.K. and Europe and the no-deal Brexit fears also weighs on the market risk sentiment, which undermined the perceived risk currency Australian dollar and contributed to the currency pair gains. As per the latest report, the no-deal Brexit is gradually gaining momentum as the European Union (E.U.) and the U.K. are still at loggerheads, despite being near the October 15 deadline. 

Across the pond, the latest figures from Europe and the U.K. keeps leading the national lockdowns. As per the latest report, France reported record 27,000 new cases with German infections surging by the most since April, which kept fueling the worries over the global economic recovery and kept the currency pair under pressure. 

As a result, the broad-based U.S. dollar succeeded in stopping its early-day losses and took the fresh bids on the day. However, the U.S. dollar gains could be temporary as worries over the economic recovery in the U.S. could be stopped amid the reappearance of coronavirus cases and U.S. post-election uncertainty. 

The People’s Bank of China (PBOC) set the financial institutions free from the need to set aside cash when purchasing F.X. for clients through forwards. These moves could negatively impact the Chinse currency as the same moves were taken in September 2017, which resulted in over 2.0% drop of the Chinese yuan (CNY) during the following three weeks. Thus, any Chinese currency loss tends to undermine the Australian dollar as China is the biggest customer in Australia.


Daily Support and Resistance

S1 0.7068

S2 0.7112

S3 0.7138

Pivot Point 0.7157

R1 0.7182

R2 0.7201

R3 0.7245

The AUDUSD is likely to trade with a bullish bias over 0.7203 level, and continuation of an upward trend may lead AUD/USD price towards 0.7253 level. On the lower side, the support stays at the 0.7203 area today. We may see the AUD/USD to trade bullish until 0.7250 and 0.7330. Good luck! 

Categories
Forex Signals

Gold Upward Channel Supports Buying in Gold – Brace for Buying! 

The yellow metal prices failed to extend its previous session winning streak and edged lower around $1,919 during the European trading session. However, the broad-based U.S. dollar strength could be considered one of the main reasons behind the yellow-metal fresh selling bias. The gains in the U.S. dollar came into existence after the U.S. House Speaker Pelosi rejected Friday’s proposal from Trump, concerning the coronavirus (COVID-19) aid package worth near $1.8 trillion. 

The yellow metal prices failed to extend its previous session winning streak and edged lower around $1,919 during the European trading session. However, the broad-based U.S. dollar strength could be considered one of the main reasons behind the yellow-metal fresh selling bias. The gains in the U.S. dollar came into existence after the U.S. House Speaker Pelosi rejected Friday’s proposal from Trump, concerning the coronavirus (COVID-19) aid package worth near $1.8 trillion. 

The yellow metal prices failed to extend its previous session winning streak and edged lower around $1,919 during the European trading session. However, the broad-based U.S. dollar strength could be considered one of the main reasons behind the yellow-metal fresh selling bias. The gains in the U.S. dollar came into existence after the U.S. House Speaker Pelosi rejected Friday’s proposal from Trump, concerning the coronavirus (COVID-19) aid package worth near $1.8 trillion. 

Besides this, the market risk-on sentiment, backed by the hopes of Trump’s health recovery from the COVID-19 infections, also weighed on the yellow metal price. Subsequently, the logic behind the risk-on market sentiment could also be connected with the vaccine’s positive reports and treatment for the extremely infectious coronavirus. On the contrary, the prevalent rise in the COVID-19 cases from the U.K. and Europe and the no-deal Brexit fears keep challenging the market risk-on sentiment, helping the bullion prices limit its deeper losses. Apart from this, the US-China long-lasting tussle also questions the market sentiment upside momentum, which also caps further downside for the gold. AS of writing, the yellow metal prices are currently trading at 1,921.49 and consolidating in the range between 1,919.20 – 1,933.37.

Even though the U.S. House Speaker Nancy Pelosi refused Friday’s U.S. President Donald Trump’s aid package proposal of $1.8 trillion, the market trading sentiment remains positive, possibly due to the positive reports suggesting that the Trump had fully recovered from his bout with COVID-19. These hopes were further fueled after his physician Sean Conley stating that he is no longer an infection risk. This, in turn, boosted the market trading sentiment and undermined the safe-haven metal prices.

Additionally, the market trading sentiment was supported by the hopes of the coronavirus vaccine. Thus the positive tone surrounding the market trading sentiment was seen as one of the key factors that kept the gold prices under pressure. 

Despite the upbeat market sentiment, the broad-based U.S. dollar succeeded in extending its previous-session gains and took further bids on the day amid the stalled stimulus talk that tends to underpin the U.S. dollar. However, the U.S. dollar gains could be short-lived or temporary as concerns over the economic recovery could be stopped because of the resurgence of coronavirus cases and U.S. post-election uncertainty. Although, the U.S. dollar gains kept the gold prices under pressure, as the price of gold is inversely associated with the U.S. dollar price. 

On the contrary, the worries over the resurgence of the coronavirus pandemic have been destroying the support of the global economic improvement, which holds challenging the market trading sentiment and help the yellow-metal prices to limit its deeper losses. As per the latest report, France reported record 27,000 new cases while German infections are surging by the most since April.

At the US-China front, the long-lasting tussle between the United States and China remain on the cards as both parties continuously using very harsh words for each other. This, in turn, added further questions around the market trading sentiment and became the key portion that held the cap on any additional losses in the safe-haven metal prices.


Daily Support and Resistance

S1 1847.32

S2 1874.78

S3 1887.18

Pivot Point 1902.24

R1 1914.64

R2 1929.7

R3 1957.16

The yellow metal gold has risen sharply to trade at 1,928 marks; however, the neutral candle’s closing beneath 1,932 levels implies mixed inclination among traders. Gold is traded over 1,919 levels, and closing of candles beyond 1,919 mark may induce an upward shift in the market. On the upper side, a breach of 1,932 may drive gold higher towards 1,943 and 1,952 marks. In contrast, a bearish breakout of 1,919 levels may lead the gold price towards 1,907 levels today. Mixed bias prevails due to holidays in the United States. Good luck! 

Categories
Forex Market Analysis

Daily F.X. Analysis, 12th October – Top Trade Setups In Forex – U.S. Bank Holiday! 

On the news front, the market is likely to exhibit slight movements as the U.S. and Canadian banks are closed in Columbus’s observance and thanksgiving holiday. Therefore, most of the focus should stay on the technical side of the market today.

On the news front, the market is likely to exhibit slight movements as the U.S. and Canadian banks are closed in Columbus’s observance and thanksgiving holiday. Therefore, most of the focus should stay on the technical side of the market today.

On the news front, the market is likely to exhibit slight movements as the U.S. and Canadian banks are closed in Columbus’s observance and thanksgiving holiday. Therefore, most of the focus should stay on the technical side of the market today.

Economic Events to Watch Today  


 

EUR/USD – Daily Analysis

The EUR/USD pair was closed at 1.18296 after placing a high of 1.18308 and a low of 1.17478. Overall the movement of the EUR/USD pair remained bullish throughout the day. The EUR/USD raised to its more than 2-weeks highest level on Friday on the back of lifted sentiment in the market after the renewed hopes for a U.S. stimulus package. EUR/USD pair rose on Friday despite the increasing tensions regarding the coronavirus pandemic.

The second wave of the COVID-19 pandemic in the Eurozone forced governments across the region to start implementing fresh restrictions mostly on leisure activities like bars, pubs, and restaurants. The Chief Economist of European Central Bank, Philip Lane, said that the next phase of coronavirus would be tougher for the European economy.

Lane said that the central bank would wait to see the government’s response to the coronavirus challenge as they publish their budgets for 2021; by saying so, he dampened expectations for fresh stimulus from the ECB by this month. The news that the ECB will not announce any stimulus measure by the end of this month despite rising coronavirus cases raised the risk sentiment and pushed EUR/USD pair on board. 

On the other hand, Trump, who said earlier this week that talks between Republicans & Democrats will be halted until elections, said that he wanted a bigger stimulus package for Americans on Friday. The U-turn by Trump for the coronavirus stimulus package came in after polls suggested a victory of Joe Biden in upcoming elections due to his support for the big stimulus package.

The talks between Nancy Pelosi and Steven Mnuchin resumed on Friday after Trump gave the go-ahead stimulus package. These developments raised risk sentiment in the market as the hopes increased that a package will be delivered before the elections. This, in turn, weighed on the U.S. dollar, and that ultimately pushed the already rising EUR/USD pair on the upside towards more than 2—weeks highest level.

Meanwhile, at 11:45 GMT, the French Industrial Production for August declined to 1.3% from the expected 2.1% and weighed on Euro on the data front. At 13:00 GMT, the Italian Industrial Production for August raised to 7.7% from the expected 1.3% and supported the single currency that ultimately added further in the EUR/USD pair upside momentum.

From the U.S. side, the Final Wholesale Inventories dropped to 0.4% from the forecasted 0.5% and supported the U.S. dollar that capped further gains in EUR/USD pair.

Daily Technical Levels

Support Resistance

1.1734     1.1784

1.1708     1.1808

1.1684     1.1834

Pivot point: 1.1758

EUR/USD– Trading Tip

On Monday, the EUR/USD is trading with a bullish bias around 1.1798 level, having an immediate resistance at 1.1832 level. A bullish crossover of 1.1832 level may lead the EUR/USD pair further higher until the 1.1870 mark. At the same time, the support continues to stay at 1.1798 level. The violation of the symmetric triangle pattern nad an upward channel is supported by bullish bias in the EUR/USD pair today. Let’s consider taking a buy trade over 1.1798 level today. 

GBP/USD – Daily Analysis

The GBP/USD pair was closed at 1.30441 after placing a high of 1.30489 and a low of 1.29135. Overall the movement of the GBP/USD pair remained bullish throughout the day. The GBP/USD pair moved to its one month’s highest level on Friday after the U.S. dollar came under pressure over fresh stimulus hopes. In the absence of any latest development surrounding the Brexit talks, the GBP/USD pair continued following the U.S. dollar’s movements.

Wall Street’s main indexes remained in the positive territory for the third straight day on Friday after Trump gave the go-ahead for talks over the next round of the stimulus package. Earlier this week, Trump ordered to halt further talks with Democrats over the stimulus package till elections. But later, he decided sideways and said that he wanted a small stimulus package specifically for airline workers. And now, on Friday, Trump said that he wanted to give a big stimulus package to Americans before the elections. He proposed a $1.8 trillion package and approved further talks. The latest proposed package will include checks to individuals and an extension of the paycheck protection program.

The U.S. Treasury Secretary Steven Mnuchin and House Speaker Nancy Pelosi resumed talks on the revised package of 1.8 trillion dollars on Friday. This gave hopes that the package will be delivered before elections and supported the GBP/USD pair’s risk sentiment.

On the Brexit front, on Friday, an E.U. diplomat said that European Union chief Brexit negotiator, Michel Barnier wanted a few more concessions from Britain before entering the last intense phase of negotiations on a trade deal.

The two main negotiators from the E.U. side, Barnier and David Frost, said they were inching towards a deal. However, they also said that important gaps remained on fishing, level playing field, and governance issues. 

As we already know, the PM Boris Johnson has given the 15th October deadline to reach a deal, and given this deadline, before reaching the final round of make-or-break negotiations, Barnier has asked for a few more concessions. It remains that Johnson will allow for a further concession or not; however, both sides have confirmed that they were prepared for a no-deal scenario if needed. 

Furthermore, France has sharpened its tone on fishing rights and warned that an agreement on the fishing issue with the United Kingdom would be an integral part of the Brexit deal, and its proposals have fallen short. The French Minister of the Sea Annick Girardin said that the U.K. had made unacceptable proposals, and the nation’s fisherman has said in response that they would prefer no-deal over a bad one.

On the data front, at 11:00 GMT, the Construction Output for August dropped to 3.0% against the forecasted 5.1% and weighed on GBP/USD pair. August’s GDP also fell to 2.1% from the forecasted 4.6% and weighed on GBP/USD pair. 

The Goods Trade Balance came in line with the expectations of -9.0B. The Index of Services for the quarter raised 7.1% from the forecasted 7.0% and supported British Pound. The Industrial Production for August decreased to 0.3% from the projected 2.6% and weighed on GBP. The Manufacturing Production for August also declined to 0.7% from the projected 3.2% and weighed on British Pound. Despite poor than expected macroeconomic data from Great Britain, the GBP/USD pair raised in the market to its one month’s highest level on the back of improved risk sentiment amid Brexit and U.S. stimulus package developments.

Daily Technical Levels

Support Resistance

1.2921     1.3013

1.2863     1.3049

1.2828     1.3106

Pivot Point: 1.2956

GBP/USD– Trading Tip

The GBP/USD is trading at 1.3043 level, holding right below an immediate resistance level of 1.3063. The resistance is extended by an upward channels’ trendline on the two-hourly timeframes. Below the 1.3063 resistance level, the Sterling can trigger selling until the 1.3003 level and 1.2959 level. On the higher side, a bullish breakout of 1.3063 levels can trigger buying until the 1.3127 level. The fundamental side is muted today, and the U.S. banks are closed in the observance of Columbus day; therefore, we may experience thin volatility 

USD/JPY – Daily Analysis

The USD/JPY pair was closed at 105.603 after placing a high of 106.039 and a low of 105.579. Overall the movement of the USD/JPY pair remained bearish throughout the day. On Friday, the USD/JPY pair dropped and reversed its direction as the U.S. President Donald Trump took a U-turn from his earlier statements related to the U.S. stimulus package. The market moved against the U.S. dollar and made it weak across the board after hopes for Joe Biden to win the election increased, and Trump approved stimulus talks.

On Friday, the U.S. President Donald Trump said he wanted a new and big stimulus package than earlier proposed in a radio interview. He said that he wanted to provide checks to Americans before elections. Whereas, earlier this week, Trump said that he wanted to halt further talks till elections, and after that, he said that he wanted a small stimulus package for airline workers.

The U-turn by U.S. President over the stimulus package gave a boost to risk sentiment as it increased the hopes that the package will be delivered before the elections. This weighed on the U.S. dollar, and the pair USD/JPY suffered on Friday. Furthermore, on Friday, Larry Kudlow said that Trump had approved the talks for a new proposed stimulus package worth $1.8 trillion. The talks for it have resumed on Friday between U.S. Treasury Secretary Steven Mnuchin and House Speaker Nancy Pelosi. 

On the data front, at 04:30 GMT, the Average Cash Earnings for the year declined to -1.3% against the forecasted -1.2% and weighed on the Japanese Yen. The Household Spending for the year from Japan also dropped to -6.9% from the forecasted -6.6% and weighed on the Japanese Yen. Despite Japan’s negative macroeconomic data, the USD/JPY pair remained bearish throughout the day amid broad-based U.S. dollar weakness. From the U.S. side, the Final Wholesale Inventories for August were released at 19:00 GMT that dropped to 0.4%from the projected 0.5% and supported the U.S. dollar. However, traders ignored the U.S. data as the focus was shifted completely towards the U.S. stimulus developments.

On the other hand, the United Kingdom’s coronavirus situation worsened as one of the U.K.’s top scientists warned that the country was at a tipping point. He said that more deaths from the viruses would follow a rise in cases in the coming weeks. He added that country was facing a similar situation that it last seen in March. The rising number of coronavirus cases worldwide raised safe-haven appeal and supported the Japanese Yen and weighed on the USD/JPY pair.

Daily Technical Levels

Support Resistance

105.53    105.80

105.42     105.98

105.25     106.08

Pivot point: 105.70

USD/JPY – Trading Tips

The USD/JPY traded sharply bearish to drop from 105.900 level to 105.450 mark. Most of the selling triggered after the USD/JPY violated an upward channel at 105.900 level. Currently, the USD/JPY pair is trading at 105.459 level, the support level that’s extended by double bottom level. A bearish breakout of 105.450 level may drive further selling until the 105.070 support level as the MACD, and the 50 periods EMA are in support of selling bias today. Let’s consider opening sell trade below 105.40 level today. Good luck!  

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Forex Signals

EUR/JPY Upward Channel Underpins Bullish Trend – An Update on Signal 

During the Friday’s European trading hours, the EUR/JPY currency pair succeeded to extend its previous session gaining streak and hit the intra-day high level around above 125.00 level mainly due to the risk-on market sentiment, backed by the prevalent optimism over treatment for the highly infectious coronavirus, which tends to undermine the safe-haven Japanese yen and contributes to the currency pair gains. Moreover, the market risk tone was further boosted by the increasing expectations of further US stimulus package, which provided further boost to the currency pair. 

During the Friday’s European trading hours, the EUR/JPY currency pair succeeded to extend its previous session gaining streak and hit the intra-day high level around above 125.00 level mainly due to the risk-on market sentiment, backed by the prevalent optimism over treatment for the highly infectious coronavirus, which tends to undermine the safe-haven Japanese yen and contributes to the currency pair gains. Moreover, the market risk tone was further boosted by the increasing expectations of further US stimulus package, which provided further boost to the currency pair. 

During the Friday’s European trading hours, the EUR/JPY currency pair succeeded to extend its previous session gaining streak and hit the intra-day high level around above 125.00 level mainly due to the risk-on market sentiment, backed by the prevalent optimism over treatment for the highly infectious coronavirus, which tends to undermine the safe-haven Japanese yen and contributes to the currency pair gains. Moreover, the market risk tone was further boosted by the increasing expectations of further US stimulus package, which provided further boost to the currency pair. 

On the contrary, Europe’s quickly rising coronavirus (COVID-19) cases fueled the worries over the EUR economy recovery, which becomes the key factor that kept the lid on any additional gains in the currency pair. Meanwhile, the latest report that the Spanish Prime Minister (PM) Pedro Sánchez announced a state of emergency in Madrid also played a major role in capping further currency pair gains. As of writing, the EUR/JPY currency pair is currently trading at 124.97 and consolidating in the range between 124.51 – 125.02.

As we already mentioned that the equity market has been flashing green since the day started. The reason could be associated with the major positive catalysts. Be it the renewed probabilities of the further stimulus package or optimism over treatment for the highly infectious coronavirus, not to forget the upbeat China data, these all factors favor the market trading sentiment, which could be considered the main factors that kept the currency pair higher. 

It should be noted that the US President Donald Trump stepped back from his earlier ‘NO’ to the coronavirus (COVID-19) aid package talks. However, US President Donald Trump is ready to shift towards the large scale bill, which propels the market’s risk sentiment and weighs on the safe-haven Japanese yen. Apart from this, the coronavirus (COVID-19) vaccine’s hopes also favored the market risk tone, which eventually underpinned the safe-haven US Japanese yen and contributed to the currency pair gains.

As per the latest report, China joins the World Health Organization’s virus vaccine program after returning from one week-long holiday, which initially fueled the hopes of a disease cure. Meanwhile, the market trading sentiment was further bolstered by the positive reports that Gilead and Regeneron’s vaccine research efforts will offer strong results to stop the virus.

On the contrary, the Spanish Prime Minister (PM) Pedro Sánchez announced a state of emergency in Madrid as the COVID-19 cases in the UK and Germany are also worrisome. At the coronavirus front, the coronavirus cases grew to 314,660, with a total of 9,589 deaths toll, according to the German disease and epidemic control center, Robert Koch Institute (RKI) report. In the meantime, the cases rose by 4,516 on the day while the death toll rose by 11. The daily rise in new cases topped 4,000 for the second day in a row, the highest numbers since April 10. These virus fears could be considered one of the key factors that kept the lid on any additional currency pair gains.

In the absence of the major data/events on the day, the market traders will keep their eyes on the Canadian jobs data. In the meantime, 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 121.85

S2 122.64

S3 123.04

Pivot Point 123.43

R1 123.83

R2 124.22

R3 125

The EUR/JPY has violated the triple top resistance level of 124.850 mark, and now this is opening further room for buying until the next resistance level of 125.300 level. On the lower side, the support continues to stay at 124.850 level. The MACD and the 50 periods EMA are also supporting the buying trend today and check out a trading plan below.

Entry Price – Buy 124.933

Stop Loss – 124.533

Take Profit – 125.333

Risk to Reward – 1:1

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

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

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

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Forex Signals

EUR/USD Violated Symmetric Triangle Pattern – Brace for Selling! 

During the Friday’s European trading hours, the EUR/USD currency pair succeeded to extend its previous session gaining streak and hit the intra-day high level around above 1.1800 level mainly due to the broad-based U.S. dollar selling bias, triggered by the market risk-on sentiment. However, the market risk tone was being supported by optimism over a possible vaccine and treatment for the highly infectious coronavirus. 

During the Friday’s European trading hours, the EUR/USD currency pair succeeded to extend its previous session gaining streak and hit the intra-day high level around above 1.1800 level mainly due to the broad-based U.S. dollar selling bias, triggered by the market risk-on sentiment. However, the market risk tone was being supported by optimism over a possible vaccine and treatment for the highly infectious coronavirus. 

During the Friday’s European trading hours, the EUR/USD currency pair succeeded to extend its previous session gaining streak and hit the intra-day high level around above 1.1800 level mainly due to the broad-based U.S. dollar selling bias, triggered by the market risk-on sentiment. However, the market risk tone was being supported by optimism over a possible vaccine and treatment for the highly infectious coronavirus. 

Meanwhile, the increasing expectations of further U.S. stimulus packages also boosted the market trading sentiment, which keeps the U.S. dollar lower. Apart from this, the United States’ political uncertainty also weighs on the broad-based U.S. dollar, which provided an additional boost to the currency pair. 

On the contrary, Europe’s quickly rising coronavirus (COVID-19) cases fueled the worries over the EUR economy recovery, which becomes the key factor that kept the lid on any additional gains in the currency pair. Meanwhile, the latest report that the Spanish Prime Minister (PM) Pedro Sánchez announced a state of emergency in Madrid also played a significant role in capping further currency pair gains.

However, the reason for the risk-on market sentiment could be associated with the renewed probabilities of the further stimulus package, triggered after the U.S. President Donald Trump stepped back from his earlier ‘NO’ to the coronavirus (COVID-19) aid package talks. This was witnessed after the discussions between House of Representative Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin over the U.S. stimulus package resumed overnight. Apart from this, the coronavirus (COVID-19) vaccine’s hopes also favored the market risk tone, which eventually underpinned the safe-haven U.S. dollar. 

As per the latest report, China joins the World Health Organization’s virus vaccine program after returning from one week-long holiday, which initially fueled the hopes of a disease cure. Meanwhile, the market trading sentiment was further bolstered by the positive reports that Gilead and Regeneron’s vaccine research efforts will offer strong results to stop the virus.

As in result, the broad-based U.S. dollar failed to stop its previous session losing streak & remained depressed during the European session as the investors continue to sell U.S. dollars on the back of the U.S. fiscal stimulus hopes, which keeps the market sentiment bullish. Furthermore, the U.S. dollar losses could also be associated with political uncertainty in the U.S. ahead of U.S. elections. Thus, the losses in the U.S. dollar kept the currency pair higher.

On the contrary, the Spanish Prime Minister (PM) Pedro Sánchez announced a state of emergency in Madrid as the COVID-19 cases in the U.K. and Germany are also worrisome. At the coronavirus front, the coronavirus cases grew to 314,660, with a total of 9,589 deaths toll, according to the German disease and epidemic control center, Robert Koch Institute (RKI) report. In the meantime, the cases rose by 4,516 on the day while the death toll rose by 11. The daily rise in new cases topped 4,000 for the second day in a row, the highest numbers since April 10. These virus fears could be considered one of the key factors that kept the lid on any additional currency pair gains.


Daily Support and Resistance

S1 1.1626

S2 1.1672

S3 1.1694

Pivot Point 1.1718

R1 1.174

R2 1.1764

R3 1.181

The EUR/USD pair is consolidating below 1.1780 level, and the closing of candles below the triple top resistance level of 1.1780 level may drive the selling trend in the EUR/USD pair until the support level of 1.1758 and 1.1740 level. Conversely, the bullish breakout of the 1.1780 level can trigger a sharp buying trend until today’s 1.1807 mark. Checkout a trading signal below.. 

Entry Price – Sell 1.17755

Stop Loss – 1.18155

Take Profit – 1.17355

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 Failed To Stop Its Previous Session Losing Streak – What’s Next?

During Friday’s Early European trading session, the USD/CAD currency pair extended its previous session losses and dropped to the intra-day low below 1.3180 level, mainly due to the broad-based U.S. dollar weakness. The prevalent downtrend in the greenback is primarily tied to the optimism over the U.S. fiscal stimulus hopes, which keeps the market trading sentiment positive and contributed to the currency pair losses. Moreover, the U.S.’s political uncertainty also weighs on the already weaker U.S. dollar, which adds further burden around the currency pair. 

During Friday’s Early European trading session, the USD/CAD currency pair extended its previous session losses and dropped to the intra-day low below 1.3180 level, mainly due to the broad-based U.S. dollar weakness. The prevalent downtrend in the greenback is primarily tied to the optimism over the U.S. fiscal stimulus hopes, which keeps the market trading sentiment positive and contributed to the currency pair losses. Moreover, the U.S.’s political uncertainty also weighs on the already weaker U.S. dollar, which adds further burden around the currency pair. 

During Friday’s Early European trading session, the USD/CAD currency pair extended its previous session losses and dropped to the intra-day low below 1.3180 level, mainly due to the broad-based U.S. dollar weakness. The prevalent downtrend in the greenback is primarily tied to the optimism over the U.S. fiscal stimulus hopes, which keeps the market trading sentiment positive and contributed to the currency pair losses. Moreover, the U.S.’s political uncertainty also weighs on the already weaker U.S. dollar, which adds further burden around the currency pair. 

Across the pond, the reason for the declines in the currency pair could also be attributed to the recent surge in the crude oil prices, which underpinned the commodity-linked currency the Loonie and contributed to the currency pair’s declines. The crude oil prices were being supported by the Norwegian oil output disruption and risk-on market profile. As of writing, the USD/CAD currency pair is currently trading at 1.3175 and consolidating in the range between 1.3168 – 1.3204. Moving on, the currency pair traders seem cautious to place any strong position ahead of Canadian jobs data.

Despite the intensified Sino-US tussle, the market trading sentiment extended its previous-session positive tone and remained supportive by the combination of factors. The reason for the risk-on market trading sentiment could be attributed to the positive headlines suggesting that the Republican and Democratic policymakers agreed on a final push to reach a comprehensive aid package after President Donald Trump rejected talks earlier this week. However, these positive headlines helped the market’s risk sentiment and undermined the U.S. dollar’s safe-haven demand.

At the USD front, the broad-based U.S. dollar remained depressed as the investors continue to sell U.S. dollars on the back of the U.S. fiscal stimulus hopes, which keeps the market sentiment bullish. Moreover, the U.S. dollar losses could also be associated with political uncertainty in the U.S. ahead of U.S. elections. Thus, the losses in the U.S. dollar kept the currency pair lower. 

Crude oil fresh bids above $42 on the day backed by reports cited the Norwegian oil output disruption and risk-on market profile. In the meantime, the U.S. Secretary of State Mike Pompeo tweeted the Trump administration’s decision to increase hardships for Iran’s financial sector while imposing fresh sanctions on 18 banks from Iran, further fueling the disturbance in the oil supply and provided an additional boost to the oil prices. 

Moving on, the currency pair could face further losses as Canada is set to add 156.6K jobs in September. Hence, the big beat on the Canadian jobs data tends to underpin the Candian dollar, which could offer extra legs to the downside in the currency pair. Looking ahead, the market traders will keep their eyes on updates surrounding the Sino-US tussle and stimulus headlines. Whereas Canadian jobs data will be key to watch. In the meantime, the USD moves and coronavirus headlines will not lose its importance.


Daily Support and Resistance

S1 1.3233

S2 1.3272

S3 1.3292

Pivot Point 1.3312

R1 1.3331

R2 1.3351

R3 1.339

The USD/CAD is heading lower with a bearish bias at the 1.3170 level, having violated the support level of 1.3206 which now is working as a resistance. On the lower side, the USD/CAD pair may find support at 1.3174 area and 1.3080 support. We may enter a sell trade below 1.3209 level today or at least put the sell limit. Stay tuned and good luck! 

Categories
Forex Signals

Overbought Gold Braces for Bearish Correction – Brace for a Sell! 

The yellow metal prices extended its early-day bullish rally and remained well bids around above the 1,900 level. However, the bullish sentiment around the bullion prices could be associated with the broadly weaker U.S. dollar. The risk-on market sentiment undermined that. Meanwhile, the U.S.’s prevailing political uncertainty also pushed the U.S. dollar down for the second consecutive day. Thus, the U.S. dollar losses could be considered one of the key factors that kept the gold prices higher as the price of gold is inversely related to the price of the U.S. dollar. Apart from this, the surge in the coronavirus (COVID-19) numbers in the U.K. and Europe also favoring the yellow-metal bulls. 

The yellow metal prices extended its early-day bullish rally and remained well bids around above the 1,900 level. However, the bullish sentiment around the bullion prices could be associated with the broadly weaker U.S. dollar. The risk-on market sentiment undermined that. Meanwhile, the U.S.’s prevailing political uncertainty also pushed the U.S. dollar down for the second consecutive day. Thus, the U.S. dollar losses could be considered one of the key factors that kept the gold prices higher as the price of gold is inversely related to the price of the U.S. dollar. Apart from this, the surge in the coronavirus (COVID-19) numbers in the U.K. and Europe also favoring the yellow-metal bulls. 

The yellow metal prices extended its early-day bullish rally and remained well bids around above the 1,900 level. However, the bullish sentiment around the bullion prices could be associated with the broadly weaker U.S. dollar. The risk-on market sentiment undermined that. Meanwhile, the U.S.’s prevailing political uncertainty also pushed the U.S. dollar down for the second consecutive day. Thus, the U.S. dollar losses could be considered one of the key factors that kept the gold prices higher as the price of gold is inversely related to the price of the U.S. dollar. Apart from this, the surge in the coronavirus (COVID-19) numbers in the U.K. and Europe also favoring the yellow-metal bulls. 

In the meantime, the U.S. geopolitical tension with the Middle East and China provided an additional boost to the safe-haven metal prices. On the contrary, the optimism over a potential vaccine/treatment for the highly infectious coronavirus and hopes of the further stimulus package keep the market trading sentiment bullish, which could be considered as the key factor that cap further upside momentum for the gold prices. Whereas, the Trump recovery from the COVID-19 infection also offers an additional reason for the market traders to remain hopeful. The yellow metal prices are currently trading at 1,909.87 and consolidating in the range between 1,893.78 – 1,912.96.

Despite the ongoing Sino-US tussle and worries concerning the coronavirus (COVID-19) crisis, the market trading sentiment extended its early-day positive tone and remained supportive by combining factors. As in result, the S&P 500 Futures gain over 0.40%, whereas Japan’s Nikkei slips four points to 23,643 as of writing. Hence, the basis for the risk-on market trading bias could be connected to the positive headlines implying that the discussions between House of Representative Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin over the U.S. stimulus package resumed overnight. While President Donald Trump announced that discussions with Congress have resumed despite stopped the coronavirus (COVID-19) stimulus talks until the Nov. 3 presidential election. However, this helped the market’s risk sentiment and undermined the U.S. dollar’s safe-haven demand.

Apart from this, Trump continues to recover from the COVID-19 infection. Whereas the White House physician Sean Conley said that Trump completed his therapy course, and his condition remains stable since returning to the White House on Monday.

Across the ocean, the tensions between the U.S. and China and the surge in the coronavirus (COVID-19) numbers in the U.K. and Europe keep challenging the market risk-on tone. Although the Dragon Nation has recently started facing global pressure against its treatment of Uighur Muslims, 18 Iranian banks were sanctions off-late by the U.S. State Department to curb Tehran’s financial access help further safe-haven yellow metal.

At the coronavirus front, the ongoing rise in COVID-19 cases globally continues to fuel worries concerning the global economic outlook for the foreseeable tomorrow. As per the latest report, Spanish Prime Minister (PM) Pedro Sánchez announced a state of emergency in Madrid while the calls of closing the pubs and restaurants in the U.K. have been out and clear off-late. Looking forward, the market traders will keep their eyes on updates surrounding the Sino-US tussle and stimulus headlines. Whereas China’s return and Caixin Services PMI will be key to watch. In the meantime, the 


Daily Support and Resistance

S1 1847.32

S2 1874.78

S3 1887.18

Pivot Point 1902.24

R1 1914.64

R2 1929.7

R3 1957.16

Gold has risen distinctly to trade at 1,912 marks, but the neutral candle’s closing below 1,912 levels implies mixed bias amongst traders. Hence, another formation of bearish engulfing or tweezers top pattern may begin bearish correction/retracement in gold. On the downside, gold may gain support at 1,906 and 1,899. Conversely, a bullish breakout of 1,912 stand-level may prolong the buying trend until the 1,919 level.

Entry Price – Sell 1909.74

Stop Loss – 1915.74

Take Profit – 1902.24

Risk to Reward – 1:1

Profit & Loss Per Standard Lot = -$600/ +$750

Profit & Loss Per Micro Lot = -$60/ +$75

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

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Forex Market Analysis

Daily F.X. Analysis, 09th October – Top Trade Setups In Forex – U.K. GDP in Highlights 

On the news front, the eyes will remain on the series of economic events from the U.K., especially the GDP m/m, Goods Trade Balance, and Industrial Production m/m. The sterling may suffer today as the GDP and Construction Output are forecasted to be worse than before. Besides, the Canadian economy will also remain in highlights for the release of Employment Change and Unemployment Rate as both of these are expected to report negative data.

On the news front, the eyes will remain on the series of economic events from the U.K., especially the GDP m/m, Goods Trade Balance, and Industrial Production m/m. The sterling may suffer today as the GDP and Construction Output are forecasted to be worse than before. Besides, the Canadian economy will also remain in highlights for the release of Employment Change and Unemployment Rate as both of these are expected to report negative data.

On the news front, the eyes will remain on the series of economic events from the U.K., especially the GDP m/m, Goods Trade Balance, and Industrial Production m/m. The sterling may suffer today as the GDP and Construction Output are forecasted to be worse than before. Besides, the Canadian economy will also remain in highlights for the release of Employment Change and Unemployment Rate as both of these are expected to report negative data.

Economic Events to Watch Today  


 

EUR/USD – Daily Analysis

The EUR/USD pair was closed at 1.17599 after placing a high of 1.17815 and a low of 1.17325. Overall the movement of the EUR/USD pair remained flat throughout the day. The EUR/USD pair remained flat on Thursday as it closed its day on the same level it was started with. The earlier decline in the EUR/USD pair was due to the rising concerns mentioned in monetary policy accounts. At the same time, the surge in the EUR/USD pair was caused by the latest comments from President Trump about the U.S. stimulus deal.

The ECB issued its September’s monetary policy meeting minutes on Thursday that suggested that ECB could roll out more stimulus later this year as the Bank was more concerned about the pandemic hit economy than analysts had previously thought. 

The minutes revealed that ECB was more concerned about the inflation trajectory and Euro than market participants anticipated. The Euro struggled to find demand after the release of minutes that suggested that further stimulus was not too distant in the future amid an uncertain economic outlook. The ECB officials’ tone in the September meeting minutes was in contrast to the ECB President Christine Lagarde’s speech that showed no concerns about the rising Euro and was optimistic about the Eurozone economy.

Lagarde had said that the strong rebound in activity was broadly in line with previous projections. Whereas, the ECB accounts showed that members preferred the Bank to remain flexible on policy and have concerns about the pace of inflation.

Furthermore, the Vice President of the European Central Bank, Luis de Guindos, said that ECB has to use its tools at its disposal as the coronavirus pandemic depresses inflation expectations. These concerns weighed on single currency euro and dragged the prices of the EUR/USD pair in the early trading session. Whereas, in the late trading session, the U.S. President Donald Trump said that he favored a mini-accord focused on airlines and checks to all Americans. After terminating talks with Democrats for further stimulus, these comments raised hopes that some packages will be announced soon. This weighed on the U.S. dollar and raised the EUR/USD pair in the late trading session and closed the day at the opening level that provided flat movement in the pair.

On the data front, at 10:59 GMT, the German Trade Balance for August dropped to 15.7B from the projected 17.1B and weighed on single currency Euro. Whereas from the U.S. side, the Unemployment claims during last week rose to 840K against the expected 820K and weighed on the U.S. dollar that added strength to EUR/USD pair.

Daily Technical Levels

Support Resistance

1.1734    1.1784

1.1708    1.1808

1.1684    1.1834

Pivot point: 1.1758

EUR/USD– Trading Tip

The EUR/USD pair is consolidating below 1.1780 level, and the closing of candles below the triple top resistance level of 1.1780 level may drive the selling trend in the EUR/USD pair until the support level of 1.1758 and 1.1740 level. Conversely, the bullish breakout of the 1.1780 level can trigger a sharp buying trend until today’s 1.1807 marks.

GBP/USD – Daily Analysis

The GBP/USD pair was closed at 1.29340 after placing a high of 1.29702 and a low of 1.28913. Overall the movement of the GBP/USD pair remained bullish throughout the day. The Governor of the Bank of England’s positive comments and Trump’s support for the U.S. stimulus package pushed GBP/USD pair higher on grounds on Thursday. GBP/USD pair raised and extended its previous day’s gains despite rising concerns over the coronavirus situation in the U.K. and Brexit deal.

On Thursday, the Bank of England Governor Andrew Bailey said that the Bank was not out of power to handle the downside risks faced by the economy as the country focus was shifted to the second wave of the coronavirus crisis. Bailey said that economic recovery has been very uneven, with different sectors gaining more than others. He also said that there was an unprecedented level of uncertainty at the moment, and the risk was very much on the downside, but the Bank was not out of ammunition to fight the crisis yet. 

He added that the Bank has many policy tools that could be used promptly in response to the second wave and third wave if needed. 

Britain experienced a record decline in economic output in the second quarter of this year by a GDP contraction of 19.8%, the biggest drop since the record began in 1955. Bailey said that the country was still in a very big recession, with the economic recovery from the pandemic height very uneven. These comments from Bailey raised British Pound and helped GBP/USD pair to post gains.

The upward trend of the GBP/USD pair was further supported by the latest Trump’s call for a small stimulus package from the U.S. Congress for airline and small businesses. The change of view by Trump over stimulus measure within a day weighed on the U.S. dollar and supported the upward movement of the GBP/USD pair.

 Furthermore, the U.S. dollar was also weighed by the last week’s Unemployment Claims that rose to 840K from the projected 820K last week. The weak U.S. dollar pushed GBP/USD further on the upside on Thursday and extended its gains.

Whereas, the coronavirus cases in the north of England were getting out of control and were under a serious situation. The minister defended the government plans to introduce new restrictions that would include a ban on overnight stays and closing the pubs and restaurants in the worst-affected areas. These potential restrictions to control the coronavirus situation in the U.K. weighed on GBP and capped further gains in GBP/USD pair on Thursday.

On the data front, at 04:01 GMT, the RICS House Price Balance raised to 61% from the expected 39% and supported British Pound that added strength to GBP/USD pair. On the Brexit front, the hopes for a Brexit deal were fading in the market and weighing on British Pound with Boris Johnson giving threats to walk away from talks if the deal was not reached by 15th October. At the same time, E.U. officials have dared Johnson to walk away if he views a deal as impossible. 

According to Bloomberg, the E.U. officials are working on a plan that will find a way to carry on discussions into the second half of October despite some differences remaining on both sides. The uncertain Brexit developments have weighed on British Pound and limited the additional gains in GBP/USD on Thursday.

Daily Technical Levels

Support Resistance

1.2921    1.3013

1.2863   1.3049

1.2828    1.3106

Pivot Point: 1.2956

GBP/USD– Trading Tip

The GBP/USD is trading at 1.2960 level, holding right below an immediate resistance level of 1.2960. The resistance is extended by a double top resistance level on the hourly timeframe. Below the 1.2960 resistance level, the Sterling can trigger selling until the 1.2920 level and 1.2900 level. On the higher side, a bullish breakout of 1.2960 levels can trigger buying until the 1.3000 level. The fundamental side is busy today, and the U.K. economy is due to release series of economic events, with a special focus on the U.K. GDP data. A positive date is likely to drive a bullish breakout until 1.3000. At the same time, the negative GDP figures may lead the GBP/USD price towards 1.29350. 

USD/JPY – Daily Analysis

The USD/JPY pair was closed at 106.026 after placing a high of 106.106 and a low of 105.923. Overall the movement of the USD/JPY pair remained bullish throughout the day. The pair USD/JPY consolidated in a range of around 106 marks on Thursday amid mixed statements from President Trump, House Speaker Pelosi, and Treasury Secretary Mnuchin related to U.S. stimulus measure. 

Earlier this week, President Trump halted further negotiations with Democrats for a stimulus measure package and said he would provide a massive stimulus measure to win the election. However, the next day, Trump backed from his statement amid the need for financial support to airlines and small businesses that had been hit hardest by the pandemic crisis. 

Trump called for a small stimulus aid for airlines, which weighed on the U.S. dollar that was moving higher due to his previous comments. U.S. stocks, however, rallied after the new call for a small package by President Trump. These statements helped the USD/JPY pair to post gains due to improved risk sentiment in the market on Thursday.

On the other hand, the House Speaker Nancy Pelosi said that a mini-accord was not possible without passing a big stimulus in response to calls for a small aid package. These contrasting statements from both sides frustrated the traders and increased concerns in the market. After Pelosi’s comments, the rally in equities that started earlier suffered and was reversed on Thursday.

On the data front, at 04:50 GMT, the Current Account Balance from Japan raised in August to 1.65T against the forecasted 1.50T and supported the Japanese Yen. At 10:02 GMT, the Economy Watchers Sentiment increased to 49.3 from the projected 45.0 and supported the Japanese Yen.

From the U.S. side, the Consumer Credit for August was released at 00:00 GMT, which dropped to -7.2B against the forecasted 14.9B and weighed on the U.S. dollar. At 17:30 GMT, the Unemployment Claims from last week raised to 840K from the anticipated 820Kand weighed on the U.S. dollar.

Despite Japan’s positive data and negative data from the United States, the currency pair USD/JPY managed to remain bullish throughout the day on Thursday. Meanwhile, the risk sentiment was also improved by the latest news that the United States has enough coronavirus vaccine for every American by March. The Health and Human Services (HHS) Secretary Alex Azar said that Americans could use vaccines by March to be available for every one of them. This improved risk sentiment weighed on the safe-haven Japanese Yen and supported the USD/JPY pair on Thursday.

Daily Technical Levels

Support Resistance

105.66    106.18

105.36    106.42

105.13    106.71

Pivot point: 105.89

USD/JPY – Trading Tips

The USD/JPY pair has violated the ascending triangle pattern at 105.800 level, and now the same level is working as a support for the safe-haven pair. On the higher side, the USD/JPY pair can continue its bullish bias until the 106.270 level. However, we can expect USD/JPY to retrace back until the support level of 105.800 level before showing us a bullish trend. Let us wait to buy over 105.800, but the next support will prevail at the 105.450 level. Let’s consider staying bullish over the 105.800 level today, and selling should also be considered only below this level today. Good luck! 

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Forex Signals

EUR/JPY Testing Double Top – Let’s Capture Bearish Correction!

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Entry Price – Sell 124.62
Stop Loss – 125.02
Take Profit – 124.22
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 Breaking Below Double Bottom Support – Quick Outlook! 

The USD/CAD pair was closed at 1.32564 after placing a highof1.33404 and a low of 1.32548. The USD/CAD pair dropped and removed all of its previous day’s gains on Wednesday amid broad-based U.S. dollar weakness and increasing crude oil prices. The U.S. dollar weakness was due to Trump’s latest U-turn on Wednesday’s previous day’s statement. The U.S. President Donald Trump backed his statement of halting the negotiations with Democrats because of continuous disagreement between both parties over the stimulus measure’s size. However, a day after that, Trump again called for more aid to Americans from U.S. congress as airlines and other small businesses were facing huge crises. 

The USD/CAD pair was closed at 1.32564 after placing a highof1.33404 and a low of 1.32548. The USD/CAD pair dropped and removed all of its previous day’s gains on Wednesday amid broad-based U.S. dollar weakness and increasing crude oil prices. The U.S. dollar weakness was due to Trump’s latest U-turn on Wednesday’s previous day’s statement. The U.S. President Donald Trump backed his statement of halting the negotiations with Democrats because of continuous disagreement between both parties over the stimulus measure’s size. However, a day after that, Trump again called for more aid to Americans from U.S. congress as airlines and other small businesses were facing huge crises. 

The USD/CAD pair was closed at 1.32564 after placing a highof1.33404 and a low of 1.32548. The USD/CAD pair dropped and removed all of its previous day’s gains on Wednesday amid broad-based U.S. dollar weakness and increasing crude oil prices. The U.S. dollar weakness was due to Trump’s latest U-turn on Wednesday’s previous day’s statement. The U.S. President Donald Trump backed his statement of halting the negotiations with Democrats because of continuous disagreement between both parties over the stimulus measure’s size. However, a day after that, Trump again called for more aid to Americans from U.S. congress as airlines and other small businesses were facing huge crises. 

This U-turn by Trump raised risk sentiment in the market and supported the riskier Canadian Dollar that ultimately dragged the USD/CAD pair on Wednesday. The hopes for further stimulus dimmed on Tuesday after Trump’s advice to Republicans to stop negotiating with Democrats. These declined hopes added strength to the U.S. dollar on the previous day, but the strength was turned into weakness after Trump backed from his own statement on Wednesday.

The weak U.S. dollar added further pressure on the USD/CAD pair, and the pair posted big declines on Wednesday. Furthermore, the rising Crude oil prices also affected the USD/CAD pair movements on Wednesday. The WTI Crude oil rose on Wednesday despite the negative Crude Oil Inventories report from the United States.

At 19:30 GMT, the Crude Oil Inventories data from Energy Information Administration revealed that U.S. crude oil inventories for the previous week came in as 0.5M against -1.2M. The crude oil prices remained above $40 on Wednesday and added strength in commodity-linked currency Loonie. The rising crude oil prices raised the Canadian Dollar, which added pressure on the USD/CAD pair. Meanwhile, the Ivey Purchasing manager’s Index for September was released from Canada that dropped to 54.3 points against the forecasted 64.5 and weighed on the Canadian Dollar. It kept the losses in the USD/CAD pair limited on Wednesday.

Federal Reserve also released its September meeting minutes on Wednesday that revealed that officials were concerned about economic recovery and called for more stimulus measures to support the economic recovery. Minutes from Fed failed to give any specific direction to the USD/CAD pair on Wednesday, and the pair kept moving in a bearish trend.


Daily Technical Levels

Support Resistance

1.3222 1.3312

1.3192 1.3372

1.3132 1.3402

Pivot point: 1.3282

The USD/CAD is heading lower with a bearish bias at 1.3245 level, having violated the double bottom support level of 1.3250. The closing of the bearish engulfing pattern on the 4-hour timeframe triggered a bearish breakout, which is now likely to open further room for selling until 1.3202 levels. Checkout a trading plan below…

Entry Price – Sell 1.32344

Stop Loss – 1.32744

Take Profit – 1.31944

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 Bullish Bias Continues to Dominate – Three White Soldiers in Play! 

The AUD/USD pair was closed at 0.71398 after placing a high of 0.71513 and a low of 0.70954. Overall the movement of the AUD/USD pair remained bullish throughout the day. After posting massive losses on Tuesday, the AUD/USD pair reversed its direction on Wednesday and started to rise and managed to recover most of its previous daily losses. 

The AUD/USD pair was closed at 0.71398 after placing a high of 0.71513 and a low of 0.70954. Overall the movement of the AUD/USD pair remained bullish throughout the day. After posting massive losses on Tuesday, the AUD/USD pair reversed its direction on Wednesday and started to rise and managed to recover most of its previous daily losses. 

The AUD/USD pair was closed at 0.71398 after placing a high of 0.71513 and a low of 0.70954. Overall the movement of the AUD/USD pair remained bullish throughout the day. After posting massive losses on Tuesday, the AUD/USD pair reversed its direction on Wednesday and started to rise and managed to recover most of its previous daily losses. 

The rise in AUD/USD pair on Wednesday could also be attributed to Wall Street’s rebound amid confusion over the US stimulus plan and uncertainty about the upcoming US Presidential elections. On Tuesday, Trump broke off negotiations with Democrats and said that Republicans would not negotiate on the next round of stimulus measures until after the election. He added that a major stimulus bill would be passed if he wins. This statement from him caused a bid drop in Wall Street on Tuesday over concerns whether he will win or not as stimulus will be dependent on that.

However, on Wednesday, Trump again dismissed his previous statement and called for more financial support for Americans, especially airline workers and small businesses. This news helped US stocks to reverse and move higher and recover some of its previous daily losses. The rebound in Wall Street added in the risk sentiment and helped the riskier AUD/USD currency pair move higher.

The risk sentiment was also supported by the latest announcement from the US Food and Drug Administration (FDA) that said that vaccines’ availability would be delayed until after the US Presidential elections. This news also added strength to the AUD/USD pair due to its riskier nature.

Meanwhile, the Federal Reserve issue minutes from its September meeting, and the minutes failed to provide any meaningful direction to the pair as Fed officials called for further support from US Congress for supporting the economic recovery.

Minutes also showed that economic data were improving, but the economic growth was still bumpy. The President of Minneapolis Federal Reserve, Neel Kashkari, said that if the next round of stimulus package was not approved, then the US economy will face enormous consequences. He stated that further delay would cause a much worse downturn in the economy as there were no moral hazards in delivering more financial aid. The Fed’s comments also raised risk sentiment and helped the riskier Aussie gain traction in the market and add further to the AUD/USD pair’s an upward trend.


Daily Technical Levels

Support Resistance

0.7105 0.7162

0.7072 0.7186

0.7048 0.7219

Pivot point: 0.7129

The AUDUSD is likely to trade with a choppy within a narrow trading range of 0.7203 to 0.7098. On the four hourly timeframes, there’s an upward trendline that extends support at 0.7098 level, and above this, the pair has the potential to bounce off until 0.7175 and 0.7203 level. Conversely, the bearish breakout of 0.7020 can lead AUD/USD pair further lower towards 0.7060 and 0.7010. Good luck!

Entry Price – Buy 0.7162

Stop Loss – 0.7122

Take Profit – 0.7202

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, 08th October – Top Trade Setups In Forex – ECB Monetary Policy Meeting! 

On the news side, the economic calendar is likely to offer another round of central bankers’ speeches worldwide. BOC Gov Macklem, BOE Gov Bailey, and SNB Chairman Jordan are due to speak today. Simultaneously, the day’s main highlight is likely to be ECB Monetary Policy Meeting Accounts 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 Macklem, BOE Gov Bailey, and SNB Chairman Jordan are due to speak today. Simultaneously, the day’s main highlight is likely to be ECB Monetary Policy Meeting Accounts 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 Macklem, BOE Gov Bailey, and SNB Chairman Jordan are due to speak today. Simultaneously, the day’s main highlight is likely to be ECB Monetary Policy Meeting Accounts and Unemployment Claims from the U.S. economy.

Economic Events to Watch Today  

 

EUR/USD – Daily Analysis

The EUR/USD pair was closed at 1.17637 after placing a high of 1.17816 and a low of 1.17248. On Wednesday, the EUR/USD pair recovered most of its previous day’s losses after the U.S. dollar became weak on the back of U.S. President Trump’s support to multiple aid measures. This raised the risk-on market sentiment and helped the EUR/USD pair to gain traction in the market.

On Tuesday, the U.S. president called off negotiations with Democrats over the next round of stimulus measure and spurred the risk-off market sentiment that weighed on currency pair. Just a day after this announcement, Trump flipped and changed his statement and called for checks to all Americans, especially Airlines and payroll protection. 

On the data front, the German Industrial Production for August dropped to -0.2% against the forecasted 1.5% and weighed on Euro. At 11:45 GMT, the French Trade Balance dropped to -7.7B against the projected -6.5B and weighed on single currency Euro. At 13:00 GMT, the Italian Retail Sales for August increased to 8.2% from the projected 3.8% and raised the EUR/USD pair.

Meanwhile, the European Central Bank’s President Christine Lagarde said that ECB would not remove monetary support until the coronavirus crisis remains. She reinforced that the central Bank and fiscal authorities must work together. Lagarde said that ECB should guard against premature withdrawal of stimulus and stated that the risk of more divergence in the euro area would remain even after the coronavirus crisis. Lagarde’s comments did not have any major impact on the EUR/USD currency pair as she did not provide any new information.

Whereas, on the U.S. front, the FOMC published its September meeting minutes on Wednesday. Minutes revealed that economic data was recovering faster than expected from the Q2 decline. The outlook for the Eurozone economy assumed additional fiscal support, and Fed lawmakers urged U.S. Congress to deliver the next round of aid packages. However, the Federal Reserve September meeting minutes also had no major impact on the EUR/USD pairs.

Moreover, as the U.S. President Donald Trump has repeatedly pushed for approving a vaccine before elections, the U.S. Food and Drug Administration (FDA) said that a coronavirus vaccine would not be approved by Election Day. This news raised the risk sentiment in the market and appreciated the EUR/USD pair.

Daily Technical Levels

Support Resistance

1.1729    1.1788

1.1697    1.1815

1.1670    1.1846

Pivot point: 1.1756

EUR/USD– Trading Tip

On Thursday, the EUR/USD is trading with a slight bullish bias around 1.1740 level, holding within an upward channel providing support at 1.1759 level and resistance at 1.1800. Bullish trend continuation may lead the EUR/USD exchange rate towards 1.1840 mark, and continuation of upward movement may lead the pair towards 1.1865. While on the lower side, support stays at 1.1760 and 1.1725 level today. The ECB Monetary Policy Meeting Accounts will be in highlights to determine the next movement in the market.  

GBP/USD – Daily Analysis

The GBP/USD pair was closed at 1.29181 after placing a high of 1.29294 and a low of 1.28449. The GBP/USD pair followed its previous day bearish trend dropped further in the earlier trading session; however, the pair managed to reverse its direction in the late session and posted gains for the day. The improving risk sentiment in the market helped GBP/USD pair to move upward on Wednesday.

The U.S. President Donald Trump flipped from its Tuesday’s statement that negotiations between Republicans and Democrats will not proceed until after the election. On Wednesday, Trump backed from it and called for additional support to Americans, especially Airline workers. This turn back from Trump was not expected and supported the risk sentiment that ultimately added strength to the GBP/USD pair.

Meanwhile, the statement by Michael Gove gave new optimism about the Brexit deal and supported British Pound. The Chancellor of Lancaster’s duchy said that there were 66% chances that a Brexit deal would be reached amid fresh optimism over a breakthrough on one stocking point of state aid. 

It seems like just like state aid, other sticking points will break, and the Brexit deal will be reached before the end of this year. This optimism lifted British Pound in the market against its rivals and pushed GBP/USD pair on the upside. However, some concerning news also circulated about the European Union being hard on fisheries issues in the market. E.U. had hardened its stance over the fisheries issue and said that Britain should be forced to hand over the same amount of fish as it used to do when it was an E.U. member. The rising concerns over fisheries sticking point limited the British Pound gains on Wednesday.

On the data front, at 12:32 GMT, the Halifax HPI from the United Kingdom for September rose to 1.6% from the projected 1.5% and supported British Pound. At 13:30 GMT, the Housing Price Index for the year in August dropped to 2.3% from the forecasted 3.4% and weighed on British Pound.

From the U.S. side, the Federal Reserve issued its meeting minutes from September, which showed that lawmakers were urging U.S. Congress to deliver the next round of stimulus package, and they were stressing the need for it. 

The economic data was recovering much better than expected in Q2, but the fiscal government still needed support. Minutes failed to impress the U.S. dollar, and the pair GBP/USD continued to move higher.

British Pound investors will closely look forward to the speech of Governor of Bank of England Andrew Bailey to find fresh clues about the U.K. economic condition. On the data front, the Unemployment Claims form the U.S. will also greatly impact the GBP/USD pair’s prices on Thursday.

Daily Technical Levels

Support Resistance

1.2921    1.3013

1.2863    1.3049

1.2828    1.3106

Pivot Point: 1.2956

GBP/USD– Trading Tip

The GBP/USD is trading at 1.2930 level, heading north to complete Fibonacci retracement, especially after breaking the bullish channel at 1.2930. For the moment, the same level is anticipated to produce resistance to the GBP/USD pair. We may notice a bullish movement in Sterling, particularly in the wake of bullish correction unto 1.2930. Failure to violate this mark or closing candles beneath the 1.2930 mark is anticipated to drive selling bias unto the 1.2865 level. The MACD and RSI support bullish bias. However, the recent smaller histograms of MACD advise neutral bias among traders. Let’s consider taking buy over 1.2956 or selling below the same.

USD/JPY – Daily Analysis

The USD/JPY closed at 105.962 after placing a high of 106.105 and a low of 105.593. The USD/JPY pair rose to its highest level since 14th September on Wednesday on the back of improved risk sentiment and U.S. dollar strength. Trump’s latest flip from his own words gave a push to risk sentiment in the market and supported the USD/JPY pair’s an upward trend on Wednesday.

The Federal Reserve issued minutes from its recent meeting, which showed that officials were worried about what would happen if financial aid decreased or disappeared. Furthermore, on Wednesday, the Minneapolis Federal Reserve President Neel Kashkari said that the U.S. economy would face enormous consequences if the next round of stimulus packages were not approved soon. He stated that there were no moral hazards in issuing more aid, and further delay would cause a much worse downturn. 

Kashkari added that unlike the 2008 financial crisis, the 2020 pandemic crisis was not born of financial system weakness, so financial aid must be approved to support airlines and other industries that were facing big damages. The comments from Kashkari raised concerns and helped improve risk sentiment that supported the USD/JPY pair’s bullish stance on the day.

Meanwhile, the Bank of Japan’s Governor Haruhiko Kuroda said that Japan’s economy was difficult, but it has started to pick up. He said that the impact of COVID-19 would be watched carefully to take additional steps in monetary easing. He added that Bank would not hesitate to further assess in time of need. Kuroda said that the Consumer Prices in Japan are likely to fall for the time being and will start to increase as the economy will improve. The comments from Kuroda also failed to provide any meaningful impact on the USD/JPY pair prices.

On the data front, the Leading Indicators from Japan were released at 10:00 GMT that came in line with 88.8% expectations. Furthermore, the U.S. President Donald Trump said that Republicans would not proceed with the negotiations on the U.S. Stimulus package with Democrats as they were proposing a $2.4 trillion package and Republicans were ready for only a $1.6 trillion packages. However, on Wednesday, Trump backed from his statement and asked for more aid from U.S. Congress for Americans, especially for airline workers and small businesses.

 

The flip of Trump raised risk sentiment in the market and weighed on the safe-haven Japanese Yen that lifted the USD/JPY pair. Moreover, the risk-sentiment was further bolstered by the news that the US FDA has said that the developed vaccine’s availability will be delayed until after the U.S. presidential elections on 03rd November. It also affected the Japanese Yen due to its safe-haven status and supported the USD/JPY pair is an upward trend.

Daily Technical Levels

Support Resistance

105.66    106.18

105.36    106.42

105.13    106.71

Pivot point: 105.89

USD/JPY – Trading Tips

The USD/JPY pair has violated the ascending triangle pattern at 105.800 level, and now the same level is working as a support for the safe-haven pair. On the higher side, the USD/JPY pair can continue its bullish bias until the 106.270 level. However, we can expect USD/JPY to retrace back until the support level of 105.800 level before showing us a bullish trend. Let us wait to buy over 105.800, but if the pair breaks below this level, the next support will prevail at the 105.450 level. Good luck! 

Categories
Forex Signals

GBP/USD Trades Choppy – Brexit Woes and National Lockdown Hits! 

Today in the European trading hours, the GBP/USD currency pair managed to stop its previous session bearish moves and took bids around closer to the 1.2900 level. However, the bullish trend around the currency pair could be associated with the weaker U.S. dollar. The U.S. dollar lost its early-day gains as the market trading sentiment turned positive, which trimmed the U.S. dollar’s safe-haven bids and contributed to the currency pair gains. 

Today in the European trading hours, the GBP/USD currency pair managed to stop its previous session bearish moves and took bids around closer to the 1.2900 level. However, the bullish trend around the currency pair could be associated with the weaker U.S. dollar. The U.S. dollar lost its early-day gains as the market trading sentiment turned positive, which trimmed the U.S. dollar’s safe-haven bids and contributed to the currency pair gains. 

Today in the European trading hours, the GBP/USD currency pair managed to stop its previous session bearish moves and took bids around closer to the 1.2900 level. However, the bullish trend around the currency pair could be associated with the weaker U.S. dollar. The U.S. dollar lost its early-day gains as the market trading sentiment turned positive, which trimmed the U.S. dollar’s safe-haven bids and contributed to the currency pair gains. 

On the contrary, the downbeat catalysts, like uncertainty over the Brexit talks and concerns over national lockdown, become the key factors that kept the lid on any additional currency pair gains. At this particular time, the GBP/USD currency pair is currently trading at 1.2872 and consolidating in the range between 1.2867 – 1.2930.

Despite concerns about the coronavirus cases in some nations and U.S. President Donald Trump’s decision to end negotiations with Democrats on the economic stimulus package, the investors continued to cheer the latest reports suggesting that the U.S. President Trump showed a willingness to pass $25 billion for Airline Payroll Support and $135 billion for the Paycheck Protection Program for small businesses. This, in turn, provided a fresh boost to the market’s risk sentiment and trimmed the U.S. dollar’s safe-haven bids.

As in result, the broad-based U.S. dollar failed to maintain its positive traction and edged lower, at least for now. Moreover, the losses in the U.S. dollar could also be associated with the fresh risk-on mood. However, the U.S. dollar losses were further bolstered by the renewed concerns about the already shaky U.S. economic recovery. Thus, the losses in the U.S. dollar kept the GBP/USD currency pair higher. Whereas, the U.S. Dollar Index, which tracks the greenback against a basket of six other currencies, was up 0.1% at 93.737.

At the Brexit front, the Brexit related uncertainties remain on the card. As per the latest reports, the Irish Foreign Minister Simon Coveney said that the European Union (E.U.) Chief Brexit Negotiator Michel Barnier will not agree on intensified discussions unless the U.K. moves its stance on state aid. Furthermore, the news that the European states push for a hardliner in fisheries and knowingly delay the negotiations exerted extra downside pressure around the British Pound, which could be considered one of the key factors that kept the lid on any additional gains in the currency pair.

Also capping the pair’s gains could be the COVID-19 worries over the rise in northern England and looming concerns over national lockdown weigh the cable. Looking forward, the market traders keeping their eyes on the Fed Chair Jerome Powell’s scheduled speech. 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 1.2673

S2 1.279

S3 1.286

Pivot Point 1.2907

R1 1.2978

R2 1.3025

R3 1.3142

Entry Price – Buy 1.28932

Stop Loss – 1.28532

Take Profit – 1.29332

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 Trades Bearish Downward – Weaker Dollar in Play! 

During the Wednesday’s Asian trading hours, the USD/JPY currency pair failed to stop its previous sessU.S.n bearish trend and took further offers below the 0.9170 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 renewed concerns about the already shaky U.S. economic recovery. 

During the Wednesday’s Asian trading hours, the USD/JPY currency pair failed to stop its previous sessU.S.n bearish trend and took further offers below the 0.9170 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 renewed concerns about the already shaky U.S. economic recovery. 

During the Wednesday’s Asian trading hours, the USD/JPY currency pair failed to stop its previous sessU.S.n bearish trend and took further offers below the 0.9170 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 renewed concerns about the already shaky U.S. economic recovery. 

Apart from this, the upbeat market sentiment also undermined safe-havU.S. U.S. dollar and contributed to the currency pair losses. On the contrary, the U.S. positive tone around the equity market undermined the safe-haven Swiss franc, which becomes the fU.S.tor that helps the USD/CHF currency pair limit its deeper losses. Currently, the USD/CHF currency pair is currently trading at 0.9168 and consolidating in the range between 0.9160 – 0.9186.

The market trading sentiment remained supported by reports suggesting that the U.S. President Trump showed a willingness to pass $25 billion for Airline Payroll Support and $135 billion for small businesses for the Paycheck Protection Program. The U.S. positive data provided a fresh boost to the market’s risk sentiment and trimmed the U.S. dollar’s safe-haven bids.

However, the optimism around the equity market was unaffected by U.S. President Donald Trump’s decision to cancel the talks with Democrats on theU.S.conomic stimulus package to boost the coronavirus-hit economy. It is worth recalling that the theU.S. President Donald Trump canceled talks with Democrats over the stimulus package, which raised doubts about the U.S. economic recovery. This, in turn, led in no small fallU.S.n the U.S. equity markets on Tuesday, but the reaction turned out to be short-lived.

As a result of the upbeat markeU.S.sentiment, the broad-based U.S. dollar failed to gain any positiU.S. traction during the European trading session. Besides, the losses could be associated with the renewed concerns about the already shakyU.S.S economic recovery, which also undermine the broad-based U.S. dollar. However, the U.S. dollar losses became the key factor that kept the currency pair under pressure. U.S.ereas, the U.S. Dollar Index, which tracks the greenback U.S.ainst a basket of six other currenciU.S., was up 0.1% at 93.737.

Looking forward, the market traders keeping their eyes on theU.S. Chair Jerome Powell’s scheduled speech. 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 0.9127

S2 0.9164

S3 0.9185

Pivot Point 0.9202

R1 0.9222

R2 0.9239

R3 0.9277

The USD/CHF pair is trading with a bearish bias at 0.9165 level, forming a downward channel on the 4-hour timeframe. On the lower side, the bearish trend continuation is likely to drive the selling trend until the 0.9140 support level. At the same time, the MACD is also forming smaller histograms than before, suggesting selling bias in the market. Here’s a quick trade plan… 

Entry Price – Sell 0.91736

Stop Loss – 0.92136

Take Profit – 0.91336

Risk to Reward – 1:1

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

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

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

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

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

Categories
Forex Signals

EUR/JPY Extends Bullish Bias Amid Faded Safe Haven – Signal Update 

During the Wednesday’s Asian trading hours, the EUR/JPY currency pair extended its Asian session winning streak and remain bullish around above 124.50 level mainly due to a fresh and robust rebound in the equity markets, which undermined the Japanese yen’s safe-haven demand and turned out to be the key factor that extending some support to the USD/JPY currency pair. However, market traders digested the US President Donald Trump’s decision to cancel talks with Democrats on the stimulus package. This was witnessed after the steep fall in the US equity markets turned out to be short-lived. 

During the Wednesday’s Asian trading hours, the EUR/JPY currency pair extended its Asian session winning streak and remain bullish around above 124.50 level mainly due to a fresh and robust rebound in the equity markets, which undermined the Japanese yen’s safe-haven demand and turned out to be the key factor that extending some support to the USD/JPY currency pair. However, market traders digested the US President Donald Trump’s decision to cancel talks with Democrats on the stimulus package. This was witnessed after the steep fall in the US equity markets turned out to be short-lived. 

During the Wednesday’s Asian trading hours, the EUR/JPY currency pair extended its Asian session winning streak and remain bullish around above 124.50 level mainly due to a fresh and robust rebound in the equity markets, which undermined the Japanese yen’s safe-haven demand and turned out to be the key factor that extending some support to the USD/JPY currency pair. However, market traders digested the US President Donald Trump’s decision to cancel talks with Democrats on the stimulus package. This was witnessed after the steep fall in the US equity markets turned out to be short-lived. 

On the contrary, the dismal German industrial figures and coronavirus woes in Europe ten undermine the shard currency and become the key factor that kept the lid on any additional gains in the currency pair. As of writing, the EUR/JPY currency pair is currently trading at 124.64 and consolidating in the range between 123.86 – 124.72.

As we already mentioned, the Industrial Production in Germany unexpectedly dropped in August, as per the official data showed on the day, suggesting that the manufacturing sector’s recovery is losing momentum. Apart from this, the bearish sentiment around the shared currency was further bolstered by the World Health Organization’s (WHO) Regional European Director Hans Kluge warnings that Europeans suffer “pandemic fatigue” from the disruption caused by the rapid spread of the coronavirus. Thus, it was seen as one of the key factors that capped further currency pair gains.

On the contrary, the positive mood around the equity markets, triggered by a strong pickup in the US Treasury bond yields, tends to undermine the Japanese yen’s safe-haven demand and becomes one of the key factors that kept the currency pair intra-day high. It is worth recalling that the US President Donald Trump’s yesterday’s decision to cancel negotiations with Democrats over the stimulus package raised doubts about the US economic recovery. This, in turn, led to a large fall in the US equity markets on Tuesday, but the reaction turned out to be short-lived.

Looking forward, the market traders keeping their eyes on the Fed Chair Jerome Powell’s scheduled speech. 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 121.85

S2 122.64

S3 123.04

Pivot Point 123.43

R1 123.83

R2 124.22

R3 125

The EUR/JPY pair is trading with a bullish bias at 124 level as the single currency Euro gained bullish momentum. Simultaneously, the Japanese yen is getting weaker, just like gold amid weakness in the safe-haven appeal. We opened a buying trade over 124.175 level as it was extended by an upward channel on the 2-hour timeframe. Since we are already out, encashing 36 green pips, I would like to take a second trade, perhaps, a selling one below the 125.300 resistance level now. Let’s brace for it! 

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Forex Market Analysis

Daily F.X. Analysis, October 07 – Top Trade Setups In Forex – FOMC Meeting Minutes Ahead! 

It’s going to be another busy day from the news front as the ECB and Fed officials are due to speak during the U.S. and European session today. The ECB President Lagarde is expected to speak at the Paris Europlace online International Financial Forum. Simultaneously, FOMC Member Kashkari is scheduled to discuss racism and the economy at a virtual event series. However, the investor’s focus will also stay on the FOMC Meeting Minutes from the U.S. In can be a big market mover during the mid-U.S. session.

It’s going to be another busy day from the news front as the ECB and Fed officials are due to speak during the U.S. and European session today. The ECB President Lagarde is expected to speak at the Paris Europlace online International Financial Forum. Simultaneously, FOMC Member Kashkari is scheduled to discuss racism and the economy at a virtual event series. However, the investor’s focus will also stay on the FOMC Meeting Minutes from the U.S. In can be a big market mover during the mid-U.S. session.

It’s going to be another busy day from the news front as the ECB and Fed officials are due to speak during the U.S. and European session today. The ECB President Lagarde is expected to speak at the Paris Europlace online International Financial Forum. Simultaneously, FOMC Member Kashkari is scheduled to discuss racism and the economy at a virtual event series. However, the investor’s focus will also stay on the FOMC Meeting Minutes from the U.S. In can be a big market mover during the mid-U.S. session.

Economic Events to Watch Today  

EUR/USD – Daily Analysis

The EUR/USD closed at 1.17824 after placing a high of 1.17973 and a low of 1.17047. Overall the movement of the EUR/USD pair remained bullish throughout the day. The EUR/USD pair rose to its nine-day highest level amid the broad-based U.S. dollar weakness and the strong positive macro-economic data from the European side.

The U.S. dollar was lower after the news about U.S. President Donald Trump’s health came into the market. Another factor helping the risk sentiment was the hopes that U.S. stimulus measures will now be delivered soon as Trump’s infection has brought the virus to Capitol Hill. Both Democrats and Republicans will now realize the urgency of responding to the virus impact and reach a consensus over the aid bill’s size. The renewed stimulus hoped also added strength to the risk sentiment and helped the EUR/USD pair to gain further.

At 13:00 GMT, the Final Services PMI for the whole Eurozone also rose to 48.0 from the anticipated 47.6 and supported the Euro currency. At 13:30 GMT, the Sentix Investor Confidence came in as -8.3 against the forecasted -9.2 and supported Euro. At 14:00 GMT, the Retail Sales from Europe rose to 4.4% from the expected 2.4% and supported Euro.

The Retail Sales in August from Eurozone raised nearly double than expectations to 4.4% and supported the local currency against its rival U.S. dollar and pushed the EUR/USD pair higher.

The Services PMI from all over European nations also rose and showed that the service industry improved from their previous levels and helped Euro to post gains. Furthermore, the Eurogroup meeting and the Financial Affairs Council meeting will start on 5-6th October. The Eurogroup will discuss its priorities under its new presidency and adopt a work program. The Eurozone’s policy priorities in the context of economic recovery and the draft budgets for 2021 will be discussed. Traders will look forward to meeting results for finding fresh clues about the EUR/USD pair in the coming days.

Daily Technical Levels

Support Resistance

1.1726     1.1817

1.1670     1.1854

1.1634     1.1909

Pivot point: 1.1762

EUR/USD– Trading Tip

The EUR/USD is trading at 1.1740 level, having reviolated the upward channel at 1.1750 level, mostly traded in line with our forecast to test the resistance level of 1.1801 level. On Tuesday, the EUR/USD is trading below a resistance level of 1.1801 level. Below this mark, the EUR/USD can plunge until the support resistance level of 1.1760 and 1.1740. In contrast, an upward breakout of 1.1801 can lead the EUR/USD pair towards 1.1840 areas. 

GBP/USD – Daily Analysis

The GBP/USD closed at 1.29726 after placing a high of 1.29920 and a low of 1.28995. Overall the movement of the GBP/USD pair remained bullish throughout the day. The GBP/USD pair extended its previous daily gains and reached its 11-day highest level above 1.299 level amid the broad-based U.S. dollar weakness and renewed Brexit deal hopes along with the improving risk sentiment around the market.

The British Pound to U.S. dollar exchange rate moved higher on rising expectations that the U.K. and E.U. will reach a consensus on the post-Brexit trade deal. The Goldman Sachs forecasted that both parties would reach a deal by early November.

Another factor involved in the Brexit deal’s raised hopes was the report that suggested that E.U. chief negotiator Michel Barnier aimed to hold talks with European coastal states to get the freedom to negotiate terms with the U.K. on the fisheries issue. It is one of the sticking points that have caused a delay in the Brexit deal progress. The Brexit hopes were further bolstered after Prime Minister Boris Johnson and European Commission president Ursula von der Leyen agreed that talks should be intensified to close the significant gap that has stalled the negotiations’ progress. 

All these above optimistic reports helped the local currency and pushed the GBP/USD pair on the above side. The bullish calls were supported by Goldman Sachs that urges investors to buy Sterling. However, the Goldman Sachs Bank did not completely take the prospect of no-deal Brexit out off the table and said that No-Deal Brexit’s perceived probability would remain intact beyond the next European Council meeting in mid-October.

If no deal is reached between the E.U. and U.K., Britain will leave the E.U. without a deal at the end of the transition period on December 31.

Meanwhile, on the data front, at 13:30 GMT, the Final Services PMI from Great Britain for September rose to 56.1 against the 55.1 and supported GBP. The stronger than expected Services PMI showed an expansion in the U.K. services activities and supported the already rising GBP/USD pair.

However, the U.S. dollar was weaker due to the rising risk sentiment on the reports of the quick recovery of the U.S. President Donald Trump from coronavirus infection. The stronger U.S. dollar onboard, along with the improved risk sentiment, also helped the GBP/USD pair’s plunge.

Daily Technical Levels

Support Resistance

1.2921     1.3013

1.2863     1.3049

1.2828     1.3106

Pivot Point: 1.2956

GBP/USD– Trading Tip

On Wednesday, the GBP/USD is trading at 1.2890 level after violating the upward channel at 1.2930. For the moment, the same level is expected to provide resistance to the Cable pair. We may see a slight upward movement in Sterling, especially in the wake of bullish correction until 1.2930. Failure to break this level or closing candles below the 1.2930 level is likely to drive selling bias until the 1.2865 level. The MACD and RSI are supporting selling bias, but the recent smaller histograms of MACD suggest sellers are exhausted, and we may see a slight upward correction in the market today. 

USD/JPY – Daily Analysis

The USD/JPY pair was closed at 105.735 and a high of 105.792 and a low of 105.228. Overall the movement of the USD/JPY pair remained bullish throughout the day. After posting hefty losses on Friday, USD/JPY reversed its direction and moved higher amid the improved risk sentiment and rising optimism in the market. 

The market’s mood was improved after a bumpy weekend related to the concerning news about the health of U.S. President Donald Trump. The Leader of the world’s largest economy was tested positive for coronavirus on Friday and was shifted to a military medical facility for treatment. The Contradictory headlines about his health and its effects on upcoming Presidential elections were raising concerns throughout the weekend. 

This news canceled the above fears and raised optimism around the market, boosting risk sentiment. The U.S. equities and the U.S. Treasury yields raised on the day, giving a boost to the U.S. dollar. Simultaneously, the rising risk sentiment weighed on the safe-haven Japanese Yen and pushed the USD/JPY pair.

On the data front, at 18:45 GMT, the Final Services PMI in September from the United States remained flat with the forecasts of 54.6. While at 19:00 GMT, the highlighted ISM Services PMI from the United States rose to 57.8 against the forecasted 56.3 and supported the U.S. dollar.

The ISM Services PMI showed an expansion in U.S. services activities in September and raised hopes for the quick economic recovery that helped improve the market’s risk sentiment and weighed on the Japanese Yen due to its safe-haven nature and ultimately pushed the USD/JPY pair even higher.

Moreover, the risk sentiment was also supported by the better than expected Retail Sales report from the European Union that doubled the expected number and supported riskier assets. The European stocks raised after this report, and U.S. stocks followed them that raised the market’s risk sentiment and helped the riskier GBP/USD pair gain further in the market.

Meanwhile, the USD/JPY pair’s gains remain limited by the rising fears of a second wave of coronavirus globally in the winter season. From all across the globe, the reports were suggesting a rising number of coronavirus cases. Europe struggled hard to fight against the pandemic and contained the spread as France, and the U.K. saw a continuous rise in daily count on infection cases. 

Meanwhile, other countries like Oman, Israel, India, France, Canada, UK, and Japan also reported a rise in infected people. This raised global concerns, supported the safe-haven appeal, and capped further gains in the USD/JPY pair.

Daily Technical Levels

Support Resistance

105.39     105.91

105.08     106.12

104.88     106.43

Pivot point: 105.60

USD/JPY – Trading Tips

On Wednesday, the USD/JPY is also trading bullish at 105.750 over the stronger U.S. dollar; however, the recent bullish bias in safe-haven Japanese yen drives a slight bearish correction in the market. On the 4 hour chart, the double top resistance level of the 105.800 level keeps the pair bearish. In case of a bullish breakout, the 105.800 resistance level may lead the USD/JPY pair towards the next target level of 106.240. On the lower side, the USD/JPY may find support at 105.400 level today. I will be looking to take a buy position over the 105.810 level. Good luck! 

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Forex Signals

Gold Bullish Bias Continues – Upward Channel Plays! 

Today in the European trading session, the yellow metal prices succeeded in stopping its early-day losing streak and took some modest bids in the last hour near above the 1,915 level. However, the overall bullish tone around the bullion prices could be associated with the broadly weaker U.S. dollar as the gold price is inversely related to the U.S. dollar price. The U.S. dollar was being pressured by the upbeat market mood, as well as, the hopes for the latest U.S. stimulus measures also kept the U.S. dollar under pressure. 

Today in the European trading session, the yellow metal prices succeeded in stopping its early-day losing streak and took some modest bids in the last hour near above the 1,915 level. However, the overall bullish tone around the bullion prices could be associated with the broadly weaker U.S. dollar as the gold price is inversely related to the U.S. dollar price. The U.S. dollar was being pressured by the upbeat market mood, as well as, the hopes for the latest U.S. stimulus measures also kept the U.S. dollar under pressure. 

Today in the European trading session, the yellow metal prices succeeded in stopping its early-day losing streak and took some modest bids in the last hour near above the 1,915 level. However, the overall bullish tone around the bullion prices could be associated with the broadly weaker U.S. dollar as the gold price is inversely related to the U.S. dollar price. The U.S. dollar was being pressured by the upbeat market mood, as well as, the hopes for the latest U.S. stimulus measures also kept the U.S. dollar under pressure. 

Apart from this, the U.S. political uncertainty ahead of the presidential election on November 3 kept challenging the market risk-on tone and helped the safe-haven metal. On the contrary, the overnight optimism that the U.S. President Donald Trump discharged from the hospital becomes the key factor that kept the lid on any additional gains in the yellow metal prices. The yellow metal prices are currently trading at 1,916.65 and consolidating in the range between 1,906.76 – 1,918.09.

However, the market trading sentiment kept struggling to extend its previous session positive bias and remained supportive by the latest optimism over the U.S. President Donald Trump’s return to the White House following a 3-day hospital stay due to coronavirus infection. Apart from this, the expectations of further stimulus from America also positively impacted the market trading sentiment. These hopes could be considered as one of the key factors that undermining safe-haven assets, including gold.

Across the Pond, the tensions between China and the U.S. keep gaining market attention and challenged the market risk-on tone. The renewed US-China tussle at the US-China front keeps challenging the market risk mood, adding further pessimism around the currency pair. As per the latest report, the Dragon Nation continues criticizing the U.S. ban on TikTok and WeChat at the World Trade Organization (WTO). These conflicting headlines might help the safe-haven metal prices by increasing the safe-haven demand in the market.

Elsewhere, the upbeat US ISM Services PMI data failed to leave any major impact on the market as the U.S. dollar hit a fresh low. At the USD front, the broad-based U.S. dollar remained depressed as the investors continue to sell U.S. dollars in the wake of the low safe-haven demand in the market. Looking forward, the market traders keeping their eyes on the Fed Chair Jerome Powell’s scheduled speech. 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 1847.32

S2 1874.78

S3 1887.18

Pivot Point 1902.24

R1 1914.64

R2 1929.7

R3 1957.16

The yellow metal gold continues to trade bullish at 1,911 levels. The formation of candles beyond the 1,908 mark is likely to support the gold today. On the 4 hour chart, candles closing below 1,908 mark are expected to drive more selling till 1,900 levels, while the bullish breakout of 1,917 resistance may ascertain the next trend in the market. Although we opened a sell trade during the European session in gold, we soon realized that it’s not worth holding gold as it’s forming a bullish setup. The bullish bias remains solid above 1,908. Good luck! 

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Forex Signals

EUR/JPY Enters Oversold Zone – Can We Expect Bearish Correction?

The EUR/JPY currency pair extended its Asian session declining streak and remain depressed around below 124.50 level mainly due to the cautious mood around the equity markets, which tend to underpin the Japanese yen’s safe-haven demand and turned out to be the key factor that exerting some pressure on the EUR/JPY currency pair. Apart from this, the latest optimism over the US-Japan relationship provided further support to the Japanese yen, which add further pessimism around the currency pair. 

The EUR/JPY currency pair extended its Asian session declining streak and remain depressed around below 124.50 level mainly due to the cautious mood around the equity markets, which tend to underpin the Japanese yen’s safe-haven demand and turned out to be the key factor that exerting some pressure on the EUR/JPY currency pair. Apart from this, the latest optimism over the US-Japan relationship provided further support to the Japanese yen, which add further pessimism around the currency pair. 

The EUR/JPY currency pair extended its Asian session declining streak and remain depressed around below 124.50 level mainly due to the cautious mood around the equity markets, which tend to underpin the Japanese yen’s safe-haven demand and turned out to be the key factor that exerting some pressure on the EUR/JPY currency pair. Apart from this, the latest optimism over the US-Japan relationship provided further support to the Japanese yen, which add further pessimism around the currency pair. 

On the contrary, the better-than-forecasts German Factory Orders data and positive comments from the ECB policymakers over the EUR economy help the currency pair to limit its deeper losses. As of writing, the EUR/JPY currency pair is currently trading at 1.1780 and consolidating in the range between 1.1766 – 1.1802.

As we already mentioned, the German Factory Orders improved more-than-expected in August, suggesting that the manufacturing sector recovery in Europe’s largest economy is regaining traction. This, in turn, underpinned the shard currency and becomes the key factor that kept the lid on any additional losses in the currency pair. At the data front, the Contracts for goods’ Made in Germany’ came in at +4.5% on the month vs. +2.6% expected and +2.8% last, as per the latest data showed by the Federal Statistics Office showed on the day. Annually, Germany’s Industrial Orders dropped only by 2.2% in the reported month vs. -7.3% previous and -19.9% expectations.

Apart from this, the positive comments from the ECB policymakers over the euro area economy also played its role in capping the currency pair losses. As per the latest comment from the European Central Bank (ECB) policymaker and Irish Central Bank Governor Gabriel Makhlouf, the euro area economy has recovered sharply from the trough seen in April. 

On the contrary, the cautious mood around the equity markets, triggered by the US political uncertainty ahead of the presidential election on November 3, tends to underpin the Japanese yen’s safe-haven demand and becomes one of the key factors that kept the currency pair under pressure. However, the overnight optimism over the US President Donald Trump’s return to the White House recently overshadowed by the prevalent US political uncertainty. In the meantime, the hopes of a compromise over a new coronavirus relief package also failed to boost trading’ sentiment, which is not good for the currency pair.

At the US-China front, the renewed US-China tussle also keeps challenging the market risk mood, which might add further pessimism around the currency pair. As per the latest report, the Dragon Nation continuing criticizing the US ban on TikTok and WeChat at the World Trade Organization (WTO). 

Across the pond, the losses in the currency pair were further bolstered after the US Secretary of State Mike Pompeo said that Japan’s Prime Minister (PM) Yoshihide Suga would strengthen the relationship with the US, which in turn, Japanese yen got impressed and added further downside pressure around the EUR/JPY currency pair.


Technically, the EUR/JPY pair is trading bearish today at 124.200 level, holding over the 38.2% Fibonacci retracement level. Recently, the EUR/JPY formed a bearish engulfing pattern on the 4-hour timeframe that may lead the pair towards 124.055 level. The candle’s closing below 124.055 level may extend the selling trend until the 61.8% Fibonacci retracement level of 123.66. But in case, if the EUR/JPY pair reverses and breaks the resistance level of 124.700 level, then I will consider closing the signal in the loss. Let’s keep an eye on it.

Entry Price – Sell 124.42

Stop Loss – 124.82

Take Profit – 123.92

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/JPY on a Bearish Run – 61.8% Fibonacci Retracement in Play!

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GBP/JPY on a Bearish Run – 61.8% Fibonacci Retracement in Play! 

The GBP/JPY pair failed to keep its early-day bullish momentum and dropped well below the 137 level despite the upbeat market sentiment. However, the prevalent bearish sentiment around the currency pair could be associated with U.K. Housing Equity Withdrawal q/q figures, which fell from -4.5B to -7.7B mark, missing the economists forecast of -4.3B.

Besides this, the currency pair’s declines were further bolstered after the U.S. Secretary of State Mike Pompeo said Japan’s Prime Minister (PM) Yoshihide Suga would strengthen the relationship with the U.S. Thus, the Japanese yen got impressed by the above comments, which adds further downside pressure around the GBP/JPY currency pair. On the contrary, the market upbeat mood, backed by optimism over US President Trump’s health, could be considered one of the key factors that help the currency pair limit its deeper losses. 

At the US-China front, the renewed US-China tussle also keeps challenging the market risk-on mood, which might add further pessimism around the currency pair. As per the latest report, the Dragon Nation recently fueled the Sino-American tussle by criticizing the US ban on TikTok and WeChat at the World Trade Organization (WTO). 

Across the ocean, the currency pair losses got an additional boost after the US Secretary of State Mike Pompeo said Japan’s Prime Minister (PM) Yoshihide Suga is a ‘powerful force for good’, as well as Pompeo further added that he believes Suga will strengthen the relationship with the US.

These positive comments tend to underpin the Japanese yen currency and drag the currency pair lower.

The GBP/JPY has formed a sharp bearish a candle below 137.450 resistance area. Closing of candles below this leve suggests odds of a selling bias in the market, especially when the MACD has also formed a bearish crossover 


Doji candle over a resistance become support level of 1.3245, which signifies weakness in the selling bias. Simultaneously, the USD/CAD’s MACD is forming smaller histograms than before, and it’s an indication of a potential bullish bais. On the lower side, the GBP/JPY pair may drop until 136.500 that marks 38.2% Fibonacci retracement level and even below this until 61.8% Fibo level of 135.940 level. Good luck! 

Entry Price – Sell 136.89
Stop Loss – 137.29
Take Profit – 136.39
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 Resistance Become Support Level – Brace for Bullish Signal

During Tuesday’s Asian trading session, the USD/CAD currency pair managed to stop its previous session losses and refreshed daily highs, around the 1.3270 level due to the mixed sentiment around 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 European session.

During Tuesday’s Asian trading session, the USD/CAD currency pair managed to stop its previous session losses and refreshed daily highs, around the 1.3270 level due to the mixed sentiment around 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 European session.

During Tuesday’s Asian trading session, the USD/CAD currency pair managed to stop its previous session losses and refreshed daily highs, around the 1.3270 level due to the mixed sentiment around 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 European session.

On the contrary, the broad-based U.S. dollar weakness, triggered by the combination of factors, could be considered as 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 1.3269 and consolidating in the range between 1.3241 – 1.3274.

Despite the fears of fresh lockdown restrictions in the U.K. and Europe, the equity market sentiment remained well supported by optimism over the U.S. President Donald Trump’s recovery from COVID-19. As per the latest report, the U.S. President Donald Trump returned to the White House after a 3-night hospital stay due to coronavirus infection, which boosted the market risk tone and undermined the safe-haven U.S. dollar.

Apart from this, the possibilities of a soft Brexit remain high, which keeps investors relax. In the meantime, the U.S. House Speaker Nancy Pelosi and the Treasury Secretary Steve Mnuchin keep struggling even to start the stimulus talks, which add further boost around the market trading sentiment.

As a result, the broad-based U.S. dollar remained depressed as the investors continue to sell U.S. dollars in the wake of the market’s low safe-haven demand. Moreover, the U.S. dollar losses could also be associated with the rising hopes that the U.S. Congress will reach an agreement over the latest stimulus measures to control the economic impact of COVID-19. Thus, the U.S. dollar losses become the key factor that cap further gains in the currency pair. Whereas, the U.S. Dollar Index, which tracks the greenback against a bucket of other currencies, dropped by 0.03% to 93.468 by 9:52 PM ET (1:52 AM GMT).

At the crude oil front, WTI crude oil prices still reporting mixed signals. However, the crude oil prices took some bids during the early day, supported by the marker risk-on mood and weaker U.S. dollar. Besides, the crude oil prices’ gains were further supported by the reports that show growing workers’ strike in Norway that could reduce the country’s production capacity. Thus, the crude oil prices’ upticks underpinned the commodity-linked currency, the Loonie, and exerted some downside pressure on the currency pair.

Looking forward, the market traders keeping their eyes on the Fed Chair Jerome Powell’s scheduled speech. 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 1.3233
S2 1.3272
S3 1.3292
Pivot Point 1.3312
R1 1.3331
R2 1.3351
R3 1.339

The USD/CAD has closed a Doji candle over a resistance become support level of 1.3245, which signifies weakness in the selling bias. At the same time, the USD/CAD’s MACD is forming smaller histograms than before, and it’s an indication of a potential bullish bais. The USD/CAD may find the next resistance at 1.3305 and 1.3330 level while the support is likely to stay at 1.3245 and 1.3205.

Entry Price – Buy 1.32651
Stop Loss – 1.32251
Take Profit – 1.33051
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 Descending Triangle Pattern – Brace for Selling! 

The AUD/USD currency pair failed to extend its early-day bullish moves and dropped below the 0.7200 level despite the upbeat market sentiment and weaker U.S. dollar. Conclusion: as we all know that these both factors tend to support the currency pair; unfortunately, the currency pair was rather unaffected by these positive factors. However, the reason for the ongoing bearish sentiment around the currency pair could be associated with the RBA’s announcement of no rate change, which is seen as negative, or bearish for the AUD currency. 

The AUD/USD currency pair failed to extend its early-day bullish moves and dropped below the 0.7200 level despite the upbeat market sentiment and weaker U.S. dollar. Conclusion: as we all know that these both factors tend to support the currency pair; unfortunately, the currency pair was rather unaffected by these positive factors. However, the reason for the ongoing bearish sentiment around the currency pair could be associated with the RBA’s announcement of no rate change, which is seen as negative, or bearish for the AUD currency. 

The AUD/USD currency pair failed to extend its early-day bullish moves and dropped below the 0.7200 level despite the upbeat market sentiment and weaker U.S. dollar. Conclusion: as we all know that these both factors tend to support the currency pair; unfortunately, the currency pair was rather unaffected by these positive factors. However, the reason for the ongoing bearish sentiment around the currency pair could be associated with the RBA’s announcement of no rate change, which is seen as negative, or bearish for the AUD currency. 

Meanwhile, the losses in the currency pair were further bolstered after the RBA shared a dovish view on the Australian economy, which eventually undermined the Australian dollar and contributed to the currency pair gains. On the contrary, the broad-based U.S. dollar weakness, buoyed by the market risk-on mood, could be considered the key factor that might cap the further downside for the currency pair. Furthermore, the positive reports over the U.S. President Donald Trump’s health also help the currency pair limit its deeper losses. The AUD/USD currency pair is currently trading at 0.7152 and consolidating in the range between 0.7147 – 0.7208.

Despite the ongoing rise in the COVID-19 cases, coupled with the fears of lockdown restrictions, the pair’s loosest trading sentiment has been flashing green since the day started. However, the market trading tone was being supported by the optimism over the U.S. President Trump’s health. As per the latest report, the U.S. President Donald Trump returned to the White House after a three-night hospital stay due to coronavirus infection, which boosted the market risk tone and helped the currency pair to limit its deeper losses. 

However, the concern over the U.S. President Trump’s health remains on the card. It should be noted that the U.S. President Trump released a video to confirm that he will soon trail the presidential election race, after losing a high time off-late. However, the video clip showed that U.S. President Trump’ is still struggling while speaking, raising concerns for his health. Thus, these concerns might keep the market sentiment cautious.

At home, the Reserve Bank of Australia (RBA) kept its cash rate and the targeted yield on 3-year bonds unchanged at 0.25% during the latest announcement. In the meantime, the RBA shared a dovish view on the Australian economy, which undermined the Australian dollar and contributed to the currency pair losses. According to the RBA latest report, Unemployment and underemployment rate are expected to remain high for an extended period, as well as “Wage, and inflation pressures remain very depressed.”.

Furthermore, the reason for the losses in the currency pair could be associated with some repositioning trade ahead of the Australian budget. It should be noted that the Australian government is expected to unveil a fiscal blueprint and introduce other measures to drive the economic recovery from the coronavirus-induced recession. This might weak the AUD demand and drag the currency pair further down.


At the USD front, the broad-based U.S. dollar failed to gain any positive traction on the day amid risk-on market sentiment. Moreover, the U.S. dollar losses could also be associated with the rising hopes that the U.S. Congress will reach an agreement over the latest stimulus measures to control the economic impact of COVID-19. However, the U.S. dollar losses became the key factor that kept the currency pair’s losses limited. Whereas, the U.S. Dollar Index, which tracks the greenback against a bucket of other currencies, dropped by 0.03% to 93.468 by 9:52 PM ET (1:52 AM GMT). Looking forward, the market traders keeping their eyes on the Fed Chair Jerome Powell’s scheduled speech. 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 0.7068

S2 0.7112

S3 0.7138

Pivot Point 0.7157

R1 0.7182

R2 0.7201

R3 0.7245

The AUDUSD is likely to trade with a bearish bias today, as we can see on the hourly timeframe, gold has violated an upward trendline support level of 0.7177 level, and the closing of candles below this level is likely to drive selling bias until 0.7160 and 0.7140 level. Selling bias remains dominant today.

Entry Price – Sell 0.71701

Stop Loss – 0.72101

Take Profit – 0.71301

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 Forex Technical Analysis

AUD/JPY Pair Failed to Gains Positive Traction – Brace for Selling!  

Today in the Asian trading session, the AUD/JPY currency pair failed to keep its early-day bullish momentum and dropped well below the 76.00 level despite the upbeat market sentiment. However, the reason for the prevalent bearish sentiment around the currency pair could be associated with the RBA’s announcement of no rate change, as well as, the RBA has a dovish view on the Australian economy, which could be considered as one of the key factors that undermine the Australian dollar and contributed to the currency pair losses. Across the pond, the currency pair declines were further bolstered after the US Secretary of State Mike Pompeo said Japan’s Prime Minister (PM) Yoshihide Suga would strengthen the relationship with the US. Thus, the Japanese yen got impressed by the above comments, which adds further downside pressure around the AUD/JPY currency pair. 

Today in the Asian trading session, the AUD/JPY currency pair failed to keep its early-day bullish momentum and dropped well below the 76.00 level despite the upbeat market sentiment. However, the reason for the prevalent bearish sentiment around the currency pair could be associated with the RBA’s announcement of no rate change, as well as, the RBA has a dovish view on the Australian economy, which could be considered as one of the key factors that undermine the Australian dollar and contributed to the currency pair losses. Across the pond, the currency pair declines were further bolstered after the US Secretary of State Mike Pompeo said Japan’s Prime Minister (PM) Yoshihide Suga would strengthen the relationship with the US. Thus, the Japanese yen got impressed by the above comments, which adds further downside pressure around the AUD/JPY currency pair. 

Today in the Asian trading session, the AUD/JPY currency pair failed to keep its early-day bullish momentum and dropped well below the 76.00 level despite the upbeat market sentiment. However, the reason for the prevalent bearish sentiment around the currency pair could be associated with the RBA’s announcement of no rate change, as well as, the RBA has a dovish view on the Australian economy, which could be considered as one of the key factors that undermine the Australian dollar and contributed to the currency pair losses. Across the pond, the currency pair declines were further bolstered after the US Secretary of State Mike Pompeo said Japan’s Prime Minister (PM) Yoshihide Suga would strengthen the relationship with the US. Thus, the Japanese yen got impressed by the above comments, which adds further downside pressure around the AUD/JPY currency pair. 

On the contrary, the upbeat market mood, backed by optimism over US President Trump’s health, could be considered one of the key factors that help the currency pair limit its deeper losses. The AUD/USD currency pair is currently trading at 75.64 and consolidating in the range between 75.60 – 76.16. As we already mentioned, the global risk sentiment got a strong boost after US President Trump leaves the hospital and feels “20-years younger”. Despite this, the doubts over Donald Trump’s remain high as a recent video from the American leader showed that he struggles while breathing. Besides, the doubts were further fueled after the White House’s recent confirmation that Trump will be under 24-hour care, and anybody nearing the President will need to wear the PPE kit. 

At the US-China front, the renewed US-China tussle also keeps challenging the market risk-on mood, adding further pessimism around the currency pair. As per the latest report, the Dragon Nation recently fueled the Sino-American tussle by criticizing the US ban on TikTok and WeChat at the World Trade Organization (WTO). 

At the AUD front, the Reserve Bank of Australia (RBA) held its cash rate, and the targeted yield on 3-year bonds unchanged at 0.25% during the latest announcement. In the meantime, the RBA has a dovish view of the Australian economy, which ten underpins the Australian dollar and contributes to the currency pair losses. It should be noted that the RBA confirmed that Unemployment and underemployment are expected to remain high for an extended period. They further added, “Wage and inflation pressures remain very depressed.”

Across the ocean, the currency pair losses got an additional boost after the US Secretary of State Mike Pompeo said Japan’s Prime Minister (PM) Yoshihide Suga is a ‘powerful force for good’, as well as Pompeo further added that he believes Suga will strengthen the relationship with the US. These positive comments tend to underpin the Japanese yen currency and drag the currency pair lower.


Daily Support and Resistance

S1 73.89

S2 74.62

S3 75.05

Pivot Point 75.36

R1 75.78

R2 76.09

R3 76.82

Looking forward, the market traders keeping their eyes on the crude oil supply data from the American Petroleum Institute (API) due later in the day. In the meantime, the updates surrounding the fresh Sino-US tussle, as well as the coronavirus (COVID-19), could not lose their importance.

Entry Price – Sell 75.862

Stop Loss – 76.262

Take Profit – 75.462

Risk to Reward – 1:1

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

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

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

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

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

Categories
Forex Market Analysis

Daily F.X. Analysis, October 06 – Top Trade Setups In Forex – U.S. and ECB Central Bankers to Speak!

On the news front, the eyes will remain on the Central Bank officials such as Fed Chair Powell Speaks and ECB President Lagarde Speaks. The ECB President Lagarde is due to speak at a fireside chat at the Wall Street Journal’s online CEO Summit while Fed Chair Powell is due to talk about the U.S. economic outlook at the National Association of Business Economics annual meeting, via satellite. Audience questions are also expected.

On the news front, the eyes will remain on the Central Bank officials such as Fed Chair Powell Speaks and ECB President Lagarde Speaks. The ECB President Lagarde is due to speak at a fireside chat at the Wall Street Journal’s online CEO Summit while Fed Chair Powell is due to talk about the U.S. economic outlook at the National Association of Business Economics annual meeting, via satellite. Audience questions are also expected.

On the news front, the eyes will remain on the Central Bank officials such as Fed Chair Powell Speaks and ECB President Lagarde Speaks. The ECB President Lagarde is due to speak at a fireside chat at the Wall Street Journal’s online CEO Summit while Fed Chair Powell is due to talk about the U.S. economic outlook at the National Association of Business Economics annual meeting, via satellite. Audience questions are also expected.

Economic Events to Watch Today  

EUR/USD – Daily Analysis

The EUR/USD closed at 1.17824 after placing a high of 1.17973 and a low of 1.17047. Overall the movement of the EUR/USD pair remained bullish throughout the day. On Monday, the EUR/USD pair rose to its nine days highest level amid the broad-based U.S. dollar weakness and the strong positive macro-economic data from the European side.

The U.S. dollar was lower on Monday after the news about U.S. President Donald Trump’s health came into the market. The hopes that Trump will recover soon and be discharged from his military hospital as soon as Monday raised risk sentiment in the market and weighed on the safe-haven U.S. dollar. The fears that U.S. Presidential elections might not take place on schedule also dropped after the reports of Trump’s possible release from the hospital.

Another factor helping the risk sentiment was the hopes that U.S. stimulus measures will now be delivered soon as Trump’s infection has brought the virus to Capitol Hill. Both Democrats and Republicans will now realize the urgency of responding to the virus impact and reach a consensus over the aid bill’s size. The renewed stimulus hoped also added strength to the risk sentiment and helped the EUR/USD pair to gain further.

On the data front, at 12:15 GMT, the Spanish Services PMI for September dropped to 42.4 against the expected 46.4. AT 12:45 GMT, the Italian Services PMI rose to 48.8 from the projected 46.7 and supported Euro. At 12:50 GMT, the French Final Services PMI came in line with the expectations of 47.5. At 12:55 GMT, the German Final Services PMI rose to 50.6 against the forecasted 49.1 and supported Euro. 

At 13:00 GMT, the Final Services PMI for the whole Eurozone also rose to 48.0 from the anticipated 47.6 and supported the Euro currency. At 13:30 GMT, the Sentix Investor Confidence came in as -8.3 against the forecasted -9.2 and supported Euro. At 14:00 GMT, the Retail Sales from Europe rose to 4.4% from the expected 2.4% and supported Euro.

The Retail Sales in August from Eurozone raised nearly double than expectations to 4.4% and supported the local currency against its rival U.S. dollar and pushed the EUR/USD pair higher.

The Services PMI from all over European nations also rose and showed that the service industry improved from their previous levels and helped Euro to post gains. Furthermore, the Eurogroup meeting and the Financial Affairs Council meeting will start on 5-6th October. The Eurogroup will discuss its priorities under its new presidency and adopt a work program. The Eurozone’s policy priorities in the context of economic recovery and the draft budgets for 2021 will be discussed. Traders will look forward to meeting results for finding fresh clues about the EUR/USD pair in the coming days.

Daily Technical Levels

Support Resistance

1.1726    1.1817

1.1670    1.1854

1.1634    1.1909

Pivot point: 1.1762

EUR/USD– Trading Tip

On Monday, the EUR/USD has mostly traded in line with our forecast to test the resistance level of 1.1801 level. On Tuesday, the EUR/USD is trading below a resistance level of 1.1801 level. Below this mark, the EUR/USD can plunge until the support resistance level of 1.1760 and 1.1740. In contrast, an upward breakout of 1.1801 can lead the EUR/USD pair towards 1.1840 areas. Let’s keep an eye on the Fed Chair Powell and ECB President Lagarde Speaks to determine further market trends. The bullish bias remains dominant today.

GBP/USD – Daily Analysis

The GBP/USD pair was closed at 1.29726 after placing a high of 1.29920 and a low of 1.28995. Overall the movement of the GBP/USD pair remained bullish throughout the day. The GBP/USD pair extended its previous daily gains and reached its 11-day highest level above 1.299 level on Monday amid the broad-based U.S. dollar weakness and renewed Brexit deal hopes along with the improving risk sentiment around the market.

The British Pound to U.S. dollar exchange rate moved higher on Monday on rising expectations that the U.K. and E.U. will reach a consensus on the post-Brexit trade deal. The Goldman Sachs forecasted that both parties would reach a deal by early November.

Another factor involved in the Brexit deal’s raised hopes was the report that suggested that E.U. chief negotiator Michel Barnier aimed to hold talks with European coastal states to get the freedom to negotiate terms with the U.K. on the fisheries issue. It is one of the sticking points that have caused a delay in the Brexit deal progress. The Brexit hopes were further bolstered after Prime Minister Boris Johnson and European Commission president Ursula von der Leyen agreed that talks should be intensified to close the significant gap that has stalled the negotiations’ progress. 

All these above optimistic reports helped the local currency and pushed the GBP/USD pair on the above side. The bullish calls were supported by Goldman Sachs that urges investors to buy Sterling. However, the Goldman Sachs Bank did not completely take the prospect of no-deal Brexit out off the table and said that No-Deal Brexit’s perceived probability would remain intact beyond the next European Council meeting in mid-October.

If no deal is reached between the E.U. and U.K., Britain will leave the E.U. without a deal at the end of the transition period on December 31.

Meanwhile, on the data front, at 13:30 GMT, the Final Services PMI from Great Britain for September rose to 56.1 against the 55.1 and supported GBP. The stronger than expected Services PMI showed an expansion in the U.K. services activities and supported the already rising GBP/USD pair on Monday.

However, the U.S. dollar was weaker on Monday due to the rising risk sentiment on the reports of the quick recovery of the U.S. President Donald Trump from coronavirus infection. The reports suggested that Trump would be released from his military hospital as soon as Monday, and he raised the risk sentiment after breaking the concerns that election might suffer from his illness. The weak U.S. dollar onboard, along with the improved risk sentiment, also helped the GBP/USD pair’s gains on Monday.

Daily Technical Levels

Support Resistance

1.2921    1.3013

1.2863    1.3049

1.2828    1.3106

Pivot Point: 1.2956

GBP/USD– Trading Tip

The GBP/USD is holding over a strong resistance become a support level of 1.2954 level. On the 4 hour timeframe, the Cable has formed an upward channel supporting the pair around 1.2950 and 1.2925 level. Whereas, the resistance stays at 1.3003 and 1.3058 level. The MACD and 50 EMA support bullish bias, which may keep the GBP/USD pair bullish over 1.2956 level. Let’s consider taking buying trades over 1.3000 level and bearish below the same level to target 1.2956. 

USD/JPY – Daily Analysis

The USD/JPY pair was closed at 105.735 and a high of 105.792 and a low of 105.228. Overall the movement of the USD/JPY pair remained bullish throughout the day. After posting hefty losses on Friday, USD/JPY reversed its direction and moved higher on Monday amid the improved risk sentiment and rising optimism in the market. 

The market’s mood was improved on Monday after a bumpy weekend related to the concerning news about the health of U.S. President Donald Trump. The Leader of the world’s largest economy was tested positive for coronavirus on Friday and was shifted to a military medical facility for treatment. The Contradictory headlines about his health and its effects on upcoming Presidential elections were raising concerns throughout the weekend. However, after the weekend, the news suggested that Trump was recovering, and he will be released from the hospital as soon as Monday. 

This news canceled the above fears and raised optimism around the market, boosting risk sentiment. The U.S. equities and the U.S. Treasury yields raised on the day, giving a boost to the U.S. dollar. Simultaneously, the rising risk sentiment weighed on the safe-haven Japanese Yen and pushed the USD/JPY pair on Monday.

On the data front, at 18:45 GMT, the Final Services PMI in September from the United States remained flat with the forecasts of 54.6. While at 19:00 GMT, the highlighted ISM Services PMI from the United States rose to 57.8 against the forecasted 56.3 and supported the U.S. dollar.

The ISM Services PMI showed an expansion in U.S. services activities in September and raised hopes for the quick economic recovery that helped improve the market’s risk sentiment and weighed on the Japanese Yen due to its safe-haven nature and ultimately pushed the USD/JPY pair even higher.

Moreover, the risk sentiment was also supported by the better than expected Retail Sales report from the European Union on Monday that doubled the expected number and supported riskier assets. The European stocks raised after this report, and U.S. stocks followed them that raised the market’s risk sentiment and helped the riskier GBP/USD pair gain further in the market.

Meanwhile, the USD/JPY pair’s gains remain limited by the rising fears of a second wave of coronavirus globally in the winter season. From all across the globe, the reports were suggesting a rising number of coronavirus cases. Europe struggled hard to fight against the pandemic and contained the spread as France and the U.K. saw a continuous rise in the number of daily count on infection cases. 

Meanwhile, other countries like Oman, Israel, India, France, Canada, UK, and Japan also reported a rise in the number of infected people. This raised global concerns supported the safe-haven appeal and capped further gains in the USD/JPY pair.

Daily Technical Levels

Support Resistance

105.39    105.91

105.08    106.12

104.88    106.43

Pivot point: 105.60

USD/JPY – Trading Tips

The USD/JPY is also trading bullish at 105.650 over the stronger U.S. dollar; however, the recent bullish bias in safe-haven Japanese yen drives a slight bearish correction in the market. On the 4 hour chart, the double top resistance level of the 105.800 level keeps the pair bearish. In case of a bullish breakout, the 105.800 resistance level may lead the USD/JPY pair towards the next target level of 106.240. On the lower side, the USD/JPY may find support at 105.400 level today. I will be looking to take a buy position over the 105.810 level. Good luck! 

Categories
Forex Signals

USD/JPY Violated Downward Trendline – Quick Update on Signal! 

The USD/JPY currency pair managed to extend its previous session gains and took further bids around well above the mid-105.00 level after posting a one-week low of 104.95 on Friday. However, the currency pair’s sentiment was being supported by the upbeat market mood, which tends to undermine the safe-haven Japanese yen and contributed to the currency pair gains. Apart from this, the Bank of Japan (BOJ) Governor Haruhiko Kuroda shared a negative picture over Japan’s economy and inflation, which added further pressure on the Japanese yen and provided a further boost to the currency pair. 

The USD/JPY currency pair managed to extend its previous session gains and took further bids around well above the mid-105.00 level after posting a one-week low of 104.95 on Friday. However, the currency pair’s sentiment was being supported by the upbeat market mood, which tends to undermine the safe-haven Japanese yen and contributed to the currency pair gains. Apart from this, the Bank of Japan (BOJ) Governor Haruhiko Kuroda shared a negative picture over Japan’s economy and inflation, which added further pressure on the Japanese yen and provided a further boost to the currency pair. 

The USD/JPY currency pair managed to extend its previous session gains and took further bids around well above the mid-105.00 level after posting a one-week low of 104.95 on Friday. However, the currency pair’s sentiment was being supported by the upbeat market mood, which tends to undermine the safe-haven Japanese yen and contributed to the currency pair gains. Apart from this, the Bank of Japan (BOJ) Governor Haruhiko Kuroda shared a negative picture over Japan’s economy and inflation, which added further pressure on the Japanese yen and provided a further boost to the currency pair. 

On the contrary, the broad-based U.S. dollar, triggered by the low safe-haven demand in the market, becomes the key factor that capped further upside momentum for the currency pair. Currently, the USD/JPY currency pair is currently trading at 105.65 and consolidating in the range between 105.28 – 105.68.

As we already mentioned, market trading sentiment has been gaining positive traction since the day started and supported by the optimism over the U.S. President Donald Trump’s recovery from COVID-19. It should be noted that the Trumps’ doctors told that President Trump was doing well and could be discharged from his military hospital as soon as Monday. This positive news urged investors to withdraw their money from safe-haven assets. As in result, undermined the safe-haven Japanese yen and contributed to the currency pair gains.

Apart from this, the updates suggest that the national leader spoke to U.S. Treasury Secretary Steve Mnuchin over the weekend for the COVID-19 stimulus, which raised hopes that deadlock could end sooner. This also favored the risk-tone sentiment and undermined the safe-haven Japanese yen. 

Across the pond, the currency pair’s gains were further bolstered after the Bank of Japan (BOJ) Governor Haruhiko Kuroda shared the gloomy picture over Japan’s economy, which adds additional pressure around the JPY provided further boost to the currency pair. As per the latest report by Bank of Japan (BOJ) Governor Haruhiko Kuroda, “Japanese economy in severe condition but picking up.” He further added, “Uncertainties surrounding the outlook remain extremely high.”

However, the market trading sentiment was unaffected by the fears of fresh lockdown restrictions in Britain and Europe. Whereas, the usage of dexamethasone in President Trump’s treatment keep questioning the market optimists.

At the USD front, the broad-based U.S. dollar extended its previous session bearish bias and failed to gain any positive traction during the European trade Monday amid risk-on market sentiment. Apart from this, the greenback losses could also be associated with Friday’s released mixed U.S. data, which instantly raised doubts over the U.S. economic recovery. However, the U.S. dollar losses might stop bulls from placing any strong position and keep a lid on any further gains for the USD/JPY pair. Whereas, the U.S. Dollar Index Futures that tracks the greenback against a basket of other currencies dropped by 0.13% to 93.787 by 10:12 PM ET (2:12 AM GMT).

Moving ahead, the market traders will keep their eyes on the U.S. economic docket, which will show the release of the ISM Non-Manufacturing PMI. This data might affect the U.S. dollar price dynamics and provide fresh direction for the pair. 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 103.88

S2 104.6

S3 104.98

Pivot Point 105.32

R1 105.7

R2 106.05

R3 106.77

The USD/JPY is also trading neutral at 105.560 amid thin trading volume and China national holiday today. The downward trendline is extending resistance at 105.560 level on the two-hourly timeframes today. The closing of Doji candles below the trendline is suggesting neutral bias among traders. The technical side of USD/JPY may extend the pair lower towards 105.200, and the series for EMA is now developing support at 105.400 level. On the flip side, the bullish breakout of 105.590 level may lead the haven pair towards 105.800. Consider taking buying trade over 105.450 level and selling below the same today. 

Entry Price – Buy 105.602

Stop Loss – 105.202

Take Profit – 106.002

Risk to Reward – 1:1

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

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

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

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

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

Categories
Forex Signals

EUR/JPY on a Bullish Run Despite the Negative Eurozone Inflation – Signal Update

During Monday’s early European trading session, the EUR/JPY currency pair managed to extend its previous session bullish bias and remained bullish near the 123.91 level. However, the bullish bias around the currency pair was supported by the market risk-on sentiment, which undermines the safe-haven Japanese yen and contributes to the currency pair gains. Across the pond, the Bank of Japan (BOJ) Governor Haruhiko Kuroda shared a negative picture over Japan’s economy and inflation, which added further pressure on the Japanese yen and provided an additional boost to the currency pair. 

During Monday’s early European trading session, the EUR/JPY currency pair managed to extend its previous session bullish bias and remained bullish near the 123.91 level. However, the bullish bias around the currency pair was supported by the market risk-on sentiment, which undermines the safe-haven Japanese yen and contributes to the currency pair gains. Across the pond, the Bank of Japan (BOJ) Governor Haruhiko Kuroda shared a negative picture over Japan’s economy and inflation, which added further pressure on the Japanese yen and provided an additional boost to the currency pair. 

During Monday’s early European trading session, the EUR/JPY currency pair managed to extend its previous session bullish bias and remained bullish near the 123.91 level. However, the bullish bias around the currency pair was supported by the market risk-on sentiment, which undermines the safe-haven Japanese yen and contributes to the currency pair gains. Across the pond, the Bank of Japan (BOJ) Governor Haruhiko Kuroda shared a negative picture over Japan’s economy and inflation, which added further pressure on the Japanese yen and provided an additional boost to the currency pair. 

On the other hand, the market risk-on tone also supported the shared currency, which boosted the currency pair. Conversely, the negative Eurozone inflation and expectations for additional European Central Bank (ECB) easing could be considered as one of the major factors that kept the lid on any further gains in the currency pair. At the moment, the EUR/JPY currency pair is currently trading at 123.91 and consolidating in the range between the 123.33 – 123.94.

The market trading sentiment remains well supported by the optimism generated by President Trump’s doctors’ comments that he could be discharged from the coronavirus hospital as soon as Monday. This, in turn, boosted the market sentiment and helped the currency pair pick some fresh bids on the day. However, the market risk-on sentiment was witnessed after the S&P 500 futures jumped and rose more than 0.6% on the day.

Besides, the S&P 500 futures’ upticks were further bolstered by optimism over the US aid package talks. The national leader spoke to US Treasury Secretary Steve Mnuchin over the weekend for the COVID-19 stimulus, which raised hopes that deadlock could end sooner. This also favored the risk-tone sentiment and undermined the safe-haven Japanese yen. 

Apart from this, the reason for the upbeat market sentiment could also be associated with fresh hopes of a soft Brexit, triggered after the weekend meeting between the UK PM Boris Johnson and EU Commission President Ursula von der Leyen. This, in turn, undermined the safe-haven Japanese yen currency and extended support to the currency pair. 

Across the pond, the reason for the currency pair bullish bias could also be associated with the latest reports suggesting that the Bank of Japan (BOJ) Governor Haruhiko Kuroda sounded gloomy over the outlook on Japan’s economy, which keeps the Japanese yen currency under pressure and contributed to the currency pair gains. As per the latest report by Bank of Japan (BOJ) Governor Haruhiko Kuroda, “Japanese economy in severe condition but picking up.” He further added, “Uncertainties surrounding the outlook remain extremely high.”

On the contrary, the ECB’s pressure to do more easing is rising after weak Eurozone inflation, which tends to support the shared currency and becomes the key factor that cap further gains in the currency pair. The cost of living in the shard currency area plunged deeper into the negative territory last month. 

Looking forward, the market traders keeping their eyes on the news concerning the American President’s health. Apart from this, the US ISM Services PMI for September, expected 56.0, will be key to watch. 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 121.85

S2 122.64

S3 123.04

Pivot Point 123.43

R1 123.83

R2 124.22

R3 125

The EUR/JPY pair is trading with a bullish bias at 124.200 levels, having an immediate resistance at 124.250 levels. On the 4 hour timeframe, the EUR/JPY pair faces resistance at 124.349, extended by an extending triple top level. The closing of the recent bullish engulfing candle over 123.850 level supports a strong bullish bias, which is why we have opened a buy signal in the EUR/JPY pair. Check out a trading plan below…

Entry Price – Buy 123.97

Stop Loss – 123.57

Take Profit – 124.37

Risk to Reward – 1:1

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

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

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

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

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

Categories
Forex Signals

AUD/USD Bearish Bias Continues – Ascending Triangle Pattern!

The AUD/USD currency pair succeeded to stop its early-day losses and drew some fresh bids around closer to the 0.7200 level mainly due to the risk-on market sentiment, backed by the positive news over the U.S. President Donald Trump’s recovery from COVID-19, which eventually underpinned the perceived risk currency Australian dollar and contributed to the currency pair gains. As per the latest report, the doctors of U.S. President Donald Trump said that he and his wife could be discharged from the hospital as soon as Monday. 

The AUD/USD currency pair succeeded to stop its early-day losses and drew some fresh bids around closer to the 0.7200 level mainly due to the risk-on market sentiment, backed by the positive news over the U.S. President Donald Trump’s recovery from COVID-19, which eventually underpinned the perceived risk currency Australian dollar and contributed to the currency pair gains. As per the latest report, the doctors of U.S. President Donald Trump said that he and his wife could be discharged from the hospital as soon as Monday. 

The AUD/USD currency pair succeeded to stop its early-day losses and drew some fresh bids around closer to the 0.7200 level mainly due to the risk-on market sentiment, backed by the positive news over the U.S. President Donald Trump’s recovery from COVID-19, which eventually underpinned the perceived risk currency Australian dollar and contributed to the currency pair gains. As per the latest report, the doctors of U.S. President Donald Trump said that he and his wife could be discharged from the hospital as soon as Monday. 

Apart from this, the trading sentiment was further bolstered by the updates suggesting a sooner end to the deadlock over the U.S. aid package talks. Besides, the fresh hopes of a soft Brexit, triggered after the weekend meeting between the UK PM Boris Johnson and E.U. Commission President Ursula von der Leyen, also favors the market risk-tone extended further support to the currency pair. Across the pond, Australia reports suggest a A$7.5B boost for transport infrastructure spending, which also gave additional support to the Australian dollar and helped the currency pair to stay bids on the day. 

In the meantime, the broad-based U.S. dollar selling bias, triggered by the marker risk-on sentiment, also played its major role in supporting the currency pair. Moreover, the U.S. dollar losses were further bolstered by the intensifying doubts over the U.S. economic recovery. On the contrary, the virus news from elsewhere keeps challenging the upbeat market sentiment and becomes the key factor that kept the pressure on any additional gains in the AUD/USD pair. The AUD/USD currency pair is currently trading at 0.7172 and consolidating in the range between 0.7158 – 0.7191.

It is worth recalling that the AUD/USD currency pair has been pressured since Friday after the negative news of U.S. President Donald Trump and his wife’s infection to the coronavirus (COVID-19). However, America’s fresh and positive updates helped the equity market stop its deeper losses on the day. The latest updates from the U.S. suggest that President Trump and his wife recover from the virus-led illness. Moreover, the hopes were further fueled after the comments from doctors off U.S. President Donald Trump, suggesting he and his wife could be discharged from the hospital as soon as Monday. 

Moreover, the market risk tone was further bolstered by optimism over the U.S. aid package talks. These hopes were originated after the U.S. House Speaker Nancy Pelosi showed positive signals about reaching the stimulus deal. On the other hand, the meeting between the UK PM Boris Johnson and E.U. Commission President Ursula von der Leyen over the weekend also offers fresh hopes of the oft Brexit, which also kept the market trading sentiment upbeat. 

Across the ocean, bullish sentiment around the AUD/USD currency pair was further bolstered by the reports suggesting that the Australian Deputy Prime Minister (PM) Michael McCormack is ready to announce a further $7.5 billion new transport infrastructure spending in Tuesday’s federal budget. Looking forward, the market traders keeping their eyes on the news concerning the American President’s health. Apart from this, the US ISM Services PMI for September, expected 56.0, would be key to watch. 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 0.7068

S2 0.7112

S3 0.7138

Pivot Point 0.7157

R1 0.7182

R2 0.7201

R3 0.7245

The AUD/USD pair is trading sideways in a narrow trading range of 0.7190 – 0.7170. The bullish breakout of 0.7190 level can drive buying until the 0.7240 resistance level, while the bearish breakout of 0.7170 can extend selling until 0.7160 and 0.7149 level. Let’s consider waiting for a breakout before taking any trades. Good luck! 

Categories
Forex Market Analysis

Daily F.X. Analysis, October 05 – Top Trade Setups In Forex – Eyes on Eurogroup Meetings! 

The Asian sessions exhibit thin volatility as Chinese banks are closed in observance of National Day. However, the European and the U.S. session may drive some volatility on the back of Services PMI, Euro-group Meetings, and ISM Non-manufacturing PMI data. Let’s keep an eye on them today.

The Asian sessions exhibit thin volatility as Chinese banks are closed in observance of National Day. However, the European and the U.S. session may drive some volatility on the back of Services PMI, Euro-group Meetings, and ISM Non-manufacturing PMI data. Let’s keep an eye on them today.

The Asian sessions exhibit thin volatility as Chinese banks are closed in observance of National Day. However, the European and the U.S. session may drive some volatility on the back of Services PMI, Euro-group Meetings, and ISM Non-manufacturing PMI data. Let’s keep an eye on them today.

Economic Events to Watch Today  

 

 

EUR/USD – Daily Analysis

The EUR/USD pair was closed at 1.17160 after placing a high of 1.17488 and a low of 1.16955. . On Friday, the EUR/USD currency pair posted losses on the back of a strong U.S. dollar and weak Euro due to declining Consumer prices in many countries of the European Union. 

The 19-nation Eurozone saw a decline in Consumer prices on Friday more than forecasted in September and kept the pressure on the European Central Bank over the decision to add further stimulus help in the economy for fighting against the coronavirus crisis. At 11:45 GMT, the French Gov Budget Balance was released that showed a deficit of -165.7B against the previous decline of -151.0B. At 12:00 GMT, the Spanish Unemployment Change showed that the unemployment was reduced by -26.3K figure against the forecasted positive 59.5K and helped Euro gained strength. 

At 14:00 GMT, the Flash estimate for the year of Consumer Price Index for the whole Eurozone declined to -0.3% against the forecasted -0.1% and weighed on Euro. The Core CPI Flash estimate for the year also declined to 0.2% against the forecasted 0.5% and weighed on Euro. The weak inflation rate from Eurozone could be attributed to many reasons, including the temporary sales-tax cut in Germany, subdued demand, and the declining import costs due to the appreciation of the Euro.

The President of the European Central Bank (ECB), Christine Lagarde, has already warned that the region’s prices will slip in the months coming ahead, but she also said they would turn up again in early 2021. The ECB is currently looking to adjust its target inflation of 2% as part of its strategic review as the average inflation in 2022 is projected as 1.3%, which is far below its goal.

Many policymakers have started to lay the ground for further support from the government as one of the executive members of ECB said that there was less risk in delivering too much support than delaying and being shy to deliver. The ECB Vice President Luis de Geindos said last week that there was no need to immediately take any decision; however, in time of need, the Bank could recalibrate its 1.35 trillion euros emergency bond-purchase program. There are also some predictions that this program will be increased by 350 billion euros this year in December. All these things kept the Euro currency under pressure on Friday and added weight on EUR/USD pair prices.

The U.S. dollar was strong across the board after releasing the Unemployment Rate and Revised Consumer Confidence report. At 17:30 GMT, the U.S. job loss rate declined to 7.9% in August against the projected 8.2% and supported the U.S. dollar. The Revised UoM Consumer Sentiment rose to 80.4 against the anticipated 78.9 and supported the U.S. dollar. The U.S. dollar’s strength was also supported by the news that U.S. President Donald Trump and his wife were diagnosed with coronavirus. The U.S. Dollar Index rose to 93.918 level in late Friday after this news raised the safe-haven appeal and the U.S. dollar gained due to its safe-haven status and weighed on EUR/USD pair.

The pair was also down due to low-risk sentiment and declining U.S. stocks that fell sharply after the news that Trump and First Lady tested positive for COVID-19. The S&P 500 futures were down by 1.3%, the Dow Futures were down by 1.2%, and the NASDAQ was down by 1.8%; this weighed further on EUR/USD pair on Friday.

Daily Technical Levels

Support Resistance

1.1724     1.1739

1.1715     1.1745

1.1709     1.1754

Pivot point: 1.1730

EUR/USD– Trading Tip

The EUR/USD is trading over a resistance become a support level of 1.1728 level. Above this level, the EUR/USD can soar until the next resistance level of 1.1740 and 1.1760. Conversely, a bearish breakout of 1.1720 can lead EUR/USD pair towards 1.1711 areas. Let’s keep an eye on the Eurogroup meeting to determine further trends in the market. The bullish bias remains dominant today.

GBP/USD – Daily Analysis

The GBP/USD pair was closed at 1.29345 after placing a high of 1.29538 and a low of 1.28364. The GBP/USD pair remained positive throughout the day on the back of rising hopes that this weekend there might be a breakthrough in the Brexit deal as PM Boris Johnson and ECB President Ursula Von der Leyen are set to meet.

Pound investors see this weekend meeting as a positive sign for the Brexit deal and raised the British Pound value on renewed hopes that this meeting will provide some fresh hopes on the Brexit deal. However, the gains remain limited as there were many uncertainties in the market weighing on the riskier assets.

During the late-night Thursday, the news that U.S. President Donald Trump and his wife, First Lady, tested positive for COVID-19. The uncertainty related to the U.S. President and a candidate for the upcoming U.S. Presidential Election, Donald Trump’s health, raised concerns that it might cause the election’s complications.

Although the U.S. dollar gained in this uncertainty due to its safe-haven status, the gains remain limited and failed to reverse the GBP/USD pair’s an upward trend as the issue affects the U.S. in particular. So, in this situation, investors found other safe-havens like the Japanese Yen comparatively more appealing.

On the data front, the highly awaited Average Hourly Earnings for September declined to 0.1% on Friday against the forecasted 0.5% and weighed on the S.U. dollar. The Non-Farm Employment Change revealed that the U.S. created only 66K jobs in September projected as 900K and weighed heavily on the U.S. dollar. In August, the factory orders of the U.S. also fell to 0.7% from the projected 1.5% and weighed on the U.S. dollar.

Due to negative macroeconomic data, the weak U.S. dollar added further support to the rising GBP/USD prices on Friday. Meanwhile, the pair GBP/USD remained supported by the progress being made in the Brexit process and the U.S. Presidential Elections. The hopes in the market raised that weekend talks could lead to a breakthrough or approve further months of negotiations due to comments that progress has been made, but some significant gaps were still there. 

If some more time is provided for negotiations, then the Brexit deal might get approved, and that is why investors were cheering the news of a meeting between Johnson and Ursula. Furthermore, the GBP/USD pair’s gains were capped by the rising number of coronavirus cases in the U.K. U.K. reported roughly 12,900 cases in a single day that was the biggest daily record that raised fears that a full lockdown could be imposed in the U.K. The U.K. has already imposed a lockdown in some areas, and fears for further restrictions capped further gains in GBP/USD pair. The investors will look forward to Bank of England’s Haldane’s speech on Monday to find fresh clues about the pair’s movement.

Daily Technical Levels

Support Resistance

1.2912     1.2948

1.2896     1.2968

1.2876    1.2984

Pivot point: 1.2932

GBP/USD– Trading Tip

The GBP/USD is holding below a strong resistance level of 1.2954 level after violating the narrow trading range of 1.2835 – 1.2810. Above this resistance level of 1.2954, the GBP/USD may go after the 1.3000 level. The leading technical indicators such as 50 periods EMA and MACD suggest bullish bias in the Sterling; however, the recent closings below the 1.2950 level can drive selling bias until the 1.2885 level today. Consider taking selling trade below 1.2955 level or buying above the same level today. 

USD/JPY – Daily Analysis

The USD/JPY pair was closed at 105.361 after placing a high of 105.664 and a low of 104.941. Overall the movement of the USD/JPY pair remained bearish throughout the day. The pair USD/JPY fell to its seven days lowest level on Friday amid the U.S. President’s shocking news being infected with the coronavirus. In the early trading session on Friday, the pair suffered heavy selling bias; however, during the late trading session, the pair recovered most of its daily losses but remained bearish all day.

On the data front, at 04:30 GMT, the Unemployment Rate from Japan remained flat with 3.0% expectations in August. 

At 04:50 GMT, the Monetary Base for the year from Japan raised to 14.3% from the forecasted 11.9% and supported the Japanese Yen. The Consumer Confidence from Japan was released at 10:00 GMT that raised to 32.7 from the projected 31.6 in September and supported the Japanese Yen. The strong JPY weighed on the USD/JJPY pair, and the pair started to decline on Friday.

However, the pair was already under pressure due to Trump’s late-night announcement being infected by COVID-19. He twitted that he and the Frist Lady of the U.S. were tested positive for coronavirus. This news kept the uncertainty higher in the market as the 2020 U.S. Presidential Elections were coming, and an influencing candidate fell sick of coronavirus. The news came in hours after a top adviser to U.S. President Donald Trump was tested positive for COVID-19.

The bullish bets in the Japanese Yen caught up after this news as the issue was related to the United States and investors found the Yen more appealing. The rising JPY added further pressure on the USD/JPY pair that dropped to its 7-days lowest level. In the late trading session, the U.S. dollar saw some buying that capped some earlier daily losses in the USD/JPY pair on Friday. The U.S. Dollar Index posted gains on Friday with reaching at 93.918 level in the late trading session. The US Stocks also declined on Friday amid the shocking news with S&P futures down by 1.3%, and Dow futures fell by 1.2% along with NASDAQ futures down by 1.8%. 

From the U.S. side, the Average Hourly Earnings for September declined to 0.1% from the anticipated 0.5% and weighed on the U.S. dollar. The Non-Farm Employment Change also dropped to 661K against the projected 900K and weighed on the U.S. dollar. Simultaneously, the Unemployment Rate in August dropped to 7.9% from the forecasted 8.2% that supported the U.S. dollar.

After these releases, the President of Philadelphia Federal Reserve, Patrick Harker, provided his reviews over Fed’s new framework. He said that the employment gap in society would be closed by allowing inflation to move slightly higher. He added that more support would be needed from governments and employers to ensure that lower-income workers could benefit from it. Harker also stressed the need to build an equitable workforce recovery and added that it would not be easy to recover all lost jobs during a pandemic crisis. Harker suggested that a program is needed to help workers provided better jobs and pay. Harker’s positive comments provided some strength to the U.S. dollar that was further supported by the late session positive data release.

At 19:00 GMT, the Revised Consumer Sentiment raised to 80.4 from the projected 78.9 and supported the U.S. dollar. Whereas, the Revised UoM Inflation Expectations came in at 2.6%. These positive updates gave the U.S. dollar strength and capped further losses in the USD/JPY pair.

Daily Technical Levels

Support Resistance

105.34     105.65

105.16     105.78

105.04     105.96

Pivot point: 105.47

USD/JPY – Trading Tips

The USD/JPY is also trading neutral at 105.560 amid thin trading volume and China national holiday today. The downward trendline is extending resistance at 105.560 level on the two-hourly timeframes today. The closing of Doji candles below the trendline is suggesting neutral bias among traders. The technical side of USD/JPY may extend the pair lower towards 105.200, and the series for EMA is now developing support at 105.400 level. On the flip side, the bullish breakout of 105.590 level may lead the safe haven pair towards 105.800. Consider taking buying trade over 105.450 level and selling below the same today. Good luck! 

 

Categories
Forex Signals

AUD/USD Completes 61.8% Fibonacci Retracement – Brace for Buying Signal! 

The AUD/USD currency pair failed to extend its early-day gains and edged lower around below the mid-0.7100 level, mainly due to the risk-off market sentiment triggered by the latest headlines surrounding U.S. President Donald Trump’s infection to the coronavirus (COVID-19). 

The AUD/USD currency pair failed to extend its early-day gains and edged lower around below the mid-0.7100 level, mainly due to the risk-off market sentiment triggered by the latest headlines surrounding U.S. President Donald Trump’s infection to the coronavirus (COVID-19). 

The AUD/USD currency pair failed to extend its early-day gains and edged lower around below the mid-0.7100 level, mainly due to the risk-off market sentiment triggered by the latest headlines surrounding U.S. President Donald Trump’s infection to the coronavirus (COVID-19). 

Furthermore, the renewed concern about the second wave of coronavirus infections also weighed on the market trading sentiment, which eventually undermined the perceived riskier Australian dollar and contributed to the currency pair declines. In the meantime, the U.S. policymakers’ failures to break the deadlock over the COVID-19 stimulus talks also keeps the market trading sentiment under pressure. Across the ocean, the broad-based U.S. dollar strength, supported by the risk-off market sentiment, also played its significant role in lowering the currency pair. 

On the contrary, the upbeat Aussie Retail Sales data showed that the Australian Retail Sales shrank lesser than -4.2% forecast to -4.0% in September, becoming the key factor that helps the currency pair limit its deeper losses. 

Concerns over the resurgence of the coronavirus pandemic have been ruining the hopes of the global economic recovery, which keeps the market trading sentiment under pressure and weakened the perceived riskier Australian dollar. The global death toll has crossed the 1 million mark, and the world is becoming a gloomy place once again. In America, the pandemic has infected more than 7.2 million and killed more than 206,000. Meanwhile, Europe’s worst COVID-19 center, Madrid, is considering fresh lockdown restrictions in the coming days. Moscow’s mayor ordered companies to send at least 30% of their staff home, as many European countries reported new infections records. 

Apart from this, the chatters over the U.S. President Donald Trump’s infection to the coronavirus (COVID-19) and U.S. policymakers’ failures to break the deadlock over the COVID-19 stimulus talks also exerting downside pressure on the market risk tone. However, the Democrats pushed their bill amount of $2.2 trillion through the house to boost the pessimism surrounding the discussions as Republicans are less interested in approving anything beyond a $1.5 trillion package.

On the contrary, the currency pair’s losses were capped by the upbeat Aussie Retail Sales data, which instantly gave some support to the Aussie currency and helped the currency pair limit its deeper losses. At the data front, the Australian Retail Sales beat the preliminary forecast of -4.2% with -4.0% prints in September. In doing so, the data reverses the previous month’s 3.2% advances.


Daily Support and Resistance

S1 0.6878

S2 0.6959

S3 0.6994

Pivot Point 0.704

R1 0.7075

R2 0.7121

R3 0.7202

On the 2-hour timeframe, the AUD/USD pair has completed a 61.8% Fibonacci retracement around the 0.7138 level, and above this, the odds of bullish trend continuation will remain high until the 0.7174 level. The MACD histograms are also becoming weaker and signaling that the sellers are exhausted, and bullish may enter in the market now. Considering this, we have entered a buying trade in the AUD/USD pair. Checkout a trading plan below.  

Entry Price – Buy 0.71649

Stop Loss – 0.71249

Take Profit – 0.72049

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 Exhibits Massive Volatility as Trump Tests COVID Positive – NFP Ahead! 

The yellow metal prices extended its Thursday’s winning streak and took further bids around well above the $1,900 level, mainly due to the risk-off market sentiment. That was witnessed by the negative performance of the S&P 500 Futures. However, the reason for the downbeat trading sentiment could be associated with the worrisome headlines concerning the U.S. and China relationships. In the meantime, the COVID-19 and Brexit story’s pessimistic signals also weighed on the market trading sentiment. This, in turn, helped the gold prices to put safe-haven bids.

The yellow metal prices extended its Thursday’s winning streak and took further bids around well above the $1,900 level, mainly due to the risk-off market sentiment. That was witnessed by the negative performance of the S&P 500 Futures. However, the reason for the downbeat trading sentiment could be associated with the worrisome headlines concerning the U.S. and China relationships. In the meantime, the COVID-19 and Brexit story’s pessimistic signals also weighed on the market trading sentiment. This, in turn, helped the gold prices to put safe-haven bids.

The yellow metal prices extended its Thursday’s winning streak and took further bids around well above the $1,900 level, mainly due to the risk-off market sentiment. That was witnessed by the negative performance of the S&P 500 Futures. However, the reason for the downbeat trading sentiment could be associated with the worrisome headlines concerning the U.S. and China relationships. In the meantime, the COVID-19 and Brexit story’s pessimistic signals also weighed on the market trading sentiment. This, in turn, helped the gold prices to put safe-haven bids.

Furthermore, the latest headlines surrounding U.S. President Donald Trump’s infection of the coronavirus (COVID-19), as well as the U.S. policymakers’ inability to break the coronavirus (COVID-19) stimulus deadlock, provided a further boost to the safe-haven metal prices. On the contrary, the broad-based U.S. dollar strength, backed by the combination of factors, becomes the key factor that capping further upside momentum for the gold. The precious metal prices are currently trading at 1,912.43 and consolidating in the range between 1,889.93 – 1,917.12. However, the bullion traders seem inactive to place any strong position amid Beijing’s Golden Week holidays.

The equity market has been flashing downbeat signals since the day started and ending this week with losses, witnessed by the S&P 500 Futures’ negative performance. However, many downbeat catalysts kept the market trading sentiment under pressure. Be it the worrisome headlines concerning the Brexit or the tension between the US-China, not to forget the coronavirus issues, the market trading sentiment flashing red on the day, which ultimately keeps the safe-haven assets supportive.

At the US-China front, the Sino-China tensions further bolstered after the news that the Americans Senators are pushing for a trade deal with Taiwan over China, which can renew the Sino-American tension. Additionally, the Financial Times (F.T.) spots a massive deployment of military forces in Hong Kong to tame the democracy protest, indicating an acceleration in the Sino-US tension and heavy the market’s mood.

Nevertheless, the grounds for the downbeat trading sentiment could also be attributed to the prevalent coronavirus (COVID-19) woes, which fueled the worries about the global economic recovery. The global death toll has crossed the 1 million mark, and the world is becoming a gloomy place once again. In America, the pandemic has infected more than 7.2 million and killed more than 206,000. Meanwhile, Europe’s worst COVID-19 center, Madrid, is considering fresh lockdown restrictions in the coming days, as well as Moscow’s mayor ordered companies to send at least 30% of their staff home, as many European countries reported records in new infections. This, in turn, exerted downside influence on the market risk tone and contributed to gold gains. On the other hand, the rumors concerning Trump administration employee Hope Hicks’ virus infection and the President’s fears also got infected on the market trading sentiment, which also favors the gold prices. 

The U.S. dollar extended its early-day gains and took further bids on the day due to the Thursday’s upbeat US ADP report, which showed that private-sector employers added 749K new jobs in September. Besides this, the gains in the U.S. dollar was further boosted by the risk-off market sentiment. The Bullish sentiment around the U.S. dollar was further bolstered by the final version of the US GDP print, which showed that the economy declined by 31.4% during the second quarter of 2020 against 31.7% estimated. Apart from this, Chicago PMI beat expectations by a significant margin and surged to 62.4 for September. Looking forward, the traders will keep their eyes on the ongoing drama surrounding the U.S. elections and updates about the U.S. stimulus package. Meanwhile, the U.S. employment data for September will be key to watch on the day.

Daily Support and Resistance

S1 1863.51

S2 1883.52

S3 1894.92

Pivot Point 1903.52

R1 1914.92

R2 1923.53

R3 1943.53

Gold displays excessive volatility as it plunged distinctly from 1,906 mark to 1,890 and then again turned to trade at 1,906. It appears like the traders are bolstering for the high impact of Non-Farm Employment change and from the U.S. economy. Economists are anticipating mixed data; therefore, gold can trade choppy until the data comes out. On the higher side, gold may find resistance at 1,920 upon the breakout of 1,911 level. In contrast, a bearish breakout of 1,900 level can trigger selling unto 1,892. Good luck! 

Categories
Forex Signals

USD/CAD Succeeded to Stop Bearish Streak – Quick Update on Signal! 

Today in the Asian trading session, the USD/CAD currency pair managed to stop its previous day bearish rally and edged higher around well above the 1.3300 level on the day. However, the bullish sentiment around the currency pair was being supported by the combination of factors, and as the broad-based U.S. dollar is back in demand on the day in reaction to a confusing end of the U.S. presidential debate, as well as the U.S. dollar gained further support after the release of upbeat U.S. macro data, which kept the currency pair higher. 

Today in the Asian trading session, the USD/CAD currency pair managed to stop its previous day bearish rally and edged higher around well above the 1.3300 level on the day. However, the bullish sentiment around the currency pair was being supported by the combination of factors, and as the broad-based U.S. dollar is back in demand on the day in reaction to a confusing end of the U.S. presidential debate, as well as the U.S. dollar gained further support after the release of upbeat U.S. macro data, which kept the currency pair higher. 

Today in the Asian trading session, the USD/CAD currency pair managed to stop its previous day bearish rally and edged higher around well above the 1.3300 level on the day. However, the bullish sentiment around the currency pair was being supported by the combination of factors, and as the broad-based U.S. dollar is back in demand on the day in reaction to a confusing end of the U.S. presidential debate, as well as the U.S. dollar gained further support after the release of upbeat U.S. macro data, which kept the currency pair higher. 

Besides, the market prevalent risk-off sentiment, triggered by the latest headlines surrounding U.S. President Donald Trump’s infection of the coronavirus (COVID-19), provided a further boost to the U.S. dollar as its safe-haven status. Across the pond, the reason for the USD/CAD pair’s bullish bias could also be linked to the soft WTI crude oil prices, which undermined the demand for the loonie and contributed to the currency pair gains. 

The stock market had been flashing red since the day session started and going toward ending the day with losses. Nevertheless, the reason could be associated with the U.S. policymakers’ failures to break the deadlock over the COVID-19 stimulus talks. Meanwhile. The rumors are surrounding U.S. President Donald Trump’s infection of the coronavirus (COVID-19), also weighing on the market trading tone, which tends to underpin the safe-haven assets like the U.S. dollar.

The long-lasting fight between the United States and China remain on the play as the South China Morning Post (SCMP) cites the U.S. preference for Taiwan over Beijing, which keeps fueling the relations between the United States and China. In the meantime, the market risk-off tone was further bolstered by the Financial Times (F.T.) headline, suggesting deployment of forces in Hong Kong to tame the democracy protests. This, in turn, added further pessimism around the market trading sentiment and underpinned the safe-haven assets.

The crude oil prices failed to extend its previous session winning streak and remained depressed around $38.00 marks across the pond. Nevertheless, the idea for the bearish bias around the crude oil prices could be attributed to the prevalent worries over the economic recovery after the coronavirus (COVID-19) resurgence in the U.S., Europe, and the U.K. Besides, the rise in OPEC output last month also weighed on crude oil prices. Apart from this, the currency pair’s bullish sentiment was further bolstered by the downbeat monthly Canadian GDP report, which eventually undermined the Candian dollar and extended further support to the currency pair. At the data front, the economy recorded a 3% growth in July, lower than the previous month’s 6.5% rise.

Looking forward, the traders will keep their eyes on the continuous drama surrounding the U.S. elections and updates about the U.S. stimulus package. Meanwhile, the U.S. employment data for September will be key to watch on the day.


Daily Support and Resistance

S1 1.3222

S2 1.3301

S3 1.3344

Pivot Point 1.3381

R1 1.3423

R2 1.3461

R3 1.354

Technically, the USD/CAD is supported around 1.3283 levels extended by a double bottom support level. On the higher side, the USD/CAD may face resistance at 1.3342 level. The USD/CAD two-hour timeframe shows a bullish signal, especially after closing the bullish engulfing candle over 1.3283 support zones. Checkout a trading plan below…

Entry Price – Buy 1.33255

Stop Loss – 1.32855

Take Profit – 1.33655

Risk to Reward – 1:1

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

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

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

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

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

Categories
Forex Market Analysis

Daily F.X. Analysis, October 02 – Top Trade Setups In Forex – Brace for Non-farm Payroll! 

On the news front, it’s going to be a busy day, as the U.S. economy will be releasing it’s Non-farm payroll figures. For all the new members, the NFP is the most awaited data, and it’s expected to show an 8.2% unemployment rate along with a 0.5% average hourly earnings. Such a figure should drive buying in the dollar, and gold may dip on the positive news release today. However, the 900K Non-farm employment change is below 1371K figures beforehand, which may burden on the U.S. dollar. The mixed movement is expected from the dollar today.

On the news front, it’s going to be a busy day, as the U.S. economy will be releasing it’s Non-farm payroll figures. For all the new members, the NFP is the most awaited data, and it’s expected to show an 8.2% unemployment rate along with a 0.5% average hourly earnings. Such a figure should drive buying in the dollar, and gold may dip on the positive news release today. However, the 900K Non-farm employment change is below 1371K figures beforehand, which may burden on the U.S. dollar. The mixed movement is expected from the dollar today.

On the news front, it’s going to be a busy day, as the U.S. economy will be releasing it’s Non-farm payroll figures. For all the new members, the NFP is the most awaited data, and it’s expected to show an 8.2% unemployment rate along with a 0.5% average hourly earnings. Such a figure should drive buying in the dollar, and gold may dip on the positive news release today. However, the 900K Non-farm employment change is below 1371K figures beforehand, which may burden on the U.S. dollar. The mixed movement is expected from the dollar today.

Economic Events to Watch Today  

 

 

EUR/USD – Daily Analysis

The EUR/USD prices were closed at1.17455 after placing a high of 1.17695 and a low of 1.17170. Overall the movement of the EUR/USD pair remained bullish throughout the day. On Thursday, EUR/USD prices rose on the back of upbeat European stock market amid improved risk sentiment due to rising hopes of U.S. stimulus measure and some positive corporate news.

Different European companies reported gains, and increased sales in September gave signals of a significant recovery in the European corporate sector. It raised the European currency against its rival U.S. dollar and supported the upward trend of the EUR/USD pair on Thursday.

Meanwhile, the optimism raised in the market related to the U.S. stimulus measures after U.S. Treasury Secretary Steven Mnuchin confirmed that talks with Nancy Pelosi had a significant breakthrough. However, the differences were still there. The fact that both sides were showing a willingness to reach a consensus and issue the next round of aid raised bars that the U.S. Congress would announce the package sooner.

These hopes in the market supported the risk sentiment that helped the riskier Euro currency to post gains against its rival U.S. dollar and push the EUR/USD pair even higher.

On the data front, at 12:15 GMT, the Spanish Manufacturing PMI for September remained flat with the expectations of 50.8. At 12:45 GMT, the Italian Manufacturing PMI dropped to 53.2 from the forecasted 53.6 and weighed on Euro. At 12:50 GMT, the French Final Manufacturing PMI for September increased to 51.2 against the forecast of 50.9. At 12:55 GMT, the German Final Manufacturing PMI remained flat with the projected 56.4. At 13:00 GMT, the Final Manufacturing PMI for the whole Eurozone also came in line with the expectations of 53.7. The Italian Monthly Unemployment Rate for August dropped to 9.7% against the expectations of 10.2% and supported Euro. 

At 14:00 GMT, the Producer Price Index for Eurozone dropped to 0.1% against the expectations of 0.2% and weighed on local currency. Whereas, the Unemployment Rate for the whole bloc remained flat with forecasts at 8.1%. Most data from Europe on Thursday came in as expected and supported Euro that also added further gains in EUR/USD pair.

On the U.S. side, the U.S. dollar remained depressed on Thursday after the release of negative ISM Manufacturing PMI and Personal Income data. At 17:30 GMT, the Personal Income for August dropped to -2.7% from the expected -2.0% and weighed on the U.S. dollar. At 19:00 GMT, the ISM Manufacturing PMI from the U.S. fell short of expectations of 56.0 and came in as 55.4 and weighed on the U.S. dollar.

The U.S. dollar index also fell by 0.2% on Thursday, and this weakness drove the EUR/USD pair in the upward direction, but the gains remained limited as the European countries were forced to implement renewed restrictions due to the second wave of coronavirus. 

On Wednesday, European countries like Finland, Spain, the Czech Republic, Slovakia, Spain, and Poland implemented new restrictions as the infection cases were continuously increasing. These restrictions kept the local currency under pressure, and the gains in EUR/USD pair limited on Thursday.

Daily Technical Levels

Support Resistance

1.1718      1.1771

1.1691      1.1797

1.1665      1.1824

Pivot point: 1.1744

EUR/USD– Trading Tip

The EUR/USD has violated the upward trendline support level of 1.1728 level, and now the same level is working as a resistance for the EUR/USD. Below this, the EUR/USD can trade with a bearish bias until the 1.1695 level. Conversely, negative NFP figures may lead the EUR/USD price towards the 1.1755 level. The bearish bias remains strong today.

GBP/USD – Daily Analysis

The GBP/USD pair was closed at 1.28859 after placing a high of 1.29785 and a low of 1.28194. Overall the movement of the GBP/USD pair remained bearish throughout the day. After posting gains for six consecutive days, the GBP/USD pair dropped on Thursday amid different headlines in the market related to Brexit talks. The talks between the U.K. and the E.U. suggested some progress in breaking the deadlock in Brexit talks.

The comments after the latest round of talks between the U.K. & E.U. over the post-Brexit deal provided differing reports of progress that suggested that both sides were far from reaching a consensus. This weighed on the Sterling and dragged the pair GBP/USD from its previous daily gains.

The differences over the key sticking issues like fisheries and level playing fields remain intact in the latest trade negotiations. Some reports suggested that a landing zone on state aid has been identified between the E.U. & the U.K., and the only fishing issue was left. Both reports were providing different information, and this confused the market traders and raised fears of a no-deal Brexit that weighed on local currency and ultimately on the GBP/USD pair.

The Cabinet Office Minister Michael Gove said that the U.K. has already made it clear that it will not look into the demands to take control over the access to its waters and fish after the Brexit-transition period. He said that the U.K. would rather leave the E.U. without a Brexit deal than sticking with the E.U.’s Common Fisheries Policies. 

The U.K. has also issued an internal market bill that undermines the withdrawal agreement, and this has already made the E.U. angry. The chances for a no-deal Brexit are increasing day by day as the E.U. has threatened to take legal actions against the U.K. in response to the internal market bill. The pressure over negotiators has been increased to reach a consensus before the European Summit on October 15 as the top E.U. negotiator Michel Barnier will have to address the latest updates on Brexit negotiations.

Meanwhile, on the data front, the Final Manufacturing PMI from the U.K. came in line with the expectations of 54.1. And from the U.S. side, the ISM Manufacturing PMI dropped to 55.4 from the forecasted 56.0 and weighed on the U.S. dollar that capped further losses in the GBP/USD pair on Thursday.

Moreover, on Thursday, the Bank of England’s governor Andy Haldane said that the corporate sector needed to spend more and hire more people to make the economic recovery smooth. He addressed that corporate investments were the missing ingredient in the economic recovery, and it should be met to see further growth in the economy.

Daily Technical Levels

Support Resistance

Support Resistance

1.2812     1.2974

1.2735     1.3057

1.2651     1.3135

Pivot Point: 1.2896

GBP/USD– Trading Tip

The GBP/USD is also supported over a strong trading range of 1.2835 – 1.2810 support levels. Above this range, the Cable will always have strong odds of bouncing off until 1.2901 and 1.2945 level. At the same time, a bearish breakout of 1.2811 level may lead the Sterling towards 1.2764 level. Today, we should look for a buy trade 1.2896 until the next target level of 1.2950 as the market is likely to stay supported. Let’s brace for the U.S. non-farm payroll data today to have further certainty about the pair. 

USD/JPY – Daily Analysis

The USD/JPY closed at 105.543 after placing a high of 105.726 and a low of 105.401. Overall the movement of the USD/JPY pair remained bullish throughout the day. Despite the broad-based U.S. dollar weakness and negative ISM Manufacturing PMI, the USD/JPY pair posted small gains on the day and climbed to a fresh daily high of 105.726 level. The upward momentum in the USD/JPY pair could be attributed to the improved risk sentiment in the market after the hopes for a U.S. stimulus package from the U.S. Congress increased.

On Thursday, the U.S. Treasury Secretary Steven Mnuchin said that he held talks with Nancy Pelosi to discuss the next round of U.S. stimulus measures, and he hoped that it would be released soon. The difference in the size of the package between Republicans & Democrats is still there, but they have agreed that consensus should be quickly reached, so the optimism surrounding the package increased and weighed on the safe-haven Japanese Yen that ultimately added Support to the USD/JPY pair. 

Meanwhile, on the data front, at 04:50 GMT, the Tankan Manufacturing Index came in as -27 against the forecast of -23 and weighed on the Japanese Yen. The Tankan Non-Manufacturing Index also dropped to -12 from the expected -9 and weighed on the Japanese Yen. The negative data from Japan gave strength to the USD/JPY pair on Thursday in early trading hours. 

However, at 05:30 GMT, the Final Manufacturing PMI from Japan rose to 47.7 against the projected 47.3 in September and supported the Japanese Yen that capped further upside momentum in the USD/JPY pair.

From the USD side, at 17:30 GMT, the Core PCE Price Index for August remained flat with the expectations of 0.3%. Personal Spending in August rose to 1.0% against the projected 0.7% and supported the U.S. dollar. The Unemployment Claims from last week also dropped to 837K against the expected 850K and supported the U.S. dollar. The Personal Income in August dropped to -2.7% against the forecasted -2.0% and weighed on the U.S. dollar.

At 18:45 GMT, the Final Manufacturing PMI for September remained flat with the expectations of 53.2. At 19:00 GMT, the ISM Manufacturing PMI dropped to 55.4 from the projected 56.0 in September and weighed on the U.S. dollar. Whereas, Construction Spending in August rose to 1.4% against the expected 0.8% and supported the U.S. dollar. The ISM Manufacturing Prices also rose to 62.8 from the forecasted 59.0 and supported the greenback.

The Wards Total Vehicle Sales from the U.S. also rose to 16.3M from the anticipated 15.5M in September and supported the U.S. dollar.

The U.S. dollar was weak across the board on Thursday, as the U.S. Dollar Index (DXY) posted 0.2% losses on the day. However, the USD/JPY pair still manage to post gains on the day due to positive data releases. Most of the data released on Thursday came in Support of the U.S. dollar except the highlighted data of ISM Manufacturing PMI. But traders tend to ignore the declining PMI and focused more on other positive releases like Personal Spending and Unemployment claims.

Daily Technical Levels

Support Resistance

Support Resistance

105.35    105.70

105.20    105.90

104.99    106.05

Pivot point: 105.55

USD/JPY – Trading Tips

The USD/JPY has violated the double bottom support level of 105.277 level amid an increased safe-haven appeal. The coronavirus news of Trump and his wife testing positive is making the market volatile. The technical side of USD/JPY continues to be bearish around 105.200, and the series for EMA is now extending resistance at 105.550 level. On the flip side, the support holds at 104.800 level. The MACD also supports the selling bias amid a stronger Japanese yen due to increased safe-haven appeal. Bearish trend continuation and violation of the 104.800 level can open additional room for selling until 104.350. Good luck! 

 

Categories
Forex Signals

USD/CAD Selling Bias Weakens – Who’s Up for a Bullish Trade?

During Thursday’s European trading session, the USD/CAD currency pair extended its early-day losses and remain depressed below 1.3300 level despite the broad-based US dollar fresh strength. However, the US dollar took some fresh bids in the wake of upbeat US ADP numbers. Hence, the US dollar fresh strength could be considered as one of the key factors that help the currency pair to limit its deeper losses.

During Thursday’s European trading session, the USD/CAD currency pair extended its early-day losses and remain depressed below 1.3300 level despite the broad-based US dollar fresh strength. However, the US dollar took some fresh bids in the wake of upbeat US ADP numbers. Hence, the US dollar fresh strength could be considered as one of the key factors that help the currency pair to limit its deeper losses.

During Thursday’s European trading session, the USD/CAD currency pair extended its early-day losses and remain depressed below 1.3300 level despite the broad-based US dollar fresh strength. However, the US dollar took some fresh bids in the wake of upbeat US ADP numbers. Hence, the US dollar fresh strength could be considered as one of the key factors that help the currency pair to limit its deeper losses.

On the contrary, the reason for the sharp declines in the currency pair could be attributed to the gains in the crude oil prices which underpinned the commodity-linked currency the Loonie, and contributed to the currency pair’s declines.

Despite the US-China tussle, fears of the coronavirus (COVID-19), and political uncertainty, the global market risk sentiment remained well supported by optimism over a possible coronavirus vaccine. Besides this, the US policymakers inched closer to the much-awaited aid package despite Wednesday’s failed negotiations, which also used a positive impact on the trading sentiment and made the US dollar unable to put any safe-haven bids.

At the USD front, the broad-based US dollar tried very hard to stop its previous session bearish bias, but the losses remain on the cards the remained depressed as the investors continue to sell US dollars on the back of risk-on market sentiment. However, the upbeat US ADP data helped the US dollar to stop its deeper losses, which becomes the key factor that put the lid on any additional losses in the currency pair.

At the crude oil front, WTI crude oil prices took bids above $40, mainly after the surprise draw in the official oil inventories, shown by the Energy Information Administration (EIA). Apart from this, the broad-based US dollar weakness, as well as hopes of American stimulus, also helped the crude oil prices to extend its overnight gains. Hence, the upticks in the crude oil prices underpinned the commodity-linked currency the Loonie and exerted some downside pressure on the currency pair.

Looking ahead, the market traders will keep their focus on the key US ISM Manufacturing PMI for September, and the weekly Jobless Claims data. Across the pond, Australia’s AiG Performance Mfg Index and Commonwealth Bank Manufacturing PMI will also be key to watch. Whereas, the headlines concerning Brexit, pandemic, and the US Presidential Election will not lose their importance.


Daily Support and Resistance

S1 1.3187

S2 1.3249

S3 1.3276

Pivot Point 1.3311

R1 1.3339

R2 1.3373

R3 1.3435

The technical side of the USD/CAD seems bearish as the pair is trading at 1.3287 level, holding right above the double bottom level of 1.3282. On the 2 hour timeframe, the violation of the 1.3282 level, we may see find selling until the 1.3236 level today, and that’s a level which can help us capture a bullish bias around 1.3236. The MACD is supporting bearish bias, but the recent histograms are becoming smaller and smaller, indicating a weakening selling trends. Therefore, we have placed a buy limit of around 1.3252. Check out a full trade plan below…

Entry Price – Buy Limit 1.32523

Stop Loss – 1.32123

Take Profit – 1.32923

Risk to Reward – 1:1

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

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

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

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

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

Categories
Forex Signals

AUD/USD Pair Succeeded to Extend Asian Session Gains – Update on Signal!

Today in the early European trading session, the AUD/USD currency pair extended its Asian session winning streak and took further bids around an intraday high closer to 0.7200 level mainly due to the risk-on market sentiment, backed by the on-going optimism over treatment for the highly infectious coronavirus. Moreover, the expectations of U.S. stimulus also favored the market’s risk-on, which underpinned the perceived risk currency Australian dollar and contributed to the currency pair gains.

Today in the early European trading session, the AUD/USD currency pair extended its Asian session winning streak and took further bids around an intraday high closer to 0.7200 level mainly due to the risk-on market sentiment, backed by the on-going optimism over treatment for the highly infectious coronavirus. Moreover, the expectations of U.S. stimulus also favored the market’s risk-on, which underpinned the perceived risk currency Australian dollar and contributed to the currency pair gains.

Today in the early European trading session, the AUD/USD currency pair extended its Asian session winning streak and took further bids around an intraday high closer to 0.7200 level mainly due to the risk-on market sentiment, backed by the on-going optimism over treatment for the highly infectious coronavirus. Moreover, the expectations of U.S. stimulus also favored the market’s risk-on, which underpinned the perceived risk currency Australian dollar and contributed to the currency pair gains.

Besides this, the currency pair got an extra boost mainly after the welcome number of China PMIs and US ADP, which extended further support to the market trading sentiment. Across the pond, the broad-based U.S. dollar weakness, triggered by the market risk-on tone, also played a significant role in supporting the currency pair. On the contrary, the renewed tension between the US-China, as well as, the rising COVID-19 cases all over the Europe and U.S. keeps challenging the upbeat market mood and becomes the key factor that keeps the lid on any additional gains in the currency pair. At this time, the AUD/USD currency pair is currently trading at 0.7 86and consolidating in the range between 0.7155 – 0.7198.

However, the reason for the risk-on market sentiment could be associated with the renewed probabilities of the further stimulus package as well as the hopes of the coronavirus (COVID-19) vaccine also favoured the market risk tone, which tends to underpin the perceived risk currency Australian dollar and helps the pair to put strong bids. The U.S. Congress tries hard to agree on the coronavirus (COVID-19) aid package with Republicans up for $1.5-$1.6 trillion against Democratic demand of $2.2 trillion. While the immediate discussions have failed, the policymakers pushed back the final voting on the stopgap funding, giving indirect hints of one more day for the politicians to agree on the much-awaited stimulus. Across the pond, the call of the Japanese stimulus also helps the risk-tone sentiment on the day.

On the other hand, the market trading sentiment was further bolstered by optimism over a possible vaccine and treatment for the highly infectious coronavirus. Furthermore, the Brexit-positive sentiment, backed by the reports suggesting that the E.U. stepped back from warnings to leave the trade and security talks, also exerted a positive impact on the market trading sentiment. This, in turn, underpinned the perceived risk currency Australian dollar and contributed to the currency pair gains.

As in result, the Wall Street benchmark succeeded to extend its overnight positive tone, despite stepping back during the last hour. While the U.S. 10-year Treasury yields also gained over 4-basis points (bps) to 0.686% on the day. The U.S. dollar remains depressed during the Asian session amid market risk-on sentiment. On the other hand, the cautious mood of traders ahead of the U.S. presidential election also weighed on the U.S. dollar.

The fears of the coronavirus (COVID-19) and political uncertainty are also challenging the market risk-on tone, which becomes the key factor that kept the lid on any additional gains in the currency pair. Elsewhere, the rising COVID-19 cases are causing major problems all over the U.S., Europe, and the U.K., which keep fueling the fears of lockdown restriction. As per the latest report, the coronavirus has infected more than 7.2 million and killed more than 206,000 people in the United States.

Looking ahead, the market traders will keep their focus on the key US ISM Manufacturing PMI for September, and the weekly Jobless Claims data. Across the pond, Australia’s AiG Performance Mfg Index and Commonwealth Bank Manufacturing PMI will also be key to watch. Whereas, the headlines concerning Brexit, pandemic, and the U.S. Presidential Election will not lose their importance.


Daily Support and Resistance

S1 0.7025

S2 0.7106

S3 0.7137

Pivot Point 0.7186

R1 0.7217

R2 0.7266

R3 0.7346

The AUD/USD has violated the double top resistance level of 0.7142, and bullish crossover of this level makes 0.7142 a support for the AUD/USD pair. On the higher side, the AUD/USD pair may go after the next resistance area of 0.7235 level. Conversely, the bearish breakout of 0.7142 may drive further selling until 0.7084. Bullish bias seems stronger today. 

Entry Price – Buy 0.71844

Stop Loss – 0.71444

Take Profit – 0.72244

Risk to Reward – 1:1

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

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

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

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

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

Categories
Forex Market Analysis

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

On the news front, the eyes will remain on the series of services PMI figures from the Eurozone and the U.K. Most of the data is expected to be neutral; however, the U.S. Unemployment Claims and Manufacturing PMI will be the main highlight of the day. Claims are expected to perform better, while the ISM Non-Manufacturing PMI is expected to report negative figures. Mixed bias prevail for the U.S. dollar today.

On the news front, the eyes will remain on the series of services PMI figures from the Eurozone and the U.K. Most of the data is expected to be neutral; however, the U.S. Unemployment Claims and Manufacturing PMI will be the main highlight of the day. Claims are expected to perform better, while the ISM Non-Manufacturing PMI is expected to report negative figures. Mixed bias prevail for the U.S. dollar today.

On the news front, the eyes will remain on the series of services PMI figures from the Eurozone and the U.K. Most of the data is expected to be neutral; however, the U.S. Unemployment Claims and Manufacturing PMI will be the main highlight of the day. Claims are expected to perform better, while the ISM Non-Manufacturing PMI is expected to report negative figures. Mixed bias prevail for the U.S. dollar today.

Economic Events to Watch Today  

 

 

EUR/USD – Daily Analysis

The EUR/USD closed at 1.17208 after placing a high of 1.17548 and a low of 1.16844. After posting gains for two consistent days, the EUR/USD pair dropped on Wednesday amid the broad-based U.S. dollar strength. Another major reason behind the fall in EUR/USD prices on Wednesday was the latest comments from ECB President Lagarde of talking up an idea of moving toward the average inflation targeting measure like the U.S. Fed to fight against pandemic recession. 

Lagarde said on Wednesday that ECB was considering following the footsteps of the U.S. Federal Reserve to ditch its current policy that sets the target of inflation below but close to 2%. The debate over whether ECB should follow the Fed in setting an average inflation target and let inflation run above 2% target came in as analysts suggested that the central bank was running out of tools. Another reason could be a low appetite for cutting interest rates below zero. These dovish hopes kept the market risk sentiment under pressure, and the Euro currency suffered that led to declining EUR/USD pair prices on Wednesday. 

Meanwhile, at the data front, the German Import Prices in August rose to 0.1% from the projected 0.0% and supported Euro. At 10:59 GMT, the German Retail Sales for August also rose to 3.1% from the anticipated 0.4% and supported Euro. 

The French Consumer Spending for August rose to 2.3% from the anticipated -0.2% and supported shared currency. The French Prelim Consumer Price Index (CPI) for September declined to -0.5% against the projected -0.3% and weighed on Euro. 

At 12:55 GMT, the German Unemployment Change in August came in as -8K against the forecasted -7K. At 14:00GMT, the Italian Prelim CPI for September declined to -0.6% against the forecasted -0.5% and weighed on single currency Euro. 

On the U.S. front, at 17:15 GMT, the ADP Non-Farm Employment Change showed a job creation of 749K against the forecasted 650K in September and supported the U.S. dollar. At 17:20 GMT, the Chicago Purchasing Managers Index (PMI) advanced to 62.4 from the forecasted 52.0 and supported the greenback. At 17:30 GMT, the Final GDP for the quarter came in as -31.4% against the projected -31.7% and supported the U.S. dollar. At 19:00 GMT, the Pending Home Sales also rose to 8.8% from the projected 3.1% and supported the U.S. dollar.

Despite the strong economic data from Europe, the pair EUR/USD continued declining on Wednesday as the focus has been shifted towards the U.S. dollar and its strength. The strong greenback managed to keep the pair under heavy pressure on Wednesday amid several factors supporting U.S. dollar gains. Furthermore, the U.S. dollar also gained its strength as the hopes for a new round of U.S. stimulus measures finally increased. Steven Mnuchin, the U.S. Treasury Secretary, said that the talks between Democrats and Republicans over the next round of the coronavirus aid package have resumed. This raised optimism in the market that both parties will reach a consensus soon given Tuesday’s statement of Lagarde in which she reiterated that she had high hopes that both parties will reach a deal by the end of this week. The broad-based greenback’s strength kept weighing on the EUR/USD pair on Wednesday.

Daily Technical Levels

Support Resistance

1.1686       1.1772

1.1630       1.1802

1.1600       1.1858

Pivot Point: 1.1716

EUR/USD– Trading Tip

The bullish bias of the EUR/USD continues to play in the market as the pair is trading at 1.1740 level. On the higher side, the EUR/USD pair may find resistance at 1.1750 level along with a support level of 1.1716 level. A bearish breakout of the 1.1715 level can extend selling bias until the 1.1694 level today. Overall, the price action of the EUR/USD pair will be highly influenced by the series of manufacturing PMI figures not only from the Eurozone but also from the U.S. economy. Bullish bias will be dominant upon the breakout of 1.1750.

GBP/USD – Daily Analysis

The GBP/USD closed at 1.29232 after placing a high of 1.29424 and a low of 1.28051. Overall the movement of the GBP/USD pair remained bullish throughout the day. The GBP/USD pair continued its bullish streak for the 6th consecutive days on Wednesday despite the broad-based U.S. dollar weakness. The upward momentum of GBP/USD could be attributed to the renewed Brexit hopes and positive comments from Haldane. 

On Wednesday, the U.S. Dollar Index remained flat at 93.92 despite the strong macroeconomic releases on the day. At 17:15 GMT, the ADP Non-Farm Employment Change from the United States rose to 749K against the expectations of 650K and supported the U.S. dollar. At 17:20 GMT, the Chicago PMI also rose to 62.4 from the expected 52.0. At 17:30 GMT, the Final GDP for the quarter showed a contraction of -31.4% in the second quarter against the projected contraction of -31.7%. At 19:00 GMT, the Pending Home Sales for August rose to 8.8% against the forecasted 3.1%. All these positive data from the U.S., but still GBP/USD pair managed to post gains on the back of high Brexit hopes. 

On Wednesday, the Cable moved higher as the latest headlines out of Brexit negotiations were positive. The E.U.’s chief negotiator Michel Barnier praised the improved atmosphere around the post-Brexit deal on Wednesday. The member states ordered France to back down from its demands to secure status quo access to Britain’s fishing grounds. Barnier said that a breakthrough could be made during this week’s round of negotiation as both sides had been able to engage more closely on fishing and state aid issues.

Apart from Brexit renewed hopes, the comments from Bank of England’s chief economist Andy Haldane also provided support to the rising GBP/USD pair. Haldane said that Britain’s economy was being held back by the overly pessimistic views about the coronavirus crisis. He provided some relief when he said that none of the conditions that would lead to negative interest rates had been met. 

It means his comments ruled out the option of negative interest rates in the current period when the country is facing a healthy and robust wave of coronavirus pandemic. These positive comments from Haldane supported British Pound that pushed the GBP/USD pair on the upside for the 6th consecutive days.

From the U.K., the BRC Shop Price Index for the year dropped to -1.6% against the forecasted -1.4% and weighed on Sterling. At 10:59 GMT, the Nationwide HPI for September rose to 0.9% against the forecasted 0.5% and supported the Sterling that added gains in GBP/USD pair. At 11:00 GMT, the Current Account Balance from the U.K. showed a deficit of 2.8B against the forecasted deficit of 1.0B and weighed on British Pound. The Final GDP for the quarter showed a contraction of -19.8% against the forecasted contraction of -20.4% and supported the local currency GBP that ultimately provided added support to GBP/USD pair’s gains on Wednesday. At 11:02 GMT, the Revised Business Investment for the quarter came in as -26.5% against the forecasted -31.4% and supported the upward momentum of the GBP/USD pair.

Daily Technical Levels

Support Resistance

1.2821       1.2902

1.2781       1.2943

1.2740       1.2983

Pivot point: 1.2862

GBP/USD– Trading Tip

The GBP/USD is consolidating with a bullish bias at 1.2875 level, having violated the sideways trading range of 1.2770 to 1.2725 level. Most of the buying trend was triggered amid stronger Sterling and weakness in the U.S. dollar. The Cable has formed an upward channel on the hourly chart that may support the pair at 1.2827 level along with a resistance level of 1.2909 level. Bullish crossover of 1.2900 level can open up further buying room until 1.2998 level today. Let’s consider taking buying trades over 1.2827 level today. 

 

USD/JPY – Daily Analysis

The USD/JPY pair was closed at 105.436 after placing a high of 105.802 and a low of 105.400. The USD/JPY pair broke its 7-days bullish streak on Wednesday and declined on Wednesday to its lowest level at 105.400. The USD/JPY pair managed to post losses on Wednesday despite the strong macroeconomic data releases from the U.S. 

On the data front, at 04:50 GMT, the Prelim Industrial Production from the United States in August rose to 1.7% from the forecasted 1.5% and supported the Japanese yen that ultimately weighed on the USD/JPY currency pair. The Retail Sales from Japan came in as -1.9% against the forecasted -3.2% and supported the Japanese Yen that exerted weighed on the USD/JPY pair. The Housing Starts for the year came in as -9.1% against the forecasted -10.0% and supported the Japanese Yen. The strong macroeconomic data from Japan pushed the Japanese Yen higher against the U.S. dollar and weighed on the USD/JPY pair.

On Wednesday, the U.S. Dollar Index (DXY) remained flat at 93.92 level but posted monthly gains in September by 2% and losses for the 3rd quarter by 3.5%. The steady U.S. dollar was due to the un-decisive presidential debate. Both candidates Donald Trump and Joe Biden took part in the first of third presidential debate on Tuesday and discussed issues like the coronavirus pandemic, Trump’s leadership, and the U.S. economy along with taxes. However, the debate failed to provide clues about the results of upcoming elections and weighed on the U.S. dollar that dragged the USD/JPY pair’s prices.

Moreover, the renewed hopes about the Stimulus package came under headlines after Steven Mnuchin said that the White House would hold talks with Democrats over the stimulus issue. Meanwhile, the Governor of Federal Reserve, Michelle Bowman, said that economic recovery from the pandemic crisis was bumpy because of the high rate of unemployment and persisting need for support from fiscal and monetary departments of the U.S.   

The President of Federal Reserve Bank of Minneapolis, Neel Kashkari, also called the U.S. economic recovery as grinding and told the lawmakers that it would remain the same unless a dramatic change or sooner than expected breakthrough in vaccine development. He said that to smooth the economic recovery of the world’s largest economy, a dramatic policy change was needed. The above comments from Fed officials also had a role in the downward movement of the USD/JPY pair on Wednesday.

Daily Technical Levels

Support Resistance

105.41      105.82

105.17      105.99

105.00      106.23

Pivot point: 105.58

  

USD/JPY – Trading Tips

The technical side of the safe-haven pair USD/JPY continues to be steady as it’s consolidating with a bullish bias to trade at 105.460 level, and the series for EMA is now extending at 105.750 level. On the lower side, the support holds at 105.300 level. The MACD also supports the bullish bias amid a stronger U.S. dollar and diminished safe-haven appeal. A bullish crossover of the 105.750 is likely to lead the USD/JPY price towards the next resistance level of 106.250. As we can see, the 50 periods EMA is also in support of buying; therefore, we should look for buying trades in the USD/JPY pair. However, bearish trend continuation and violation of the 105.300 level can open further room for selling until 104.900. Good luck! 

 

Categories
Forex Signals

AUD/USD Extends Its Early-Day Gains Over 0.7100 – Quick Trade Plan! 

The AUD/USD currency pair stopped its early-day gains and took some new offers near the 0.7100 level mainly due to the risk-off market sentiment, triggered by the intensification of tensions between the U.S. and China. Apart from this, the lack of clarity over the much-awaited coronavirus (COVID-19) stimulus bill also exerted downside pressure on the market trading tone, which tends to undermine the perceived riskier Australian dollar and contributed to the currency pair gains. 

The AUD/USD currency pair stopped its early-day gains and took some new offers near the 0.7100 level mainly due to the risk-off market sentiment, triggered by the intensification of tensions between the U.S. and China. Apart from this, the lack of clarity over the much-awaited coronavirus (COVID-19) stimulus bill also exerted downside pressure on the market trading tone, which tends to undermine the perceived riskier Australian dollar and contributed to the currency pair gains. 

The AUD/USD currency pair stopped its early-day gains and took some new offers near the 0.7100 level mainly due to the risk-off market sentiment, triggered by the intensification of tensions between the U.S. and China. Apart from this, the lack of clarity over the much-awaited coronavirus (COVID-19) stimulus bill also exerted downside pressure on the market trading tone, which tends to undermine the perceived riskier Australian dollar and contributed to the currency pair gains. 

Besides, the ever-increasing number of coronavirus cases across the globe also kept the market sentiment under pressure, which provided further discouragement to the currency pair. On the other hand, the broad-based U.S. dollar fresh strength, backed by the market risk-off tone, also weighed on the AUD/USD currency pair. The gains in the U.S. dollar were further bolstered by the U.S. Congress’ progress towards passing the latest $2.2 trillion fiscal stimulus bill. On the contrary, the better-than-expected China PMI data could be considered as one of the key factors that help the currency pair to limits its deeper losses. At the moment, the AUD/USD currency pair is currently trading at 0.7111 and consolidating in the range between 0.7100 – 0.7149.

As we all well aware that the market trading sentiment remains depressed during the Asian trading session as the concern about the second wave of coronavirus infections, leads the lockdown measures to control the outbreak in several countries, which kept the global risk sentiment under pressure. As per the latest report, the global death losses from the COVID-19 pandemic crossed 1 million earlier in the week, and case numbers continue to rise. 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 instead of riskier assets like Aussie.

At the US-China front, the renewed concerns over worsening tensions between the world’s two largest economies over Beijing’s lesser than promised buying of the U.S. goods, which keeps threatening the Sino-American trade deal. This, in turn, exerted downside pressure on the market trading sentiment and contributed to the currency pair losses. Other than the US-China tussle, the tussle between the European and British policymakers over the Brexit trade deal kicked off yesterday.

Additionally, the lack of clarity over the much-awaited coronavirus (COVID-19) stimulus bill also keeps the investors cautious. But the hopes were earlier fueled by the U.S. Congress’ progress towards passing the latest $2.2 trillion fiscal stimulus bill proposed by Democrats on Monday after U.S. House of Representatives Speaker Nancy Pelosi stated that a deal with the Trump White House could be possible by this week.

At the USD front, the broad-based U.S. dollar succeeded to stop its previous session losses and took some fresh bid during the Asian session on the day as investors turned to the safe-haven in the wake of risk-off market sentiment. However, the progress in the U.S. dollar could be limited as the Investors are turning their focus to comments from President Trump and Democrat candidate Joe Biden However, the gains in the U.S. dollar kept the currency pair lower. Whereas, the U.S. Dollar Index that tracks the greenback against a bucket of other currencies rose by 0.05% to 93.977 by 12:53 AM ET (4:53 AM GMT). 

Across the pond, the market trading sentiment was unaffected by the better-than-expected China data, which showed that the recovery in manufacturing had maintained its momentum in the wake of the Covid-19 epidemic, with both the supply and demand surging. At the data front, China’s NBS or government Manufacturing PMI, which focuses on state-owned enterprises with easy access to credit, increased to 51.5 in September from 51 in August, surpassing the estimate of 51.2. 

In the meantime, the NBS Non-Manufacturing PMI, rose to 55.9 in September from 55.2 in August, exceeding the forecast of 52.1 by a significant margin. A reading above 50 indicates development in the economy. However, this positive data becomes the key factor that helps the currency pair to limit its deeper losses. Looking forward, the market traders will keep their eyes on the USD price dynamics and coronavirus headlines, which could play an important role in managing the intraday momentum. Meanwhile, the FOMC Member Kashkari Speaks and FOMC Member Bowman Speaks will be key to watch on the day.


Daily Support and Resistance

S1 0.6878

S2 0.6959

S3 0.6994

Pivot Point 0.704

R1 0.7075

R2 0.7121

R3 0.7202

The AUD/USD has violated the double top resistance level of 0.7082 and the bullish crossover of this level makes 0.7082 a support for the AUD/USD pair. On the higher side, the AUD/USD pair may go after the next resistance area of 0.7115 level. Conversely, the bearish breakout of 0.7065 may drive further selling until 0.7014. Bullish bias seems stronger today. Check out a trading plan below…

Entry Price – Buy 0.71358

Stop Loss – 0.70958

Take Profit – 0.71758

Risk to Reward – 1:1

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

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

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

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

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

Categories
Forex Market Analysis

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

The eyes will remain on the German Prelim CPI and Spanish CPI figures during the European session on the news front. At the same time, the C.B. Consumer Confidence and series of FOMC member’s speeches are likely to remain in the highlights today. Economists are expecting C.B. Consumer Confidence to perform better than before. Therefore the U.S. dollar can trade with a bullish bias today.

The eyes will remain on the German Prelim CPI and Spanish CPI figures during the European session on the news front. At the same time, the C.B. Consumer Confidence and series of FOMC member’s speeches are likely to remain in the highlights today. Economists are expecting C.B. Consumer Confidence to perform better than before. Therefore the U.S. dollar can trade with a bullish bias today.

The eyes will remain on the German Prelim CPI and Spanish CPI figures during the European session on the news front. At the same time, the C.B. Consumer Confidence and series of FOMC member’s speeches are likely to remain in the highlights today. Economists are expecting C.B. Consumer Confidence to perform better than before. Therefore the U.S. dollar can trade with a bullish bias today.

Economic Events to Watch Today  

 

 

EUR/USD – Daily Analysis

The EUR/USD pair was closed at 1.17416 after placing a high of 1.17452 and a low of 1.16569. Overall the movement of the EUR/USD pair remained bullish throughout the day. On Tuesday, the EUR/USD pair surged and recovered most of its previous 3-4 days losses on the back of broad-based U.S. dollar weakness and rising risk sentiment in the market. The U.S. dollar came under fresh pressure ahead of the U.S. first Presidential debate and provided great support to its rival currency Euro on Tuesday.

The dovish comments from the ECB president and the weakness of its rival currency U.S. dollar improved the market’s risk sentiment ahead of the U.S. presidential debate and supported the riskier EUR/USD currency pair on Tuesday.

On the data front, The German Prelim Consumer Price Index (CPI) for September dropped to -0.2% from the projected -0.1% and weighed on single currency Euro. At 12:00 GMT, the Spanish Flash CPI for the year remained flat with the projected -0.4%. The data from Europe had an almost null impact on EUR/USD pair because traders’ focus was solely on the U.S. dollar weakness amid the rising hopes of next U.S. stimulus measures.

From the U.S. side, at 17:30 GMT, the Goods Trade Balance for August dropped to -82.9B from the expected -81.8B and weighed on the U.S. dollar. In August, the Prelim Wholesale Inventories rose to 0.5% from the forecasted -0.1% and weighed on the U.S. dollar. The weak U.S. dollar added further support to the rising EUR/USD prices. The greenback was further declined after the dovish comments from Fed officials on Tuesday and the U.S. stimulus package’s rising hopes.

The U.S. Treasury Secretary Steven Mnuchin and the House Speaker Nancy Pelosi have said that the next round of coronavirus aid packages will be delivered soon. Both parties held a meeting on Monday and were optimistic that a deal between Republicans & Democrats was highly possible on the $2.2Tpackage.

These rising optimism added to the risk sentiment and provided strength to the Euro currency against the U.S. dollar. The U.S. Dollar Index was already under pressure and was testing the critical support zone near 93.40 level on Tuesday, and Euro’s regained strength pushed it even on the downside. Meanwhile, the latest move from ECB’s President Christine Lagarde over the next round of stimulus package from the European government to refrain from mentioning anything about it and saying that the bank was ready to act as need, also supported the risk sentiment and rising EUR/USD prices.

Lagarde said that coronavirus’s impact across Europe was still intact as people were continuously losing their jobs, and the prospects for the future were still uncertain. She said that economic activity in the third quarter was rebounded, but the recovery was still incomplete, uneven, and uncertain. These dovish comments kept weighing the local currency.

However, the main driver of EUR/USD’s latest surge was the weak U.S. dollar because the Euro was facing an all-time pressure of rising coronavirus cases in the region. As the coronavirus infections rose in European nations, the need for stimulus also increase and exerted downside pressure on the Euro currency. These lingering fears that the second wave of coronavirus pandemic could cause a lasting impact on the European economy kept the gains in the EUR/USD pair limited on Tuesday. As for the U.S. dollar weakness, it is expected to remain until the U.S. Presidential debate between Joe Biden and Donald Trump that will start late at night in the U.S.

Daily Technical Levels

Support Resistance

1.1625      1.1689

1.1588      1.1716

1.1561      1.1754

Pivot point: 1.1652

EUR/USD– Trading Tip

The EUR/USD is trading at 1.1722 level, facing immediate resistance at 1.1760 level that marks a double top pattern for the EUR/USD. The bullish crossover of 1.1760 level can open further room for buying until the 1.1807 area, while the bearish trend continuation below 1.1685 level may lead the EUR/USD price towards 1.1654 and 1.1627 level today. Let’s consider taking buying trades over 1.1650 today.

GBP/USD – Daily Analysis

The GBP/USD closed at 1.28527 after placing a high of 1.29027 and a low of 1.28225. Overall the movement of the GBP/USD pair remained bullish throughout the day. The GBP/USD pair extended its bullish streak for the 5th consecutive day on Tuesday. The gains in the GBP/USD pair were due to the broad-based U.S. dollar weakness. The Brexit talks were resumed on Tuesday that also helped GBP/USD pair to gain some traction. However, the gains in currency air were limited as the United Kingdom was facing a strong wave of coronavirus pandemic. The dovish comments from Bank of England’s president also capped further upside in the GBP/USD pair.

The greenback was weak across the board ahead of the first U.S. presidential debate between U.S. President Donald Trump and Former U.S. President Joe Biden that will begin late in the U.S. on Tuesday. The renewed hopes that the U.S. will announce the next round of coronavirus aid package soon after White House Speaker Nancy Pelosi said that she hoped that Democrats and Republicans would reach a consensus on the stimulus package soon.

Apart from U.S. dollar weakness, the positive data from Great Britain also helped GBP/USD pair’s gains on Tuesday. The Mortgage Approvals from the U.K. hit their highest since October 2007 on Tuesday and reached 85K against the forecasted 72K in August and supported British Pound. Meanwhile, at 13:30 GMT, the Net Lending to Individuals dropped to 3.4B from the expected 5.2B and weighed on Pound. The unexpected rise in Mortgage Approvals in the U.K. added further support to the rising GBP/USD pair on Tuesday.

Furthermore, the Final round of Brexit talks between the U.K. and E.U. resumed on Tuesday despite the British Prime Minister Boris Johnsons attempt to undermine the Brexit withdrawal agreement by proceeding with an internal market bill. The negotiations mean that the Brexit deal was still on the table and could be reached, and this renewed Brexit deal hopes they supported the GBP/USD gains on the day.

Whereas, the gains were capped by many factors, including the ongoing strong wave of coronavirus pandemic in Great Britain. PM Johnson has already imposed many restrictions, including a new bill of six-people gathering and closing pubs, bars, and theaters before 10 pm, and the situation regarding pandemic is not settling.

Further restrictions would hurt the economic recovery and lead the central bank to look into negative interest rates. The latest comments made by the governor of Bank of England, Andrew Bailey, have increased the market’s fears. He said that BoE was not out of ammunition to fight with the pandemic crisis. He added that negative interest rates were not ruled out, but they were realistic options in a challenging environment. These dovish comments from the Bank of England governor weighed on local currency GBP and forced GBP/USD pair to lose some of its earlier daily gains.

On the U.S. front, the macroeconomic data was mixed and failed to provide a significant pair movement. Whereas, the U.S. Dollar Index saw fresh pressure and fell to 93.4 level ahead of the U.S. Presidential debate. This kept supporting the upward trend of GBP/USD throughout the day.

Daily Technical Levels

Support Resistance

1.2698      1.2791

1.2647      1.2833

1.2605      1.2884

Pivot point: 1.2740

GBP/USD– Trading Tip

The GBP/USD is trading with a bullish bias at 1.2875 level, having violated the sideways trading range of 1.2770 to 1.2725 level. Most of the buying trend was triggered amid stronger Sterling and weakness in the U.S. dollar. The Cable has formed an upward channel on the hourly chart that may support the pair at 1.2827 level along with a resistance level of 1.2909 level. Bullish crossover of 1.2900 level can open up further buying room until 1.2998 level today. Let’s consider taking buying trades over 1.2827 level today. 

 

USD/JPY – Daily Analysis

The USD/JPY pair was closed at 105.677 after placing a high of 105.733 and a low of 105.340. Overall the movement of the USD/JPY pair remained bullish throughout the day. The USD/JPY pair continued its bullish streak for the 7th consecutive day on Tuesday despite the broad-based U.S. dollar weakness across the board ahead of the Presidential debate on the day. The rally in the USD/JPY pair could be attributed to the improved risk sentiment in the market as the U.S. stimulus measure’s hopes increased.

Furthermore, the gains in the USD/JPY pair could also be attributed to the unexpected rise in the Consumer Confidence from the U.S. and the statements made by Fed officials.

The CEO of the New York Federal Reserve, John C. Williams, said that full employment and growth in the labor sector was needed to recover from the pandemic induced recession. He also added that the recession was more robust than it was expected, and it would almost need 3-years to go back to pre-pandemic levels. The President of Philadelphia Federal Reserve, Patrick Harker, said that as long as the vaccine is not approved, the economic recovery depends on the mask’s usage to control the spread of the virus. He said that even if the spread of the virus were slow down, the recovery would still need the employment figures to reach the fullest and this could only be possible if people would feel safe to go to their work and that is why the usage of masks eve in indoor holds an important part in economic recovery.

Harker also said that a renewed aid package was essential for coronavirus-affected individuals and unemployed people, and small businesses. He also proposed that a $1Trillion package in aid would be needed to help the falling U.S. economy. On the other hand, the Vice Chairman of the Federal Reserve, Richard Clarida, said that Fed would not increase interest rates until the employment reached its full level, and the inflation target is met or surpassed the 2% level. According to the Fed, the inflation target could be met in 2023, not before that, and it means the interest rates will remain at the lowest level for more than three years. This weighed on the greenback but failed to reverse the USD/JPY pair’s movement.

Furthermore, the U.S. Treasury Secretary Steven Mnuchin and House Speaker Nancy Pelosi said that they were hopeful that a deal would be reached between Republicans & Democrats over the $2.2Trillion package. These optimistic hopes raised the market’s risk sentiment that weighed on the safe-haven Japanese Yen and supported the upward momentum of the USD/JPY pair.

On the data front, the Tokyo Core Consumer Price Index for the year came in as -0.2% against the forecasted -0.3% and supported the Japanese Yen. While at 17:30 GMT, the Goods Trade Balance from the U.S. dropped to -82.9B from the forecasted -81.8B and weighed on the U.S. dollar. In August, the Prelim Wholesale Inventories rose to 0.5% from the forecasted -0.3% and weighed on the U.S. dollar. At 18:00 GMT, the S&/CS Composite-20 HPI for the year from the U.S. rose to 3.9% from the projected 3.6^ and supported the U.S. dollar that added further strength to the USD/JPY pair on Tuesday. At 19:00 GMT, the C.B. Consumer Confidence rose to 101.8 points against the forecasted 90.0 points and supported the U.S. dollar that ultimately pushed the USD.JPY pair on the upside. Market traders are keenly awaiting the Presidential debate to find fresh clues about the election results that would highly impact the local currency U.S. dollar.

Daily Technical Levels

Support    Resistance

105.41      105.82

105.17      105.99

105.00      106.23

Pivot point: 105.58

  

USD/JPY – Trading Tips

The technical side of the safe-haven pair USD/JPY continues to be steady as it’s consolidating with a bullish bias to trade at 105.460 level, and the series for EMA is now extending at 105.750 level. On the lower side, the support holds at 105.300 level. The MACD also supports the bullish bias amid a stronger U.S. dollar and diminished safe-haven appeal. A bullish crossover of the 105.750 is likely to lead the USD/JPY price towards the next resistance level of 106.250. As we can see, the 50 periods EMA is also in support of buying; therefore, we should look for buying trades in the USD/JPY pair. However, bearish trend continuation and violation of the 105.300 level can open further room for selling until 104.900. Good luck! 

 

Categories
Forex Signals

GBP/JPY Succeeded to extend Bullish Bias Amid Faded Haven Appeal!

Today in the European trading session, the GBP/JPY currency pair successfully extended its previous session bullish trading moves and hit the two-weeks high around 135.70 marks mainly due to the on-going Brexit optimism, which eventually underpinned the Brtish Pound and contributed to the currency pair gains. Apart from this, the currency pair got an additional boost after the Bank of England (BoE) policymaker reduced the possibility of negative interest rates in the short-term, which also benefitted the British Pound and extended further support to the currency pair.

Today in the European trading session, the GBP/JPY currency pair successfully extended its previous session bullish trading moves and hit the two-weeks high around 135.70 marks mainly due to the on-going Brexit optimism, which eventually underpinned the Brtish Pound and contributed to the currency pair gains. Apart from this, the currency pair got an additional boost after the Bank of England (BoE) policymaker reduced the possibility of negative interest rates in the short-term, which also benefitted the British Pound and extended further support to the currency pair.

Today in the European trading session, the GBP/JPY currency pair successfully extended its previous session bullish trading moves and hit the two-weeks high around 135.70 marks mainly due to the on-going Brexit optimism, which eventually underpinned the Brtish Pound and contributed to the currency pair gains. Apart from this, the currency pair got an additional boost after the Bank of England (BoE) policymaker reduced the possibility of negative interest rates in the short-term, which also benefitted the British Pound and extended further support to the currency pair.

Let me remind you that the combination of factors helped the currency catch some aggressive bids on the 2nd-day of a new trading week and build on last week’s modest bounce from the lowest level since early July 133.00 marks. Across the pond, the strong rally in the equity markets, backed by the combination of factors, undermined the safe-haven Japanese yen and gave a further boost to the GBP/JPY currency pair.

Despite concerns about the coronavirus cases in some notable nations and worsening US-China relations, the investors continued to cheer the hopes of the US fiscal stimulus package triggered by reports suggesting that the US Democrats’ showed a willingness to alter previous proposals while saying that the deadlock over the much-awaited stimulus talks seems to break anytime. This, in turn, boosted the market trading sentiment and extended support to the currency pair.

Moreover, the upbeat market sentiment was being supported by optimism over the coronavirus vaccine, which came after the US pharmaceutical giant Johnson and Johnson Inc COVID-19 vaccine trial has shown a strong immune response to the coronavirus with a single dose in the early trial stages.

The UK and EU are ready to resume the 9th and final phases of Brexit talks on the day across the pond. Reports suggest that negotiators will start the process to finalize a deal by the end of this week to hammer out an agreement in time for the next EU summit in mid-October. However, the hopes of a Brexit deal were further fueled after the EU steps back from warnings to leave trade and security talks, shows a willingness to prepare a joint legal agreement. (WAB). This, in turn, boosted the sentiment around the British Pound and extended further support to the currency pair.

Looking forward, the market traders will keep their eyes on headlines concerning Brexit, pandemic, and the US Presidential Election, which may offer important clues on the day. It’s worth mentioning that the 1st-round of the US President Election debate is expected to use American President Donald Trump’s tax payments as a fresh obstacle, which may push the US dollar down.


The GBP/JPY pair has formed bullish engulfing candles on the 4-hour timeframe, suggesting a bullish bias around 135.150. The recent bullish crossover of 135.100 levels is likely to lead the GBP/JPY price towards 136.400 levels. On the further higher side, the bullish crossover of 136.400 level will make our forex trading signal more secure, and it can lead GBP/JPY price towards 139.900 level. Check out a trading plan below…

Entry Price – Buy 136.056
Stop Loss – 135.656
Take Profit – 136.456
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 Extended Previous Session Losing Streak – Signal Update! 

During Tuesday’s early European trading session, the USD/CHF currency pair failed to stop its Asian session bearish bias and dropped further near 0.9223 level, mainly due to the broad-based U.S. dollar selling bias, triggered by the cautious mood of traders ahead of the U.S. presidential debate. Moreover, the upbeat market sentiment, backed by the positive coronavirus (COVID-19) vaccine news, also weighed on the safe-haven U.S. dollar, which keeps the currency pair under pressure. Currently, the USD/JPY currency pair is currently trading at 0.9224 and consolidating in the range between 0.9222 – 0.9252.

During Tuesday’s early European trading session, the USD/CHF currency pair failed to stop its Asian session bearish bias and dropped further near 0.9223 level, mainly due to the broad-based U.S. dollar selling bias, triggered by the cautious mood of traders ahead of the U.S. presidential debate. Moreover, the upbeat market sentiment, backed by the positive coronavirus (COVID-19) vaccine news, also weighed on the safe-haven U.S. dollar, which keeps the currency pair under pressure. Currently, the USD/JPY currency pair is currently trading at 0.9224 and consolidating in the range between 0.9222 – 0.9252.

During Tuesday’s early European trading session, the USD/CHF currency pair failed to stop its Asian session bearish bias and dropped further near 0.9223 level, mainly due to the broad-based U.S. dollar selling bias, triggered by the cautious mood of traders ahead of the U.S. presidential debate. Moreover, the upbeat market sentiment, backed by the positive coronavirus (COVID-19) vaccine news, also weighed on the safe-haven U.S. dollar, which keeps the currency pair under pressure. Currently, the USD/JPY currency pair is currently trading at 0.9224 and consolidating in the range between 0.9222 – 0.9252.

However, the market trading sentiment extended its Monday’s upbeat performance and continue to flash d green during the European session on the day. The market was being supported by the risk-positive headlines from America and the European Union (E.U.). Moreover, the coronavirus (COVID-19) vaccine’s hopes also kept the bulls hopeful on the day. It is worth mentioning that the U.S. pharmaceutical giant Johnson and Johnson Inc COVID-19 vaccine trials earlier showed a robust immune response to the coronavirus with a single dose in the early trial stages. This, in turn, boosted market trading sentiment and dragged the currency pair down by undermining the safe-haven U.S. dollar.

On the other hand, the U.S. Democrats showed a willingness to alter previous proposals, while saying that the deadlock over the much-awaited stimulus talks seems to break anytime. Meanwhile, the U.S. House Speaker Nancy Pelosi recently said that we have made critical additions and reduce the bill’s cost by shortening the time covered for now. This eventually boosted the hopes of the much-awaited coronavirus (COVID-19) stimulus package, which keeps the market trading sentiment positive and helps the currency pair limit its deeper losses by undermining the safe-haven Swiss Franc.


Despite the hopes of further stimulus., the broad-based U.S. dollar still flashing red during the European session amid market risk-on sentiment. On the other hand, traders’ cautious mood ahead of Tuesday’s U.S. presidential election debate between President Donald Trump and Democratic candidate Joe Biden also weighed on the U.S. dollar. Although, the gains in the U.S. dollar keep the currency pair down. Looking ahead, the market traders will keep their focus on headlines concerning Brexit, pandemic, and the U.S. Presidential Election, which may offer important clues. It’s worth mentioning that the 1st-round of the U.S. President Election debate is expected to use American President Donald Trump’s tax payments as a fresh obstacle, which may push the U.S. dollar down. 

Daily Support and Resistance

S1 0.9038

S2 0.9109

S3 0.9154

Pivot Point 0.9181

R1 0.9225

R2 0.9252

R3 0.9323

The USD/CHF pair entered the overbought zone during the Asian session but soon started forming a bearish setup below a strong resistance level of 0.9295 level. The closing of the candle below 0.9295 level has driven strong selling until the 0.0222 level. An upward trendline is likely to support the USD/CHF pair at 0.9211 level, and if it closes over 0.9211 level, we may have a bullish reversal. Check out a trading plan below…

Entry Price – Sell 0.92306

Stop Loss – 0.92706

Take Profit – 0.91906

Risk to Reward – 1:1

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

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

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

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

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

Categories
Forex Signals

EUR/JPY Violates Descending Triangle Pattern – Who’s Up for Buying?

Today in the early European trading session, the EUR/JPY stretched its previous session bullish trend and took further bids around an intraday top closer to 123.240, mainly due to the risk-on market sentiment. The faded safe-haven appeal was backed by the on-going optimism over treatment for the highly infectious coronavirus. Therefore, the demand for Japanese yen fell compared to the single currency Euro and we noticed an upward movement in the EUR/JPY currency pair.

Today in the early European trading session, the EUR/JPY stretched its previous session bullish trend and took further bids around an intraday top closer to 123.240, mainly due to the risk-on market sentiment. The faded safe-haven appeal was backed by the on-going optimism over treatment for the highly infectious coronavirus. Therefore, the demand for Japanese yen fell compared to the single currency Euro and we noticed an upward movement in the EUR/JPY currency pair.

Today in the early European trading session, the EUR/JPY stretched its previous session bullish trend and took further bids around an intraday top closer to 123.240, mainly due to the risk-on market sentiment. The faded safe-haven appeal was backed by the on-going optimism over treatment for the highly infectious coronavirus. Therefore, the demand for Japanese yen fell compared to the single currency Euro and we noticed an upward movement in the EUR/JPY currency pair.

A day before, the EUR/USD pair’s gains were limited after the speech of European Central Bank’s President, Christine Lagarde. She made fresh comments on the coronavirus pandemic threat and said that despite the rebounded economic activity in Eurozone, the recovery remains incomplete, uncertain, and uneven. She added that consumer spending has resumed, but they are still cautious about their jobs and income prospects, so the spending is behind its margin. Similarly, the business investment has picked up, but the weak demand and pertaining uncertainty have weighed on the investment plans.

The market trading sentiment recently got the lift from the hints of further money flow from the US and Europe. These developments were supported by the US House Speaker Nancy Pelosi’s optimism towards the COVID-19 aid package discussion. Apart from this, the European Central Bank (ECB) President Christine Lagarde repeated that the Governing Council, “continues to stand ready to adjust all of its instruments, as appropriate” Thi, in turn, boosted the market trading sentiment.

The US-China picked up further pace after the headline from the South China Morning Post (SCMP), published Tuesday’s early Asian session, suggests further hardships for the Sino-American trade deal. However, the news relies on China’s imports of the US goods under the trade agreement between Washington and China, which keeps challenging the upbeat market tone and cap further upside momentum for the currency pair.


The EUR/JPY pair is trading with a bullish bias at 123.400 level, having violated a descending triangle pattern on the four hourly charts. The triangle pattern was extending resistance at 122.850 level, and bullish crossover and formation of a bullish engulfing pattern may drive further buying until the next resistance area of 124.088 level. The leading technical indicators such as RSI and MACD also show bullish crossover, supporting bullish bias in the market. At the same time, the 50 EMA is also in support of the buying trend. Checkout a trading plan below…

Entry Price – Buy 123.288
Stop Loss – 123.292
Take Profit – 123.688
Risk to Reward – 1:1
Profit & Loss Per Standard Lot = -$400/ +$400
Profit & Loss Per Micro Lot = -$40/ +$40
Fellas, now you can check out forex trading signals via Forex Academy mobile app. Follow the links below.
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Forex Signals

AUD/JPY Heading North to Complete 50% Fibonacci Retracement! 

Today in the early European trading session, the AUD/JPY extended its previous session bullish trend and took further bids around an intraday top closer to 75.10 level, mainly due to the risk-on market sentiment, backed by the on-going optimism over treatment for the highly infectious coronavirus. 

Today in the early European trading session, the AUD/JPY extended its previous session bullish trend and took further bids around an intraday top closer to 75.10 level, mainly due to the risk-on market sentiment, backed by the on-going optimism over treatment for the highly infectious coronavirus. 

Today in the early European trading session, the AUD/JPY extended its previous session bullish trend and took further bids around an intraday top closer to 75.10 level, mainly due to the risk-on market sentiment, backed by the on-going optimism over treatment for the highly infectious coronavirus. 

Moreover, the renewed hopes over the U.S. COVID-19 aid package also boosted the market risk tone, underpinning the Australian dollar’s perceived risk currency and contributed to the currency pair gains. Apart from this, the broad-based U.S. dollar selling bias, triggered by the combination of factors, also played its major role in supporting the currency pair. Besides this, the currency pair got an extra boost mainly after the analysts at Citigroup downplayed the possibilities of negative interest rates, which gave further support to the Aussie dollar and contributed to the currency par gains. 

On the contrary, the renewed tension between the US-China over the trade deal keeps challenging the upbeat market mood and becomes the key factor that keeps the lid on any additional currency pair gains. 


The AUD/JPY pair is trading with a bullish bias at 75.45 level on the technical front. Bullish crossover of 75 levels has opened further room for buying until 75.42 level. The closing of the bullish engulfing pattern may drive sharp buying in the AUD/JPY pair; therefore, we have opened a buy trade to target quick 40 pips. Check out a trading plan below… 

Entry Price – Buy 74.892

Stop Loss – 74.92

Take Profit – 75.292

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, September 29 – Top Trade Setups In Forex – C.B. Consumer Confidence in Focus! 

The eyes will remain on the German Prelim CPI and Spanish CPI figures during the European session on the news front. At the same time, the C.B. Consumer Confidence and series of FOMC member’s speeches are likely to remain in the highlights today. Economists are expecting C.B. Consumer Confidence to perform better than before. Therefore the U.S. dollar can trade with a bullish bias today.

The eyes will remain on the German Prelim CPI and Spanish CPI figures during the European session on the news front. At the same time, the C.B. Consumer Confidence and series of FOMC member’s speeches are likely to remain in the highlights today. Economists are expecting C.B. Consumer Confidence to perform better than before. Therefore the U.S. dollar can trade with a bullish bias today.

The eyes will remain on the German Prelim CPI and Spanish CPI figures during the European session on the news front. At the same time, the C.B. Consumer Confidence and series of FOMC member’s speeches are likely to remain in the highlights today. Economists are expecting C.B. Consumer Confidence to perform better than before. Therefore the U.S. dollar can trade with a bullish bias today.

Economic Events to Watch Today  

 

 

EUR/USD – Daily Analysis

The EUR/USD closed at 1.16696 after placing a high of 1.16798 and a low of 1.16149. Euro to U.S. Dollar exchange rate saw fresh buying on Monday amid the broad-based U.S. dollar weakness. The U.S. dollar’s safe-haven rally was ended last week; however, the EUR/USD currency pair’s recovery was still limited on Monday.

Last week, the EUR/USD pair touched its lowest since 2-months at 1.1613 due to U.S. dollar strength gathered by safe-haven status. The U.S. stimulus package and coronavirus developments, and the coronavirus pandemic helped the U.S. dollar gain strength.

However, the U.S. dollar came under fresh pressure on Monday ahead of the U.S. Presidential debates will begin from Tuesday. The U.S. President Donald Trump and Joe Biden will face each other and debate over various topics, including the coronavirus pandemic, the U.S. economy, the latest race, and the protest issue, and the election integrity. 

The local currency faced heavy pressure before the debate and helped the EUR/USD pair to regain its strength in the market. The risk sentiment in the market was also emerging in the market with the developments made in a nasal spray for coronavirus infection. Researchers have revealed that promising results from nasal spray have been seen in ferrets; however, there was still a lot of work needed.

This news raised the EUR/USD prices as it is a riskier asset and tends to gain during times of depressed risk-averse sentiment. Meanwhile, the rising equities also helped the EUR/USD pair to post gains on Monday after the release of encouraging data from China. The rising equities also helped the rising EUR/USD pair on Monday.

However, the EUR/USD pair’s gains were limited after the speech of European Central Bank’s President, Christine Lagarde. She made fresh comments on the coronavirus pandemic threat and said that despite the rebounded economic activity in Eurozone, the recovery remains incomplete, uncertain, and uneven. 

She added that consumer spending has resumed, but they are still cautious about their jobs and income prospects, so the spending is behind its margin. Similarly, the business investment has picked up, but the weak demand and pertaining uncertainty have weighed on the investment plans. She also warned that Eurozone deflation would continue to persist in the coming months. She exclaimed that PEPP was very helpful and efficient in handling the coronavirus situation and confirmed that ECB would continue to stand ready to adjust all of its instruments in need. These concerning statements from Lagarde capped further gains in EUR/USD pair on Monday.

Daily Technical Levels

Support Resistance

1.1636      1.1698

1.1600      1.1724

1.1573      1.1760

Pivot point: 1.1662

EUR/USD– Trading Tip

The EUR/USD is trading at 1.1684 level, facing immediate resistance at 1.1685 level that marks a triple top pattern for the EUR/USD. The bullish crossover of 1.1685 level can open further room for buying until the 1.1715 area, while the bearish trend continuation below 1.1685 level may lead the EUR/USD price towards 1.1654 and 1.1627 level today. 

GBP/USD – Daily Analysis

Today in the Asian trading session, the GBP/USD currency pair continues to flash green and taking bids around above 1.2860 level, mainly due to the Brexit-positive headlines triggered after the E.U. stepped back from warnings to leave the trade and security talks. Meanwhile. They also showed a willingness to prepare a joint legal agreement, which keeps buyers hopeful and extended support to the currency pair. Apart from this, the currency pair got an additional boost after the Bank of England (BoE) policymaker eased the chance of negative interest rates in the short-term, which eventually underpinned the Brtish Pound and contributed to the currency pair gans. 

Across the pond, the broad-based U.S. dollar bearish tone ahead of the presidential debate also boosted the GBP/USD currency pair’s strong intraday positive move. The GBP/USD is trading at 1.2847 and consolidating in the range between 1.2832 – 1.2880. Moving on, the currency pair traders seem cautious to place any strong position ahead of crucial departure talks in the E.U.

It is worth recalling that the U.K. and Brussels are ready to resume the 9th-round of Brexit talks on the day. Reports suggest that negotiators will start the process to finalize a deal by the end of this week to hammer out an accord in time for the next E.U. summit in mid-October. However, the hopes of a Brexit deal were further fueled after the E.U. steps back from warnings to leave trade and security talks, shows a willingness to prepare a joint legal agreement. Hence, this news also ignores the U.K. Cabinet Minister Michel Gove’s refusal to remove the Internal Market Bill (IMB) clauses that confront the Brexit Withdrawal Agreement (WAB). This, in turn, boosted the sentiment around the British Pound and extended further support to the currency pair.

Besides, the reason for the currency pair bullish bias could also be associated with the latest reports suggesting that the Bank of England (BoE) policymaker, Dave Ramsden, lessened the possibility of negative interest rates in the short-term, which tend to underpin the local currency. Ramsden declared that he still sees the effective lower bound in the bank rate at 0.10%.

Daily Technical Levels

Support Resistance

1.2698     1.2791

1.2647     1.2833

1.2605     1.2884

Pivot point: 1.2740

GBP/USD– Trading Tip

On Tuesday, the GBP/USD pair is trading with a bullish bias at 1.2875 level, having violated the sideways trading range of 1.2770 to 1.2725 level. Most of the buying trend was triggered amid stronger Sterling and weakness in the U.S. dollar. The Cable has formed an upward channel on the hourly chart that may support the pair at 1.2827 level along with a resistance level of 1.2909 level. Bullish crossover of 1.2900 level can open up further buying room until 1.2998 level today. Let’s consider taking buying trades over 1.2827 level today. 

 

USD/JPY – Daily Analysis

The USD/JPY currency pair stopped its overnight declining streak and picked up some modest bids around above the mid-105.00 level, mainly due to the risk-on market. However, the positive tone around the equity market was being supported by the hopes of the U.S. stimulus package and optimism over the virus vaccine, which tend to undermine the safe-haven Japanese yen currency and contributed to the currency pair gains. 

On the contrary, the broad-based U.S. dollar weakness, triggered by the political uncertainty in the run-up to the U.S. Presidential election in November, becomes the key factor that kept the lid on any further gains in the currency pair. Apart from this, the concerns of increasing COVID-19 cases in many countries keep challenging the market trading sentiment, which might cap further gains in the currency pair. Currently, the USD/JPY currency pair is currently trading at 105.63 and consolidating in the range between 105.34 – 105.64. 

As we already mentioned that the market trading sentiment was being supported by optimism over a possible vaccine and treatment for the highly infectious coronavirus. These hopes fueled after the U.S. pharmaceutical giant Johnson and Johnson Inc COVID-19 vaccine experiment has shown a strong immune response to the coronavirus with a single dose in the early trial stages. Apart from this, the market trading sentiment was further bolstered by the Brexit-positive sentiment. These hopes came after the European Central Bank (ECB) President Christine Lagarde repeated that the Governing Council “continues to stand ready to adjust all of its instruments. This, in turn, boosted the market trading tone and undermined the safe-haven assets. Besides, the reason for the upbeat market sentiment could also be associated with the hints of further money flow from the U.S. and Europe. As per the U.S. House Speaker Nancy Pelosi, the COVID-19 aid package deal is possible. 

Looking ahead, the market traders will keep their focus on headlines concerning Brexit, pandemic, and the U.S. Presidential Election, which may offer important clues. It’s worth mentioning that the 1st-round of the U.S. President Election debate is expected to use American President Donald Trump’s tax payments as a fresh obstacle, which may push the U.S. dollar down.

Daily Technical Levels

Support Resistance

105.22      105.56

105.04      105.72

104.88      105.90

Pivot point: 105.38

  

USD/JPY – Trading Tips

On Tuesday, the technical side of the safe-haven pair USD/JPY continues to be steady as it’s consolidating with a bullish bias to trade at 105.460 level, and the series for EMA is now extending at 105.750 level. On the lower side, the support holds at 105.300 level. The MACD also supports the bullish bias amid a stronger U.S. dollar and diminished safe-haven appeal. A bullish crossover of the 105.750 is likely to lead the USD/JPY price towards the next resistance level of 106.250. As we can see, the 50 periods EMA is also in support of buying; therefore, we should look for buying trades in the USD/JPY pair. However, bearish trend continuation and violation of the 105.300 level can open further room for selling until 104.900. Good luck! 

 

Categories
Forex Signals

Gold’s Choppy Session Continues – Brace for Breakout Setup!

The yellow metal prices managed to stop its previous session bearish bias and started to gain positive traction around the $1,874 level, mainly due to the prevalent selling bias surrounding the U.S. dollar. That was triggered by the downbeat U.S. data, which fueled the doubts that the U.S. economic recovery could be halt. Apart from this, the upbeat market mood also undermined the demand of the U.S. dollar. Thus, the weaker U.S. dollar could be seen as one of the key factors that helped the dollar-denominated commodity.

The yellow metal prices managed to stop its previous session bearish bias and started to gain positive traction around the $1,874 level, mainly due to the prevalent selling bias surrounding the U.S. dollar. That was triggered by the downbeat U.S. data, which fueled the doubts that the U.S. economic recovery could be halt. Apart from this, the upbeat market mood also undermined the demand of the U.S. dollar. Thus, the weaker U.S. dollar could be seen as one of the key factors that helped the dollar-denominated commodity.

The yellow metal prices managed to stop its previous session bearish bias and started to gain positive traction around the $1,874 level, mainly due to the prevalent selling bias surrounding the U.S. dollar. That was triggered by the downbeat U.S. data, which fueled the doubts that the U.S. economic recovery could be halt. Apart from this, the upbeat market mood also undermined the demand of the U.S. dollar. Thus, the weaker U.S. dollar could be seen as one of the key factors that helped the dollar-denominated commodity.

On the contrary, the market risk-on sentiment, backed by the optimism over the coronavirus (COVID-19) vaccine/treatment and the hopes of the COVID-19 stimulus measures package, becomes the key factor that kept the lid on any additional gains in the gold prices. Across the pond, the market trading sentiment was relatively unaffected by the Sino-American tussle and virus woes, which might lend some further support to the safe-haven metal. The yellow metal prices are currently trading at 1,874.13 and consolidating in the range between 1,861.93 – 1,875.20.

The renewed optimism over a possible vaccine for the highly infectious coronavirus pandemic boosted the market risk tone on the day. These hopes were fueled after Novavax Inc started a clinical late-stage trial of the coronavirus vaccine in the U.K. The experimental vaccine is produced on partnership terms with the government’s Vaccines Taskforce. This, in turn, weakened demand for safe-haven metal and might keep a lid on any extra gains for the yellow metal.

Moreover, the risk-on sentiment was further bolstered by the latest headlines suggesting that the Democrats in the U.S. House of Representatives stated that they are working on a $2.2 trillion COVID-19 stimulus package that could be voted on next week. Besides this, there is also a suggestion that House of Representatives Speaker Nancy Pelosi and U.S. Treasury Secretary Steven Mnuchin will likely resume stalled stimulus talks.

As in result, the broad-based U.S. dollar failed to maintain its previous day gains and dopped on the day mainly due to the risk-on market sentiment. Moreover, the U.S. dollar losses could also be attributed to the downbeat U.S. unemployment data. However, the U.S. dollar losses kept the gold prices higher as the price of gold is inversely related to the price of the U.S. dollar.

Across the ocean, the fears of no-deal Brexit and the Sino-American tussle keep challenging the positive market tone, which might help the yellow-metal prices. At the US-China front, Sino-US’s tensions picked up further pace after the US Justice Department urges judge to allow Govt to ban WeChat from app stores. As per the latest report, the US Justice Department early Friday urged a San Francisco federal judge to permit the government to prohibit Apple Inc and Google from offering WeChat for download in the app store. At the coronavirus front, the on-going rise in COVID-19 cases globally continues to fuel worries that the global economic recovery could be halt.


Daily Support and Resistance
S1 1792.71
S2 1832.06
S3 1847.65
Pivot Point 1871.4
R1 1887
R2 1910.75
R3 1950.1

The yellow metal gold extends to trades choppy on the back of thin fundamentals in the market. The Doji candle formation on the daily timeframe is expected to encourage upward movement in the market unto the 23.6 Fibonacci retracement level of 1,877. On the upward side, the bullish violation of 1,877 marks may lead to a 38.2% Fibo level of 1,895. Beneath 1,877, the gold price can sink until 1,858 and 1,846 level. Neutral bias controls in the market today. Good luck!

Categories
Forex Signals

USD/CAD Triple Top Pattern Pressing Pair Lower – Sell Limit!

The USD/CAD pair was closed at 1.33921 after a high of 1.34178 and a low of 1.33322. Overall the movement of the USD/CAD pair remained bullish throughout the day. The currency pair USD/CAD posted gains on Friday amid the US dollar’s broad-based strength and the declining crude oil prices. The USD/CAD pair posted the biggest weekly gain on Friday since March as the US dollar gained its safe-haven status back.

The USD/CAD pair was closed at 1.33921 after a high of 1.34178 and a low of 1.33322. Overall the movement of the USD/CAD pair remained bullish throughout the day. The currency pair USD/CAD posted gains on Friday amid the US dollar’s broad-based strength and the declining crude oil prices. The USD/CAD pair posted the biggest weekly gain on Friday since March as the US dollar gained its safe-haven status back.

The USD/CAD pair was closed at 1.33921 after a high of 1.34178 and a low of 1.33322. Overall the movement of the USD/CAD pair remained bullish throughout the day. The currency pair USD/CAD posted gains on Friday amid the US dollar’s broad-based strength and the declining crude oil prices. The USD/CAD pair posted the biggest weekly gain on Friday since March as the US dollar gained its safe-haven status back.

The US Dollar Index that measures the value of the US dollar against the six currencies’ basket rose above 96.6 level on Friday and reached its 2-months highest level. The rise in the greenback gave a push to the USD/CAD pair on Friday. The US dollar was strong across the board as the market’s rising level of uncertainties called for a safe-haven appeal. The delayed US stimulus package, the rising number of coronavirus figures from Europe, and the escalating US-China tensions kept the uncertainty level high.

There were also increased concerns about economic recovery due to depressing macroeconomic data releases from many countries. On Friday, the Core Durable Orders declined to 0.4% in August from the projection of 1.0%, and the Durable Goods Orders also dropped to 0.4% against the forecast of 1.1% in August. These negative economic figures raised the economic recovery fears and supported the safe-haven appeal.

The fears for the next round of US stimulus package’s late delivery increased in the market as there was no progress in talks. Chances have been increased that no new stimulus measure will be announced before the US Presidential elections on 3rd November. 

Meanwhile, the European countries were experiencing the latest round of coronavirus pandemic as France & UK, with some other member states, faced the highest rise in daily infected cases. In 24 hours, France reported more than 16000 cases, while the UK reported more than 6600 cases. Both countries saw the highest level of reported cases in a single day since the pandemic started.

Furthermore, the rising conflict between the world’s two largest economies over the coronavirus pandemic and its origin at the United Nations General Assembly (UNGA) raised fears for a new Cold-war.

The above-mentioned fears and concerns kept the market risk sentiment under pressure and demand for safe-haven appeal at high that supported the US dollar and, ultimately, the USD/CAD pair on Friday.


Moreover, the declining crude oil prices on Friday weighed on commodity-linked Loonie when prices of WTI Crude oil futures dropped below $41 per barrel. The decreased crude oil prices could be attributed to the rising safe-haven appeal and US dollar prices as the greenback and crude oil prices negatively correlate. The declining Canadian dollar supported the USD/CAD pair’s an upward trend on Friday and helped the pair to post the most significant weekly gains since March. There was no economic data to be released from Canada, and hence, the team followed the USD movements only.

Daily Technical Levels

Support Resistance

1.3371 1.3394

1.3360 1.3406

1.3348 1.3417

Pivot point: 1.3383

Technically, the USD/CAD pair has disrupted the strong resistance mark of 1.3345, and on the higher side, the aim for USD/CAD is expected to stay at 1.3394. The 50 EMA and the MACD are underpinning the upward movement in the market; therefore, we have opened a buy trade in the USD/CAD pair. Let’s follow the below trade plan… 

1.34453 1.33653

Entry Price – Sell Limit 1.34053

Stop Loss – 1.33057 

Take Profit – 1.33857

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