Author: Ali B.

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Forex Market Analysis

Daily F.X. Analysis, September 28 – Top Trade Setups In Forex – ECB President Lagarde Speaks

The Asian session has exhibited thin trading volume and volatility amid Chinese banks will be closed in observance of the Mid-Autumn Festival. However, the eyes will remain on the ECB President Lagarde Speak later during the European session.

The Asian session has exhibited thin trading volume and volatility amid Chinese banks will be closed in observance of the Mid-Autumn Festival. However, the eyes will remain on the ECB President Lagarde Speak later during the European session.

The Asian session has exhibited thin trading volume and volatility amid Chinese banks will be closed in observance of the Mid-Autumn Festival. However, the eyes will remain on the ECB President Lagarde Speak later during the European session.

Economic Events to Watch Today  

 

 

EUR/USD – Daily Analysis

The EUR/USD pair was closed at 1.16299 after placing a high of 1.16848 and a low of 1.16120. Overall the movement of the EUR/USD pair remained bearish throughout the day. The pair dropped to its 2-months lowest level below 1.16200 level on Friday as the risk-sentiment was dropped in the market, and the U.S. dollar gained renewed strength. The strength of the greenback was the main driver of the EUR/USD pair on Friday.

The greenback posted the biggest weekly gain on Friday since March and rose to 2-months high level after the safe-haven momentum rose amid the weak economic data. The safe-haven appeal was also supported by the ongoing worries about the economic fallout from a delayed U.S. stimulus measure.

On Friday, the U.S. Dollar Index rose to its 2-months highest level above 96.6 level and weighed heavily on the EUR/USD pair. The M3 Money Supply from the E.U. dropped to 9.5% from the projected 10.0% at 13:00 GMT on the data front. Private Loans from the European Union remained flat with expectations of 3.0%. The depressing data from the E.U. added further losses in the EUR/USD pair.

From the U.S. side, the Core Durable Goods Orders in August dropped to 0.4% against the projected 1.0%, and the Durable Goods Orders also declined to 0.4% from the anticipated 1.1% and weighed on the greenback. The declining goods orders raised concerns for the economic recovery and raised the safe-haven appeal that ultimately supported the greenback. The strong U.S. dollar added further in the downward momentum of the EUR/USD pair. On the coronavirus front, the second wave of the pandemic in Europe was hitting the European countries hard as the number of coronavirus infections increased day by day. The daily count of infected people rose to an all-time high in France and the U.K. on Thursday. 

France recorded 16,096 new cases in a single day, and the U.K. reported 6634 cases in 24 hours. Meanwhile, other countries also saw the highest number of infected cases since the pandemic started earlier this year. 

The European Union health commissioner said that coronavirus’s situation was even worse in some member states than during the peak in March, and this weighed heavily on the local currency Euro. The declining Euro currency supported the downward momentum of the EUR/USD pair on Friday.

The rising safe-haven market sentiment kept the EUR/USD pair under heavy pressure due to its riskier nature. The U.S. dollar regained its safe-haven status and was further supported by the uncertainty in the market related to the rising number of coronavirus cases and the rising tensions between the U.S. & China that could also lead to a new cold war. The strength of the greenback kept the pair EUR/USD under pressure throughout the whole week.

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 bearish bias of the EUR/USD continues to dominate the market as it’s providing selling bias at 1.1650. Staying below 1.1650 level can extend the selling trend until 1.1590 level while resistance stays at the 1.1680 level today. A bullish breakout of the 1.1686 level can drive the buying trend until the 1.1760 level. Mixed bias prevails in the market today. The ECB President Lagarde Speech will remain in highlights today.

GBP/USD – Daily Analysis

The GBP/USD currency pair extended its early-day bullish bias and took some further bids around well above the mid-1.2750 level despite the U.K. preparing to impose a total social lockdown across much of Northern Britain and potentially London. However, the reason for the bullish trend in the currency pair could be associated with the bearish sentiment surrounding the broad-based U.S. dollar ahead of the U.S. presidential debate on Tuesday and the release of U.S. economic data. 

Adding to the U.S. dollar’s problem could also be the market risk-on sentiment, which tends to undermine the safe-haven U.S. dollar and contributed to the currency pair gains. Apart from this, the bullish tone around the currency pair was further bolstered by the latest positive report suggesting brighter odds of success for the key Brexit talks. On the contrary, the latest fears of strict lockdown conditions in the U.K. hampering global economic growth seem to challenge the currency pair bulls and become the key factor that kept the lid on any additional currency gains pair. At this particular time, the GBP/USD currency pair is currently trading at 1.2776 and consolidating in the range between 1.2752 – 1.2778. Moving on, the currency pair traders seem cautious to place any strong position ahead of the U.S. presidential debate on Tuesday and the release of U.S. economic data later in the week.

The market trading sentiment rather unaffected by the fears of rising COVID-19 cases in the UK, Spain, and some of the notable Asian nations like India, which keeps fueling worries that the economic recovery could be halt. However, the market trading sentiment has been reporting gains since the Asian session started, possibly due to the latest headlines suggesting a strong immune response to the coronavirus vaccine with a single dose in the early trial stages. Besides this, the market sentiment was further bolstered by the hopes of the U.S. stimulus to combat the coronavirus (COVID-19). Apart from this, the Brexit optimism also exerted a positive impact on market sentiment. 

This, in turn, the broad-based U.S. dollar failed to gain any positive traction and edged lower on the day ahead of the U.S. presidential debate on Tuesday and the release of U.S. economic data later in the week. Besides, the upbeat market sentiment also keeps the USD bulls on the defensive. However, the losses in that U.S. dollar kept the GBP/USD currency pair higher. Whereas, the U.S. Dollar Index that tracks the greenback against a bucket of other currencies edged down by 0.04% to 94.588 by 10 PM ET (2 AM GMT). 

At home, the Confederation of British Industry (CBI) head Carolyn Fairbairn showed some readiness about the Brexit trade deal ahead of the 9th-phase of talks starting from Tuesday. Also on the positive side is the Internal Market Bill (IMB) has ripped off the latest round of Brexit talks. This, in turn, underpinned the British Pound and extended some support to the currency pair. 

On the contrary, the Irish leader Taoiseach Micheál Martin’s latest statement that the U.K. headed for no-deal Brexit eventually fueled the worries of losing a trade deal and becoming the key factor that cap further gains in the currency pair. It is worth reporting that the cost of losing a trade deal is estimated as near 1.0 million British jobs, as per the Financial Times. Meanwhile, the further burden on the economy that is yet to overcome the COVID-19 woes seems to push the BOE policymakers to defend the negative rate policies.

Across the ocean, the U.K. policymakers are ready to a strict ban on socializing due to the recent surge in the coronavirus (COVID-19) cases, which also keeps challenging the currency pair upside momentum. The re[orts also revealed that the new lockdown measures put forward a complete closure for all pubs, restaurants, and bars for two weeks initially. Looking ahead, the market traders will keep their eyes on headlines concerning Brexit, pandemic, and U.S. Presidential Election, which may offer important clues. Meanwhile, the USD price dynamics will be key to watch. 

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 cable is consolidating in a sideways trading range of 1.2770 to 1.2725 level, as it has formed an ascending triangle pattern on the hourly timeframe. A bullish breakout of 1.2770 level can lead the Sterling price towards 1.2819 level on the higher side. Bullish bias will be more substantial over the 1.2770 level and bearish below the same level today.

 

USD/JPY – Daily Analysis

The USD/JPY currency pair extended it’s early-day losing momentum and picked up further offers around 105.30 level mainly due to the broadly weaker U.S. dollar. That was triggered by traders’ cautious mood ahead of Tuesday’s U.S. presidential election debate between President Donald Trump and Democratic candidate Joe Biden. Apart from this, the upticks in the U.S. stock futures, which refer to market risk-on sentiment, also undermined the safe-haven U.S. dollar. This, in turn, kept the currency pair under pressure. The reason for the currency pair losses could be associated with the stronger Japanese yen across the pond. Despite the upbeat tone in the Japanese stocks, the Japanese yen remains in demand across the board, which keeps the currency pair down. 

On the contrary, the upbeat market mood, backed by the recently positive coronavirus (COVID-19) vaccine news and stimulus hopes, tends to undermine the safe-haven Japanese yen, which might help the currency pair to limit its deeper losses. Meanwhile, the latest Japanese Chief Cabinet Secretary Kato’s latest report that the government will not hesitate to deploy additional economic measures could also be considered one of the key factors that kept the lid on any additional losses in the currency pair. 

Despite the rise in the COVID-19 cases, coupled with the expected return of lockdown conditions in major economies, the market trading sentiment started to flash green during the Monday’s Asian session amid hopes of the American stimulus, which keeps the broad-based U.S. dollar under pressure. Moreover, the cautious mood of traders ahead of Tuesday’s U.S. presidential election debate between President Donald Trump and Democratic candidate Joe Biden also kept the U.S. dollar bulls on the defensive. 

The broad-based U.S. dollar failed to keep its early-day gains and edged lower before the European trading hours due to the risk-on market sentiment. Moreover, the U.S. dollar losses could also be associated with lingering doubts about the U.S. economic recovery ahead of plenty of economic data and political developments in the United States. However, the losses in the U.S. dollar kept the USD/JPY currency pair under pressure. Whereas, the U.S. Dollar Index that tracks the greenback against a bucket of other currencies edged down by 0.04% to 94.588 by 10 PM ET (2 AM GMT). 

However, the market trading sentiment was supported by the hopes of the U.S. stimulus to combat the coronavirus (COVID-19). As per the latest report, the U.S. House Speaker Nancy Pelosi thinks that the COVID-19 aid package deal is possible while considering the Democratic preparation for a new package. Besides this, the New York Times alleged U.S. President Donald Trump over income tax returns of $750 for 2016 and 2017, which initially left the negative impact on the government. Afterward, the Democratic leader proved it as “fake news” while showing strong belief to have tremendous victory in the election. 

Across the pond, the reason for the upbeat market mood could also be associated with the latest reports suggesting that the Confederation of British Industry (CBI) head Carolyn Fairbairn is confident about the Brexit trade deal ahead of the 9th-round of discussions, which is scheduled to start from Tuesday.  

As in result, the S&P 500 Futures keeps its Friday’s upbeat performance of Wall Street while rising 0.36% to 3,298 as of writing. Although, the risk barometer seems to await clearer signals to extend the latest recovery.

At home, the new Japanese Chief Cabinet Secretary Kato told that the government would not hesitate to deploy additional economic measures if needed. This, in turn, undermined the Japanese yen currency and helped the currency pair limit its deeper losses. Looking ahead, the market traders will keep their eyes on headlines concerning Brexit, pandemic, and U.S. Presidential Election, which may offer important clues. Meanwhile, the USD price dynamics will be key to watch. 

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

The USD/JPY is consolidating with a bullish bias to trade at 105.460 level, and the series for EMA is now extending at 105.550 level. On the lower side, the support holds at 104.840 level. The MACD also supports the bullish bias amid a stronger U.S. dollar and diminished safe-haven appeal. A Bullish crossover of the 105.550 level may drive more buying until 106.258. The idea is to stay bearish below 105.470 today. Good luck! 

 

Categories
Forex Signals

GBP/USD Choppy Session Continues – Quick Trade Plan! 

Today in the European trading session, the GBP/USD currency pair stopped its early-day winning streak and gained some bearish traction around 1.3165 level, mainly due to the broad-based US dollar strength. That was supported by the renewed hopes of the US next round of fiscal stimulus measures. Apart from this, the cautious market sentiment, triggered by the US-China tussle, also underpinned the US dollar and contributed to the currency pair gains. Furthermore, the concerns about the second wave of coronavirus infections also gave support to the US dollar and dragged the currency pair down.

Today in the European trading session, the GBP/USD currency pair stopped its early-day winning streak and gained some bearish traction around 1.3165 level, mainly due to the broad-based US dollar strength. That was supported by the renewed hopes of the US next round of fiscal stimulus measures. Apart from this, the cautious market sentiment, triggered by the US-China tussle, also underpinned the US dollar and contributed to the currency pair gains. Furthermore, the concerns about the second wave of coronavirus infections also gave support to the US dollar and dragged the currency pair down.

Today in the European trading session, the GBP/USD currency pair stopped its early-day winning streak and gained some bearish traction around 1.3165 level, mainly due to the broad-based US dollar strength. That was supported by the renewed hopes of the US next round of fiscal stimulus measures. Apart from this, the cautious market sentiment, triggered by the US-China tussle, also underpinned the US dollar and contributed to the currency pair gains. Furthermore, the concerns about the second wave of coronavirus infections also gave support to the US dollar and dragged the currency pair down.

On the contrary, the optimism over a post-Brexit transition trade deal and UK Sunak’s furlough scheme offers could be considered as one of the key flappers that helps the currency pair to limits its deeper losses. 

As we all knew, the market trading sentiment was flashing green during the Asian session, but the gains were short-lived, and the market started to turn sour, possibly due to the intensifying US-China tussle. At the US-China front, Sino-US’s tensions picked up further pace after the US Justice Department raised its voice against China’s WeChat app. As per the keywords, “He forced the San Francisco federal judge to permit the government to ban Apple Inc and Google from offering WeChat for download in the app store”. This, in turn, boosted the safe-have assets like including the US dollar. 

At the USD front, the broad-based US dollar succeeded in stopping its previous session losses and edged higher during the European session amid mixed sentiment in the market. Moreover, the US dollar gains could also be attributed to the optimism over the US stimulus deal, which eased concerns over the US economic recovery and underpinned the American currency. It is worth reporting that the US Congress may break a months-long deadlock to agree on the next round of fiscal stimulus measures, which helped ease the market fears over the second wave of COVID-19 infections. However, the US dollar’s fresh gains become the key factor that kept the currency pair down.

On the contrary, the British Pound failed to keep its earlier gains, which were supported by the reports suggesting the UK’s Finance Minister Rishi Sunak set up measures in its job protection scheme, as the country facing the second-wave of coronavirus-induced restrictions. Besides this, the optimism over a post-Brexit transition trade deal could be considered one of the key factors that help the currency pair limit its deeper losses. As per the latest report, the Bank of England (BOE) Governor Andrew Bailey repeated that trade deal would be beneficial for both the UK and the EU.


Moving ahead, the market traders will keep their eyes on the US economic docket, which will show the release of Durable Goods Orders. Meanwhile, the USD moves and coronavirus headlines will also closely follow to play a key role in the currency pair.

Daily Support and Resistance

S1 1.2458

S2 1.2615

S3 1.2676

Pivot Point 1.2772

R1 1.2833

R2 1.2929

R3 1.3086

The cable is consolidating in a sideways trading range of 1.2770 to 1.2725 level, as it has formed an ascending triangle pattern on the hourly timeframe. A bullish breakout of 1.2770 level can lead the Sterling price towards 1.2819 level on the higher side. Selling bias will be more substantial below the 1.2772 level. Good luck!

Categories
Forex Signals

Hard Luck with AUD/USD Signal – What’s Next?

The AUD/USD extended its early-day gains and hit the intra-day high of 0.7069 marks mainly due to the broad-based U.S. dollar weakness. That was sponsored by the downbeat U.S. unemployment claims data, which fuel the fears that the U.S. economic recovery is failing. Apart from this, the market risk-on sentiment also undermined the safe-haven U.S. dollar and contributed to the currency pair gains. Across the pond, the gains in the S&P 500 futures, backed by the optimism over the coronavirus (COVID-19) vaccine/treatment, also lend further support to the currency pair.

The AUD/USD extended its early-day gains and hit the intra-day high of 0.7069 marks mainly due to the broad-based U.S. dollar weakness. That was sponsored by the downbeat U.S. unemployment claims data, which fuel the fears that the U.S. economic recovery is failing. Apart from this, the market risk-on sentiment also undermined the safe-haven U.S. dollar and contributed to the currency pair gains. Across the pond, the gains in the S&P 500 futures, backed by the optimism over the coronavirus (COVID-19) vaccine/treatment, also lend further support to the currency pair.

The AUD/USD extended its early-day gains and hit the intra-day high of 0.7069 marks mainly due to the broad-based U.S. dollar weakness. That was sponsored by the downbeat U.S. unemployment claims data, which fuel the fears that the U.S. economic recovery is failing. Apart from this, the market risk-on sentiment also undermined the safe-haven U.S. dollar and contributed to the currency pair gains. Across the pond, the gains in the S&P 500 futures, backed by the optimism over the coronavirus (COVID-19) vaccine/treatment, also lend further support to the currency pair.

Meanwhile, the hopes of the COVID-19 stimulus measures package also helped the marker trading sentiment gain further positive traction, undermining the perceived riskier Australian dollar and contributing to the currency pair gains. On the contrary, the downbeat Aussie trade data could be considered one of the key factors that kept the lid on any further gains in the currency pair. At this particular time, the AUD/USD currency pair is currently trading at 0.7060 and consolidating in the range between 0.7045 – 0.7069.

As per the latest report, Australia’s trade surplus shrank in August, released at 01:30 GMT showed. Details suggested that the Australian imports dropped by 7% month-on-month in August after July’s 7% rise. In the meantime, the exports also fell by 2% in August, having declined by 4% in July. The trade surplus decreased to AUD 4,294 million from AUD 4,607 million. However, the substantial fall in the inbound shipments suggested a weakening of national demand. Whereas, the consecutive monthly drop in outbound shipments indicates weak demand conditions in the global economy. This, in turn, becomes the key factor that limits the further upside in the currency pair.

Furthermore, the market risk tone was being supported by optimism over a possible vaccine and treatment for the highly infectious coronavirus. These positive vibes came after the report that 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.

On the other hand, the reason for the upbeat trading sentiment could be associated with the talks concerning the U.S. coronavirus (COVID-19) stimulus package. Democrats in the U.S. House of Representatives recently spoke about their struggles over the $2.2 trillion COVID-19 stimulus package that could be voted on next week. Moreover, the hopes were further bolstered after the House of Representatives Speaker Nancy Pelosi and U.S. Treasury Secretary Steven Mnuchin hinted to resume delayed stimulus talks. This eventually exerted a positive impact on the market trading sentiment and extended support to the currency pair.

As in result, the broad-based U.S. dollar failed to gain any positive traction and edged lower on the day amid risk-off market sentiment. Moreover, the U.S. dollar losses could also be associated with the downbeat U.S. unemployment data, which fueled the fears that the U.S. economic recovery is failing. However, the losses in the U.S. dollar kept the AUD/USD currency pair higher.

At the U.S. data front, the number of U.S. claiming unemployment over the past week rose to 870,000, indicating a halt in the economic recovery and highlighting the pressing need for Congress to pass the support measures. This negative data failed to weigh the market trading sentiment. Besides, the market trading sentiment was rather unaffected by the reports suggesting the rise in COVID-19 cases globally.

The market traders will focus on FOMC Member Williams Speaks. Apart from this, the Durable Goods Orders m/m will also be key to watch. Meanwhile, the USD moves and coronavirus headlines will also closely follow to play a key role in the currency pair.


The AUD/USD signal hit stop loss as the pair failed to break above 38.2% Fibonacci retracement level of 0.7075. Unfortunately, the AUD/USD pair reversed below 0.7075 level and hit out stop loss. For now, the AUD/USD pair may trade bearish until the 0.7010 level, while a bearish crossover of 0.7010 may lead the AUD/USD price towards 0.6975. Let’s brace for the next setup before placing the next trade. Good luck!

Categories
Forex Market Analysis

Daily F.X. Analysis, September 25 – Top Trade Setups In Forex – U.S. Durable Goods Orders in Highlights! 

On the news front, the eyes will remain on the U.S. fundamentals, especially the Durable Goods Orders m/m and Core Durable Goods Orders m/m, which are expected to report negative data and drive selling bias for the U.S. .dollar.

On the news front, the eyes will remain on the U.S. fundamentals, especially the Durable Goods Orders m/m and Core Durable Goods Orders m/m, which are expected to report negative data and drive selling bias for the U.S. .dollar.

On the news front, the eyes will remain on the U.S. fundamentals, especially the Durable Goods Orders m/m and Core Durable Goods Orders m/m, which are expected to report negative data and drive selling bias for the U.S. .dollar.

Economic Events to Watch Today  

 

 

EUR/USD – Daily Analysis

The EUR/USD pair was closed at 1.6680 after placing a high of 1.16867 and a low of 1.16263. Overall the movement of the EUR/USD pair remained bullish throughout the day. After declining for four consecutive days, the EUR/USD currency pair fell to its lowest level in two months in an earlier trading session but reversed its direction in the late American session rose on Thursday.

During the first half of the day, the EUR/USD pair was continuously weighed by the broad-based U.S. dollar strength amid the lack of significant macroeconomic data from the Eurozone. The DXY that measures the greenback’s performance against its rival currencies rose to its highest level since late July at 94.59. However, the U.S. dollar gains were deteriorated by the decisive rebound in Wall Street’s main indexes. The S&P 500 Index was up by 1.23% on Thursday, and the DXY was also starting to decline near 94.30 level. This provided strength to the risk sentiment that ultimately pushed the EUR/USD pair to reverse its direction.

On the data front, at 13:00 GMT, the German IFO Business Climate dropped to 93.4 from the anticipated 93.9 and weighed on single currency Euro. At 17:57 GMT, the Belgian NBB Business Climate came in as -10.8 against the forecasted -11.0. From the U.S. side, the Unemployment Claims last week surged to 870K against the forecasted 845K and weighed on the U.S. dollar. The weak U.S. dollar added strength in EUR/USD pair on Thursday.

The rise in EUR/USD pair’s prices on Thursday could also be attributed to the chief economist’s positive comments for the Eurozone and Global Head of Macroeconomics, Carsten Brezesk. He said that the German economy has already entered the next recovery stage after the strong rebound in the third quarter. This was related to the German IFO Business Climate survey’s relatively strong release on Thursday that advanced in September to 93.4 from the previous 92.6. However, the single currency remained under pressure due to the high uncertainty faced by the largest Eurozone’s economy as the COVID-19 rate continued to increase across Europe.

On Thursday, both France and the United Kingdom counted record-breaking daily cases of COVID-19, with the U.K. reporting 6634 new COVD-19 cases on a single day. It was the highest number recorded by the country even before the nationwide lockdown. The rising number of infections across Europe and countries adopting new restrictive measures to control the spread and damage by coronavirus kept weighing the EUR/USD prices on Thursday.

Daily Technical Levels

Support Resistance

Support     Resistance

1.1636       1.1698

1.1600       1.1724

1.1573       1.1760

Pivot point: 1.1662

EUR/USD– Trading Tip

The bearish bias of the EUR/USD continues to dominate the market as it’s providing selling bias at 1.1650. The bearish breakout of the 1.1650 level can extend the selling trend until the 1.1590 level, while resistance stays at the 1.1680 level today. A bullish breakout of the 1.1686 level can drive the buying trend until the 1.1760 level. Mixed bias prevails in the market today.

GBP/USD – Daily Analysis

The GBP/USD pair was closed at 1.27434 after placing a high of 1.27808 and a low of 1.26902. Overall the movement of the GBP/USD pair remained bullish throughout the day. After posting losses for three consecutive days and remaining flat for a day, the GBP/USD pair finally rebounded on the upside on Thursday amid the U.S. dollar weakness and fresh actions by the U.K. government to lessen the impact of the second wave of coronavirus in the country.

The British Pound rebounded against the U.S. dollar on Thursday after the U.K. government revealed fresh measures to protect businesses and jobs. This helped decrease the ongoing fear about the economic fallout by the newly imposed restrictions on the economy. To contain the virus, the U.K. government made a law that prohibits gathering more than six people. Furthermore, the bars and pubs in the U.K. were ordered to close by 10 PM, and movie theatres and parks were closed again. However, on Thursday, the UK Chancellor Rishi Sunak attempted to ease the pandemic’s economic fallout.

According to the Tory government’s new plans, from November, the U.K. will subsidize the pay of employees who have not returned to work full time but are working at least a third of their usual hours. This came in as the furlough scheme’s expiry date at the end of October was near, and the U.K. businesses had been calling on the government to renew the support. The calls for new support increased after the fears emerged in the market that the second wave could improve the job losses.

On Thursday, the U.K. reported a record-high number of coronavirus cases in a single day with a count of 6634 cases. It was the highest single-day count even before the lockdowns. This pushed the need for new measures from the government that was also welcomed by the Bank of England’s Governor Andrew Bailey. However, the BoE governor, Andrew Bailey, was less optimistic about the economy when he said that the fast recovery pattern over the summer would not continue in the same way. The British Pound that was surged against the dollar on the back of new measures might not live for long as the uncertainty around the Brexit talks between the E.U. & the U.K. remains on the card.

The latest Brexit update shows that the E.U. has threatened to take legal actions against the U.K. over its plans to go ahead with the so-called internal market bill that would undermine some parts of the withdrawal agreement the Northern Ireland issue. The E.U. has given a deadline of the end of September to the U.K. to scrap the bill. Meanwhile, Michel Barnier, a top E.U. negotiator, has also said that despite the U.K.’s wrong intentions to halt the withdrawal agreement, the Brexit deal was still possible, but this time E.U. will remain firm and realistic in negotiations. This also kept supporting the GBP/USD gains on Thursday.

Meanwhile, on the data front, at 15:00 GMT, the CBI Realized Sales rose to 11 from the projected -10 and supported British Pound that added gains in GBP/USD pair on Thursday. On the USD front, the rise in unemployment claims during last week to 870K from the projected 845K weighed on the U.S. dollar pushed GBP/USD pair even higher.

 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 cable is consolidating in a sideways trading range of 1.2770 to 1.2725 level, as it has formed an ascending triangle pattern on the hourly timeframe. A bullish breakout of 1.2770 level can lead the Sterling price towards 1.2819 level on the higher side. Bullish bias will be more substantial over the 1.2770 level and bearish below the same level today.

 

USD/JPY – Daily Analysis

The USD/JPY pair was closed at 105.409 after placing a high of 105.529 and a low of 105.203. After posting bullish bias for three consecutive days, the GBP/USD pair remained in a confined range on Thursday, but one way or another managed to close its day with modest gains.

The Governor of the Bank of Japan, Haruhiko Kuroda, and the Prime Minister of Japan, Yoshihide Suga, met on Wednesday met for the first time since the prime minister took office last week. After the meeting, Kuroda said that there was no change in the Bank of Japan’s stance that former PM Shinzo Abe set that pledged monetary easing in pursuit of a 2% inflation target. Furthermore, Kuroda said that the deadline for aid to pandemic hit firms might extend, and this weighed on the Japanese Yen that ultimately supported the USD/JPY pair’s upward momentum.

On the other hand, the persistent uncertainty over the U.S. stimulus and resurging coronavirus cases worldwide resumed the downfall momentum in Wall Street Indexes and provided support to the safe-haven greenback that added in the upward trend of USD/JPY.

In an early trading session on Thursday, the Bank of Japan published its Minutes from its latest meeting and showed that policymakers were willing to act as needed to counter the pandemic’s effects on the economy. However, the USD/JPY pair’s gains were limited by the increased number of jobless Americans who filed for Unemployment claim benefits during the last week. The actual number came in as 870K against the forecasted 845K and weighed on the U.S. dollar.

Furthermore, the Federal Reserve Chairman Jerome Powell and U.S. Treasury Secretary Steven Mnuchin testified before the Senate Banking Committee on Thursday. Both were gathered to discuss their agencies’ role in controlling the losses caused by the coronavirus crisis.

Powell said that the fears of slow economic growth have increased after the failure of the U.S. Congress to pass additional relief funds. Whereas, Mnuchin forced Congress to quickly pass the targeted relief fund by focusing on both parties’ needs and continuing the negotiations after that. The U.S. Dollar Index (DXY) rose to a two-month highest level, and this continued supporting the USD/JPY pair.

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 Friday, the USD/JPY is consolidating with a bullish bias to trade at 105.460 level, and the series for EMA is now extending at 105.550 level. On the lower side, the support holds at 104.840 level. The MACD is also in support of bullish bias amid a stronger U.S. dollar and reduced safe-haven appeal. Bullish crossover of 105.550 level may drive more buying until 106.258. The idea is to stay bearish below the 105.470 level today. Let’s wait for Jobless Claims from the U.S. to determine further trends. Good luck! 

 

Categories
Forex Signals

AUD/USD Selling Bias Continues to Dominate – Brace for Sell Trade


Entry Price – Sell 0.70216
Stop Loss – 0.70616
Take Profit – 0.69816
Risk to Reward – 1:1
Profit & Loss Per Standard Lot = -$400/ +$400
Profit & Loss Per Micro Lot = -$40/ +$40
Fellas, now you can check out forex trading signals via Forex Academy mobile app. Follow the links below.
iPhone Users: https://apps.apple.com/es/app/fasignals/id1521281368
Andriod Users: https://play.google.com/store/apps/details?id=academy.forex.thesignal&hl=en_US

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Forex Signals

GBP/USD Bounces off Support Level – Reason We Closed Signal Manually! 

The GBP/USD pair was closed at 1.27253 after placing a high of 1.27769 and a low of 1.26749. Overall the movement of the GBP/USD pair remained flat throughout the day. The GBP/USD pair remained flat due to mixed movements throughout the trading session. The pair closed its day at the same level it started its day with. In the first trading session, the pair continued to decline due to the strong US dollar and the UK’s coronavirus situation. However, the renewed Brexit hopes from Michel Barnier gave strength to the British Pound that recovered all of its daily losses and ended the GBP/USD pair’s day with a flat movement.

The GBP/USD pair was closed at 1.27253 after placing a high of 1.27769 and a low of 1.26749. Overall the movement of the GBP/USD pair remained flat throughout the day. The GBP/USD pair remained flat due to mixed movements throughout the trading session. The pair closed its day at the same level it started its day with. In the first trading session, the pair continued to decline due to the strong US dollar and the UK’s coronavirus situation. However, the renewed Brexit hopes from Michel Barnier gave strength to the British Pound that recovered all of its daily losses and ended the GBP/USD pair’s day with a flat movement.

The GBP/USD pair was closed at 1.27253 after placing a high of 1.27769 and a low of 1.26749. Overall the movement of the GBP/USD pair remained flat throughout the day. The GBP/USD pair remained flat due to mixed movements throughout the trading session. The pair closed its day at the same level it started its day with. In the first trading session, the pair continued to decline due to the strong US dollar and the UK’s coronavirus situation. However, the renewed Brexit hopes from Michel Barnier gave strength to the British Pound that recovered all of its daily losses and ended the GBP/USD pair’s day with a flat movement.

On the data front, at 13:30 GMT, the Flash Manufacturing PMI from Great Britain remained flat with the expectations of 54.3 in September. In September from the UK, the Flash Services PMI dropped to 55.1 from the projected 57.0 and previous 58.8 and weighed on British Pound.

The weak data from the UK exerted pressure on local currency. As the data suggested that manufacturing activity expanded while the services sector showed a drop in services activity in the UK. It was due to the announcement made by the Tory government to impose restrictions on bars, pubs, restaurants, and movie theaters to reduce the spread of coronavirus. PM Boris Johnson also issued a law not to have a gathering of more than six people; otherwise, it would be considered illegal. These restrictions impacted Britain’s economy and ultimately weighed on the Sterling and added pressure on GBP/USD prices.

Furthermore, the GBP/USD pair’s downside momentum could also be attributed to the strong rebound of the US dollar. The DXY- US Dollar Index rose above 94 Wednesday because of its safe-haven status and positive macroeconomic data.

The amount of uncertainty has recently increased over the effect of coronavirus cases globally and the increased tensions between the world’s two biggest economies. These uncertainties raised the safe-haven appeal that ultimately provided strength to the greenback and weighed on the GBP/USD pair.

Meanwhile, the greenback was also supported by the upbeat economic data on Wednesday with HPI in July at 1.0% against the forecast of 0.4% and Flash Manufacturing PMI at 53.5 against the forecasted 52.5. The US’s positive macroeconomic data raised the US dollar and exerted downside pressure on the GBP/USD pair that drove its prices to the lowest till 27th July.

However, the prices did not remain depressed and started to recover in Brexit’s hopes in the late trading session. On Wednesday, a top EU chief negotiator, Michel Barnier, said that the bloc was determined to get a Brexit trade deal with the UK. However, he also said that as the PM Boris Johnson has decided to break the withdrawal agreement, so the negotiations will be firm and realistic from the EU side.


This statement raised hopes that a Brexit deal was still on the table, and there were still chances that Britain would leave the European Union with a deal. These rising hopes and risk sentiment also raised the GBP/USD pair in the late trading session, and the pair produced a flat candle at the end of the day amid mixed market sentiment. 

Daily Technical losses

Support Resistance

1.2672 1.2776

1.2622 1.2828

1.2569 1.2879

Pivot point: 1.2725

On the technical side, the GBP/USD pair has bounced off above the support level of 1.2685 level, having tested the resistance level of 1.2790 level. The pair is trading within a downward channel which is also suggesting selling bias around 1.2780 level. However, our forex trading signal in GBP/USD was a bit risky; therefore, we decided to close the trade and hold the one in EUR/USD pair. Let’s wait for the next trade from our side now. Good luck! 

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Forex Market Analysis

Daily F.X. Analysis, September 24 – Top Trade Setups In Forex – U.S. Jobless Claims in Focus! 

The economic calendar is again busy with Federal Reserve events such as today, the Fed Chair Powell Testifies. Jerome Powell is expected to testify on the CARES Act before the House Financial Services Committee in Washington DC. Besides this, the eyes will be on the Existing Home Sales from the United States. Overall, the market is likely to exhibit corrections today.

The economic calendar is again busy with Federal Reserve events such as today, the Fed Chair Powell Testifies. Jerome Powell is expected to testify on the CARES Act before the House Financial Services Committee in Washington DC. Besides this, the eyes will be on the Existing Home Sales from the United States. Overall, the market is likely to exhibit corrections today.

The economic calendar is again busy with Federal Reserve events such as today, the Fed Chair Powell Testifies. Jerome Powell is expected to testify on the CARES Act before the House Financial Services Committee in Washington DC. Besides this, the eyes will be on the Existing Home Sales from the United States. Overall, the market is likely to exhibit corrections today.

Economic Events to Watch Today  

 

 

AUD/USD – Daily Analysis

The AUD/USD failed to stop its previous losing streak and dropped to a 2-months low around below the mid-0.7000 level mainly due to the risk-off market sentiment, triggered by the renewed concern about the second wave of coronavirus infections, which continued weighing on investors sentiment and undermined the perceived riskier Australian dollar. The broad-based U.S. dollar strength, supported by the combination of factors, also dragged the currency down across the ocean. At the moment, the AUD/USD is currently trading at 0.7033 and consolidating in the range between 0.7029 – 0.7083. 

The traders seem cautious to place any strong position ahead of the testimony by the Fed Chair Jerome Powell and Treasury Secretary Steven Mnuchin, which will influence the USD price dynamics and provide some fresh direction to the currency pair.

Worries that the coronavirus pandemic’s resurgence could ruin the global economic recovery keeps the market trading sentiment under pressure and weakened the perceived riskier Australian dollar. As per the latest report, the coronavirus COVID-19 cases continue to climb in Europe, U.K., and the U.S. Whereas, some E.U. countries are now facing the starting of the second wave coinciding with the onset of the flu season. That was witnessed after the World Health Organization’s regional director for Europe said that “We have a dire situation unfolding before us,” H further added that Europe’s number of weekly infections was higher now than at the first peak in March. 

At the US-China front, the long-lasting tussle between the United States and China remains on the play as State Mike Pompeo took help from France, Germany, and the U.K. to reject China’s claims of the South China Sea at the United Nations (U.N.). This also exerted downside pressure on the market trading sentiment and contributed to the currency pair losses. 

As a result, the broad-based U.S. dollar succeeded in extending its previous session gains and remained well bid on the day as investors turned to the safe-haven in the wake risk-off market sentiment. However, the U.S. dollar gains could be short-lived or temporary due to the worries that the U.S.’s economic recovery could be stopped because of the reappearance of coronavirus cases. Besides this, the gains in the U.S. dollar was further boosted after the hawkish comments by Chicago Fed President Charles Evans, that further quantitative easing may not provide additional support to the U.S. economy. However, the gains in the U.S. dollar kept the currency pair under pressure. Whereas, the dollar index, which pits the dollar against a bucket of 6-major currencies, stood at 94.336 on the day, close to a nine-week high.

Moving Ahead, the traders will keep their eyes on the U.S. economic docket, which will show the release of Initial Weekly Jobless Claims and New Home Sales data. Apart from this, the U.S. Federal Reserve (Fed) Chair Jerome Powell’s testimony will also be closely observed. Across the ocean, the market risk sentiment and developments surrounding the coronavirus will not lose their importance. 

Daily Technical Levels

 Support      Resistance  

0.7035       0.7147  

 0.6996      0.7218  

 0.6924      0.7258  

  Pivot Point: 0.7107  

  

AUD/USD– Trading Tip

The stronger U.S. dollar has also driven sharp selling in the AUD/USD pair as it trades at 0.7042 level today. The AUD/USD pair has formed three black crows patterns on a daily timeframe, suggesting odds of selling bias in the AUD/USD. However, the AUD/USD has closed a Doji candle at 0.7042 level, and we may see some bullish correction over the 0.7001 support level until the next resistance level of 0.7098 and 0.7152 level. 

USD/CAD– Daily Analysis

The USD/CAD currency pair extended its previous session bullish bias and kept gaining positive traction around above 1.3400 level, mainly due to the broad-based U.S. dollar strength. The bullish tone around the U.S. dollar was sponsored by the concerns over rising COVID-19 cases and fears of renewed lockdown measures, which kept the market trading sentiment under pressure and supported the greenback’s status as the global reserve currency. 

On the flip side, the currency pair bullish bias could also be attributed to the weaker crude oil prices, which undermined the demand for the loonie, a commodity-linked currency, and contributed to the pair gains. Currently, the USD/CAD pair is trading at 1.3396 and consolidating in the range between 1.3370 – 1.3412.

As we already mentioned that the equity market had been flashing red since the Asian session started. The reason could be associated with the major negative catalysts. Be it the concerns about the second wave of coronavirus diseases or the fears of renewed lockdown measures, not to forget the long-lasting US-China tussle, all these factors weigh on the market trading sentiment and helping the U.S. dollar to put the safe-have bids. Apart from this, the slowdown in Europe, alongside concerns expressed by U.S. Federal Reserve officials over the U.S. economy, pushed the equity market down. 

The broad-based U.S. dollar keeps its gaining streak and still reporting gains on the day amid market risk-off sentiment. However, the U.S. dollar gains could be short-lived or temporary as worries that the U.S.’s economic recovery could be stopped amid the resurgence of the second wave of coronavirus cases. Besides this, the U.S. dollar gains were further boosted by the hawkish comments by Chicago Fed President Charles Evans, suggesting that further quantitative easing may not provide additional support to the U.S. economy. However, the gains in the U.S. dollar kept the currency pair higher. Whereas, the dollar index, which pits the dollar against a bucket of 6-major currencies, stood at 94.336 on the day, close to a nine-week high.

Across the pond, the crude oil prices failed to stop its previous session, losing streak and remained pressed around below the mid-$39.00 marks. Besides, the possibilities of Libya resuming oil exports added further bearish pressures around the crude oil prices. Thus, the declines in crude oil prices undermined demand for the commodity-linked currency the loonie and contributed to the currency pair gains. 

Looking forward, the traders will keep their eyes on the U.S. Federal Reserve (Fed) Chair Jerome Powell’s testimony. Furthermore, the U.S. Jobless Claims and Housing data will also be key to watch. Whereas, the updates concerning the US-China relations and the U.S. stimulus package will not lose their importance.

 Daily Technical Levels

Support      Resistance

  1.3323      1.3418  

  1.3260      1.3450  

  1.3228      1.3513  

  Pivot Point: 1.3355  

  

USD/CAD– Trading Tip

The USD/CAD is trading with a bullish bias at 1.3402 level, having violated the ascending triangle pattern at 1.349 level, and now it’s heading further higher until the next resistance level of 1.3460. The MACD and three white soldiers pattern is suggesting chances of bullish bias in the pair. In contrast, the pair has also crossed over 50 periods EMA at 1.3254 level. Today we should consider taking a buying trade over 1.3349 level to target the 1.3462 level. 

 

USD/JPY – Daily Analysis

The USD/JPY pair was closed at 105.362 after placing a high of 105.494 and a low of 104.847. The pair USD/JPY extended its gains on Wednesday for the third consecutive day and peaked six previous days. The rising USD/JPY prices were due to the strong rebound of the U.S. dollar’s safe-haven status and upbeat market data.

On Wednesday, the U.S. dollar was strong due to Fed officials’ more hawkish comments that raised the U.S. dollar and helped it regain its safe-haven status. The strong bullish momentum in the USD/JPY pair was also supported by Japan’s weak PMI data on Wednesday.

At 05:30 GMT, the Flash manufacturing PMI from Japan for the month of September declined to 47.3 against the projected 48.0 and weighed on the Japanese Yen. The figures showed that Japan’s manufacturing sector viewed contraction in September that was negative for local currency but positive for the USD/JPY pair. At 09:30 GMT, All Industrial Activity in September remained flat at 1.3% from Japan.

On the U.S. front, the Housing Price Index for July advanced to 1.0% against the expectations of 0.4% and supported the U.S. dollar that helped the gains of USD?JPY pair on Wednesday. At 18:45 GMT, the highly awaited Flash Manufacturing PMI also rose to 53.5 against the anticipated 52.5 and supported the greenback that added further gains in the USD/JPY pair. However, the Flash Services PMMI remained flat with a projection of 54.5.

Meanwhile, the President of the Federal Reserve Bank of Cleveland, Loretta Mester, said on Wednesday that the U.S. economy had rebounded significantly from the losses caused by the pandemic induced lockdowns. However, she also said that the recovery was still narrow and was not sustainable. The Fed Vice Chair Randal K. Quarles said that the coronavirus event was an enormous economic shock in the first half of 2020. He also said that the recovery was underway, but a full recovery was far off as the risks remain on the downside.

Apart from this, the Fed Chair Jerome Powell, in his testimony, faced many questions regarding the next round of stimulus package. He replied that the difference between Democrats & Republicans over the package’s size remains and caused a delay. Powell also urged more spending to help the economy recover from the pandemic crisis. All these developments raised the U.S. dollar prices due to its safe-haven status and boosted the USD/JPY pair.

Moreover, the tensions between the U.S. and China also escalated after U.S. President Donald Trump blamed China and called for holding it accountable for the global spread of coronavirus. In response to this, Chinese President XI Jinping accused Trump of lying and insulting the platform of the U.N. He also said that he had no intension of having a cold war with any country. These harsh comments from both sides also raised uncertainty and helped the U.S. dollar to gain traction due to safe-haven nature and post gains in the USD/JPY pair on Wednesday.

Daily Technical Levels

Support      Resistance

  105.0000      105.6100  

  104.6400      105.8600  

  104.3900      106.2100  

  Pivot Point: 105.2500  

  

USD/JPY – Trading Tips

The USD/JPY is trading with a bullish bias to trade at 105.460 level, and the series for EMA are now extending at 105.550 level. On the lower side, the support stays at 104.840 level. The MACD is also in support of bullish bias amid a stronger U.S. dollar and reduced safe-haven appeal. Bullish crossover of 105.550 level may drive more buying until 106.258. The idea is to stay bearish below the 105.470 level today. Let’s wait for Jobless Claims from the U.S. to determine further trends. Good luck! 

 

Categories
Forex Signals

EUR/USD Breaking Below Intraday Support – Downward Channel In Play!

The EUR/USD pair was closed at 1.16598 after placing a high of 1.17187 and a low of 1.16511. Overall the movement of the EUR/USD pair remained bearish throughout the day. On Wednesday, the pair EUR/USD extended its losses and dropped for 4th consecutive session on the back of broad-based US dollar strength and resurgence of coronavirus cases in Europe.

The EUR/USD pair was closed at 1.16598 after placing a high of 1.17187 and a low of 1.16511. Overall the movement of the EUR/USD pair remained bearish throughout the day. On Wednesday, the pair EUR/USD extended its losses and dropped for 4th consecutive session on the back of broad-based US dollar strength and resurgence of coronavirus cases in Europe.

The EUR/USD pair was closed at 1.16598 after placing a high of 1.17187 and a low of 1.16511. Overall the movement of the EUR/USD pair remained bearish throughout the day. On Wednesday, the pair EUR/USD extended its losses and dropped for 4th consecutive session on the back of broad-based US dollar strength and resurgence of coronavirus cases in Europe.

On the data front, the German GfK Consumer Climate in September came in as -1.6against the forecasted -1.0 and previous -1.7 and weighed on the local currency that added further pressure on EUR/USD pair prices.

At 12:15 GMT, the French Flash Services PMI dropped to 47.5 in September from the forecasted 52.2 and weighed on Euro. Simultaneously, the French Flash Manufacturing PMI in September remained flat with the expectations of 50.9.

At 12:30 GMT, the German Flash Manufacturing PMI rose to 55.6 in September from the anticipated 52.0 and supported Euro. The German Flash Services PMI dropped to 49.1 from the expected 53.0 and weighed on Euro that added further pressure on EUR/USD pair. At 13:00 GMT, the Flash Manufacturing PMI rose to 53.7 from the forecasted 51.5 and supported single currency Euro. Simultaneously, the Flash Services PMI from the Eurozone declined to 47.6 against the anticipated 51.0 and weighed on Euro.

The Services sector in France, Germany, and the whole bloc was contracted during September due to an increased number of restrictive measures amid the coronavirus spread. The rising number of coronavirus in Europe has forced many countries to re-introduce restrictive measures like closing bars, restaurants, parks, and public gatherings. This has weighed heavily, not on the economic indicators but also the local currency that ultimately dragged the EUR/USD pair on Wednesday.

Furthermore, on the US front, the US dollar was also strong across the board that helped drag the EUR/USD prices on the downside. The US dollar has recently regained its safe-haven status and is continuously picking up pace due to rising appeal for a safe haven.

The latest comments in UN Annual General Assembly from US President Donald Trump against China raised global tensions on Wednesday. Trump blamed China and called the UN to hold China accountable for the worldwide spread of coronavirus. In contrast, Beijing called Trump a liar and said that he should respect the UN forum.

The rising tensions between the US & China gave a boost to US dollar prices and helped the EUR/USD pair to drop further. The US dollar was also strong because of the positive US economic data on the day as HPI in July rose to 1.0% from 0.4% of expectations, and the Flash Manufacturing PMI expanded with 53.5 points against the forecasted 52.5. The US Dollar Index also rose to its 8-weeks highest level at about 94.21 and posted gains. The strong US dollar added downside pressure on EUR/USD pair’s prices.


Daily Technical Levels

Support Resistance

1.1674 1.1757

1.1641 1.1807

1.1591 1.1839

Pivot point: 1.1724

The selling bias of the EUR/USD proceeds to control the market as it’s implementing selling bias at 1.1650. The bearish breakout of the 1.1650 level can stretch the downward trend unto the 1.1590 level while resistance lingers at the 1.1670 level. Checkout a trading plan below…

Entry Price – Sell 1.16521

Stop Loss – 1.16921

Take Profit – 1.16121

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

Bullish Bias in USD/CAD Dominates Amid Stronger Dollar – Signal Update!  

The USD/CAD pair extended its upward momentum to its highest level since 12th August, however, in the late trading session, the pair reversed its direction and closed its day with losses. The pair’s upward trend could be attributed to the strong rebound of the US dollar across the board due to more hawkish comments from the Federal Reserve officials and US Secretary Steven Mnuchin. In their testimony to Congress, the Federal Reserve Chairman Jerome Powell and US Treasury Secretary Steven Mnuchin gave their views about the economic condition and strategies.

The USD/CAD pair extended its upward momentum to its highest level since 12th August, however, in the late trading session, the pair reversed its direction and closed its day with losses. The pair’s upward trend could be attributed to the strong rebound of the US dollar across the board due to more hawkish comments from the Federal Reserve officials and US Secretary Steven Mnuchin. In their testimony to Congress, the Federal Reserve Chairman Jerome Powell and US Treasury Secretary Steven Mnuchin gave their views about the economic condition and strategies.

The USD/CAD pair extended its upward momentum to its highest level since 12th August, however, in the late trading session, the pair reversed its direction and closed its day with losses. The pair’s upward trend could be attributed to the strong rebound of the US dollar across the board due to more hawkish comments from the Federal Reserve officials and US Secretary Steven Mnuchin. In their testimony to Congress, the Federal Reserve Chairman Jerome Powell and US Treasury Secretary Steven Mnuchin gave their views about the economic condition and strategies.

Powell reiterated that the economic indicators were showing improvement in the market but still, there was a lot dependent on the coronavirus pandemic. He also said that country had left behind the depressed days where economic activities were shut down due to the coronavirus pandemic, but there is still much left to be done.

Whereas, Mnuchin stressed the need for the next round of stimulus measures and urged Congress to announce it soon. Another Fed official Charles Evans said that Fed’s interest rates could be raised before the 2% inflation target is met, and this raised the bars for the US dollar across the board. The US Dollar Index rose above 94 levels and pushed the USD/CAD pair above 1.334 level on Tuesday, highest since mid-August. 

However, the USD/CAD pair’s gains could not live for long and started to decline in the second half of the day despite the declining crude oil prices. The Canadian Dollar came under pressure when the crude oil prices dropped to $39 level on Tuesday amid the rising tensions between the US & China and coronavirus’s global resurgence.

The fears that rising coronavirus cases worldwide could force renewed lockdown measures globally as the European countries were re-imposing restrictive measures to curb the spread of coronavirus weighed on Crude oil prices on Tuesday. Meanwhile, the rising tensions between the US & China over the South China Sea after the US called for help from Europe and other allies against China’s claim to lands in the South China Sea, also exerted pressure on Crude oil prices. The declining crude oil prices weighed on the Canadian Dollar, and the USD/CAD prices reached its highest since 12th August. 


Technically, the USD/CAD pair has violated the strong resistance level of 1.3345, and on the higher side, the target for USD/CAD is likely to stay at 1.3394. The 50 EMA and the MACD are supporting 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… 

Entry Price – Buy 1.33457

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

Categories
Forex Signals

Gold Price Forecast, Sept 23 – Bearish Bias Dominates Amid Stronger USD! 

Today in the European trading session, the yellow metal prices failed to stop its early-day losing streak and still gaining negative traction around the $1,885 level, having hit the low of $1,873 level on the day. However, the broad-based U.S. dollar strength could be considered one of the main reasons behind the bullion losses. Hence, the U.S. dollar was supported by a strong U.S. housing market against rising global COVID-19 cases. 

Today in the European trading session, the yellow metal prices failed to stop its early-day losing streak and still gaining negative traction around the $1,885 level, having hit the low of $1,873 level on the day. However, the broad-based U.S. dollar strength could be considered one of the main reasons behind the bullion losses. Hence, the U.S. dollar was supported by a strong U.S. housing market against rising global COVID-19 cases. 

Today in the European trading session, the yellow metal prices failed to stop its early-day losing streak and still gaining negative traction around the $1,885 level, having hit the low of $1,873 level on the day. However, the broad-based U.S. dollar strength could be considered one of the main reasons behind the bullion losses. Hence, the U.S. dollar was supported by a strong U.S. housing market against rising global COVID-19 cases. 

Apart from this, the bullish bias in the U.S. dollar was further bolstered by the U.S. stimulus package’s hopes. Across the pond, the on-going progress around the S&P 500 Futures, backed by the hopes of the COVID-19 vaccine and further U.S. stimulus, also weighed on the yellow metal price. Elsewhere, the reason behind the upbeat S&P 500 Futures could also be associated with U.S. positive data, which tends to fuel the hopes of the U.S. economic recovery. 

On the contrary, the geopolitical tensions between China and some notable countries like the U.S. and U.K. became the key factor that helped the yellow-metal prices limit its deeper losses. The coronavirus (COVID-19) crisis also keeps challenging the market upbeat trading sentiment, which might give some support to the yellow metal prices.

Despite the concerns about the 2nd-round of coronavirus infections, the market trading sentiment has been flashing green since the day started. Thus, the on-going positive tone around the equity market tends to undermine the safe-haven metal. However, the market sentiment was being supported by the strong U.S. housing market. 

Detail suggested that the existing home sales rose to 6 million in August, the highest level in nearly 14 years. Moreover, the market risk sentiment was further bolstered by the Fed Chair Jerome Powell’s measured comments. He said on Tuesday that it might be possible for the Fed to raise interest rates before inflation starts to average 2%. This, in turn, underpinned the safe-haven U.S. dollar and contributed to the currency pair. 

Moreover, the market trading sentiment was further bolstered by the reports suggesting that the U.S. House of Representatives has announced a bill to support government spending ahead of a shutdown, which also boosted the Us dollar and contributed to the gold prices losses.

As a result, the broad-based U.S. dollar managed to maintain its previous session gains and still flashed green on the day amid upbeat U.S. data and pullback in technology shares. However, the U.S. dollar gains seem rather unaffected by the upbeat market tone and held its gaining streak, at least for now. Thus, the U.S. dollar gains kept the gold prices under pressure as the price of gold is negatively related to the U.S. dollar price. Whereas, the U.S. Dollar Index that tracks the greenback against a basket of other currencies edged up 0.18% to 94.162 by 9:38 PM ET (1:38 AM GMT). Furthermore, the second round of coronavirus infections keeps challenging the market risk tone, which might help the gold prices limit its deeper losses. As per the latest report, the U.S. has crossed 200,000 COVID-19 deaths tolls, and multiple European countries are imposing lockdown restrictions. Meanwhile, the U.K. set stricter measures on Tuesday, suggesting that the previous lockdown may need to be reimposed. 


Looking forward, the market traders will keep their eyes on the preliminary readings of September month PMIs from the U.K., Europe, and the U.S. for fresh direction. Meanwhile, the USD price dynamics and coronavirus headlines will be key to watch. Across the pond, the Fed Chair Jerome Powell’s second day of the congressional testimony will also b key to watch.

Daily Support and Resistance

S1 1858.21

S2 1881.21

S3 1890.7

Pivot Point 1904.2

R1 1913.7

R2 1927.2

R3 1950.19

Gold price extends to trade distinctly bearish at 1,890 level, disrupting the triple bottom support level of 1,903. On the lower side, gold may sink further until the next support level of 1,877 and 1,862. At the same time, resistance holds around 1,903 and 1,919 level. The bearish bias remains dominant today. Good luck! 

Categories
Forex Signals

GBP/USD Breaks Below Double Bottom – Quick Green Pips!

The GBP/USD currency pair extended its previous day losing streak and hit the multi weeks low near below the 1.2700 level. The GBP/USD hit a multi-day low the previous day after the Bank of England (BOE) Governor Andrew Bailey delivered downbeat comments and UK PM Boris Johnson announced activity restrictions to control the coronavirus (COVID-19) resurgence risk. Apart from this, the losses in the currency pair were further bolstered by the reports suggesting that the U.K.’s virus-lead deaths raised to a 2-month high, which fueled the worries about the U.K. economic recovery and undermined the GBP currency.

The GBP/USD currency pair extended its previous day losing streak and hit the multi weeks low near below the 1.2700 level. The GBP/USD hit a multi-day low the previous day after the Bank of England (BOE) Governor Andrew Bailey delivered downbeat comments and UK PM Boris Johnson announced activity restrictions to control the coronavirus (COVID-19) resurgence risk. Apart from this, the losses in the currency pair were further bolstered by the reports suggesting that the U.K.’s virus-lead deaths raised to a 2-month high, which fueled the worries about the U.K. economic recovery and undermined the GBP currency.

The GBP/USD currency pair extended its previous day losing streak and hit the multi weeks low near below the 1.2700 level. The GBP/USD hit a multi-day low the previous day after the Bank of England (BOE) Governor Andrew Bailey delivered downbeat comments and UK PM Boris Johnson announced activity restrictions to control the coronavirus (COVID-19) resurgence risk. Apart from this, the losses in the currency pair were further bolstered by the reports suggesting that the U.K.’s virus-lead deaths raised to a 2-month high, which fueled the worries about the U.K. economic recovery and undermined the GBP currency.

At the data front, the U.S. data showed that existing home sales rose to 6 million in August, the highest level in nearly 14 years. Moreover, the market risk sentiment was further bolstered by the Fed Chair Jerome Powell’s measured comments. He said on Tuesday that it might be possible for the Fed to raise interest rates before inflation starts to average 2%.

As a result, the broad-based U.S. dollar succeeded in maintaining its positive traction and remaining bullish on the day amid upbeat U.S. data and pullback in technology shares. However, the U.S. dollar gains seem rather unaffected by the upbeat market tone and held its gaining streak, at least for now. Thus, the U.S. dollar gains could be considered the major factor that kept the currency pair under pressure.

Additionally, weighing on the quote could be the BOE Governor Bailey’s statement, which raised concerns over the economic instability even before the activity restrictions, which increased courtesy to the watch today’s preliminary readings of September month PMI numbers. At the Brexit front, the discussions need a push on fisheries and less noise over the Internal Market Bill (IMB) to break the deadlock in talks. However, the U.K. parliament recently agreed to have a say over whether the IMB will break the Brexit Withdrawal Agreement Bill or not; if yes, it must not harm Northern Ireland.


The GBP/USD traded sharply bearish at 1.2678 support level, having violated the upward channel on the hourly chart. The already violated triple bottom level of 1.2780 is likely to keep the GBP/USD pair under pressure, below this pair can drop towards 1.2678 and 1.2603 level. On the higher side, the Sterling may drive upward movement until the 1.2780 level. We have already closed signal at profit and now we will be waiting a bit to capture next one.

Entry Price – Sell 1.27138
Stop Loss – 1.27538
Take Profit – 1.26738
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 Intraday Support Breakout Setup – Brace for Sell Setup! 

The AUD/USD closed at 0.71693 after placing a high of 0.72349 and a low of 0.71693. The AUD/USD pair declined for a third consecutive day on Tuesday to its lowest level since the 25th of August on the back of broad-based US dollar strength and dovish comments from RBA Deputy Governor Guy Debelle. 

The AUD/USD closed at 0.71693 after placing a high of 0.72349 and a low of 0.71693. The AUD/USD pair declined for a third consecutive day on Tuesday to its lowest level since the 25th of August on the back of broad-based US dollar strength and dovish comments from RBA Deputy Governor Guy Debelle. 

The AUD/USD closed at 0.71693 after placing a high of 0.72349 and a low of 0.71693. The AUD/USD pair declined for a third consecutive day on Tuesday to its lowest level since the 25th of August on the back of broad-based US dollar strength and dovish comments from RBA Deputy Governor Guy Debelle. 

On Tuesday, the Deputy Governor of Reserve Bank of Australia, Guy Debelle, said that the bank assessed various monetary policy options, including market intervention and negative interest rates, to reach its inflation and employment goals. 

The current rate of interest of RBA is at its record low of 0.25%that was slashed in an emergency meeting in mid-March to secure the Australian economy from falling into recession due to coronavirus pandemic induced lockdowns. RBA also launched an unlimited government bond-buying program and a cheap funding facility for banks. Debelle said that RBA’s board assessed other policy options as the outlook for inflation and employment was not consistent with the bank’s goals. Some under observation options were buying government bonds with maturities beyond three years as the RBA is currently targeting a 3-year yield at 0.25%. 

The statement that the negative interest rate was also an option that RBA was considering weighed heavily on Aussie and dragged the pair AUD.USD pair on Tuesday. Meanwhile, from the US side, Jerome Powell and Treasury Secretary Steven Mnuchin before the US Congress were held on Tuesday. Powell said that a lot of the economic recovery was still dependent on the coronavirus developments; however, the economic indicators showed improvements. 

Whereas, Steven Mnuchin said that another round of stimulus measures was needed for better recovery. Another Fed official Charles Evans said that interest rates could be raised before inflation reached 2%. These comments increased the US dollar strength across the board, lifted the US dollar Index above 94 levels, and added further pressure on AUD/USD pair prices. On the data front, the Richmond Manufacturing Index from the US raised to 21 points from the projected 12 points and supported the US dollar that weighed on already declining AUD/USD prices. 


The bearish bias dominates the AUD/USD pair as it trades at 0.7132 level. The candle’s closing over 0.71140 can trigger buying until 0.7160, but overall bias seems bearish below the 0.7165 level. On the lower side, a breakout of 0.7102 level may drive selling until 0.7075.

Entry Price – Sell 0.71263

Stop Loss – 0.71663

Take Profit – 0.70863

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 23 – Top Trade Setups In Forex – Manufacturing PMI in Focus! 

On the news, the eyes will remain on the PMI figures from Eurozone, United Kingdom, and the United States. All of the indicators are expected to perform better than before, therefore, buying can be seen in EUR, GBP during the European session and selling during the U.S. session.

On the news, the eyes will remain on the PMI figures from Eurozone, United Kingdom, and the United States. All of the indicators are expected to perform better than before, therefore, buying can be seen in EUR, GBP during the European session and selling during the U.S. session.

On the news, the eyes will remain on the PMI figures from Eurozone, United Kingdom, and the United States. All of the indicators are expected to perform better than before, therefore, buying can be seen in EUR, GBP during the European session and selling during the U.S. session.

Economic Events to Watch Today  

 


 

EUR/USD – Daily Analysis

The EUR/USD pair was closed at 1.17062 after placing a high of 1.17737 and a low of 1.16914. Overall the movement of the EUR/USD pair remained bearish throughout the day. The EUR/USD pair extended its losses on Tuesday and dropped to its lowest till July 27 amid the broad-based U.S. dollar strength. The pressure on EUR/USD pair was brought up by the hawkish comments from Evans and Powell on Tuesday.

In the earlier trading session, the U.S. stocks were higher ahead of Powell’s testimony before U.S. Congress. Meanwhile, the worries about the resurging coronavirus cases from across the globe continue to weigh. 

The S&P 500 futures and NASDAQ rose by 0.1% and 0.4% respectively on Tuesday after posting losses for four consecutive days. At the same time, Dow Jones Industrial Average continued to fell for the 5th consecutive day on Tuesday by 0.2%.

On the European side, the European stock market rebounded on Tuesday after the session’s sharp losses. Overall the market tone in Europe remained depressed amid the concerns that new lockdowns will disrupt the region’s recovery.

The fresh coronavirus outbreak in Europe has raised fears for more new lockdowns on the continent as PM Boris Johnson told people to work from home and imposed restrictions on bars, restaurants, and parks to tackle the second wave of coronavirus. Meanwhile, several European countries, including France, Spain, and Greece, have already imposed renewed lockdown restrictions. 

These virus-related tensions kept the local currency under pressure and dragged the EUR/USD pair on the downside.

Furthermore, on the U.S. side, the focus was all over on the testimony of Fed Chair Jerome Powell who said that there was no doubt that the U.S. economy was recovering, however, the recovery was still dependent on the COVID-19.

He said that economic activities had come out of its depressed phase that started in the second quarter of this year when the lockdown was imposed globally. He explained that many economic indicators were showing improvement and a full recovery could only come when people become confident that a broad range of activities could be re-engaged. 

Moreover, the U.S. secretary of State, Steven Mnuchin, urged more spending to help economic recovery from the coronavirus pandemic. The fed important official Chares Evans said that interest rates could be raised before inflation reached 2%. These hawkish comments from the Fed supported the U.S. dollar that ultimately weighed on EUR/USD pair and supported its daily losses.

On the data front, the Consumer confidence from Europe came in as -14 against the forecasted -15 and supported Euro that capped further losses in EUR/USD pair. The Richmond Manufacturing Index on Tuesday from the U.S. increased to 21 from the predicted 12 and helped the U.S. dollar that added further pressure on EUR/USD pair.

Daily Technical Levels

Support Resistance

1.1709      1.1851

1.1649      1.1933

1.1568      1.1993

Pivot Point: 1.1791

EUR/USD– Trading Tip

The stronger U.S. dollar has also driven sharp selling in the EUR/USD pair as it trades at 1.1680 level today. The pair ha formed three black crows pattern on a daily timeframe, which is suggesting odds of selling bias in the EUR/USD. However, the EUR/USD has closed a Doji candle at 1.1685 level and we may see some bullish correction over 1.1676 until the next resistance level of 1.7020 and 1.1745 level today. 

GBP/USD – Daily Analysis

During Wednesday’s European trading session, the GBP/USD currency pair extended its previous day losing streak and hit the multi weeks low near below the 1.2700 level. The currency pair hit a multi-day low the previous day after the Bank of England (BOE) Governor Andrew Bailey delivered downbeat comments and UK PM Boris Johnson announced activity restrictions to control the coronavirus (COVID-19) resurgence risk. Apart from this, the losses in the currency pair were further bolstered by the reports suggesting that the U.K.’s virus-lead deaths raised to a 2-month high, which fueled the worries about the U.K. economic recovery and undermined the GBP currency. 

Meanwhile, the on-going Brexit woes also prob the currency pair bulls. Across the pond, the broad-based U.S. dollar strength, supported by upbeat U.S. economic data, could also be considered as the key factor that kept the currency pair under pressure. At this particular time, the GBP/USD currency pair is currently trading at 1.2704 and consolidating in the range between 1.2682 – 1.2748.

While discussing the positive side of the story, the renewed optimism over the coronavirus (COVID-19) aid package helping the market trading sentiment on the day. The U.S. Congress passed the stop-gap funding to avoid a government shutdown in October, which raised the hopes of breaking stimulus deadlock. Besides this, the reason for the upbeat market mood could be associated with the latest upbeat U.S. economic data. 

At the data front, the U.S. data showed that existing home sales rose to 6 million in August, the highest level in nearly 14 years. Moreover, the market risk sentiment was further bolstered by the Fed Chair Jerome Powell’s measured comments. He said on Tuesday that it might be possible for the Fed to raise interest rates before inflation starts to average 2%.

As in result, the broad-based U.S. dollar succeeded to maintain its positive traction and remain bullish on the day amid upbeat U.S. data and pullback in technology shares. However, the U.S. dollar gains seem rather unaffected by the upbeat market tone and held its gaining streak, at least for now. Thus, the gains in the U.S. dollar could be considered as the major factor that kept the currency pair under pressure. 

Across the ocean, the reports that suggest the worsening condition in the U.K. also keeps the currency pair under pressure. As per the latest report, the COVID-19 related deaths climbed the most since July 14, with Tuesday’s death losses being 37. As in result, the UK PM Johnson warned, “if Reprodtuon of coronavirus rate does not go below 1, there could be more restrictions.” This, in turn, undermined the sentiment around the GBP and dragged the currency pair below 1.2700. 

During the day, the U.K. Foreign Minister Dominic Raab gave warning that the new coronavirus restrictions announced by the Prime Minister (PM) Boris Johnson should be taken seriously and proportionate. These remarks fuelled further worries and kept the traders cautious. 

Additionally, weighing on the quote could be the statement of the BOE Governor Bailey, which raised concerns over the economic instability even before the activity restrictions, which increased courtesy to the watch today’s preliminary readings of September month PMI numbers.

At the Brexit front, the discussions need a push on fisheries and less noise over the Internal Market Bill (IMB) to break the deadlock in talks. However, the U.K. parliament recently agreed to have a say over whether the IMB will break the Brexit Withdrawal Agreement Bill or not, if yes it must not harm Northern Ireland. 

The market traders will keep their eyes on the preliminary readings of September month PMIs from the U.K., Europe, and the U.S. for fresh direction. Meanwhile, the USD price dynamics and coronavirus headlines will be key to watch. 

 Daily Technical Levels

Support Resistance

1.2737      1.2930

1.2659      1.3045

1.2544      1.3123

Pivot point: 1.2852

GBP/USD– Trading Tip

The GBP/USD traded sharply bearish at 1.2678 support level, having violated the upward channel on the hourly chart. The already violated triple bottom level of 1.2780 is likely to keep the GBP/USD pair under pressure, below this pair can drop towards 1.2678 and 1.2603 level. On the higher side, the Sterling may drive upward movement until the 1.2780 level. The 50 periods EMA is likely to extend selling until 1.2670 level. The MACD is also moving into the selling zone therefore let’s consider taking a sell trade below 1,2750 level today. 

 

USD/JPY – Daily Analysis

The USD/JPY pair managed to keep its early-day winning streak and picked up further bids around well above 105.00 level mainly due to the broad-based U.S. dollar fresh strength, backed by the upbeat U.S. economic data, which eventually heightened the hopes about the U.S. economic recovery. The market risk-on sentiment, supported by the Fed Chair Jerome Powell’s measured comments and upbeat U.S. data, undermined the safe-haven Japanese yen and contributed to the currency pair gains. 

In the meantime, the risk-on market sentiment was further bolstered by the optimism over the coronavirus (COVID-19) aid package. Which also helps the currency pair to put the bids. On the contrary, the rising cases of coronavirus (COVID-19) keep challenging the market risk-on sentiment, which could be considered as the key factor that kept the lid on any additional gains in the currency pair. At this moment, the USD/JPY currency pair is currently trading at 105.10 and consolidating in the range between 104.90 – 105.19.

Despite intensifying concerns over the escalation in the Sino-American tussle and the rising cases of coronavirus (COVID-19), the investors continued to cheer the upbeat data from the U.S. At the data front, the U.S. data showed that existing home sales rose to 6 million in August, the highest level in nearly 14 years. Moreover, the market risk sentiment was further bolstered by the Fed Chair Jerome Powell’s measured comments. He said on Tuesday that it might be possible for the Fed to raise interest rates before inflation starts to average 2%. This, in turn, underpinned the safe-haven U.S. dollar and contributed to the currency pair. 

Besides this, the market trading sentiment was also cheered the latest optimism concerning the coronavirus (COVID-19) aid package. It is worth reporting that the U.S. Congress recently showed readiness to the bipartisan stop-gap funding bill to avert the government shutdown by the end of the current month, which helps to recede differences between the ruling Republicans and the opposition Democratic party. However, the hopes of stimulus could be considered as one of the key factors that have been supporting the market sentiment.

Despite the risk-on market sentiment, the broad-based U.S. dollar succeeded to gain positive traction and took strong bids on the day amid upbeat U.S. data and pullback in technology shares. However, the U.S. dollar gains seem rather unaffected by the upbeat market tone and held its gaining streak, at least for now. Thus, the modest gains in the U.S. dollar could be considered as the major factor that kept the currency pair higher. 

On the contrary, the long-lasting tussle between the world’s two largest economies remained on the cards as portrayed by U.S. Secretary of State Mike Pompeo’s latest comments, which could be considered as the key factor that capped further upside momentum int he currency pair.

The preliminary readings of September month PMIs from the U.K., Europe, and the U.S. for fresh direction. Meanwhile, the USD price dynamics and coronavirus headlines will be key to watch. 

Daily Technical Levels

Support Resistance

104.44      105.10

104.15      105.47

103.78      105.76

Pivot point: 104.81

USD/JPY – Trading Tips

Despite sharp movement in the other currency pairs, the USD/JPY continues to follow the same technical setup. On the 4 hour chart, the downward channel is anticipated to drive selling sentiment in the USD/JPY pair as it provides resistance at the 105.250 level. On the downside, the support lingers at 104.460 level, and a bearish breakout can lead USD/JPY price further lower towards 103.700 level. The focus will remain on the U.S. manufacturing and services PMI figures to drive the further direction of the pair.  

Good luck! 

 

Categories
Forex Signals

USD/CAD Extend Previous Session Bullish Bias – Brace to Capture Quick Buy!

Today in the European trading session, the USD/CAD currency pair successfully extended its previous session winning streak and consolidated the previous day’s strong positive move to a 6-week high. However, the pair’s positive tone could be associated with the broad-based US dollar on-going strength, backed by the risk-off market tone.

Today in the European trading session, the USD/CAD currency pair successfully extended its previous session winning streak and consolidated the previous day’s strong positive move to a 6-week high. However, the pair’s positive tone could be associated with the broad-based US dollar on-going strength, backed by the risk-off market tone.

Today in the European trading session, the USD/CAD currency pair successfully extended its previous session winning streak and consolidated the previous day’s strong positive move to a 6-week high. However, the pair’s positive tone could be associated with the broad-based US dollar on-going strength, backed by the risk-off market tone.

The reason for the USD/CAD pair bullish bias could also be attributed to the steep fall in crude oil prices, which tend to weaken the demand for the commodity-linked currency the loonie, and contributed to the currency pair gains. Currently, the USD/CAD currency pair is currently trading at 1.3314 and consolidating in the range between 1.3296 – 1.3346. Moving on, the traders seem cautious to place any strong position amid expectations that the Fed Chair Jerome Powell will reaffirm to keep interest rates lower for longer during his congressional testimony later on the day.

Intensifying probabilities of fresh lockdown measures to control the 2nd-wave of coronavirus outbreak pushed global equity markets down. This, in turn, boosted the US dollar’s status as the reserve currency. The latest headlines suggest that the US Secretary of State Mike Pompeo took help from France, Germany, and the UK to reject China’s South China Sea claims at the United Nations (UN).

The broad-based US dollar has resumed its gaining streak at the USD front since the European session started and was being supported by some heavy selling pressure around the equity market. Meanwhile, the concerns about rising US-China tensions also increased the safe-haven demand in the market, which also helps the US dollar as it safe-aven status.

The crude oil prices failed to stop its previous session across the ocean, losing streak and taking rounds below the $40.00 mark. Nevertheless, the bearish bias around the crude oil prices could be attributed to the renewed worries over the economic recovery after the coronavirus (COVID-19) resurgence in Europe and the United Kingdom.


Besides, the possibilities of Libya resuming oil exports added further bearish pressures around the crude oil prices. Thus, the declines in oil prices undermined demand for the commodity-linked currency the loonie and contributed to the currency pair gains.

Entry Price – Buy 1.32706
Stop Loss – 1.32306
Take Profit – 1.33106
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 Price Forecast, Sept 22 – Choppy Session in Play! 

The safe-haven-metal prices failed to stop its previous session losing streak and catch further offers near below $1,900 level, mainly due to the broad-based U.S. dollar strength triggered by the risk-off market sentiment. Thus, the broad-based U.S. dollar strength from the multi-month low could be recognized as one of the main causes behind the yellow-metal latest weakness as the market’s risk-off wave tend to prefer the U.S. dollar above all, which in turn has an inverse correlation with the safe-haven yellow metal. The losses in the safe-haven U.S. dollar could be short-lived or temporary as the second wave of coronavirus continuously picks up the pace, which fuels worries over the U.S. economic recovery. 

The safe-haven-metal prices failed to stop its previous session losing streak and catch further offers near below $1,900 level, mainly due to the broad-based U.S. dollar strength triggered by the risk-off market sentiment. Thus, the broad-based U.S. dollar strength from the multi-month low could be recognized as one of the main causes behind the yellow-metal latest weakness as the market’s risk-off wave tend to prefer the U.S. dollar above all, which in turn has an inverse correlation with the safe-haven yellow metal. The losses in the safe-haven U.S. dollar could be short-lived or temporary as the second wave of coronavirus continuously picks up the pace, which fuels worries over the U.S. economic recovery. 

The safe-haven-metal prices failed to stop its previous session losing streak and catch further offers near below $1,900 level, mainly due to the broad-based U.S. dollar strength triggered by the risk-off market sentiment. Thus, the broad-based U.S. dollar strength from the multi-month low could be recognized as one of the main causes behind the yellow-metal latest weakness as the market’s risk-off wave tend to prefer the U.S. dollar above all, which in turn has an inverse correlation with the safe-haven yellow metal. The losses in the safe-haven U.S. dollar could be short-lived or temporary as the second wave of coronavirus continuously picks up the pace, which fuels worries over the U.S. economic recovery. 

On the contrary, the market risk-off sentiment, triggered by the reappearance of coronavirus cases, becomes key factors that kept a check on any additional losses in the gold. Apart from this, the on-going US-China tussle over the South China Sea might also help the gold prices to limit its deeper losses. As of writing, the yellow metal prices are currently trading at 1,901.96 and consolidates in the range between the 1,894.90 – 1,919.90.

As we all know, the market risk tone has been sour since the day started, and the reason could be associated with the long-lasting US-China tussle and growing market worries about the ever-increasing number of coronavirus cases. Elsewhere, the risk-off market sentiment was further bolstered by the long-lasting tussle between the United States and China, which became further soured after U.S. Secretary of State Mike Pompeo took helps from France, Germany, and the U.K. to reject China’s claims of the South China Sea at the United Nations (U.N.). This eventually placed a downside pressure on the market trading sentiment and underpinned the safe-haven assets. 

Apart from the Sino-American tussle, the expectations that the much-awaited U.S. phase 4 fiscal package will also be delayed favored the risk-off market. The U.S. dollar succeeded in stopping its early-day losses and took the safe-haven bids on the day amid market risk-off sentiment. However, the U.S. dollar gains could be short-lived or temporary due to the worries that the economic growth in the U.S. could be stopped because of the reappearance of coronavirus cases. However, the U.S. dollar gains kept the gold prices under pressure as the price of gold is inversely related to the price of the U.S. dollar. Whereas, the U.S. Dollar Index, which tracks the greenback against a basket of other currencies, edged higher 0.04% to 93.602 by 9:48 PM ET (1:48 AM GMT).

Looking forward, the market players will keep their eyes on the comments from the U.S. Federal Reserve Chairman Jerome Powell and other Fed policymakers. Meanwhile, the on-going drama surrounding the US-China relations and updates about the U.S. stimulus package will not lose its importance. Given the holiday in Japan, due to the Autumnal Equinox Day, coupled with an absence of major data/events, the USD moves and coronavirus headline will be key to watch.


Daily Support and Resistance

S1 1920.66

S2 1941.35

S3 1950.45

Pivot Point 1962.04

R1 1971.14

R2 1982.73

R3 2003.42

Gold prices dropped distinctly from 1,935 mark to 1,888 level in the wake of the hawkish Fed Chair Jerome Powell’s speech. The precious metal is currently jumping off to achieve 38.2% Fibonacci retracement at 1,914, and beyond this, the following resistance lingers at 1,921 and 1,930. Let’s keep a focus on 1,907 today as gold can trade bullish beyond this and bearish beneath the same level today. Good luck! 

Categories
Forex Signals

AUD/USD Bearish Breakout, Fakesout – Quick Update on Signal!  

During Tuesday’s early European trading hours, the AUD/USD currency pair failed to erase its early-day losses and took further offers near below the 0.7200 marks, mainly due to the risk-off market sentiment backed by the escalation of tensions between the U.S. and China. Furthermore, the virus worries and the inability to pass the U.S. fiscal package also weighed on the risk sentiment, undermining the perceived riskier Australian dollar and contributing to the currency pair gains. 

During Tuesday’s early European trading hours, the AUD/USD currency pair failed to erase its early-day losses and took further offers near below the 0.7200 marks, mainly due to the risk-off market sentiment backed by the escalation of tensions between the U.S. and China. Furthermore, the virus worries and the inability to pass the U.S. fiscal package also weighed on the risk sentiment, undermining the perceived riskier Australian dollar and contributing to the currency pair gains. 

During Tuesday’s early European trading hours, the AUD/USD currency pair failed to erase its early-day losses and took further offers near below the 0.7200 marks, mainly due to the risk-off market sentiment backed by the escalation of tensions between the U.S. and China. Furthermore, the virus worries and the inability to pass the U.S. fiscal package also weighed on the risk sentiment, undermining the perceived riskier Australian dollar and contributing to the currency pair gains. 

The broad-based U.S. dollar strength backed by the market’s safe-haven demand also contributed to the currency pair losses. Moreover, the currency pair’s losses were further bolstered by the RBA Deputy Governor Guy Debelle’s less-confident comment. 

On the 2nd-day of the week, the Aussie buyers have nothing to cheer. Be it coronavirus woes or the further hardships for the Sino-American trade deal, not to forget the long-lasting inability to pass the U.S. fiscal package, everything has fueled the market risk-off sentiment, which tends to undermine the perceived riskier Australian dollar and contributed to the currency pair losses. 

At the US-China front, the long-lasting tussle between the United States and China became further soured after U.S. Secretary of State Mike Pompeo took helps from France, Germany, and the U.K. to reject China’s claims of the South China Sea at the United Nations (U.N.). This eventually exerted downside pressure on the market trading sentiment and undermined the Australian dollar’s perceived riskier and contributed to the currency pair losses. 

On the other hand, the struggle of the U.S. Congress to break the stimulus deadlock ahead of the September-end deadline keeps the traders cautious as Democrats and Republicans still have differences over the package’s size. Besides this, the renewed coronavirus woes and fears of fresh lockdown measures to curb the second wave of the outbreak also kept the market trading sentiment under pressure. At the coronavirus front, the coronavirus (COVID-19) resurgence in Europe and the U.K. is picking up further pace, which keeps the fears of the lockdowns on the cards. As per the latest report, the authorities in the U.K. recently announced restrictions over activities. Simultaneously, regional lockdowns have been in practice in some parts of the bloc, and the pubs and restaurants in the U.K. ordered to close at 10:00 PM. 

Considering the coronavirus (COVID-19) condition, the BOE policymakers marked their pessimism while the European Central Bank (ECB) President Christine Lagarde and Germany’s Finance Minister Olaf Scholz have already shared its dovish view over the virus. Across the pond, the Fed Chairman’s first version of testimony also cited that the track ahead for the economy remains “highly uncertain”, which in turn keeps the market trading sentiment under pressure and helps the safe-haven assets. 

As a result, the broad-based U.S. dollar succeeded in extending its previous session gains and remained well bid on the day as investors turned to the safe-haven in the wake of an intensified tussle between US-China. Thus, the gains in the U.S. dollar kept the currency pair lower. Whereas, the U.S. Dollar Index, which tracks the greenback against a basket of other currencies, edged higher 0.04% to 93.602 by 9:48 PM ET (1:48 AM GMT).

Additionally, weighing on the currency pair could be the RBA Deputy Governor Guy Debelle’s negative comments that lower the exchange rate would surely help the economy. He further added that the economy is currently facing a gradual and uneven recovery. He also noted that the Aussie dollar is broadly aligned with fundamentals, and intervention may not be effective.

In the absence of significant data on the day, 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. Whereas, the release of Existing Home Sales and Richmond Manufacturing Index will be key to watch.


The bearish bias dominates the AUD/USD pair as it trades over a double bottom support level of 0.7191 level. Holding above 0.7191 level can extend bullish bias; however, the pair may find an immediate resistance at 0.7234 level. A bullish crossover of 0.7234 level is likely to drive a bullish trend until the 0.7290 level today. On the lower side, the pair may find support at 0.7143 level. The signal is already closed at stop loss, as the bearish breakout setup has become a fakeout setup, and the AUD/USD pair is now moving upwards. Let’s brace for the next trade setup. Good luck! 

Categories
Forex Market Analysis

Daily F.X. Analysis, September 22 – Top Trade Setups In Forex – Fed Chair Powell Testifies!

The economic calendar is again busy with Federal Reserve events such as today, the Fed Chair Powell Testifies. Jerome Powell is expected to testify on the CARES Act before the House Financial Services Committee in Washington DC. Besides this, the eyes will be on the Existing Home Sales from the United States. Overall, the market is likely to exhibit corrections today.

The economic calendar is again busy with Federal Reserve events such as today, the Fed Chair Powell Testifies. Jerome Powell is expected to testify on the CARES Act before the House Financial Services Committee in Washington DC. Besides this, the eyes will be on the Existing Home Sales from the United States. Overall, the market is likely to exhibit corrections today.

The economic calendar is again busy with Federal Reserve events such as today, the Fed Chair Powell Testifies. Jerome Powell is expected to testify on the CARES Act before the House Financial Services Committee in Washington DC. Besides this, the eyes will be on the Existing Home Sales from the United States. Overall, the market is likely to exhibit corrections today.

Economic Events to Watch Today  

 

EUR/USD – Daily Analysis

The EUR/USD pair was closed at 1.7713 after placing a high of 1.18715 and a low of 1.17315. Overall the movement of the EUR/USD pair remained bearish throughout the day. The EUR/USD pair slumped on Monday amid the reclaimed safe-haven status by the U.S. dollar and the re-imposed lockdown measures to curb the spread on the virus in Europe.

The U.S. Dollar Index was up by 0.8% to 93.69 level on Monday, its highest level since August 13. This supported the greenback on its way to reclaiming its safe-haven status and pulled the EUR/USD pair on the downside.

According to the European health minister, the second wave of coronavirus in France, Austria, and the Netherlands could spike and affect the European countries and hold threats that Germany could also see infection spikes. 

The U.K. is also reporting new coronavirus cases and the Britain Chief Scientific adviser, Patrick Vallance, said that there could be 50,000 new infections every day by mid-October if the virus continues at its current rate. The rising number of coronavirus cases from Europe weighed on prices of EUR/USD pair on Monday.

Furthermore, the European Central Bank President Christine Lagarde said that Europe’s economic rebound was uncertain and uneven, and it required a careful assessment of incoming data, including the evolution of the coronavirus pandemic. On Monday, Lagarde said that the recovery strength was dependent on the future evolution of the pandemic and containment policies’ success. These remarks came in as the economists expect the ECB to expand its emergency 1.35T euros bond-buying program this year to revive inflation.

Germany’s Bundesbank also said that it expected the recovery in Europe’s largest economy to continue at a slower pace during the rest of the year. These concerning comments raised caution and stressed the local currency that ended up weighing on EUR/USD pair prices on Monday.

Meanwhile, the risk sentiment further deteriorated after the US-China tensions continue to expand along with the delayed U.S. stimulus measure that raised the safe-haven appeal. The U.S. dollar regained its safe-haven status and was up by 0.8% on Monday. This strong U.S. dollar added further pressure on EUR/USD prices.

Daily Technical Levels

Support Resistance

1.1709     1.1851

1.1649     1.1933

1.1568     1.1993

Pivot Point: 1.1791

EUR/USD– Trading Tip

The stronger U.S. dollar has also driven sharp selling in the EUR/USD pair as it trades at 1.1768 level today. The pair gains support over a double bottom pattern of 1.1736, and a bullish crossover of 1.1773 level may extend the buying trend until 1.1797 level. Bullish bias can remain strong today as most of the traders may do profit-taking in the EUR/USD pair. Let’s stay bullish over the 1.1728 level and bearish below the same level today.

GBP/USD – Daily Analysis

Today in the Asian trading hours, the GBP/USD pair was closed at 1.28156 after placing a high of 1.29664 and a low of 1.27751. Overall the movement of the GBP/USD pair remained bearish throughout the day. The GBP/USD pair extended its previous day’s losses on Monday and fell to its 5-days lowest level amid the broad-based U.S. dollar strength and rising number of coronavirus cases in the U.K., along with Brexit worries.

The rising signals drove the downward momentum in the Pound to U.S. dollar exchange rate that the U.K. government could send Britain into another lockdown. The rising concerns over Britain’s economy and the stalled Brexit process further weighed on the Sterling that dragged the GBP/USD prices on Monday.

The top science adviser of the U.K., Sir Patrick Vallance, said on Monday that U.K.’s coronavirus numbers could reach new 50,000 cases per day by mid-October. His warning was based on current trends that showed that the pandemic was doubling every seven days.

Valance said that 50,000 figure was a warning and not a prediction. In response to his warning, the fears that the U.K.’s economy could see another round of lockdown measures to control the spread of coronavirus raised and weighed on local currency. The weak British Pound added further pressure on the declining GBP/USD prices on Monday.

On the Brexit front, the former Prime Minister of the UK, Theresa May, said that she could not support the government’s plan to override parts of its Brexit agreement with the European Union. She said that moving ahead with this law would break international law and damage the United Kingdom’s trust. On Tuesday, the internal market bill will be voted on in the Commons as it had already passed the first hurdle last week. Ministers have said that the bill contains vital safeguards to protect Northern Ireland and the rest of the U.K. 

In simple terms, the bill is designed to enable goods and services to flow freely across England, Scotland, Wales, and Northern Ireland after Brexit on January 1 when U.L. will leave the E.U.’s single market customs union. However, this bill gives the government the power to change the aspects of the E.U. withdrawal agreement that was signed between both nations earlier this year. Theresa May has spoken against this bill, and the markets have started selling British Pound that ultimately led to a declining GBP/USD pair.

On the data front, the Rightmove Housing Price Index in September rose to 0.2% against the previous -0.2% and supported GBP. On the other hand, the greenback was strong across the board as it regained its safe-haven status amid the increasing concerns over the U.S. stimulus measure. The strength of the U.S. dollar added further pressure on GBP/USD pair on Monday.

 Daily Technical Levels

Support Resistance

1.2737     1.2930

1.2659     1.3045

1.2544     1.3123

Pivot point: 1.2852

GBP/USD– Trading Tip

The GBP/USD traded sharply bearish at 1.2784 support level, having violated the upward channel on the hourly chart. The triple bottom level of 1.2780 is likely to keep the GBP/USD pair supported, and violation of this may lead the Cable towards 1.2727 level. On the higher side, the GBP/USD may drive upward movement until the 1.2840 level. The 50 periods EMA are likely to extend selling until 1.2727 level. The MACD is currently moving into the bullish zone; however, it can be merely for correction. Let’s consider taking a sell trade below 1.2780 level today. 

 

USD/JPY – Daily Analysis

The USD/JPY currency pair failed to extend its early-day recovery moves and dropped to a 104.47 level while representing 0.11% losses on the day. However, the currency pair losing streak could be attributed to the downbeat market sentiment, which tends to underpin the safe-haven Japanese yen and contributed to the currency pair declines. Hence, the market trading sentiment was being pressured by the negative comments from the Federal Reserve members. 

Apart from this, the recent resurgence in the pandemic, mainly in Europe and the U.K., also weighing on the market risk tone. Across the pond, the broad-based U.S. dollar weakness, triggered by the multiple factors, could also be considered as a key factor that dragged the currency pair lower. Currently, the USD/JPY currency pair is currently trading at 104.53 and consolidating in the range between 104.47 – 104.75.

However, the market risk tone extended its previous 5-consecutive day selling bias as fears of the coronavirus (COVID-19) resurgence disturbed the global markets. In the meantime, the Federal Reserve members’ downbeat comments also exerted pressure on the global traders. It is worth mentioning that the Fed Chair Jerome Powell said that the economic recovery track remains “highly uncertainty.” Moreover, the Federal Reserve Bank of St. Louis President James Bullard, also delivered a dovish tone while stating that the Fed will be much less pre-emptive about increasing rates.

On the flip side, the renewed tussle between the U.S. and China and Trump’s latest warnings to the firms helping Iran build arms also exerted downside pressure on the market risk-tone. The tension further boosted after the U.S. Secretary of State Mike Pompeo took help from France, Germany, and the U.K. to reject China’s South China Sea claims at the United Nations (U.N.). This, in turn, underpinned the safe-haven Japanese yen and dragged the currency pair lower.

At the coronavirus front, the recent hike in the virus cases, mainly in Europe and the U.K., probes the buyers. As per the World Health Organization’s (WHO) regional director Hans Kluge, Europe reported 300,000 new infections, the most significant weekly rise ever, including the first spike in spring. Meanwhile, the U.K. is also preparing to slap new restrictions, which keeps the market trading ton sluggish and contributed to the currency pair losses.

Across the ocean, the decision-makers from the European Central Bank (ECB) and the Reserve Bank of Australia (RBA) also cited their worries in the latest appearances, which also probe the bulls. This was evident from a bearish sentiment around the equity markets, which underpinned the safe-haven Japanese yen and contributed to the USD/JPY pair’s downfall.

Despite the risk-off market sentiment, the broad-based U.S. dollar failed to gain any positive traction and edged lower on the day amid worries over the U.S. Congress’ stimulus impasse. Furthermore, the concerns about the ever-increasing number of coronavirus cases faded the optimism over the V-shape recovery, which also kept the U.S. dollar under pressure. However, the losses in the U.S. dollar kept the USD/JPY currency pair lower. Whereas, the U.S. Dollar Index that tracks the greenback against a bucket of other currencies fell to 93.623.

Looking forward, the traders will keep their eyes on the continuous drama surrounding the US-China relations and updates about the U.S. stimulus package. Given the holiday in Japan, due to the Autumnal Equinox Day, coupled with an absence of major data/events, the USD moves and coronavirus headline will be key to watch.

Daily Technical Levels

Support Resistance

104.44     105.10

104.15     105.47

103.78     105.76

Pivot point: 104.81

USD/JPY – Trading Tips

Despite sharp movement in the other currency pairs, the USD/JPY continues to follow the same technical setup. On the 4 hour chart, the downward channel is anticipated to drive selling sentiment in the USD/JPY pair as it provides resistance at the 104.800 level. On the downside, the support lingers at 104.100 level, and a bearish breakout can lead USD/JPY price further lower towards 103.700 level. The eyes will remain on the Fed Chair Powell Testifies as it may drive further market trends. 

Good luck! 

 

Categories
Forex Market Analysis

Daily F.X. Analysis, September 21 – Top Trade Setups In Forex – Fed Chair Powell in Focus! 

The market’s fundamental side is likely to offer us a Fed Chair Powell Speech later during the New York session. Federal Reserve Chair Jerome Powell is due to speak, along with the rest of the FOMC board members, about rule-making for the Community Reinvestment Act, via satellite. It may drive volatility in the market today.

The market’s fundamental side is likely to offer us a Fed Chair Powell Speech later during the New York session. Federal Reserve Chair Jerome Powell is due to speak, along with the rest of the FOMC board members, about rule-making for the Community Reinvestment Act, via satellite. It may drive volatility in the market today.

The market’s fundamental side is likely to offer us a Fed Chair Powell Speech later during the New York session. Federal Reserve Chair Jerome Powell is due to speak, along with the rest of the FOMC board members, about rule-making for the Community Reinvestment Act, via satellite. It may drive volatility in the market today.

Economic Events to Watch Today  

 

 

EUR/USD – Daily Analysis

The EUR/USD pair was closed at 1.18404 after placing a high of 1.18703 and a low of 1.18258. Overall the movement of the EUR/USD pair remained bearish throughout the day. The Euro U.S. Dollar exchange rate dropped on Friday amid the declining U.S. stock and risk sentiment. The Dow Jones Industrial Average dropped by 0.2%, and the Nasdaq Futures also fell from its record high. The risk sentiment was affected by the rising number of coronavirus cases in Europe.

 According to Johns Hopkins University, the number of coronaviruses confirmed cases across the globe have raised to 30 Million, and it raised fears of the second wave of coronavirus. Since the outbreak started in China late last year, the death toll has risen more than 940,000.

After the United States, India, and Brazil, Europe has reached the most confirmed cases as it has seen a renewed spike in the infections. The World Health Organization has also issued a warning that Europe could see many deaths from coronavirus over November and October. This has weighed heavily on the Euro currency, and the EUR/USD pair has been under pressure since then.

The rising number of coronavirus cases in Europe, some European countries imposed new lockdown measures to slow down the virus spread, and it raised fears for a quick economic recovery that also kept the EUR/USD prices on the downside on Friday.

Meanwhile, at 11:00 GMT, the German PPI in August remained flat with a projection of 0.0% on the data front. At 13:00 GMT, the Current Account Balance from Eurozone also showed a surplus of 16.6B against the projection of 12.0B and supported Euro.

On the U.S. front, the Current Account Balance from the U.S. dropped by -171B against the forecasted -158B and weighed on the U.S. dollar. The C.B. Leading Index also declined to 1.2% from the forecasted 1.3%, and the Prelim UoM Consumer Sentiment rose to 78.9 against the forecasted 75.0. The Prelim UoM Inflation Expectations came in at 2.7%. 

Apart from that, the U.S. dollar’s safe-haven status gained traction on Friday after the tensions between the United States and China raised amid the tech war. The U.S. government attempted to ban the Chinese WeChat app’s download in the United States, which was, however, failed due to rejection from the Judge. China may react to such action with anger, and this fear raised safe-haven appeal, and the U.S. dollar advanced that added pressure on EUR/USD prices on Friday.

Daily Technical Levels

Support Resistance

1.1772 1.1889

1.1696 1.1930

1.1655 1.2007

Pivot point: 1.1813

EUR/USD– Trading Tip

The EUR/USD pair trades bullish at 1.1868 level, holding right below an immediate resistance level of 1.1870 that’s extended by a triple top pattern. On the hourly timeframe, a bullish crossover of 1.1870 level may lead EUR/USD prices towards the next target level of 1.1882 level. Conversely, selling bias remains strong below 1.1870 until the 1.1840 level today.

GBP/USD – Daily Analysis

Today in the Asian trading hours, the GBP/USD currency pair extended its previous bullish trend and took some further bids around above the mid-1.2950 level. However, the currency pair’s bullish trend could be associated with the weaker sentiment surrounding the broad-based U.S. dollar ahead of the U.S. Federal Reserve official’s speech. Adding to the U.S. dollar’s problem is its latest tussle with Iran and an on-going tension with Beijing. 

This, in turn, boosted the sentiment around the currency pair. Moreover, the currency pair gains could also be associated with the latest reports that the U.K. Finance Minister Rishi Sunak is again stepping forward to help businesses. On the contrary, the growing worries over a nationwide lockdown in the wake of rising coronavirus cases became the key factor that kept the lid on any additional currency pair gains. Apart from this, the on-going Brexit pessimism also keeps challenging the currency pair bullish bias. Moving on, the currency pair traders seem cautious to place any strong position ahead of the Fed policymakers’ comments during the American session,

The fears of rising COVID-19 cases in the UK, Spain, and some of the notable Asian nations like India continually fueling worries that the economic recovery could be halt, which eventually weighed on the market trading sentiment. Apart from this, the on-going political impasse over the shape and size of the next U.S. fiscal recovery package also played its role in declining equity markets. Elsewhere, the renewed conflict between the U.S. and China and the US-Iran tussle and Trump’s latest warnings to the firms helping Iran build arms also exerted downside pressure on the market risk-tone and underpinned the safe-haven Japanese yen.

Despite the risk-off market sentiment, the broad-based U.S. dollar failed to gain any positive traction and edged lower on the day ahead of the U.S. Federal Reserve official’s speech, which is scheduled to happen later in the week. Besides, the decision over the inclusion of Chinese government bonds in the FTSE Russell World Government Bond Index (RWGBI) also keeps the USD bulls on the defensive. However, the losses in the U.S. dollar kept the GBP/USD currency pair higher. 

At home, the upcoming speech of British Chief Medical Officer Chris Whitty suggests that the coronavirus return is not only halting the economic recovery but also pushes the country towards another lockdown and a “very challenging winter.” On the other hand, London Mayor Sadiq Khan also said that they’re “catching up” with Covid-19 hotspots in northern England. 

Additionally, capping the gains could be the fresh warning by the U.K. Transport Minister Grant Shapps about the rising odds of a nationwide lockdown, as the country’s coronavirus situation is at a critical point. At the Brexit front, the long-lasting Brexit pessimism is still looming over the GBP traders. Having initially showed a willingness to hear the Internal Market Bill (IMB), mainly due to the UK PM Boris Johnson’s offer to ease fisheries, the European Union (E.U.) is repeating the warning if London moves ahead to overcome the Brexit Withdrawal Agreement Bill (WAB). These renewed fears also weighed on the GBP currency.

Looking forward, the Chicago Fed National Activity Index, which is expected 1.95 against 1.18 prior, will be key to watch on the day. Apart from this, the traders will also keep their eyes on the speech from the U.K.’s health authorities, at 10:00 AM GMT will be the key to watch. Whereas, the continuous drama surrounding the US-China relations and updates about the U.S. stimulus package will also be closely followed. 

 Daily Technical Levels

Support Resistance

1.2890 1.3025

1.2810 1.3080

1.2756 1.3160

Pivot point: 1.2945

GBP/USD– Trading Tip

On Monday, the GBP/USD is trading at 1.2941 mark, staying within an upward channel that’s supporting the pair at 1.2909 level. The closing of the recent Doji candle above the EMA and upward trendline support level of 1.2909 level signals chances of upward direction in the market. Thus, traders should consider looking for a buying trade with a target of 1.2996 level. Violation of 1.2909 level can trigger selling bias until 1.2828 level. 

 

USD/JPY – Daily Analysis

The USD/JPY currency pair extended its early-day losing streak and hit the intra-day low around the 104.28 regions in the last hours. However, the reason for the currency pair bearish bias could be attributed to the risk-off market sentiment, which tends to underpin the safe-haven Japanese yen and contributed to the currency pair decline. Hence, the market trading sentiment was being pressured by the coronavirus (COVID-19) and downbeat catalysts from America. 

Apart from this, the absence of any major data/events from the rest of the Asia-Pacific nations also kept the currency pair’s performance confined. On the other hand, the broad-based U.S. dollar weakness ahead of the U.S. Federal Reserve officials scheduled to speak could also be considered a key factor that dragged the currency pair lower. 

Elsewhere, the market risk tone has been sluggish since the day started, possibly due to the worsening coronavirus (COVID-19) conditions in the U.K. and Europe. Meanwhile, the renewed conflict between the U.S. and China and the US-Iran tussle and Trump’s latest warnings to the firms helping Iran build arms also exerted downside pressure on the market risk-tone and underpinned the safe-haven Japanese yen. As per the World Health Organization’s (WHO) regional director Hans Kluge, Europe reported 300,000 new infections, the most significant weekly rise ever, including the first spike in spring. Furthermore, France, Poland, the Netherlands, and Spain are facing the second wave. The U.K. is already considering a new lockdown, while countries from Denmark to Greece announced new restrictions on Friday. These headlines add an extra burden on the market risk tone.

Across the ocean, the positive remarks from Chinese President Xi Jinping and hopes of further stimulus for the Asian major under the presidency of Yoshihide Suga might help the market trading sentiment to limit its deeper losses. At the USD front, the broad-based U.S. dollar failed to gain any positive traction and edged lower on the day ahead of the U.S. Federal Reserve official’s speech, scheduled to happen later in the week. Besides, the decision over the inclusion of Chinese government bonds in the FTSE Russell World Government Bond Index (RWGBI) also keeps the USD bulls on the defensive. However, the losses in the U.S. dollar kept the USD/JPY currency pair lower. Whereas, the U.S. Dollar Index that tracks the greenback against a bucket of other currencies fell by 0.16% to 92.870 by 9:55 PM ET (2:55 AM GMT).

Looking forward, the Chicago Fed National Activity Index, which is expected 1.95 against 1.18 prior, will be key to watch on the day. Apart from this, the continuous drama surrounding the US-China relations and updates about the U.S. stimulus package will also be closely followed. In the meantime, the USD moves and coronavirus headlines will not lose their importance as they could play a key role in the currency pair movements.

Daily Technical Levels

Support Resistance

104.44 105.10

104.15 105.47

103.78 105.76

Pivot point: 104.81

USD/JPY – Trading Tips

The USD/JPY pair had disrupted the double bottom support mark of 104.650, and presently it’s holding beneath 50 periods EMA, implying chances of selling bias in the USD/JPY. On the 4 hour chart, the downward channel is anticipated to drive selling sentiment in the USD/JPY pair. On the downside, the support lingers at 104.100 level, and a bearish breakout can lead USD/JPY price further lower towards 103.700 level. The eyes will remain on the Fed Chair Powell’s speech as it may drive further market trends. The MACD and EMA are also in support of selling bias. 

Good luck! 

 

 

Categories
Forex Signals

USD/CAD Bounces off to test Resistance Level – Brace for Buy Signal! 

The USD/CAD currency pair failed to stop its previous session declining rally and took some further offers while refreshing 3-day lows, around the 1.3135 regions in the last hour. However, the sentiment around the currency pair was being pressured by the US dollar’s selling tone. Hence, the broad-based US dollar weakness could be associated with the renewed optimism over a possible vaccine for the highly infectious coronavirus disease, which eventually forced investors to continue dumping the safe-haven greenback. 

The USD/CAD currency pair failed to stop its previous session declining rally and took some further offers while refreshing 3-day lows, around the 1.3135 regions in the last hour. However, the sentiment around the currency pair was being pressured by the US dollar’s selling tone. Hence, the broad-based US dollar weakness could be associated with the renewed optimism over a possible vaccine for the highly infectious coronavirus disease, which eventually forced investors to continue dumping the safe-haven greenback. 

The USD/CAD currency pair failed to stop its previous session declining rally and took some further offers while refreshing 3-day lows, around the 1.3135 regions in the last hour. However, the sentiment around the currency pair was being pressured by the US dollar’s selling tone. Hence, the broad-based US dollar weakness could be associated with the renewed optimism over a possible vaccine for the highly infectious coronavirus disease, which eventually forced investors to continue dumping the safe-haven greenback. 

Apart from this, the doubts over the US fiscal stimulus measures and upbeat China data also weighed on the broad-based US dollar. On the contrary, the subdued/range-bound trading moves around the crude oil prices could be considered one of the key factors that kept the lid on any additional currency pair losses. At the time of writing, the USD/CAD currency pair is currently trading at 1.3162 and consolidating in the range between 1.3132 – 1.3187.

The global market trading sentiment got a strong boost after AstraZeneca resumed phase-3 clinical trials of its COVID-19 vaccine candidate. As per the latest report, the Chinese CDC chief biosafety expert recently confirmed that the Ordinary Chinese could take the COVID19 vaccine as early as November or December as the phase III clinical trial went very smoothly. Besides, Pfizer and BioNTech also boosted vaccine hopes while saying that they are also looking to expand their candidates’ trials. 

Furthermore, the risk-on market sentiment was further bolstered after the release of stronger-than-expected Chinese industrial production data, which strengthened the hopes that the world’s second-largest economy is returning to normal and weighed over the US dollar. At the data front, China’s August Retail Sales YoY, the number came at 0.5%. 0% exp and -1.1% last, with Industrial Output YoY at +5.6% and +5.1% exp and +4.8% last. In the meantime, the Fixed Asset Investment YoY unchanged at -0.3% vs. -0.4% expected and -1.6% last. At the same time, China’s January-August Private Sector Fixed Asst Investment dropped by 2.8% YoY.  

As a result, the broad-based US dollar failed to gain any positive traction and remained bearish. Moreover, the US dollar losses could also be attributed to the doubts over the US fiscal stimulus measures. The chances for a comprehensive stimulus seem weakened after Democratic voted to block a Republican bill that would have provided around $300 billion in new coronavirus aid. However, the losses in the US dollar kept the USD/CAD currency pair under pressure. Whereas, the US dollar index dropped to 93.029, slipping further from a one-month high of 93.664 touched last Wednesday, with its low last week of 92.695 seen as immediate support.

However, the market trading sentiment was rather unaffected by the rising global COVID-19 cases, fears of no-deal Brexit, and the Sino-American tussle. At the US-China front, Sino-US’s tensions picked up further pace after the US blocks Chinese goods made with forced labor. As per the latest report, the Trump administration has banned importing certain apparel and computer parts from China, while saying forced Muslim laborers make them from the Xinjiang region.

On the contrary, the crude oil prices failed to maintain its early-day small gains and started to flash red during the European session around 37.18. However, the reason for the bearish bias around the crude oil prices could be attributed to the fears of the oversupply and lower demand. Moreover, Libya’s news is restoring its exports also added extra burden around the crude oil prices. Thus, the decline in oil prices undermined the demand for the commodity-linked currency, the loonie, and the key factor that cap further downside momentum for the currency pair. 


The USD/CAD pair is trading sharply bullish at 1.3237 level, having formed a series of bullish engulfing candles on the hourly timeframe. On the higher side, the pair may soar further until 1.3243 level. The MACD and RSI suggest a bullish bias, while the 50 periods EMA also suggests a bullish trend. Let’s follow a trading plan below.  

Entry Price – Buy 1.31816

Stop Loss – 1.31416

Take Profit – 1.32216

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 Slips below Double Top – Brace for Selling Trade! 

The AUD/USD pair was closed at 0.72907 after placing a high of 0.73338 and a low of 0.72823. Overall the movement of the AUD/USD pair remained bearish throughout the day. Despite the positive comments from Prime Minister Scott Morrison, the AUD/USD pair dropped on Friday amid the declining risk sentiment. 

The AUD/USD pair was closed at 0.72907 after placing a high of 0.73338 and a low of 0.72823. Overall the movement of the AUD/USD pair remained bearish throughout the day. Despite the positive comments from Prime Minister Scott Morrison, the AUD/USD pair dropped on Friday amid the declining risk sentiment. 

The AUD/USD pair was closed at 0.72907 after placing a high of 0.73338 and a low of 0.72823. Overall the movement of the AUD/USD pair remained bearish throughout the day. Despite the positive comments from Prime Minister Scott Morrison, the AUD/USD pair dropped on Friday amid the declining risk sentiment. 

After the National Cabinet, the Australian Prime Minister said that the Victoria state’s coronavirus declines were encouraging. He confirmed the current capacity of citizens allowed to return home per week that were put in place in mid-July would be lifted to ultimately 6000 as the virus situation has improved. 

Morrison said that states have agreed to boost quarantine capacity and the number of people allowed into Australia each week by mid-October. These positive comments related to the country’s virus situation failed to provide some strength to AUD/USD pair on Friday as the focus was on the US dollar.

The positive Prelim UoM Consumer Sentiment supported the US dollar for September that was advanced to 78.9 from the expectations of 75.0 and the previous 74.1. The improved consumer confidence in the US economy gave a push to the US dollar that ultimately weighed on AUD/USD pair on Friday.

Meanwhile, the risk perceived Aussie also suffered due to faded risk appetite in the market after the coronavirus cases continue to increase worldwide as the total confirmed cases surpassed the 30M figure as per Johns Hopkins University. The rising coronavirus figures supported the market’s safe-haven appetite and weighed on Aussie that dragged the AUD/USD pair’s prices on the downside.

Furthermore, the rising US-China tensions after the US government attempted to block the WeChat application’s downloading in the United States but failed to do so. These ongoing tensions between the world’s two largest economies gave a boost to safe-haven appeal and exerted pressure on the Australian dollar that dragged the AUD/USD pair on Friday.


The AUD/USD pair is trading with a selling bias at 0.7303 level, having formed a double top resistance at 0.7303 level. Seems like a good time to short the pair below 0.7303 level to capture quick 35/40 pips. Check out a trade plan below… 

Entry Price – Sell 0.7314

Stop Loss – 0.7354

Take Profit – 0.7274

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 Erased Its Previous Session Losses – An Update on Signal! 

During the Friday’s European trading hours, the USD/CHF currency pair stopped its early-day bearish rally and drew some fresh bids around above 0.9100 level despite the cautious mood around the equity markets. Besides this, the prevalent selling bias surrounding the U.S. dollar also failed to drag the currency pair down. Hence, the broad-based U.S. dollar came under pressure instantly after the Thursday’s rather unimpressive U.S. economic data. 

During the Friday’s European trading hours, the USD/CHF currency pair stopped its early-day bearish rally and drew some fresh bids around above 0.9100 level despite the cautious mood around the equity markets. Besides this, the prevalent selling bias surrounding the U.S. dollar also failed to drag the currency pair down. Hence, the broad-based U.S. dollar came under pressure instantly after the Thursday’s rather unimpressive U.S. economic data. 

During the Friday’s European trading hours, the USD/CHF currency pair stopped its early-day bearish rally and drew some fresh bids around above 0.9100 level despite the cautious mood around the equity markets. Besides this, the prevalent selling bias surrounding the U.S. dollar also failed to drag the currency pair down. Hence, the broad-based U.S. dollar came under pressure instantly after the Thursday’s rather unimpressive U.S. economic data. 

Apart from this, the U.S. dollar losses were further bolstered by the fresh fall in U.S. tech stocks on Thursday, which tends to drag the currency pair down. Across the pond, the risk barometer tracks Wall Street’s mild losses to print a three-day losing streak, which in turn, underpinned the safe-haven Swiss Franc and becomes the key factor that kept the lid on any further gains in the currency pair. 

Currently, the USD/CHF currency pair is currently trading at 0.9099 and consolidating in the range between 0.9075 – 0.9100. The faith over the coronavirus (COVID-19) vaccine/treatment was dominated by concerns about the second wave of coronavirus infections, which fading optimism over a sharp V-shaped global economic recovery. Besides this, the U.S. Federal Reserve’s (Fed) another stress test for large banks and a lack of major data/events also keeps the market trading sentiment under pressure. Whereas, the U.K. scientist group’s readiness for a state lockdown of almost two weeks and Global Times’ direct war signals to the U.S., over American diplomat’s visit to Taiwan, also exerted downside pressure on the equity market, which tend to underpin the safe-haven Swiss Franc.

Despite the risk-off market sentiment, the broad-based U.S. dollar failed to gain any positive traction and edged lower on the day as doubts persist over the global economic recovery from COVID-19. The disappointing U.S. employment data witnessed that. Apart from this, another rout in U.S. tech stocks also undermined the U.S. dollar. However, the losses in the U.S. dollar becomes the key factor that kept the lid on any further gains in the currency pair. Whereas, the U.S. Dollar Index, which tracks the greenback against a bucket of other currencies, dropped by 0.05% to 92.927 by 12:48 AM ET (5:48 AM GMT).

Looking forward, the market traders will keep their eyes on the USD moves amid the lack of major data/events on the day. However, the U.S. Michigan Consumer Sentiment Index for September, which is expected 75 versus 74.1 prior, will likely help resolve near-term USD moves. Furthermore, the risk catalyst like geopolitics and the virus woes, not to forget the Brexit, will also be key to watch for the fresh direction.


The USD/CHF is trading at 0.9104, holding right below a strong resistance level of 0.91130. Closing of candles over the support level of 0.9077 level can trigger buying trades in the USD/CHF pair. The series of EMAs is also supporting buying trends; therefore, we may look for bullish trades on the USD/CHF pair. Check out the forex trading signal below…

Entry Price – Buy 0.90932

Stop Loss – 0.90532

Take Profit – 0.91332

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

Bullish Channel Underpins the EUR/CHF – Update on Signal!

The EUR/CHF continues trading bullish at 1.0776 as stronger Euro is likely to drive EUR/CHF bullish. The demand for safe-haven assets is keeping the CHF supported; however, the technical side of the market is still dragging the EUR/CHF higher. The optimism over the coronavirus (COVID-19) vaccine/treatment was overshadowed by the concerns about the second wave of coronavirus infections, which fading optimism over a sharp V-shaped global economic recovery. 

The EUR/CHF continues trading bullish at 1.0776 as stronger Euro is likely to drive EUR/CHF bullish. The demand for safe-haven assets is keeping the CHF supported; however, the technical side of the market is still dragging the EUR/CHF higher. The optimism over the coronavirus (COVID-19) vaccine/treatment was overshadowed by the concerns about the second wave of coronavirus infections, which fading optimism over a sharp V-shaped global economic recovery. 

The EUR/CHF continues trading bullish at 1.0776 as stronger Euro is likely to drive EUR/CHF bullish. The demand for safe-haven assets is keeping the CHF supported; however, the technical side of the market is still dragging the EUR/CHF higher. The optimism over the coronavirus (COVID-19) vaccine/treatment was overshadowed by the concerns about the second wave of coronavirus infections, which fading optimism over a sharp V-shaped global economic recovery. 

Whereas, the U.K. scientist group’s readiness for a state lockdown of almost two weeks and Global Times’ direct war signals to the U.S., over American diplomat’s visit to Taiwan, also exerted downside pressure on the equity market, which tend to underpin the safe-haven Swiss Franc.

Despite the risk-off market sentiment, the broad-based U.S. dollar failed to achieve any positive traction and trimmed lower on the day as doubts persist over the global economic recovery from COVID-19. The disappointing U.S. employment data witnessed that. Apart from this, another rout in U.S. tech stocks also undermined the U.S. dollar. However, the losses in the U.S. dollar becomes the key factor that kept the pressure on any additional gains in the pair. While, the U.S. Dollar Index, which tracks the greenback against a bucket of other currencies, dropped by 0.05% to 92.927 by 12:48 AM ET (5:48 AM GMT).


Technically, the EUR/CHF is supported over 1.0763 level, and closing of candles above this support level may drive further buying until 1.0785. The MACD and 50 EMA are also supporting an upward trend in the market. Recent bullish engulfing is also supporting the bullish trend in the market. Checkout a trading plan below…

Entry Price – Buy 1.07692

Stop Loss – 1.07292

Take Profit – 1.08092

Risk to Reward – 1:1

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

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

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

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

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

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Forex Signals

EUR/JPY Failed to Gains Positive Traction – Quick 40 Pips Profit! 

Today in the early European trading session, the EUR/JPY currency pair failed to stop its previous session losing streak and further offers around below the 124.00 regions in the last hours. However, the bearish bias around the currency pair was bolstered by the reports suggesting the confirmation of deflation seeping back into the Eurozone, which undermined the shared currency and contributed to the currency pair declines. Meanwhile, the continued rise in coronavirus cases also exerted downside pressure on the shared currency, which dragged the currency par below 124.00. 

Today in the early European trading session, the EUR/JPY currency pair failed to stop its previous session losing streak and further offers around below the 124.00 regions in the last hours. However, the bearish bias around the currency pair was bolstered by the reports suggesting the confirmation of deflation seeping back into the Eurozone, which undermined the shared currency and contributed to the currency pair declines. Meanwhile, the continued rise in coronavirus cases also exerted downside pressure on the shared currency, which dragged the currency par below 124.00. 

Today in the early European trading session, the EUR/JPY currency pair failed to stop its previous session losing streak and further offers around below the 124.00 regions in the last hours. However, the bearish bias around the currency pair was bolstered by the reports suggesting the confirmation of deflation seeping back into the Eurozone, which undermined the shared currency and contributed to the currency pair declines. Meanwhile, the continued rise in coronavirus cases also exerted downside pressure on the shared currency, which dragged the currency par below 124.00. 

The reason for the currency pair selling bias could also be attributed to the market risk-off mood, which eventually underpinned the Japanese yen’s safe-haven demand. Hence, the risk-off market sentiment was mainly sponsored by the Fed’s hint for another stress test for large banks as well as the U.K. scientist group’s readiness for another national lockdown also weighed on the market risk tone. At this particular time, the EUR/JPY currency pair is currently trading at 123.86 and consolidating in the range between 123.81 – 124.31.

At the coronavirus front, the number of confirmed coronavirus cases increased to 263,773, with a total of 9,378 deaths reported on the day. Meanwhile, the number of new infections rose by 1,916 on Friday, while the death toll rose by 7, as per the latest data from the German disease and epidemic control center, Robert Koch Institute (RKI). This, in turn, undermined the sentiment around the single currency and contributed to the currency par declines.

Moreover, the sentiment around the shard currency was further bolstered by the reports suggesting confirmation of deflation seeping back into the Eurozone. Detail suggested the Eurozone annualized CPI confirmed the -0.2% previous estimate.

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 downbeat U.S. data, these all factors have been weighing on the market risk tone. This, in turn, underpinned the safe-haven Japanese yen.

The employment data released on Thursday showed that initial jobless claims dropped slower than expected at the data front. Eight hundred sixty thousand claims were filed over the past week against the predicted 850,000.

Additionally, weighing the market trading sentiment could be the fears of rising COVID-19 cases in the U.S., Europe, and some of the notable Asian nations like India, fueling fears that the economic recovery could be halted. 

Looking forward, the market traders will keep their eyes on the USD moves amid the lack of major data/events on the day. However, the U.S. Michigan Consumer Sentiment Index for September, which is expected 75 versus 74.1 prior, will likely help resolve near-term USD moves. Furthermore, the risk catalyst like geopolitics and the virus woes, not to forget the Brexit, will also be key to watch for the fresh direction.


We decided to open a sell position in the EUR/JPY pair during the European session as it formed a bearish engulfing pattern below 124.250 level. The candle closing drove more selling in the EUR/JPY pair, and now it’s likely to trigger more selling until the 123.375 level. The MACD and 50 EMA were also supporting selling bias; therefore, we decided to capture a quick sell position to target 123.742 take profit level. Let’s keep an eye on 123.3750 now as the closing of candles above this level may drive some buying during the U.S. session. Good luck! 

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Forex Market Analysis

Daily F.X. Analysis, September 18 – Top Trade Setups In Forex – Consumer Sentimentin Focus! 

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

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

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

Economic Events to Watch Today  

 

 

EUR/USD – Daily Analysis

The EUR/USD closed at 1.18474 after placing a high of1.18522 and a low of 1.17371. On Thursday, the EUR/USD pair fell in the early trading session to the lowest level since August 12 but managed to reverse its direction and recover its daily losses. The shared currency Euro remained appealing this week and has been driven more by movements in rival currencies like the U.S. dollar. A rise in demand for the U.S. dollar was the primary cause of the EUR/USD pair’s early losses.

In the early trading session, the U.S. dollar saw a jump in demand in reaction to the latest Fed’s decision to keep interest rates near zero until 2023. Fed also decided not to announce any stimulus package that lifted the demand for the greenback. This rise in the U.S. dollar pressured the EUR/USD pair, and the pair saw a sudden decline to its lowest level since mid-August.

After this decision to not add more stimulus to advance the Fed’s goal of spurring inflation, the U.S. stocks fell sharply on Thursday as the risk sentiment faded away. This decreased risk sentiment also added further weakness in the EUR/USD pair. 

The sudden decline in the EUR/USD could also be attributed to the latest warning from the World Health organization that cautioned on Thursday and said that there were alarming rates of transmission of coronavirus across Europe. This warning came in against the shortening quarantine periods from countries across Europe. After this warning, the concerns and fears of a resurgence of coronavirus raised and the local currency suffered that dragged the currency pair on the downside.

However, the Eurozone market outlook remains optimistic due to the bloc’s handling of the coronavirus pandemic. The Eurozone data has not been influencing this week as the Eurozone inflation data released at 14:00 GMT came in line with the expectations of -0.2%. The Final Core CPI for the year also remained flat with a projection of 0.4%. Whereas, the Italian Trade Balance rose to 9.69B against the forecasted 5.20B and supported the shared currency that pushed the EUR/USD pair’s prices on the upside.

Another factor involved in the upward movement of currency pair in the late trading session was the negative macroeconomic data releases from the United States. At 17:30 GMT, the Unemployment Claims from the U.S. last week rose to 860K from the forecasted 825K and weighed on the U.S. dollar. The Building Permits also declined to 1.47M from the projected 1.51M and weighed on the U.S. dollar. The Housing Starts dropped to 1.42M against the forecasted 1.47Mand weighed on the U.S. dollar. These negative reports from the U.S. pushed the pair EUR/USD higher in the late trading session.o increase the 2030 target of emission reduction to 55%, and investment for digital technologies. 

Daily Technical Levels

Support Resistance
1.1772      1.1889
1.1696      1.1930
1.1655      1.2007
Pivot point: 1.1813

EUR/USD– Trading Tip

The EUR/USD pair has traded sharply bullish to trade at 1.1849 level, and now it’s trading sideways within a narrow trading range of 1.1865 level to 1.1849 level. Violation of this range may determine further trends in the market. On the higher side, the EUR/USD can go after the 1.1898 level. Conversely, a bearish breakout of the 1.1840 support level may extend selling bias until the 1.18200 level.

GBP/USD – Daily Analysis

The GBP/USD closed at 1.29723 after placing a high of 1.29990 and a low of 1.28647. Overall the movement of the GBP/USD pair remained flat but slightly bullish throughout the day. On Thursday, the GBP/USD pair extended its bullish streak for 4th consecutive day. However, the gains were very short on Thursday as the pair dropped in the first half of the day amid broad-based U.S. dollar demand. In the second half of the day, the pair bounced back on the upside amid Bank of England’s latest monetary policy decision and weak U.S. economic data.

During the Asian and European trading session on Thursday, the pair faced high pressure due to the broad-based U.S. dollar strength driven by the latest Federal Reserve monetary policy decision. The Fed decided to hold its interest rates near zero until inflation reached 2% or above, projected to reach till 2023. Fed also decided not to announce any stimulus measure against the expectations, so the U.S. dollar rebounded.

The U.S. dollar strength dragged the pair EUR/USD on the downside; however, the pair managed to recover its daily losses and bounced back in the late trading session. The British Pound recovered from session lows on Thursday as the Bank of England kept the rates unchanged. The Bank kept the rates at 0.1% and the asset purchase target at 745B Pound and hinted that it was ready to adjust monetary policy to meet to support the recovery. 

As per the Bank of England, the U.K. economic data justified that Bank’s policies supported the recovery and acknowledged that GDP and inflation had recently been running above the estimates given in the August monetary policy report. However, despite the faster pace of economic recovery in the U.K., the Bank left the door open for negative interest rates as additional policy measures to keep the economy on track if the second wave of coronavirus emerged and affect the labor market that could trigger the slowdown.

The less dovish comments from BoE and cooling expectations that easing in November was a forgone conclusion raised the British Pound, and the pair GBP/USD started moving in an upward direction. Furthermore, the U.S. dollar came under pressure on the data front after the negative macroeconomic data releases on Thursday. The Unemployment claims from the U.S. rose during last week to 860K against the expectations of 825K and weighed on the U.S. dollar. The Building Permits also declined along with the Housing Starts in August to 1.47M and 1.42M, respectively. These negative economic figures also helped the GBP/USD pair to move on the upside and recover its early losses.

On the other hand, on the Brexit front, the Pound got an unexpected boost from the latest comments from E.U. Commission President Ursula von der Leyen, who said that she believes a trade deal with the U.K. was still possible despite the distraction caused by Boris Johnson’s Internal Market Bill. These comments also helped the GBP/USD pair to reverse its early daily movement on Thursday.

 Daily Technical Levels

Support Resistance
1.2890      1.3025
1.2810      1.3080
1.2756      1.3160
Pivot point: 1.2945

GBP/USD– Trading Tip

The GBP/USD pair is trading at 1.2945 level, holding within an upward channel supporting the pair at 1.2909 level. The closing of the recent Doji candle over the EMA and upward trendline support level of 1.2909 level suggests odds of upward movement in the market. Considering this, we may have some upward trend in the Sterling ahead of the BOE rate decision. Thus, we should look for a buying trade with a target of 1.2996 level. Violation of 1.2909 le el can trigger selling bias until 1.2828 level.

 

USD/JPY – Daily Analysis

The USD/JPY pair was closed at 104.737 after placing a high of 105.172 and 104.523. The pair USD/JPY extended its losses for the 4th consecutive day on Thursday and dropped to its lowest level since July 31 on the strong demand for the Japanese Yen. The pair was rather unaffected by the modest pickup in the U.S. dollar demand after the Federal Reserve kept its rates neat zero for likely until 2023 and refrained from announcing further monetary stimulus package.

On late Wednesday, the global risk sentiment was hit after the Fed failed to offer any clues about additional stimulus measures with the S&P 500 index down by 0.6% on the day. The Fed also upgraded its economic outlook and projected a much shallower contraction in 2020. This supported the rise in the U.S. dollar; however, it failed to impress the USD/JPY pair’s bullish traders as the focus was shifted to Japan’s monetary policy.

On Thursday, the Bank of Japan left its aggressive monetary stimulus on hold and upgraded its view of the pandemic-hit economy. The Bank of Japan announced its monetary policy decision a day after Mr. Yoshihide Suga took over as Prime Minister and pledged to continue his predecessor’s stance on monetary and fiscal policy.

As expected, the Bank of Japan kept its interest rates at -0.1% and left its asset purchases unchanged. Mr. Suga said that there was no need for any immediate changes in BOJ policies as they have helped to keep the financial markets stable and get credit to companies amid the coronavirus crisis. The Central Bank’s economic assessment was upgraded for the first time on Thursday since the coronavirus hit the economy and sent it to the bottom. BOJ said that economy has started to pick up with activity resuming gradually. However, the pace for recovery was likely to be only moderate as the pandemic is continuously affecting the countries worldwide. The BOJ decision came after hours the Federal Reserve unveiled its latest policy guidance, and the traders followed more the BOJ’s statement as it was the latest and the pair USD/JPY continued declining. 

Another reason behind the decreased USD/JPY prices was the negative and depressing U.S. economic data on Thursday. At 17:30 GMT, the Philly Fed Manufacturing Index remained unchanged and came as expected 15.0. The Unemployment Claims last week advanced to 860K against the anticipated 825K and weighed on the U.S. dollar. In August, the Building Permits also dropped to 1.47M from the forecasted 1.51M, and the Housing Starts declined to 1.42M from the expected1.47M and weighed on the U.S. dollar. The weak U.S. economic data weighed on the U.S. dollar and added further in the USD/JPY pair’s losses on Thursday.

Daily Technical Levels

Support Resistance
104.44      105.10
104.15      105.47
103.78      105.76
Pivot point: 104.81

USD/JPY – Trading Tips

The USD/JPY pair had violated the double bottom support level of 107.750, and now it’s holding below 50 periods EMA, suggesting odds of selling bias in the USD/JPY. On the 4 hour timeframe, the downward channel is likely to drive selling bias in the USD/JPY pair. On the lower side, the support stays at 104.500 level, and a bearish breakout can lead USD/JPY price further lower towards 104.300 level. The focus will remain on the Prelim UoM Consumer Sentiment data as it may drive further market trends. The MACD and EMA are also in support of selling bias. 

Good luck! 

 

 

Categories
Forex Signals

USD/JPY Downward Channel In-Play – Quick Update on Signal! 

The USD/JPY stopped its previous-day bearish bias and picked up some bids around the 104.80 level, mainly after the downbeat prints of Japan’s National Consumer Price Index (CPI) for August eventually undermined the Japanese yen currency and extended support to the currency pair. 

The USD/JPY stopped its previous-day bearish bias and picked up some bids around the 104.80 level, mainly after the downbeat prints of Japan’s National Consumer Price Index (CPI) for August eventually undermined the Japanese yen currency and extended support to the currency pair. 

The USD/JPY stopped its previous-day bearish bias and picked up some bids around the 104.80 level, mainly after the downbeat prints of Japan’s National Consumer Price Index (CPI) for August eventually undermined the Japanese yen currency and extended support to the currency pair. 

The currency pair dropped to the lowest since July 31, the previous day after the Bank of Japan (BOJ) upwardly revised the economic outlook. Thus, the currency pair failed to break its previous day thin trading range and still hovering below the 105.00 marks. Apart from this, the reason for the pair’s bearish bias could also be associated with the risk-off market sentiment, driven by the US-China tussle and Brexit concern, which tend to underpin the Japanese yen currency. 

Meanwhile, the broad-based U.S. dollar weakness, triggered by the disappointing U.S. employment data, could also be considered the key factor that kept the lid on any additional gains in the currency pair. Currently, the USD/JPY currency pair is currently trading at 104.81 and consolidating in the range between 104.67 – 104.88.

At the data front, Japan’s August month’s National CPI dropped below 0.6% forecast and 0.3% previous readouts to 0.2% YoY, it no news as the Asian major has historically been struggling with stagflation. 

Besides this, the risk sentiment favoring the pair’s sellers as S&P 500 Futures dropped by 0.10% intraday as Fed’s hint for another stress test for large banks and the U.K. scientist group’s push for another state lockdown. Furthermore, the worrisome headlines concerning the Brexit or the tension between the US-China, not to forget the rising coronavirus cases, weigh on the market trading sentiment.  

At the US-China front, the tensions between the United States and China picked up the further pace after the American Undersecretary for Economic Affairs Keith Krach’s scheduled visit to Taiwan. Moreover, the friction was further bolstered by China’s state media’s comments that directed warned the U.S. with the “use non-peaceful and other necessary means to solve the Taiwan question once and for all.  

Additionally, weighing the market trading sentiment could be the fears of rising COVID-19 cases in the U.S., Europe, and some of the notable Asian nations like India, which fueling fears that the economic recovery could be halt.

At the USD front, the broad-based U.S. dollar failed to stop its early-day losses and took the further offer on the day as doubts persist over the global economic recovery from disappointing U.S. employment data witnessed statement data. Apart from this, another rout in U.S. tech stocks also undermined the U.S. dollar. However, the U.S. dollar losses could be considered the key factor that kept the pressure on any additional gains in the USD/JPY pair. Whereas, the U.S. Dollar Index, which tracks the greenback against a bucket of other currencies, dropped by 0.05% to 92.927 by 12:48 AM ET (5:48 AM GMT).

The employment data released on Thursday showed that initial jobless claims dropped slower than expected at the data front 860,000 claims were filed over the past week against the predicted 850,000.


Looking forward, the market traders will keep their eyes on the USD moves amid the lack of major data/events on the day. However, the U.S. Michigan Consumer Sentiment Index for September, which is expected 75 versus 74.1 prior, will likely help resolve near-term USD moves. Furthermore, the risk catalyst like geopolitics and the virus woes, not to forget the Brexit, will also be key to watch for the fresh direction.

Entry Price – Sell 104.651

Stop Loss – 105.051

Take Profit – 104.251

Risk to Reward – 1:1

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

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

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

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

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

Categories
Forex Signals

Gold Choppy Session Continues – Quick Buy Limit!  

The yellow metal prices failed to maintain its previous-day gaining streak and edged lower to 1,940 level due to the broad-based U.S. dollar strength, backed by the better-than-expected U.S. unemployment figures. Apart from this, the central bank said that it expects the U.S. economic recovery from the coronavirus crisis to gather pace, boosting the U.S. dollar sentiment.

The yellow metal prices failed to maintain its previous-day gaining streak and edged lower to 1,940 level due to the broad-based U.S. dollar strength, backed by the better-than-expected U.S. unemployment figures. Apart from this, the central bank said that it expects the U.S. economic recovery from the coronavirus crisis to gather pace, boosting the U.S. dollar sentiment.

The yellow metal prices failed to maintain its previous-day gaining streak and edged lower to 1,940 level due to the broad-based U.S. dollar strength, backed by the better-than-expected U.S. unemployment figures. Apart from this, the central bank said that it expects the U.S. economic recovery from the coronavirus crisis to gather pace, boosting the U.S. dollar sentiment.

However, the U.S. dollar upticks pushed the bullion prices down in Asian morning trade, although the U.S. Federal Reserve also stated yesterday that it was keeping interest rates close to zero until inflation increases to over 2%. On the contrary, the previous market optimism over the coronavirus (COVID-19) vaccine/treatment was recently overshadowed by the latest mixed signals regarding the coronavirus (COVID-19) vaccine and U.S. aid package. This, in turn, the market trading sentiment turned sour, which might help the gold prices to limit its deeper losses. 

It is worth recalling that the Federal Open Market Committee (FOMC) upwardly revised short-term economic forecasts. Meanwhile, he also repeated their promise to do everything necessary. The U.S. central bank also holds the Average Inflation Targeting (AIT) program while displaying a readiness to keep the easy monetary policy even if the inflation shoots above the 2.0% target. 

At the USD front, the broad-based U.S. dollar extended its early bullish trend on the day amid mixed sentiment in the market. Moreover, the foresees unemployment falling faster than the central bank expected in June, also helped the greenback to put the fresh bids. Let me remind, the Us dollar saw losses in the wake of the Fed’s comments and disappointing U.S. retail sales data but gradually erased the losses after the Fed hinted economic growth to improve from the COVID-19. However, the modest surge in the greenback kept the gold prices under pressure as gold price is inversely related to the U.S. dollar price. Whereas, the U.S. Dollar Index Futures that tracks the greenback against a bucket of other currencies was up 0.45% to 93.543 by 12:24 AM ET (5:24 AM GMT).

However, the equity market has started to flash red since the Asian session started. Hence, the reason for the risk-off market sentiment could be the deadlock over the U.S. Congress proceeding over the much-awaited aid package. Although the U.S. President Donald Trump recently indicated the solution to arrive soon, House Speaker Nancy Pelosi’s rejection of holding the votes on a package around $1.5 trillion shows that the Democrats are in no mood to relinquish controls. This, in turn, undermined the market trading sentiment and helped the gold prices to limit its deeper losses.

The market trading sentiment was further bolstered by the fresh U.S. President Donald Trump’s warnings to the World Trade Organization for its favor to China. This, in turn, might recall the trade war concerns that have been silent off-late. Across the pond, the COVID-19 outbreak continues to rise, which keep dampening the global economic outlook.

On the contrary, the market trading sentiment was rather unaffected by the renewed optimism over the coronavirus (COVID-19) vaccine/treatment. Nevertheless, U.S. President Donald Trump said that late-October would distribute the COVID-19 vaccine, and policymakers in the U.K., China, and Russia also join the upbeat tone about finding the cure of the pandemic. This could help the market trading sentiment to limit its losses.


Looking ahead, the market players will keep their eyes on the busy economic calendar for near-term moves—the U.S. Initial Jobless Claims and the U.S. housing data will be key to watch. Meanwhile, the updates surrounding the fresh Sino-US tussle and the coronavirus (COVID-19) updates could not lose their importance.

Gold prices slipped dramatically from 1,959 level to the 1,940 mark operating above the 1,936 support range. The triple bottom pattern on the hourly chart is expected to support gold prices now at 1,936. Beyond this, bullish sentiment can pull gold price higher until the 1,949 level, and over this, the 1,958 level may serve as resistance. Breakout of 1,936 mark can prolong selling bias unto 1,924 area today. Good luck! 

Categories
Forex Signals

GBP/USD Failed to Extend 3-Day Winning Streak – Quick 30 Pips!

During Thursday’s European trading session, the GBP/USD currency pair failed to extend its previous 3-day winning streak and hit the intra-day low near below the mid-1.2900 level. Hence, the selling bias around the currency pair was triggered by the doubts over the Brexit-positive headlines ahead of the key Bank of England (BOE) monetary policy meeting. Additionally weighing the quote could be the rising number of coronavirus (COVID-19) in the U.K., which eventually undermined the British Pound and adds extra burden around the currency pair.

During Thursday’s European trading session, the GBP/USD currency pair failed to extend its previous 3-day winning streak and hit the intra-day low near below the mid-1.2900 level. Hence, the selling bias around the currency pair was triggered by the doubts over the Brexit-positive headlines ahead of the key Bank of England (BOE) monetary policy meeting. Additionally weighing the quote could be the rising number of coronavirus (COVID-19) in the U.K., which eventually undermined the British Pound and adds extra burden around the currency pair.

During Thursday’s European trading session, the GBP/USD currency pair failed to extend its previous 3-day winning streak and hit the intra-day low near below the mid-1.2900 level. Hence, the selling bias around the currency pair was triggered by the doubts over the Brexit-positive headlines ahead of the key Bank of England (BOE) monetary policy meeting. Additionally weighing the quote could be the rising number of coronavirus (COVID-19) in the U.K., which eventually undermined the British Pound and adds extra burden around the currency pair.

Apart from this, the broad-based U.S. dollar on-going strength, backed by the Federal Reserve’s (Fed) cautious optimism, also adds extra burden around the currency pair.

At the coronavirus front, the currency pair bearish moves were further bolstered by the rising virus cases in the U.K. As per the latest report, and the United Kingdom reported nearly 4,000 new daily cases of COVID-19, government figures reported on Wednesday, with the total figures of daily cases at its highest mark since May 8. Meanwhile, the PM Johnson’s concern about the testing capacity and a lack of a virus vaccine also undermined the currency pair.

Across the pond, the intensifying tensions between the U.S. and China also added a burden around the market trading sentiment. It is worth recalling that President US Trump recently warned the World Trade Organization for their favoring tone to China against the Trump administration’s decision to levy multiple trade sanctions on China. However, these gloomy headlines exerted downside pressure on the market trading sentiment.

As a result, the broad-based U.S. dollar continued its bullish rally and still reported gains on the day due to the market’s risk-off sentiment. Moreover, the upbeat prediction for the U.S. unemployment data also helped the greenback put the fresh bids. Let me remind, the U.S. dollar initially saw losses in the wake of the Fed’s comments and disappointing U.S. retail sales data but gradually erased the losses after the Fed hinted economic growth to improve from the COVID-19. However, the gains in the U.S. dollar kept the currency pair under pressure. Whereas, the U.S. Dollar Index Futures that tracks the greenback against a bucket of other currencies was up 0.45% to 93.543 by 12:24 AM ET (5:24 AM GMT).

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


The GBP/USD is trading at 1.2909 level, holding within an upward channel supporting the pair at 1.2909 level. The closing of the recent Doji candle over the EMA and upward trendline support level of 1.2909 level suggests odds of upward movement in the market. Considering this, we may have some upward trend in the Sterling ahead of the BOE rate decision. Thus, we should look for a buying trade with a target of 1.2996 level. Violation of 1.2909 le el can trigger selling bias until 1.2828 level, but it depends upon the policy decision today.

Entry Price – Buy 1.29247
Stop Loss – 1.28847
Take Profit – 1.29647
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 17 – Top Trade Setups In Forex – Brace for BOE Policy! 

On the news front, the eyes will remain on the U.K. Monetary Policy reports due during the late European hours. BOE isn’t expected to change the rates, and it may keep them at 0.10%; however, it will be important to see MPC Official Bank Rate Votes. Besides, the European Final CPI data will remain in focus today. During the U.S. session, the Unemployment Claims and Philly Fed Manufacturing Index will be the main highlight to drive further market movement.

On the news front, the eyes will remain on the U.K. Monetary Policy reports due during the late European hours. BOE isn’t expected to change the rates, and it may keep them at 0.10%; however, it will be important to see MPC Official Bank Rate Votes. Besides, the European Final CPI data will remain in focus today. During the U.S. session, the Unemployment Claims and Philly Fed Manufacturing Index will be the main highlight to drive further market movement.

On the news front, the eyes will remain on the U.K. Monetary Policy reports due during the late European hours. BOE isn’t expected to change the rates, and it may keep them at 0.10%; however, it will be important to see MPC Official Bank Rate Votes. Besides, the European Final CPI data will remain in focus today. During the U.S. session, the Unemployment Claims and Philly Fed Manufacturing Index will be the main highlight to drive further market movement.

Economic Events to Watch Today  

 

EUR/USD – Daily Analysis

The EUR/USD closed at 1.18161 after placing a high of 1.18824 and a low of 1.17873. The EUR/USD pair continued following its previous day bearish trend on Wednesday ahead of the FOMC meeting. The pair posted losses on the day despite upbeat macroeconomic data from Europe.

The U.S. dollar became strong in response to the Federal Reserve’s rate decision. The Fed left its monetary policy unchanged and signaled no changes to borrowing costs potentially through 2023. The growth projections by Fed pointed a return to pre-pandemic levels by the end of 2021.

The Federal Reserve Chairmen, Jerome Powell, said that the current bond-buying level was appropriate and said that more fiscal support was likely to be needed. The U.S. dollar index found support at 92.8 level and spiked to 93.15 level and weighed on EUR/USD pair.

On the data front, At 14:00 GMT, the Trade Balance from the Eurozone showed a surplus of 20.3B against the forecasted 19.3B in July and supported single currency Euro. However, the upbeat data failed to reverse the pair’s movement as the focus was all on the FOMC meeting and Fed decision.

On the U.S. front, the Core Retail Sales in August declined to 0.7% from the forecasted 1.0%, and the Retail Sales in August also dropped to 0.6% from the projected 1.2% and weighed on the U.S. dollar. Whereas, the Business Inventories in July dropped to 0.1% from the projected 0.2% and supported the U.S. dollar. The NAHB Housing Market Index advanced to 83 from the anticipated 78 and supported the U.S. dollar. The mixed macroeconomic data from the U.S. also failed to impact on EUR/USD prices on Wednesday.

As the WHO has warned that the death toll in Europe is likely to increase in October and November, the local currency has come under pressure since then. On Wednesday, the regional health authorities announced that Madrid’s Spanish capital would introduce selective lockdowns in urban areas where the coronavirus has spread widely. This also weighed on local currency and added further pressure on EUR/USD pair.

On Wednesday, the European Commission President Ursula von der Leyen came to the European Parliament in Brussels to deliver her first state of European Union Address. She announced new plans that included measures to tear down single market restrictions, a new strategy for the Schengen zone, a proposal to increase the 2030 target of emission reduction to 55%, and investment for digital technologies. 

Daily Technical Levels

Support Pivot Resistance
1.1773 1.1828 1.1869
1.1732 1.1924
1.1676 1.1966

EUR/USD– Trading Tip

The EUR/USD pair has traded sharply bearish at 1.1750 area, and now the same level is extending solid support to the pair. On the higher side, the EUR/USD may soar until 1.1780 level that marks 38.2% Fibo and 1.1810 level of 61.8% Fibonacci retracement. Conversely, the support stays at 1.1699 level today.

GBP/USD – Daily Analysis

The GBP/USD closed at 1.29666 after placing a high of 1.30070 and a low of 1.28749. Overall the movement of the GBP/USD pair remained bullish throughout the day. The pair GBP/USD extended its previous daily gains and rose above 1.3000 level on Wednesday amid dovish hopes for the FOMC meeting. The strong CPI report from the U.K. negative Retail Sales report from the U.S. also added further gains in the GBP/USD pair on Wednesday.

As investors have digested the recent developments surrounding Brexit and the internal market bill, the heavy tone surrounding the U.S. dollar also helped the GBP/USD pair to surgeon Wednesday. The heavy bearish pressure on the U.S. dollar was exerted by the release of disappointing U.S. monthly Retail Sales figures for August.

At 17:30 GMT, the Core Retail Sales dropped to 0.7% from the anticipated 1.0%, and the Retail Sales were declined to 0.6% from the projected 1.1% and weighed heavily on the U.S. dollar that helped GBP/USD pair to move on the upside. Meanwhile, from the U.K., at 11:00 GMT, the Consumer Price Index for the year rose to 0.2% from the expected 0.1% and supported the Sterling. The Core Consumer Price Index also rose to 0.9% from the expected 0.7% and supported British Pound.

Whereas the PPI Input in August was declined to -0.4% from the forecasted 0.1%, and the PPI Output also declined to 0.0% against the forecasted 0.2% and weighed on local currency. The year’s RPI declined to 0.5% from the expected 0.6% and weighed on British Pound. However, the Housing Price Index for the year rose to 3.4% from the projected 3.2% and supported British Pound that added further gains in GBP/USD pair.

On the Brexit front, the head of the European Commission said on Wednesday that the chances of reaching a trade deal with Britain were fading by the day as the British government pushes ahead with moves that would breach their withdrawal agreement.

Brussels have warned Prime Minister Boris Johnson to scrap the Internal Market Bill, or it would sink the talks on future trade arrangements before Britain finally leaves the E.U.’s orbit on December 31. However, Johnson has refused to step back from issuing an Internal Market Bill. 

The President of the European Commission, Ursula von der Leyen, said that the timely agreement’s chances have started to fade with the time passing, which raised the fears on no-deal Brexit. However, this failed to cap the additional gains in GBP/USD pair as markets have already priced the no-deal Brexit worries. Moreover, the U.S. dollar was also under pressure on Wednesday ahead of FOMC meeting results and the speech of Fed Chair Jerome Powell. This added further strength in the GBP/USD pair.

 Daily Technical Levels

Support Pivot Resistance
1.2890 1.2949 1.3024
1.2815 1.3083
1.2757 1.3157

GBP/USD– Trading Tip

The GBP/USD pair is trading at 1.2909 level, holding within an upward channel supporting the pair at 1.2909 level. The closing of the recent Doji candle over the EMA and upward trendline support level of 1.2909 level suggests odds of upward movement in the market. Considering this, we may have some upward trend in the Sterling ahead of the BOE rate decision. Thus, we should look for a buying trade with a target of 1.2996 level. Violation of 1.2909 le el can trigger selling bias until 1.2828 level, but it depends upon the policy decision today. Let’s keep an eye on it. 

 

USD/JPY – Daily Analysis

The USD/JPY Pair was closed at 104.944 after placing a high of 105.432 and a low of 104.799. Overall the movement of the USD/JPY pair remained bearish throughout the day. The pair USD/JPY extended its bearish trend for the 3rd consecutive day and fell to its lowest since July 31. The U.S. Dollar Index fell 0.3% on Wednesday ahead of the U.S. Federal Reserve policy meeting outcome.

The decline in the U.S. dollar was due to the expectations that the Federal Reserve Open Market Committee will maintain a dovish stance on the economy’s outlook. Last month during the Fed’s annual Jackson Hole Symposium, the Federal Reserve unveiled a major change in policy and said it would now target an inflation rate that averages 2% over time. Previously the Fed’s target was to maintain inflation at 2%; the current U.S. consumer inflation is at 1.3%.

The Market Participants do not expect any rise in the Fed’s benchmark interest rate of 0.25% for a longer period; however, they were keenly awaiting the meeting to conclude whether the central bank issues any surprise economic projections. The dovish expectations kept the local currency under pressure that weighed on the USD/JPY pair on Wednesday.

Meanwhile, the Trade Balance from Japan showed a surplus of 0.35T from the anticipated 0.01T and supported the Japanese Yen that added further pressure on the USD/JPY pair on the data front. On the U.S. side, the Core Retail Sales in August fell to 0.7% from the anticipated 1.0% and weighed on the U.S. dollar that exerted further pressure on the USD/JPY pair. In August, the Retail Sales also fell to 0.6% from the anticipated 1.1% and weighed on the U.S. dollar that kept the pair USD/JPY on the downside.

However, in July, the Business Inventories that were released at 19:00 GMT dropped to 0.1% from the forecasted 0.2% and supported the U.S. dollar. The NAHB Housing Market Index also favored the U.S. dollar when it rose to 83 from the anticipated 78 and capped further downward movement in the USD/JPY pair.

On Wednesday, the U.S. President Donald Trump urged Republicans to hold a larger coronavirus package as this will increase the chances of striking a deal with Democrats. The comments from Trump showed a need for stimulus and raised hopes that the stimulus package will be announced soon, and hence, the U.S. dollar came under fresh pressure that ultimately weighed on USD/JPY pair prices.

On the other hand, the USD/JPY pair’s losses were limited by the latest news that supported the risk sentiment in the market. The U.S. Federal Government drew a sweeping plan on Wednesday to make vaccines for the coronavirus available for free to all Americans. The federal health agencies and the Defense Department offered plans for a vaccination campaign that will start in January or later this year. The market participants are waiting for his speech to find fresh clues about the economic condition and further monetary policy decisions by the U.S. government. Hence, the local currency remained under pressure ahead of it and kept weighing the USD/JPY currency pair.


Daily Technical Levels

Support Pivot Resistance
104.6700 105.0600 105.3300
104.4100 105.7100
104.0200 105.9800

USD/JPY – Trading Tips

The USD/JPY pair had violated the double bottom support level of 105.300 level, and closing of the candle below 105.300 level may drive more selling bias in the USD/JPY. On the lower side, the support stays at 104.780 level, and a bearish breakout can lead USD/JPY price further lower towards 104.300 level. The focus will remain on the U.S. Jobless claims data as it may drive further market trends. The MACD and EMA are also in support of selling bias. 

Good luck! 

 

 

Categories
Forex Signals

USD/JPY Extended Previous Session Losing Streak – Update on Singal! 

During Wednesday’s early European trading session, the USD/JPY currency pair failed to stop its Asian session bearish moves and dropped further near 105.30 level mainly due to the broad-based U.S. dollar weakness, triggered by the cautious mood of traders ahead of the Federal Open Market Committee (FOMC) meeting. Moreover, backed by the recently positive coronavirus (COVID-19) vaccine news, the upbeat market sentiment also weighed on the safe-haven U.S. dollar. 

During Wednesday’s early European trading session, the USD/JPY currency pair failed to stop its Asian session bearish moves and dropped further near 105.30 level mainly due to the broad-based U.S. dollar weakness, triggered by the cautious mood of traders ahead of the Federal Open Market Committee (FOMC) meeting. Moreover, backed by the recently positive coronavirus (COVID-19) vaccine news, the upbeat market sentiment also weighed on the safe-haven U.S. dollar. 

During Wednesday’s early European trading session, the USD/JPY currency pair failed to stop its Asian session bearish moves and dropped further near 105.30 level mainly due to the broad-based U.S. dollar weakness, triggered by the cautious mood of traders ahead of the Federal Open Market Committee (FOMC) meeting. Moreover, backed by the recently positive coronavirus (COVID-19) vaccine news, the upbeat market sentiment also weighed on the safe-haven U.S. dollar. 

Across the ocean, the currency pair’s losses were further bolstered after the upbeat Japanese Industrial Production details, which eventually underpinned the Japanese yen and contr3bited to the currency pair losses. Apart from this, the latest positive headline that the world’s 3rd-largest economy is gradually overcoming the coronavirus (COVID-19) pandemic also boosted the yen currency and dragged the currency pair down. On the contrary, the latest optimism over a potential vaccine for the highly contagious coronavirus disease keeps supporting the market trading sentiment, which undermined the safe-haven Japanese yen and became the key factor that cap further downside for the currency pair.  

Many factors tend to undermine the U.S. dollar. Be it the ongoing impasse over the next round of the U.S. fiscal stimulus or the upbeat market sentiment, not to forget traders’ cautious mood ahead of the Federal Open Market Committee (FOMC) meeting. However, the market trading sentiment was remained supported by optimism over a potential vaccine for the highly contagious coronavirus disease.

Meanwhile, the U.S. and China’s positive data, which suggests gradual recoveries in global economics, also boosted the market trading tone. Detail Suggested, China’s Industrial Production and Retail Sales surpassed forecasts for August, the U.S. NY Empire State Manufacturing Index also recovered to 17.00 and pleased the optimists. 

As in result, the broad-based U.S. dollar failed to keep its overnight gains and edged lower on the day mainly due to the risk-on market sentiment. Moreover, the U.S. dollar losses could also be associated with cautious sentiment ahead of the U.S. Federal Reserve’s policy meeting, which is scheduled to take place on the day. However, the losses in the U.S. dollar kept the USD/JPY currency pair under pressure.. Whereas, the U.S. Dollar Index Futures that tracks the greenback against a bucket of other currencies dropped by 0.03% to 93.085 by 9:76 PM ET (2:57 AM GMT), giving up some earlier gains.

The upbeat Industrial Production details remained supportive of the Japanese yen at home, which kept the currency pair down. At the data front, Japan’s August month Merchandise Trade Balance Total rose to ¥248.3 B versus ¥-37.5 B market consensus and ¥10.9 B (revised). Further details suggest the Imports dropped below -18% YoY forecast to -20.8, whereas Exports recovered from -16.1% to -14.8% in the reported month.

Besides, the positive news suggesting that the world’s 3rd-largest economy is gradually overcoming the coronavirus (COVID-19) pandemic also underpinned the Japanese yen. Across the pond, the upbeat market tone, supported by multiple factors, tends to undermine the safe-haven Japanese yen and becomes the key factor that helps the currency pair limit its deeper losses. 

Looking ahead, the Bank of Japan is also scheduled to announce its policy decision on Thursday, which will key to watch for the fresh direction in the pair. Meanwhile, the market traders will keep their eyes on Japan’s trade numbers and Aussie housing data. Whereas, investors are also looking to the U.S. Federal Reserve’s policy meeting, scheduled to take place on the day. Meanwhile, New Zealand’s Current Account and the Pre-Election Economic and Fiscal Update (PREFU) will also key to watch. All in all, the updates surrounding the Brexit, virus, and US-China tussle will not lose their importance. 


The USD/JPY currency pair has dropped sharply amid increased safe-haven appeal and weakness in the U.S. dollar. The pair fell from 105.800 to 104.860 level, and now it’s facing resistance at 105.285 level. On the lower side, the USD/JPY pair may drop until 104.800 and 104.318. Good luck! 

Entry Price – Sell 104.98

Stop Loss – 105.38

Take Profit – 104.58

Risk to Reward – 1:1

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

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

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

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

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

Categories
Forex Signals

Gold Trades Choppy Ahead of FOMC – Ascending Triangle in Play! 

During Wednesday’s Asian trading session, the yellow metal prices extended its overnight buying bias and gathered some pace around the two-week tops above 1,960. The massive offered tone surrounding the greenback was seen as one of the major factors that helped the dollar-denominated commodity gold. However, the weaker tone around the U.S. dollar was mainly driven by the ongoing risk-on mood, which eventually undermined the safe-haven U.S. dollar. Besides, the U.S. dollar bearish bias could also be associated with traders’ cautious mood ahead of the Federal Open Market Committee (FOMC) meeting. Apart from this, the market trading sentiment was being supported by the news suggesting the AstraZeneca’s restart of the coronavirus (COVID-19) vaccine trials.

During Wednesday’s Asian trading session, the yellow metal prices extended its overnight buying bias and gathered some pace around the two-week tops above 1,960. The massive offered tone surrounding the greenback was seen as one of the major factors that helped the dollar-denominated commodity gold. However, the weaker tone around the U.S. dollar was mainly driven by the ongoing risk-on mood, which eventually undermined the safe-haven U.S. dollar. Besides, the U.S. dollar bearish bias could also be associated with traders’ cautious mood ahead of the Federal Open Market Committee (FOMC) meeting. Apart from this, the market trading sentiment was being supported by the news suggesting the AstraZeneca’s restart of the coronavirus (COVID-19) vaccine trials.

During Wednesday’s Asian trading session, the yellow metal prices extended its overnight buying bias and gathered some pace around the two-week tops above 1,960. The massive offered tone surrounding the greenback was seen as one of the major factors that helped the dollar-denominated commodity gold. However, the weaker tone around the U.S. dollar was mainly driven by the ongoing risk-on mood, which eventually undermined the safe-haven U.S. dollar. Besides, the U.S. dollar bearish bias could also be associated with traders’ cautious mood ahead of the Federal Open Market Committee (FOMC) meeting. Apart from this, the market trading sentiment was being supported by the news suggesting the AstraZeneca’s restart of the coronavirus (COVID-19) vaccine trials.

Meanwhile, the risk-on sentiment was further bolstered by the University Of Pittsburgh School Of Medicine’s positive news, where experts produced the strongest antibody component for the coronavirus tested over animals. These positive headlines became the key factor that kept the lid on any further yellow metal gains. On the contrary, the Sino-US trade area and coronavirus woes flashed mixed signals, which keep challenging the market risk-on sentiment. Gold prices are currently trading at 1,966 and consolidating in the range between 1,949.99 – 1,962.97. Moving on, the market traders seem reluctant to place any strong position ahead of the U.S. Federal Reserve’s policy meeting, which is due to happen on the day. 

Despite the COVID-19’s ongoing global spread and the Sino-American tussle, not to forget the fears of no-deal Brexit, the market trading sentiment extended its early-day positive tone and remained supportive by the positive data from the U.S. and China, which suggesting gradual recoveries in the global economics from China and the U.S. At the data front, China’s Industrial Production and Retail Sales surpassed forecasts for August, the U.S. NY Empire State Manufacturing Index also recovered to 17.00 and pleased the optimists. 

Apart from this, the reasons for the risk-on market trading sentiment could also be attributed to the positive headlines concerning the coronavirus vaccine. The AstraZeneca showed readiness for resuming its vaccine trials after a brief “routine” pause, while the Pfizer is confident about getting the cure of the pandemic by the year’s end. Furthermore, the latest news came from the University Of Pittsburgh School Of Medicine, wherein the scientists produced the strongest antibody component for the pandemic. This, in turn, underpinned the market trading sentiment and kept the lid on any further gains in the gold prices.

Across the pond, the tussle between the US-China flashed mixed signals as the Trump administration quietly eased warning towards China and Hong Kong. Whereas, the Dragon Nation extended tariff relief for U.S. imports. This, in turn, the U.S. rolled back the decision to ban some of the productions from Xinjiang. Despite this, the relationship between US-China turned sour after the World Trade Organization (WTO) ruled against the Trump administration’s decision to levy multiple trade sanctions on China. These mixed headlines might exert downside pressure on the market trading sentiment, which could help further the safe-haven assets.

The broad-based U.S. dollar failed to keep its overnight gains and edged lower on the day, mainly due to the risk-on market sentiment. Moreover, the U.S. dollar losses could also be associated with cautious sentiment ahead of the U.S. Federal Reserve’s policy meeting, which is scheduled to take place on the day. It is worth mentioning that the Fed will speak later to hand down its policy decision; as we know, this will be its first meeting since Fed Chairman Jerome Powell announced a more relaxed approach to inflation at the Jackson Hole symposium August 27. However, this stance is broadly expected to be continued and could undermine the U.S. dollar by introducing further stimulus measures. At the coronavirus front, the ongoing rise in COVID-19 cases globally continues to fuel worries concerning the global economic outlook for the foreseeable future.


Looking ahead, the market traders will keep their eyes on Japan’s trade numbers and Aussie housing data. Whereas, investors are also looking to the U.S. Federal Reserve’s policy meeting, scheduled to take place on the day. Meanwhile, New Zealand’s Current Account and the Pre-Election Economic and Fiscal Update (PREFU) will also key to watch. All in all, the updates surrounding the Brexit, virus, and US-China tussle will not lose their importance. 

The yellow metal gold traded sharply bullish amid weaker U.S. dollar to trade at 1,961 level. On the higher side, the gold prices may continue to trade bullish until 1,970 and 1,985 and 1,994 resistance levels. On the lower side, the gold may gain support at 1,963 and 1,955 levels. Overall, the trading bias seems bullish. Good luck! 

Categories
Forex Signals

AUD/USD Managed To Keeps Winning Streak – Buy Signal In Play! 

Today in the early European trading session, the AUD/USD currency pair extended its previous session bullish bias and took further bids around a weekly high 0.7329 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 Sino-American trade optimism also helped the market risk tone, which underpinned the Australian dollar’s perceived risk currency and contributed to the currency pair gains.  

Today in the early European trading session, the AUD/USD currency pair extended its previous session bullish bias and took further bids around a weekly high 0.7329 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 Sino-American trade optimism also helped the market risk tone, which underpinned the Australian dollar’s perceived risk currency and contributed to the currency pair gains.  

Today in the early European trading session, the AUD/USD currency pair extended its previous session bullish bias and took further bids around a weekly high 0.7329 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 Sino-American trade optimism also helped the market risk tone, which underpinned 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 cautious mood of traders ahead of the Federal Open Market Committee (FOMC) meeting, also supported the currency pair. The AUD/USD currency pair is currently trading at 0.7329 and consolidating in the range between 0.7288 – 0.7330.

The market trading sentiment recently got the lift after the positive news from the University Of Pittsburgh School Of Medicine, suggesting that the experts produced the strongest antibody component for the coronavirus, tested over animals. Meanwhile, the Trump administration stepped back from its plans for importing cotton and tomato products from China’s Xinjiang region. This, in turn, boosted further the market trading tone. 

Furthermore, the U.S. and China’s positive data, which suggests gradual recoveries in global economics, also boosted the market trading tone. Detail Suggested, China’s Industrial Production and Retail Sales surpassed forecasts for August, the U.S. NY Empire State Manufacturing Index also recovered to 17.00 and pleased the optimists. This, in turn, underpinned the perceived risk currency Australian dollar and contributed to the currency pair gains.  

On the contrary, the uncertainties over the much-awaited fiscal package remain on the play as both sides do not show any clues on it. Meanwhile, the rising COVID-19 cases globally continue to fuel worries concerning the global economic outlook. This gloomy factor could be considered as the key factor that cap further gains in the currency pair.

Looking ahead, the market traders will keep their eyes on Japan’s trade numbers and Aussie housing data. Whereas, investors are also looking to the U.S. Federal Reserve’s policy meeting, scheduled to take place on the day. Meanwhile, New Zealand’s Current Account and the Pre-Election Economic and Fiscal Update (PREFU) will also key to watch. All in all, the updates surrounding the Brexit, virus, and US-China tussle will not lose their importance. 


The AUD/USD pair continues to encounter resistance at the 0.7344 mark, and an upward crossover of 0.7344 mark can drive bullish bias unto 0.7412 and 0.7450 level today. On the downside, the support continues to linger at 0.7245 and 0.7149 level. Bullish bias appears powerful today; nevertheless, the focus will remain on the U.S. FOMC and Fed Fund Rate today. 

Entry Price – Buy 0.73241

Stop Loss – 0.72841

Take Profit – 0.73641

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 16 – Top Trade Setups In Forex – Eyes on FOMC Fed Fund! 

On the news front, the eyes will remain on the FOMC Statement and Federal Funds Rate, which is not expected to show a rate change but will help us understand U.S. economic situation and policymakers’ stance on it. Besides, the Inflation reports from the U.K. and Eurozone are also likely to drive some price action during the European session today.

On the news front, the eyes will remain on the FOMC Statement and Federal Funds Rate, which is not expected to show a rate change but will help us understand U.S. economic situation and policymakers’ stance on it. Besides, the Inflation reports from the U.K. and Eurozone are also likely to drive some price action during the European session today.

On the news front, the eyes will remain on the FOMC Statement and Federal Funds Rate, which is not expected to show a rate change but will help us understand U.S. economic situation and policymakers’ stance on it. Besides, the Inflation reports from the U.K. and Eurozone are also likely to drive some price action during the European session today.

Economic Events to Watch Today  

 

 

EUR/USD – Daily Analysis

The EUR/USD pair closed at 1.18461 after placing a high of 1.19003 and a low of 1.18393. Overall the movement of the EUR/USD pair remained bearish throughout the day. After rising for four consecutive days, the EUR/USD pair fell on Tuesday amid renewed safe-haven appeal for the U.S. dollar despite the strong Eurozone data. The EUR/USD turned negative for the day as the greenback managed to trim losses versus Euro as the latest statement from WTO weighed down the risk sentiment.

On Tuesday, the World Trade Organization ruled that the U.S. tariffs imposed on Chinese goods in 2018 that led to trade war were inconsistent with international trade rules. The WTO said that the U.S. did not provide evidence that its claims of China’s unfair technology theft and state aid justified the border taxes. 

The U.S. condemned and called WTO inadequate to the task of confronting China while Chinese officials cheered the ruling. Due to its safe-haven status on such news and weighed on EUR/USD pair on Tuesday, the U.S. dollar gained due to its safe-haven status.

On the data front, at 11:45 GMT, the French Final CPI in August remained flat with the expectations of -0.1%. At 14:00 GMT, the ZEW Economic Sentiment for Eurozone rose in September to 73.9 from the forecasted 63.0 and Euro. The German ZEW Economic Sentiment in September also rose to 77.4 from the forecasted 69.7 and supported the single currency. These positive reports from Eurozone gave the Euro strength and capped further losses in EUR/USD pair.

On the U.S. front, the Empire State Manufacturing Index for August rose to 17.0 from the projected 6.2 and supported the U.S. dollar that added further losses in EUR/USD pair. The Import Prices in August also advanced to 0.9% from the anticipated 0.5% and supported the losses of the EUR/USD pair.

On Tuesday, the U.S. Dollar Index (DXY) erased its previous losses and rose to 93.00 and was up by 0.6% on Tuesday. On the other hand, the Euro was weak against the U.S. dollar; hence, the pair EUR/USD came under pressure. Another factor involved in the sudden fall of EUR/USD pair prices was the World Health Organization’s latest warning. The WHO warned on Monday that Europe would face a rising death toll from the coronavirus during the autumn months as the number of daily infections worldwide reached a high record. This raised the fears and weighed on risk sentiment that dragged the EUR/USD pair on the downside.

Daily Technical Levels

Support Pivot Resistance
1.1821 1.1861 1.1883
1.1799 1.1923
1.1760 1.1945

EUR/USD– Trading Tip

The EURUSD pair is bouncing off the support level of 1.1835 level, and now it’s trading at 1.1845 level. For now, the EUR/USD may find support at 1.1815 level, and above this, the continuation of a bullish trend may lead EUR/USD price until 1.1903 level. Bearish correction can be seen until 1.1815 and 1.1764 support levels.

GBP/USD – Daily Analysis

The GBP/USD pair was closed at 1.28885 after placing a high of 1.29262 and a low of 1.28145. Overall the movement of the GBP/USD pair remained bullish throughout the day. The GBP/USD pair on Tuesday rose and extended its previous day’s bullish track on the back of positive macroeconomic data from the U.K. despite the strong rebound of the U.S. dollar in the market. However, the gains were limited as the issue of the internal market bill was still intact.

The GBP/USD pair rose on the strong U.K. jobs data on Tuesday when at 11:00 GMT, the Claimant Count Change from the U.K. dropped in August to 73.7K from the forecasted 99.5K and supported a single currency, the British Pound.

The Average earning Index for the quarter came in as -1.0% against the forecasted -1.3% and supported the British Pound that helped GBP/USD to gain traction. The Unemployment Rate in July remained flat with expectations of 4.1%.

The strong jobs report from the U.K. gave strength to the local currency Sterling and helped the pair rise for the second consecutive day. 

Meanwhile, the U.S. dollar was also strong on the board after the WTO ruled the U.S. tariffs as illegal on Chinese goods imposed in 2018 and triggered the US-China trade war. The U.S. dollar’s safe-haven status supported the greenback and the capped further gains in GBP/USD pair on Tuesday.

Moreover, the mixed U.S. macroeconomic data also helped the GBP/US pair to post gains on Tuesday. At 17:30 GMT, the Import Prices in August rose by 0.9% from the forecasted 0.5% and supported the U.S. dollar. While, at18:15 GMT, the Industrial Production from the U.S. in August fell to 0.4% from the forecasted 1.2% and weighed on the U.S. dollar. The Capacity Utilization Rate also dropped to 71.4% from the expected 71.7% and weighed on the U.S. dollar that ultimately supported the GBP/USD pair’s strength on board.

Furthermore, the concerns related to the availability of coronavirus testing in the country have been raised as the hospital staff has warned about the situation. However, Prime Minister Boris Johnson has unveiled an “Operation Moonshot” that aimed to test 10 million people every day for the coronavirus and restore life to normal by winter.

The U.K. also struggled to impose the latest “rule of six” limit on social gathering as the crime minister urged neighbors to report for any suspected breach of the new rule. This comes after the U.K.’s reproduction or R number escalated between 1 and 1.2 for the first time since March. These ongoing virus updates also capped further upside momentum in GBP/USD pairs.

However, on the Brexit front, the main sticking point, for the time being, was that whether the U.K. will go back on its word over the custom territory in Northern Ireland. The Internal Market bill is undervotes through the House of Commons and the House of Lords. It is not clear whether the bill will pass, but it will break the international law if it does. A deal between the E.U. and the U.K. will still be possible, but it would represent a lack of trust and could impact the future relationship of E.U. & U.K.

 Daily Technical Levels

Support Pivot Resistance
1.2825 1.2876 1.2937
1.2763 1.2989
1.2712 1.3050

GBP/USD– Trading Tip

The GBP/USD traded sharply lower at 1.2843 level, and now it’s forming a Doji candle, which may trigger buying in the GBP/USD pair. On the higher side, the Sterline may soar to target 1.2928 level, and even above this, the next target for Sterling can be 1.3033 level. The MACD and EMA are still supporting a selling bias; therefore, we should be looking to take selling entry below 1.2928 level today. 

USD/JPY – Daily Analysis

The USD/JPY pair was closed at 105.440 after placing a high of 105.812 and 105.299. Overall the movement of the USD/JPY pair remained bearish throughout the day. The USD/JPY pair extended its losses and dropped to its 2-weeks lowest level near 105.200 ahead of the FOMC meeting. The U.S. Dollar Index fell to 92.85 on Tuesday and lost 0.22% as the U.S.’s major equities were higher with the S&P 500 up by 0.7%.

The USD/JPY pair came under fresh pressure after the latest comments from WTO and WHO on Tuesday. China’s upbeat data also boosted risk sentiment, but the market traders ignored it, and the pair USD/JPY continued its downward movement. On Tuesday, the World Trade Organization ruled that the tariffs imposed in 2018 on Chinese goods by the United States were inconsistent with the international rules. This raised the uncertainty and safe-haven appeal, and the Japanese Yen gained traction that ultimately weighed on the USD/JPY pair.

The top American trade Ambassador, Robert Lighthizer, said that the U.S. must be allowed to defend itself against unfair trade practices and that WTO was inadequate with its task to confront China. Whereas, Chinese officials cheered the ruling by WTO.

 On the other hand, on Monday, the World Health Organization warned that Europe would see a rise in the daily number of COVID-19 deaths in October and November as the rising number of coronavirus cases worldwide was not slowing down. This also weighed on risk sentiment, and the Japanese Yen gained traction that led to downward momentum in the USD/JPY pair.

Meanwhile, the Chinese Industrial Production and Retail Sales for the year advanced in August and supported the hopes of economic recovery. This supported the risk sentiment and capped further losses in the USD/JPY pair on Tuesday.

On the data front, at 17:30 GMT, the Empire State Manufacturing Index in September rose to 17.0 from the expected 6.2 and supported the U.S. dollar. The Import Prices in August also rose to 0.9% from the forecasted 0.5% and supported the U.S. dollar. 

At 18:15 GMT, the Capacity Utilization Rate from the U.S. in August dropped to 71.4% from the forecasted 71.7% and weighed on the U.S. dollar and supported the downward momentum of the USD/JPY pair. The Industrial Production in July also dropped to 0.4% from the forecasted 1.2% and the previous 3.5% and weighed heavily on the U.S. dollar that supported the losses of the USD/JPY pair on Tuesday. 

Furthermore, the FOMC meeting for September has started on Tuesday, and it will be concluded on Wednesday with the speech of Jerome Powell, the chairman of the Federal Reserve. The market participants are waiting for his speech to find fresh clues about the economic condition and further monetary policy decisions by the U.S. government. Hence, the local currency remained under pressure ahead of it and kept weighing the USD/JPY currency pair. In July, industrial production also dropped to 0.4% from the forecasted 1.2% and the previous 3.5% and weighed heavily on the U.S. dollar that supported the losses of the USD/JPY pair on Tuesday. 

Furthermore, the FOMC meeting for September has started on Tuesday, and it will be concluded on Wednesday with the speech of Jerome Powell, the chairman of the Federal Reserve. The market participants are waiting for his speech to find fresh clues about the economic condition and further monetary policy decisions by the U.S. government. Hence, the local currency remained under pressure ahead of it and kept weighing the USD/JPY currency pair.

Daily Technical Levels

Support Pivot Resistance
105.2100 105.5200 105.7500
104.9800 106.0600
104.6700 106.2800

USD/JPY – Trading Tips

On Wednesday, the USD/JPY currency pair continues to drop to test the

the double bottom support area of 105.250 level. Recently on the 4-hour timeframe, the USD/JPY pair is forming a bullish engulfing candle that’s followed by the bearish candles, suggesting that sellers are exhausted, and the bulls enter the market now. The USD/JPY pair may bounce off over 105.250 level to complete the 38.2% Fibonacci retracement level at 105.545 and 61.8% Fibonacci level of 105.750 level. Later today, the U.S. Fed Fund Rate will remain in the highlights. Therefore, we should be cautious with the trades that we open, and in fact, we should try to close them ahead of the news release. Good luck! 

 

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Forex Signals

USD/JPY Selling Bias Dominates – Quick Update on Signal! 

The USD/JPY closed at 105.730 after placing a high of 106.164 and a low of 105.547. The USD/JPY pair finally found some specific direction to follow and moved in the downward trend amid the broad-based U.S. dollar weakness. However, the improved risk sentiment around the market capped further downward movement in the currency pair.

The USD/JPY closed at 105.730 after placing a high of 106.164 and a low of 105.547. The USD/JPY pair finally found some specific direction to follow and moved in the downward trend amid the broad-based U.S. dollar weakness. However, the improved risk sentiment around the market capped further downward movement in the currency pair.

The USD/JPY closed at 105.730 after placing a high of 106.164 and a low of 105.547. The USD/JPY pair finally found some specific direction to follow and moved in the downward trend amid the broad-based U.S. dollar weakness. However, the improved risk sentiment around the market capped further downward movement in the currency pair.

The greenback came under selling pressure ahead of the U.S. Federal Reserve’s Open Market Committee’s meeting. The meeting is due to start on Tuesday and will conclude with the comments from Chairman Jerome Powell’s speech. The speech is expected to provide further decisions of the Federal Reserve related to average inflation targeting. The market participants are hoping that the Fed will remain dovish about its monetary policy on Wednesday.

The central bank seems to be satisfied with the interest rates being near-zero levels, and there will be no change in interest rates. However, the comments from Fed Chair related to further stimulus measures and monetary easing along with the inflation target will provide fresh clues about U.S. economic conditions. The U.S. dollar came under pressure as the House of Representatives have returned from summer break and the chances for the fifth round of stimulus measures to reach consensus have increased as talks would resume soon.

The weak U.S. dollar weighed heavily on the USD/JPY pair, and the pair dropped to 9 days the lowest level on Monday. Furthermore, the improved risk sentiment and the equity market also weighed heavily on the safe-haven Japanese Yen that provided some strength to the currency pair USD/JPY.

The U.S. equity rose on Monday after the Oxford University and AstraZeneca vaccine re-started its phase-3 trials and raised the hopes for economic recovery. The trials were paused due to some unexplained illness that was found in one of the participants last week. However, the trials were resumed and provided some strength to the USD/JPY pair.

Meanwhile, the statement by the World Health organization that in a single day, the record-high number of coronavirus cases were reported that raised fears for the resurgence of the coronavirus pandemic WHO reported that in the time of 24 hours, a record high of more than 307,000 cases was recorded globally which was the largest daily number since the pandemic started. This raised uncertainty in the market and supported the safe-haven Japanese yen that added further downward pressure on the USD/JPY pair.

On the data front, there was no release from the U.S. side, however, at 09:30 GMT, the Tertiary Industry Activity from Japan dropped to -0.5% in July from the forecasted 0.6% and weighed on the Japanese Yen. Whereas, at 09:33 GMT, the Revised Industrial Production from Japan in July rose to 8.7% from the forecasted 8.0% and supported the Japanese Yen that added further pressure on the USD/JPY pair on Tuesday.


The USD/JPY currency pair has dropped sharply amid increased safe-haven appeal and weakness in the U.S. dollar. The pair fell from 106 to 105.650 level, and now it’s facing resistance at 105.795 level. On the lower side, the USD/JPY pair may drop until 105.265.

Entry Price – Sell 105.574

Stop Loss – 105.974

Take Profit – 105.174

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 on a Bullish Run Amid Stronger ZEW Economic Sentiment

The EUR/USD managed to gains positive traction and edged higher around the 1.1900 level mainly due to the broad-based US dollar. Thus, the broad-based US dollar weakness could be associated with the market risk-on mood, which was supported by the renewed optimism over a possible vaccine for the highly infectious coronavirus disease. Apart from this, the doubts over the US fiscal stimulus measures and upbeat China data also weighed on the broad-based US dollar, which keeps the EUR/USD currency pair higher closer to 1.1900 marks. 

The EUR/USD managed to gains positive traction and edged higher around the 1.1900 level mainly due to the broad-based US dollar. Thus, the broad-based US dollar weakness could be associated with the market risk-on mood, which was supported by the renewed optimism over a possible vaccine for the highly infectious coronavirus disease. Apart from this, the doubts over the US fiscal stimulus measures and upbeat China data also weighed on the broad-based US dollar, which keeps the EUR/USD currency pair higher closer to 1.1900 marks. 

The EUR/USD managed to gains positive traction and edged higher around the 1.1900 level mainly due to the broad-based US dollar. Thus, the broad-based US dollar weakness could be associated with the market risk-on mood, which was supported by the renewed optimism over a possible vaccine for the highly infectious coronavirus disease. Apart from this, the doubts over the US fiscal stimulus measures and upbeat China data also weighed on the broad-based US dollar, which keeps the EUR/USD currency pair higher closer to 1.1900 marks. 

Across the pond, the firm note from the ECB at last week’s meeting boosted the positive tone around the shared currency, which also pushed the current par higher near the 1.1900 neighborhood, or new 3-day highs. Meanwhile, the positive stance in the speculative community also underpinned the constructive outlook in the shared currency and contributed to the currency pair gains. On the contrary, the rise in coronavirus infections across Europe becomes the key factor that kept the pressure on further gains in the pair. At the moment, the EUR/USD is trading at 1.1886 and consolidating in the range between the 1.1860 – 1.1900. Moving on, the currency pair traders seem cautious to place any strong position ahead of the German Zew survey and Eurozone Labor Cost data.

The shared currency Euro could face some selling pressures if Labor Costs’ growth slows more than expected, reviving disinflation fear. However, the Eurozone’s inflation turned negative in August, the official data on Sept. 1 showed. It worth recalling that the market focus would be on the Eurozone and German Zew Survey numbers, Eurozone Labor Cost (Q2), which is scheduled to release at 09:00 GMT. 

Across the ocean, the market trading sentiment remained well supported by the positive progress on a potential vaccine for the highly contagious coronavirus disease. These hopes were triggered after the Chinese CDC chief biosafety expert confirmed that the Ordinary Chinese could take the COVID19 vaccine as early as November or December as the phase III clinical trial went very smoothly. Meanwhile, the Pfizer’s Pharmaceutical company also joins the on-going optimism while saying that we will likely provide the pandemic’s cure during this year to the US. 

Apart from this, the upbeat Chinese macro numbers also exerted a positive impact on market trading sentiment. At the data front, China’s August Retail Sales YoY, the number came in at 0.5% versus. 0% exp and -1.1% last, with Industrial Output YoY at +5.6% and +5.1% exp and +4.8% last. In the meantime, the Fixed Asset Investment YoY unchanged at -0.3% vs. -0.4% expected and -1.6% last. At the same time, China’s January-August Private Sector Fixed Asst Investment dropped by 2.8% YoY.  

The greenback failed to extend positive traction and remained bearish on the day. Moreover, the losses in the US dollar could also be attributed to the doubts over the US fiscal stimulus measures. The probabilities for a large stimulus have fallen approximately to zero after Democratic voted to block a Republican bill that would have provided around $300 billion in new coronavirus aid. However, the losses in the US dollar kept the EUR/USD currency pair higher. Whereas, the US dollar index dropped to 93.029, slipping further from a one-month high of 93.664 touched last Wednesday, with its low last week of 92.695 seen as immediate support.


Moving on, the traders will keep their eyes on the Eurozone and German Zew Survey numbers, Eurozone Labor Cost (Q2), scheduled for release at 09:00 GMT. The data will influence the shared currency. Meanwhile, the updates surrounding the Brexit, virus, and US-China tussle could not lose its importance. 

The EURUSD pair has violated the double top resistance level of 1.1885 level, and now it’s trading at 1.1895 level. For now, the EUR/USD may find support at 1.1885 level, and above this, a continuation of a bullish trend may lead EUR/USD price until the 1.1916 level. Bearish correction can be seen until 1.1885 and 1.1870 before the continuation of further buying trends in the EUR/USD.

Entry Price – Buy 1.18896

Stop Loss – 1.18496

Take Profit – 1.19296

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 Extend Previous Day Bullish Rally – Risk-On Market Sentiment!

During Tuesday’s Asian trading session, the yellow metal prices extended its previous day winning streak and edged higher on the 2nd-day of a new week. However, the bullish sentiment around the yellow-metal prices has remained supportive by the prevalent selling bias surrounding the U.S. dollar. The losses in the U.S. dollar was seen as one of the key factors that helped the dollar-denominated commodity. Hence, the U.S. dollar was being pressurized by the doubts over the U.S. fiscal stimulus measures. Besides, the upbeat market mood, backed by the combination of factors, also undermined the U.S. dollar and contributed to the bullion gains. It is worth mentioning that the market trading sentiment was supported by the news suggesting that the Phase III clinical trial went very well, and the vaccine could be ready by November/December.

During Tuesday’s Asian trading session, the yellow metal prices extended its previous day winning streak and edged higher on the 2nd-day of a new week. However, the bullish sentiment around the yellow-metal prices has remained supportive by the prevalent selling bias surrounding the U.S. dollar. The losses in the U.S. dollar was seen as one of the key factors that helped the dollar-denominated commodity. Hence, the U.S. dollar was being pressurized by the doubts over the U.S. fiscal stimulus measures. Besides, the upbeat market mood, backed by the combination of factors, also undermined the U.S. dollar and contributed to the bullion gains. It is worth mentioning that the market trading sentiment was supported by the news suggesting that the Phase III clinical trial went very well, and the vaccine could be ready by November/December.

During Tuesday’s Asian trading session, the yellow metal prices extended its previous day winning streak and edged higher on the 2nd-day of a new week. However, the bullish sentiment around the yellow-metal prices has remained supportive by the prevalent selling bias surrounding the U.S. dollar. The losses in the U.S. dollar was seen as one of the key factors that helped the dollar-denominated commodity. Hence, the U.S. dollar was being pressurized by the doubts over the U.S. fiscal stimulus measures. Besides, the upbeat market mood, backed by the combination of factors, also undermined the U.S. dollar and contributed to the bullion gains. It is worth mentioning that the market trading sentiment was supported by the news suggesting that the Phase III clinical trial went very well, and the vaccine could be ready by November/December.

Meanwhile, the market risk sentiment got a lift after the upbeat Chinese activity data, which pushed the S&P 500 futures back on the bids to test 3380 levels. As in result, the upbeat market tone becomes the key factor that kept the lid on any additional gains in the safe-haven metal. Across the pond, the market trading sentiment was relatively unaffected by the Sino-American tussle, which recently picked up pace after the Trump administration banned certain Chinese products. At this time, the yellow metal prices are currently trading at 1,967.49 and consolidating in the range between 1,955.22 – 1,967.61.

While discussing the positive side of the story, the renewed optimism over a possible vaccine for the highly infectious coronavirus disease boosted the market risk tone. The hopes of the vaccine further boosted after the Chinese CDC chief biosafety expert tweeted that the Ordinary Chinese could take the #COVID19 vaccine as early as November or December as the phase III clinical trial went very smoothly. Meanwhile, the Pfizer’s optimism to provide the pandemic’s cure during this year to the U.S. also boosted the hopes of the vaccine. 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 Customs Tariff Commission of China is considering extending tariff exemption on some of the U.S. goods imports. In the meantime, China’s Finance Ministry stated that the tariff exemption extension applies to products from the U.S. such as lubricants. Apart from this, the upbeat Chinese macro numbers also exerted a positive impact on market trading sentiment. At the data front, China’s August Retail Sales YoY, the number came in at 0.5% versus. 0% exp and -1.1% last, with Industrial Output YoY at +5.6% and +5.1% exp and +4.8% last. In the meantime, the Fixed Asset Investment YoY unchanged at -0.3% vs -0.4% expected and -1.6% last. At the same time, China’s January-August Private Sector Fixed Asst Investment dropped by 2.8% YoY.

Additionally, the reason for the upbeat market tone could also be associated with the positive news suggesting that the Trump administration quietly eased travel warnings towards China and Hong Kong. However, this news recently pleased the market risk tone, which tends to urge investors to invest their money into riskier assets.

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, the tensions between Sino-US picked up further pace after the U.S. blocks Chinese goods made with forced labor. As per the latest report, the Trump administration has banned the import of certain apparel and computer parts from China, while saying forced Muslim laborers make them from the Xinjiang region.

At the Brexit front, the recent victory of the U.K.’s ruling Conservative Party-backed Internal Market Bill (IMB) into the House of Commons also keeps questioning the risk-on market sentiment. Although, the bill defied the opposition Labour Party’s motion for blockage but is yet to be announced as a law.

At the coronavirus front, the on-going rise in COVID-19 cases globally continues to fuel worries concerning the global economic outlook for the foreseeable prospect. The World Health Organization (WHO) recorded a record single-day hike in COVID-19 cases by 307,930 in 24 hours during this weekend.


Looking ahead, the market traders will keep their eyes on updates surrounding the Brexit, virus, and US-CHina tussle. Meanwhile, the U.S. Industrial Production m/m and Import Prices m/m will also be key to watch. The yellow metal gold traded distinctly bullish amid softer U.S. dollar to trade at 1,968 mark. On the upper side, the gold may extend trading upward unto 1,985 resistance. On the selling side, the XAU/USD may gain support at 1,963 and 1,955 mark. Overall, the trading bias appears to be bullish.

Entry Price – Buy 1968.14
Stop Loss – 1962.14
Take Profit – 1975.64
Risk to Reward – 1:1.25
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, September 15 – Top Trade Setups In Forex – Series of Events in Focus! 

On the news front, the eyes will remain on the U.K. labour market report along with EU ZEW Economic Sentiment and German ZEW Economic Sentiment that are forecasted to report negative figures. Later during the U.S. session, the U.S. Capacity Utilization Rate and Industrial Production m/m are expected to support greenback amid positive forecast.

On the news front, the eyes will remain on the U.K. labour market report along with EU ZEW Economic Sentiment and German ZEW Economic Sentiment that are forecasted to report negative figures. Later during the U.S. session, the U.S. Capacity Utilization Rate and Industrial Production m/m are expected to support greenback amid positive forecast.

On the news front, the eyes will remain on the U.K. labour market report along with EU ZEW Economic Sentiment and German ZEW Economic Sentiment that are forecasted to report negative figures. Later during the U.S. session, the U.S. Capacity Utilization Rate and Industrial Production m/m are expected to support greenback amid positive forecast.

Economic Events to Watch Today  

 

EUR/USD – Daily Analysis

The EUR/USD closed at 1.18633 after placing a high of 1.18877 and a low of 1.18316. The EUR/USD pair moved in an upward direction on Monday and extended its bullish streak for the 4th consecutive day on the back of a weak U.S. dollar and improved the global equity market along with the positive Eurozone economic data.

The S&P 500 futures were up by 1.2%, and Dow Jones Futures was up by 0.9% whereas the NASDAQ rose by 1.6%. The EUR/USD pair moved higher as the equities were marginally higher in Asia and Europe on the back of positive news from the vaccine side. The vaccine developed by Oxford and AstraZeneca has resumed its phase-3 trials, and this improved the market risk sentiment on the renewed hopes of potential vaccine development.

The same vaccine trials were stopped in the previous week after a participant was reported with an unexplained illness. However, the trials have been started this week again, and the hopes for economic recovery have returned with it that gave a push to EUR/USD prices on the upside.

Other than that, July’s Industrial Production from Eurozone showed an improvement to 4.1% against the forecasted 4.0% and supported the single currency Euro. The strong Euro then added further gains in the EUR/USD pair.

Moreover, the U.S. dollar weakness also played an important role in pushing the pair EUR/USD further on the upside. The U.S. dollar was weak on the board ahead of the upcoming Fed’s September monetary policy meeting this week. The two-day meeting of the FOMC (Federal Reserve Open Market Committee) will start on Tuesday and will be concluded by the comments from Jerome Powell on Wednesday.

The market participants are waiting for the comments from the Chairman of the U.S. Federal Reserve on Wednesday, and this has increased the selling pressure against the U.S. dollar. The weak U.S. dollar pushed the EUR. The USD pair is higher on Monday.

The U.S. dollar was under more pressure after the House of Representatives returned from summer break, and the hopes for reaching a consensus on the fifth round of stimulus measure increased. These hopes exerted further pressure on the U.S. dollar and added strength to the EUR/USD pair’s upward movement.

However, the gains in EUR/USD pair were capped after the WHO reported a record rise in the daily cases of coronavirus from across the globe. The organization said that 307,930 cases were recorded in a single day. This raised uncertainty around the market related to economic recovery and helped cap further losses in EUR/USD pair on Monday.

Daily Technical Levels

Support Pivot Resistance
1.1835 1.1862 1.1894
1.1803 1.1921
1.1776 1.1954

EUR/USD– Trading Tip

The EURUSD pair has violated the double top resistance level of 1.1885 level, and now it’s trading at 1.1895 level. For now, the EUR/USD may find support at 1.1885 level, and above this, a continuation of a bullish trend may lead EUR/USD price until 1.1916 level. Bearish correction can be seen until 1.1885 and 1.1870 before continuation of further buying trend in the EUR/USD.

GBP/USD – Daily Analysis

The GBP/USD closed at 1.28450 after placing a high of 1.2919 and a low of 1.27705. The pair GBP/USD rose in the first trading session on Monday, and after that, it converted its direction in the late trading session and lost some of its daily gains. The rise in prices of the GBP/USD pair on Monday was due to a weak U.S. dollar and improved risk sentiment. 

However, the Pound eased from session highs on Monday as Prime Minister Boris Johnson continued to make a case for a controversial bill that threatens to break the terms of the post-Brexit deal with the European Union the following vote later today.

The U.S. dollar came under fresh selling pressure on Monday after the equities rose in Asian and European session due to positive news from the vaccine front. The AstraZeneca and Oxford vaccine resumed its vaccine’s phase-3 trials after they were paused due to an unexplained illness found in one of the shareholders last week. 

The resumed trials of the long-awaited vaccine raised hopes for economic recovery and risk sentiment and helped the risk perceived British Pound to gain traction and move the GBP/USD pair on the upside.

However, the GBP/USD pair came under pressure ahead of the parliament vote on the internal market bill when Boris Johnson suggested that the legislation was needed to avoid a situation in which the E.U. counterparts seriously believe that they had the power to break up the U.K.

The expectations are high that the bill will pass the first parliamentary process despite the several party members of the Tory government have refused to back the bill. Furthermore, the upward movement of the Pound was short lives ahead of the Bank of England’s meeting later this week. Market participants have suggested that the central bank would welcome further easing in November and would renew its cautious outlook on the economy.

The hopes for further easing also weighed on GBP/USD pair and capped further gains in the currency pair at the starting day of the week in the absence of any macroeconomic data from both sides.

 Daily Technical Levels

Support Pivot Resistance
1.2774 1.2847 1.2919
1.2702 1.2992
1.2629 1.3063

GBP/USD– Trading Tip

The GBP/USD traded sharply lower at 1.2843 level, and now it’s forming a Doji candle, which may trigger buying in the GBP/USD pair. On the higher side, the Sterline may soar to target 1.2928 level, and even above this, the next target for Sterling can be 1.3033 level. The MACD and EMA are still supporting a selling bias; therefore, we should be looking to take selling entry below 1.2928 level today. 

USD/JPY – Daily Analysis

The USD/JPY currency pair failed to halt its Asian session bearish moves and witnessed some further selling moves near 105.90 level mainly due to the broad-based U.S. dollar weakness, triggered by the doubts over the next round of the U.S. fiscal stimulus measures. Moreover, the upbeat market sentiment, backed by the recently positive coronavirus (COVID-19) vaccine news, also weighed on the safe-haven U.S. dollar, which ultimately dragged the currency pair below 106.00 level. However, the risk-on market sentiment also undermined the safe-haven Japanese yen and became the critical factor that helped the USD/JPY currency pair to limits its deeper losses. 

On the contrary, the fears of a no-deal Brexit and the Sino-American tussle keep challenging the market risk-on tone, which might suffer the currency pair into deeper losses. 

The ongoing impasse over the next round of the U.S. fiscal stimulus or the upbeat market sentiment, not to forget the record single-day increase in COVID-19 cases, these all factors tend to undermine the broad-based U.S. dollar. The U.S. Senate rejected a Republican bill that would have provided around $300 billion in new coronavirus aid. Democrats voted to block the law as they have been pushing for more funding to control the economic downturn that led the coronavirus pandemic.

Despite the lingering doubts over the U.S. economic recovery and the intensifying tension between the world’s two biggest economies, the market players continue to cheer the optimism about the coronavirus treatment. These hopes fueled after the AstraZeneca’s showed readiness to restart the third phase of coronavirus (COVID-19) vaccine trials. 

This, in turn, the broad-based U.S. dollar edged lower on the day as the lack of progress over the U.S. aid package continuously destroying hopes for a quick economic recovery. Meanwhile, the weaker tone surrounding the U.S. Treasury bond yields further weakened the already weaker sentiment surrounding the dollar. At the US-China front, the rising tensions between the United States and China as China’s Commerce Ministry said that it launched an anti-subsidy investigation on certain glycol ethers imports from the U.S., starting September 14.

Besides this, China announced that Beijing had sent a note detailing reciprocal restrictions on the U.S. Embassy and consulates on Friday. These moves came after the U.S. sanctions on Chinese individuals, which fuels worries about worsening US-China relations. These fears keep challenging the market risk-on tone and might suffer the currency pair into deeper losses.

Daily Technical Levels

Support Pivot Resistance
105.4500 105.8300 106.1200
105.1600 106.5000
104.7800 106.7800

USD/JPY – Trading Tips

The USD/JPY currency pair has dropped sharply amid increased safe-haven appeal and weakness in the U.S. dollar. The pair fell from 106 to 105.650 level and now it’s facing resistance at 105.795 level. On the lower side, the USD/JPY pair may drop until 105.265. Let’s consider opening a sell trade below 105.750 to target 105.450 and 105.250 level as the MACD and RSI also signalling selling bias. Good luck! 

 

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Forex Signals

EUR/USD Bullish Momentum Continues – Update on Buying Signal!  

During Monday’s early European trading session, the EUR/USD currency pair successfully extended its previous session bullish trend and kept gaining its positive traction around above the 1.1850 level due to the broad-based U.S. dollar weakness. The U.S. dollar weakness could be associated with the massive U.S. tech selloff. Moreover, the upbeat market sentiment, supported by optimism over a potential vaccine/treatment for the highly infectious coronavirus, also weighed on the safe-haven USD and contributed to the currency pair gains. 

During Monday’s early European trading session, the EUR/USD currency pair successfully extended its previous session bullish trend and kept gaining its positive traction around above the 1.1850 level due to the broad-based U.S. dollar weakness. The U.S. dollar weakness could be associated with the massive U.S. tech selloff. Moreover, the upbeat market sentiment, supported by optimism over a potential vaccine/treatment for the highly infectious coronavirus, also weighed on the safe-haven USD and contributed to the currency pair gains. 

During Monday’s early European trading session, the EUR/USD currency pair successfully extended its previous session bullish trend and kept gaining its positive traction around above the 1.1850 level due to the broad-based U.S. dollar weakness. The U.S. dollar weakness could be associated with the massive U.S. tech selloff. Moreover, the upbeat market sentiment, supported by optimism over a potential vaccine/treatment for the highly infectious coronavirus, also weighed on the safe-haven USD and contributed to the currency pair gains. 

On the other hand, the French FinMin Le Maire’s positive comments over the French economy also gave some support to the shared currency, which pushed the currency pair intra-day high. Meanwhile, the shared currency was also being supported by Thursday’s decision of the European Central Bank (ECB). Apart from this, the investors seem to be avoiding the rise in coronavirus infections across the old continent. The EUR/USD is currently trading at 1.1867 and consolidating in the range between the 1.1831 – 1.1869.

 

The sentient around the shared currency is remained supportive by the comment from the ECB’s Villeroy that “We don’t target exchange rate”. Besides, the central bank’s President Christine Lagarde’s positive statement that Eurozone’s domestic demand had recorded a notable recovery from low levels also played a key role in underpinning the shared currency.

Finance Minister Bruno Le Maire said in an interview with France 2 television on the day that “The French economy is in the right direction.” He further added that “French economy could do better than 11 percent contraction currently forecast for 2020”. Thus, The common currency recently got some extra support from the above comments and hit the intra-day high level around above 1.1865.

On the other hand, the positive tone around the market trading sentiment undermined the safe-haven U.S. dollar, giving support to the currency pair. Despite the fears of no-deal Brexit and the Sino-American tussle, not to forget the record single-day increase in COVID-19 cases, the market trading sentiment extended its early-day positive tone and remained supportive by the weekend positive headlines suggesting the AstraZeneca’s restart of the coronavirus (COVID-19) vaccine trials. As in result, the S&P 500 Futures add 0.73% to 3,347 as of now. Considering the risk-barometers’ positive tone, the market’s safe-haven demand undermined, eventually weighing on the safe-haven U.S. dollar.

The reasons for the risk-on market trading sentiment could be attributed to the positive headlines concerning the coronavirus vaccine. The AstraZeneca showed readiness for resuming its vaccine trials after a brief “routine” pause. At the same time, Pfizer is confident about getting the pandemic’s cure by the year’s end.

As a result, the broad-based U.S. dollar stopped its overnight gains and started to flash red. Moreover, the U.S. dollar losses could also be associated with a selloff rally in U.S. tech stocks overnight. This, in turn, fueled worries about the recovery. However, the losses in the U.S. dollar kept the EUR/USD currency pair higher. Whereas, the U.S. Dollar Index that tracks the greenback against a bucket of other currencies dropped by 0.16% to 93.192 by 11:57 PM ET (4:57 AM GMT).


Looking ahead, the market traders will keep their eyes on updates surrounding the Brexit, virus, and US-CHina tussle. Whereas, investors are also looking to the U.S. Federal Reserve’s policy meeting scheduled to take place on Wednesday. The EUR/USD continues to trade at 1.1835 level as the ECB decided to leave its interest rate unchanged in its Monetary policy meeting.  On the higher side, the pair may find resistance at 1.1839 level and above this, the pair may find the next resistance at 1.1860 level along with support at 1.1828 level. Below 1.1828, the EUR/USD may find the next support at 1.1797 and 1.1755 level.

Entry Price – Buy 1.18562

Stop Loss – 1.18162

Take Profit – 1.18962

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 14 – Top Trade Setups In Forex – U.S. Industrial Production in Focus! 

On Monday, the focus will remain on the European Industrial Production m/m data; however, the data is low impact and may not drive major market movements. Therefore, the technical side may drive further trends in the market.

On Monday, the focus will remain on the European Industrial Production m/m data; however, the data is low impact and may not drive major market movements. Therefore, the technical side may drive further trends in the market.

On Monday, the focus will remain on the European Industrial Production m/m data; however, the data is low impact and may not drive major market movements. Therefore, the technical side may drive further trends in the market.

Economic Events to Watch Today  

 

 

EUR/USD – Daily Analysis

The EUR/USD prices were closed at 1.18435 after placing a high of 1.18740 and a low of 1.18099. Overall the movement of the EUR/USD pair remained bullish throughout the day. The EUR/USD pair rose for the 3rd consecutive day on Friday amid the rising risk-on market sentiment and more hawkish comments from the ECB. The market’s attention was on if the ECB would mention the recent appreciation in the local currency.

The ECB President Christine Lagarde said that ECB members had noticed the single currency’s recent strength, but there was no policy change to address given the rise as there was nothing to worry about. The recent rise was attributed to the improving economic data after the restrictions imposed due to coronavirus were lifted and economic activities started.

However, ECB’s more positive comments, even the Eurozone, have entered into a deflationary period, giving further strength to the single currency and the pair EUR/USD posted gains.

On the data front, the German Final CPI in August remained flat with the expectations of -0.1%. At 11:00 GMT, the German WPI in August dropped to -0.4% from the expected 0.5% and weighed on a single currency. At 13:00 GMT, the Italian Quarterly Unemployment Rate dropped to 8.3% in August from the forecasted 8.4% and supported a single currency that helped the EUR/USD pair rise and post gains.

Furthermore, the upward trend in EUR/USD pair on Friday was also supported by the Eurogroup and other European Union finance ministers who met in Berlin on the day and facilitated the growth in Europe.

Whereas, the gains in EUR/USD pair were capped by the improving U.S. dollar strength that was backed by the positive CPI data from the United States on Friday. At 17:30 GMT, the Consumer Price Index in August rose to 0.4% from the expected 0.3% and supported the U.S. dollar. In August, the Core Consumer Price Index also rose to 0.4% against the expected 0.2% and supported the U.S. dollar.

The strong U.S. dollar kept the gains in EUR.USD pair limited at the ending day of the week. Meanwhile, the latest Brexit worries with no progress from both sides also kept the EUR/USD pair’s gains limited on Friday.

On the coronavirus pandemic front, the cases in many European countries rose back to March levels and forced governments to re-impose restrictions to curb the spread. The latest surge in coronavirus cases was attributed to August’s vacations when many tourists visited a handful of destinations. Another reason could also be the fact that schools were reopened in August. These rising cases from many European countries kept the gains in EUR/USD pair limited.

Daily Technical Levels

Support Pivot Resistance
1.1831 1.1840 1.1850
1.1820 1.1860
1.1811 1.1870

EUR/USD– Trading Tip

The EUR/USD continues to trade at 1.1835 level as the ECB decided to leave its interest rate unchanged in its monetary policy meeting. On the higher side, the pair may find resistance at 1.1839 level, and above this, the pair may find the next resistance at 1.1860 level along with support at 1.1828 level. Below 1.1828, the EUR/USD may find the next support at 1.1797 and 1.1755 level.

GBP/USD – Daily Analysis

The GBP/USD pair was closed at 1.27946 after placing a high of 1.28656 and a low of 1.27624. Overall the movement of the GBP/USD pair remained bearish throughout the day. The GBP/USD pair extended its previous day bearish trend and posted losses on Friday amid the strong U.S. dollar and lingering Brexit worries. Prime Minister Boris Johnson reportedly pushed ahead with the bill that would seek to override the withdrawal deal despite threats from the European Union.

According to the Guardian report, Prime Minister Boris Johnson attempted to whip up demand for their internal market bill. He told his lawmakers that the legislation was necessary to stop a foreign power from breaking up the United Kingdom. He also insisted that there was no time for questions. Prime Minister Boris Johnson also faced a rebellion from his party, who have tabled an amendment that would give Parliament the right to veto the bill. After the E.U., this move came in threatened to abandon a UK-EU trade deal if the Prime Minister moved ahead with the legislation. 

The latest internal market bill published on Wednesday could create standard rules that apply across the U.K., including England, North Ireland, Scotland, and Wales. The new bill is expected to clash with key terms of the Brexit agreement that requires Northern Ireland to follow E.U. rules in the post-Brexit period to avoid a hard border with the Republic of Ireland.

The emergency talks held this week also failed to break the deadlock between E.U. & U.K. negotiators, and the differences in essential areas remain. PM Boris Johnson has warned that if no progress in trade talks will not be made until mid-October, the U.K. will leave the E.U. without a deal and follow WTO rules. The GBP/USD pair remained under pressure. Both sides were ready and prepared for a no-deal or hard Brexit as Michel Barnier, the top E.U. negotiator, said that the E.U. had intensified its preparedness work to be ready for all scenarios on January 1, 2021.

Apart from Brexit, the macroeconomic data released on Friday from Great Britain also affected GBP/USD prices. At 110:00 GMT, the Construction Output from the United Kingdom in July rose to 17.6% against the forecasted 10.3% and supported GBP. The GDP from the U.K. in July remained flat with expectations of 6.6%. The Goods Trade Balance from Britain declined more than forecast and weighed on local currency. The balance was dropped to -8.6B from the projected -7.4B and weighed on GBP.

The Index of Services for the quarter also dropped to -8.1% from the expected -7.8% and weighed on the local currency that added pressure on GBP/USD pair. The Industrial Production in July rose to 5.2% in the U.K. against the forecasted 4.2% and supported GBP. The Manufacturing Production in the United Kingdom in July rose to 8.3% from the forecasted 8.4% and supported GBP. Consumer Inflation Expectations in August dropped to 2.8% from the previous 2.9%.

The negative data from the United Kingdom weighed on local currency and added losses in the GBP/USD pair on Friday. From the USD front, the CPI and Core CPI in July rose to 0.4% against the expectations of 0.3% and 0.2%, respectively, and supported the U.S. dollar. The strong U.S. dollar added further losses in GBP/USD pair.

 Daily Technical Levels

Support Pivot Resistance
1.2786 1.2799 1.2823
1.2762 1.2836
1.2748 1.2860

GBP/USD– Trading Tip

The GBP/USD traded sharply lower at 1.2843 level, and now it’s forming a Doji candle, which may trigger buying in the GBP/USD pair. On the higher side, the Sterline may soar to target 1.2928 level, and even above this, the next target for Sterling can be 1.3033 level. The MACD and EMA are still supporting a selling bias; therefore, we should be looking to take selling entry below 1.2928 level today. 

USD/JPY – Daily Analysis

The USD/JPY currency pair stopped its early-day bearish rally and drew some modest bids around above 106.20 level, mainly due to the risk-on market. However, the positive tone around the equity market was supported by the news of receding tension between India and China, and Tokyo’s optimism over easing lockdown restriction also favor the market trading sentiment, which eventually undermined the Japanese yen currency and contributed to the currency pair gains. 

In the wake of low safe-haven demand, the broad-based U.S. dollar weakness becomes the major factor that kept the pressure on any further gains in the currency pair. Meanwhile, the ongoing US-China tussle over several issues, the risk of a no-deal Brexit, and delay in the U.S. stimulus keep challenging the market trading sentiment, which might cap further gains in the currency pair. The USD/JPY is trading at 106.19 and consolidating in the range between 106.08 – 106.20.

Across the ocean, the market trading sentiment rather unaffected by the intensified US-China tussle and Brexit issue. The Trump administration continues to hold TikTok on the sellers’ radar. In the meantime, the cancellation of over 1,000 visas of Chinese residents also irritates China. 

Also capping the gains could be the headlines suggesting that the Tokyo metropolitan government lowered its coronavirus alert by one level to 3 on Friday. This might underpin the local currency and dragged the currency pair down. 

The Japanese yen currency might also take clues from the Producer Price Index (PPI) data for August that recovered to -0.5% from -0.9% YoY. The traders will keep their eyes on the U.S. Consumer Price Index (CPI) for August, which is expected 1.2% against 1.0% YoY. Moreover, the updates surrounding the Sino-US tussle, as well as Brexit related headline, could not lose their importance.

Despite this, the crude oil prices’ gains were capped by the continuing oversupply fears and a slow recovery in global fuel demand. This was witnessed after the builds in crude oil supply reported during the previous week by both the American Petroleum Institute (API) and the U.S. Energy Information Administration (EIA). Meanwhile, the ongoing COVID-19 pandemic continuing to hamper fuel demand recovery. As per the latest report, the World Health Organization (WHO) recorded a record single-day hike in COVID-19 cases by 307,930 in 24 hours during this weekend.

Daily Technical Levels

Support Pivot Resistance
106.0900 106.1500 106.2100
106.0300 106.2800
105.9600 106.3400

USD/JPY – Trading Tips

The USD/JPY is consolidating at 106.050, with a resistance mark of 106.480 level. An upward crossover of 106.480 level may extend further buying trend until the 106.840level, and the violation of this level can extend buying until the next resistance level of 107.150. On the downside, the safe-haven USD/JPY currency may gain support at 105.620 and 105.280. Let’s consider taking a sell trade below 106.024 level as the MACD and RSI also suggest selling bias. Good luck! 

 

Categories
Forex Signals

Gold’s Choppy Session in Play – Brace for Selling Signal! 

During Monday’s early Asian trading session, the yellow metal prices extended its halt its overnight bearish bias and gathered some pace around above the 1,950 level. The U.S. tech stocks continue to fall, led once again by NASDAQ, which tends to help the gold prices to stay bid. However, the weaker bias around the U.S. dollar was mostly driven by the lack of safe-haven demand. Hence, the market trading sentiment was being supported by the news suggesting the AstraZeneca’s restart of the coronavirus (COVID-19) vaccine trials, after stopping it during the last week. In the meantime, the risk-on sentiment was further bolstered by the comments from the European Central Bank (ECB) policymakers suggesting further easy money days. These positive headlines became the key factor that kept the lid on any further yellow metal gains. The market players did not give any major heed to the Sino-US on-going tussle and Brexit looming worries across the pond. 

During Monday’s early Asian trading session, the yellow metal prices extended its halt its overnight bearish bias and gathered some pace around above the 1,950 level. The U.S. tech stocks continue to fall, led once again by NASDAQ, which tends to help the gold prices to stay bid. However, the weaker bias around the U.S. dollar was mostly driven by the lack of safe-haven demand. Hence, the market trading sentiment was being supported by the news suggesting the AstraZeneca’s restart of the coronavirus (COVID-19) vaccine trials, after stopping it during the last week. In the meantime, the risk-on sentiment was further bolstered by the comments from the European Central Bank (ECB) policymakers suggesting further easy money days. These positive headlines became the key factor that kept the lid on any further yellow metal gains. The market players did not give any major heed to the Sino-US on-going tussle and Brexit looming worries across the pond. 

During Monday’s early Asian trading session, the yellow metal prices extended its halt its overnight bearish bias and gathered some pace around above the 1,950 level. The U.S. tech stocks continue to fall, led once again by NASDAQ, which tends to help the gold prices to stay bid. However, the weaker bias around the U.S. dollar was mostly driven by the lack of safe-haven demand. Hence, the market trading sentiment was being supported by the news suggesting the AstraZeneca’s restart of the coronavirus (COVID-19) vaccine trials, after stopping it during the last week. In the meantime, the risk-on sentiment was further bolstered by the comments from the European Central Bank (ECB) policymakers suggesting further easy money days. These positive headlines became the key factor that kept the lid on any further yellow metal gains. The market players did not give any major heed to the Sino-US on-going tussle and Brexit looming worries across the pond. 

The yellow metal price is trading at 1,946.49 and consolidating in the range between 1,937.40 – 1,951.72. The market traders seem cautious to place any strong position ahead of the U.S. Federal Reserve’s policy meeting, which is scheduled to take place on Wednesday. Despite the fears of no-deal Brexit and the Sino-American tussle, not to forget the record single-day increase in COVID-19 cases, the market trading sentiment extended its early-day positive tone and remained supportive by the weekend positive headlines suggesting the AstraZeneca’s restart of the coronavirus (COVID-19) vaccine trials. The S&P 500 Futures add 0.73% to 3,347 as of now. Considering the risk-barometers’ positive tone, the market’s safe-haven demand undermined, eventually weighing on safe-haven metal prices.

The reasons for the risk-on market trading sentiment could be attributed to the positive headlines concerning the coronavirus vaccine. The AstraZeneca showed readiness for resuming its vaccine trials after a brief “routine” pause, while the Pfizer is confident about getting the cure of the pandemic by the year’s end. Furthermore, the U.S. Consumer Price Index (CPI) data flashed another positive signal, after the Producer Price Index (PPI), for the Federal Reserve policymakers to meet this week. This exerted an extra positive impact on the market trading sentiment. Moreover, the market trading sentiment was further bolstered by the latest positive report that Libya’s oil industry will reopen after almost 8-months of a stop to exports.  

The fears of no-deal Brexit and the Sino-American tussle keep challenging the positive market tone across the ocean, which might help the yellow-metal prices. At the US-China front, the tensions between Sino-US remain on the card amid China’s retaliation to the U.S. sanctions on diplomats. Meanwhile, the looming decision on TikTok also keeps the world’s two largest economies at the slippery track.

At the coronavirus front, the on-going rise in COVID-19 cases globally continues to fuel worries concerning the global economic outlook for the foreseeable future. The World Health Organization (WHO) recorded a record single-day hike in COVID-19 cases by 307,930 in 24 hours. Apart from this, Politico’s news that Iran’s preparing to take revenge for their soldier Qassem Soleimani adds pressure to the market trading sentiment. Furthermore, New Zealand’s extension of lockdown restrictions until September 21 with stricter conditions in Auckland also ap further gains in the equity market. This, in turn, might helps the safe-heaven gold prices.

On the flip side, the news that Tropical Storm Sally is expected to become a hurricane on Monday may affect a region stretching from Morgan City, Louisiana, to Ocean Springs, Mississippi. Thus, these gloomy headlines might support the gold prices by undermining the market trading sentiment. Looking ahead, the market traders will keep their eyes on updates surrounding the Brexit, virus, and US-CHina tussle. Whereas, investors are also looking to the U.S. Federal Reserve’s policy meeting scheduled to take place on Wednesday.


Gold is trading at 1947 mark, meeting the next resistance at 1,950. On the 4 hour chart, XAU/USD has set a double top pattern that’s expected to drive gold prices lower unto 1,942 mark. Overall trading in gold is sideways in between 1,950 to 1,942 mark though, the destruction of this area may drive additional moves. On the higher side, resistance lingers at 1,958 and 1,966 while support lingers at 1,937 level. 

Entry Price – Sell 1947.44 

Stop Loss – 1953.44

Take Profit – 1939.94

Risk to Reward – 1:1.25

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.

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

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

Categories
Forex Signals

Gold Failed to Maintain Overnight Bullish Run-Up – Quick Update!

The yellow metal prices failed to extend its bullish overnight rally and instantly dropped below the $1,940 level after hitting 9-day high overnight. However, the overnight gains could be attributed to the report suggesting the second week of U.S. stock selloff and fall in the U.S. dollar. Still, the gains in the precious metals were short-lived as the market trading sentiment turned positive.

The yellow metal prices failed to extend its bullish overnight rally and instantly dropped below the $1,940 level after hitting 9-day high overnight. However, the overnight gains could be attributed to the report suggesting the second week of U.S. stock selloff and fall in the U.S. dollar. Still, the gains in the precious metals were short-lived as the market trading sentiment turned positive.

The yellow metal prices failed to extend its bullish overnight rally and instantly dropped below the $1,940 level after hitting 9-day high overnight. However, the overnight gains could be attributed to the report suggesting the second week of U.S. stock selloff and fall in the U.S. dollar. Still, the gains in the precious metals were short-lived as the market trading sentiment turned positive.

Thus, the market trading sentiment was supported by optimism over a possible vaccine and treatment for the highly infectious coronavirus, as well as Tokyo’s optimism over easing lockdown restriction also favor the market trading sentiment, which ultimately undermined the safe-haven metal.

On the contrary, the coronavirus (COVID-19) woes and the US-China tussle keep challenging the market risk-on mood, which capped further downside momentum for the bullion. Elsewhere, the broad-based U.S. dollar weakness could help the bullion prices to limit its deeper losses. The yellow metal is trading at 1,941.80 and consolidating in the range between 1,937.41 – 1,949.35.

It is worth recalling that the market trading sentiment is rather unaffected by the on-going uncertainties over the much-awaited fiscal package, fueling worries over the U.S. economic recovery. Moreover, the market players are also ignoring President Donald Trump’s hard stand against TikTok and the recent cancellation of over 1,000 visas from Beijing. Besides, the fears of a no-Brexit deal also failed to hurt the market trading sentiment. As in result, the futures tied to the S&P 500 are adding 0.57%.

However, the market trading tone was being supported by optimism over a possible vaccine and treatment for the coronavirus. After the Goldman Sachs, these hopes fueled that Pfizer’s candidate said that Pfizer’s candidate vaccine could be approved as early as October. In the meantime, the news of receding tensions between India and China and the positive news over the receding coronavirus (COVID-19) led activity restrictions in Tokyo also boosted the market trading sentiment. This in, turn, undermined the safe-haven metal.

Moreover, the latest record recovery in the BSI Large Manufacturing Conditions Index for the third quarter (Q3), from -44.2 expected and -52.3 before +0.1, citing that the Japanese economy is set for a strong recovery, also favor the market risk tone and kept the yellow-metal prices under pressure.

As in result, the broad-based U.S. dollar failed to gain any positive traction and took the offer on the day as doubts persist over the global economic recovery from the U.S. stock selloff witnessed that selloff. As well as the risk-on market sentiment also weighed on the American currency. Whereas, the U.S. Dollar Index that tracks the greenback against a basket of other currencies dropped by 0.10% to 93.295 by 9:40 PM ET (2:40 AM GMT).

At the coronavirus front, the global COVID-19 cases continue to increase, which fade hopes of a faster economic recovery. As per the latest statement, there are around 28 million COVID-19 cases globally as of September 11, according to Johns Hopkins University data. These fears might urge traders to invest in the safe-haven asset like gold.

Looking ahead, the market traders will keep their eyes on the U.S. Consumer Price Index (CPI) for August, which is expected 1.2% against 1.0% YoY. Moreover, the updates surrounding the Sino-US tussle and Brexit-related headline could not lose their importance.


The precious metal gold has disrupted the triple bottom support level of 1,942 level and it continues to trade below this level. Gold may find an immediate support at 1,937 level and bearish breakout of this level can extend selling bias until 1,921. Conversely, the bullish crossover of 1,942 level may drive buying trend until 1,950 level and above this, the immediate target is expected to be 1,965 level. Let’s brace for the U.S. Inflation data to encourage further trend in gold. Good luck!

Categories
Forex Signals

USD/CHF Depressed Near 1-1/2-Week Lows Below 0.9100 – Signal Update 

During the Friday’s Asian trading hours, the USD/JPY currency pair failed to stop its previous day declining streak and took further offers below the 0.9100 level. Let me remind you, the currency pair extended this week’s rejection slide from the 0.9200 round-figure marks and saw some follow-through selling for the third-straight session on Friday. However, the reason for the bearish tone around the currency pair could be associated with the broad-based U.S. dollar weakness, triggered after the U.S. markets witnessed yet another stock selloff overnight. Apart from this, the upbeat market sentiment, supported by optimism over a potential vaccine/treatment for the highly infectious coronavirus, also undermined the safe-haven U.S. dollar and contributed to the currency pair gains. 

During the Friday’s Asian trading hours, the USD/JPY currency pair failed to stop its previous day declining streak and took further offers below the 0.9100 level. Let me remind you, the currency pair extended this week’s rejection slide from the 0.9200 round-figure marks and saw some follow-through selling for the third-straight session on Friday. However, the reason for the bearish tone around the currency pair could be associated with the broad-based U.S. dollar weakness, triggered after the U.S. markets witnessed yet another stock selloff overnight. Apart from this, the upbeat market sentiment, supported by optimism over a potential vaccine/treatment for the highly infectious coronavirus, also undermined the safe-haven U.S. dollar and contributed to the currency pair gains. 

During the Friday’s Asian trading hours, the USD/JPY currency pair failed to stop its previous day declining streak and took further offers below the 0.9100 level. Let me remind you, the currency pair extended this week’s rejection slide from the 0.9200 round-figure marks and saw some follow-through selling for the third-straight session on Friday. However, the reason for the bearish tone around the currency pair could be associated with the broad-based U.S. dollar weakness, triggered after the U.S. markets witnessed yet another stock selloff overnight. Apart from this, the upbeat market sentiment, supported by optimism over a potential vaccine/treatment for the highly infectious coronavirus, also undermined the safe-haven U.S. dollar and contributed to the currency pair gains. 

On the contrary, the positive tone around the equity market also undermined the safe-haven Swiss franc. It became the factor that cap further downside momentum for the USD/CHF currency pair. Currently, the USD/CHF currency pair is currently trading at 0.9098 and consolidating in the range between 0.9080 – 0.9110.

It is worth mentioning that the broad-based U.S. dollar remained bearish through the first half of the trading action amid strong buying around the single currency, which remained supported by the report that ECB officials are growing more optimistic over the Eurozone economic outlook. Furthermore, the stronger tone surrounding the global equity markets also undermined the safe-haven U.S. dollar.

The market trading sentiment remained supported by the Indian and Chinese military group’s joint statement to ease the border tension. Besides this, the positive headlines over the receding coronavirus (COVID-19) led activity restrictions in Tokyo, and the record recovery in the BSI Large Manufacturing Conditions Index for the 3rd-quarter (Q3) also exerted a positive impact on the market sentiment. In the meantime, the optimism over the coronavirus (COVID-19) vaccine/treatment led by the positive comment from the Goldman Sachs that Pfizer’s candidate vaccine could be approved as early as October, boosted the risk sentiment. 

On the contrary, the positive around the equity markets also weakened the demand of safe-haven Swiss franc, which becomes the factor that caps further downside momentum for the USD/CHF currency pair.

The losses could be associated with the euro’s bullish momentum, led by the European Central Bank’s latest policy announcement. However, the U.S. dollar losses became the key factor that kept the currency pair under pressure. Across the ocean, the equity market’s optimism was unaffected by the intensified US-China tussle and Brexit concerns. At the US-China front, the Trump administration continues to keep TikTok on the sellers’ radar. In the meantime, the cancellation of over 1,000 visas of Chinese residents also irritates China. 

Moving on, the market traders will keep their eyes on the U.S. Consumer Price Index (CPI) for August, which is expected 1.2% against 1.0% YoY. Moreover, the updates surrounding the Sino-US tussle and Brexit-related headline could not lose their importance.


On the technical front, the USD/CHF is trading with a bearish bias at 0.9091 level, facing immediate resistance at 0.9108 level. On the lower side, the USD/CHF may drop until the support level of 0.9055 level. The MACD and 50 EMA are in support of selling bias today. Check out the trade plan below: 

Entry Price – Sell 0.90897

Stop Loss – 0.91297

Take Profit – 0.90497

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 11 – Top Trade Setups In Forex – U.S. Inflation Figures in Highlights

On the fundamental side, the eyes will remain on the U.S. Inflation and core inflation figures expected to underperform compared to previous figures. In this case, the U.S. dollar may trade with a bearish bias today.

On the fundamental side, the eyes will remain on the U.S. Inflation and core inflation figures expected to underperform compared to previous figures. In this case, the U.S. dollar may trade with a bearish bias today.

On the fundamental side, the eyes will remain on the U.S. Inflation and core inflation figures expected to underperform compared to previous figures. In this case, the U.S. dollar may trade with a bearish bias today.

Economic Events to Watch Today  

 

EUR/USD – Daily Analysis

The EUR/USD pair was closed at 1.18143 after placing a high of 1.19173 and a low of 1.17981. The EUR/USD pair rose on Thursday to its highest for 6 days on the back of optimistic comments from the European Central Bank. The currency pair recovered much of its recent losses following the ECB’s policy decision and the weakened US dollar by US job stats.

On the data front, the French Industrial Production was released at 11:45 GMT, and was declined to 3.8% from the forecasted 5.1% and weighed on Euro. At 13:00 GMT, the Italian Industrial Production advanced to 7.4% from the expected 3.6% and supported a single currency that took the EUR/USD pair higher.

The European Central Bank President Christine Lagarde took a modestly upbeat view on Europe’s recovery from a historic recession on Thursday and played down the concerns about Euro’s strength. She also disappointed the hopes for the more stimulus from the European government.

Lagarde signaled higher underlying inflation and slightly upgraded the bank’s 2020 growth forecast on the back of strong rebound inactivity. In response to the latest 8% rise of the Euro against the US dollar, the President of ECB took a benign view on the currency and simply said that the bank would monitor carefully exchange rate movements.

Analysts were highly awaiting this response but these simple comments disappointed them as these were the weakest possible expression of concern. She said that exchange rates will carefully monitor and the matter was being discussed in the governing council. Investors had expectations of tougher language but the simple comments that were keen to avoid a currency war actually firmed the Euro. The ECB’s rate-setting Governing Council said that they judged that the currency was broadly in line with economic fundamentals and they feared any hint of a currency war with the United States.

In response to deflation concerns, the ECB President Lagarde said that deflation pressures had eased since June and that the weak inflation levels could be attributed to low energy prices. And for the high value of the Euro, she said that there was no need for the markets to overreact to the currency gains.

With the strong Euro amid hawkish comments from ECB, the EUR/USD pair rose above 1.191 level on Thursday.

Meanwhile, the US dollar was also weak onboard that added further strength in the pair’s gains. At 17:30 GMT, the Unemployment Claims from the previous week rose to 884K against the expected 838K and weighed on the US dollar. The rise in unemployment benefit claims raised concerns for economic recovery and weighed on local currency and gave support to the EUR/USD pair.

However, the gains in the EUR/USD pair failed to hold position and dropped in the late trading session and lost most of its gains on the back of rising concerns over the coronavirus cases. Western Europe surpassed the US in new daily COVID-19 infections and was re-emerging as a global hot spot after bringing the pandemic under control in the summer. 

The rising coronavirus cases in European countries exerted negative pressure on the local currency due to economic recovery concerns and the pair reversed its direction.

Daily Technical Levels

Support Pivot Resistance
1.1770 1.1844 1.1888
1.1726 1.1962
1.1653 1.2006

EUR/USD– Trading Tip

The EUR/USD continues to trade at 1.1835 level as the ECB decided to leave it’s interest rate unchanged in its monetary policy meeting. On the higher side, the pair may find resistance at 1.1839 level, and above this, the pair may find the next resistance at 1.1860 level along with support at 1.1828 level. Below 1.1828, the EUR/USD may find the next support at 1.1797 and 1.1755 level.

GBP/USD – Daily Analysis

The GBP/USD pair was closed at 1.28051 after placing a high of 1.30350 and a low of 1.27724. Overall the movement of the GBP/USD pair remained bearish throughout the day. The GBP/USD pair moved on a track for its biggest weekly fall in nearly six months on Thursday as the European Union threatened to pursue legal action against the U.K. if it proceeds with the bill that aims to undermine the Brexit-withdrawal agreement.

The GBP/USD pair fell by 1.56% on Thursday to its lowest since July 27. The E.U. demanded the British government drop its internal market bill by the end of the month or risk jeopardizing negotiations and legal action.

The U.K. government published the internal bill on Wednesday that seeks to create common rules that apply across the U.K., including England, Northern Ireland, Scotland, and Wales. 

The bill would likely clash with the terms agreed on Withdrawal agreement requiring that Northern Ireland follow E.U. rules in the post-Brexit period to avoid a hard border with the Republican of Ireland. However, The Cabinet minister Michael Gove insisted the U.K. will not withdraw the bill. Prime Minister Boris Johnson has already said that the U.K. will leave the E.U. without a deal if Europe and the U.K. failed to reach an agreement by October 15. If no-deal is secured by then, the U.K. will follow the World Trade Organization’s trade rules. 

The hopes of any progress in upcoming Brexit-deal talks faded after the E.U.’s latest threat, and the hopes for a “hard Brexit” have increased. This weighed heavily on GBP/USD pair on Thursday, and the pair fell to its multi month’s low level.

On the data front, at 04:01 GMT, the RICS House Price Balance rose to 44% against the forecasted 23% and supported GBP/USD pair. At 06:30 GMT, the C.B. Leading Index dropped to -0.3% in July from the previous 0.0%. From the U.S. side, the Core PPI in August rose to 0.4% from the forecasted 0.2% and supported the U.S. dollar that added further pressure on GBP/USD pair. The Producer Price Index in August rose to 0.3% against the projected 0.2% and supported the U.S. dollar that added in the losses of the GBP/USD pair on Thursday. At 19:00 GMT, the Final Wholesale Inventories in July came in as -0.3% against the projected -0.1% and supported the U.S. dollar that took the GBP/USD prices further towards the downside.

 Daily Technical Levels

Support Pivot Resistance
1.2706 1.2871 1.2969
1.2608 1.3134
1.2443 1.3232

GBP/USD– Trading Tip

The GBP/USD traded sharply lower at 1.2843 level, and now it’s forming a Doji candle, which may trigger buying in the GBP/USD pair. On the higher side, the Sterline may soar to target 1.2928 level, and even above this, the next target for Sterling can be 1.3033 level. The MACD and EMA are still supporting a selling bias; therefore, we should be looking to take selling entry below 1.2928 level today. 

USD/JPY – Daily Analysis

The USD/JPY currency pair stopped its early-day bearish rally and drew some modest bids around above 106.20 level, mainly due to the risk-on market. However, the positive tone around the equity market was supported by the news of receding tension between India and China, and Tokyo’s optimism over easing lockdown restriction also favor the market trading sentiment, which eventually undermined the Japanese yen currency and contributed to the currency pair gains. 

The broad-based U.S. dollar weakness, in the wake of low safe-haven demand, becomes the major factor that kept the presure on any further gains in the currency pair. Meanwhile, the on-going US-China tussle over several issues, the risk of a no-deal Brexit, and delay in the U.S. stimulus keep challenging the market trading sentiment, which might cap further gains in the currency pair. The USD/JPY is trading at 106.19 and consolidating in the range between 106.08 – 106.20.

The market trading sentiment was bolstered by optimism over a possible vaccine and treatment for the highly infectious coronavirus. After the Goldman Sachs, these hopes fueled that Pfizer’s candidate said that Pfizer’s candidate vaccine could be approved as early as October. In the meantime, the news of receding tensions between India and China and the optimism over the easing coronavirus (COVID-19)-led lockdown restrictions also boosted the market trading sentiment. This in, turn, undermined the safe-ave Japanese yen and extended support to the currency pair. 

The reason for the upbeat sentiment could also be associated with record recovery in the BSI Large Manufacturing Conditions Index for the third quarter (Q3). The record recovery in the BSI Large Manufacturing Conditions Index for the third quarter (Q3), from -44.2 expected and -52.3 before +0.1, citing that the Japanese economy is up for a strong recovery. 

Across the ocean, the market trading sentiment rather unaffected by the intensified US-China tussle and Brexit issue. The Trump administration continues to keep TikTok on the sellers’ radar. In the meantime, the cancellation of over 1,000 visas of Chinese residents also irritates China. 

Also capping the gains could be the headlines suggesting that the Tokyo metropolitan government lowered its coronavirus alert by one level to 3 on Friday. This might underpin the local currency and dragged the currency pair down. The Japanese yen currency might also take clues from the Producer Price Index (PPI) data for August that recovered to -0.5% from -0.9% YoY.

The traders will keep their focus on the U.S. Consumer Price Index (CPI) for August, which is expected 1.2% against 1.0% YoY. Moreover, the updates surrounding the Sino-US tussle, as well as Brexit related headline, could not lose their importance.


Daily Technical Levels

Support Pivot Resistance
105.9700 106.1400 106.3000
105.8200 106.4600
105.6500 106.6200

USD/JPY – Trading Tips

The USD/JPY is consolidating at 106.050, with a resistance mark of 106.480 level. An upward crossover of 106.480 level may extend further buying trend until the 106.840level, and the violation of this level can extend buying until the next resistance level of 107.150. On the downside, the safe-haven USD/JPY currency may gain support at 105.620 and 105.280. Let’s consider taking a sell trade below 106.024 level as the MACD and RSI also suggest selling bias. Good luck! 

 

Categories
Forex Signals

AUD/USD Violates Double Top – Brace for Buying Trade 

The AUD/USD currency pair failed to keep its Asian session bullish momentum and dropped below the 0.7270 level despite the welcome prints of second-tier Aussie data and weaker U.S. dollar. As we know, these factors initially gave support to the currency pair, but unfortunately, the currency pair failed to keep its bullish momentum into the European session. However, the reason for the bearish sentiment around the currency pair could be associated with the on-going tussle between the US-China, which leads to the decline in U.S. stock’s future. In turn, this undermined the perceived risk currency Australian dollar and contributed to the currency pair losses.

The AUD/USD currency pair failed to keep its Asian session bullish momentum and dropped below the 0.7270 level despite the welcome prints of second-tier Aussie data and weaker U.S. dollar. As we know, these factors initially gave support to the currency pair, but unfortunately, the currency pair failed to keep its bullish momentum into the European session. However, the reason for the bearish sentiment around the currency pair could be associated with the on-going tussle between the US-China, which leads to the decline in U.S. stock’s future. In turn, this undermined the perceived risk currency Australian dollar and contributed to the currency pair losses.

The AUD/USD currency pair failed to keep its Asian session bullish momentum and dropped below the 0.7270 level despite the welcome prints of second-tier Aussie data and weaker U.S. dollar. As we know, these factors initially gave support to the currency pair, but unfortunately, the currency pair failed to keep its bullish momentum into the European session. However, the reason for the bearish sentiment around the currency pair could be associated with the on-going tussle between the US-China, which leads to the decline in U.S. stock’s future. In turn, this undermined the perceived risk currency Australian dollar and contributed to the currency pair losses.

The U.S. stock futures failed to keep its Asian session positive tone and trimmed its previous gains, possibly due to the renewed conflict between the U.S. and China. On the contrary, the investors continued to cheer the hopes over a possible vaccine and treatment for the highly infectious coronavirus. These hopes came after the comments from Goldman Sachs that the Pfizer’s candidate vaccine could be approved as early as October. Also supporting the market tone was the news that Tokyo will ease its coronavirus (COVID-19)-led lockdown restrictions by one notch. This might help the currency pair to limit its deeper losses.

As in result, the broad-based U.S. dollar failed to gain any positive traction and edged lower on the day. Furthermore, the U.S. dollar losses could also be associated with the cautious sentiment ahead of the European Central Bank (ECB) meeting taking place later in the day. However, the U.S. dollar losses become the key factors that capped further downside momentum in the currency pair.

Moving ahead, the market traders will keep their eyes on the European Central Bank (ECB) decision and headlines from London for intermediate moves ahead of 16:30 GMT speech by BOC’s Macklem. Furthermore, the U.S. Initial Jobless Claims’ weekly release, which is expected 846K versus 881K prior, will also be key to watch. In the meantime, the USD moves and coronavirus headlines will also closely followed as they could play a key role in the currency pair.

The AUD/USD pair is trading slightly bullish in the wake of retracement at 0.7225 level. The AUD/USD pair may find immediate support around 0.7190 level, and violation of this level can open further room for selling until the 0.7139 level. On the higher side, the AUD/USD may find resistance at 0.7249 level, and above this, the next resistance can be found around 0.7301 level.



The AUD/USD pair is trading slightly bullish in the wake of retracement at 0.7225 level. The AUD/USD pair may find immediate support around 0.7190 level, and violation of this level can open further room for selling until the 0.7139 level. On the higher side, the AUD/USD may find resistance at 0.7249 level, and above this the next resistance can be found around 0.7301 level.

Entry Price – Buy 0.72957

Stop Loss – 0.72557

Take Profit – 0.73357

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’s Upward Channel Supports Buying – Checkout Buying Signal

The yellow metal prices extended its bullish overnight rally and still taking bid around above the 1,950 level. Let me remind you that the fall in U.S. tech stocks initially boosted the safe-haven metal’s rise during the previous session, pulling it up from a low of $1,927.20 to an overnight high of $1,959.35. 

The yellow metal prices extended its bullish overnight rally and still taking bid around above the 1,950 level. Let me remind you that the fall in U.S. tech stocks initially boosted the safe-haven metal’s rise during the previous session, pulling it up from a low of $1,927.20 to an overnight high of $1,959.35. 

The yellow metal prices extended its bullish overnight rally and still taking bid around above the 1,950 level. Let me remind you that the fall in U.S. tech stocks initially boosted the safe-haven metal’s rise during the previous session, pulling it up from a low of $1,927.20 to an overnight high of $1,959.35. 

The reason for the on-going bullish tone around the gold prices could also be associated with the broadly weaker U.S. dollar. However, the weaker tone around the U.S. dollar was mainly driven by the trader’s cautious sentiment before of the European Central Bank (ECB) meeting. Therefore, the market trading sentiment was being supported by the news that TikTok parent’s request to not push for the entire sale to the U.S. 

Furthermore, the U.S. State Department’s keeps doors open for Chinese students who don’t support their leading national party, after over 1,000 visa rejection. This also exerted a positive impact on the market trading sentiment and became the key events that kept the pressure on any additional gains in the yellow metal. The yellow metal prices are currently trading at 1,947.58 and consolidating in the range between 1,943.76 – 1,950.78. As we know, the market sentiment remains mostly positive, while the lack of catalysts and the pre-ECB attentiveness could also be considered as reasons for the recent gold pullback.

Despite the on-going Sino-American tussle and worries concerning the U.S. stimulus package, the market trading sentiment extended its previous session positive tone. It remained supportive of the combination of factors. As in result, the S&P 500 Futures print 0.30% gains to 3,404 by the press time. Hence, the reason for the risk-on market trading sentiment could be attributed to the positive headlines concerning TikTok. It should be noted that the TikTok’s parent Bytedance is in talks with the U.S. to avoid the full sale of the company. This eventually trimmed the safe-haven demand in the market. Also supporting the market tone could be the news that the U.S. showing willingness to keep doors open for Chinese students, those who don’t support their leading national party, after over 1,000 visa rejection. Apart from this, the recent news that Tokyo is considering easing virus-led lockdown also favors market trading sentiment.  

At the USD front, the broad-based U.S. dollar failed to maintain its previous day gaining streak and dopped on the day mainly due to the risk-on market sentiment. Moreover, the U.S. dollar losses could also be associated with cautious sentiment ahead of the European Central Bank (ECB) meeting taking place later in the day. However, the U.S. dollar losses kept the gold prices higher as the price of gold is negatively related to the price of the U.S. dollar. While , the U.S. Dollar Index that measures the greenback against a bucket of other currencies dropped by 0.10% to 93.165 by 11:54 PM ET (4:54 AM GMT).

Across the Pond, the tensions between China and the U.S., and India keep gaining market attention and challenged the market risk-on tone. The tensions between Sino-US were further fueled after President US Trump warned to “stand tough against the Dragon Nation” if he is re-elected. Elsewhere, the tussle between China and India still on in the background, while uncertainty over the Brexit deal keeps challenging the market risk-on sentiment, which might help further the safe-haven yellow metal.

At the coronavirus front, the on-going rise in COVID-19 cases globally continues to fuel worries concerning the global economic forecast for the foreseeable future. As per the latest report, there are approximately 28 million COVID-19 cases globally as of September 10. However, these fears keep hurt the positive trading sentiment. 

Looking ahead, the market traders will keep their eyes on updates surrounding the Sino-US tussle, as well as Brexit related headline. Simultaneously, the market traders seem cautious ahead of the ECB meeting as they await a strong positive message from the ECB, which is less likely, to keep the recent rise.


The yellow metal gold has disrupted the resistance mark of 1,935 level, and presently it’s meeting resistance at the 1,949 mark. A bullish violation of the 1,949 mark may trigger buying until the 1,958 level on the upper side. Whereas, the support extends to operate at 1,935 and 1,922. The U.S. Unemployment Claims and PPI data will be the main market mover for gold.

 

Entry Price – Buy 1954.54

Stop Loss – 1948.54

Take Profit – 1962.04

Risk to Reward – 1:1.25

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.

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 10 – Top Trade Setups In Forex – ECB Monetary Policy In Focus

It will be a big day for the European pairs as the European Central Bank is due to report it’s minimum bid rate along with the Press Conference to determine the monetary policy. Besides, the U.S. Unemployment Claims and PPI data will be the main market mover of the market.

It will be a big day for the European pairs as the European Central Bank is due to report it’s minimum bid rate along with the Press Conference to determine the monetary policy. Besides, the U.S. Unemployment Claims and PPI data will be the main market mover of the market.

It will be a big day for the European pairs as the European Central Bank is due to report it’s minimum bid rate along with the Press Conference to determine the monetary policy. Besides, the U.S. Unemployment Claims and PPI data will be the main market mover of the market.

Economic Events to Watch Today  

 

 

EUR/USD – Daily Analysis

The EUR/USD pair was closed at 1.18027 after placing a high of 1.18339 and a low of 1.17525. Overall the movement of the EUR/USD pair remained bullish throughout the day. The market sentiment was sour on Wednesday amid the pause in the AstraZeneca & Oxford University vaccine’s final clinical trials. The trials were paused due to an unexplained illness in one participant. This weighed on risk sentiment and kept the EUR/USD pair under pressure on Wednesday.

The much-awaited decision of the European Central Bank monetary policy will announce on Thursday, and the market participants have started to bets on it. Meanwhile, the U.S. dollar surging due to increased pressure on its rivals dropped on Wednesday and caused a surge in EUR/USD pair.

The ECB is concerned about the appreciation in Euro and increased deflationary pressure and the uncertainty around Europe’s coronavirus situation. The bank is set to announce no changes in its upcoming monetary policy for the second month in September. The bank expanded it’s Pandemic Emergency Purchase Program with EUR 600 billion in June.

The interest rates on main refinancing operations are at 0.00%, on the marginal lending facility are at 0.25%, and the deposit facility is at -0.50%. All are expected to remain unchanged in this monetary policy meeting. The PEPP will also remain unchanged at EUR 1350 Billion. The speech from the ECB President Cristine Lagarde will remain under focus by traders to find fresh clues about the EUR/USD pair.

For August, the Eurozone inflation came in negative when the annualized consumer price index fell by 0.2% versus the July’s rise by 0.4% and raised concerns about the local economy. The impact of coronavirus has been rising as the coronavirus is surging in the Eurozone. To combat coronavirus’s economic impact, ECB expanded its balance sheet from 4500 B euros to 6424B euros. The long-term Eurozone inflation is also gloomy and shows a downward trend.

Traders await that the euro appreciation will remain under the focus of Lagarde’s speech, and measures that she will announce to cope with it will provide massive movements in EUR/USD prices on Thursday. The Eurozone economy outlook from the European Central Bank will also give clues on the EUR/USD pair.

On the U.S. side, the Consumer Credit in July dropped to 12.2B from the forecasted 12.9B and weighed on the U.S. dollar that helped EUR/USD move upward. EUR/USD pair posted gains after falling for three consecutive days on Wednesday.

Daily Technical Levels

Support Pivot Resistance
1.1795 1.1820 1.1857
1.1758 1.1882
1.1733 1.1919

EUR/USD– Trading Tip

The EUR/USD has recovered a bit to trade at 1.1820 level ahead of the ECB Monetary policy decision due to coming out during the late European session. ECB isn’t expected to change its rate; however, the press conference will be the EUR/USD pair’s main mover. On the higher side, the pair may find resistance at 1.1860 level along with support at 1.1797 level. Below 1.1797, the pair may drop towards 1.1755 level. Conversely, a bullish breakout of 1.1825 level can lead EUR/USD prices towards 1.1866.

GBP/USD – Daily Analysis

The GBP/USD pair was closed at 1.29986 after placing a high of 1.30231 and a low of 1.28847. Overall the movement of the GBP/USD pair remained bullish throughout the day. After falling for two consecutive days and posting massive losses, the GBP/USD pair dropped on Wednesday in an earlier trading session near the lowest level since July 28. However, in the late trading session, the pair successfully recovered its daily gains and reversed its direction and started posting gains.

The pair followed its previous day bearish trend in the early trading session on Wednesday that the new Internal Market Bill news from the U.K. Parliament pushed. The new bill was issued to protect the United Kingdom’s jobs after the transition period ends next December. 

The bill raised fears that it might impact the relationship between the U.K. and the E.U. It could re-write the parts of the Brexit withdrawal agreement related to the Northern Ireland protocol. In response to the new bill news, the E.U. Commission President Ursula von der Leyen said that breaching the singed withdrawal agreement would break the international law and undermine trust. This weighed on the local currency GBP and dragged the pair towards the lowest level since July 28.

However, the pair’s downward movement was further supported by the latest news that weighed on risk sentiment that AstraZeneca & Oxford University vaccine’s final clinical trials were paused after an unexplained illness was found in a participant.

Whereas, on the U.S. front, the U.S. dollar came under pressure on Wednesday after rising for the past few days on the back of weak rival currencies performance. The weakness in the U.S. dollar was ahead of the ECB meeting on Thursday. The U.S. Dollar Index fell by 0.1% on Wednesday to 93.16 and weighed on the U.S. dollar that supported the GBP/USD pair’s movement.

On the data front, the Consumer Credit for July dropped to 12.2B against the forecasted 12.9B and weighed on the U.S. dollar that added further support to the GBP/USD pair. On Wednesday, PM Boris Johnson said that they must act to avoid another lockdown as virus cases were rising in England. He was referring to the new rule that restricts the gathering of more than six people. The new rule can issue fines or make arrests in case of breach of law.

 Daily Technical Levels

Support Pivot Resistance
1.3079 1.3125 1.3196
1.3008 1.3242
1.2962 1.3313

GBP/USD– Trading Tip

The GBP/USD pair has formed a Doji pattern over 1.2901 area, and the support level is extended by an upward trendline on four hourly timeframes. On the higher side, the pair may face immediate resistance at 1.3021, and above this, the Cable may head towards 61.8% Fibo level of 1.3154 level. Jobless claims data may play the role today.

USD/JPY – Daily Analysis

The USD/JPY pair was closed at 106.174 after placing a high of 106.272 and a low of 105.785. Overall the movement of the USD/JPY pair remained bullish throughout the day. After falling on Tuesday, the USD/JPY pair gained traction on Wednesday and started rising. The pair fell to 6 days lowest level on Wednesday in the early trading session but reversed its direction and moved upward on the back of the upbeat market sentiment.

The market mood improved on Wednesday and made it difficult for the safe-haven Japanese Yen to find demand and pushed the pair USD/JPY higher. After falling for three consecutive days, the equity market was raised on Wednesday with the S&P 500 index up by 1.85% and confirmed the risk-on market sentiment. The U.S. Treasury bond yields for a 10-year note also rose to 2.2% and supported the upward market sentiment.

Moreover, the U.S. Dollar Index also rose on Wednesday to 93.66 level the highest since August 12 and supported the upward U.S. dollar movement. 

However, the USD/JPY par gains were capped by multiple factors, including the US-China tussles and negative vaccine news.

On Wednesday, the long-awaited vaccine developed by AstraZeneca and Oxford University stopped its final stage clinical trials due to an unexplained illness found in one of the participants. This news raised concerns over vaccines’ development and, ultimately, on the economic recovery and capped further gains in the USD/JPY pair.

Meanwhile, the rising tensions between the U.S. & China after the latest comments from President Donald Trump and his administration regarding the tech fight and bringing back the production to America raised fears for the phase-one deal completion. These tensions and the lingering fight on the South China Sea have weighed on market sentiment that undermined the risk sentiment and supported the Japanese Yen, ultimately capping further gains in the USD/JPY pair.

Moreover, the new Brexit worries after the U.K. introduced new potential internal law that could change the initial withdrawal agreement terms related to the Northern Ireland border, also weighed on risk sentiment. The uncertainty regarding a Brexit deal between the E.U. & U.K. also weighed on market sentiment and limited the USD/JPY pair’s gains.

On the data front, the M2 Money Stock for the year in Japan rose to 8.6% in August from 8.2% and supported the Japanese Yen that capped further gains in the USD/JPY pair. At 10:59 GMT, the Prelim Machine Tool Orders decreased by -23.3% in August compared to July’s -31.1%. On the U.S. front, the JOLTS Job Openings in July rose to 6.62M against the forecasted 6.05M and supported the U.S. dollar that added further support to the USD/JPY pair on Wednesday.


Daily Technical Levels

Support Pivot Resistance
105.9500 106.2700 106.6800
105.5500 106.9900
105.2300 107.4000

USD/JPY – Trading Tips

On Thursday, the USD/JPY is consolidating at 106.050, with a resistance mark of 106.480 level. An upward crossover of 106.480 level may extend further buying trend until the 106.840level, and the violation of this level can extend buying until the next resistance level of 107.150. On the downside, the safe-haven USD/JPY currency may gain support at 105.620 and 105.280. Let’s consider taking a sell trade below 106.024 level as the MACD and RSI also suggest selling bias. Good luck! 

 

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Forex Signals

USD/CAD Failed To Maintain Its Previous Day Bullish – Let’s Capture Sell! 

During Wednesday’s European trading session, the USD/CAD currency pair failed to extend its previous session bullish bias. They dropped from the 1.3257, the August 17 high to 1.3215 level mainly due to the cautious mood of the traders ahead of the Bank of Canada’s (BOC) monetary policy meeting, which is due to happen at 14:00 GMT. 

During Wednesday’s European trading session, the USD/CAD currency pair failed to extend its previous session bullish bias. They dropped from the 1.3257, the August 17 high to 1.3215 level mainly due to the cautious mood of the traders ahead of the Bank of Canada’s (BOC) monetary policy meeting, which is due to happen at 14:00 GMT. 

During Wednesday’s European trading session, the USD/CAD currency pair failed to extend its previous session bullish bias. They dropped from the 1.3257, the August 17 high to 1.3215 level mainly due to the cautious mood of the traders ahead of the Bank of Canada’s (BOC) monetary policy meeting, which is due to happen at 14:00 GMT. 

On the contrary, the broad-based U.S. dollar bullish bias, strengthened by the market risk-off sentiment, turned out to be a top factor that caps further downside momentum for the currency pair. Across the ocean, the reason for the currency pair declining rally could be associated with the fresh upticks in the crude oil prices, which tend to underpin the commodity-linked currency the loonie, and becomes the key factors that kept the currency pair under pressure. At the moment, the USD/CAD currency pair is currently trading at 1.3224 and consolidating in the range between 1.3215 – 1.3260.

The long-lasting disappointment bolstered the risk-off market sentiment over the lack of progress in the much-awaited fiscal package. The U.S. Democratic Party leaders still have differences in package figures. Apart from this, the intensifying US-Chia tussle also kept the market trading sentiment under pressure. President US Trump recently gave the warning while hinting further punitive measures over the Chinese diplomats. He further added that we would take a tough stand against the Dragon Nation” if Trump is re-elected. However, the cautious mood around the equity markets underpinned the safe-haven U.S. dollar. 

At the crude oil front, the crude oil prices have started to gains some positive traction during the European session mainly backed by the record supply cuts by the Organization of the Petroleum Exporting Countries and allies, known as OPEC+. 

Looking forward, the market traders will keep their eyes on the Bank of Canada’s (BOC) monetary policy meeting, which is due to be released at 14:00 GMT. The risk catalyst like geopolitics and the virus woes, not to forget the Brexit, will also be key to watch for the fresh direction.


The USD/CAD has enrolled the overbought region at 1.3225 mark and has formed candles like Doji and Spinning top beneath the solid resistance mark of 1.3262 level. It appears like traders are getting ready to trade the Bank of Canada monetary policy outcome. Here’s a trade plan for today. 

Entry Price – Sell 1.32219

Stop Loss – 1.32619

Take Profit – 1.31819

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’s Choppy Session Continues – Trader’s Brace for a Breakout 

The yellow metal prices failed to stop its previous day losing streak and dropped to 1,923.20 level mainly due to the broad-based U.S. dollar strength, backed by the upbeat prints of the NFIB Small Business Index and anti-risk moves. However, the broad-based U.S. dollar strength could be considered as one of the main reasons behind the yellow-metal latest weakness. 

The yellow metal prices failed to stop its previous day losing streak and dropped to 1,923.20 level mainly due to the broad-based U.S. dollar strength, backed by the upbeat prints of the NFIB Small Business Index and anti-risk moves. However, the broad-based U.S. dollar strength could be considered as one of the main reasons behind the yellow-metal latest weakness. 

The yellow metal prices failed to stop its previous day losing streak and dropped to 1,923.20 level mainly due to the broad-based U.S. dollar strength, backed by the upbeat prints of the NFIB Small Business Index and anti-risk moves. However, the broad-based U.S. dollar strength could be considered as one of the main reasons behind the yellow-metal latest weakness. 

Whereas, the bullish sentiment around the U.S. dollar was further improved after the U.S. markets saw a second rout in tech stocks in less than a week, which gave a boost to the U.S. dollar and dragged the yellow-metal down. On the other hand, the market earlier optimism over the coronavirus (COVID-19) vaccine/treatment was overshadowed by the latest reports that suggested the pause in AstraZeneca’s COVID-19 vaccine trials. This, in turn, undermined the market trading sentiment, which might help the gold prices to limit its deeper losses. 

It’s also worth reporting that the gold prices faced a steep drop and then recovery during the previous session. However, the rally was backed by major selloffs in stocks. The yellow-metal prices fall, bounce, and flatten could be attributed to the second U.S. big tech stocks record-breaking fall, which caused U.S. markets to fall. The overnight surge in gold prices along with lift in the dollar at the same time seems unusual, as one generally falls as the other gains. But the gains in the gold prices were short-lived as the U.S. dollar becomes the market favourite.

However, the equity market has been flashing red since the Asian session started. The reason could be associated with the major negative catalysts. Be it the further delay in the much-awaited coronavirus (COVID-19) relief package or the resurgence of COVID-19 new cases in the U.S., not to forget the long-lasting US-China and China-India tussle, all these factors are weighing on the market trading sentiment, which could be considered as the main factors that capped further downside momentum for the safe-haven assets. Apart from this, the fears of the U.K. and the European Union’s (E.U.) Brexit talks and a pause in the AstraZeneca’s COVID-19 vaccine trials also add pessimism around the market trading sentiment.

On the contrary, the stabilizing virus figures in Australia, China, and Japan helps the market trading sentiment to limit its deeper losses and might cap the further upside for the gold.

 

At the US-China front, the U.S. President Donald Trump pledged to “stand tough on China”, if he is re-elected. However, these statements could be witnessed by the Trump administration’s recent punitive measures over the Chinese diplomats. Whereas, the Dragon Nation did not feel reluctant to take revenge from the U.S. while announcing new U.S. visa restrictions.

At the USD front, the broad-based U.S. dollar extended its previous day bullish trend on the day amid downbeat sentiment in the market. Also supporting the U.S. dollar prices could be the major selloffs in U.S. stocks. The U.S. markets saw a second rout in tech stocks in less than a week, which underpinned the U.S. dollar. However, the gains in the U.S. dollar kept the gold prices under pressure as the price of gold is negatively related to the price of the U.S. dollar. Whereas, the U.S. Dollar Index, which tracks the greenback against a basket of other currencies rose by 0.07% to 93.502 by 10:01 PM ET (3:01 AM GMT). 

Gold prices are supported amid a selloff in the U.S. stocks, especially Amazon, Apple, Microsoft and Facebook. Gold prices are now trading sideways around 1,927 level, with immediate support at 1,922 and resistance at 1,935 level. On the higher side, the XAU/USD may find next resistance at 1,942 level upon the breakout of 1,935 level. Conversely, a bearish breakout of 1,922 level may lead gold prices towards 1,917 and 1,910 level. Good luck! 

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Forex Market Analysis

Daily F.X. Analysis, September 09 – Top Trade Setups In Forex – U.S. China Conflict in Play! 

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

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

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

Economic Events to Watch Today  

 

 

EUR/USD – Daily Analysis

The UR/USD pair was closed at 1.17734 after placing a high of 1.18273 and a low of 1.17654. The EUR/USD pair dropped on Tuesday and extended its bearish move for the 3rd consecutive day on the back of a strong U.S. dollar and ahead of ECB monetary policy meeting.

Recently ll eyes have turned towards the upcoming meeting of European Central Bank on Thursday to observe if they will do anything to push inflation pressure higher. Chief Economist Philip Lane has raised concerns over the high prices of local currency the last week. Though the currency has already come under pressure due to currency devaluation expectations or inflation, investors are still awaiting the words from ECB. The currency Euro is facing heavy pressure ahead of ECB’s monetary policy meeting and is weighing on EUR/USD for the past three days. The pair continued following the same pressure and dropped on Tuesday as well.

On the data front, 10:30 GMT, the French Final Private Payrolls for the quarter dropped to -0.8% from the projected -0.6%and weighed on Euro. At 11:00 GMT, the German Trade Balance showed a surplus of 18.0B against the expected 14.9B and supported Euro. At 11:45 GMT, the French Trade Balance was released that remained flat with the expectations of -7.0B. At 13:00 GMT, the Italian Retail Sales for July dropped to -2.2% from the projected 1.1% and weighed on Euro. At 14:00 GMT, the Final Employment Change for the quarter dropped to -2.9% from the forecasted -2.8% and weighed on Euro. The Revised GDP for the quarter from Eurozone dropped by -11.8% against the expected -12.1% and supported Euro. As most data came in against the single currency Euro, the EUR/USD pair came under fresh pressure and dropped on Tuesday to 8th day lowest level.

From the U.S. side, the NFIB Small Business Index was released at 15:00 GMT that advanced to 100.2 against the expected 99.0 and supported the U.S. dollar. The strong U.S. dollar added further pressure on EUR/USD pair and dragged the pair down.

Meanwhile, as the global coronavirus cases have surged to 27.3M, including 893,000 deaths, Spain has become the first nation in Western Europe to exceed half-million COVID-19 total infections. This also weighed on the local currency Euro and added in the currency pair losses.

The U.S. dollar was already strong because of its safe-haven status amid the rising US-China tensions after the tech fight escalated. 

The U.S. has announced tariffs of any American company forcing overseas production. The U.S. has also warned its companies not to work with any Chinese company or face sanctions. Whereas, the greenback was also strong because of the weakness of its rival currency like the Euro and GBP. 

Daily Technical Levels

Support Pivot Resistance
1.1753 1.1791 1.1817
1.1727 1.1855
1.1690 1.1881

EUR/USD– Trading Tip

The EUR/USD is trading with a bearish bias around 1.1780 level, having immediate support at 1.1756 level that’s extended by a double bottom pattern. On the 4 hour timeframe, the violation of the 1.1756 level may extend the selling trend until the 1.1715 level. The EUR/USD may find resistance at 1.1862 and 1.1958 level. Bullish bias seems dominant today.

GBP/USD – Daily Analysis

The GBP/USD closed at 1.29806 after placing a high of 1.31697 and a low of 1.29798. Overall the movement of the GBP/USD pair remained bearish throughout the day. THE GBP/USD pair fell below 1.30 level on Tuesday at the lowest level since 30-July 2020. The pair extended its previous day bearish movement due to a fresh threat by Prime Minister Boris Johnson to leave the E.U. without any deal if progress in talks will not be made till October 15.

Johnson has said that there would need to be an agreement in place by the mid-October deadline when European Council convenes or warned that the U.K. would leave the negotiating table and follow the WTO rules.

However, the talks have become tough after the U.K. has already angered the E.U. members by unveiling plans to introduce a new law that would undermine the withdrawal agreement. Both parties signed the agreement into law and included all terms and conditions of the U.K.’s departure from the bloc.

The new bill aims to create common rules that would apply across the whole of the U.K. are expected to clash with the terms of the withdrawal agreement that requires the Northern Ireland to keep following E.U. rules in the post-Brexit period to avoid a hard border with the Republic of Ireland.

The talks have started on Tuesday between the E.U. chief negotiator Michel Barnier and U.K. chief negotiator David Frost. The U.K.’s controversial move about new law has made the E.U. angry, and the E.U. has said that it will be ready for a no-deal Brexit when the transition period ends on December 31. The British Pound suffered massively as the concerns raised ahead of Brexit talks and dropped below 1.30 level on Tuesday.

On the data front, at 04:01 GMT, the BRC Retail Sales Monitor for the year in August rose to 4.7% from the expected 3.5% and supported British Pound, but the traders ignored it as the focus was shifted towards Brexit talks. The U.S. dollar was also strong in the market due to positive data and safe-haven appeal and also weighed on GBP/USD currency pair. At 15:00 GMT, the NFIB Small Business Index advanced to 100.2 from the expected 99.0 and supported the U.S. dollar that added pressure on GBP/USD pair.

 Daily Technical Levels

Support Pivot Resistance
1.2918 1.3049 1.3118
1.2849 1.3249
1.2719 1.3318

GBP/USD– Trading Tip

The GBP/USD is trading with a selling bias at 1.2948 level, set to test the support level of 1.2923 level. The Cable is trading within a downward channel, extending support at 1.2923 level and resistance at 1.3013. On the downside, the GBP/USD pair may find support at 1.2857 level upon the violation of the 1.2923 level. The recent bearish engulfing candle is also in support of the selling trend. The MACD is also supporting selling bias; therefore, we will be looking for selling trades below the 1.3000 level.  

USD/JPY – Daily Analysis

Today in the European trading session, the USD/JPY currency pair failed to break its thin trading range and still hovering below the 106.50 marks. However, the choppy trading around the currency pair could be associated with the risk-off market sentiment, driven by the US-China tussle and Brexit concern, which eventually underpinned the safe-haven Japanese yen and kept the currency pair under pressure. On the other hand, the broad-based U.S. dollar strength, supportive by the safe-haven demand, becomes the key factor that keeps trying to break the pair’s thin trading range. At this moment, the USD/JPY currency pair is currently trading at 106.30 and consolidating in the range between 106.20 – 106.39.

Despite the optimism over a potential treatment/vaccine for the highly infectious virus, the market risk sentiment remains depressive. Be it the worrisome headlines concerning the Brexit or the tension between the US-China, not to forget the coronavirus issues in the U.S., the market trading sentiment has been flashing red since the European session started, which ultimately keeps the safe-haven assets supportive on the day. 

At the US-China front, the rising tensions between the United States and China continued to pick up the pace as President Trump earlier imposed punitive measures over the Asian major. As a result, China announced new visa restrictions to counter the Trump administration’s action against China. Also fueled the tension could be the fresh headlines suggested that the U.S. is considering banning some or all products made with cotton from China’s Xinjiang region. Apart from this, the Brexit’s gloomy headlines also weighed on the market trading sentiment, which eventually supported the safe-haven appeal in the market and dragged the currency pair down.

Also weighed on the market trading sentiment were the fears of rising COVID-19 cases in the U.S., Europe, and some of the notable Asian nations like India, which fueling fears that the economic recovery could be halt.

On the contrary, the broad-based U.S. dollar succeeded in maintaining its positive traction and remaining bullish on the day amid risk-off sentiment. The U.S. dollar gains were further bolstered by the ongoing upsurge in the U.S. Treasury bond yields. However, the U.S. dollar’s modest gains turned out to be the major factor that capped the pair’s further downside momentum. Whereas, the U.S. Dollar Index, which tracks the greenback against a basket of other currencies, rose by 0.13% to 93.168 by 9:53 PM ET (2:53 AM GMT).


Daily Technical Levels

Support Pivot Resistance
105.7900 106.0900 106.3200
105.5600 106.6200
105.2500 106.8500

USD/JPY – Trading Tips

The USD/JPY is consolidating at 105.928 area, having a resistance mark of 106.025 level. An upward crossover of 106.024 level may extend further buying trend until the 106.480 level, and the violation of this level can extend buying until the next resistance level of 106.840. On the downside, the safe-haven USD/JPY currency may gain support at 105.620 and 105.280. Let’s consider taking a sell trade below 106.024 level as the MACD and RSI also suggest selling bias. Good luck! 

Categories
Forex Signals

GBP/USD Closes Hammer Pattern – Eyes on 38.2% Fibo Level!


Entry Price – Buy 1.30403
Stop Loss – 1.29903
Take Profit – 1.31003
Risk to Reward – 1:1.2
Profit & Loss Per Standard Lot = -$500/ +$600
Profit & Loss Per Micro Lot = -$50/ +$60
Fellas, now you can check out forex trading signals via Forex Academy mobile app. Follow the links below.
iPhone Users: https://apps.apple.com/es/app/fasignals/id1521281368
Andriod Users: https://play.google.com/store/apps/details?id=academy.forex.thesignal&hl=en_US

Categories
Forex Signals

GBP/USD Slips Muti-Week Low – 40 Green Pips Encashed 

During Tuesday’s European trading session, the GBP/USD currency pair failed to stop its previous day bearish moves and dropped further to a multi-week low near below the 1.3050 level while represented 0.113% losses on the day mainly due broad-based U.S. dollar ongoing strength, backed by high safe-haven demand. 

During Tuesday’s European trading session, the GBP/USD currency pair failed to stop its previous day bearish moves and dropped further to a multi-week low near below the 1.3050 level while represented 0.113% losses on the day mainly due broad-based U.S. dollar ongoing strength, backed by high safe-haven demand. 

During Tuesday’s European trading session, the GBP/USD currency pair failed to stop its previous day bearish moves and dropped further to a multi-week low near below the 1.3050 level while represented 0.113% losses on the day mainly due broad-based U.S. dollar ongoing strength, backed by high safe-haven demand. 

On the other hand, the reason behind the currency pair declines could also be associated with the rising fears of a no-deal Brexit, which joined the Cable’s ongoing pessimism and contributed to the currency pair losses. The rising coronavirus cases in the U.K. also add downside pressure around the currency pair. At this particular time, the GBP/USD currency pair is currently trading at 1.3051 and consolidating in the range between 1.3023 – 1.3174.

The U.K.’s Environment Secretary George Eustice declined chatters surrounding significant changes in the Brexit agreement, while the E.U. diplomat Michael Barnier recently showed a willingness to leave the trade negotiations. On the other hand, Ireland’s Foreign Minister advised traders to not overreact to the news that the Tories may seek to weaken the Brexit withdrawal agreement. In the meantime, the Irish diplomat warned the Boris Johnson and Company over any such action. In turn, this raised the fears of further losses to the British funds after seeing a record outflow of $1.6 billion in three months to August amid such pessimism.

Also fueling the concerns was the report that the Head of the U.K. Government’s legal department, Jonathan Jones, resigned from his dissatisfaction concerning the overall Brexit situation. It is worth mentioning that Jones is the 6th-senior U.K. government official to resign this year, which increases the ongoing uncertainty over the political scene. This, in turn, undermined the British Pond and extended the currency pair losses.

Moreover, Germany’s Finance Minister Olaf Scholz stated that London’s latest signals do not raise hopes for a Brexit agreement. However, these downbeat comments from Scholzfurther fueled the uncertainty around the Brexit agreement. At the coronavirus front, the U.K.’s coronavirus (COVID-19) cases eased from the highest since May of 2,988 to 2,948 while eased the virus-led restrictions from Northern England. Moreover, BOE’s Chief Economist Andy Haldane appreciated the U.K. recovery from the virus-hit times and pushed for the furlough scheme’s end. However, these positive headlines failed to reduce the ongoing bearish tone around the currency pair.

As in result, the broad-based U.S. dollar flashed green and took the safe-haven bids on the day amid market risk-off sentiment. However, the U.S. dollar gains could also be associated with the upbeat U.S. labor market report, which showed a decline in the unemployment rate. Thus, the gains in the U.S. dollar kept the currency pair under pressure. Whereas, the U.S. Dollar Index, which tracks the greenback against a basket of other currencies, rose by 0.13% to 93.168 by 9:53 PM ET (2:53 AM GMT).


Looking forward, the market traders will keep their eyes on the Brexit talks. The risk catalyst like geopolitics and the virus woes will be key to watch for the fresh direction, not to forget the Brexit. The GBP/USD is trading within a downward channel extending resistance at 1.3137 level and a support level of 1.3020 level. Violation of 1.3021 level may drive the selling trend until the next support level of 1.2959 level. Well, we are already out of the trade as our forex trading signal at taking profit at 1.30917, securing us 40 green pips. Let’s brace for profit-taking before taking selling trade below 1.3085 level. Good luck!