Author: Ali B.

Categories
Forex Signals

USD/CAD Remains On Bullish Track – Quick Buy Trade!

The USD/CAD succeeded in extending its previous day winning streak and still taking bids around well above the 1.3100 level. However, the positive tone around the currency pair could be associated with the broad-based U.S. dollar on-going strength, backed by the Friday released upbeat U.S. jobless rate data and hopes of the U.S. stimulus. The U.S. dollar gains were also supported by the high safe-haven demand in the market.

The USD/CAD succeeded in extending its previous day winning streak and still taking bids around well above the 1.3100 level. However, the positive tone around the currency pair could be associated with the broad-based U.S. dollar on-going strength, backed by the Friday released upbeat U.S. jobless rate data and hopes of the U.S. stimulus. The U.S. dollar gains were also supported by the high safe-haven demand in the market.

The USD/CAD succeeded in extending its previous day winning streak and still taking bids around well above the 1.3100 level. However, the positive tone around the currency pair could be associated with the broad-based U.S. dollar on-going strength, backed by the Friday released upbeat U.S. jobless rate data and hopes of the U.S. stimulus. The U.S. dollar gains were also supported by the high safe-haven demand in the market.

On the other side of the ocean, the reason for the currency pair bullish bias could also be attributed to the weaker crude oil prices, which tend to undermine 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 1.3117 and consolidating in the range between 1.3084 – 1.3120.

Despite the hopes of the U.S. stimulus package and coronavirus vaccine, the market trading sentiment represents mixed signals as the confused performance of Asia-Pacific stocks and declines of the U.S. 10-year Treasury yields 0.70%, tend to highlight the risk-off mood. This, in turn, underpinned the U.S. dollar and extended some support to the currency pair.

However, the reason behind the risk-off market sentiment could be attributed to the intensified US-China tussle. Both nations are using very harsh words against each other. The latest headlines suggest that the U.S. is considering banning some or all products made with cotton from China’s Xinjiang province. This happened after Beijing’s visa restrictions over the American reporters. The gloomy headlines concerning the Brexit also weighed on the market trading sentiment, which eventually increased the market’s safe-haven demand.

At the data front, the headline Non-farm payrolls data for August missed expectations with +1371K. However, the unemployment rate dropped to 8.4%.vs 9.8% expected. In the meantime, the Average Hourly Earnings exceeded predictions, with +0.4% MoM in August vs. 0% expected.

At the USD front, the broad-based U.S. dollar has resumed its gaining streak since the beginning of this week and is supported by some heavy selling pressure around the European currencies. The concerns about rising US-China tensions increased the safe-haven demand in the market, which also helps the U.S. dollar as it safe-aven status. Thus, the gains in the U.S. dollar kept the currency pair higher. 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).

The crude oil prices failed to stop its previous da losing streak and dropped further below the 39.00 marks. However, the reason for the bearish bias around the crude oil prices could be attributed to the renewed worries over the economic recovery after the U.S. reported fresh COVID-19 cases. Also weighing on the oil prices could be the reports that suggested the end of the peak driving season in the U.S. Thus, the declines in oil prices undermined demand for the commodity-linked currency the loonie and contributed to the currency pair gains.

Despite the combination of supporting factors, the buyers seemed to struggle to push the USD/CAD currency pair beyond a two-month-old descending trend channel. However, the traders avoided placing any strong bids ahead of the latest BoC monetary policy decision on Wednesday. The risk catalyst like geopolitics and the virus woes will be key to watch for the fresh direction, not to forget the Brexit.


The USD/CAD is trading with a bullish bias at 1.3156, having violated the resistance level of 1.3113. Recently, the closing of the bullish engulfing candle on the 2-hour timeframe is suggesting bullish bias; therefore, we have opened a buying trade in the USD/CAD pair. Check out the trading signal below.

Entry Price – Buy 1.31327
Stop Loss – 1.30927
Take Profit – 1.31727
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 08 – Top Trade Setups In Forex – European Data in Focus! 

On Tuesday, the economic calendar offers low impact economic events that may not drive any solid movement in the market. However, the eyes will remain on the German Trade Balance, French Trade Balance, and Revised GDP figures from the Eurozone. EUR currency pairs can show some price action during the day today.

On Tuesday, the economic calendar offers low impact economic events that may not drive any solid movement in the market. However, the eyes will remain on the German Trade Balance, French Trade Balance, and Revised GDP figures from the Eurozone. EUR currency pairs can show some price action during the day today.

On Tuesday, the economic calendar offers low impact economic events that may not drive any solid movement in the market. However, the eyes will remain on the German Trade Balance, French Trade Balance, and Revised GDP figures from the Eurozone. EUR currency pairs can show some price action during the day today.

Economic Events to Watch Today  

 

EUR/USD – Daily Analysis

The EUR/USD pair was closed at 1.18120 after placing a high of 1.18485 and a low of 1.18114. The EUR/USD pair dropped on Monday and extended its previous day’s losses due to decreased risk appetite and negative industrial production data from Germany. However, the change in prices was little as the U.S. financial markets were closed for the Labor Day Holiday.

The U.S. Dollar was steady on Monday with a little change in U.S. Dollar Index at 92.895 level. However, the greenback sentiment remained weak after the dovish comments from Jerome Powell on Friday that interest rates will remain lower for longer. The dollar was also steady because of the slow growth in the job sector was reported in August.

On Friday, the U.S. Department of Labor showed slow growth and increased permanent job losses as the government funding was running out. It has raised doubts about the sustainability of the economic recovery. On the Euro front, traders’ focus has shifted to the European Central Bank’s meeting on Thursday this week. As it is expected, ECB will not change policy stance, but the focus will solely remain on the message the ECB will deliver on its inflation forecasts.

The local currency Euro marked a 2-year high at the beginning of the month, and after that, the European Central Bank meeting will hold more importance. Because officials were concerned about the higher Euro prices, it would impact the exports and prices.

On the data front, at 11:00 GMT, the German Industrial Production in July decreased to 1.2% from the expected 4.5% and weighed on the local currency Euro. At 13:30 GMT, the Sentix Investor Confidence for September came in as -8.0 against the expected -11.4 and supported single currency Euro. The decreased German Industrial Production raised concerns over the economic growth and weighed on the Euro that dragged the currency pair EUR/USD on the downside.

The EUR/USD pair was down on Monday because of the European Union’s rising coronavirus cases. On Monday, Spain became the first European country to surpass 500,000 coronavirus cases after the second surge in infections caused after schools were reopened. On Tuesday, the Trade Balance from Germany and France and the Retail Sales data from Italy will be under traders’ focus for finding fresh impetus.

Daily Technical Levels

Support Pivot Resistance
1.1803 1.1826 1.1841
1.1788 1.1864
1.1764 1.1879

EUR/USD– Trading Tip

The EUR/USD is trading with a selling bias around 1.1801 level, heading lower towards the next support area of 1.1780 level. On the 4 hour timeframe, the EUR/USD may find support at 1.1780, the triple bottom level, which is extended by an upward trendline. Below this, the next support is likely to be found around the 1.1725 level.

GBP/USD – Daily Analysis

The GBP/USD failed to stop its previous session losing streak and took further offer below the 1.3150 level while represented 0.96% losses on the day mainly due broad-based U.S. dollar on-going strength, supported by the combination of factors. 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 on-going pessimism around the Cable and contributed to the currency pair losses. At this time, the GBP/USD currency pair is trading at 1.3155 and consolidating in the range between 1.3145 – 1.3267.

The GBP currency took a hit on the 1st-day of the week manly after the British Prime Minister Boris Johnson set October 15 as the deadline for a Brexit trade agreement with the European Union, which eventually bolstered the risk of a messy end to the Brexit transition period on December 31. As per the keywords, “U.K. will be ready to trade with the E.U. on Australia type terms if no deal agreed.” He further added, “If no deal reached by October 15 with the E.U., both sides should accept this and move on. Also, fuel the fears could be the reports that the U.K. 

However, the Brexit fears played a major role in weakening the market trading sentiment as the U.S. is on the labor day holiday. Across the pond, the intensifying tensions between the U.S. and China also added a burden around the market trading sentiment. After the U.S. punished Chinese technologies and diplomats by imposing several sanctions, China’s Foreign Ministry urged the U.S. to stop abusing private companies. As per the keywords of China’s Foreign Ministry, “Without evidence, the U.S. has abused national power to take measures on Chinese companies.” This ultimately exerted downside pressure on the trading sentiment and contribute to the currency pair losses.

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 and a rise in U.S. Treasury yields. Thus, the gains in the U.S. dollar kept the currency pair under pressure. Whereas, the U.S. Dollar Index that tracks the greenback against a basket of other currencies rose by 0.18% to 92.882 by 12:05 AM ET (5:05 AM GMT).

 Daily Technical Levels

Support Pivot Resistance
1.3109 1.3197 1.3254
1.3052 1.3342
1.2964 1.3398

GBP/USD– Trading Tip

The GBP/USD is trading with a selling bias at 1.3125 level, set to test the support level of 1.3120 level. The Cable is trading within a downward channel, which may extend support at 1.3120 level along with resistance at 1.3186. On the downside, the GBP/USD pair may find support at 1.3051 level upon the violation of the 1.3125 level. The MACD is also supporting selling bias; therefore, we will be looking for selling trades below the 1.3165 level. 

USD/JPY – Daily Analysis

The USD/JPY pair was closed at 106.227 after forming a high of 106.503 and 106.055. Overall the movement of the USD/JPY pair remained bullish throughout the day. The pair USD/JPY moved in the upward direction and posted gains on Monday. The currency pair extended its bullish streak for the 5th consecutive day despite the sow job growth in the U.S. and increasing US-China tensions.

The tensions between U.S. & China further escalated on Monday after the U.S. administration of President Donald Trump announced a ban on the usage of products made from cotton from China’s Xinjiang region. The ban was imposed against the human rights violation in Xinjiang over the forced labor on Muslim minorities.

China’s response to such a ban is yet to come, but it is expected that the latest ban would only increase the lingering tensions between both nations. These conditions helped fade the market risk sentiment and capped on additional gains in the USD/JPY pair on Monday. The greenback gathered strength against its rivals on the back of upbeat macroeconomic data released in the previous week. But the pair’s upside momentum was limited after a sharp decline in the major equity indexes in the U.S. that helped the JPY to find demand as safe-haven.

On the data front, at 10:00 GMT, the leading indicators in July rose to 86.9% compared to June’s 83.8%; it failed to impact USD/JPY’s pair prices as it came in line with the forecast. However, traders’ focus has now shifted towards the second quarter Gross Domestic Product (GDP) and Trade Balance data from Japan that will be released on Tuesday. Markets expect the Japanese economy to contract by 8.1% every quarter. Any better than expected reading would give strength to the Asian stock markets and hurt the Japanese Yen that will add further gains in USD/JPY pair.

According to Johns Hopkins University data on the coronavirus front, the total number of coronavirus cases reached 27 million on Monday. These fears kept the risk sentiment under pressure and weighed on the USD/JPY pair’s gains.

However, the risk sentiment was favored by the latest comments from Steven Mnuchin on Sunday. He said that the new stimulus measures’ details would be delivered by the end of this week. He reiterated that the new bill would provide funds to the federal government through the start of December.

The White House and Congress agreed on the same terms to extend the funding, as confirmed by Nancy Pelosi and Steven Mnuchin. The announcement came to avoid the economic shutdown as the current funding was near to expire at the end of this month. These positive comments from Mnuchin raised the risk sentiment and weighed on the Japanese Yen and pushed the USD/JPY pair higher.


Daily Technical Levels

Support Pivot Resistance
106.1100 106.2500 106.3800
105.9900 106.5100
105.8500 106.6400

USD/JPY – Trading Tips

The USD/JPY is consolidating at 106.250 area, having a resistance mark of 106.485 level. An upward crossover of 106.505 level may extend further, buying into the next resistance mark of 106.850. On the downside, the safe-haven USD/JPY currency may gain support at 106.028 and 105.628. Let’s consider taking a bullish trade over 106.028 level as the MACD and RSI also suggest neutral bias. Good luck! 

Categories
Forex Signals

USD/CAD Facing Hard Time Below 1.3110 – Quick Sell Trade! 

The USD/CAD succeeded to extend its early day bullish bias and hit the intra-day high well above 1.3100 level mainly due to the broad-based US dollar strength backed by the Friday released upbeat US jobless rate and wage growth data. The US dollar gains were also supported by the high safe-haven demand in the market. Across the pond, the reason for the currency pair bullish bias could also be attributed to the weaker oil prices which ultimately undermined the demand for the commodity-linked currency the loonie, and contributed to the currency pair gains. 

The USD/CAD succeeded to extend its early day bullish bias and hit the intra-day high well above 1.3100 level mainly due to the broad-based US dollar strength backed by the Friday released upbeat US jobless rate and wage growth data. The US dollar gains were also supported by the high safe-haven demand in the market. Across the pond, the reason for the currency pair bullish bias could also be attributed to the weaker oil prices which ultimately undermined the demand for the commodity-linked currency the loonie, and contributed to the currency pair gains. 

The USD/CAD succeeded to extend its early day bullish bias and hit the intra-day high well above 1.3100 level mainly due to the broad-based US dollar strength backed by the Friday released upbeat US jobless rate and wage growth data. The US dollar gains were also supported by the high safe-haven demand in the market. Across the pond, the reason for the currency pair bullish bias could also be attributed to the weaker oil prices which ultimately undermined the demand for the commodity-linked currency the loonie, and contributed to the currency pair gains. 

The market trading sentiment reporting losses on the day as the US-China tussle picked up the pace. As well as, the gloomy headlines concerning the Brexit also weighed on the market trading sentiment, which eventually increased the safe-haven demand in the market. This, in turn, underpinned the US currency.

Also supporting the US dollar was the upbeat US labor market report. At the data front, the headline Non-farm payrolls data for August missed expectations with +1371K. However, the unemployment rate dropped to 8.4%.vs 9.8% expected. In the meantime, the Average Hourly Earnings exceeded predictions, with +0.4% MoM in August vs. 0% expected.

The USD front, the broad-based US dollar managed to maintain its bullish trend and remains on the bullish track on the day. However, the US dollar gains were also supported by the upbeat US labor market report, that reported a drop in the U.S. unemployment rate, and a surge in U.S. Treasury yields. Thus, the gains in the US dollar kept the currency pair higher. Whereas, the U.S. Dollar Index that tracks the greenback against a basket of other currencies edged up 0.18% to 92.882 by 12:05 AM ET (5:05 AM GMT).

Across the Ocean, the crude oil prices remain on the bearish track as Saudi Arabia started the massive monthly price cuts for supply to Asia in 5-months. Also weighing on the oil prices were the fears of oversupply amid the coronavirus pandemic. Thus, the declines in oil prices undermined demand for the commodity-linked currency the loonie and contributed to the currency pair gains. 

The U.S. market could be inactive today in the wake of the U.S. labor day holiday. However, the updates on the virus and Sino-American tension will be key to watch. In the meantime, the market players will be interested in the headlines concerning the Brexit.


The USD/CAD is trading at 1.3094 level, holding right below a strong resistance level of 1.3112 level. Closing of a doji candle below 1.3112 level may trigger selling until 1.3042 level. Checkout forex trading signal below.

Entry Price – Sell 1.3099

Stop Loss – 1.3139

Take Profit – 1.3059

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 Set to Complete 61.8% Fibonacci Retracement – Signal Update! 

Today in the early European trading session, the AUD/USD currency pair Managed To stop Its Previous Session losing streak and drew some modest bids on the back of the upbeat China trade numbers, which came out better than forecast. Also, capping the losses could be the light calendar in Asia amid the U.S. holiday. On the contrary, the fresh risk aversion wave, triggered by the US-China renewed tussle and Brexit issue, turned out to be a major factor that kept the lid on any further gains in the currency pair. 

Today in the early European trading session, the AUD/USD currency pair Managed To stop Its Previous Session losing streak and drew some modest bids on the back of the upbeat China trade numbers, which came out better than forecast. Also, capping the losses could be the light calendar in Asia amid the U.S. holiday. On the contrary, the fresh risk aversion wave, triggered by the US-China renewed tussle and Brexit issue, turned out to be a major factor that kept the lid on any further gains in the currency pair. 

Today in the early European trading session, the AUD/USD currency pair Managed To stop Its Previous Session losing streak and drew some modest bids on the back of the upbeat China trade numbers, which came out better than forecast. Also, capping the losses could be the light calendar in Asia amid the U.S. holiday. On the contrary, the fresh risk aversion wave, triggered by the US-China renewed tussle and Brexit issue, turned out to be a major factor that kept the lid on any further gains in the currency pair. 

In the meantime, the broad-based U.S. dollar strength backed by Friday’s released upbeat U.S. jobless rate and wage growth data also kept the currency pair under pressure. The AUD/USD currency pair is currently trading at 0.7285 and consolidating in the range between 0.7270 – 0.7298.

At the data front, China’s Trade Balance for August, in Yuan terms, arrived in at CNY416.59 billion against CNY196.21 billion expected and CNY442.23 billion last. Meanwhile, August exports arrived in at +11.6% vs.+2.1% expected and +10.4% last while imports arrived at -0.5% vs. -0.7% expected and +1.6% prior. 

As far as the USD terms’ data is concerned, the headline Trade Balance improved past-$50.5B forecast to $58.9B. The Exports increased by 9.5% versus 7.1% prior, whereas Imports eased to -2.1% against +0.1% expected and -1.4% prior. However, the Chinese exports and big surplus beat initially impressed the AUD bulls and became the key factor that kept the currency pair from losses.

Elsewhere, the market risk tone has been sluggish since the day started, possibly due to the renewed conflict between the U.S. and China. The war between both parties fueled after the U.S. punished Chinese technologies and diplomats by imposing several sanctions that have repeatedly irritated the Dragon Nation. In turn, China’s Foreign Ministry advised the U.S. to stop abusing the domestic companies on the day. 

As per the keywords, “Without evidence, the U.S. has abused national power to take measures on Chinese companies.” Apart from this, previous Chinese warnings to cut the U.S. debt buying also heated up an already intensified tussle. 

Also weighed on the risk sentiment is the rising coronavirus cases in Asian and Europe, fueling worries about the global economic recovery. As per the report, the coronavirus cases crossed 27 million cases as of September 7, as per the Johns Hopkins University data. However, these fears also kept the traders cautious.

At the USD front, the broad-based U.S. dollar managed to maintain its bullish trend and remain on the day’s bullish track. However, the U.S. dollar gains were supported by the upbeat U.S. labor market report, which revealed a slipped in the unemployment rate and a rise in U.S. Treasury yields. Thus, the gains in the U.S. dollar kept the currency pair under pressure. Whereas, the U.S. Dollar Index that tracks the greenback against a basket of other currencies rose by 0.18% to 92.882 by 12:05 AM ET (5:05 AM GMT).

Looking forward, the Labor Day Holiday in the U.S. will likely restrict the market moves. Whereas, the updates on the virus and Sino-American tension could not lose its importance. In the meantime, the market players will be interested in the headlines concerning the Brexit.


The AUD/USD pair is trading sideways over an immediate support level of 0.7277 level. Closing of candles above this level may drive upward movement in the market until the 0.7325 level. A bearish breakout of 0.7276 level may drive selling until the 0.7249 level today.

Entry Price – Buy Limit 0.72463

Stop Loss – 0.72063

Take Profit – 0.72863

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 Supported Over Symmetric Triangle Pattern – Quick Outlook! 

The yellow metal prices extended its Friday’s winning streak and took bids around the $1,936 level, mostly due to the risk-off market sentiment. That was witnessed by the negative performance of the S&P 500 Futures. However, the reason for the downbeat trading sentiment could be associated with the worrisome headlines concerning Brexit and on-going tension between the U.S. and China. This, in turn, helped the gold prices to put safe-haven bids. In the meantime, the coronavirus (COVID-19) worries also keeps the market trading sentiment cautious.

The yellow metal prices extended its Friday’s winning streak and took bids around the $1,936 level, mostly due to the risk-off market sentiment. That was witnessed by the negative performance of the S&P 500 Futures. However, the reason for the downbeat trading sentiment could be associated with the worrisome headlines concerning Brexit and on-going tension between the U.S. and China. This, in turn, helped the gold prices to put safe-haven bids. In the meantime, the coronavirus (COVID-19) worries also keeps the market trading sentiment cautious.

The yellow metal prices extended its Friday’s winning streak and took bids around the $1,936 level, mostly due to the risk-off market sentiment. That was witnessed by the negative performance of the S&P 500 Futures. However, the reason for the downbeat trading sentiment could be associated with the worrisome headlines concerning Brexit and on-going tension between the U.S. and China. This, in turn, helped the gold prices to put safe-haven bids. In the meantime, the coronavirus (COVID-19) worries also keeps the market trading sentiment cautious.

On the contrary, the broad-based U.S. dollar strength, backed by the jobs data, which showed a dip in the unemployment rate, and a surge in U.S. Treasury yields, becomes the key factor that capping further upside momentum for the bullion. The yellow metal prices are trading at 1,928.19 and consolidating in the range between 1,927.92 – 1,941.47. However, the bullion traders seem inactive to place any strong position amid Labor Day Holiday in America.

Be it the worrisome headlines concerning the Brexit or the tension between the US-China, not to forget the coronavirus issues, the market trading sentiment has been flashing red since the week started, which ultimately keeps the safe-haven assets supportive on the day. At the Brexit front, the UK PM Boris Johnson set the October 15 deadline to trade with the European Union (E.U.). The tension was further bolstered by the Financial Times’ headlines, suggesting that the U.K. is preparing fresh legislation that will override key parts of the Brexit withdrawal agreement. These gloomy headlines initially exerted downside pressure on the market and helped the safe-haven assets. 

At the US-China front, the Sino-China tensions further bolstered after the Trump administration’s blacklisting of Beijing backed SMIC. Hopefully, this happened after China warned to cut the U.S. debt buying and threatened U.S. chipmakers while announcing a 5-year plan to build the infrastructure to be self-dependant.

However, the reasons for the downbeat trading sentiment could also be attributed to the coronavirus (COVID-19) woes, which keep disturbing the global markets. The latest figures from Australia and Texas have been normalizing, but India and Brazil are still facing major pandemic issues. In Japan, 72,203 people have tested positive as of 7:30 PM, September 5, 2020.

At the USD front, the broad-based U.S. dollar extended its early-day gains and took further bids on the day due to Friday’s job data, which showed a decline in the unemployment rate and a rise in U.S. Treasury yields. On the flip side, the data showed that U.S. employment growth slowed, and permanent job losses increased. This, in turn, capping further again in the U.S. dollar. s. Although the gains in the U.S. dollar become the key factor that kept the check on any additional gains in the bullion as the price of gold is inversely 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 92.882 by 12:05 AM ET (5:05 AM GMT).

Looking forward, the Labor Day Holiday in the U.S. will likely restrict the market moves. As well as, the updates on the virus and Sino-American tension could not lose its importance. In the meantime, the market players will be interested in the headlines concerning the Brexit.


At this movement, precious metal gold is trading sideways near 1,928, having immediate support at 1,930 and resistance at 1,940 levels. We can expect choppy trading today amid U.S. bank holidays in the wake of labor day. Neutral bias prevails in the market today. Let’s wait for gold to test the support level of 1,919. Violation of 1,919 may drive more selling until 1,903 and 1,880. Good luck!

Categories
Forex Market Analysis

Daily F.X. Analysis, September 07 – Top Trade Setups In Forex – Labor Day Holiday! 

On the news front, eyes will remain on the U.K. Halifax HPI m/m and European Sentix Investor Confidence figures, but these are hardly expected to drive any market movement today. We may experience a lack of volatility in the market amid the Labor Day holiday in the U.S.

On the news front, eyes will remain on the U.K. Halifax HPI m/m and European Sentix Investor Confidence figures, but these are hardly expected to drive any market movement today. We may experience a lack of volatility in the market amid the Labor Day holiday in the U.S.

On the news front, eyes will remain on the U.K. Halifax HPI m/m and European Sentix Investor Confidence figures, but these are hardly expected to drive any market movement today. We may experience a lack of volatility in the market amid the Labor Day holiday in the U.S.

Economic Events to Watch Today  

 

EUR/USD – Daily Analysis

The EUR/USD pair was closed at 1.18370 after placing a high of 1.18652 and a low of 1.17806. Overall the movement of the EUR/USD pair remained bearish throughout the day. The EUR/USD pair dropped on Friday amid the broad-based U.S. dollar strength against Euro as the tensions rose in the market that ECB was uncomfortable with the Euro rise. Another reason included in the fall of the currency pair was the strong US Jobs data and weak German Factory Orders. The decreasing risk sentiment due to increased US-China tensions and the rising number of coronavirus also added in the losses of the EUR/USD pair on Friday.

On Thursday, the U.S. dollar extended its gains as investors started to sell Euro against it because the European Central Bank was worried about the rising prices of local currency. This pushed the U.S. dollar 1.3% upside down the 28-month low level that it hit on Tuesday.

Earlier this week, the Euro touched 1.20 level, and the worries increased in the market that the rise in prices had come too fast and strong for the ECB to like it. These concerns were even confirmed by the ECB policymakers that reportedly warned that if the Euro kept increasing, it would weigh on the exports and drag down the prices and eventually increase the need for more monetary stimulus. These concerns also followed the remarks from ECB Chief Economist Philip Lane, who said that the exchange rate does matter for the monetary policy. It weighed on Euro and ultimately dragged the EUR/USD pair on the downside.

On the data side, the German Factory Orders in July were released at 11:00 GMT that decreased to 2.8% from the projected 5.1% and weighed on Euro that added pressure on EUR/USD pair. At 11:45 GMT, the French Government Budget Balance in July reported a deficit of -151.0B compared to June’s 124.9B.

From the U.S. side, the Average Hourly Earnings in August was increased to 0.4% from the forecasted 0.0% and supported the U.S. dollar. The Non-Farm Employment Change remained flat with the expectations of 1371K. In August, the Unemployment Rate also dropped to 8.4% against the forecasted 9.8% and supported the U.S. dollar that added further pressure on EUR/USD pair.

Furthermore, the fading risk sentiment also added in the EUR/USD pair’s losses as the escalating US-China tensions weighed on market sentiment. The Chinese government stopped renewing press credentials for foreign journalists working for American press organizations in China. China has also said that it will proceed with removals if the Trump administration takes any further action against Chinese media employees in the U.S.

Meanwhile, the coronavirus cases in Europe rose again and jumped back to the figures recorded in mid-March, the time of disease peak across the continent. Spain saw the highest daily cases since April and recorded 8959 cases in just 24 hours. Spain is one of the hardest-hit European countries by the coronavirus pandemic, with 488,513 cases. These pandemic related tensions also kept the risk sentiment under pressure that weighed on local currency and added the EUR/USD pair’s losses.

Daily Technical Levels

Support Pivot Resistance
1.1828 1.1838 1.1844
1.1821 1.1855
1.1811 1.1861

EUR/USD– Trading Tip

The EUR/USD bounced off over the support level of 1.1795, and now it’s heading further higher until the next target of 1.1890. The pair may find an immediate resistance at 1.1860 level. Conversely, the EUR/USD may find support at 1.1808 and 1.1780 levels. We can expect choppy trading today amid U.S. bank holidays in the wake of labor day. Neutral bias prevails in the market today.

GBP/USD – Daily Analysis

The GBP/USD pair was closed at 1.32820 after placing a high of 1.33189 and a low of 1.31754. Overall the movement of the GBP/USD pair remained flat throughout the day. The GBP/USD pair dropped to 6-days lowest level on Friday after the release of dismal PMI data from Britain and more stimulus hopes from the U.K. Another factor involved in the GBP/USD pair’s downward momentum was the increased risks of no-deal Brexit.

On Friday, the British Pound fell and posted weekly losses for the first time in the month as experts warned that any potential recovery could get limited by the threats of no-deal Brexit. The recent success of the British Pound was partly due to the U.K. government’s success in preventing a second wave of coronavirus. However, the fears that the virus could return and could persist for a very long period as long as it is not contained in Europe weighed on GBP. The number of cases in European countries increased day by day, and it has also kept the GBP/USD pair.

Furthermore, the end of the Brexit transition period is near, and it has also brought the risk of a no-deal Brexit more into focus. No-deal has been reached so far, and in case of no-deal, the U.K. would trade with the E.U. on World Trade Organization rules from next year onward. It could affect both sides in real economic terms but above all for the British economy. It is because the European Union is the largest trading partner of the United Kingdom. These Brexit tensions also weighed on local currency and kept the GBP/USD pair under pressure on Friday.

Meanwhile, the monetary policy also offered reasons for caution on the British Pound after the Bank of England monetary policy committee members, including Governor Andrew Bailey, suggested negative interest rates could have a role play in the recovery of the economy. These dovish comments from BoE’s governor weighed on the local currency that dragged the pair GBP/USD towards the six days lowest level at the ending day of the week.

On the data front, at 13:30 GMT, the Construction PMI from Great Britain in August reported a decline to 54.6 from the anticipated 58.5 and weighed on the Sterling that ultimately weighed on GBP/USD pair. Whereas from the U.S. side, the Unemployment rate decreased to 8.4% from the projected 9.8%, and the Average Hourly Earnings rose to 0.4% against the estimated 0.0% and supported the U.S. dollar.

The weak Sterling and the strong Greenback played an important role in pushing the GBP/USD pair downward. Furthermore, On Friday, the interest-rate-setter of Bank of England, Micheal Saunders, said that it was possible that more stimulus would be needed for the U.K.’s economy that has been hit by the pandemic. This need for more stimulus confirmed by an official BoE’s member raised the concerns of recovery and weighed on the local currency and added pressure on GBP/USD pair.

 Daily Technical Levels

Support Pivot Resistance
1.3231 1.3257 1.3274
1.3214 1.3300
1.3188 1.3317

GBP/USD– Trading Tip

The GBP/USD is trading with a selling bias at 1.3205 level, set to test the support level of 1.3168 level. The Cable is trading within a downward channel, which may extend support at 1.3175 level along with resistance at 1.3265. On the downside, the GBP/USD pair may find support at 1.3086 level upon the violation of the 1.3172 level. The MACD is also supporting selling bias; therefore, we will be looking for selling trades below the 1.3250 level. 

USD/JPY – Daily Analysis

The USD/JPY pair was closed at 106.184 after placing a high of 106.551 and a low of 106.000. Overall the movement of the USD/JPY remained flat yet bullish throughout the day. The USD/JPY pair extended its bullish streak for the 4th consecutive day and rose to a high of 106.5 level on Thursday on positive U.S. jobless claims and services PMI data. However, the pair failed to remain higher and lost most of its daily gains in the late session as the Japanese Yen found demand as a safe-haven.

The U.S. stock market slipped sharply during last week, with S&P 500 and the Nasdaq Composite indexes down by 3.5% and 5.05%. The fall in equities was caused by the lack of progress in the next coronavirus stimulus package by the U.S. government and overdue correction.

Moreover, the US-Treasury yields for the 10-year note lost almost 5%, and the U.S. Dollar Index stayed in the positive territory near 92.8 level as the greenback continued to perform higher against its risk-sensitive rival currencies and helped the USD/JPY to limit its fall in the second session.

On the data front, at 17:30 GMT, the Unemployment Claims from last week were dropped to 881K from the projected 955K and supported the U.S. dollar that added further gains in the USD/JPY pair. 

The Revised Non-farm Productivity for the quarter raised to 10.1% from the forecasted 7.3% and weighed on the U.S. dollar. The Revised Unit Labor Costs for the quarter declined to 9.0% from the anticipated 12.0% and pressured on the U.S. dollar. The Trade Balance in July showed a deficit of 63.6B against the expectations of 58,2B deficit and weighed on the U.S. dollar. At 18:45 GMT, the Final Services PMI for August rose to 55.0 from the expected 54.8 and supported the U.S. dollar that added strength in the USD/JPY pair. At 19:00 GMT, the ISM Non-Manufacturing PMI remained flat with the expectations of 47.0 and had almost no effect on the U.S. dollar.

The decrease in Unemployment claim benefits and rise in Final Services PMI gave a push to U.S. dollar and USD/JPY pair gains on Thursday.

On the coronavirus front, 25.8 million people have been reported to be diagnosed from coronavirus globally. Almost 17 million people have been reported to be recovered, while more than 850,000 have reported as dead. On Wednesday, after easing the pandemic restrictions, India reported more than 78000 cases in a single day and surpassed the U.S. for a daily case record of coronavirus.

Australia saw the biggest drop in GDP for the quarter and was pushed into recession for the first time since 1991 amid a pandemic crisis and its effect on the economy. These lingering concerns over the coronavirus kept the safe-haven demand for Japanese yen on board and limited the USD/JPY pair’s gains.


Daily Technical Levels

Support Pivot Resistance
106.2400 106.2800 106.3500
106.1700 106.3900
106.1300 106.4600

USD/JPY – Trading Tips

The USD/JPY is consolidating at 106.250 area, having a resistance mark of 106.485 level. An upward crossover of 106.505 level may extend further, buying into the next resistance mark of 106.850. On the downside, the safe-haven USD/JPY currency may gain support at 106.028 and 105.628. Let’s consider taking a bullish trade over 106.028 level as the MACD and RSI also suggest neutral bias. Good luck! 

Categories
Forex Signals

AUD/USD Stopped Losing Streak – Bullish Correction in Play!  

Today in the European trading session, the AUD/USD currency pair succeeded in stopping its previous session losses and took fresh bids above the 0.7280 level as the U.S. stock futures turned positive. The fresh gains were backed by the optimism over a potential vaccine/treatment for the highly infectious coronavirus, which eventually underpinned the perceived risk currency Australian dollar and contributed to the currency pair gains. 

Today in the European trading session, the AUD/USD currency pair succeeded in stopping its previous session losses and took fresh bids above the 0.7280 level as the U.S. stock futures turned positive. The fresh gains were backed by the optimism over a potential vaccine/treatment for the highly infectious coronavirus, which eventually underpinned the perceived risk currency Australian dollar and contributed to the currency pair gains. 

Today in the European trading session, the AUD/USD currency pair succeeded in stopping its previous session losses and took fresh bids above the 0.7280 level as the U.S. stock futures turned positive. The fresh gains were backed by the optimism over a potential vaccine/treatment for the highly infectious coronavirus, which eventually underpinned the perceived risk currency Australian dollar and contributed to the currency pair gains. 

On the contrary, the broad-based U.S. dollar ongoing strength, backed by the upsurge in the U.S. Treasury bond yields, kept a lid on additional currency pair gains. Also, capping the quote upside momentum could be the ongoing US-China tussle. The AUD/USD currency pair is currently trading at 0.7283 and consolidating in the range between 0.7251 – 0.7288. Moving on, the market traders seem reluctant to place any strong position ahead of U.S. Nonfarm Payrolls.

It is worth recalling that the market trading sentiment was supported by optimism over a possible vaccine and treatment for the highly infectious coronavirus. Also, supporting the trading sentiment factor could be the ongoing chatters between the House of Speak Nancy Pelosi and Treasury Secretary Steve Mnuchin concerning the U.S. stimulus package. Tthe House of Speak Nancy Pelosi and Treasury Secretary Steve Mnuchin agreed on the stop-gap funding before the current bill expires on September 30. Also supporting the upticks in U.S. stocks future could be the Fed policymakers’ clears view of keeping the monetary policy easy and without doubt, unlike others. In turn, this underpinned the perceived risk currency Australian dollar and extended some support to the currency pair.

On the contrary, the renewed conflict between the U.S. and China fueled after the Dragon Nation warned the U.S. to cut its American debt holdings. This step has taken by China after the Trump administration announced extra hardships for Beijing diplomats. This eventually exerted downside pressure on the trading sentiment and capped further upside momentum in the U.S. stock futures.

At the USD front, the broad-based U.S. dollar succeeded in gaining positive traction and edged higher on the day amid mixed 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 became the major factor that capped the pair’s upside momentum. Whereas, the U.S. Dollar Index Futures that tracks the greenback against a bucket of currencies inched up at 92.47 by 10:23 PM ET (2:23 AM GMT).

Moving on, the August month’s employment data for the U.S., which is scheduled to release at 12:30 GMT, will be key to watch on the day. The headline U.S. Nonfarm Payrolls (NFP) data is expected to drop to 1400K against 1763K prior, while the Unemployment Rate may fall from 10.2% previous to 9.8%. As well as, the coronavirus (COVID-19) updates, U.S. stimulus news, and the US-China tensions could not lose their importance on the day.


The AUD/USD pair traded distinctly bearish to linger at 0.7268 mark, achieving critical support at 0.7250 and resistance at 0.7277. Breach of this area may define the next move in the AUD/USD pair. On the higher side, the AUD/USD pair may encounter resistance at 0.7340 and support at 0.7225. The trend will be concluded following the announcement of NFP figures later through the U.S. session. 

Entry Price – Buy 0.7285

Stop Loss – 0.7245

Take Profit – 0.7325

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 04 – Top Trade Setups In Forex – Brace for U.S. NFP Figures! 

On the news front, the eyes will be on the U.S. ADP Non-farm payroll figures, which may drive price action during the New York session today. Besides, the U.S. Crude Oil Inventories will remain in highlights as economists expect a slight draw in U.S. oil stocks that may drive buying in WTI crude oil.

On the news front, the eyes will be on the U.S. ADP Non-farm payroll figures, which may drive price action during the New York session today. Besides, the U.S. Crude Oil Inventories will remain in highlights as economists expect a slight draw in U.S. oil stocks that may drive buying in WTI crude oil.

On the news front, the eyes will be on the U.S. ADP Non-farm payroll figures, which may drive price action during the New York session today. Besides, the U.S. Crude Oil Inventories will remain in highlights as economists expect a slight draw in U.S. oil stocks that may drive buying in WTI crude oil.

Economic Events to Watch Today  

EUR/USD – Daily Analysis

The EUR/USD pair was closed at 1.18513 after placing a high of 1.18644 and a low of 1.17888. Overall the movement of the EUR/USD pair remained flat yet bullish throughout the day. After dropping for two consecutive days, the EUR/USD pair extended its losses in the first half of the day but reversed its direction and started posting gains in the late trading hours.

After reaching a 2-years peak level, the EUR/USD pair saw subsequent profit-taking that weighed on its prices and dragged it down. However, on Thursday, the pair’s extra downside pressure was due to the strong U.S. dollar amid better than expected economic data.

The Unemployment Claims from the United States last week dropped to 881K from its previous forecast of 955K and supported the U.S. dollar. The less unemployment claim benefits mean more people rejoined their jobs during the last week in the U.S. and raised hopes for a quick economic recovery.

Moreover, from the European side, at 12:15 GMT, the Spanish Services PMI in August dropped to 47.7 from the forecasted 48.0 and weighed on the shared currency Euro. At 12:45 GMT, the Italian Services PMI for August also dropped to 47.1 from the expected 49.4 and weighed on Euro. AT 12:50 GMT, the French Final Services PMI dropped to 51.5 from the projected 51.9 and weighed on Euro.

However, at 12:55 GMT, the German Final Services PMI rose to 52.5 from the expected 50.8and supported Euro. At 13:00 GMT, the Final Services PMI for the whole bloc in August also rose to 50.5 and showed an expansion against the expectations of 50.1 and supported the Euro that added further in the EUR/USD pair’s gains. At 14:0 GMT, the Retail Sales data from Eurozone dropped to -1.3% in July against the anticipated 1.3% and weighed heavily on Euro.

Most data from Europe on Thursday came in against the local currency and took the pair EUR/USD to its five days lowest level on Thursday. However, in the late trading session, the pair managed to reverse its track and started posting gains. On the other hand, on Thursday, a survey showed that the Eurozone’s rebound from its deepest economic downturn was weakened in August as some countries in the E.U. suffered more than others from the restrictions imposed to curb the spread of the virus.

On Thursday, France’s government detailed its 100 billion euro stimulus plan to erase the coronavirus crises’ economic impact over two years. The billions of euros were lined up in public investments, subsidies, and tax cuts. This added pressure on the single currency Euro and the pair dropped in the first session.

Meanwhile, the countries that rely heavily on tourism like Italy, Spain, and Greece saw a large contraction in the services PMI on Thursday as travel restrictions were put in place to stop the coronavirus spread.

Apart from that, the EUR/USD pair was also under pressure on Thursday because of the latest comments from the Chief ECB Economist, Philip Lane, who said that authorities have started to become uncomfortable with the single currency’s recent appreciation. This not only triggered the profit-taking but also hopes for a new stimulus measure from the European Union to ease the rally of EUR currency. However, the pair EUR/USD managed to find support at the ending hours of Thursday’s trading session as the selling pressure was eased ahead of the NFP data from the U.S.

Daily Technical Levels

Support Pivot Resistance
1.1802 1.1834 1.1879
1.1757 1.1911
1.1726 1.1956

EUR/USD– Trading Tip

As expected, the EUR/USD bounced off over the support level of 1.1795, and now it’s heading further higher until the next target of 1.1890. The pair may find an immediate resistance at 1.1860 level. Conversely, the EUR/USD may find support at 1.1808 and 1.1780 levels. NFP will determine further price action in the pair. 

GBP/USD – Daily Analysis

The GBP/USD pair was closed at 1.32804 after placing a high of 1.33584 and a low of 1.32424. Overall the movement of the GBP/USD pair remained bearish throughout the day. The British Pound fell for a second straight day on Thursday and threatened to reverse the 3-week winning streak on the Bank of England’s rising expectations of negative interest rates.

Recently, the Governor of Bank of England, Andrew Bailey, has said that the central bank could adopt the worst-case scenario’s negative interest rate policy. The scenario pointed towards the second wave of coronavirus and failure to reach a post-Brexit trade deal with the E.U.

According to Andrew Bailey, the use of negative interest rates would be strong in the worst-case scenario instead of using bond buying or quantitative easing, which are considered the central bank’s preferred tools.

He added that the fears of the second wave of coronavirus affected the recovery pace as the key parts of economy operations were under their normal level. He said that he was worried about the weak economic activity in London.

Bailey also highlighted that there was still a huge amount of uncertainty around the effects that the crisis would have on the economy long term. These concerning comments from bailey weighed on a single currency Pound and kept the GBP/USD pair under pressure on Thursday.

Moreover, the U.S. dollar also played an important role in keeping the currency pair GBP/USD on the downside on Thursday after the release of U.S. Unemployment Claims data.

At 17:30 GMT, the Jobless Claims from last week dropped to 881K from the forecasted 955K and supported the U.S. dollar. At 19:00 GMT, the highly awaited ISM non-Manufacturing PMI remained flat with the expectations of 47.0. The strong U.S. dollar then weighed on GBP/USD pair and extended its previous day losses.

Whereas, from the Great Britain side, at 13:30 GMT, the Final Services PMI for August dropped to 58.8 against the anticipated 60.1 and weighed on single currency Sterling. The already weak Sterling weighed on GBP/USD pair, and the pair posted losses on the day.

On the Brexit front, the E.U. chief negotiator Michel Barnier launched another attack on U.K.’s post-Brexit stance and said that the British government sought to have its cake and eat it. He accused the U.K. of failing to engage constructively in talks on the future relationship. He stressed the need to approve an agreement by the end of October to have time for ratification. Barnier claimed that despite the U.K.’s desire for independence from the E.U., in practice, the U.K. was seeking the status quo but without obligations. Barnier’s comments raised concerns over the Brexit deal and weighed on GBP that dragged the currency pair GBP/USD on the downside.

 Daily Technical Levels

Support Pivot Resistance
1.3228 1.3293 1.3344
1.3177 1.3409
1.3112 1.3460

 GBP/USD– Trading Tip

On Friday, the GBP/USD pair is trading bearish at 1.3308 level, set to test the support level of 1.3168 level. The Cable has already violated an upward trendline at 1.3375 level, which is already violated. On the lower side, the GBP/USD may drop further below 1.3358 until the 1.3263 level. The MACD is also supporting selling bias; therefore, we will be looking for selling trades below the 1.3355 level. 

USD/JPY – Daily Analysis

The USD/JPY pair was closed at 106.184 after placing a high of 106.551 and a low of 106.000. Overall the movement of the USD/JPY remained flat yet bullish throughout the day. The USD/JPY pair extended its bullish streak for the 4th consecutive day and rose to a high of 106.5 level on Thursday on positive U.S. jobless claims and services PMI data. However, the pair failed to remain higher and lost most of its daily gains in the late session as the Japanese Yen found demand as a safe-haven.

The U.S. stock market dropped sharply on Thursday, with S&P 500 and the Nasdaq Composite indexes down by 3.5% and 5.05%. The fall in equities was caused by the lack of progress in the next coronavirus stimulus package by the U.S. government and overdue correction.

Moreover, the US-Treasury yields for the 10-year note lost almost 5%, and the U.S. Dollar Index stayed in the positive territory near 92.8 level as the greenback continued to perform higher against its risk-sensitive rival currencies and helped the USD/JPY to limit its fall in the second session.

On the data front, at 17:30 GMT, the Unemployment Claims from last week were dropped to 881K from the projected 955K and supported the U.S. dollar that added further gains in the USD/JPY pair. 

The Revised Non-farm Productivity for the quarter raised to 10.1% from the forecasted 7.3% and weighed on the U.S. dollar. The Revised Unit Labor Costs for the quarter declined to 9.0% from the anticipated 12.0% and pressured on the U.S. dollar. The Trade Balance in July showed a deficit of 63.6B against the expectations of 58,2B deficit and weighed on the U.S. dollar. At 18:45 GMT, the Final Services PMI for August rose to 55.0 from the expected 54.8 and supported the U.S. dollar that added strength in the USD/JPY pair. At 19:00 GMT, the ISM Non-Manufacturing PMI remained flat with the expectations of 47.0 and had almost no effect on the U.S. dollar.

The decrease in Unemployment claim benefits and rise in Final Services PMI gave a push to U.S. dollar and USD/JPY pair gains on Thursday.

On the coronavirus front, 25.8 million people have been reported to be diagnosed from coronavirus globally. Almost 17 million people have been reported to be recovered, while more than 850,000 have reported as dead. On Wednesday, after easing the pandemic restrictions, India reported more than 78000 cases in a single day and surpassed the U.S. for a daily case record of coronavirus.

Australia saw the biggest drop in GDP for the quarter and was pushed into recession for the first time since 1991 amid a pandemic crisis and its effect on the economy. These lingering concerns over the coronavirus kept the safe-haven demand for Japanese yen on board and limited the USD/JPY pair’s gains.


 

Daily Technical Levels

Support Pivot Resistance
105.9300 106.2500 106.5000
105.6800 106.8200
105.3700 107.0700

USD/JPY – Trading Tips

On Friday, the USD/JPY currency pair is trading at 106.077with an immediate resistance level of 106.085 level. Bullish crossover of 106.085 level may drive further buying until the next resistance level of 106.570. On the lower side, the USD/JPY pair may find support at 105.800 and 105.500 levels. Let’s consider buying over 106.100 level as the MACD and RSI also suggest the same. Later today, the eyes will remain on the U.S. NFP figures. Good luck! 

Categories
Forex Signals

AUD/USD Bullish Correction Completed – Brace for Selling! 

The AUD/USD failed to stop its previous session losing streak and dropped below 0.7300 level due to the broad-based U.S. dollar strength, buoyed by the Tuesday’s better-than-expected U.S. manufacturing data. Also weighing on the currency pair was the downbeat data from Australia and China. On the contrary, the market risk-on sentiment, supported by the vaccine hopes and hopes of further U.S. stimulus, becomes the key factor that helped the currency pair limit its deeper losses. 

The AUD/USD failed to stop its previous session losing streak and dropped below 0.7300 level due to the broad-based U.S. dollar strength, buoyed by the Tuesday’s better-than-expected U.S. manufacturing data. Also weighing on the currency pair was the downbeat data from Australia and China. On the contrary, the market risk-on sentiment, supported by the vaccine hopes and hopes of further U.S. stimulus, becomes the key factor that helped the currency pair limit its deeper losses. 

The AUD/USD failed to stop its previous session losing streak and dropped below 0.7300 level due to the broad-based U.S. dollar strength, buoyed by the Tuesday’s better-than-expected U.S. manufacturing data. Also weighing on the currency pair was the downbeat data from Australia and China. On the contrary, the market risk-on sentiment, supported by the vaccine hopes and hopes of further U.S. stimulus, becomes the key factor that helped the currency pair limit its deeper losses. 

At the press time, the AUD/USD is currently trading at 0.7302 and consolidating between 0.7297 and 0.7340. Moving on, the currency pair may find some support as the ongoing rally in the U.S. dollar seems to be short-lived as the doubts remain about the U.S. economic recovery amid the weaker than expected ADP report. Australia’s July month Trade Balance registered another fundamental disappointment for the Australian policymakers. Australia’s July month Trade Balance dropped below 5400M flash forecasts and 8202M prior to the data front. Details suggest that the Imports increased past-1.0% to 7.0% while Exports fell to -4.0% from +3.0% prior.

Across the ocean, China’s Caixin Services PMI rose to 54.00 versus 50.4 expected and 54.1 before August. The same push the composite PMI data to 55.1 versus 54.5 prior. As a result of mixed data from the Aussie and China, the AUD/USD currency pair extends its bearish trajectory for the 3rd-day in a row.

However, the reason for the risk-on market sentiment could be associated with the probabilities of further stimulus and hopes of the coronavirus (COVID-19) vaccine, which tends to underpin the perceived risk currency Australian dollar and helps the pair to limit its deeper losses. It is worth reporting that the AstraZeneca continues its final tests for the coronavirus vaccine. Meanwhile, around 76 rich countries, the global policymakers join to help for the vaccine developments and distribution.

On the contrary, the two biggest economies are at loggerheads after the latest headlines concerning additional sanctions on China diplomats by the U.S. Also fueling the tussle could be the reports suggests Beijing’s embassy in America criticized harshly by the U.S. However, these gloomy headlines could also be considered as the key factor that has been weighed on the Aussi pair.

Despite the risk-on market sentiment and downbeat U.S. data, the broad-based U.S. dollar flashing green on the day supported by Tuesday better-than-expected PMI data, which fueled the hopes of the U.S. economy. However, the U.S. dollar’s bullish bias could be short-lived as doubts remain about the U.S. economic recovery amid Wednesday weaker than expected ADP report. However, the gains in the U.S. dollar became the key factor that kept the currency pair lower. Whereas, the U.S. Dollar Index that measures the greenback against a bucket of 6-major currencies rose by 0.03% to 92.977.

Looking ahead, the market traders will keep their eyes on final German and Eurozone PMI readings, which is scheduled for release on the day. As well as, the Friday’s Nonfarm Payrolls (NFP) will also be key to watch. In the meantime, the updates surrounding the fresh Sino-US tussle, this time over the South China Sea, and the coronavirus (COVID-19) updates, could not lose their importance.


The AUD/USD is trading at 0.7317, having violated the double bottom support level of 0.7337 level. Closing of candles below this level may drive sharp selling until 0.7289 and even below this until 0.7275. Conversely, a bullish crossover of 0.7369 may drive intense buying until the 0.7385 level. Bearish bias may dominate today.

Entry Price – Sell 0.7296

Stop Loss – 0.7336

Take Profit – 0.7256

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 03 – Top Trade Setups In Forex – A Day Before NFP! 

On the news front, the eyes will be on the U.S. ADP Non-farm payroll figures, which may drive price action during the New York session today. Besides, the U.S. Crude Oil Inventories will remain in highlights as economists expect a slight draw in U.S. oil stocks that may drive buying in WTI crude oil.

On the news front, the eyes will be on the U.S. ADP Non-farm payroll figures, which may drive price action during the New York session today. Besides, the U.S. Crude Oil Inventories will remain in highlights as economists expect a slight draw in U.S. oil stocks that may drive buying in WTI crude oil.

On the news front, the eyes will be on the U.S. ADP Non-farm payroll figures, which may drive price action during the New York session today. Besides, the U.S. Crude Oil Inventories will remain in highlights as economists expect a slight draw in U.S. oil stocks that may drive buying in WTI crude oil.

Economic Events to Watch Today  

 

 

EUR/USD – Daily Analysis

The EUR/USD closed at 1.18542 after placing a high of 1.19286 and a low of 1.18219. On Wednesday, Euro fell sharply against the U.S. dollar as the European Central Bank’s growing expectations will roll out additional stimulus after dismal Eurozone PMI data on Tuesday.

The Eurozone data on the previous day suggested that it had slipped into deflation as the prices of main goods were dropping for the first time in four years. As a result, markets were expecting another round of stimulus package from Europe’s central bank, which raised the European stocks higher.

The central bank’s expectations would unleash a new monetary stimulus, raised the global equities, and added pressure on EUR/USD pair. Expansion in more financial asset purchases is expected from ECB to stimulate the pandemic-stricken economy.

As the European Central Bank meeting is coming next week, some members have raised concerns that the Euro currency was rising sharply, and there was a need for more stimulus package in the economy. According to the ECB’s Chief Economist, Philip Lane, the euro currency levels do matter for monetary policy as a stronger currency generally weighs on export growth and curbs import prices that will lead to a slowdown in inflation.

These growing hopes for a fresh round of stimulus measures from ECB came in just after days the Federal Reserve announced its policy shift to tolerate a rise in inflation from its initial target of 2%. Investors interpreted the Fed’s latest decision as the interest rates will remain lower for longer.

These interpretations were also backed by the New York Federal Reserve President John Williams, who said that even talk of raising interest rates was so far off in the future. The hopes for another round of Europe’s stimulus weighed on the Euro currency and hence paired EUR/USD dropped.

On the data front, at 11:00 GMT, the German Retail Sales in July was dropped to -0.9% from the forecasted 0.5% and weighed on single currency Euro. At 12:00 GMT, the Spanish Unemployment Change in August rose to 29.8K from the expected 10.1K and weighed on the shared currency Euro and dragged EUR/USD pair further on the downside.

At 14:00 GMT, the Producer Price Index from Eurozone for July rose to 0.6% from the forecasted 0.5% and supported the Euro currency. Most of the data came in against shared currency, and hence EUR/USD pair suffered losses on Wednesday.

Meanwhile, from the U.S. side, the ADP Non-Farm Employment Change came in as 428K against the expected 1250K and weighed on the U.S. dollar but failed to reverse the EUR/USD pair’s bearish movement. However, the Factory Orders from the U.S. rose to 6.4% from the projected 6.0% and supported the U.S. dollar that added further in the EUR/USD pair’s losses on Wednesday.

Daily Technical Levels

Support Pivot Resistance
1.1805 1.1868 1.1914
1.1759 1.1977
1.1696 1.2024

EUR/USD– Trading Tip

As expected, the EUR/USD continues to extend it’s selling bias to 1.1812 level after violating the support level of 1.1890 level. On the lower side, the EUR/USD may find support at 1.1780 level. Above this, we can expect the EUR/USD to take a bullish correction. But for now, we can see the selling trend in the EUR/USD pair. Today, EUR/USD may find resistance 1.1825. Bearish bias dominates.

GBP/USD – Daily Analysis

GBP/USD pair was closed at 1.33504 after placing a high of 1.34022 and a low of 1.32831. Overall the movement of the GBP/USD pair remained bearish throughout the day. After posting gains for three consecutive days and reaching its highest since December 2019, GBP/USD pair dropped on Wednesday and posted losses on the day. The fall in GBP/USD pair was triggered by the dovish commentary by the Bank of England on Wednesday.

Another reason behind the decreased GBP/USD pair prices was the increased safe-haven demand for the greenback that made the U.S. dollar strong and weighed on the currency pair. On Wednesday, the Governor of Bank of England, Andrew Bailey, said that the E.U.’s strategy to force Britain to follow E.U. rules in the future could be seen by European Union’s refusal to grant cross-border access to investment banking services from London.

European Union has said that as the Britain access to the bloc will end on December 31, the services of investment banks from London to E.U. member states will be blocked. E.U. said that it wanted to review the rules first, and then it will decide how much direct access it will grant all types of U.K. financial activity under its system.

British rules will be compared to the 27-nation bloc’s rules, and then the decision of whether to grant access will take place accordingly.

He also warned that the U.K. economy was facing a record level of uncertainty about its future and a significant risk that growth will be far weaker than recently forecasted. He added that the forecasts made in August were done in the face of huge uncertainty due to the continuous fight against COVID-19, structural economic changes, and stalled Brexit trade talks.

These comments weighed on a single currency British Pound and added in the losses of GBP/USD pair on the day. Meanwhile, the U.S. Dollar rose on Wednesday as the concerns around the U.S. elections and the ongoing US-China tensions have restored the appetite for the safe-haven greenback. 

Despite a sharp decline in the ADP Non-Farm Employment Change in August, the U.S. dollar continued to post gains and weighed on GBP/USD pair. In July from the U.S., the Factory orders were increased to 6.4% from the forecasted 6.0% and supported the U.S. dollar that added further pressure on GBP/USD pair.

From the Great Britain side, at 04:01 GMT, the BRC Shop Price Index for the year dropped to -1.6% in September from the previous -1.3%. At 10:57 GMT, the Nationwide Housing Price Index in August rose to 2.0% from the expected 0.5% and supported the Sterling. At 13:30 GMT, the House Price Index from the U.K. for the year increased to 2.9% from the projected 2.8%.

Furthermore, the BoE Deputy Governor, Ben Broadbent, said on Wednesday that fears that BoE was bailing out the U.K. government by financing its coronavirus surge in public spending were misplaced and the central bank has not lost its credibility.

Just like Broadbent, several BoE officials have sought to explain that the central bank’s decision to ramp up its government bond-buying since the COVID-19 crisis was not to restore monetary financing of the government’s spending push. Moreover, the British Pound also fell on Wednesday as the uncertainty over a post-Brexit trade deal between the U.K. & E.U. continued to weigh on the Sterling. With a lack of progress in trade deal talks, investors were concerned about the British economy’s future, and hence the pair GBP/USD dropped.

 Daily Technical Levels

Support Pivot Resistance
105.9000 106.1100 106.3700
105.6400 106.5800
105.4300 106.8400

 GBP/USD– Trading Tip

The GBP/USD pair is trading bearish at 1.3308 level, set to test the support level of 1.3168 level. The Cable has already violated an upward trendline at 1.3375 level, which is already violated. On the lower side, the GBP/USD pair may drop further below 1.3358 until the 1.3263 level. The MACD is also supporting selling bias; therefore, we will be looking for selling trades below the 1.3355 level. 

USD/JPY – Daily Analysis

The USD/JPY pair was closed at 105.955 after placing a high of 106.150 and a low of 105.589. The USD/JPY pair moved sideways on Tuesday but ended its day with posting gains as the selling pressure against the U.S. dollar was faded away after the release of ISM Manufacturing data and some fresh comments from Fed Governor. 

However, the fading risk sentiment kept the gains in the USD/JPY pair checked after the coronavirus cases started to rise globally. The worldwide toll of cases reached 25 million with the United States on top with 6 million cases on Wednesday. India reported its biggest single-day surge in coronavirus cases of 78,761 on the weekend, while Spain reported a daily toll of more than 8000. After the U.S., Brazil, and India, now Russia has also entered the country with more than 1 million coronavirus cases. Besides, the Scottish government announced restrictions on people traveling from Greece to Scotland due to developing coronavirus cases.

The increasing number of COVID-19 cases decreased the risk appetite and helped safe-haven Japanese Yen to gain traction that weighed on the USD/JPY pair and limit the additional gains in the USD/JPY pair on Tuesday. Moreover, the renewed US-China tensions after Beijing’s new law to impose restrictions on tech export. China forced a ban on the export of tech companies that will require government approval, which will take 30 days approx. 

The move came in against the order of Donald Trump in which he gave 90 days to the TikTok app for sale or transfer of its rights to the U.S. The tensions also supported the Japanese Yen and capped further upside in the USD/JPY pair on Tuesday.

Daily Technical Levels

Support Pivot Resistance
1.3288 1.3346 1.3409
1.3225 1.3467
1.3167 1.3530

USD/JPY – Trading Tips

The USD/JPY currency pair is trading at 106.077with an immediate resistance level of 106.085 level. Bullish crossover of 106.085 level may drive further buying until the next resistance level of 106.570. On the lower side, the USD/JPY pair may find support at 105.800 and 105.500 levels. Let’s consider buying over 106.100 level as the MACD and RSI also suggest the same. Good luck! 

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Forex Signals

USD/JPY Violates Symmetric Triangle Pattern – Buy Signal in Play! 

The USD/JPY has violated the ascending triangle pattern at 106.08 level, and it may head further higher until the next target level of 106.500 level. On the data front, at 04:30 GMT, the Unemployment Rate from Japan dropped to 2.9% from the expected 3.0% in July and supported the Japanese Yen. At 04:50 GMT, the Capital Spending from Japan dropped by -11.3% against the estimated -4.0% and weighed heavily on the Japanese Yen. At -5:30 GMT, the Final Manufacturing PMI for August from Japan expanded to 47.2 against the projected 46.6 and supported the Japanese Yen.

The USD/JPY has violated the ascending triangle pattern at 106.08 level, and it may head further higher until the next target level of 106.500 level. On the data front, at 04:30 GMT, the Unemployment Rate from Japan dropped to 2.9% from the expected 3.0% in July and supported the Japanese Yen. At 04:50 GMT, the Capital Spending from Japan dropped by -11.3% against the estimated -4.0% and weighed heavily on the Japanese Yen. At -5:30 GMT, the Final Manufacturing PMI for August from Japan expanded to 47.2 against the projected 46.6 and supported the Japanese Yen.

The USD/JPY has violated the ascending triangle pattern at 106.08 level, and it may head further higher until the next target level of 106.500 level. On the data front, at 04:30 GMT, the Unemployment Rate from Japan dropped to 2.9% from the expected 3.0% in July and supported the Japanese Yen. At 04:50 GMT, the Capital Spending from Japan dropped by -11.3% against the estimated -4.0% and weighed heavily on the Japanese Yen. At -5:30 GMT, the Final Manufacturing PMI for August from Japan expanded to 47.2 against the projected 46.6 and supported the Japanese Yen.

The strong data from Japan supported the safe-haven Japanese Yen and weighed on the USD/JPY pair that kept the currency pair’s gains on Tuesday. Meanwhile, from the U.S. side, the Final Manufacturing PMI in August dropped to 53.1 from the anticipated 53.6 and weighed on the U.S. dollar. Whereas, the highly awaited ISM Manufacturing PMI for August that was released at 19:00 GMT, advanced to 56.0 against the estimated 54.6, and supported the U.S. dollar that helped the USD/JPY pair’s bullish trend on Tuesday.

Moreover, the Construction Spending from the U.S. in July declined to 0.1% from the expected 1.0% and weighed on the U.S. dollar. The ISM Manufacturing Prices in August increased to 59.5 from July’s 53.2. The Wards Total Vehicle Sales from the U.S. came in as 15.2M against the expected 15M and supported the U.S. dollar added in the gains of USD/JPY.


Furthermore, on Tuesday, the U.S. dollar also gained some traction after the comment from the Fed Governor Lael Brainard, who said that to overcome the impact of coronavirus from the economy, the central bank would have to roll out new efforts. She also said that the Fed should adopt an aggressive approach to live up to its promise of stronger job growth and higher inflation. She also stressed the important role massive asset purchases would play in achieving the new policy shift’s targeted goals.

The USD/JPY prices may continue to trade higher until the 106.550 level. The pair has violated the ascending triangle pattern at 106, and above this, the USD/JPY may trade bullish. The MACD and RSI are both suggesting a buying trend. Let’s consider taking buying trade today. 

Entry Price – Buy 106.199

Stop Loss – 105.799

Take Profit – 106.599

Risk to Reward – 1:1

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

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

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

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

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

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Forex Signals

USD/CHF Enters Overbought Zone – Brace for Selling Signal! 

Today in the early European trading session, the USD/CHF currency pair successfully stopped its previous day bearish moves and hit the 1-1/2-week high level around the 0.9135 level in the last hour. However, the combination of factors helped the currency pair to gain positive traction for the 2nd-consecutive session on the day. The broad-based US dollar strength (supported by the US data’s upbeat release showed that the manufacturing sector activity boosted to a 2-year high in August) could be considered the key factor in supporting the currency pair. 

Today in the early European trading session, the USD/CHF currency pair successfully stopped its previous day bearish moves and hit the 1-1/2-week high level around the 0.9135 level in the last hour. However, the combination of factors helped the currency pair to gain positive traction for the 2nd-consecutive session on the day. The broad-based US dollar strength (supported by the US data’s upbeat release showed that the manufacturing sector activity boosted to a 2-year high in August) could be considered the key factor in supporting the currency pair. 

Today in the early European trading session, the USD/CHF currency pair successfully stopped its previous day bearish moves and hit the 1-1/2-week high level around the 0.9135 level in the last hour. However, the combination of factors helped the currency pair to gain positive traction for the 2nd-consecutive session on the day. The broad-based US dollar strength (supported by the US data’s upbeat release showed that the manufacturing sector activity boosted to a 2-year high in August) could be considered the key factor in supporting the currency pair. 

On the other hand, the prevalent risk-on market mood, backed by the multiple factors, undermined the safe-haven Swiss franc and contributed to the USD/CHF currency pair gains. On the contrary, the US aid package’s uncertainty keeps challenging the risk-on tone, which could drag the currency pair down by underpinning the safe-haven demand in the market. Currently, the USD/CHF currency pair is currently trading at 0.9103 and consolidating in the range between 0.9089 – 0.9137.

The upbeat data from key countries like the US, China, and Japan, have remained supportive of its positive tone. The US upbeat data rekindled hopes of the US economic recovery, which lead to a goodish pick up in the US Treasury bond yields. In turn, this underpinned the US dollar and remained supportive of the bid tone surrounding the USD/CHF currency pair.

At the data front, the August’s ISM Manufacturing Purchasing Managers Index (PMI) increased to 56, against July’s reading of 54.2 and the 54.5 forecasts. A surge in new orders recorded the index climb to its multi-year high. At China’s front, the Caixin manufacturing PMI for August increased to 53.1 from 52.8 in July. Likewise, Japan’s manufacturing PMI rose to 47.2 in August from 45.2.

The broad-based US dollar at the USD front managed to keep its gains throughout the Asian session as the traders still cheering the Upbeat US data. However, the US dollar gains seem rather unaffected by the upbeat market tone and held its gaining streak, at least for now. Thus, the US dollar’s modest gains could be considered the major factor that kept the currency pair higher. Whereas, the dollar index (=USD) rose by 0.16% at 92.390, having hit its lowest since April 2018 of 91.737. However, probabilities that the Fed would keep interest rates lower for longer periods could cap the further gains in the US dollar by holding the USD bulls from placing aggressive bets.

Apart from this, the upbeat market sentiment was being supported by the hopes of the coronavirus (COVID-19) vaccine. The pharmaceutical companies worldwide are going to start their final tests with one of the top candidates developed by AstraZeneca beginning its trials starting from today. This, in turn, boosted the market trading sentiment and extended support to the currency pair.

On the negative side, the on-going conflict between the world’s two largest economies still does not show any sign of slowing down as both nations do not refrain from delivering an aggressive statement. However, the latest US Secretary of State Mike Pompeo’s latest comments further heated the relation, which could be considered the key factor that capped further upside momentum in the currency pair.

The traders will also keep their eyes on the US ADP Employment Change for August, which is expected 950K against 167K prior. Across the pond, the major comments from BoJ’s Wakatabe will be key to watch.


The USD/CAD is trading at 0.9118, holding right below an immediate resistance at 0.9136 level. On the lower side, the USD/CAD may drop further to complete 38.2% Fibonacci retracement at 0.9080 and even further lower until 61.8% Fibonacci retracement at 0.9060 level. 

Entry Price – Sell 0.91063
Stop Loss – 0.91463
Take Profit – 0.90663
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 02 – Top Trade Setups In Forex – Eyes on ADP Non-Farm Employment! 

On the news front, the eyes will be on the U.S. ADP Non-farm payroll figures, which may drive price action during the New York session today. Besides, the U.S. Crude Oil Inventories will remain in highlights as economists expect a slight draw in U.S. oil stocks that may drive buying in WTI crude oil.

On the news front, the eyes will be on the U.S. ADP Non-farm payroll figures, which may drive price action during the New York session today. Besides, the U.S. Crude Oil Inventories will remain in highlights as economists expect a slight draw in U.S. oil stocks that may drive buying in WTI crude oil.

On the news front, the eyes will be on the U.S. ADP Non-farm payroll figures, which may drive price action during the New York session today. Besides, the U.S. Crude Oil Inventories will remain in highlights as economists expect a slight draw in U.S. oil stocks that may drive buying in WTI crude oil.

Economic Events to Watch Today  

 

 

EUR/USD – Daily Analysis

The EUR/USD pair was closed at 1.19117 after placing a high of 1.20113 and a low of 1.19010. On Tuesday, the EUR/USD pair rose above 1.2000 level in earlier trading session but failed to keep the level and dropped in the late session to post losses. The gains in the first half of the day were associated with the broad-based U.S. dollar weakness; however, in the late session, the losses were associated with the dollar strength triggered by better than expected ISM Manufacturing PMI.

The upward momentum that took the pair above 1.200 level on Tuesday was derived from the broad-based U.S. dollar weakness followed by the new policy shift from Federal Reserve. The improved risk sentiment due to vaccine hopes also helped the pair reach its highest since May 2018. However, the gains were limited as the pair started to fell in the second half of the day.

The losses in the EUR/USD pair were also encouraged by the fading market risk sentiment due to increased coronavirus cases worldwide. On Wednesday, the number of cases reached 6 million in the U.S., while India reported the biggest single-day jump of 78,761 in coronavirus cases over the weekend, whereas the daily case count reached 8000 in Spain. Meanwhile, after the U.S., Brazil, and India, now Russia also became the fourth country to exceed 1 million cases of COVID-19.

Furthermore, to prevent the second wave of coronavirus, the Scottish government announced new restrictions on travelers from Greece to Scotland; quarantine restrictions will be imposed on people traveling from Greece to Scotland due to emerging coronavirus cases. These tensions weighed on market risk sentiment and added in the further losses of EUR/USD on Tuesday.

Daily Technical Levels

Support Pivot Resistance
1.1870 1.1941 1.1981
1.1829 1.2053
1.1758 1.2093

EUR/USD– Trading Tip

The EUR/USD pair fell to trade at 1.1901 level, having immediate support at 1.1891 level, which is extended by double bottom level. Violation of 1.1891 level may extend selling until 1.1845 support. On the higher side, the resistance stays at 1.1935 and 1.1978 level for EUR/USD. Price action will highly depend upon the U.S. Advance NFP figures today.

GBP/USD – Daily Analysis

The GBP/USD pair was closed at 1.33830 after placing a high of 1.34820 and a low of 1.33561. Overall the movement of GBP/USD remained flat yet bullish throughout the day. In the first half of the day, the pair rose and extended its gains to reach its highest since December 2019, near 1.3500 level on the back of selling bias surrounding the U.S. dollar. However, most of its early gains were lost in the second half of the day after the release of ISM Manufacturing PMI data on Tuesday.

In the early trading session, the equity markets moved in a higher direction after releasing China’s manufacturing PMI data from Caixin that showed an expansion in the industry by 53.1 against the estimated 52.6. It showed that the world’s second-largest economy was improving and raised the chances for quick economic recovery.

The improvement in China’s economy when the U.S. is suffering against the coronavirus pandemic increased the risk sentiment and weighed on the U.S. dollar that pushed the risk-sensitive currency pair GBP/USD higher on board. However, USD and risk appetite’s selling bias did not remain in the market for long and started to fade in the late session as the macroeconomic data from both the U.K. & U.S. came in against GBP/USD pair on Tuesday.

At 13:30 GMT, the Final Manufacturing PMI from the U.K. in August dropped to 55.2 from the forecasted 55.3 and weighed on GBP. The M4 Money Supply in July from Britain also dropped to 0.9% from the expected 1.2% and weighed on the Sterling. The Mortgage Approvals, however, rose to 66K against the estimated 55K and supported GBP. The Net Lending to Individuals remained flat with the expectations of 3.9B. Most data from Great Britain was against British Pound, and hence, the GBP/USD pair suffered and lost some of its gains on the day.

On the other hand, from the U.S. side, the highly awaited ISM Manufacturing PMI was released at 19:00 GMT, which exceeded the expectations of 54.6 and came in as 56.0 and supported the U.S. dollar. The strong U.S. dollar added weight on the GBP/USD pair that lost most of its daily gains but still ended its day with a slightly bullish trend.

Apart from macroeconomic data, the progress towards Brexit deal also drove the GBP/USD pair on Tuesday when PM Boris Johnson’s spokesman said that Britain wanted to agree simpler parts of the future relationship with the E.U. first to create momentum in the negotiations. While the E.U. has been insisting on reaching a consensus on difficult areas in talks such as E.U. state aid before any other negotiation area, even legal texts.

However, the next round of talks is scheduled for next week, but before that, another meeting was scheduled for Tuesday ahead of formal negotiation resumption next Monday. Michel Barnier went to London for informal talks with his U.K. counterpart, David Frost, as the transition period is near to end. It is yet to see how the informal talks went between both parties and discussed in the next round of formal meetings. Traders are cautiously waiting for some direction towards Brexit-deal.

 Daily Technical Levels

Support Pivot Resistance
105.6400 105.9000 106.2100
105.3300 106.4700
105.0700 106.7800

 GBP/USD– Trading Tip

The GBP/USD pair is trading bearish at 1.3358 level, set to test the support level of 1.3358 level. The Cable has already violated an upward trendline at 1.3375 level, which is already violated. On the lower side, the GBP/USD pair may drop further below 1.3358 until the 1.3263 level. The MACD is also supporting selling bias; therefore, we will be looking for selling trades below the 1.3355 level. Lets brace for ADP NFP figures for better price action. 

USD/JPY – Daily Analysis

The USD/JPY pair was closed at 105.955 after placing a high of 106.150 and a low of 105.589. The USD/JPY pair moved sideways on Tuesday but ended its day with posting gains as the selling pressure against the U.S. dollar was faded away after the release of ISM Manufacturing data and some fresh comments from Fed Governor. 

However, the fading risk sentiment kept the gains in the USD/JPY pair checked after the coronavirus cases started to rise globally. The worldwide toll of cases reached 25 million with the United States on top with 6 million cases on Wednesday. India reported its biggest single-day surge in coronavirus cases of 78,761 on the weekend, while Spain reported a daily toll of more than 8000. After the U.S., Brazil, and India, now Russia has also entered the country with more than 1 million coronavirus cases. Besides, the Scottish government announced restrictions on people traveling from Greece to Scotland due to developing coronavirus cases.

The increasing number of COVID-19 cases decreased the risk appetite and helped safe-haven Japanese Yen to gain traction that weighed on the USD/JPY pair and limit the additional gains in the USD/JPY pair on Tuesday. Moreover, the renewed US-China tensions after Beijing’s new law to impose restrictions on tech export. China forced a ban on the export of tech companies that will require government approval, which will take 30 days approx. The move came in against the order of Donald Trump in which he gave 90 days to the TikTok app for sale or transfer of its rights to the U.S. The tensions also supported the Japanese Yen and capped further upside in the USD/JPY pair on Tuesday.

Daily Technical Levels

Support Pivot Resistance
1.3330 1.3407 1.3459
1.3279 1.3535
1.3202 1.3587

USD/JPY – Trading Tips

The USD/JPY currency pair is trading at 106.077with an immediate resistance level of 106.085 level. Bullish crossover of 106.085 level may drive further buying until the next resistance level of 106.570. On the lower side, the USD/JPY pair may find support at 105.800 and 105.500 levels. Let’s consider buying over 106.100 level as the MACD and RSI also suggest the same. Good luck! 

Categories
Forex Signals

Bullish EUR/JPY Setup Reverses – Quick Update on Manually Closed Signal! 

The EUR/JPY is trading at 126.700 level, reversing below an immediate resistance level of 127.073. The closing of candles below 127 level is likely to drop until 126.450 level. The single currency Euro could be the reports that suggested that Germany avoided a sub-zero inflation print in August despite the negative base effect from low energy prices and VAT cut, which eventually gave support to the shared currency. 

The EUR/JPY is trading at 126.700 level, reversing below an immediate resistance level of 127.073. The closing of candles below 127 level is likely to drop until 126.450 level. The single currency Euro could be the reports that suggested that Germany avoided a sub-zero inflation print in August despite the negative base effect from low energy prices and VAT cut, which eventually gave support to the shared currency. 

The EUR/JPY is trading at 126.700 level, reversing below an immediate resistance level of 127.073. The closing of candles below 127 level is likely to drop until 126.450 level. The single currency Euro could be the reports that suggested that Germany avoided a sub-zero inflation print in August despite the negative base effect from low energy prices and VAT cut, which eventually gave support to the shared currency. 

In the meantime, the Spanish Economy Minister Nadia Calvino’s positive comments about the Spanish economy also underpinned the single currency and contributed to the currency pair gains. As per the keywords, “The economy is expanding currently at a pace of more than 10% in the 3rd-quarter”. He further added, “Spanish banking sector is solvent.” However, the single currency cheered the Spanish economy’s upbeat outlook, as the EUR/USD pair set to beak 1.20 level.

On the contrary, the number of coronavirus cases increased to 242,381, while the total number of deaths reached 9,298. Whereas, the cases rose by 610 in Germany yesterday as per the German disease and epidemic control center, Robert Koch Institute (RKI) report. The coronavirus fears could be considered the key factor that cap further upside momentum for the currency pair.

Across the ocean, the on-going Japanese political uncertainty failed to give any major support to the currency, at least for now. Japan’s ruling Liberal Democratic Party (LDP) General Council Chairman Shunichi Suzuki stated that leadership would be conducted in a simplified rather than full-scale format respecting the urgency. This looming uncertainty initially weighed on the Japanese yen currency and gave some support to the major, but the support was short-lived as the US dollar continues losing its ground and becomes the major factor that keeps the currency pair down.


We opened a buy trade in the EUR/JPY currency pair at 126.94 with a stop loss of 127.34 and take a profit of 126.54. But the recent Doji candles below 127 level may cause a bearish reversal. Therefore, we decided to close the trade a bit early before it reverses the other way. Anyways, we can look for buying trade again around 126.250 level. Stay tuned, good luck! 

Categories
Forex Signals

USD/CAD Bouncing Off Support – Downward Channel Pressures!

During Tuesday’s European trading session, the USD/CAD currency pair extended its early-day losses and dropped to the intra-day low below the mid-1.3000 level, mainly due to the broad-based U.S. dollar weakness. The U.S. dollar was down over bets on continuous low U.S. Rates. The U.S. Federal Reserve’s introduced a new policy framework on August 28, which fueled speculations that rates in the U.S. will continue to remain low. This, in turn, undermined the greenback and contributed to the currency pair losses.

During Tuesday’s European trading session, the USD/CAD currency pair extended its early-day losses and dropped to the intra-day low below the mid-1.3000 level, mainly due to the broad-based U.S. dollar weakness. The U.S. dollar was down over bets on continuous low U.S. Rates. The U.S. Federal Reserve’s introduced a new policy framework on August 28, which fueled speculations that rates in the U.S. will continue to remain low. This, in turn, undermined the greenback and contributed to the currency pair losses.

During Tuesday’s European trading session, the USD/CAD currency pair extended its early-day losses and dropped to the intra-day low below the mid-1.3000 level, mainly due to the broad-based U.S. dollar weakness. The U.S. dollar was down over bets on continuous low U.S. Rates. The U.S. Federal Reserve’s introduced a new policy framework on August 28, which fueled speculations that rates in the U.S. will continue to remain low. This, in turn, undermined the greenback and contributed to the currency pair losses.

The reason for the sharp declines in the currency pair could also be attributed to the mild gains in the crude oil prices, which underpinned the commodity-linked currency, the Loonie, and contributed to the currency pair’s declines. The USD/CAD currency pair is currently trading at 1.2999 and consolidating between 1.2993 – 1.3048.

Despite the US-China tussle, the global market risk sentiment remained well supported by optimism over a possible coronavirus vaccine. Besides this, the positive comments from the American Treasury Secretary Steve Mnuchin boosted the hopes of the U.S. stimulus package, which also exerted a positive impact on the trading sentiment and made the U.S. dollar unable to put any safe-haven bids.

At the USD front, the broad-based U.S. dollar remained depressed as the investors continue to sell U.S. dollars on the dovish Fed’s back. The Federal Reserve’s new policy structure keeps the doors open that interest rates in the U.S. will continue to remain low compared to other countries, which support the U.S. dollar under pressure. The losses in the U.S. dollar kept the currency pair lower. As a result, the U.S. dollar hit the 28-month low while declined to 91.99 despite the Dallas Fed Manufacturing Business Index growing beyond -3 to +11 in August. Whereas, the U.S. Dollar Index Futures that tracks the greenback against a bucket of other currencies dropped by 0.21% to 91.938 by 10:07 PM ET (3:07 AM GMT).

Moving forward, the market traders will keep their eyes on August’s U.S. manufacturing activity data, which is a schedule` to be released later in the day. The U.S. durable goods and employment data will also be key to watch. In the meantime, the updates surrounding the fresh Sino-US tussle, this time over the South China Sea, and the coronavirus (COVID-19) updates, could not lose their importance.


The USD/CAD is trading at 1.3009 level, having violated the support level of 1.3050 support level, which is now working as a resistance. On the lower side, the pair is likely to find support at 1.2975 level. The USD/CAD can drop further until the next support area of 1.2975 level. The MACD and RSI are also supporting selling, while 50 periods EMA also suggests a selling trend in the USD/CAD pair. Let’s consider selling below 1.3050 level today. Keep following Forex. Academy for quick trading signals. Good luck!

Categories
Forex Market Analysis

Daily F.X. Analysis, September 01 – Top Trade Setups In Forex – Dollar Weakens Amid NFP Forecast! 

On the news front, the eyes will be on the series of economic events like Manufacturing PMI data from Europe, the U.K., and the U.S. Economy. Overall, almost all of the events are expected to report neutral results. Therefore, any surprisingly bad or good data may drive some price action in the market today.

On the news front, the eyes will be on the series of economic events like Manufacturing PMI data from Europe, the U.K., and the U.S. Economy. Overall, almost all of the events are expected to report neutral results. Therefore, any surprisingly bad or good data may drive some price action in the market today.

On the news front, the eyes will be on the series of economic events like Manufacturing PMI data from Europe, the U.K., and the U.S. Economy. Overall, almost all of the events are expected to report neutral results. Therefore, any surprisingly bad or good data may drive some price action in the market today.

Economic Events to Watch Today  

 

 

EUR/USD – Daily Analysis

The EUR/USD closed at 1.19359 after placing a high of 1.19659 and a low of 1.18841. The EUR/USD pair continued its bullish trend for the second day and rose to its highest since August 18 on Monday amid broad-based U.S. dollar weakness. Every month, the currency pair EUR/USD rose for the 4th consecutive month in August. The improved risk sentiment followed the positive momentum in the EUR/USD pair in the market amid a rise in the U.S. stock futures.

 On Monday, the U.S. stock futures opened the day with modest gains as the market was on track to rack up their best August in more than 30 years. The upward momentum in stocks came after the S&P 500 and NASDAQ closed at an all-time high on Friday, with the former looking set to record its most robust August performance in 34 years.

The rally in the stock market was backed by the improved risk sentiment powered by massive monetary and fiscal stimulus in recent months that offset the concerns over the outlook of economic recovery from the coronavirus pandemic. Besides, the optimism around the vaccine development and treatments for COVID-19 and the robust demand for tech stocks also boosted the risk sentiment.

During the previous week, the Federal Reserve Chairman Jerome Powell shifted the policy to average inflation targeting that allowed inflation to surpass the 2% target. This shift raised concerns that interest rates were locked near-zero for as much as five years and weighed heavily on the U.S. dollar. The weak U.S. dollar helped EUR/USD to post gains on Monday.

Meanwhile, the German Prelim CPI in August dropped to -0.1% from the anticipated 0.0% and weighed on Euro on the data front. The Spanish Flash CPI fell in August to -0.5% from the July’s -0.6%. The Italian Prelim CPI in August came in line with the expectations of 0.3%. Most data from the European side came against Euro and limited the additional gains in EUR/USD pair on Monday.

While from the U.S. side, the Fed Vice Chair, Richard Clarida said on Monday that Federal Reserve would turn to discuss the next possible steps in the U.S. central bank’s fight against coronavirus induced economic fallout as a new policy framework has been set in place. The possible steps include linking interest rates directly with a return to full employment and possible expansion in monthly asset purchases to aid the economy through the COVID-19 crisis further.

Furthermore, the risk sentiment was also boosted by the news that the highly awaited Oxford vaccine will begin its phase-3 trials in the United States on Tuesday. This also helped EUR/USD pair to post gains on Monday.

Whereas, the World Health Organization pointed out encouraging signs that countries in Europe could deal with the coronavirus outbreak, despite the increase in cases since lockdown measures were lifted. According to a Senior Advisor to the Director-General at WHO, Bruce Aylward said that Europe has learned how to identify, isolate, and quarantine. It also helped raise the local currency Euro and added further in EUR/USD pair gains.

Daily Technical Levels

Support Pivot Resistance
1.1891 1.1929 1.1975
1.1846 1.2012
1.1808 1.2058

 EUR/USD– Trading Tip

The EUR/USD is trading sharply bullish amid the weaker dollar, leading EUR/USD pair towards 1.1993 level. The EUR/USD pair has violated the resistance level of 1.1960 level, which is now working as a support for Eur. On the upper side, the pair may find resistance at 1.2025 and 1.2065 levels today. The bullish bias remains dominant.

GBP/USD – Daily Analysis

The GBP/USD closed at 1.33651 after placing a high of 1.33956 and a low of 1.3309. Overall the movement of the GBP/USD pair remained bullish throughout the day. The GBP/USD pair extended its previous day’s bullish streak on Monday and posted gains for the third consecutive month on August amid broad-based U.S. dollar weakness and improved risk-on market sentiment.

The risk-sensitive British Pound gained on Monday due to many factors, including the dovish policy shift from the U.S. Federal Reserve, development in vaccine & treatments of COVID-19. At the same time, some lingering tensions in US-China kept the pair’s gains limited.

On Friday, the U.S. Federal Reserve shifted to a dovish policy that allowed inflation to pass over the 2% target, which means continued low-interest rates for almost five years. This weighed on the U.S. dollar and helped GBP/USD to post gains on Monday.

Meanwhile, the market sentiment was also powered by the positive headlines from the vaccine front as a possible virus vaccine made by Oxford has announced to start its phase-3 trials from Tuesday. Moreover, the US-listed Chinese tech companies were heading to Hong Kong exchange from New York Exchange amid increased US-China dispute. This weighed on market sentiment and kept a check on additional gains in GBP/USD pair.

Whereas, on the Brexit front, the U.K. Government has said that the European Union was making Brexit talks unnecessarily difficult after France accused the U.K. of deliberately stalling in negotiations.

In last week, U.K. and E.U. ended their latest round of negotiation with very little progress due to warnings of no-deal Brexit if issues did not settle within a few weeks. Only four months have left until the transition period ends, and both sides have failed to resolve their issues and are still stuck on various points, including fisheries and state aid policy.

Recently French Foreign Minister Jean-Yves Le Drian has blamed the U.K. for the deadlock and said that the failure in progress in talks was because of the United Kingdom’s intransigent and unrealistic attitude. Whereas, the U.K. has said that it has been clear from the outset about the U.K. approach’s principles. A spokeswoman said that the U.K. seeks a relationship that respects their sovereignty and has a free trade agreement the E.U. has with like-minded countries.

E.U. still insists not only that the U.K. must accept continuity with E.U. state aid and fisheries policy but also that the U.K. must agree before any further work can be done un any other area of negotiation. This also includes the legal texts that make in unnecessarily difficult to make progress. Next week, another round of talks will occur, and investors are looking forward to it for fresh clues.

 Daily Technical Levels

Support Pivot Resistance
1.3314 1.3355 1.3409
1.3260 1.3450
1.3219 1.3504

 GBP/USD– Trading Tip

The GBP/USD is trading with a neutral bias below an immediate resistance level of 1.3425 level. Closing of candles below 1.3420 level is likely to drive selling until the 38.2% Fibonacci support level of 1.3350 and 61.8% Fibonacci support level of 1.3305 level. The MACD has also crossed below 0, supporting selling bias in the GBP/USD pair. On the higher side, a bullish breakout of 1.3420 level can lead the Cable towards 1.3511 level. Let’s consider taking buying trades over 1.3350 level today.  

USD/JPY – Daily Analysis

The USD/JPY pair was closed at 105.901 after placing a high of 106.094 and a low of 105.208. The USD/JPY pair moved in an upward direction on Monday despite the broad-based U.S. dollar weakness. The pair, which posted a loss of more than100 pips on Friday amid the resignation of Japanese Prime Minister Shinzo Abe, recovered about half of the previous losses on Monday.

The risk-on market sentiment made it difficult for the safe-haven Japanese Yen to find demand on Monday and helped pair USD/JPY moved higher on board. The heightened optimism for an effective coronavirus treatment and the U.S. Food & Drug Administration’s decision to fast-track vaccine approval added in the risk-sentiment. Besides, the news that the Oxford vaccine will also start its phase-3 trials on the next day also powered the risk sentiment and weighed on JPY that pushed the USD/JPY pair even higher at the start of the week. 

However, with the lingering tensions between the U.S. & China, the US-listed Chinese tech companies were preferring the Hong Kong Exchange with Alibaba affiliate Ant Group, one of the most highly predicted initial public offerings ready for a dual listing in Shanghai and Hong Kong. This kept the additional gains in USD/JPY limited on Monday.

The U.S. dollar was under heavy selling pressure on Monday amid U.S. Dollar Index slumped to more than two years, the lowest level at 91.99.

The pressure surrounding the greenback was increased in the absence of any significant fundamentals on Monday, and the market kept following the strategy of a policy shift from the Federal Reserve on Friday.

Meanwhile, on Monday, Vice Chairman Richard Clarida explained that as Federal Reserve has shifted from its previous policy and has set a new policy framework, the central bank’s focus will now shift towards the next promises made by it to fight against the coronavirus induced economic slump.

Fed made promises to link interest rates to the direct return of full employment and increase the monthly assets purchases to boost the economy through the economic crisis followed by the coronavirus pandemic.

On the other hand, at 04:50 GMT, the Prelim Industrial Production in July increased to 8.0% from the expected 5.0% and supported the Japanese Yen. The Retail Sales for the year from Japan dropped to -2.8% from the forecasted -1.7% and weighed on the Japanese Yen that pushed the pair USD/JPY even higher on board.

At 10:00 GMT, the Consumer Confidence from Japan in August increased to 29.3 against the expected 28.7 and supported the Japanese Yen. At 10:02 GMT, the Housing Starts came in as -11.4% against the anticipated -12.0% and supported the Japanese Yen but failed to reverse the USD/JPY pair’s bullish movement.

Daily Technical Levels

Support Pivot Resistance
105.4200 105.7600 106.2300
104.9500 106.5700
104.6200 107.0300

USD/JPY – Trading Tips

The USD/JPY is trading within a sideways range of 105.866 to 105.200 range. The pair entered into the oversold zone previously, but now it has completed 23.6% Fibonacci retracement, and above this, the next target is likely to be found around 105.870. The MACD has crossed over 0 and has entered into the buying zone. Bullish bias seems dominant in the market today. Therefore, we may see USD/JPY prices soaring towards 38.2% Fibo levels of 105.870. Buying can be seen at over 105.200 level today. Good luck! 

Categories
Forex Signals

USD/JPY Heads for 61.8% Fibonacci Retracement 

During Monday’s European trading session, the USD/JPY currency pair extended its previous session gains. They remained closer to 106.00 level due to the risk-on market tone, backed by the enthusiasm over a potential vaccine and medicine for the extremely contagious coronavirus disease. As well as, the better-than-expected Chinese Manufacturing and Services PMI data also played its positive role in underpinning the market tone, which eventually weakened the demand for the safe-haven Japanese yen. The receding worries over the Japanese political scenario could also be another factor involved in currency pair losses. 

During Monday’s European trading session, the USD/JPY currency pair extended its previous session gains. They remained closer to 106.00 level due to the risk-on market tone, backed by the enthusiasm over a potential vaccine and medicine for the extremely contagious coronavirus disease. As well as, the better-than-expected Chinese Manufacturing and Services PMI data also played its positive role in underpinning the market tone, which eventually weakened the demand for the safe-haven Japanese yen. The receding worries over the Japanese political scenario could also be another factor involved in currency pair losses. 

During Monday’s European trading session, the USD/JPY currency pair extended its previous session gains. They remained closer to 106.00 level due to the risk-on market tone, backed by the enthusiasm over a potential vaccine and medicine for the extremely contagious coronavirus disease. As well as, the better-than-expected Chinese Manufacturing and Services PMI data also played its positive role in underpinning the market tone, which eventually weakened the demand for the safe-haven Japanese yen. The receding worries over the Japanese political scenario could also be another factor involved in currency pair losses. 

On the contrary, the broad-based U.S. dollar weakness, triggered by the risk-on market sentiment and downbeat prints of America’s Core PCE data, became the key factor that capped further upside momentum for the currency pair. In the meantime, the mixed Japan data was largely ignored by the currency pair bulls. At this moment, the USD/JPY currency pair is currently trading at 105.92 and consolidating in the range between 105.30 – 105.97.

At the data front, the preliminary Industrial Production climbed significantly past-1.2% forecast and 1.9% before print the 8.0% mark on MoM. Meanwhile, the annual figures were downbeat as 16.1% contraction against -15.7% expected. Moreover, Retail Sales fell 3.3% on MoM and 2.8% on YoY against 8.0% and 2.4% respective forecasts.

Apart from this, the reason for the upbeat market sentiment could be associated with the release of better-than-expected Chinese Manufacturing and Services PMI prints, which eventually raised hopes about the global recovery from the pandemic. However, the risk sentiment was further bolstered by the headlines that suggested a rush towards a vaccine. Besides this, the U.S. stimulus package’s probabilities also boosted the risk sentiment, which tends to weaken the safe-haven Japanese yen. The opposition Democratic Party voted in the favor to take a $1.3 trillion offer, which kept the market traders satisfied. On the contrary, the market trading sentiment relatively unaffected by the long-lasting US-China tussle. 

Also supporting the market risk-tone was Powell’s new monetary policy framework, which fueled expectations of an extended period of low-interest rates and weighed on the U.S. dollar.

As a result of the upbeat market sentiment, the broad-based U.S. dollar failed to gain any positive traction on the day. The losses could also be associated with the Fed Chair Jerome Powell’s dovish signals at the Jackson Hole Symposium. However, the losses in the U.S. dollar became the key factor that kept the currency pair’s gain limited. Whereas, the U.S. Dollar Index that tracks the greenback against a basket of other currencies dropped by 0.09% to 92.293 on the day.

 

Looking ahead, the market traders will keep their eyes on the speech by Federal Reserve Governor Richard Clarida. Japan’s Final Manufacturing PMI will also be key to watch. In the meantime, the updates surrounding the fresh Sino-US tussle, this time over the South China Sea and the coronavirus (COVID-19) updates, could not lose their importance.


The USD/JPY is trading with a bullish bias at 106; it’s expected to trade higher until 50% and 61.8% Fibonacci retracement at 106.100 and 106.300 levels. The MACD is also a signaling buying trend in the USD/JPY pair. We have already closed the buying signal in green pips as the market is lacking volatility. Let’s brace to buy again over 105.740 level today. Good luck! 

Categories
Forex Market Analysis

Daily F.X. Analysis, August 31 – Top Trade Setups In Forex – Trading Choppy Sessions!   

On the news side, the eyes will be on European Spanish and German CPI data, which are expected to report a mixed figure. Later the Italian Prelim CPI is expected to report slightly positive data that may support EUR. Let’s take a look at the trade setups.

On the news side, the eyes will be on European Spanish and German CPI data, which are expected to report a mixed figure. Later the Italian Prelim CPI is expected to report slightly positive data that may support EUR. Let’s take a look at the trade setups.

On the news side, the eyes will be on European Spanish and German CPI data, which are expected to report a mixed figure. Later the Italian Prelim CPI is expected to report slightly positive data that may support EUR. Let’s take a look at the trade setups.

Economic Events to Watch Today  

 


 

EUR/USD – Daily Analysis

The EUR/USD pair was closed at 1.19054 after placing a high of 1.19196 and a low of 1.18108. Overall the movement of the EUR/USD pair remained bullish throughout the day. After moving sidelines and under pressure for two days, EUR/USD pair surged on Friday and posted gains on the back of broad-based U.S. dollar weakness from the dovish comments from the highly awaited Jerome Powell’s speech. However, the gains remain limited due to rising coronavirus cases and fears of the second wave in Europe.

The Government of Europe has re-imposed restrictions on citizens and renewed quarantine measures for some travelers. In response to these renewed restrictions, thousands of people took to the streets of Berlin against it. Police in Berlin arrested 300 demonstrators during the protests against Germany’s coronavirus restrictions.

On Friday, France made a larges jump since May 16 and reported 7462 new coronavirus cases. Germany reported around 1737 cases and three deaths. Italy reported 146 cases on Friday, the largest since April 1, and Spain announced 9779 cases on August 28. The resurgence of coronavirus in Europe came near when every European country was planning to start schooling from next week. Now, fears for a renewed spike in cases exacerbate as the schools’ time has come near. These lingering fears have kept the market sentiment under pressure and gains in EUR/USD limited on Friday.

Meanwhile, on the data front, at 11:00 GMT, the German GfK Consumer Climate in August declined to -1.8 from the projected 1.0 and weighed on single currency Euro. At 11:03 GMT, the German Import Prices for July rose to 0.3% from the expected 0.2% and supported Euro added in the currency pair’s gains.

At 11:45 GMT, the French Consumer Spending in July fell to 0.5% from the anticipated 1.2% and weighed on Euro. For August, the French Prelim CPI came in as -0.1% against the expected -0.2% and supported Euro and added in the gains of EUR/USD. The French Prelim GDP for the second quarter came in line with the expectations of -13.8%.

Daily Technical Levels

Support Pivot Resistance
1.1902 1.1904 1.1908
1.1898 1.1910
1.1895 1.1914

 EUR/USD– Trading Tip

The EUR/USD is trading slightly bullish at 1.1900 level, having an immediate resistance at 1.1918 level and support at 1.1896 level. On the higher side, a bullish breakout of the 1.1920 level can trigger buying until 1.1955 level. Conversely, a bearish breakout of 1.1896 level can drive selling until 1.1835 support. 

GBP/USD – Daily Analysis

The GBP/USD pair was closed at 1.33505 after placing a high of 1.33564 and a low of 1.31861. Overall the movement of GBP/USD pair remained bullish throughout the day. After moving sideways on Thursday, GBP/USD pair posted strong gains on the back of supportive comments from Governor of Bank of England at Jackson Hole Symposium and broad-based U.S. dollar weakness.

On Friday, the GovernorBank of England Governor said that the central bank was not out of power to support the economy. This statement was followed by the dramatic shock caused by the coronavirus pandemic.

In a speech to Jackson Hole symposium, Andrew Bailey told that the bank has more ammunition left to support the economy. He also said that the major bond-buying drives had been proved more effective in the major economic crisis caused by the pandemic.

He informed that the central bank appreciated the need to keep enough headroom to deal with future shocks. He said that the bank still has a range of fiscal tools, including the negative interest rates, and there was no need to tighten monetary policy.

In March, the Governor took over the bank and almost immediately oversaw a 300 billion pounds bond-buying program and a cut in interest rate to a record low of 0.1%. After these comments from the Governor of Bank of England, the GBP/USD pair surged to the highest level since December 15, 2019.

The gains in GBP/USD pair were also supported by the weakness in the U.S. dollar that was derived from the dovish comments from the Chairman of Federal Reserve Jerome Powell on Thursday. According to Powell, the inflation will remain at 2% average for some time that increased hopes for a entended period of loose monetary policy by the central bank and weighed on local currency.

The U.S. dollar weakness helped GBP/USD pair to post extra gains, and hence, the pair reached the highest of more than eight months. There was no macroeconomic release from the U.K. side on the data front, but from the U.S. side, at 17:30 GMT, the Core PCE Price Index fell to 0.3% in July from the anticipated 0.5% and weighed on U.S. dollar. The Personal Spending rose to 1.9% in July from the projected 1.5% and supported the U.S. dollar. At 18:05 GMT, the Chicago PMI came in line with the anticipations of 51.0 in August. At 19:00 GMT, the Revised UoM Consumer Sentiment rose to 74.1 from the projected 72.8 and supported the U.S. dollar.

 Daily Technical Levels

Support Pivot Resistance
105.3400 105.5700 105.7800
105.1300 106.0100
104.8900 106.2300

 GBP/USD– Trading Tip

The AUD/USD pair is trading with a neutral bias below an immediate resistance level of 1.3365 level. Closing of candles below 1.3365 level is likely to drive selling until 38.2% Fibonacci support level of 1.3280 and 61.8% Fibonacci support level of 1.3250 level. The MACD has also crossed below 0, supporting selling bias in the GBP/USD pair. Let’s consider taking selling trades below 1.3365 level today.  

USD/JPY – Daily Analysis

The USD/JPY pair was closed at 105.351 after placing a high of 106.945 and a low of 105.200. Overall the movement of the USD/JPY pair remained bearish throughout the day. The USD/JPY pair rose to near ten days the highest level on Friday near 107.00 level but failed to cross the resistance level and dropped on the back of broad-based U.S. dollar weakness and posted strong losses day. The pair posted the biggest daily decline on Friday and dropped to 105.2 level at the week’s ending day.

In the early trading session, the USD/JPY pair faced rejection near the 107.00 level and witnessed a dramatic turnaround on the latest news that Japan’s Prime Minister Shinzo Abe was stepping down due to ill health.

The 65-year-old Japan’s PM Shinzo Abe said that he did not want his illness to get in the decision-making way. He apologized to the Japanese people for failing to complete his term in office. He has had ulcerative colitis, inflammatory bowel disease, and he said that his condition had worsened recently.

Abe’s current period began in 2012, and last year he became Japan’s longest-serving prime minister. Until a successor is chosen, he will remain in his post and continue his duty. This political development gave strength to Japanese Yen that dragged the pair back closer to the 106 level on Friday.

Meanwhile, in later sessions, the pair was further dragged down due to the U.S. dollar’s broad-based weakness. The greenback was under pressure due to the dovish comments from the Fed Chair Jerome Powell at the Jackson Hole Symposium on the previous day.

On Thursday, Powell announced a significant policy shift and said that Fed was willing to run the inflation hotter than usual and support the labor market, also suggested keeping interest rates lower for longer. This also weighed on market sentiment and added further in the USD/JPY pair losses that dragged the pair towards 105.00 level.

On the data front, at 04:30 GMT, the Tokyo Core CPI for the year in August was declined to -0.3% from the anticipated 0.3% and weighed on Japanese Yen. From the U.S. side, at 17:30 GMT, the Core PCE Price Index was dropped to 0.3% from the anticipated 0.5% in July and weighed on the U.S. dollar and added in the losses of currency pair. The Personal Spending rose to 1.9% against the expected 1.5% in July and supported the U.S. dollar.

Daily Technical Levels

Support Pivot Resistance
1.3339 1.3349 1.3364
1.3325 1.3373
1.3315 1.3388

USD/JPY – Trading Tips

The USD/JPY is trading within a sideways range of 105.866 to 105.200 range. The pair entered into the oversold zone previously, but now it has completed 23.6% Fibonacci retracement, and above this, the next target is likely to be found around 105.870. The MACD has crossed over 0 and has entered into the buying zone. Bullish bias seems dominant in the market today. Therefore, we may see USD/JPY prices soaring towards 38.2% Fibo levels of 105.870. Buying can be seen at over 105.200 level today. Good luck! 

Categories
Forex Market Analysis

Daily F.X. Analysis, August 28 – Top Trade Setups In Forex – U.S. Fed Chair Powell Speaks! 

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

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

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

Economic Events to Watch Today  

 

 

EUR/USD – Daily Analysis

During the Thursday’s Asian trading hours, the EUR/USD currency pair managed to extend its previous session gaining streak and still flashing green while taking round near 1.1830/40 level mainly due to the broad-based U.S. dollar selling bias, in the wake of cautious sentiment around the market ahead of the U.S. Federal Reserve (Fed) Chair Jerome Powell’s speech. On the contrary, the buying interest around the shared currency is declining on the day amid the intensifying virus fugues in Europe, which eventually becomes the key factor that has been capped further upside in the currency pair. 

At the moment, the EUR/USD currency pair is currently trading at 1.1835 and consolidating in the range between the 1.1817 – 1.1850. However, the traders are cautious about placing any strong position ahead of week’s Jackson Hole conferences where Federal Reserve’s (Fed) President Jerome Powell will speak about the central bank’s long-awaited monetary policy framework review, which will focus on inflation. 

Despite the upbeat U.S. and China data, the equity market has been declining since the day started amid the renewed concerns over the US-China relation. At the US-China front, the Trump administration sanctioned those companies who are helping China to mark its existence in the South China Sea. In contrast, China fired missiles in a military drill near the South China Sea. 

At the USD front, the broad-based U.S. dollar failed to gain any positive traction on the day. However, the losses could be associated with the doubts about the U.S. economic recovery ahead of Fed Chairman Jerome Powell’s speech at Thursday’s Jackson Hole symposium themed. However, the losses in the U.S. dollar became the key factor that kept the currency pair’s higher. Whereas, the U.S. Dollar Index that tracks the greenback against a basket of other currencies dropped by 0.12% to 92.882 by 11:59 PM ET (4:59 AM GMT).

At the coronavirus front, the coronavirus cases grew to 236,429, with a total of 9,280 deaths toll, according to the German disease and epidemic control center, Robert Koch Institute (RKI) report. In the meantime, the cases rose by 1,576 in Germany yesterday against Monday’s +1278. Whereas the death toll also grew by 3. It is worth mentioning that Germany recorded its highest number of new COVID-19 cases during the weekend in almost 4-months. As a result, they undermined the bullish sentiment around shared currency and held the currency pair between the thin range.

Daily Technical Levels

Support Pivot Resistance
1.1754 1.1828 1.1894
1.1689 1.1967
1.1615 1.2033

 EUR/USD– Trading Tip

The EUR/USD is trading slightly bullish at 1.1851, crossing over the resistance level of 1.1849 level. On the lower side, the EUR/USD may find support at 1.1830, while a bearish breakout of 1.1830 level can trigger selling until 1.1800 level. In case of a bullish breakout, the EUR/USD pair may begin further buying trends until 1.1880 and 1.1945 levels.

GBP/USD – Daily Analysis

The GBP/USD stimulates the daily high to 1.3242, up 0.29%, while directing into the European session open. Like major pairs, the Cable restored the yearly high on Thursday ere dipping to 1.3161, which caught the two-day winning streak. After remarks from Fed Chair, the broad U.S. dollar rally pulled the quote descending the prior day. 

The greenback’s latest drops support the pair bulls before BOE Governor Andrew Bailey’s address at the Jackson Hole Symposium. While running the third bullish day in the previous four, the GBP/USD prices also spend tiny heed to the Brexit distress indicated by The Times.

The final scheduled round of post-Brexit trade negotiations between the E.U. and the U.K. have already been abandoned, but ministers are expected to appear next week. Additionally, Germany’s expulsion of Brexit discussions as agenda from next week’s critical talks amongst the E.U. representatives.

Subsequently, the uproar girdling insect repellent ingredient defending against the coronavirus (COVID-19) and 21-day immunity plan represented a mild enthusiasm at home. The sentiment overlooks the biggest daily COVID-19 problems while producing 1,522 numbers for Thursday.

On the other hand, U.S. President Donald Trump addressed to end dependence on China “once and for all.” Besides, the mystic concepts of Fed Chair Powell, involving Average Inflation Targeting (AIT), appear to decrease the allure as markets start reading between the words and spot economic worries.

 Daily Technical Levels

Support Pivot Resistance
1.3145 1.3215 1.3268
1.3092 1.3338
1.3022 1.3391

 GBP/USD– Trading Tip

The GBP/USD has distributed the trading range of 1.3240 – 1.3180, and a bullish breakout of Cable is anticipated to lead it higher unto 1.3275 mark. On the higher side, the GBP/USD faces the next resistance at 1.3275 mark and over this level, the pair may find 1.3323 resistance. Speaking about the technical side of the market, 50 periods of EMA, RSI, and MACD suggest bullish bias in the GBP/USD pair. Today, let’s look for buying trades above 1.3275 level.

USD/JPY – Daily Analysis

During Thursday’s early European trading session, the USD/JPY currency pair managed to stop its early-day losing streak and took modest bids near above 106.00 level mainly after the (BOJ) board member Hitoshi Suzuki expressing his take on the monetary policy outlook, which eventually undermined the Japanese yen and extended some support to the currency pair. 

 Meanwhile, the risk-off market sentiment, driven by the renewed US-China tussle and intensifying virus cases in Europe and Asia, tends to underpin the safe-haven Japanese yen and kept the currency pair sidelined. At this moment, the USD/JPY currency pair is currently trading at 106.02 and consolidating in the range between 105.81 – 106.08.

It is worth reporting that the Bank of Japan (BOJ) board member Hitoshi Suzuki expressed his part on the monetary policy outlook while saying that “Will ease monetary policy further without hesitation with an eye on the pandemic impact on the economy. “He also added that “If BOJ were to ease more, it could use a special program for combating pandemic, cut short-, long-term interest rates or ramp up risky asset buying.” However, these statements recently weakened the Japanese yen and provided little support to the currency pair. 

Apart from this, the Takatoshi Ito, a famous economist who was once a preferred nominee to become Bank of Japan (BOJ) governor, stated that the Japanese economy could see a quicker recovery by 2022 if a vaccine becomes available. However, the currency pair failed to give any major attention to the above headlines, as it remains flat around 106.00 due to the cautious risk tone and weaker greenback ahead of the Fed Chair Powell’s Jackson Hole speech.

Across the pond, the failure of the American lawmakers to offer any hint on the big coronavirus (COVID-19) relief package or the highest COVID-19 new cases in Italy since May, not to forget the fresh US-China tussle over the South China Sea, all factors are weighing on the market trading sentiment, which could be considered as the main factors for the currency pair limited moves. 

At the US-China front, the Trump administration plans sanctions on those companies who are helping China to mark its existence in the South China Sea. At the same time, China fired missiles in a military drill near the South China Sea. The U.S. Secretary of State Michael Pompeo criticized China for “coercive bullying tactics against our friends in the United Kingdom.” This also exerted a burden on the market trading sentiment. This, in turn, underpinned the safe-haven Japanese yen demand and capped upside momentum in the pair.

Despite the risk-off market sentiment, the broad-based U.S. dollar failed to gain any positive traction on the day, as well as the losses could be associated with the doubts about the U.S. economic recovery ahead of Fed Chairman Jerome Powell’s speech at Thursday’s Jackson Hole symposium themed. However, the losses in the U.S. dollar became the key factor that kept the currency pair’s gain limited. Whereas, the U.S. Dollar Index that tracks the greenback against a basket of other currencies dropped by 0.12% to 92.882 by 11:59 PM ET (4:59 AM GMT).

Looking forward, the market traders await the Federal Reserve Chairman Jerome Powell’s speech in the Jackson Hole Symposium. As well as, America’s preliminary readings of the second quarter (Q2) GDP, which is expected -32.5% versus -32.9% will be key to watch. In the meantime, the updates surrounding the fresh Sino-US tussle, this time over the South China Sea, as well as the coronavirus (COVID-19) updates, could not lose their significance.


Daily Technical Levels

Support Pivot Resistance
105.8700 106.2900 106.9700
105.1800 107.4000
104.7600 108.0800

USD/JPY – Trading Tips

The USD/JPY is trading bearish at 106.082 level, holding above a support level of 106, which is extended by upward channel. On the higher side, the USD/JPY expected to gain an immediate resistance around 106.566 and 107.078. Looking at the 2-hour timeframe, the 50 periods EMA is extending resistance at 106.350. Likewise, the MACD and RSI are staying in a bearish zone, beneath 50 and 0, sequentially. The USD/JPY may trade bearish below 106.350 to target 106 and 105.800. Good luck! 

 

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Forex Signals

Gold Winning Signal Ends at Stop Loss – What’s Next? 

The precious metal gold prices were closed at 1953.90 after placing a high of 1954.86 and a low of 1902.53. Overall the movement of gold remained bullish throughout the day. After posting losses remaining flat from 3 consecutive days, gold prices rose on Wednesday by 2% on the back of US dollar weakness on the eve of a speech from the Federal Reserve Chairman Jerome Powell. Investors were betting on a further stimulus package to diminish the impact of coronavirus pandemic.

The precious metal gold prices were closed at 1953.90 after placing a high of 1954.86 and a low of 1902.53. Overall the movement of gold remained bullish throughout the day. After posting losses remaining flat from 3 consecutive days, gold prices rose on Wednesday by 2% on the back of US dollar weakness on the eve of a speech from the Federal Reserve Chairman Jerome Powell. Investors were betting on a further stimulus package to diminish the impact of coronavirus pandemic.

The precious metal gold prices were closed at 1953.90 after placing a high of 1954.86 and a low of 1902.53. Overall the movement of gold remained bullish throughout the day. After posting losses remaining flat from 3 consecutive days, gold prices rose on Wednesday by 2% on the back of US dollar weakness on the eve of a speech from the Federal Reserve Chairman Jerome Powell. Investors were betting on a further stimulus package to diminish the impact of coronavirus pandemic.

The US dollar was weak on the board as the traders were placing bids on the hopes and expectations that there was a further stimulus to come. The US Dollar Index (DXY) eased by about 0.1% against the six major currencies basket and made gold cheaper for investors holding other currencies. The Chairman of Federal Reserve, Jerome Powell, will speak at a virtual Jackson Hole symposium on Thursday, at the central bank’s annual Monetary Policy Framework Review.

The speech is highly awaited because investors believe that it will make a case for stronger monetary stimulus to help the economy. The speech will also give clues about Fed finding additional ways to bolster the economy if Congress fails to deliver on a new pandemic relief package.

Ahead of the September monetary policy meeting of Federal Reserve, the question remained on cards that whether Powell will favor shifting inflation target to an average instead of the long-favored 2% level. It is because such a shift will allow inflation to run higher before interest rates increased. In this situation, the US dollar will become weak, and gold will gain.

The Fed Chair’s speech’s rising dovish expectations on the next day weighed on the local currency and helped bullions to post gains. However, if Powell will deliver the expected comments, then gold could quickly recapture the $2000 level this week.

On the other hand, the gold prices were further supported by the rising safe-haven appeal after the US & China’s escalated tensions. On Wednesday, the US penalized 24 Chinese companies, and the Trump Administration cut them off from the American market, saying that they had contributed to China’s controversial island-building campaign.

The companies were added to the government list that bans them from buying American products. The reason was provided as their role in helping the Chinese military to construct artificial islands in the disputed South China Sea.

On the vaccine front, the top US virus expert Dr. Anthony Fauci warned against rushing out a COVID-19 vaccine before proven effective and safe. He said that it could hurt the development of other vaccines.

US President Donald Trump has been considering plans to put out a vaccine before it has been fully tested because a move like this would increase his chances of re-election in November’s presidential election. Democrats have accused Trump foe being prepared to endanger American lives for political gain.

The warning by Dr. Fauci faded some of the risk appetites from the market and added in the gains of gold prices on Wednesday.

Meanwhile, the gains in yellow metal were checked by the positive economic data from the US. At 17:30 GMT, the Core Durable Goods Orders rose in July to 2.4% from the expected 1.9% and supported the US dollar. The Durable Goods Orders in July also rose to 11.2% from the estimated 4.4% and supported the US dollar. The better than expected US economic data on Wednesday caped additional gains in yellow metal prices.


The precious metal gold soared sharply after testing the support level of 1,902 level to place a high around 1,955. The precious metal has closed a bearish engulfing candle on the 4-hour timeframe and may drive selling bias in gold. Gold can drop until 38.2% Fibonacci retracement level, which stays at 1,934 and 61.8% Fibo level of 1,922. Resistance stays at 1,954 and 1,965. The market is currently trading with massive volatility amid Fed Chair Pawell’s speech. Since our trade is closed at stop loss, let’s wait a bit for the market to gain stability before taking the next trade. Good luck! 

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Forex Market Analysis

Daily F.X. Analysis, August 27 – Top Trade Setups In Forex – U.S. Fed Chair Powell Speaks! 

On the fundamental side, the eyes will remain on the U.S. Prelim GDP, Unemployment rate, and Fed Chair Powell Speaks, which is due during the U.S. session. U.S. economy is once again expected to report a massive dip in the U.S. GDP data. At the same time, the Jobless Claims may improve a bit. Overall, the Fed Chair Powell Speaks will be the main highlight of the day as it may determine further sentiment about the U.S. dollar depending upon the dovish or hawkish tone of Powell.

On the fundamental side, the eyes will remain on the U.S. Prelim GDP, Unemployment rate, and Fed Chair Powell Speaks, which is due during the U.S. session. U.S. economy is once again expected to report a massive dip in the U.S. GDP data. At the same time, the Jobless Claims may improve a bit. Overall, the Fed Chair Powell Speaks will be the main highlight of the day as it may determine further sentiment about the U.S. dollar depending upon the dovish or hawkish tone of Powell.

On the fundamental side, the eyes will remain on the U.S. Prelim GDP, Unemployment rate, and Fed Chair Powell Speaks, which is due during the U.S. session. U.S. economy is once again expected to report a massive dip in the U.S. GDP data. At the same time, the Jobless Claims may improve a bit. Overall, the Fed Chair Powell Speaks will be the main highlight of the day as it may determine further sentiment about the U.S. dollar depending upon the dovish or hawkish tone of Powell.

Economic Events to Watch Today  

 

Economic Calendar by TradingView


  

EUR/USD – Daily Analysis

The EUR/USD pair was closed at 1.18300 after placing a high of 1.18391 and a low of 1.17720. Overall the movement of the EUR/USD pair remained flat yet slightly bearish throughout the day. The Euro to U.S. Dollar exchange rate remained flat throughout the day and dropped in late Wednesday. The EUR/USD pair lost some of its previous daily gains earned on the back of stronger than expected German GDP data for the second quarter of this year.

The President at IFO Institute, Clemens Fuest, said that the German economy was on track to recovery as the German companies assessed their current business situation markedly more positively than last month. He said that the manufacturing sector’s business climate had improved considerably; however, many manufacturers still consider their current business to be poor.

Whereas, the resurgence of coronavirus pandemic in Europe increased the concerns for another wave of the Eurozone outbreak. Spain has recorded 80,000 new coronavirus cases over the last two weeks; the rate was by far the most in Western Europe. Germany reported 1576 new cases on Wednesday and increased the total count to 236,429.

The travel warning for countries outside Europe has been extended to September 14, as announced by the German Foreign Ministry on Wednesday. Meanwhile, Health Minister Jens Spahn has said that coronavirus testing’s capacity was limited in the country. In France, the Government warned that a second wave could hit the country as early as November. Furthermore, the E.U. trade commissioner Phil Hogan resigned after the Irish Government accused him of breaching COVID-19 guidelines. He attended a golf dinner with more than 80 people in a County Galway on August 19 and was criticized for not complying with quarantine rules while traveling.

Mr. Hogan denied breaking any law and said that he should have been more rigorous concerning the COVID-19 guidelines. These virus-related concerns kept weighing on the local currency Euro and kept the pair EUR/USD under pressure throughout the day.

On the U.S. front, the U.S. dollar was low on the day ahead of Fed Chair Jerome Powell’s speech scheduled for Thursday. The speech is expected to be dovish and provide fresh clues about the delayed U.S. next stimulus package and is weighing on the market sentiment.

However, the U.S. macroeconomic data remained supportive of the U.S. dollar as the Core Durable Goods Orders rose to 2.4% in July from the projected 1.9% and supported the U.S. dollar. The Durable Goods Orders also raised to 11.2% from the anticipated 4.4% and supported the U.S. dollar. The U.S. data added further pressure on EUR/USD pair, and the pair moved in a downward direction in the late American session after moving sideways throughout the day.

Daily Technical Levels

Support Pivot Resistance
1.1787 1.1814 1.1856
1.1744 1.1884
1.1717 1.1926

 EUR/USD– Trading Tip

The EUR/USD is trading sideways, holding below a double top resistance area of 1.1849 level. On the downside, the EUR/USD is likely to find support at 1.1804, while a bearish breakout of 1.1804 level can trigger selling until 1.1775 level. In case of a bullish breakout, the EUR/USD pair may trigger further buying trends until 1.1879 and 1.1945 levels.

GBP/USD – Daily Analysis

The GBP/USD currency pair managed to gain some positive traction and drew some modest bids near above 1.3200 level on the day mainly due to the broad-based U.S. dollar weakness, triggered by the cautious sentiment ahead of U.S. Federal Reserve (Fed) Chair Jerome Powell’s speech. Apart from this, the lack of progress over the much-awaited U.S. fiscal stimulus also weighed on the safe-haven U.S. dollar and contributed to the currency pair gains.

On the contrary, the downbeat report from the Confederation of British Industry (CBI) and negative remarks by the Organisation for Economic Co-operation and Development (OECD) also exerted some downside pressure o the currency pair. On the other hand, the cancelation of the negotiations over the U.K. and the European Union’s post-Brexit relationship also becomes the key factor that kept the lid on any additional gain in the currency pair. At this particular time, the GBP/USD currency pair is currently trading at 1.3207 and consolidating in the range between 1.3195 – 1.3223.

As per the CBI report, the companies reliant on spending by consumers – many of which only opened in recent weeks after the lockdown – cut jobs faster on record. However, these comments initially weighed on the currency pair. In the meantime, the OECD noted the British economy’s record quarterly fall as worrisome. In turn, this undermined the sentiment around the British Pound and contributed to the currency pair modest losses.

Also weighed on the quote was the reports that the E.U. representatives have dropped the discussions over the U.K. and the European Union’s post-Brexit relationship as a subject for the next week’s meeting. However, these gloomy headlines overshadowed the previous day’s positive comments from the Irish leader Michael Martin.

The fresh challenges to the US-China relations exerted further downside pressure on the market trading sentiment across the pond. It is worth reporting that the Trump administration considers imposing sanctions on those companies helping China mark its presence in the South China Sea. This happens after the dragon nation fired missiles in the drills around the debatable region.

At the USD front, the broad-based U.S. dollar was down on Thursday morning in Asia ahead of U.S. Federal Reserve Chairman Jerome Powell’s speech at the Jackson Hole symposium later. Whereas, the losses in the U.S. dollar become the key factor that kept the GBP/USD currency pair higher. Whereas, the U.S. Dollar Index that tracks the greenback against a basket of other currencies dropped by 0.12% to 92.882 by 11:59 PM ET (4:59 AM GMT).

Looking forward, the market traders await the Federal Reserve Chairman Jerome Powell’s speech in the Jackson Hole Symposium. As well as, America’s preliminary readings of the second quarter (Q2) GDP, which is expected -32.5% versus -32.9% will be key to watch. In the meantime, the updates surrounding the fresh Sino-US tussle, this time over the South China Sea, and the coronavirus (COVID-19) updates, could not lose their importance.

  

 

Daily Technical Levels

Support Pivot Resistance
1.3144 1.3182 1.3247
1.3079 1.3285
1.3040 1.3351

 GBP/USD– Trading Tip

The GBP/USD has distrub[ted the narrow trading range of 1.3140 – 1.3056, and upward breakout of GBP/USD is expected to lead the Cable prices further higher until 1.3262 mark. On the upper side, the GBP/USD pair may face the next resistance around 1.3262 mark and above this 1.3295. Technically, 50 periods of EMA, RSI, and MACD all are suggesting a bullish trends in the GBP/USD pair. Let’s look for buying trades above 1.3146 level.

USD/JPY – Daily Analysis

The USD/JPY was closed at 105.985 after placing a high of 106.554 and a low of 105.954. After posting gains for three consecutive days, USD/JPY pair declined on Wednesday amid the broad-based U.S. dollar weakness ahead of Fed Chair Jerome Powell’s speech on Thursday.

The traders were selling USD/JPY pair over the rising hopes that a next stimulus package was on its way. As in result, the U.S. Dollar Index (DXY) fell by 0.1% against its rival currencies and weighed further on the U.S. dollar that dragged the currency pair on the low side.

The Chairman of Federal Reserve, Jerome Powell, will deliver a speech via video conference at Jackson Hole Symposium on the next day and provide an annual central bank’s monetary policy framework review.

Investors believe that the speech will make a strong case about the monetary stimulus, so they are awaiting it to find fresh clues about how the Fed will support the economy further through the coronavirus pandemic crisis.

Another reason behind waiting for the Fed’s Chair Powell’s speech is to determine whether Fed will favor shifting from a long-run inflation target of 2% to an average level of inflation as it will raise inflation and will make the U.S. dollar weak before raised interest rates.

The U.S. dollar was lower on the day ahead of the next stimulus measure as Powell’s dovish expectations increased. If Powell’s speech provided the expected clues, then the U.S. dollar will fell even more and weighed on USD/JPY to move it below 104 level.

Whereas, on the data front, at 04:50 GMT, the SPPI for the year from Japan rose to 1.2% from the expected 0.8% and supported Japanese Yen and added losses in currency pair. From the U.S. side, the Core Durable Orders for July rose to 2.4% from the expected 1.9% and supported the U.S. dollar. The Durable Goods Orders for July also rose to 11.2% from the estimated 4.4% and supported the U.S. dollar. The strong U.S. dollar capped additional losses in the USD/JPY on Wednesday.

Meanwhile, the additional losses in currency pair were supported by the rising tensions between the U.S. & China. On Wednesday, 24 Chinese companies were penalized by the Trump Administration due to their contribution to China’s controversial island-building campaign.

The U.S. banned Chinese companies from buying the U.S. products citing their role in helping the Chinese military construct artificial islands in the disputed South China Sea. The U.S. had already penalized dozens of Chinese companies over national security concerns and violations of human rights, and now China’s encroachment in the South China Sea has also added in it. Now it is remained to see the response of China over this penalty by the U.S. The ongoing tensions between the U.S. & China added strength in Japanese Yen that further supported the USD/JPY pair’s bearish trend on Wednesday.

Meanwhile, the risk sentiment that took its pace yesterday on the back of renewed hopes on the vaccine was faded away after the latest warning from the top U.S. virus expert Dr. Anthony Fauci. He said that before the vaccine’s approval for safety and efficiency, the usage of vaccines could be harmful. He warned that it could affect the development of other vaccines.

President Donald Trump had considered plans to put out a vaccine before it was tested and approved to increase his re-election chances in upcoming November’s presidential elections. Democrats have blamed Trump for endangering American lives for political gain. It has also weighed on risk sentiment and added in the currency pairs losses on Wednesday.

Daily Technical Levels

Support Pivot Resistance
105.7600 106.1600 106.3700
105.5500 106.7700
105.1500 106.9800

USD/JPY – Trading Tips

The USD/JPY is consolidating in an upward channel, which is supporting the pair at 105.820. On the upper side, the USD/JPY is likely to gain an immediate resistance around 106.566 as well as 107.078. Looking at

the 2-hour chart, the 50 periods EMA is extending resistance at 106.069. Simultaneously, the MACD and RSI are holding in a selling zone, below 50 and 0, respectively. The USD/JPY may trade bullish over 105.850 to target 107.084 and selling below 105.829. Good luck! 

 

Categories
Forex Signals

Gold On Fire – Two Winning Forex Trading Signals Closed! 

The yellow metal prices failed to maintain its early-day modest gains and dropped from the $1,932.48 to 1,924.20 level due to the broad-based U.S. dollar modest strength, backed by the downbeat market trading sentiment. However, the gains in the U.S. dollar could be short-lived as the doubts over the U.S. economy persists. On the other hand, the previous market optimism over the coronavirus (COVID-19) vaccine/treatment was overshadowed by the latest disappointing U.S. data. As in result, the market trading sentiment turned negative, which eventually might help the gold prices to limit its deeper losses. 

The yellow metal prices failed to maintain its early-day modest gains and dropped from the $1,932.48 to 1,924.20 level due to the broad-based U.S. dollar modest strength, backed by the downbeat market trading sentiment. However, the gains in the U.S. dollar could be short-lived as the doubts over the U.S. economy persists. On the other hand, the previous market optimism over the coronavirus (COVID-19) vaccine/treatment was overshadowed by the latest disappointing U.S. data. As in result, the market trading sentiment turned negative, which eventually might help the gold prices to limit its deeper losses. 

The yellow metal prices failed to maintain its early-day modest gains and dropped from the $1,932.48 to 1,924.20 level due to the broad-based U.S. dollar modest strength, backed by the downbeat market trading sentiment. However, the gains in the U.S. dollar could be short-lived as the doubts over the U.S. economy persists. On the other hand, the previous market optimism over the coronavirus (COVID-19) vaccine/treatment was overshadowed by the latest disappointing U.S. data. As in result, the market trading sentiment turned negative, which eventually might help the gold prices to limit its deeper losses. 

On the contrary, the on-going optimism related to the US-China trade deal talks remained supportive of the market trading tone that stopped the bullion’s gains. The global economic recovery from COVID-19 turned gloomy after the disappointing U.S. data. At the data front, the August’s Conference Board (C.B.) consumer confidence index dropped to 84.8, it was the lowest level since May 2014, with COVID-19-induced high unemployment contributing to the fall. The data was much weaker than the expected of 93 and was also weaker than July’s figures of 91.7. This data exerted some downside pressure on the market trading sentiment and provided some support to the safe-haven asset.

However, the equity market has started to flash red since the U.S. data released, but the equity market losses were very modest and temporary as the US-China trade optimism helped the market trading tone. The U.S. and Chinese leaders affirmed their commitment to their phase one trade deal on Monday that capped the yellow metal gains. But, both the US-China continued to disagree on other issues that might keep the market cautious. As we all know, the U.S. policymakers have not yet confirmed that when they will start negotiating the COVID-19 aid package. However, the hurdles over the box remain on the card amid multiple differences between both parties.

Also weighing on the safe-haven metal prices could be the reports that suggested the disappearing coronavirus (COVID-19) numbers from the U.S. and Australia. In turn, this decreased the safe-haven demand in the market and kept the gold prices under pressure. Moreover, the U.K. government’s funding for the University of Cambridge’s COVID-19 vaccine trials after the American rush for the pandemic’s cure also kept traders hopeful as treating the deadly virus likely to release soon.

Despite the downbeat U.S. data, the broad-based U.S. dollar extended its early bullish trend on the day amid mixed sentiment in the market. However, the modest gains in the U.S. dollar 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 that tracks the greenback against a bucket of other currencies rose 0.05% to 93.062 by 10:15 PM ET (3:15 AM GMT).

Be it the trade/virus updates or the USD moves, not forget the U.S. Durable Goods Orders; these all catalysts will grab the major attention and impact the currency pair. As well as, the traders are keenly awaiting the global central bankers’ comments from the Jackson Hole Symposium, up for Thursday and Friday.


Earlier today, we managed to close two winning signals on gold, and fortunately, we came out of the market a bit early before gold started reversing over the double bottom area of 1,907. The precious metal gold is now trading at 1,937 level, exhibiting a solid bullish turn, and it may find an immediate resistance at 1,938 level. Closing of candles below 1,938 levels may help us secure a quick selling in gold. Elsewhere, the XAU/USD pair may continue to rise until the 1,956 level. Good luck! 

Categories
Forex Market Analysis

Daily F.X. Analysis, August 26 – Top Trade Setups In Forex – 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 may 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 may 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 may drive selling bias for the U.S. .dollar.

Economic Events to Watch Today  

 

 

EUR/USD – Daily Analysis

The EUR/USD closed at 1.18336 after placing a high of 1.18435 and a low of 1.17840. Overall the movement of the EUR/USD pair remained bullish throughout the day. The EUR/USD pair gained traction and raised on Tuesday after falling for two consecutive days. The rise in the EUR/USD pair was due to improved risk appetite in the market after the U.S. & China both held the trade talks and confirmed their commitment to trade deal.

Meanwhile, the potential vaccine for coronavirus and the distribution of vaccine doses to worldwide raised optimism and helped risk sentiment that also added further in the gains of riskier asset EUR/USD pair.

The U.S. & China said they were making progress in trade talks despite other tensions, which added further in the optimism. The Chinese Ministry of Commerce announced that a constructive dialogue between both sides had pushed the trade deal forward.

As in result, the U.S. Treasury yields rose but failed to raise the U.S. dollar as the disappointing release of the Conference Board’s Consumer Confidence depressed the U.S. dollar. At 19:00 GMT, the highlighted C.B. Consumer Confidence data fell in August to 84.8 from the anticipated 93.0 and weighed heavily on the U.S. dollar that added gains in the EUR/USD pair.

On the other hand, from the European side, the German Final GDP for the second quarter contracted less than it was expected and supported Euro currency. The forecasted GDP was -10.1% but, in actuality, came in as -9.7% and supported the single currency. The German Ifo Business Climate Index in August exceeded the expectations of 92.2 and came in as 92.6 and supported Euro currency that further added gains in the EUR/USD pair.

Furthermore, the risk sentiment was also supported by the positive news regarding the vaccine and its distribution from the World Health Organization. Investors cheered the COVAX facility initiative that would allow the worldwide equal distribution of vaccine doses in collaboration with the vaccine manufacturers.

WHO said that 172 countries were engaged in talks to participate in the COVAX facility, and nine vaccine candidates have already joined it while nine were under evaluation. It also added that significant producers were under discussion to join the facility. The worldwide equal and fair distribution of vaccines will help recover the economy and bounce back from the pandemic. This raised risk sentiment and pushed the EUR/USD riskier asset in the upward direction on Tuesday. Apart from this, the investors will be watching the speech of Fed Chair Jerome Powell on Thursday at Jackson Hole Symposium to find fresh clues about the U.S. dollar.

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 is trading with a bearish bias amid stronger U.S. dollar at 1.1810, holding right above the triple bottom support area of 1.1804 level. Closing of candles above this level can drive bullish correction until 1.1840, while the violation of the 1.1804 level can trigger selling unto 1.1785 level. On the 2 hour chart, the EUR/USD pair has formed an ascending triangle pattern, which also extends resistance at 1.1847. Let’s wait for a bullish or a bearish breakout before placing any major trade in the EUR/USD. 

  

GBP/USD – Daily Analysis

 The GBP/USD closed at 1.31505 after placing a high of 1.31703 and a low of 1.30539. Overall the movement of GBP/USD pair remained bullish throughout the day. After falling for two consecutive days, GBP/USD pair surged and posted gains and recovered almost more than half of the previous two day’s losses on Tuesday amid the broad-based U.S. dollar weakness.

The U.S. dollar was weak as the Consumer Confidence from August declined, and the safe-haven status of greenback suffered because of risk-on market sentiment. The risk appetite increased after the U.S. & China confirmed their commitment towards the phase-one trade deal on Tuesday. Despite ongoing tensions, both sides assured to comply with their promises made in the phase-one trade deal agreement and released some tension from the market.

This raised risk appetite and the risk-sensitive GBP/USD pair gained from this situation. Meanwhile, the potential vaccine development and its distribution in the whole world to fight the pandemic also raised risk sentiment and added in the pair gains.

Whereas on Brexit front, the top Tory and former Brexit Secretary David Davis warned that it was a critical endgame, and the U.K. will soon have to be preparing for talks to collapse. As both sides have earmarked October as a deadline, and the last three weeks will matter more than the first three years of talks.

He added that if Europe continued to follow Barnier’s strategy, then we could end up with a no-deal scenario, and the Europeans will lose a large and very profitable marketplace, namely the United Kingdom. They will lose the most efficient financial market; they will lose access to British fisheries and funding that was agreed under the Withdrawal Agreement. The funding was agreed on the presumption that both sides would get a trade deal, a political promise that the E.U. has failed to keep.

The U.K.’s negotiator David Frost had provided a draft text last week to speed up the talks, but E.U. negotiator Micheal Barnier dismissed it as unrealistic and urged E.U. states to stay cold-blooded. Barnier said that U.K.’s strategy would be to trade fishing access for freedom from E.U. rules at the last minute.

Meanwhile, at an informal meeting, the colleague of Mr. Barnier, Eurasia Group analyst, Mujtaba Rahman, said that the trade-off concerning state aid and fishing rights as possible, but it will take time. He claimed that the prospect of no-deal with the risk of delay at the border and food shortages would be a huge concern for Boris Johnson and his government, pushing him to compromise.

Both sides are reluctant to lose their demands and the time is falling short, it is now unclear whether they would reach an agreement. However, investors are cheering the other risk-related news and ignoring the Brexit progress as it has stalled.

On the data front, at 15:00 GMT, the CBI Realized Sales from Britain declined to -6 from the expected 7 in August and weighed heavily on the local currency that kept the currency pair gains limited. From the U.S., the Consumer Confidence from the Conference Board was declined to 84.8 from the projected 93.0 and the previous 91.7 and weighed heavily on the U.S. dollar as this report was highlighted on Tuesday. The weak U.S. dollar added further in the GBP/USD pair’s gains.

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 has violated the sideways trading range of 1.3120 – 1.3056 level, and bullish breakout of GBP/USD pair is likely to lead the Sterling prices towards the next target 1.3262 level. On the higher side, the next resistance is likely to be found around 1.3262 level. The 50 EMA and the technical indicators such as RSI, MACD, and 50 periods of EMA suggest a bullish bias in the Cable. Let’s consider taking buying trades above 1.3120 level.

USD/JPY – Daily Analysis

The USD/JPY pair was closed at 106.387 after placing a high of 106.575 and a low of 105.870. Overall the movement of the USD/JPY pair remained bullish throughout the day. The USD/JPY pair climbed to a fresh weekly high on Tuesday at 106.57 despite the broad-based U.S. dollar weakness. The rise in currency pair could be attributed to the risk-on market sentiment that weighed on safe-haven Japanese Yen and contributed to the currency pair’s gains.

The U.S. Dollar Index (DXY) was down on Tuesday by 0.33% on 92.98 level, but it could not stop USD/JPY pair to post gains on the day as the risk-on market environment made it difficult for safe-haven Japanese Yen to find demand in the market.

On the data front, at 10:00 GMT, the core Consumer Price Index for the year from Bank of Japan dropped to 0.0% in August from the anticipated 0.1% and weighed on Japanese Yen and added further in USD/JPY pair’s gains.

On the U.S. side, the Housing Price Index rose to 0.9% in June from the anticipated o.3% and supported the U.S. dollar. At 18:59 GMT, the Richmond Manufacturing Index also rose to 18 points from 10 in the forecast and supported the U.S. dollar. At 19:00 GMT, the C.B. Consumer Confidence declined to 84.8 from the projected 93.0 and weighed on the U.S. dollar. The New Home Sales increased to 901K from the expected 787K and supported the U.S. dollar.

Most of the economic data from the U.S. came in favor of the U.S. dollar on Tuesday and helped USD/JPY gain traction. Meanwhile, the improving market risk sentiment played an important role in increasing the USD/JPY currency pair prices. The risk appetite was raised in the market after the WHO released an initiative of equal and fair distribution of vaccine to countries worldwide along with the positive statement from both the U.S. & China about the trade deal.

According to the World Health Organization, 172 countries and multiple candidate vaccines were involved in talks to make the global access of vaccines easy and fair by participating in the COVAX facility. COVAX facility is an initiative to provide safe & effective vaccines after getting license and approval to countries around the world by working with vaccine manufacturers. For now, nine candidate vaccines have entered the initiative, and further nine are under evaluation while the major producers are under conversation to join the COVAX facility.

This raised hopes for the equal and easy distribution of vaccine doses not only in a few major countries but to each country worldwide. The fact that it will help recovery boosts the equity market, and hence, safe-haven Japanese Yen came under heavy selling pressure and raised USD/JPY pair.

Meanwhile, the video conference that was canceled by President Donald Trump on August 15 was held on Tuesday between U.S. Trade Representative Robert Lighthizer and U.S. Treasury Secretary Steven Mnuchin with Chinese Vice Premier Liu He. Both sides reaffirmed their commitment toward the phase-one trade deal even China has been lagging of the target of purchasing U.S. farm goods.

However, in the lingering US-china tensions, a positive statement from both sides gave a heavy selling pressure on safe-haven appeal and raised the risk sentiment helping USD/JPY pair to extend its daily gains.

Daily Technical Levels

Support Pivot Resistance
105.9500 106.2700 106.6800
105.5500 106.9900
105.2300 107.4000

USD/JPY – Trading Tips

The USD/JPY is trading within an upward channel, which is supporting the pair at 106.230. On the higher side, the USD/JPY may find an immediate resistance at 106.566 and 107.078. On the 2 hour chart, the 50 periods EMA is extending the buying trend in the USD/JPY pair. At the same time, the MACD and RSI are contradicting as the MACD suggests selling while the RSI is holding in a buying zone. The USD/JPY may trade bullish over 106.200 to target 107.084. Good luck! 

 

Categories
Forex Signals

Hard luck with GBP/USD Signal – Sudden Spike Hit Stop Loss! 

The GBP/USD managed to extend its early-day gains and drew some bids on the day essentially due to the broad-based U.S. dollar instability, triggered by the market upbeat trading sentiment. Besides this, the long-lasting deadlock surrounding the much-awaited U.S. fiscal stimulus also weighed on the safe-haven U.S. dollar and contributed to the currency pair gains. On the contrary, the long-term Brexit woes became the key factor that kept the lid on any additional gains in the currency pair. Also, the Brexit fears overshadowed British business houses’ optimism, as shown by the government data. At this particular time, the GBP/USD currency pair is currently trading at 1.3085 and consolidating in the range between 1.3054 – 1.3115.

The GBP/USD managed to extend its early-day gains and drew some bids on the day essentially due to the broad-based U.S. dollar instability, triggered by the market upbeat trading sentiment. Besides this, the long-lasting deadlock surrounding the much-awaited U.S. fiscal stimulus also weighed on the safe-haven U.S. dollar and contributed to the currency pair gains. On the contrary, the long-term Brexit woes became the key factor that kept the lid on any additional gains in the currency pair. Also, the Brexit fears overshadowed British business houses’ optimism, as shown by the government data. At this particular time, the GBP/USD currency pair is currently trading at 1.3085 and consolidating in the range between 1.3054 – 1.3115.

The GBP/USD managed to extend its early-day gains and drew some bids on the day essentially due to the broad-based U.S. dollar instability, triggered by the market upbeat trading sentiment. Besides this, the long-lasting deadlock surrounding the much-awaited U.S. fiscal stimulus also weighed on the safe-haven U.S. dollar and contributed to the currency pair gains. On the contrary, the long-term Brexit woes became the key factor that kept the lid on any additional gains in the currency pair. Also, the Brexit fears overshadowed British business houses’ optimism, as shown by the government data. At this particular time, the GBP/USD currency pair is currently trading at 1.3085 and consolidating in the range between 1.3054 – 1.3115.

The coronavirus vaccine hopes were supporting the market trading sentiment. The U.S. Food & Drug Administration (FDA) authorized the use of blood plasma from recovered patients as a treatment option, which eventually overshadowed the fears of rising coronavirus cases in Asia and Europe. Apart from this, the Moderna (NASDAQ: MRNA) ‘s press release on Monday, saying that the Cambridge, MA-based company is in “advanced exploratory discussions with the E.U. Commission to supply 80 million doses of mRNA-1273, Moderna’s vaccine candidate against COVID-19, as part of the European Commission’s goal to ensure early access to safe and effective COVID-19 vaccines for Europe.” 

At the US-China front, the latest remarks between the U.S. and Chinese trade representatives refreshing optimism surrounding the phase one trade deal. The Dragon Nation recently confirmed that the trade deal between the US-China remains intact. He further added that China and the U.S. had a constructive conversation on the trade agreement. As per the keywords, “China says both sides agreed to continue pushing forward implementation of phase 1 trade deal.” This, in turn, underpinned the market sentiment and sent the U.S. dollar down. Also, supporting the market trading sentiment could be the news that the virus cases in Florida and the U.K. are receding off-late.

On the other hand, the market did not give any major attention to the American health official’s warning to Trump administration’s rush for coronavirus (COVID-19) vaccine. It s worth reporting that Dr. Anthony Fauci, the head of the U.S. National Institute of Allergy and Infectious Diseases, told yesterday that rushing out vaccines could undermine trials of other promising candidates.

At the Brexit front, the fears of the no-deal Brexit were further fueled after the failure of the 7th round to reach any agreements by the European Union (E.U.) and the U.K.’s policymaker. Whereas, both parties EU-UK are alleged to each other for the failure. Thus these fears become the key factor that capped further upside in the currency pair. 

The losses in the U.S. dollar could also be attributed to the uptick in the U.S. stock futures. Whereas, the U.S. dollar index that tracks the greenback against a basket of other currencies dropped by 0.11% to 93.207 by 9:48 PM ET (2:48 AM GM


Moving ahead, the market traders will keep their eyes on the U.S. Federal Reserve Chairman Jerome Powell’s speech at the Jackson Hole symposium, which is scheduled to open on Thursday. The U.S. August consumer confidence is due later in the day and will 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 gold run-up.

The GBP/USD pair is trading at 1.3138, holding right below a double top resistance level of 1.3144. We decided to take a selling trade below 1.3144 level, but unfortunately, the pair spiked sharply to test a high of 1.3170 level, which hit our stop loss. But right after hitting our stop loss, the Cable again reversed to trade below 1.3144. The GBP/USD is still holding below 1.3144, but the pair is forming bullish candles so that we may have a bullish trend continuation in the market. Let’s wait for a proper setup. Good luck! 

Categories
Forex Signals

Consecutive Two Winnings On Gold Trading Signals – What’s Next?

The yellow metal prices succeeded in stopping its previous day declines and started to gain some bullish bias near above 1,935 level on the day. However, the gold prices have nothing major to cheer on the day except U.S. dollar weakness. The investor turned to the safe-haven metal as the dollar dropped, and COVID-19 worries increased. 

The yellow metal prices succeeded in stopping its previous day declines and started to gain some bullish bias near above 1,935 level on the day. However, the gold prices have nothing major to cheer on the day except U.S. dollar weakness. The investor turned to the safe-haven metal as the dollar dropped, and COVID-19 worries increased. 

The yellow metal prices succeeded in stopping its previous day declines and started to gain some bullish bias near above 1,935 level on the day. However, the gold prices have nothing major to cheer on the day except U.S. dollar weakness. The investor turned to the safe-haven metal as the dollar dropped, and COVID-19 worries increased. 

The upbeat market sentiment, backed by optimism over U.S. authorization of a blood plasma treatment for Covid-19, turned out to be a major factor that cap further upside in the gold. Elsewhere, the reason behind the upbeat market sentiment could also be associated with the overnight optimism over the US-China’ constructive’ talks on phase one trade agreement, which eventually dulled gold’s safe-haven appeal. 

On the contrary, the lack of progress over the next round of the U.S. fiscal stimulus measures and the coronavirus (COVID-19) prevalence grab major attention and keep challenging the risk-on market sentiment, which might provide some support to the gold. At the press, the yellow metal prices are currently trading at 1,933.55 and consolidating in the range between 1,926.68 and 1,937.62. Moving on, the traders seem cautious to place any strong position as all eyes are now on Thursday’s Jackson Hole symposium.

Apart from this, the market trading sentiment was further bolstered by fresh optimism over the US-China’ constructive’ talks on phase one trade agreement. The Dragon Nation recently confirmed that China and the U.S. had a constructive conversation on the trade agreement. As per the keywords, “China says both sides agreed to continue pushing forward implementation of phase 1 trade deal.” However, these updates are positive for risk sentiment and might weigh on the safe-haven assets like gold.

Across the pond, the lingering uncertainty over the next round of the U.S. fiscal stimulus measures also supported the risk aversion. As we know, the U.S. policymakers have not yet confirmed the restart of negotiation related to the COVID-19 aid package. However, the hurdles over the package were intensified further after the House Speaker Nancy Pelosi took a U-turn from her previous readiness to cut the demands in half. On the flip side, the on-going tussle between US-China and India’s phasing out of Huawei equipment to cite the Sino-American tension turned out to be the major factor that helped the gold prices to maintain its bullish bias on the day.

As a result of risk-on market sentiment, the broad-based U.S. dollar failed to gain any bids and took the offers on the day as doubts persist over the global economic recovery from COVID-19 ahead of Fed Chairman Jerome Powell speech at Thursday’s Jackson Hole symposium themed. As well as, the risk-on market sentiment also weighed on the American currency. However, the U.S. dollar losses helped the gold prices to deeper its losses as the price of gold is inversely related to the price of the U.S. dollar. Whereas, the U.S. dollar index that tracks the greenback against a basket of other currencies edged down 0.11% to 93.207 by 9:48 PM ET (2:48 AM GMT).

Moving ahead, the market traders will keep their eyes on the U.S. Federal Reserve Chairman Jerome Powell’s speech at the Jackson Hole symposium, which is scheduled to open on Thursday. The U.S. August consumer confidence, which is due later in the day and will 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 gold run-up.


Technically, the precious metal gold has violated the symmetric triangle pattern at 1,928 level, and below this, we tried to capture quick sellings twice and were able to capture quick green pips in both of the trades.

We have finally closed two winning signals in gold, but we had to come out of the market a bit early as the precious metal isn’t continuing with the selling trend. Anyway, we will still be looking to enter a selling trade below 1,928 level to target 1,911 and even further lower. Good luck! 

Categories
Forex Market Analysis

Daily F.X. Analysis, August 25 – Top Trade Setups In Forex – Consumer Confidence in Focus! 

On the news front, the economic calendar is a bit busy today, and it may offer a medium impact on economic events from the U.S. and Eurozone. During the European session, the focus will remain on the German Final GDP q/q and German Ifo Business Climate data, while the U.S. C.B. Consumer Confidence and New Home Sales from the U.S. will be released during the New York session today. The dollar can gain straighten on positive forecasts.

On the news front, the economic calendar is a bit busy today, and it may offer a medium impact on economic events from the U.S. and Eurozone. During the European session, the focus will remain on the German Final GDP q/q and German Ifo Business Climate data, while the U.S. C.B. Consumer Confidence and New Home Sales from the U.S. will be released during the New York session today. The dollar can gain straighten on positive forecasts.

On the news front, the economic calendar is a bit busy today, and it may offer a medium impact on economic events from the U.S. and Eurozone. During the European session, the focus will remain on the German Final GDP q/q and German Ifo Business Climate data, while the U.S. C.B. Consumer Confidence and New Home Sales from the U.S. will be released during the New York session today. The dollar can gain straighten on positive forecasts.

Economic Events to Watch Today  

 

 

EUR/USD – Daily Analysis

The EUR/USD closed at 1.17953 after placing a high of 1.18828 and a low of 1.17539. Overall the movement of EUR/USD remained bearish throughout the day. The EUR/USD pair dropped on Friday and bottomed at 1.1753; it’s lowest since August 12. A stronger U.S. dollar and the poor economic data from Europe weighed on EUR/USD pair.

At 12:15 GMT, the French Flash Services PMI for August fell to 51.9 from the expected 56.3, and the previous 57.3, weighed on Euro. The French Flash Manufacturing PMI also declined to 49.0 against the estimated 53.0 and previous 52.4 and added pressure on single currency Euro.

At 12:30 GMT, the German Flash Manufacturing PMI rose to 53.0 from the anticipated 52.2 and supported Euro; however, the German Flash Services PMI came in as 50.8 against the expected 55.3 and weighed on Euro on Friday.

At 13:00, the Flash Manufacturing PMI for the whole Eurozone declined to 51.7 in August from the projected 52.7 and previous 51.8. The Flash Services PMI for the whole bloc also fell to 50.1 against the forecasted 54.6 and added pressure on EUR.

Apart from German Manufacturing PMI, all the PMI from the whole bloc, including biggest economies, came in against EUR, and hence, EUR/USD pair suffered. The data showed that only German manufacturing activity was expanded in August. At the same time, other countries, along with whole euro bloc’s manufacturing & services activities, were contracted in August. Meanwhile, the greenback was the top performer on Friday with DXY up by 0.5% on 93.5 level, the highest since Monday. The U.S. Dollar was already supported by the release of Fed Meeting minutes on Wednesday, and on Friday, the support was extended after the release of positive PMI and Home Sales data.

At 18:45 GMT, the Flash Manufacturing PMI and the Flash Services PMI were released from the U.S. The Manufacturing PMI surged to 53.6 against the expected 51.9, and the Services PMI was surged to 54.u from the 50.9 forecasted. The expansion in the Manufacturing & Services sector of the U.S. gave strength to the U.S. dollar. At 19:00 GMT, the Existing Home Sales in July exceeded the expectations of 5.40M and came in as 5.86Mand supported the U.S. dollar.

The strong U.S. dollar exerted more pressure on EUR.USD prices and dragged them down at the ending day of the week. Meanwhile, the Euro currency was also under pressure because of the resurgence of coronavirus cases in Europe. In recent days France, Germany, and Italy have experienced their highest daily case counts since the spring, and Spain has found itself amid a major outbreak.

Over the past two weeks, Spain has seen Europe’s fastest rising caseload with 142 positive cases per 100,000 people. The number had risen more than 3,000 by the time the state of emergency ended on June 21.

The EUR/USD pair was also under pressure on Friday because of the possible entry of a new phase of the pandemic in Europe. 

Daily Technical Levels

Support Pivot Resistance
1.1787 1.1797 1.1807
1.1777 1.1817
1.1767 1.1827

 EUR/USD– Trading Tip

The EUR/USD pair fell sharply from 1.1954 level to 1.1790 level. For now, the pair is likely to find an immediate resistance at 1.1806 level, and a bullish breakout of 1.1806 level can lead EUR/USD prices towards 1.1886 level. On the lower side, the violation of the 1.1751 level can extend the selling trend until 1.1706.

  

GBP/USD – Daily Analysis

 The GBP/USD pair was closed at 1.30627 after placing a high of 1.31488 and a low of 1.30534. Overall, the movement of the GBP/USD pair remained bearish throughout the day. The GBP/USD pair extended its previous day losses and fell further on Monday to a low of 1.3053 level. In the absence of significant macroeconomic data from the U.K. or U.S., the greenback’s market valuation remained the sole driver of GBP/USD pair on the day.

The U.S. Dollar Index dropped below 93 levels during the first half of the day because of upbeat market sentiment. The risk sentiment was fueled after the U.S. Food and Drug Administration (FDA) announced on Sunday that it had approved the blood-plasma treatment for coronavirus patients in case of emergency.

The blood plasma from the recovered patients of the virus could increase the health and decrease the morality, and it was approved to use for severe or emergency cases of coronavirus in America. This method has been used in many countries, and the USA has approved it now. U.S. President Donald Trump urged the recovered patients of coronavirus to donate their blood plasma so that fight against coronavirus pandemic could take its pace and recovery chances could increase.

The risk perceived GBP/USD pair gained from this news and rose in the early session on Monday; however, in late American sessions, the rising U.S. Treasury bond yields helped the U.S. dollar to gain traction and lifted the U.S. dollar Index. The DXY moved to a high of 93.30 and was up by 0.06% whereas, the U.S. 10-year Treasury bond yield was up by more than 2% on Monday.

The strong U.S. dollar in late session exerted pressure on GBP/USD pair that pulled its prices towards the downward track and hence paired posted losses.

Meanwhile, an internal British government document was leaked on the U.K. tabloid “The Sun” that allegedly outlined the country’s plans in a reasonable worst-case scenario. The second wave of coronavirus, along with the severe flooding and the flu with a no-deal Brexit, could cause a systematic economic crisis. According to that document, the major impact will be on unemployment, disposable incomes, business activity, international trade, and market stability.

The document said that social distancing & mask-wearing would be continued until 2021. The government document also revealed that the navy would be deployed to prevent illegal European fishing boats from clashing with British vessels. The document was dated as of July 2020, and also said that if the U.K. and E.U. failed to reach a post-Brexit trade deal, then hard borders and tariffs will come into effect on January 1, 2021.

Trade talks between both parties have stalled with no breakthrough in sight and the chief Brexit negotiator of European Union, Micheal Barnier has said that the talks were going even backward instead of moving forward. At the same time, the U.K. negotiator, David Frost, said that a little progress had been made. Both sides provide mixed views and raise the confusion amongst investors that have been weighing on GBP/USD pair.

Daily Technical Levels

Support Pivot Resistance
1.3082 1.3092 1.3103
1.3071 1.3113
1.3062 1.3124

 GBP/USD– Trading Tip

The GBP/USD pair is trading sideways above a strong support level if 1.3072. The support here is extended by 1.3074 level, where the bearish breakout of 1.3074 level can extend selling unto 1.3007 level. On the higher side, the next resistance is likely to be found around 1.3155 level. The 50 EMA and the technical indicators such as RSI, MACD, and 50 periods of EMA suggest a selling bias in the Cable. Let’s consider taking selling trades below 1.3075 level, while buying can be seen if the GBP/USD pair continues to close candles over 1.3075 level. 

USD/JPY – Daily Analysis

The USD/JPY pair was closed at 105.979 after placing a high of 105.995 and a low of 105.687. Overall the movement of the USD/JPY pair remained bullish throughout the day. The USD/JPY pair posted small gains on Monday amid the risk-on market sentiment after the FDA approved of coronavirus treatment. However, the lingering US-China tensions and the fact that the U.S. Congress was far from giving any news about the next stimulus kept the market risk sentiment limited.

The U.S. Dollar Index was up on Monday to 93.2 level, and the USD/JPY pair also rose because of improved demand for the U.S. dollar.

However, the main reason for the upward trend was a possible coronavirus treatment that was already being used in different countries. The U.S. Food and Drug Administration has approved the use of blood plasma from recovered patients to treat severely ill coronavirus patients.

The FDA approved this treatment only in case of an emergency and to recover the most severe cases. Whereas, President Donald Trump appealed to the Americans who have recovered from viruses to donate plasma.

This raised the market risk sentiment and weighed on safe-haven Japanese Yen that ultimately pushed the USD/JPY pair on high.

Japanese Yen remained on the back foot on Monday with global equity indexes posting gains at the start of the week. The Dow Jones Industrial Average was up by 0.8%, and the S&P 500 was up by 0.7% on Monday amid improved risk appetite.

Meanwhile, the next stimulus package was still not announced by the U.S. Congress as both Republicans & Democrats were having differences in the size of the package. On the US-China front, the United States and China have already signed the phase one trade deal earlier this year, and China has trouble living up to it. Beijing is supposed to increase the purchase of U.S. exports by 200 Billion U.S. dollars by the end of 2021 in exchange for tariff cuts on Chinese goods by the U.S.

Last week, both parties were scheduled to hold a video conference meeting to discuss the implementations of the phase-one trade deal and issue a review of its progress. But the meeting was canceled by the U.S. President Donald Trump in anger over Beijing for the pandemic outbreak.

The Trump administration has also denied rescheduling the meeting, and it is expected that the review will not be issued. This also raised the uncertainty and kept the risk sentiment under pressure that limited the gains in the USD/JPY pair.

Daily Technical Levels

Support Pivot Resistance
105.7700 105.8500 105.9500
105.6700 106.0300
105.6000 106.1300

 

USD/JPY – Trading Tips

On Tuesday, the USD/JPY is trading sideways in a broad trading range of 106.300 to 105.240. At the movement, the USD/JPY is tossing above and below 50 periods EMA, while the RSI and MACD are in support of a neutral trend. The recent series of Doji and Shooting start candles are suggesting indecision among traders. Sooner or later, we may see USD/JPY prices break out of the range. Once it happens, the USD/JPY may trade bullish over 106.300 to target 107.084. On the lower side, violation of 105.240 level can drive selling unto 104.300. Good luck! 

Categories
Forex Signals

GBP/JPY Supported Over Upward Trendline – Buy Signal Update

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Entry Price – Buy 138.883
Stop Loss – 138.383
Take Profit – 139.383
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 Breaksover Descending Triangle – Brace for Buying

Today in the early European trading session, the AUD/USD currency pair stopped its Asian session losing streak and took further bids at the high around closer to 0.7200 marks mainly due to the upticks in the equity market, supported by the latest optimism over treatment for the highly infectious coronavirus. This, in turn, underpinned the perceived risk currency Australian dollar and contributed to the currency pair gains. 

Today in the early European trading session, the AUD/USD currency pair stopped its Asian session losing streak and took further bids at the high around closer to 0.7200 marks mainly due to the upticks in the equity market, supported by the latest optimism over treatment for the highly infectious coronavirus. This, in turn, underpinned the perceived risk currency Australian dollar and contributed to the currency pair gains. 

Today in the early European trading session, the AUD/USD currency pair stopped its Asian session losing streak and took further bids at the high around closer to 0.7200 marks mainly due to the upticks in the equity market, supported by the latest optimism over treatment for the highly infectious coronavirus. This, in turn, underpinned the perceived risk currency Australian dollar and contributed to the currency pair gains. 

The broad-based U.S. dollar selling bias, triggered by the uncertainty over the next round of the U.S. fiscal stimulus measures, also favored the currency pair buyers. The upbeat market sentiment also drags the U.S. dollar lower. In the meantime, the receding cases in Victoria and the U.S. also helped the currency pair. 

On the contrary, the on-going conflict between the US-China and virus woes in Europe became the key factor that capped further upside for the currency pair. The AUD/USD is currently trading at 0.7185 and consolidating in the range between 0.7152 – 0.7187.

The global market risk sentiment remained well supported by optimism over a possible coronavirus vaccine. These vaccines’ hopes were fueled after the U.S. Food & Drug Administration (FDA) approved the use of blood plasma from recovered patients as a treatment option. The sentiment around the market was also boosted after the reports that the U.S. is considering by-passing normal U.S. regulatory standards to fast-track an experimental coronavirus vaccine from Britain.

Apart from this, the market trading sentiment is rather unaffected by the renewed uncertainties over the much-awaited fiscal package, which has fueled worries over the U.S. economic recovery. It is worth reporting that the U.S. Congress previously showed readiness for reaching an agreement over the latest stimulus measures, but afterward, he took a U-turn from his positive statement. 

At the US-China front, the tussle between the world’s two biggest economies, US-China further intensified following U.S. President Trump raised the possibility of decoupling the U.S. economy from China, a major purchaser of the U.S. goods. These gloomy headlines are playing a negative role in capping the further upside in the currency pair.

At the USD front, the broad-based U.S. dollar remained depressed on the day in the wake of the uncertainties over the next round of the U.S. fiscal stimulus measures. As well as, the weaker tone surrounding the U.S. Treasury bond yields in the wake of upbeat market sentiment further pressured the U.S. dollar and contributed to the pair’s gains. Whereas, the U.S. Dollar Index that tracks the USD against a bucket of other currencies was down, inching down to 93.102.

Looking forward, the market traders will focus on the upcoming speech of U.S. Federal Reserve Chairman Jerome Powell at the Jackson Hole symposium on Thursday. As well as, the USD moves and coronavirus headlines will also closely followed ahead as they could play a key role.


The AUD/USD is taking a bullish turn at 0.7190 mark, passing over 50 EMA resistance mark of 0.7180. On the upper side, the AUD/USD may surge unto 0.7216 mark. The 50 EMA is presently serving as s support, though the mystery is whether to go for buy or sell? We are going long on Aussie, and here’s a trading signal.

Entry Price – Buy 0.71848
Stop Loss – 0.71448
Take Profit – 0.72248
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

GBP/USD Trading Bullish – Fibonacci Retracement in Play! 

Today in the early European trading hours, the GBP/USD currency pair managed to stop its early-day losing streak and drew some modest bids on the day mainly due to the broad-based U.S. dollar weakness, triggered by the market upbeat trading sentiment. The long-lasting deadlock surrounding the much-awaited U.S. fiscal stimulus also weighed on the safe-haven U.S. dollar and contributed to the currency pair gains. 

Today in the early European trading hours, the GBP/USD currency pair managed to stop its early-day losing streak and drew some modest bids on the day mainly due to the broad-based U.S. dollar weakness, triggered by the market upbeat trading sentiment. The long-lasting deadlock surrounding the much-awaited U.S. fiscal stimulus also weighed on the safe-haven U.S. dollar and contributed to the currency pair gains. 

Today in the early European trading hours, the GBP/USD currency pair managed to stop its early-day losing streak and drew some modest bids on the day mainly due to the broad-based U.S. dollar weakness, triggered by the market upbeat trading sentiment. The long-lasting deadlock surrounding the much-awaited U.S. fiscal stimulus also weighed on the safe-haven U.S. dollar and contributed to the currency pair gains. 

On the other hand, the bullish sentiment around the currency pair was further bolstered by the reports that the U.K. was looking forward to record-breaking economic growth in the 3rd-quarter, as per the study by the City of London economists. On the contrary, the long-lasting Brexit woes became the key factor that kept the lid on any additional gains in the currency pair. At this particular time, the GBP/USD currency pair is currently trading at 1.3108 and consolidating in the range between 1.3083 – 1.3115.

The coronavirus vaccine hopes have been supporting the market trading sentiment on the day. As per the latest report, the U.S. Food & Drug Administration (FDA) authorized the use of blood plasma from recovered patients as a treatment option. Also supporting the market trading sentiment could be the reports that the Trump Administration was considering by-passing normal U.S. regulatory standards to fast-track an innovative coronavirus vaccine from the U.K. This, in turn, undermined the safe-haven U.S. dollar and contributed to the pair gains.

At the USD front, the broad-based U.S. dollar could not maintain its positive sentiment and edged lower on the day as doubts over the U.S. economic recovery exceeded amid on-going failure over the much-awaited aid package. The losses in the U.S. dollar could also be attributed to the uptick in the U.S. stock futures. The losses in the U.S. dollar kept the currency pair higher. Whereas, the U.S. Dollar Index that tracks the USD against a bucket of other currencies was down to 93.102.

At the Brexit front, the fears of the no-deal Brexit were further fueled after Friday’s failure to reach any agreements by the European Union (E.U.) and the U.K.’s policymaker. Whereas, both parties EU-UK blaming each other for the failure of reaching a deal. Thus these fears capped further upside in the currency pair. 

On the positive side, the currency pair gains could also be associated with the reports that the U.K. is set for record-breaking economic growth in the third quarter as per the study by the City of London economists. It should be noted that the Small and Medium Enterprises (SMEs) gain optimism, though slowly, with the latest score of 95 at the start of the 3rd-quarter. Moreover, the Financial Times (F.T.) also shared that the U.K. seems to be on track to enjoy a record-breaking economic recovery in the 3rd-quarter, backed by consumers who are spending again after easing lockdowns restrictions and a planned reopening of schools.

Apart from this, the fears of coronavirus also decreased in the U.K. after seen the low pace in cases. According to the latest report, 1,041 new cases, down from 1,288 on Saturday, as per Reuters. In the absence of the significant data/events on the day, the market traders will focus on the upcoming speech of U.S. Federal Reserve Chairman Jerome Powell at the Jackson Hole symposium on Thursday. As well as, the USD moves and coronavirus headlines will also closely followed ahead as they could play a key role.


The GBP/USD pair is trading sideways above a strong support level if 1.3072. The support here is extended by 1.3074 level, where the bearish breakout of 1.3074 level can extend selling unto 1.3007 level. On the higher side, the next resistance is likely to be found around 1.3155 level. The 50 EMA and the technical indicators such as RSI, MACD, and 50 periods of EMA suggest a selling bias in the Cable. Let’s consider taking selling trades below 1.3075 level, while buying can be seen if the GBP/USD pair continues to close candles over 1.3075 level. 

Entry Price – Buy 1.31144
Stop Loss – 1.30744
Take Profit – 1.31544
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, August 24 – Top Trade Setups In Forex – Choppy Sessions In Play! 

On the news front, the market isn’t expected to offer any major economic event today; therefore, most of the market movement is likely to be based upon technical levels. Choppy sessions are expected today.

On the news front, the market isn’t expected to offer any major economic event today; therefore, most of the market movement is likely to be based upon technical levels. Choppy sessions are expected today.

On the news front, the market isn’t expected to offer any major economic event today; therefore, most of the market movement is likely to be based upon technical levels. Choppy sessions are expected today.

Economic Events to Watch Today  

 

 

EUR/USD – Daily Analysis

The EUR/USD closed at 1.17953 after placing a high of 1.18828 and a low of 1.17539. Overall the movement of EUR/USD remained bearish throughout the day. The EUR/USD pair dropped on Friday and bottomed at 1.1753; it’s lowest since August 12. A stronger U.S. dollar and the poor economic data from Europe weighed on EUR/USD pair.

At 12:15 GMT, the French Flash Services PMI for August fell to 51.9 from the expected 56.3, and the previous 57.3, weighed on Euro. The French Flash Manufacturing PMI also declined to 49.0 against the estimated 53.0 and previous 52.4 and added pressure on single currency Euro.

At 12:30 GMT, the German Flash Manufacturing PMI rose to 53.0 from the anticipated 52.2 and supported Euro; however, the German Flash Services PMI came in as 50.8 against the expected 55.3 and weighed on Euro on Friday.

At 13:00, the Flash Manufacturing PMI for the whole Eurozone declined to 51.7 in August from the projected 52.7 and previous 51.8. The Flash Services PMI for the whole bloc also fell to 50.1 against the forecasted 54.6 and added pressure on EUR.

Apart from German Manufacturing PMI, all the PMI from the whole bloc, including biggest economies, came in against EUR, and hence, EUR/USD pair suffered. The data showed that only German manufacturing activity was expanded in August. At the same time, other countries, along with whole euro bloc’s manufacturing & services activities, were contracted in August. Meanwhile, the greenback was the top performer on Friday with DXY up by 0.5% on 93.5 level, the highest since Monday.

The U.S. Dollar was already supported by the release of Fed Meeting minutes on Wednesday, and on Friday, the support was extended after the release of positive PMI and Home Sales data.

At 18:45 GMT, the Flash Manufacturing PMI and the Flash Services PMI were released from the U.S. The Manufacturing PMI surged to 53.6 against the expected 51.9, and the Services PMI was surged to 54.u from the 50.9 forecasted. The expansion in the Manufacturing & Services sector of the U.S. gave strength to the U.S. dollar. At 19:00 GMT, the Existing Home Sales in July exceeded the expectations of 5.40M and came in as 5.86Mand supported the U.S. dollar.

The strong U.S. dollar exerted more pressure on EUR.USD prices and dragged them down at the ending day of the week. Meanwhile, the Euro currency was also under pressure because of the resurgence of coronavirus cases in Europe. In recent days France, Germany, and Italy have experienced their highest daily case counts since the spring, and Spain has found itself amid a major outbreak.

Over the past two weeks, Spain has seen Europe’s fastest rising caseload with 142 positive cases per 100,000 people. The number had risen more than 3,000 by the time the state of emergency ended on June 21.

The EUR/USD pair was also under pressure on Friday because of the possible entry of a new phase of the pandemic in Europe. 

Daily Technical Levels

Support Pivot Resistance
1.1787 1.1797 1.1807
1.1777 1.1817
1.1767 1.1827

 EUR/USD– Trading Tip

The EUR/USD pair fell sharply from 1.1954 level to 1.1790 level. For now, the pair is likely to find an immediate resistance at 1.1806 level, and a bullish breakout of 1.1806 level can lead EUR/USD prices towards 1.1886 level. On the lower side, the violation of the 1.1751 level can extend the selling trend until 1.1706.

  

GBP/USD – Daily Analysis

 The GBP/USD pair was closed at 1.30884 after placing a high of 1.32550 and a low of 1.30588. Overall the movement of GBP/USD pair remained bearish throughout the day. At 04:01 GMT, the GfK Consumer Confidence in August declined to -27 against the forecasted -25 and weighed on British Pound and added in the losses of GBP/USD pair. At 11:00 GMT, the Public Sector Net Borrowing increased to 25.9B from the expected 28.3B and supported British Pound. The Retail Sales for July also increased to 3.6% from the forecasted 2.0% and supported British Pound.

At 13:30 GMT, the Flash Manufacturing MI from Britain exceeded the expectations of 54.0 and came in as 55.3 and supported GBP. The Flash Services PMI also rose to 60.1 against the estimated 57.0 and supported GBP. At 15:00 GMT, the CBI Industrial Order Expectation in August was declined to -44 from the anticipated -34 and weighed on GBP/USD pair and added in its losses on Friday.

On the other hand, at 18:45 GTM, the Flash Manufacturing PMI from the U.S. surged to 53.6 from the anticipated 51.9 and supported the U.S. dollar that weighed on currency pair. The Flash Services PMI also surged to 54.8 against the anticipated 50.9 and supported the U.S. dollar. The Existing Home Sales exceeded the estimate of 5.40M and came in as 5.86M and supported the U.S. dollar that ultimately weighed on GBP/USD pair.

Meanwhile, on Brexit front, On Friday, the British and European Union negotiator made slight progress towards the post-Brexit trade deal in talks this week. Both sides were concerned that time to reach an agreement was running out before an end-year deadline.

The E.U. Chief negotiator, Micheal Barnier, said that those who were hoping for negotiations to move swiftly forward this week would be disappointed. However, his British counterpart, David Frost, said that a deal on post-Brexit relations was still possible and was still London’s goal, but it would not be easy to achieve.

Frost said that several significant areas remain to be resolved, and even when there was a broad understanding between negotiators, there was still much work to do as a time for both sides was short.

Britain shifted to be the leading country to ever leave the European Union on January 31 after 46 years of membership. Both sides are now negotiating a new partnership to be effective from 2021 on everything from trade and transport to energy and security. If both sides failed to reach an agreement, Britain would follow the World Trade Organization’s rules.

The attest round of talks between the U.K. & E.U. was also not fruitful, and it has decreased hopes for a post-Brexit deal. It means the hopes about the no-Brexit deal returned in the market and weighed on GBP/USD pair that caused a sudden fall in its prices on Friday.

The U.K. economy is also under pressure as the furlough scheme that has protected millions of jobs is scheduled to end in October. This would hit the labor market and increase unemployment, making it difficult to recover from the record 20% slump in the second quarter of this year.

These fears have also weighed on single currency Pound and kept the pair GBP/USD under pressure.

Daily Technical Levels

Support Pivot Resistance
1.3082 1.3092 1.3103
1.3071 1.3113
1.3062 1.3124

 GBP/USD– Trading Tip

On Monday, the GBP/USD pair is trading sideways above a strong support level if 1.3072. The support here is extended by 1.3074 level, where the bearish breakout of 1.3074 level can extend selling unto 1.3007 level. On the higher side, the next resistance is likely to be found around 1.3155 level. The 50 EMA and the technical indicators such as RSI, MACD, and 50 periods of EMA suggest a selling bias in the Cable. Let’s consider taking selling trades below 1.3075 level, while buying can be seen if the GBP/USD pair continues to close candles over 1.3075 level. 

USD/JPY – Daily Analysis

The USD/JPY pair was closed at 105.789 after placing a high of 106.070 and a low of 105.439. Overall the movement of USD/JPY remained almost flat yet slightly bullish. On Friday, the USD/JPY pair dropped in the first half of the day after the release of Japanese Manufacturing PMI and the persisting uncertainty due to ongoing geopolitical tensions. However, in the second half of the day, the USD/JPY pair recovered its early daily losses and rose to post slight gains amid better than expected U.S. economic data.

AT 04:30 GMT, the National Core CPI for the year declined to 0.0% from the estimated 0.1% and weighed on Japanese Yen. At 05:30 GMT, the Flash Manufacturing PMI from Japan in August rose to 46.6 against the estimated 45.0 and came in favor of Japanese Yen. The improvement in the manufacturing sector in Japan gave a push to Japanese Yen and dragged the pair USD/JPY to the lower level near 105.400.

However, after the release of positive macroeconomic data from the U.S., the USD/JPY pair started to rise and converted its daily losses in gains. At 18:45 GMT, the Flash Manufacturing PMI in August rose to 53.6 against the projected 51.9, and the Flash Services PMI rose to 54.8 against the anticipated 50.9.

The expansion in the U.S. manufacturing and services sector gave strength to the U.S. dollar that was more supported by the release of U.S. Existing Home Sales data. The Existing Home Sales in the U.S. for July rose to 5.86M from the anticipated 5.40M and gave a push to the U.S. dollar that added strength in USD/JPY pair.

The U.S. Dollar Index (DXY) that measures the value of the U.S. dollar against the basket of six major currencies rose by0.5% on Friday towards 93.5 level. It also helped USD/JPY pair to recover some of its daily losses on Friday.

Meanwhile, the ongoing geopolitical tensions between U.S. & China, along with the U.S. & Iran tensions, also kept the pair USD/JPY under pressure at the ending day of the week. On the US-China front, the US Trump administration denied acknowledging the plans to meet China over the discussion of implementations of the phase-one trade deal. The U.S. Commerce ministry spokesman Gao Feng said that in the coming days, the U.S. & China would hold meetings to discuss phase one trade deal.

However, the denial of any such meeting by Trump Administration added uncertainty in the market and kept the pair USD/JPY under pressure.

N the other hand, the U.S. called all U.N. sanctions to be restored on Iran after a violation of the 2015 nuclear deal. However, 13 out of 15 U.N. council members wrote against the U.S.’s request to impose sanctions on Iran as in 2018; the U.S. ended its legal terms with the 2015 nuclear deal by calling it the worst deal ever.

Meanwhile, the Chairman of China Banking and Insurance Regulatory Commission, Guo Shuqing said that the U.S. had placed domestic laws above international laws, which will affect the Chinese people and affect the whole world people including Americans. Shuqing also mentions that these sanctions by the U.S. on Hong Kong lacked legality and violated the market economy’s principles. The ongoing geopolitical tensions increased the uncertainty, which supported the Japanese Yen safe0haven status and contributed to the flat movement of the USD/JPY pair on Friday.

Daily Technical Levels

Support Pivot Resistance
105.7700 105.8500 105.9500
105.6700 106.0300
105.6000 106.1300

 

USD/JPY – Trading Tips

The USD/JPY is trading sideways in a broad trading range of 106.300 to 105.240. At the movement, the USD/JPY is tossing above and below 50 periods EMA, while the RSI and MACD are in support of a neutral trend. The recent series of Doji and Shooting start candles are suggesting indecision among traders. Sooner or later, we may see USD/JPY prices break out of the range. Once it happens, the USD/JPY may trade bullish over 106.300 to target 107.084. On the lower side, violation of 105.240 level can drive selling unto 104.300. Good luck! 

Categories
Forex Signals

GBP/JPY Supports Over Upward Trendline – 138.600 Level Eyed! 

During the Friday’s European trading session, the GBP/JPY extended its previous session losing streak and dropped below the 138.600 marks mainly due to the risk-off market sentiment, triggered by the multiple worsening headlines like dismal U.S. jobs data and US-Iran tussle. This eventually underpinned the safe-haven Japanese yen currency and contributed to the pair declines. 

During the Friday’s European trading session, the GBP/JPY extended its previous session losing streak and dropped below the 138.600 marks mainly due to the risk-off market sentiment, triggered by the multiple worsening headlines like dismal U.S. jobs data and US-Iran tussle. This eventually underpinned the safe-haven Japanese yen currency and contributed to the pair declines. 

During the Friday’s European trading session, the GBP/JPY extended its previous session losing streak and dropped below the 138.600 marks mainly due to the risk-off market sentiment, triggered by the multiple worsening headlines like dismal U.S. jobs data and US-Iran tussle. This eventually underpinned the safe-haven Japanese yen currency and contributed to the pair declines. 

At this moment, the GBP/JPY is trading at 138.600 and consolidating in the range between 138 – 139.90. The U.S. stock futures failed to maintain its early-day gains and turned negative, possibly due to the on-going political impasse over the shape and size of the next U.S. fiscal recovery package. The disappointing U.S. labor market data also exerted downside pressure on the market by fueling the worries over the U.S. economic recovery. At the data front, the U.S. showed that 1.106 million Americans declared unemployment benefits during the previous week, exceeding the anticipated 925,000 claims as well as last Thursday’s 971,000 figure. 

The U.S. House Speaker Nancy Pelosi stepped back from her previous positive remarks over the COVID-19 relief bill while saying that the “Timing is not right for a smaller coronavirus relief bill.” This, in turn, undermined the risk-tone in the market. Also weighed on the market trading sentiment was the US-Iran tussle. Trump administration remains tough and adds worries for Iran after showing the intention to restore almost all United Nations (U.N.) sanctions. As per the latest report, U.S. Secretary of State Mike Pompeo announced that we will strongly push arms embargo and do everything to enforce them. These gloomy headlines weighed on the market sentiment and contributed to the currency pair losses by underpinning the safe-haven Japanese yen.

Apart from this, the fears of rising COVID-19 cases in the U.S., and some of the notable Asian nations like India constantly fueling fears that the economic recovery could be halt, which also underpinned demand for the Japanese yen and kept the currency pair down. However, these fears were further boosted by the Federal Reserve’s Wednesday’s comments that the path to economic recovery from COVID-19 remains highly uncertain. 

The reason for the risk-off market sentiment could also be attributed to the latest U.S. rump administration statement against the Chinese commerce department’s comments that trade talks will happen soon. The Trump administration did not goes with the comments made by the Chinese Commerce Dept. spokesman Mr. Gao Feng that trade talks will resume in the coming days. However, the reason could be the long-lasting tension between both parties, leading the U.S. president to be angry with China. 


During the early U.S. session, we opened a forex trading signal on the GBP/JPY currency pair at 138.900 level with a stop loss at 138.550 level. But soon, we realized that the pair isn’t likely to reverse over 138.800 support. Therefore, we decided to close the signal at a minimum loss of 9 pips. Let’s wait a bit before taking another p[osition in the GBP/JPY currency pair. Good luck! 

Categories
Forex Signals

GBP/USD Breaks Below Upward Channel – Update on Signal! 

The GBP/USD gained positive traction for the second straight day and refreshed the intra-day high around 1.3240-50 level, mainly due to Friday’s upbeat U.K. Retail Sales, which initially underpinned the Pound and contributed to the currency pair gains. On the other hand, the broad-based U.S. dollar fresh weakness, backed by the downbeat U.S. jobs data, also exerted a bullish impact on the currency pair. 

The GBP/USD gained positive traction for the second straight day and refreshed the intra-day high around 1.3240-50 level, mainly due to Friday’s upbeat U.K. Retail Sales, which initially underpinned the Pound and contributed to the currency pair gains. On the other hand, the broad-based U.S. dollar fresh weakness, backed by the downbeat U.S. jobs data, also exerted a bullish impact on the currency pair. 

The GBP/USD gained positive traction for the second straight day and refreshed the intra-day high around 1.3240-50 level, mainly due to Friday’s upbeat U.K. Retail Sales, which initially underpinned the Pound and contributed to the currency pair gains. On the other hand, the broad-based U.S. dollar fresh weakness, backed by the downbeat U.S. jobs data, also exerted a bullish impact on the currency pair. 

On the contrary, the Brexit talks’ lack of progress limited any additional gains in the currency pair. At a particular time, the GBP/USD currency pair is currently trading at 1.3200 and consolidating in the range between 1.3200 – 1.3255. 

At the data front, the U.K. retail sales arrived at +3.6% over the month in July. Vs +2.0% expected and +13.9% previous. While the core retail sales, stripping the auto motor fuel sales, unchanged at +2.0% MoM vs. +0.2% expected and +13.5% previous. Annually, the U.K. retail sales remained unchanged at +1.4% in July vs. 0.0% expected and -1.6% while the core retail sales also increased to +3.1% in the reported month against +1.5% expectations and +1.7% previous.

Across the pond, the uncertainty over the next round of the U.S. fiscal stimulus measures, and the unexpected rise in the U.S. Initial Weekly Jobless Claims, both factors have fueled the concerns about the U.S. economic recovery. At the data front, the U.S. showed that 1.106 million Americans claimed unemployment benefits during the previous week, exceeding the anticipated 925,000 claims as well as last Thursday’s 971,000 figure. 

In the meantime, the U.S. House Speaker Nancy Pelosi recently took a U-turn from her previous positive remarks over the COVID-19 relief bill and said that it was not the right time for a small stimulus package. In turn, this undermined the already weak U.S. dollar and remained supportive of the bid tone surrounding the GBP/USD currency pair.

However, the losses in the U.S. dollar could also be attributed to the uptick in the U.S. stock futures. The losses in the U.S. dollar kept the currency pair higher. Whereas, the U.S. Dollar Index that tracks the USD against a bucket of other currencies was down by 0.9% to 92.692 by 10:13 PM ET (3:13 AM GMT).

At the Brexit front, the Brexit talks’ lack of progress kept the currency pair trader cautious. It is worth recalling that the 7th-round of Brexit talks failed to give any clue over the tough issues like fisheries and a level playing field. Looking forward, the market traders will keep their eyes on the UK PMI prints for some significant direction in the pair. As well as, the U.S. preliminary readings of August month PMIs will also be key to watch. In the meantime, the headlines concerning the US COVID-19 aid package, virus figures, and Sino-American trade can also impact the pair’s movement.


The GBP/USD is falling dramatically from 1.3157 level to 1.3060 level. It has already disrupted the upward trendline support mark of 1.3135 level. The creation of three black crows pattern reinforces robust bearish bias for the GBP/USD pair. Anyhow, we are already out at a profit and closed profit. For now, we should look for buying trades at over 1.3062 level. Good luck! 

Categories
Forex Signals

Gold Signal Hit 75 Green Pips – Brace for Second Trade!


Entry Price – Sell 1922.66
Stop Loss – 1928.66
Take Profit – 1915.16
Risk to Reward – 1:11.71
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 Bearish Breakout – Brace for Selling!

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Entry Price – Sell 1927.36
Stop Loss – 1925.68
Take Profit – 1907.68
Risk to Reward – 1:11.71
Profit & Loss Per Standard Lot = +$200/ +$2000
Profit & Loss Per Micro Lot = +$20/ +$200

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 Below Double Top – Quick Update on Signal!

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Entry Price – Sell 1.3193
Stop Loss – 1.3233
Take Profit – 1.3153
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, August 21 – Top Trade Setups In Forex – Eyes in PMI Figures! 

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

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

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

Economic Events to Watch Today  

 

 

EUR/USD – Daily Analysis

Today in the Asian trading hours, the EUR/USD currency pair has succeeded in stopping its Thursday’s losing streak and continues to gain positive traction just closer to 1.1900 level, mainly due to the broad-based U.S. dollar weakness, triggered by the dismal U.S. Jobless Claims data. The upbeat market sentiment and on-going uncertainty surrounding the much-awaited U.S. fiscal stimulus also weighed on the safe-haven U.S. dollar and contributed to the currency pair gains. 

Across the pond, the shared currency continues to gaining bullish traction as most of the investors believe that the European Union (E.U.) will reach an agreement on a coronavirus recovery package for its members in late July. This, in turn, the currency pair has been flashing green since the week start. On the contrary, the rising coronavirus cases in Germany and France turned out to be a major factor that kept the lid on any further gains in the currency pair. 

As of writing, the EUR/USD currency pair is currently trading at 1.1882 and consolidates in the range between the 1.1856 – 1.1883. However, traders are cautious about placing any strong position ahead of German PMI. Moving on, the currency pair will likely put further bids if the preliminary German and Eurozone Markit manufacturing, services and composite PMI data for August blow past expectations on the day, this, in turn, bolstering hopes for faster economic recovery. On the contrary, the said, EUR/USD’ currency pair may face losses and revisit Thursday’s low of 1.18 if the German and Eurozone data prints below estimates. 

However, this data is scheduled to release at 07:30 GMT, and it is anticipated that German Manufacturing PMI increased to 52.5 from July’s 51. But, the progress pace in the activity is expected to have increased in August. Likewise, the Eurozone Manufacturing PMI is anticipated to increase to 52.9 from 51.8. Thus, the above-forecast data will fuel recovery hopes and decrease the case for further monetary stimulus from the European Central Bank. 

On the flip side, the data published by the U.S. showed that 1.106 million Americans declared unemployment benefits during the previous week, exceeding the anticipated 925,000 claims and last Thursday’s 971,000 figure. As a result, the U.S. dollar failed to maintain its previous Fed-gains and edged lower. 

In the meantime, the U.S. House Speaker Nancy Pelosi stated, This time seems not right for a smaller coronavirus relief bill.” The Democrat earlier showed a willingness to cut the aid package amount demand in half to renew hopes of America’s much-awaited stimulus. But as of now, the uncertainty remains on the cards amid the policymaker’s differences.

As in result, the broad-based U.S. dollar reported losses on the day as the possibility of the U.S. Congress agreeing to a fiscal stimulus bill this month has weakened amid political differences, which eventually destroyed hopes for a quick U.S. economic recovery. As well as, the doubts over the U.S. economy recover further fueled after the dismal US Jobs data. However, the losses in the U.S. dollar helped the currency pair to stay higher. Whereas, the U.S. Dollar Index that tracks the USD against a bucket of other currencies was down, inching down 0.09% to 92.692 by 10:13 PM ET (3:13 AM GMT).

At the coronavirus front, the figures of coronavirus cases increasing day by day. Whereas, the total number of cases crossed more than 231,284 figures so far, as per the report of German disease and epidemic control center, Robert Koch Institute (RKI). Although, these fears have been playing a negative role to cap further gains in the currency pair.

The market traders will keep their eyes on the German and Eurozone Markit manufacturing, services, and composite PMI Data. As well as, the headlines concerning the US COVID-19 aid package, virus figures, and Sino-American trade can also impact the pair’s movement.

Daily Technical Levels

Support Pivot Resistance
1.1817 1.1843 1.1884
1.1775 1.1911
1.1749 1.1952

 EUR/USD– Trading Tip

The EUR/USD pair has violated the sideways range of 1.1853 to 1.1830, and now it’s heading higher towards the next technical resistance level of 1.1915 level. On the lower side, the EUR/USD is likely to gain support at the 1.1860 level. Below 1.1860, the next support is likely to be found around the 1.1832 level. The bullish bias remains dominant today.

  

GBP/USD – Daily Analysis

The GBP/USD pair was closed at 1.32135 after placing a high of 1.32246 and a low of 1.30642. Overall the movement of GBP/USD pair remained bullish throughout the day. The Pound continued its strength against the U.S. dollar on Thursday amid increased hopes that the U.K. and E.U. will find a breakthrough in the latest round of post-Brexit talks that will conclude on Friday.

Few investors were betting that both sides will be able to find common ground on the key sticking issues, including access to British fishing waters and the level playing field rules, as the latest round of talks is set to end on Friday. The level playing field rules consist of a set of standard rules to ensure firms in the U.K. and E.U. compete on an equal footing, and Britain has been arguing against it.

The rise in GBP/USD pair on Thursday was followed by the increased optimism around the Brexit talks and the broad-based U.S. dollar weakness amid poor than expected U.S. jobless claims.

Investor’s focus has now shifted more towards the final round of Brexit talks in September, to see whether a deal could be reached. E.U. Brexit negotiator Michel Barnier has said that an agreement should be agreed by October to allow the E.U. to ratify the deal.

It has already clear that if no deal was agreed between U.K. and E.U., then U.K. will follow the WTO terms, which will be harsh than the current trade agreement that will lapse at the end of Brexit transition period on December 31.

However, earlier Prime Minister Boris Johnson decided against extending the transition period beyond the end of 2020 and signaled optimism that a deal could be reached by the fall, it triggered bullish momentum in the GBP/USD pair.

On the U.S. front, the Philly Fed Manufacturing Index declined to 17.2 from the expected 21.0 and weighed on the U.S. dollar. The Unemployment Claims from last week also rose to 1106K from the expected 930K and weighed on the U.S. dollar. The weak U.S. dollar added gains in the GBP/USD pair and closed the day with a strong bullish candle.

On Friday, the Retail Sales and Public Net Borrowings from Britain, along with the Consumer Confidence and Manufacturing & Services PMI data, will release that will impact on GBP/USD pair. The more important release will be the result of the latest Brexit talks with E.U. that will strongly impact the GBP/USD pair. From the U.S. side, the Flash manufacturing & Services PMI data will remain under focus by investors.

 Daily Technical Levels

Support Pivot Resistance
1.3108 1.3167 1.3271
1.3005 1.3329
1.2946 1.3433

 GBP/USD– Trading Tip

On Friday, the GBP/USD pair is trading at 1.3250 level, and the pair was trading in between an ascending triangle pattern that has now been violated. The triangle pattern was extending resistance at 1.3125 level, and above this, the next resistance is likely to be found around 1.3267 level. At the same time, the support stays at 1.3186 and 1.3137 level. Bullish bias seems dominant today.

  

USD/JPY – Daily Analysis

The USD/JPY pair was closed at 106.111 after placing a high of 106.150 and 105.101. Overall the movement of the USD/JPY pair remained bullish throughout the day. After falling for three consecutive days, the USD/JPY pair rose sharply and reached above 106.00 level on Wednesday amid broad-based U.S. dollar strength. 

The FOMC minutes of the July meeting revealed that policymakers supported cap bond yields and made it unlikely for the Fed to introduce yield curve control in September. In response to Fed minutes, the U.S. Dollar Index rose above 93 levels, and the U.S. 10-year Treasury yields rose about 0.9% and supported the U.S. dollar that ultimately gave strength to USD/JPY pair on Wednesday.

The sharp rally in USD/JPY was also supported by the comments of a senior Trump administration official who said that a new stimulus relief bill of small amount than $1 trillion or $3 trillion could be agreed upon and provide strength to the economy. He proposed a new bill of $500 billion as the previously expected stimulus bills proposed by Republicans & Democrats was failed to reach a consensus. This new bill also raised hopes and supported the U.S. dollar that pushed USD/JPY prices further on the upside.

On the data front, at 04:50 GMT, the Core Machinery Orders in June from Japan declined to -7.6% from the previous 1.7% and fell short of the expected 2.1% and weighed on Japanese Yen that added strength to the advancing USDJPY pair. Whereas, the Trade Balance from Japan showed a deficit of -0.03T against the forecasted -0.44T and the previous -0.41T and supported Japanese Yen.

On the other hand, the US-China relations were further dented after Donald Trump revealed the main reason behind the delay in review meetings between U.S. & Chinese officials on August 15 on Wednesday. According to Trump, he was furious over Beijing’s handling of coronavirus situations and disturbing the global economy, and that was the reason he canceled the review meeting. He said that he did not want to meet China for now.

The negative statement a day after blacklisting the Chinese telecom Huawei group in America escalated the tensions further and weighed on risk sentiment. This helped the U.S. dollar gain strength against its safe-haven status and raised the USD/JPY pair in the market.

Mark Meadows, the White House Chief of Staff, informed on Wednesday that no new high-level talks were rescheduled between the U.S. & China as two sides were already in touch regarding the implementation of the phase-one trade deal. This raised the risk sentiment and weighed on Japanese Yen that ultimately added gains in USD/JPY pair.

Daily Technical Levels

Support Pivot Resistance
105.6200 105.9200 106.1000
105.4300 106.4100
105.1300 106.5900

 

USD/JPY – Trading Tips

The USD/JPY has violated the upward trendline support level of 106.345, as it fell sharply in the wake of increased safe-haven appeal in the market. At the movement, the USD/JPY pair is holding below 50 periods EMA, while the RSI and MACD are in support of bearish trend. The recent candle is closing above 105.344 level, suggesting strong odds of bullish correction until 106. However, the violation of 106 can lead to USD/JPY prices towards the 104.600 support level. Good luck! 

Categories
Forex Signals

GBP/USD Signal Runs Against Us – Let’s Close Manually! 

Today in the early European trading hours, the GBP/USD currency pair failed to stop its previous session declining streak and took further offer below the 1.3100 level while represented 0.15% losses on the day mainly due broad-based U.S. dollar on-going strength. On the other hand, the reason behind the currency pair declines could also be associated with the coronavirus woes. The rising Brexit uncertainty also joined the on-going pessimism around the Cable and contributed to the currency pair losses. In the meantime, the reports that more than two years would be needed to reach pre-pandemic U.K. economy size also weighed on the Cable. At this particular time, the GBP/USD currency pair is currently trading at 1.3089 and consolidating in the range between 1.3064 – 1.3119.

Today in the early European trading hours, the GBP/USD currency pair failed to stop its previous session declining streak and took further offer below the 1.3100 level while represented 0.15% losses on the day mainly due broad-based U.S. dollar on-going strength. On the other hand, the reason behind the currency pair declines could also be associated with the coronavirus woes. The rising Brexit uncertainty also joined the on-going pessimism around the Cable and contributed to the currency pair losses. In the meantime, the reports that more than two years would be needed to reach pre-pandemic U.K. economy size also weighed on the Cable. At this particular time, the GBP/USD currency pair is currently trading at 1.3089 and consolidating in the range between 1.3064 – 1.3119.

Today in the early European trading hours, the GBP/USD currency pair failed to stop its previous session declining streak and took further offer below the 1.3100 level while represented 0.15% losses on the day mainly due broad-based U.S. dollar on-going strength. On the other hand, the reason behind the currency pair declines could also be associated with the coronavirus woes. The rising Brexit uncertainty also joined the on-going pessimism around the Cable and contributed to the currency pair losses. In the meantime, the reports that more than two years would be needed to reach pre-pandemic U.K. economy size also weighed on the Cable. At this particular time, the GBP/USD currency pair is currently trading at 1.3089 and consolidating in the range between 1.3064 – 1.3119.

At the Brexit front, the 7th-round of Brexit talks seemed to have collapsed without giving any clue over the tough issues like fisheries and a level playing. However, the reason could be associated with the latest disagreements over the U.K. truckers’ access to Europe. This, in turn, kept the traders cautious.

Also weighing on the quote could be the latest report that the U.K. economy will not fully recover from its on-going historic downturn for at least two years. Thus, there are little chances that the BOE will use negative interest rates to boost the upswing.

However, the downbeat trading sentiment could be attributed to the US-China, and Washington-Iran tussle. As per the latest report, the U.S. President Donald Trump urged to restore the U.N. sanctions on Iran. The Secretary of State Mike Pompeo also warned that the U.S. would hold Russia and China accountable if they even try to interfere in the Iran issue. 

Furthermore, the intensifying tensions between the U.S. and China also added a burden around the market trading sentiment. It is worth reporting that the U.S. President Donald Trump suspended the trade talks with China while White House Chief of Staff Mark Meadows confirmed that the trade talks would not happen soon. However, these lingering Sino-US tensions kept the equity market under pressure and gave the broad-based U.S. dollar a safe haven status.

As a 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 U.S. Federal Reserve’s recent report, which pushed the U.S. Treasury yields higher and helped the U.S. dollar further.

Looking forward, the market traders will keep their eyes on the U.S. Jobless Claims, Philly Fed Manufacturing Survey, and the European Central Bank (ECB) policy meeting minutes, which will release later today. As well as, the headlines concerning the US COVID-19 aid package, virus figures, and Sino-American trade can also impact the pair’s movement.


We opened a sell signal in the GBP/USD pair as the pair broke below an upward trendline, which was supporting the pair at 1.3130 level. Closing of candles below this level was confirming the odds of selling bias in the market, but the pair started to reverse back before hitting our take profit. The recent bullish engulfing suggests bullish trend continuation, and it may lead to the GBP/USD prices until the 1.3135 resistance level. But until then, our signal won’t survive as our stop loss was 1.3124. Let’s close it manually now and wait for another trade setup. Good luck! 

Categories
Forex Signals

AUD/USD Breaks Below Upward Channel – Quick Update On Signal! 

The AUD/USD pair closed at 0.72426 after, a high of 0.72643 and a low of 0.72086. Overall, the movement of the AUD/USD pair remained bullish throughout the day. The AUD/USD pair extended its gains, rising for the third consecutive day on Tuesday, as Australia’s central bank does not see any need to ease the policy further.

The AUD/USD pair closed at 0.72426 after, a high of 0.72643 and a low of 0.72086. Overall, the movement of the AUD/USD pair remained bullish throughout the day. The AUD/USD pair extended its gains, rising for the third consecutive day on Tuesday, as Australia’s central bank does not see any need to ease the policy further.

The AUD/USD pair closed at 0.72426 after, a high of 0.72643 and a low of 0.72086. Overall, the movement of the AUD/USD pair remained bullish throughout the day. The AUD/USD pair extended its gains, rising for the third consecutive day on Tuesday, as Australia’s central bank does not see any need to ease the policy further.

The Reserve Bank of Australia held its cash rates at a record low of 0.25% in August, after cutting them in March. In its August policy meeting, the bank said that the existing measures were operating broadly, as anticipated, with an economic recovery underway in most of the country.

The minutes of the August policy meeting, held on August 4, revealed that the recovery was slower than earlier projections expected, because of the coronavirus outbreak in the state of Victoria, as this had a major impact on the economy.

Meanwhile, the Governor of the RBA, Philip Lowe, said that there was a need for greater fiscal spending, to revive Australia’s ailing economy, as there were limits to what monetary policy could do. Members of the RBA considered fiscal and monetary support necessary, to support the labor market, as the unemployment rate was at a 22-year high, and wage growth was at an all-time low.

The minutes revealed that almost 30% of Australia’s working-age population was relying on the government’s COVID-19-related welfare payments.

The RBA said that the net positive fiscal impact from the expected change in Australian government finances was equivalent to around 4% of the GDP in 2019-20, and 5% in 2020-21. The AUD/USD pair continued to post gains, after the release of the minutes, reaching a level of above 0.72500.

Furthermore, the weakness of the broad-based US dollar also added to the gains of the AUD/USD pair, as the delay in the next US stimulus aid package was weighing on the local currency. The US Dollar Index fell to a 2-year low, close to 92.2, and the US Treasury yields also slumped, weighing heavily on the US dollar.

The weak US dollar then added strength to the AUD/USD pair, supporting the bullish movement on Tuesday. However, in the late American session, the pair lost some of its early gains of the day, because of the positive US data.

The Building Permits from the US in July rose to 1.50M, compared to the expected 1.33M, lending support to the US dollar. The Housing Starts also rose to 1.50M, in contrast to the anticipated 1.23M, pushing the US dollar higher, and weighing on the AUD/USD pair, which lost some of its early gains of the day as a result.


The AUD/USD pair continues to trade sideways, within a narrow trading range of 0.7257 – 0.7230. The buying and selling opportunities can be seen within this range, but when the minutes of the FOMC meeting are released, the AUD/USD could exhibit either a bearish or a bullish breakout. On the higher side, the next resistance could be found at around 0.7280, while support holds at 0.7210. 

Entry Price – Sell 0.7168
Stop Loss – 0.7208
Take Profit – 0.7128
Risk to Reward – 1:1
Profit & Loss Per Standard Lot = -$400/ +$400
Profit & Loss Per Micro Lot = -$40/ +$40

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

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

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Categories
Forex Market Analysis

Daily F.X. Analysis, August 20 – Top Trade Setups In Forex – Jobless Claims In Focus! 

The news site of the market is likely to offer high impact events from the U.S. while the major focus will remain on the Philly Fed Manufacturing Index and Unemployment Claims. U.S. dollar may exhibit mixed bias until the release of these events as Philly fed manufacturing is expected to perform badly, and the Jobless claims are likely to perform well.

The news site of the market is likely to offer high impact events from the U.S. while the major focus will remain on the Philly Fed Manufacturing Index and Unemployment Claims. U.S. dollar may exhibit mixed bias until the release of these events as Philly fed manufacturing is expected to perform badly, and the Jobless claims are likely to perform well.

The news site of the market is likely to offer high impact events from the U.S. while the major focus will remain on the Philly Fed Manufacturing Index and Unemployment Claims. U.S. dollar may exhibit mixed bias until the release of these events as Philly fed manufacturing is expected to perform badly, and the Jobless claims are likely to perform well.

Economic Events to Watch Today  

 

 

EUR/USD – Daily Analysis

The EUR/USD currency pair has stopped its previous day bearish streak and recovered from the 27-month lows amid speculative interests and strong bond auction. However, the recent declines in the currency pair from near two-year highs of 1.1956 were mainly directed by a broad-based U.S. dollar recovery. As of now, the broad-based Us dollar has erased some of its gains but still hovering on the bullish track. This, in turn, the currency pair became able to put some modest bids and stop its previous losing streak. 

On the EUR side, the ongoing rise in new coronavirus cases in Spain, Germany, France, and Italy has been fueling the fears over the second-wave of the virus across Europe, which might put the shared currency under pressure and become the key factor that will cap any upside in the currency pair. At the moment, the EUR/USD currency pair is currently trading at 1.1843 and consolidating in the range between the 1.1831 – 1.1857. Moving on, the traders seem cautious to place any strong bids ahead of U.S. Jobless Claims and ECB minutes.

The broad-based U.S. dollar has many things to cheer on the day. Be it the weaker pace of surge in the COVID-19 cases from New York and Florida or hopes of the U.S. stimulus package, not to forget the latest Federal Open Market Committee (FOMC) minutes, which showed that the officials lacked support for the yield curve control, as one of the policy options. However, the broad-based U.S. dollar was being supported by all these things.

However, the ongoing worries about the growing coronavirus case in most places and worsened US-China relations also helped the U.S. dollar put the safe-haven bids. Despite the ongoing coronavirus (COVID-19) and Sino-American tensions, the U.S. President Donald Trump gave the latest warning during the daily press conference that the U.S. is going to announce punitive measures Iran. As per the keywords, “U.S. intends to restore nearly all U.N. sanctions on Iran.” In the meantime, the American Secretary of State Mike Pompeo also warned the Dragon Nation and Russia not to interfere in this matter to save Tehran as they did in the recent past. However, these lingering tension kept the market trading sentiment under pressure and provided support to the U.S. dollar as safe-haven status.

It is worth mentioning that the minutes from the July Fed meeting released Yesterday pushed back against additional measures like the yield curve control, under which the central bank targets a specific yield level at the short or long end of the curve. Meanwhile, the Federal Reserve indicated that it would think about changing its monetary policy to stick to dynamic monetary policy for far extended than previously expected. 

Across the pond, the intensifying coronavirus virus cases in Germany and France fueled the fears of fresh lockdowns in Europe’s biggest economies, which might weigh on the shared currency. As per the latest report, the reported coronavirus cases increased to 226,914, with a total of 9,243 deaths on Wednesday. Whereas, the cases raised by 1,510 in Germany on Wednesday against Tuesday +1,390. The death toll rose by 7, as per the German disease and epidemic control center report, Robert Koch Institute (RKI).

Looking forward, the market traders will keep their eyes on the U.S. Jobless Claims, Philly Fed Manufacturing Survey, and the European Central Bank (ECB) policy meeting minutes, which is scheduled to release later today. The headlines concerning the US COVID-19 aid package, virus figures, and Sino-American trade will not lose its importance.

Daily Technical Levels

Support Pivot Resistance
1.1792 1.1873 1.1916
1.1749 1.1997
1.1668 1.2041

 EUR/USD– Trading Tip

The EUR/USD pair is trading in a sideways range of 1.1853 to 1.1830, and violation of this range can determine further trends in the market. On the higher side, the EUR/USD can trade bullish until 1.1885 level on the breakout of 1.1850. On the lower side, a breakout of the 1.1830 level can lead EUR/USD until the 1.1792 level.

  

GBP/USD – Daily Analysis

The GBP/USD pair was closed at 1.30986 after placing a high of 1.32670 and a low of 1.30934. Overall the movement of GBP/USD pair remained bearish throughout the day. The GBP/USD pair lost all of its previous day gins and declined on Wednesday amid the broad-based U.S. dollar strength after the FOMC meeting minutes were released.

In the early daily session, the GBP/USD pair rose to its highest since last week of December 2019 on the back of better than expected macroeconomic data from the United Kingdom but failed to maintain gains and dropped below 1.310 level. The decline was backed by the sudden strength in the U.S. dollar after the Trump administration proposed another stimulus relief bill.

In the early trading session, the Consumer Price Index from Great Britain was released at 11:00 GMT that rose to 1% from the expected 0.6% and supported GBP. The year’s Core CPI also rose to 1.8% against the estimated 1.3% and the previous 1.4% and supported GBP. The Sterling was again supported after the release of PPI Input for July that surged to 1.8% from the forecasted 1.1%. In July, the PPI Output also rose from the expected 0.2% but remained flat with the previous 0.3%. The Raw-Material Price Index for the year from the U.K. increased to 1.6% from the previous 1.1% and exceeded the expectations of 1.2%. AT 13:30 GMT, the Housing Price Index for the year came in as 2.6%.

The positive and better than expected macroeconomic data from the U.K. gave strength to Pound that took the currency pair GBP/USD to its 8th month highest level at 1.32670. However, in the late trading session after the release of FOMC meeting minutes, the GBP/USD pair started to decline and lost all of its gains from Tuesday.

The minutes revealed that the FOMC was worried about the economic recovery, while some members of the committee suggested that to promote the economic recovery and achieve the 2% inflation target, additional accommodation was necessary.

Furthermore, as opposed to the $1 trillion or $3 trillion stimulus package, a new stimulus relief bill was proposed by the Trump administration on Wednesday of worth $500 Billion. It came in as the consensus on previously recommended bills by Democrats and Republicans has not been achieved yet. This raised hopes and U.S. dollar bars in the market and added additional losses in the GBP/USD currency pair.

Meanwhile, the Brexit talks have been resumed, and outlook of talks still suggested differences as several media reports suggested that U.K. wanted British truckers to be able to pick up and drop off goods both inside E.U. countries and between them. But Brussels has denied as they consider the proposal fundamentally unbalanced, this also weighed on GBP/USD pair on Wednesday.

 Daily Technical Levels

Support Pivot Resistance
1.3037 1.3153 1.3212
1.2978 1.3328
1.2862 1.3388

 GBP/USD– Trading Tip

On Thursday, the GBP/USD pair is trading at 1.3250 level, and the pair was trading in between an ascending triangle pattern that has now been violated. The triangle pattern was extending resistance at 1.3125 level, and above this, the next resistance is pretty much likely to be found around 1.3267 level. At the same time, the support stays at 1.3186 and 1.3137 level. Bullish bias seems dominant today.

  

USD/JPY – Daily Analysis

The USD/JPY pair was closed at 106.111 after placing a high of 106.150 and 105.101. Overall the movement of the USD/JPY pair remained bullish throughout the day. After falling for three consecutive days, the USD/JPY pair rose sharply and reached above 106.00 level on Wednesday amid broad-based U.S. dollar strength. 

The FOMC minutes of the July meeting revealed that policymakers supported to cap bond yields and made it unlikely for the Fed to introduce yield curve control in September. In response to Fed minutes, the U.S. Dollar Index rose above 93 levels, and the U.S. 10-year Treasury yields rose about 0.9% and supported the U.S. dollar that ultimately gave strength to USD/JPY pair on Wednesday.

The sharp rally in USD/JPY was also supported by the comments of a senior Trump administration official who said that a new stimulus relief bill of small amount than $1 trillion or $3 trillion could be agreed upon and provide strength to the economy. He proposed a new bill of $500 billion as the previously expected stimulus bills proposed by Republicans & Democrats was failed to reach a consensus. This new bill also raised hopes and supported the U.S. dollar that pushed USD/JPY prices further on the upside.

On the data front, at 04:50 GMT, the Core Machinery Orders in June from Japan declined to -7.6% from the previous 1.7% and fell short of the expected 2.1% and weighed on Japanese Yen that added strength to the advancing USDJPY pair. Whereas, the Trade Balance from Japan showed a deficit of -0.03T against the forecasted -0.44T and the previous -0.41T and supported Japanese Yen.

On the other hand, the US-China relations were further dented after Donald Trump revealed the main reason behind the delay in review meetings between U.S. & Chinese officials on August 15 on Wednesday. According to Trump, he was very angry over Beijing’s handling of coronavirus situations and disturbing the global economy, and that was the reason he canceled the review meeting. He said that he did not want to meet China for now.

The negative statement a day after blacklisting the Chinese telecom Huawei group in America escalated the tensions further and weighed on risk sentiment. This helped the U.S. dollar to gain strength against its safe-haven status and raised the USD/JPY pair in the market.

Mark Meadows, the White House Chief of Staff, informed on Wednesday that no new high-level talks were rescheduled between the U.S. & China as two sides were already in touch regarding the implementation of the phase-one trade deal. This raised the risk sentiment and weighed on Japanese Yen that ultimately added gains in USD/JPY pair.

Daily Technical Levels

Support Pivot Resistance
105.4100 105.7800 106.4600
104.7200 106.8400
104.3500 107.5200

 

USD/JPY – Trading Tips

The USD/JPY has violated the upward trendline support level of 106.345, as it fell sharply in the wake of increased safe-haven appeal in the market. At the movement, the USD/JPY pair is holding below 50 periods EMA, while the RSI and MACD are in support of bearish trend. The recent candle is closing above 105.344 level, suggesting strong odds of bullish correction until 106. However, the violation of 106 can lead to USD/JPY prices towards the 104.600 support level. Good luck! 

Categories
Forex Signals

GBP/USD Set for Bearish Correction – Brace for Sell Signal

The GBP/USD currency pair remains on the bullish track and taking rounds around above the mid-1.3200 level, mainly due to the hotter-than-expected U.K. consumer inflation figures, which initially underpinned the Pound sterling and contributed to the currency pair gains. On the other hand, the broad-based U.S. dollar fresh weakness, backed by the upbeat market mood, also played its role in gaining positive traction for the currency pair.

The GBP/USD currency pair remains on the bullish track and taking rounds around above the mid-1.3200 level, mainly due to the hotter-than-expected U.K. consumer inflation figures, which initially underpinned the Pound sterling and contributed to the currency pair gains. On the other hand, the broad-based U.S. dollar fresh weakness, backed by the upbeat market mood, also played its role in gaining positive traction for the currency pair.

The GBP/USD currency pair remains on the bullish track and taking rounds around above the mid-1.3200 level, mainly due to the hotter-than-expected U.K. consumer inflation figures, which initially underpinned the Pound sterling and contributed to the currency pair gains. On the other hand, the broad-based U.S. dollar fresh weakness, backed by the upbeat market mood, also played its role in gaining positive traction for the currency pair.

Apart from this, the currency pair bullish bias could also be associated with the reports that suggest the improvement over Brexit talks, which eventually underpinned the pound and sent the GBP/USD pair to the highest level since January during the Asian session on the day. On the contrary, the British Chamber of Commerce’s negative comment about the U.K. economic recovery becomes the key factor that ket he lids on any additional gains in the currency pair.

At a particular time, the GBP/USD currency pair is currently trading at 1.3233 and consolidating in the range between 1.3230 – 1.3268. However, the pair’s traders seem cautious to place any strong bids ahead of Wednesday’s release of the FOMC meeting minutes.

At the data front, the headline UK CPI increased 1.0% YoY in July vs. +0.6% expected. In the meantime, the core inflation gauge (excluding volatile food and energy items) exceeded expectations and arrived at +1.8% YoY during the reported month, up from the 1.4% increase in June. However, this positive data initially boosted the sentiment around the sterling.

At the Brexit front, the British diplomats are showing a willingness to compromise on Brexit talks by September without citing any strong pieces of evidence. However, the gains in the currency pair were further bolstered by the improving sentiment on Brexit talks.

The upbeat market sentiment initially got boosted amid the reports that the U.S. Congress is finally reaching a consensus over the latest stimulus measures. Despite this, the uncertainty over the next round of the U.S. fiscal stimulus measures remains on the cards as the agreed figures as Republicans agreed to reach an agreement with Democrats for their proposed only $500 billion packages. These figures are considerably less than the amount that Democrats were expecting. This, in turn, the broad-based U.S. dollar lost its early-day gains.

However, the market trading still flashing green amid optimism over a potential vaccine for the highly infectious coronavirus, which also weighed on the U.S. dollar and contributed to the currency pair gains.

At the USD front, the broad-based U.S. dollar failed to maintain its early-day gains and dropped once again as doubts over the U.S. economic recovery fueled again amid lack of progress over the coronavirus stimulus package. However, the losses in the U.S. dollar helped the currency pair to take bids on the day. Whereas, the U.S. Dollar Index that tracks the greenback against a basket of other currencies was down near 92.263.

On the negative side, the British Chamber of Commerce said in the latest Business Tracker report, that the U.K. firms were facing cashflow problems amid post coronavirus pandemic slow recovery. However, these gloomy updates turned out to be major factors that capped further upside for the currency pair.


The GBP/USD has entered the overbought zone at 1.3268 level. Therefore, we have applied the Fibonacci indicator on the 4-hour timeframe. Closing of candles below 1.3268 level is likely to drive selling trend or bearish correction until 38.2% and 61.8% Fibo level of 1.3189 and 1.3147, respectively.

Entry Price – Sell 1.32201
Stop Loss – 1.32601
Take Profit – 1.31801
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, August 19 – Top Trade Setups In Forex – Eyes on FOMC Meeting Minutes! 

On the news front, the eyes will remain on the FOMC Meeting Minutes, which are 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 Meeting Minutes, which are 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 Meeting Minutes, which are 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 was closed at 1.19308 after placing a high of 1.19654 and a low of 1.1863. Overall the movement of the EUR/USD pair remained bullish throughout the day. The EUR/USD pair rose and extended its gains for the 6th consecutive day on Tuesday amid heavy selling pressure surrounding the greenback. The pair EUR/USD surged to its highest level since May 2018 amid broad-based U.S. dollar weakness as it followed the U.S. Treasury bond yields.

The U.S. Treasury bond yield on 10-year note lost more than 4% on the day, and the U.S. Dollar Index fell to its lowest daily close in more than two years at $92.30. Other than the persistent sell-off in the U.S. dollar, the single currency Euro found extra sustain in the solid appetite for riskier assets on the back of strong hopes over a moderate economic recovery in the region. It was increased by the news that a coronavirus vaccine could be out sooner than expected.

The risk sentiment was also supported by the investors’ confidence about the strength of the U.S. economic recovery, helped by strong earnings from retail giants Home Depot and Walmart.

The stocks were up on Tuesday as S&P 500 futures rose by 0.2%, the Dow futures contract rose by 0.4%, and while Nasdaq 100 futures moved up by 0.3%. According to a fund manager survey from Bank of America on Tuesday, showed that investors were at their most bullish trend on financial markets since February. The rise in the equity market helped increase risk appetite and EUR that is a riskier asset gained from such activity in the market.

On the data front, there was no macroeconomic data to be released from the Europe side; however, from the U.S. side, at 17:30 GMT, the Building Permits exceeded the expectations of 1.33M and came in as 1.50M in July in comparison of 1.26M of June and supported U.S. dollar. The Housing Starts also rose to 1.50M and exceeded the forecast of 1.23M and supported the U.S. dollar. Positive data from the U.S. side supported the dollar and limited the additional gains in EUR/USD pair on Tuesday.

On Wednesday, the Eurostat will release the inflation report for the Euro area. Markets expect the Core Consumer Price Inflation that excludes the volatile food and energy prices to remain flat at 1.2% on a yearly basis.

From the U.S. side, the FOMC meeting minutes will also be released to provide fresh clues about the movement of the EUR/USD pair.

Daily Technical Levels

Support Pivot Resistance
1.1873 1.1920 1.1975
1.1818 1.2022
1.1772 1.2077

 EUR/USD– Trading Tip

The EUR/USD pair has already violated the resistance level of 1.1912 level, which is now working as a support. On the 4 hour timeframe, the pair is supported by an upward channel at 1.1915, while the resistance stays at 1.1962 level. Bullish bias seems dominant, and it may lead the EUR/USD prices towards the 1.1998 level today. The RSI, MACD, and 50 EMA are all in support of buying trends. 

  

GBP/USD – Daily Analysis

The GBP/USD pair was closed at 1.32373 after placing a high of 1.32496 and a low of 1.30924. Overall the movement of GBP/USD pair remained strongly bullish. The GBP/USD pair continued to extend gains and rose for 4th consecutive day on Tuesday on the back of a combination of factors. The uncertainty over the next round of U.S. stimulus aid to support the U.S. economic recovery from the coronavirus pandemic has depressed the U.S. dollar. The falling U.S. Treasury bond yields further weighed on the already declining greenback and added gains in the GBP/USD pair.

The Sterling hit 8-months high on Tuesday as a new round of Brexit talks began, and the U.K. still believes that it can agree on a post-Brexit trade deal with the E.U. next month. On Tuesday ahead of the Brexit talks, a European Commission spokesman said that a deal would need to be agreed on by October. On the other hand, Mr. Barnier said that this date required an agreement to be ratified before the U.K.’s current post-Brexit transition period ends in December.

After the last round of negotiations in London, Barnier accused the U.K. of not showing willingness to break the deadlock over difficult issues. In response, David Frost replied that the E.U. had offered to break the deadlock but failed to honor the fundamental principles that the U.K. had repeatedly made clear.

On the data side, at 17:30 GMT, the Building Permits from the United States was increased to 1.50M from the forecasted 1.33M in July, and the Housing Starts also rose to 1.50 M from the expected 1.23M and supported U.S. dollar. The economic figures from the U.S. were mostly ignored by the investors as the focus was all shifted towards the new round of Brexit talks.

However, the U.S. dollar was weak across the board on Tuesday as the U.S. Dollar Index collapsed to its lowest level in more than two years at 92.28 and was having a tough time recovering. This added pressure on the greenback and added gains in the GBP/USD pair on Tuesday.

However, the losses in the U.S. dollar helped the currency pair to take bids on the day. 

 Daily Technical Levels

Support Pivot Resistance
1.3136 1.3193 1.3291
1.3037 1.3349
1.2980 1.3447

 GBP/USD– Trading Tip

The GBP/USD pair is trading at 1.3250 level, and the pair was trading in between an ascending triangle pattern that has now been violated. The triangle pattern was extending resistance at 1.3125 level, and above this, the next resistance is pretty much likely to be found around 1.3267 level. At the same time, the support stays at 1.3186 and 1.3137 level. Bullish bias seems dominant today.

  

USD/JPY – Daily Analysis

The USD/JPY pair was closed at 105.407 after placing a high of 106.050 and a low of 105.281. Overall the movement of the USD/JPY pair remained bearish throughout the day. The USD/JPY pair moved to a fresh 2-week lowest level around 105.20 regions after the U.S. dollar selling pressure picked up pace during the late session.

The currency pair witnessed some strong follow-through selling for the third consecutive session and extended its bearish slide from 107.00 level. The downfall in USD/JPY pair was exclusively sponsored by the broad-based U.S. dollar weakness under pressure due to impasse over the next round of U.S. fiscal stimulus measures.

The additional pressure on the U.S. dollar was exerted by the declining U.S. Treasury bond yields that undermined the already weak sentiment across the greenback. The U.S. Treasury bond yield on the 10-year note fell by 2.8% on Tuesday that weighed on the U.S. dollar.

Apart from the U.S. Treasury, the escalating tensions between the U.S. & China, drove some safe-haven flows towards the Japanese Yen that further added in the downward momentum of USD/JPY pair on Tuesday.

Meanwhile, the positive opening in the U.S. equity markets failed to impress the bullish traders, and the pair USD/JPY continued moving in the downward direction and closed its day near the monthly low that was set on August 6.

On the data front, at 01:00 GMT, the TIC Long-Term Purchases for June exceeded the forecast of 108.0B and came in as 113.0B and supported the U.S. dollar. At 17:30 GMT, the Building Permits from the U.S. rose to 1.50M against the projected 1.33Mand the Housing starts rose to 1.50M from the projected 1.23Mand supported U.S. dollar that helped limit the additional losses in pair.

There was no news regarding the date of the review of the phase-one trade deal between both nations on the US-China front. It is expected that the review will be published after the targets of U.S. purchases by China will be met.

As per the deal, China has to increase its purchases of U.S. farm and manufactured products, energy, and services by $200 billion over the next two years. So far, China has made imports of products from the U.S. worth about $40.2 billion that is less than 50%. China still has far to go to meet the requirement as it was affected by the pandemic induced lockdowns; however, ever since the lockdown has been eased, China’s imports have increased. U.S. officials have said that they were satisfied with the trade deal progress so far.

On the negative side, the blacklisting of Huawei’s telecom group on Yesterday raised concerns regarding the escalated tensions between China & the U.S. and supported the bearish trend in the USD/JPY pair.

Daily Technical Levels

Support Pivot Resistance
105.1100 105.5900 105.9000
104.8000 106.3800
104.3100 106.6900

 

USD/JPY – Trading Tips

The USD/JPY has violated the upward trendline support level of 106.345, as it fell sharply in the wake of increased safe-haven appeal in the market. At the movement, the USD/JPY pair is holding below 50 periods EMA, while the RSI and MACD are in support of bearish trend. The recent candle is closing above 105.344 level, suggesting strong odds of bullish correction until 106. However, the violation of 106 can lead to USD/JPY prices towards the 104.600 support level. Good luck! 

Categories
Forex Signals

USD/CHF Hit The Multi-Year Lows Near 0.9037 – Update on Signal! 

During Tuesday’s European trading session, the USD/CHF currency pair failed to stop its previous session bearish moves and dropped to fresh multi-years low just around the 0.9035, mainly due to the broad-based U.S. dollar weakness. That was triggered by the disappointing U.S. economic data and worries that the second wave of COVID-19 cases in the United States could ruin the recovery in the world’s biggest economy. 

During Tuesday’s European trading session, the USD/CHF currency pair failed to stop its previous session bearish moves and dropped to fresh multi-years low just around the 0.9035, mainly due to the broad-based U.S. dollar weakness. That was triggered by the disappointing U.S. economic data and worries that the second wave of COVID-19 cases in the United States could ruin the recovery in the world’s biggest economy. 

During Tuesday’s European trading session, the USD/CHF currency pair failed to stop its previous session bearish moves and dropped to fresh multi-years low just around the 0.9035, mainly due to the broad-based U.S. dollar weakness. That was triggered by the disappointing U.S. economic data and worries that the second wave of COVID-19 cases in the United States could ruin the recovery in the world’s biggest economy. 

The on-going doubts over the U.S. Stimulus Package also weighed on the American currency and contributed to the pair losses. On the other hand, the concerns about strengthening the US-China tussle weighed on the market trading sentiment, which supported the safe-haven Swiss francs and contributed to the USD/CHF pair’s declines the lowest level since January 2015. At this particular time, the USD/CHF currency pair is currently trading at 0.9052 and consolidating in the range between 0.9037 – 0.9069.

Due to the pretending reduction in coronavirus cases by decreasing testing, the worries about the U.S. economic recovery still hover all over the market and keep the U.S. dollar bulls defensive. Apart from the U.S., the coronavirus cases in Europe also increasing day by day. As per the latest report, the reported number of coronavirus cases increased to 225,404 with a total of 9,236 deaths so far. Whereas, the cases increased by 1,390 in Germany on the day against the previous day +738. At the same time, the death losses rose by 4, according to the report of German disease and epidemic control center, Robert Koch Institute (RKI). This, in turn, benefitted the Swiss franc’s safe-haven currency and contributed the pair losses.

Elsewhere, the risk-off market sentiment was further bolstered by the long-lasting disappointment over the lack of progress in the much-awaited fiscal package. As well as, the on-going tussle between the United States and China became sourer after the suspension in the bi-deal annual trade review with China. It is worth reporting that the Trump administration keeps increasing the hardships for China’s companies by imposing punitive measures on Chinese 38 facilities from Huawei, which exerted a very downside impact on the market and overshadowed optimism over a potential vaccine for the highly infectious coronavirus infections.

As a result, the broad-based U.S. dollar failed to gain any positive traction on the day and reported losses as the U.S. Congress’s inability to reach an agreement for the U.S. latest COVID-19 stimulus package kept the investors defensive. However, the losses in the U.S. dollar kept the USD/CHF currency pair bearish. Whereas, the U.S. Dollar Index that tracks the greenback against a basket of other currencies was down 0.22% to 92.642 by 12:21 AM ET (5:21 AM GMT).

The market players will closely follow the release of the Building Permits and Housing Starts. However, this data usually does not leave any major impact on the currency pair. At the important front, the release of the latest FOMC meeting minutes will be key to watch.


The USD/CHF has violated the triple bottom support level of 0.9064 and the closing of candles below this is supporting the solid potential for further bearish bias. Therefore, we are looking to target 40 pips until 0.8990 to take a profit level.

Entry Price – Sell 0.9049
Stop Loss – 0.9099
Take Profit – 0.8999
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 Facing Over $2,000 Level – Is it Going After $2,038?

In the early European trading session, the yellow metal prices stopped its previous day losing streak and recovered from the $1950-52 region to above $2000 level on the day. However, the bullish sentiment around the bullion was being supported by the broad-based U.S. dollar weakness. As well as, the multiple risk catalysts like US-China ongoing tussle, also triggered the precious metal’s rise on the day. In the meantime, the positive news over a potential COVID-19 vaccine becomes the key factor that capping the further upside for the gold.

In the early European trading session, the yellow metal prices stopped its previous day losing streak and recovered from the $1950-52 region to above $2000 level on the day. However, the bullish sentiment around the bullion was being supported by the broad-based U.S. dollar weakness. As well as, the multiple risk catalysts like US-China ongoing tussle, also triggered the precious metal’s rise on the day. In the meantime, the positive news over a potential COVID-19 vaccine becomes the key factor that capping the further upside for the gold.

In the early European trading session, the yellow metal prices stopped its previous day losing streak and recovered from the $1950-52 region to above $2000 level on the day. However, the bullish sentiment around the bullion was being supported by the broad-based U.S. dollar weakness. As well as, the multiple risk catalysts like US-China ongoing tussle, also triggered the precious metal’s rise on the day. In the meantime, the positive news over a potential COVID-19 vaccine becomes the key factor that capping the further upside for the gold.

At the moment, gold is trading at 2,005.25 and consolidating in the range between 1,980.88 – 2,010.09. Moving on, the traders seem cautious to place any strong bids ahead of the minutes from the U.S. Federal Reserve’s latest policy meeting, which are scheduled to be released on Wednesday.

Be it the failure of the U.S. lawmakers to provide any latest announcement over the coronavirus (COVID-19) relief package or latest penalties on China from the U.S., not to forget the ongoing rise in coronavirus cases; the market traders prefer to invest their money into the safe-haven assets like gold. The US-China tussle turns sour further as Trump keeps increasing the difficulties for the companies of China. As a result of the delayed trade review meet, American diplomats announced punitive measures for Huawei in the latest attack on China.

Also weighed on the market risk sentiment was the failure of the Democrats and Republicans to offer any latest announcement on the coronavirus (COVID-19) relief package amid political differences. Apart from this, the coronavirus concerns also keep challenging the energy traders. The virus fears take the front seats as the global leaders struggle to find any medicine to the deadly virus. Whereas, the ongoing rise in the coronavirus cases in Europe fueling the worries about economic recovery. As per the latest report, the actual coronavirus cases increased to 225,404, with a total of 9,236 deaths so far.

Whereas, the cases increased by 1,390 in Germany on the day against the previous day +738. At the same time, the death losses rose by 4, according to the report of German disease and epidemic control center, Robert Koch Institute (RKI). On the positive side, U.S. markets witnessed a heavenly session during the previous session, as the Nasdaq hit a record high yesterday and the S&P500 coming close to reaching its record high. But Asian stocks were mixed on the day, and the dollar was down as well. However, these positive signs turned out to b a major factor that capped further upside for the gold.

Considering the failure of agreeing on the coronavirus (COVID-19) relief package, the broad-based U.S. dollar was down on the day. However, market investors have stuck over uncertainty over the delayed package. Moreover, the weaker U.S. dollar could also be associated with the ongoing doubt about the U.S. economic recovery amid intensifying coronavirus cases.


The precious metal gold continues to bullish at a 2,008 level. We have already captured one positive and one negative signal in gold. But overall the pic count remains green, which is good for us. For now, gold may find an immediate resistance at 2,009 level, and above this, gold can go after 2,038 level. The RSI and MACD support buying trends while the 50 EMA also suggests bullish bias in the market. Let’s consider taking buy trade over 2,008 resistance level breakout during the U.S. session. Stay tuned to our forex trading signal page; we may enter trade if setup confirms buying. Good luck!

Categories
Forex Market Analysis

Daily F.X. Analysis, August 18 – Top Trade Setups In Forex – Boosted Safe-Haven Plays! 

On the news front, the market isn’t expected to offer any major or high impact economic event until Wednesday. Therefore, the eyes will remain on the COVID19 cases and U.S. FOMC meeting minutes, which are coming out tomorrow to drive further price action in the market.

On the news front, the market isn’t expected to offer any major or high impact economic event until Wednesday. Therefore, the eyes will remain on the COVID19 cases and U.S. FOMC meeting minutes, which are coming out tomorrow to drive further price action in the market.

On the news front, the market isn’t expected to offer any major or high impact economic event until Wednesday. Therefore, the eyes will remain on the COVID19 cases and U.S. FOMC meeting minutes, which are coming out tomorrow to drive further price action in the market.

Economic Events to Watch Today  

  

EUR/USD – Daily Analysis

The EUR/USD has managed to maintain its previous day winning streak and taking further bids just below the 1.1900 level while representing 25% gains on the day mainly due to the broad-based U.S. dollar weakness, triggered by the on-going uncertainty surrounding the much-awaited U.S. fiscal stimulus. 

On the other hand, the US-EU trade concerns turned bitter as the U.S. keeps increasing the hardships for the E.U. goods, which eventually becomes the key factor that capped further upside momentum for the currency pair. In the meantime, the rising coronavirus cases in Germany also turned out to be a major factor that kept the traders cautious. As of writing, the EUR/USD currency pair is currently trading at 1.1893 and consolidates in the range between the 1.1865 – 1.1898. 

The U.S. dollar losses were further bolstered by the uncertainty over the next round of the U.S. fiscal stimulus measures, as the U.S. Congress members failed again from signaling any talks on the much-awaited stimulus amid political differences, which continued to fuel doubts over the U.S. economic recovery.

As we all know, the online meeting between the world’s top two nations I,e the U.S. & China, has been postponed without giving any future dates that were initially scheduled for Saturday. Despite this, the conflicting tone remains on the card as the Trump administration keeps increasing the hardships of companies from China. The U.S. diplomats recently announced punitive measures for Huawei in their latest attack for China. However, these gloomy headlines tend t cap further gains in the equity market, which might help the U.S. dollar put the safe-haven bids ahead.

Across the pond, the US-EU trade concerns still not showing any sign of slowing down as the U.S. decided to maintain its 25% tariffs on a range of E.U. goods. This happens after the White House realized that the E.U. is not doing enough to obey with the WTO’s ruling over state aid to Airbus. However, these updates could halt the upward momentum in the currency pair.

At the coronavirus front, the actual coronavirus cases increased to 225,404, with a total of 9,236 deaths. Whereas, the cases raised by 1,390 in Germany on the day against the previous day +738. The death toll rose by 4, as per the German disease and epidemic control center report, Robert Koch Institute (RKI).

At the USD front, the broad-based U.S. dollar reported losses on the day as the possibility of the U.S. Congress agreeing to a fiscal stimulus bill this month has weakened amid political differences, which eventually destroyed hopes for a quick U.S. economic recovery. In the absence of significant data/events on the day, the market traders will keep their eyes on the headlines concerning the US COVID-19 aid package, virus figures, and Sino-American trade.

Daily Technical Levels

Support Pivot Resistance
1.1838 1.1860 1.1891
1.1807 1.1913
1.1785 1.1945

 EUR/USD– Trading Tip

The EUR/USD pair has already violated the resistance level of 1.1862, which is now working as a support. On the 4 hour timeframe, the pair is supported by an upward trendline at 1.1880, while the double top resistance stays at 1.1916 level. Bullish bias seems dominant, and it may lead the EUR/USD prices towards the 1.1916 level today.

  

GBP/USD – Daily Analysis

Today in the Asian trading session, the GBP/USD currency pair remains on the bullish track and registered 4th day of winning streak while taking rounds near the 1.3120 and 1.3137 range mainly due to the broad-based U.S. dollar selling bias. That was triggered by the uncertainty surrounding the much-awaited coronavirus (COVID-19) relief package from America. The upbeat market mood also undermined the safe-haven U.S. dollar and contributed to the currency pair gains. 

The upbeat market sentiment backed by multiple factors helped overshadowed the U.K.’s current economic slowdown and distracted from anxieties that the country is likely heading into an unemployment crisis. This, in turn, underpinned the local currency and gave further support to the major. At a particular time, the GBP/USD currency pair is currently trading at 1.3139 and consolidating in the range between 1.3095 – 1.3141. However, the pair’s traders seem cautious to place any strong bids ahead of the key 7th-round of EU-UK talks concerning Brexit.

It is worth mentioning that the cable pair has many more to cheer on the day. Be it broad-based U.S. dollar weakness or upbeat market trading sentiment, not to forget the Brexit talks, these all factors are supporting the currency pair for the time being, at least.

At the Brexit front, the hopes of the trade deal next week got further fueled by the UK PM Boris Johnson’s previous comments that the United Kingdom will not accept aligning to rules of the E.U. at the coming round of post-Brexit discussions. Even though the trade deal is agreed between the U.K. and E.U., as per the U.K. Express report, the E.U. fishermen could clash with U.K. fishermen.

The coming round of talk becomes the last scheduled meet; policymakers earlier showed a willingness to extend the talks till September if needed. According to the BBC report, the E.U. chief negotiator Michel Barnier said that the agreement would be needed by October to ratify before the current post-Brexit transition period ends in December. However, the policymaker from both sides keeps alleging each other while citing failures to agree over the key issues like fisheries, level playing field, and jurisdiction rules, to name a few.

Across the pond, the UK Chancellor Rishi Sunak shows a willingness to extend the furlough scheme after rising unemployment rate and hence reopened support scheme for self-employed. However, the improving market mood helped overshadowed the U.K.’s current economic recession fears and concerns that the country is expected to heading into an unemployment crisis. 

The currency pair gains were also supported by the positive report that Imperial College London’s coronavirus (COVID-19) vaccine candidate is set for the next phase represents the Tory government’s efforts to control the pandemic.

On the other hand, the U.S. and China continue to struggle over one issue or the other. The Trump administration keeps increasing the hardships of companies from China by adding 38 Huawei facilities to the U.S.’ economic blacklist while also arresting a Chinese spy.

Whereas, the uncertainty over the next round of the U.S. fiscal stimulus measures remain on the cards, as the U.S. Congress members failed again from signaling any talks on the much-awaited stimulus amid political differences, which continued to fuel doubts over the U.S. economic recovery.

As in result, the broad-based U.S. dollar failed to gain any positive traction and extended its previous long bearish bias as doubts over the U.S. economic recovery remain amid coronavirus stimulus package. However, the losses in the U.S. dollar helped the currency pair to take bids on the day. 

 


Daily Technical Levels

Support Pivot Resistance
1.3075 1.3099 1.3124
1.3050 1.3148
1.3027 1.3173

 GBP/USD– Trading Tip

The GBP/USD pair is trading at 1.3137 level, and the pair was trading in between an ascending triangle pattern that has now been violated. The triangle pattern was extending resistance at 1.3125 level, and above this, the next resistance is pretty much likely to be found around 1.3189 level. At the same time, the support stays at 1.3125 and 1.3085 level. Bullish bias seems dominant today.

  

USD/JPY – Daily Analysis

The USD/JPY currency pair extended its previous session losing streak and dropped further below 106.50 marks mainly due to the broad-based U.S. dollar four-day consecutive weakness, buoyed by the impasse over the next round of the U.S. fiscal stimulus measures. On the other hand, the upbeat market sentiment, backed by the optimism over a potential vaccine for the highly infectious coronavirus, undermined the safe-haven Japanese yen and helped currency pair to limit its deeper losses. In the meantime, the downbeat preliminary readings of Japan’s second quarter (Q2) Gross Domestic Product (GDP) also undermined the safe-haven Japanese yen currency and became one of the major factors that capped further downside for the currency pair. Currently, the USD/JPY currency pair is currently trading at 106.36 and consolidating in the range between 106.31 – 106.67.

Despite concerns about the ever-increasing coronavirus cases across the world and worsening US-China relations, the investors continued to cheer the optimism over a potential vaccine for the highly contagious coronavirus disease. Also, supporting factors could be the suspension of the US-China online meeting regarding the trade deal. 

On the contrary, the fears of growing COVID-19 cases in the U.S., Australia, Japan, and some of the notable Asian nations like India continually fueling doubts over the economic recovery. As per the latest report, France recorded more than 3,000 new cases for the second day while Australia’s state Victoria marked the highest death loss, which resulted in an extended state of emergency until September 13. Singapore also reported 86 cases on the weekend. At the same time, New Zealand imposed fresh lockdowns after recording increased cases of Covid-19. However, these gloomy updates kept challenging the market risk-on tone, which might weaken the safe-haven JPY and help limit losses for the major.

Apart from the virus woes, the long-lasting tussle between the world’s two largest economies remained on the cards as China’s ambassador to the U.S. recently gave warning against the U.S. move to send ships to the South China Sea, which could raise further tensions between both nations and harm the trade deal. Whereas, President Trump announced yesterday that TikTok should give its U.S. operations to another company within one-month, or it will be banned in the U.S. due to significant security threats. In return, China’s Foreign Ministry recently said on the day that it would firmly oppose to U.S. actions.

As we mentioned, the downbeat preliminary readings of Japan’s second quarter (Q2) Gross Domestic Product (GDP) also gave some support to the currency pair. The world’s 3rd-largest economy declined by a 27.8% annualized pace during the second quarter of 2020. However, this marked the biggest economic fall on record and was led by the coronavirus-induced lockdown.

Daily Technical Levels

Support Pivot Resistance
105.7300 106.2000 106.4600
105.4800 106.9200
105.0100 107.1800

 

USD/JPY – Trading Tips

The USD/JPY has violated the upward trendline support level of 106.345, as it fell sharply in the wake of increased safe-haven appeal in the market. At the movement, the USD/JPY pair is holding below 50 periods EMA, while the RSI and MACD are in support of bearish trend. The recent candle is closing above 105.344 level, suggesting strong odds of bullish correction until 106. However, the violation of 106 can lead USD/JPY prices towards the 104.600 support level. Good luck! 

Categories
Forex Signals

EUR/USD Violates Resistance – Buying Signal Doing Well! 

The EUR/USD succeeded to extended its early-day bullish rally and hit the fresh intra-day highs above the mid-1.1800 level. However, the reason for the gains in currency pair could also be attributed to the broad-based U.S. dollar bearish bias, triggered by the on-going uncertainty surrounding the much-awaited U.S. fiscal stimulus and the second wave of coronavirus (COVID-19). 

The EUR/USD succeeded to extended its early-day bullish rally and hit the fresh intra-day highs above the mid-1.1800 level. However, the reason for the gains in currency pair could also be attributed to the broad-based U.S. dollar bearish bias, triggered by the on-going uncertainty surrounding the much-awaited U.S. fiscal stimulus and the second wave of coronavirus (COVID-19). 

The EUR/USD succeeded to extended its early-day bullish rally and hit the fresh intra-day highs above the mid-1.1800 level. However, the reason for the gains in currency pair could also be attributed to the broad-based U.S. dollar bearish bias, triggered by the on-going uncertainty surrounding the much-awaited U.S. fiscal stimulus and the second wave of coronavirus (COVID-19). 

On the other hand, the reports that the country’s Finance Minister Olaf Scholtz outlined a EUR10 bn job subsidy extension plan, eventually underpinned the shared currency and contributed to the currency pair gains. In the meantime, the rising number of coronavirus in Europe became the key factor that kept the lid on any additional gains in the currency pair. At the moment, the EUR/USD currency pair is currently trading at 1.1850 and consolidating in the range between 1.1832 and 1.1868.

During speaking on a German TV late on Weakened, the country’s Finance Minister Olaf Scholtz sketched a job subsidy extension plan worth 10 billion Euros. The plan will extend up to 2 years and will allow firms to keep their employees and avoid layoffs. It will cover about 60% or more of salary. This supported the shared currency Euro and added in the upward trend of EUR/USD pair. 

On the other hand, the online meeting between the world’s top two nations I,e the U.S. & China has been postponed without giving any future dates, that was initially scheduled for Saturday. However, this report played a negative role in the market trading sentiment and capped further gains in the equity market. The negative impact on the equity market decreased the risk sentiment and limited the early daily gains of currency pair EUR/USD.

At the USD front, the broad-based U.S. dollar reported losses on the day as the United States still faces uncertainty over the much-awaited coronavirus (COVID-19) relief package, which eventually destroyed hopes for a quick U.S. economic recovery.


The EUR/USD pair continues to trade bullish amid major resistance breakout of 1.1866 level. Continuation of an upward movement may drive more buying until 1.1909 level as the 50 EMA, RSI and MACD are supporting bullish bias. Checkout a trading signal below…

Entry Price – Buy 1.1871

Stop Loss – 1.1831

Take Profit – 1.1911

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

GBP/JPY Breaks Upward Trendline – Quick Update on Trade Setup! 

The Japanese cross pair GBP/JPY is trading sharply bearish amid weaker GBP and firmer JPY. The safe-haven pair has already violated upward trendline support 139.490, and now the same level is working as a resistance. The GBP/JPY may gain support and bounce off soon. 

The Japanese cross pair GBP/JPY is trading sharply bearish amid weaker GBP and firmer JPY. The safe-haven pair has already violated upward trendline support 139.490, and now the same level is working as a resistance. The GBP/JPY may gain support and bounce off soon. 

The Japanese cross pair GBP/JPY is trading sharply bearish amid weaker GBP and firmer JPY. The safe-haven pair has already violated upward trendline support 139.490, and now the same level is working as a resistance. The GBP/JPY may gain support and bounce off soon. 

The GBP/JPY currency pair extended its previous session, losing streak, and dropped further below 139.078 marks, mainly due weakness in the GBP. The upbeat market sentiment, backed by the optimism over a potential vaccine for the highly infectious coronavirus, undermined the safe-haven Japanese yen and helped currency pair to limit its deeper losses. 

In the meantime, the downbeat preliminary readings of Japan’s second quarter (Q2) Gross Domestic Product (GDP) also undermined the safe-haven Japanese yen currency and became one of the major factors that capped further downside for the currency pair.  

Despite concerns about the ever-increasing coronavirus cases across the world and worsening US-China relations, the investors continued to cheer the optimism over a potential vaccine for the highly contagious coronavirus disease. Also, supporting factors could be the suspension of the US-China online meeting regarding the trade deal. It is worth mentioning that the meeting was initially scheduled for Saturday while the delay leaves the phase one deal intact, for the time being at least.

On the contrary, the fears of growing COVID-19 cases in the U.S., Australia, Japan, and some of the notable Asian nations like India continually fueled doubts about economic recovery. As per the latest report, France recorded more than 3,000 new cases for the second day while Australia’s state Victoria marked the highest death loss, which resulted in an extended state of emergency until September 13. As well as, Singapore also reported 86 cases on the weekend. At the same time, New Zealand imposed fresh lockdowns after recording increased cases of Covid-19. However, these gloomy updates kept challenging the market risk-on tone, which might weaken the safe-haven JPY and help limit losses for the major.

Apart from the virus woes, the long-lasting tussle between the world’s two largest economies remained on the cards as China’s ambassador to the U.S. recently gave warning against the U.S. move to send ships to the South China Sea, which could raise further tensions between both nations and harm the trade deal. Whereas, President Trump announced yesterday that TikTok should give its U.S. operations to another company within one-month, or it will be banned in the U.S. due to significant security threats. In return, China’s Foreign Ministry recently said on the day that it would firmly oppose to U.S. actions.


Technically, the GBP/JPY pair was gaining support at 138.950 level, and I was suspecting if the pair will be able to hit our take profit. Therefore, we decided to close our forex trading signal beforehand at 139.002, securing 34.7 pips as we opened it at 139.348. For now, the pair is staying at 139.07 level, and closing of candles above 138.925 is supporting selling bias in the pair. Good luck! 

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Forex Market Analysis

Daily F.X. Analysis, August 17 – Top Trade Setups In Forex – Eyes Technical Levels! 

On the news front, the market isn’t offering any high impact on market-moving fundamentals. Therefore, we have to focus on the market’s technical side to drive further movements in the market.

On the news front, the market isn’t offering any high impact on market-moving fundamentals. Therefore, we have to focus on the market’s technical side to drive further movements in the market.

On the news front, the market isn’t offering any high impact on market-moving fundamentals. Therefore, we have to focus on the market’s technical side to drive further movements in the market.

Economic Events to Watch Today   

 

EUR/USD – Daily Analysis

The EUR/USD pair closed at 1.18409 after placing a high of 1.18503 and a low of 1.17815. Overall the movement of the EUR/USD pair remained bullish throughout the day. The EUR/USD pair on Friday remained in a tight range in European trading hours after the release of GDP figure from the Eurozone, and in American trading session, it started to post gains and ended its day on a positive note.

At 11:45 GMT, the French Final CPI in July remained flat with the expectations of 0.4%. At 14:00 GMT, the Flash Employment Change in the second quarter was recorded as -2.8%, and the Flash GDP in the second quarter fell as expected -12.1%. The Trade Balance from Europe in June declined to 17.1B from the forecasted 18.0 B and weighed on single currency Euro.

The GDP data confirmed the fears and dropped by 12.1% showed the biggest contraction since the quarterly GDP calculation began in 1970 for Germany. It was even more pronounced than during the financial market and economic crisis. The macroeconomic data from Europe weighed on EUR and dragged the pair EUR/USD with itself.

The U.S. Dollar held steady against its rival currency as positive risk sentiment continues to weigh on the safe-haven greenback. The Core Retail Sales in July increased to 1.9% from the forecasted 1.3% and supported the U.S. dollar. At the same time, the Retail Sales data declined to 1.2% against the expected 2.0% and weighed on the U.S. dollar.

In August, the Prelim UoM Consumer Sentiment increased to 72.8 against the forecasted 72.0 and supported the U.S. dollar. The data failed to provide any significant trend to the pair, however as the consumer sentiment improved, the U.S. dollar started to pick up its pace against its rival currencies.

Meanwhile, the delay in the release of the next U.S. Stimulus aid package was getting longer day by day. It raised concerns as President Donald Trump accused that U.S. Congressional Democrats had refused to negotiate on the next bill. The pair was also higher on Friday as the risk sentiment improved ahead of the US-China trade deal review meeting scheduled for August 15.

Furthermore, the U.S. Dollar was higher on the ground as the 10-year U.S. Treasury rose continuously from past days. At the same time, the Euro was under pressure because of the massive selling bias in Turkish lira from recent weeks. The Euro underperformed during the lira crisis in 2018, and downside risks suggest that Euro might face sell-off if history was repeated.

The upcoming week will bring the minutes from both the U.S. Federal Reserve and the European Central Bank. Meanwhile, the pair will continue to follow the global risk sentiment; any progress in trade-deal will be beneficial for EUR/USD pair; however, if any tension arises and the US-China issue continues to escalate, the greenback could rise against its counterpart as a safe-haven asset.

Daily Technical Levels

Support Pivot Resistance
1.1745 1.1805 1.1900
1.1650 1.1960
1.1591 1.2054

EUR/USD– Trading Tip

The EUR/USD is facing resistance at 1.1865 level, which is extended by a double top level. Below this, the EUR/USD can extend selling bias until 1.1820 and 1.1782 level. However, the bullish breakout of the 1.1865 level can continue selling until 1.1908. On the hourly timeframe, the EUR/USD has formed an ascending triangle pattern, which may extend resistance at 1.1866 level. The closing of candles beneath this level is expected to drive selling bias until the 1.1819 level. Let’s keep an eye on 1.1866 level to stay bullish above and bearish below this level today. 

GBP/USD – Daily Analysis

The GBP/USD closed at 1.30824 after placing a high of 1.31426 and a low of 1.30452. Overall the movement of GBP/USD pair remained bullish throughout the day. The GBP/USD pair struggled to hold gains as both the U.S. dollar and Sterling has gloomy outlook. Both the U.S. & U.K. economies have suffered from the coronavirus pandemic, and the outlook of GBP/USD pair suggests that it was dominated by the pandemic induced gloomy economic condition.

This week, the GBP/USD pair has jumped between highs of 1.32123 and lows of 1.3007. The high was not too far from the previous week’s high of 1.3176, that was the best level for the GBP/USD pair in six months.

We can say that the GBP/USD pair has managed to sustain the impressive July gains; however, further gains seem unlikely. As the negotiations between the U.K. and Japan came to a halt this week. This came in after U.K. pretended to have better trade conditions than those it had as part of the E.U. Another factor weighed on U.K. currency this week was the biggest contraction in the U.K.’s economy in the second quarter by 20.4%.

The contraction was derived as a terrible consequence of the coronavirus induced lockdown measures. The U.K. government is still struggling with the reopening schedule, and PM Boris Johnson has pledged to open schools from next month.

As worries of the second loop of coronavirus worsened across the globe, the concerns raised over the question of how the government would react. There are speculations that if Britain’s coronavirus situation does not improve, the whole nation could see continuous lockdown.

On Brexit front, although both countries E.U. and the U.K. remain far apart on several crucial issues, Britain’s chief negotiator David Frost said on Thursday that a Brexit deal could be reached in September.

The next round of the talks between both countries will take place on August 18, and comments from both sides suggested that they remain committed to reaching a deal. This has been supportive of Sterling, and hence GBP/USD raised.

Meanwhile, on the data front, there was no data to be released from Great Britain, and as for the U.S., the Retail Sales dropped to 1.2% from the expected 2.0% in July and weighed on the U.S. dollar.

The Core Retail Sales, however, improved to 1.9% in July against the anticipated 1.3% and supported the U.S. dollar. The Prelim UoM Consumer Sentiment also raised to 72.8 points against the expected 72 and supported the U.S. dollar that kept the gains in GBP/USD pair limited on Friday. The risk sentiment also supported the GBP/USD pair on Friday as the traders were cautious ahead of the US-China trade deal review meeting scheduled to be released on August 15.

Daily Technical Levels

Support Pivot Resistance
1.3010 1.3077 1.3150
1.2938 1.3216
1.2871 1.3289

GBP/USD– Trading Tip

The GBP/USD is trading at 1.3106 level, holding above the 50 periods EMA support level 1.3080. The bearish breakout of the 1.3080 support level can extend selling unto 1.3019 level. The upward channel also supports the GBPUSD at 1.3080, which provides resistance at 1.3134 level. The GBP/USD should confer a bearish crossover of 1.3082 level confirm a strong selling bias in the Cable until then; we should wait and watch. On the higher side, Sterling may find resistance at 1.3175 and 1.3224. Let’s consider selling below 1.3080 and buying over the same with minor stop loss. 

USD/JPY – Daily Analysis

The USD/JPY pair was closed at 106.573 after placing a high of 107.036 and a low of 106.433. Overall the movement of the USD/JPY pair remained bearish throughout the day. The U.S. Congress has failed to boost the economy and health care system, and it caused the U.S. President Donald Trump on Friday to stress for a coronavirus aid package. Trump pushed for state and local government aid and assistance regarding rental payments, more direct payments, and small business loans.

On the US-China front, both countries have delayed a review of their phase-1 trade deal that was initially scheduled for August 15. U.S. granted this time to China to increase the purchases of U.S. exports. The meeting was scheduled to take place on Saturday at the six-month anniversary of the phase one trade deal. The deal took its effect from February 15 as the global spread of coronavirus pandemic started.

On Friday, US President Donald Trump told us that the trade deal was intact and doing very well, but he did not mention anything about the delay in the review meeting. According to some sources familiar with the plans, the U.S. wanted to give more time to China to increase the purchases of the U.S. farm products that were part of the agreed deal. America’s favor given to China was provided to increase the review’s political optics as the U.S. Presidential elections were near.

On the negative side, there was news that Trump has said in a news conference that he was looking at banning other China-owned companies like Alibaba. This raised the fears of renewed conflicts and weighed on the market sentiment that dragged the USD/JPY pair on the downside.

Meanwhile, the Chinese Vice Foreign Minister Zheng Zeguang said that the relationship between the U.S. and China was at a critical juncture, and efforts should be made from both sides to maintain and stabilize the bilateral ties between both nations.

On the data front, at 09:30 GMT, the Tertiary Industry Activity in June from Japan rose to 7.9% from the forecasted 6.4% and supported the Japanese Yen that contributed to USD/JPY pair’s losses of the day.

At 17:30 GMT, the Core Retail Sales in July from the U.S. rose to 1.9% from the forecasted 1.3% and supported the U.S. dollar. At the same time, the Retail Sales in July dropped to 1.2% from the anticipated 2.0% and weighed on the U.S. dollar.

The core retail sales data exclude automobile sales that include about 20% of the retail sales data. The positive core retail sales and negative retail sales indicated that the automobile sector had suffered more than other sectors. The Prelim Nonfarm Productivity for the second quarter raised to 7.3% from the anticipated 1.5% and weighed on the U.S. dollar. The Prelim Unit Labor Cost for the second quarter rose to 12.2% against the forecasted 6.5% and supported the U.S. dollar.

At 18:15 GMT, the Capacity Utilization Rate also increased to 70.6% from the expected 70.3% and supported the U.S. dollar. The Industrial Production in July dropped to 3.0% from the anticipated 3.1% and weighed on the U.S. dollar. At 19:00 GMT, the Prelim UoM Consumer Sentiment in August rose to 72.8 from the anticipated 72.0 and supported the U.S. dollar. However, the Business Inventories in June came in as expected -1.1%. The Prelim UoM Inflation Expectations in August also remained flat at 3.0%.

After the release of U.S. economic data on Friday, the U.S. Dollar Index that rose to 93.40 earlier in the day, lost its traction and fell by 0.15% to 93.10 level. This weighed on USD/JPY pair, and the pair started to post losses on the day.

Daily Technical Levels

Support Pivot Resistance
105.8400 106.4500 107.1900
105.1000 107.8000
104.4900 108.5500

USD/JPY – Trading Tips

The USD/JPY consolidates in a sideways range, holding over resistance to become a support level of 106.428 level. Over this level, the USD/JPY is opening further room for buying until 107.450 level, but below this, the USD/JPY pair can trigger sharp selling until 105.752. The RSI and MACD are also supporting bearish bias in the pair. The current market price (CMP) of USDJPY is holding above 50 EMA, which extends support at 106.484 and may push the pair higher. Let’s consider buying above 106.480 level and selling below the same today. Good luck! 

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Forex Signals

EUR/USD Choppy Trading Continues – An Update on Signal!

The EUR/USD remain depressive near 1.18 level, mainly due to the coronavirus latest report, which fueled fears that the economic recovery could halt once again. Despite the risk-off market sentiment in the Asian stock markets, the broad-based U.S. dollar struggled to draw safe-haven bids but failed at least now. In turn, the currency pair got helped to limit its deeper losses and hold above 1.18 level. The on-going U.S. Congress’s failure to reach an agreement for the country’s latest COVID-19 stimulus package also adds a burden to the greenback and helps currency pair. At the moment, the EUR/USD currency pair is currently trading at 1.1802 and consolidating in the range between 1.1791 – 1.1826.

The EUR/USD remain depressive near 1.18 level, mainly due to the coronavirus latest report, which fueled fears that the economic recovery could halt once again. Despite the risk-off market sentiment in the Asian stock markets, the broad-based U.S. dollar struggled to draw safe-haven bids but failed at least now. In turn, the currency pair got helped to limit its deeper losses and hold above 1.18 level. The on-going U.S. Congress’s failure to reach an agreement for the country’s latest COVID-19 stimulus package also adds a burden to the greenback and helps currency pair. At the moment, the EUR/USD currency pair is currently trading at 1.1802 and consolidating in the range between 1.1791 – 1.1826.

The EUR/USD remain depressive near 1.18 level, mainly due to the coronavirus latest report, which fueled fears that the economic recovery could halt once again. Despite the risk-off market sentiment in the Asian stock markets, the broad-based U.S. dollar struggled to draw safe-haven bids but failed at least now. In turn, the currency pair got helped to limit its deeper losses and hold above 1.18 level. The on-going U.S. Congress’s failure to reach an agreement for the country’s latest COVID-19 stimulus package also adds a burden to the greenback and helps currency pair. At the moment, the EUR/USD currency pair is currently trading at 1.1802 and consolidating in the range between 1.1791 – 1.1826.

The Cases increased by 1,449 in Germany on the day against Thursday’s +1,445. While the death count increased by 14, the tally showed. Considering the current situation of the virus in Europe, Germany’s Health Minister Jens Spahn said that they are very concerned about the surge in the coronavirus cases but assured that the health system would control everything. As in result, the shared currency weakened and contributed to the currency pair losses.

On the other hand, the on-going uncertainty surrounding the much-awaited U.S. fiscal stimulus or the second wave of coronavirus (COVID-19) adds burden on the broad-based U.S. dollar and capped further downside for the currency pair. The Democrats and Republicans are still struggling to approve an additional stimulus package as authorities hinted that additional stimulus is needed to control the recent wave of the coronavirus’s negative impact.

Despite Thursday’s upbeat U.S. jobs data, the broad-based U.S. dollar failed to gain any positive traction and edged lower on the day as doubts over the U.S. economic recovery remain amid coronavirus crisis. However, the losses in the U.S. dollar helped the currency pair to limit its deeper losses. Whereas, the U.S. Dollar Index that tracks the greenback against a basket of other currencies dropped 0.08% to 93.243.

Across the pond, the investor sentiment dampened once again by disappointing Chinese data released earlier in the day. At the data front, China’s industrial production increased by 4.8% over the previous year in July. At the same time, the output expanded for the 4th-straight month, against expectations for a 5.1% year-on-year rise. In the meantime, the retail sales fell 1.1%, worse than an expected 0.1% expansion.

The data overshadowed the optimism made by the deceleration in China’s factory deflation signaled by the producer price index released earlier this month and weakened the risk sentiment in the Asia markets. However, the risk-off market sentiment helped the U.S. dollar put the safe-haven bid and capped its deeper losses.

Moving on, the shared currency could face losses if the Eurozone Gross Domestic Product, which is scheduled to release at 09:00 GMT, shows a bigger-than-expected economic recession in the 2nd-quarter.



The EUR/USD is trading neutral on Friday, as traders seem to wait for major economic data to help drive a breakout. The bullish sentiment seems dominant as the EUR/USD pair trades at 1.1818 level, holding right below an immediate resistance level of 1.1820. Below this, the pair is likely to trade bearish until 1.1783 and 1.1745 level. Conversely, the bullish breakout of the 1.1820 level can lead the pair to be further higher until 1.1860 and the 1.1890 levels.

Entry Price – Sell 1.18014
Stop Loss – 1.18414
Take Profit – 1.17614
Risk to Reward – 1:1
Profit & Loss Per Standard Lot = -$400/ +$400
Profit & Loss Per Micro Lot = -$40/ +$40

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Forex Market Analysis

Daily F.X. Analysis, August 14 – Top Trade Setups In Forex – Eyes U.S. Retail Sales!

On the news side, the eyes will remain on the U.S. retail sales data and the Prelim UoM Consumer Sentiment from the United States. Both of the events are expected to drop from their previous figures. Typically such kind of data drives bearish movement in the U.S. dollar. Therefore, the market can trade a weaker dollar sentiment today.

On the news side, the eyes will remain on the U.S. retail sales data and the Prelim UoM Consumer Sentiment from the United States. Both of the events are expected to drop from their previous figures. Typically such kind of data drives bearish movement in the U.S. dollar. Therefore, the market can trade a weaker dollar sentiment today.

On the news side, the eyes will remain on the U.S. retail sales data and the Prelim UoM Consumer Sentiment from the United States. Both of the events are expected to drop from their previous figures. Typically such kind of data drives bearish movement in the U.S. dollar. Therefore, the market can trade a weaker dollar sentiment today.

Economic Events to Watch Today   

 

 

EUR/USD – Daily Analysis

The EUR/USD currency pair succeeded to extended its previous session bullish rally and hit the fresh intra-day highs towards 1.1800 level. However, the reason for the gains in currency pair could also be attributed to the broad-based U.S. dollar bearish bias, backed by fears that U.S. economic recovery from COVID-19 continuing to diminish. The on-going U.S. Congress’ failure to reach an agreement for the country’s latest COVID-19 stimulus package also added a burden to the greenback and contributed to the currency pair gains. 

On the contrary, the growing cases of coronavirus in Germany became the key factor that kept the lid on any additional gains in the currency pair. At the moment, the EUR/USD currency pair is currently trading at 1.1831 and consolidating in the range between 1.1781 – 1.1838.

The on-going uncertainty surrounding the much-awaited U.S. fiscal stimulus or the second wave of coronavirus (COVID-19), not to forget the latest tension between America and China over TikTok, weighed on the broad-based U.S. dollar and contributed to the currency pair gains. It should be noted that the Democrats and Republicans are still struggling to approve an additional stimulus package as authorities hinted that additional stimulus is needed to control the negative impact of the recent wave of the coronavirus.

At the coronavirus front, the number of reported coronavirus cases increased to 219,964, with a total of 9,211 deaths tolls, as per the German disease and epidemic control center, Robert Koch Institute (RKI), on Thursday. Meanwhile, the Cases rose by 1,445 in Germany on Thursday against Wednesday’s +1,226. Whereas the death toll increased by 4, the tally showed. Despite this, the shared currency did not give any major attention to it and remains unperturbed by the renewed virus concerns.

The market players will keep their eyes on the Retail Sales m/m, Core Retail Sales m/m, and Prelim UoM Consumer Sentiment, which is scheduled to be released during the New York session. 

Daily Technical Levels

Support Pivot Resistance
1.1773 1.1819 1.1857
1.1735 1.1903
1.1689 1.1942

EUR/USD– Trading Tip

The EUR/USD is trading neutral on Friday, as traders seem to wait for major economic data to help drive a breakout. The bullish sentiment seems dominant as the EUR/USD pair trades at 1.1818 level, holding right below an immediate resistance level of 1.1820. Below this, the pair is likely to trade bearish until 1.1783 and 1.1745 level. Conversely, the bullish breakout of the 1.1820 level can lead the pair to be further higher until 1.1860 and the 1.1890 levels.

GBP/USD – Daily Analysis

The GBP/USD currency pair succeeded in stopping its previous-day losing streak and rose closer to 1.3100 level, mainly due to the broad-based U.S. dollar weakness. That was triggered by the coronavirus crisis in the U.S., which continued to fuel worries that the second wave of COVID-19 cases could undermine the U.S. economy.

The repeated inability over the much-awaited stimulus also adds pressure on the U.S. dollar and further pushed the currency pair. On the other hand, the fresh optimism over the UK-US relations also added strength around the Pound currency and contributed to the currency pair gains. On the other hand, the on-going pessimism of coronavirus (COVID-19) second wave in the U.K., and the UK-Japan lingering trade talks became the major factors that kept the lid on any further gains in the currency pair. Currently, the GBP/USD currency pair is currently trading at 1.3084 and consolidating in the range between 1.3031 – 1.3093.

The U.K. Trade Secretary Liz Truss declared that she is very satisfied as the United States has not implemented additional tariffs, which gave some support to the local currency and extended further upside momentum in the pair.

The U.K. formally started to face recession the previous day, with over 20% of GDP drop across the pond. In turn, the British business leaders and trade unions urged the extension of furlough scheme beyond October expiry; Chancellor Rishi Sunak sees promising signs off-late.

At the Brexit front, the Brexit jitters remain on the card as the fisheries and level-playing field being the tardiest obstacle. However, the policymakers from both sides are set to resume the sixth round in the next week. Apart from this, the U.S. criticized the European Union (E.U.) due to its lack of action regarding the airbus case. Elsewhere, the U.S. added some French and German goods to the tariff list while removing a few from the U.K. and Greece.

On the other hand, the rising COVID-19 cases, especially in the U.S., Australia, Japan, and some of the notable Asian nations like India, fueled concerns that the economic recovery could halt once again, which ultimately drags the broad-based U.S. dollar under pressure. The on-going uncertainty surrounding the much-awaited U.S. fiscal stimulus and the latest tension between America and China over TikTok also weighed on the broad-based U.S. dollar and contributed to the currency pair gains.

As a result, the broad-based U.S. dollar reporting losses on the day amid the failure of the U.S. stimulus package, as well as the United States still facing virus woes, ultimately crushed hopes for a quick economic recovery. Nevertheless, the losses in the U.S. dollar helped the currency pair to stay higher.  


Daily Technical Levels

Support Pivot Resistance
1.3021 1.3073 1.3116
1.2977 1.3169
1.2925 1.3212

GBP/USD– Trading Tip

The GBP/USD consolidates at 1.3070 level, holding right above the 50 periods EMA support area of 1.3040 level while the bearish breakout of 1.3040 level can extend selling unto 1.2918 level. Recently as we can see in the chart above that the GBPUSD pair has violated its upward trendline that supported the pair around 1.3130 level, and now below this, we can expect GBP/USD to continue trading bearish. The GBP/USD should show a bearish crossover to confirm a strong selling bias in the Cable. On the higher side, Sterling may find resistance at 1.3105 and 1.3175. Let’s consider selling below 1.3045 level today. 

USD/JPY – Daily Analysis

The USD/JPY currency pair failed to extend its previous 4-day bullish bias and dropped just above the mid-106.00 level, mainly due to the broad-based U.S. dollar weakness triggered by the worries that the second wave of COVID-19 cases in the United States could ruin the recovery in the world’s biggest economy. The on-going doubts over the U.S. Stimulus Package also weighed on the American currency and contributed to the pair losses. On the other hand, the concerns about intensifying US-China relations and U.S. Trade Representative Robert Lighthizer’s verbal attack on Europe extended some additional support to the safe-haven Japanese yen, which exerted an additional burden on the currency pair. Apart from this, the upbeat performance of Japanese PPI also underpinned the Japanese yen and pushed currency pair further lower. At this particular time, the USD/JPY currency pair is currently trading at 106.91 and consolidating between 106.57 – 106.94.

Despite the reduction in coronavirus cases, the fears about the U.S. economic recovery still hover all over the market and keep the U.S. dollar bulls defensive. As per the latest report, the figures have crossed almost 5.2 million cases in the U.S. alone as of August 13, as per the Johns Hopkins University and millions unemployed.

Meanwhile, the risk-off market sentiment was further bolstered by the long-lasting disappointment over the lack of progress in the much-awaited fiscal package. U.S. President Donald Trump accused Democrats that they are not willing to negotiate over the package.

As in result, the broad-based U.S. dollar failed to gain any positive traction on the day and reported losses as the United States crisis of virus could break hopes for a quick economic recovery, which kept the investors careful. However, the losses in the U.S. dollar kept the currency pair bearish. 

Also weighing on the market trading sentiment could be the U.S. Central Command’s statement suggesting the Iranian Navy overtaking a ship called “Wila.” Besides, the U.S. Trade Representative Robert Lighthizer’s verbal attack on Europe also adds a burden to the market trading sentiment.

Across the Pound, the losses in the currency pair could also be associated with Japanese PPI’s upbeat performance, which eventually underpinned Japanese yen and contributed to the currency pair declines. At the data front, Japan’s July month Producer Price Index (PPI) grew past-0.3% forecast on MoM to 0.6%. Further, the yearly figures slipped less than -1.1% expected level to -0.9%.

Daily Technical Levels

Support Pivot Resistance
106.6400 106.8500 107.1400
106.3500 107.3500
106.1400 107.6400

USD/JPY – Trading Tips

The USD/JPY trades sideways over resistance become a support level of 106.628 level. Above this, the USD/JPY pair is opening further room for buying until 107.450 level. The RSI and MACD are also supporting bullish bias in the pair. A recent bullish breakout of 106.450 level can extend the buying trend until 107.390. The current market price of USDJPY is staying over 50 EMA, which extends support at 105.950 and may push the pair higher. Let’s consider buying above 106.480 level today. Good luck! 

Categories
Forex Signals

USD/CAD Violates Descending Triangle Pattern – An Update on Signal! 

During Thursday’s European trading session, the USD/CAD currency pair failed to stop its Asian session from losing streak and dropped further below the mid-1.3200 level, mainly due to the U.S. dollar weakness triggered by gloomy U.S. economic outlook and lingering uncertainty over the U.S. stimulus package. 

During Thursday’s European trading session, the USD/CAD currency pair failed to stop its Asian session from losing streak and dropped further below the mid-1.3200 level, mainly due to the U.S. dollar weakness triggered by gloomy U.S. economic outlook and lingering uncertainty over the U.S. stimulus package. 

During Thursday’s European trading session, the USD/CAD currency pair failed to stop its Asian session from losing streak and dropped further below the mid-1.3200 level, mainly due to the U.S. dollar weakness triggered by gloomy U.S. economic outlook and lingering uncertainty over the U.S. stimulus package. 

On the other hand, the weaker oil prices due to the OPEC bearish fuel demand prediction, and US-China on-going war, undermined the commodity-linked currency the loonie which helped the currency pair to limit its deeper losses. Currently, the USD/CAD currency pair is currently trading at 1.3215 and consolidating in the range between 1.3209 – 1.3257.

Considering the on-going condition between the US-China, China’s Assistant Commerce Minister said he hopes the U.S. will create conditions for the implementation of the phase-1 trade deal. He further added that the COVID-19 and U.S. export control measures hurt Chinese purchases on U.S. goods and services. However, traders gave little attention to the above statement.

On the other hand, the on-going deadlock over additional stimulus measures to support the economic recovery from the coronavirus pandemic also weighed on the market risk sentiment.

This, in turn, the broad-based U.S. dollar failed to gain bullish momentum and reported losses on the day as the United States was still fighting the coronavirus. However, the weakness in the U.S. dollar kept the pair under pressure.

At the crude oil front, the WTI crude oil prices remain depressive around $42 levels as fears about the lower oil demand fueled after the OPEC said in its monthly report that the fuel demand will likely fall more than expected. This statement initially overshadowed the U.S. government data, which showed a decline in inventories and suggested that demand is recovering despite the coronavirus pandemic. However, the losses in the crude oil undermined the commodity-linked currency the loonie, which helped limit the pair’s deeper losses.

Looking forward, the market players will closely follow the release of the U.S. Initial Weekly Jobless Claims, which will affect the USD price dynamics and produce some meaningful direction for the currency pair. In the meantime, the traders will also keep their eyes on the news concerning the U.S./China. 


Technically, the USD/CAD has formed a descending triangle pattern that provided support at 1.3235 level, and it has now been violated. The USDCAD pair has violated the double bottom support area of 1.3235 level. Closing of candles below this level confirms a breakout; therefore, the odds of further selling below the 1.3235 level increase, and it can lead to USD/CAD prices until 1.3160. A slight bullish retracement could be seen until 1.3235 level before the pair continues trading lower. Check out the trade plan… 

Entry Price – Sell 1.32282
Stop Loss – 1.32682
Take Profit – 1.31882
Risk to Reward – 1:1
Profit & Loss Per Standard Lot = -$400/ +$400
Profit & Loss Per Micro Lot = -$40/ +$40

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