Author: Ali B.

Categories
Forex Signals

Gold Signal Hits Stop Loss – What’s Next to Expect? 

On Thursday, the precious metal gold firmed above $1,900 as the dollar declined, with bargain hunters posting on a resumption of bullion’s broader upwards trend brought by its recent steep slide from a record peak. On the positive side, U.S. President Donald Trump showed too much optimism about the U.S. economy during the White House press conference on early Thursday morning in Asia. As per Trump’s keywords, “U.S. economic performance significantly better than Europe.” 

On Thursday, the precious metal gold firmed above $1,900 as the dollar declined, with bargain hunters posting on a resumption of bullion’s broader upwards trend brought by its recent steep slide from a record peak. On the positive side, U.S. President Donald Trump showed too much optimism about the U.S. economy during the White House press conference on early Thursday morning in Asia. As per Trump’s keywords, “U.S. economic performance significantly better than Europe.” 

On Thursday, the precious metal gold firmed above $1,900 as the dollar declined, with bargain hunters posting on a resumption of bullion’s broader upwards trend brought by its recent steep slide from a record peak. On the positive side, U.S. President Donald Trump showed too much optimism about the U.S. economy during the White House press conference on early Thursday morning in Asia. As per Trump’s keywords, “U.S. economic performance significantly better than Europe.” 

He also said, ” We’re doing amazingly well with the coronavirus (COVID-19) and therapeutics.” However, these positive statements helped the equity market limit its deeper losses and capped the further upside for the yellow metal prices. On the positive side is the Republican leader’s willingness to cut payroll taxes after the November month elections. 

Meanwhile, the upbeat market performance could also be associated with the reports that President and CEO of the Federal Reserve Bank of Dallas Robert Steven Kaplan keep pushing the government for further unemployment benefits while refraining from imposing any lockdowns retractions. At the coronavirus front, the COVID-19 cases remain on the card and continue to affect the U.S. economic recovery. 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.

Considering the failure of agreeing on the coronavirus (COVID-19) relief package, the broad-based U.S. dollar was down on Thursday morning in Asia. Although market investors have stuck between optimism and uncertainty over the delayed package, some claimed that U.S. economic recovery depended on both sides reaching an agreement. Moreover, the weaker U.S. dollar could also be associated with the on-going doubt about the U.S. economic recovery amid intensifying coronavirus cases. Whereas, the losses in the U.S. dollar become the key factor that kept the gold prices supportive as the price of gold is inversely related to the U.S. dollar price. 


Speaking about the signal, it was doing pretty well as we tried to trade the choppy session within 1,953 – 1,910 level. Unfortunately, the market reversed right before hitting our take profit. Our stop loss was too tight, considering the current level of volatility in the market. For now, the precious metal is trading at 1,930, and the upper and lower boundary of 1,953 to 1,910 level is providing resistance and support, respectively. You can either take a sell trade below 1,953 level or buy trade over 1,910 support. Good luck! 

Categories
Forex Market Analysis

Daily F.X. Analysis, August 13 – Top Trade Setups In Forex – Eyes on U.S. Jobless Claims!  

On the news front, the eyes will remain on the U.S. Unemployment Claims figures, which are expected to perform slightly better. With this, the U.S. dollar can exhibit more buying, driving gold lower and the dollar higher.

On the news front, the eyes will remain on the U.S. Unemployment Claims figures, which are expected to perform slightly better. With this, the U.S. dollar can exhibit more buying, driving gold lower and the dollar higher.

On the news front, the eyes will remain on the U.S. Unemployment Claims figures, which are expected to perform slightly better. With this, the U.S. dollar can exhibit more buying, driving gold lower and the dollar higher.

Economic Events to Watch Today   

 

EUR/USD – Daily Analysis

The EUR/USD was closed at 1.17393 after placing a high of 1.18078 and a low of 1.17217. Overall the movement of the EUR/USD pair remained flat throughout the day. The EUR/USD pair took bids and surged above 1.18050 level, but after the release of U.S. economic data, the EUR/USD pair started to decline and posted losses. The pair ended its day on the same level it started its day with and hence, gave a smooth movement throughout the day.

The fresh risk appetite droved the rise in the EUR/USD pair amid the registration of the first coronavirus vaccine from Russia. Russia became the first country to register its vaccine for coronavirus, and this news gave a push to heavy risk appetite in the market.

The stock markets rushed to their higher level on this news, and the riskier currency Euro also gained from it in the early trading session. The gains continued after the release of macroeconomic data from the European side.

At 14:00 GMT, the ZEW Economic Sentiment for Eurozone in August surged to 64.0 against the expected 55.3 and supported the single currency. The ZEW Economic Sentiment for Germany surged to 71.5 from the anticipated 57.0 and supported Euro. The better than expected economic sentiment for the month gave strength to a single currency and pushed EUR/USD pair above 1.18050 level.

However, the gains could not last for long as the U.S. President Donald Trump announced that he was very seriously considering a capital gains tax cut to help job creation. If Trump gave another executive order on capital taxation, it would likely face legal challenges as it would push the boundaries of the President’s executive orders.

Daily Technical Levels

Support Pivot Resistance
1.1722 1.1769 1.1828
1.1664 1.1874
1.1617 1.1933

EUR/USD– Trading Tip

The EUR/USD has traded with bullish sentiment at 1.1805 level, holding right below an immediate resistance level of 1.1815. Below this, the pair is likely to trade bearish until 1.1783 and 1.1745 level. Conversely, the bullish breakout of the 1.1815 level can lead the pair further higher until the 1.1890 level. Let’s keep an eye on 1.1815.

GBP/USD – Daily Analysis

The GBP/USD closed at 1.30470 after placing a high of 1.31318 and a low of 1.30413. Overall the movement of GBP/USD pair remained bearish throughout the day. The GBP/USD pair dropped on Wednesday and posted losses as the unemployment benefits claims surged in the local country and also because of the strength of the U.S. dollar onboard.

At 04: 01 GMT, the BRC Retail Sales Monitor from Great Britain surged to 4.3% from the expected 2.5% and supported British Pound. At 11:00 GMT, the Claimant Count Change for July rose to 94.4K from the expected 9.7K and weighed heavily on British Pound. The Unemployment Rate from the U.K. came in as 3.9% in June and fell short of expectations of 4.2% and supported GBP.

The clamant count change from the U.K. that showed that more people claimed for unemployment benefits in July. According to the Office of National Statistics, around 730,000 people have become unemployed since March this year, and since June, further 114,000 people have lost their jobs.

However, the jobless rate remained flat at 3.9% in June; this reflected that the number of people who had given up looking for work increased.

The ONS Deputy national statistician, Jonathan Athow, said that the labor market had continued its recent fall in employment and significantly reduced work hours because many people were furloughed.

The people without a job and those who were not even looking for a job but wanted to work increased as the demand for workers was depressed.

It is also believed that the full extent of Britain’s’s job problems has been hidden under the Government’s furlough scheme, which promised to cover 80% of the salaries of workers who could not work due to lockdown.

Daily Technical Levels

Support Pivot Resistance
1.3002 1.3035 1.3066
1.2971 1.3099
1.2938 1.3130

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 pair was closed at 106.491 after placing a high of 106.682 and a low of 105.870. Overall the movement of the USD/JPY pair remained bullish throughout the day. The USD/JPY pair extended its previous day gains and rose for the 3rd consecutive day amid increased risk appetite in the market. The Russian vaccine, U.S. Stimulus package, Trump’s executive orders, and the rise of the equity market drove Wednesday’s move of USD/JPY pair.

The President of Russia, Vladimir V. Putin, announced that the Russian government had approved the world’s first coronavirus vaccine. Putin said that his daughter had taken the vaccine in a cabinet meeting, and it has worked adequately enough to declare it safe.

However, global health authorities have said that the vaccine has to complete the last stage of clinical trials to be approved. Despite this, Mr. Putin thanked the scientists in a congratulatory note to the nation who developed the vaccine. He also said that it was “the first” very important step for Russia and generally for the whole world.

Scientists in Russia and other countries said that rushing to offer the vaccine before final-stage testing could backfire. Tens of thousands of people are included in the final stage of trials, and it could take months to prove its effectiveness.

However, investors cheered the news of the vaccine as it was long-awaited, and as in result, the risk appetite of the market rose. The equity markets surged that weighed on the safe-haven Japanese Yen, which ultimately pushed the USD/JPY pair higher, which keeps challenges the upbeat market tone. In the meantime, the White House National Security Adviser Robert O’Brien blamed China while saying that the “Chinese hackers have been targeting U.S. election infrastructure ahead of the 2020 presidential election.” These gloomy updates capped further upside in the currency pair by giving support to the safe-haven Japanese yen.

Later today, the eyes will remain on the U.S. Jobless claims data to determine further trends in the USD/JPY pair. 

Daily Technical Levels

Support Pivot Resistance
106.5500 106.7900 107.1400
106.2100 107.3700
105.9700 107.7200

USD/JPY – Trading Tips

The USD/JPY trades sideways over resistance become 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

EUR/USD Manual Close at 20 Pips Loss – Reason Explained! 

The EUR/USD pair traded in a bearish mode earlier today when we opened a sell trade at 1.17132. However, every soon, the market sentiment started to change, and the EUR/USD pair started forming a bullish setup. We decided to cut the minor loss in the EUR/USD pair, instead of keeping it until it hit loss. 

The EUR/USD pair traded in a bearish mode earlier today when we opened a sell trade at 1.17132. However, every soon, the market sentiment started to change, and the EUR/USD pair started forming a bullish setup. We decided to cut the minor loss in the EUR/USD pair, instead of keeping it until it hit loss. 

The EUR/USD pair traded in a bearish mode earlier today when we opened a sell trade at 1.17132. However, every soon, the market sentiment started to change, and the EUR/USD pair started forming a bullish setup. We decided to cut the minor loss in the EUR/USD pair, instead of keeping it until it hit loss. 

As we see now, the EUR/USD has formed three white soldiers’ candlestick patterns suggesting strong bullish bias in the EUR/USD pair. On the higher side, the EUR/USD may head further higher until the 1.1799 level. The hope provided by Trump raised US dollar bars in the market, and that pulled EUR/USD pair from its daily high to below 1.1800 level.

Meanwhile, the risk sentiment was also disturbed by the fears of escalating China-US tensions, as China announced that it would also impose sanctions on 11 Americans in retaliation to the US same sanctions on Hong Kong & Chinese officials. The list of Americans to be sanctioned by China included Senator Macro Rubio and Ted Cruz also.

The faded risk sentiment weighed on EUR/USD pair and pair started to lose its daily gains.

At 17:30 GMT, the Core PPI from the US for July rose to 0.5%from the 0.1% of expectations and supported the dollar. The PPI for July also rose to 0.6% from the expected 0.3% and came in favor of the dollar.

The better than expected PPI data from the US added strength to the US dollar and added pressure to EUR/USD pair, causing it to lose all daily gains and close at the same level the market was opened.


The EUR/USD is trading at 1.1790 level, heading to test the triple top resistance level of 1.1800 level. The closing of candles below 1.1800 level can drive more selling in the pair until the 1.1760 level is met. On the higher side, the EUR/USD pair may find resistance at 1.1835 level after 1.1800 level. In contrast, support continues to stay at 1.1759. Let’s wait for the next entry from our side. Good luck! 

Categories
Forex Signals

Gold Signal Offers Another +150 Pips Profit – What’s Next?

Earlier today, we managed to close another exciting trade in gold, capturing 153.6 green pips. The precious metal gold bounced back over $1,900 per ounce as soft U.K. data revived concerns across a the coronavirus-driven economic slowdown and backed bullion erase primary losses fired by a resurgent dollar.

Earlier today, we managed to close another exciting trade in gold, capturing 153.6 green pips. The precious metal gold bounced back over $1,900 per ounce as soft U.K. data revived concerns across a the coronavirus-driven economic slowdown and backed bullion erase primary losses fired by a resurgent dollar.

Earlier today, we managed to close another exciting trade in gold, capturing 153.6 green pips. The precious metal gold bounced back over $1,900 per ounce as soft U.K. data revived concerns across a the coronavirus-driven economic slowdown and backed bullion erase primary losses fired by a resurgent dollar.

Emphasizing the economic loss produced by the pandemic, data revealed Britain’s economy contracted by a record of 20.4% between April and June, the most significant reduction announced by any major economy so far.

Despite the reducing number of virus cases in the U.S., the doubts remain about the U.S. economic recovery. As per the latest report, the COVID-19 crossed over 20 million cases reported as of August 11 as per the Johns Hopkins University data. But Texas, New York, and California reported declining numbers of hospitalizations.

Apart from the virus woes, the long-lasting tussle between the world’s two largest economies remained on the cards as bt nation fired shoots each other. It is worth restating that the Dragon Nation took revenge from the U.S. by imposing the sanctions on 11 American yesterday. The move comes after the U.S. sanctioned 11 Chinese officials and their allies in Hong Kong, including Hong Kong’s Chief Executive Carrie Lam. This statement capped the further upside in the equity market and helped gold prices to gain a bit of support.

Despite the intensifying conflict between US-China, the PBOC Governor expressed an upbeat tone while saying, “China will continue implementing the phase-one economic and trade agreement with the United States. This statement gave some breath to the investors.


On the technical side, the precious metal gold has tested the upward trendline support level of 1,877 level. Closing above this trendline is also suggesting buying trends in the gold. We took a buy trade at 1893.06 with a stop loss at 1894.42 and took profit at 1908.42. For now, the gold is holding at 1,932 level, and gold is facing resistance at 1,940. Above this, the next resistance stays at 1,955 level. Let’s wait for the market to extend another goos setup, and we will share the next trading signal. Stay tuned.!

Categories
Forex Market Analysis

Daily F.X. Analysis, August 12 – Top Trade Setups In Forex – Stronger Dollar Continues to Play! 

On the news side, the eyes will remain on the UK GDP and U.S. CPI figures. U.S. inflation is expected to drop, and it can impact the U.S. dollar negatively. Conversely, the UK GDP figures are anticipated to have improved, but the prelim GPD seems to perform badly. A mixed response can be seen in news releases.

On the news side, the eyes will remain on the UK GDP and U.S. CPI figures. U.S. inflation is expected to drop, and it can impact the U.S. dollar negatively. Conversely, the UK GDP figures are anticipated to have improved, but the prelim GPD seems to perform badly. A mixed response can be seen in news releases.

On the news side, the eyes will remain on the UK GDP and U.S. CPI figures. U.S. inflation is expected to drop, and it can impact the U.S. dollar negatively. Conversely, the UK GDP figures are anticipated to have improved, but the prelim GPD seems to perform badly. A mixed response can be seen in news releases.

Economic Events to Watch Today  

 

 

EUR/USD – Daily Analysis

The EUR/USD pair was closed at 1.17393 after placing a high of 1.18078 and a low of 1.17217. Overall the movement of the EUR/USD pair remained flat throughout the day. 

In the first session of Tuesday, EUR/USD pair took bids and surged above 1.18050 level, but after the release of U.S. economic data, the EUR/USD pair started to decline and posted losses. The pair ended its day on the same level it started its day with and hence, gave a smooth movement throughout the day.

The fresh risk appetite droved the rise in the EUR/USD pair amid the registration of the first coronavirus vaccine from Russia. Russia became the first country to register its vaccine for coronavirus, and this news gave a push to heavy risk appetite in the market.

The stock markets rushed to their higher level on this news, and the riskier currency Euro also gained from it in the early trading session. The gains continued after the release of macroeconomic data from the European side.

At 14:00 GMT, the ZEW Economic Sentiment for Eurozone in August surged to 64.0 against the expected 55.3 and supported the single currency. The ZEW Economic Sentiment for Germany surged to 71.5 from the anticipated 57.0 and supported Euro. The better than expected economic sentiment for the month gave strength to a single currency and pushed EUR/USD pair above 1.18050 level.

However, the gains could not last for long as the U.S. President Donald Trump announced that he was very seriously considering a capital gains tax cut to help job creation. If Trump gave another executive order on capital taxation, it would likely face legal challenges as it would push the boundaries of the President’s executive orders.

Daily Technical Levels

Support Pivot Resistance
1.1704 1.1756 1.1790
1.1670 1.1842
1.1618 1.1876

EUR/USD– Trading Tip

The EUR/USD pair is trading at 1.1720 level, testing the triple bottom support level of 1.1714 level. Closing of candles below 1.1710 level can drive more selling in the pair until 1.1639 level. On the higher side, the EUR/USD pair may find resistance at 1.1793 level. Three black crows on the 4-hour timeframe are suggesting odds of selling trend continuation in the EUR/USD.

GBP/USD – Daily Analysis

The GBP/USD pair was closed at 1.30470 after placing a high of 1.31318 and a low of 1.30413. Overall the movement of GBP/USD pair remained bearish throughout the day. The GBP/USD pair dropped on Tuesday and posted losses as the unemployment benefits claims surged in the local country and also because of the strength of the U.S. dollar onboard.

At 04: 01 GMT, the BRC Retail Sales Monitor from Great Britain surged to 4.3% from the expected 2.5% and supported British Pound. At 11:00 GMT, the Claimant Count Change for July rose to 94.4K from the expected 9.7K and weighed heavily on British Pound. The Unemployment Rate from the U.K. came in as 3.9% in June and fell short of expectations of 4.2% and supported GBP.

The most important data on Tuesday was the clamant count change from the U.K. that showed that more people applied for unemployment benefits in July. According to the Office of National Statistics, around 730,000 people have become unemployed since March this year, and since June, further 114,000 people have lost their jobs.

However, the jobless rate remained flat at 3.9% in June; this reflected that the number of people who had given up looking for work increased.

The ONS Deputy national statistician, Jonathan Athow, said that the labor market had continued its recent fall in employment and significantly reduced work hours because many people were furloughed.

The people without a job and those who were not even looking for a job but wanted to work increased as the demand for workers was depressed.

It is also believed that the full extent of Britain’s’s job problems has been hidden under the Government’s furlough scheme, which promised to cover 80% of the salaries of workers who could not work due to lockdown.

Daily Technical Levels

Support Pivot Resistance
1.3016 1.3074 1.3107
1.2983 1.3165
1.2925 1.3197

GBP/USD– Trading Tip

On Tuesday, the GBP/USD consolidates at 1.3067 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 pair was closed at 106.491 after placing a high of 106.682 and a low of 105.870. Overall the movement of the USD/JPY pair remained bullish throughout the day. The USD/JPY pair extended its previous day gains and rose for the 3rd consecutive day on Tuesday amid increased risk appetite in the market. The Russian vaccine, U.S. Stimulus package, Trump’s executive orders, and the rise of the equity market drove Tuesday’s move of USD/JPY pair.

In the early session of Tuesday, the President of Russia, Vladimir V. Putin, announced that the Russian government had approved the world’s first coronavirus vaccine. Putin said that his daughter had taken the vaccine in a cabinet meeting, and it has worked adequately enough to declare it safe.

However, global health authorities have said that the vaccine has to complete the last stage of clinical trials to be approved. Despite this, Mr. Putin thanked the scientists in a congratulatory note to the nation who developed the vaccine. He also said that it was “the first” very important step for Russia and generally for the whole world.

Scientists in Russia and other countries said that rushing to offer the vaccine before final-stage testing could backfire. Tens of thousands of people are included in the final stage of trials, and it could take months to prove its effectiveness.

However, investors cheered the news of the vaccine as it was long-awaited, and as in result, the risk appetite of the market rose. The equity markets surged that weighed on the safe-haven Japanese Yen, which ultimately pushed the USD/JPY pair higher, which keeps challenges the upbeat market tone. In the meantime, the White House National Security Adviser Robert O’Brien blamed China while saying that the “Chinese hackers have been targeting U.S. election infrastructure ahead of the 2020 presidential election.” These gloomy updates capped further upside in the currency pair by giving support to the safe-haven Japanese yen.

As a result of the upbeat U.S. data, the broad-based U.S. dollar succeeded in gaining some positive traction on the day. Still, the bullish bias in the U.S. dollar is expected to be short-lived as doubts remain about the U.S. economic recovery amid on-going coronavirus cases. However, the gains in the U.S. dollar became the key factor that kept the currency pair higher.

Daily Technical Levels

Support Pivot Resistance
106.0400 106.3700 106.8200
105.5900 107.1500
105.2600 107.6000

USD/JPY – Trading Tips

The USD/JPY trades sharply bullish to break out of the sideways trading range of 106.480 – 105.440. Bullish crossover of 106.480 level 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

Ascending Triangle Pattern Supports GBP/JPY – Buy Signal Doing Well!


Entry Price – Buy 138.947
Stop Loss – 138.547
Take Profit – 139.347
Risk to Reward – 1:1
Profit & Loss Per Standard Lot = -$400/ +$400
Profit & Loss Per Micro Lot = -$40/ +$40

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Categories
Forex Market Analysis

Daily F.X. Analysis, August 11 – Top Trade Setups In Forex – Stronger Dollar In Play! 

On the news front, the economic calendar is a bit light and may not be offering any major economic release. Therefore, we need to trade based upon stronger dollar sentiment, as traders are likely to price better than expected NFP data from last week.

On the news front, the economic calendar is a bit light and may not be offering any major economic release. Therefore, we need to trade based upon stronger dollar sentiment, as traders are likely to price better than expected NFP data from last week.

On the news front, the economic calendar is a bit light and may not be offering any major economic release. Therefore, we need to trade based upon stronger dollar sentiment, as traders are likely to price better than expected NFP data from last week.

Economic Events to Watch Today  

 

 

EUR/USD – Daily Analysis

The EUR/USD pair was closed at 1.17363after placing a high of 1.18005 and a low of 1.17358. Overall the movement of the EUR/USD pair remained bearish throughout the day. The EUR/USD pair extended its previous day’s losses on Monday amid the strong U.S. dollar and increasing US-China tensions. The main driver of the EUR/USD pair on Monday was the U.S. dollar.

The U.S. Dollar was strong across the board with the U.S. Dollar Index at 93.5 level, with investors taking comfort from President Donald Trump’s move to boost the economy in the wake of coronavirus pandemic.

Over the weekend, U.S. President Trump signed a series of executive orders aimed at enhancing the economic condition. The orders included an extension of expanded jobless benefits at a lower rate of $400 a week. It was down from the previous $600 a week. The State government will pay 1/4th of the bill, which was also included in Trump’s order.

However, it is not clear that the executive orders can withstand court scrutiny as the power relies on Congress. Nevertheless, the President’s orders were an attempt to play his part in breaking the impasse. Though the talks between Republicans & Democrats on August 7 broke some of the differences, they still did not show any consensus. The new round of talk is expected to resume at some point, but the date is not yet confirmed.

The chances for a $3 trillion stimulus package have been compromised to $2 trillion by Democrats, but that is still a trillion more than the framework that the ruling party aimed for. Additionally, the JOLTS Job Openings data from the U.S. on Monday came in as 5.89 M in June in comparison to 5.30M of forecasts and supported the U.S. dollar that weighed on EUR/USD pair.

From the Europe side, the Sentix Investor Confidence for August dropped to -13.4 from the anticipated -16.0 and the previous -18.2 and supported Euro that kept the losses of EUR/USD pair limited on Monday.

Meanwhile, early on Monday, the Defence Ministry of Taiwan said that a Chinese jet fighter crossed the median of the Taiwan Strait line, possibly in response to the U.S. Health Secretary Alex Azar’s visit to Taipei.

Any form of American recognition of the island nation Taiwan that China claimed its own make Beijing angry, and hence, it responded. The tensions in Taiwan have grown since the Hong Kong clash between the U.S. & China.

Besides this, the world’s biggest nations are also clashing over the technological front; recently, the U.S. banned American firms from dealing with TikTok and WeChat app. However, the most important matter between both countries lies with the fulfillment of the phase-one trade deal. Negotiators from both sides are scheduled to meet this week to analyze the achievements of the deal. The risk-off market sentiment was picking its pace after the escalation of US-China tensions, and it has weighed on the riskier pair EUR/USD.

Daily Technical Levels

Support Pivot Resistance
1.1713 1.1758 1.1780
1.1691 1.1825
1.1646 1.1848

EUR/USD– Trading Tip

The single currency Euro slipped against the U.S. dollar amid increased USD demand as traders started to price in stronger than expected NFP data released on Friday. The EUR/USD is now bouncing off the support level of the 1.1728 level. It may head higher towards 23.6% Fibonacci retracement level of 1.1768, and above this, the next resistance can stay at 1.1765 level, which marks 38.2% Fibonacci retracement level.

GBP/USD – Daily Analysis

The GBP/USD pair was closed at 1.30730 after placing a high of 1.31032 and a low of 1.30188. Overall the movement of GBP/USD pair remained bullish throughout the day. The GBP/USD pair rose on Monday ahead of key data due later this week, despite the U.S. dollar’s strength. The risk sentiment favored some of the factors, and investors believe that further upside could be on the horizon.

The latest higher move in the Pound was because of the key economic data, including the update of the labor market and second-quarter GDP scheduled to be released later this week. Moreover, the GBP/USD pair was also supported by the improving risk sentiment in the market after the hopes about the US-China phase-one trade deal became optimistic.

The U.S. trade representative and U.S. Treasury Secretary will meet the Chinese Vice Premier later this week to evaluate the implementation of the phase-one trade deal by China. China has assured that it will fulfill its promises made under the agreement that include the increased U.S. farm purchases and the better protection of Intellectual property rights.

This faded some of the risk-off market sentiment and caused GBP/USD to surge.

The risk sentiment was backed by the comments of WHO Chief Scientist Dr. Soumya Swaminathan, who praised the global efforts in the development of the COVID-19 vaccine. She reported that almost 200 vaccines were being developed globally and were in the stage of clinical or pre-clinical trials. According to her, 24 vaccines had entered the clinical trials in human beings.

The unprecedented global efforts to develop the coronavirus vaccine triggered the risk-on market sentiment as various potential paths to the end of coronavirus gave hope to the investors. The improved risk appetite gave a push to GBP/USD pair on Monday.

On Brexit front, the U.K. media has suggested that David Frost remain the U.K.’s chief Brexit negotiator and will stay on committed to securing an agreement with the European Union even if a deal is not secured by the end of September.

The U.K. formally left the E.U. in January after voting to leave in 2016, and negotiations to reach post-Brexit trade deal are currently deadlocked because both sides have failed to reach a consensus on various matters.

As the end of the transition periods is getting closer day by day, Prime Minister Boris Johnson has vowed to end the year with or without a deal, outside Europe. David Frost is set to take up a new position as National Security Advisor (NSA) in September. However, his position as Chief Brexit Negotiator will remain in place.

Meanwhile, the U.K. government pledged a further 20 Million Pounds in aid to Lebanon following Tuesday’s deadly explosion in Beirut. The U.K.’s support will directly go to the injured and people displaced by the explosion. It will also provide food, medicine, and urgent supplies to the needy in Lebanon affected by the explosion.

The U.K. government has already given 5 Million Pound to the emergency relief effort and said that it would stand by the Lebanese people in the hour of need. This also helped GBP in recovering its position and pushed GBP/USD pair higher on Monday.

Daily Technical Levels

Support Pivot Resistance
1.3024 1.3064 1.3110
1.2978 1.3150
1.2938 1.3196

GBP/USD– Trading Tip

On Tuesday, the GBP/USD consolidates at 1.3067 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 succeeded to break its previous session thin trading range and rose above 106.00 marks mainly due to the broad-based U.S. dollar fresh strength, buoyed by the Friday’s better-than-expected employment report, which eventually helped the U.S. dollar to put the bids. 

On the other hand, the upbeat market sentiment, backed by the optimism that the U.S. policymakers are showing signs to resume talks about the stimulus package, undermined the safe-haven Japanese yen and contributed to the pair’s gains. In the meantime, the risk-on market sentiment was further bolstered by the upbeat key U.S. and China data, which tends to urge buyers to invest in riskier assets instead of safe-have assets. Currently, the USD/JPY currency pair is currently trading at 106.00 and consolidating in the range between 105.72 – 106.06.

Despite concerns about the ever-increasing coronavirus cases across the world and worsening US-China relations, the investors continued to cheer the hopes of the U.S. fiscal stimulus package triggered by the signs that White House officials and congressional Democrats showed a willingness to compromise on another stimulus package to bolster the stalled economy. 

On the other hand, U.S. President Donald Trump fulfilled his promise to take executive action as the U.S. Congress failed to offer any outcome over the country’s latest stimulus measures. As a result, U.S. President Trump’s signed four executive orders to release unemployment claim benefits, help with student loans, and aid those living in a rented house, which also exerted a positive impact on the market trading sentiment and contributed to the currency pair losses.

Moreover, the upbeat market sentiment was being supported by Friday’s better-than-expected employment report. Details suggested Non-farm payrolls increased by 1.763 million in July month, vs. the estimated 1.6 million increase. The unemployment rate also declined to 10.2% in July, compared to June’s reading of 10.5%.

Despite the positive data, the doubts remain about the U.S. economic recovery amid the on-going surge in the coronavirus cases. As per the latest report, the U.S. crossed the five million COVID-19 cases as of August 10, according to Johns Hopkins University. Whereas Australia’s 2nd-most populous state, the epicenter of the pandemic, Victoria, reported the biggest single-day rise in deaths. As per the latest figures, Australia’s coronavirus death losses crossed 314 as Victoria announces a daily record of 19 deaths and 322 new cases in the past 24 hours. 

Apart from the virus woes, the long-lasting struggle between the world’s two largest economies remained on the cards as U.S. President Donald Trump turned off the business tap for China’s TikTok and WeChat. As well as, the U.S. imposed sanctions on the Hong Kong Leader Carry Liam, which keeps challenges the upbeat market tone. In the meantime, the White House National Security Adviser Robert O’Brien blamed China while saying that the “Chinese hackers have been targeting U.S. election infrastructure ahead of the 2020 presidential election.” These gloomy updates capped further upside in the currency pair by giving support to the safe-haven Japanese yen.

As a result of the upbeat U.S. data, the broad-based U.S. dollar succeeded in gaining some positive traction on the day. Still, the bullish bias in the U.S. dollar is expected to be short-lived as doubts remain about the U.S. economic recovery amid on-going coronavirus cases. However, the gains in the U.S. dollar became the key factor that kept the currency pair higher.

Daily Technical Levels

Support Pivot Resistance
105.6900 105.9500 106.1900
105.4500 106.4500
105.1900 106.7000

USD/JPY – Trading Tips

The USD/JPY has made a slight bullish recovery from 105.780 to 106.150 area, especially after examining the 38.2% Fibonacci support level of 105.650. A bullish breakout of 106.467 resistance level can drive more buying until the next resistance area f 107.198. On the lower side, the USD/JPY may find support at 105.600 and 105.078, extended by the 38.2% and 61.8% Fibonacci retracement level. The current market price of USDJPY is staying over 50 EMA, which extends support and may push the pair higher. Let’s consider buying above 105.750 level today. Good luck! 

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Forex Signals

EUR/USD Downward Channel Continues to Drive Selling


Entry Price – Sell 1.17411
Stop Loss – 1.17811
Take Profit – 1.17011
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 Triple Bottom Breakout Confirmed – Second Signal In Play!

The yellow metal prices extended its previous day losing streak and took offer near $2,014 level due to the risk-on market sentiment, supported by the expectations of a next U.S. stimulus, which boosted the market trading sentiment and undermined the safe-haven demand in the market.

On the other hand, the ongoing struggle between the United States and China continues to simmer, which became the key factor that helped the safe-haven gold limit its deeper losses. The broad-based U.S. dollar weakness, in the wake of upbeat trading sentiment, also capped losses for the yellow metal. While the ever-rising number of COVID-19 cases also urge investors to take shelter into safe-haven assets. The yellow metal prices are currently trading at 2,015.01 and consolidating in the range between 2,013.17 and 2,030.05. Despite many factors portraying the rush to risk-safety, the market players just giving attention to the optimism that the U.S. Congress reached closer to an agreement over the latest COVID-19 stimulus measures that caused a rebound in U.S. bond yields.

Despite the ongoing tussle and tit-for-tat responses between the US-China, the trade deal remains intact, as investors are awaiting a meeting between top U.S. and Chinese trade officials on Saturday to examine the first 6-months of the Phase 1 trade deal. On the contrary, the Dragon Nation imposed sanctions on 11 U.S. policymakers that include two Senators yesterday, in return to the U.S.’ move last week sanctioning 11 Chinese officials and their allies in Hong Kong. However, these gloomy headlines helped safe-haven metal to limit its further downside momentum.

Also challenging the risk-on market sentiment was the COVID-19 crisis. As per the latest report, the COVID-19 crossed over 20 million cases reported as of August 11, as per the Johns Hopkins University data. But Texas, New York, and California reported declining numbers of hospitalizations.

Elsewhere, U.S. President Donald Trump tweeted that top congressional Democrats wanted to meet with him over COVID-19 related economic relief. While the U.S. Congress is set to restart discussions on the COVID-19 deal. This, in turn, boosted the market risk sentiment and kept the yellow-metal under pressure. However, the investors now will be awaiting whether the Republicans and the Democrats reach a consensus on the latest stimulus measures.

Moreover, the market risk-on sentiment was further bolstered by U.S. President Trump’s optimism towards the American economy. He said he sees no reason why can’t the economy improve 20% in the 3rd-quarter (Q3). This positive headlines also gave support to the market trading sentiment and contributed to the metal losses.

The market traders still cheering the U.S. President Donald Trump’s action of signing four executive orders to release unemployment claim benefits, help with student loans, and aid for those living in a rented house, which also exerted a positive impact on the market trading sentiment and contributed to the gold losses.

Whereas, signs of economic recovery in China also supported the risk-on market sentiment. China’s consumer price index (CPI) increased 2.7% while its producer price index (PPI) dropped 2.4% in July from a year earlier, as per the National Bureau of Statistics report.

Despite the U.S. Congress reached closer to an agreement over the latest COVID-19 stimulus measures, and U.S. bond yields rebounded, the broad-based U.S. dollar failed to stop its losses and took the further offer on the day as the risk-on market sentiment weighed on the safe-haven U.S. dollar. However, the declines in the U.S. dollar helped the gold prices to limit its deeper 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 dropped 0.06% to 93.537 by 10:01 PM ET (3:01 AM GMT).

Due to the lack of major data/events on the day, the market traders will keep their eyes on the USD price dynamics and coronavirus stories, which will play a key role in driving gold prices. As well as, the traders will keep their eyes on the news concerning U.S./China.

The precious metal gold’s bearish bias continues to drive it’s priced lower towards 1,972 level. Fortunately, we have already secured around 200 pips in gold and now, we are looking for another good point to take a buy trade in gold. For now, the precious metal may find support at 1,960 levels and resistance at 1,985. Let’s wait for market to settle down to secure the next trade.


Entry Price – Sell 2006.28
Stop Loss – 2006.26 (Breakeven Stop Loss)
Take Profit – 1998.78
Risk to Reward – 1:1
Profit & Loss Per Standard Lot = -$600/ +$600
Profit & Loss Per Micro Lot = -$60/ +$60

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

iPhone Users: https://apps.apple.com/es/app/fasignals/id1521281368
Andriod Users: https://play.google.com/store/apps/details?id=academy.forex.thesignal&hl=en_US

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Forex Signals

Gold Breaks Below Triple Bottom Support – Quick Signal!

Entry Price – Sell 2014.48

Entry Price – Sell 2014.48

Entry Price – Sell 2014.48
Stop Loss – 2020.12
Take Profit – 2006.98
Risk to Reward – 1:1
Profit & Loss Per Standard Lot = -$600/ +$600
Profit & Loss Per Micro Lot = -$60/ +$60

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

iPhone Users: https://apps.apple.com/es/app/fasignals/id1521281368
Andriod Users: https://play.google.com/store/apps/details?id=academy.forex.thesignal&hl=en_US

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Forex Signals

EUR/USD Stays Below 50 EMA – Quick Update on Sell Signal! 

The EUR/USD continues to trade bearish below 1.1800 support. It becomes a resistance level, having hit the low of 1.1740 level mainly due to the broad-based U.S. dollar latest recovery moves, supported by Friday’s better-than-expected employment report. However, the gains in the U.S. dollar could be limited or short-lived as uncertainty remains about the U.S. economic recovery. 

The EUR/USD continues to trade bearish below 1.1800 support. It becomes a resistance level, having hit the low of 1.1740 level mainly due to the broad-based U.S. dollar latest recovery moves, supported by Friday’s better-than-expected employment report. However, the gains in the U.S. dollar could be limited or short-lived as uncertainty remains about the U.S. economic recovery. 

The EUR/USD continues to trade bearish below 1.1800 support. It becomes a resistance level, having hit the low of 1.1740 level mainly due to the broad-based U.S. dollar latest recovery moves, supported by Friday’s better-than-expected employment report. However, the gains in the U.S. dollar could be limited or short-lived as uncertainty remains about the U.S. economic recovery. 

On the other hand, the latest Bank of France economic forecasts confirmed that the euro economy contracted in line with expectations in the 2nd-quarter of 2020, which tends to undermine the shared currency and contributed to the currency pair losses. At the moment, the EUR/USD currency pair is currently trading at 1.1768 and consolidating in the range between 1.1760 – 1.1801.


Technically, the EUR/USD is trading at 1.1762, and our forex trading signal seems to be doing fine now. Closing of candles below 50 periods EMA at 1.1805 is suggesting odds of bearish trend continuation. The leading indicators, such as RSI and MACD, are still holding in a selling zone and can drive EURUSD prices further lower until the 1.1700 level. Besides, the 2-hour timeframe also shows the lowers low and lowers high pattern, which also supports the bearish trend of the EUR/USD. Check out our forex trading signal below…

Entry Price – Sell 1.17523
Stop Loss – 1.17923
Take Profit – 1.17123
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 Sideways Movement Continues – Stronger NFP Keeping Dollar Stronger!

Today in the early Asian trading session, the yellow metal prices extended its late-Friday pullback and moved below $2,030. Let me remind you, the gold prices fresh losses can be considered as an extension to Friday’s losses that were the highest in 2-months. The reason could be associated with fresh risk-on market sentiment, supported by Trump’s latest positive statement that refueled hopes of further stimulus. 

Today in the early Asian trading session, the yellow metal prices extended its late-Friday pullback and moved below $2,030. Let me remind you, the gold prices fresh losses can be considered as an extension to Friday’s losses that were the highest in 2-months. The reason could be associated with fresh risk-on market sentiment, supported by Trump’s latest positive statement that refueled hopes of further stimulus. 

Today in the early Asian trading session, the yellow metal prices extended its late-Friday pullback and moved below $2,030. Let me remind you, the gold prices fresh losses can be considered as an extension to Friday’s losses that were the highest in 2-months. The reason could be associated with fresh risk-on market sentiment, supported by Trump’s latest positive statement that refueled hopes of further stimulus. 

As in result, the risk sentiment got a lift while the Asian equities trimmed their losses and held up near-daily highs that urged buyers to invest in riskier assets instead of safe-have assets. The risk-on market sentiment got additional support from upbeat China’s CPI, PPI, for July data. Elsewhere, the broad-based U.S. dollar reported losses on the day despite Friday’s better-than-expected U.S. payrolls report, which helped the bullion prices to limit its deeper losses. Meanwhile, the coronavirus (COVID-19) crisis gradually supported the safe-haven assets and capped its losses. The yellow metal prices are currently trading at 2,029.23 and consolidating in the range between 2,019.85 and 2,036.24.

Earlier today, U.S. President Donald Trump came out with positive news that “Democrats have called and want to get together.” This statement recently boosted hopes of the further stimulus package expired during the last week after policymakers canceled negotiations. However, this move is seen as a major factor that turned risk sentiment positive. Apart from this, U.S. President Donald Trump fulfilled his promise to take executive action as the U.S. Congress failed to offer any outcome over its latest stimulus measures. As a result, U.S. President Trump’s signed four executive orders to release unemployment claim benefits, help with student loans, and aid for those living in a rented house, which also exerted a positive impact on the market trading sentiment and contributed to the gold losses. 

In the meantime, the risk-on market was further bolstered by upbeat China’s CPI, PPI for July data. At the data front, the China July CPI +2.7% YoY (Reuters poll +2.6%). China July PPI -2.4% YoY (Reuters poll -2.5%).

On the negative side, the gloomy updates concerning the US-China tension and the coronavirus (COVID-19) kept challenging the risk-on market sentiment and traders cautious. At the US-China front, the long-lasting tussle between the two biggest economies continued to worsen day by day as Trump banned U.S. firms from doing any business with TikTok, WeChat, or the applications’ Chinese owners in the wake of national security threat. 

The tension between both parties was further bolstered after the U.S. imposed sanctions on senior Hong Kong and Chinese officials, including Hong Kong’s Chief Executive Carrie Lam, during last week. In the meantime, the White House National Security Adviser Robert O’Brien blamed China while saying that the “Chinese hackers have been targeting U.S. election infrastructure ahead of the 2020 presidential election.”

Also challenging the risk-on market sentiment was the COVID-19 crisis. As per the latest report, the U.S. crossed the grim milestone of five million COVID-19 cases as of August 10, according to Johns Hopkins University.

Whereas Australia’s 2nd-most populous state, the pandemic epicenter, Victoria, reported the biggest single-day rise in deaths. As per the latest figures, Australia’s coronavirus death losses crossed 314 as Victoria announces a daily record of 19 deaths and 322 new cases in the past 24 hours. Friday’s better-than-expected U.S. payrolls report also supported the risk-on market sentiments report. At the data front, the Non-farm payrolls increased by 1.763 million in July, against the predicted 1.6 million increase. In the meantime, the unemployment rate also dropped to 10.2% in July, vs. June’s reading of 10.5%.

Despite this, the broad-based U.S. dollar failed to stop its losses. It took the further offer on the day as the United States still facing virus woes. It struggled to control a spike in coronavirus cases, which fueled fears that U.S. economic recovery from COVID-19 has diminished. As well as, the risk-on market sentiment also weighed on the American currency. However, the losses in the U.S. dollar helped the gold prices to stay higher 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 dropped by 0.11% to 93.308 by 10:16 PM ET (3:16 AM GMT).

Due to mixed headlines, the S&P 500 Futures failed to offer any clear direction while stocks in Australia and New Zealand stayed moderately positive. Moreover, the U.S. 10-year Treasury yields avoid moving as Japanese traders enjoy holiday due to Mountain Day.


Daily Support and Resistance

Support Pivot Resistance
2019.8600 2027.4300 2035.9600
2011.3300 2043.5300
2003.7600 2052.0600

Gold is trading at 2034 level, and it has settled a Doji candle over the 2023 support zone. At the same time, resistance lingers at the 2036 level. Over this, gold prices can rise towards 2063 level, and bearish breakout of 2023 level can directly sell unto the 1998 level. We managed to close 29.6 green pips during the Asian session today, but the second signal later ended up in loss. Let’s wait for more signals later today. Good luck! 

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Forex Market Analysis

Daily F.X. Analysis, August 10 – Top Trade Setups In Forex – Market Prices In NFP Outcome! 

On the news front, eyes will be on the low impact events such as Sentix Investor Confidence from Eurozone and JOLTS Job Openings from the U.S. Besides, the stronger NFP data may keep dollar bullish.

On the news front, eyes will be on the low impact events such as Sentix Investor Confidence from Eurozone and JOLTS Job Openings from the U.S. Besides, the stronger NFP data may keep dollar bullish.

On the news front, eyes will be on the low impact events such as Sentix Investor Confidence from Eurozone and JOLTS Job Openings from the U.S. Besides, the stronger NFP data may keep dollar bullish.

Economic Events to Watch Today  

 

 

EUR/USD – Daily Analysis

The EUR/USD prices were closed at 1.17849 after placing a high of 1.18829 and a low of 1.17550. Overall the movement of the EUR/USD pair remained bearish throughout the day. The EUR/USD pair broke under the 1.1800 level and reached 1.175 the lowest in 3 days after the U.S. dollar took its pace and outperformed in the market. The greenback rebounded from its two years low and trimmed its weekly losses on Friday that weighed on EUR/USD pair.

The rising tensions between the U.S. & China have already driven the U.S. dollar higher, and the U.S. jobs data on Friday added further strength to it. The latest development in the US-China conflict was the U.S. imposed sanctions on officials in Hong Kong and China, including Hong Kong leader Carrie Lam, over the suspension of protests in the territory.

On the data front, at 11:00 GMT, the German Industrial Production for June increased to 8.9% from the forecasted 8.3% and supported Euro. The German Trade Balance also came in positive as 14.5 B against the expected 10.3 B. At 11:45 GMT, the French Industrial Production for June increased to 12.7% against the forecasted 8.6% and supported Euro. The French Prelim Private Payrolls for the quarter came in as -0.6% against the anticipated -1.0%.

The French Trade Balance for June came in negative as 8.0B against the projected -7.1B and weighed on Euro. The Italian trade Balance at 13:00 GMT came in line with the expectations of 6.23 B.

Investors failed to cheer the positive data from Europe as the U.S. dollar was stronger on Friday, and the sharp decline in Turkish Lira over the past week exerted downside pressure on Euro.

A sharp selloff triggered the Euro’s correction in Turkish Lira that dropped it to the lowest of 2 years, the historic currency crisis of August 2018. The reserves of Central Banks of Turkey (CBRT) went negative for a couple of weeks, which caused a surge in the Turkish Lira’s selloff. However, last month, CBRT made a massive purchase of gold and overtook Russia as the world’s largest gold purchaser. In the lira currency crisis of 2018, Euro underperformed during that time period, and this has raised fears that if the history repeated, then downside risks for Euro can be seen.

However, on the U.S. front, at 17:30 GMT, the Average Hourly Earnings for June increased to 0.2% from the forecasted -0.5% and supported the U.S. dollar. The Non-Farm Employment Change suggested that 1.8M jobs were created in June against the expectations of 1.6B and supported the U.S. dollar. In the month of June, the Unemployment Rate also fell to 10.2% from the expected 10.5% and weighed on the U.S. dollar. The strong U.S. dollar weighed heavily on EUR/USD pair and dragged its prices to the level below 1.8000 on Friday.


Daily Technical Levels

Support Pivot Resistance
1.1773 1.1783 1.1792
1.1764 1.1802
1.1754 1.1812

EUR/USD– Trading Tip

The EUR/USD pair retraced lower to trade at 1.1793 level. On the upside, the EUR/USD may encounter resistance at 1.1865 and 1.1909 mark. A bullish breakout at this level can extend the buying trend to 1.2050. Today, the EUR/USD is likely to find support at 1.17650 level, and below this, further selling can be seen until the 1.1713 level. Let’s keep a focus on 1.1805 level to stay bearish below this in the EUR/USD pair.

GBP/USD – Daily Analysis

The GBP/USD pair was closed at 1.30521 after placing a high of 1.31492 and a low of 1.30092. Overall the movement of GBP/USD pair remained Bearish throughout the day.

The Pound to U.S. dollar exchange rate fell by -0.3% on Friday to a low of 1.3000. The Sterling fell against the U.S. dollar after the concerning comments from the UK Chancellor Rishi Sunak, who warned that the extended furlough scheme would only give false hopes to the people. Mr. Sunak said that it was wrong to trap the people in a situation and pretended that there was always a job that they can go back to.

However, apart from this downbeat comment, Mr. Sunak also raised hopes for a possible Brexit deal and said that he was confident that there was a possibility to get an agreement with the E.U. by September. As in result, GBP investors became hopeful that there was possible progress in the EU-UK trade talks.

On the data front, the Halifax House Price Index for July rose from 0% to 1.6% and beat the expectations of 0.2%. However, the GBP investors failed to cheer the U.K.’s positive data as the U.S. dollar was strong across the board on Friday.

The U.S. dollar gained traction on the board on Friday after the release of better than expected U.S. jobs data. The latest US Non-Farm Employment Change suggested an increase in the number of jobs created in June by the U.S. Department of Labor & Statistics to 1.8M from the expected 1.5M and helped the U.S. dollar gain traction.

The Average Hourly Earnings from the U.S. also rose to 0.2% from the previous -1.3% and the expected -0.5% and supported the U.S. dollar. The Unemployment Rate for June dropped to 10.2% against the expected 10.5% and May’s 11.1%. The less unemployment rate from the U.S. showed that the U.S. economy was moving on the recovery side even after the widespread coronavirus cases across the country.

The better than expected U.S. jobs data weighed heavily on GBP/USD pair and dragged it to 1.3000 level on Friday. The Sterling traders will be looking ahead to Monday’s release of the latest Retail Sales figures from the U.K. Any improvement in the U.K.’s retail sector would provide strength to Sterling.

The U.S. Dollar Investors will be looking at the publication of the US NFIB business optimism index for July. The demand for safe-have greenback can be lifted after any improvement in the outlook for the American economy. On Tuesday, the release of the U.K.’s ILO unemployment rate report for June. If the figures came in equal to 3.9% or less, we could see the GBP/USD pair go on the upward as fears of high unemployment will be diminished.

Daily Technical Levels


Support Pivot Resistance
1.3037 1.3052 1.3065
1.3024 1.3080
1.3010 1.3093

GBP/USD– Trading Tip

The GBP/USD consolidates at 1.3067 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 in order 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 pair was closed at 105.912 after placing a high of 106.055 and a low of 105.478. Overall the movement of the USD/JPY pair remained bullish throughout the day. After falling for two consecutive days and staying flat for a day, USD/JPY pair rose and posted gains on Friday amid strong U.S. dollar comeback.

Since two years after U.S. President Donald Trump decided to ban U.S. transactions with two popular Chinese apps, the U.S. dollar rebounded from the lowest level. During the occasions of massive conflicts between the U.S. & China, the U.S. dollar has often preferred as a refuge, and on Friday, the U.S. dollar again used this status.

The U.S. President Donald Trump officially banned American companies from working with TikTok, the video streaming app, and WeChat, the social messaging app. the action to ban these companies was taken in response to the widespread fears of data privacy. However, the chances that the US-China conflict will rise further increased after this move, and hence, the U.S. dollar gained.

Meanwhile, the U.S. Treasury imposed sanctions on 10 top officials from Hong Kong and China, including the Hong Kong Leader Carrie Lam, as the protests arose in the territory against the new security law in Hong Kong.

Furthermore, the U.S.’s macroeconomic data also remained supportive of the U.S. dollar when it came to better than expectations on Friday. 

At 17:30 GMT, the highlighted Average Hourly Earnings rose to 0.2% in June from the negative expectations of -0.5% and supported the U.S. dollar. The Non-Farm Employment Change rose to 1763K from the forecasted 1530K and came in favor of the U.S. dollar. The greenback was also supported after the Unemployment rate for June also dropped to 10.2% from the expected 10.5%. In June, the better-than-expected U.S. jobs data gave a push to the U.S. dollar that added further strength to USD/JPY pair on Friday.

However, the gains remained limited as the data from Japan was also supportive of its local currency. At 04:30 GMT< the Average Cash Earnings for the year from Japan came in as -1.7% against the forecasted -3.0% and supported the Japanese Yen. The Household Spending for the year from Japan also came in as -1.2% against the expectations of -7.8% and supported the Japanese Yen. However, the Leading Indicators from Japan were released at 10:00 GMT, came in line with the expectations of 85.0%.

The positive data from Japan supported Japanese Yen on Friday that kept a check on USD/JPY pair gains. On the vaccine front, the risk sentiment was supported by the news that Russia was all set to register the world’s first COVID-19 vaccine next week. The Russian vaccine third phase trials were currently in progress, and Russia announced to disclose them on August 12. This vaccine was developed by the collaboration of the Russian Defence Ministry and the Gamaleya Research Institute.

The improvement in risk sentiment weighed on safe-haven Japanese Yen and contributed to the USD/JPY pair’s gains.

Daily Technical Levels

Support Pivot Resistance
105.8200 105.8900 105.9300
105.7800 106.0000
105.7200 106.0400

USD/JPY – Trading Tips

The USD/JPY continues to trade at 105.780 area with the bullish sentiment, especially after testing the 38.2% Fibonacci support level of 105.650. On the lower side, the USD/JPY may find support at 105.600 and 105.078 level, which is extended by the 38.2% and 61.8% Fibonacci retracement level. A bullish breakout of 106.467 resistance level can drive more buying until the next resistance area f 107.198. The current market price of USDJPY is staying over 50 EMA, which extends support and may push the pair higher. Let’s consider buying above 105.600 level today. Good luck! 

Categories
Forex Signals

EUR/USD Crosses Below 50 EMA – An Update on Signal

Entry Price – Sell 1.17873

Entry Price – Sell 1.17873

The EUR/USD has drawn back a bit through the trading session on Friday, as the Nonfarm Payroll number is released in favor of the U.S. dollar. The report was hardly expected, so it should not be a tremendous shock to see that the market has jumped somewhat to make it a less than an impulsive trading session. If we break down beneath the 1.18 level at this point, we could probably go to the 1.17 level following that. That is a range that would be even more supportive.

The U.S. dollar will proceed to suffer at the instructions of the Federal Reserve. Consequently, it offers quite a bit of insight that we proceed to go soaring. After all, the Federal Reserve in its loosened monetary policy is terrible for the U.S. dollar price, and we notice U.S. dollar vulnerability across-the-board. That does not certainly suggest that it has to occur in one day; however, we will more than probably gain loads of buyers on dips provided enough time.

The U.S. dollar is gaining bullish momentum amid stronger than expected U.S. dollar data. The growth in the U.S. labor market has slowed considerably in July amid a resurgence in the latest COVID-19 viruses, proposing the clearest sign yet that the economy’s improvement from the slowdown produced by the pandemic was floundering. Nonfarm payrolls grew by 1.763 million jobs last month following a record 4.791 million in June, the Labor Department announced on Friday. Economists surveyed by Reuters had projected 1.6 million jobs were computed in July. The unemployment rate dropped to 10.2% from 11.1% in June. Hence, the EUR/USD is taking a bearish turn.


Although we have closed a trade already in profit amid odds of reversal, check out our quick trade plan. But the second we get bullish correction until 1.1775 or 1.1795 level. On the lower side, the target is pretty much likely to be found around the 1.1700 level.

Entry Price – Sell 1.17873
Stop Loss – 1.18273
Take Profit – 1.17473
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 Braces for Bearish Correction – Quick Signal Update!

Entry Price – Sell 2059.13

Entry Price – Sell 2059.13

On Friday, the precious metal gold record-breaking bullish rally paused amid increased demand for the U.S. dollar ahead of the U.S. NFP data.
Gold continues to gain support amid US-China on-going war, the relationship between the world’s two largest economies (US-China) getting sourer further, as America passed the plan to ban the Chinese video app TikTok in the wake of security threats. As per the Trump keywords, “We must take aggressive action against the owners of TikTok to protect our national security”. In return, China’s Foreign Ministry recently threatened that it would firmly opposed to U.S. actions. This intensifying tussle continues to weigh on the market trading sentiment and underpinning the safe-haven assets.

Apart from this, the fears of rising COVID-19 cases in the U.S., Australia, Japan, and some of the notable Asian nations like India continually fueling worries that the economic recovery could be halted underpinned demand for the Japanese yen and capped further upside in the currency pair. However, these fears were further boosted by the Federal Reserve’s recent comments that the second wave of the virus was slowing the economic recovery in the world’s biggest economy.

However, the on-going political impasse over the shape and size of the next U.S. fiscal recovery package also played its role in declining equity markets. It is worth reporting that the American lawmakers failed to provide any details of the much-awaited coronavirus (COVID-19) phase 4 aid package and failed to help unemployed people over the jobless claims. As a result, the U.S. Senate Democratic Leader Chuck Schumer recently cleary said that both parties are still far from reaching any agreement over the much-awaited phase 4 fiscal stimulus. In the meantime, the Senate’s Republican leader, Mitch McConnell, urged policymakers towards attending discussions for the aid bill during the generally observed August vacation.

As in result, the broad-based U.S. dollar succeeded in stopping its early-day losses and took the safe-haven bids on the day amid market risk-off sentiment. However, the gains in the U.S. dollar could be short-lived or temporary due to the fears that the global economic recovery could be halt because of the second wave of coronavirus cases. However, the gains in the U.S. dollar kept the currency higher. Whereas, the U.S. Dollar Index that tracks the greenback against a basket of other currencies recovered to 92.972.


It will be an occupied day for the yellow metal gold as traders anticipate the U.S. labor market figures, particularly, the NFP expected and coming out through the U.S. session. Gold is encountering resistance at the 2073 mark along with support at 2047. It has recently broken the upward trendline support level of 2065, which may work as a resistance for now. But the bearish bias seems to dominate right now. Let’s keep an eye on 2054 as a violation of this may trigger more selling until 2037 and 2018 marks today.

Entry Price – Sell 2059.13
Stop Loss – 2065.13
Take Profit – 2053.13
Risk to Reward – 1:1
Profit & Loss Per Standard Lot = -$600/ +$600
Profit & Loss Per Micro Lot = -$60/ +$60

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

iPhone Users: https://apps.apple.com/es/app/fasignals/id1521281368
Andriod Users: https://play.google.com/store/apps/details?id=academy.forex.thesignal&hl=en_US

Categories
Forex Market Analysis

Daily F.X. Analysis, August 07 – Top Trade Setups In Forex – Big Day, NFP is Here! 

The Non-farm payrolls will extend clarity over the damage in the labor market last month, and traders will keenly await its release. Overall, economists expect a slight improvement in the U.S. unemployment rate from 11.1% to 10.5%, while the Average Hourly Earnings are expected to improve from -1.2% to -0.5%%. The NFP itself is expected to report 1530K (negative for a dollar) vs. 4800K figures beforehand.

The Non-farm payrolls will extend clarity over the damage in the labor market last month, and traders will keenly await its release. Overall, economists expect a slight improvement in the U.S. unemployment rate from 11.1% to 10.5%, while the Average Hourly Earnings are expected to improve from -1.2% to -0.5%%. The NFP itself is expected to report 1530K (negative for a dollar) vs. 4800K figures beforehand.

The Non-farm payrolls will extend clarity over the damage in the labor market last month, and traders will keenly await its release. Overall, economists expect a slight improvement in the U.S. unemployment rate from 11.1% to 10.5%, while the Average Hourly Earnings are expected to improve from -1.2% to -0.5%%. The NFP itself is expected to report 1530K (negative for a dollar) vs. 4800K figures beforehand.

Economic Events to Watch Today  

 

 

EUR/USD – Daily Analysis

The EUR/USD closed at 1.18640 after placing a high of 1.19048 and a low of 1.17927. The EUR/USD once again saw a bullish movement after a brief U.S. dollar recovery attempt earlier this week. Despite worsened coronavirus cases in some Eurozone nations, the bloc’s outlook remained much more optimistic than the U.S. outlook.

While the advances in the Euro have slowed, the EUR/USD pair has continued to trend higher over the past week. EUR/USD pair climbed slightly from 1.1656 to 1.1778 last week. After U.S. Dollar attempted to recover, the pair EUR/USD saw a brief dip at the beginning of this week. However, the EUR/USD pair is eventually rising again as the U.S. dollar’s weakness persists. Whereas, the potential for advances in the currency pair was limited as coronavirus concerns rose on Sunday. The Euro remained broadly appealing overall. Throughout the coronavirus pandemic, the E.U. and the European Central Bank have handled the crisis well compared to other major economies like the U.K. & U.S.

As a result, Euro’s losses in response to a rebounding U.S. dollar have been limited. The Euro and U.S. dollar has a negative correlation, and the Euro often gains from the U.S. dollar weakness. It means that the rally of the EUR/USD pair is set to continue even a rise in worsening coronavirus cases’ concerns.

The Euro appeal was also down after Spain saw a surge in coronavirus cases, and speculations arose that the Eurozone could face fresh lockdowns in Spain to support the Eurozone economy. On the U.S. dollar front, the greenback attempted recovery earlier this week; however, the gloomy outlook persisted and kept investors from mounting much of a recovery rally in the currency.

The number of coronavirus cases in the United States has increased to its highest, and the U.S. government and Federal Reserve have only taken mixed action to limit the virus spread and protect the U.S. economy. Attempts to push further stimulus have been stuck in U.S. Congress, and Federal Reserve may become more dovish.

On the data front, at 12:15 GMT, the Spanish Services PMI fell short of expectations of 52.3 and came in as 51.9. The Italian Services PMI for July came in as 51.6 against the expectations of 51.6 and supported Euro.

At 12:50 GMT, the French Final Services PMI for July dropped to 57.3 against the expected 57.8 and weighed on Euro. At 12: 55 GMT, the German Final Services PMI dropped to 55.6 against the forecasted 56.7. The Final Services PMI for the whole bloc fell to 54.7against the forecasted 55.1and weighed on EURO.

Later today, eyes will remain on the Non-farm payrolls will extend clarity over the damage in the job market last month, and traders will eagerly await its release. Overall, economists expect a slight improvement in the U.S. unemployment rate from 11.1% to 10.5%, while the Average Hourly Earnings are expected to improve from -1.2% to -0.5%%. The NFP itself is expected to report 1530K (negative for a dollar) vs. 4800K figures beforehand.

Daily Technical Levels

Support Pivot Resistance
1.1802 1.1854 1.1915
1.1740 1.1968
1.1688 1.2029

EUR/USD– Trading Tip

The EUR/USD pair retraced lower to complete 38.2% Fibonacci retracement at 1.1817 level. On the higher side, the EUR/USD pair may find resistance at 1.1909 level, and the closing of candles below this level can keep bearish pressure on EUR/USD. A bullish breakout of this level can extend the buying trend until 1.2050. Today, the EUR/USD is likely to find support at 1.1800 level. Let’s keep an eye on NFP as it may drive sharp price action in the EUR/USD pair.

GBP/USD – Daily Analysis

The GBP/USD closed at 1.31133 after placing a high of 1.31614 and a low of 1.30528. The pound rose on Wednesday to remain on course for a third-straight weekly gain against the U.S. dollar and ignored weaker than expected economic data ahead of the Bank of England meeting on Thursday. Previously, the Final Services PMI in July came in as expected 56.5 points and indicated expansion in the services sector in the U.K.

This Thursday, the focus will be on the Bank of England’s monetary policy decision and Andrew bailey’s speech. England’s central bank is anticipated to keep interest rates unchanged but will roll out its forecasts on a range of economic measures, including Inflation, GDP, and unemployment. In recent weeks, debates have been under discussion about the BoE’s cutting of rates below zero, but Thursday’s meeting is unlikely to offer detailed insight.

The NIRP (Negative Interest Rate Policy) has been under active review at the Bank of England, but it seems like a little too early for the central bank to make any decisive move. Some analysts expect that the Bank of England will prefer to use a negative interest rate until the EU-UK relationship for 2021 gets cleared.

On the U.S. front, the ADP Non-Farm Employment Change dropped to 167K from the expected 1200K in July. It means that the U.S. government introduced 167K jobs only while that weighed on the U.S. dollar and added strength to the GBP/USD pair gains.

However, in July, the Final Services PMI rose to 50.0 from expected 49.6, and the ISM Non-Manufacturing PMI rose to 58.1 from expected 55.0. This showed an expansion in America’s services sector in July and supported the U.S. dollar that weighted on additional gains in GBP/USD pair.

Another reason for the rise in GBP/USD pair was the weakness of the U.S. dollar. The ever increasing numbers of coronavirus cases dampened the prospects for a swift economic recovery in the U.S. and forced investors to continue dumping the greenback. This, coupled with the delay in the U.S. fiscal stimulus package’s announcement and further pressurized the U.S. dollar.

The U.S. dollar was so under pressure that even the goodish rebound in the U.S. Treasury bond yields failed to support the U.S. dollar.

Apart from this, the rising number of coronavirus cases in the U.K. and the renewed fears of no-deal Brexit, as both sides were lagging in securing a deal, held investors to place any aggressive bullish position in the GBP/USD pair ahead of BoE monetary policy.

Daily Technical Levels

Support Pivot Resistance
1.3060 1.3111 1.3166
1.3005 1.3217
1.2954 1.3271

GBP/USD– Trading Tip

The GBP/USD consolidates at 1.3127 level, holding right above the double bottom support area of 1.3103 level while the bearish breakout of 1.3105 level can extend selling unto 1.3058 level. Recently as we can see in the chart above, the GBPUSD pair has violated the upward trendline, which supported the pair around 1.3130 level. At the same level, the 50 EMA was extending support, but the GBP/USD showed a bearish crossover, suggesting further odds of selling in the Cable. On the higher side, Sterling may find resistance at 1.3176. Let’s consider selling below 1.3105 level today. 

USD/JPY – Daily Analysis

A day before, the USD/JPY closed at 105.592 after placing a high of 105.871 and a low of 105.318. Overall the movement of the USD/JPY pair remained bearish throughout the day. The USD/JPY pair extended the decay on the back of the weaker U.S. dollar across the board and bank of Japan governor Kuroda’s speech telling that Japan’s economy will improve in the second half of the year.

The Bank of Japan Governor Haruhiko Kuroda warned that in order to contain the spread of public health measures were re-introduced, then the economic activity could be significantly constrained. He also affirmed that Japan was not slipping into deflation and that the central bank would continue with its efforts to achieve the inflation target of 2%. Kuroda again assured that the Bank of Japan would be ready to ramp up the monetary stimulus without hesitation if needed to aid the economy through the pandemic crisis.

Kuroda also said that Japan’s financial system was quite safe and stable and countered the fears that the banking sector would fall out from COVID-19. He also warned that there would be risks to Japan’s financial stability if pandemic prolonged longer than expected.

He said that Japanese and overseas economies would gradually improve from the second half of this year despite extremely high uncertainties. However, the pace of growth is expected to be moderate as the preventive measures to control the virus spread has its effects on economic activity.

On the other hand, the greenback was the worst performer in the currency market. It was so under pressure that it could not benefit from the latest round of economic data that showed an improvement in the Service Sector of the U.S. The rebound in the U.S. Treasury yield also could not support the U.S. dollar. The U.S. Dollar Index (DXY) was testing the 92.60 level lowest since last week.

On the data front, the ADP Non-Farm Employment Change showed that the U.S. created 167,000 jobs in July against the estimated 1200K. This weighed on the U.S. dollar and added further in the losses of the USD/JPY pair.

The Trade Balance from the U.S. fell in line with the expectations of -50.7B. The Final Services PMI rose to 50.0 points in July than the expectations of 49.6 and supported the U.S. dollar. At the same time, the ISM Non-Manufacturing PMI also rose to 58.1 points from the forecasted 55.0 and came in favor of the U.S. dollar.

However, USD bulls did not cheer the positive data, and the U.S. dollar remained under stress to post losses on the day. On the US-China front, China’s ambassador to Washington said that China did not want to see a Cold War break out between China and the U.S. He suggested that both countries need to work to repair their relations that were under extraordinary stress.

Daily Technical Levels

Support Pivot Resistance
105.3100 105.6000 105.8800
105.0300 106.1700
104.7400 106.4500

USD/JPY – Trading Tips

Technically, the USD/JPY hasn’t changed much as USD/JPY continues to consolidate at 105.680 with bearish sentiment, especially after violating the 38.2% Fibonacci support level of 105.650. On the lower side, the USD/JPY may find support at 105.078 level, which is extended by the 61.8% Fibonacci retracement level. A bearish breakout of 61.8% level can drive more selling until the next support area f 104.200. The current market price of USDJPY is staying below 50 EMA, which extends resistance at 105.650 level. Let’s consider selling below 105.650 level today. Good luck! 

Categories
Forex Market Analysis

Daily F.X. Analysis, August 06 – Top Trade Setups In Forex – A Day Before NFP! 

It’s going to be a busy day from a news perspective, especially for the GBP pairs. The Bank of England is scheduled to publish its Monetary policy with bank rates. Although economists are not expecting BOE to change interest rates, the MPC Asset Purchase Facility Votes is expected to change. Nine out of nine members have voted to increase the asset purchase program to accommodate the economy.

It’s going to be a busy day from a news perspective, especially for the GBP pairs. The Bank of England is scheduled to publish its Monetary policy with bank rates. Although economists are not expecting BOE to change interest rates, the MPC Asset Purchase Facility Votes is expected to change. Nine out of nine members have voted to increase the asset purchase program to accommodate the economy.

It’s going to be a busy day from a news perspective, especially for the GBP pairs. The Bank of England is scheduled to publish its Monetary policy with bank rates. Although economists are not expecting BOE to change interest rates, the MPC Asset Purchase Facility Votes is expected to change. Nine out of nine members have voted to increase the asset purchase program to accommodate the economy.

Economic Events to Watch Today  

     

 

EUR/USD – Daily Analysis

The EUR/USD closed at 1.18640 after placing a high of 1.19048 and a low of 1.17927. The EUR/USD once again saw a bullish movement after a brief U.S. dollar recovery attempt earlier this week. Despite worsened coronavirus cases in some Eurozone nations, the bloc’s outlook remained much more optimistic than the U.S. outlook.

While the advances in the Euro have slowed, the EUR/USD pair has continued to trend higher over the past week. EUR/USD pair climbed slightly from 1.1656 to 1.1778 last week. After U.S. Dollar attempted to recover, the pair EUR/USD saw a brief dip at the beginning of this week. However, the EUR/USD pair is eventually rising again as the U.S. dollar’s weakness persists. Whereas, the potential for advances in the currency pair was limited as coronavirus concerns rose on Sunday.

The Euro remained broadly appealing overall. Throughout the coronavirus pandemic, the E.U. and the European Central Bank have handled the crisis well compared to other major economies like the U.K. & U.S.

As a result, Euro’s losses in response to a rebounding U.S. dollar have been limited. The Euro and U.S. dollar has a negative correlation, and the Euro often gains from the U.S. dollar weakness. It means that the rally of the EUR/USD pair is set to continue even a rise in worsening coronavirus cases’ concerns.

The Euro appeal was also down after Spain saw a surge in coronavirus cases, and speculations arose that the Eurozone could face fresh lockdowns in Spain to support the Eurozone economy. On the U.S. dollar front, the greenback attempted recovery earlier this week; however, the gloomy outlook persisted and kept investors from mounting much of a recovery rally in the currency.

The number of coronavirus cases in the United States has increased to its highest, and the U.S. government and Federal Reserve have only taken mixed action to limit the virus spread and protect the U.S. economy. Attempts to push further stimulus have been stuck in U.S. Congress, and Federal Reserve may become more dovish.

On the data front, at 12:15 GMT, the Spanish Services PMI fell short of expectations of 52.3 and came in as 51.9. The Italian Services PMI for July came in as 51.6 against the expectations of 51.6 and supported Euro.

At 12:50 GMT, the French Final Services PMI for July dropped to 57.3 against the expected 57.8 and weighed on Euro. At 12: 55 GMT, the German Final Services PMI dropped to 55.6 against the forecasted 56.7. The Final Services PMI for the whole bloc fell to 54.7against the forecasted 55.1and weighed on EURO.

From US Side, the ISM Non-Manufacturing PMI rose in July to 58.1 from the expected 55.0 and supported the U.S. dollar. Though the data was against the movement of EUR/USD pair, however, pair still moved in the upward direction.

Daily Technical Levels

Support Pivot Resistance
1.1802 1.1854 1.1915
1.1740 1.1968
1.1688 1.2029

EUR/USD– Trading Tip

The technical side of the EUR/USD remains mostly the same as it’s trading with a bullish bias around 1.1880 level. On the higher side, the EUR/USD pair may find resistance at 1.1909 level, and the closing of candles below this level can keep bearish pressure on EUR/USD. A bullish breakout of this level can extend the buying trend until 1.2050. Today, the EUR/USD is likely to find support at 1.1800 level.

GBP/USD – Daily Analysis

The GBP/USD closed at 1.31133 after placing a high of 1.31614 and a low of 1.30528. The pound rose on Wednesday to remain on course for a third-straight weekly gain against the U.S. dollar and ignored weaker than expected economic data ahead of the Bank of England meeting on Thursday. On Wednesday, the Final Services PMI in July came in as expected 56.5 points and indicated expansion in the services sector in the U.K.

This Thursday, the focus will be on the Bank of England’s monetary policy decision and Andrew bailey’s speech. The central bank of England is anticipated to keep interest rates unchanged but will roll out its forecasts on a range of economic measures, including Inflation, GDP, and unemployment. In recent weeks, debates have been under discussion about the BoE’s cutting of rates below zero, but Thursday’s meeting is unlikely to offer detailed insight.

The NIRP (Negative Interest Rate Policy) has been under active review at the Bank of England, but it seems like a little too early for the central bank to make any decisive move. Some analysts expect that the Bank of England will prefer to hold off on using a negative interest rate until the EU-UK relationship for 2021 gets cleared.

On the U.S. front, the ADP Non-Farm Employment Change dropped to 167K from the expected 1200K in July. It means that the U.S. government introduced 167K jobs only while that weighed on the U.S. dollar and added strength to the GBP/USD pair gains.

However, in July, the Final Services PMI rose to 50.0 from expected 49.6, and the ISM Non-Manufacturing PMI rose to 58.1 from expected 55.0. This showed an expansion in America’s services sector in July and gave support to the U.S. dollar that weighted on additional gains in GBP/USD pair.

Another reason for the rise in GBP/USD pair was the weakness of the U.S. dollar. The ever increasing numbers of coronavirus cases dampened the prospects for a swift economic recovery in the U.S. and forced investors to continue dumping the greenback. This, coupled with the delay in the U.S. fiscal stimulus package’s announcement and further pressurized the U.S. dollar.

The U.S. dollar was so under pressure that even the goodish rebound in the U.S. Treasury bond yields failed to support the U.S. dollar.

Apart from this, the rising number of coronavirus cases in the U.K. and the renewed fears of no-deal Brexit as both sides were lagging in the progress of securing a deal, held investors to place any aggressive bullish position in the GBP/USD pair ahead of BoE monetary policy.

Daily Technical Levels

Support Pivot Resistance
1.3060 1.3111 1.3166
1.3005 1.3217
1.2954 1.3271

GBP/USD– Trading Tip

The GBP/USD is trading at 1.3085 level, holding right below the triple top resistance area of 1.3101 level while the bullish breakout of 1.3105 can drive more buying in the GBP/USD pair. On the higher side, the GBP/USD may find resistance at 1.3175, while support can be found around 1.3056 and 1.3022 level. Let’s keep an eye on 1.3125 to extract a bearish bias in the GBP/USD pair today. A bearish breakout of 1.3050 can drive more selling until 1.3005.

USD/JPY – Daily Analysis

The USD/JPY pair was closed at 105.592 after placing a high of 105.871 and a low of 105.318. Overall the movement of the USD/JPY pair remained bearish throughout the day. The USD/JPY pair extended the decline on the back of the weaker U.S. dollar across the board and bank of Japan governor Kuroda’s speech telling that Japan’s economy will improve in the second half of the year.

The Bank of Japan Governor Haruhiko Kuroda warned that in order to contain the spread of public health measures were re-introduced, then the economic activity could be significantly constrained. He also affirmed that Japan was not slipping into deflation and that the central bank would continue with its efforts to achieve the inflation target of 2%. Kuroda again assured that the Bank of Japan will be ready to ramp up the monetary stimulus without hesitation if needed to aid the economy through the pandemic crisis.

Kuroda also said that Japan’s financial system was quite safe and stable and countered the fears that the banking sector would fall out from COVID-19. He also warned that if pandemic prolonged longer than expected, there will be risks to Japan’s financial stability.

He said that Japanese and overseas economies would gradually improve from the second half of this year despite extremely high uncertainties. But the pace of improvement is likely to be moderate as the preventive measures to control the virus spread has its effects on economic activity.

On the other hand, the greenback was the worst performer in the currency market on Wednesday. It was so under pressure that it could not benefit from the latest round of economic data that showed an improvement in the Service Sector of the U.S. The rebound in the U.S. Treasury yield also could not support the U.S. dollar. The U.S. Dollar Index (DXY) was testing the 92.60 level lowest since last week.

On the data front, the ADP Non-Farm Employment Change showed that the U.S. created 167,000 jobs in July against the estimated 1200K. This weighed on the U.S. dollar and added further in the losses of the USD/JPY pair.

On Wednesday, U.S. President Donald Trump said that big jobs were coming on Friday. However, private payroll data by ADP reported on Wednesday that just 167,000 jobs were created in July.

 The Trade Balance from the U.S. fell in line with the expectations of -50.7B. The Final Services PMI rose to 50.0 points in July than the expectations of 49.6 and supported the U.S. dollar. At the same time, the ISM Non-Manufacturing PMI also rose to 58.1 points from the forecasted 55.0 and came in favor of the U.S. dollar.

However, USD bulls did not cheer the positive data, and the U.S. dollar remained under stress on Wednesday to post losses on the day.

On the US-China front, China’s ambassador to Washington said that China did not want to see a Cold War break out between China and the U.S. He suggested that both countries need to work to repair their relations that were under extraordinary stress.

Daily Technical Levels

Support Pivot Resistance
105.3100 105.6000 105.8800
105.0300 106.1700
104.7400 106.4500

USD/JPY – Trading Tips

The USD/JPY is trading with the bearish sentiment, especially after violating the 38.2% Fibonacci support level of 105.650. On the lower side, the USD/JPY may find support at 105.078 level, which is extended by the 61.8% Fibonacci retracement level. A bearish breakout of 61.8% level can drive more selling until the next support area f 104.200. The current market price of USDJPY is staying below 50 EMA, which extends resistance at 105.650 level. Let’s consider selling below 105.650 level today. Good luck! 

Categories
Forex Signals

USD/JPY Breaking Below Support Level – Update on Trading Signal!

The USD/JPY failed to extend its previous session bullish moves and witnessed some selling moves around 105.55 level mainly due to the broad-based U.S. dollar weakness. The worries triggered that the second wave of COVID-19 cases in the United States could ruin the recovery in the world’s biggest economy. Also weighing factor for the greenback was a failure over the much-awaited stimulus. The risk-on market sentiment (backed by the positive reports about the coronavirus treatment and hopes of the Sino-American trade discussion), undermined the safe-haven Japanese yen, which become the key factor that helped the currency pair to limits its deeper losses. The fresh reports about the further relief employment subsidy by the Japanese government largely ignored by the currency pair traders, at least for now. Currently, the USD/JPY currency pair is currently trading at 105.69 and consolidating in the range between 105.52 – 105.80.

The USD/JPY failed to extend its previous session bullish moves and witnessed some selling moves around 105.55 level mainly due to the broad-based U.S. dollar weakness. The worries triggered that the second wave of COVID-19 cases in the United States could ruin the recovery in the world’s biggest economy. Also weighing factor for the greenback was a failure over the much-awaited stimulus. The risk-on market sentiment (backed by the positive reports about the coronavirus treatment and hopes of the Sino-American trade discussion), undermined the safe-haven Japanese yen, which become the key factor that helped the currency pair to limits its deeper losses. The fresh reports about the further relief employment subsidy by the Japanese government largely ignored by the currency pair traders, at least for now. Currently, the USD/JPY currency pair is currently trading at 105.69 and consolidating in the range between 105.52 – 105.80.

The USD/JPY failed to extend its previous session bullish moves and witnessed some selling moves around 105.55 level mainly due to the broad-based U.S. dollar weakness. The worries triggered that the second wave of COVID-19 cases in the United States could ruin the recovery in the world’s biggest economy. Also weighing factor for the greenback was a failure over the much-awaited stimulus. The risk-on market sentiment (backed by the positive reports about the coronavirus treatment and hopes of the Sino-American trade discussion), undermined the safe-haven Japanese yen, which become the key factor that helped the currency pair to limits its deeper losses. The fresh reports about the further relief employment subsidy by the Japanese government largely ignored by the currency pair traders, at least for now. Currently, the USD/JPY currency pair is currently trading at 105.69 and consolidating in the range between 105.52 – 105.80.

Apart from virus woes, the impasse over the next round of the U.S. fiscal stimulus also exerted downside pressure on the U.S. dollar and contributed to the currency pair losses. The U.S. lawmakers are still considerably apart to agree on the deal, and the discussions became more difficult after unemployment claims benefits expired last week. Considering the uncertain situation, the House Speaker Nancy Pelosi blamed U.S. President Donald Trump for the continuous suspension on the phase 4.0 COVID-19 relief package.

The broad-based U.S. dollar edged lower on the day as the virus woes continuously destroying hopes for a quick economic recovery, witnessed by the yesterday’s downbeat U.S. job data. This, in turn, was seen as major factors that continued weighing on the greenback. However, the losses in the U.S. dollar kept the USD/JPY currency pair under pressure. Whereas, the U.S. Dollar Index that tracks the U.S. dollar against a bucket of other currencies dropped by 0.09% to 93.148 by 10 AM ET (3 AM GMT).

At the US-China front, the rising tensions between the United States and China continued to pick up the pace after the U.S. President Donald Trump banned the TikTok Chinese app in the U.S. while saying if the dragon nation wants to re-active this app in America, then the owner of this app will be American. Despite this on-going tussle, the policymakers from both sides are set for a meeting on August 15 about the trade deal, which supports the market risk sentiment and helped pair to limit its deeper losses by undermining the safe-haven Japanese yen.

However, the upbeat market was further supported by the upbeat prints of U.S. Factory Orders and the stabilization of the virus numbers from the U.S. and Australia. The latest positive updates about the coronavirus also exerted a positive impact on the trading sentiment and became the key factor that kept the lid on any further losses in the currency pair. It is worth reporting that the transfusions of blood plasma rich, with antibodies from recovered COVID-19 patients, received by hospitalized patients decreased their death rate by about 50%.

Across the Pound, the Japanese labor ministry official told that the Japanese government is thinking of extending its coronavirus relief employment subsidy to support companies badly hit by the coronavirus. By the way, this news was largely ignored by the currency pair traders.


The USD/JPY trades with a bullish sentiment around 105.950 level, having completed 61.8% Fibonacci retracement at 106.063. The pair is forming a bearish engulfing candle below 106.406 level, the level that worked as a support for USD/JPY in now it’s working as a resistance. On the higher side, next USD/JPY may find resistance at 106.650, while support stays at 105.250. The MACD and RSI both are suggesting bullish bias in USD/JPY pair today.

Entry Price – Sell 105.532
Stop Loss – 105.932
Take Profit – 105.132
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

Oversold Gold Bracing for Bearish Correction – Let’s Capture Quick Sell!

Entry Price – Sell 2036.88

Entry Price – Sell 2036.88

Entry Price – Sell 2036.88
Stop Loss – 2042.88
Take Profit – 2029.88
Risk to Reward – 1:1
Profit & Loss Per Standard Lot = -$600/ +$600
Profit & Loss Per Micro Lot = -$60/ +$60

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

iPhone Users: https://apps.apple.com/es/app/fasignals/id1521281368
Andriod Users: https://play.google.com/store/apps/details?id=academy.forex.thesignal&hl=en_US

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Forex Market Analysis

Daily F.X. Analysis, August 05 – Top Trade Setups In Forex – Advanced NFP In Focus! 

We have a series of low and medium impact events coming ahead, and the focus will be on the Eurozone’s Services PMI, U.S. Advance NFP, and U.S. ISM non-manufacturing events. The U.S. events are forecasted to be negative but positive data may drive selling trend in gold; let’s brace for it.

We have a series of low and medium impact events coming ahead, and the focus will be on the Eurozone’s Services PMI, U.S. Advance NFP, and U.S. ISM non-manufacturing events. The U.S. events are forecasted to be negative but positive data may drive selling trend in gold; let’s brace for it.

We have a series of low and medium impact events coming ahead, and the focus will be on the Eurozone’s Services PMI, U.S. Advance NFP, and U.S. ISM non-manufacturing events. The U.S. events are forecasted to be negative but positive data may drive selling trend in gold; let’s brace for it.

Economic Events to Watch Today  

    

 

EUR/USD – Daily Analysis

The EUR/USD pair was closed at 1.18024 after placing a high of 1.18057and a low of 1.17211. Overall the movement of the EUR/USD pair remained bullish throughout the day. The EUR/USD pair climbed to 1.1800 level from 1.17200 level on Tuesday after the U.S. Dollar Index fell by 0.1% to 93.45 level. However, the U.S. dollar index spent most of the day in positive territory but failed to keep its gains. The U.S. Treasury yields were lower on Tuesday, and the equity prices were high that weighed on the U.S. dollar. The 10-year U.S. Treasury bond yield was down to 0.513% level, the lowest level since March.

The weakness in the U.S. dollar was the main driver of the EUR/USD pair on Tuesday. On the data front, the IBD/TIPP Economic Optimism rose to 46.8 from the expected 45.3 and supported the U.S. dollar. The Factory Orders from June were also increased to 6.2% from the forecasted 5.1% and supported the U.S. dollar.

From the European side, the French Government Budget Balance showed a deficit of 124.9 B in June as compared to the deficit of 117.9 B in May. At 12:00 GMT, the Spanish Unemployment Change came in as -89.8K against the forecasted 19.5K and supported EUR. At 14:00 GMT, the Producer Price Index for June surged to 0.7% against the expected 0.6% and supported EUR.

The European side’s macroeconomic data came in favor of the EUR/USD pair and took its prices above the 1.1800 level. Meanwhile, on Tuesday, the U.S. Congress Senate Democratic leader Chuck Schumer said that talks with the White House were finally moving in the right direction. However, they still were far apart on some issues. The gap between the two parties was about priorities and scale. Even though the difference was also mentioned, investors cheered the news that the talks were heading in the right direction and boosted their mood.

The equity prices rose, and the U.S. dollar suffered as the issuance of new stimulus weighed on the U.S. dollar. The weakness of the U.S. dollar ad rise in equity prices gave a push to EUR/USD pair. This Wednesday, the market will release the final versions of its July Services PMI for most major economies that are mostly expected to suffer upward revisions from preliminary estimates. E.U. will also reveal Retail Sales data for June. While the U.S. will release the ADP survey on private employment for July and the Non-ISM Manufacturing PMI. Traders will keep a close watch on both releases.

Daily Technical Levels

Support Pivot Resistance
1.1707 1.1752 1.1808
1.1651 1.1853
1.1605 1.1909

EUR/USD– Trading Tip

The EUR/USD shows another round of buying to trade at 1.1810 level. A recent breakout of the 1.1800 level is likely to lead EUR/USD prices further higher until 1.1849 and 1.1910 level. However, the support may be found around 1.1795 and 1.1760 area. Bullish bias will be stronger over the 1.1820 breakouts. The RSI and MACD are holding in the bullish zone while the 50 periods EMA is also suggesting potential for a bullish trend continuation today.

GBP/USD – Daily Analysis

The GBP/USD pair was closed at 1.30701 after placing a high of 1.31079 and a low of 1.29810. Overall the movement of GBP/USD pair remained flat throughout the day. The pair GBP/USD reached a lower level of 1.2980, but it recovered from that level to settle once again around 1.3070 level in the late session. The decline and the later recovery was once again about the U.S. dollar as investors continued to ignore U.K. news and focused on USD news.

The U.S.’s macroeconomic data about factory orders in June rose to 6.2% from the anticipated 5.1% and supported the U.S. dollar that kept the GBP/USD pair under pressure.

However, the U.S. Senate Democratic leader’s latest statement that both Republicans & Democrats were moving in the right direction regarding the U.S. stimulus package weighed on the U.S. dollar. The U.S. Dollar Index dropped to 93.4 level, and the U.S. Treasury yield for a 10-year bond also dropped. Whereas, the equity prices rose that weighed further on the U.S. dollar.

On the other hand, the lack of progress in trade talks between the E.U. & the U.K. has shifted the attention to other economies. As the kingdom has started talks with the United States, that has shown little progress.

Furthermore, Toshimitsu said on Tuesday that Japan’s foreign minister would visit the U.K. this week to meet his counterpart to wrap up talks over a free-trade agreement between both countries.

However, earlier on the day, UK PM Boris Johnson announced another round of stimulus focused on the home construction and infrastructure to boost the economy. The suggested investment of around 900 million pounds out of 360 million pounds will be allocated towards delivering 26,000 new homes on brownfield land.

The demand for Sterling was also cooled down after the latest lockdown was imposed in the London area amid the resurgent coronavirus cases.

Meanwhile, considering the possible delay at the customs union’s border after leaving the E.U.’s single market, the U.K. government issued a letter in writing to pharmaceutical companies urging them to stockpile medicine for next year.

The health department advised firms to stockpile six weeks’ worth of supplies for the end of the Brexit transition period. However, the pharmaceutical industry has already warned earlier this year that COVID-19 had used up entirely some supplies.

Besides, the Boris Johnson’s government was resurrecting a plan to turn a 15 mile stretch of motorway into a contraflow system to be prepared for delays at Britain’s border with the European Union in early next year.

Moreover, China’s ambassador to the United Kingdom said that China wanted the UK to be a friend, but if the U.K. wants to make China a hostile country, then it will have to bear the consequences. This statement was followed by the move from PM Boris Johnson in which he announced plans to ban equipment purchases from the Chinese telecommunication group Huawei on espionage concerns. There was no reason for a directional move in the GBP/USD pair, and that is why the currency pair remained flat throughout the day on Tuesday.

Daily Technical Levels

Support Pivot Resistance
1.2863 1.2908 1.2978
1.2792 1.3024
1.2747 1.3094

GBP/USD– Trading Tip

The GBP/USD is trading at 1.3085 level, holding right below the triple top resistance area of 1.3101 level while the bullish breakout of 1.3105 can drive more buying in the GBP/USD pair. On the higher side, the GBP/USD may find resistance at 1.3175, while support can be found around 1.3056 and 1.3022 level. Let’s keep an eye on 1.3125 to extract a bearish bias in the GBP/USD pair today. A bearish breakout of 1.3050 can drive more selling until 1.3005.

USD/JPY – Daily Analysis

The USD/JPY pair was closed at 105.716 after placing a high of 106.193 and a low of 105.635. Overall the movement of the USD/JPY pair remained bearish throughout the day. 

The pair USD/JPY dropped on Tuesday amid the progress in a new stimulus package from the U.S. Congress. The U.S. Dollar Index was down by 0.20% on Tuesday at 93.4 level, and the U.S. treasury yield was also down to its multi-month low of 0.51%.

The U.S. Senate Democratic leader Chuck Schumer said that negotiations with the White House were finally moving in the right direction, but they still were far apart on some issues. He said that the difference between the two parties on the U.S. Stimulus package was about priorities and scale.

Investors ignored the differences part of the statement and focused more on the progress in talks part, and hence, the U.S. dollar suffered. The USD/JPY dropped below 106 level as the cost of supporting the U.S. economy through its struggles to contain the pandemic was under discussion.

At the beginning of the day, Japan published Tokyo Inflation data for July, which rose to 0.4% from the estimated 0.2% and supported the Japanese Yen. The Monetary Base from japan also rose to 9.8% from the forecasted 7.1% and supported the Japanese Yen. Japan’s stronger than expected data weighed on the USD/JPY pair and dragged it below 106 level on Tuesday.

On the US-China front, to assess China’s efforts to fulfill the promises made in the bilateral trade agreement signed in January, the U.S. & China have agreed to conduct high-level talks on August 15. The relations between the U.S. 7 China have been deteriorated because of many issues, including the coronavirus outbreak, Hong Kong, and human rights abuses in western China. The only matter for mutual concern between both countries seems to be like the trade deal and assessed in mid-August.

Moreover, Satya Nadella, the Chief Executive of Microsoft Corp., has signed an agreement to take over the U.S. operations of the TikTok app. The Microsoft Corp. and the Chinese parent company of TikTok, named ByteDance Ltd., had a deal on Tuesday that would allow Microsoft to run TikTok operations in Canada, US, Australia, and New Zealand. This agreement satisfied both companies & their shareholders and the two governments that are under bitter competition for technological clout.

On the other hand, this Wednesday, Japan will release the final July Bank Services PMI, and the Bank of Japan’s Governor Kuroda will give a speech about central banking in the coronavirus era. From the U.S., the ADP Non-Farm Employment Change and ISM Non-Manufacturing PMI will be key to watch.

Daily Technical Levels

Support Pivot Resistance
104.80 105.25 105.55
104.50 106.00
104.05 106.30

USD/JPY – Trading Tips

The USD/JPY trades with a bullish sentiment around 105.950 level, having completed 61.8% Fibonacci retracement at 106.063. The pair is forming a bearish engulfing candle below 106.406 level, the level that worked as a support for USD/JPY in now it’s working as a resistance. On the higher side, next USD/JPY may find resistance at 106.650, while support stays at 105.250. The MACD and RSI both are suggesting bullish bias in USD/JPY pair today. Let’s consider staying bullish over 105.550 level today. Good luck! 

Categories
Forex Signals

USD/CAD Fakesout Hitting Our Stop Loss – What’s Next?

During Tuesday’s early European trading session, the USD/CAD currency pair failed to stop its Asian session losing streak and dropped further below the 1.3400 level mainly due to the U.S. dollar weakness that was triggered by gloomy U.S. economic outlook and witnessed by the Job losses in the U.S. manufacturing sector. The weaker oil prices due to the continuous surge in COVID-19 cases, US-China on-going war, and OPEC Production Boosts undermined the commodity-linked currency the loonie, which helped the currency pair to limit its deeper losses. At this particular time, the USD/CAD is trading at 1.3384 and consolidating in the range between 1.3358 – 1.3405.

During Tuesday’s early European trading session, the USD/CAD currency pair failed to stop its Asian session losing streak and dropped further below the 1.3400 level mainly due to the U.S. dollar weakness that was triggered by gloomy U.S. economic outlook and witnessed by the Job losses in the U.S. manufacturing sector. The weaker oil prices due to the continuous surge in COVID-19 cases, US-China on-going war, and OPEC Production Boosts undermined the commodity-linked currency the loonie, which helped the currency pair to limit its deeper losses. At this particular time, the USD/CAD is trading at 1.3384 and consolidating in the range between 1.3358 – 1.3405.

During Tuesday’s early European trading session, the USD/CAD currency pair failed to stop its Asian session losing streak and dropped further below the 1.3400 level mainly due to the U.S. dollar weakness that was triggered by gloomy U.S. economic outlook and witnessed by the Job losses in the U.S. manufacturing sector. The weaker oil prices due to the continuous surge in COVID-19 cases, US-China on-going war, and OPEC Production Boosts undermined the commodity-linked currency the loonie, which helped the currency pair to limit its deeper losses. At this particular time, the USD/CAD is trading at 1.3384 and consolidating in the range between 1.3358 – 1.3405.

If talking about the U.S. virus condition, the United States crossed 4 million officially recorded Covid-19 cases and covered a significant part of that recorded in just the last 15 days, which eventually ruined hopes for a quick economic recovery.

Despite this, the U.S. President Donald Trump has decided to reopen the country and said in the White House press conference that the permanent lockdown was not a workable plan to fight COVID-19. He also gave hopes about the virus vaccine and said that the U.S. would have a vaccine by the end of the year. The risk-off market sentiment was faded away after this statement that leads to the losses in the USD/CAD pair.

At the USD front, the broad-based U.S. dollar failed to continue its bullish momentum that was supported by the earlier U.S. data. The U.S. dollar reported losses on the day as the United States was still fighting the coronavirus, and the economic recovery hopes were declined because of that. However, the weakness in the U.S. dollar kept the pair under pressure. Whereas, the U.S. Dollar Index that tracks the greenback against a basket of other currencies was stood at % 93.498.

At the crude oil front, the WTI crude oil prices remain around $40 levels as concerns about the continuous surge in COVID-19 cases could halt fuel demand recovery. The increase in the Organization of the Petroleum Exporting Countries (OPEC) production made by Saudi Arabia also weighed on the oil prices. However, the crude oil losses undermined the commodity-linked currency the loonie, which helped limit deeper losses in the pair. Looking forward, the market players will closely follow the virus updates and U.S. fiscal news, which will entertain market players amid a light calendar.


On the hourly timeframe, the commodity currency pair violated the support level of 1.3380 level, which worked as a triple bottom. It was supposed to lead the USD/CAD prices further lower until 1.3335 level. But unfortunately, the breakout pattern turned out to be a fakeout pattern, and the pair reversed to trade at 1.3420. Right after testing the stop loss, the USD/CAD pair reversed again, this time in our favor, but our position is already closed at SL. For now, let’s wait a bit before taking another selling trade. Good luck!

Categories
Forex Signals

USD/JPY Taking Mild Bids Despite Upbeat Tokyo CPI Data!

USD/JPY Taking Mild Bids Despite Upbeat Tokyo CPI Data!

USD/JPY Taking Mild Bids Despite Upbeat Tokyo CPI Data!

USD/JPY Taking Mild Bids Despite Upbeat Tokyo CPI Data!

The USD/JPY currency pair successfully extended its early-day mild bullish moves and took bids around the 106.00 level, mainly due to the positive Asian equities, backed by the fresh optimism about the reopening U.S. states. The upbeat data from China and Japan also added further strength to the positive market tone, which initially undermined the Japanese yen and contributed to the currency pair gains.

Besides, the broad-based U.S. dollar weakness in the wake of the gloomy U.S. economic outlook capped further upside in the currency pair. The Japanese yen was unaffected by the upbeat July month Tokyo Consumer Price Index (CPI) data across the pond. At this particular time, the USD/JPY is trading at 105.96 and consolidating in the range between 105.83 and 106.19.

At the data front, Tokyo Core CPI rose by 0.2% expected and previous with 0.4% while the CPI Energy crossed 0.5% market expectations, and 0.4% last readings and flashed 0.6% in July. Despite the upbeat data, the yen didn’t take any bid from it, possibly in the wake of U.S. President Donald Trump’s fresh optimism about economic reopening, which caused the equity market’s uptick.

Despite the rising number of cases, U.S. President Donald Trump has decided to reopen the country and said in the White House press conference that the permanent lockdown was not a workable plan to fight COVID-19. As well as, he also gave hopes about the virus vaccine while saying that “we will likely have a coronavirus vaccine far in advance of the end of the year.” This fresh optimism challenged the risk-off market sentiment. In turn, this supported the equity market, which undermined the safe-haven Japanese yen and contributed to the pair gains.

However, the market trading sentiment seemed rather unaffected by the uncertainties over the much-awaited fiscal package. The House Speaker Nancy Pelosi signaled that no deal was in sight during this week. As well as, the fresh warning by the World Health Organization (WHO) President Dr. Tedros Adhanom Ghebreyesus that “there may never be a “silver bullet” to kill the coronavirus (COVID-19)” also failed to weigh on the risk sentiment, at least for now, which gave support to the currency pair by weakening the Yen currency.

The broad-based U.S. dollar failed to maintain its early-day mild gains, supported by the earlier U.S. welcome data. The U.S. dollar reported losses on the day as the United States was still facing virus woes and struggled to control the spread of coronavirus, which eventually destroyed hopes for a quick economic recovery.

At the UK-Japan front, the Japanese Foreign Minister Motegi recently crossed wires and said in a statement on the day that he will visit the U.K. from Aug 5-7 to discuss bilateral free trade deal. This positive news gave some support to the local currency (Japanese Yen) and capped currency pair’s gains. The market players will carefully follow the virus updates and U.S. fiscal news, which will entertain market players amid a light calendar.


The USD/JPY trades with a bullish sentiment around 105.950 level, having completed 61.8% Fibonacci retracement at 106.063. The pair is forming a bearish engulfing candle below 106.406 level, which worked as a support for USD/JPY in now it’s working as a resistance. On the higher side, next USD/JPY may find resistance at 106.650, while support stays at 105.250. The MACD and RSI both are suggesting bullish bias in USD/JPY pair today. Check out a trading plan below…

Entry Price – Sell 105.906
Stop Loss – 106.306
Take Profit – 105.506
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 04 – Top Trade Setups In Forex – Profit Taking In USD Continues! 

The fundamental side of the market continues to be muted due to a lack of economic events. Therefore, we still need to keep an eye on COVID19 updates, U.S. China trade war issues, and today’s technical levels.

The fundamental side of the market continues to be muted due to a lack of economic events. Therefore, we still need to keep an eye on COVID19 updates, U.S. China trade war issues, and today’s technical levels.

The fundamental side of the market continues to be muted due to a lack of economic events. Therefore, we still need to keep an eye on COVID19 updates, U.S. China trade war issues, and today’s technical levels.

Economic Events to Watch Today  

    

 

EUR/USD – Daily Analysis

The EUR/USD pair was closed at 1.17626 after placing a high of 1.17966 and a low of 1.16956. Overall the movement of the EUR/USD pair remained flat yet bearish throughout the day. The EUR/USD exchange rate fell by -0.2% on Monday as Euro failed to gain against the U.S. dollar despite stronger than expected Eurozone Manufacturing PMI for July but did not remain there and reverted to the same level it started its day with. Investors have become more hopeful that the Eurozone’s economy could be on the road to recovery as Manufacturing PMI showed an expansion in the industry throughout Europe.

The Eurozone economy showed a positive start to the third quarter, with production growing at the fastest rate for over two years fueled by an encouraging surge in demand. The growth of new orders outperformed the production and hinted that August would see further output gains. The business confidence has also been restored due to the improvement in the order book. However, Euro traders were cautious on Monday as the number of coronavirus cases continues to grow throughout Europe. Consequently, markets became cautious that the second wave of the virus could severely compromise the bloc’s economy.

On the data front, at 12:15 GMT, the Spanish Manufacturing PMI for July exceeded the expectations of 52.6 and came in as 53.5 to support single currency Euro. At 12:45 GMT, the Italian Manufacturing PMI for July rose to 51.9 from the expected 51.3 and supported Euro. At 12:55 GMT, The French Final Manufacturing PMI also exceeded the expectations of 52.0 and rose to 52.4 and supported Euro. At 12:55 GMT, the German Final Manufacturing PMI for July was expected to release as 50.0 but came in as 51.0 and supported Euro. At 13:00 GMT, the Final Manufacturing PMI from the whole bloc also rose to 51.8 points against the forecasted 51.1 and supported single currency Euro.

All data related to PMI from main European countries came in favor of EUR/USD and pushed it to the high near 1.1770 but failed to reverse the pair’s direction as the market sentiment was against EUR/USD pair.

On the other hand, from the U.S. side, the final Manufacturing PMI came in short of expectations of 51.3 as 50.9 and weighed on the U.S. dollar. It indicated that manufacturing activity in the U.S. in July was not very impressive as it was expected.

However, at 19:00 GMT, the ISM Manufacturing PMI came in favor of the U.S. dollar when it exceeded the expectations of 53.6 and came in as 54.2. It showed that manufacturing activity in the U.S. was expanded in July. As the ISM Manufacturing PMI was the highlighted data of the day, and as it came in favor of the U.S. dollar, the U.S. dollar gained traction and caused a decline in the prices of EUR/USD pair. 

Daily Technical Levels

Support Pivot Resistance
1.1686 1.1730 1.1762
1.1654 1.1806
1.1610 1.1837

EUR/USD– Trading Tip

The EUR/USD has bounced off the previously suggested support level of 1.1708 level, and now it’s trading at 1.1765 area. On the hourly timeframe, the EUR/USD continues to form bullish candles, which suggest a slight bullish bias among investors despite profit-taking in the U.S. dollar. Now strong support stays at 1.1705. On the higher side, the EUR/USD may find support at 1.1796 level.

GBP/USD – Daily Analysis

The GBP/USD pair was closed at 1.30756 after placing a high of 1.31125 and a low of 1.30044. Overall the movement of GBP/USD pair remained flat yet slightly bearish throughout the day. The pair GBP/USD pair was dropped in the earlier session on Monday on the back of profit-taking in the U.S. dollar, but the pair reverted back to its same level in the late closing session.

On Monday, the European Union showed a willingness to compromise to rescue troubled Brexit talks by softening its demand that Britain heeds E.U. rules on state aid. Brussels said that it could go for a compromise entailing a dispute-settling mechanism on any state aid granted by the U.K. to its companies. It means Brussels will no longer oblige London to follow bloc’s own rules from the outset.

The E.U. countries have long demanded so-called “Level Playing Field” guarantees from the U.K. if it requires the free selling of goods in the bloc’s lucrative single market of 450 million people after Brexit’s transition period ends. However, PM Boris Johnson and his government have refused to be bound by E.U. state aid rules, labor laws, or environmental standards as Brexit’s essence was to let Britain decide alone on its regulations.

The other significant sticking point of the negotiations was fishing rights in sea channels between the E.U. and Britain. The bloc has previously signaled that it was willing to compromise in that field if London shifted as well from its demands. Though the negotiations have not proven fruitful yet they have brought the sides closer in some other aspects and have made the E.U. cautiously optimistic about chances for an overall deal.

Meanwhile, the U.K. Prime Minister Boris Johnson said that the trade negotiations were in good progress with Japan. However, tensions with the bloc remain the same. The fishing industry urged the government to guide as the Brexit transition period was near to end without the sector’s definitions.

On the data front, at 13:30 GMT, the Final Manufacturing PMI for July came in line with the expectations of 53.3 and showed an expansion in the manufacturing sector of the U.K. At 18: 45 GMT, the Final Manufacturing PMI for July dropped to 50.9 points from the forecasted 51.3 and weighed on the U.S. dollar. At 19:00 GMT, the ISM Manufacturing PMI in July advanced to 54.2 from the forecasted 53.6 and supported the U.S. dollar. In June, the Construction Spending also dropped by -0.7% from the projected 1.0% and weighed on the U.S. dollar. The ISM Manufacturing Prices in July rose to 53.2 against the anticipated 52.2 and supported the U.S. dollar.

The primary highlighted data ISM Manufacturing PMI came in favor of the U.S. dollar and weighed heavily on the GBP/USD pair that it started posting losses. The Pound traders will look forward to releasing the monetary policy decision by the Bank of England this week on Thursday. The bank’s statement about the negative interest rate decision and plans to help the economy through the pandemic will be observed to find fresh clues of the GBP/USD pair’s movement.

Meanwhile, the pair will follow the U.S. dollar and related events, including the ISM Non-Manufacturing PMI, that is scheduled to release on Wednesday. Apart from that, any progress in Brexit trade deal talks would also benefit/weigh the GBP/USD pair this week.

Daily Technical Levels

Support Pivot Resistance
1.2863 1.2908 1.2978
1.2792 1.3024
1.2747 1.3094

GBP/USD– Trading Tip

The GBP/USD is trading at 1.3065 level, having completed the 50% Fibonacci retracement at 1.3060 level. On the higher side, the Sterling can find resistance at 1.3105. In the daily timeframe, the Cable has formed a Doji pattern, which is followed by a solid bullish trend at 1.3100 level, and it has the potential to drive bearish bias in the pair. Let’s keep an eye on 1.3125 to extract a bearish bias in the GBP/USD pair today. A bearish breakout of 1.3050 can drive more selling until 1.3005.

USD/JPY – Daily Analysis

The USD/JPY pair was closed at 105.947 after placing a high of 106.470 and a low of 105.578. Overall the movement of the USD/JPY pair remained bullish throughout the day. The USD/JPY pair rose to its highest level since July 24 at 106.47 Monday, but it started to decline afterward and presented a hammer-like candle.

The broad-based U.S. dollar strength at the starting day of the week provided a boost to USD/JPY pair. The rising U.S. Treasury bond yields helped the greenback continue to outperform its rivals, and the U.S. Dollar Index advanced to 94.00. The U.S. Treasury bond yield gained almost 5% on the day.

On the data front, at 4:50 GMT, the Prelim GDP for the second quarter from Japan came in as -0.6% against the expected -0.7% and supported Japanese Yen. At 4:55 GMT, the Prelim GDP Price Index for the year remained flat with the expectations of 0.9%. At 5:30 GMT, the Final Manufacturing PMI from Japan rose to 45.2 points against the forecasted 42.6. Better than expected macroeconomic data from Japan gave strength to the Japanese Yen that ultimately weighed on the USD/JPY pair in the earlier session.

From the U.S. side, the ISM data at 19:00 GMT showed that the economic activity in the U.S. manufacturing sector expanded at a stronger pace than expected in July. The ISM Manufacturing PMI rose from 52.6 to 54.2 and surpassed the forecast of 53.6.

The ISM Manufacturing Prices for July also increased to 53.2 against the forecasted 52.2 and the previous 51.3 and supported the U.S. dollar. The Wards Total Vehicle Sales from the U.S. surged to 14.5M in July from the previous 13.1M and the expected 14.0M. It also supported the U.S. dollar that ultimately pushed the USD/JPY pair on the upside.

On the other hand, the U.S. lawmakers are finding it difficult to reach a consensus for the U.S. coronavirus aid package. The Republicans are in favor of $ 1 trillion, while Democrats want to offer a package worth $3 trillion. This difference of opinion has caused a delay in the announcement of the U.S. recovery package. The delayed package announcement has made investors cautious, and they are keenly waiting for it to place bets on it.

However, on coronavirus front, the worldwide cases reached 18 million so far with major cities on renewed lockdown restrictions to control the spread. It raised the safe-haven appeal that pushed the Japanese Yen and kept checking on additional gains of the pair USD/JPY.

The coronavirus expert in White House said that the U.S. was in a new phase of the outbreak with infections extraordinarily widespread in both rural & urban areas. On the vaccine front, a mass vaccination campaign from the Russian health authorities was under preparation stage against the virus, and it will start in October. The media of Russia has quoted that doctors and teachers will be the first to receive the vaccine.

In response to this, the U.S. Dr. Anthony Fauci gave critic comments and said that he hoped that Russia and China were testing the vaccine before directing them to anyone. He said that the U.S. should have a safe and effective vaccine by the end of the year. He added that there would be no vaccine so far ahead of the U.S. that the U.S. will have to depend on other countries to get the vaccine. On the US-China front, President Trump threatened to ban the TikTok app in the United States that raised the fears for a halt of a phase-one trade deal and kept the market sentiment soar.

Daily Technical Levels

Support Pivot Resistance
104.80 105.25 105.55
104.50 106.00
104.05 106.30

USD/JPY – Trading Tips

The USD/JPY trades with a bullish sentiment around 105.950 level, having completed 61.8% Fibonacci retracement at 106.063. The pair is forming a bearish engulfing candle below 106.406 level, the level that worked as a support for USD/JPY in now it’s working as a resistance. On the higher side, next USD/JPY may find resistance at 106.650, while support stays at 105.250. The MACD and RSI both are suggesting bullish bias in USD/JPY pair today. Let’s consider staying bullish over 105.550 level today. Good luck! 

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Forex Signals

Gold Breaking Below Support 1,969 – Quick Update on Trading Signal!

Entry Price – Sell 1969.87

Entry Price – Sell 1969.87

On Monday, the precious metal gold prices failed to manage its early-day sharp gains and slipped from a record high of around $1,988.02. Gold prices fell below $1,988 level to trade modestly at $1,968 level, possibly due to the broad-based U.S. dollar fresh bids in the wake of safe-haven demand. However, the gold prices took round near the record high level.

The gold early-day sharp gains could be associated with the risk-off market sentiment triggered by the geopolitical tension between the U.S. and China. As well as the lack of clarity surrounding the much-awaited U.S. fiscal package also favored the safe-haven gold. Elsewhere, the bullish bias in yellow-metal prices was further bolstered by the coronavirus (COVID-19) woes that have been greatly favoring the market’s rush to risk-safety. Moving on, the gains in the greenback could be short-lived or temporary as the coronavirus continuously increases in the U.S., which faded the hopes for quick U.S. economic recovery. At the moment, the safe-haven-metal prices are currently trading at 1,974.19 and consolidating in the range between 1,969.96 and 1,985.11.

Apart from this, the ever-increasing coronavirus (COVID-19) cases continued to weigh on the investor’s confidence about the economic recovery and kept the trading market depressed, witnessed by the fresh leg down U.S. stocks futures. The number of cases globally almost crossed 17 million, while 4.4 million confirmed cases and more than 150,000 deaths toll in the U.S. individually. Elsewhere, the Australian state of Victoria recorded 429 new coronavirus cases on the day, with 13 death recorded so far. It is worth reporting that there are currently 6,489 active coronavirus cases in Victoria. Among them, 416 are in hospital. Apart from Aussie, Tokyo reported 292 new coronavirus infections so far on the day. Considering the on-going rise of virus cases in Australia, the Victorian Premier Daniel Andrews said that he would announce further business restrictions, which would further fuel concerns over the recovery in oil demand.

Besides, the risk-off market sentiment was further bolstered by the U.S. policymakers’ inability to provide details of the fiscal plan. Although the relief measure expired on Friday, the U.S. Senate members failed to offer any information on the unemployment claims benefit. Meanwhile, the uncertainty over the much-awaited fiscal package remains on the cards, as the Democrats and Republicans are still against each other over the package’s size. The Democrats are willing to offer $3.5 trillion help, while Republicans are not supporting anything more than $1.0 trillion.


Considering the early bearish trend continuation signal in gold, we decided to take a sell trade around 1,969 level to target the 1,963 level today. On the lower side, the gold may support around $1,961 level, and violation of this level can extend the selling trend until $1,945. Check out the trade plan below…

Entry Price – Sell 1969.87
Stop Loss – 1975.87
Take Profit – 1963.87
Risk to Reward – 1:1
Profit & Loss Per Standard Lot = -$600/ +$600
Profit & Loss Per Micro Lot = -$40/ +$40

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

iPhone Users: https://apps.apple.com/es/app/fasignals/id1521281368
Andriod Users: https://play.google.com/store/apps/details?id=academy.forex.thesignal&hl=en_US

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Forex Signals

EUR/USD Dropped Below Mid-1.1800 – Combination Of Factors In Play! 

The EUR/USD currency pair had nothing to cheer on the day and dropped below the mid-1.1800 level. The E.U. digital nationalism concerns also added bearish pressure around the shared currency and contributed to the currency pair declines. Whereas, the currency pair failed to gain any strength from the upbeat Eurozone inflation data, which were released on Friday. At the moment, the EUR/USD currency pair is currently trading at 1.1755 and consolidating in the range between 1.1742 – 1.1797. However, the currency pair buyers seemed cautious to place any strong position ahead of the final German and Eurozone manufacturing PMI numbers for July, which is due on the day.

The EUR/USD currency pair had nothing to cheer on the day and dropped below the mid-1.1800 level. The E.U. digital nationalism concerns also added bearish pressure around the shared currency and contributed to the currency pair declines. Whereas, the currency pair failed to gain any strength from the upbeat Eurozone inflation data, which were released on Friday. At the moment, the EUR/USD currency pair is currently trading at 1.1755 and consolidating in the range between 1.1742 – 1.1797. However, the currency pair buyers seemed cautious to place any strong position ahead of the final German and Eurozone manufacturing PMI numbers for July, which is due on the day.

The EUR/USD currency pair had nothing to cheer on the day and dropped below the mid-1.1800 level. The E.U. digital nationalism concerns also added bearish pressure around the shared currency and contributed to the currency pair declines. Whereas, the currency pair failed to gain any strength from the upbeat Eurozone inflation data, which were released on Friday. At the moment, the EUR/USD currency pair is currently trading at 1.1755 and consolidating in the range between 1.1742 – 1.1797. However, the currency pair buyers seemed cautious to place any strong position ahead of the final German and Eurozone manufacturing PMI numbers for July, which is due on the day.

It is worth recalling that the annual Eurozone inflation figures came in at +0.4% in July, met the +0.2% expectations, and crossed +0.3% previous as per the Eurostat’s flash reading of Eurozone CPI report. In the meantime, the core figure rose to +1.2% in the reported month against +0.8% expectations and +0.8% previously. However, this positive data was unable to provide any support to the shared currency.

The losses in the currency pair were further bolstered by the concerns that the European Union’s digital protectionism will likely exacerbate Washington and Beijing, which kept the shared currency under pressure and contributed to the currency pair losses. France officials recently have taken aggressive action against U.S. tech companies for years while threatening to impose billions of euros in fines on Intel, Microsoft, Facebook, Google, Qualcomm, and Amazon. 

Apart from the EUR, the U.S. Congress failed to agree on the much-awaited extension of the unemployment claims benefits as they expired on Friday. Besides, the U.S. policymakers also could not agree over the much-awaited fiscal package to control the pandemic’s economic impacts, as Democrats and Republicans still have differences over the size of the package. This, in turn, made the S&P 500 Futures to mark 0.30% losses to 3,260. The same portrayed the market’s risk-off mood and gave extra strength to the safe-haven assets.

On the other hand, the risk-tone was further bolstered by the on-going tension between the United States and China. It is worth reporting that the U.S. President Donald Trump released notification to ban the Chinese video app TikTok in the United States. Whereas, the Secretary of State Michael Pompeo also followed President Donald Trump’s footsteps while saying that the U.S. will take action shortly on Chinese software companies that are providing data directly to the Chinese government, which caused the risk to U.S. national security. These newer to newer tensions between US-China could harm the trade deal. 

At the coronavirus front, the increasing pandemic numbers from the U.S., Australia India, and Brazil continued to exert downside pressure on the risk sentiment. As per the latest report, Australia’s Victoria has recently been given the “state of disaster” title after cases rose past-670 during the weekend. On the other hand, Tokyo reported 292 new coronavirus infections on Sunday, after cases increased by more than 400 in the past two days.

 The market players will keep their eyes on early-month activity numbers from China and the U.S. As well as, the final German and Eurozone manufacturing PMI numbers for July will be key to watch. Moreover, the USD price moves and coronavirus headlines will play a key role in determining the intraday momentum.


The EUR/USD fell sharply from 1.1908 level to test the double bottom support level of 1.1745 level. On the hourly timeframe, the EUR/USD extends to form neutral candles, which suggests indecision among investors despite a strong support level of 1.1745. On the higher side, the EUR.USD may find support at 1.1796 level. 

Entry Price – Sell 1.17262

Stop Loss – 1.17662

Take Profit – 1.16862

Risk to Reward – 1:1

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

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

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

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

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

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Forex Signals

EUR/JPY Breaks Below Support – Quick Sell Opportunity!

Entry Price – Sell 124.426

Entry Price – Sell 124.426

The EUR/JPY failed to stop its previous early-session losses and dropped to an intra-day low around 123.990 level mainly due to the modest pullback in the global equity markets backed by the concerns of ever-increasing coronavirus cases and US-China worse relations, which underpinned the safe-haven Japanese yen and capped the gains in the currency pair. The currency pair did not give any major attention to mixed Japan’s Q1 GDP data. Japan’s first quarter (Q1) GDP confirmed a 0.6% QoQ and 2.2% annualized reductions during their latest release at the data front. The data also affirms the policymakers’ downward revision to FY2020 read GDP forecasts.

Apart from this, the ever-increasing coronavirus (COVID-19) cases continued to weigh on the investor’s confidence about the economic recovery and kept the trading market depressed, witnessed by the fresh leg down in the U.S. stocks futures. As per the latest reports, the number of cases globally almost crossed 17 million, while 4.4 million confirmed cases and more than 150,000 deaths toll in the U.S. individually.

Elsewhere, the Australian state of Victoria recorded 429 new coronavirus cases on the day, with 13 death recorded so far. There are currently 6,489 active coronavirus cases in Victoria. Among them, 416 are in hospital. Apart from Aussie, Tokyo reported 292 new coronavirus infections so far on the day. Considering the on-going rise of virus cases in Australia, the Victorian Premier Daniel Andrews said that he would announce further restrictions on business, which would further fuel concerns over the recovery in oil demand. With an increased number of COVID19 cases worldwide, the Japanese yen is gaining bullish momentum amid boosted haven appeal.


With this, the EUR/JPY pair slipped below the upward trendline support level of 124.488 level. On the lower side, the EUR/JPY was expected to touch the support level of 123.845, but the pair formed a reversal candle before meeting the target. Therefore, we decided to close the sell trade to capture 35 pips in the EUR/JPY signal quickly. Brace for a new one now..

Entry Price – Sell 124.426
Stop Loss – 124.826
Take Profit – 124.026
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, August 03 – Top Trade Setups In Forex – Manufacturing PMI In Highlights

On the news front, the eyes will be on the series of low impact economic events from Europe and the U.S., but they are hardly likely to drive any major price action today. We should be focusing on the technical side of the market.

On the news front, the eyes will be on the series of low impact economic events from Europe and the U.S., but they are hardly likely to drive any major price action today. We should be focusing on the technical side of the market.

On the news front, the eyes will be on the series of low impact economic events from Europe and the U.S., but they are hardly likely to drive any major price action today. We should be focusing on the technical side of the market.

Economic Events to Watch Today  

   

 

EUR/USD – Daily Analysis

The EUR/USD pair closed at 1.17756 after placing a high of 1.19085 and a low of 1.17613. Overall the movement of the EUR/USD pair remained bearish throughout the day. The EUR/USD pair rose above 1.1900 level on Friday, highest since September 2018, after progress in a new European stimulus package. However, the upward rally was reversed after the oversold condition, and profit-taking helped the U.S. dollar recover some ground.

The Euro has enjoyed 11% jump against the U.S. dollar since ay benefiting from the U.S. currency’s weakness and Europe’s decisive joint stimulus package to combat the coronavirus. EUR/USD pair ended July with its best monthly performance in a decade.

Euro hit 1.1900 level on Friday, and on May 18, the day just before the game-changing E.U. Stimulus plan was proposed, it was traded at 1.0800 level. The gains were also because of the more successful pandemic response by the European Union than the United States.

However, on Friday’s data front, the French Consumer Spending for June increased to 9.0% from the expected 6.9% and supported the Euro. At 11:45 GMT, the French Prelim CPI for July raised to 0.4% from the projected -0.1% and supported Euro. At 12:00 GMT, the Spanish Flash GDP for the quarter came in as -18.5% against the expected -16.0%. At 13:00 GMT, The Italian Prelim GDP for the quarter came in as -12.4% against the expected -15.0%.

The CPI Flash Estimate for the year was raised to 0.4% from the expected 0.3% and supported Euro. For July, the Italian Prelim CPI dropped to -0.1% from the expected 0.1% and weighed on Euro. The Prelim Flash GDP for the whole bloc in the second quarter was dropped to -12.1%from the expected -12.0%. The Italian Retail Sales for the whole bloc rose to 12.1% against the expected 0.8% in June. Most data from the European side favored local currency, which is why the EUR/USD pair crossed the 1.1900 level. However, the pair could not remain there for long as investors started to take profits off their positions, and the pair began to decline.

On the other hand, the U.S. dollar was a little strong because its oversold condition was priced at the month-end, and traders took profits out of it. On the data front, the U.S.’s economic docket remained depressive and mixed that made traders confused.

The Personal Spending for June raised to 5.6% from the expected 5.3%, and the Chicago PMI in July also raised to 51.9 from the expected 44.0 and gave a boost to the U.S. dollar. However, the Personal Income in July dropped to -1.1% against the expected -0.8%and weighed on the U.S. dollar.

The improved confidence in the bloc’s prospects due to its handling of pandemic and issuance of the massive E.U. stimulus package has limited the negative effects of euro strength. Some analysts believe that the Euro will attract “significant” safe-haven flows in the coming months. The Euro has become a stronger currency recently due to fundamental improvement in the structure of Europe. Politically and financially. However, the fall in EUR/USD pair on Friday was all because of profit-taking and correction.

Daily Technical Levels

Support Pivot Resistance
1.1768 1.1782 1.1795
1.1755 1.1809
1.1740 1.1822

EUR/USD– Trading Tip

The EUR/USD fell sharply from 1.1908 level to test the double bottom support level of 1.1745 level. On the hourly timeframe, the EUR/USD extends to form neutral candles, which suggests indecision among investors despite a strong support level of 1.1745. On the higher side, the EUR.USD may find support at 1.1796 level. 

GBP/USD – Daily Analysis

The GBP/USD pair closed at 1.30847 after placing a high of 1.31701 and a low of 1.30702. The movement of the GBP/USD pair remained flat but slightly bearish throughout the day.

After posting gains for ten consecutive days, the GBP/USD pair declined for the first time in 10 days on Friday. The pair rose above 1.31700 level, the highest since March 2020, at the ending day of the month. However, the pair GBP/USD did not stay there for long and dropped to post losses on the day after technical buying in the U.S. dollar started.

The surge in GBP/USD in the earlier session was due to the worries that the ever-increasing number of coronavirus cases could undermine the U.S. economic recovery. The concerns were escalated after the advanced US GDP report on Thursday that showed that the U.S. economy was collapsed by 32.9% during the second quarter.

This made greenback weak, and the more dovish statement further pressurized it on Wednesday from FOMC. Besides, the difference of opinion of Republicans & Democrats to reach a deal ahead of the expiry of some earlier provision on Friday weighed on the U.S. dollar.

In an earlier trading session on Friday, the U.S. dollar’s weakness gave a push to the GBP/USD pair above 1.31700 level; however, the oversold condition of the U.S. dollar and the profit taking by investors in late session dragged down the pair and turned gains into losses.

On the data front, the Nationwide House Price Index from Great Britain for July rose to1.7% from the expected -0.2% and supported the GBP/USD pair. On the U.S. front, the Core PCE Price Index for June came in line with the expectations of 0.2%. Personal Spending in June rose by 5.6% from 5.3% of expectations and supported the U.S. dollar. The Chicago PMI also rose to 51.9 from the expected 44.0 and supported the U.S. dollar. The better than expected PMI and Personal Spending data from the U.S. gave strength to the U.S. dollar that dragged the GBP/USD pair on the lower side.

On coronavirus front, the COVID-19 situation in the U.K. remained under control as the increasing number of cases made the government impose restrictions on around 4.3M people in northern England. On Brexit front, On Friday, Britain and E.U. have planned more trade negotiations until October 02, less than a fortnight before a summit where the E.U. hopes to approve Britain’s agreement.

It’s been more than four years since Britain voted to leave E.U., and after torturous divorce talks, both sides are negotiating all aspects of their future relations, from trade to security to transport from 2021 onwards.

On the Sino-UK front, both countries’ relation has not improved after the U.K. canceled the extradition treaty with Hong Kong.

Next week’s main event will be the Super Thursday as the Bank of England is set to release its monetary policy statement and leave the interest rates on hold at 0.1% and the quantitative easing program at 745 billion pounds. The focus will be on the statement released by the bank and any unexpected announcement that will make it “Super.”

The Governor of Bank of England, Andrew Bailey, will give a press conference speech ad provide details on the current economic situation and growth prospects. Any BOE help to the government in lowering the borrowing cost and support the recovery will be beneficial for GBP/USD pair. Furthermore, the views about the concept of negative interest rates by Bank of England will also hold importance in investors on the coming Thursday.

Daily Technical Levels

Support Pivot Resistance
1.3078 1.3092 1.3114
1.3056 1.3128
1.3042 1.3149

GBP/USD– Trading Tip

The GBP/USD is trading at 1.3088 level, having completed the 50% Fibonacci retracement at 1.3060 level. On the higher side, the Sterling can find resistance at 1.3105. In the daily timeframe, the Cable has formed a Doji pattern, which is followed by a solid bullish trend at 1.3100 level, and it has the potential to drive bearish bias in the pair. Let’s keep an eye on 1.3125 to extract a bearish bias in the GBP/USD pair today. A bearish breakout of 1.3050 can drive more selling until 1.3005.

USD/JPY – Daily Analysis

The USD/JPY pair was closed at 105.876 after placing a high of 106.053 and a low of 104.184. Overall the movement of the USD/JPY pair remained bullish throughout the day. After falling for six consecutive days, the USD/JPY pair dropped on Friday and broke its 6-days bearish streak amid mixed U.S. data.

In an earlier trading session on Friday, the USD/JPY pair dropped to its lowest since March 2020 near 104.00 level amid the better than expected Japanese macroeconomic data.

At 4:30 GMT, the Unemployment Rate from Japan for June dropped to 2.8%from the expected 3.0% and supported the Japanese Yen. At 4:50 GMT, the Prelim Industrial Production for June increased to 2.7% from the anticipated 0.9% and gave strength to Japanese Yen.

At 10:00 GMT, the Consumer Confidence from Japan came in line with the expectations of 29.5 for the month of July. The Housing Starts for the year in June dropped as expected to -12.8%. The strong Japanese Yen weighed on the USD/JPY pair and dragged the pair near the 104.00 level. However, the USD/JPY pair’s losses faded away after the release of U.S. economic data.

The macroeconomic data released by the U.S. on Friday was although mixed, but traders cheered the positive data and gave strength to the U.S. dollar. Another reason behind the U.S. dollar surge was profit-taking and correctness as the U.S. dollar was oversold in the market from the previous ten days.

At 17:30 GMT, the Core PCE Price Index for June from the U.S. came as projected by 0.2%. In June, personal spending exceeded the expectations of 5.3% and came in as 5.6% and supported the U.S. dollar. The Employment Cost Index for the quarter dropped to 0.5% from the forecasted 0.6%. The Personal Income for June also dropped to -1.1% from the forecasted -0.8%.

At 18:45 GMT, the Chicago PMI rose to 51.9from the anticipated 44.0 and gave strength to the U.S. dollar. However, at 19:00 GMT, the Revised UoM Consumer Sentiment remained flat with expectations of 72.5, and the UoM Revised Inflation Expectations dropped in July to 3.0% from May’s 3.1%.

Investors followed the U.S.’s positive data and gave a push to the U.S. dollar on Friday that leads to the upward trend of the USD/JPY pair.

The U.S. Dollar Index stretched higher with the initial reaction to the mixed U.S. data and helped the pair to move further on the upside. The DXY posted small gains near 92.97 levels on Friday. The U.S. Treasury bond yield for ten years was down by 1% on the day.

On the US-China front, the United States strengthened its economic pressure on China’s Xinjiang province on Friday, after imposing sanctions on a powerful Chinese company, and two officials for human rights abuses against Uighurs/ Muslims and other ethnic minorities.

U.S. Secretary of State Mike Pompeo called the said human rights abuses by the Chinese Communist Party in Xinjiang province, China, against Muslim minorities as the stain of the century.

This move came in a week after U.S. President Donald Trump shut the Chinese consulate in Houston on the back of allegations that it was a spy hub. In response, the U.S. consulate in the south-western city of Chengdu in China was also closed in revenge on similar grounds of the fast spread of the virus in the U.S. Early on Thursday, Japan will publish Retail Trade data that is expected to fell by 6.5% compared to the earlier year. The U.S. investors will look forward to GDP data for the second quarter.

Daily Technical Levels

Support Pivot Resistance
104.80 105.85 105.55
104.50 106.00
104.05 106.00

USD/JPY – Trading Tips

The USD/JPY trades with a bullish sentiment around 105.950 level, having completed 61.8% Fibonacci retracement at 106.063. The pair is forming a bearish engulfing candle below 106.406 level, the level that worked as a support for USD/JPY in now it’s working as a resistance. On the higher side, next USD/JPY may find resistance at 106.650, while support stays at 105.250. The MACD and RSI both are suggesting bullish bias in USD/JPY pair today. Let’s consider staying bullish over 105.550 level today. Good luck! 

Categories
Forex Market Analysis

Daily F.X. Analysis, July 30 – Top Trade Setups In Forex – GDP Figures In Focus 

Later today, the focus will remain on the German Prelim GDP and Advance GDP figures from the U.S. both of the events are expected to perform worse than before as the data represents the lock-down period’s economic activity. So most of it is already priced in. However, the U.S. Jobless claims will remain in the highlights. Jobless Claims figures are expected to rise again, perhaps due to the second wave of COVID19 in the U.S.

Later today, the focus will remain on the German Prelim GDP and Advance GDP figures from the U.S. both of the events are expected to perform worse than before as the data represents the lock-down period’s economic activity. So most of it is already priced in. However, the U.S. Jobless claims will remain in the highlights. Jobless Claims figures are expected to rise again, perhaps due to the second wave of COVID19 in the U.S.

Later today, the focus will remain on the German Prelim GDP and Advance GDP figures from the U.S. both of the events are expected to perform worse than before as the data represents the lock-down period’s economic activity. So most of it is already priced in. However, the U.S. Jobless claims will remain in the highlights. Jobless Claims figures are expected to rise again, perhaps due to the second wave of COVID19 in the U.S.

Economic Events to Watch Today  

    

EUR/USD – Daily Analysis

TheEUR/USD pair was closed at 1.17897 after placing a high of 1.18061 and a low of 1.17124. Overall the movement of the EUR/USD pair remained bullish throughout the day. EUR/USD pair rose above the 1.180 level on Wednesday amid the Federal Reserve’s decision to keep the rates unchanged at 0.0%-0.25%.

The concerning picture painted by the Federal Reserve about the resurgence of COVID-19 that was already hurting consumption and jobs weighed more on the U.S. dollar. According to Fed Chair Jerome Powell, Fed showed full commitment to use all of its powers and tools to support the economy. He also said that economic development was highly dependent on the coronavirus, and the rates will remain near zero until the economy improves towards recovery.

The Fed’s decision and a statement from Fed’s Chair Powell further weighed on the U.S. dollar that was already under pressure from the past few days. The U.S. Dollar Index fell 0.44% to 93.17, the lowest level since June 2018. The fall of the U.S. dollar below two years lowest level helped the EUR/USD pair to post gains.

The greenback has suffered on expectations that the Fed will continue its ultra-loose monetary policy for years to come and speculate that it will allow inflation to run higher than it has previously indicated before raising interest rates. This all came as the U.S. was facing a continuous rise in coronavirus cases as U.S. deaths from virus surpassed 150,000 on Wednesday, a number higher than all countries and nearly a quarter of the world’s total numbers.

The pair EUR/USD rose above 1.180 level amid the fresh weakness of the U.S. dollar. However, the European side’s macroeconomic data also helped the EUR/USD pair in sustaining its gains.

At 11:00 GMT, the German Import Prices for June rose to 0.6% against the expected 0.5% and supported Euro that added in the upward trend of currency pair.

Furthermore, the Executive of the European Union said on Wednesday that it had agreed to buy a limited supply of the COVID-19 medicine redeliver from the U.S. drugmaker Gilead to address Europe’s short-term needs patients. They also hoped to be able to order more later.

The E.U. Commission agreed to pay about 63 million euros to buy enough doses to treat about 30,000 patients. The anti-viral is the only drug so far authorized in the E.U. to treat patients with the virus’s severe symptoms. However, nearly all available supplies have already been bought by the U.S.

Daily Technical Levels

Support Pivot Resistance
1.17 1.18 1.18
1.17 1.19
1.16 1.19

 

EUR/USD– Trading Tip

The technical side of the EUR/USD remains mostly the same as it’s trading at 1.1770 level, holding above resistance become support level of 1.1755. On the hourly timeframe, the EUR/USD continues to form higher high and higher low pattern suggestings odds of bullish trend continuation. A bearish breakout of 1.1755 can drive more selling until 1.1702 level. On the higher side, the resistance can stay at 1.1788 and 1.1880.

GBP/USD – Daily Analysis

The GBP/USD pair was closed at 1.29953 after placing a high of 1.30132 and a low of 1.29118. Overall the movement of GBP/USD pair remained bullish throughout the day. The GBP/USD pair rose for the 9th consecutive day and maintained its bullish streak and crossed the 1.30 level. The currency pair rose to its multi-months’ highest level since the first week of March amid the broad-based U.S. dollar weakness.

The U.S. dollar struggled against the six major currencies and dropped to 2 year’s lowest level at 93.17 on Wednesday after the announcement of an interest rate decision by Federal Reserve. Fed kept its rates unchanged near zero and vowed to keep them at the same level until the economy shows improvement.

 Furthermore, the Fed Chair Jerome Powell said that the current economic downturn was severe, and continued fiscal and monetary support will be necessary for recovery. He added that the Fed would remain committed to using its full range of tools to support the economy.

The rising number of coronavirus cases in the U.S. has weighed on America’s economy and the U.S. dollar. Traders have become more concerned that the world’s top economy could be headed for a severe contraction this year.

The death toll in the U.S. reached 150,000 on Wednesday, and it raised the concerns that the economy will take a long time to recover that weighed further on the U.S. dollar. The weak U.S. dollar gave a push to GBP/SUSD pair’s prices above 1.200 level.

On the British Pound front, the Pound rose today after U.K. Mortgage Approvals & Net Lending to Individuals. At 13:30 GMT, the M4 Money Supply by the U.K. for June dropped to 1.0% from the expected 2.2%. The Mortgage Approvals improved to 40K from the projected 35K in June, and the Net Lending to Individuals in June also rose to 1.8B from the expected -0.4B and supported Sterling.

Better than expected macroeconomic data from the U.K. gave strength to British Pound and helped GBP/USD pair to post gains on Wednesday.

Meanwhile, Brexit has remained in focus this week after the London School of Economics warned that both Brexit and the Covid-19 pandemic could severely compromise the U.K. economy.

The U.K. was close to securing a continuity trade deal with Japan that will mirror that of the E.U. pact that Britain will no longer be a part of next January. Both sides are seeking to secure a continuous trade deal once Brexit implemented on January 1.

On Thursday, U.S. dollar investors will be looking ahead for the US GDP figure for the second quarter that is expected to fall by -34.1%; any figure closer to it will be good for the U.S. dollar. The investors will also await the release of the latest U.S. Initial Jobless Claims for July.

However, most people will likely prefer not to invest in the U.S. dollar because of increased external and domestic pressure on American’s economy.

Daily Technical Levels

Support Pivot Resistance
1.2863 1.2908 1.2978
1.2792 1.3024
1.2747 1.3094

GBP/USD– Trading Tip

The GBP/USD is also forming a higher high and higher low pattern, which suggests odds of a bullish trend in the GBP/USD pair. The Cable is likely to find support at 1.2970, which is extended by the upward trendline on the hourly timeframe. Above this, the next resistance can be found around 1.30095, along with support at 1.2970 and 1.2945.

USD/JPY – Daily Analysis

The USD/JPY pair was closed at 104.920 after placing a high of 105.241 and a low of 104.771. Overall the movement of the USD/JPY pair remained bearish throughout the day. On Wednesday, USD/JPY pair continued its bearish streak for the 5th day and fell below 105.00 level amid Fed’s decision to keep interest rates near zero.

Federal Reserve Chairman Jerome Powell warned the U.S. faced the most severe economic downturn and said that the economy’s path was extraordinarily uncertain. He said that the increased number of virus cases and the renewed measures to control it have started to weigh on recent weeks’ economic activity. Powell also said that recovery would need help from both fiscal and monetary policy.

The Federal Reserve vowed to keep the rates unchanged as the pandemic still persists and poses considerable economic outlook risks. The rates will remain near zero until the economy was on track to achieve its maximum employment and price stability goals. The U.S. dollar came under renewed pressure after releasing the monetary policy statement and interest rate decision and caused the USD/JPY pair to drop below 105.00 level.

Despite better than expected U.S. macro-economic data, the U.S. dollar remained under pressure and continues to post losses on the day.

At 17:30 GMT, the Goods Trade Balance for June showed a deficit of 70.6B against the expected deficit of 75.5B and supported the U.S. dollar. The Prelim Wholesale Inventories came in as -2.0% against the expected -0.4% and supported the U.S. dollar. At 19:00 GMT, the Pending Home Sales for June increased to 16.6% against the expected 15.6%and supported the U.S. dollar. The U.S. Dollar index fell to its two years lowest level on 93.17, and the U.S. Treasury yields were little changed with a 10-year note holding below 0.60%.

Meanwhile, President Trump said on Wednesday that his administration was allowing for banning the Chinese-owned social media giant TikTok on the back of fears that it could be weaponized to spy Americans.

The U.S. Treasury Secretary Steven Mnuchin also backed this comment and said that Committee on Foreign Investment in the U.S. was also studying the app’s national security risk. He added that TikTok was under serious evaluation, and by this week, a recommendation will be made to the president regarding the app.

On coronavirus front, the U.S. coronavirus fatalities exceeded 150,000 as seven states, including California and Florida, broke new daily death records. Fears for the potential growth of the infections increased in the Midwest area, including Indiana, Colorado, Ohio, and Wisconsin, because of the fast spread of the virus in the U.S.

Early on Thursday, Japan will publish Retail Trade data that is expected to fell by 6.5% compared to the earlier year. The U.S. investors will look forward to GDP data for the second quarter.

Daily Technical Levels

Support Pivot Resistance
104.80 105.25 105.55
104.50 106.00
104.05 106.30

USD/JPY – Trading Tips

The USD/JPY trades with a selling bias around 105.526 level, trading within a downward channel that immediately generates resistance at 106.120. On the lower side, the USD/JPY may find support at 105.375 level, and closing of candles below 105.375 can open further selling bias until 104.850. Overall the pair is forming lowers low and lowers high pattern, which signifies selling sentiment among traders. The RSI and MACD suggest selling signals; for instance, the RSI is holding below 50, and the MACD is staying below 0. Today, let’s look for buying trade above 105.200. Good luck! 

Categories
Forex Signals

USDJPY Bearish Bias Below Downward Trendline – Update On Signal!

Today in the early European trading session, the USD/JPY currency pair extended its previous day bearish moves and dropped further below 105.00 level, mainly due to the broad-based U.S. dollar weakness. The worries triggered U.S. selling bias that the second wave of COVID-19 cases in the United States could ruin the recovery in the world’s biggest economy.

Today in the early European trading session, the USD/JPY currency pair extended its previous day bearish moves and dropped further below 105.00 level, mainly due to the broad-based U.S. dollar weakness. The worries triggered U.S. selling bias that the second wave of COVID-19 cases in the United States could ruin the recovery in the world’s biggest economy.

Today in the early European trading session, the USD/JPY currency pair extended its previous day bearish moves and dropped further below 105.00 level, mainly due to the broad-based U.S. dollar weakness. The worries triggered U.S. selling bias that the second wave of COVID-19 cases in the United States could ruin the recovery in the world’s biggest economy.

The U.S. Treasury bond yields also declined and weighed on the U.S. dollar. On the other hand, the concerns about intensifying US-China relations extended some additional support to the safe-haven Japanese yen, which exerted an additional burden on the currency pair. Apart from this, the (BOJ) Deputy Governor Masayoshi Amamiya commented that the central bank was prepared to ease its monetary policy exerted some pressure on JPY and extended support to the pair. At this particular time, the USD/JPY currency pair is currently trading at 104.94 and consolidating in the range between 104.81 and 105.25.

The fears that the second wave of COVID-19 cases could undermine the U.S. economic recovery still hovering all over the market and kept the U.S. dollar bulls on the defensive. As per the latest report, the number of confirmed coronavirus cases in the Arizona state increased by 2,107 to a total of 165,934, while the death toll increased to 3,408, and the current hospitalization dropped to 2,564. Apart from this state, the number of confirmed coronavirus cases in the Florida state rose to a total of 441,977, while the deaths toll rose to 6,240, and the hospitalization decreased to 9,023 according to Florida’s Department of Health statement. Almost 4 U.S. states reported records high for one-day coronavirus deaths on Tuesday. The cases in Texas passed the 400,000 marks. However, these fears have exerted significant pressure on the market trading sentiment and made the U.S. dollar weak as well.

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 cautious. However, the losses in the U.S. dollar kept the currency pair bearish. Whereas, the Dollar Index, which tracks the greenback against a basket of six other currencies, was down 0.2% at 93.507.

Across the Pound, the currency pair’s losses could also be associated with Bank of Japan (BOJ) Deputy Governor Masayoshi Amamiya comments that the central bank was prepared to ease its monetary policy further without hesitation if necessary, in the face of the coronavirus pandemic. It also added, “Global economy expected to recover only if wave 2.0 stops slowly.” As well as, they cleared that Japan’s business sentiment has started to show signs of recovery after dropping to a worse level.

However, the risk-off market sentiment was further bolstered by the latest disappointment over the much-awaited fiscal package’s lack of progress. The House Speaker Nancy Pelosi and the White House Chief of Staff Mark Meadows recently ruined expectations of U.S. policymakers delivering a much-awaited fiscal package soon. He said that the Republicans and Democrats still had a difference over the stimulus. However, these uncertainties extended some additional support to the Japanese yen’s as safe-haven status.

Apart from this, the recent escalation of diplomatic tensions between the U.S. and China also exerted some downside pressure on the risk sentiment and contributed to the currency pair’s declines. Although, traders are expected to avoid placing any strong bets ahead of the highly-anticipated FOMC decision.


The USD/JPY trades with a selling bias around 104.926 level, trading within a downward channel that provides an immediate resistance at 105.120. On the lower side, the USD/JPY may find support at 104.575 level, and closing of candles below 104.575 can open further selling bias until 104. Overall the pair is forming lowers low and lowers high pattern, which signifies selling sentiment among traders. The RSI and MACD suggest selling signals; for instance, the RSI is holding below 50, and the MACD is staying below 0. Today, let’s look for selling trade below 104.858.

Entry Price – Sell 104.858
Stop Loss – 105.258
Take Profit – 104.458
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, July 29 – Top Trade Setups In Forex – FOMC in Focus! 

On the news front, the focus will be on the FOMC and Fed policy decision which is expected to be 0.25%. Since no change in rate is expected, there’s is likely to be a neutral sentiment in the market. Besides, the investors will also focus on the Pending Home Sales from the U.S. which is expected to have dropped sharply. The dollar can stay weaker on this news.

On the news front, the focus will be on the FOMC and Fed policy decision which is expected to be 0.25%. Since no change in rate is expected, there’s is likely to be a neutral sentiment in the market. Besides, the investors will also focus on the Pending Home Sales from the U.S. which is expected to have dropped sharply. The dollar can stay weaker on this news.

On the news front, the focus will be on the FOMC and Fed policy decision which is expected to be 0.25%. Since no change in rate is expected, there’s is likely to be a neutral sentiment in the market. Besides, the investors will also focus on the Pending Home Sales from the U.S. which is expected to have dropped sharply. The dollar can stay weaker on this news.

Economic Events to Watch Today  

    

EUR/USD – Daily Analysis

The EUR/USD pair was closed at 1.17166 after placing a high of 1.17734 and a low of 1.16984. Overall the movement of the EUR/USD pair remained bearish throughout the day.

After rising for eight consecutive days, the EUR/USD pair dropped on Tuesday and posted losses for the day as the U.S. dollar rose marginally across the board but remained under pressure ahead of the Fed meeting.

The U.S. Dollar Index was also up on Tuesday and posted a high of 94.0. The recovery in the greenback could be because of correction after losing ground significantly over a few days. Or the recovery could also be because of the rising hopes of the U.S. stimulus package and the economic recovery hopes associated with it.

The Republicans made a proposal on Monday for a stimulus package worth about $1 trillion. The Senate Republicans plan to issue another round of stimulus checks of $1200 while it also cut the emergency unemployment benefit from $600 to $200 per week.

More than 100 billion dollars were allocated to reopen schools in the presented proposal of coronavirus relief fund by Republicans. The proposal is yet to be approved by the Democrats. On the data front, the Spanish Unemployment Rate was decreased to 15.3% from the expected 16.6% and supported Euro. From the American side, at 18:00 GMT, the S&P/CS Composite-20 Housing Price Index for the year was also dropped to 3.7% from the expectations of 4.1%. At 19:00 GMT, the C.B. Consumer Confidence from America dropped to 92.6 in July from 94.0and weighed on the U.S. dollar.

However, the EUR traders ignored the macroeconomic data on Tuesday, and the pair EUR/USD continued to follow the improved U.S. dollar movements.

A two-day Federal Reserve meeting started on Tuesday, during which investors expected reaffirmation on the outlook. Though no monetary policy changes were expected, traders were speculating about a change in emphasis in the Fed’s forward guidance at the meeting.

On the other hand, the bearish correction in EUR/USD pair on Tuesday was due to the rise in its prices for eight consecutive days. The trend in the EUR/USD pair was still positive, and even a sharper slide could have been normal.

On the previous day, the pair EUR/USD posted the highest daily close since June 2018 near 1.1780 level, confirmed that both single currencies had a solid momentum. And despite falling and posting losses on Tuesday, the pair EUR/USD continued to hold just below 1.18 level, which shows that it has a key multi-year trend resistance.

Daily Technical Levels

Support Pivot Resistance
1.1686 1.1730 1.1762
1.1654 1.1806
1.1610 1.1837

EUR/USD– Trading Tip

The EUR/USD is trading at 1.1728 level, holding above resistance to become a support level of 1.1715. On the hourly timeframe, the EUR/USD was previously forming highers high and highers low pattern, but now the recent cycle seems to change the trend. A bearish breakout of 1.1715 can drive more sales until the 1.1683 level. On the higher side, the resistance can stay at 1.1780.

GBP/USD – Daily Analysis

The GBP/USD pair was closed at 1.29316 after placing a high of1.29526 and a low of 1.28379. Overall the movement of GBP/USD pair remained bullish throughout the day. The GBP/USD pair extended its previous day’s gains and maintained its bullish streak for the 8th consecutive day on Tuesday amid improved market mood on vaccine hopes. The U.S. Dollar struggled on Tuesday after hopes of a COVID-19 vaccine boosted the risk sentiment. As in result, the greenback suffered as markets inclined towards riskier assets. The positive news about vaccine development supported the risk sentiment.

The pharma firms worldwide are working on treatment and vaccine development that provides multiple routes to success. Companies like Moderna, Pfizer, and AstraZeneca were all pushing to get their vaccines across the line.

Meanwhile, the U.S. Dollar was also supported ahead of the 2-days Federal Reserve meeting that started on Tuesday. Though no change in interest rate is expected, the traders were cautious to know about the statement of meeting to find more clues about the U.S. economy.

However, the release of S&P/Case-Shiller Home Price Indices for May fell below the forecast of 3.9% to 3.7%. It is because investors have become concerned about America’s economic recovery from the coronavirus pandemic.

The Richmond Manufacturing Index was released at 18:59 GMT as 10 for July against the expectations of 5 and supported the U.S. dollar. However, the C.B. Consumer Confidence also dropped to 92.6 from the forecasted 94.0 and weighed on the U.S. dollar that eventually added in the currency pair gains.

From the GBP side, the Pound was benefited from a stronger than expected CBI Distributive Trades Survey that rose to 4% from the expected -37% and gave hopes to investors that the British economy could be on the road to recovery.

Meanwhile, the Sterling traders were cautious after Prime Minister Boris Johnson warned of the possible signs of the pandemic’s second wave in parts of Europe. This raised concerns that the U.K. could also suffer from a second wave of coronavirus in the month ahead. The London School of Economics has also reported that Brexit could prove a double-shock to the economy. As a result, GBP traders remained cautious as UK-EU post-Brexit trade talks continue despite a lack of progress.

The GBP/USD pair traders will look forward to the Fed’s interest rate decision and the statement of the meeting. If fed in notably downbeat in s monetary policy statement, the GBP/USD pair would edge higher as concerns about the global economy grow.

The Brexit developments will also drive the GBP/USD pair in the coming days of the week as there will be a lack of macroeconomic data until next week. If the talks between the E.U. & U.K. show any progress, then Sterling would rise.


Daily Technical Levels

Support Pivot Resistance
1.2863 1.2908 1.2978
1.2792 1.3024
1.2747 1.3094

GBP/USD– Trading Tip

On the 4 hour chart, the GBP/USD has completed 23.6% retracement at 1.2927 level, and closing below this level has the potential to lead GBP/USD prices towards 1.2910, which marks 38.2% Fibonacci retracement level. On the lower side, the GBP/USD pair can find support at 1.2810 and 1.2765 level. Conversely, the resistance stays at 1.2975. Let’s consider taking buying trade over 1.2760 until 1.2860 level today.  

USD/JPY – Daily Analysis

The USD/JPY pair was closed at 105.073 after placing a high of 105.684 and a low of 104.954. Overall the movement of the USD/JPY pair remained bearish throughout the day. The USD/JPY pair extended its bearish trend and losses on Tuesday amid U.S. dollar weakness and struggled with 105 level. The haven was on the bid, which supported the Japanese Yen and caused a decline in the USD/JPY pair.

The rising numbers off coronavirus cases in the U.S. and the Federal Reserve Interest Rate decision event were the market’s dominating sentiment. Meanwhile, the U.S. stimulus negotiations and mixed earnings reports sent the investors to the sidelines.

The greenback managed to correct some of its oversold conditions during the past sessions; however, the USD/JPY pair remained still on the bearish path on Tuesday. The reason behind it was that background picture containing the concerns about the spread of coronavirus, and the ongoing US-China tensions did not change.

The U.S. Senate Republicans revealed the new coronavirus aid proposal that will need Democrats’ support. The package would include another round of $1200 in direct payments to individuals and a reduction in federal unemployment benefits from $600 to $200 per week and also more than $100 billion for reopening schools.

In remarks, Nancy Pelosi, a white house speaker, criticized it and called it a “pathetic” offer that was not enough to support the country.

On the data front, Japan published the June Corporate Service Price Index, which improved to 0.8% from 0.5% in May. On the U.S. side, the Richmond Manufacturing Index raised to 10 from the expected five and supported the U.S. dollar. The S&P/CS Composite-20 HPI dropped to 3.7% from the expected 4% and weighed on the U.S. dollar. The C.B. Consumer Confidence also dropped to 92.6 from the expected 94.0 and weighed on the U.S. dollar.

The poor than expected Consumer Confidence and HPI data added further losses in the USD/JPY pair on Tuesday. Furthermore, despite the prospects of a prolonged U.S. recession, the U.S. dollar will favor any breakdown in the market confidence due to its dominance in the global payment system. On JPY front, the currency is sensitive to geopolitical news in the Asian region, and with the ongoing conflict between U.S. & China, JPY is set to remain firm for the time being. JPY was the third worst-performing currency this month after the USD and Canadian Dollar.


Daily Technical Levels

Support Pivot Resistance
104.80 105.25 105.55
104.50 106.00
104.05 106.30

 

USD/JPY – Trading Tips

The USD/JPY trades with a selling bias around 105.526 level, trading within a downward channel that provides an immediate resistance at 106.120. On the lower side, the USD/JPY may find support at 105.375 level, and closing of candles below 105.375 can open further selling bias until 104.850. Overall the pair is forming lowers low and lowers high pattern, which signifies selling sentiment among traders. The RSI and MACD suggest selling signals; for instance, the RSI is holding below 50, and the MACD is staying below 0. Today, let’s look for buying trade above 105.200. Good luck! 

Categories
Forex Signals

Overbought EUR/USD Under Pressure – Brace for Retracement! 

The EUR/USD failed to continue its early-day strong bids and dropped to 1.1711 level even after the upbeat German data showed that the export expectations for Europe’s economic powerhouse improved sharply in July re-opening of economies. However, the reason for the losses in currency pair could also be attributed to the broad-based U.S. dollar strength, triggered by geopolitical tensions and hopes that policymakers were close to a result over the next U.S. fiscal stimulus package, which contributed to the currency pair gains. At the moment, the EUR/USD currency pair is currently trading at 1.1710 and consolidating in the range between 1.1708 – 1.1774. 

The EUR/USD failed to continue its early-day strong bids and dropped to 1.1711 level even after the upbeat German data showed that the export expectations for Europe’s economic powerhouse improved sharply in July re-opening of economies. However, the reason for the losses in currency pair could also be attributed to the broad-based U.S. dollar strength, triggered by geopolitical tensions and hopes that policymakers were close to a result over the next U.S. fiscal stimulus package, which contributed to the currency pair gains. At the moment, the EUR/USD currency pair is currently trading at 1.1710 and consolidating in the range between 1.1708 – 1.1774. 

The EUR/USD failed to continue its early-day strong bids and dropped to 1.1711 level even after the upbeat German data showed that the export expectations for Europe’s economic powerhouse improved sharply in July re-opening of economies. However, the reason for the losses in currency pair could also be attributed to the broad-based U.S. dollar strength, triggered by geopolitical tensions and hopes that policymakers were close to a result over the next U.S. fiscal stimulus package, which contributed to the currency pair gains. At the moment, the EUR/USD currency pair is currently trading at 1.1710 and consolidating in the range between 1.1708 – 1.1774. 

However, the currency pair buyers seemed cautious to place any strong position ahead of the C.B. Consumer Confidence, which is due to release on the day. It is worth recalling that the “Export expectations in Europe’s largest economy rose to 6.9 points in July from -2.2 the previous month.”

At the US-China front, the tussle between the US-China got an additional burden after China ordered the closure of the U.S. office in Chengdu, a tit-for-tat reply for the United States’ previous move over the Chinese office closure in Houston. In the meantime, the U.S. is increasing its aerial surveillance over the South China Sea to a record level to keep watch on China. 

As per the keyword, “Spy planes from the U.S. navy, air force and army are involved in an apparent three-pronged drive to track Chinese submarines and monitor activity by the People’s Liberation Army (PLA), which has redoubled training for operations aimed at Taiwan”. Further added, “In Beijing, procurement documents from the China State Shipbuilding Corporation have revealed plans to build an amphibious assault ship ideal for island invasion”. However, these statements instantly escalated tensions between both countries.

At the coronavirus front, the latest number of coronavirus infections has crossed almost 16.30 million, whereas more than 650,000 people have died globally, as per the Johns Hopkins University. Whereas, the California coronavirus cases increased by at least 10,549 on Monday to 463,439 total, which now crossed the record of Massachusetts in total COVID-19 deaths. Australia’s no. 2 populous states of Victoria also reported 384 new cases on the day vs. 532 previous day’s surge. In contrast, New Zealand has reported zero cases of Covid-19 for the 3rd-day in a row. 

Despite all these concerns, the equity market flashed green, possibly due to optimism over a potential vaccine for the COVID-19. The reason for the risk-on market sentiment could also be attributed to the hopes of the U.S. $1 trillion packages. The U.S. Senate Republicans introduced a $1 trillion COVID-19 aid package that would include $1,200 payments to U.S. citizens, as well as incentives for the manufacturing of personal protective equipment in the United States rather than importing them from China. This package also included $190 billion in loans for small businesses and $100 billion in loans to businesses that operate seasonally or in low-income areas. However, these hopes kept the equity market positive on the day.

As in result, the broad-based U.S. dollar erased its early-day deeper losses and edged higher, at least for now. However, the gains in the U.S. dollar could be short-lived or temporary due to the worries that the economic recovery in the U.S. could be stopped in the wake of the resurgence in coronavirus cases. However, the gains in the U.S. dollar kept the EUR/USD currency pair under pressure. 


The EUR/USD is trading at 1.1728 level, holding above resistance to become a support level of 1.1715. On the hourly timeframe, the EUR/USD was previously forming highers high and highers low pattern, but now the recent cycle seems to change the trend. A bearish breakout of 1.1715 can drive more sales until the 1.1683 level. On the higher side, the resistance can stay at 1.1780. Checkout a trading plan below…

Entry Price – Sell 1.17305

Stop Loss – 1.17705

Take Profit – 1.16905

Risk to Reward – 1:1

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

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

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

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

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

Categories
Forex Signals

USD/JPY Examines Double Bottom – Update On Signal!

Today in the early European trading session, the USD/JPY currency pair succeeded to stop its previous 4-day losing streak and rose above mid-105.00 marks mainly due to the broad-based U.S. dollar strength, buoyed by the hopes of U.S. fiscal stimulus package, which eventually pushed the U.S. Treasury bond yields higher and contributed to the currency pair gains. On the other hand, the concerns about the worsening US-China relations might underpin the safe-haven Japanese yen, which becomes the key factor that cap the currency pair further gains. At this moment, the USD/JPY currency pair is currently trading at 105.44 and consolidating in the range between 105.22 – 105.69

Today in the early European trading session, the USD/JPY currency pair succeeded to stop its previous 4-day losing streak and rose above mid-105.00 marks mainly due to the broad-based U.S. dollar strength, buoyed by the hopes of U.S. fiscal stimulus package, which eventually pushed the U.S. Treasury bond yields higher and contributed to the currency pair gains. On the other hand, the concerns about the worsening US-China relations might underpin the safe-haven Japanese yen, which becomes the key factor that cap the currency pair further gains. At this moment, the USD/JPY currency pair is currently trading at 105.44 and consolidating in the range between 105.22 – 105.69

Today in the early European trading session, the USD/JPY currency pair succeeded to stop its previous 4-day losing streak and rose above mid-105.00 marks mainly due to the broad-based U.S. dollar strength, buoyed by the hopes of U.S. fiscal stimulus package, which eventually pushed the U.S. Treasury bond yields higher and contributed to the currency pair gains. On the other hand, the concerns about the worsening US-China relations might underpin the safe-haven Japanese yen, which becomes the key factor that cap the currency pair further gains. At this moment, the USD/JPY currency pair is currently trading at 105.44 and consolidating in the range between 105.22 – 105.69

Despite concerns about the ever-increasing coronavirus cases across the world and worsening US-China relations, the investors continued to cheer the hopes of U.S. fiscal stimulus package and optimism over a potential vaccine for the COVID-19. However, the fresh updates that the U.S. policymakers have moved closer to agreeing on the next fiscal stimulus package helped the USD maintain its gains.

The U.S., Senate Republicans introduced a $1 trillion COVID-19 aid package that would include $1,200 payments to U.S. citizens, as well as incentives for the manufacture of personal protective equipment in the United States, rather than China. It is worth mentioning that this package also includes $190 billion in loans for small businesses and $100 billion in loans to businesses that operate seasonally or in low-income areas. However, these hopes kept the equity market positive on the day.

Apart from this, the surge in coronavirus cases continues to gain pace, especially in the United States. As a result, the investors remain worried that the intensifying virus cases could undermine the economic recovery, which eventually fueled the Fed’s expectation of more stimulus. As per the latest report, the number of coronavirus infections has crossed almost 16.30 million across the world, whereas more than 650,000 people have died globally, as per the Johns Hopkins University. Whereas, the California coronavirus cases increased by at least 10,549 on Monday to 463,439 total, which now crossed Massachusetts’ record in total COVID-19 deaths.

Apart from the virus woes, the long-lasting tussle between the world’s two largest economies remains on the cards as the U.S. is increasing its aerial surveillance over the South China Sea to a record level to keep watch on China following China ordered the closure of the U.S. office in Chengdu, a tit-for-tat reply for the United States’ previous move over the Chinese office closure in Houston. However, these worsening updates give some support to the safe-haven Japanese yen and become the key factor that kept checking any additional gains in the currency pair. On the other hand, the Japanese LDP group is considering to impose restrictions on Chinese apps also adds a burden on the risk-tone.

As in result, the broad-based U.S. dollar flashed green and reported gains on the day. However, the gains in the U.S. dollar could be short-lived or temporary due to the worries that the economic recovery in the U.S. could be stopped in the wake of the resurgence in coronavirus cases. However, the gains in the U.S. dollar kept the GBP/USD currency pair under pressure. Whereas, the U.S. Dollar Index that tracks the greenback against a basket of other currencies recovered 0.04% to 93.773.

In the absence of the major data/events on the day, the market traders will keep their eyes on the USD price dynamics and coronavirus headlines, which could play a key role in influencing the intraday momentum. As well as, the traders will keep their eyes on the news concerning U.S.-China.


The USD/JPY is trading with a bearish bias at 105.175 level, closing of candles below this level may drive selling bias 104.520. By the time we entered below signal, the market was suggesting buying trend, but now it seems like it’s going against us. Let’s open buy trade with a stop loss at

Entry Price – Sell 105.606

Stop Loss – 105.106

Take Profit – 106.106

Risk to Reward – 1:1
Profit & Loss Per Standard Lot = -$400/ +4600

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, July 28 – Top Trade Setups In Forex – U.S. C.B. Consumer Confidence In Focus! 

On the news front, the U.S. will be releasing C.B. Consumer Confidence during the New York session. C.B. Consumer Confidence is expected to drop from 98 to 94, and it can weigh dollar prices. Simultaneously, the Spanish Unemployment Rate will be in focus during the European session to determine price action in the Euro pairs today.

On the news front, the U.S. will be releasing C.B. Consumer Confidence during the New York session. C.B. Consumer Confidence is expected to drop from 98 to 94, and it can weigh dollar prices. Simultaneously, the Spanish Unemployment Rate will be in focus during the European session to determine price action in the Euro pairs today.

On the news front, the U.S. will be releasing C.B. Consumer Confidence during the New York session. C.B. Consumer Confidence is expected to drop from 98 to 94, and it can weigh dollar prices. Simultaneously, the Spanish Unemployment Rate will be in focus during the European session to determine price action in the Euro pairs today.

Economic Events to Watch Today  

    

 

EUR/USD – Daily Analysis

The EUR/USD pair was closed at 1.17511 after placing a high of 1.17812 and a low of 1.17447. Overall the movement of the EUR/USD pair remained bullish throughout the day. The EUR/USD pair extended its gains and raised for the 7th consecutive session on Monday to reach 22 months’ top level. The EUR/USD [air even crossed the 1.1700 marks and touched the high of 1.17812 on Monday, the highest since September 2018.

The move was attributed to the U.S. dollar’s weakness as a combination of the sentiment in the risk complex plus the persistent selling of the U.S. dollar in favor of other safe have assets kept the greenback under heavy pressure.

The U.S. Dollar Index fell to 2 years low near 93.60 level and weighed heavily on greenback that ultimately helped EUR/USD pair to grow on the chart for the 7th consecutive session.

On data front at 13:00 GMT, the M3 Money Supply for the year dropped in June to 9.2% from the expected 9.5% and weighed on Euro. The Private Loans for the year also fell in June to 3.0% from the anticipated 3.2% and weighed on Euro. The German Ifo Business Climate, however, was improved to 90.5 points from the expected 89.2 points in July.

In July, the improvement in German Ifo Business Climate could be attributed to the new stimulus package by E.U. commission that was agreed by all E.U. states in 4 days E.U. Summit with some alterations. This improvement in Business Climate for the largest economy of Europe gave strength to local currency and added in the EUR/USD currency pair’s gains.

The sharp surge in EUR/USD pair towards levels last seen in September 2018 above 1.1700 level, confirmed that both single currencies had a solid momentum. USD has a negative momentum triggered by the strong selling bias after the fears of U.S. economic recovery and mounting coronavirus cases. At the same time, EUR has a positive momentum after the E.U. states agreed on a Europe Recovery Fund worth 750 Billion euros. On Wednesday, the Federal Reserve will announce its decision about the monetary policy. Though no change is expected, the comments about the growing concerns on U.S. economic recovery would be key.

Daily Technical Levels

Support Resistance

1.1684     1.1816

1.1601     1.1865

1.1552     1.1948

Pivot Point: 1.1733

EUR/USD– Trading Tip

The EUR/USD is trading at 1.1728 level, holding above resistance to become a support level of 1.1715. On the hourly timeframe, the EUR/USD was previously forming highers high and highers low pattern, but now the recent cycle seems to change the trend. A bearish breakout of 1.1715 can drive more sales until the 1.1683 level. On the higher side, the resistance can stay at 1.1780.

GBP/USD – Daily Analysis

The GBP/USD pair was closed at 1.28793 after placing a high of 1.29025 and a low of 1.27755. Overall the movement of GBP/USD remained bullish throughout the day. The GBP/USD pair extended its gains and maintained its bullish streak for the 7th day amid broad-based U.S. dollar selling bias.

The pound surged to nearly five months high level against the U.S. dollar and reached above 1.2900 marks on Monday, but the signs that Brexit negotiations have delayed could prompt bearish bias to rise further.

The decline in the U.S. dollar continuously supported the rally in the GBP/USD pair. The greenback continued to decline that started last week. It was unable to find support because of worries about the economic recovery in the U.S. and rising expectations about more stimulus from the Federal Reserve.

Furthermore, the macroeconomic data on Monday from the U.S. showed that Core Durable Goods Orders in June dropped to 3.3% from the 3.5% of expectations and weighed on the U.S. dollar. However, the Durable Goods Orders for June raised to 7.3% against the expected 7.0% and supported the U.S. dollar.

On Brexit front, the E.U. and U.K. wrapped up their last round of negotiations in London last Thursday but failed to find a solution on key sticking points, including access of E.U. vessels to fish British waters that have so far muted the progress. The E.U. chief negotiator Michel Barnier has emphasized that talks between E.U. & U.K. needed to be completed by October to ratify a potential deal would be lengthy.

On Monday, the strength in Sterling was largely driven by a sharp fall in the dollar as investors bet that an average inflation targeting mechanism will be introduced by the Federal Reserve in its next meeting this week, and that would likely keep interest rate lower for longer.

The Federal Open market Committee will kick off its 2-day meeting on Tuesday. The interest rates are expected to remain the same within the range of 0% t0 0.25%. However, the comments from FOMC members will be key to watch to take fresh clues about the economic condition of the U.S.

Daily Technical Levels

Support Resistance

1.2807     1.2930

1.2732     1.2978

1.2684     1.3053

Pivot Point: 1.2855

GBP/USD– Trading Tip

On the 4 hour chart, the GBP/USD has closed with a bearish engulfing candle, which suggests odds of more selling the in Cable. On the lower side, GBP/USD can find support at 1.2810 and 1.2765 level. Conversely, the resistance stays at 1.2900 and 1.2975. Let’s consider taking buying trade over 1.2760 until 1.2860 level today.  

USD/JPY – Daily Analysis

The USD/JPY pair was closed at 105.378 after placing a high of 106.105 and a low of 105.114. Overall the movement of the USD/JPY pair remained bearish throughout the day. On Monday, the USD/JPY pair fell sharply and reached 105 level as the JPY capitalized on the risk-off flows at the start of the week. The broad-based U.S. dollar weakness and Japanese Yen’s strength as safe-haven currency caused the pair to decline for the 3rd consecutive session.

The U.S. Dollar Index was down 0.83% on Monday at 93.56 level, which, combined with the decreased Core Durable Goods Orders in June data, weighed on the U.S. dollar. As in result, greenback suffered further and pushed USD/JPY currency pair towards fresh multi-month low.

At 17:30 GMT, the Core Durable Goods Orders were declined to3.3% from the 3.5% of expectations and weighed on the U.S. dollar that ultimately pulled the USD/JPY pair towards the lowest level. At 17:30 GMT, the Durable Goods Orders for June increased to 7.3% against the expected 7.0%

On Monday, the Bank of Japan released the summary of opinions at a July rate review. BOJ’s policymakers debated how the COVID-19 pandemic could reshape monetary policy and its impact on the economy. Many in the nine-member board warned any domestic recovery from the pandemic’s disturbing economic impact would be uncertain and could be delayed depending on how long it takes to contain the outbreak.

Several board members cautioned that any further economic stress would require policymakers to pay close attention to Japan’s banking system and its long-term expectations of inflation. One member suggested that further action was needed with close cooperation with the government and other central banks.

At the July rate review, the Bank of Japan kept the monetary policy steady and gradually maintained its view that the economy would gradually recover from the crisis. In short, the Bank of Japan’s July meeting summary of opinion suggested that the nation’s economy is likely to improve in the latter half of this year, but the impact of a pandemic on inflation and growth expectations must be watched.

On the other hand, US-China tensions escalated after China took over the U.S. consulate locations in the southwest city of Chengdu on Monday. The move came in after the facility was ordered to be vacated in revenge for the closure of China’s consulate in Houston last week.

U.S. Secretary of State Mike Pompeo said that Washington and its allies must use “more creative and assertive ways” to press the Chinese Communist party to change its ways.

The increased tensions between both nations kept the Japanese Yen stronger due to its safe-haven status. The strong Japanese Yen then pushed the USD/JPY pair lower towards multi month’s low level.

Daily Technical Levels

Support Resistance

104.91     106.01

104.47     106.65

103.82     107.10

Pivot Point: 105.56

USD/JPY – Trading Tips

The USD/JPY trades with a selling bias around 105.526 level, trading within a downward channel that provides an immediate resistance at 106.120. On the lower side, the USD/JPY may find support at 105.375 level, and closing of candles below 105.375 can open further selling bias until 104.850. Overall the pair is forming lowers low and lowers high pattern, which signifies selling sentiment among traders. The RSI and MACD suggest selling signals; for instance, the RSI is holding below 50, and the MACD is staying below 0. Today, let’s look for buying trade above 105.200. Good luck! 

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Forex Signals

Gold Sharp Bearish Correction – Brace for Sell!

Entry Price – Sell 1929.02

Entry Price – Sell 1929.02

The safe-haven-metal prices succeeded in maintaining its strong previous-day bid tone and rose to the all-time high above $1980 level, mainly due to the broad-based US dollar weakness, weighed by the unprecedented Fed’s stimulus, falling real rates into the negative territory and US fiscal deadlock. As of now, the yellow-metal prices failed to hold up its early gains at higher levels and witnessed a quick drop of about $35, as a broad-based US dollar started to recover its earlier deeper losses.

However, the safe-haven metal is still trading near a record high of 1,947 level, supported by the concerns about worsened US-China relations and an increasing number of coronavirus cases, which forced investors to take place in traditional safe-haven assets and eventually provided a strong boost to the commodity. At the moment, the yellow metal prices are currently trading at 1,945.09 and consolidating in the range between 1,933.79 and 1,981.13.

As we already mentioned that the gold prices erased its early-day gains, so the reason could also be associated with the positive tone surrounding the equity market, which was possibly backed by the hopes of a much-awaited fiscal package from the US. The US Senate Majority Leader Mitch McConnell said that the Senate Republicans would shortly introduce a new coronavirus relief program. The optimism over the coronavirus vaccine overshadowed the rising virus concerns and supported the S&P 500 futures.

However, the long-lasting US-China tussle and growing market worries about the ever-increasing number of coronavirus cases kept the investors cautious, which boosted the demand for safe-haven assets. If talking about US-China on-going war, the relationship between the world’s two largest economies (US-China) worsens day by day. China ordered the US to close its office in Chengdu in return of the US earlier move to close china’s office in Houston, which eventually exerted downside pressure on the global risk sentiment. It pushed investors to take a position on traditional safe-haven assets, including gold. Additionally, the fears of a full-fledged tussle between the world’s top two economies picked up further pace amid the US blamed China for the COVID-19 pandemic.


On the technical side, the gold may find resistance at 1,935 level and closing of candles below 1935 can extend selling in the metal. On the lower side, the support stays at 1910 level today.

Entry Price – Sell 1929.02

Stop Loss – 1935.02

Take Profit – 1923.02

Risk to Reward – 1:1
Profit & Loss Per Standard Lot = -$600/ +$600

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

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

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

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

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Forex Signals

USD/JPY Violates 105.375 Support – Quick Update on Forex Signal!  

The USD/JPY currency pair failed to stop its previous week’s losing streak and dropped further below mid-105.00 marks mainly due to the broad-based U.S. dollar weakness, triggered by the worries that the resurgence in cornonavirus cases in the United States could undermine the recovery in the world’s biggest economy, which eventually pushed the U.S. Treasury bond yields down and contributed to the currency pair losses. 

The USD/JPY currency pair failed to stop its previous week’s losing streak and dropped further below mid-105.00 marks mainly due to the broad-based U.S. dollar weakness, triggered by the worries that the resurgence in cornonavirus cases in the United States could undermine the recovery in the world’s biggest economy, which eventually pushed the U.S. Treasury bond yields down and contributed to the currency pair losses. 

The USD/JPY currency pair failed to stop its previous week’s losing streak and dropped further below mid-105.00 marks mainly due to the broad-based U.S. dollar weakness, triggered by the worries that the resurgence in cornonavirus cases in the United States could undermine the recovery in the world’s biggest economy, which eventually pushed the U.S. Treasury bond yields down and contributed to the currency pair losses. 

On the other hand, the concerns about worsening US-China relations underpinned the safe-haven Japanese yen, which exerted an additional burden on the currency pair. Currently, the USD/JPY currency pair is currently trading at 105.41 and consolidating in the range between 105.39 – 106.06.

The tensions between the world’s two largest economies escalated further last week after the Dragon Nation countered for being expelled from the Chinese consulate in Houston and ordered the U.S. to close its office in Chengdu in return. The U.S. Secretary of State Mike Pompeo called for “a new alliance of democracies” to oppose China’s “new tyranny”. However, these gloomy worries overshadowed the latest optimism over a potential vaccine for the highly contagious coronavirus disease and weighed on the risk sentiment. This, in turn, benefited the Japanese yen perceived safe-haven status against its American counterpart.

Apart from this, the second wave of coronavirus outbreak in the U.S. dampened prospects for a swift turnaround for the U.S. economy, witnessed by the declines in the U.S. Treasury bond yields. The United States crossed 4 million officially recorded Covid-19 cases and covered a significant part of that recorded in just the last 15 days. Almost 1,000 above people died each day between Tuesday and Friday in the U.S. whereas, there were also a near-record 74,000 new cases on Friday. California, with a community of almost 40 million, about twice Florida’s, is now the worst-hit state, nearing 450,000 cases. Globally, the number of coronavirus infections has now crossed 16 million, as per the Johns Hopkins University report.

At the USD front, the broad-based U.S. dollar remained depressed and reported losses on the day due to record rise in the daily count of COVID-19 cases and escalated U.S.-China tensions over the latest disagreement between the two countries. However, the losses 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 slipped 0.47% to 93.933 by 12:15 AM ET (05:15 AM GMT), continuing its slide from Friday. 

Across the Pound, the losses in the currency pair could also be associated with BOJ’s optimistic comments on the economy that Japan’s economy may improve in the latter half of this year if coronavirus shows any slowing sign down. However, these comments also played a minor role in stronger Japanese yen.

The market players will keep their eyes on the U.S. economic docket, which will show the announcement of Durable Goods Orders later during the early North American session. In the meantime, investors will also keep their eyes on the broader market risk sentiment, which could play a key role in influencing the currency pair’s intraday momentum.


The USD/JPY is breaking below 105.375 support level, which can lead it’s prices further lower toward 104.866. On the 2 hour timeframe, the USD/JPY is trading within a downward channel, which can extend further selling in the pair. Recently, the USD/JPY has closed a bearish engulfing candle, which is suggesting odds of selling until 104.866 level. Check out a quick trade plan below…

Entry Price – Sell 105.607

Stop Loss – 106.007

Take Profit – 105.207

Risk to Reward – 1:2
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

Overbought EUR/USD Ready for Bearish Correction – Quick Trading Signal! 

The EUR/USD pair was closed at 1.16543 after placing a high of 1.16579 and a low of 1.15810. The EUR/USD pair extended its 6th-day bullish rally and rose above 1.16500 level on Friday amid the broad-based U.S. dollar weakness. 

The EUR/USD pair was closed at 1.16543 after placing a high of 1.16579 and a low of 1.15810. The EUR/USD pair extended its 6th-day bullish rally and rose above 1.16500 level on Friday amid the broad-based U.S. dollar weakness. 

The EUR/USD pair was closed at 1.16543 after placing a high of 1.16579 and a low of 1.15810. The EUR/USD pair extended its 6th-day bullish rally and rose above 1.16500 level on Friday amid the broad-based U.S. dollar weakness. 

The declines in greenback boosted the currency pair EUR/USD as the marginal gains in the U.S. dollar failed to retain their position. Moving on, the German IFO survey for June is scheduled to release later today at 0800 GMT. The headline IFO Business Climate Index is seen improving to 89.3 versus 86.2 previously.

From the forecasted view, the Current Assessment sub-index will likely reach 85.0 this month, while the IFO Expectations Index – indicated firms’ projections for the next six months – is likely to come in at 93.7 in the reported month vs. 91.4 last.

While introducing the German business sentiment index, this data is normally released by the CESifo Group, which is closely followed as an early indicator of Germany’s current conditions and business expectations. However, the Institute surveys more than 7,000 enterprises to assess the business situation and their short-term planning. The positive economic growth is seen as bullish movements for the shared currency; likewise, low figures are considered as negative (or bearish).

Investors will be will keeping their focus on the USD price dynamics and coronavirus headlines, which could play a key role in influencing the intraday momentum for the gold. The Durable Good Orders release and German IFO survey for June will be key to watch. Additionally, the U.S. stimulus progress will be closely observed ahead of the U.S. Federal Reserve (Fed) monetary policy decision, which is due to happen on Wednesday.


The EUR/USD traded sharply bullish amid weaker dollar to trade at 1.1704 level, and closing below 1.1730 resistance level can trigger selling until 1.1685 level today. On the lower side, the pair may gain support at 1.1686 level. A bullish breakout of the 1.1730 level can extend the buying trend until the 1.1788 level. While the violation of 1.1685 can lead to EURUSD prices towards 1.1589 level. Check out the trade plan below… 

Entry Price – Sell 1.17056

Stop Loss – 1.17456

Take Profit – 1.16656

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, July 27 – Top Trade Setups In Forex – U.S. Durable Goods In Hightlights! 

On the news side, eyes will remain on the German Business Climate, and the U.S. durable good as these have the potential to drive movement in the market gold and US-related pairs. Check out the trading plans below.

On the news side, eyes will remain on the German Business Climate, and the U.S. durable good as these have the potential to drive movement in the market gold and US-related pairs. Check out the trading plans below.

On the news side, eyes will remain on the German Business Climate, and the U.S. durable good as these have the potential to drive movement in the market gold and US-related pairs. Check out the trading plans below.

Economic Events to Watch Today  



    

EUR/USD – Daily Analysis

The EUR/USD pair was closed at 1.16543 after placing a high of 1.16579 and a low of 1.15810. The EUR/USD pair extended its 6th-day bullish rally and rose above 1.16500 level on Friday amid the broad-based U.S. dollar weakness. The declines in greenback boosted the currency pair EUR/USD as the marginal gains in the U.S. dollar failed to retain their position.

The U.S. Dollar Index raised to 94.80 level but turned to the downside after dropping to 94.40 level, the lowest since September 2018. The U.S. dollar currency was unable to stabilize as its weakness remained in place.

The main driver behind Friday’s rally in the EUR/USD pair was the U.S. dollar’s weakness. However, the economic data also supported this upside movement in currency pair.

At, 12:15 GMT, the French Flash Services PMI for July rose to 57.8 against the expectations of 52.3 and supported EUR. The French Flash Manufacturing PMI for July dropped to 52.0 from the projected 53.1. At12:30 GM, the German Flash Manufacturing PMI raised to 50.0 from the 48.0 of expectations, and Flash Services PMI also raised to 56.7 from the anticipated 50.4.

At 13:00 GMT, the Flash Manufacturing PMI for whole bloc also rose to 51.1 from the anticipated 50.0, and the Flash Services PMI for whole bloc reached 55.1 in July from the expected 51.0. At 17:55 GMT, the Belgian NBB Business Climate dropped by 13.9 points against the expected drop by 14.3 points, and it also supported Euro as the business climate showed improvement.

On the flip side, the Flash Manufacturing PMI from the U.S. was released at 18:45 GMT. The figure dropped to 51.3 from the anticipated 52.0. The Flash Services PMI from the U.S. also declined to 49.6 from the expected 51.0 in July. The better than expected PMI data from Europe indicated that manufacturing and services activities were improved in Europe, giving strength to EUR. Whereas, the poor than expected data from the U.S. weakened the U.S. dollar when its PMI dropped in July.

The better economic condition and business climate of the European Union could be attributed to the latest approval of a massive stimulus package by the European Union. And the U.S.’s poor economic condition indicated that the U.S. was still suffering and struggling against coronavirus.

The U.S. marked the second day with 70,000 plus new cases of coronavirus and deaths more than 1000 in 24 hours on Saturday. The total number of infections in the U.S. reached 4.1 M, and the fatalities reached 145,324.

The mounting numbers in infected people will likely weigh on the U.S. economy and its currency for a longer period, and the weakness in gold is likely to remain persistent. So, another rally in EUR/USD on Monday is expected unless news suggested otherwise.

Daily Technical Levels

Support Resistance

1.1640     1.1659

1.1629     1.1667

1.1621     1.1678

Pivot point: 1.1648

EUR/USD– Trading Tip

The EUR/USD traded sharply bullish amid weaker dollar to trade at 1.1704 level, and closing below 1.1730 resistance level can trigger selling until 1.1685 level today. On the lower side, the pair may gain support at 1.1686 level. A bullish breakout of the 1.1730 level can extend the buying trend until the 1.1788 level. While the violation of 1.1685 can lead to EURUSD prices towards 1.1589 level. 

GBP/USD – Daily Analysis

The GBP/USD closed at 1.27945 after placing a high of 1.28034 and a low of1.27168. Besides, the trading of the GBP/USD pair remained bullish throughout the day. The GBP/USD pair gained on Friday and extended its bullish streak of the 6th consecutive day on Friday amid better than expected U.K. data and broad-based U.S. dollar weakness.

Despite U.K. data coming in favor of local currency, the other factor involved in the rally of GBP/USD pair was the U.S. dollar’s weakness. The greenback has failed to recover as U.S. yields were low and looking for support. Since March, the U.S. Dollar Index fell and posted the fifth weekly decline in a row with the worst performance. The index dropped below 94.5 level that is lowest since September 2018.

Sterling was high on the board as the macroeconomic data related to PMI for July from the U.K. rose from expectations. AT 13:30 GMT, the Flash manufacturing PMI for July rose to 53.6 against the expectations of 52.0 and supported GBP. The Flash Services PMI for July also raised to 56.6 from the expected 51.4 and supported GBP. At 11:00 GMT, the Retail Sales from the U.K. was raised by 13.9% from the expected 8.3% and supported GBP. The better than expected PMI and Retail Sales data from Great Britain helped GBP/USD to post gains and trade higher.

The U.S. Manufacturing PMI dropped to 51.3 from the expected 52.0, and the Flash Services PMI from the U.S. also dropped to 49.6 from the expected 51.0 in July. This added in the U.S. dollar weakness on board and supported the gains in GBP/USD pair on Friday.

Meanwhile, the U.S. dollar weakness was further bolstered by the rising coronavirus cases across the states. The U.S. marked the second day with 70,000 plus new instances of coronavirus and deaths more than 1000 in 24 hours on Saturday. The total number of infections in the U.S. touched 4.1 M, and the death toll reached 145,324.

The hopes that the U.S. economy will take a long period to recover from the coronavirus crisis as it hit hardest the U.S. States kept weighing on the U.S. dollar. The U.S. Dollar drops across the board pushed the pair above the 1.2800 level, and analysts believe that if the dollar’s weakness remained still, the GBP/USD pair could reach the 1.3000 level.

The British Pound was also backed by the decreasing number of coronavirus cases in the U.K. It means that restrictions will be gradually removed, and these hopes supported Pound.

On Brexit front, the latest round of negotiations ended on Thursday without significant progress on the post-Brexit trade deal. Britain’s chief Brexit negotiator David Frost said that they would not reach a preliminary agreement by the UK PM Boris Johnson’s July deadline. However, although the expectations for striking a deal are very less, it could not lose attention. Next week, the Brexit talks, U.S. stimulus package, and the infection cases in the U.S. will be key to watch.

Daily Technical Levels

Support Resistance

1.2782      1.2803

1.2771      1.2813

1.2762      1.2824

Pivot point:1.2792

GBP/USD– Trading Tip

The GBPUSD is also trading in an overbought region, and now it can drop until 1.2825 level, which marks 23.6% Fibonacci retracement below this the next support will be found around 1.2770. At the same time, resistance stays at 1.2860 and 1.2930. The RSI and MACD are in the bullish region, but they are forming smaller histograms that suggest odds of selling bias. Let’s consider taking buying trade over 1.2760 until 1.2860 level today.  

USD/JPY – Daily Analysis

The USD/JPY was closed at 106.124 after placing a high of 106.902 and a low of 105.679. The USD/JPY pair extended its bearish streak for the second day towards the lowest of 2 years amid broad-based U.S. dollar weakness. The strong bearish pressure on the day came in after the souring market sentiment that helped JPY gather strength as a safe haven. The currency pair dropped below 106 level and extended its slide and reached its lowest since mid-March at 105.67.

The risk-averse market sentiment was boosted by the escalating tensions between the U.S. & China. Last week the U.S. sent a short notice to China to halt its consulate in Houston. In retaliation, China closed the U.S. consulate in Chengdu, and the tensions between the U.S. & China escalated. Besides, U.S. Secretary of State Michael Pompeo asked for an end of “engagement,” a policy that has defined US-China relations for nearly five decades. The policy is considered as the most important foreign policy achievement by China in recent history.

The safe-haven Japanese yen gained traction due to its safe-haven status, causing the USD/JPY pair to move in a downward direction. The U.S. Dollar Index dropped by 0.36% to its lowest level since September 2018 at 94.41 level and made the greenback weak across the board. The weak U.S. dollar weighed on the USD/JPY pair and pushed the pair to its two years lowest level.

Furthermore, the macroeconomic data released on Friday also weighed on the USD/JPY pair when Flash Manufacturing PMI from the U.S. dropped to 51.3 level from the anticipated 52.0 in July. The Flash Services PMI also fell to 49.6 level from the projected 51.0 and weighed on the U.S. dollar. At 19:00 GMT, the New Home Sales in June from the U.S. increased to 776K from the expected 700K.

The decreased PMI data from the U.S. could be attributed to the increased number of coronavirus cases from across the U.S. On Saturday, the U.S. marked the second day with 70,000 plus new instances of coronavirus and deaths more than 1000 in 24 hours. The total number of infections in the U.S. rose to 4.1 M, and the death number reached 145,324.

Next week, the FOMC meeting will remain dovish, and the scope for U.S. Dollars will remain on the downside. This will make investors to short USD positions that will cause further decline in the USD/JPY pair.

Daily Technical Levels

Support Resistance

105.85     106.19

105.70     106.36

105.52     106.52

Pivot Point: 106.03

 USD/JPY – Trading Tips

The USD/JPY trades with a selling bias around 105.526 level, trading within a downward channel that provides an immediate resistance at 106.120. On the lower side, the USD/JPY may find support at 105.375 level, and closing of candles below 105.375 can open further selling bias until 104.850. Overall the pair is forming lowers low and lowers high pattern, which signifies selling sentiment among traders. The RSI and MACD suggest selling signals; for instance, the RSI is holding below 50, and the MACD is staying below 104.866. Today, let’s look for sell trade below 105.800. Good luck! 

Categories
Forex Signals

Gold Signal Update – Three Winning Trades In a Row!

Entry Price – Sell 1.15841

Entry Price – Sell 1.15841

The Yellow-Metal Prices Hit The Record High Near $1,950 Marks Due To Multiple Factors – Eyes On Durable Good Orders.

Today in the early Asian trading session, the safe-haven-metal prices extended its one-week bullish rally and succeeded in crossing the last week’s lifetime high above $1,900, having hit the fresh lifetime high 1,944.57 level on the day while represented an 8% month-to-date gain. However, the long recovery rally in the gold prices could be attributed to the escalation of tensions between the world’s two largest economies over the closure of consulates.

On the other hand, the continued rise in the coronavirus cases across the U.S. also weighed on the economic recovery prospects, which undermined the broad-based U.S. dollar and extended further support to the yellow-metal price. The gains in the gold prices were further supported by the aggressive monetary easing used by global central banks to control the coronavirus impact. The yellow metal price is trading at 1,933.97 and consolidating in the range between 1,900.05 and 1,944.57. It is worth noting that the gold prices have gained approximately 25% so far this year.

The long-lasting US-China tussle and growing market worries about the ever-increasing number of coronavirus cases kept the investors cautious, which boosted the demand for safe-haven assets. Talking about US-China on-going war, the relationship between the world’s two largest economies (US-China) has been worsening day by day as China ordered the U.S. to close its office in Chengdu in return of the U.S. earlier move to close china office in Houston which eventually exerted downside pressure on the global risk sentiment and pushed investors to take a position on traditional safe-haven assets, including gold.

Additionally, the fears of a full-fledged tussle between the world’s top two economies picked up further pace amid the U.S. blamed China for the COVID-19 pandemic. At the coronavirus front, the pandemic shows no sign of slowing down and continues to hit the confidence about the economic recovery. The United States crossed 4 million officially recorded Covid-19 cases and covered a significant part recorded in just the last 15 days. Almost 1,000 above people died each day between Tuesday and Friday in the U.S. whereas, there were also a near-record 74,000 new cases on Friday. With a community of around 40 million, California, about twice Florida’s, is now the worst-hit state, nearing 450,000 cases. Globally, the number of coronavirus infections has now crossed 16 million, as per the Johns Hopkins University report. However, the non-stop virus cases continuously affecting global economic growth. This, in turn, the U.S. dollar dropped to 22-month lows and helped the dollar-denominated commodity yellow-metal.

Apart from all these, the yellow-metal prices took an additional strength from the aggressive monetary easing delivered by global central banks to stop the virus impact. In turn, the U.S. Treasury yields dropped amid an unprecedented level of money-printing, which boosted the non-yielding gold.

At the U.S. front, the broad-based U.S. dollar remained depressed and reported losses on the day due to the U.S. saw a record number of daily COVID-19 cases and increased U.S.-China tensions over the latest disagreement between the two countries also weighed on the USD. The losses in the U.S. dollar was further bolstered by sliding U.S. Treasury bond yields, which further boosted the non-yielding yellow metal.

Gold price moves history, hits all-time high around 1,944, and returning to trade at 1,931 level, and it has the potential to decline further unto 1,925 level to achieve retracement. The fresh closing of the one hourly candle is indicating that bulls are weakened, and selling may be observed in gold today. Check out a quick trade plan below.

Entry Price – Sell 1937.4

Stop Loss – 1941.4

Take Profit – 1929.4

Risk to Reward – 1:2
Profit & Loss Per Standard Lot = -$400/ +$800

Profit & Loss Per Micro Lot = -$40/ +$80

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

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

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

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Forex Signals

EUR/GBP Trades Ascending Triangle – Bullish Breakout Eyed! 

The cross-currency pair EUR/GBP traded bullish, adding its moderate gains throughout the early European session. It’s been trading at 0.9113 level, consolidating with a narrow trading range of 0.9130 – 0.9085. 

The cross-currency pair EUR/GBP traded bullish, adding its moderate gains throughout the early European session. It’s been trading at 0.9113 level, consolidating with a narrow trading range of 0.9130 – 0.9085. 

The cross-currency pair EUR/GBP traded bullish, adding its moderate gains throughout the early European session. It’s been trading at 0.9113 level, consolidating with a narrow trading range of 0.9130 – 0.9085. 

The shared currency Euro was underpinned by the series of medium impacted data that came out in favor of the European economy. Yes, I’m referring to the Eurozone upbeat PMI prints. The preliminary announcement recorded that the German manufacturing area reverted to development in July, and the measure jumped to a 19-month high mark of 50.0. Appending to this, the Eurozone Manufacturing PMI grew to 51.1, and the Services PMI soared to 55.1 in July.

On the flip side, the Sterling fought to obtain any significant traction despite Friday’s stronger UK macroeconomic event. The United Kingdom’s monthly retail sales developed to register a surge of +13.9% for June as versus +8.0% forecasted and +12.0% beforehand. The core retail sales held at +13.5% MoM as versus to +7.5% forecasted and +10.2% previous one.


The EUR/GBP pair is consolidating in a narrow trading range of 0.9128 level to 0.9085 level. The upward trendline supports the pair at 0.9085 on the hourly timeframe, and it may cause a bounce off in the EUR/GBP pair later today. Simultaneously, the 50 periods EMA is also supporting the bullish bias in the EUR/GBP pair. But lately, the MACD and RSI figures are entering into the selling bias. Therefore, we need to be very careful with 0.9084 level as a violation of this could trigger sharp selling until 0.9056. Check out a trading plan below…

Entry Price – Buy 0.9124

Stop Loss – 0.9084

Take Profit – 0.9164

Risk to Reward – 1

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

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

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

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

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

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Forex Signals

EUR/USD Testing Triple Top – Is It Worth Shorting The Pair?

The EUR/USD pair continued its bullish streak for the 5th consecutive day on Thursday. They rose above 1.1600 level, amid E.U. Summit’s success & broad-based U.S. dollar weakness in the wake of increasing coronavirus cases in the U.S. However, the gains were limited because of rising safe-haven appeal after the tensions between the U.S. & China escalated over consulate issues.

The EUR/USD pair continued its bullish streak for the 5th consecutive day on Thursday. They rose above 1.1600 level, amid E.U. Summit’s success & broad-based U.S. dollar weakness in the wake of increasing coronavirus cases in the U.S. However, the gains were limited because of rising safe-haven appeal after the tensions between the U.S. & China escalated over consulate issues.

The EUR/USD pair continued its bullish streak for the 5th consecutive day on Thursday. They rose above 1.1600 level, amid E.U. Summit’s success & broad-based U.S. dollar weakness in the wake of increasing coronavirus cases in the U.S. However, the gains were limited because of rising safe-haven appeal after the tensions between the U.S. & China escalated over consulate issues.

The pair was trading in our favor, but unfortunately, the series of PMI figures from the Eurozone economy has driven solid bullish bias for the EUR/USD pair. French business activity expanded at the fastest rate for two-and-a-half years in the month of July, with new work expanded for the first time in five months as further businesses resumed following the coronavirus infection 2019 (COVID-19) lockdown.


Technically, the EUR/USD has traded in a bullish channel, which is providing resistance at 1.1629 level. At the moment, the EUR/USD pair is trading at 1.1609 level, and the continuation of a bullish trend can lead to its prices towards 1.1625 level. Further extension of a bullish trend can lead EUR/USD towards 1.1690 level upon the bullish breakout of 1.1625. Conversely, the bearish breakout below 50 EMA can drive more selling until the 1.1545 level. Here’s a quick trade plan…

Entry Price – Sell 1.15841

Stop Loss – 1.16241

Take Profit – 1.15441

Risk to Reward – 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 Breaks Below Triple Bottom Level – Signal Update!

The USD/CHF remains bearish on Thursday as the downside seems solid, especially upon the breakout of 0.9372 support level. On the lower side, the USD/CHF has the potential to go after 0.9236 level. The demand for Swiss Francs has increased in the wake of safe-haven appeal as the CHF is also considered a safe-haven asset.

The USD/CHF remains bearish on Thursday as the downside seems solid, especially upon the breakout of 0.9372 support level. On the lower side, the USD/CHF has the potential to go after 0.9236 level. The demand for Swiss Francs has increased in the wake of safe-haven appeal as the CHF is also considered a safe-haven asset.

The USD/CHF remains bearish on Thursday as the downside seems solid, especially upon the breakout of 0.9372 support level. On the lower side, the USD/CHF has the potential to go after 0.9236 level. The demand for Swiss Francs has increased in the wake of safe-haven appeal as the CHF is also considered a safe-haven asset.

Tensions between the world’s two largest economies escalated further after the US unexpectedly ordered China to close its consulate office in Houston within 72 hours due to the allegations of interference. In return, China quickly responded and threatened to retaliate with firm countermeasures, which eventually fueled the fears that the on-going conflict could harm the US-China trade deal. Apart from this, US President Donald Trump also decided to use additional measures against the Asian major while imposing a ban on travel to the United States by the 92 million members of China’s ruling Communist Party. This action could invite retaliation against American travel and residency in China. However, the news from Axios also suggested an escalation in the tussle citing the Federal Bureau of Investigation (FBI).

The on-going doubt over the next round of the US fiscal stimulus measures also challenged the risk-on market sentiment. The Republican-majority Senate has been mainly ignoring a $3 trillion relief bill, which was already passed by the Democrat-majority House of Representatives two months ago. The US Treasury Secretary Steve Mnuchin’s initial signal that the US policymakers will be ready to deliver aid package by the end of July got dimmed after the government cited the need for intermediate extension of the unemployment insurance benefits.


Technically, we can capture a selling trade in USD/CHF, especially below 0.9372 level. On the lower side, the USD/CHF can go after 0.9236 level. The 50 periods EMA is supporting bearish bias in USD/CHF pair along with the three black crows pattern, which may lead the USD/CHF pair lower towards 0.9236. Here’s a quick trade plan…

Entry Price – Sell 0.928

Stop Loss – 0.932

Take Profit – 0.924

Risk to Reward – 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, July 23 – Top Trade Setups In Forex – U.S. Unemployment Claims Ahead! 

The market’s fundamental side is a bit busy today as the focus on traders will stay on German GfK Consumer Climate and U.S. Unemployment Claims as these both events have the potential to drive some price action in the market. 

The market’s fundamental side is a bit busy today as the focus on traders will stay on German GfK Consumer Climate and U.S. Unemployment Claims as these both events have the potential to drive some price action in the market. 

The market’s fundamental side is a bit busy today as the focus on traders will stay on German GfK Consumer Climate and U.S. Unemployment Claims as these both events have the potential to drive some price action in the market. 

Economic Events to Watch Today  

   

 

EUR/USD – Daily Analysis

The EUR/USD pair was closed at 1.15701 after placing a high of 1.16012 and a low of 1.15067. Overall the movement of the EUR/USD pair remained bullish throughout the day. On Wednesday, Euro racked up gains against the U.S. dollar and tested 1.16 level on Wednesday after extending its benefits for the 4th consecutive session. The Euro rally of this week could be attributed to the E.U. Summit’s success, where European leaders managed to show consensus on massive stimulus package after four days of discussions.

The second-longest ever E.U. Summit indicated the difficulty in getting the consensus of all E.U. member countries on the E.U. recovery fund. Under the new agreed agreement, the EUR 750 Billion recovery fund will be distributed as EUR 390 Billion in grants and EUR 360 in low0interest loans.

This new agreement represented a compromise between E.U.’s wealthier nations, commonly known as Frugal Four, including Netherland, Denmark, Sweden and Austria, and poor member countries as Italy and Portugal. The former wanted most of the funds distributed as loans versus other wanted the funds as grants. In addition to the recovery fund, the E.U. members also approved a seven-year EUR 1.07 trillion budget.

Euro traders cheered after the E.U. Summit ended successfully, and the pair EUR/USD extended its gains. However, the gains were limited and were dragged by some factors in the late session. Factors included the chance of correction after a strong rally and profit-taking. The deal leaves the E.U. economy that is already suffering from a massive debt which will have to be paid back. The agreement was forced on the wealthier nations of the E.U. that are not very fond of large handouts to developing nations in the E.U. The deep division persisted in the E.U. between rich & developing countries; it has only been papered out for now.

All these factors raised concerns, and investors started getting out of EUR/USD pair in the late session, making gains of the pair short.

A statement by ECB President Christine Lagarde also helped in decreasing the daily gains of EUR/USD on Wednesday as she said that the deal between 27 member countries on 750 billion euro fund to help the bloc’s weaker economies recover from pandemic crisis, “could have been better.”

However, the EUR/USD pair’s gains were supported by the weakness in the U.S. dollar that was prompted after a possible delay in the U.S. fiscal stimulus package was reported. The Senate majority leader, Mitch McConnell, said that he was not expecting the bill for paycheck protection program to be rolled out before two weeks.

U.S. dollar also suffered because of the record-high number of coronavirus cases in the U.S. Even President Donald Trump now changed his tone and rhetoric about the pandemic and said in his speech today that the pandemic will get worse before it gets better. The death toll in the U.S. raised since records on Wednesday to 1,000 and weighed heavily on the U.S. dollar.

The broad-based U.S. dollar weakness further surged after the release of macroeconomic data. The Housing Price Index and Existing Home Sales data both fell short of expectations in May and June respectively and added further in the upward motion if EUR/USD pair.

Daily Technical Levels

Support Resistance

1.1454     1.1572

1.1379     1.1615

1.1335     1.1690

Pivot point: 1.1497

EUR/USD– Trading Tip

The EUR/USD has come out of a bullish channel, which was providing resistance at 1.1509 level. Now, this level has been violated, and it’s likely to provide support. At the moment, the EUR/USD pair is trading at 1.1590 level, and the continuation of a bullish trend can lead its prices towards 1.1605 level. Continuation of a bullish trend can lead EUR/USD towards 1.1646 level as the pair is holding above 50 EMA that supports a bullish bias. Today we should consider taking buying trades over 1.1565 level.

GBP/USD – Daily Analysis

The GBP/USD pair was closed at 1.27348 after placing a high of 1.27435 and a low of 1.26440. Overall the movement of GBP/USD pair remained bullish throughout the grounds. On Wednesday, Sterling came under pressure in the early trading session on the concerns that the U.K. will not reach a deal with the European Union. The Daily Telegraph reported that the U.K. government was working on assuming that trade deal with Europe after the end of the transition period will be conducted on World Trade Organization terms.

The U.K. Government officially reported abandoned hope of striking a Brexit trade deal with the E.U. The latest round of Brexit talks began in London this week, but expectations are that they will end in a deadlock today. Both sides were still at disagreement over fishing rights, the European Court of Justice, governance of the deal, and level playing field guarantees. The negotiations will finish on Thursday.

This weighed on Sterling heavily and the pair GBP/USD after posting gains for three consecutive days, started moving in the opposite direction in the early trading session on Wednesday. The pair GBP/USD even crossed the previous session’s lowest level on the fears of no-deal Brexit hopes.

However, the losing trend in GBP/USD pair was reversed in late session on Wednesday after the release of poor than expected data from the U.S. That further dragged the U.S. dollar and supported the GBP/USD pair. In addition to U.S. dollar weakness, the news about U.K. Prime Minister saying that the U.K. could get back to normal as early as Christmas also supported an upward trend in currency pair.

On the data front, the Housing Price Index from the U.S. for May dropped to -0.3% from the expected 0.3% and weighed on the U.S. dollar. At 19:00 GMT, the Existing Home Sales dropped to 4.72 M from the expected 4.77M and weighed on the U.S. dollar.

The U.S. dollar that was already under pressure due to the increasing number of coronavirus cases and recorded high death numbers because of the virus in the U.S. came under more pressure after the U.S. economic release data. The U.S. economy’s struggle to fight against coronavirus kept the local currency under pressure as the U.S. dollar index also fell below 95.35 level. The weak U.S. dollar also played its part in reversing the GBP/USD pair’s movement on Wednesday.

Meanwhile, Boris Johnson ordered the British army to prepare for a possible four-way crisis this winter involving a second spike in coronavirus, flu outbreak, a chaotic Brexit, and widespread flooding. This news was also behind the losses post by GBP/USD pair on Wednesday.

Daily Technical Levels

Support Resistance

1.2664     1.2782

1.2597     1.2835

1.2545     1.2901

Pivot Point: 1.2716

GBP/USD– Trading Tip

The GBPUSD is also holding in an overbought zone, and now it can drop until 1.2685 level, which marks 23.6% Fibonacci retracement below this the next support will be found around 1.2670 level. At the same time, resistance stays at 1.2730 and 1.2760. The RSI and MACD are in the bullish zone, but they form smaller histograms that suggest odds of selling bias in the market. Let’s consider taking buying trade over 1.2740 until 1.2795 level today.  

USD/JPY – Daily Analysis

The USD/JPY pair was closed at 107.155 after placing a high of 107.286 and a low of 106.707. Overall the movement of the USD/JPY pair remained bullish throughout the day.

The USD/JPY pair hovered near the top end of its daily trading range near the 107 level. Some intraday U.S. dollar rebound supported the uptick in currency pair. However, in the absence of any strong follow-through, the pair remained under pressure amid a combination of negative factors.

The U.S. dollar bulls remained defensive mode as worries about the second wave of the coronavirus infection post threat on economic recovery coupled with the delay in U.S. economic stimulus measure raised investors caution. The Republicans & Democrats have been struggling to reach consensus on a $3 trillion relief fund.

The safe-haven Japanese Yen benefited with the rising concerns about the U.S. & China dispute. The tensions between both nations increased further after the United States abruptly ordered China to close its consulate in Houston.

The U.S. state department spokesman Morgan Ortagus said that the closing consulate order was issued to protect American intellectual property and American’s secret information. China quickly responded and threatened to retaliate with firm measures, raising bars for the possible end of the US-China trade deal.

On the other hand, On Wednesday, the U.S. House of Representatives was set to vote on legislation reversing President Donald Trump’s controversial order to ban entry as immigrants from mostly Muslim-majority countries. The NO BAN Act has broad support from Democratic legislators and was likely to pass the democrat-controlled House despite strong disapproval from Republicans and the White House.

Joe Biden, former Vice President of the U.S., has vowed that if he is elected as president, he will end the Trump’s so-called Muslim travel ban on his first day in office. At 18:00 GMT, the Housing Price Index for May was released on the data front, which showed that the index fell to -0.3% from the anticipated 0.3%. At 19:00 GMT, the Existing Home Sales from the U.S. also plunged to 4.72 M from the projected 4.77M in June and weighed on the U.S. dollar. This capped additional gains in USD/JPY pair on Wednesday.

Daily Technical Levels

Support Resistance

106.22     107.39  

106.47     107.63

106.81     107.97

Pivot point: 107.05

 USD/JPY – Trading Tips

The USD/JPY bounced off to test the previously violated upward trendline of 107.250, as investors seem to sell JPY on the back of increased COVID19 cases in Japan. A bullish breakout of 107.250 level can extend buying until 107.500 level while support continues to hold around 106.930. 

The RSI and MACD suggest opposing signals; for instance, the RSI suggests bullish bias, while the MACD suggests selling. Today, let’s choppy trade session by selling below 107.250 and buying above 106.700 level. Good luck! 

Categories
Forex Market Analysis

Daily F.X. Analysis, July 22 – Top Trade Setups In Forex – COVID19 Boosts Safe Haven!  

On the news side, the Canadian inflation rate will be in highlights, while the U.S. will release its existing home sales, which can drop as people may not have invested in the fixed assets amid covid19. The market can exhibit retracements from yesterday’s price actions.

On the news side, the Canadian inflation rate will be in highlights, while the U.S. will release its existing home sales, which can drop as people may not have invested in the fixed assets amid covid19. The market can exhibit retracements from yesterday’s price actions.

On the news side, the Canadian inflation rate will be in highlights, while the U.S. will release its existing home sales, which can drop as people may not have invested in the fixed assets amid covid19. The market can exhibit retracements from yesterday’s price actions.

Economic Events to Watch Today  

  

 

EUR/USD – Daily Analysis

The EUR/USD pair was closed at 1.15283 after placing a high of 1.15395 and a low of 1.14227. Overall the movement of the EUR/USD pair remained bullish throughout the day. The EUR/USD pair extended its bullish streak for 3rd day and reached the highest level since January 2020 after crossing 1.1500 level. The pair surged based on an agreement on a massive stimulus plan and broad-based U.S. dollar weakness.

The U.S. Dollar Index traded at its lowest since March at 95.37level on Tuesday and posted the third decline in a row. It dragged the U.S. dollar, which ultimately pushed EUR/USD higher. The U.S. dollar was weak due to hopes for a potential second set of the stimulus package from Congress and a rising number of coronavirus cases in the U.S. The broad-based U.S. dollar weakness gave a push to EUR/USD pair prices.

On Europe front, the long-awaited 750 billion euros stimulus package from the European Commission was agreed on by all member countries with some changes in its initial proposal. The 750 Euros worth package included 500 billion for grants and 250 billion for loans, but it was changed to 390 Billion in grants and 360 Billion in loans on Monday.

The agreed package sends tens of billions of euros to countries hardest hit by the virus, most importantly Spain and Italy, that has suffered hardest from the pandemic against its E.U. counterparts.

After the E.U. stimulus plan was approved by its member states, the hopes for E.U. economic recovery, after being hit by the pandemic, raised and boosted risk-on market sentiment in the market. As in result, the risk-perceived Euro currency gained and pushed EUR/USD pair higher.

The risk sentiment in the market was also supported by the hopes of a potential virus vaccine. The trials of coronavirus vaccine from the U.K. and China gave positive results in early-stage tests. Both countries claimed that the vaccine developed by their companies induced an immune response in the studied participants.

The increased risk sentiment after the potential vaccine news added further in the gains of EUR/USD pair. In the absence of any macroeconomic data release on Tuesday, the pair continued to follow the good news reaction and U.S. dollar weakness and reached above 1.1500 level.

Daily Technical Levels

Support Resistance

1.1454    1.1572

1.1379    1.1615

1.1335    1.1690

Pivot point: 1.1497

EUR/USD– Trading Tip

The EUR/USD is trading within a bullish channel, providing resistance at 1.1556 level. Below this, the EUR/USD may find support at 1.1501 level. While the bullish breakout of 1.1556 can lead EUR/USD prices further higher until 1.1613 levels. The MACD and RSI are holding in a bullish zone, and these may drive bearish correction in the market today. Let’s expect selling bias below 1.1550 level today until 1.1500 and 1.1465. 

GBP/USD – Daily Analysis

The GBP/USD pair was closed at 1.27329 after placing a high of 1.27677 and a low of 1.26484. Overall the movement of GBP/USD pair remained bullish throughout the day. The GBP/USD pair extended its bullish rally and rose to its 5-week highest level since June 10 above 1.2700 level. The bullish rally in currency pair was caused by the risk sentiment and broad-based U.S. dollar weakness.

In the absence of any Brexit headline or major macroeconomic data release, the currency pair GBP/USD followed the U.S. dollar’s selling bias and continued its bullish streak for 3rd day. The continuous surge in coronavirus cases in the U.S. raised worries that the economic recovery is expected to take much longer than expected and kept the U.S. dollar bulls defensive. The sentiment was coupled with the optimism in the market about vaccine development and further decreased the safe-haven greenback.

As for the virus vaccine, the leading British drugmaker AstraZeneca and Oxford University revealed that their COVID-19 vaccine induced an immune response in its first clinical trials on humans. Two other potential vaccines, developed by Cansino Biologics in teamwork with China’s military establishment and the German drugmaker Biotech in collaboration with U.S. drugmaker Pfizer, also showed positive results early stages of the trials.

The risk sentiment was again boosted by the potential virus vaccine positive news and lead the pair GBP/USD on the upside. On the data front, the Public Sector Net Borrowing from the U.K. reached 34.8 B against the expected 34.5 B and gave almost null-effect to GBP/USD as it came as expected. On the U.S. front, there was no macroeconomic data on Tuesday.

On the virus front, the British economy has been hit hard by pandemic as last week, the Office for Budget Responsibility forecasted that the U.K. economy would contract between 10.6% -14.3%. However, the Chief Economist, Andy Haldane, maintained the optimistic tone in her speech and said that the economy had recovered about half of the fall seen in March & April after the pandemic. He added that the economy had produced a V-shaped bounce back.

These positive notes by Andy Haldane not only added in the risk sentiment but also pushed the currency pair GBP/USD gains even higher towards a 5-week top level.

Daily Technical Levels

Support Resistance

1.2664     1.2782

1.2597     1.2835

1.2545     1.2901

Pivot Point: 1.2716

GBP/USD– Trading Tip

The GBPUSD is also holding in an overbought zone, and now it can drop until 1.2685 level, which marks 23.6% Fibonacci retracement below this the next support will be found around 1.2670 level. At the same time, resistance stays at 1.2730 and 1.2760. The RSI and MACD are in the bullish zone, but they form smaller histograms that suggest odds of selling bias in the market. Let’s consider taking selling trade below 1.2740 until 1.2675 level today.  

USD/JPY – Daily Analysis

The USD/JPY pair reached under resumed bearish pressure during the U.S. session as another USD selling-wave knocked the markets. Currently, the USD/JPY pair is trading at its weakest level in 5 days at 106.85, losing 0.35% daily. The risk-on market sentiment initially got support from the fresh, upbeat report that Bloomberg has just reported about a COVID-19 vaccine developed; as the Russian Defense Ministry stating that they completed Phase 2 trials, leading First Deputy Defense Minister Ruslan Tsalikov to say the first domestic inoculation is ready for use, the article reads. Also, Japan approved the usage of dexamethasone to be included in Japan’s basket of cures to the pandemic, after earlier passing Gilead’s redelivery for its use. 

However, the vaccine news suggests that the pandemic’s cure is nearby, which favored the risk sentiment. There are approximately 16 other vaccines that are in the progress of clinical trials in Australia, France, Germany, India, South Korea, the U.K., the U.S., and China.

The European Union (E.U.) leaders agreed on late Monday for a possible €1.8 trillion ($2.06 trillion) coronavirus spending package but with some changes in the proposal that was meant to reverse the coronavirus-induced slump in the European economies.

This news boosted the risk-on market sentiment and strengthened the bid tone around riskier assets. An additional boost on the risk sentiment was derived from negotiations for a second stimulus package in the U.S. after the sustained rise in the pandemic cases from the U.S., which increased hopes of America’s Phase 4 stimulus. Consequently, the safe-haven assets are facing boosted demand to expect Japanese yen as Japan is facing an increased number of COVID19 cases. 

Daily Technical Levels

Support Resistance

106.99     107.51

106.74     107.78

106.47     108.03

Pivot point: 107.26

 USD/JPY – Trading Tips

The USD/JPY has violated the symmetric triangle pattern, supporting the pair at 107 levels. Besides, the pair has also dropped below 50 periods EMA, which is suggesting further selling bias in the USD/JPY pair. On the lower side, the USD/JPY is facing support at 106.700 level, and closing of candles above this may drive slight bullish correction until 107 and 107.100 level before it continues with its selling bias. A bearish breakout of 106.700 level can drop until 106.535 level. Good luck! 

Categories
Forex Signals

USD/CAD Broke Below Triple Bottom Support – Let’s Capture Retracement!

During the late European session, the USD/CAD pair exhibited sharp selling to drop below 1.34678 support level. Overall, the movement of the USD/CAD pair remained bearish throughout the day. The USD/Cad pair posted losses on the back of the broad-based US dollar weakness and rising crude oil prices.

During the late European session, the USD/CAD pair exhibited sharp selling to drop below 1.34678 support level. Overall, the movement of the USD/CAD pair remained bearish throughout the day. The USD/Cad pair posted losses on the back of the broad-based US dollar weakness and rising crude oil prices.

During the late European session, the USD/CAD pair exhibited sharp selling to drop below 1.34678 support level. Overall, the movement of the USD/CAD pair remained bearish throughout the day. The USD/Cad pair posted losses on the back of the broad-based US dollar weakness and rising crude oil prices.

The weaker US dollar pushed the USD/CAD pair onto the downside on Monday. The US Dollar Index fell from the 96 levels, close to the 95.85 level, weighing on the greenback. Due to the rising number of coronavirus cases in the US, the US dollar lost its safe-haven status.

The record-high number of COVID-19 cases in the US made the outlook for the US economy gloomy because on one side, the US government was reluctant to re-impose lockdown measures, and on the other side, cases of the virus were increasing day by day.

The US coronavirus death count surpassed the 140,000 level, and the total cases that have appeared in the US have risen to over 3.8M. This jeopardized the US dollar’s safe-haven status, as investors became cautious about investing in the greenback, and started favoring other safer assets.

The US dollar, which was weak across the board, due to the absence of any macroeconomic data, dragged the USD/CAD pair down.

On the other hand, the WTI Crude Oil price broke its bearish bias and posted small gains on Monday, amid hopes for a coronavirus vaccine. The first trials in Britain, which included more than a thousand adults, showed that the vaccine could induce strong antibody production and trigger immune responses against the novel coronavirus.

Separate trials in China, involving more than 500 people, showed that most test persons developed widespread antibody immune responses. This news raised hopes that the virus vaccine was not far away, and that the economies would get back to normal soon, causing the oil demand to surge. The hopes for increased energy demand, triggered by hopes for a virus vaccine, gave crude oil prices a push on Monday.

The WTI Crude Oil price was also up following the US Dollar Index that fell below the 96 levels, to 95.85, weighing on the US dollar. The US dollar and crude oil have a negative correlation, which caused crude oil to remain strong against the US dollar, even on Monday.

The increased crude oil prices gave strength to the commodity-linked Loonie, ultimately adding to the USD/CAD pair’s losses. No macroeconomic data was released on Monday, so the USD/CAD pair continued to follow the coronavirus updates and crude oil movements.


The USD/CAD has violated the triple bottom support level on the 1.350 level, and now, the USD/CAD pair is trading at 1.3450 level. The immediate support stays at 1.3443 level. The formation of a hammer pattern on the hourly chart may help us secure a bullish correction in the USD/CAD pair. On the higher side, the oversold pair has the potential to go after 1.3480 and 1,3504 level. Check out a quick trade plan to follow during the U.S. session. 

Entry Price – Buy 1.3461

Stop Loss – 1.3421

Take Profit – 1.3501

Risk to Reward – 1

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

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

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

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Forex Signals

Gold Enters Overbought Zone – Let’s Capture Quick Retracement!

Entry Price – Buy 1836.78

Entry Price – Buy 1836.78

The safe-haven-metal succeeded in maintaining and extend its gains and traded near the highest level since September 2011 at $1,845. The bullion gains could be attributed to the noise surrounding the record surge in the U.S. coronavirus (COVID-19) cases as fear of virus dampened prospects for a swift economic recovery and continued increasing demand for the safe-haven yellow metal. The broad-based U.S. dollar weakness triggered by the upbeat market mood also impressed gold bulls and kept the gold prices higher.

At the moment, the yellow metal prices are currently trading at 1,840 and consolidating in the range between 1,845.93 and 1,820.24. Elsewhere, the gains in the S&P 500 Futures backed by the hopes of the potential virus vaccine kept a lid on any additional gold prices.

However, the reason behind the upbeat market sentiment could be associated with the hopes for a fiscal rescue package in Europe and the U.S. and progress toward a coronavirus vaccine. Moreover, the risk-on market sentiment was further bolstered by the positive reports about the receding pandemic numbers from the U.S.

The European Union (E.U.) leaders agreed on late Monday for a possible €1.8 trillion ($2.06 trillion) coronavirus spending package but with some changes in the proposal that was meant to reverse the coronavirus-induced slump in the European economies. This news boosted the risk-on market sentiment and strengthened the bid tone around riskier assets. An additional boost on the risk sentiment was derived from negotiations for a second stimulus package in the U.S., which also exerted pressure on the safe-haven U.S. dollar.

Apart from this, the encouraging data from Oxford University’s coronavirus vaccine and CanSino Biologics’ drug developed in coordination with China’s military research unit also favored the risk-on market sentiment. The intraday positive progress in gold seemed rather unaffected by a modest rebound in the global equity markets.

The latest coronavirus (COVID-19) numbers from Texas and L.A. County showed mild reduction in the pandemic figures compared to the recent high statistics. While both added a total of 10,564 new cases on Monday, Texas remained the worst affected state with 7,404 addition taking the state-wise total to 332,434. On the flip side, there are 159,045 total cases in L.A. County with the latest extra numbers of 3,160.

Apart from the virus woes, the on-going war between the world’s top two economies remained under fire as the U.S. policymakers were set to levy heavy sanctions on China’s ruling party members. This action could push the dragon nation towards rouge retaliation and the fears of which kept a lid on any further optimism in the risk sentiment.

As in result, the broad-based U.S. dollar failed to gain any positive traction and edged lower on the day. However, the losses in the U.S. dollar could be attributed to the uptick in the U.S. stock futures. The losses in the U.S. kept the gold prices higher as the price of gold is inversely related to the price of the U.S. dollar.


Besides the market’s fundamental side, the technical side is now suggesting strong odds of selling bias in gold. Gold prices can take a dip below 1,840 level to complete 38.2% Fibonacci retracement until 1,831 level. Bearish crossover of this level can extend further selling until 1826.78, which marks 61.8% Fibo level today. Check out the trade plan below…

Entry Price – Sell 1836.78

Stop Loss – 1841.78

Take Profit – 1826.78

Risk to Reward – 2

Profit & Loss Per Standard Lot = -$500/ +$1000

Profit & Loss Per Micro Lot = -$50/ +$100

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, July 21 – Top Trade Setups In Forex – Weaker Dollar Sentiment! 

The U.S. dollar continued to struggle because of the previous week’s latest U.S. consumer confidence data release. The less consumer confidence over the U.S. economy weighed on the greenback as the economy struggles to overcome the coronavirus situation. Today, the market is likely to focus on the Canadain retail sales figures, but these may not have any impact on gold and other currency pairs. Technical levels will matter today.

The U.S. dollar continued to struggle because of the previous week’s latest U.S. consumer confidence data release. The less consumer confidence over the U.S. economy weighed on the greenback as the economy struggles to overcome the coronavirus situation. Today, the market is likely to focus on the Canadain retail sales figures, but these may not have any impact on gold and other currency pairs. Technical levels will matter today.

The U.S. dollar continued to struggle because of the previous week’s latest U.S. consumer confidence data release. The less consumer confidence over the U.S. economy weighed on the greenback as the economy struggles to overcome the coronavirus situation. Today, the market is likely to focus on the Canadian retail sales figures, but these may not have any impact on gold and other currency pairs. Technical levels will matter today.

Economic Events to Watch Today  

 

 

EUR/USD – Daily Analysis

The EUR/USD was closed at 1.14473 after placing a high of 1.14676 and a low of 1.14022. Overall the movement of the EUR/USD pair remained bullish throughout the day. The EUR/USD exchange rate extended its gains on Monday and reached the highest level since March 9. The Euro rose against many rival currencies on hopes over a crucial milestone as the Eurozone’s governments showed consensus on a COVID-19 recovery fund. Although lower than the initial proposal of 500 billion euros in grants, the new agreed grant is now 390 billion euros, which is still a significant boost for the Eurozone’s struggling economy. 

On Monday, the European Council President Charles Michel said that he was confident a deal on the bloc’s coronavirus recovery package could be reached after putting forward a new proposal. The latest proposal offered by him provided significant concessions to the so-called frugal four countries, Austria, Denmark, Netherlands, and Sweden. In the new proposal fund, the grants were decreased to 390 Billion euros from the initial 500 billion euros, and the Loans became 360 Billion Euros from 250 billion euros.

In Eurozone economic data, Germany’s Producer Price Index for June fell below consensus at 0% and weighed on single currency Euro. As a result of EUR/USD, pair investors became increasingly concerned about the Euro zone’s largest economy’s ability to recover from the COVID-19 crisis.

On the U.S. front, the U.S. dollar continued to struggle because of the previous week’s latest U.S. consumer confidence data release. The less consumer confidence over the U.S. economy weighed on the greenback as the economy struggles to overcome the coronavirus situation.

Furthermore, the U.S. Congress was set to announce a new stimulus measure as the previous unemployment benefits package will expire at the end of July. The U.S. dollar remained weak because of the investors were looking ahead of the Congress announcement. The weak U.S. dollar added gains in the EUR/USD pair on Monday.

The next day, the U.S. investors will be looking ahead to the release of June’s Chicago Fed National Activity Index. Any improvement in the index will indicate better economic conditions and would prove positive for the U.S. dollar. The single currency euro will continue to be driven by the news surrounding the European Summit’s discussions on the COvid-19 recovery fund. The euro investors will also await Luis De Guindos, the Vice President of the ECB. Any dovish comments from ECB would cut the Euro gains.

Daily Technical Levels

Support Resistance

1.1410     1.1477

1.1372     1.1506

1.1342     1.1544

Pivot point: 1.1439

EUR/USD– Trading Tip

The EUR/USD continues to follow the same technical outlook as before. It has tested the double top resistance at 1.1446 level, and now it’s finding support at 1.1410 level. The upward trendline on the hourly chart is also likely to support the pair around 1.1375 level. Chances of bullish trend seem solid today. Therefore, the bullish breakout of the 1.1445 level can lead the EUR/USD prices towards the 1.1490 level.

GBP/USD – Daily Analysis

The GBP/USD pair closed at 1.26611 after placing a high of 1.26652 and a low of 1.25180. Overall the movement of GBP/USD pair remained strongly bullish throughout the day. The GBP/USD posted its biggest daily gains since June 30 on Monday and recovered all of its previous five day’s losses on the back of positive comments from England’s FPC and JP Morgan.

Cable found its foot against the U.S. dollar on Monday after the JPMorgan Bank said that the UK was the largest capital importer within G10. The Bank added that as the Brexit process was heading to an end of the transition period, the Cable was becoming rather less dependent on general risk sentiment and started to decouple from other high-beta currencies.

The rise in Sterling was further supported by the latest comments from Jonathan Hall, an appointee to the Bank of England’s Financial Policy Committee (FPC) on Monday. According to him, Brexit will make markets less efficient, but it will not be disastrous for Britain’s economy.

Hall said that Brexit would cause fragmentation, inefficiency, and problems with regulations, but it will not be disastrous.

Meanwhile, on Monday, the Bank of England policymaker Silvana Tenreyro said that Britain might avoid an economically damaging loss of skills in its labor market as long as the rise in unemployment does not drag on.

Tenreyro said that uncertainty persisted in the economy related to COVID-19 and that the crisis may even have led some workers to upskill to adapt to new ways of working remotely. She added that as long as the current period of high unemployment remains temporary, the loss in skills would be only limited.

In contrast to this, the Bank of England economist Andy Haldane warned inflation could be a problem after the coronavirus crisis. He insisted that Britain was enjoying a V-shaped recovery and was in the middle of a quick turnaround as the economy recovered about half of the immense fall in output in March & April when the crisis was most intense. Haldane told that the economy had been growing on an average of about 1% a week since May.

The upbeat comments from all the sides surrounding Britain gave a massive push to the GBP/USD prices on Monday. Adding in the currency pair’s gains was the U.S. dollar weakness backed by the increasing number of infected cases in the U.S. U.S. reported a record-high number of infected cases in past days with death tolls crossed 140,000, and the total number of COVID-19 cases reached 3.8 Million.

On the data front, there was no macroeconomic data to be released on the day, and hence, the pair’s movement was followed by the comments related to the U.K. economy and coronavirus headlines.

Daily Technical Levels

Support Resistance

1.2564     1.2713

1.2466     1.2764

1.2415     1.2861

Pivot Point: 1.2615

GBP/USD– Trading Tip

The GBPUSD has violated the triple top resistance level at 1.2660 level, and bullish crossover of this level opens further room for buying until 1.2729, but before this, the Sterling can retrace until 23.6% Fibo level of 1.2645 level. Below this, the next support can be found at the 1.2625 level. Above 1.2625, the GBP/USD can be showing a buying trend. Let’s consider taking buy trades over 1.2615 level today. 

USD/JPY – Daily Analysis

The USD/JPY pair was closed at 107.270 after placing a high of 107.541 and a low of 106.999. Overall the movement of the USD/JPY pair remained bullish throughout the day. The USD/JPY pair rose to 8 days the highest level on Monday on the back of Japan’s risk sliding back into deflation and the rising numbers of coronavirus cases in the U.S.

Bank of Japan released its minutes of June meeting in which the policymakers debated at the risk of the country sliding back into deflation but stopped short of supporting stronger steps to prevent companies from going bankrupt due to coronavirus pandemic.

More companies were facing the risk of insolvency with the impact of coronavirus pandemic likely to last for a prolonged period of time, even if the companies receive immediate liquidity support. But the members of BOJ differentiate on the opinion of injecting capital into firms to help recover and prevent insolvency.

Some members insisted that injected direct capital to save the struggling firms is an action that should come from the government, and few members said that it was the role of BOJ to provide liquidity and also to cooperate with the government while clarifying the respective role.

The Bank of Japan kept its interest rates unchanged in June after easing monetary policy in March and April. Minutes revealed that the Bank maintained its view over the economy as it will gradually recover from the pandemic’s damage.

However, many members showed concern as the pandemic was picking its pace once again. Japan lifted its lockdown measures in late May, and Tokyo has seen a renewed spike in infections lately. Japan has reported over 25,000 cases, including 1,000 deaths. The downbeat comments from the latest issued meeting minutes by Bank of japan pushed the USD/JPY pair higher on Monday.

On greenback front, the currency was down on Monday as the U.S. Dollar Index decreased by 0.6% to 95.85 level. The currency was suffering from its economy’s struggle to fight the coronavirus crisis as the nation was leading in reporting infected cases worldwide.

U.S. figures related to infected people raised to 3.8 Million, and death toll count reached 140,000 making the U.S. the most affected economy by the pandemic. Despite the safe-haven status of U.S. dollar investors, they were getting out of it due to the U.S. economy’s gloomy outlook.

The rising number of cases urged some states to introduce renewed lockdown measures that weighed on economic recovery hopes, and hence, the U.S. dollar became weak. However, the weak U.S. dollar failed to turn USD/JPY’s gains on Monday.

Daily Technical Levels

Support Resistance

106.99     107.51

106.74     107.78

106.47     108.03

Pivot point: 107.26

 USD/JPY – Trading Tips

The USD/JPY is consolidating in a broad trading range of 107.400 – 107, while the overall bias seems neutral at 107.191. The USD/JPY pair has recently crossed over 50 EMA, which extended resistance at 107 level, including now the same level will work as a support. The bearish breakout of the 107 level can extend the selling trend until 106.580. Simultaneously, the bullish breakout of the 107.400 level can extend the buying trend until 107.600. The MACD and RSI support bearish bias, and we may take a selling trade below 107 and buying above the same level today. Good luck! 

Categories
Forex Signals

AUD/USD Double Top Breakout – Quick Update on Buy Signal!

Entry Price – Buy 0.70425

Entry Price – Buy 0.70425

Today in the early European trading session, the AUD/USD currency pair extended its previous session winning streak and rose above mid-0.7000 level while representing 0.45% gains on the day mainly due to the upbeat risk sentiment underpinned the Aussie currency and contributed to the currency pair gains. On the other hand, the currency pair also benefited from the broad-based U.S. dollar weakness triggered by the risk-on market sentiment. In the meantime, the upbeat RBA minutes also exerted some positive impact on the Aussie currency and contributed to the pair gains. On the negative side, Victoria’s recent figures marked a seventh consecutive day of 300+ new cases, which capped the currency pair further upside momentum.

However, the market’s upbeat performance could be attributed to the expectations for a fiscal rescue package in Europe and the U.S. It should be noted that the European Union (E.U.) leaders showed a consensus for a possible €1.8 trillion ($2.06 trillion) coronavirus spending package meant to reverse the coronavirus-induced slump in the European economies.

Apart from this, the encouraging data from Oxford University’s coronavirus vaccine and CanSino Biologics’ drug developed in coordination with China’s military research unit also favored the risk-on market sentiment. The British drugmaker AstraZeneca (LON: AZN) and Oxford University said on Monday that its COVID-19 vaccine induced an immune response in all study participants that received two doses. Whereas, the two other separate vaccines were also developed by Cansino Biologics (HK:6185) alongside China’s military research unit, and German biotech BioNTech (NASDAQ: BNTX) and U.S. drugmaker Pfizer (NYSE:NYSE: PFE).

As in result, the broad-based U.S. dollar flashed red and edged lower on the day. However, the losses in the U.S. dollar could be attributed to the uptick in the U.S. stock futures and kept the currency pair higher. Whereas, the U.S. Dollar Index that tracks the greenback against a basket of other currencies fell 0.16% to 95.623 by 10:09 AM ET (3:09 AM GMT).

In the absence of the major data/events on the day, the market traders will keep their eyes on the USD price dynamics and coronavirus headlines, which could play a key role in influencing the intraday momentum. The MI Leading Index m/m and Retail Sales m/m will be key to watch.


The AUD/USD pair has already hit our take profit levels by the time I’m finishing this update. For now, we may have an opportunity to capture a quick sell position in Aussie below 0.7102 level with a target of 0.7065 level.

Entry Price – Buy 0.70425

Stop Loss – 0.70025

Take Profit – 0.70825

Risk to Reward – 1

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

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

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

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

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

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Forex Signals

USD/CAD Breakout of Upward Channel – Brace for Sell!

The USD/CAD failed to stop its previous meeting, losing streak and dropped to 1.3566 level. However, the declines in the currency pair were completely sponsored by the emergence of some U.S. dollar selling bias in the wake of modest risk-on market sentiment backed by the hopes of heavy stimulus from global policymakers. The weaker oil prices triggered by the continuous surge in COVID-19 cases undermined the commodity-linked currency, the loonie also kept a lid on any additional losses in the currency pair. At this particular time, the USD/CAD currency pair is currently trading at 1.3569 and consolidating in the range between 1.3561 – 1.3600.

The USD/CAD failed to stop its previous meeting, losing streak and dropped to 1.3566 level. However, the declines in the currency pair were completely sponsored by the emergence of some U.S. dollar selling bias in the wake of modest risk-on market sentiment backed by the hopes of heavy stimulus from global policymakers. The weaker oil prices triggered by the continuous surge in COVID-19 cases undermined the commodity-linked currency, the loonie also kept a lid on any additional losses in the currency pair. At this particular time, the USD/CAD currency pair is currently trading at 1.3569 and consolidating in the range between 1.3561 – 1.3600.

The USD/CAD failed to stop its previous meeting, losing streak and dropped to 1.3566 level. However, the declines in the currency pair were completely sponsored by the emergence of some U.S. dollar selling bias in the wake of modest risk-on market sentiment backed by the hopes of heavy stimulus from global policymakers. The weaker oil prices triggered by the continuous surge in COVID-19 cases undermined the commodity-linked currency, the loonie also kept a lid on any additional losses in the currency pair. At this particular time, the USD/CAD currency pair is currently trading at 1.3569 and consolidating in the range between 1.3561 – 1.3600.

Despite the heightened concerns of the increasing number of confirmed coronavirus cases across the world, the investors continued cheering the hopes about the coronavirus vaccine, which overshadowed the fears of the virus’s ever-increasing numbers. Moreover, the modest risk-on market sentiment was further bolstered by the fresh COVID-19 stimulus measures from the global policymakers, which are expected to deliver in the week.

However, the traders did not give any major attention to the concerns over the further deterioration in relations between the world’s two largest economies. The U.S. President Donald Trump was considering to impose travel restrictions on all members of the Chinese Communist Party. 

At the crude oil front, the WTI crude oil prices remain depressed and flashed mixed signals around 40.25 levels as concerns about the continuous surge in COVID-19 cases could halt fuel demand recovery. However, the crude oil losses, which undermined the commodity-linked currency the loonie, helped limit losses for the pair. The traders will keep their eyes on the USD price dynamics and coronavirus headlines, which could play a key role in influencing the intraday momentum. As well as, the traders will keep their eyes on the news concerning U.S.-China. 


The USD/CAD is trading with a selling sentiment at 1.3590 level, testing a support level of 1.3590 level. The recent candle closing is bearish engulfing, which suggests that there are still odds of bearish trend continuation, and if this happens, the pair can drop to 1.3550 level. Below this, the next support level is expected to go after the 1.3490 level. Let’s look for selling trades below 1.3620 level today. 

Entry Price – Sell 1.35646

Stop Loss – 1.36046

Take Profit – 1.35246

Risk to Reward – 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, July 20 – Top Trade Setups In Forex – E.U. Economic Summit Ahead

On the news front, the market seems to be muted due to a lack of high impact on economic events. The Eurozone’s German Buba report and current account data will remain in focus, but I highly doubt if this will drive any market movement.

On the news front, the market seems to be muted due to a lack of high impact on economic events. The Eurozone’s German Buba report and current account data will remain in focus, but I highly doubt if this will drive any market movement.

On the news front, the market seems to be muted due to a lack of high impact on economic events. The Eurozone’s German Buba report and current account data will remain in focus, but I highly doubt if this will drive any market movement.

Economic Events to Watch Today 

 

 

EUR/USD – Daily Analysis

The EUR/USD pair was closed at 1.14248 after placing a high of 1.14434 and a low of 1.13750. Overall the movement of the EUR/USD pair remained bullish throughout the day. The EUR/USD pair edged higher on Friday and rose near 1.145 level on the increased hopes for further progress on the European Union’s 750 billion euros recovery fund. As a result, the EUR/USD pair traders became optimistic that Eurozone’s economy could be on the road to recovery.

Traders expected some progress in the 2-day Summit even though the German Chancellor Angela Merkel was downbeat about a consensus between E.U. leaders over the recovery fund. She said that the differences were too large to predict that a positive result will reach this time. She added that though it would be desirable, we must be realistic. She said that to reach an agreement, a great deal of willingness to compromise was required, demanding very difficult negotiations.

Meanwhile, on the data front, at 14:00 GMT, the Final CPI from the Eurozone for the year in June came in line with the expectations of 0.3%. The Final Core CPI for the year also remained as expected, 0.8% from the Eurozone. From the U.S. side, the TIC Long-Term Purchases for May came in as 127 B compared to April’s -130.8B. At, 17:30 GMT, the Building Permits in June dropped to 1.24M against the expected 1.30M and weighed on the U.S. dollar. The Housing Starts, however, came in line with the expectations in June as 1.19M.

At 19:00 GMT, the Prelim UoM Consumer Sentiment for July dropped to 73.2 against the expected 79.0 and weighed on the U.S. dollar. The Prelim UoM Inflation Expectations in July increased to 3.1% from the previous 3.0%. The poor than expected data from the United States on Friday pushed the already rising EUR/USD pair.

Further weighing on the greenback was the escalating tensions between U.S. & China trade relations after US Trump’s administration was considering a blanket ban on all Chinese Communist Party members to the U.S.. This news made the markets cautious, and investors became seriously concerned over the economic recovery.

The greenback came under pressure due to its struggles against fighting the pandemic and coping with the increased number of unemployment claims that came in as 1.3M in recent weeks. The weak U.S. dollar helped the EUR/USD pair to gain its strength in the market.

Daily Technical Levels

Support Resistance

1.1355     1.1428

1.1326     1.1472

1.1282     1.1501

Pivot point: 1.1399

EUR/USD– Trading Tip

The EUR/USD has tested the double top resistance at 1.1446 level, and now it’s finding support at 1.1410 level. The upward trendline on the hourly chart is also likely to support the pair around 1.1375 level. Chances of bullish trend seem solid today; therefore, the bullish breakout of 1.1445 level can lead the EUR/USD prices towards 1.1490 level.

GBP/USD – Daily Analysis

The GBP/USD pair was closed at 1.25645 after placing a high of 1.25742 and a low of 1.25115. Overall the movement of GBP/USD pair remained bullish throughout the day. On Friday, Bank of England’s Governor, Andrew Bailey, said that Britain’s economy was starting to recover from its coronavirus lockdown induced crisis, but some job-intense sectors remained weak. He also added that the long-term outlook for the country remained unclear as well.

During a webinar organized by the central bank, Bailey said that the visible activity return could mean the beginning of the recovery. There were signs of activity returning in the Housing market and new car sales but not in hospitality and entertainment that employ many people.

The Governor also warned against the optimism of his chief economist Andy Haldane who has declared that there would be a V-shaped recovery in the economy post Coronavirus. He said that rebound would depend on people’s return to work and go shopping and dining out. He also said that recovery would depend on the progress of medical companies in finding cures and vaccines for the COVID-19 and also the impact of the second wave.

Earlier this week, Britain’s budget forecasters said that economy could shrink by more than 14% this year if there will be lasting damages by the pandemic. The British Pound continued to grind sideways on Friday as Governor Bailey provided gloomy comments, and traders became cautious. However, the U.S. dollar’s weakness kept the GBP/USD pair on the higher track.

On Friday, at 17:30 GMT, the Building Permits from the U.S. for May dropped to 1.24M against the expected 1.30M and weighed on the U.S. dollar. The Housing Starts, however, came in line with the expectations of 1.19M. At 19:00 GMT, the Prelim UoM Consumer Sentiment was dropped to 73.2 from the expected 79.0 and weighed on the U.S. dollar. 

Due to poor than expected macroeconomic data, the weak U.S. dollar caused a surge in GBP/USD prices on Friday in the absence of any macroeconomic data from Britain. Meanwhile, on Friday, the U.K.’s 38 Billion Dollars’ worth Stimulus package announced by Rishi Sunak came under fire after the opposition Labour Party called on the country’s spending watchdog to open an investigation over it.

Daily Technical Levels

Support Resistance

1.2505     1.2610

1.2459     1.2671

1.2399     1.2716

Pivot Point: 1.2565

GBP/USD– Trading Tip

The GBP/USD is trading with a selling bias at 1.2550 level, holding right above the support level of 1.2548 level. Downward breakout of 1.2548 level can extend selling until 1.2506 and 1.2479 support. The MACD and RSI both are supporting a bearish bias. On the upper side, the GBP/USD can face resistance at 1.2575 and 1.2595. Let’s consider taking Sell trades below 1.2533 level today. 

USD/JPY – Daily Analysis

The USD/JPY pair was closed at 107.021 after placing a high of 107.359 and 106.938. Overall the movement of the USD/JPY pair remained bearish throughout the day. The U.S. dollar was marginally lower in early European trade hours on Friday as traders looked past the resurgence in coronavirus cases worldwide and the need for a safe-haven. The U.S. dollar’s focus was on the likelihood of more fiscal stimulus ahead rather than on its safe-haven status.

According to Johns Hopkins University data, the number of coronavirus cases rose to 13.84 million globally. On Thursday, the United States reported almost 77,000 new cases that raised economic recovery concerns.

The sharp increase in the central bank’s stimulus packages to protect economies from the consequences of the pandemic has weighed on the U.S. dollar. The U.S. reported 71,558 new COVID-19 cases on Saturday and made its second day in a row to post more than 70,000 cases, according to Johns Hopkins University. The average daily rise in cases improved by 18.34% as compared to one week ago.

The increasing number of cases urged U.S. lawmakers to partially shut the economies again to control the spread of the virus. This raised fears that economies will suffer from the re-imposed restrictions and calls for more stimulus packages emerged. The need for more stimulus packages from the U.S. and across the globe to save the economy for coronavirus induced lockdowns weighed on the U.S. dollar that dragged the USD/JPY pair on Friday.

On the flip side, there were also reports on the weekend that Trump’s administration was trying to block billions of dollars in an upcoming coronavirus relief fund that was allocated to states for conducting tests and contact tracing. Reports also suggested that Trump’s administration was also blocking the amount of 5 billion that was to be allotted to the Centers for Disease Control and Prevention.

Furthermore, the New York Federal Reserve President John Williams said that it could take a few years for the U.S. economy to recover from the pandemic, and it was not yet the time to think about rising interest rates. The long-lasting decreased interest rates also weighed on the U.S. dollar and kept the pair USD/JPY prices under pressure.

On the data front, at17:30 GMT, the Building Permits fell to 1.24M from the expected 1.30M and weighed on the U.S. dollar. The TIC Long-Term Purchases for May came in as 127 B in comparison to April’s -130.8B. At 19:00 GMT, The Prelim UoM Consumer Sentiment for July also declined to 73.2 from the anticipated 79.0 and weighed on the U.S. dollar. The Prelim UoM Inflation Expectations in July rose to 3.1% from the previous 3.0%.

The poor than expected macroeconomic data from the U.S. weighed on the USD/JPY pair and dragged the pair below the 107 level.

Daily Technical Levels

Support Resistance

106.93    107.51

106.59    107.75

106.35    108.09

Pivot Point: 107

 USD/JPY – Trading Tips

The USD/JPY is consolidating in a broad trading range of 107.400 – 107, while the overall bias seems neutral at 107.191. The USD/JPY pair has recently crossed over 50 EMA, which extended resistance at 107 level, including now the same level will work as a support. The bearish breakout of the 107 level can extend the selling trend until 106.580. 

Simultaneously, the bullish breakout of the 107.400 level can extend the buying trend until 107.600. The MACD and RSI support bearish bias, and we may take a selling trade below 107 and buying above the same level today. Good luck! 

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Forex Signals

AUD/USD Trades Descending Triangle – 50 EMA Crossover Plays!

The AUD/USD currency pair extended its early-day gains and rose to a session high closer to the 0.7000 regions. However, the reason for the bullish bias in the currency pair could be attributed to the modest upbeat trading sentiment backed by the vaccine success, which underpinned the perceived riskier Australian dollar and contributed to the currency pair gains.

The AUD/USD currency pair extended its early-day gains and rose to a session high closer to the 0.7000 regions. However, the reason for the bullish bias in the currency pair could be attributed to the modest upbeat trading sentiment backed by the vaccine success, which underpinned the perceived riskier Australian dollar and contributed to the currency pair gains.

The AUD/USD currency pair extended its early-day gains and rose to a session high closer to the 0.7000 regions. However, the reason for the bullish bias in the currency pair could be attributed to the modest upbeat trading sentiment backed by the vaccine success, which underpinned the perceived riskier Australian dollar and contributed to the currency pair gains.

The mild positive tone around the global equity markets undermined demand for the safe-haven U.S. dollar and prolonged some support to the perceived riskier Australian dollar. However, the risk-on market sentiment was being supported by the success of the vaccine. Although, the hopes of vaccine success increased after Moderna’s potential vaccine produced a “robust” immune response in all 45 patients in its early-stage human trials, providing more promising data that the vaccine may give some protection against the coronavirus. Moreover, the risk-on market sentiment was further supported by the hope of additional stimulus by governments worldwide, partly which overshadowed concerns about the ever-increasing coronavirus case and worsening US-China relations.

Talking about the worsening relation among the world’s top two economies, the U.S. policymakers are considering imposing a travel ban on all Chinese Communist Party members. As per the White House Chief of Staff, Mark Meadows, the Trump administration is studying national security risks of TikTok, WeChat, and other apps that allow a foreign adversary to gather information on users. These U.S. statements could fuel tensions between China & U.S. disputes and weigh on AUD/USD currency pair.

As per data from Johns Hopkins University, in the latest numbers, more than 13.5 million people across the world have been diagnosed with COVID-19. However, the virus-related report has raised concerns among investors that the virus was far from over, and these concerns dampened hopes of economic recovery. The coronavirus concerns considered as one of the key factors that capped the currency pair further gains.

In the absence of the major data/events on the day, the market traders will keep their eyes on the USD price dynamics and coronavirus headlines, which could play a key role in influencing the intraday momentum. The traders will keep their eyes on the virus updates and news concerning China. Though, the U.S. Michigan Consumer Sentiment Index, expected 79.00 against the previous 78.1, could offer intermediate moves.


The AUD/USD has crossed below 50 periods EMA at a level of 0.6975, and below this, the next support is expected to be found around a level of around 0.6960. Since the AUD/USD has formed a downward channel, we can expect a bearish breakout in the pair, leading Aussie dollar towards the next support area of 0.5950 and 0.5935. But in any case, the bullish breakout of 0.6993 level will be bad for our signal, and we may end up at stop loss. Check out the signal below…

Entry Price – Sell 0.69808

Stop Loss – 0.70208

Take Profit – 0.69408

Risk to Reward – 1

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

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

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