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Forex Market Analysis

Daily F.X. Analysis, May 05 – Top Trade Setups In Forex – Buckle Up for Seris of U.S. Events! 

On the forex front, the ICE U.S. Dollar Index marked a day-low of 98.64 Friday before paring losses to close flat at 99.08. Research firm Markit will publish final readings of April Manufacturing PMI for the Eurozone (33.6 expected), Germany (34.4 expected), France (31.5 expected). The Eurozone Sentix Investor Confidence Index for May will be released (-28.0 expected). The Commerce Department will report March factory orders (-9.4% on month expected) and final readings of durable goods orders (-14.4% on month expected).

Economic Events to Watch Today

EUR/USD – Daily Analysis

Today in the early Asian session, the EUR/USD currency pair struggling to break a bearish channel around 1.09 after the registered biggest daily drop by 0.67% to 1.0899 level in over a month on Monday due to broad-based U.S. dollar strength.

The GDP of the Eurozone dropped 3.8% in this quarter from the previous 14.4%. The ECB expects a 5% – 12% contraction in Eurozone’s economy this year. The International Monetary Fund (IMF) has forecasted the same Eurozone’s economic contraction as 5%, which was in line with the ECB’s projection. The ECB Vice President Luis de Guindos said in April that he expected a worse recession to be faced by the European economy than the rest of the world.

At 13:30, the Sentix Investor confidence showed a massive decline in the economic conditions of Europe by -41.8 against the expected -25.9. It showed that investors and traders had lost confidence in the European economy, and it weighed heavily on EUR/USD pair on Monday.

On the other hand, the economic data from the United States came in worse than expected. 

The Factory Orders dropped to a record of 10.3% during the month of March against the forecasted 9.7% decline. However, in contrast to the economic data, the U.S. Dollar Index remained strong during Monday when it gained about 0.4% and it to 99.59 level, which is the highest since Thursday. The key factor will be the NFP data on Friday this week, and investors will be looking forward to it.

Daily Support and Resistance

  • R3 1.0927
  • R2 1.0921
  • R1 1.0912
  • Pivot Point 1.0906
  • S1 1.0896
  • S2 1.0891
  • S3 1.0881

EUR/USD– Trading Tips

On Thursday, the EUR/USD price trading sharply bearish falling 1.0880 level after violating the ascending trendline on the 4-hour timeframe. On the 4 hour chart, the EUR/USD has formed a strong bearish engulfing candle, which is suggesting selling bias among traders. Typically such a pattern shows that buyers are exhausted, and sellers may dominate the market. On the lower side, the EUR/USD may find next support around 1.0835 level and violation of which can open further room for selling until 1.07600 level. 

GBP/USD – Daily Analysis

The GBP/USD currency pair stopped its 2-day bearish rally and took modest bids near the 1.2465 while representing 0.15% gains on the day, having hit the intraday high of 1.2471 mainly due to recovery in the risk sentiment in the financial market. The U.S. dollar is losing its bullish traction, which eventually keeps the currency pair supportive.

Currently, the GBP/USD is currently trading at 1.2468 and consolidates in the range between the 1.2431 – 1.2471. However, the traders are cautious about placing any position due to nervous sentiment ahead of the UK-US trade talks and the final reading of British Services PMI for April.

Moreover, the outlook for GBP looks more pessimistic, given the extent of the loss faced by the coronavirus pandemic by the city. Another reason included in the pessimistic view for GBP outlook included the U.K. government’s attitude towards the extension of the Brexit negotiation period as well as the potential of Britain for a cautious reversal of economy after lockdown.

The drop of GBP/USD pair in the absence of any macroeconomic data and news from Great Britain was caused by the strength of the U.S. dollar across the board. Despite the poor Factory Orders data from the U.S. on Monday, the U.S. Dollar Index rose about 0.4% and remained strong against its rival currencies.

The strength of the U.S. dollar, along with the pessimistic outlook of GBP, dragged down the GBP/USD pair towards 1.240 level on Monday. The next key factor for pair would be NFP data from the U.S. on the coming Friday.

Daily Support and Resistance

  • R3 1.2597
  • R2 1.255
  • R1 1.2497
  • Pivot Point 1.2451
  • S1 1.2398
  • S2 1.2352
  • S3 1.2299

GBP/USD– Trading Tip

The GBPUSD pair is trading sideways around 1.2435, testing a double top pattern around 1.2425. The recent Doji pattern on GBP/USD pair is suggesting chances of bullish correction over 1.2425 support level. This may lead the GBP/USD prices towards 1.2515 level. On the lower side, the violation of 1.2420 support can lead the Sterling prices towards the next target level of 1.2316. Overall, the trading bias of GBP/USD remains bullish, considering the 50 EMA as it’s keeping the Cable bullish above 1.2420 today.  

USD/JPY – Daily Analysis

The USD/JPY was closed at 106.718 after placing a high of 107.067 and a low of 106.633. Overall the pair USD/JPY moved sideways during Monday and remained flat. The risk-off sentiment in the market emerged on Monday after the U.S. administration started an investigation into the origin of the virus. The U.S. administration has decided to prove that China deliberately withheld the information from the world, which led to the global spread of coronavirus. However, WHO confirmed that it had not received any evidence from U.S. administration about the speculations about the origin of the virus that is Wuhan’s laboratory.

U.S. President Donald Trump announced that China should be held responsible for the global coronavirus spread. According to him, China should have informed about the hand-to-hand transmission of the virus earlier as well as it should have stopped the virus from spreading across the globe and in order to punish China for its mishandling of the situation, the U.S. has announced to come up with a retaliatory measure against China.

Trump on Monday also announced to cancel the phase-one deal that was signed between China & the U.S. if China will fail to fulfill its promise of buying $200 worth of U.S. goods. Coronavirus has hit the economies of all countries by lockdown, and it is unclear whether the Chinese economy is able to fulfill its promise or not.

Furthermore, the fact that the U.S. is blaming China over the global pandemic of coronavirus has raised fears of a new trade war between China & the U.S. This rising tension has created the risk-off sentiment in the markets and supporting U.S. dollar. 

The U.S. Dollar Index rose 0.4% on Monday and reached a level of 99, which is highest since Thursday. The pair USD/JPY was also supported by the strength of the U.S. dollar on Monday. In the absence of Japanese traders due to Japan’s Bank holiday, the movement of USD/JPY was solely dependent on USD on Monday. The pair showed very slow progress almost remained flat throughout the day.

Daily Support and Resistance    

  • R3 107.46
  • R2 107.27
  • R1 107.01
  • Pivot Point 106.82
  • S1 106.56
  • S2 106.37
  • S3 106.11

USD/JPY – Trading Tips

The technical side of USD/JPY is mostly unchanged as the pair continues to consolidate around 106.700. As we can see in the 4-hour chart above, the USD/JPY pair is struggling to cross over the downward trendline, which is extending resistance around 106.950. As of now, the USD/JPY pair has also formed a symmetric triangle pattern, which is currently supporting the pair around 106.440. The 50 EMA is also keeping pressure on the pair around the same level of 107.050. Below this level, we may see a selling trend in the USD/JPY pair until the next target levels of 106.44 and 106. 

All the best for today! 

Categories
Forex Signals

Gold Prices on a Bullish Run – Is It Going after 1,770? 

The safe-haven-metal prices extended its 4-day winning streak and rose to the fresh 7.5-year high of $1,760 level since November 2012 while representing 0.90% on the day, although the Federal Reserve’s President Jerome Powell rejected negative rate once again. However, the reason for the gold upticks could be attributed to the renewed tension between the US-China trade tussle. Whereas, the dollar index, which tracks the value of the greenback (gold’s biggest nemesis) against majors, is also sidelined near 100.34. At this moment, the yellow-metal prices are currently trading at 1,761.78 and consolidate in the range between the 1,743.02 – 1,764.73.

The central bank repeatedly showed disagreeability to using negative interest rates to respond to the economic impact of the coronavirus pandemic, Federal Reserve’s President Jerome Powell said CBS during a 60-minute interview held over the weekend. 

Despite this, the gold rose to multi-month highs mainly due to the White House trade advisor Peter Navarro said during his this week interview that China sent hundreds of thousands of passengers on aircraft to Milan, New York and around the world through planning to spread the virus after hiding it from all over the world for almost 2-months.

In the meantime, the reasons for the intensified trade tension could also be attributed to the statement to blocking chip supplies to Huawei Technologies. On the other hand, the uptick in the stocks, which usually have an inverse relationship with gold, also failed to erase gains in yellow-metal.

Whereas, the Federal Reserve Chair Powell said that both the Central bank and Congress should help the economy recover from the virus outbreak recession. As markets were pricing negative rates earlier this month, President Trump called them a gift enjoyed by other countries. However, Powell destroyed expectations for negative rates on Wednesday. Elsewhere, Bank of England (BOE) Governor Andrew Bailey and Bank of Japan (BOJ) Governor Haruhiko Kuroda on Thursday hinted that their focus is on bond purchases and other lending programs to keep borrowing costs low and recover the economy from the virus outbreak recession crisis.


Gold – Technical Outlook

Support Resistance 

1758.2 1771.4

1750 1776.4

1745 1784.6

Pivot Point 1763.2

Gold prices continue to trade on a bullish run, and it seems to head towards the next resistance level of 1,770. Overall this marks a 138.2% Fibonacci retracement level, which holds around 1,780 level. On the lower side, the precious metal gold may find support at 1,756 area and 1,738 area while the continuation of a bullish trend may lead to gold prices towards previously suggested target levels of 1,770. The 50 EMA and MACD both are supporting bullish bias for gold. Let’s keep an eye on 1,763 now to stay bearish below and bullish above this level. Good luck! 

Categories
Forex Indicators Forex Signals

How Do Forex Robots Actually Work?

What’s this about trading robots? Do they work? Are robots bad? Many questions are those that usually roll in the head when you hear the word “robot”. In the article I write today, I will try to expose what is this about Forex robots and everything that affects them, as well as some myths and realities. Let’s discuss…

How Do Forex Robots Work?

Before you start talking about how they work, do you know what a Forex robot is? A robot is nothing more or less than a few lines of code with clear rules of entry and exit to the market that are executed automatically. All this applied to the Forex market would simply be an automated strategy that buys and sells in the currency market. They are also called EA (Expert Advisor).

When I told you what it is, I explained how they work. But hey, can you make money with robots, or are they a scam? The performance or results of these automated strategies will depend on these previous strategies and their supervision, so if they are not profitable from the start, no matter how much they are automated they will not be. But if the strategy that is programmed is good, the result may be better.

Key Advantages

One of its great advantages is to be able to quantify the performance of the strategy that has been programmed. With a programmed strategy, you can perform a backtest and evaluate how that strategy has behaved before. If you have done discretionary or manual trading you will surely have tried different systems without having statistics or results of whether they have worked or not in the past. Come on, you’ve been playing with your money without knowing if what you were doing was profitable or not. Think for a moment, if you don’t quantify, how are you gonna know you’re making progress?

You need objectivity in making decisions when you make decisions. Otherwise, your results will be affected by your interpretation and here you have a good extra factor to make a mistake. How are you going to correct it? Systems or robots allow an objective market approach.

As you know, the accuracy of execution when trading is key. When you trade manually, you analyze wait for the moment and execute the order. When the process is automated, the order is released in less than a second without hesitation or analysis, or thoughts.

Another advantage more than considerable is that to execute the operations you do not have to leave your eyes looking at graphics for hours. You can do it uninterruptedly over time, even if you’re not in front of the screen. If you’re on a trip for a week or you have to do anything to stop you from being there, your operation may be running simultaneously. Be very clear, however, that they must be monitored and that the creation of automated systems requires time and work.

Closely related to the previous one, with robots you can trade in different assets simultaneously. Manually we are limited in this aspect. So you can diversify without problems.

And yes, the psychological approach. As you know, in this trading, psychology is important and it affects a lot. When the strategies are done in an automated way you reduce the psychological component quite a lot since your buying and selling decisions are not biased by your psychology. I say it’s reduced because you have to know that when robots have a negative or positive performance it will still affect you. But the main difference is that the results affect your psychology and not your decisions as it usually happens when operating in a discretionary manner.

Key Disadvantages

Although the advantages are clear, there are disadvantages. Most of the robots that are marketed on the Internet are based on martingales, grid. that reflect very good results and almost perfect performance curves but one day they break. Why? Because of the aggressive risk management rules they use. If you don’t think so, try downloading some for free and look at their results over a long period of time.

Why does this happen? Creating a good, cost-effective automated system is not easy. Programming a martingale or grid is not easy. So before you buy any robot, make sure they don’t use these techniques and that there’s no one hiding under a brand that can disappear tomorrow.

As for disadvantages when trading with robots something important is any technical failure that may arise and cause it not to run well. It is advisable to use VPS (a private virtual server) if this failure can affect your operation. I explain what a VPS is in this video:

Although it’s something that’s never happened to me yet, it is something that can happen. But it is as if the Internet connection fails. Also, failures or errors when programming the strategy (before executing it in real test it in demo or with very little capital).

Disadvantages are anything you might think might affect something that’s running remotely. Many such tasks already exist in different areas today.

What are the Limits of Robots?

We could say that robots do not work (always). I mean, there are systems that work perfectly for many years, but the vast majority die first. So? The solution is to have clear rules to disable these robots. If you don’t have an established plan, what are you going to do if your robot keeps losing money? Learn how to manage them.

Another limitation when using automated strategies is the over-optimization of parameters. What is that? Adjust your variables so that past results are very good. What’s the problem here? That we don’t know what’s going to happen on the market tomorrow, so it’s very likely that that robot won’t work well with new data when you apply it. Solution? Create a strategy and then validate it. Not the other way around. Remember that it is not about looking for perfect results, it is about getting real results.

Robots do not do magic, they have an added value with respect to manual trading that is quite clear, but it is something that you connect and you sit down to see how you drop the money. To take advantage of them is to be intelligent, but to ignore limitations is to be naive.

How to Choose A Forex Robot?

We talked about an important point earlier. Avoid using robots that apply aggressive risk management. If you’re going to choose a robot, spend some time contacting the person who created it, their background.

Don’t buy on pages you don’t know, in fact, I would tell you not to buy a robot as such but have expert supervision. As we’ve already seen, robots need to be managed. Be sure that you are able to learn to do all this by yourself in a simple way. You also have other alternatives in portals like Darwinex.

How to Program a Forex Robot

Today there are many tools to do so. From my experience, don’t get complicated and use those that allow you to start with a short learning curve. Some tips to create a good robot:

Set clear market entries and exits.

These things have to be made as easy as possible. You don’t need a thousand lines to make it work. Use the rule that your logic fits in a post it.

  • Always use stop-loss unless you don’t use any leverage.
  • Do it on assets that have liquidity so as not to pay a surcharge.
  • Schedule them to run in hours where there is volume on the market.

The Best Account Types

The most suitable accounts for trading with robots are the same as for manual trading. Accounts with low spreads, direct market execution, and adjusted swaps. Forex brokers are many, but with these features no longer so many. It is important that no use standard accounts or the behavior on the outcome curve you are going to get will be very different.

The Best Forex Robots

The best robots are the ones you know and create. Those that you can build in a simple way and also do different tests of robustness to know first hand their weaknesses and strengths.

For me, there are no good robots or bad robots. There are robots that work and there are robots that don’t work. I try to apply those who do and discard those who stop. I use more than a hundred strategies that I monitor daily and follow up. In this way everything is dynamic and although there are always strategies that do not work over a limited period of time, which is involved is that there are others that generate more than those.

Manual Trading or Robots?

Within the world of investment and trading, there are defenders of manual trading versus robots and vice versa. To say that manual trading doesn’t work seems very bold to me. In case a person hasn’t worked, why won’t it work?

After all, a robot can be a manual trading system that runs automatically. Provided that there are clear rules and a methodology, it is clear that both can be valid. Now, a forex robot has a number of advantages over manual trading that it doesn’t have. If we have the ability and the judgment that a person can have and the means to carry it out through robots, why not use both?

Categories
Forex Market Analysis

Microeconomics and Macroeconomics: Are They Necessary In Forex Trading?

If we want to take our Forex trading to a higher level, it is necessary to have some knowledge of microeconomics and macroeconomics. Perhaps the macroeconomic aspects are more relevant for the trader, but here we will show you everything you at least need to know about both disciplines.

Many people who approach the world of Forex or the financial markets in general wonder if they have the right preparation to carry out such activity and some wonder if it is necessary to have a university degree or studies in economics to be able to trade in a market like Forex.

In reality, online broker platforms open the doors to everyone, but having the possibility to invest a certain capital in a particular market is simply an opportunity: does not in any way mean that more specialised knowledge or information can be dispensed with.

On the other hand, a short-term operation like most that takes place in the various currency markets tends to be influenced to a large extent by what happens in the world. 

For example, news about a country’s politics makes its currency more or less stable.

But what is Microeconomics?

Microeconomics analyses the decisions of individuals and different economic agents in a theoretical way. This discipline proposes simplified models of reality in order to understand the implications of personal decisions and how to decide.

Is Microeconomics the Economy of the Small?

Not exactly, Microeconomics studies the decisions of the different economic agents from the individual point of view. For example, Microeconomics analyses the decisions of companies, large or small.

How does Microeconomics analyze decisions?

Microeconomics connects the objectives of economic agents with their possibilities. These economic actors will try to achieve their objectives to the maximum extent possible, but bearing in mind that other economic actors will also try to do the same.

What kind of economic agents study microeconomics?

Microeconomics studies the decisions of both individuals and groups as a family, a company, an association… Thus, for example, it stops at the decisions of the State, but also at those of individuals who make decisions within the State.

What forms of expression does Microeconomics use?

It uses three forms of expression: the intuitive way of expressing itself through spoken or written words, the graphical form, and the use of mathematics.

Intuitive: Analyzes decisions through discourse, offering greater proximity to unfamiliar audiences. It has a didactic interest since what is understood either graphically or mathematically must be explained.

Graphs: Very useful when making comparisons and understanding the effects of a certain type of situation on the decisions of individuals.

Mathematics: They are a tool for calculating, but above all for thinking. They provide rigor and conciseness, favoring the analysis of how many factors influence decisions. Many discourses can be replaced with an equation.

Does Microeconomics Help to Understand the Financial World?

Much, more every day. Finance involves many decisions such as how much to save and how much to consume, what to invest in, or how to cover that risk. It also provides tools to understand the strategies that occur in the interrelationship of the actors involved in the financial system.

What about the company world?

One of the growing interests of Microeconomics is to understand the decisions of all kinds that take place in the company. Aspects such as commercial, financial, human resources decisions, etc.

What is the macroeconomy?

Macroeconomics analyses and studies the overall functioning of the economy, in order to explain the evolution of economic aggregates.

What is macroeconomics good for?

Macroeconomics is useful because it allows us to analyse how best to achieve a country’s economic objectives. Economic policy is the tool that governments have to achieve these goals. Objectives such as achieving price stability, achieving economic growth, promoting employment, and maintaining a sustainable and balanced balance of payments.

Some questions we can ask ourselves…

– What are the data that usually have the greatest impact on financial markets?

-Could an increase in consumer prices affect currencies and other instruments?

-Why is economic growth important to investors around the world?

An important part of the fundamental analysis is related to the publication of macroeconomic data. While some indicators have a greater impact than others, the publication of data that takes the market by surprise – either by being published in advance or by exceeding expectations – can cause considerable market volatility.

Employment, the pulse of an economy

Probably the most relevant indicator of an economy’s health is the employment figure. This is because employment directly influences all aspects of economic activity, from supply to demand.

Unemployment rates inform us of the percentage of the total workforce that is unemployed but active in employment and willing to work. A steady rise in unemployment levels is a manifestation of the country’s deteriorating economic situation, negatively perceived by financial markets as a signal to withdraw from the currency. Normally, the market concludes that the higher the level of unemployment, the weaker the currency.

Non-Farm Payroll (NFP)

One of the most important data with the greatest impact on markets is the non-agricultural payroll of the United States. Non-agricultural payrolls are released every first Friday of the month and inform us of new jobs in all sectors except agriculture, as well as the unemployment rate of the previous month.

Given that consumers account for approximately 70 percent of a country’s economic activity, the state of the labour market is of vital importance for the generation of the overall well-being of countries. An improvement in the NFP data indicates that the US labor market is strengthening, improving the outlook for the US economy, and therefore a positive effect on the US dollar.

Inflation, the key to central bank decisions

The main objective of central banks is to promote price stability in the economy. Price stability is measured as inflation changes, so investors monitor inflation reports to determine the future course of central bank policies.

CPI is probably the most important indicator of inflation

Here we are talking about a statistical estimate calculated on the basis of the use of prices of a significant sample of representative products whose prices are collected on a regular basis. The CPI simply measures the rise in the prices of goods and services and is calculated for different categories and subcategories.

If the publication of the CPI is above expectations, this means that inflation pressure is high and the central bank could raise interest rates, which could lead to an increase in the value of the currency.

In general, central banks try to counteract an increase in inflation with higher interest rates, which can lead to a strengthening of currencies. A low inflation rate on the other hand is offset by lower interest rates, which can lead to a weakening of the currency.

GDP – the true color of an economy

It is the largest indicator of a country’s economy and shows the total market value of all services and goods produced in a given year. Impacts of GDP on personal finance, investment, and employment growth. Investors look at the growth rate of a country or economy to decide whether to adjust their asset allocation. They also compare countries’ growth rates with each other to decide where the best opportunities might be. This strategy includes the purchase of shares of companies in fast-growing countries.

When you start in the world of negotiation and trade, it is very convenient to focus on the indicators we have mentioned before, before you want to move forward and delve into other data such as consumer confidence, business surveys, or even retail sales.

Categories
Forex Signals

How to Correctly Evaluate Forex Signals Prior to Using Them

Trading signals are becoming big business, really big business. People come into trading these days looking for the easy option and often signals are that. They can be both automated, whereby you simply sign up and that is it, they will do all the trading for you, simply copying the exact same trades as another account. The other option is a more manual style of signals, these signals are there a trader will put them up somewhere, like on a site or in a chat channel, you then need to copy them manually into your account, putting in the trade and the stop losses yourself, a little more work but you have a lot more control over your trades and accounts.

With so many different options out there, there are of course some good signals provided, but also some not so good ones, ones where if you were to follow them, there is a very high chance that you will probably lose most of your money. How do we know which is which though? From the outside, they all look pretty similar, it is someone giving a signal and you are either automatically copying it or manually copying it. Either way, you aren’t doing the hard work. So we need to work out how we can tell whether they are good signals or not, and that is what we are going to be looking at today, how we can evaluate the forex signals that we are looking at before we are actually using them.

Results

The first thing that will be obvious to us is the results of the signals, this is something that we need to be wary of, think about it, if a signal was making a lot of bad trades, would they advertise this? We would highly doubt this. Instead, they would either hold off on showing new results, freezing the results page with the most recent winning trades, they may also simply take out any losing trades from the results, or for the even more dishonest signal providers, they may make up the results entirely. This is something that some of the more shady ones do who only have the intention of stealing your money and not providing you with a good signal service.

One way of getting around this is to look for signal providers that have their results hosted on an independent site, there are various sites out there that can host accounts with their data streams coming directly from the brokers and accounts. This gives you a little extra reassurance that the results are real, but just be aware that some of the really sneaky ones can still manipulate the results, even on one of these verified sites through creating multiple accounts or managing to change the results that are sent to the site.

History

While the current results are great to see, it is also important to work out how they have done in the past, one thing to avoid is a signal provider that is not giving their history, this is most likely due to the fact that they have not done so well, and so they do not wish to show those results. The history of the results is what lets you know how long they have been going and also how consistent they are as signal providers. Once again, these can easily be manipulated and modified so you need to be aware of what is real and what is not, and which ones seem to be a little too good to be true.

Price

Price is a big thing for a lot of people, and it is for signal providers also. There are a number of different payment styles available, where is the one-off payment where a single charge is made for lifetime signals, the subscription model where you pay monthly or yearly for access to the signals, and a profit share, this is where you are expected to pay a percentage of your profits art the end of the month. All three methods have their pros and cons, but which you prefer to use will be up to you.

You also have to look at what the rice actually is, if you are paying $100 a month for a signal that is putting out a single trade signal per month then it is not exactly worth it, you will be spending more money on the signal than you will be making from the trades that it is putting out.

Trade Frequency

Consider how often the signal provider actually gives signals, there is no point in paying for a signal that is only putting out one or two trades a month, this simply won’t make you enough to cover the costs, and the work being put in may not be worth it. You also need to consider those that are putting out too many too, if a signal provider is putting out 10+ trades per day, then this may mean that they are simply throwing out loads of trades in the hope that the majority of them become profitable, both of these styles are ones that you want to avoid, instead looks for ones that are giving out the right amount of trades for the sort of strategies that they are using.

Communication

How are they communicating or is there even a way to get in contact with them? If you have questions, how will you ask them? It is important that there are ways to get in contact with the person that is giving out the signals, they need to be there in order to offer support for those using their signals. If there is not any way to get in touch with them, they are probably not serious about building up their signal or userbase, which probably means that they are not serious about their signals. This is a red flag for us and we would never join one without a way of contacting the provider. If they have methods to contact them, try asking a question or two before signing up, to ensure that they are around and willing to offer.

Other Requirements

You should also consider any other potential requirements that the signal provider sets, some of them put things in place like you needing to use a specific broker under their affiliate link, things like that can be ok, but we prefer to avoid them as it can lead to potential issues, especially as they may be able to manipulate things this way. If they try to put requirements on your accounts or you as a trader, then we would always use a little extra caution.

Those are some of the ways that you can evaluate a forex signal prior to actually using them. As with anything when it comes to money, you will need to ensure that you are aware of what you are doing and who you are giving money to, there are some fantastic signal providers out there, but also some awful ones.

Categories
Forex Signals

USD/JPY Double Top Pattern Set to Drive Selling – Signal Update! 

The USD/JPY pair is trading with a bullish bias at 104.350, and violation of this level is likely to lead the USD/JPY pair until the 104.745 level. On the lower side, the USD/JPY may find support at the 104.198 level. We can expect USDJPY to bounce off upon the 104.198 level today. On the 4 hour timeframe, the USDJPY pair is likely to close a doji candle below 104.368 level. If this happens, we may see a bearish correction in the USD/JPY pair. 


Entry Price – Sell 104.22

Stop Loss – 104.62

Take Profit – 103.82

Risk to Reward – 1:1

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

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

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

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

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

Categories
Forex Signals

EUR/GBP Downward Channel to Provide Sell Opportunity! 

On the 4 hour timeframe, the EUR/GBP pair is trading with a selling bais at 0.8850 level, facing immediate support at 0.8825 level. On the lower side, the EUR/GBP pair may find support at 0.8825 area, whereas violation of this can extend selling bias until the 0.8782 mark. The MACD and RSI support a selling bias, along with a downward channel that we can see on the four hourly timeframes. Here’s a trading plan for today…


Entry Price – Sell 0.88668

Stop Loss – 0.89068

Take Profit – 0.88268

Risk to Reward – 1:1

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

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

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Forex Signals

USD/CAD Enters Overbought Zone – Quick Trade Idea! 

The USD/CAD pair was closed at 1.28019 after placing a high of 1.28224 and a low of 1.26851. Since January 11 on Wednesday, amid the US dollar’s broad-based strength and declining crude oil prices, the currency pair rose to its highest. The US Dollar Index measures the greenback’s value against the basket of six major currencies settled above 90.50 level and supported the US dollar. The US dollar gained traction in the market ahead of the US Federal Reserve monetary policy decision and its safe-haven status.

The risk-averse market mood driven by the rising fears about the negative impact of the lockdown restrictions provided support to the safe-haven US dollar. The US dollar strength remained intact even after the Federal Reserve policy announcement on Wednesday and pushed the currency pair USD/CAD higher on board.

The US Federal Reserve kept its interest rates near zero and asset purchase program at the same pace of $120 billion per month. The Bank stated that the US economic recovery remains moderate throughout the month. The economic path was dependent on the progress made in the pandemic and the vaccination program. These comments from the US Central bank and its Chairman gave strength to the local currency greenback that ultimately added gains in the currency pair USD/CAD on Wednesday.

On the data front, at 18:30 GMT, the Core Durable Goods Orders for December increased to 0.7% against the projected 0.5% and supported the US dollar that added further gains in the USD/CAD pair. In December, the Durable Goods Orders weakened to 0.2% against the projected 1.0%, weighed on the US dollar, and capped further upside momentum in the USD/CAD pair.

On the other hand, there was no macroeconomic data from the Canadian side, and on the West Texas Intermediate (WTI) crude oil front, the oil remained under pressure due to rising prices of the US dollar. The crude oil fell to $51.84 on Wednesday and weighed on the commodity-linked currency Loonie, which ultimately pushed the already rising USD/CAD pair. 


Entry Price – Sell 1.2879

Stop Loss – 1.2930

Take Profit – 1.2810

Risk to Reward – 1:1

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

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

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

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Forex Elliott Wave Forex Market Analysis

USDJPY: Be Ready for this Flag Pattern Breakout

The USDJPY pair presents the breakout of a flag pattern corresponding to the third wave of Subminuette degree identified in green, triggered after the flag pattern breakout observed in Wednesday 26th session. Examine with us what’s next for the coming trading sessions.

Our Previous Analysis

Our previous Elliott wave analysis of the USDJPY pair commented on the complex corrective formation developed by USDJPY since the price topped at 111.715 in March 2020. Also, we recognized the internal structure as an incomplete triple-three pattern. 

As illustrated in the previous daily chart released in late December 2020, the USDJPY pair moved in an incomplete wave (c) of Minuette degree labeled in blue. Likewise, the lower degree sequence revealed the progress in an ending diagonal pattern, suggesting the corrective formation’s exhaustion, which belongs to wave B of Minor degree in green.

Likewise, the breakout of the trendline that connects the end of waves ii and iv of Subminuette degree labeled in green would confirm the end of wave B of Minor degree. In this context, once the USDJPY surpassed the upper-line of the ending diagonal pattern, the pair confirmed the end of wave B and the beginning of wave C of the same degree.

What’s Next?

The USDJPY surpassing the upper guideline of the ending diagonal pattern on January 07th confirmed the completion of wave B of Minor degree and the beginning of wave C of the same degree.

In this context, the first breakout the USDJPY formed in early January corresponds to wave i in green. Likewise, the consolidation sequence recognized as a flag pattern corresponds to wave ii. Both waves belong to wave C of Minor degree labeled in green.

The last breakout developed by the USDJPY activates wave iii that belongs to wave C in green. Its potential advance could strike the psychological barrier of level 106.

Summarizing, the mid-term Elliott wave view for the USDJPY pair suggests that the price action may advance in its wave iii of Subminuette degree, which belongs to the first segment of the internal structure of wave C of Minor degree identified in green. The upward wave iii in progress could exceed the psychological barrier of 106. It even could strike the supply zone between 106.561 and 107.050. Finally, the bullish scenario’s invalidation level is at the beginning of wave i in green, at 102.591.

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Forex Signals

AUD/USD Get Ready for Bullish Correction – Buy Signal Update! 

The AUD/USD pair was closed at 0.76630 after placing a high of 0.77636 and a low of 0.76432. The AUD/USD pair reversed its direction on Wednesday and started posting losses for the day due to rising US dollar demand and risk-averse market sentiment. The risk-sensitive Australian dollar suffered on Wednesday as the risk-off market environment started to emerge over the rising concerns of the negative impact of current lockdown restrictions in many nations. The total number of coronavirus cases worldwide reached 100 million and was rising day by day that raised global economic concerns despite the vaccine rollout. These concerns added to the risk-off market sentiment and weighed on the risk perceived Aussie that ultimately dragged the AUD.USD pair on the downside on Wednesday.

The risk-averse market sentiment was also supported by the latest announcement from AstraZeneca and Pfizer, who reported a production difficulty and said that there would be a delay in vaccine delivery that ultimately raised the economic recovery concerns that were connected with the vaccination process. Meanwhile, the US and China’s rising disruptions were also supporting the risk-off market sentiment and weighing on the AUD/USD pair on Wednesday. The US President Joe Biden’s nominee for ambassador to the United Nations, Linda Thomas Greenfield, stressed the importance of US re-engagement with the 193-member world body to challenge China’s efforts to drive an authoritarian agenda.

Beijing has been challenging the traditional US leadership and pushing for greater global influence. The tension between the two superpowers reached its highest in the United Nations last year over the coronavirus pandemic. Greenfield stated that the US broadly has to re-engage with its allies and opponents as she criticized the Trump administration, particularly on its failed efforts to get North Korea to surrender its nuclear weapons program and for trying to “go it alone”.

She also added that Washington needed to pay its dues to the world body (UN). The United States that used to be the largest UN contributor, is currently in arrears about $2 billion for the peacekeeping budget and about $600 million for the regular budget. The fight for greater global influence between China and the US has weighed heavily on the global economy during Trump’s tenure and if the same continued during Biden’s presidency, then the global economy could suffer more. These concerns kept supporting the risk-averse market sentiment and pushed the US dollar that ultimately weighed on AUD/USD pair on Wednesday.

On the data front, at 18:30 GMT, the Core Durable Goods Orders for December improved to 0.7% against the predicted 0.5% and supported the US dollar, and added further losses in AUD/USD pair. In December, the Durable Goods Orders dropped to 0.2% against the predicted 1.0% and weighed on the US dollar.

From the Australian side, at 04:30 GMT, the MI Leading Index for January dropped to 0.1% against December’s 0.7%. At 05:30 GMT, the quarter’s CPI raised to 0.9% against the forecasted 0.7% and supported the Australian dollar that capped further losses in AUD/USD pair. The Trimmed Mean CPI for the quarter remained flat with the expectations of 0.4%. The NAB Business Confidence in December came in as 4 against the previous 13. 

Meanwhile, the US dollar’s strength due to the Federal Reserve monetary policy decision on Wednesday also kept the pair AUD/USD under pressure. The Fed kept its interest rates at the same level near zero and also maintained its asset purchase program at $120 billion per month. 

However, the US central bank said that the economic path was totally dependent on the pandemic progress and the vaccination program. This also supported the US dollar and weighed on AUD/USD pair.


Daily Technical Levels

Support Resistance

0.7688 0.7776

0.7635 0.7809

0.7601 0.7863

Pivot point: 0.7722

Entry Price – Buy 0.76188

Stop Loss – 0.75788

Take Profit – 0.76588

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, January 28 – Top Trade Setups In Forex – Advance GDP in Focus!

Later today, the focus will remain on the German Prelim CPI and Advance GDP figures from the U.S. both of the events are expected to perform worse than before as the data represents the economic activity of the lockdown period. So most of it is already priced in. However, the U.S. Jobless claims will remain in the highlights, and these 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

The EUR/USD pair was closed at 1.21117 after placing a high of 1.21696 and a low of 1.20581. The EUR/USD pair posted losses on Wednesday as the Federal Reserve kept its benchmark short-term interest rates unchanged near zero and maintained an asset purchasing program at $120 billion a month. 

The Federal Reserve Open Market Committee released its statement from the January meeting that stated that the pace of recovery in economic activity and employment has moderate in recent months with weakness concentrated in the sectors most adversely affected by the pandemic. 

According to the statement, the coronavirus pandemic was causing tremendous human and economic hardship across the United States and worldwide. The committee also stated that the economy’s path would depend significantly on the course of the virus, including the progress on vaccination.

The market’s reaction to the Federal Reserve policy decision kept the EUR/USD pair under pressure, and hence, the currency pair started to extend its losses on Wednesday. Whereas the single currency Euro faced mixed movements throughout the day, the currency remained under pressure with fresh speculations that the ECB could soon cut Eurozone interest rates. The Central Bank was reportedly concerned that markets were pricing out the chances of more interest rate cuts from the ECB. 

Furthermore, the fears for vaccine shortage in Eurozone also weighed on the single currency on Wednesday after the European Union called out vaccine makers AstraZeneca and Pfizer over delivery delays that could slow its recovery from the pandemic. Officials were even threatening to restrict exports and take legal actions as anger mounts. 

According to E.U. officials, AstraZeneca will not deliver as many doses as it promised and has put the government rollout plans and economic recovery at risk. The news came in after Pfizer said that it had delivered fewer doses of its vaccine than expected last week. European Commission President Ursula von der Leyen turned up the pharmaceutical companies’ heat and said that Europe had invested billions in helping develop the world’s first coronavirus vaccine to create a truly global common good, and now companies must deliver and honor their obligations. 

The European Union has devoted part of 2.7 billion euros emergency fund to assist with vaccine development. E.U. countries we recounted on the vaccines to rein in the health crisis and jumpstart their economies, but now they were forced to modify their plans. Furthermore, the E.U. urged the pharmaceutical firm AstraZeneca to supply it with more coronavirus vaccine doses from U.K. plants to row over shortages. However, the company denied and said that the production delay in European plants could only deliver a fraction of the doses it promised for the first quarter of the year. However, the E.U. insisted that doses made elsewhere should make up the shortfall and d criticize the slow rollout of vaccination.

This vaccine drama in the European Union raised concerns over the delayed economic recovery and added weight on the single currency Euro that ultimately added EUR/USD pair losses on Wednesday.

On a data front, at 18:30 GMT, the Core Durable Goods Orders for December rose to 0.7% against the expected 0.5% and supported the U.S. dollar that added more losses in EUR/USD pair. 

In December, the Durable Goods Orders dropped to 0.2% against the expected 1.0% and weighed on the U.S. dollar. From the European side, at 12:00 GMT, the German GfK Consumer Climate dropped in January to -15.6 against the forecasted -7.8. It weighed on Euro that ultimately dragged the currency pair EUR/USD further on the downside on Wednesday. 


Daily Technical Levels

Support Resistance

1.2119 1.2189

1.2079 1.2217

1.2050 1.2258

Pivot point: 1.2148

EUR/USD– Trading Tip

The EUR/USD pair is trading with a bearish bias at 1.2090, facing immediate resistance at 1.2120 level. The EUR/USD is closing three black crows on the hourly timeframe, suggesting selling bias in the pair. On the lower side, the pair is expected to go after 1.2095 and 1.2060 level. The 50 periods EMA are suggesting selling bias in Euro today.

GBP/USD – Daily Analysis

The GBP/USD pair was closed at 1.36887 after placing a high of 1.37586 and a low of 1.36590. On Wednesday, the currency pair GBP/USD dropped and posted losses for the day amid the broad-based U.S. dollar strength after the FOMC statement and Fed’s monetary policy decision.

The Federal Reserve Open Market Committee released its statement from January’s meeting on Wednesday that mentioned that the Fed will keep its interest rates near zero and maintain the asset purchasing program of $120 billion per month.

Federal Reserve said that the economic path would solely be decided by pandemic and vaccine rollout developments. Other than this, everything stated in the statement issued by FOMC was just as expected and supported the U.S. dollar that ultimately kept the GBP/USD pair under pressure for the day. On the data front, at 18:30 GMT, the Core Durable Goods Orders for December surged to 0.7% against the anticipated 0.5% and supported the U.S. dollar that ultimately added weight on GBP/USD pair. In December, the Durable Goods Orders fell to 0.2% against the anticipated 1.0% and weighed on the U.S. dollar that capped further GBP/USD pair losses. 

From Britain’s side, at 05:01 GMT, the BRC Shop Price Index for the year came in as -2.2% against the previous -1.8%.

The GBP/USD pair rose to its highest since May 2018 on Wednesday however failed to remain there and reversed its direction. The rise in the GBP/USD pair during the session’s early trading hours could be attributed to U.K. Prime Minister Boris Johnson’s latest comments.

The PM has said that he hopes that a gradual and phased relaxation of coronavirus restrictions could begin in early March. Johnson said that he intended to set out a plan to ease the lockdown in England. The factors will include death and hospitalization numbers, the progress of vaccinations, and changes in viruses.

He also ruled out schools in England re-opening after the February half term instead set a target of 8-March. He also announced a 10-day self-funded quarantine restriction for all travelers entering the U.K. from high-risk countries under tighter border restrictions to combat new variants of coronavirus. The PM was under pressure from Tory MPs to spell out plans for how the current lockdown will end. Then PM replied that relaxing restriction would depend on emerging data about how effectively the vaccine stops virus transmission. These comments from UK PM raised the local currency, British Pound, to economic recovery and pushed the pair GBP/USD in early trading hours. However, the strength of the U.S. dollar due to the Federal Reserve’s decision in the January monetary policy meeting added pressure on the currency pair. It dragged GBP/USD to the downside.


Daily Technical Levels

Support Resistance

1.3647 1.3783

1.3560 1.3832

1.3511 1.3918

Pivot point: 1.3696

GBP/USD– Trading Tip

A day before, the GBP/USD pair traded bullish after violating the narrow trading range of 1.3680 – 1.3670. It placed a high of around 1.3753 level, and it later reversed back to trade between the same trading range of 1.3696 – 1.3646. The GBP/USD may find support around the 1.3647 level, and violation of this level can extend selling bias until 1.3610. Approaching the 2-hour timeframe, the GBP/USD is holding below 10 and 20 periods EMA, and it may extend the selling trend today. Let’s consider taking a sell trade until 1.3645 and 1.361 level.  

USD/JPY – Daily Analysis

The USD/JPY pair was closed at 104.108 after placing a high of 104.197 and a low of 103.579. The USD/JPY pair rose and reached its nine-day highest level on the back of the U.S. dollar’s broad-based strength. 

The currency pair USD/JPY touched its highest since January 19 and surpassed 104 level on Wednesday as the greenback became strong on board. The currency pair preserved its bullish momentum as the U.S. Dollar Index that measures the greenback’s value against the basket of six major currencies rose to a weekly top at 90.62 on Wednesday and boosted the safe-haven U.S. dollar. The strength in the U.S. dollar then ultimately pushed the currency pair USD/JPY on the upside.

The risk-averse market sentiment was confirmed by the declining S&P 500 futures that lost more than 1% on the day. Wall Street’s main indexes also started the day in negative territory and supported the U.S. dollar and USD/JPY pair. On the data front, at 18:30 GMT, the Core Durable Goods Orders for December advanced to 0.7% against the estimated 0.5% and supported the U.S. dollar, and added further gains in the USD/JPY pair. In December, the Durable Goods Orders plunged to 0.2% against the estimated 1.0% and weighed on the U.S. dollar. Nevertheless, investors largely ignored the data as the focus was solely on the FOMC’s policy announcement.

The first policy meeting under Joe Biden’s presidency had all the investors’ focus, and that kept driving the whole market on Wednesday. The Federal Reserve Chairman Jerome Powell made clear that the U.S. Central bank was nowhere near exiting massive support for the economy during the ongoing coronavirus pandemic. The Federal Reserve officials kept the benchmark interest rates unchanged near zero and flagged a moderating U.S. recovery in a statement released by FOMC for the January meeting. The bank repeated that it would maintain its bond-buying program at the current pace of $120 billion of purchases per month until substantial further progress towards its employment and inflation goals. 

After this announcement, the Yields on U.S. 10-year Treasury notes hovered just above 1%, and the U.S. dollar held its gains while the S&P 500 closed 2.6%, down from its steepest drop since October amid growing concerns that stocks have become overvalued. FOMC said in a statement that the pace of the recovery in economic activity and employment has moderated in months, with weaknesses concentrated in the sectors most adversely affected by the pandemic. Central Bank also said that the path for the economy would depend significantly not just on the coronavirus but also on vaccination progress. There was no macroeconomic data from Japan to be released on Wednesday, so the pair USD/JPY continued following the developments made in the U.S. front and continued rising on the day.


Daily Technical Levels

Support Resistance

103.49 103.77

103.38 103.94

103.20 104.05

Pivot point: 103.66

USD/JPY – Trading Tips

The USD/JPY pair is trading with a bullish bias at 104.350, and violation of this level is likely to lead the USD/JPY pair until the 104.745 level. On the lower side, the USD/JPY may find support at the 104.198 level. We can expect USDJPY to bounce off upon the 104.198 level today. On the 4 hour timeframe, the USDJPY pair is likely to close a doji candle below 104.368 level. If this happens, we may see a bearish correction in the USD/JPY pair. Good luck! 

Categories
Forex Signals

AUD/USD Bearish Bias Continues – Sell Signal In Play!

The AUD/USD pair was closed at 0.77473 after placing a high of 0.77540 and a low of 0.76686. After placing losses for 2 consecutive sessions, AUD/USD pair rose on Tuesday amid the turnaround of risk appetite in the market sentiment. The risk-sensitive Australian dollar gained traction on Tuesday after the positive vaccine news took hold of the market. The European equities, US stocks, and Bond yields rose during European trading hours amid the risk appetite in the market driven by attesting vaccine developers’ announcement.

Moderna and Pfizer announced that they were investigating work on the booster vaccine shots that will provide immunity even against the new variants like the one that emerged in UK, Brazil, and South Africa and promised to deliver them by 6-12 months. Whereas Johnson & Johnson also announced to release its vaccine data later this week and was very hopeful that their data will be robust and game-changer. As J7J has claimed that its vaccine will provide full immunity in a single shot, unlike other current vaccines that provide 90-95% immunity.
The rising risk sentiment because of the positive vaccine news gave strength to the risk perceived Aussie and supported the upward momentum in AUD/USD pair on Tuesday.

On the data front, at 19:00 GMT, the Housing Price Index from the US for November improved to 1.0% against the predicted 0.9% and supported the US dollar that capped further gains in AUD/USD pair. The S&P/CS Composite -20 HPI for the year also improved to 9.1% against the predicted 8.8% and supported the US dollar. At 19:59 GMT, the Richmond Manufacturing Index for January weakened to 14 against the predicted 18 and weighed on the US dollar and added gains in AUD/USD pair. At 20:00 GMT, the CB Consumer Confidence in January improved to 89.3 against the predicted 88.9 and supported the US dollar.

Despite strong macroeconomic data from the US, the US dollar failed to gain traction on Tuesday as the US Dollar Index fell by 0.2% on the day against the basket of major currencies. The decline in the US dollar could be attributed to the rebound in risk sentiment in the market. The weakness of the US dollar also helped AUD/USD pair to post gains for the day.

However, the AUD/USD pair’s gains were somehow capped as the tensions between the US & China escalated at the South China Sea. After the warning from Chinese President Xi Jinping, who said that if global leaders will try to intimidate or threaten others, then a new Cold War could begin and urged them to be united in the face of coronavirus pandemic. These developments weighed on China-proxy Aussie and capped further upside in AUD/USD pair on Tuesday.


Daily Technical Levels
Support Resistance
0.7677 0.7744
0.7646 0.7780
0.7610 0.7810
Pivot Point: 0.7713

Entry Price – Buy 0.7719
Stop Loss – 0.7759
Take Profit – 0.7679
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

NZD/USD Sell Signal Update – Quick Outlook! 

The NZDUD pair is trading at 0.7229 level, gaining immediate support around the 0.7224 mark. A bearish breakout of 0.7224 level can extend selling until 0.7214 and 0.7201. Conversely, a breakout of 0.7240 can lead the NZDUSD pair towards 0.7280.


Entry Price – Sell 0.72255

Stop Loss – 0.72655

Take Profit – 0.71855

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

USD/CAD Choppy Session Continues – Brace for a Breakout Trade! 

The USD/CAD pair was closed at 1.26954 after placing a high of 1.27823 and a low of 1.26897. After placing gains for three consecutive sessions, the USD/CAD pair dropped on Tuesday despite the broad-based US dollar strength and the declining crude oil prices. The USD/CAD pair rose in the first half of the day and posted gains; however, these gains could not live longer and started to close in the second half of the session on Tuesday. The market’s mixed sentiment caused this downward momentum in the USD/CAD pair on the day.

During early trading hours on Tuesday, the risk-off market sentiment kept weighing on the USD/CAD pair as the US dollar was strong due to its safe-haven status. The greenback gained traction after the tensions between the US & China erupted once again at the South China Sea. Furthermore, the Chinese President’s latest warning against the New Cold War also played an important role in giving strength safe-haven greenback.

The Chinese President Xi Jinping warned global leaders on late Monday that starting a new Cold War should be avoided and urged unity in the face of coronavirus pandemic. He added that threatening others and building small cliques will only push the world into division.  

Furthermore, the report from John Hopkins University suggests that the global count of confirmed coronavirus cases reached 100 million in a year and raised concerns for global economic recovery as many nations were still under lockdown and weighed on market sentiment that ultimately weighed on the risk perceived USD/CAD pair.

Meanwhile, the market’s risk sentiment started to turn around as the positive news from Moderna and Pfizer came in to deliver booster shots of the vaccine in about 6-12 months that will provide full immunity. Whereas Johnson & Johnson also announced that it would release data on its vaccine for coronavirus. It was highly awaited as J&J has advertised its vaccine as a game-changer because it would provide full immunity in a single shot, unlike other vaccines so far.

However, the USD/CAD traders seemed to ignore the rebound in market risk sentiment and continued moving with the risk-averse market sentiment, and hence, the USD/CAD pair remained depressive for the day.

On the data front, at 19:00 GMT, the Housing Price Index from the US for November increased to 1.0% against the estimated 0.9% and supported the US dollar. The S&P/CS Composite -20 HPI for the year also increased to 9.1% against the estimated 8.8% and supported the US dollar that capped further downside in the USD/CAD pair. At 19:59 GMT, the Richmond Manufacturing Index for January plunged to 14 against the estimated 18 and weighed on the US dollar, and added further losses in the USD/CAD pair. At 20:00 GMT, the CB Consumer Confidence in January increased to 89.3 against the estimated 88.9 and supported US dollar.

On the crude oil front, the traders also ignored the movements of West Texas Intermediate crude oil prices on Tuesday that declined to $52.27 for the day and weighed on commodity-linked currency Loonie that ultimately caped further downside in the movement of USD/CAD pair.

On Wednesday, the traders will keep a close eye on the US Federal Reserve’s decision to find fresh impetus about the USD/CAD pair movement.


Daily Technical Levels

Support Resistance

1.2688 1.2783

1.2639 1.2829

1.2593 1.2878

Pivot Point: 1.2734

The USD/CAD pair continues to trade sideways in between a narrow trading range of 1.2737 – 1.2688 level. Breakout of this level can drive further moves in the market. On the higher side, the USD/CAD pair can lead it’s price towards 1.2794 and on the lower side, support holds around 1.2626. Let’s brace for a breakout! 

Categories
Forex Market Analysis

Daily F.X. Analysis, January 27 – Top Trade Setups In Forex – Big Day, Fed Rate Ahead! 

On the news front, the eyes will remain on the FOMC Statement and Federal Funds Rate, which is not expected to change the interest rate. Still, it will help us understand U.S. economic situation and policymakers’ stance on it. Besides, the Durable Goods Orders m/m from the U.S. will also remain in highlights.

Economic Events to Watch Today  

 


EUR/USD – Daily Analysis

The EUR/USD closed at 1.21595 after placing a high of 1.21756 and a low of 1.21076. The EUR/USD pair edged higher on Tuesday as the U.S. Dollar Index (DXY) dropped and the risk appetite in the market witnessed a major turnaround. After a mixed start on the session, the European equities embarked upon a recovery mode and brought back the market’s risk sentiment. The pan-European benchmark, the Euro Stoxx 50, rallied by 1% and lifted the overall market mood. Whereas, the safe-haven U.S. dollar came under pressure after a rise in European equities and come back of risk sentiment that ultimately added gains in the currency pair EUR/USD on Tuesday.

In the early Asian trading session, the main currency pair EUR/USD extended its previous day’s bearish sentiment and fell below 1.2108, on the back of the U.S. dollar’s strength gathered by the risk-off market mood driven by the deadlock over U.S. fiscal stimulus and the renewed US-China tensions over the South China Sea.

On Tuesday, China said that it would conduct military exercises in the South China Sea this week, just days after complaining that a U.S. aircraft carrier group has sailed through the disputed waters. These rising tensions between the world’s two largest economies raised the safe-haven appeal in early trading hours on Tuesday. They lifted the greenback that ultimately dragged the currency pair EUR/USD on the downside.

 However, during early European trading hours, the risk-sentiment started to come back as the positive shift in the tone of the news flow on the coronavirus front. Moderna and Pfizer announced that they were looking into coronavirus booster shots that would specifically target building immunity to variants of the virus, such as that discovered in South Africa a few weeks ago. 

Furthermore, Johnson & Johnson’s CFO has said earlier that they expect to release COVID-19 vaccine trial data next week. The company was very optimistic that they will be releasing a very robust data set. The J&J’s vaccine has been advertised as a game-changer in the vaccination race as it would only require one shot to acquire full immunity. This vaccine-related optimism helped risk sentiment in the market and supported riskier assets like EUR/USD pair on Tuesday.

On the data front, there was no macroeconomic data released from the European side. In contrast, from the U.S. side, at 19:00 GMT, the Housing Price Index from the U.S. for November rose to 1.0% against the forecasted 0.9% and supported the U.S. dollar that capped further upside in the EUR/USD pair. 

The S&P/CS Composite -20 HPI for the year also rose to 9.1% against the forecasted 8.8% and supported the U.S. dollar. At 19:59 GMT, the Richmond Manufacturing Index for January declined to 14 against the forecasted 18 and weighed on the U.S. dollar that added gains in the EUR/USD pair. At 20:00 GMT, the C.B. Consumer Confidence in January rose to 89.3 against the forecasted 88.9 and supported the U.S. dollar and limited further gains in the EUR/USD pair on Tuesday.


Daily Technical Levels

Support   Resistance

1.2108     1.2177

1.2077     1.2215

1.2039    1.2245

Pivot Point: 1.2146

EUR/USD– Trading Tip

The EUR/USD pair is trading at 1.2156, facing immediate resistance at 1.2165 level. The EUR/USD has entered the overbought zone on the hourly timeframe, suggesting odds of bearish correction in the pair. On the lower side, the pair is likely to complete 38.2% Fibonacci retracement at 1.2150 and 61.8% Fibonacci retracement at 1.2134. Selling bias seems strong.


GBP/USD – Daily Analysis

The GBP/USD pair was closed at 1.37363 after placing a high of 1.37443 and a low of 1.36092. GBP/USD pair rebounded on Tuesday during early European trading hours after falling below 1.36100 level. The GBP/USD pair’s comeback was due to the recovered risk appetite in the market and Britain’s strong job report.

However, despite the strong macroeconomic data from Great Britain, the GBP/USD pair benefited from the broad U.S. dollar’s weakness on Tuesday as investors focused more on the U.S. Federal Reserve’s upcoming decision. The risk appetite took a significant turn during the early European trading hours after a downbeat Asa Pacific session. It weighed on the safe-haven U.S. dollar that ultimately lifted the GBP/USD pair on Tuesday. U.S. stocks were high, European equities erased most of Monday’s losses, the crude oil market was also high, and bond yields were rising on both sides of the Atlantic. 

The reason behind the turnaround of the risk sentiment was the positive vaccine news, as Moderna and Pfizer announced last night that they were starting investigating a booster vaccine shot that will come between 6-12 months after the second doses and will provide immunity against the new variants of coronavirus like the one emerged in South Africa in the past few days. Meanwhile, the Johnson & Johnson CFO also said on Tuesday that they expect to release the trail data for their coronavirus vaccine next week. They were very optimistic that the data will be robust and have claimed that their vaccine will be a game-changer in the vaccine race as it will provide full immunity in a single shot.

The rising risk sentiment in the market helped the risk perceived GBP/USD currency pair gain traction and rose to post gains for the day. On the data front, at 19:00 GMT, the Housing Price Index from the U.S. for November surged to 1.0% against the projected 0.9% and supported the U.S. dollar, and capped further upside in the GBP/USD pair. The S&P/CS Composite -20 HPI for the year also surged to 9.1% against the projected 8.8% and supported the U.S. dollar. At 19:59 GMT, the Richmond Manufacturing Index for January decreased to 14 against the projected 18 and weighed on the U.S. dollar, which ultimately added more GBP/USD pair gains. At 20:00 GMT, the C.B. Consumer Confidence in January surged to 89.3 against the projected 88.9 and supported the U.S. dollar that capped further bullish momentum in GBP/USD pair.

From the Britain side, at 12:00 GMT, the Average Earnings Index for the quarter raised to 3.6% against the estimated 2.9% and supported the British pound that pushed the pair GBP/USD even higher on board. For December, the Claimant Count Change declined to 7.0K against the forecasted 47.5K and supported Sterling, which ultimately added more GBP/USD pair gains. In December, the Unemployment Rate from Britain also dropped to 5.0%against the forecasted 5.1% and supported British Pound that lifted the bullish sentiment in GBP/USD pair. AT 16:00 GMT, the CBI Realized Sales in January dropped to -50 against the estimated -32 and weighed on British Pound and capped further upside in GBP/USD pair on Tuesday.

Another reason that could also be attributed to the rising prices of GBP/USD pair on Tuesday was UK PM Boris Johnson’s latest announcement about new travel instructions. The incoming passengers in the U.K. will need to self-fund a quarantine for ten days in a hotel. The new policy was a part of a government strategy to prevent foreign strains of the virus from entering the U.K. This also helped British Pound gain strength and support the GBP/USD pair’s upward momentum on Tuesday.


Daily Technical Levels

Support   Resistance

1.3641     1.3717

1.3607     1.3759

1.3565     1.3794

Pivot Point: 1.3683

GBP/USD– Trading Tip

On Wednesday, the GBP/USD pair continues trading with a bullish bias at 1.3733 level after violating the symmetric triangle pattern. The GBP/USD pair is trading with a bullish bias on the two-hourly timeframes, facing immediate resistance at 1.3749 area. A bullish breakout of this level is expected to trigger further buying trends until the 1.3807 mark. Today, we can expect to enter a buy position over 1.3749 and selling below the same. 


USD/JPY – Daily Analysis

The USD/JPY pair was closed at 103.617 after placing a high of 103.826 and a low of 103.553. After rising for two consecutive sessions, the USD/JPY pair dropped on Tuesday despite the market’s rising risk-on market sentiment. The U.S. Dollar Index (DXY), which measures the value of the greenback against the basket of six major currencies, was up on Tuesday by 0.2% at 90.547 level and supported the U.S. dollar. The safe-haven greenback gained in early trading hours of the day as the rising tensions between the U.S. and China over the South China Sea prompted the risk-off mood. 

On Tuesday, China said that it would conduct military exercises in the South China Sea later this week. This announcement came in just days after they had complained that a U.S. aircraft carrier group has sailed through the disputed waters. This helped the Japanese Yen gain traction due to its safe-haven nature and weighed on the USD/JPY pair. 

The US-China relation also came under headlines after Chinese President Xi Jinping warned against the new cold war. On Monday, Xi warned global leaders against starting a “new Cold War” and urged unity in the face of the coronavirus pandemic. He said that building small cliques or starting a new Cold War to reject, threaten or intimidate others will only push the world into division.

The words appeared to be aimed at U.S. President Joe Biden’s plans to revitalize global alliances to counter China’s growing influence. These comments added to the tensions between China and the U.S. and raised the need for safe-haven that ultimately supported the safe-haven Japanese Yen and dragged the pair USD/JPY on the downside. However, the market’s risk sentiment came back during early European trading hours after positive news from vaccine makers came into the market. Moderna and Pfizer announced that they have started working on the booster shots of vaccines that will provide full immunity even against the new variants of the coronavirus like the one that emerged in South Africa. Meanwhile, the Johnson & Johnson CFO also announced that they would release their vaccine data next week, and they were very optimistic that it will be robust data. J&J has claimed that their vaccine will provide full immunity in a single shot, and if the data suggested so, it would be a game-changer in the vaccine race so far.

The rising risk sentiment in the market could not lift the USD/JPY pair, and the pair continued moving in the bearish trend for the day.

On the data front, at 19:00 GMT, the Housing Price Index from the U.S. for November advanced to 1.0% against the anticipated 0.9% and supported the U.S. dollar that capped further losses in the USD/JPY pair. The S&P/CS Composite -20 HPI for the year also advanced to 9.1% against the anticipated 8.8% and supported the U.S. dollar. At 19:59 GMT, the Richmond Manufacturing Index for January fell to 14 against the anticipated 18 and weighed on the U.S. dollar, adding more losses in the USD/JPY pair. At 20:00 GMT, the C.B. Consumer Confidence in January advanced to 89.3 against the anticipated 88.9 and supported U.S. dollar.

From the Japanese side, at 04:50 GMT, the SPPI for the year in December came in as -0.4% against the predicted -0.6% and supported Japanese Yen that added further downside momentum in the USD/JPY pair. At 10:00 GMT, the BOJ Core CPI for the year dropped to -0.3% against the expected -0.1% and weighed on the Japanese Yen.

Furthermore, the losses in USD/JPY were also capped after the announcement from the U.S. President Joe Biden on Tuesday. He said that the U.S. would accelerate the delivery of coronavirus vaccines across the country as his administration plans to buy 200 million more doses of the Pfizer-BioNTech and Moderna vaccines. However, Biden also warned that even with more Americans set to be inoculated sooner than previously anticipated due to additional doses, the pandemic would continue to worsen before it gets better. 

According to the Johns Hopkins University data, the number of confirmed coronavirus cases worldwide has passed 100 million just over a year since the first cases of the mysterious new illness was reported in the Chinese city of Wuhan. This weighed on market sentiment and supported the safe-haven Japanese Yen that ultimately added the USD/JPY pair’s losses on Tuesday.


Daily Technical Levels

Support   Resistance

103.62     103.89

103.50     104.06

103.34     104.17

Pivot point: 103.78

USD/JPY – Trading Tips

On Wednesday, the USD/JPY continues to trade sideways inside a broad trading range of 103.900 – 103.560. The USD/JPY has formed a symmetrical triangle pattern on the 4-hour timeframe, and it has the chance of leading the pair towards the next resistance level of 104.800 upon the breakout of 104.810. The 50 periods EMA supports the bullish trend, and we may have odds of taking a buying trade over the 103.570 level today. Good luck! 

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Forex Signals

USD/CAD Violates Upward Channel – Sell Signal Update!

The USD/CAD pair was closed at 1.27434 after placing a high of 1.27789 and a low of 1.26871. The USD/CAD pair continued its bullish movement for the 3rd consecutive session on Monday and reached above 1.27700 level amid the broad-based US dollar strength despite the risk-off market sentiment and the rising crude oil prices on the day.

The greenback gathered strength against its rivals after a sharp decline in EUR/USD pair triggered by the disappointing German Ifo Business Climate on Monday. The US Dollar Index climbed above 90.30 with the initial marker reaction and made the US dollar stronger on board, ultimately pushing the USD/CAD pair higher.

Another reason behind the rising US dollar prices was the speculations that the $1.9 trillion stimulus package proposed by Joe Biden is expected to face rejection by Democrats and Republicans in the Senate as they were not in favor of more spending just after a month in massive expenditures of $900 billion. The hopes that the US’s massive stimulus package will be delayed due to a difference of opinion gave strength to the US dollar that pushed the rising USD/CAD prices on Monday.

Meanwhile, the USD/CAD pair traders ignored the rising West Texas Intermediate crude oil prices on Monday. The crude oil prices rose by 1.5% on the day and supported the commodity-linked currency Loonie that ultimately capped further upside in the USD/CAD pair’s rising prices.

However, On Monday, Canada marked the anniversary of the first case of coronavirus that was identified in the country. After a year of living with the pandemic, Canada dealt with the increasing spread of new and more contagious variants. Canada reported six new cases of the UK variant of coronavirus and 3 cases of the South Africa variant of coronavirus on Monday, up from 4 and 1.

The rising number of new variant cases of coronavirus infections in Canada raised fears for the nationwide lockdown to curb the spread of this variant and raised threats for an economic recovery that ultimately weighed on the Canadian Dollar and added in the gains of USD/CAD pair on Monday. On the US front, the coronavirus deaths and cases per day in the US dropped markedly over the past couple of weeks but were still running at alarmingly high levels. The government’s top infectious disease expert Dr. Anthony Fauci said that improvement in numbers around the country appears to be the result of natural peaking and then plateauing after a holiday surge rather than an effect of the rollout of vaccines that began in mid-December. This diminishing rate of cases and deaths in the US added to the US dollar’s strength and supported the upward momentum in the USD/CAD pair on Monday.


Daily Technical Levels

Support Resistance

1.2715 1.2738

1.2703 1.2749

1.2693 1.2761

Pivot Point: 1.2726

Entry Price – Sell 1.27067

Stop Loss – 1.27467

Take Profit – 1.26667

Risk to Reward – 1:1

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

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

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Forex Signals

AUD/USD Three White Soldiers – Downward Channel Set to Break! 

The AUD/USD closed at 0.77128 after placing a high of 0.77471 and a low of 0.76824. AUD/USD pair remained flat throughout the day as it ended its day at the same level it started its day with on Monday. The AUD/USD pair advanced higher during the European trading hours but reversed its gains in the second half of the day on the back of US dollar strength and the risk-off market sentiment. The risk perceived Aussie suffered when the rising global number of deaths and coronavirus cases raised fears for global economic recovery and surged the appeal for a safe-haven.

As the banks were closed due to Australia Day Holiday on Monday, the currency pair AUD/USD left with the US dollar market valuation. The US Dollar Index (DXY) climbed to 90.51 on Monday however struggled to remain there and preserve its bullish momentum. The rising greenback prices added weight to the AUD/USD pair, and the pair started to lose its early daily gains. The US dollar was also strong on board as the rival currencies, including Euro and British Pound, were weak on the day. As well, the prospects of the massive stimulus of $1.9 trillion in coronavirus relief fund were also fading in the market over the speculation of bill facing rejection at Senate. Senate has already passed a bill of 900 billion US dollars in the previous month, and there is very little possibility that they would agree to pass trillions of dollars in spending after a short passage of time.

These hopes also kept the US dollar stronger and continued weighing on the AUD/USD pair on Monday. Meanwhile, the risk-off market sentiment also kept the pair under pressure on the day. The rising number of coronavirus cases and death rate across the globe due to new variants of COVID-19 raised fears of nationwide lockdown in many countries that ultimately raised the question of global economic recovery and supported the risk-off market sentiment.

The risk-sensitive Aussie suffered in risk-off market sentiment and started to decline that ultimately dragged the pair AUD/USD further on the downside, and the pair closed its day on the same level it started its day with, giving flat movement for the day. On the data front, at 19:00 GMT, CB Leading Index from China raised in December to 1.2% against the previous 1.1% and supported the China-proxy Australian dollar, and capped further downside in AUD/USD pair.



Daily Technical Levels

Support Resistance

0.7706 0.7723

0.7698 0.7732

0.7688 0.7741

Pivot Point: 0.7715

The AUD/USD is trading at 0.7733 level, having formed three white soldiers on the two-hourly timeframe. On the higher side, the pair may find an immediate resistance at the 0.7745 level. Continuation of an upward trend can extend buying trend until 0.7745 level. A bullish breakout of 0.7745 level is also expected to trigger further buying until the next target level of 0.7776 level. The MACD is exhibiting a bullish crossover on the two-hourly timeframes, and the downward channel seems to get violated. I will be looking to take a sell trade if the Aussie manages to stay below the 0.7745 level. Good luck! 

Categories
Forex Market Analysis

Daily F.X. Analysis, January 26 – Top Trade Setups In Forex – C.B. Consumer Confidence Ahead! 

Investor’s eyes will stay on the Claimant Count Change and Unemployment Rate data from the U.K. as it’s likely to drive market movements during the European session. Later on, the C.B. Consumer Confidence from the U.S. will focus on the New York session today.

Economic Events to Watch Today  

  


EUR/USD – Daily Analysis

The EUR/USD closed at 1.21415 after placing a high of 1.21831 and a low of 1.21158. After rising for two consecutive sessions, the EUR/USD pair dropped on Monday as the common currency remained under pressure due to the slow pace of coronavirus vaccination roll out in Europe. The slow distribution of vaccines and the new manufacturing issues lagged the COVID-19 vaccination rollout in the old continent. After Pfizer told the E.U. that retooling in its Belgian plant would cause a delay, AstraZeneca made a similar announcement on Friday. The bloc has a substantial deal with the British pharmaceutical, and the European regulator was set to approve it on Friday.

Apart from the vaccine delays, the fears of new coronavirus variants were also of concern and could trigger another nationwide lockdown in France, the Eurozone’s second-largest economy. Berlin has also announced to extend its restrictions through mid-February. On the other hand, the safe-haven U.S. dollar was on the back foot across the board due to U.S. President Joe Biden pushing his $1.9 trillion relief program. Simultaneously, moderate Senators were pushing back against approving new expenditure only a month after they approved $900 billion of funds. However, Democrats were set to ram through the package via a reconciliation that would relieve them of the need to receive Republicans’ support.

Another option is to quickly approve the coronavirus-related funds and delaying the other aspects of the suggested package, such as a hike to the minimum wage. These options also kept the prospects of package delivery in the act and kept weighing on the U.S. dollar that ultimately capped further downside in the EUR/USD pair. On the data front, at 14:00 GMT, the German IFO Business Climate dropped to 90.1 against the forecasted 91.5 and weighed on Euro. At 19:00 GMT, the Belgian NBB Business Climate dropped to -7.5 against the expected -8.0 and supported Euro.

It seems like the German Business Climate went down because of the issues mentioned above, as the lockdown restrictions have badly disturbed the business community and weighed on the common currency that dragged the EUR/USD prices on the downside. Meanwhile, equity markets have posted healthy gains over the last few weeks on bets coronavirus vaccines will start to reduce infection rates worldwide and on a stronger U.S. economic recovery under President Joe Biden. 

However, the vaccine rollout has been uneven, with relatively rapid progress in the U.K. but a much slower rollout in France. AstraZeneca warned of further delays to deliveries of its vaccines in Europe on Friday due to production blockage at one of its manufacturing partners. Over the weekend, Italy threatened legal action against both Astra and Pfizer over delivery delays. On Sunday, France has announced to impose a third lockdown that was already under a national 12-hour curfew. All these developments turned the European futures red and weighed on risk sentiment that ultimately dragged the EUR/USD pair on the downside.

On Monday, ECB President Christine Lagarde said that Climate Change could create short-term volatility in output and inflation through extreme weather events and, if left unaddressed, can have long-lasting effects on growth and inflation. ECB announced on Monday that it was creating a team of around 10 ECB employees, reporting directly to Lagarde to set the central bank’s agenda on climate-related topics.

On Monday, the ECB Chief Economist Philip Lane said that the European Central bank primarily focused on bank credit conditions ad bond yields when assessing if financing conditions were favorable. He added that naturally, the focus on credit conditions in the banking system on one side and the bond market on the other side was consistent with the main methods used by central banks in steering financial conditions. On Tuesday, the Federal Reserve will meet for its first monetary policy meeting, and the decision of the meeting will be handed down on the next day. EUR/USD pair traders will keep an eye on Fed’s decision for future impetus.


Daily Technical Levels

Support   Resistance

1.2163       1.2173

1.2158       1.2178

1.2153       1.2183

Pivot Point: 1.2168

EUR/USD– Trading Tip

The EUR/USD pair’s technical side has turned bearish as it trades below the support level of 1.2133 level. Formation of the bearish engulfing candle on the hourly timeframe can extend selling bias until the support level of 1.2115 area. Whereas, further selling trend can lead the EUR/USD pair towards the support level of 1.2090 mark. Selling bias seems to dominate the EUR/USD pair today.


GBP/USD – Daily Analysis

The GBP/USD closed at 1.36757 after placing a high of 1.37232 and a low of 1.36485. The GBP/USD pair struggled to advance on Monday amid the concerns over the coronavirus pandemic that worsened and raised the safe-haven appeal. The US Centers for Disease Control and Prevention reviewed data that suggested the U.K. coronavirus variant actually may be deadlier than other variants. A British report found that the variant was associated with a higher death rate than other variants. But the United Kingdom’s chief scientist Patrick Vallance has stressed to reporters that the evidence was not yet strong. 

Previous research has shown that the variant was more contagious than the previous form of coronavirus. But scientists did not believe it was more deadly as it began spreading in the U.K. last fall. Several separate analysis from British researchers found that the patients infected with the variant have a higher risk of severe disease and death. However, U.K. scientists insisted that these researches have several limitations and that more research was needed to confirm these findings.

These reports raised concerns for economic recovery as the threats of new variants could mean new and stricter restrictions throughout the globe. That raised the risk-off market sentiment that ultimately weighed on the risk perceived GBP/USD pair on Monday.

The British Pound advanced last week against its major rival currencies due to a combination of higher market sentiment and hopes for Britain ramping up its coronavirus vaccination scheme. However, the coronavirus pandemic continued to weigh heavily on the British Pound outlook due to the new variant and its association with the mortality rate. As a result, the U.K. government indicated that the current lockdown could last for quite some time as infection rates remain high in the country. These coronavirus fears continued weighing on the British Pound on Monday and dragged the GBP/USD pair on the downside in the absence of any macroeconomic data from both sides.

On the U.S. side, the safe-haven U.S. dollar was strong on Monday as investors were hesitant to sell it as global coronavirus pandemic fears boosted the appetite for safer assets. The greenback’s strength also weighed on GBP/USD pair and extended its losses on the day. However, the GBP/USD pair’s losses started to reverse in the late session on Monday, and the currency pair ended its day with zero loss or gained as it was closed at the same level it began its day with. The reversal in GBP/USD pair in late trading hours came in due to some good news from the U.K. side. 

The U.K. saw a sustained weakness in the infections and the death toll on Monday as the country reported the lowest cases since mid-December on that day. The British Health Secretary Matt Hancock praised the latest measures to flash early positive signs while conveying heavy vaccination and lockdown success. However, the overall sentiment remained depressing as the delayed U.S. coronavirus aid package and AstraZeneca and Pfizer vaccine delivery raised fears for global economic recovery.


Daily Technical Levels

Support   Resistance

1.3677       1.3694

1.3668       1.3700

1.3661       1.3710

Pivot Point: 1.3684

GBP/USD– Trading Tip

The GBP/USD pair continues trading with a bullish bias after violating the narrow trading range of 1.3680 – 1.3670. On the upper side, the GBP/USD may face resistance at 1.3736 level now, as the pair may form a triple top pattern here. At the same time, the support continues to hold around 1.3697 level. On the 2 hour timeframe, the GBP/USD has formed a symmetric triangle pattern, which is likely to provide resistance at 1.3701 along with support at 1.3613 level. Today, we can expect a choppy session in the Cable pair.   


USD/JPY – Daily Analysis

The USD/JPY closed at 103.756 after placing a high of 103.934 and a low of 103.670. USD/JPY pair extended its gains on Monday however remained depressive due to the risk-off market sentiment.

The demand for the greenback of risk-aversion pushed the USD/JPY pair to a daily high near 104 level. However, the U.S. treasury yields came under pressure with the yield on benchmark 10-year note down to 1.03% weighed by the news that U.S. President Biden’s stimulus plan faces opposition from Republican and Democrat lawmakers.

The $1.9 trillion stimulus package proposed by Biden is expected to get pass by the House of Representatives that is led by Democrats backing Biden. Still, the bill could face rejection at Senate as many senators were reluctant to pass another massive amount for spending just after a month of releasing $900 billion. However, Democrats were set to push through the package via a settlement that would relieve them of the need to receive Republicans’ support. Another option is to rapidly support the coronavirus-related funds and postpone the other suggested package features, such as a hike to the minimum wage.

Furthermore, the Federal Reserve monthly rate decision followed by Fed Chair Jerome Powell’s news conference is set to deliver later this week. Rates are projected to remain flat at a near-zero level that has stood there for almost a year now due to the coronavirus pandemic crisis. However, Powell’s words will be inspected for even the smallest signal of when recovery is likely expected, and as well as a narrowing of stimulus measures.

Over the past fortnight, Powell has claimed that tapering of stimulus measures will not happen anytime soon. Still, bond traders have completely ignored him and continued pushing yields higher in the hope of proving the Fed chief wrong that ultimately supported the U.S. dollar and raised the USD/JPY pair on Monday. 


Daily Technical Levels

Support   Resistance

103.77       103.82

103.74       103.86

103.71       103.88

Pivot Point: 103.80

USD/JPY – Trading Tips

The safe-haven pair USD/JPY continues to trade sideways inside a broad trading range of 104.340 – 103.560. The USD/JPY has formed a sideways channel on the 4-hour timeframe, and it has the chance of leading the pair towards the next resistance level of 104.800 upon the breakout of 104.810. The 50 periods EMA supports the bullish trend, and we may have odds of taking a buying trade over the 103.570 level today. Good luck! 

Categories
Forex Signals

Oversold USD/CHF Exhibiting a Bullish Correction 

The USD/CHF pair is trading bearish at 0.8862 level, and the continuation of an upward trend can extend buying trend until the next target level of 0.8874 level. So far, the pair has completed 38.2% Fibonacci retracement at 0.8874 level. Since the 10 & 20 periods, EMA supports bullish bias along with the MACD and RSI levels. On the higher side, a continuation of an upward trend can lead the USD/CHF pair towards the next target level of 0.8892. Check out a trading plan below: 


Entry Price – Buy 0.88715

Stop Loss – 0.88315

Take Profit – 0.89115

Risk to Reward – 1:1

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

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

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Categories
Forex Signals

EUR/JPY Enters Overbought Zone – Brace to take Sell Trade! 

 

The EUR/JPY is trading with a bearish bias at 126.285 level, holding mostly below the triple top resistance level of 126.400 level. Continuation of a selling trade can extend bearish bias until the 126 and 125.750 mark. The EUR/JPY pair’s strong selling bias is extended by 10 & 20 periods EMA seen on the hourly timeframe. Below these levels, the EUR/JPY may continue trading bearish and offer us quick 30/40 pips during the U.S. session today. Check out a trading plan below: 


Entry Price – Sell 126.11

Stop Loss – 126.51

Take Profit – 125.71

Risk to Reward – 1:1

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

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

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

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

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

Categories
Forex Signals

AUD/USD Sideways Trading Continues – Downward Channel in Play!

The AUD/USD pair was closed at 0.77101 after placing a high of 0.77696 and a low of 0.77017. After rising for three consecutive days, AUD/USD pair dropped on Friday as the US dollar was seen stronger on the week’s ending day. As well, the rising demand for safe-haven and risk-off market sentiment also weighed on the AUD/USD pair.

The risk-sensitive Aussie came under fresh pressure after the new variants of coronavirus from Britain and South Africa prompted many countries to impose further restrictions to curb the virus’s spread and raise economic recovery concerns. The US imposed travel bans from Brazil, UK, South Africa, and 26 countries from European Union to protect Americans from new variants of coronavirus. The new variants were said to be more deadly as the death rate across the UK reached its highest level in the world on Wednesday. The US has also seen a rise in the mortality rate as the total infection cases reached 25 million.
This worsened coronavirus pandemic concerns for the global economic recovery and raised the need for safe-haven and risk-off market sentiment that ultimately weighed on the risk-perceived Aussie. The weakness of the Australian dollar added to the losses of the AUD/USD pair on Friday.

On the data front, at 19:45 GMT, the Flash Manufacturing PMI improved to 59.1 against the predicted 56.6 and supported the US dollar that added more pressure on AUD/USD pair. The Flash Services PMI also improved to 57.5 against the predicted 53.3 and supported the US dollar that weighed on AUD/USD pair. At 20:00 GMT, the Existing Home Sales also improved to 6.76M against the predicted 6.55M and supported the US dollar that ultimately added more losses in the AUD/USD pair. From the Australian side, at 03:00 GMT, the Flash Manufacturing PMI for January raised to 57.2 against the previous 55.7 and weighed on Aussie that added more pressure over AUD/USD pair. The Flash Services PMI dropped to 55.8 against the previous 57.0 and weighed on the Australian dollar. At 05:30 GMT, the Retail Sales for December dropped to -4.2% against the forecasted -1.5%, weighed on the Australian dollar, and dragged the AUD/USD pair even lower.

Another reason behind the decline of the AUD/USD pair on Friday was the US dollar’s strength driven by the rising prices of US Treasury yields. The US Dollar Index that measures the value of the greenback against the basket of six major currencies rose by 0.1%on Friday and reached 90.243 level that ultimately gave strength to the greenback and added further pressure on the AUD/USD pair.

The US Dollar was weak in the past days as the hopes for a massive stimulus package from Joe Biden was expected. After taking his office, Biden has proposed a $1.9 trillion relief aid package to help the economy through the pandemic crisis, and now traders have mostly ignored it as it has already been priced in, and that is why the US dollar kept on rising on Friday and weighing on AUD/USD pair.


Daily Technical Levels
Support Resistance
0.7740 0.7780
0.7720 0.7802
0.7699 0.7821
Pivot point: 0.7761

The AUD/USD pair has violated the support level of 0.7745 level, and it’s holding below the same resistance level right now. On the lower side, the AUD/USD may extend the selling trend until the 0.7706 and 0.7676 level. The recent bearish engulfing candles are supporting selling bias in the AUD/USD pair. We should consider taking a selling trade below the 0.7745 level today. Good luck!

Categories
Forex Signals

Gold Closed 28 Pips – Brace for a Breakout Trade!

During Monday’s Asian trading session, the yellow metal prices failed to maintain their overnight bullish streak. They edged lower around the $1,855 level mainly due to the risk-on market sentiment, which tends to weaken the safe-haven yellow-metal prices as investors continuing a retreat from the safe-haven asset after renewed progress in U.S. stimulus measures.

Despite the ever-increasing infections of the covid strain outside the epicenter of Britain and South Africa, the market trading sentiment managed to stop its overnight negative performance and started to flash green on the day amid renewed hopes for additional U.S. fiscal stimulus measures. These hopes were triggered instantly after the incoming chairman of the U.S. Senate Budget Committee said that Democrats would use a rare procedural tactic to pass major parts of a Covid-19 relief package if Republicans refuse to move on the measure. In addition to this, the optimism over the rollout of vaccines for the highly infectious coronavirus disease was also exerting a positive impact on the market trading sentiment. As a result, the S&P 500 Futures print 0.20% intraday gains by press time of Asian session on the day.

At the USD front, the broad-based U.S. dollar failed to stop its long bearish bias and dropped further on the day as demand for the safe-haven assets declined amid progress toward agreeing on U.S. fiscal stimulus. Conversely, the declines in the U.S. dollar could be short-lived or temporary as the fresh COVID-19 worries and weak European economic data helps the safe-haven assets to stop t its bearish rally.


Gold traded in line with our forecast to test the support area of 1,850 level, but soon it started forming candles upward, supporting bullish reversal in the precious metal. Thus, we decided to close the trade manually with +28 pips. Soon we will open another position in gold to secure the next trade; let’s stay tuned. Good luck!

Categories
Forex Elliott Wave Forex Market Analysis

USDCHF: Examine These Three Charts Before Taking any Trade

 

Last week, the USDCHF pair developed a sideways movement pattern that looks like an inverted head and shoulder pattern. However, the primary mid-term trend remains dominated by bearish sentiment. Examine with us these three charts to help you foresee the pair’s potential movements in the coming sessions.

Inverted Head and Shoulder Pattern?

The USDCHF pair illustrated in the following 12-hour chart seems to develop a sideways formation after the accelerated decline observed during the second half of November 2020. After easing from the psychological support of 0.89, the price began to consolidate in a range between 0.8917 and 0.8757.

In the previous chart, the USDCHF seems to be forming an inverse head and shoulder (iH&S) pattern, suggesting a likely bullish reversal movement. According to chartist analysis, the iH&S formation will be confirmed if the price breaks and closes above the neckline located at 0.89171. 

For this reversal scenario, the invalidation level is located below the head, which holds its lowest level at 0.87576, corresponding to the low touched last January 06th.

Elliott Wave View Suggests Exhaustion

The big picture of the USDCHF pair exposed in its daily chart reveals the incomplete bearish impulsive sequence of Minute degree labeled in black, suggesting a limited decline.

As illustrated in the last chart, the USDCHF began a downward impulsive sequence of Minute degree on March 23rd when the price found fresh sellers at 0.99017. The price action reveals the completion of its third extended wave bearish move, which found support at 0.89986 in late August 2020, starting to advance mostly sideways in its wave ((iv)) in black. 

Once the sideways corrective formation corresponding to the fourth wave in black finished, the pair began to continue its declines in the wave ((v)) of Minute degree, which currently seems developing its wave (iv) of Minuette degree identified in blue. 

On the other hand, the timing and momentum oscillator reveals that the bearish pressure still controls the price action. In this context, the price would see a further decline, confirming Elliott Wave’s outlook of a pending fifth wave of Minuette degree.

This bearish continuation scenario’s invalidation level stays at 0.8979, which corresponds to the end of wave (i).

Price Action Reveals Indecision

The USDCHF pair in its daily chart unfolded in the bellow chart shows an indecision candle corresponding to the last Friday’s session, leaving a narrow body and long-tailed candlestick pattern. This market context carries us to expect a pause in the downward movement developed in previous trading sessions.

The confirmation of the bearish scenario will occur if the price closes below the LOD at 0.88385. Conversely, a reversal signal could be established by a Monday 25th session’s close if it exceeds Friday’s high of 0.88662.

In summary, the USDCHF pair develops a sideways formation that looks like an incomplete inverse head and shoulders pattern suggesting the potential bullish reversal sequence if the price soars above the neckline located at 0.89171. However, the Elliott wave outlook suggests further declines, corresponding to a possible wave (v) of Minuette degree labeled in blue. In this context, the price action reveals the indecision of the next direction. If the price decides to continue its decline, the USDCHF could re-test January’s 06 low zone.

Categories
Forex Market Analysis

Daily F.X. Analysis, January 25 – Top Trade Setups In Forex – ECB President Lagarde in Limelight! 

On the news front, eyes will remain on the ECB President Lagarde Speaks and German Ifo Business Climate figures from the Eurozone. President Lagarde is due to participate in a virtual panel discussion titled “Restoring Economic Growth” at Davos 2021.

Economic Events to Watch Today  

  


 


EUR/USD – Daily Analysis

 EUR/USD pair was closed at 1.21707 after placing a high of 1.21893 and a low of 1.21513. The EUR/USD tried to break above the strong resistance level of 1.2200 on Friday but failed as the U.S. dollar strength and the worsened pandemic situation around the bloc added pressure on the single currency Euro.

The U.S. dollar was strong across the board as investors were worried about the chances that President Joe Biden’s $1.9 trillion stimulus proposal failed to gain traction. Hopes have raised that the package’s final deal could be smaller or just be dragged, and this supported the local currency U.S. dollar, which ultimately capped further upside in the EUR.USD pair on Friday.

Meanwhile, the U.S. dollar was also strong due to better than expected macroeconomic data release on Friday. At 19:45 GMT, the Flash Manufacturing PMI rose to 59.1 against the forecasted 56.6 and supported the U.S. dollar, and capped further gains in EUR/USD pair. The Flash Services PMI also rose to 57.5 against the forecasted 53.3 and supported the U.S. dollar. At 20:00 GMT, the Existing Home Sales also rose to 6.76M against the forecasted 6.55M and supported the U.S. dollar, and limited the upward momentum in EUR/USD pair. From the European side, at 13:15 GMT, the French Flash Services PMI dropped to 46.5 against the predicted 48.3 and weighed on Euro. The French Flash Manufacturing PMI raised to 51.5 against the expected 50.6 and supported Euro that added further gains in EUR/USD pair. At 13:30 GMT, the German Flash Manufacturing PMI remained flat at 57.0. The German Flash Services PMI raised to 46.8 against the forecasted 45.1 and supported Euro that ultimately provided additional gains to EUR/USD pair. At 14:00 GMT, the Flash Manufacturing PMI remained flat with the expectations of 54.7. The Flash Services PMI raised to 45.0 against the projected 44.4 and supported Euro and pushed the EUR/USD pair higher. 

Meanwhile, the EUR/USD pair hit its highest in the week on Friday, but the day’s gains were small as the European leaders showed frustration about the slow vaccination pace. The new mutants of coronavirus raised fresh concerns in the European Union as the governments considered imposing stricter border controls and banning non-essential travel.

The European Central Bank chief Christine Lagarde warned that the pandemic still poses severe risks to the Eurozone economy as concerns grow about new variants and sluggish vaccination campaigns. While many countries were struggling to reduce the number of infections, the emergence of more contagious virus variants first discovered in the U.K. and South Africa has added to nervousness. 

However, one factor that helped the common currency in this depressing environment to stay strong onboard was European Central Bank’s latest decision. ECB said that risks remain tilted to the downside, but they were less pronounced. The President of ECB also emphasized the need for more monetary support while the policy remained unchanged. 


Daily Technical Levels

Support   Resistance

1.2127       1.2190

1.2086       1.2214

1.2063       1.2254

Pivot point: 1.2150

EUR/USD– Trading Tip

The EUR/USD continues trading bullish at 1.2173 level and holding right above the 1.2158 support mark. Over this level, the EUR/USD has chances of bullish trend continuation until 1.2220 level. The pair has recently closed candles over 1.2158, and the continuation of the upward trend seems very likely as the 50 periods EMA supports the pair. On the higher side, the EUR/USD may find a target around 1.2220 level.


GBP/USD – Daily Analysis

The GBP/USD pair was closed at 1.36816 after a high of 1.37358 and a low of 1.36354. After rising for three consecutive days, the GBP/USD pair dropped on Friday as the coronavirus pandemic hit the country hard and raised concerns for economic recovery as the lockdown restrictions extended. 

The GBP/USD pair also fell on Friday amid the broad-based strength of the greenback triggered by the rising U.S. Treasury yields and the stronger than expected macroeconomic data. The U.S. dollar was also strong as the market’s investors shifted their focus from Joe Biden’s $1.9 trillion massive stimulus package and rather ignored its prospects.

The GBP/USD pair saw selling pressure on Friday as the death toll around the country rose to an alarming level amid the coronavirus’s new variant. According to a rolling analysis by Oxford University, until Thursday, the U.K. had the highest per capita daily death toll of any other country globally, around twice that of the United States.

Given this state, the British government extended the nationwide lockdown till July 17 and also decided to quarantine travelers from high-risk coronavirus countries for at least 10-days as it failed to curb the rising number of coronavirus variant infections. Meanwhile, Britain’s hospitals were also struggling under an ever-growing flow of patients. In the extended lockdown situation, the economic concerns raised rapidly and weighed on the Sterling that ultimately dragged the currency pair GBP/USD on the downside.

Furthermore, on Friday, a U.K. report was released that stated a realistic possibility that the new U.K. variant had a higher mortality rate than other variants. While the data was not decisive but UK PM Boris Johnson said that there was some evidence that the new variant may be connected with a higher degree of mortality. This news added concerns about economic recovery and weighed on the British Pound that added GBP/SD pair losses.

On the data front, at 19:45 GMT, the Flash Manufacturing PMI advanced to 59.1 against the projected 56.6 and supported the U.S. dollar that dragged the GBP/USD pair even on the downside. The Flash Services PMI also advanced to 57.5 against the projected 53.3 and supported the U.S. dollar. At 20:00 GMT, the Existing Home Sales also advanced to 6.76M against the projected 6.55M and supported the U.S. dollar and added GBP/USD pair losses.

From Britain’s side, at 05:01 GMT, the GfK Consumer Confidence for January dropped to -28 against the expected -30 and supported British Pound that capped further downward momentum in GBP/USD pair. At 14:30 GMT, the Flash Manufacturing PMI for January dropped to 52.9 against the forecasted 53.5 and weighed on the British Pound, ultimately pushing the pair GBP/USD lower. The Flash Manufacturing PMI also dropped to 38.8 against the expected 45.2 and weighed on British Pound and added GBP/USD pair losses.


Daily Technical Levels

Support   Resistance

1.3676      1.3763

1.3624      1.3798

1.3589      1.3850

Pivot Point: 1.3711

GBP/USD– Trading Tip

The GBP/USD pair continues trading with a bullish bias after violating the narrow trading range of 1.3680 – 1.3670. On the higher side, the GBP/USD may find resistance at 1.3736 level now, as the pair may form a triple top pattern here. At the same time, the support continues to hold around 1.3697 level. Bullish bias dominates. 


USD/JPY – Daily Analysis

The USD/JPY closed at 103.769 after placing a high of 103.884 and a low of 103.446. After falling for two consecutive sessions, the USD/JPY pair rose on Friday amid the broad-based U.S. dollar strength; however, the sentiment remained depressing as the pandemic raised concerns for the economic recovery. The U.S. Dollar Index that measures the value of the greenback against the basket of six currencies was up by 0.1% on Friday to 90.243 level and supported the U.S. dollar that ultimately added gains in the currency pair USD/JPY.

The U.S. dollar was also high onboard on Friday as the U.S. Treasury yields also rose on the day amid the idea of greater borrowing to fund the additional stimulus proposed by Joe Biden for %1.9 trillion as it could raise the inflation and change the Federal Reserve’s ultra-loose monetary stance. This supported the risk-on market sentiment that ultimately supported the USD/JPY pair as traders were prepared to buy riskier currencies on the idea of quicker than previously expected global economic recovery after the additional stimulus to the economy.

However, these hopes deteriorated after the new variants of coronavirus from the U.K. and South Africa raised global economic concerns in the market. According to a report released on Friday from the U.K., there was a convincing possibility that the new variant of coronavirus in Britain had a higher death rate than other variants. While the data was not conclusive, but UK PM Boris Johnson said that there was some evidence that the new variant may be related to a higher degree of mortality.

This prompted U.S. President Joe Biden to reinstate a ban on most non-US citizens entering the country from Brazil and the U.K., where more transmissible variants of the coronavirus have emerged recently months. According to public health officials, the U.S. also added South Africa to the restricted list as the concerning variant has already spread beyond South Africa. Arrivals from Ireland and 26 countries in Europe were also banned to protect the people of the U.S. as it has already faced the pandemic on an extreme level.

The Centers for Disease Control and Prevention said that these measures were taken to protect Americans and reduce the risks of these variants spreading and worsening the current pandemic that already affected about 25 million Americans. These developments raised the global economic recovery concerns and added in the risk-off market sentiment that ultimately capped further upside in the USD/JPY pair.

On the data front, at 19:45 GMT, the Flash Manufacturing PMI increased to 59.1 against the anticipated 56.6 and supported the U.S. dollar that added in the upward momentum of the USD/JPY pair. The Flash Services PMI also increased to 57.5 against the anticipated 53.3 and supported the U.S. dollar. At 20:00 GMT, the Existing Home Sales also increased to 6.76M against the anticipated 6.55M and supported the U.S. dollar that pushed the USD/JPY pair higher.

At 04:30 GMT, National Core CPI for the year from Japan came in as -1.0% against the projected -1.1% and supported Japanese Yen. At 05:30 GMT, the Flash Manufacturing PMI dropped to 49.7 against the forecasted 50.1 and weighed on the Japanese Yen, supporting the upward momentum in the USD/JPY pair on Friday.


Daily Technical Levels

Support   Resistance

103.33      103.67

103.16      103.84

102.99      104.01

Pivot point: 103.50

USD/JPY – Trading Tips

On Monday, the safe-haven pair USD/JPY continues to trade sideways inside a broad trading range of 104.340 – 103.560. The USD/JPY has formed a sideways channel on the 4-hour timeframe, and it has the chance of leading the pair towards the next resistance level of 104.800 upon the breakout of 104.810. The 50 periods EMA supports the bullish trend, and we may have odds of taking a buying trade over the 103.570 level today. Good luck! 

Categories
Forex Signals

EUR/JPY EMA Crossover Underpin Buying – Quick Update on Signal! 

The EUR/JPY is trading with a bullish bias at 126.285 level, holding mostly over the triple top resistance become support level of 126.169 level. Continuation of a selling trade can extend bullish bias until the 126.560 mark. The pair is also gaining support amid 10 & 20 periods EMA supporting bullish trend continuation in the market. The MACD and RSI are supporting an upward momentum in the EUR/JPY pair. On the hourly chart, we can see the pair has closed bullish engulfing, which may help support the EUR/JPY pair’s buying trend. Check out a trading plan below: 


Entry Price – Sell 126.274

Stop Loss – 125.874

Take Profit – 126.674

Risk to Reward – 1:1

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

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

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

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

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

 

Categories
Forex Signals

GBP/USD Sell Trade Continues – Three Sell Signals! 

The GBP/USD pair continues trading sideways between a narrow trading range of 1.3740 – 1.3703 level. On the lower side, a bearish breakout of 1.3703 level can extend the selling trend until the next support level of 1.3679 level. Conversely, the bullish crossover of 1.3740 can extend buying trend until the 1.3775 level. Let’s keep an eye on the 1.3700 level today.


Entry Price – Sell 1.36592

Stop Loss – 1.36992

Take Profit – 1.36192

Risk to Reward – 1:1

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

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

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

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

 

Categories
Forex Signals

AUD/USD Violates Upward Channel – Selling Setup Looms 

https://t.me/forexsignalsFA

The AUD/USD closed at 0.77647 after placing a high of 0.77819 and a low of 0.77387. AUD/USD pair rose for the third consecutive session on Thursday amid the rising risk-sentiment in the market and the broad-based US dollar weakness. The US dollar was weak on Thursday due to increased hopes for a large stimulus package worth $1.9 trillion from the US’s new Democratic government. Joe Biden, who took office on Wednesday, signed many executive orders to help the US economy cope with the coronavirus pandemic crisis.

The smooth transition supported the risk sentiment at the White House, and it supported the risk-sensitive currency Aussie that ultimately added in the upward momentum of the AUD/USD pair. On the other hand, the US dollar index that measures the value of the US dollar against the basket of six currencies fell by 0.2% to 90.04 level and weighed on the greenback that ultimately added in the gains of AUD/USD pair.

Meanwhile, at 05:00 GMT, the MI Inflation Expectations for December came in as 3.4% against November’s 3.5% on the data front. At 05:30 GMT, the Employment Change from Australia remained flat at 50.0K. The Unemployment Rate from Australia for December dropped to 6.6% against the forecasted 6.7% and supported the Australian Dollar that added further gains in AUD/USD pair. 

From the US side, at 18:30 GMT, the Philly Fed Manufacturing Index for January improved to 26.5 against the predicted 11.2 and supported the US dollar that capped further upside in AUD/USD pair. The Unemployment Claims from last week were reduced to 900K from the predicted 930K and supported the US dollar. For December, the Building Permits improved to 1.71M against the predicted 1.60M and supported the US dollar. The Housing Starts from December also improved to 1.67M against the predicted 1.56M and supported the US dollar that limited the AUD/USD pair’s gains. 

Despite the strong macroeconomic data and less than expected unemployment claims from the US, the AUD/USD pair continued posting gains on Thursday as investors’ focus remained over the rising hopes for further stimulus measures from the US government and the US dollar’s weakness.

The AUD/USD pair was also rising because of the expansion in China’s GDP in the fourth quarter of 2020 by 6.5%. It made the country one of the few in the world to register positive growth for the year and supported the China-proxy Aussie that ultimately added gains in AUD/USD pair.


Daily Technical Levels

Support Resistance

0.7716 0.7780

0.7677 0.7803

0.7653 0.7843

Pivot Point: 0.7740

The AUD/USD pair has violated the support level of 0.7724 level, and it’s holding below the same resistance level right now. On the lower side, the AUD/USD may extend the selling trend until the 0.7696 level. The recent bearish engulfing candles are supporting selling bias in the AUD/USD pair. We should consider taking a selling trade below 0.7724 level today. Good luck! 

 

Categories
Forex Signals

Gold Supported Over Double Bottom – Brace for a Breakout Setup! 

During Friday’s Asian trading session, the safe-haven-metal failed to extend its previous-day winning streak and drew some offers near the $1,860 level as the Biden administration’s plans of huge spending to stimulate the U.S. economy undermined the safe-haven yellow-metal prices aggressively. It is worth recalling that the yellow metal refreshed a 2-week high on the previous day amid the weaker U.S. dollar, but the upticks were short-lived and temporary as the stimulus hopes and upbeat U.S. jobs data started to probe the gold bulls afterward. Besides this, the optimism over a possible coronavirus vaccine also played its major role in weakening the safe-haven yellow-metal prices. 

On the different page, the downbeat comments from U.S. President Joe Biden over the coronavirus condition, as well as the recently appointed US Centers for Disease Control and Prevention (CDC) Director’s fresh doubts over the availability of vaccines, were seen as the key factors that could help the yellow-metal prices to limit its deeper losses. Meanwhile, the heightened trade/political war between the U.S. and China could also play its positive role in supporting the safe-haven yellow metal.

Across the pond, the broad-based U.S. dollar bearish bias, triggered by the prospects of massive fiscal spending in the U.S., was also seen as one of the key factors that cap losses for the yellow metal as the price of gold is inversely related to the price of the U.S. dollar. As of writing, the yellow metal prices are currently trading at 1,862.74 and consolidates in the range between the 1,860.15 – 1,870.87.

Looking forward, the market traders will keep their eyes on preliminary readings of January’s activity numbers from the U.K., the U.S., and Europe for fresh directions. In addition to this, the updates about the U.S. stimulus package will also be key to watch. 


Daily Support and Resistance

S1 1834.44

S2 1851.21

S3 1860.76

Pivot Point 1867.99

R1 1877.54

R2 1884.76

R3 1901.54

Entry Price – Sell 1857.76

Stop Loss – 1863.76

Take Profit – 1850.26

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, January 22 – Top Trade Setups In Forex – Manufacturing & Services PMI Ahead!  

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

Economic Events to Watch Today  

  


EUR/USD – Daily Analysis

UR/USD pair was closed at 1.21671 after placing a high of 1.21728 and a low of 1.21022. Despite the rising fears of the Eurozone falling into recession due to the damage caused by pandemic across the bloc, as warned by the European Central Bank President Christin Lagarde, the Euro rose against the U.S. dollar to a one-week high.

On Thursday, the European Central Bank President Christine Lagarde said that the coronavirus pandemic was still posing serious risks to the eurozone economy as lockdowns were tightened across the region. She added that the start of vaccination campaigns across the euro area was an important milestone in resolving the ongoing health crisis. Nonetheless, the pandemic continued to pose serious risks to public health and the euro area and the global economies.

In many of the European nations, the New Year began with stricter social restrictions and national lockdowns. This week, Germany extended a national lockdown until February 14, and the Netherlands announced that there would be a curfew starting from next week. France also chose to intensify its curfew hours earlier this month, while Portugal decided to close schools from Friday.

According to the European Centre for Disease Prevention and Control, Europe has reported more than 16 million coronavirus infections, with more than 400,000 deaths so far. Lagarde said that it was ready to update its policies whenever necessary amid the economic uncertainty. She added that ECB’s main policy target was to achieve an inflation rate close to 2%. 

Meanwhile, at its policy meeting on Thursday, ECB kept its interest rates and its huge stimulus program unchanged. The main refinancing operations remained flat at 0.00%, the marginal lending facility at 0.25%, and the deposit facility at -0.50%. The Governing Council has also decided to continue the purchases under the pandemic emergency purchase program (PEPP) with a total of 1850 billion euros until at least the end of March 2022.

In December, the bank estimated a GDP rate of 3.9% for 2021 and 2.1% for 2022. However, according to ECB, there were doubts over how the euro area will cope this year after a 7.3% GDP drop last year. ECB also signaled it might not need the full extent of its emergency purchase program to support the recovery. However, chances for an increase in the program were also mentioned to ensure the euro area economy remains well-financed. These comments from Lagarde failed to reverse the upward momentum of the EUR/USD pair on Thursday.

On the data front, at 19:30 GMT, the Consumer Confidence from Europe for January dropped to -16 against the expected -15 and weighed on Euro that capped further upside in EUR/USD pair. From the U.S. side, at 18:30 GMT, the Philly Fed Manufacturing Index for January rose to 26.5 against the forecasted 11.2 and supported the U.S. dollar that limited the upward momentum in EUR/USD pair. The Unemployment Claims from last week were decreased to 900K from the forecasted 930K and supported U.S. dollar. 

For December, the Building Permits rose to 1.71M against the forecasted 1.60M and supported the U.S. dollar. From December, the Housing Starts also rose to 1.67M against the forecasted 1.56M and supported the U.S. dollar that also weighed on the rising EUR/USD prices.

Despite strong macroeconomic data from the U.S., the greenback remained on the back foot on Thursday. It declined almost 0.2% against its rival currencies amid the rising hopes for a further stimulus package under Joe Biden’s administration. This weakness of the U.S. dollar also supported the EUR/USD pair’s rising prices on Thursday.

Furthermore, the U.S. recorded the death toll from coronavirus above 400,000, and it was expecting about 500,000 deaths from the pandemic by mid-February. This alarming situation prompted Joe Biden to sign orders to intensify the vaccination program that ultimately added to the market’s risk sentiment and supported the risk perceived EUR/USD pair on Thursday.


Daily Technical Levels

Support   Resistance

1.2006      1.2091

1.2039      1.2106

1.2058      1.2139

Pivot Point: 1.2062

EUR/USD– Trading Tip

The EUR/USD is trading with a bullish bias at 1.2128 level. The EUR/USD is holding right below 50 periods EMA on the hourly timeframe, extending the EUR/USD pair’s resistance. On the lower side, the support level continues to hold around 1.2120 and 1.2062 level. The MACD and RSI are suggesting a mixed bias for the EUR/USD pair. Buying can be seen over 1.2115.


GBP/USD – Daily Analysis

The GBP/USD pair was closed at 1.37332 after placing a high of 1.37456 and a low of 1.36469. GBP/USD pair rose to its highest since May 2018 on Thursday amid broad-based U.S. dollar weakness and a rising appetite for risk. The GBP/USD pair rose for 3rd consecutive session on Thursday as the global appetite for risk was raised, with Joe Biden sworn in as 46th President of the United States. Another reason behind the rising GBP/USD prices was the weaker U.S. dollar driven by the rising hopes for a massive stimulus package under Biden’s administration.

The new President is expected to announce a $1.9 trillion stimulus package to help the American economy survive through the ongoing coronavirus pandemic that has cost more than 400,000 American lives. Markets were confident that the stimulus package would boost the global economic situation and, in turn, will also push the risk-sensitive Pound higher.

 Moreover, the British Pound was already strong onboard due to Bank of England’s governor Andrew Bailey who expected a pronounced recovery in Britain’s economy as vaccination against coronavirus is underway. On Thursday, the Bank of England released the credit conditions survey that indicated an increase in the mortgage payment default rates at the beginning of 2021 as the pandemic’s economic impact hit the households. This weighed a little over British Pound and capped further upside in GBP/USD pair on Thursday.


Daily Technical Levels

Support   Resistance

1.3622      1.3717

1.3576      1.3764

1.3528      1.3811

Pivot Point: 1.3670

GBP/USD– Trading Tip

The GBP/USD pair continues trading sideways between a narrow trading range of 1.3740 – 1.3703 level. On the lower side, a bearish breakout of 1.3703 level can extend the selling trend until the next support level of 1.3679 level. Conversely, a bullish crossover of 1.3740 can extend buying trend until the 1.3775 level. Let’s keep our eyes on the 1.3700 level today.


USD/JPY – Daily Analysis

The USD/JPY pair was closed at 103.489 after placing a high of 103.666 and a low of 103.325. The currency pair USD/JPY remained under consolidation and posted small losses as the U.S. dollar remained weak throughout the day. The main driver of currency pair USD/JPY on Thursday remained the rising hopes for massive stimulus from the new President of the U.S. and the latest growth outlook from the Bank of Japan.

The Bank of Japan kept its monetary policy steady on Thursday, upgraded its economic forecast for the next fiscal year, and warned of escalating risks to the outlook as new coronavirus emergency measures threatened to disrupt a fragile recovery.

Bank of Japan maintained its targets under yield curve control at -0.1% for short-term interest rates and around 0% for 10-year bond yields. The Governor of BOJ Haruhiko Kuroda said that the board had discussed the bank’s review of its policy tools due in March, though he also dropped a few hints on the outcome.

In the fresh quarterly projections, the Bank of Japan upgraded next fiscal year’s growth forecast to a 3.9% expansion from a 3.6% gain seen three months ago based on hopes the government’s huge spending package will soften the blow from the pandemic. This projection raised the Japanese Yen that ultimately weighed on the USD/JPY pair on Thursday.

However, BOJ offered a depressing view on consumption and warned that services spending would remain under strong downward pressure due to the fresh state of emergency measures taken this month. Kuroda said that the risk of Japan sliding back into deflation was not high and signaled the BOJ had offered sufficient stimulus, for now, to ease the blow from COVID-19.

On the data front, at 18:30 GMT, the Philly Fed Manufacturing Index for January advanced to 26.5 against the anticipated 11.2 and supported the U.S. dollar. The Unemployment Claims from last week fell to 900K from the anticipated 930K and supported the U.S. dollar that capped further downside in the USD/JPY pair. For December, the Building Permits advanced to 1.71M against the anticipated 1.60M and supported the U.S. dollar. The Housing Starts from December also advanced to 1.67M against the anticipated 1.56M and supported the U.S. dollar and limited USD/JPY pair losses.

From Japan, at 04:50 GMT, the Trade Balance from December dropped to 0.48T against the expected 0.70T and weighed on the Japanese Yen that limited the downfall in the USD/JPY pair on Thursday. Despite the stronger than expected macroeconomic data from the U.S., the greenback fell by 0.2% against the basket of six currencies and weighed on the USD/JPY pair as the hopes for a massive stimulus package from Democratic President Joe Biden increased.

Joe Biden is expected to announce a $1.9 trillion coronavirus relief package that will ultimately weigh on the local currency. Furthermore, the rising death cases from coronavirus in the U.S. also weighed on the U.S. dollar as the death toll surpassed 400,000 and raised fears. The weakness of the U.S. dollar dragged the USD/JPY prices on the downside on Thursday.


Daily Technical Levels

Support   Resistance

103.53      104.16

103.31      104.56

102.91      104.78

Pivot Point: 103.94

USD/JPY – Trading Tips

On Friday, the USD/JPY continues to trade sideways inside a wide trading range of 104.340 – 103.560. The USD/JPY has formed a sideways channel on the 4-hour timeframe, and it has the chance of leading the pair towards the next resistance level of 104.800 upon the breakout of 104.810. The 50 periods EMA supports the bullish trend, and we may have odds of taking a buying trade over the 103.570 level today. Good luck! 

Categories
Forex Signals

Bearish Bias Dominates USD/CAD – EMA Extends Resistance  

The USD/CAD pair is trading with a selling bias at 1.2619 level, facing an immediate resistance around 1.2630 level. The USD/CAD pair is stuck in between a narrow trading range of 1.2630 – 1.2612 level on the two-hourly timeframes. On the lower side, a bearish breakout of 1.2612 level can extend selling bias until the next support level of 1.2580 level. Conversely, an upward crossover of 1.2630 can send the USD/CAD pair further higher until the 1.2665 level. The MACD and RSI are in support of the selling trend today. 



Entry Price – Sell 1.26125

Stop Loss – 1.26525

Take Profit – 1.25725

Risk to Reward – 1:1

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

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

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

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

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

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Forex Signals

USD/JPY Violates Triple Bottom – Sell Signal Update! 

The USD/JPY continues to trade sideways in between a wide trading range of 104.340 – 103.560. The USD/JPY has formed a sideways channel on the 4-hour timeframe, and it has the chance of leading the pair towards the next resistance level of 104.800 upon the breakout of 104.810. The 50 periods EMA supports the bullish trend, and we may have odds of taking a buying trade over the 103.570 level today. Good luck! 


Entry Price – Sell 103.385

Stop Loss – 103.785

Take Profit – 102.985

Risk to Reward – 1:1

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

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

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

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

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

Categories
Forex Signals

AUD/USD Upward Bias Continues – Upward Channel Supports! 

The AUD/USD currency pair maintained its previous session bullish bias and hit the intra-day high around above mid-0.7700 level mainly due to the all-time high gains in S&P 500 futures, which lent strong support to the perceived risk currency Australian dollar and contributed to the currency pair gains. The market trading sentiment was being supported by the hopes for additional U.S. fiscal stimulus measures and optimism over the rollout of COVID-19 vaccines. Moreover, the currency pair gains were further bolstered by the broad-based U.S. dollar bearish bias, which was triggered by multiple factors. 

Across the pond, the buying interest around the currency pair got an additional boost following the release of better-than-expected domestic employment details. On the negative page, the long-lasting coronavirus woes and Sino-US tensions remain on the card, which might cap the pair’s upside momentum. The AUD/USD currency pair is currently trading at 0.7771 and consolidating in the range between 0.7742 – 0.7778.

The global risk sentiment was being supported by hopes over the more aggressive fiscal spending under Joe Biden’s presidency, which will boost economic growth. Biden expressed a plan to inject $1.9 trillion into the struggling U.S. economy during his first hours as the new U.S. President. Besides this, the optimism over a potential vaccine/treatment for the highly infectious coronavirus also played its heavy role in supporting the market trading sentiment. The Oxford scientists showed a willingness to make a new formula-vaccine to combat emerging strains. Meanwhile, the World Health Organization (WHO) also supports the faster rollout of the covid vaccines. These positive developments put a bid under the U.S. stocks, lifting major indices higher, which was seen as one of the key factors that undermining the safe-haven greenback.

As in result, the broad-based U.S. failed to gain any bid and remained pessimistic on the day. Apart from this, the losses in the U.S. dollar were further sparked by the optimism over the rollout of vaccines for the highly contagious coronavirus disease. Hence, the losses in the U.S. dollar becomes the key factor that kept the currency pair higher. The U.S. Dollar Index that tracks the greenback against a bucket of other currencies dropped by 0.19% to 90.300 by 11:26 PM ET (4:26 AM GMT).

Across the pond, the buying interest around the currency pair got an additional boost following the release of better-than-expected domestic employment details. On the data front, the Aussie unemployment rate dropped to 6.6% in December. These figures were below consensus estimates, pointing to a downtick to 6.7%, and marked the lowest level since April. Meanwhile, the economy added 50,000 jobs during the reported month. Conversely, the slowdown in full-time employment may hold buyers from placing aggressive bets.

Across the Atlantic, the intensifying coronavirus woes keep challenging the upbeat market performance and become the key factor that kept the lid on any additional gains in the AUD/USD currency pair. Also, capping the gains could be the long-lasting tussle between the U.S. and China, which is picking up the pace day by day as China recently declared a list of 28 U.S. individuals, most of whom are Trump team members, to be sanctioned.

Looking forward, the market traders will keep their eyes on updates from the Biden administration. Meanwhile, the European Central Bank’s (ECB) monetary policy and U.S. Unemployment Claims will also be key to watch. In addition to this, the risk catalyst like geopolitics and the virus woes will not lose their importance. 


Daily Support and Resistance

S1 0.7662

S2 0.7703

S3 0.7724

Pivot Point 0.7743

R1 0.7765

R2 0.7783

R3 0.7823

Entry Price – Buy 0.77758

Stop Loss – 0.77358

Take Profit – 0.78158

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, January 21 – Top Trade Setups In Forex – ECB Policy Ready to Play! 

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

Economic Events to Watch Today  

 

 


EUR/USD – Daily Analysis

The EUR/USD continues to trade higher at the 1.2160 level, and a bullish breakout can extend buying trend until the 1.2229 level. The market trading sentiment still represents positive performance on the day as the positive environment around the Asia-Pacific stocks. All-time high upticks in the S&P 500 Futures highlight the risk-on mood, which was being supported by optimism over a potential vaccine/treatment for the highly infectious coronavirus. 

Meanwhile, the increasing hopes over more U.S. stimulus package under Joe Biden’s presidency also played its major role in supporting the market trading sentiment. The hopes of further U.S. stimulus package sparked after the Biden entered the White House, without any losses, which could be considered as one of the major reason behind the latest positive mood in the market,

In response, the broad-based U.S. declined to stop its long bearish bias and remained bearish on the day. The dip in the greenback was further sparked by the optimism over vaccines’ rollout for the highly contagious coronavirus disease, which eroded demand for safe-haven currencies. Therefore, the losses in the U.S. dollar becomes the key factor that kept the currency pair lower. The U.S. Dollar Index that measures the dollar versus a bucket of other currencies dropped by 0.19% to 90.300 by 11:26 PM ET (4:26 AM GMT).

As per the report, the Secretary of the Treasury nominee Janet Yellen urged Congress to “act big” on the Coronavirus relief program and shouldn’t worry about debt through her Senate confirmation hearing. These positive remarks helped the market trading bias to stay bid. 


Daily Technical Levels

Support   Resistance

1.2006     1.2091

1.2039     1.2106

1.2058     1.2139

Pivot Point: 1.2062

EUR/USD– Trading Tip

The EUR/USD is trading with a bullish bias at 1.2128 level. The EUR/USD is holding right below 50 periods EMA on the hourly timeframe, extending the EUR/USD pair’s resistance. On the lower side, the support level continues to hold around 1.2120 and 1.2062 level. The MACD and RSI are suggesting a mixed bias for the EUR/USD pair. Buying can be seen over 1.2115.


GBP/USD – Daily Analysis

The GBP/USD continues to hold its bullish tone through the first half of the day as the pair ran into the weekly highs around the 1.3710 mark. It’s mostly due to the weaker U.S. dollar. The trader hopes for further U.S. fiscal incentive immediately intensified after the U.S. Treasury Secretary candidate Janet Yellen urged lawmakers to act high on the COVID-19 relief package and not bother too much regarding debt. The remarks of Yellen were was seen as one of the critical factors that weakened the safe-haven U.S. dollar and added to the GBPUSD gains. 

Besides this, the dollar losses bolstered by the confidence over the rollout of COVID-19 vaccines, which confer some further support to the GBP/USD pair. The U.S. failed to stop its long bearish bias and remained bearish on the day. The losses in the U.S. dollar were further sparked by the optimism over vaccines’ rollout for the highly contagious coronavirus disease, which eroded demand for safe-haven currencies. Therefore, the losses in the U.S. dollar becomes the key factor that kept the currency pair lower. The U.S. Dollar Index that tracks the greenback against a bucket of other currencies dropped by 0.19% to 90.300 by 11:26 PM ET (4:26 AM GMT).

Conversely, the anxieties regarding increasing COVID-19 cases and economically-painful hard lockdowns in the U.K. keep questioning the pair’s upside impulse. The U.K. coronavirus strain has been discovered in at least 60 countries so far, as per the WHO report. The Kingdom announced 33,355 fresh virus cases and 1,610 deaths on the day. Globally, the number of cases has exceeded 96 million, prompting the pair’s upside momentum. Besides, the reports of likely shortage of vaccine in New York and postponement of Pfizer’s vaccine to Canada also seems to question the Sterling bullish bias.


Daily Technical Levels

Support   Resistance

1.3555     1.3722

1.3445     1.3781

1.3387     1.3890

Pivot Point: 1.3613

GBP/USD– Trading Tip

The GBP/USD is also heading north amid a weaker dollar, as it trades at a 1.3655 level. Continuation of an upward trend can lead the Cable towards the next target area of 1.3700 level. At the same time, the Cable may find support at 1.3628 level today. On the higher side, the bullish breakout of 1.3701 level can extend buying trend until 1.3736. The GBP/USD is supported by 10 and 20 periods EMA on the two-hourly timeframes, suggesting further buying in the pair. Let’s consider trading bullish over 1.3715 level today. 


USD/JPY – Daily Analysis

Today in the early European trading session, the USD/JPY currency pair failed to stop its previous-session selling bias and remained depressed around two-weeks low around below 103.5 level as the U.S. dollar faced some follow-through selling pressure, which, in turn, was seen as one of the key factors that exerting downside pressure on the USD/JPY currency pair. The bearish bias surrounding the U.S. dollar was mainly sponsored by the increasing optimism over the massive U.S. stimulus measures under the newly inaugurated Joe Biden administration, which undermined demand for safe-haven currencies. 

Simultaneously, the prevalent risk-on environment undermined the Japanese yen and helped the currency pair limit deeper losses. Meanwhile, the dovish comments by the BoJ Governor, Haruhiko Kuroda, added further burden on the JPY and extended some additional support to the USD/JPY currency pair to halt its bearish rally. Currently, the USD/JPY currency pair is currently trading at 103.47 and consolidating in the range between 103.33 – 103.67.

Conversely, the equity market’s positive performance weakened the Japanese yen and helped the currency pair limit its deeper losses. Also capping the currency pair’s losses could be the dovish comments by the BoJ Governor, Haruhiko Kuroda, which further weighed on the JPY and extended some support to the USD/JPY pair to stop its bearish rally. As per the latest report, Kuroda repeated that the BoJ observes the coronavirus’s impact very closely and will not hesitate to ease further if needed. The Japanese central bank updated its GDP target for the fiscal year 2020 to -5.6% from the previous projection of -5.5%.

On the different page, the concerns about rising COVID-19 deaths and re-imposing the economically-painful hard lockdowns keep challenging the upbeat market mood, which could change the currency pair’s direction.

Looking forward, the market traders will keep their eyes on updates from the Biden administration. Meanwhile, the European Central Bank’s (ECB) monetary policy and U.S. Unemployment Claims will also be key to watch. In addition to this, the risk catalyst like geopolitics and the virus woes will not lose their importance.


Daily Technical Levels

Support   Resistance

103.53     104.16

103.31     104.56

102.91     104.78

Pivot Point: 103.94

USD/JPY – Trading Tips

The USD/JPY continues to trade sideways in between a wide trading range of 104.340 – 103.560. The USD/JPY has formed a sideways channel on the 4-hour timeframe, and it has the chance of leading the pair towards the next resistance level of 104.800 upon the breakout of 104.810. The 50 periods EMA supports the bullish trend, and we may have odds of taking a buying trade over the 103.570 level today. Good luck! 

Categories
Forex Signals

A Prop Traders’ Take on Expert Advisors

As trading in the currency market may be a completely dissimilar experience for different traders, a single piece of advice may also apply differently across different people’s careers. If you feel that a specific set of instructions is not working out for you, while others seem to be doing quite well following the exact same steps, understand that there are more things at play aside from technical suggestions and tools.

Money management, trading mindset, and overall psychology sometimes seem to be the main determinants of one’s success, which are only topped up by their pristine routine and theoretical knowledge. In fact, some experts assume that whichever way you decide to go about with a specific currency, be that long or short, is by far less important in comparison to an individual’s money management skills. Naturally, traders may want to take all preventative measures to increase their chances of succeeding while decreasing their losses. Some other specifics of forex trading, such as entry points, can thus be perceived as an additional vehicle that could help traders ensure smooth trading in the spot forex market.

Even more importantly, the understanding that the means to becoming a successful trader are naturally diverse, which further implies that traders can always discover a new, easier method that could land them more pips than ever before. Due to supporting the maintenance of an inquisitive approach, this article covers the topic of expert advisers in an attempt to assess and present some important conclusions regarding this matter and provide forex traders with more opportunities to expand their vision concerning this market.

Forex expert advisors, or in other words robots, stand for a program created for the purpose of managing a trade more efficiently and earning more money as a result. Once plugged in any trading or charting software connected to a trader’s account (Metatrader 4 as the most widely used today), an expert advisor is meant to give signals and guide individuals throughout the trade on the basis of the program. The programmers behind these algorithms which are aimed at directing traders in their trades create codes that serve as a business plan. As code writing is a lucrative business, many seem to be interested in creating these programs and selling them for a particular fee despite not really knowing much about the market itself, which is unfortunately quite often the case.

As the aim of every trader is to establish a continual flow of income, this solution may seem like a perfect fit for anyone who is less impressed by the challenges of sitting long hours at the computer trying to grasp the essence of this market. Owing to high demand for any driver that could bring money with less effort, expert advisors have grown to become a large industry as they are now sought by many currency market participants. 

While market enthusiasts who can navigate the programs to their benefit may certainly exist, anyone attempting to secure their financial stability via code is advised to exercise caution. The best approach to discovering and using an expert advisor (or EA) includes properly conducted research and testing as any rash, blind purchase on a random website may turn out to be quite costly in the end, both literally and figuratively. Any product advertised online will typically have a carefully structured description that was designed in a way to appeal to a potential customer, so the manner in which a product is advertised does not necessarily confirm its effectiveness and efficiency. Many traders sharing their experiences with these robots online have seen the dark side of this business, as they claim to have tried a wide range of different EAs before disappointment sparked their interest in understanding the market and the tools better.

Some prop traders even seem entirely certain that finding a valid robot to manage people’s trades effortlessly on their behalf is rather arduous work, further stressing the importance of carrying out detailed research that would prevent any misfortunate outcomes from happening. The likelihood of getting hold of a good EA is, therefore, not impossible, yet the task itself is just incredibly challenging. Should you, however, be able to get your hands on one such good EA, a number of prop traders would assume that your battle for securing a stable money flow would then be over, as your program would in that case be providing you with stable wins in a row. 

The chapter of expert advisers then truly requires traders to challenge and analyze any EA that they come across, especially because, as discussed above, many codes have been written by programmers who possess little knowledge of the nature of forex trading. Whereas some experts in this market did think about atomizing their algorithms, they decided not to go along because they realized that the technical side is precisely that – a side or one side of the story, and how any trade they have ever entered required a fair share of intellectual work as well. Programs simply cannot account for this aspect of human existence or ability, which significantly reduces any program’s chance of being a sole tool for traders to rely on.

In addition to the human factor described above, there is another aspect of the spot forex market that a program of this sort is highly unlikely to track or take into consideration. As many traders already know, the currency market often undergoes many changes, so we go from periods of consolidation to quite volatile market moves, sentiment-caused reactions, and the impact of news events, among others. Unfortunately, these programs are often only designed to work properly under one such market condition, which could make any trader believe it is a work of art, but only for a while, that is until the market changes its modus operandi.

Many traders primarily seek this product so as to avoid the strenuous process of learning that naturally slows down the time span required to start making money from trading currencies. The desire to escape the reality of doing a job we dislike, living in underdeveloped countries, becoming rich quickly or any other reason that involves the need to rush things for that matter inevitably reduces traders’ odds of making their forex trading career take off. These are some of the main causes of failure in this market and most probably the sole reason behind the longevity of this robot industry. Prop traders, who are incredibly well versed in all aspects of the forex market, often describe the EA industry as a game for luring impatient individuals into falling for a scamp, may it be for at least a few months before they turn around and accept the sobering reality.

The pool of traders who display insatiable hunger for success never seems to be able to dry up, so in order for you to take necessary precautions and protect your finances, you should note down several key steps to follow before signing any contracts or paying some of your money. One of the first and most important points to consider includes results, as this is essential data that many companies omit in their product descriptions.

Actual numbers and tangible results are vital and they ought to back up any convincing story used for advertising a program of this kind. It is interesting how these same products are still sold despite the lack of quantitative information that traders should seek prior to the purchase. If you just quickly investigate these companies with your browser now, you would be able to discover that traders are mainly asked to trust the program and the selling company rather than form their opinion based on some real evidence. 

Aside from evidently refraining from supporting their claims with numbers, these EA selling companies also often use quite manipulative tactics to blur traders’ vision and trap them quickly before they figure out the true nature of the product. These sly maneuvers frequently entail adding a spreadsheet with numbers that have no realistic grounds. The companies often insert the data that they create freely and present them as real evidence of a product’s quality. So, should you see any factual information concerning the number of pips produced in a month, you should really think twice and seek to find more information about the company and the product.

In spite of their fraudulent nature, these companies seem to be in the clear when it comes to penalties and punishment. The fact that such companies can simply get away with these activities can be connected to their country of establishment, which are typically either quite far away or do not need to obey international law.

Playing with numbers is unfortunately only one of many different manners the robot industry can trick traders – for example, any such program can be created in such a way that traders are presented with some unbelievably good, blow-out-of-the-proportions data, when in fact the money management was just tweaked to exaggerate any wins. What is more, these programs can also be developed so as to only show you the wins, while any losses are simply not included in the calculation. While the information on the wins may even prove to be legitimate, the number of hidden losses may substantially exceed the wins. 

Some sellers may decide to show you a top-winning robot based on having a large number of accounts and different robots running on each of them. Some others may try to lure you with a promise of earning a staggeringly high number of pips which is simply impossible in reality. These linguistic games also include presenting information on an impressive return that is, unfortunately, a product of overleveraging, which only tells you that the risk of your account being wiped out has increased instantaneously. These tricks are numerous, yet the companies will see your account go down and it is not them who will have to worry about the consequences, which is why every trader needs to make sure that he/she obtains all the information in advance.

Strategies such as Martingale, for example, make traders double up every time they lose until they finally win, which is followed by a break-even, offering them to keep all their wins. Alas, if this approach led to anything good in the long term, people would not be losing their houses in casinos. In addition, some other sources that once used to be credible, such as MyFXBook – a website used for tracking results, are no longer classified as trustworthy due to alterations done intentionally to get to traders. Therefore, anything offered so freely, disguised under the “genuinely altruistic” or “highly efficient” tag, has probably been compromised for the purpose of amassing a fortune on the basis of your misfortune. 

 As invested and deep researchers of all matters pertaining to the spot forex market, prop traders are likely to leave room for finding an EA that actually works well and does not conceal any valuable information. Nevertheless, even if you believe that you have found “the one you have been looking for,” give yourself the benefit of properly (forward) testing it before you actually invest real money.

The best and the safest way to acquire in-depth knowledge about your program of choice is to use your demo account and really invest your time and effort into assessing this product over a longer period of time. Traders may need a minimum of one month before they are able to see how these expert advisors operate, which is why extending this testing process to a few more months, without feeling scared of investing since fake money is used, may be the wisest decision before committing to tying your real account to one of these programs.

The percentage of dissatisfied customers is said to be extremely high among the group of traders who have purchased and used these programs in the past. The one way you can protect yourself against the robot industry’s creative tricks is to carry out extensive research and maintain a degree of suspicion regardless of the testimonials or results that the related companies may present on their websites. Should you decide to indulge and purchase one of the EAs whose advertisement you found to be credible, you should definitely demo test it and track the results for a period of one month at least. Only once you have accumulated the results you are satisfied with can you actually move on to plugging the EA into your real account, and rather invest small before confirming the previous success with your real money.

Lastly, in spite of the ease that the possession of such a program could bring about, these quick solutions, and most importantly the need for the psychological hunger to progress fast, may not be the road worth taking long-term. Rather choose to be a good trader in control of your account than hope for wins and rewards will follow naturally. In case you find an EA that works long term, if it adapts to new market conditions, if it has sound risk management implementation, use it as much as you can but still be ready for sudden losses your account should endure. When all is said and done, the search for a great EA could be as time-consuming as making your own manual trading algorithm minus the trading experience, which is irreplaceable. 

Categories
Forex Market Analysis

Daily F.X. Analysis, January 20 – Top Trade Setups In Forex – Economic Sentiment Under Spotlight!

On the news front, the eyes will remain on the U.K. Monetary Policy reports due during the late European hours. BOE isn’t expected to change the rates, and it may keep them at 0.10%; however, it will be important to see MPC Official Bank Rate Votes. Besides, the European Final CPI data will remain in focus today.

Economic Events to Watch Today  

 


EUR/USD – Daily Analysis

Today in the Asian trading session, the EUR/USD currency pair extended its previous-day bullish streak and refreshed daily tops around the 1.2150 regions. However, the prevalent bullish bias around the currency pair was mainly tied to the weaker U.S. dollar. The prevalent upbeat market mood was seen as one of the key factors undermining the safe-haven U.S. dollar. However, the global risk sentiment was being supported by the increasing prospects of massive fiscal spending in the U.S. Across the pond, the buying interest around the currency pair got an additional boost from the better-than-expected German ZEW Economic Sentiment Index. On the bearish side, the escalating concerns over the COVID-19 cases and economically-painful extended lockdown restrictions keep questioning the currency pair’s upside momentum. As of writing, the EUR/USD currency pair is currently trading at 1.2153 and consolidating in the range between 1.2124 – 1.2158.

The market trading sentiment managed to extend its previous-day positive performance and remained supportive during the Asian trading session on the day. However, the reason could be tied to the higher prospects of massive fiscal spending in the U.S. As per the latest report, the Secretary of the Treasury nominee Janet Yellen recently pushed Congress to “act big” on COVID- 19 relief and not worry too much about debt during her Senate confirmation hearing before the Senate Finance Committee. These positive comments helped the market trading sentiment to stay bid. The latest upticks in the equity market could also be attributed to the low number of negatives factors from the economic calendar. The prevalent upbeat market mood was seen as one of the key factors that undermining the safe-haven greenback.

Across the pond, the buying interest around the currency pair got an additional boost from the better-than-expected German ZEW Economic Sentiment Index. At the data front, the German ZEW Economic Sentiment Index climbed to 61.8 in January compared to 60.0 expected and 55.0 previous. Meanwhile, the gauge for the broader Eurozone surprisingly improved to 58.3 during the reported month against 45.5 forecasted.

On the bearish side, the concerns about rising COVID-19 cases and economically-painful hard lockdowns keep challenging the pair’s upside momentum. As per the latest report, the death toll from the coronavirus in the U.S. crossed to 401,000, and the number of cases in the country exceeded 24 million as of January 20. In addition to this, the World Health Organization (WHO) said that the U.K. coronavirus strain had been detected in at least 60 countries so far. The Kingdom reported 33,355 new virus cases and 1,610 deaths on the day. Globally, the number of cases has topped 96 million. Also questioning the pair’s upside momentum could be the reports of likely shortage of vaccine in New York and postponement of Pfizer’s vaccine to Canada.


Daily Technical Levels

Support   Resistance

1.2006     1.2091

1.2039     1.2106

1.2058     1.2139

Pivot Point: 1.2072

EUR/USD– Trading Tip

The EUR/USD is trading with a bullish bias at 1.2145 level. The pair has recently crossed over 50 periods of EMA on the hourly timeframe, suggesting chances of an upward movement in the market. Continuation of a bullish trend can lead the EUR/USD price towards the 1.2178 level. At the same time, support continues to hold around 1.2150 today. The bullish bias is likely to dominate the market.

GBP/USD – Daily Analysis

Today in the early European trading session, the GBP/USD currency pair maintained its bid tone through the first half of the Asian session and hit the weekly highs around above the mid-1.3600 level amid a softer tone surrounding the U.S. dollar. The market hopes for additional U.S. fiscal stimulus instantly escalated after the U.S. Treasury Secretary nominee Janet Yellen pushed lawmakers to act big on the COVID-19 relief package and not worry too much about debt, which in turn, was seen as one of the key factors that weakened the safe-haven U.S. dollar and contributed to the currency pair gains. Apart from this, the greenback losses were further bolstered by the optimism over the rollout of COVID-19 vaccines, which lend some additional support to the currency pair. Across the ocean, the buying interest around the cable currency pair picked up further pace following the release of hotter-than-expected U.K. consumer inflation figures. 

On the contrary, the concerns about the highly contagious coronavirus disease and the imposition of fresh travel restrictions in the U.K. could cap the GBP/USD currency pair’s upside momentum. At a particular time, the GBP/USD currency pair is currently trading at 1.3668 and consolidating in the range between 1.3627 – 1.3675.

The combination of positive factors has helped the GBP/USD currency pair catch sharp, fresh bids on the day. Be its optimism over the rollout of vaccines for the highly infectious coronavirus disease or the rising prospects of massive fiscal spending in the U.S., not the forget upbeat economics data, these all factors positively impact the market trading sentiment. 

Across the ocean, the buying interest around the cable currency pair picked up further pace following the release of hotter-than-expected U.K. consumer inflation figures. The headline CPI increased more-than-expected at the data front and arrived at a 0.6% YoY rate in December. Meanwhile, the core CPI (excluding food and energy items) also exceeded consensus estimations.

Alternatively, the concerns about rising COVID-19 cases and economically-painful hard lockdowns in the U.K. keep challenging the pair’s upside momentum. As per the latest report from World Health Organization (WHO), the U.K. coronavirus strain has been detected in at least 60 countries so far. The Kingdom reported 33,355 new virus cases and 1,610 deaths on the day. Globally, the number of cases has topped 96 million. Also questioning the pair’s upside momentum could be the reports of likely shortage of vaccine in New York and postponement of Pfizer’s vaccine to Canada.


Daily Technical Levels

Support   Resistance

1.3555      1.3722

1.3445      1.3781

1.3387      1.3890

Pivot Point: 1.3613

GBP/USD– Trading Tip

The GBP/USD is also heading north amid a weaker dollar, as it trades at a 1.3655 level. Continuation of an upward trend can lead the Cable towards the next target area of 1.3700 level. At the same time, the Cable may find support at 1.3628 level today.


USD/JPY – Daily Analysis

During Wednesday’s early European trading session, the USD/JPY currency pair failed to stop its previous-session bearish bias and came under some renewed selling pressure low around 103.13 level mainly due to the broad-based U.S. dollar weakness. The market hopes for additional U.S. fiscal stimulus increased after the U.S. Treasury Secretary nominee Janet Yellen advised lawmakers to act big on the COVID-19 relief package while stating that the benefits of increased spending are greater than the costs associated with a higher debt burden, which in turn, boosted the market trading sentiment and weakened the safe-haven U.S. dollar. 

Apart from this, the greenback losses were further bolstered by the cautious sentiment ahead of President-elect Joe Biden’s inaugural ceremony on the day. On the different page, the upbeat market sentiment weakened the safe-haven Japanese yen, which, in turn, was seen as one of the leading factors that helped the USD/JPY currency pair to limit its deeper losses. Currently, the USD/CHF currency pair is currently trading at 103.77 and consolidating in the range between 103.72 – 103.94.

The market trading sentiment was representing positive performance on the day as the bullish appearance of Asia-Pacific stocks and upticks of the S&P 500 Futures tend to highlight the risk-on mood supported by optimism over a potential vaccine/treatment for the highly infectious coronavirus. Besides this, the increasing prospects of massive fiscal spending in the U.S. also played its major role in underpinning the market trading sentiment. The market hopes for additional U.S. fiscal stimulus increased further after the U.S. Treasury Secretary nominee Janet Yellen’s confirmation hearing before the Senate Finance Committee on Tuesday. 

As in result, the broad-based U.S. failed to gain any bid and remained pessimistic on the day. Apart from this, the losses in the U.S. dollar were further sparked by the optimism over the rollout of vaccines for the highly contagious coronavirus disease. In addition to this, the cautious sentiment ahead of President-elect Joe Biden’s inaugural ceremony also exerted downside pressure on the greenback. Hence, the losses in the U.S. dollar becomes the key factor that kept the currency pair lower. Meanwhile, the U.S. Dollar Index that tracks the greenback against a bucket of other currencies dropped by 0.11% to 90.365 by 9:17 PM ET (2:17 AM GMT)—moving on, the intensifying hopes for more aggressive U.S. fiscal spending under Biden’s presidency continuously providing support to the U.S. Treasury bond yields, which could help the U.S. dollar to limit any meaningful downside.

Conversely, the positive performance around the equity market was slightly unaffected by the concerns about rising COVID-19 deaths and the re-imposing of the economically-painful hard lockdowns, which keep fueling the worries over the global economic recovery. As per the latest report, the death cases from the COVID in the U.S. crossed to 401,000, and the number of cases in the country exceeded 24 million as of January 20. In addition to this, the World Health Organization (WHO) said that the U.K. coronavirus strain had been detected in at least 60 countries so far. The Kingdom reported 33,355 new virus cases and 1,610 deaths on the day. Globally, the number of cases has topped 96 million. Also questioning the pair’s upside momentum could be the reports of likely shortage of vaccine in New York and postponement of Pfizer’s vaccine to Canada.


Daily Technical Levels

Support   Resistance

103.53     104.16

103.31     104.56

102.91     104.78

Pivot Point: 103.94

USD/JPY – Trading Tips

The USD/JPY continues to trade sideways in between a wide trading range of 104.340 – 103.560. The USD/JPY has formed a sideways channel on the 4-hour timeframe, and it has the chance of leading the pair towards the next resistance level of 104.800 upon the breakout of 104.810. The 50 periods EMA supports the bullish trend, and we may have odds of taking a buying trade over the 103.570 level today. Good luck! 

Categories
Forex Signals

Three White Soldiers Underpins EUR/JPY – Buying Signal Update! 

Join F.A. Telegram Channel: https://t.me/forexsignalsFA

The EUR/JPY pair is trading sharply bullish around 126.350 level, having formed three white soldiers on the two-hourly timeframes. The leading indicators are the suggesting buying trend in the pair, which may lead the EUR/JPY pair towards 126.245. On the lower side, the EUR/JPY is likely to find support at the 125.799 level. Let’s stay bullish above 126.00 level today. Checkout the EUR/JPY trade plan below and also follow FA Trading Signal Channel on Telegram. 


Entry Price – Buy 126.036

Stop Loss – 125.636

Take Profit – 126.436

Risk to Reward – 1:1

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

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

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

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

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

 

Categories
Forex Signals

AUD/USD Bearish Engulfing Candle – Is It Good Time to Sell?

Join F.A. Telegram Channel for Free Trading Signals: https://t.me/forexsignalsFA

During Tuesday’s early European trading session, the AUD/USD currency pair snapped its previous two-day losing streak and caught some fresh bids around above 0.7700 level mostly due to the recent upticks in S&P 500 index, which tend to underpin the perceived risk currency Australian dollar and contributes to the currency pair gains. Hence, the market trading sentiment was being supported by the optimism over the rollout of COVID-19 vaccines and hopes for additional U.S. fiscal stimulus measures. 

Across the pond, the broad-based U.S. dollar bearish bias, triggered by multiple factors, also played its major role in strengthening the currency pair. In contrast to this, the long-lasting coronavirus distress globally keeps questioning the market’s upbeat mood, which could cap gains for the currency pair. At this time, the AUD/USD currency pair is currently trading at 0.7710 and consolidating in the range between 0.7672 – 0.7725.

The market trading sentiment has been gaining positive traction since the day started and was being supported by the optimism over the rollout of COVID-19 vaccines and hopes for additional U.S. fiscal stimulus measures. As per the latest report, the U.S. President-elect Joe Biden is prepared to take office on January 20, pushing for the $1.9 trillion stimulus package already outlined last week. In the meantime, the Treasury Secretary nominee Janet Yellen is also expected to push the government to “act big” with its next coronavirus relief package when she testifies before the Senate later on Tuesday. Hence, the prevalent upbeat market mood underpinned the Australian dollar’s perceived risk currency and contributed to the currency pair gains.

At the USD front, the broad-based U.S. dollar failed to gain any positive traction during the early European trading hours amid risk-on market sentiment. Apart from this, the greenback losses could also be associated with the low-interest record rates’ expectations. Conversely, the expectations of a larger government borrowing recently triggered a fresh leg up in the U.S. Treasury bond yields, which might help the U.S. dollar limit any meaningful downside. However, the losses in the U.S. dollar pushed the currency pair higher. The U.S. Dollar Index that tracks the greenback against a bucket of other currencies dropped by 0.11% to 90.653 by 11:03 PM ET (4:03 AM GMT). 

On the bearish side, the long-lasting worries about the continuous surge in new COVID-19 cases challenging the upbeat market sentiment and turned out to be one of the key factors that kept the lid on any additional gains in the currency pair. Furthermore, the cautious sentiment ahead of President-elect Joe Biden’s inaugural ceremony also probes the bulls.

In the absence of high impact economic events from the U.S., the U.S. Treasury Secretary nominee Janet Yellen’s testimony will influence the USD price dynamics. Meanwhile, the broader market risk sentiment could produce some short-term trading opportunities around the currency pair.


Daily Support and Resistance

S1 0.7606

S2 0.7642

S3 0.7662

Pivot Point 0.7679

R1 0.7698

R2 0.7715

R3 0.7752

The AUD/USD is trading at 0.7709 level holding below an immediate resistance level of 0.7725. The recent closing bearish engulfing candles can trigger odds of selling bias in the AUD/USD pair. However, we are not taking a sell trade yet, as the 50 periods EMA and MACD is staying in a bullish zone. Let’s keep an eye on the 0.7722 level as selling can be expected below this level along with buying over the 0.7722 mark. Good luck! 

 

Categories
Forex Market Analysis

Daily F.X. Analysis, January 19 – Top Trade Setups In Forex – Economic Sentiment Under Spotlight!

The eyes will remain on the European German ZEW Economic Sentiment data and the Current Account figures from Europe on the news front. All of the figures are expected to have a mixed impact, which may put sideways in the single currency Euro. Besides this, the eyes will stay on the German Final CPI figures.

Economic Events to Watch Today  

 


EUR/USD – Daily Analysis

Today in the Asian trading session, the EUR/USD currency pair successfully extended its overnight bullish streak and remained supportive around just below 1.2100 level of upbeat market trading that weighed on the U.S. dollar. The U.S. dollar weakness was seen as one of the key factors that pushed the currency pair higher. However, the sentiment around the equity market was being supported by the expectations of additional fiscal stimulus. It should be noted that the U.S. President-elect Joe Biden is ready to take Office on January 20, pushing for the $1.9 trillion stimulus package already planned last week. Meanwhile, the cautious sentiment ahead of the Biden government’s inauguration and the coronavirus (COVID-19) worried added further weakness to the greenback and contributed to the currency pair gains. Across the Atlantic, the Eurozone finance ministers’ latest push for financial support for their economies to boost the post-pandemic recovery plans also played its major role in underpinning the EUR/USD currency pair. 

The escalating concerns over the COVID-19 cases and economically-painful hard lockdowns keep questioning the pair’s upside momentum on the bearish side. As of writing, the EUR/USD currency pair is currently trading at 1.2087 and consolidating in the range between 52.17 – 52.49. The market trading sentiment managed to erase its previous-day losses and turned positive during the Asian trading session on the day. However, the reason could be attributed to the high expectations of additional fiscal stimulus. It is worth recalling that the U.S. President-elect Joe Biden is ready to take Office on January 20, pushing for the $1.9 trillion stimulus package already outlined last week. In the meantime, the Treasury Secretary nominee Janet Yellen is expected to push the government to “act big” with its next coronavirus relief package when she testifies before the Senate later on Tuesday. This latest optimism put a bid under risk assets and weighed over the safe-haven U.S. dollar. 

On the bearish side, the concerns about rising COVID-19 cases and economically-painful hard lockdowns keep challenging the upbeat market performance, which was seen as the key factor that kept the lid on any additional gains the currency pair. As per the latest report, the COVID-19 cases in Europe, the U.S., and the U.K. decreased somewhat but still not satisfactory as the strains are spreading faster, which in turn cause fresh activity restrictions. Moving ahead, the market traders will keep their eyes on the German ZEW survey, which is due to release later in the day. Meanwhile, the covid updates and any additional stimulus hint will also be key to watch.


Daily Technical Levels

Support   Resistance

1.2006      1.2091

1.2039      1.2106

1.2058      1.2139

Pivot Point: 1.2072

EUR/USD– Trading Tip

The EUR/USD is trading over 1.2064 support level, and closing of bullish engulfing candles over the same level supports the chances of

bullish correction until the 1.2115 level. On the lower side, the bearish breakout of the 1.2065 level can drive the selling trend until the support level of 1.2005. The 50 EMA and MACD suggest the pair is oversold and should reverse back slightly before exhibiting selling bias.


GBP/USD – Daily Analysis

The GBP/USD currency pair failed to stop its previous session bearish bias and drew some offers around the 1.3535 level mainly due to the prevalent cautious mood, which underpinned the U.S. dollar and contributed to the currency pair losses. The optimism over the rollout of COVID-19 vaccines helps the currency pair to limit its deeper losses along with capping the losses could be the latest report by U.K. vaccine deployment minister Nadhim Zahawi that everyone will be granted a vaccine by September. Currently, the GBP/USD currency pair is currently trading at 1.3537 and consolidating in the range between the 1.3524 – 1.3602.

Despite the on-going optimism about a potential treatment/vaccine and U.S. coronavirus (COVID-19) stimulus bill, the market risk mood failed to stop its previous negative performance and stay bearish during the European session amid growing market concerns over the potential economic fallout from the continuous rise in new COVID-19. The worries were further fueled by Friday’s disappointing U.S. monthly Retail Sales figures for December. 

At the USD front, the broad-based U.S. dollar extended its early-day gaining streak and remained bullish during the European session on the day as investors still preferring to invest in the safe-haven assets in the wake of the risk-off market sentiment. However, the U.S. dollar gains were seen as one of the key factors that kept the currency pair lower. 

The currency pair was further pressured across the ocean by the imposition of fresh restrictions in the U.K. On the other hand, the optimism over the rollout of COVID-19 vaccines failed to give any meaningful support to the currency pair. The market traders will keep their eyes on the BOE Gov Bailey Speaks along with the Candian Housing Starts data. In the meantime, the coronavirus saga developments could play a key role in influencing the market risk sentiment and the USD price dynamics. 


Daily Technical Levels

Support   Resistance

1.3555      1.3722

1.3445      1.3781

1.3387      1.3890

Pivot Point: 1.3613

GBP/USD– Trading Tip

The GBP/USD pair trades have bounced off over the support level of 1.3534 level, and it’s likely to face resistance at the support become resistance level of 1.3617 level. Bullish crossover of this level can extend buying trend until 1.3697 area. On the lower side, the violation of the 1.3534 support level can extend the selling trend until the 1.3457 level. The MACD and RSI are in support of buying; thus, we should consider buying over 1.3617 and selling below the same.   


USD/JPY – Daily Analysis

The USD/JPY currency pair failed to stop its previous-day declining streak and remained depressed near 103.70 level mainly due to the worsening coronavirus (COVID-19) woes in the U.S., Europe, and some of the notable Asian nations like Japan, which fuel doubts over the global economic recovery and weighs on the market trading sentiment. In that way, the prevalent cautious sentiment benefitted the safe-haven Japanese yen and was seen as one of the key factors that exerting pressure on the USD/JPY currency pair. 

In contrast to this, the broad-based U.S. dollar strength, backed by the market risk-off tone, has become the key factor that helps the currency pair limit its deeper losses. Meanwhile, the coronavirus (COVID-19) vaccine’s positive developments help the market trading sentiment limit its deeper losses, which might change the currency pair’s direction. As of writing, the USD/JPY currency pair is currently trading at 103.77 and consolidating in the range between 103.69 – 103.93.

Despite the optimism about a potential treatment/vaccine, the market risk mood failed to stop its previous negative performance and stay bearish during the European session amid growing market concerns over the potential economic fallout from the continuous rise in new COVID-19. These worries were further fueled by Friday’s disappointing U.S. monthly Retail Sales figures for December. At the data front, the core retail sales declined 1.4% month-on-month in December, which was higher than the 0.1% contraction in forecasts and the 1.3% contraction recorded in November. Simultaneously, the Producer Price Index (PPI) increased 0.3% month on month in December, while retail sales declined 0.7% MoM in the same month. 

At the coronavirus front, the coronavirus (COVID-19) resurgence in Europe and the U.S. is still not showing any sign of slowing down, which keeps fueling the doubts over the economic recovery as the authorities in the U.S. and Europe keep imposing back to back restrictions over activities in efforts to control the spread of the virus. This, in turn, exerted downside pressure on the market risk tone and contributed to currency pair losses.

The traders will focus on the BOE Gov Bailey Speaks, and the Candian Housing Starts data. In the meantime, the coronavirus saga developments could play a key role in influencing the market risk sentiment and the USD price dynamics. 


Daily Technical Levels

Support   Resistance

103.53      104.16

103.31      104.56

102.91      104.78

Pivot Point: 103.94

USD/JPY – Trading Tips

The USD/JPY continues to trade sideways in between a wide trading range of 104.340 – 103.560. The USD/JPY has formed a sideways channel on the 4-hour timeframe, and it has the chance of leading the pair towards the next resistance level of 104.800 upon the breakout of 104.810. The 50 periods EMA supports the bullish trend, and we may have odds of taking a buying trade over the 103.570 level today. Good luck! 

Categories
Forex Signals

AUD/JPY Gains Support Over Double Bottom – Is It Worth Holding Sell Trade?

The AUD/JPY pair traded bearish, falling from 79.77 level to trade low at 79.50. On the lower side, the AUD/JPY may find support at the 79.50 level, and a bearish breakout of this level can extend selling bias until the 79.14 level. The 10 & 20 periods EMA are supporting selling bias, along with the 50 MACD and RSI indicators. Let’s follow a trading plan below:

Daily Support and Resistance

S1 0.7547

S2 0.7632

S3 0.7668

Pivot Point 0.7717

R1 0.7753

R2 0.7802

R3 0.7887


Entry Price – Sell 79.678

Stop Loss – 80.078

Take Profit – 79.278

Risk to Reward – 1:1

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

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

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

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

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

 

Categories
Forex Signals

AUD/USD Symmetric Triangle Breakout – Brace for Selling! 

The AUD/USD failed to stop its previous session bearish moves and hit the one-week around well below 0.7700 level. The cautious sentiment ahead of U.S. President-elect Joe Biden’s office term, as well as the lack of major data/events and a long weekend in the U.S., played their major in undermining the market trading sentiment. The AUD/USD currency pair is currently trading at 0.7669 and consolidating in the range between 0.7659 – 0.7711.

The market trading sentiment failed to stop its last-weeks bearish moves and remains discouraged during the early Asian session as the condition of the second wave of coronavirus infections in Europe and the U.S. getting worse, which pushed the authorities to keep imposing back to back restrictions over activities in efforts to control the spread of the virus. Apart from this, the renewed inability to pass the U.S. fiscal package also weighed on the risk sentiment, which eventually weakened the perceived riskier Australian dollar and contributed to the currency pair gains. Apart from this, the reason for the market risk-off mood could also be associated with the ever-increasing US-China tussle, which puts further pressure around the market sentiment and contributes to the currency pair gains.

This, in turn, the broad-based U.S. dollar succeeded in extending its previous session gains and took some further bids during the early European session as investors still prefer the safe-haven assets in the wake of risk-off market sentiment. However, the U.S. dollar gains seem rather unaffected by the worsening coronavirus (COVID-19) conditions in the U.S. or the disappointing U.S. data. The gains in the U.S. dollar becomes the key factor that kept the currency pair under pressure. The U.S. Dollar Index that tracks the greenback against a bucket of other currencies rose by 0.05% to 90.800 by 10:46 AM ET.

In the absence of the major data/events on the day, the market traders will keep their eyes on the BOE Gov Bailey Speaks along with the Candian Housing Starts data. In the meantime, the coronavirus saga developments could play a key role in influencing the market risk sentiment and the USD price dynamics. 


Daily Support and Resistance

S1 0.7547

S2 0.7632

S3 0.7668

Pivot Point 0.7717

R1 0.7753

R2 0.7802

R3 0.7887

The AUD/USD pair is trading with a selling bias at 0.7665 level, especially after violating the support area of 0.7722 level. Closing of candles below 0.7722 level can extend selling bias until 0.7650 and 0.7610 level. Checkout our trading plan for today.  

Entry Price – Sell 0.76734

Stop Loss – 0.77134

Take Profit – 0.76334

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, January 18 – Top Trade Setups In Forex – Martin Luther King Day! 

The market may offer thin trading volume and volatility on the back of a holiday in the U.S. The U.S. banks will be closed in observance of Martin Luther King Day. However, the German Buba report will be in focus today to predict price action.

Economic Events to Watch Today  


 


EUR/USD – Daily Analysis

During Monday’s early European trading hours, the EUR/USD currency pair failed to stop its previous session losing streak and remained sideways around the 1.2071 mark due to the sluggish market sentiment underpinned the safe-haven U.S. dollar and contributed to the currency pair gains. Besides this, the selling bias around the currency pair could also be attributed to the rising COVID-19 and stricter activity restrictions in Europe, raising doubts about the European economies and pushing the shared currency down. Conversely, the EUR/USD currency pair’s declines were rather unaffected by the latest reports suggesting that Prime Minister Giuseppe Conte faces a confidence vote in the lower house. Currently, the EUR/USD currency pair is currently trading at 1.2075 and consolidating in the range between the 1.2065 – 1.2086.

The global equity market failed to stop its previous session’s bearish performance and remained sluggish during the early European session as concerns about the potential economic fallout from the Covid-19 surge remain on the cards. These concerns were triggered after Friday’s disappointing U.S. monthly Retail Sales data. At the data front, the core retail sales declined 1.4% month-on-month in December, which was higher than the 0.1% contraction in forecasts and the 1.3% contraction recorded in November. Meanwhile, the Producer Price Index (PPI) increased 0.3% month on month in December, while retail sales declined by 0.7% in the same month.

The equity market losses could also be tied to the prevalent cautious mood ahead of U.S. President-elect Joe Biden’s first day of duty and initially negative signals for taxpayers and Canadian oil companies. In that way, the bearish tone around the equity markets was seen as one of the key factors that helped the safe-haven U.S. dollar.

Daily Technical Levels

Support   Resistance

1.2148     1.2178

1.2129     1.2189

1.2118     1.2208

Pivot Point: 1.2159

EUR/USD– Trading Tip

The EUR/USD is trading over the 1.2065 support level, and the closing of Doji candles above the same level supports the chances of

bullish correction until the 1.2115 level. On the lower side, a bearish breakout of 1.2065 can extend the selling trend until the support level of 1.2005. The 50 EMA and MACD suggest the pair is oversold and should reverse back a bit before exhibiting selling bias.


GBP/USD – Daily Analysis

The GBP/USD currency pair failed to maintain its overnight bullish bias and drew some offers around the 1.3680 level mainly due to the downbeat market trading mood, which underpinned the U.S. dollar bullish and contributed to the currency pair losses.

At the USD front, the broad-based U.S. dollar managed to extend its early-day gaining streak and remained bullish during the European session on the day as investors still prefer to invest in the safe-haven wake of the risk-off market sentiment. The U.S. dollar has been supported by the Democrat victories in the runoff Senate elections in Georgia earlier in the month, which saw a surge in U.S. yields as Democrats got control of Congress. The U.S. dollar gains were seen as one of the key factors that kept the currency pair lower. The U.S. Dollar Index that tracks the greenback against a bucket of other currencies rose by 0.05% to 90.800 by 10:46 AM ET.

At home, the wave of the coronavirus and tighter travel restrictions in Europe keep fueling the doubts over economic recovery as back-to-back lockdown restrictions negatively affect economic activities. The latest report suggests the total novel coronavirus cases of 23,653,919 yesterday against 23,440,774 in the previous report on January 16.

Besides this, the selling bias around the currency pair could also be associated with the ever-rising numbers of COVID-19 and tougher lockdown restrictions in the U.K., which keep raising doubts over the economic recovery. In contrast to this, the latest reports suggest that the Bank of England (BOE) will keep the interest rates unchanged until 2024 to avoid negative rates, which helped the currency pair limit its losses. Also capping the losses could be the latest optimism around the coronavirus better situation in the U.K. 


Daily Technical Levels

Support   Resistance

1.3555     1.3722

1.3445     1.3781

1.3387     1.3890

Pivot Point: 1.3613

GBP/USD– Trading Tip

The GBP/USD pair also trades sideways between a narrow trading range of 1.3549 – 1.3452. On the higher side, a bullish breakout of 1.3549 level can extend the buying trend until the next resistance area of 1.3628 and 1.3698. Conversely, a bearish breakout of 1.3549 support level can extend the selling trend until 1.3455 and 1.3346. 


USD/JPY – Daily Analysis

The USD/JPY currency pair successfully maintained its bullish bias and took steps near mid- 103.00 regions largely due to the market’s downbeat mode and a big rally in the U.S. bond yield retained the U.S. dollar bullish and added to the currency pair accruals. Nevertheless, the market trading opinion was being pressed by the ever-rising figures of COVID-19 and stricter lockdown restrictions that keep fueling doubts over the global economy’s recovery. 

Meanwhile, the equity markets’ slumps were further bolstered by the renewed Sino-US tussle, which extended some support to the safe-haven Japanese yen and capped the upside for the USD/JPY currency pair. Conversely, the optimism about a potential treatment/vaccine and U.S. coronavirus (COVID-19) stimulus bill keeps challenging the market risk-off mood, which might change the direction for the USD/JPY currency pair. Currently, the USD/JPY currency pair is currently trading at 103.78 and consolidating in the range between 103.70 – 103.85.

The market trading sentiment failed to stop its early-day negative performance and remained pessimistic during the Asian trading session. The downfall was completely sponsored by the fears of intensifying coronavirus (COVID-19) conditions throughout the world, which keeps fueling the doubts over the global economic recovery from COVID-19. As per the latest report, France recently imposed a new nationwide lockdown, while German Chancellor Merkel is considering toughening the German lockdown. Apart from this, nearly 22M people are currently under strict lockdown conditions in China’s Hebei province. This happened right after the country posted the largest number of new Covid-19 infections in over 5-months on Wednesday. 

At the USD front, the broad-based U.S. dollar managed to extend its early-day gaining streak and remained bullish during the European session on the day as investors still prefer to invest in the safe-haven securities back of the risk-off market sentiment. The greenback has been supported by the Democrat victories in the runoff Senate elections in Georgia earlier in the month, which saw a surge in U.S. yields as Democrats got control of Congress. The U.S. dollar gains were seen as one of the key factors that kept the currency pair lower. The U.S. Dollar Index that tracks the greenback against a bucket of other currencies rose by 0.05% to 90.800 by 10:46 AM ET.

At home, the wave of the coronavirus and tighter travel restrictions in Europe keep fueling the doubts over economic recovery as back-to-back lockdown restrictions negatively affect economic activities. The latest report suggests the total novel coronavirus cases of 23,653,919 yesterday against 23,440,774 in the previous report on January 16.


Daily Technical Levels

Support   Resistance

103.53     104.16

103.31     104.56

102.91     104.78

Pivot Point: 103.94

USD/JPY – Trading Tips

The safe-haven currency pair USD/JPY slipped to trade at 104.054 level amid increased demand for safe-haven assets. The USD/JPY has formed an upward channel on the 4-hour timeframe, and it has the chance of leading the pair towards the next resistance level of 104.340 level. The 50 periods EMA supports the bullish trend, and we may have odds of taking a buying trade over the 103.570 level today. Good luck! 

Categories
Forex Elliott Wave Forex Market Analysis

Why GBPJPY Plummeted in Friday’s Session?

The GBPJPY cross declined on Friday trading session dragged 0.70% after the price surpassed the psychological barrier of 142, being the highest level reached since early September 2020.

Technical Overview

The GBPJPY cross drops over 100 pips on the last trading session of the week, accumulating a modest advance of 0.02% (YTD) since the yearly opening.

On the fundamental side, the industrial production in the United Kingdom eased 4.7% (YoY) in November 2020, informed the Office for National Statistics on Friday. The reading is worse than the decline of 4.2% expected by analysts. Likewise, both coronavirus lockdown and the Brexit uncertainty contributed to the decline in the industrial output.

Source: TradingEconomics.com

On the other hand, the doubts in the fourth quarter 2020 earnings season kick-off and the elected U.S. President Biden’s stimulus plan seem not enough to keep fueling the stock market participants’ euphoric sentiment. This context looks fading the record highs in the stock market, boosting the risk-off bias pushing lower the GBPJPY cross.

The big-picture illustrated in the next daily chart shows the price action moving in the extreme bullish sentiment where the cross ended the Friday session unveiling a bearish engulfing pattern, which carries to expect further declines in the coming trading sessions.

Finally, the piercing below the yearly opening level at 140.779 suggests potential declines during the first quarter of 2021.

Technical Outlook

Our previous analysis saw the progress in a complex correction identified as a double-three pattern (3-3-3). Nevertheless, the corrective rally suggests that the GBPJPY moves in a triple-three formation (3-3-3-3-3), which looks in its terminal stage.

The following 4-hour chart shows the completion of a triple-three pattern of Minute degree labeled in black, which moves inside a wave B of Minor degree identified in green since the cross found support at 133.040 touched in last September 22nd.

The internal structure of wave ((z)) in black shows its last corrective leg corresponding to wave (c) in blue, developing an ending diagonal pattern, which seems finished its wave v of Subminuette degree labeled in green. The breakdown of the guideline that connects the end of waves ii with iv carries to support the ending diagonal pattern’s finalization.

On the other hand, the timing indicator exposes the intraday oversold (see the yellow circle), which leads to the conclusion that the GBPJPY cross should develop an upward retracement as a flag pattern before continuing with its potential further decline.

In summary, the GBPJPY cross plummeted in last Friday’s session dragged by the completion of an ending diagonal pattern, which belongs to wave ((z)) of a triple-three formation, where its upper degree sequence corresponds to wave B of Minor degree. Although the news media continue supporting hopes in the stimulus plan for the U.S. economy, the Elliott wave structure showed by the cross unveils a different story.

According to the Elliott wave theory, the price should develop a downward wave C of Minor degree. The timing oscillator also suggests an intraday upward consolidation likely as a flag pattern before continuing its drops.

If you are interested in expanding your knowledge about the Elliott wave theory from the basics to advanced, visit our Forex.Academy Educational Section.

Categories
Forex Market Analysis

Daily F.X. Analysis, January 15 – Top Trade Setups In Forex – U.S. Retail sales in Focus!

On the news front, it’s going to be a busy Friday as the U.K. economy is due to release its GDP figures, which are expected to perform negatively, and this may add selling pressure on the Sterling. Later during the U.S. session, the U.S. retail sales may drive further price action in the dollar related pairs.

Economic Events to Watch Today  


EUR/USD – Daily Analysis

During Friday’s early Asian trading hours, the EUR/USD currency pair failed to stop its overnight losing streak and still trades in a sideways manner around below the 1.2150 marks due to the risk-off market sentiment underpinned the U.S. dollar and contributed to the currency pair gains. Besides this, the selling bias around the currency pair could also be attributed to the ever-increasing COVID-19 and tougher lockdown restrictions in the U.K. and Europe, which raised further doubts over the European economies and pushed the shared currency down. The declines in the EUR/USD currency pair were unaffected by the latest positive announcement from U.S. President-elect Joe Biden regarding the stimulus package. Currently, the EUR/USD currency pair is currently trading at 1.2144 and consolidating in the range between the 1.2143 – 1.2163. Moving on, the market traders seem reluctant to place any strong position ahead of European Trade Balance and French Final CPI m/m.

Besides, the new wave of the coronavirus in the U.K. and resulting in tighter travel restrictions in Europe and the U.K. keep fueling the fears over slower economic recovery as back to back lockdown restrictions tend to have an instant negative effect on economic activities, which in turn, added bearish pressure around the currency pair. As per the latest report, France recently introduced a new nationwide lockdown, while German Chancellor Merkel reportedly wants to toughen the German lockdown. Apart from this, approximately 22M people are currently under strict lockdown conditions in China’s Hebei province. This happened right after the country posted the largest number of new Covid-19 infections in over 5-months on Wednesday. This, in turn, exerted downside eight on the market risk tone and contributed to U.S. dollar gains.

As in result, the broad-based U.S. dollar managed to stop its overnight losses and edged higher during the Asian session on the day amid risk-off market sentiment. However, the U.S. dollar bullish bias was rather unaffected by the worsening coronavirus (COVID-19) conditions in the U.S., or U.S. stimulus talks progress, which tend to undermine the U.S. currency. However, the gains in the U.S. dollar kept the currency pair lower. 

Looking forward, the market players will keep their eyes on the release of U.S. Core Retail Sales m/m along with Retail Sales m/m. The French Final CPI m/ma and Trade Balance will also be closely followed. Meanwhile, the UK GDP m/m and Goods Trade Balance are also expected to release later on the day. Across the ocean, the updates surrounding the Sino-US tussle and virus woes could not lose their importance on the day.


Daily Technical Levels

Support   Resistance

1.2148      1.2178

1.2129      1.2189

1.2118      1.2208

Pivot Point: 1.2159

EUR/USD– Trading Tip

On Friday, the market’s technical side remains mostly unchanged as the EUR/USD continues to gain support at the 1.2136 level, and breaking of this can trigger an additional dip until 1.2105 and 1.2065 level. On the upside, the EUR/USD pair may find resistance at the 1.2170 level, and a bullish breakout of this level can extend the buying trend to 1.2220. The RSI and MACD have shifted their selling trends; therefore, we may see further sell-off upon the bearish breakout of 1.2136 level today.


GBP/USD – Daily Analysis

The GBP/USD During Friday’s early Asian trading session, the GBP/USD currency pair failed to maintain its overnight bullish bias and drew some offers around the 1.3680 level mainly due to the downbeat market trading mood, which underpinned the U.S. dollar bullish and contributed to the currency pair losses. Besides this, the selling bias around the currency pair could also be associated with the ever-rising numbers of COVID-19 and tougher lockdown restrictions in the U.K., which keep raising doubts over the economic recovery. In contrast to this, the latest reports suggest that the Bank of England (BOE) will keep the interest rates unchanged at least until 2024 to avoid negative rates, which helped the currency pair limit its losses. Also capping the losses could be the latest optimism around the coronavirus better situation in the U.K. Currently, the GBP/USD currency pair is currently trading at 1.3687 and consolidating in the range between the 1.3675 – 1.3699. Moving on, the market traders seem reluctant to place any strong position ahead of UK GDP m/m and Goods Trade Balance data.

Despite the ongoing optimism about a potential treatment/vaccine and U.S. coronavirus (COVID-19) stimulus bill, the market risk mood failed to stop its previous bearish performance and remained red amid growing market worries over the potential economic byproduct from the continuous rise in new COVID-19. The ongoing downfall around the equity market was completely sponsored by the fears of intensifying coronavirus (COVID-19) conditions throughout the world, which keeps fueling the doubts over the global economic recovery from COVID-19. 

Besides the virus woes, the reason for the bearish trading sentiment could also be associated with the long-lasting US-China tussle, which is continuously picking pace after U.S. President Donald Trump imposed new sanctions on Chinese officials and companies. All these events have been weighing on the market trading sentiment and were seen as major factors that kept the U.S. dollar prices higher.

As in result, the broad-based U.S. dollar managed to stop its overnight losses and edged higher during the Asian session on the day amid fresh risk-off market sentiment. However, the U.S. dollar gains were relatively unaffected by the worsening coronavirus (COVID-19) conditions in the U.S., or U.S. stimulus talks progress, which tend to undermine the U.S. currency. The U.S. President-elect Joe Biden recently revealed a much-anticipated coronavirus stimulus plan and promised to deliver $2,000 in stimulus cheques to Americans, infrastructure spending, social equity, and a potential minimum wage of $15 per hour. Unfortunately, Biden’s stimulus talk has failed to inject volatility in the forex markets so far. However, the gains in the U.S. dollar kept the currency pair lower. 


Daily Technical Levels

Support   Resistance

1.3555      1.3722

1.3445      1.3781

1.3387      1.3890

Pivot Point: 1.3613

GBP/USD– Trading Tip

The GBP/USD pair also trades sideways between a narrow trading range of 1.3703 – 1.3632. On the higher side, a bullish breakout of 1.3703 level can extend the buying trend until the next resistance area of 1.3744 and 1.3786. Conversely, a bearish breakout of 1.3632 support level can extend the selling trend until 1.3550. 


USD/JPY – Daily Analysis

During Friday’s early European trading session, the USD/JPY currency pair succeeded to maintain its bullish bias and to take rounds around above mid- 103.00 regions mainly due to the market’s downbeat mood and a strong rally in the U.S. bond yield, which kept the U.S. dollar bullish and contributed to the currency pair gains. However, the market trading sentiment was being pressured by the ever-rising numbers of COVID-19 and stricter lockdown restrictions throughout the world, which keeps fueling doubts over the global economy’s recovery. Meanwhile, the equity markets’ slumps were further bolstered by the renewed Sino-US tussle, which extended some support to the safe-haven Japanese yen and capped the upside for the USD/JPY currency pair. Conversely, the optimism about a potential treatment/vaccine and U.S. coronavirus (COVID-19) stimulus bill keeps challenging the market risk-off mood, which might change the direction for the USD/JPY currency pair. Currently, the USD/JPY currency pair is currently trading at 103.78 and consolidating in the range between 103.70 – 103.85.

The market trading sentiment failed to stop its early-day negative performance and remained pessimistic during the Asian trading session. The downfall was completely sponsored by the fears of intensifying coronavirus (COVID-19) conditions throughout the world, which keeps fueling the doubts over the global economic recovery from COVID-19. As per the latest report, France recently imposed a new nationwide lockdown, while German Chancellor Merkel is considering toughening the German lockdown. Apart from this, nearly 22M people are currently under strict lockdown conditions in China’s Hebei province. This happened right after the country posted the largest number of new Covid-19 infections in over 5-months on Wednesday. 

Besides the virus woes, the reason for the bearish trading sentiment could also be associated with the long-lasting US-China tussle, which is still not showing any sign of slowing down. The reason could be associated with the reports suggesting that the Trump administration is imposing sanctions on officials and companies for alleged misdeeds in the South China Sea and imposing an investment ban on 9 more Chinese firms with alleged ties to the Chinese military, including planemaker Comac and phone maker Xiaomi (OTC: XIACF) Corp. However, all these factors have been weighing on the market trading sentiment, which was seen as major factors that kept the U.S. dollar prices higher.

As in result, the broad-based U.S. dollar managed to extend its early-day gains and remained bullish on the day amid prevalent risk-off market sentiment. However, the gains in the U.S. dollar were rather unaffected by the U.S. stimulus progress, which tends to undermine the U.S. currency. It is worth noting that the U.S. President-elect Joe Biden promised to deliver $2,000 in stimulus cheques to Americans, infrastructure spending, social equity, and a potential minimum wage of $15 per hour. Unfortunately, this positive talk has failed to inject volatility in the forex markets so far. Notably, the gains in the U.S. dollar could be short-lived or temporary as the Fed Chairman Jerome Powell said that the time to raise the interest rates is no time soon. However, the ongoing bullish bias around the greenback kept the currency pair higher.

Looking forward, the market players will keep their eyes on the release of U.S. Core Retail Sales m/m along with Retail Sales m/m. Apart from this, the French Final CPI m/ma and Trade Balance will also be closely followed. At home, the UK GDP m/m and Goods Trade Balance are also expected to release later on the day. Across the ocean, the updates surrounding the Sino-US tussle and virus woes could not lose their importance on the day.


Daily Technical Levels

Support   Resistance

103.53      104.16

103.31      104.56

102.91      104.78

Pivot Point: 103.94

USD/JPY – Trading Tips

The safe-haven currency pair USD/JPY slipped to trade at 104.054 level amid increased demand for safe-haven assets. The USD/JPY has formed an upward channel on the 4-hour timeframe, and it has the chance of leading the pair towards the next resistance level of 104.340 level. The 50 periods EMA supports the bullish trend, and we may have odds of taking a buying trade over the 103.570 level today. Good luck! 

Categories
Forex Signals

GBP/USD Supported Over Double Bottom – Buy Signal Update! 

The GBP/USD is trading at 1.3692, and it has closed a Doji candle on the four hourly timeframes, and it may extend a bearish correction in the GBP/USD pair. On the lower side, the support stays at 1.3636 and resistance at 1.3692 and 1.3720 today. The GBP/USD pair’s 10 & 20 periods EMA is supporting bullish bias in the Sterling. The MACD and RSI support bullish bias; therefore, bullish bias dominates over the 1.3646 level today.


Entry Price – Buy 1.36606

Stop Loss – 1.36206

Take Profit – 1.37006

Risk to Reward – 1:1

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

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

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Categories
Forex Signals

AUD/NZD Upward Channel Underpinds – Bullish Setup in Play! 

The AUD/NZD pair is trading with a bullish bias at 1.07901 level, facing immediate support at 1.07820 level. On the higher side, the pair may find resistance at the 1.07990 level, and a bullish crossover of 1.0799 level can extend the buying trend until the 1.0810 level. The MACD is closing histograms over 0, suggesting bullish bias in the AUD/NZD pair. In any case, the pair can drop until the 1.0782 level before extending further higher. Here’s a trade plan…


Entry Price – Buy 1.07861

Stop Loss – 1.07461

Take Profit – 1.08261

Risk to Reward – 1:1

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

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

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

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

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

Categories
Forex Signals

AUD/USD Bullish Bias Continues – Symmetric Triangle Plays!

On Thursday, the AUD/USD trades bullish at 0.7767, and an upward violation of the 0.7778 mark is likely to extend the bullish trend until the next target of the 0.7818 mark. Whereas the support holds around the 0.7722 mark. The RSI and MACD are suggesting bullish sentiment; thus, we have begun a buying trade at the 0.7750 mark. 

The prevailing risk-off market mood also weighed on the risk-sensitive Australian dollar that ultimately added further pressure over the AUD/USD pair. On Tuesday, the daily death toll in the United States from the coronavirus hit a record of 4327 as the Trump administration attempted to fast-track the roll-out of vaccinations across the country. The US has the highest toll in the world from the coronavirus with a total of above 3lacs deaths, and it has also reported the highest number of infections with 22,959,610 confirmed cases of coronavirus. 

Despite lockdown and restrictive measures, these rising cases of coronavirus added to the risk-off market sentiment in the market and weighed on the risk perceived by Aussie that ultimately added pressure on the declining AUD/USD pair. Furthermore, the mixed signals from some of the US Federal Reserve members on how much longer policy can stay so accommodative also dragged the treasuries and supported the demand in US dollar that ultimately added in the losses of AUD/USD pair.


Entry Price – Sell 0.77599

Stop Loss – 0.77199

Take Profit – 0.77999

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 Elliott Wave Forex Market Analysis

EURAUD Under Bearish Pressure, What’s ahead?

The EURAUD cross is advancing in its incomplete third wave from a mid-term downward sequence that remains in play. Follow with us on what the Elliott wave theory tells about its next movement.

Technical Overview 

The big picture of the EURAUD cross unveiled in the following 12-hour chart exposes the price action moving in the extreme bearish sentiment zone during the second week of the year. However, both the acceleration and oversold could suggest the exhaustion of the bear market.

The following 12-hour chart exposes the market participants’ sentiment, unfolded by the 90-day high and low range. The figure reveals the institutional activity pushing the cross in the extreme bearish zone and consolidating under the yearly opening price at 1.58763.

On the other hand, the EMA(60) to Close Index recently pierced the -0.0300 level. This reading suggests both the oversold and the exhaustion of its accelerated downtrend identified with the black trend-line.

In this context, the accelerated downward trend-line breakout and the close above yearly opening price should warn about potential recoveries in the EURAUD cross.

Technical Outlook

The short-term Elliott wave outlook for the EURAUD cross unfolded in the 8-hour chart reveals the progress of an incomplete bearish impulsive wave of Minuette degree labeled in blue, suggesting further drops.

The previous chart illustrates the downward sequence that began on October 20th when the cross found fresh sellers at 1.68273 and started a bearish structural series of Minute degree labeled in black, which currently could be in its wave ((c)) or ((iii)). The internal structure seems developing its wave (iii) of Minuette degree identified in blue. 

The wave (iii) potential bearish target can be found between 1.56175 and 1.55359, which coincides with the descending channel’s base-line. Once the price tests the possible target area, the market participants could carry up the EURAUD cross toward the short-term descending channel’s upper line.

Regarding the wave (iv) in blue, considering the alternation principle, as wave (ii) is a simple corrective formation in price and time, wave (iv) should be complex and should last longer than wave (ii).

On the other hand, both the trend indicator and the timing plus momentum oscillator remain, supporting the bearish bias. Each rally could represent an opportunity to add positions to the bearish side.

In summary, the EURAUD cross continues in the extreme bearish sentiment zone advancing in an incomplete downward sequence, which could find support in the potential target zone between 1.56175 and 1.55539. Once the price finds support, the cross could start to bounce toward the upper line of its short-term descending channel. Finally, the bearish scenario analyzed will be invalid if the price soars above 1.60416, corresponding to the end of wave (i) in blue.

Categories
Forex Market Analysis

Daily F.X. Analysis, January 14 – Top Trade Setups In Forex – U.S. Fed Chair Powell Speech in Focus! 

The eyes will remain on the ECB Monetary Policy Meeting Accounts due during the late European session on the data front. Alongside, the U.S. Unemployment Claims and Fed Chair Powell Speaks will remain in highlights today.

Economic Events to Watch Today  

 


EUR/USD – Daily Analysis

The EUR/USD closed at 1.21577 after placing a high of 1.22226 and a low of 1.21396. The U.S. dollar recovered on Wednesday and weighed on EUR/USD pair that resulted in losses for another day. On Tuesday, the benchmark 10-year Treasury yields fell nearly seven basis points from a 10-month high hit on the day following strong demand at a $38 billion 10-year auction and comments from the U.S. Federal Reserve officials reiterating that monetary policy was going to stay supportive. 

The sharp rise in the U.S. yields resulted from the bond-market sell-off triggered by the rising hopes for massive stimulus measures largely funded by government borrowing after the Democrats claimed the Senate in Georgia runoff elections. 

At 12:00 GMT, the German WPI for December raised to 0.6% against the expected 0.1% and supported Euro on the data front. At 14:00 GMT, the Italian Industrial Production for November dropped to -1.4% against the expected -0.4% and weighed on Euro. At 15:00 GMT, the Industrial Production for November also raised to 2.5% against the expected 0.2% and supported Euro. From the U.S. side, at 18:30 GMT, the Consumer Price Index for December remained unchanged at 0.4%. The Core CPI for December also came in line with the forecasts of 0.1%. The European Central bank President Christine Lagarde called on Wednesday for global regulation of Bitcoin, saying that the digital currency had been used for money laundering activities in some instances and that any loopholes needed to be closed. The largely anonymous nature of cryptocurrencies has raised the concerns that they could be used for money laundering and other legal activities.

On Wednesday, the Federal Reserve Governor Lael Brainard said that unemployment for the lowest-paid workers in the U.S. was above 20%, and it underscores the importance of policy help for the economy. Brainard said that the figure indicated how uneven the recovery has seen since efforts to control the coronavirus pandemic resulted in the biggest quarterly GDP drop since the Great Depression. She also said that the level highlighted the need for accommodative policy, but she stated that it was too early to say how long Fed’s measures will stay in place. These comments from Brainard added strength to the U.S. dollar and added losses in EUR/USD pair on Wednesday.

Meanwhile, the losses in EUR/USD pair were extended after the German Chancellor Angela Merkel wanted to extend the current lockdown in Europe’s largest economy through the end of March. Extending the lockdown will hurt the Eurozone’s economy that could drag it to a double-dip recession, and it weighed on the local currency Euro that ultimately added weight on EUR/USD pair on Wednesday. Furthermore, On Wednesday, the House voted in favor of impeachment against Donald Trump, and he became the first U.S. President to be impeached twice. The House voted to impeach Trump on incitement of insurrection after the President incited a violent crowd to storm the Capitol last week, ultimately resulting in five deaths. These developments kept the safe-haven greenback under demand and added further losses in EUR/USD pair.

Daily Technical Levels

Support   Resistance

1.2148       1.2178

1.2129      1.2189

1.2118      1.2208

Pivot Point: 1.2159

EUR/USD– Trading Tip

The EUR/USD is gaining support at the 1.2136 level, and violation of this can cause further dip until 1.2105 and 1.2065 level. On the higher side, the EUR/USD pair may face resistance at the 1.2170 level, and a bullish breakout of this level can prolong the buying trend until 1.2220. The RSI and MACD have shifted their selling trends; therefore, we may see further sell-off upon the bearish breakout of the 1.2136 level today.


GBP/USD – Daily Analysis

The GBP/USD closed at 1.36364 after placing a high of 1.37010 and a low of 1.36115. The GBP/USD pair dropped on Wednesday after British Pound started trimming its previous daily gains amid the U.S. dollar recovery. The greenback recovered strength, and the DXY rose back to the area of the daily high near 90.30. The gains were modest as Wall Street trades mixed and despite the decline in the U.S. treasury. The 10-year U.S. Treasury yield fell to 1.09%, its lowest since January 8. 

After the third national lockdown in the U.K. was announced last week, there had been speculations that the Bank of England (BoE) could introduce negative interest rates to help support the economy, which proved negative for the British Pound. However, following Tuesday’s comments from Bank of Governor Andrew Bailey, which ended the speculation, Sterling has since rallied and continued to find support from markets. Furthermore, the British Pound also rose as Home Secretary Priti Patel addressed the nation and said that the current lockdown restrictions were strict enough, claiming investors who had been worried that tougher restrictions could have been announced to tackle rising infection rates. 

The prospects of new restrictions added weight to the local currency, and it was further supported by the comments from the Scottish Minister, who announced further restrictions. Nicola Sturgeon urged people to minimize their interaction and keep in mind that the virus was there with everyone. He said that people should assume that they have the virus or any person they were in contact with and urged the public to prevent it from spreading by following the rules and SOPs. The rising number of coronavirus cases and imposed lockdowns in the nation added weight to the local currency Sterling, which ultimately added the GBP/USD pair’s losses.

The U.S. Inflation rate and the rising U.S. Treasury yields helped and supported the U.S. dollar supported due to its safe-haven status from the rising number of coronavirus cases U.S. fiscal stimulus speculations. The rising demand for the U.S. dollar added in the losses of the British Pound to the U.S. Dollar exchange rate and dragged it down on Wednesday.

For Cable investors, any coronavirus developments will remain in focus for the end of the week, with success in the rollout of vaccines seen as British Pound positive. Sterling investors will also be watching Friday’s U.K. growth data, which could weaken the GBP/USD exchange rate. 

The British Pound investors will also be looking to Federal Reserve officials over the coming days, with Fed chair Jerome Powell speaking and indicating that U.S. monetary policy will be kept loose and the U.S. dollar is likely to struggle further. Greenback investors will also be focusing on Friday’s initial jobless claims that could also disappoint the traders.

Daily Technical Levels

Support   Resistance

1.3555      1.3722

1.3445      1.3781

1.3387      1.3890

Pivot Point: 1.3613

GBP/USD– Trading Tip

The GBP/USD is trading at 1.3692, and it has closed a Doji candle on the four hourly timeframes, and it may extend a bearish correction in the GBP/USD pair. On the lower side, the support stays at 1.3636 and resistance at 1.3692 and 1.3720 today. The GBP/USD pair’s 10 & 20 periods EMA is supporting bullish bias in the Sterling. The MACD and RSI support bullish bias; therefore, bullish bias dominates over the 1.3646 level today.


USD/JPY – Daily Analysis

The USD/JPY pair closed at 103.869 after placing a high of 103.995 and a low of 103.523. The pair refreshed daily tops on Wednesday, reversed an intraday dip near a one-week low, and recovered a quarter of the previous day’s losses. The U.S. Dollar demand rose on Wednesday amid the retracement slide from a 10-month high hit of U.S. treasury yield on a 10-year note that ultimately added to the USD/JPY pair’s upward momentum. The U.S. dollar was also high onboard amid the risk-off market sentiment on Wednesday due to increased infection cases and imposed lockdowns worldwide.

The Benchmark 10-year Treasury yields fell nearly seven basis points from a 10-month high hit on Tuesday following strong demand at a $38 billion 10-year auction. The comments from U.S. Federal Reserve officials stating that monetary policy would stay supportive also helped the U.S. dollar regain its strength and support the USD/JPY pair’s gains on Wednesday.

On the data front, at 04:50 GMT, the M2 Money Stock for the year from Japan remained flat at 9.2%. At 10:58 GMT, the Prelim Machine Tool Orders from Japan raised in December to 8.7% against November’s 8.6%. . From the U.S. side, at 18:30 GMT, the Consumer Price Index for December remained unaffected at 0.4%. The Core CPI for December also came in line with the projections of 0.1%.

The Kansas City Fed President Esther George has said that she does not expect the Fed to react if inflation exceeds the central bank’s 2% goal. Earlier in the month, the Democrats claimed the Senate after the runoff elections in Georgia that raised hopes for larger stimulus measures funded by the government borrowing. This resulted in a bond-market sell-off that drove U.S. yields sharply higher, helped stall the U.S. dollar’s decline, and supported the USD/JPY pair’s upward trend. 

The U.S. Federal Reserve officials expect a quick economic recovery if coronavirus vaccinations continue to gather pace; however, that could leave markets estimating about the outlook for the monetary policy by Central Bank. Federal Reserve might not recourse to faster than expected loosening of coronavirus stimulus efforts. Such a move from the Fed could put pressure on it to raise interest rates faster than expected, and this would help the U.S. dollar gather strength and support the rising USD/JPY pair. Moreover, on Tuesday, the daily U.S. coronavirus death-toll hit a record of 4327 as the Trump administration moved to rush the rollout of vaccinations across the country. During the holiday season around January 8, the rising death-toll was first seen in the U.S. with 4000 deaths, and it has reached 4327 now.

The total number of deaths in the United States from coronavirus has reached 382,624, and it is the biggest death-toll in the world. The U.S. also has the highest number of coronavirus cases globally, with 22,959,610 confirmed cases of coronavirus. Despite lockdown and restrictive measures, these rising coronavirus cases added weight on the U.S. dollar and capped further gains in the USD/JPY pair.

Daily Technical Levels

Support   Resistance

103.53      104.16

103.31      104.56

102.91      104.78

Pivot Point: 103.94

USD/JPY – Trading Tips

The safe-haven currency pair USD/JPY slipped to trade at 104.054 level amid increased demand for safe-haven assets. The USD/JPY has formed an upward channel on the 4-hour timeframe, and it has the chance of leading the pair towards the next resistance level of 104.340 level. The 50 periods EMA supports the bullish trend, and we may have odds of taking a buying trade over the 103.570 level today. Good luck! 

Categories
Forex Signals

EUR/JPY Violates Descending Triangle Pattern – Quick Sell Setup! 

The EUR/JPY is trading with a bearish bias at the 126.497 level, violating the support level of 126.497, which now is working as a resistance for the EUR/JPY pair. On the lower side, the EUR/JPY pair may find support at the 126.250 level, and further support can be expected at 126.100. The MACD value has crossed below 0, supporting selling bias as histograms are being formed under zero. The recent bearish engulfing candle on the hourly timeframe suggests strong odds of selling the EUR/JPY pair. Let’s consider selling trades in the EUR/JPY today. 


Entry Price – Sell 126.45

Stop Loss – 126.85

Take Profit – 126.05

Risk to Reward – 1:1

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

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

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

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

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

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Forex Signals

GBP/JPY Violates the Ascending Triangle Pattern – Bullish Signal Update! 

The GBP/JPY pair trades with a bullish bias at 142.090 level ever since it has violated the triple top resistance level of 141.296. On the higher side, the GBP/JPY pair soar until the next target level of 142.510. The GBP/JPY pair’s technical side is supporting strong bullish bias as the 10 & 20 periods EMA are in support of the buying trend. Here’s a quick trade plan…


Entry Price – Buy 141.942

Stop Loss – 141.944

Take Profit – 142.342

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