Categories
Forex Basic Strategies Forex Indicators Forex Service Review Forex Services Reviews-2

Market Profile Singles Indicator Review

Today we will examine the Market Profile Singles Indicator (we could also call it a single print indicator or gap indicator), which is available on the mql5.com market in metatrader4 and metatrader5 versions.

The developer of this indicator is Tomas Papp, who is located in Slovakia, and currently has 7 products available on the MQL5 market.

It is fair to point out that four of his products are completely FREE and are in a full-working version. These are: Close partially, Close partially MT5, Display Spread meter, Display Spread meter MT5. So it’s definitely worth a try.

Overview of the Market Profile Singles 

This indicator is based on market profile theory. It was designed to show “singles areas.” But, what exactly is a singles area?

Theory of the Market Profile Singles

Singles, or single prints, or gaps of the profile are placed inside a profile structure, not at the upper or lower edge. They are represented with single TPOs printed on the Market profile. Singles draw our attention to places where the price moved very fast (impulse movements). They leave low-volume nodes with liquidity gaps and, therefore, the market imbalance. Thus, Singles show us an area of imbalance. Singles are usually created when the market reacts to unexpected news. These reports can generate extreme imbalances and prepare the spawn for the extreme emotional reactions of buyers and sellers.

The market will usually revisit this area to examine as these price levels are attractive for forex traders, as support or resistance zones. Why should these traders be there? Because the market literally flew through the area, and only a small number of traders got a chance to trade there. For this reason, these areas are likely to be filled in the future.

The author also adds: “These inefficient moves tend to get filled, and we can seek trading opportunities once they get filled, or we can also enter before they get filled and use these single prints as targets.”

The author points out: Used as support/resistance zones, but be careful not always. Usually, it works very well on trendy days. See market profile days: trend day (Strategy 1 – BUY – third picture) and trend day with double distribution (Strategy 1 – SELL- third picture).

Practical use of the Market Profile Singles Indicator

So let’s imagine the strategies that the author himself recommends. Of course, it’s up to you whether you use these strategies or whether you trade other strategies for the singles area. Here we will review the following ones:

  • Strategy 1: The trend is your friend
  • Strategy 2: Test the nearest level
  • Strategy3: Close singles and continuing the trend

The author comments that these three strategies are common and repeated in the market, so it is profitable to trade them all.

The recommended time frame is M30, especially when using Strategy 2.

It is good to start the trend day and increase the profit, but be aware that trendy days happen only 15 – 20% of the time. Therefore, the author recommends mainly strategy 2, which is precise 75-80% of the time.

 

Strategy 1 – BUY :

  1. A bullish trend has begun.
  2. The singles area has been created.
  3. The prize moves sideways and stays above the singles area.
  4. We buy above the singles area and place the stop loss under the singles area.
  5. We place the profit target either according to the nearest market profile POC or resistance or under the nearest singles area. We try to keep this trade as long as possible because there is a high probability that the trend will continue for more days.

Strategy 1 – SELL :

  1. The bear trend has begun.
  2. The singles area has been created.
  3. The prize goes to the side and stays under the singles area.
  4. We sell below the singles area and place the stop loss above the singles area.
  5. We will place the target profit either according to the nearest market profile POC or support or above the nearest singles area. We try to keep this trade as long as possible because there is a high probability that the trend will continue for more days.

 

Before we start with Strategy 2, let’s explain the Initial Balance(IB) concept. IB is the price range of (usually) of the first two 30-minute bars of the session of the Market Profile. Therefore, Initial Balance may help define the context for the trading day.

The IBH (Initial Balance High) is also seen as an area of resistance, and the IBL (Initial Balance Low) as an area of support until it is broken.

Strategy 2 – one day – BUY:

This strategy will take place on a given day.

  1. There is a singles area near IB. (a singles area was created on a given day)
  2. The price goes sideways or creates a V-shape
  3. We expect to return to the singles area or IB. We buy low and place the stop loss below the daily low (preferably a little lower) and place the target profit below the IBL (preferably a little lower).

 

Strategy 2 – one day – SELL:

This strategy will take place on a given day.

  1. There is a singles area near IB. (a singles area was created on a given day)
  2. The price goes sideways or creates a reversed font V
  3. We expect to return to the singles area or IB. We sell high and place the stop loss above the daily high (preferably a little higher) and place the target profit above the IBH (preferably a little higher).

 

Strategy 2- more days- BUY:

This strategy takes more than one day to complete (Singles were created one or more days ago)

  1. After the trend, the price goes sideways and does not create a new low (or only minimal but with big problems)
  2. Nearby is a singles area (Since the price cannot go to one side, there is a high probability that these singles will close).
  3. We buy at a low, placing a stop-loss order a bit lower. We will place the target profile under the singles area.

 

Strategy 2- more days- SELL:

This strategy takes longer than one day (Singles were created one or more days ago)

  1. After the trend, the price goes to the side and does not create a new high (or only minimal but with big problems)
  2. Nearby is a singles area ( Since the price cannot go to one side, there is a high probability that these singles will close ).
  3. We sell at a high, and we place a stop-loss a bit higher. We will place the target profile above the singles area.

Strategy 3 – BUY:

  1. The current candle closes singles.
  2. Add a pending order above the singles area and place the stop-loss under the singles area or the candle’s low. (whichever is lower)
  3. Another candle must occur above the singles area. (If this does not happen, we will delete the pending order) .
  4. We will place the profit-target either according to the nearest market profile POC or resistance or under the nearest singles area.

 

Strategy 3 – SELL:

  1. The current candle closes singles.
  2. Add a pending order under the singles area and place the stop-loss above the singles area or candle’s high (whichever is higher).
  3. Another candle must occur under the singles area. (If this does not happen, we will delete the pending order) .
  4. We will place the profit-target either according to the nearest market profile POC or support or above the nearest singles area.

Discussion

These strategies look really interesting.  As the author himself says:

It’s not just a strategy. There is more to it in profitable trading. For me personally, they are most important when trading: Probability of profit, patience, quality signals with a good risk reward ratio (minimum 3: 1) and my head. I think this is the most important.

In this, we must agree with the author.

 

Service Cost

The current cost of this indicator is $50. You are also able to rent the indicator. For a one-month rental, it is $30 per month. There is also a demo version available it is always worth testing out the demos before purchasing. Though.

After purchasing the indicator, the author sends two more indicators to his customers as a gift: Market Profile Indicator and Support and Resistance Indicator.

Conclusion: There are only 2 reviews for the indicator so far, but they have 5 stars and are very positive.

For us, this indicator is interesting, and it is a big plus that the author shares his strategies. The price is also acceptable since the indicator costs 50 USD = 5 copies (10-USD / 1 piece), and since the author sends another 2 indicators as a gift, this price is really worthwhile.

The author added:

By studying the market profile and monitoring the market, I came up with an indicator and strategies we would like to present to you. Here you can try it for free :

 

MT4: https://www.mql5.com/en/market/product/52715

MT5: https://www.mql5.com/en/market/product/53385

 

And here you can watch the video:

 

 

Also, a complete description of the strategies and all the pictures can be seen HERE :

Other completely free of charge tools:

https://www.mql5.com/en/users/tomo007/seller#products

 

Categories
Forex Service Review

TS Currency Power Scalper Review

TS Currency Power Scalper is an EA created in April 2020 by developer Jian Chen. TS Currency Power Scalper is an expert advisor based on trading multiple currency pairs (Forex).

When you start running this EA, the first thing you will do is scan the price changes of all major currencies and crossed currency pairs, and determine the strength of each currency. Then it is traded on the strength of the short-term currency/ trend reversal. This is the introduction to the “TS Trading Strategy Currency Power EA”.

TS Currency Power Scalper has strict risk management:

For each currency pair, only one position is allowed. There is no network negotiation and no Martingale strategy is involved. Each open position has a stop-loss, which you can set in the EA input parameter. Since it is a multi-currency EA, it is not suitable to be tested on the MT4 Strategy Tester. Your performance in the Strategy Tester is not real performance.

TS Currency Power Scalper is very easy to use, you can consult the following links:

The most relevant thing is to establish the value of the input parameter “One Symbol Mode” to “false” when running the EA in the real/demo environment.

To run TS Currency Power Scalper, the steps are very simple:

The key steps are,

  1. Añadir al Market Watch todos los símbolos de los pares de divisas principales y cruzados, incluidos: EURUSD, GBPUSD, USDJPY, AUDUSD, NZDUSD, USDCAD, USDCHF, EURGBP, EURJPY, EURAUD, EURNZD, EURCAD, EURCHF, GBPJPY, GBPAUD, GBPNZD, GBPCAD, GBPCHF, AUDJPY, NZDJPY, CADJPY, CHFJPY, AUDNZD, AUDCAD, AUDCHF, NZDCAD, NZDCHF, y CADCHF.
  2. Attach the EA to any card. You will need only one EA instance on an MT4 terminal.

Important: Set the value of the input parameter “Mode of a symbol” to “false”.

When it’s the first time you run EA and EA cannot find the required data. It will open the appropriate M15 cards and close them automatically. If symbol names have a suffix, please don’t forget to put it in the proper input parameter.

In short, we are talking about an EA of which we do not have information because the developer has chosen to avoid it. Moreover, since it is a newly created tool, it lacks opinions from users who have been able to test it. We always like to value the user experience as it gives us a broader view of the quality of the product.

As in any EA, it is recommended to use a VPS or virtual server while the EA is working. If we don’t have VPS, we’ll have to keep our computer on 24/7. It is also important to choose a good broker, who provides us with an ECN account and has low latency to ensure that the commands that the robot opens are executed in the shortest time possible.

It is advisable to download the demo version in order to get familiar with the tool and to be able to test it even if it is in a demo account.

If you want to purchase this robot, you have it for sale on the MQL market at a price of 180 USD. It is also available for rent at a price of 50 USD for one month, and 100 USD for 3 months of use.

Categories
Forex Service Review

Two Lines Indicator Tester Review

Two Lines Indicator Tester is an indicator tester created in March 2020 by Australian developer Alberto Castellucchio. This EA is for technical analysis traders only. If you focus on indicators for confirmations or signals, you will also find this indicator tester useful.

Many indicators make you lose technical strategies. Big indicators make money if you optimize it properly. The problem will be solved here, with Two Lines Indicator Tester. Testing your indicators in a reliable and consistent way is the cornerstone of a solid technical strategy. There are more than five thousand indicators in the MQL market alone, and it is impossible to know which one will be profitable for you.

This tool has been created to perform your backtest results fast, reliable, and consistent so you can choose the best indicators in minutes not days. The developer used it to select 20 of the most reliable indicators and create their trend and says it works great.

What is a two-line indicator? As you may have imagined by now, a two-line indicator is an indicator that draws two lines. A pair of slow and fast-moving stocks can be considered a two-line indicator. A signal is given each time the lines cross and close in the opposite direction.

This tool is the first part of a series of 3 testers:

• Zero-Crossing Indicator Tester (to be published soon)
• Two lines of
• Line crossing price indicator tester (to be published soon)

What this tester does for you:

– Test and optimize indicators in very few minutes, not hours.

– Make your test results as reliable and consistent as possible. This is very important.

– Can be applied to any instrument, including Forex, Metals, Oil, Indices, Commodities, Bitcoin, and Shares.

– Money management. It is advisable to establish your SL and TP according to ATR for better risk management.

– Scale the winning positions and let your winners run using a delay SL for managing perfect operations (optional).

– Use any automatically calculated risk percentage to match your SL for perfect batch size and money management.

– Optimize and Test any indicator with up to 6 parameters including a “text” parameter.

What you can get with the “Two-Line Indicator Tester”

– Instant access to user training material for those starting with MT4 and indicator testing.

– A list of 1500 free indicators available in MQL5.com already sorted by sections (Two lines, Zero, Price crossing) so that you can immediately start testing immediately (this is another massive time saving).

– An Excel sheet to test your indicators in an organized way.

Limitations of the EA:

– You can test indicators with up to 8 numerical inputs
– You will be able to test the indicators with a maximum of one input string.
– As the EA has been created to be used to return to the test rental or demo will not be available

This is your chance to create your strategy based on hard data and solid technical analysis. Fast and reliable.

In short, we are not talking about an EA, but about a tester of indicators, which in a short time can help us to choose the combination of 2 indicators that give us reliable and cost-effective signals. One of the biggest improvements to this tool is the time savings it can provide, given its huge database and its functionality.

We have the option of being able to test it for free in its demo version and thus make the necessary checks to know if this tool can be useful or not to create your own strategies.
As a newly created tool, there are for the moment no user opinions that can give their testimony about the usefulness of this product.

If once tested this tool is of interest to you, you can buy it on the MQL market at the price of 170 USD. It is not currently available for rent.

Categories
Forex Market Analysis

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

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

Economic Events to Watch Today  


 


EUR/USD – Daily Analysis

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

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

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

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

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

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

Daily Technical Levels

Support Resistance

1.1734    1.1784

1.1708    1.1808

1.1684    1.1834

Pivot point: 1.1758

EUR/USD– Trading Tip

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


GBP/USD – Daily Analysis

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

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

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

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

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

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

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

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

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

Daily Technical Levels

Support Resistance

1.2921    1.3013

1.2863   1.3049

1.2828    1.3106

Pivot Point: 1.2956

GBP/USD– Trading Tip

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


USD/JPY – Daily Analysis

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

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

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

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

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

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

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

Daily Technical Levels

Support Resistance

105.66    106.18

105.36    106.42

105.13    106.71

Pivot point: 105.89

USD/JPY – Trading Tips

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

Categories
Forex Market Analysis

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

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

Economic Events to Watch Today  


EUR/USD – Daily Analysis

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

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

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

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

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

Daily Technical Levels

Support Resistance

1.1726     1.1817

1.1670     1.1854

1.1634     1.1909

Pivot point: 1.1762

EUR/USD– Trading Tip

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


GBP/USD – Daily Analysis

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

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

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

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

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

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

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

Daily Technical Levels

Support Resistance

1.2921     1.3013

1.2863     1.3049

1.2828     1.3106

Pivot Point: 1.2956

GBP/USD– Trading Tip

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


USD/JPY – Daily Analysis

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

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

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

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

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

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

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

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

Daily Technical Levels

Support Resistance

105.39     105.91

105.08     106.12

104.88     106.43

Pivot point: 105.60

USD/JPY – Trading Tips

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

Categories
Forex Market Analysis

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

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

Economic Events to Watch Today  


EUR/USD – Daily Analysis

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

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

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

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

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

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

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

Daily Technical Levels

Support Resistance

1.1726    1.1817

1.1670    1.1854

1.1634    1.1909

Pivot point: 1.1762

EUR/USD– Trading Tip

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


GBP/USD – Daily Analysis

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

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

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

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

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

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

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

Daily Technical Levels

Support Resistance

1.2921    1.3013

1.2863    1.3049

1.2828    1.3106

Pivot Point: 1.2956

GBP/USD– Trading Tip

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


USD/JPY – Daily Analysis

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

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

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

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

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

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

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

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

Daily Technical Levels

Support Resistance

105.39    105.91

105.08    106.12

104.88    106.43

Pivot point: 105.60

USD/JPY – Trading Tips

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

Categories
Forex Market Analysis

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

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

Economic Events to Watch Today  

 

 


EUR/USD – Daily Analysis

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

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

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

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

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

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

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

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

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

Daily Technical Levels

Support Resistance

1.1718      1.1771

1.1691      1.1797

1.1665      1.1824

Pivot point: 1.1744

EUR/USD– Trading Tip

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

GBP/USD – Daily Analysis

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

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

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

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

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

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

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

Daily Technical Levels

Support Resistance

Support Resistance

1.2812     1.2974

1.2735     1.3057

1.2651     1.3135

Pivot Point: 1.2896

GBP/USD– Trading Tip

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


USD/JPY – Daily Analysis

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

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

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

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

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

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

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

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

Daily Technical Levels

Support Resistance

Support Resistance

105.35    105.70

105.20    105.90

104.99    106.05

Pivot point: 105.55

USD/JPY – Trading Tips

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

 

Categories
Forex Market Analysis

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

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

Economic Events to Watch Today  

 

 


EUR/USD – Daily Analysis

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

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

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

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

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

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

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

Daily Technical Levels

Support Resistance

1.1686       1.1772

1.1630       1.1802

1.1600       1.1858

Pivot Point: 1.1716

EUR/USD– Trading Tip

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


GBP/USD – Daily Analysis

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

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

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

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

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

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

Daily Technical Levels

Support Resistance

1.2821       1.2902

1.2781       1.2943

1.2740       1.2983

Pivot point: 1.2862

GBP/USD– Trading Tip

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

 


USD/JPY – Daily Analysis

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

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

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

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

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

Daily Technical Levels

Support Resistance

105.41      105.82

105.17      105.99

105.00      106.23

Pivot point: 105.58

  

USD/JPY – Trading Tips

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

 

Categories
Forex Service Review

Virtual Killer Trade EA Review

Virtual Killer Trade is an EA created in September 2019 by Antonis Michos, a very active developer in the MQL market channels. Recently this EA has been updated, and the developer claims it is a very good tool because it guides you when opening each trade.

After opening the trade, a smart system begins to manage that trade and you don’t have to worry when to close it or when you should open a second or a third trade. Like any EA, you connect, you wait for the signal, you open the trade and then you can forget about trading, the robot will do it for you.

For more experienced traders, you no longer have to wait for a signal, you can open a trade manually and then let the EA work the position.

Recommendations

Trading with a one-minute time frame is the recommendation made by the creator of EA. The EA can open operations on each TF, but will manage it differently. Any currency pair can be traded by this EA. Initial capital of USD 1000 is recommended. You can start with less capital but you need experience in the markets to have a balance of less than 1000 USD in your account.

Tickets

Drawdown: By increasing it from 1 to higher the mechanism of overlapping closing positions will be activated when each open trade has more than 1 USD of loss.

Minutes period: Set the minutes of the time frame used by EA (M1).

Seqbaselots: The initial lot of the trade MANUAL (one to sell one to buy).

Initiates: The lot size that opens the EA after the trade manual, (One to sell and buy)

Multiplyonloss: The lot size multiplier that opens the EA after making a manual trade, (One to sell and buy).

Volumeupperlimit: The maximum lot size of the EA position is allowed to open. (e. g up to 0.15 lot position.

Important: You must change the “period of minutes” of input depending on the TF you want. e. g 5 for 5 min, 60 for 1H, etc.

Conclusion

In short, we are talking about an EA that seems to be producing good results, since it has only been in the market for a short time, and the ratings of its users are very positive. It also has a point in favor since, for a commercial EA, its price is not very high. The selling price on the MQL market is 120 USD, you can also rent it for 50 USD per month, and test the tool with the free trial version available.

We would have liked the developer to provide users with the operation of the EA in an audited real account, but at the moment, this information is not provided.

Categories
Forex Market Analysis

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

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

Economic Events to Watch Today  

 

 

EUR/USD – Daily Analysis

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

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

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

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

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

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

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

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

Daily Technical Levels

Support Resistance

1.1625      1.1689

1.1588      1.1716

1.1561      1.1754

Pivot point: 1.1652

EUR/USD– Trading Tip

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

GBP/USD – Daily Analysis

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

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

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

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

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

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

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

Daily Technical Levels

Support Resistance

1.2698      1.2791

1.2647      1.2833

1.2605      1.2884

Pivot point: 1.2740

GBP/USD– Trading Tip

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

 

USD/JPY – Daily Analysis

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

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

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

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

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

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

Daily Technical Levels

Support    Resistance

105.41      105.82

105.17      105.99

105.00      106.23

Pivot point: 105.58

  

USD/JPY – Trading Tips

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

 

Categories
Forex Market Analysis

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

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

Economic Events to Watch Today  

 

 


EUR/USD – Daily Analysis

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

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

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

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

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

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

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

Daily Technical Levels

Support Resistance

1.1636      1.1698

1.1600      1.1724

1.1573      1.1760

Pivot point: 1.1662

EUR/USD– Trading Tip

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


GBP/USD – Daily Analysis

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

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

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

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

Daily Technical Levels

Support Resistance

1.2698     1.2791

1.2647     1.2833

1.2605     1.2884

Pivot point: 1.2740

GBP/USD– Trading Tip

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

 


USD/JPY – Daily Analysis

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

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

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

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

Daily Technical Levels

Support Resistance

105.22      105.56

105.04      105.72

104.88      105.90

Pivot point: 105.38

  

USD/JPY – Trading Tips

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

 

Categories
Forex Market Analysis

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

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

Economic Events to Watch Today  

 

 


EUR/USD – Daily Analysis

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

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

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

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

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

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

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

Daily Technical Levels

Support Resistance

1.1636       1.1698

1.1600       1.1724

1.1573       1.1760

Pivot point: 1.1662

EUR/USD– Trading Tip

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


GBP/USD – Daily Analysis

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

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

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

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

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

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

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

Daily Technical Levels

Support Resistance

1.2698       1.2791

1.2647       1.2833

1.2605       1.2884

Pivot point: 1.2740

GBP/USD– Trading Tip

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

 


USD/JPY – Daily Analysis

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

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

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

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

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

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

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

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

Daily Technical Levels

Support Resistance

105.22       105.56

105.04       105.72

104.88       105.90

Pivot point: 105.38

  

USD/JPY – Trading Tips

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

 

Categories
Forex Service Review

Xetera Multi TP Manager EA Review

Xetera Multi TP Manager EA is a robot that was created in March 2020 by developer Ghanaian Oteng Micheal. Oteng Micheal is a developer who has previously created other automated trading systems that are available on the MQL market.

Xetera Multi TP Manager for FX is an Expert Advisor specially designed for Forex on the MetaTrader 4 platform to manage operations even while you are out or asleep. Many Forex signal services use multiple socket gain levels like TP1, TP2, and TP3.

Signal services give you multiple target levels to increase your profit, but the problem is that you always need a person to monitor your operations and move the Stop Loss, behind.

Therefore, this problem has been solved by developing this EA that can help you manage your operations and secure your benefits by moving the stop loss to the right place at the right time.

Xetera Multi TP Manager Ea opens 3 positions from 1 trading (each position points to different levels of TP). Therefore, it is necessary to divide the size of your lot to 3 parts. We recommend that you use half the batch size of TP1 for TP2 and TP3. If using 0.10 for TP1, use 0.05 for TP2 and TP3.

The EA moves the Stop Loss as follows, (EA never forgets to move SL to ensure its benefit)

It’s as simple as 1-2-3:

Default settings

SL @ 50 , TP1 @ 20, TP2 @ 50, TP3 @ 100, Behind @ 5, Lot1 @ 0.10, Lot2 @ 0.05, and Lot3 @ 0.05

– If the first operation (lot 0.10) reaches the TP1, then EA moves the SL to +5 PIPS from the entry point.

– If the second operation (lot 0.05) reaches the TP2, then EA moves the SL to more than +5 PIPS of the TP1.

– Ultimately, the third target is TP3. This wonderful EA does everything for you.

All figures in levels are configurable in EA settings, making it ideal to be used for all types of currencies, metals, or indices on the MT4 platform.

Understanding the panel multi tp manager of Xetera Multi TP Manager EA:

We have created a simple panel for the Multi TP Manager where you can enter figures like SL, TP1, TP2 and TP3, Lot1, Lot2 and Lot3

  1. Buy/Sell button (For instant execution Purchase or sale by market)
  2. Switching between PIP or PRICE mode

– If you select PIP mode, you must enter the exact values provided by your signal service or provider

– If you select PIP mode, you can use the previous values or enter the values provided by your signal service or provider. Note that in PIP mode, TP and SL levels will be calculated from the market execution price.

  1. Stop the loss

– Set Stop Loss by Price or Pips by Active Mode

  1. Size of batch

– Put in your batch sizes in each box, Lot1, Lot2 and Lot3 (eg. Lot1 = 0.10, Lot2 = 0.05, Lot3 = 0.05)

  1. To obtain benefits

– Put in your TP levels. You have up to 3 levels

In short, we are talking about an EA that works position based on dynamic TP and SL levels. We always recommend that using an EA you have a dedicated virtual server (VPS), to ensure that the transactions that the EA performs are replicated on our computer, even if it is turned off. If we do not have this tool we will have to leave the computer on 24/7.

Another tip is to have an ECN account at a trusted broker that has low latency so that our transactions run as fast as possible, as well as for the broker to collect low spreads and commissions. Because this tool has been on the market for a very short time, we lack user opinions that can tell us what experience they have had using EA.

Xetera Multi TP Manager EA is for sale, available on the MQL market, at a price of 280 USD, is also available for rent at a price of 30 USD for 1 month, 60 USD for 3 months, and 180 USD for 1 year of use. A free demo version is also available and we recommend that you download it in order to test the EA and get to know better its performance and its profitability potential.

Categories
Forex Market Analysis

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

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

Economic Events to Watch Today  

 

 


EUR/USD – Daily Analysis

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

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

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

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

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

Daily Technical Levels

Support Resistance

Support     Resistance

1.1636       1.1698

1.1600       1.1724

1.1573       1.1760

Pivot point: 1.1662

EUR/USD– Trading Tip

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


GBP/USD – Daily Analysis

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

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

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

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

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

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

 Daily Technical Levels

Support    Resistance

1.2698        1.2791

1.2647        1.2833

1.2605        1.2884

Pivot point: 1.2740

GBP/USD– Trading Tip

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

 


USD/JPY – Daily Analysis

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

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

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

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

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

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

Daily Technical Levels

Support    Resistance

105.22        105.56

105.04        105.72

104.88        105.90

Pivot point: 105.38

  

USD/JPY – Trading Tips

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

 

Categories
Forex Market Analysis

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

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

Economic Events to Watch Today  

 

 


AUD/USD – Daily Analysis

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

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

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

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

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

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

Daily Technical Levels

 Support      Resistance  

0.7035       0.7147  

 0.6996      0.7218  

 0.6924      0.7258  

  Pivot Point: 0.7107  

  

AUD/USD– Trading Tip

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


USD/CAD– Daily Analysis

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

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

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

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

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

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

 Daily Technical Levels

Support      Resistance

  1.3323      1.3418  

  1.3260      1.3450  

  1.3228      1.3513  

  Pivot Point: 1.3355  

  

USD/CAD– Trading Tip

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

 


USD/JPY – Daily Analysis

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

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

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

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

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

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

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

Daily Technical Levels

Support      Resistance

  105.0000      105.6100  

  104.6400      105.8600  

  104.3900      106.2100  

  Pivot Point: 105.2500  

  

USD/JPY – Trading Tips

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

 

Categories
Forex Market Analysis

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

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

Economic Events to Watch Today  

 


EUR/USD – Daily Analysis

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

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

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

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

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

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

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

Daily Technical Levels

Support Resistance

1.1709     1.1851

1.1649     1.1933

1.1568     1.1993

Pivot Point: 1.1791

EUR/USD– Trading Tip

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


GBP/USD – Daily Analysis

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

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

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

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

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

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

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

 Daily Technical Levels

Support Resistance

1.2737     1.2930

1.2659     1.3045

1.2544     1.3123

Pivot point: 1.2852

GBP/USD– Trading Tip

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

 


USD/JPY – Daily Analysis

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

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

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

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

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

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

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

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

Daily Technical Levels

Support Resistance

104.44     105.10

104.15     105.47

103.78     105.76

Pivot point: 104.81

USD/JPY – Trading Tips

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

Good luck! 

 

Categories
Forex Market Analysis

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

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

Economic Events to Watch Today  

 

 


EUR/USD – Daily Analysis

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

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

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

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

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

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

Daily Technical Levels

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

EUR/USD– Trading Tip

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


GBP/USD – Daily Analysis

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

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

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

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

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

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

 Daily Technical Levels

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


GBP/USD– Trading Tip

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

 

USD/JPY – Daily Analysis

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

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

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

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

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

Daily Technical Levels

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

USD/JPY – Trading Tips

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

Good luck! 

 

 

Categories
Forex Market Analysis

Daily F.X. Analysis, September 17 – Top Trade Setups In Forex – Brace for BOE Policy! 

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

Economic Events to Watch Today  

 

EUR/USD – Daily Analysis

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

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

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

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

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

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

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

Daily Technical Levels

Support Pivot Resistance
1.1773 1.1828 1.1869
1.1732 1.1924
1.1676 1.1966

EUR/USD– Trading Tip

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

GBP/USD – Daily Analysis

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

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

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

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

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

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

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

 Daily Technical Levels

Support Pivot Resistance
1.2890 1.2949 1.3024
1.2815 1.3083
1.2757 1.3157

GBP/USD– Trading Tip

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

 

USD/JPY – Daily Analysis

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

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

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

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

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

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

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


Daily Technical Levels

Support Pivot Resistance
104.6700 105.0600 105.3300
104.4100 105.7100
104.0200 105.9800

USD/JPY – Trading Tips

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

Good luck! 

 

 

Categories
Forex Market Analysis

Daily F.X. Analysis, September 15 – Top Trade Setups In Forex – Series of Events in Focus! 

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

Economic Events to Watch Today  

 

EUR/USD – Daily Analysis

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

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

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

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

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

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

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

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

Daily Technical Levels

Support Pivot Resistance
1.1835 1.1862 1.1894
1.1803 1.1921
1.1776 1.1954

EUR/USD– Trading Tip

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

GBP/USD – Daily Analysis

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

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

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

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

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

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

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

 Daily Technical Levels

Support Pivot Resistance
1.2774 1.2847 1.2919
1.2702 1.2992
1.2629 1.3063

GBP/USD– Trading Tip

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

USD/JPY – Daily Analysis

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

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

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

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

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

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

Daily Technical Levels

Support Pivot Resistance
105.4500 105.8300 106.1200
105.1600 106.5000
104.7800 106.7800

USD/JPY – Trading Tips

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

 

Categories
Forex Market Analysis

Daily F.X. Analysis, September 14 – Top Trade Setups In Forex – U.S. Industrial Production in Focus! 

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

Economic Events to Watch Today  

 

 


EUR/USD – Daily Analysis

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

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

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

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

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

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

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

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

Daily Technical Levels

Support Pivot Resistance
1.1831 1.1840 1.1850
1.1820 1.1860
1.1811 1.1870

EUR/USD– Trading Tip

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


GBP/USD – Daily Analysis

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

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

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

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

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

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

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

 Daily Technical Levels

Support Pivot Resistance
1.2786 1.2799 1.2823
1.2762 1.2836
1.2748 1.2860

GBP/USD– Trading Tip

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

USD/JPY – Daily Analysis

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

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

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

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

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

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

Daily Technical Levels

Support Pivot Resistance
106.0900 106.1500 106.2100
106.0300 106.2800
105.9600 106.3400

USD/JPY – Trading Tips

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

 

Categories
Forex Elliott Wave Forex Market Analysis

Dow Jones: Still no New Record High Confirmation

Overview

The Dow Jones Industrial Average continues its advances toward the green side. During this year, it is still easing 1.08% (YTD). The DJIA index, which groups to the 30 largest capitalized U.S. companies, move in the extreme bullish sentiment zone unveiling the probability of new record highs in the U.S. stock market. Likely, it could find resistance at the 30,000 pts as a psychological barrier confirming the all-time highs observed both S&P 500 and NASDAQ 100.

Market Sentiment Overview

During this year, the Dow Jones Industrial Average eases 1.08% (YTD), returning from the bear market to bull market side. The recovery experienced by the Industrial Average, carried it to jump from the lowest level of the year at 18,213.5 pts to 28,287 pts gaining over 55%. 

The following figure compares the advance of Dow Jones and the S&P 500 in its weekly timeframe. In these two charts, we observe that both indexes move in the extreme bullish sentiment zone. However, although surprising, the recovery observed in the U.S. stock market, the Industrial Average still doesn’t confirm the all-time high of the S&P 500, reached on the latest trading sessions

If we look at the Dow Jones’ volatility (VXD), it is running below the 60-day moving average, which confirms that the market sentiment continues being in favor of fresh upsides on the Industrial Average.

Finally, considering that both NASDAQ 100 and S&P 500 reached fresh all-time highs in the latest sessions, the Dow Jones should follow the same path in the coming trading sessions.

Elliott Wave Outlook

The mid-term outlook for the Industrial Average provided by the Elliott Wave Analysis reveals the bullish continuation of the incomplete wave B of Minor degree labeled in green, which could push it toward new all-time highs.

The next 4-hour chart illustrates the price running in an uptrend that began on March 23rd when the U.S. Blue Chip index found fresh buyers at 18,213.5 pts, developing a corrective structural sequence that remains incomplete.

Once the Industrial Average broke upward the (b)-(d) upper-line of the triangle drawn by the wave ((b)) of Minor degree, the price activated its progression as wave ((c)), which is characterized by the inclusion of five internal waves. 

Currently, Dow Jones continues its development in an incomplete wave (iii) of the Minuette degree labeled in blue. Simultaneously, the bullish trendline looks intact, which leads us to conclude that the uptrend remains sound, calling for more upsides in the following trading sessions.

Finally, considering that both the S&P 500 and NASDAQ 100 reached new record highs, we expect further upsides and record highs on Dow Jones. A potential target could be at 30,000 pts as this psychological barrier will be a natural profit-taking level.

Categories
Forex Service Review

RoFX Forex Trading Robot Review

RoFX was created by a team of software developers and traders in 2009 before being made available to the public one year later. The system is fully automated and seems to be targeted towards beginners without much experience, along with more advanced traders that don’t have the time to trade consistently.

Overview

RoFX was created to place trades automatically on one’s account, which makes it a good choice for any investor that is just starting out. The website points out that experience is not needed to use this system and that human emotions won’t negatively affect trades, which makes the robot more efficient than a human trader. Of course, these points could be made for any other fully automatic trading software. Here are a few of the system’s features:

  • Ability to see your account transactions from the “history menu”, including your profit and any performance fees that have been applied
  • Account statistics and analysis is offered
  • Works with the MetaTrader 4 platform
  • Losing trades are protected by AutoTrader and each trade uses a stop loss
  • Does not use leverage; only trades with your actual funds and those of the company
  • 24/7 customer support

Developers don’t spend a lot of time explaining how the robot trades or what contributes to its decisions, however, traders are given control with the “history menu” where they can review all of their trading results. Still, it would be nice to know more about the algorithms that are being used.

Service Cost

Traders can choose from several different packages, each of which requires a different deposit minimum, trade for a different amount of time, offer a different share in the profit, and charge a different performance fee. Here are a handful of options from the website:

The TRIAL package requires a $1K – $5K deposit, trades for 30 days, provides a 40% share in your trading profits, and charges a 60% performance fee.

The MONEYMAKER package requires a $10K – $50K deposit, trades for 270 days, provides a 65% share in your trading profits and charges a 35% performance fee.

The VIP package requires a $100K+ deposit, trades for 270 days, provides an 85% share in your trading profits, and charges a 15% performance fee.

A few other packages are available, including advanced compound and no lock versions. According to the website, the developers of RoFX actually guarantee coverage of any losses that are incurred on behalf of the robot thanks to their “reserve fund”. Also, note that withdrawals are free, and traders are compensated for any charges that do apply.

Conclusion

RoFX was created to provide an automated trading solution to common trading problems, such as lack of experience and the downfalls of human emotions when it comes to trading decisions. The system uses a stop loss feature on every trade, along with promising to cover any losses through a special fund that has been set aside. There are several different packages to choose from, which can honestly become a little confusing if you aren’t used to dealing with this sort of thing.

On the bright side, the robot takes its profit from a predetermined percentage of your trading profits, rather than requiring a large fee upfront. You can even purchase the TRIAL package to test it out for 30 days if you’re on the fence about making a larger purchase. We were a little disappointed that developers didn’t spend more time talking about this robot’s strategy, however, user reviews seem to point to this being a legitimate system that is profitable, so it is seemingly worth investing in, even if you decide to start with a smaller package.

RoFX can be found at the following web address: https://rofx.net

Categories
Forex Market Analysis

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

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

Economic Events to Watch Today  

     

 


EUR/USD – Daily Analysis

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

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

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

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

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

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

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

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

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

Daily Technical Levels

Support Pivot Resistance
1.1802 1.1854 1.1915
1.1740 1.1968
1.1688 1.2029

EUR/USD– Trading Tip

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


GBP/USD – Daily Analysis

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

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

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

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

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

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

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

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

Daily Technical Levels

Support Pivot Resistance
1.3060 1.3111 1.3166
1.3005 1.3217
1.2954 1.3271

GBP/USD– Trading Tip

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


USD/JPY – Daily Analysis

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

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

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

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

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

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

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

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

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

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

Daily Technical Levels

Support Pivot Resistance
105.3100 105.6000 105.8800
105.0300 106.1700
104.7400 106.4500

USD/JPY – Trading Tips

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

Categories
Forex Market Analysis

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

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

Economic Events to Watch Today  

    

 


EUR/USD – Daily Analysis

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

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

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

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

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

Daily Technical Levels

Support Pivot Resistance
1.1707 1.1752 1.1808
1.1651 1.1853
1.1605 1.1909

EUR/USD– Trading Tip

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


GBP/USD – Daily Analysis

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

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

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

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

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

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

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

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

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

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

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

Daily Technical Levels

Support Pivot Resistance
1.2863 1.2908 1.2978
1.2792 1.3024
1.2747 1.3094

GBP/USD– Trading Tip

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


USD/JPY – Daily Analysis

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

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

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

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

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

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

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

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

Daily Technical Levels

Support Pivot Resistance
104.80 105.25 105.55
104.50 106.00
104.05 106.30

USD/JPY – Trading Tips

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

Categories
Forex Market Analysis

US Dollar Index – Technical Overview

The US Dollar Index (DXY) jumps on Thursday trading session after the FED’s policymakers decided to keep unchanged the rate at 0.25%

Market Sentiment Overview

In its weekly chart, the US Dollar Index exposes a downward movement with an accelerated bearish momentum that brought it to decline for the sixth week in a row, falling to its lowest level since mid-June 2018 when the DXY found support at 93.19.

 

The price action observed in the 52-week high and low range places DXY in the strong bearish zone. This market context leads us to expect more declines in the long-term. Simultaneously, in the short-term, we could see a limited recovery, which could find resistance at the 95.67 zone.

From an institutional activity perspective, the net positioning informed by the COT report released by the CFTC last Friday, reveals that speculative traders (green line) continue favoring a bearish-side positioning. 

In consequence, the long-term market sentiment for the US Dollar index remains bearish. At the same time, a short-term recovery could signify only a retracement of the primary bearish trend.

Elliott Wave Outlook

The short-term Elliott wave perspective for DXY illustrated in its 4-hour chart reveals the advance in a bearish trend that began on the last March 19th high at 102.99. Once the Greenback found fresh sellers, the bearish market participants took the price down in an incomplete descending sequence.

In the figure, we observe the US Dollar index moving in an incomplete wave ((c)) or ((iii)) of Minute degree labeled in black. At the same time, the price advances in its wave iii of Subminuette degree identified in green, this move belongs to the fifth wave of Minuette degree labeled in blue, which began on June 30th when the price made a lower high at 97.80.

Although the third wave in green touched the bearish target area located in the blue box and started to bounce, there is no evidence to support the end of the bearish cycle. Neither does the bullish divergence observed on the RSI oscillator bring us a signal of exhaustion or reversal trend. On the other hand, considering the alternation principle and that the current bearish movement has strong downward momentum, the fourth wave in green should likely evolve as a sideways sequence, possibly as a triangle pattern. This technical formation could find resistance at 94.65, corresponding to the last March 09th low. Even, the move could extend until the 95.72 level, where the price might reverse towards the primary bearish trend.

In summary, the US Dollar index currently runs in a bearish five-wave sequence, which seems incomplete. There exist a possibility that the Greenback starts to develop its fourth wave of Subminuette degree identified in green, which could find resistance in the area between 94.65 and 95.72. The current bearish scenario will be valid as long as the price stays moving below 96.37.

 

Categories
Forex Market Analysis

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

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

Economic Events to Watch Today  

    


EUR/USD – Daily Analysis

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

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

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

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

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

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

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

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

Daily Technical Levels

Support Pivot Resistance
1.17 1.18 1.18
1.17 1.19
1.16 1.19

 

EUR/USD– Trading Tip

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


GBP/USD – Daily Analysis

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

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

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

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

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

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

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

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

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

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

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

Daily Technical Levels

Support Pivot Resistance
1.2863 1.2908 1.2978
1.2792 1.3024
1.2747 1.3094

GBP/USD– Trading Tip

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


USD/JPY – Daily Analysis

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

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

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

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

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

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

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

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

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

Daily Technical Levels

Support Pivot Resistance
104.80 105.25 105.55
104.50 106.00
104.05 106.30

USD/JPY – Trading Tips

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

Categories
Forex Trading Platforms

Overview of the TradeStation Forex Trading Platform

With many popular trading platform markets on the market, like MetaTrader 4 (MT4) and MetaTrader 5 (MT5), Trade Station brings its own creation to the mix, known as TradeStation. You can download the TradeStation platform on your desktop, use mobile apps for iOS and Android devices, or access the platform through your internet browser for the ultimate accessibility. Here are some of the platform’s most impressive features:

  • Work-optimized interface.
  • New update process that provides seamless updates.
  • 99.999% uptime.
  • Access to stocks, options, futures, and cryptocurrencies.
  • Advanced tools that allow one to customize and test trading strategies before entering them on a live account using Simulated Trading Mode.
  • Market-scanning tools.
  • Customizable charting tools.
  • More than 12 built-in apps + a TradingApp store that offers hundreds of options, including many free choices.
  • Scan for trading opportunities in real-time using the platform’s RadarScreen®, which continually monitors and ranks up to 1,000 symbols in real-time.
  • The Matrix trading tool combines market depth, advanced order-entry tool, and a precise order tracking system into one convenient window.
  • Visualize the market in a new way using the platform’s OptionStation Pro® tool.

If you don’t make a $2,000 deposit, then all of these options cannot be accessed for free. Any trade that is placed using the desktop application will be charged a $10 fee, or $1.40 surcharge per contract will apply for futures trades. Other fees may apply unless you use the broker’s TS Select package.

TradeStation Brokerage

The TradeStation platform was created by TradeStation, a powerful online broker that offers investment choices in stocks, options, futures, and even cryptocurrency options. Here are a few important facts about this broker:

  • $0 commissions on stocks & ETFs.
  • Different account options for no minimum entry deposit or $2,000 for the TS Select.
  • Charges extra fees on trades if the TS Select package isn’t being used.
  • Charges service fees, market data fees, premium service fees, and other fees.

Before deciding, you’ll want to check out the broker’s website for yourself to access all of the necessary information you’ll need to know before opening an account.

The Bottom Line

There’s no denying the fact that TradeStation has created an innovative trading platform with unique tools and features you won’t find elsewhere. This makes their creation stand out from the crowd, thanks to its resourcefulness and convenience. On the downside, this broker does tack on several extra charges, like service fees and market data fees, along with fees of $1.40 or $10 per trade if you aren’t using the TS Select package when trading. Before choosing this broker, you’ll want to break down all of the fees and seriously consider choosing the TS Select option with a $2,000 deposit to avoid extra unnecessary fees. The TradeStation platform is a solid option that only loses points with us under the shadow of its broker’s excessive hidden fees.

Categories
Forex Market Analysis

Daily F.X. Analysis, July 29 – Top Trade Setups In Forex – FOMC in Focus! 

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

Economic Events to Watch Today  

    


EUR/USD – Daily Analysis

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

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

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

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

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

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

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

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

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

Daily Technical Levels

Support Pivot Resistance
1.1686 1.1730 1.1762
1.1654 1.1806
1.1610 1.1837

EUR/USD– Trading Tip

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

GBP/USD – Daily Analysis

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

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

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

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

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

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

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

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

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


Daily Technical Levels

Support Pivot Resistance
1.2863 1.2908 1.2978
1.2792 1.3024
1.2747 1.3094

GBP/USD– Trading Tip

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

USD/JPY – Daily Analysis

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

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

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

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

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

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

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


Daily Technical Levels

Support Pivot Resistance
104.80 105.25 105.55
104.50 106.00
104.05 106.30

 

USD/JPY – Trading Tips

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

Categories
Forex Market Analysis

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

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

Economic Events to Watch Today  

    

 


EUR/USD – Daily Analysis

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

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

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

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

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

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

Daily Technical Levels

Support Resistance

1.1684     1.1816

1.1601     1.1865

1.1552     1.1948

Pivot Point: 1.1733

EUR/USD– Trading Tip

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


GBP/USD – Daily Analysis

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

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

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

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

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

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

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

Daily Technical Levels

Support Resistance

1.2807     1.2930

1.2732     1.2978

1.2684     1.3053

Pivot Point: 1.2855

GBP/USD– Trading Tip

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


USD/JPY – Daily Analysis

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

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

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

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

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

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

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

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

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

Daily Technical Levels

Support Resistance

104.91     106.01

104.47     106.65

103.82     107.10

Pivot Point: 105.56

USD/JPY – Trading Tips

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

Categories
Forex Market Analysis

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

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

Economic Events to Watch Today  



    


EUR/USD – Daily Analysis

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

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

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

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

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

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

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

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

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

Daily Technical Levels

Support Resistance

1.1640     1.1659

1.1629     1.1667

1.1621     1.1678

Pivot point: 1.1648

EUR/USD– Trading Tip

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


GBP/USD – Daily Analysis

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

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

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

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

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

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

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

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

Daily Technical Levels

Support Resistance

1.2782      1.2803

1.2771      1.2813

1.2762      1.2824

Pivot point:1.2792

GBP/USD– Trading Tip

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


USD/JPY – Daily Analysis

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

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

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

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

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

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

Daily Technical Levels

Support Resistance

105.85     106.19

105.70     106.36

105.52     106.52

Pivot Point: 106.03

 USD/JPY – Trading Tips

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

Categories
Forex Market Analysis

Daily F.X. Analysis, July 24 – Top Trade Setups In Forex – PMI Figures In Highlights!  

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

Economic Events to Watch Today  

 

 


EUR/USD – Daily Analysis

The EUR/USD pair was closed at 1.15969 after placing a high of 1.16267 and a low of 1.15401. Overall the movement of the EUR/USD pair remained bullish throughout the day. The EUR/USD pair continued its bullish streak for the 5th consecutive day on Thursday. They rose above 1.1600 level amid E.U. Summit’s success & broad-based U.S. dollar weakness, in the wake of increasing coronavirus cases in the U.S.. However, the gains were limited because of rising safe-haven appeal after the tensions between the U.S. & China escalated over consulate issues.

The Euro continued to benefit from the E.U.’s agreement on a recovery fund worth 750 euro billion. Investors were stocking into Italian bonds as the Eurozone’s third-largest economy was set to benefit from the funds. The safe-haven German bonds also cheered inflows despite potential competition from the upcoming issuance of the European Commission’s mutual debt.

Besides this, the U.S. dollar struggled to gain traction and failed to receive risk-averse inflows. U.S. jobless claims from last week came in as disappointed with an increase to above 1.4M. The hopes for quick U.S. economic recovery vanished and weighed on the U.S. dollar that ultimately raised EUR/USD prices.

The U.S. Dollar Index that measures the U.S. dollar value against the basket of six currencies was down 0.1% near 94.934 after hitting its lowest since March 9. This situarion also helped in the upward trend of the EUR/USD pair on Thursday. However, the positive news related to coronavirus vaccine countered with the headlines of mounting cases and coronavirus-related deaths in America. The U.S. coronavirus cases reached 4 million on Thursday with over 2600 new cases average, the world’s highest rate. The news about vaccine development from all over the world was raising optimism around the market. As earlier this week, Russia claimed that its first vaccine against the coronavirus was ready as two groups of volunteers completed clinical trials with results showing that all of them build up immunity.

On the other hand, Oxford University’s vaccine and China military vaccine also remained under highlights this week. All the vaccine news in the market, though, helped EUR/USD pair but were also overshadowed by the rising number of coronavirus globally.

Meanwhile, the tensions between the U.S. & China escalated after the U.S. ordered to close its consulate in Houston, Texas, on stealing intellectual property. The tensions between the world’s two largest economies escalated and hopes for a halt of the US-China phase one trade deal emerged.

This raised the safe-haven demand and limited the additional gains in EUR/USD pair on Thursday. Meanwhile, the German Gfk Consumer Climate was released on the data front at 11:00 GMT, which came in as -0.3 against the expectations of -4.6 in July and supported Euro, which ultimately added in the EUR/USD pair.

Daily Technical Levels

Support Resistance

1.1548      1.1637

1.1500     1.1676

1.1460     1.1725

Pivot point: 1.1588

EUR/USD– Trading Tip

The EUR/USD has been trading in a bullish channel, which is providing resistance at 1.1629 level. At the moment, the EUR/USD pair is trading at 1.1609 level, and the continuation of a bullish trend can lead to its prices towards 1.1625 level. Further extension of a bullish trend can lead EUR/USD towards 1.1690 level upon the bullish breakout of 1.1625. The pair is holding above 50 EMA that supports a bullish bias. Today we should consider taking buying trades over 1.1565 level.

 


GBP/USD – Daily Analysis

The GBP/USD pair was closed at 1.27402 after placing a high of 1.27599 and a low of 1.26727. Overall the movement of GBP/USD pair remained flat yet slightly bullish throughout the day. The GBP/USD pair maintained its bullish streak for the 5th consecutive session on Thursday, supported by the weaker U.S. dollar across the board and negative Brexit hopes. However, the pair dropped heavily before posting gains on Thursday, and that fallout was because of the downbeat comments from the MPC member of Bank of England.

The U.S. Dollar Index fell below 95 levels and reached 94.6 level on Thursday, its lowest since March. The greenback’s massive sell-off was further supported by the poor than expected jobless claims data on Thursday. At 17:30 GMT, the Unemployment Claims form the U.S. increased to 1.416M against the projected 1.3M and weighed on the U.S. dollar. The rise in the number of jobless claims resulted from the increasing number of virus cases from the U.S.

The U.S. coronavirus cases extended to 4 million on Thursday with over 2600 new cases average, the highest rate in the world while the death toll in the U.S. reached 143,000. The weak U.S. dollar gave a push to GBP/USD pair prices on Thursday towards higher levels.

On Brexit front, the latest Brexit talks failed to provide any progress in negotiating and provided negative results instead as the U.K. press reported that the U.K. could be willing to leave the E.U. without a deal.

Supporting the statement, E.U.’s top negotiator Michel Barnier also said that a Brexit deal by the end of 2020 was highly unlikely. These statements weighed on the Cable and its pairs like GBP/USD pair that showed a sudden fall in Thursday prices.

Meanwhile, the local nation’s pandemic situation was also alarming as the U.K. government allowed to open Gyms and swimming pools and set the masks mandatory while getting service from takeaway restaurants. This made traders confused as gyms and pools could be more dangerous in spreading the virus.

Lastly, the interest rate setter of Bank of England, Jonathan Haskel, said that he was worried that Britain’s economic recovery from the coronavirus crisis could be slow. He added that the recovery would depend heavily on whether people felt confident to go out.

Haskel, who backed the BoE’s latest 100 billion pound expansion of asset purchases last month, also warned that unemployment could be worse than in the 2008-09 financial crisis. Haskel’s downbeat comments weighed on the Cable and caused the earlier losses of GBP/USD pair. However, the pair GBP/USD managed to end its day with a bullish candle as the dollar was also struggling.

Daily Technical Levels

Support Resistance

1.2689     1.2778

1.2636     1.2814

1.2600     1.2866

Pivot Point: 1.2725

GBP/USD– Trading Tip

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

 


USD/JPY – Daily Analysis

The USD/JPY pair was closed at 106.847 after placing a high of107.228 and a low of 106.709. Overall the movement of the USD/JPY pair remained bearish throughout the day. The U.S. dollar was weakened on Thursday with recovery gains in Europe despite heightened tensions between the U.S. and China.

The U.S. Dollar Index slipped at 94.6 level, which is the lowest level since March. The drop in the U.S. dollar was caused by the fears of slow economic recovery after a resurgence of infected cases in the U.S. and the improved risk sentiment of the market.

The risk-sentiment on Thursday was supported by the improved German Gfk consumer confidence, which suggested that Europe’s largest economy was on the way of its recovery. The confidence was improved after the 27 member states of the E.U. showed consensus on the E.U. stimulus package that will help the region rebuild from the pandemic’s damage.

The improved risk sentiment in the market pushed the EUR/USD pair prices on Thursday. However, risks sentiment remained under stress due to the escalated tensions between U.S. & China amid intellectual property theft. On Thursday, the U.S. ordered China to close its consulate in Houston and accused it of spying. Beijing called this move by the U.S. as “political provocation.”

Mike Pompeo, the U.S. Secretary of State, told that the decision was taken because China was stealing its intellectual property. China’s foreign ministry denounced the move and said that its embassy in Washington was receiving death threats.

The Chinese foreign ministry spokesman said that the reasons given by the U.S. for closing the consulate were unbelievably ridiculous. She urged the U.S. to reverse its erroneous decision, or china would react with firm countermeasures.

In response to China’s anger, the U.S. President Donald Trump provided hints for the closure of more Chinese consulates and fired the heat more. The rising fears of a dispute between the U.S. & China raised a safe-haven appeal. As in result, Japanese Yen gained strength, and the USD/JPY pair dropped.

On the data front, the Japan market was off due to holiday, and the U.S. released its jobless claims for the last week at 17:30 GMT. The data exceeded the anticipation of 1.3M and came in as 1.416 M; the rise in data means that the U.S. economy has a long way to go before starting to recover. This weighed heavily on the U.S. dollar, and hence, the USD/JPY pair declined further.

Daily Technical Levels

Support Resistance

106.64     107.17

106.41     107.47

106.11     107.71

Pivot point: 106.94

 USD/JPY – Trading Tips

The forex market shows some serious selling trend in the USD/JPY as the pair fell to 106.200 while writing this update. The USD/JPY may find support around 106.850 level, which marks the double bottom support on 4 hours timeframe. Boosted safe-haven demand can also trigger more selling until 105.950 and 105.130 level. The RSI and MACD are also supporting selling bias while the resistance will stay at 106.600 level. Let’s consider selling below 106.450 level today. Good luck!

 

Categories
Forex Brokers

Alpha Beta FX (ABFX) Review

AlphaBeta FX (or, in short, ABFX) was founded in 2009. Their first office was based out of India, but this broker quickly expanded and operated as the first market-making firm to service the greater Asian region. ABFX has a physical presence in 7 different countries, mainly thanks to its technologically enhanced experience, precise execution methods, and advantageous trading conditions.

In this review, we will cover the parts that matter most to traders, including ABFX’s spreads, leverage levels, resources, bonuses, and much more. What does this broker have to offer? What are the pros and cons of opening an account? Read this article and find out.

Account Types

Traders can choose between 6 account types that ABFX offers. One of the main positive aspects of this is that you can choose the portfolio that best suits your strategy, especially since most of them have a relatively small minimum deposit requirement. Generally speaking, ABFX’s accounts offer a tradeoff between spreads and commissions.

Micro Account:
Minimum Deposit: $5
Spreads: From 1.9 pips
Commission: $0

Standard Account:
Minimum Deposit: $100
Spreads: From 1.4 pips
Commission: $0

Zero Spread Account:
Minimum Deposit: $1,000
Spreads: From 0 pips
Commission: $10 per lot

Alpha ECN Account:
Minimum Deposit: $1,000
Spreads: From 0.5 pips
Commission: $5 per lot

Alpha Pro Account:
Minimum Deposit: $15,000
Spreads: From 0.1 pips
Commission: $5 per lot

Alpha Custom Account:
Minimum Deposit: $1,000
Spreads: From 0 pips
Commission: NA

As we can see above, the accounts that have no spread charge or commissions. Alpha Zero Spread, from its name, has a 0-pip difference between the bid and ask prices. However, traders do incur a $10 commission on each lot that they trade. Alpha ECN and Alpha Pro have very tight spreads at 0.5 pips and 0.1 pips, respectively. The $5 per lot commission for both of them is lower than the Zero Spread Account. Micro and Standard account holders do have a relatively wider spread (although it is still much lower than what other brokers offer), but you pay no commission fees.

In essence, if you are a new trader or have a small amount of capital, the Micro and Standard might be the most suitable options. Although they have a wider spread than the rest, the associated costs are minimized when you open smaller positions. In addition, not paying commissions gives you time to test your strategy and enter/exit trades without incurring too many fees.

If you are a more experienced trader or want to invest a large amount of capital, the Zero Spread, ECN, or Pro Account might suit you best. First, your profits will not be diminished due to tight or nonexistent spreads. This is especially useful for those who rely on scalping strategies. Second, you have the option of choosing between a 0 spread and a higher commission or a minimal spread and discounted trading fees per lot. In other words, you enjoy flexibility in terms of the account’s features and how it fits in with your trading style.

Platforms

All 6 account types enable you to trade through either MetaTrader 5 (MT5) or cTrader. The platforms are available on both desktop and smartphone devices (Android and iOS alike). You can download them directly from ABFX’s website. MT5 is one of the most sophisticated and advanced platforms on the market. You can easily manage your account, access a large number of technical indicators, and create your own trading algorithm so that positions are opened/closed automatically when an instrument meets your desired conditions.

Other key features of MT5 include viewing up to 100 different charts on 1 screen, getting support in different languages, and customizing trade alerts or notifications. CTrader, on the other hand, is especially suitable for those who rely on scalping strategies and intra-day activity. Mainly, this is thanks to the platform’s speedy order execution process, which usually happens within milliseconds. Just as importantly, cTrader’s custom support services are available in 16 different languages. The platform can be downloaded on desktop and smartphone devices.

Leverage

As is the case with many other brokers, ABFX’s maximum leverage goes down as you deposit more funds into the account. Micro and Standard have up to 1:1000 and 1:500 in leverage, respectively. This number is incredibly large and it is rare to find brokers that provide you with a leverage of 1:500, let alone 1:1000. For the other account types, Zero Spread has 1:300 in leverage, ECN gets up to 1:200, while Alpha Pro traders have a maximum of 1:100. Alpha Custom, which has the same $1,000 required minimum deposit as Zero Spread, also provides you with up to 1:300 in leverage.

On face value, some traders might not appreciate seeing their permissible leverage go down as they deposit more funds. However, ABFX structured their buying power levels this way in order to minimize risk. To clarify, this allows traders to realize meaningful profits (even if they have a small account) without having to worry about losing all of their deposited funds in case things go against them. Otherwise, account holders could rapidly lose a lot of money when they use a lot of leverage and the markets swing downwards (or upwards if they are short-selling).

Trade Sizes

The minimum trade size, across the board, is 0.01 lots (1,000 in the base currency). The only exception is the Alpha Zero Spread Account, which has a minimum trade size of 0.1 lots (10,000 in the base currency).

-Margin Call: 20% (Alpha Pro) and 40% (all other accounts).
-Stop-Out: NA

While ABFX doesn’t have a specific stop-out point, their margin call policy encompasses that aspect. Firstly, when your balance goes below the margin call level (which depends on your account type), this broker will not allow you to open any new positions. They will also ask you to deposit additional funds and/or close losing trades in order to bring your balance above the required margin percentage. If a trader fails to do so or their position quickly loses more funds, ABFX will automatically liquidate all their current trades.

Trading Costs

ABFX offers very competitive and notably low trading costs. First, none of the accounts incur a swap fee on overnight positions. Almost all other brokers will charge you for doing this. Meanwhile, ABFX’s commissions are only paid by ECN ($5 per lot), Pro ($5 per lot), and Zero Spread ($10 per lot). The rest enjoy $0 commissions. Having said that, Micro and Standard are charged spread fees. Zero Spread doesn’t incur this cost. Similarly, the bid/ask price variations are minimal for Pro and ECN.

Assets

This broker’s account holders have access to almost 55 different forex pairs. Furthermore, ABFX allows you to trade cryptocurrencies, namely Bitcoin, Bitcoin Cash, Dash, Ethereum, and Litecoin. Digital currencies have up to 5:1 in leverage. Other than that, this broker offers commodities, indexes, and metals, which are exchanged as CFD contracts.

Spreads

Zero Spread account holders have a $0 difference between the bid and ask prices. The Pro Account’s spread is only 0.1 pips, while ECN’s is 0.5 pips. Micro and Standard have them at 1.9 and 1.4 pips, respectively. These numbers are low when compared to the general brokerage market. However, since AFBX offers floating spreads, they are subject to change from one situation to another. More specifically, the gap between the bid an ask prices could become undesirably large when markets are volatile in a certain country or on a global level.

Minimum Deposit

The minimum funding requirement is only $5 and $100 for the Micro and Standard Account, respectively. It is $1,000 for each of the Zero Spread, Alpha ECN, and Alpha Custom types. To open an Alpha Pro Account, however, traders need a minimum of $15,000.

Deposit Methods & Costs

Another incredibly advantageous feature that ABFX has is that they don’t charge any transfer fees on any of their various deposit and withdrawal methods, alike. Across the board, the minimum amount that you can transfer per transaction is only $5. This broker accepts several credit/debit cards, including Visa, MasterCard, and China Union Pay. The maximum amount that you can transfer in a single transaction is $50,000 (MasterCard and China Union Pay) or $10,000 (Visa). Account-holders may also apply for a broker-issued Alpha MasterCard and use it to make withdrawals/deposits.

Another option is to fund your account via a bank wire transfer. Both the Alpha MasterCard and bank wires have a maximum deposit amount of $50,000 per transaction. When it comes to electronic payment methods, ABFX works with Neteller, Skrill, and WebMoney. The broker’s website doesn’t specify how long it takes for deposits to go through, apart from bank wire transfers (which are processed within 2 to 4 business days). Nevertheless, deposits via Fasa Pay, Money Polo, OK Pay, Perfect Money, and Solid Trust Pay are instant. All deposits/withdrawals can be made in the US Dollar, Australian Dollar, British Pound, Euro, Japanese Yen, and Swiss Franc.

Withdrawal Methods & Costs

All of the methods above can be used to withdraw money from your ABFX account. Outbound transfers are also free.

Withdrawal Processing & Wait Time

The same processing times apply to withdrawals, as well. That is to say: Bank wires take 2 to 4 business days and electronic wallet transfers (apart from Neteller, Skrill, and WebMoney) are instantly processed. ABFX’s website doesn’t mention how long it takes for MasterCard, Visa, China Union Pay, Neteller, Skrill, and Web Money withdrawals to go through.

Bonuses & Promotions

ABFX is running several promotional offers. First is their cash-back promotion, which is available for 6 months after you open an account. For every trade you make, ABFX will reward you with cash. In a way, they are paying you the commissions, which is great. How much you get will depend on your deposit and where it falls under 1 of 5 levels.

Level 1:
Account Balance: $1 to $15,000
Rebate Cash-Cack: $2 per closed lot

Level 2:
Account Balance: $15,001 to $30,000
Rebate Cash Back: $3 per closed lot

Level 3:
Account Balance: $30,001 to $60,000
Rebate Cash Back: $4 per closed lot

Level 4:
Account Balance: $60,001 to $120,000
Rebate Cash Back: $5 per closed lot

Level 5:
Account Balance: $120,001+
Rebate Cash Back: $5 per closed lot

The broker will deposit these rebate amounts each Monday into your account. However, the maximum payouts per transaction are $500, $1,500, $3,000, $5,000, and $10,000 for Level 1, 2, 3, 4, and 5, respectively. Equally as important, there is another cash back bonus offered by ABFX. If you refer another trader and they open an account, you would receive a 10% bonus of whatever your referral’s initial deposit is. For example, if they deposit $2,000, you get $200. However, the minimum deposit that your friend or family member has to make is $1,000. Otherwise, you aren’t eligible for this bonus.

ABFX also offers a rewards program, where you earn a certain number of points every time you make a trade, deposit money, have a referral open an account, and engage in other activities. The more points that you get, the more rewards and features that you can access, such as gift cards, participation in weekly contests, and support from a personal account manager. Lastly, ABFX sends its clients free branded merchandise, including shirts, coffee mugs, calendars, and more.

Educational & Trading Tools

This broker’s educational and practical services fall under 3 categories: Education, events, and automated trading. First, the educational videos walk you through every detail related to the forex market. In fact, they are expansive enough to even benefit experienced traders who want to enhance their strategy and incorporate new methods. The initial videos cover the process of creating a trading plan, managing risk, controlling psychological impulses, and other basics. After that, each video is specifically dedicated to a certain technical indicator or chart pattern. ABFX’s other educational content includes brief written lessons (broken up into 4 chapters) and a glossary that defines common forex concepts.

The automated trading service is mostly for account holders who prefer to code their own robot, which would buy/sell currency pairs if the price and volume levels meet certain algorithmic conditions. The offerings include an MQL programming system (to create the said algorithms) and enhanced software that supports it. When it comes to events, ABFX hosts webinars and seminars. Lastly, this broker provides account holders with a blog about the forex markets, an economic calendar, three calculators (Fibo, Pivot Point, and Risk Percentage Calculator).

Customer Service

Remarkably enough, this broker serves account holders out of 7 different office locations. Each of them has its own phone number, email, and physical address. ABFX is present in Bangalore (India), Beachmont (St. Vincent and Grenadines), Dubai, London, Hong Kong, Kuala Lumpur (Malaysia), and Vake (Georgia).

Phone: +44-2036958896 (London), +971-43306363 (Dubai), +852-58085566 (Hong Kong)

Email: [email protected] (London), [email protected] (Dubai), [email protected] (Hong Kong)

This broker’s customer support staff speak multiple languages and local offices can communicate with traders in the home country or region’s language. You may also get in touch with them via Skype, although this feature is only available through firms in certain cities. For the full list of ABFX’s contact information, traders can look at the broker’s website to find their local office’s email, phone number, Skype, and physical address.

Demo Account

A demo portfolio is perfect for traders who want to practice trading with paper funds before putting their real money on the line. The same applies to account holders who are transitioning from one trading platform to another since each one has its own order types and methods of calculating the returns on investment. Demo accounts that you open through the platforms that ABFX works with (MT5, for instance) are exposed to live market prices and real-time trading conditions, which enhances their practical value.

Countries Accepted

ABFX’s is a formally registered ‘International Broker Company’ in St. Vincent & the Grenadines. While their organizational structure allows them to serve traders from all around the world, those who are located in the United States and Japan cannot open an account with ABFX. This is mainly due to local restrictions and regulations that are related to CFDs and other financial assets.

Conclusion

To summarize this broker’s offerings and services, here are the key advantages that ABFX’s account holders enjoy: Flexible deposit requirements, tight spreads, little to no commissions (with a few exceptions), various transfer methods, local support, and an expanded array of trading tools. On the downside, nonetheless, ABFX doesn’t serve traders in the United States or Japan. The broker also lowers your leverage when you deposit additional funds and some of their withdrawal/deposit methods don’t have a defined processing time. Having said all that, every brokerage firm has its own pros and cons. What makes ABFX unique is that its flexible offerings allow traders to pick the option that aligns with their preferences the most.

For example, two people had $1,000 each and one of them is a frequent intraday trader while the other relies on leverage and scalping strategies. The frequent trader would want to minimize their commissions. They can do so by opening a Micro or Standard Account (if they are okay with a spread that starts at 1.4 pips) or an ECN type (if they can afford a low commission in exchange for a much tighter spread of 0.5 pips). The scalper, on the other hand, would open a Zero Spread Account, especially because the bid/ask price difference would impact their returns, even more so than the $10 commission. Above all else, both of these traders may get started with ABFX and open the account type that they prefer for the same $1,000 deposit or less. The only exception is the Alpha Pro portfolio and its $15,000 minimum funding requirement.

Which account type suits your strategy and trading methods best? Do you prefer the nonexistent commissions or a low spread? How much money can you deposit? The best part about ABFX is that they will most likely provide you with what you need, regardless of how you answered any of these 3 questions. In short, this broker is truly inclusive and trader-oriented.

Categories
Forex Market Analysis

Daily F.X. Analysis, July 23 – Top Trade Setups In Forex – U.S. Unemployment Claims Ahead! 

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

Economic Events to Watch Today  

   

 


EUR/USD – Daily Analysis

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

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

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

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

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

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

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

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

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

Daily Technical Levels

Support Resistance

1.1454     1.1572

1.1379     1.1615

1.1335     1.1690

Pivot point: 1.1497

EUR/USD– Trading Tip

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


GBP/USD – Daily Analysis

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

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

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

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

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

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

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

Daily Technical Levels

Support Resistance

1.2664     1.2782

1.2597     1.2835

1.2545     1.2901

Pivot Point: 1.2716

GBP/USD– Trading Tip

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


USD/JPY – Daily Analysis

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

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

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

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

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

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

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

Daily Technical Levels

Support Resistance

106.22     107.39  

106.47     107.63

106.81     107.97

Pivot point: 107.05

 USD/JPY – Trading Tips

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

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

Categories
Forex Service Review

Mr Top Bottom Non-Repainting Indicator Review

Mr Top Bottom is an indicator that was created in March 2019 by developer Mostafa Fouladi. Mr Top Bottom is a powerful no-paint indicator that draws arrows on Tops and Bottoms. It has too complicated calculations but is very simple to use. Each arrow has a specific impact value of 1 to 10. If the impact is greater it means that the signal is probably more reliable, because it is calculated on the basis of a larger oscillation.

Overview

Main features of Mr Top Bottom:

  • He doesn’t paint again.
  • Identify the best tops and bottoms.
  • Useful for Trend Trading and Swing Trading.
  • Works well in Up Trend Market, Down Trend and Non Trend Market.
  • It works on any symbol and in any time frame.
  • Gives tickets with the lowest risk.
  • Very simple and easy to use.
  • Send alerts, emails and Push notifications.

The indicator has a sensitivity parameter that helps the operator to make it compatible with its own type of trading. It also provides access to an ATR and power panel of currency.

Parameters of Mr Top Bottom:

-Maximum bars: Maximum candles for drawing arrows. This parameter will not change the results of the calculations. Simply reduce the calculation time.
Sensitivity: You can set the Sensitivity from A to F. A means the lowest Sensitivity and F means the highest. The best sensitivity will be represented by E.

-Signal type: If you put it in “Current bar”, it shows you the current signs of the candle and if you put it in “Confirmed bar” it shows the arrows after the candle closes.

Information panel and configuration:

-Show candle time: If true, the candle clock countdown timer will be displayed.

-Candle Time Color: To set the candle time text color.

-Display panel: If true, the panel will be displayed. Including the ATR panel and Currency Power.

-Display panel in Tester: If you want to test the indicator in Strategy Tester, set this parameter to false to increase the test speed.

-Moving panel on X-axis: Moving panel on X-axis of graph.

-Move the panel on the y-axis: Move the panel on the y-axis of the chart.

-Unique identification for drawing objects: If you want to attach the indicator more than once in a chart, you must change this parameter to a new character symbol such as $, $!, %, etc.

Service Cost

This robot cannot be bought, it is only available for rent on the MQL market, at a price of 40 USD for a month, or 160 USD for a year. The free demo version is also available, so you can test it and check if this tool can be useful in your trading.

Conclusion

In short, we are talking about a robot that tries to take advantage of trends, locating tops and bottoms. Apparently the EA gets good results, since there are several users who have highly valued this robot, there are no negative criticisms. Mr Top Bottom is a robot suitable for all types of traders, its operation is very simple and its fundamentals are easy to understand.

This Forex service can be found at the following web address: https://www.mql5.com/en/market/product/36398

Categories
Forex Service Review

New Stable Profit EA Review

New Stable Profit is a robot that works in real accounts since August 2017. 100% of the trades in this system are based on algorithmic trading. The negotiation is based on trend correction movements, positions are opened depending on the strength of the trend and the volumes of negotiation according to a formula that the developer has not revealed.

Overview

The sets of positions have a common benefit, which is based on the corrective movement statistics of this trading instrument. The developer comments that when important economic news is published, it is recommended to disconnect the advisor, provided that there are no open transactions so that the performance is higher. Commercial recommendations set forth that for every $500 deposit, the user opens a 0.01 lot position.

This version of the New Stable Profit robot is adapted for EURUSD trading and is traded within a time frame of 1H. It is in this time frame that the EA gets its best results. Two things we like about this robot are, it doesn’t use Martingale, and it doesn’t use coverings in its operation either. Leverage of 1:100 is recommended for optimal operation. This robot is one of the best we have analyzed, as we have mentioned, it works continuously since August 2017. It has real statistics that can be consulted in MQL5, and the returns are staggering.

The yield of this EA is of 607% since its beginning, having obtained the following annual returns:

  • 2017 (August. December): 78.32%.
  • 2018: 128.39%
  • 2019: 55.82%
  • 2020: (January – March): 11.69%

It is fantastic that since its inception, every year it has achieved positive returns, but the most fantastic thing is that no month has ended with negative returns. (The month that has won the least has been November 2019 with 1.38%).

Service Cost

Obviously, it is an excellent robot, and as such its price is not cheap. In the MQL marketplace, you find it for $1,250 USD, although we have found third-party pages that offer it for just under $1,000 USD.

Conclusion

There are several user reviews of this robot and all are positive, so we are looking at a highly recommended robot whenever you are willing to make the initial investment of its cost. It also has a free trial version to test it before possible purchase.

This Forex service can be found at the following web address: https://www.mql5.com/en/market/product/40388

Categories
Forex Service Review

MultyTrend PA Indicator Review

Multytrend PA is an indicator that was created in April 2019 by developer Mikhail Nazarenko. This indicator combines the principles of Price Action and a unique filtering algorithm with feedback for three moving averages. This allows you to know what are the pivot points and current trends in any time frame with a high probability of success in the trades you are pointing out. Multytrend PA is an update of the classic Trend PA indicator and can be used with the principle of the three Elder screens, but everything that is needed is shown in the same chart, which is easier for the user.

Overview

Line 1 is in fast motion, while line 2 is in the main action, and line 3 is a slow movement to determine the direction in opening orders. The coincidence of the trend in the three movements is indicated by the arrows of the indicator and reports an incipient trend in the indicated direction.

Characteristics of this indicator:

  • It has no delay and gives a notable advantage over the Moving Average standard.
  • Simple and intuitive graphical interface, the configuration is minimal.
  • Configuration for each customizable MA for your trading style.
  • Alerts are activated when trends coincide on all three lines.
  • Optimized code and minimal load on your computer processor.

Settings:

  • Line 1 filtering bars (0 – line 1) – the period to calculate line 1 in bars.
  • Line 2 filtering bars (0 – line 2) – the period to calculate line 2 in bars.
  • Line 3 filtering bars (0 – line 3) – the calculation period of line 3 in bars.
  • Filtering mode (false – high/low, true – close)

Pantalla:

  • Line 1 width – line thickness 1
  • Line 2 width – line thickness 2
  • Line 3 width – line thickness 3
  • Draw in history bars – draw the indicator in the specified number of bars in the chart

Trend alert options include:

-Alert – activate alert when trends coincide in 3 Movings Averages.

-Send mail – send an email if trends in 3 lines are the same.

-Send push notification – send a push message to your mobile when trends in 3 moving averages are the same

Conclusion

In summary, we are talking about an indicator that combines the action of price with a trend prediction based on the crosses of 3 moving averages. It seems to be a reasonably comprehensive indicator and may be engaging in its concept. Due to the fact that it has not been on the market for a long time, there are not many comments from users to verify the usefulness of this indicator, but the few comments that exist are positive.
If you want to buy this indicator, it is available on the MQL market at a price of 55 USD. You can also rent it annually for 34 USD, and try out its demo version to make a purchase decision once you have analyzed it and understood its operation well.

This Forex service can be found at the following web address: https://www.mql5.com/en/market/product/37831

Categories
Forex Service Review

Renaissance Android EA Review

Renaissance Android EA is a robot created in March 2020 by German developer Jaye Ricci Ademola Puncha. The author says that this sophisticated EA is based on his years of experience with statistical, technical, and quantitative analysis and is awarded with modular tools and options that will be well appreciated by any real professional trader. It specializes in EURUSD 4H, but in principle works on most high volume FX pairs.

Overview

This intelligent algorithm monitors the movement of prices, timing, open and close sail ratios, as well as other indicators that will be hidden within the secure confines of a database. Compare this information with historical data in order to determine the probabilities of future events. Based on these probabilities, it dynamically modifies the trend direction and trade volume always within the modular parameters.

What makes this EA better than others is the fusion of total automation and the simultaneous possibility of absolute human control. So, it looks more like an android, hence the name. With financial markets constantly changing, the interface provides the opportunity to derive benefits from anomalies by modifying selected parameters continuously. This is possible because the principles applied have been universal for decades, yes decades. The results of the tests coincide with the live results and this strategy has been very good for the author over many years.

Key advantages of Renaissance Android EA:

  • No martingale or grid.
  • Stop loss will always be used for capital protection.
  • Protection of intelligent reduction.
  • It’s easy to use.
  • It is highly adaptable due to variable settings.
  • Integrated mechanisms inspired by real trade.
  • Very good risk/reward ratio.
  • It works on most brokers.

Renaissance Android EA Requirements:

-Brokers with commissions and spreads as low as possible, as well as a good server ping, low latency so that orders are executed as fast as possible.

-Brokers with a GMT+2/ GMT+3 server time (saving days). This prevents inaccuracies and trading errors.

-For EA I always recommend VPS hosting services. This allows for 24/7 trading.

-Diversification of instruments, markets, and strategies.

Adjust risk accordingly when trading during:

– Major events (FOM, NFP, etc.)
– Extraordinary crises (COVID-19, natural disasters, wars, etc.)
– Weekend

The author will only sell 5 licenses. Once sold, this EA will disappear forever. This helps to stop the alpha decomposition of this strategy. Obviously, this EA license comes with email support, free periodic updates, and other materials, such as a brochure and configuration files for additional FX pairs and time frames on request.

Conclusion

We are talking about a very professional EA and within the reach of very few. It is a tool designed for professional traders or capital managers. The few comments there are from users who have tried the demo version are very good, but the price of the robot makes it only accessible to very few. The sale price of this EA on the MQL market is 30,000 euros, and it is not available for rent, only the demo version and the contact of the author is available for any doubts or questions you want to ask before purchasing it.

This Forex service can be found at the following web address: https://www.mql5.com/en/market/product/47307

Categories
Forex Service Review

PZ Wedges Forex Indicator Review

PZ Wedges is an indicator created in September 2017 by Arturo López Pérez. Arturo López Pérez is a private investor and speculator, software engineer, and founder of Point Zero Trading Solutions.

Overview

The basis of this indicator is that it finds wedges, which are continuation patterns identified by converging trends around a period of price consolidation. It signals the trades using a donchian break along with the break-up of the wedge formation. This is a very user-friendly indicator. With customizable colors and sizes. It implements breakout signals and implements alerts of all kinds. For optimal use and to be able to see wedges of all sizes, which can even overlap, you will have to load the indicator several times in the table with different sizes, for example, 6, 12, 18, and 24.

Input parameters of this indicator:

  • Size: Refers to the size of the wedge patterns that are found.
  • Break up period: Donchian period to mark trade.
  • Max. History bars: Amount of bars passed to examine in the chart.
  • Color of bullish patterns: This parameter is self-explanatory.
  • Color of the bearish patterns: This parameter is self-explanatory.
  • Uninterrupted pattern color: This parameter is self-explanatory.
  • Line width: Size of pattern lines.
  • Color of bullish shoots: This is the color of the arrows to buy.
  • Color of bearish shoots: This is the color of the arrows to sell.
  • Arrow Size: This is the size of the arrows shown in the chart.
  • Custom Alert Name: Custom title for alerts raised in this chart.
  • Show alerts: Enable or disable screen alerts.
  • Email alerts: Enable or disable email alerts.
  • Push Alerts: Activate or disable push alerts.
  • Sound alerts: Enable or disable sound alerts.
  • Sound file: Sound file to play when a screen alert is activated.

Service Cost

If you want to try this indicator to get to know it better, a demo version is available in the MQL market indicators section. If you finally want to buy it, its selling price is 49 USD.

Conclusion

In summary, we talk about an indicator that is based on the search for a specific trend continuation pattern (wedges), and that warns us of its formation and alerts us for the decision to buy or sell a certain financial asset. We think it may be an interesting indicator to have as a complement to other indicators, for example, a trend indicator. Suitable for all types of traders, be it a beginner or someone who is more advanced. We haven’t found many comments from users who have already tried this indicator, and the few criticisms that exist are disparate, with both positive and negative feedback.

This Forex service can be found at the following web address: https://www.mql5.com/en/market/product/25264

Categories
Forex Service Review

Renko Trade Alarm Indicator Review

Renko Trade Alarm is an indicator that is designed to work on the graph with Renko and Mean Renko candles. This tool generates buying and selling signals on the chart and sends notifications to the user.

Overview

For proper operation, an offline table is required in which Renko Media candles are generated. In order to receive the “Scalp” signal, it is feasible to include more filters in the form of oscillators “Stochastic” and “MACD”.

Display of the signals:

-Swing – 123 Formations.

-Pattern – Double Bottom, Triple Bottom, Double Top, Triple Top, Formations 123 Reverse.

-Scalping – Periodic change in price direction, plus additional filters in the form of stochastic oscillators and MACD.

-Ichi – Signals that have passed the Ichimoku indicator filter.

One of the most common problems we have when having multiple Renko charts with different box sizes is that a trader could end up getting confused in the size of the Renko card box they are looking at. There are not many indicators that seem to want to consider this issue, which is where the Renko Business Assistant Indicator can be of great help. By adding this Renko Trading Assistant indicator to your Renko offline or Renko Median tables, you can show in real-time the size of the Renko card box as well as key investment points.

The Renko Trade Alarm indicator helps you especially if you have multiple Renko or Renko charts open. It might seem a little tedious to navigate between Renko’s different charts, as you will need to look at the Open/Close prices of the previous boxes to determine the size of the box you are using. With the Renko Trade Alarm indicator, with a quick look, the indicator will show you what Renko graphic is seeing.

Service Cost

The selling price of this tool is 30 USD, or you can also rent it for 10 USD per month.

Conclusion

In short, we are talking about a Renko indicator that can be confusing for beginner traders. For this reason, we recommend studying first what constitutes a universal Renko indicator to understand this tool better. There is a free trial version that we must try to know this indicator and the possibilities it has to enrich our trading or not. You can find it in the MQL market in the indicators section.

This Forex service can be found at the following web address: https://www.mql5.com/en/market/product/37572

Categories
Forex Service Review

Supertrend EA (Trend Trading EA) Review

Supertrend EA, a fully MT4 compatible robot, is an expert consultant developed for automated trading. Expert advisers are also called trade robots because they are responsible for managing operations on a fully automatic basis. If you’re using the trading robot, no human supervision will be required. However, the Expert Advisor you are going to use must be well tested in the market, in real-time, and the indicators must be optimized.

Overview

Supertrend EA is a trend robot that executes a trade when the trend changes, when a break occurs, when a correction occurs, and when pullback occurs.
The expert consultant alone won’t show anything on your chart. If you want the visual shape of your robot, you must attach an indicator that facilitates the company in a download file.

The parameters in which this expert advisor executes trades operations are basically two and are as follows:

-Change in the trend: If positions are opened, they will all be closed when the market trend changes.

-Stop Loss: This expert consultant uses the Supertrend indicator as a stop loss level.

Before you start trading in the live account with this expert advisor, it is advisable to use a demo account first. At first, it is advisable to learn to operate manually. When you feel confident about your trading strategy then only you should code that trading strategy in order to turn it into a robot. Generally, not all traders have the advantage of knowing how to code a system, and for that, there are robots like Supertrend EA. This expert advisor can be used in any period to trade any currency pair. It is not advisable to use this robot to trade other assets such as commodities, indices, or precious metals, as the EA is designed to be used in Forex.

The following features are included in the Basic version:

  • Reverse strategy
  • Max Open Operations
  • Directorate of Commerce
  • Order Comment
  • Filter of propagation
  • Administration of Money
  • Closing in the trend change
  • The pending order expires
  • Supertrend used as Stop loss

The following functions will only be available in the Pro version:

  • Trailing Stop
  • Break-Even
  • Candle Trail
  • ATR Trail
  • Time/day filter
  • Conclusion

Service Cost

This is one of the many tendential robots that exist. It can come to work well, and best of all, it has a basic free version. The Pro version that has the functions mentioned above has a price of 39.90 Swiss francs, which we consider a reasonable price.

Conclusion

We’ve checked third-party websites and found no negative reviews about this robot. So if you want to start in automated trading systems with a simple robot, this can be an excellent option.

This Forex service can be found at the following web address: https://quivofx.com/expert-advisor/supertrend-ea

Categories
Forex Service Review

Stable EX EUR/USD Expert Advisor Review

Stable Ex EA is a Forex trading robot that was created in March 2020 by German developer Vitalii Zakharuk. Vitalii Zakharuk is a prolific creator of automated trading tools and has many of them available on the MQL market.

Overview

Once the Stable Ex expert system is introduced, it works with the EURUSD currency pair and only with it. This system implemented the principle of five commands – that is, a maximum of five commands can be placed in one direction, after which the total position of the series must be closed by stops, either real or virtual. The trading system is designed to work separately with a series of purchase orders and separately with a series of sales orders, which makes the trading system sufficiently versatile. The expert passes all types of tests throughout history for the specified currency pair. In addition, the expert system is tested with several delay values and operates in a fully automatic mode. No adjustments are needed, use only the default settings.

The equilibrium point concept is used for a series of orders (total position), two independent systems to buy and sell. Including a built-in scalper technique with quick sails, it works like a scalper with sharp price movements. The integrated module for processing self-tuning indicators is trained specifically for EURUSD.

To test the trading system, first set all tester parameters as shown below. The test model can be either opening prices, and checkpoints or all ticks, or using real ticks. The trial period in the EURUSD pair and the H1 time frame is not limited, and you can test in the entire history of this pair.

Primary Benefits of Stable EX:

-Maximum 5 orders in one direction.

-Optimal indicators are selected.

-Adaptive risk management system and deposit protection system.

-The stops and also the final stops I work for a common position and not for a separate order, regardless of buying and selling.

Tips for Usage:

-Advisor Settings: Use the default settings.

-Symbol: EUR/USD.

-Term: H1.

-Brokers: Any brokers, spread and commission of up to 20 pips, leverage 1: 100, to be of low latency so that the transactions are executed as quickly as possible.

-Minimum deposit: 1000 USD nominal, the closer the nominal deposit the more the withdrawal will be declared.

The main parameters of the expert system:

  • Volume – the size of the initial batch, if we work safely.
  • At-risk – used to allow automatic batch determination depending on the tank.
  • Risk Percentage – the percentage of risk, relative to which the initial deposit.
  • MM risk – money management options.
  • Stop Loss – point loss (in points).
  • Take Profit – Take Profit (in points).
  • Grid passage – minimum grid passage (in points).
  • Additional parameters of the expert system:
  • Type of filling – the type of execution of the order by balance.
  • Lot decimal – batch accuracy (rounding to how many digits).
  • Parameters of the expert system constraints:
  • Min Stops Level – mandatory minimum distance level for stops (points).
  • Max Spread – the maximum extension to which a command can be opened.
  • Commission – The committee is listed in points (points).

Service Cost

Stable Ex EA is for sale on the MQL market at a price of 99 USD, and there is no option for rental versions.

Conclusion

In short, we find a robot of which the author speaks very well of him, but gives no information about the basis of his operation. So we recommend downloading the free demo version to try to figure out how it works and whether it is cost-effective or not. It is highly recommended to use a dedicated virtual server to avoid losing transactions that the robot does, otherwise, we should have the computer turned on 24/7. Because this tool has been on the market for a concise time, there are no opinions or criticisms from users who have been able to test the product and share their experience in the MQL community.

This Forex service can be found at the following web address: https://www.mql5.com/en/market/product/47022

Categories
Forex Service Review

Stochastic Ichimoku Cloud Indicator Review

This indicator indicates the stochastic crossing in the direction of the trend that is determined by the relative price position in the characteristic Ichimoku cloud.

Overview

The main features of Stochastic Ichimoku are as follows: 

-Flexible adjustments. Signals are filtered by bullish or bassist bars (parameter “BUY – only on bullish bar; parameter SELL – only on bear bar”).

-Stochastic crossing configuration levels (parameters “BUY-signal if Stochastic under this level” and “BUY-signal if Stochastic under this level”).

-Ability to use the Ichimoku cloud for higher time frames (parameter “Time frame of Ichimoku Cloud”).

Label in the top right corner will show you the direction of the trend:

-Up arrow indicates that the price is above the Ichimoku cloud;

-Down arrow indicates that the price is below the Ichimoku cloud;

-The price is in the cloud (plane: in this circumstance, the signal will not be generated).

The signal is activated not only when the bar is closed (signal formed), but also in the current bar that is not closed yet (signal likely). It has enough time to analyze the reality of the market and allows you to take time to make a decision and calculate trading parameters.

The indicator can generate an early exit signal from trade when the stochastic lines intersect inversely (against the trend). You can activate (ON) and deactivate (OFF) this option using a button in the bottom right corner of the chart (adjustable parameter). Activate this button only if you are in the market and want to close a trade according to the inverse crossing of stochastic. You can disable this chart button if this option is not required (“ON-OFF – Reverse signal button”=false).

In general, good results are obtained with the default parameters if an Ichimoku cloud time frame is set a level higher than the current one. For example, attach the indicator to a graph with М1, and set the cloud time frame (parameter “Timeframe of Ichimoku Cloud”) to М5. If a graph has a М30 time frame, set H1 as the cloud time frame, etc.

Parameters:

  • Period K – period to calculate the Stochastic %K line.
  • D Period – average period for calculating line %D.
  • Deceleration – value of slowdown.
  • BUY – Buy signal appears if Stochastic is below this level.
  • SELL – Sell signal appears if Stochastic is above this level.
  • BUY – A bullish bar only.
  • SELL – The bearish bar only.

Conclusion

In short, we are talking about a well-known indicator (Ichimoku) that generally gives good results. If you want one of the multiple indicators of Ichimoku that exist in the market, this can be an option to consider, since its price ($30 USD) is affordable, and the indicator accumulates good comments from its users. The indicator can be found in the MQL market, and you also have a free demo version.

This Forex service can be found at the following web address: https://www.mql5.com/en/market/product/9925

Categories
Forex Service Review

Stochastic Oscillator EA Review

The Stochastic Oscillator Indicator was created in the late 1950s by Dr. George Lane. The term stochastic means the point at which a current price is related to its price range over a period of time. The stochastic oscillator shows two lines (Main and Signal Line) and its support and resistance level. This indicator is included in Metatrader 4 and 5, and the default settings are K% 5, D% 3 Slow 3.

The stochastic indicator is a great tool to identify overbought and oversold conditions over a specific period. The stochastic oscillator is the preferred indicator for many traders when the price is trading in a range because the price itself is oscillating, leading to more reliable signals from the stochastic indicator.

Overview

The stochastic oscillator is a handy indicator when it comes to evaluating the moment or the trend force. The stochastic oscillator, and oscillators in general, are presented in an easy-to-understand manner with transparent buying and selling signals. However, it is likely that excess in these signals, without a deeper understanding of stochastic oscillators, will end in many doubts and frustration for the trader.

To avoid such frustration, new traders will need to have a solid understanding of the underlying mechanics of the stochastic oscillator seen concerning current market conditions.

A stochastic oscillator EA is a timing system that automatically calculates whether the price of a security is over-bought or over-priced over a specified period of time. The EA weighs the most recent price level substantially as a percentage of the (higher, lower) range over a defined period.

The stochastic oscillator EA has two moving lines that oscillate between two horizontal lines. The black line called %K and determined by a specific formula, at the same time as another red dotted line is also a three-period moving average of the %K line..It is concluded that the price is overbought when the two moving lines break above the upper horizontal line and are exceeded when broken below the lower horizontal line.

The oversold line represents price levels that fit the top 80% of the recent price range, over a defined period. Also, the oversold line represents price levels that fall within the bottom 20% of the current price range.

Also, the stochastic EA indicator provides excellent insight when programming inputs. When both lines are above the oversupply line ‘D’ (80), and the %K line crosses below the dotted line %D, a possible short input signal is considered and vice versa when the %K line crosses above the %D line (20).

Traders should not trade blindly based solely on over-purchase/oversold conditions. Traders should understand well the operation of this indicated then to know how the dynamics of the EA is.

FORMULA FOR THE STOCHASTIC OSCILLATOR 

The following calculation is presented for a stochastic indicator of 14 periods, but ultimately can be adapted to any desired time frame.

Calculation of %K:

%K = [(C = L14) / H14 -L14)] x 100

Where:

C = last closing price

L14 = Low minimum during period

H14 = Highest during the period

Calculation of %D:

%D = simple moving average of %K (the simple moving average of 3 periods is the most common)

Conclusion

Traders should understand where the stochastic oscillator stands out and where its defects lie to get the most out of the advisor. This is an ideal EA to combine with another trend EA. Like all Eas sold by Quivofx, these have reasonable prices in addition to a free basic version. The Advanced and Pro versions are priced at 29.90 and 39.90 Swiss francs, respectively.

PROS:

Clear input/output signals

Signals appear frequently (depending on time settings selected)

If trading against the trend, prices may remain over-bought/oversold for long periods

Available in most graphics packages

Conceptually easy to understand

CONS:

May cause false signals when used incorrectly

If trading against the trend, prices may remain over-bought/oversold for long periods

This Forex service can be found at the following web address: https://quivofx.com/expert-advisor/stochastic-oscillator-ea

Categories
Forex Market Analysis

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

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

Economic Events to Watch Today  

  

 


EUR/USD – Daily Analysis

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

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

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

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

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

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

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

Daily Technical Levels

Support Resistance

1.1454    1.1572

1.1379    1.1615

1.1335    1.1690

Pivot point: 1.1497

EUR/USD– Trading Tip

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


GBP/USD – Daily Analysis

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

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

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

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

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

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

Daily Technical Levels

Support Resistance

1.2664     1.2782

1.2597     1.2835

1.2545     1.2901

Pivot Point: 1.2716

GBP/USD– Trading Tip

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


USD/JPY – Daily Analysis

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

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

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

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

Daily Technical Levels

Support Resistance

106.99     107.51

106.74     107.78

106.47     108.03

Pivot point: 107.26

 USD/JPY – Trading Tips

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

Categories
Forex Service Review

TPA True Price Action MT4 Indicator Review

This indicator coded for the MetaTrader 4 and 5 platform belongs to the paid category and has a specific way of giving signals and trading use. The first version is published on the 3rd of July 2019, it is not a very old indicator but has received some attention. The developer is Janusz Trojca from Poland now under the team name of InvestSoft. This team has a total of 10 products with good ratings, some of them complement the TPA indicator for a complete trading system. As the name describes the indicator is based on the Price Action strategies known for the use of support and resistance lines. The authors developed a blog website investsoft.eu/ with several articles about the TPA indicator and how to use it in conjunction with others.

Overview

The page presenting the indicator on the MQL5 may look too complicated and probably will turn away customers looking for a simpler solution or just do not want to invest time learning how to interpret the signals given by the TPA indicator. The developer first wants to point out that TPA is not repainting and gives signals once the candle is closed. It can be used as the confirmation indicator but also as an exit. There are multiple ways a trader can use the signals. TPA is versatile when it comes to where it is used and on what timeframe. This means it is universal.

TPA is presented as a tool that is not the mainstream, thus avoiding the common techniques used unsuccessfully by the 90% of traders. These are characterized as misleading, most of the traders do not make a significant success if any, just because they are using the tools market makers know about and predict. However, the page does not say anything about the indicator’s exact strategy and formulas. The latest update is version 2.1 from November 2019 giving the indicator a cleaner code, the TAP line, and performance optimizations.

TPA indicator developers made a Telegram group chat for owners of the indicator where trading and other support are delivered to those that need it. Since the indicator is intended for those that know a bit about trading or for those that are willing to learn, it has the guide that is not short and could be harder to follow for some users. The demo is available and mentioned that even it could be tested in the Strategy Tester module of the MT4, the results do not count for the other factors traders implement when trading. Therefore, it is not just a plain signal following, the results in the simulation may not be valid.

In the blog article manual for the TPA indicator, we can see the scope of usage. It is essentially a trend following strategy using higher timeframe filters, price levels, risk management, and other measures outside the indicator function. The TAP line is added as the filter to counter small corrections that do not change the bigger underlying trend, it is a noise that should be filtered. The main idea is to follow the market makers and big trends they produce. 10 questions are designed for you to follow the logic of trading and using the TPA indicator.

According to them, the TPA line slope determines if the market is ranging and if there is a trend to follow. The higher timeframe is also important to analyze. Other steps are required too and involve subjective analysis of other signals, such as Fibonacci levels. The manual is also written in a hard to read English and not everyone can understand what is required. Therefore, this indicator is not for beginners. Many will be in doubt with the subjective interpretation of inconclusive TPA signals. There are some pictures as examples to see how the TPA line on 50 period acts as a rebound level, considered to be used by many market makers.

Service Cost

The indicator price is $198 for 5 activations or to rent for one month for $40. The developer states that the demo may not show the valid results in the Tester module but it does not mean trader cannot use and try the Demo without the Strategy Tester.

Conclusion

As the indicator is not explained very well and it requires some trading knowledge, it does not receive the popularity as some other indicators. The higher price is also a barrier for more indicator users. For those that understand and have used for this one after the demo trial, it is not a high price to pay. As for the rating, the TPA indicator has 4.5 stars out of 38 reviews. The review sample is high enough to have a representative image of user satisfaction. We have found only 2 users with a 1-star rating but did not disclose why the TPA is bad. The rest of user reviews that are not perfect state that TPA does not show the exit points. In our opinion, TPA has potential but requires a good amount of forward-testing and your own set of rules on how to interpret the signals. The support Telegram channel is a very good starting point if you decide to use this one, just do not expect to understand it very quickly if you are new to the scene.

This Forex service can be found at the following web address: https://www.mql5.com/en/market/product/39932

Categories
Forex Service Review

Scalping Max EA Review

Scalper Max is an Expert Advisor for the MetaTrader 4 platform designed to conduct scalping trading on major currency pairs. As per the developer’s words, it is not limited to one scalping method but more of them. It is fully automated and incorporates AI that has been updated. The latest version is 2.0 from 17th September 2019. The initial version is just 3 days older meaning the EA has not received updates except one. The developer of Scalper Max EA is Xuan Nguyen Thanh from Vietnam.

Overview

Scalper Max does not have a great introduction story, the MQL5 page describing this EA does not have a lot of content, especially not for the price. The intro states an AI that can learn and adapt to market conditions consisting of many algorithms. It can be used on many broker accounts with the commission or no commission and higher spreads. As usual, since scalper EAs require very good execution times and no slippage, the setup has to be with brokers able to deliver great conditions. Scalper Max does not use discouraged methods such as Martingale, Arbitrage, or Grid. Trades have to Take Profit and Stop Loss levels set and optimized by the EA.

It is not disclosed how the EA works and what the AI is exactly doing when calculating these levels. It is recommended to use the EA on GBP/USD, GBP/JPY, GBP/AUD, EUR/JPY, EUR/USD, USDJPY, USD/CHF, EUR/CHF, EUR/AUD, and NZD/USD on M1, M5 and M15 timeframes. There are two default optimized settings the developer has published in the comments section. They are optimized for commission or no-commission accounts. Brokers tested are Tickmill, ICMarkets, and NordFx.

Settings for Scalper Max are simple and in our opinion does not feature a lot. What you can change is set the Autolot management – risk-based trade size allocation set the minimum allowed spreads or slippage, maximum lot size per trade, and some cosmetic and appearance customization. Relative to the price of this EA, these features are not attractive. You cannot have a glimpse of what indicators are used, what logic, or what scalping method based on these settings.

The performance charts of Scalper Max are impressive, although we are used to seeing extreme results. Now the author did not use a real account for chart presentations, but on the Tickmill demo account. Based on the image, the EA produced a nice, steady-growing chart with a 483% gain. By looking at the winning percentage, it Is very close to coinflipping, 51% of trades won. The logical conclusion would be that this EA is great with Money Management but we do not know how the EA trades. The maximum drawdown is 8.1%.

On the MT4 Strategy Tester module, the EA showed different results. GBP/JPY pair was used and the winning percentage is 63.95%, much better than 51%. Maximal drawdown is an impressive 1.63%. Profit trades are at least double the size of losing trades meaning the EA cuts short trades that do not come in the right direction, not using the extreme Stop Loss levels as with some EAs and therefore also limiting the drawdown to just 1.63%. GBP/USD pair backtesting on M5 using the 99% precision modeling also shows similar results.

The maximal drawdown is even lower, 1.17%, 63% of winning trades, and the same good Money Management. Interestingly, GBP/AUD testing on M% timeframe shows just 51% winning trades but with similar gains as other pairs. The average consecutive wins number is the same as the average losses – 2. On the EUR/JPY, the success rate rises to 68.09% and this does not change the fact Scalper Max has a very good Money Management and manages to show only charts with consistent gains and no drops.

Service Cost

Now, the price of the Scalper Max is no less than $2500 to buy (6 activations) and $1800 to rent for a year. This extreme price has no presented arguments of the tech incorporated in this EA and no proven work behind it. The charts and what little content about the EA are showing are simply not enough. One could think this EA is fake but a demo is available so you can test it in various ways. Of course, price this high reflects on the EA popularity.

Conclusion

Scalper Max received bad ratings, based on 7 user reviews on the MQL5 Experts repository. The users complain about very different results than what is presented on the developer signal page and in the EA Overview. The main concern is the poor performance, some have changed brokers and tried different things just to see the same bad results. Some of the reviews are:

“Refund, this is a liar, this EA will not make you profit, only loss, he has no signal of real account number, every time you ask him, he will only hide”, or “For the month of using the adviser – only loss, wasted money, Alpari broker account ECN.Pro. I would like to return the money …”

There are also two perfect score reviews claiming good results.

In our opinion, this Scalper Max can be tested to confirm these results. Still, it should be noted that you could probably buy 10 automated software products for the price of this one, that has better ratings, testing, and performance. Given the fact that the developer also has one other product selling for $30,000, we can confirm this is not a serious proposition.

Categories
Forex Service Review

PipTick VWAP MT4 Indicator Review

PipTick VWAP for the MT4 platform is a special form of the Volume-Weighted Average Price indicator. One of the most used Moving Averages apart from the EMA or Exponential Moving Average is VWAP for its adaptability to recent market changes. Michael Jurnik from the Czech Republic is the developer of this tool, partner at PipTick. They have published 59 products, many of them not having much popularity or ratings.

Overview

The initial version of PipTick VWAP MT4 was released on 25th February 2015. It is an old indicator that has received just one review for that time. The latest update was on the 12th of May 2016 to version 1.3 where calculation accuracy has been improved and added some parameters for visuals. This indicator is also available for the MetaTrader 5 platform, both are in the paid category on the MQL5 market.

There are many ways you can use the VWAP and is a part of many trends following systems when combined with other tools. The specifics of this version is that it works in five modes. Moving mode sets the indicator to calculate as the Moving Average, while in Daily mode the VWAP is calculated from day start to the end, thus giving the traders daily range often used in trading. Weekly and Monthly do this for the selected periods and Session Time gives the ability to set a custom period for this calculation.

VWAP will be displayed as a band on the chart and thus it could be used as Bollinger Bands for reversals. Still, the best way to use the tool is for trend following and setting the Risk Management levels such as Take Profit and Stop Loss. There are 3 bands, each of them represents Standard Deviation on different sensitivity. If you combine other Moving Averages you may have a great trade exit system where the cross with the deviation line will signal precise trend exhaustion. The author suggests using the indicator with Price Action or Candle patterns.

The main features of PipTick VWAP are several calculation modes, first, second, and third standard deviation levels, customizable visuals, EA friendly, and is described as fast and reliable. There is also a demo video showing the indicator in action although not much can be concluded from it, it will just plug the lines and the channel and the rest can be used and combined in so many ways.

The settings panel will give you the ability to adjust the input and output parameters. Input parameters are Volume Method (to use real or tick Volume), VWAP mode, MA Period, colors for the lines, and visibility of all the lines for deviations, etc. Output parameters allow you to set the VWAP value, and bottom and top values for the first, second, and third standard deviations. These settings give enough freedom to test and adapt the indicator to the trader’s system and also opens the creativity.

Service Cost

The price of PipTick VWAP is $57 to buy and have 50 activations. Renting starts at $17 for one month and $37 for 3 months. A demo is available and it has been downloaded 959 times at the moment of this review. This shows some popularity but as the reviews and comments go, it Is very low.

Conclusion

PipTick VWAP for MT4 has received only one rating and it is not positive:

“This project seems to be stoped. It hasn’t been updated since 2016 and the developer doesn’t answer questions since 2018.”

The indicator consumes a large amount of CPU if the [Max bars in the chart] in the Options menu has a large value. I’ve proposed a simple solution, but it doesn’t respond, so I can’t use it and I’ve had to uninstall it.” Based on the comments section we have noted the developer did not notice user complains but plans to update the performance issues in version 1.4 soon. In our opinion, the price tag for this simple indicator is too high, not much is done here and this kind of indicator could be found on the internet for free, probably even on the MQL5 marketplace.

This Forex service can be found at the following web address: https://www.mql5.com/en/market/product/8187

Categories
Forex Service Review

MA Multi Moving Average Standard Indicator Review

MA Multi stands for Moving Average Multi Timeframe indicator that is useful in many ways and for many strategies. The developer of this indicator is Dmitriy Susloparov from Russia having 16 products offered on the MQL5 marketplace. None of them have received much attention and only MA Multi and one more indicator have ratings. Most of the indicators published are similar, they are basic indicators made multi-timeframe on a single chart. MA Multi also exists for the MetaTrader 5 platform. The first appearance on the MQL5 market is on the 3rd of May 2017 and updated on 31st, a few days later on request by one user. The developer responded quickly and made the additional option to turn off redrawing on closing each candle, updating the indicator to version 1.1.

Overview

MA Multi will work with any combination of timeframes on a chart, thus plotting several lines for each timeframe you turn on. As the Moving average has a multitude of uses, having a combination of default MT4 indicators, and this one can result in having a completely new indicator generating unique signals. It can even mean a whole new trading system. As you add channels, ATR, and other indicators on the same chart, technical analysis, and interpretation open a plethora of possible signals. Therefore, this indicator does a simple job, this is basic coding, and that are many free versions of such indicators, but, having this one customized to your liking is a nice gesture. MA Multi will be displayed as a Step MA for higher timeframes as this is how it looks like when you switch. Each line has its color, width, or whatever visuals you like.

In the settings you can set the Period, Method for calculation of the MA, the new Redraw option, and a list of timeframes to show or disable on the chart. The developer has uploaded a video showing a practical example of how the indicator can be used in trend following strategies, still, as we have mentioned, the possibilities on how you can use this are endless. The video is in Russian but it is not necessary to understand the use of multi-timeframe MA.

Service Cost

The price of this simple indicator is $10 to buy and having 5 activations. There is no possibility to rent this one but a demo is offered.

Conclusion

The developer is very open to additional updates. It seems, so if you have a special request to adapt the tool, you can send a message in the Comments section. Unfortunately, the price of $10 is low, but the indicator is very popular and has wide availability on the internet and forums for free, from other coders. It that sense, purchasing this one may be a good idea if you plan to ask the developer about updating with your needed features.

This Forex service can be found at the following web address: https://www.mql5.com/en/market/product/22642

Categories
Forex Service Review

Infinity TrendLine Indicator Review