Tag: GBPUSD

GBP/USD Dropped From Two-Weeks High – Broad-Based US Dollar Strength!

Post author By Ali B.
Post date 27 May, 2020
1 Comment on GBP/USD Dropped From Two-Weeks High – Broad-Based US Dollar Strength!

The GBP/USD currency pair failed to extend its previous day gains and dropped from the near 2-weeks high to 1.2320, mainly due to broad-based US dollar strength in the wake of risk-off market sentiment as tensions between the US-China are getting worse day by day. Whereas, the buyers failed to cheer the latest optimism about drug treatment for famous coronavirus (COVID-19). The GBP/USD is trading at 1.2323 and consolidating in the range between 1.2310 and 1.2348.

The reasons for the currency pair’s bearish sentiment could also be attributed to the latest allegations against the Tories about ignoring the lockdown guidance and distributing the virus funds to their own areas instead of supporting the more inferior parts of England, which eventually weighed on the GBP and contributed to its daily losses.

On the positive side, the currency pair’s previous bullish sentiment was bolstered by optimism about the usage of the famous Remdesivir drug for coronavirus patients. In the meantime, the report came that the drug appears to shorten recovery time for people with the virus was being made available on the National Health Services (NHS).

It should also be noted that the Remdesivir is an anti-viral medicine that was used against Ebola, and UK regulators have said that there was enough evidence to approve the use of this drug in selected COVID-19 patients.

The GBP/USD prices traded sharply bullish soaring from 1.2200 level to place a high around 1.2360 level. The resistance level of 1.2360 is extended by an upward channel, which can be seen on the 4-hour timeframe. The GBP/USD’s support is likely to be found around 1.2289 and 1.2165. Consider taking buying trades over 1.2292 and selling below the same level today.

Entry Price – Sell 1.23018

Stop Loss – 1.23468

Take Profit – 1.22518

Risk to Reward – 1.11

Profit & Loss Per Standard Lot = -$450/ +$500

Profit & Loss Per Micro Lot = -$45/ +$500

Tags GBPUSD

Forex Market Analysis

Daily F.X. Analysis, May 27 – Top Trade Setups In Forex – ECB President Lagarde Speaks!

Post author By Ali B.
Post date 27 May, 2020
No Comments on Daily F.X. Analysis, May 27 – Top Trade Setups In Forex – ECB President Lagarde Speaks!

The U.S. dollar, which behaves like a safe-haven asset during political uncertainty & market turmoil, rose to a one-week high against the basket of 6 currencies, but it started to erase its daily gains in late London Session. Tensions between U.S. &China have increased since the coronavirus outbreak, over which both countries have exchanged accusations of cover-ups and lack of transparency with the world. The signs for easing tensions between the two biggest economies of the world are decreasing day by day and have created an uncertain environment in the market weighing on the market.

Economic Events to Watch Today

EUR/USD – Daily Analysis

The EUR/USD pair was closed at 1.09821 after placing a high of 1.09956 and a low of 1.08913. Overall the movement of EUR/USD remained bullish throughout the day. On Tuesday, EUR/USD prices surged and recovered its previous three days’ losses and regained strength in the market on the back of the renewed risk-on market sentiment. The risk appetite after easing of lockdown throughout the world gave strength to the riskier assets like EUR/USD pair and rose them across the board.

The rising hopes for potential coronavirus vaccine added in the risk sentiment and increased expectations for a quick economic recovery. A bid pharmaceutical company, which was the first to make the Ebola vaccine revealed its plans on Tuesday and said that it was working on two potential vaccines and one drug to cure the virus’s infection. The CEO of the company was cautious that it might take a long time to deliver vaccines across the globe.

This raised optimism around the market and raised the bars for riskier assets and moved EUR/USD pairs to recover its previous day’s losses.

On the other hand, in the economic docket, EUR found extra support after the German Consumer Climate from Gfk came in as -18.9 against the expectations of -19.1.

Furthermore, the European Central Bank said that the coronavirus pandemic had amplified the existing vulnerabilities of the financial sector, which will make Eurozone banks face significant losses.

ECB reported that the pandemic had caused one of the sharpest economic contraction in recent history. Still, a wide range of policy measures has been proved helpful in averting a financial meltdown.

Daily Support and Resistance

R3 1.1126
R2 1.1061
R1 1.1021

Pivot Point 1.0956

S1 1.0915
S2 1.0851
S3 1.081

EUR/USD– Trading Tip

On the 4 hour timeframe, the EUR/USD pair is testing triple top level, which is providing resistance around 1.0995 level. Closing of candles below this level may drive selling trades until 38.2% Fibonacci retracement level of 1.0970, and below this, the next support holds around 1.0920, which marks 61.8% Fibonacci area. Overall, 1.0995 is a crucial trading level as above this; the EUR/USD pair may lead it’s prices further higher towards 1.1137. Bullish bias seems dominant today.

GBP/USD – Daily Analysis

The GBP/USD pair was closed at 1.23373 after placing a high of 1.23630 and a low of 1.21807. Overall the movement of GBP/USD pair remained bullish throughout the day. The Pound outperformed on Tuesday and rose to a level 1.236 highest since May 12 on the back of raised optimism about the EU-UK trade deal.

The next round of Brexit talks are due next week, and there have been headlines revolving that British negotiators could seal their first victory in next talks with the E.U. Reports suggested that the European Union was willing to shift its stance on fisheries in the next round of talks with Great Britain next week. If that happens, it would be a significant concession from the bloc in talks with the U.K. on their new relationship after Brexit.

The fisheries were important to the E.U. as most of the fishing takes place in U.K. waters, but the catch goes to E.U. fishers. U.K. wanted to ensure that after Brexit, which will take effect from next year, the U.K. as a newly independent coastal state could be solely in control of its waters and fish.

So far, the European Union has been reluctant to give up U.K. waters and demanded the things to remain the same as they were before in fisheries. However, on Tuesday, an E.U. official said that the bloc’s executive committee, which will negotiate with the U.K. in the name of all 27 E.U. member states, could ease its demand if the U.K. were to move as well.

According to Michel Barnier, surrendering the access to Britain’s fishing waters would be just one of the costs the British government must pay for a trade deal with the bloc. However, he faced pressure from other officials not to surrender to Britain too soon.

Daily Support and Resistance

R3 1.259
R2 1.2477
R1 1.2405

Pivot Point 1.2292

S1 1.222
S2 1.2107
S3 1.2035

GBP/USD– Trading Tip

The GBP/USD prices traded sharply bullish soaring from 1.2200 level to place a high around 1.2360 level. The resistance level of 1.2360 is extended by an upward channel, which can be seen on the 4-hour timeframe. The 50 EMA is bullish, but the MACD is suggesting odds of selling bias in the GBP/USD pair, perhaps because the Sterling is in the overbought zone. Bullish crossover of 1.2360 level may lead Sterling prices further higher towards 1.2460, while support is likely to be found around 1.2289 and 1.2165. Consider taking buying trades over 1.2292 and selling below the same level today.

USD/JPY – Daily Analysis

The USD/JPY pair was closed at 107.539 after placing a high of 107.921 and a low of 107.399. Overall the movement of the USD/JPY pair remained bearish throughout the day. The USD/JPY pair showed a bearish trend on Tuesday but consolidated in a range between 107.3 and 107.9.

At 18:00 GMT, the Housing Price Index for March from the United States was dropped to 0.1% against the forecasted 0.6% and weighed on the U.S. dollar. The S&P/CS Composite-20 HPI for the year advanced to 3.9% against the expectations of 3.4% and supported the U.S. dollar. At19:00 GMT, the Consumer Confidence from Conference Board for May decreased to 86.6 from the forecasted 87.1 and weighed on the U.S. dollar. The New Home Sales for April were recorded as 623K against the expected 429K and supported the U.S. dollar.

The closely watched Consumer Confidence from the United States declined and made the U.S. dollar weak across the board and ultimately dragged the USD/JPY pair on Tuesday. From the Japanese side, at 4:50 GMT, the Services Producer Price Index (SPPI) for the year was dropped to 1.0% against the forecasted 1.3%and weighed on Japanese Yen. At 9:30 GMT, All Industrial activities for March came in line with the expectations of -3.8%. At 10:00 GMT, the Core CPI for the year from Bank of Japan also dropped to -0.1% from the expected 0.0% and weighed on Japanese Yen.

The Governor of Bank of Japan, Haruhiko Kuroda, said that the central bank was ready to ease monetary policy further. To add more stimulus measures, the bank decided to expand its loan programs, cut the rates further, and ramp up the risky asset purchases. In his semiannual testimony to parliament, Kuroda said that Bank of Japan was ready to do whatever it can to ensure markets were stable. He added that the stability of markets was its first importance now because once the pandemic was over, Japan’s economy could resume a solid recovery path.

Daily Support and Resistance

R3 108.39
R2 108.16
R1 107.86

Pivot Point 107.63

S1 107.33
S2 107.1
S3 106.79

USD/JPY – Trading Tips

The USD/JPY pair continues to trade choppy sessions within the same trading 107.950 – 107.350. Above 107.950 level, we may see USD/JPY prices heading towards the next resistance level of 108.330. The 50 EMA is currently supporting the USD/JPY around 107.350. Breakout of USD/JPY support area of 107.35 can lead the USD/JPY prices towards 106.850. So let’s consider taking buying trades over 107.63 and selling below the same level today.

All the best for today!

Tags Dollar, Euro, EURUSD, Forex, Fundamental Analysis, GBPUSD, Pound, Technical Analysis, Technical Outlook, trading, USDJPY, yen

Forex Market Analysis

Daily F.X. Analysis, May 26 – Top Trade Setups In Forex – CB Consumer Confidence Ahead

Post author By Ali B.
Post date 26 May, 2020
No Comments on Daily F.X. Analysis, May 26 – Top Trade Setups In Forex – CB Consumer Confidence Ahead

Economic Events to Watch Today

EUR/USD – Daily Analysis

The EUR/USD pair was closed at 1.08964 after placing a high of 1.09144 and a low of 1.08702. Overall, the EUR/USD pair showed a null movement on Monday as the open and closed levels were almost the same.

On Monday, the EUR/USD pair moved in a tight range between 1.087 to 1.089 while managed to cut earlier losses and touched 1.091 level. The upbeat movement in the previous trading session on Monday for the pair was due to the German IFO Business Climate, which came in favor of EUR for May.

At 11:00 GMT, the German Final GDP for the quarter came in line with the expectations of -2.2% and had null-effect on the currency pair. However, at 13:00 GMT, the German IFO Business Climate, which measures the business conditions and expectations from Eurozone, was released as 79.5 against the expectations of 78.3 and April’s 74.2. The Index rebounded from the expectations and recovered from its worst decline in April on the reopening of Europe’s largest economy, which boosted corporate hopes.

At 17:56 GMT, the Belgian NBB Business Climate was dropped by 34.4 points against the expected decline of 29.7 and April’s 36.1. The more than expected decline in Belgian Business Climate weighed on EUR currency and dragged down the pair EUR/USD in late sessions.

In the meantime, the pair kept looking at U.S. dynamics for near term directions with the latest US-China & Hong Kong conflict which has reduced the importance of coronavirus development as the primary driver of global price action.

In this time, when investors are cautious about adding to their equity holdings because of the uncertain conditions of the post-lockdown world, Germany’s IFO institute survey for May granted some relief to them.

The lockdown measures introduced in mid-March have put the global economy on track for a recession this year. In recent weeks, the world’s market has only been held up due to the stimulus measures taken by central banks.

EUR remained steady on Monday near 1.09 level and recovered from earlier losses, as the focus of market participants shifted to the proposal the European Commission will release on Wednesday.

On Wednesday, the European Central Bank’s president Christine Lagarde will speak, and traders will be looking at it for fresh bids along with the EMU’s Consumer Confidence & Advanced Inflation data from Eurozone. On Tuesday, Consumer Confidence by the Conference Board is due to release. The Claims & Durable Goods Orders will be published on Thursday later this week.

Daily Support and Resistance

R3 1.0965
R2 1.094
R1 1.092

Pivot Point 1.0895

S1 1.0875
S2 1.085
S3 1.0829

EUR/USD– Trading Tip

The EUR/USD pair is on a bullish run, trading over 1.0914 level, having violated the horizontal resistance level of 1.0914 level. Above 1.0914, we may see the EUR/USD prices heading further higher towards the next resistance area of 1.0590. The EUR/USD pair had completed 50% Fibonacci retracement at 1.0885 and has bounced off over this level. For now, the pair is holding over 50 EMA, which is also suggesting the chances of a bullish trend continuation. We should consider taking buying positions over 1.0894 today while selling should be preferred only below this level.

GBP/USD – Daily Analysis

The GBP/USD pair was closed at 1.21752 after placing a high of 1.22034 and a low of 1.21637. Overall the movement of GBP/USD pair remained flat throughout the day. The GBP/USD pair remained flat and moved on a consolidating range on Monday as investors were cautious about the relaxation of lockdown measures, which gave a push to equities while ding the U.S. dollar demand.

On Monday, the Prime Minister of the U.K. instructed officials to draw up plans to reduce the involvement of Huawei Technologies Co in the U.K.’s fifth-generation mobile networks in the wake of the COVID 19 outbreak.

Johnson gave his officials instructions to draw up plans for reducing China’s involvement in the 5G infrastructure of the U.K. to a scale of zero by 2023. It looks like China’s pandemic handling has triggered calls from U.K.’s PM to rethink having closer ties with China.

In January, the U.K.’s government decided to give Huawei a limited role in 5G wireless networks and fiber. PM Johnson has amicable ties with U.S. President Donald Trump, and it looks like Johnson has taken this step to improve his relationship with the U.S.

Furthermore, on Brexit front, the trade negotiations between E.U. & U.K. have been negative for Sterling throughout the session and will likely remain the same in the coming days. The chances for hard-Brexit have increased as the UK-EU transition period is coming closer day by day, and there are no signs of any deal happening sooner. However, calls to extend the transition period have made due to pandemic; this decision will have to be made by June 30. But PM Johnson and negotiating team from the U.K. has so far been unequivocal that no extension would be made.

Johnson had articulated the Brexit deal with a clear timeline and has promised not to make any changes or compromise or bow to pressure for an extension. The deadline to call for an extension is coming up next month, and this has exerted downside pressure on GBP.

In the absence of any macroeconomic data from the U.K. and U.S. side due to bank holiday, the pair GBP/USD remained flat on Monday and continued its previous moves.

Daily Support and Resistance

R3 1.225
R2 1.2227
R1 1.2209

Pivot Point 1.2186

S1 1.2167
S2 1.2145
S3 1.2126

GBP/USD– Trading Tip

On Tuesday, the GBP/USD prices continue to trade in line with our previous forecast as the sideways trading range remains intact. The overall trading range remains 1.2170 – 1.2270. In the 4 hour timeframe, we can see a symmetric triangle pattern, which is exhibiting indecision among traders. On the downside, the GBP may gain support against the U.S. dollar around 1.2170 level, and violation of this level may extend selling until the next support area of 1.2080. Consider taking buying trades over 1.2186 and selling below the same level today.

USD/JPY – Daily Analysis

The USD/JPY pair was closed at 107.704 after placing a high of 107.780 and a low of 107.556. Overall the movement of the USD/JPY pair remained bullish throughout the day. The USD/JPY pair fluctuated in a tight range of 15 pips because of the absence of American traders for Memorial Day.

On Monday, Japanese Prime Minister Shinzo Abe lifted the coronavirus state of emergency in Tokyo and other areas. The nationwide end of restrictions and reopening of businesses were to take effect as of Monday.

The Japanese PM also introduced a new plan for a new stimulus package to support the businesses and Japan’s economy hit by the COVID-19 pandemic. Abe said that Japan has managed to bring the epidemic under control, and the exit from it was in sight. However, this announcement from Abe had little to no impact on JPY’s movement against its rival currencies.

Meanwhile, on the US-China relation front, China’s move to impose a new security law on Hong Kong has escalated concerns about the stability of the city and global trade prospects, which upset the United States and thus, US-Sino relation worsen even more.

The U.S. dollar, which behaves like a safe-haven asset during political uncertainty & market turmoil, rose to a one-week high against the six currencies. Still, it started to erase its daily gains in the late London Session. Tensions between U.S. &China have increased since the coronavirus outbreak, over which both countries have exchanged accusations of cover-ups and lack of transparency with the world. The signs for easing tensions between the two biggest economies of the world are decreasing day by day and have created an uncertain environment in the market weighing on the market.

Furthermore, the USD/JPY pair moved very little on Monday amid thin trading conditions. At the same time, the U.S. dollar Index remained flat near 99.80 level throughout the day as investors showed no interest in the greenback. Moreover, the market participants will be looking at the release of the Corporate Service Price Index and All Industry Activity Index from Japan on Tuesday. From the American side, the Fed National Activity Index and New Homme Sales & C.B. Consumer Confidence data will be under consideration.

Daily Support and Resistance

R3 108.03
R2 107.91
R1 107.8

Pivot Point 107.68

S1 107.57
S2 107.45
S3 107.35

USD/JPY – Trading Tips

On Tuesday, the USD/JPY continues following the same technical setups that we spoke about on a previous day. The pair is still trading choppy, but it’s peaking out of tight trading range of 107.630 – 107.350. Above 107.650 level, we may see USD/JPY prices heading towards the next resistance level of 108.130. The ascending triangle pattern was already violated, and the upward trendline is expected to keep the USD/JPY supported around 107.350. Breakout of USD/JPY support area of 107.35 can lead the USD/JPY prices towards 106.850. So let’s consider taking buying trades over 107.68 today.

All the best for today!

Tags Daily Brief, EUR-USD, EURUSD, Forex, Fundamental Analysis, GBP-USD, GBPUSD, Technical Analysis, Technical Outlook, USD-JPY, USDJPY

Forex Market Analysis

Daily F.X. Analysis, May 25 – Top Trade Setups In Forex – Memorial Day Holiday!

Post author By Ali B.
Post date 25 May, 2020
No Comments on Daily F.X. Analysis, May 25 – Top Trade Setups In Forex – Memorial Day Holiday!

On Monday, the U.S. stock markets will be closed to observe the Memorial Day holiday. The U.K. stock markets will be closed for the Spring Bank Holiday. The German Federal Statistical Office will post final readings of 1Q GDP (-2.3% on year expected). Germany’s IFO Business Climate Index for May will be released (78.5 expected).

Economic Events to Watch Today

EUR/USD – Daily Analysis

The EUR/USD dropped 0.4% to 1.0902. European Central Bank’s latest monetary policy accounts showed that officials agreed that “a swift V-shaped recovery could probably already be ruled out at this stage” and “the Governing Council would have to stand ready to adjust the Pandemic Emergency Purchase Program and potentially other instruments if it saw that the scale of the stimulus was falling short of what was needed.”

During the previous week, the FOMC minutes failed to impress the market as there was no surprise element in the presentation of the Powell presentation and was ignored by market participants. It was widely expected that the coronavirus outbreak would continue to weigh on the economy, and the economic outlook would remain somewhat pessimistic. Greenback holds onto its losses as there was no room for surprises in the minutes of the meeting.

The U.S. Dollar Index (DXY) fell about 0.25% on the day to post the lowest close since May. Powell said that Fed might need to introduce more stimulus measures if the economic lockdown remains there for a long time. He also added that banks should prepare themselves for the bankruptcies of nonfinancial companies.

Furthermore, the latest Franco-German proposal for a 500 euros fund to fight coronavirus crisis helped EUR pair to gain traction in the market and remain stronger than other currencies; this ultimately supported the upward trend of EUR/USD pair.

Later today, the U.S. stock markets will be closed to observe the Memorial Day holiday. The U.K. stock markets will be closed for the Spring Bank Holiday. The German Federal Statistical Office will post final readings of 1Q GDP (-2.3% on year expected). Germany’s IFO Business Climate Index for May will be released (78.5 expected).

Daily Support and Resistance

R3 1.1067
R2 1.1038
R1 1.0994

Pivot Point 1.0965

S1 1.092
S2 1.0892
S3 1.0847

EUR/USD– Trading Tip

The EUR/USD prices are holding at 1.0840 as these were facing strong resistance around 1.0993, which marks the triple top resistance level and can trigger selling in the pair. Conversely, the EUR/USD pair may find support around 1.0853, as the 1.0993 level is already violated. The MACD is recently forming selling candles, which suggests the trend of the sale in the pair. So the overall trading range can be from 1.0924 level to 1.0856. Today, we can look for selling trades under 1.0915 for 40/50 pips profit.

GBP/USD – Daily Analysis

The GBP/USD lost 0.5% to 1.2166. Official data showed that U.K. retail sales declined 18.1% on month in April (-15.5% expected). The GBP/USD pair continued to follow its previous day’s trend of downward movement and dropped during the previous week. The decline in currency pair could be attributed to the increasing speculations that the Bank of England will consider to ease monetary policy further. The Governor of Bank of England, Andrew Bailey, said that he had changed his position into negative interest rates given the crisis.

On the other hand, the broad-based U.S. dollar posted major weight on the GBP. As the U.S. dollar flashed green and took bids due to multiple reasons, most were concerned with global trade relations. The U.S. and China trade tussle further fueled by China’s action to impose new Hong Kong security law. Whereas, The U.S. Dollar Index that tracks the greenback against a basket of other currencies was up 0.19% to 199.593 by 11:44 PM ET (4:44 AM GMT). The U.S. dollar will likely continue its bullish bias during the weekend if the geopolitical tensions remain the same, keeping the currency pair under pressure.

The BoE Governor Andrew Bailey hinted on Wednesday that the Bank of England was thinking about introducing negative interest rates in more than 300 years of history, which instantly weighed on the GBP and turned out to be one of the major factors that kept a lid on any gains in the pair.

Looking forward, the U.S. stock markets will be closed to observe the Memorial Day holiday. The U.K. stock markets will be closed for the Spring Bank Holiday.

Daily Support and Resistance

R3 1.232
R2 1.2285
R1 1.2255

Pivot Point 1.222

S1 1.219
S2 1.2155
S3 1.2124

GBP/USD– Trading Tip

On Monday, the Cable is finding hurdle around 1.2269 marks, and it extends to form a doji and bearish engulfing beneath 1.2269 zones, which has lead a bearish correction in the Cable. On the downside, the GBP may gain support against the U.S. dollar around 1.2170 level. The MACD and 50 EMA are supporting selling bias in the pair. The bullish breakout of 1.2270 level can lead the Sterling prices towards 1.2360. While breakout of the support level of 1.2169 may lead the Sterling pair towards the 1.2080 support zone.

USD/JPY – Daily Analysis

The USD/JPY was flat at 107.63. The Bank of Japan announced plans to start a new 75 trillion yen lending program in June, to support coronavirus-hit businesses while keeping its benchmark rate at -0.1% and 10-year government bond yield target at about 0% unchanged. Meanwhile, it is reported that the Japanese government is finalizing a new Y100 trillion coronavirus relief package.

While explaining the key factor behind the risk-off market sentiment, the already intensified conflict between the United States and China further bolstered by the Zhang Yesui warning to the United States that China will strongly defend its U.S. does anything to undermine China’s core interests. Besides, China’s decision to impose new Hong Kong security law further fueled concerns about a major US-China tussle that underpinned Japan’s safe-haven status and excreted downside pressure on the currency pair.

On the other hand, the upticks in the safe-haven Japanese yen were further bolstered by the Bank of Japan’s decision to leave its monetary policy unchanged during the unscheduled meeting held this Friday. As well as, the Japanese central bank announced targeted loans for small and mid-sized firms in order to control the negative impact caused by the coronavirus pandemic.

However, the broad-based U.S. dollar is performing the pair’s role and helping the pair to limit its losses. After using the very harsh word from US-China, investors turned to the safe-haven dollar, which tried to exert some positive impact on the currency pair. Whereas, The U.S. Dollar Index that tracks the greenback against a basket of other currencies was up 0.19% to 199.593 by 11:44 PM ET (4:44 AM GMT). Moving on, the U.S. dollar will likely continue its bullish bias during the weekend if the geopolitical tensions remain the same.

Daily Support and Resistance

R3 108.21
R2 108.04
R1 107.83

Pivot Point 107.65

S1 107.44
S2 107.26
S3 107.05

USD/JPY – Trading Tips

The USD/JPY continues trading sideways in between 107.630 – 107.350. Above 107.650 level, we may see USD/JPY prices heading towards the next resistance level of 108.130. The ascending triangle pattern was already violated, and the upward trendline is expected to keep the USD/JPY supported around 107.350. Breakout of USD/JPY support area of 107.35 can lead the USD/JPY prices towards 106.850. So let’s consider taking buying trades over 107.350 today.

All the best for today!

Tags EURUSD, Forex, Fundamental Analysis, GBPUSD, Technical Analysis, Technical Outlook, trading, USDJPY

Forex Signals

GBP/USD Crosses Below 50 EMA – Brace for a Sell Position!

Post author By Ali B.
Post date 22 May, 2020
No Comments on GBP/USD Crosses Below 50 EMA – Brace for a Sell Position!

The GBP/USD currency pair failed to stop its 3-day losing streak and dropped to 1.2212 and represented 0.09% losses on the day as the BOE Governor Andrew Bailey’s recent indication about negative rates weighed on the Cable. Moreover, the reason for the pair declines could also be attributed to the broad-based U.S. dollar strength in the wake of intensifying US-China tussle. The GBP/USD is trading at 1.2220 and consolidating in the range between 1.2201 and 1.2239. However, the traders will be cautious to place any strong position ahead of the U.K. Retail Sales data.

At the data front, the U.K. Retail Sales data is scheduled to release at 06:00 GMT on the day, which is expected to drop 16% MoM in April, following -5.1% seen in March. Total retail sales are expected to drop 22.2% during the entire year in the reported month, down from -5.8% booked previously.

In the meantime, core retail sales are also expected to represent the coronavirus (COVID-19) impact with -15.0% MoM and -18.2% YoY figures. However, the data is expected to spread disappointment as the survey period is linked to the virus-led lockdown. Generally, high figures will be seen as positive or bullish for the GBP, while a low reading will be seen as negative or bearish.

Entry Price – Sell 1.22073

Stop Loss – 1.22473

Take Profit – 1.21573

Risk to Reward – 1.25

Profit & Loss Per Standard Lot = -$400/ +$500

Profit & Loss Per Micro Lot = -$40/ +$50

Tags GBPUSD

Forex Market Analysis

Daily F.X. Analysis, May 22 – Top Trade Setups In Forex – ECB Monetary Policy Meeting Accounts Ahead!

Post author By Ali B.
Post date 22 May, 2020
No Comments on Daily F.X. Analysis, May 22 – Top Trade Setups In Forex – ECB Monetary Policy Meeting Accounts Ahead!

Economic Events to Watch Today

EUR/USD – Daily Analysis

The EUR/USD prices were closed at 1.09777 after placing a high of 1.09988 and a low of 1.09185. Overall the movement of EUR/USD remained bullish throughout the day. The EUR/USD pair remained near 1.1000 after the release of FOMC meeting minutes. The surge in the EUR/USD pair suggested that the pair might break its 7-week range and move further to earn more gains.

The FOMC minutes failed to impress the market as there was no surprise element in Powell’s presentation and was ignored by market participants. It was widely expected that the coronavirus outbreak would continue to weigh on the economy, and the economic outlook would remain somewhat pessimistic. Greenback holds onto its losses as there was no room for surprises in the minutes of the meeting.

On the data front, at 13:00 GMT, the Current Account Balance from the Eurozone showed a balance of 27.4B during March against 37.8B of February. At 14:00 GMT, the Final CPI from Eurozone for the year declined to 0.3% against the expectations of 0.4% and weighed on EUR. The Final Core CPI for the year came in line with the hopes of 0.9%.

At 19:00 GMT, the Consumer Confidence on the Eurozone economic condition showed a decline to 19 forms the forecasted decline of 23 and supported EUR. The market participants ignored the poor than expected CPI from Eurozone, and EUR got its support after the release of consumer confidence, which showed less decline than expected.

Daily Support and Resistance

R3 1.1067
R2 1.1038
R1 1.0994

Pivot Point 1.0965

S1 1.092
S2 1.0892
S3 1.0847

EUR/USD– Trading Tip

On Friday, the EUR/USD prices are holding at 1.0940 as these were facing strong resistance around 1.0993, which marks the triple top resistance level and can trigger selling in the pair. Conversely, the EUR/USD pair may find support around 1.0883, once the 1.0993 level gets violated. The MACD is recently forming selling candles, which suggests the trend of the sale in the pair. So the overall trading range can be from 1.0994 level to 1.0886. On Friday, we can look for selling trades under 1.0965 for 40/50 pips profit.

GBP/USD – Daily Analysis

The GBP/USD pair was closed at 1.22225 after placing a high of 1.22495 and a low of 1.21855. Overall the movement of GBP/USD pair remained bearish throughout the day. The GBP/USD pair continued to follow its previous day’s trend of downward movement and dropped on Thursday as well. The decline in currency pair could be attributed to the increasing speculations that the Bank of England will consider to ease monetary policy further. The Governor of Bank of England, Andrew Bailey, said that he had changed his position into negative interest rates given the crisis.

He added that more easing measures from the Bank of England were more likely, but the interest rates were below on his priorities. He said that though it was not the time for negative interest rates, they could not be excluded from options.

Furthermore, on the lack of progress on trade talks with the European Union, the U.K. was driving its way towards no-deal Brexit. This raised fear amongst investors and raised uncertainty about the future relationship of Great Britain with E.U., making GBP weaker on the board. In the current context of coronavirus shutdown, the U.K. economy was already disturbed, and chances for an unfriendly exit from E.U. along with coronavirus would impact highly negative on the common currency.

On the data front, at 13:30 GMT, the Flash Manufacturing PMI from Great Britain showed a surge in Index with 40.6 points against the 35.1 of forecast and supported GBP. Sterling was also supported by Flash Services PMI, which exceeded the expectations of 24.1 and came in as 27.8. From the U.S. side, the increased Jobless Claims last week by 2.43M weighed on the U.S. dollar. However, the Flash Manufacturing PMI, which was key data on Thursday from the American side, came in support of the U.S. dollar when released as 39.8 against the expectations of 39.3.

The strong U.S. dollar on Thursday amid better than expected PMI data added in the downfall of GBP/USD pair.

Daily Support and Resistance

R3 1.232
R2 1.2285
R1 1.2255

Pivot Point 1.222

S1 1.219
S2 1.2155
S3 1.2124

GBP/USD– Trading Tip

The GBP/USD continues to trade within the same technical levels, which we discussed a day before. The Cable is facing resistance around 1.2269 level, and it continues to develop doji and bearish engulfing candles below 1.2269 zones, which has driven a bearish retracement in the Cable. On the lower side, the Sterling may find support against the U.S. dollar around 1.2170 level. The MACD and 50 EMA are supporting selling bias in the pair. Today, the release of U.K. Retail Sales m/m may help drive further movement in the market. Therefore, the bullish breakout of 1.2270 level can lead the Sterling prices towards 1.2360. While breakout of the support level of 1.2169 may lead the Sterling pair towards the 1.2080 support zone.

USD/JPY – Daily Analysis

The USD/JPY pair was closed at 107.604 after placing a high of 107.847 and a low of 107.415. Overall the movement of the USD/JPY pair remained bullish throughout the day. At 4:50 GMT, Japan’s Merchandise Trade Balance for April showed a deficit of 1.0 Trillion Japanese Yen on Thursday. At 5:30 GMT, the Flash Manufacturing PMI came in as 38.4 during May compared to 41.9 of April.

The exports from Japan showed a decline of 21.9% and imports by 7.2%, while overall trade balance showed a deficit and weighed on Japanese Yen. The weak JPY gave strength to the USD/JPY pair on Thursday.

On the American side, the U.S. jobless Claims for the past week exceeded over 2.43M from the expectations of 2.4M and weighed on the U.S. dollar at 17:30 GMT. The Philly Fed Manufacturing Index for May declined by 43.1 against 40.0 expected and weighed on the U.S. dollar.

However, at 18:45 GMT, the Flash manufacturing PMI from the U.S. for the month of May surged to 39.8 against the expected 39.3 and supported the U.S. dollar. The Flash Services PMI for May also exceeded to 36.9 from 32.6 of expectations.

The C.B. Leading Index for April was expected to be declined by 5.5%, but in actual, it showed a decline of 4.4% and supported the U.S. dollar. The Existing Home Sales remain flat with expectations of 4.33M.

Better than expected economic data from the United States gave strength to the U.S. dollar and moved USD/JPY pair in an upward direction to post daily gains. On the other hand, Fed Chairman Jerome Powell showed concerns about the economic indicators to hit their bleakest levels since the Great Depression. He said that the U.S. economy was facing a whole new level of uncertainty amid the coronavirus crisis.

Daily Support and Resistance

R3 108.21
R2 108.04
R1 107.83

Pivot Point 107.65

S1 107.44
S2 107.26
S3 107.05

USD/JPY – Trading Tips

On Friday, the USD/JPY continues trading sideways in between 107.630 – 107.350. Above 107.650 level, we may see USD/JPY prices heading towards the next resistance level of 108.130. The ascending triangle pattern was already violated, and the upward trendline is expected to keep the USD/JPY supported around 107.350. Breakout of USD/JPY support area of 107.35 can lead the USD/JPY prices towards 106.850. So let’s consider taking buying trades over 107.350 today.

All the best for today!

Tags Daily Brief, Dollar, Euro, EURUSD, Forex, Fundamental Analysis, GBPUSD, Pound, Technical Analysis, Technical Outlook, trading, USDJPY, yen

Forex Market Analysis

Daily F.X. Analysis, May 21 – Top Trade Setups In Forex – Services & Manufacturing PMI!

Post author By Ali B.
Post date 21 May, 2020
No Comments on Daily F.X. Analysis, May 21 – Top Trade Setups In Forex – Services & Manufacturing PMI!

On the news front, the EUR, GBP, and USD remain in the highlight due to manufacturing and services. The PMI figures are expected to improve all of the economies, perhaps due to smart lockdown strategy, which may have driven some business activity during the last month.

Economic Events to Watch Today

EUR/USD – Daily Analysis

Daily Support and Resistance

R3 1.1097
R2 1.1048
R1 1.1014

Pivot Point 1.0966

S1 1.0932
S2 1.0884
S3 1.0849

EUR/USD– Trading Tip

The EUR/USD prices are facing strong resistance around 1.0993, which marks the triple top resistance level and can trigger selling in the pair. Conversely, the EUR/USD pair may find support around 1.09512, and below this, the next support is likely to be seen around 1.0910. The bearish bias remains strong today. On the downside, the EUR/USD has odds of bouncing off above 1.0933.

GBP/USD – Daily Analysis

The GBP/USD pair was closed at 1.22375 after placing a high of 1.22875 and a low of 1.22212. Overall the movement of GBP/USD pair remained bearish throughout the day. The GBP/USD pair remained in a consolidation phase on Wednesday and showed a slight bearish movement amid poor than expected economic data from Great Britain. The CPI, RPI & PPI data showed a decline in the month of April and provided a weak economic outlook and weighed on GBP, which ultimately dragged the GBP/USD pair on Wednesday.

At 11:00 GMT, the Consumer Price Index (CPI) for the year from the United Kingdom fell short of expected 0.9% ad came in as 0.8% and weighed on GBP. The PPI Input in the month of April showed a decline of 5.1% against the expected decline of 4.2% and weighed on Pound. The PPI output of April also declined by 0.7% from the forecasted decline of 0.5% and weighed on GBP.

At 11:02 GMT, the Core CPI for the year from the United Kingdom came in line with the expectations of 1.4%. The RPI for the year from Britain also declined to 1.5% from 1.6% of expectations and weighed on GBP. At 13:30 GMT, the HPI for the year from Great Britain exceeded the expectations of 1.5% and came in as 2.1% and supported Pound.

Apart from economic data, news about considering negative rates as an option by BoE added in the pressure on GBP on Wednesday. According to Governor Andrew Bailey, the Bank of England studied how low U.K. interest rates can be cut even more to cope with the coronavirus crisis and did not exclude the idea of lowering borrowing costs below zero.

Daily Support and Resistance

R3 1.2346
R2 1.2317
R1 1.2279

Pivot Point 1.225

S1 1.2211
S2 1.2183
S3 1.2144

GBP/USD– Trading Tip

After exhibiting sharp bullish trends, the GBP/USD faced resistance around 1.2269 level. As we can see on the 4-hour chart, the pair has closed doji and bearish engulfing candles below 1.2269 zones, which has driven a bearish retracement in the Cable. On the lower side, the Sterling may find support against the U.S. dollar around 1.2170 level. The MACD and 50 EMA are supporting selling bias in the pair. Today, the release of UK PMI figures may help drive further movement in the market. Therefore, the bullish breakout of 1.2270 level can lead the Sterling prices towards 1.2360. While breakout of the support level of 1.2169 may lead the Sterling pair towards the 1.2080 support zone.

USD/JPY – Daily Analysis

The USD/JPY was closed at 107.535 after placing a high of 107.982 and a low of 107.335. Overall the movement of the USD/JPY pair remained bearish throughout the day. After posting gains for the previous two sessions, the USD/JPY pair starting to lose on Wednesday amid broad-based U.S. dollar weakness and renewed safe-haven demand.

The U.S. dollar remained weak on Wednesday after Federal Reserve failed to provide any surprising element in its April meeting minutes. The Fed Chairman Jerome Powell said that risk remained on the downside and held the interest rates on the same level.

Powell said that the second wave of coronavirus would impact on U.S. economy with more intensity, and the lockdown in that time would be stricter and for the longer time period, which would cause massive destruction of U.S. economy.

Powell showed his concerns about the impact of the second wave of coronavirus, which was still onboard due to no improvement in vaccine trials. Powell said that the lower-income households would suffer more due to another wave of the virus if it happened.

However, adding in the U.S. dollar weakness, the uncertainty about the potential coronavirus vaccine emerged in the market. After the trails of the Moderna vaccine in 6 monkeys, it was reported that all six monkeys out of which 3 received the vaccine were tested positive for COVID-19. The virus was found in the noses on all monkeys who participated in animal trials for that vaccine. This report decreased the risk sentiment in the market and added uncertainty.

Daily Support and Resistance

R3 108.57
R2 108.28
R1 107.91

Pivot Point 107.62

S1 107.25
S2 106.96
S3 106.59

USD/JPY – Trading Tips

The USD/JPY mostly remains mostly bearish following a bullish breakout of the choppy trading range of 107.480 – 107.029 level. For now, the pair is holding at 107.630, having immediate support around 107.500. Above this level, we may see USD/JPY prices heading towards the next resistance level of 108.130. The ascending triangle pattern has already been violated, and it’s expected to kee the USD/JPY supported around 107.500. So let’s consider taking buying trades over 107.500 today.

All the best for today!

Tags Daily Breif, Daily Brief, EURUSD, Forex, Fundamental Analysis, GBPUSD, Price Action, Technical Analysis, Technical Outlook, Trade Setup, trading, USDJPY

Forex Market Analysis

Daily F.X. Analysis, May 20 – Top Trade Setups In Forex – European CPI Figures Ahead!

Post author By Ali B.
Post date 20 May, 2020
No Comments on Daily F.X. Analysis, May 20 – Top Trade Setups In Forex – European CPI Figures Ahead!

The U.S. Federal Reserve will release its latest FOMC meeting minutes. The European Commission will post the May Consumer Confidence Index (-23.7 expected) and final readings of April CPI (+0.4% on-year expected). The U.K. Office for National Statistics will release April CPI (+0.9% on-year expected).

Economic Events to Watch Today

EUR/USD – Daily Analysis

The EUR/USD prices were closed at 1.09228 after placing a high of 1.09759 and a low of 1.09020. Overall the movement of the EUR/USD pair remained bullish throughout the day. After gaining almost 100 pips on Monday, the EUR/USD pair rose to near its highest level in 2 weeks of 1.0976 level on Tuesday. The upbeat market mode was derived by the Franco-German recovery fund proposal, which was announced on Monday and provided a boost to the single currency EUR.

The Vice President of the European Commission, Valdis Dombrovskis, said that the European Stability Mechanism (E.S.) strongly supported the Franco-German proposal. Commission was also looking forward to presenting the proposal in the upcoming European summit on May 27.

Following the previous day’s gains, the EUR/USD pair continued to rise and was further supported by the better than expected economic data release on Tuesday.

At 14:00 GMT, the ZEW Economic Sentiment from the European Union showed that the economic outlook of the Eurozone in the view of institutional investors and analysts increased to 46.0 from the expected27.4 and supported EUR.

The German ZEW Economic Sentiment also showed an improved economic outlook after releasing as 51.0 against the expected 30.0 during the month of May and supported EUR.

The better than the expected economic outlook of the whole bloc, along with Germany even in the lockdown time, gave a sudden push to the already prevailing bullish trend in EUR/USD and rose its prices above two weeks high. However, pair failed to hold its gains and started to drop in late-session but managed to end its day with a bullish candle.

On the other hand, the greenback lost its demand in the absence of any significant economic data. Only Housing Starts in the month of April were released from the U.S. on Tuesday, which declined to 0.89M against the 0.95 forecasted and weighed on the U.S. dollar.

Meanwhile, the Fed Chair Jerome Powell also refrained from providing any specific surprising remarks about the economy or policy outlook and hence kept the U.S. dollar under pressure. He said that the Fed would remain committed to using its all tools to recover the U.S. economy from a corona-induced crisis. U.S. Dollar Index fell near 99.50 level on that day.

Daily Support and Resistance

R3 1.1089
R2 1.1008
R1 1.0961

Pivot Point 1.088

S1 1.0833
S2 1.0752
S3 1.0705

EUR/USD– Trading Tip

The technical outlook for EUR/USD pair seems bullish as the pair is trading at 1.0938, having formed a bullish engulfing pattern above an immediate support level of 1.0918 level. On the 4 hour timeframe, the pair is also forming a higher high and higher low pattern, which can drive further buying trends in the EUR/USD pair. The MACD is bullish, while the 50 EMA is also supporting the bullish bias among traders. The pair has the potential to trade towards north to target 1.0993 triple top area while support holds at 1.0918 and 1.08850 level today.

GBP/USD – Daily Analysis

The GBP/USD prices were closed at 1.22482 after placing a high of 1.22961 and a low of 1.21839. Overall the movement of GBP/USD pair remained bullish throughout the day. The GBP/USD pair rose for 2nd consecutive day on Tuesday amid the broad-based U.S. dollar weakness and better than expected employment data from the U.K.

The U.S. dollar was already under pressure the previous day after the announcement of the Franco-German recovery fund proposal, which consists of 500 Billion euros. The increased risk appetite in the market also made the U.S. dollar weaker on Tuesday.

Furthermore, better than expected U.K. employment data on Tuesday gave strength to GBP and raised GBP/USD prices. The office for National Statistics reported that U.K. Unemployment Rate in April dropped to 3.9% from the expected 4.4% and supported GBP.

Despite the decreased unemployment rate, around 857K people filed for jobless claims in April against the forecasted 675K. The decreased unemployment rate, which covers three months to March, showed that unemployment might have fallen sharply during April considering the increased numbers of jobless claims that month.

Meanwhile, U.K. announced a new tariff regime for Brexit that will remove tariffs on 30 billion pounds worth of imports or about 60% worth of trading coming into the U.K. The latest tariff named U.K. Global Tariff (UKCT) will become effective from January 2021 when the transition period will end.

AT 11:00 GMT, the Claimant Count Change for April showed that almost 856.5K people applied for jobless benefit claims against the expectations of 675.0K and weighed on Sterling. At 11:02 GMT, the Average Earning Index for the quarter showed a decline to 2.4% from the expected 2.7% and weighed on U.S. Dollar. However, the Unemployment rate for March showed a decline to 3.9% against the anticipated 4.4% and supported Pound.

Daily Support and Resistance

R3 1.2411
R2 1.2319
R1 1.2257

Pivot Point 1.2166

S1 1.2104
S2 1.2013
S3 1.195

GBP/USD– Trading Tip

On Wednesday, the GBP/USD traded sharply bullish to trade at 1.2245 level despite the release of worse than expected Labor market reports from the U.K. At the moment, Cable faces resistance around 50 EMA, which holds at 1.2255 level. The closing of candles below 1.2260 can drive selling. Still, considering the recent bullish engulfing and long histograms of GBP/USD pair, we may see a continuation of a bullish trend in the Sterling. On the upper side, the violation of 1.2246 level may lead Sterling towards 1.2318 today.

USD/JPY – Daily Analysis

The USD/JPY pair was closed at 107.700 after placing a high of 108.086 and a low of 107.261. Overall the movement of the USD/JPY pair remained bullish throughout the day. The pair USD/JPY moved above 108.00 level on Tuesday, which was the one-month top-level amid increased risk-on market sentiment. The safe-haven Japanese Yen was under pressure after the latest optimism related to the encouraging initial results of coronavirus vaccine trials. Weaker Yen moved the USD/JPY pair in the opposite direction and made it to post gains above 108.00 level.

The intraday selling bias towards the Japanese Yen increased after the Bank of Japan called out for an unscheduled meeting on Friday. This fueled speculations that Bank would announce more easing measures.

The strong positive momentum due to weakened Yen lifted the USD/JPY prices to its highest level since April 13. However, the rally remained limited due to the rising concerns about the US-China relationship.

Another reason behind the limited rally on Tuesday was the fears about the second-wave of coronavirus. Senators questioned the Fed Chair Jerome Powell and the U.S. Treasury Secretary Steven Mnuchin about their stewardship of specific aspects of the $2 trillion package on Tuesday.

The Senate Banking Committee held its first look at spending under the package announced in March to assist people affected by the coronavirus pandemic. Mnuchin and Powell showed different perspectives on the economic outlook. Mnuchin remained optimistic and said that in the second half of 2020, the economy would see an upturn, while Powell suggested that congress might need more than trillions to aid the economy.

Daily Support and Resistance

R3 108.04
R2 107.78
R1 107.56

Pivot Point 107.3

S1 107.09
S2 106.82
S3 106.61

USD/JPY – Trading Tips

On Wednesday, the USD/JPY mostly remains mostly bearish following a bullish breakout of the choppy trading range of 107.480 – 107.029 level. For now, the pair is holding at 107.630, having immediate support around 107.500. Above this level, we may see USD/JPY prices heading towards the next resistance level of 108.130. The ascending triangle pattern has already been violated, and it’s expected to kee the USD/JPY supported around 107.500. So let’s consider taking buying trades over 107.500 today. All the best for today!

Tags cable, Daily Brief, Dollar, EUR, Euro, Europe, EURUSD, Forex, Fundamental Analysis, GBPUSD, Pound, Technical Analysis, Technical Outlook, trading, USDJPY

Forex Market Analysis

Daily F.X. Analysis, May 18 – Top Trade Setups In Forex – Sideways Trading In Play!

Post author By Ali B.
Post date 18 May, 2020
No Comments on Daily F.X. Analysis, May 18 – Top Trade Setups In Forex – Sideways Trading In Play!

On the news front, the economic calendar remains busy on Friday. Today’s releases may trigger some price action in the Euro and U.S. related pairs, especially on the release of German GDP, Eurozone Flash GDP, and U.S. core retail sales figures, which are due to come out during European and U.S. session respectively.

Economic Events to Watch Today

EUR/USD – Daily Analysis

During the early Asain trading session, the EUR/USD pair was closed at 1.08181 after placing a high of 1.08509 and a low of 1.07887. Overall the movement of the EUR/USD pair remained bullish throughout the day.

EUR/USD pair gained on Friday after falling for two consecutive days and recovered some of its weekly losses at the ending day of the week.

The pair recovered its upward trend on the back of stronger EUR against weaker USD. Euro remained robust due to better than expected economic data from the whole bloc, and the U.S. dollar was ineffective due to poor than expected data on Friday. At 11:00 GMT, the German Purchasing Price Index for April was released, which showed a decline of 0.7% against the expected decline of 0.6% and weighed on single currency Euro. At 11:45 GMT, the French Final CPI for April came in as 0.0% against the expected 0.1% and weighed on Euro.

At 13:00 GMT, the German Prelim GDP for the quarter came in line with the expectations of -2.2%. At 14:00 GMT, the Flash Employment Change for the quarter came in as -0.2% against the expectations of -2.0% and supported Euro. The Flash GDP for the whole bloc during the quarter came in line with the expected -3.8%. The Trade Balance for the whole bloc showed a surplus by 23.5B against the expected 17.2B and supported Euro.

Better than expected Employment data and Trade Balance from the whole bloc gave strength to the single currency and moved the pair towards the upside. On the other hand, the U.S. dollar was weaker against EUR due to poor than expected Retail Sales and Industrial Production data on Friday. The headline U.S. Retail Sales dropped by 16.4% during the month of April and weighed on the U.S. dollar while the Core Retail Sales were dropped by 17.2%, which added in the weakness of the dollar against Euro and moved the pair EUR/USD on the upside direction.

The U.S. Industrial Production showed a decline by 11.2% in the month of April against the forecasted decline by 11.5%, despite falling under the expected figure, the drop in U.S. industrial production gave an impact of weak U.S. economy and weighed on U.S. dollar. Stronger Euro against U.S. dollar and weaker dollar combined gave a push to EUR/USD pair on Friday to place a high of 1.08509.

Daily Support and Resistance

S1 1.0673
S2 1.0758
S3 1.079

Pivot Point 1.0843

R1 1.0874
R2 1.0928
R3 1.1013

EUR/USD– Trading Tip

The EUR/USD is trading at 1.0817, trading below 50 periods EMA resistance at 1.0838 level. Last week, the pair bounced off over the double bottom support level of 1.07756. On the 4 hour chart, the EUR/USD is closing candles within a symmetric triangle pattern, which drives mixed sentiment in the market. Extension of selling below 1.0843 level may lead the EUR/USD prices towards 1.07782 level, and below this, the next support is likely to be found around 1.0730. Consider staying bullish above and bearish below 1.0770 level today.

GBP/USD – Daily Analysis

The GBP/USD pair was closed at 1.21040 after placing a high of 1.22386 and a low of 1.31013. Overall the movement of pair remained bearish throughout the day. The GBP/USD pair was dropped to its fresh seven-week lowest level near 1.2100 on Friday on the back of the sudden pickup in demand for the U.S. dollar at last hours. Despite poor than expected Retail Sales data from the United States on Friday, the pair GBP/USD was dropped to its multi-week low level at the ending day of the week.

The growing fears of second-wave of coronavirus faded the hopes for quick global economic recovery and weighed on the U.S. dollar. The already weaker trend was then escalated after the relationship between the United States and China started to become even worse. The Sino-US relation headed towards a renewed trade war, especially after the U.S. commerce department cited security concerns against China on Friday. The U.S. Commerce Dept. took another step to cut off Chinese telco Huawei from the overseas chip manufacturing companies.

The U.S. also accused Huawei of building backdoors in network infrastructure to help the Chinese government spying efforts. Huawei repeatedly denied this accusation of spying efforts by Trump’s administration. Chinese officials have said they would respond to this, which decreased the risk appetite and gave a push to the greenback’s perceived safety-haven status. This ultimately dragged down the pair GBP/USD on Friday as there was no economic data to be released from the United Kingdom. The pair’s movement was solely dependent on the greenback’s demand.

Furthermore, over the weekend, the Cabinet Office Minister Michael Gove said that Brexit negotiations were going well, but E.U. needed to show some flexibility. He added that very little progress was made after the third Brexit talks, which were conducted on Friday. Both sides have shown frustration over the slow progress in trade talks, and the U.K. has geared up its preparations to leave the block without any deal. The U.K. has already said that it will not extend the negotiations process beyond December 31.

The sticking point during the negotiations has been the access to fishing waters. E.U. wanted to have the same access they had to the U.K.’s fishing water, but Britain was not allowing it. If no-deal Brexit happened then, both parties would have to follow the rules of the World Trade Organization. On the other side, E.U.’s top negotiator, Mr. Barnier, has said that the U.K. could not have the best of both worlds, and if it were meant to be No-deal Brexit, then E.U. would step up to prepare for no-deal outcomes.

The E.U. has also denied that the U.K. was wrong to think that slowing the process of talks would end up E.U. accepting the deal at any price. Growing fears of No-deal Brexit also caused GBP’s weakness against the U.S. dollar and dragged the pair to its lowest for seven weeks.

Daily Support and Resistance

R3 1.2137
R2 1.2123
R1 1.2104
Pivot Point 1.209
S1 1.2071
S2 1.2057
S3 1.2038

GBP/USD– Trading Tip

The GBP/USD fell into the oversold zone to trade at 1.2070 level, but the recent closing of Doji candle and bullish engulfing above 1.2076 support zone is likely to drove bullish correction in the market. On the higher side, the GBP/USD is likely to provide resistance around 1.2177, while the support level continues to hold around 1.2070. Below this, the next support could be found around 1.2040, which is extended by the bottom of the downward channel and can be seen on the 4-hour chart. Let’s consider staying bullish above 1.2070 today.

USD/JPY – Daily Analysis

The USD/JPY pair was closed at 107.086 after placing a high of107.434 and a low of 106.855. Overall the movement of the USD/JPY pair remained bearish throughout the day. The decreased appetite for the risk helped the safe-haven JPY to gather strength in the early American trading session and dragged the USD/JPY pair prices on Friday below the 107 level. However, the pair USD/JPY managed to erase some of its daily losses after gaining traction in the late trading session.

At 4:50 GMT, the Purchasing Price Index for the year from Bank of Japan was released, which dropped to -2.3% against the forecasted decline by -1.4% and weighed on JPY. From the American side, the closely watched Retail Sales data was released, which came in poor than expectations and weighed on the U.S. dollar. At 17:30 GMT, the Core Retail Sales for April dropped by 17.2% compared to -8.6% forecasted. The Retail Sales from the United States also declined in April by 16.4% while it was expected to be decreased by 12%.

More than expected decline in the total value of sales at the retail level from the United States during the previous month showed a decline in consumer spending and gave the negative impact of the U.S. economy, which in turn weighed on U.S. currency. Weak USD dragged the USD/JPY pair along with it below the 107 level on Friday.

The Empire State Manufacturing Index showed a decline to 48.5 against the expected reduction of 65.0. At 18:15 GMT, the Capacity Utilization Rate, which measures the capacity by which raw-material was used by manufacturers during April increased to 64.9% from the forecasted 63.9% and supported USD.

The Industrial Production in April also dropped by 11.2% but remained less than the forecasted decline of 11.3%. At 19:00 GMT, the Consumer Sentiment from the University of Michigan showed an improvement in consumers’ confidence over the U.S. economy when released as 73.7 against 68.0 in May.

Daily Support and Resistance

R3 109.37
R2 108.57
R1 108.12

Pivot Point 107.33

S1 106.88
S2 106.09
S3 105.64

USD/JPY – Trading Tips

On Monday, the USD/JPY traded bearishly to trade below the support level of 107, which marked the 50% Fibonacci retracement level. The USD/JPY is holding at 107.05, where the 50 EMA is supporting the pair, and it may drop further below the 107 level. At the moment, the 4-hour candle appears to close below 107 support become resistant, and this may drive more selling in the USD/JPY pair. The pair may extend selling until 106.600 level, whereas the closing of buying candles above 107 can trigger bullish bias until 107.50. By the way, bearish bias seems solid today. All the best for today!

Tags Daily Brief, EURUSD, Forex, Fundamental Analysis, GBPUSD, Technical Analysis, Technical Outlook, Trade Setup, trading, USDJPY

Forex Market Analysis

Daily F.X. Analysis, May 14 – Top Trade Setups In Forex – U.S. Jobless Claims in Focus!

Post author By Ali B.
Post date 14 May, 2020
No Comments on Daily F.X. Analysis, May 14 – Top Trade Setups In Forex – U.S. Jobless Claims in Focus!

The reason for the risk-off market sentiment could be attributed to the latest disagreeability about negative rates showed by Fed Chair Powell as well as Powell’s comments on the economy keep the market risk-tone heavy and helping the greenback to take bids. Let’s wait for the U.S. Jobless claims to predict further price action in the market.

Economic Events to Watch Today

EUR/USD – Daily Analysis

The EUR/USD currency pair flashing red and dropped from 1.0896 to 1.0812 on Wednesday while representing 0.10% losses on the day and currently drawing offers near below 1.0810 mainly due to the broad-based U.S. dollar strength in the wake of risk-off market sentiment. The reason for the risk-off market sentiment could be attributed to the latest disagreeability about negative rates showed by Fed Chair Powell as well as Powell’s comments on the economy keep the market risk-tone heavy and helping the greenback to take bids. The EUR/USD pair is trading at 1.0808 and consolidates in the range between the 1.0804 – 1.0825. However, traders are keenly awaiting the U.S. key data ahead of placing any strong position.

As we already mentioned that the market participants avoided risker assets and started buying the U.S. dollar mainly due to the risk-off market sentiment in the wake of renewed growth concerns. The Federal Reserve’s chairman gave warning on Wednesday about the scope and speed of the ongoing economic downturn while compared the slowdown pace with the World War II recession. Whereas, the Fed Chair Powell hints that the ongoing recession could be for the long-term if Congress fails to provide additional fiscal support.

Moreover, the Fed Chair Powell said we are not looking forward to keeps the negative rates. As well as, the Cleveland Federal Reserve President Loretta Mester said, “Negative rates not a tool we think we would use to support the economy. The reasons for the heavy risk-tone could also be attributed to the US-China tussle. It should be noted that the recent fire shots of words from China came after the U.S. President Trump ended Federal retirement savings fund from diversifying into the Chinese stocks.

On the other hand, the final German Consumer Price Index for April, which is scheduled to release at 06:00, could fail to leave any strong impact on the market until or unless the number prints significantly below estimates. As in result, the shared currency may face stronger bearish moves. At the coronavirus front, the number of confirmed coronavirus cases increased to 172,239, with a total of 7,723 deaths reported according to the latest figures from the German disease and epidemic control center, Robert Koch Institute (RKI).

On the other hand, from the United States, the PPI data came in poor than expected and was almost ignored by the market traders. The Producer Price Index from the U.S. for April was dropped by -1.3% against the forecasted -0.5%. The Core PPI from the U.S. for April also dropped to -0.3% against the expectations of -0.1%. The U.S. dollar ignored the data and was supported by Powell’s speech on Wednesday, so the strong U.S. dollar dragged down the upward movement of EUR/USD pair on Wednesday and ended the pair’s day with a bearish candle.

Market participants look forward to the key U.S. data, which highlights the U.S. Initial Jobless Claims, scheduled to release at 12:30 GMT, and final German Consumer Price Index for April, which is scheduled to release at 06:00, as these key data could influence the market moves. The trade/virus updates also will be key to watch.

Daily Support and Resistance

S1 1.0722
S2 1.0783
S3 1.0811

Pivot Point 1.0843

R1 1.0871
R2 1.0904
R3 1.0964

EUR/USD– Trading Tips

On Thursday, the EUR/USD price dropped to test the support level of 1.0800, which is extended bu the upward channel. On the chart, the EUR/USD os closing a Doji above upward channel trendline, but at the same time, the 50 EMA and horizontal resistance seems to drive bearish sentiment for the EUR/USD pair. Continuation of selling until 1.0778 level may lead the EUR/USD prices towards 1.07782 level, and below this, the next support is likely to be found around 1.0730.

GBP/USD – Daily Analysis

During Thursday’s early Asian trading hours, the GBP/USD currency pair failed to stop its 4-day losing rally and dropped around 1.2200 while representing 0.26% losses on the day mainly due to the Wednesday’s downbeat performance of the U.K. data. The Brexit and coronavirus fears also weighed on the British Pound. Moreover, the broad-based U.S. dollar bullish trend in the wake of risk-off market sentiment keeps the currency under pressure. At the press time, the GBP/USD currency pair is currently trading at 1.2189 and consolidates in the range between the 1.2187 – 1.2242. However, traders are keenly awaiting the U.S. Jobless Claims for near-term direction in the greenback.

As we already mentioned that the reason for the pair’s declines could be attributed to the multiple factors, like downbeat U.K. fundamentals, comprising sluggish data, coronavirus outbreak, Brexit worries, and most impactful is U.S. dollar strength.

The broad-based U.S. dollar is taking bids due to its safe-haven demand in the wake of risk-off market sentiment. Also, the Federal Reserve’s latest disagreeability from the negative rates bolstered the U.S. dollar strength. As well as, the ongoing uncertainty about coronavirus and the US-China trade war also keeps the market risk-tone heavy, which also contributed to the greenback’s gains. The U.S. Dollar Index that tracks the greenback against a basket of other currencies gained 0.03% to 100.317 by 11:47 AM ET (4:47 AM GMT).

However, the risk-off market sentiment further bolstered by the second wave of virus spread in major economies as well as the US-China tussle. At the U.K. data front, yesterday’s downbeat performance of the U.K. data urged the British Chancellor Rishi Sunak to say that there are many chances that the Uk economy will suffer in the deeper recession this year, and we’re already in the middle of that as we speak.

Powell said that Fed would continue using its tools in the betterment of economic recovery; however, it would need White House and Congress by its side for new fiscal aid. Powell stressed that the outlook of the economy was still uncertain, and risks remain downside. He did not give any signals about the negative interest rates and said that the need for them has not yet come. The pair dropped to 1.2210 level after Powell’s speech on the back of U.S. dollar strength on Wednesday and ended its day with a bearish candle.

Daily Support and Resistance

R3 1.2577
R2 1.2508
R1 1.2422

Pivot Point 1.2353

S1 1.2268
S2 1.2198
S3 1.2113

GBP/USD– Trading Tip

The GBP/USD bearish at 1.2200 after breaking below the narrow trading range of 1.2320 – 1.2245. The Cable is still holding below 50 EMA, which is extending resistance around 1.2350 level today. On the 4 hour chart, the GBP/USD is gaining support at 1.2185 level while the 50 EMA and horizontal resistance stay at 1.2365 level. Today, the U.S. jobless claims may drive the selling trend in the GBP/USD pair to lead its prices towards an immediate support level of 1.2190 and 1.2150. Conversely, the worse than expected Jobless Claims will lead the GBP/USD pair towards 1.2240 and 1.2310.

USD/JPY – Daily Analysis

The USD/JPY pair was closed at 107.025 after placing a high of 107.275 and a low of 106.741. Overall the movement of USD/JPY remained Bearish throughout the day. The USD/JPY extended its previous day’s losses and continued its downward movement on Wednesday to post losses for the 2nd trading session.

The pair followed the previous bearish trend in the early trading session, but after the speech from Jerome Powell, pair started to recover some of its daily losses and move in the reverse direction. However, the pair USD/JPY failed to reverse its direction due to poor than expected PPI reports from the U.S.

At 4:50 GMT, Japan’s Bank Lending figure for the year exceeded the expectations of 2.0% and came in as 3.0% in favor of Japanese Yen. The Current Account Balance from Japan’s Ministry of Finance showed a decline to 0.94T against the forecasted 1.29T for March. At 10:02 GMT, the Economy Watchers Sentiment dropped to a low of 7.9 against the forecasted 10.1 and showed that current economic conditions were not right.

Furthermore, Safe-haven Yen was also supported by the growing fears of the second wave of coronavirus along with the increased tensions between China &US, which weighed on the U.S. dollar.

From the American side, the Core Purchasing Price Index (PPI) for April showed a decline to -0.3% against the forecasted decline by -0.1% and weighed on U.S. dollar, which in turn added in the downfall of USD/JPY pair. The pair USD/JPY further dropped after the release of PPI, which also declined to -1.3% against the forecasted -0.5%.

Daily Support and Resistance

R3 109.37
R2 108.57
R1 108.12

Pivot Point 107.33

S1 106.88
S2 106.09
S3 105.64

USD/JPY – Trading Tips

The USD/JPY traded bearishly to trade below the support level of 107, which marked the 50% Fibonacci retracement level. Currently, the USD/JPY is holding at 106.875, where the 50 EMA is resisting the pair, and it may drop further below the 107 level. At the moment, the 4-hour candle seems to close below 107 support become resistant, and this may drive more selling in the USD/JPY pair. The pair may extend selling until 106.600 level, whereas the closing of buying candles above 107 can trigger bullish bias until 107.50. By the way, bearish bias seems solid today. All the best for today!

Tags Daily Brief, EURUSD, Forex, Forex Academy, Fundamental Analysis, GBPUSD, Technical Analysis, Technical Outlook, trading, USDJPY

Forex Market Analysis

Daily F.X. Analysis, May 13 – Top Trade Setups In Forex – U.S. Inflation Ready to Play!

Post author By Ali B.
Post date 13 May, 2020
No Comments on Daily F.X. Analysis, May 13 – Top Trade Setups In Forex – U.S. Inflation Ready to Play!

The latest economic figures from the United States raised expectations that the Federal Reserve will launch more monetary stimuli in the next meeting, and markets started to price in for a negative interest rate scenario. Donald Trump, while examining the state of Beijing amid coronavirus lockdown, warned about the US imposing new tariffs if China failed to purchase $200B worth U.S. farm goods. After that, trade delegates from both sides held a meeting via phone call and released a positive statement hence created optimism about the US-China relationship.

Economic Events to Watch Today

EUR/USD – Daily Analysis

The EUR/USD currency pair remained directionless around the 1.0850 as investors found on the waiting track and cautious about placing any strong position ahead of the Federal Reserve Chairman Jerome Powell’s speech on economic issues. The broad-based U.S. dollar flashing green and likely turned out to be one of the key factors that kept a lid on any gains in the pair, at least for now. As of writing, the EUR/USD currency pair is currently trading at 1.0850 and consolidates in the range between the 1.0843 – 1.0858.

As we all well aware that the investors expected the interest rate would be negative in June 2021. Whereas, the rate options market was putting in a 23% chance of the key federal funds rate falling below zero by end-December, As well as, the U.S. President Donald Trump also urged by the tweet that the negatives rate cuts would be considered good for the U.S.

On Wednesday, the European Commission will also recommend a phased approach to reopen borders with countries that have similar coronavirus risk profiles for tourists. Travel between similar risk profile countries will be recommended in the COVID-19 recovery plan.

The E.U. Foreign policy chief, Josep Borrell, said on Tuesday that coronavirus pandemic will likely deteriorate the security environment in years ahead and that countries should not slash their defensive spending in their budgets. He stressed the importance of security and defense funding in the challenging environment of a pandemic.

Meanwhile, due to the easing of lockdowns from countries across the globe, the new coronavirus cases were started being reported from many countries, including China, South Korea, and Germany. This weighed on markets as chances for second-wave of coronavirus could hurt the hopes of quick economic recovery. There was no economic data to be released from the European side, so the movement of pair EUR/USD followed the directions from U.S. dollar and market news.

Daily Support and Resistance

R3 1.0995
R2 1.094
R1 1.0894

Pivot Point 1.0839

S1 1.0793
S2 1.0738
S3 1.0691

EUR/USD– Trading Tips

The EUR/USD price dropped after testing the double top resistance level of 1.08770. The market is a bit slow today, which is why, the EUR/USD prices are consolidating above 1.0826, which is working as support that’s been extended by the 50 EMA. The bearish breakout of 1.0826 level can extend the selling trend until the next support level of 1.0777, while bullish breakout of 1.0850 can lead EUR/USD prices towards 61.8% Fibonacci retracement level of 1.0869 level. Consider taking selling trades below 1.0839 and buying above the same today.

GBP/USD – Daily Analysis

The GBP/USD currency pair stops its 2-day losing streak and hovering near the late-April low 1.2250 as traders are cautious to place any strong position ahead of critical U.K. macro releases. As we mentioned, the market participants are waiting for the key data while staying near April low, a continued break of a bullish sloping trend line from April 06 keeps sellers hopeful of targeting April month low near 1.2165 beneath 1.2250. At the press time, the GBP/USD currency pair is currently trading at 1.2271 and consolidates in the range between the 1.2251 – 1.2284.

At the data front, the U.K.’s heavy economic calendar is going to control the markets moves at 06:00 GMT with the first quarter (Q1) GDP figures for 2020. As well as, the March month Trade Balance and Industrial Production detail will also decorate the economic calendar.

According to the forecasted view about GDP, the United Kingdom GDP is expected to reach -8.0% MoM in March against -0.1% prior while the Index of Services (3M/3M) in the same timeframe is seen higher from 0.2% to 0.30%.

Broadbent said that risks were still to the downside and committee would do whatever will be necessary to recover.

Meanwhile, the Brexit talks were on board, and a little progress was made in the future fisheries agreement between E.U. & U.K. According to the MEP for CDU, it was only because of France and Netherland that U.K. was set to come to an agreement with E.U. on fisheries. U.K. did not want fisheries to be a part of economic agreement but number of member states including France & Netherland made very clear that they will not agree on any future economic partnership without long-term solution on fisheries.

Pound dropped on slow progress of post-Brexit deal with the E.U. and increased fears of second wave of coronavirus. However, The GDP data from U.K. will remain under high focus for GBP Traders on Wednesday.

Daily Support and Resistance

R3 1.2577
R2 1.2508
R1 1.2422

Pivot Point 1.2353

S1 1.2268
S2 1.2198
S3 1.2113

GBP/USD– Trading Tip

The GBP/USD sideways trading continues in between a narrow trading range of 1.2320 – 1.2245. The Cable is still holding below 50 EMA, which is extending resistance around 1.2370 level today. On the 4 hour chart, the GBP/USD is gaining support at 1.2285 level while the 50 EMA and horizontal resistance stay at 1.2365 level. Today, the Fed chair Powel speech may drive the selling trend in the GBP/USD pair to lead its prices towards an immediate support level of 1.2240 and 1.2190. Conversely, the worse than expected retail sales data will lead the GBP/USD pair towards 1.2360 and 1.2450.

USD/JPY – Daily Analysis

The USD/JPY was closed at 107.147 after placing a high of 107.691 and a low of 107.120. Overall the movement of USD/JPY pair remained bearish throughout the day. The pair USD/JPY lost its previous day gains but managed to remain above the 107 territory on Tuesday. On the back of broad-based U.S. dollar weakness, the pair USD/JPY dropped about 0.5% on that day.

U.S. dollar was weak due to the poor than expected CPI data in the month of April. The U.S. Consumer Price Index fell and posted its biggest monthly decline since the 2008-2009 recession. The CPI dropped by -0.8% against the expected decline by -0.7% and weighed on U.S. dollar. The Core CPI dropped by -0.4% against the forecasted -0.2%.

Moreover, the tensions between China and the U.S. have increased the fears of renewed trade-war. There were reports suggesting that Chinese Officials revive the possibility of revoking the signed trade deal and negotiate a new deal which will tilt more to the Chinese side.

U.S. President, Donald Trump was asked about this possibility and in response to whether he would renegotiate a deal with China, he said, “No, not at all. Not even a little bit.” He was not interested in renegotiate the deal. He said that he also had heard about it that China wanted to reopen the trade talks to make it better deal for them but a deal has already been signed and he would not cancel it.

Apart from China-US trade war, another trade-war fears are emerging in the market between Australia and China. The announced duties on Aussie meat by China is being considered as a safe play against the action of Australian PM to favor the inquiry of China’s role in the origin of the virus.

All these renewed trade-war fears along with coronavirus pandemic have increased the risk in the market. The virus cases in Germany increased, and the Wuhan city in China reported fresh rise in number of coronavirus cases after easing of lockdown.

Furthermore, an ex-member of White House Coronavirus Task Force Team, Doctor Anthony Fauci warned that gradual restart of economy was dangerous because it could cause needless suffering and would slow down the economic recovery.

Additionally, the officials from Bank of Japan also cited negative impact of virus on Asian economy and stated the importance of acting quickly by central banks when needed. At 10:00 GMT, the Leading Indicators of economy from Bank of Japan came less than the expected 84.3% as 83.8% and weighed on JPY.

Daily Support and Resistance

R3 109.37
R2 108.57
R1 108.12

Pivot Point 107.33

S1 106.88
S2 106.09
S3 105.64

USD/JPY – Trading Tips

The USD/JPY pair is gaining support at 107 level which marks the 50% Fibonacci retracement level. At the same level, the 50 EMA is supporting the pair and it could drive a bounce off above 107 level. At the moment, the 4-hour candle seems to close above 107 support, but it’s not sufficient to go long on USD/JPY. We need to wait for couple of more candles to give us closing above this level.

The MACDis holding in selling , which is supporting the bearish trend in the USD/JPY pair. The violation of an immediate support level may extend selling until 106.600 level. Conversely, the closing of buying candles above 107 can trigger bullish bias until 107.50. By the way, bearish bias seems solid today. All the best for today!

Tags Daily Brief, EURUSD, Forex, Fundamental Analysis, GBPUSD, review, Technical Analysis, trading, USDJPY

Forex Market Analysis

Daily F.X. Analysis, May 12 – Top Trade Setups In Forex – U.S. Inflation Ready to Play!

Post author By Ali B.
Post date 12 May, 2020
No Comments on Daily F.X. Analysis, May 12 – Top Trade Setups In Forex – U.S. Inflation Ready to Play!

The latest economic data from the United States fueled expectations that the Federal Reserve will stimulate more in the next meeting, and markets started to price in for a negative interest rate environment. Donald Trump, while considering the state of Beijing amid coronavirus lockdown, threatened to impose new tariffs if China failed to buy $200 worth U.S. farm goods. After that, trade representatives from both sides held a meeting via phone call and announced a positive report hence created optimism about the US-China relationship.

Economic Events to Watch Today

EUR/USD – Daily Analysis

The EUR/USD prices were closed at 1.08066 after placing a high of 1.08504 and a low of 1.08004. Overall the movement of the EUR/USD pair remained bearish throughout the day.

EUR/USD pair dropped on Monday and posted a fresh daily low of 1.0801. The downward trend of the EUR/USD pair was due to the strength of the U.S. dollar. The U.S. Dollar Index was up by 0.45% and was back to above 100.00; it was pushed by higher U.S. yields on Monday.

On the data front, at 13:00 GMT, the Italian Industrial Production in the month of March showed a decline in production activity by 28.4% against the forecasted decline of 20.0%. It weighed on single currency euro and added in the downward track of EUR/USD pair.

Furthermore, the EUR was also affected by the news about filing a case against the German constitutional Court. On Sunday, the European Union Commission announced that it could open a legal case against the German Constitutional Court ruling of European Central Bank’s easing programs.

The president of the European Commission, Ursula von der Leyen, has said that the judges in the German Constitutional Court have overreached their authority by calling the part of ECB’s bond-buying program illegal, which was critical and necessary to stabilize the economy in coronavirus crisis.

However, the loss in EUR/USD prices gained after new six coronavirus cases started to reappear from Wuhan city after more than a month when lockdown restrictions were eased in the city, which is considered as the epicenter of coronavirus outbreak.

The E.U. and U.K. resumed talks on Monday with rising pressure on both sides to make some progress as the deadline to reach a deal is coming closer. 2 rounds of talks have been made, which included first face-to-face in March and another in April via video conference.

Daily Support and Resistance

R3 1.089
R2 1.0871
R1 1.084

Pivot Point 1.082

S1 1.0789
S2 1.0769
S3 1.0738

EUR/USD– Trading Tips

The EUR/USD price is trading slightly bearish below an immediate resistance level of 1.0823, which is extended by the 50 EMA. On the 4 hour timeframe, the 50 EMA is pushing the EUR/USD pair around 1.0820. Below this, we may see EUR/USD prices falling until 1.0777, while bullish breakout of 1.0850 can lead EUR/USD prices towards 61.8% Fibonacci retracement level of 1.0869 level. Later today, the U.S. retail sales will help determine further trends in the EUR/USD prices.

GBP/USD – Daily Analysis

The GBP/USD pair was closed at 1.23326 after placing a high of 1.24376 and a low of 1.22827. Overall the movement of GBP/USD pair remained bearish throughout the day.

The GBP/USD pair remained relatively quiet above 1.2400 level at the start of the day but came under intense bearish pressure in late trading sessions. GBP/USD pair dropped to a fresh four day low of 1.2282 on the back of U.S. dollar strength and GBP weakness. However, it maintained to recover some of its losses in late session and ended up closing the day in a negative trend.

The U.K. government has published its recovery-strategy on Monday, which noted that the coronavirus was expected to circulate for an extended period of time and with the periodic waves. According to the strategy, the financial measures taken by the government to cope up with the damage caused by coronavirus to the economy were very expensive and that these measures could not be sustained for a longer period.

Furthermore, PM Boris Johnson has said that different parts of the U.K. will stay in lockdown longer than other parts. He added that any wrong move would be disastrous for the U.K. economy, and they will show no hesitation in reintroducing the measures if needed.

On Sunday, PM Johnson announced that restrictions will be lifted from local travel and local parks after six weeks of lockdown and that workers who cannot do work from home like construction & manufacturing industries were encouraged to return to their jobs.

However, he spared the details about how they could continue the work and not spread the virus. So, on Monday, groups representing U.K. businesses and workers criticized the government’s plan to ease lockdown. They complained that PM Johnson missed the crucial details while announcing the easing of lockdown, that how companies should prepare for safe return to work.

Daily Support and Resistance

R3 1.2577
R2 1.2508
R1 1.2422

Pivot Point 1.2353

S1 1.2268
S2 1.2198
S3 1.2113

GBP/USD– Trading Tip

The GBP/USD sideways trading continues in between a narrow trading range of 1.2360 – 1.2285. The Cable is still holding below 50 EMA, which is extending resistance around 1.2370 level today. On the 4 hour chart, the GBP/USD is gaining support at 1.2285 level while the 50 EMA and horizontal resistance stay at 1.2365 level. Today, the positive retail sales may drive the selling trend in the GBP/USD pair to lead its prices towards an immediate support level of 1.2280 and 1.2250. Conversely, the worse than expected retail sales data will lead the GBP/USD pair towards 1.2360 and 1.2450.

USD/JPY – Daily Analysis

The USD/JPY pair was closed at 107.651 after placing a high of 107.766 and a low of 106.472. Overall the movement of the USD/JPY pair remained bullish throughout the day. USD/JPY pair climbed to 2 weeks high above 107.70 level on Monday on the back of U.S. dollar strength. The pair USD/JPY moved up by 0.85% on the day amid U.S. dollar strength due to increased risk-on market sentiment.

The increased risk sentiment of the market made it difficult for JPY safe-haven currency to find demand on Monday hence gave a push to the USD/JPY pair prices. On Monday, the Bank of Japan signaled more measures in order to avoid the 2nd Great Depression caused by the coronavirus pandemic.

In its report published on Monday, BoJ announced that it would lift the cap from government & corporate bond purchases and also pointed to take additional measures if needed. BoJ had already decided to expand its monetary stimulus program on April 27 when it held its last meeting in which it described the current economic situation as “increasingly severe.”

BoJ, in its monthly meeting, forecasted that country’s economy would experience a contraction between 5 and 3 percent in the current year. Japan’s current coronavirus cases are recorded as 15,777, with 624 deaths. The increased number of appearing cases after the easing of lockdown has made BoJ take additional measures to put the world’s third-largest economy back on track.

On another note, on Monday, the Central Bank of Japan appointed its first woman executive director since it has originated. Tokiko Shimizu, a 55-year-old banker, was appointed as a first-ever female executive director in 138 years.

Daily Support and Resistance

R3 109.37
R2 108.57
R1 108.12

Pivot Point 107.33

S1 106.88
S2 106.09
S3 105.64

USD/JPY – Trading Tips

The USD/JPY traded sharply bullish to place a high around 107.850 amid stronger U.S. dollar and the risk-on sentiment. On the 4 hour timeframe, the USD/JPY pair is now trying to exhibit some correction as it’s price fell from 107.850 area to 107.400 support zone.

However, the 50 periods EMA are still suggesting strong odds of bullish bias, along with the MACD, which are also supporting the bullish trend in the USD/JPY pair. The violation of an immediate resistance level may extend buying until 107.900 level. Conversely, the closing of selling candles below 107.460 can continue selling bias until 107 and 106.850. The 50 EMA is supporting the bullish bias around the 106.650 area. All the best for today!

Tags Daily Brief, EURUSD, Forex, Fundamental Analysis, GBPUSD, Technical Analysis, trading, USDJPY

Forex Market Analysis

Daily F.X. Analysis, May 11 – Top Trade Setups In Forex – Choppy Sessions In Play!

Post author By Ali B.
Post date 11 May, 2020
No Comments on Daily F.X. Analysis, May 11 – Top Trade Setups In Forex – Choppy Sessions In Play!

Economic Events to Watch Today

EUR/USD – Daily Analysis

The EUR/USD currency pair failed to stop its Friday’s winning streak and rose just under the 4-hour chart 100-candle average at 1.0852 from the 1.0822 level, mainly due to the U.S. dollar weakness on the on back of the risk-on market sentiment. However, the reason for the risk-on market sentiment could be attributed to the on-going optimism about the easing of coronavirus-led restrictions in the U.S. and around the world.

The EUR/USD is trading at 1.0848 and is consolidating in the range between 1.0825 and 1.0851. At the USD front, the U.S. dollar erased its gains from the earlier session as most of the countries plan to ease the lockdown. As in result, the investor’s confidence got boost in the wake of risk-on market sentiment.

On the other hand, the Netherlands and France are pushing the European Union (E.U.) to use trade policy instruments and tariffs, to ensure the implementation of international environmental and labor standards. The initiative came after E.U. and Britain have tried to negotiate about the new trade deal, and it has raised concerns that Britain might seek to undercut the E.U. labor & environmental standards to boost its competitiveness.

The involvement of pro-free trade Netherlands might be able to change the attitude of the European Union E.U. towards thinking on the need to protect domestic industry and job, as per a French Diplomat.

However, it will remain to see if the proposal by France and the Netherlands can get support from other members and considered by Trade Commissioner Phil Hogan, as we know Phil Hogan is scheduled to announce a policy review later this year although the increase of protectionism may weigh on the shared currency.

At the virus front, the number of confirmed coronavirus cases rose to 169,575, with a total of 7,417 deaths reported so far on Monday, While the cases increased slightly by 357 in Germany on Monday against Friday’s +667. The death toll increased by 22, as per the German disease and epidemic control center, Robert Koch Institute (RKI).

If talking about recoveries, so approximately 145,600 people are reported to have recovered from the coronavirus so far. Looking forward, the economic calendar is empty, and the pair is expected to continue taking cues from the action in the stock markets. The fresh virus updates will be key to watch.

Daily Support and Resistance

S1 1.0722
S2 1.0783
S3 1.0811

Pivot Point 1.0843

R1 1.0871
R2 1.0904
R3 1.0964

EUR/USD– Trading Tips

The EUR/USD price is trading slightly bearish below an immediate resistance level of 1.0853, which is extended by the 50 EMA. On the 4 hour timeframe, the 50 EMA is pushing the EUR/USD pair around 1.0850. By the way, it’s the same level at which the EUR/USD completes the 50% Fibonacci retracement. Below this, we may see EUR/USD prices falling until 1.0780, while bullish breakout of 1.0850 can lead EUR/USD prices towards 61.8% Fibonacci retracement level of 1.0869 level. Above this, the next resistance may be found around 1.0900. Consider staying bearish below 1.0852 today.

GBP/USD – Daily Analysis

The GBP/USD currency pair extended its Friday’s bullish moves and continued to take bids around 1.2432 while representing 0.16% gains on the day. As well as, the currency pair cheered the fresh optimism about easing lockdowns statements by UK PM Boris Johnson’s. Moreover, the reason for the bullish run-up of the GBP/USD pair could also be attributed to the expectations surrounding an extension of wage aid.

However, the pair’s traders are cautious about placing any strong bids ahead of the third round of Brexit negotiations between the U.K. and European Union (E.U.). The UK PM Boris Johnson recently took a step to ease the lockdown restrictions from level 4 to 3 of the new five-tier ranking system, whereas the meaning of level 1 will be that coronavirus is no longer existing.

As well as, the Tory government also announced that the people could join their workplaces from Monday to those who cannot work from home. The previous stance of government was only to go if they must have too, but now the government has announced that anyone who cannot work from homes like construction and manufacturing business should go to their works.

On the other hand, the greenback gain traction in earlier sessions on optimism about easing lockdown restrictions, which eventually boosted the investor’s confidence in the market in the wake of risk-on market sentiment. Whereas, California, Michigan, and Ohio, three of the important states for U.S. manufacturing, permitted to open factories and some businesses, which eventually kept the U.S. dollar steady. While the U.S. Dollar Index that tracks the greenback against a basket of other currencies slipped 0.04% to 99.725 by 11: 25 PM ET (4:25 AM GMT).

At the coronavirus front, as per the latest report by the Department of Health, Britain’s COVID-19 death toll has increased by 269 to 31,855.

The UK Chancellor Rishi Sunak is expected to announce the extension of wage aid on Monday. The report hints that the Ministers are expected to extend the state bankrolling of wages by the end of September, although at a reduced rate of 60pc, while also boosted the salary packages of staff returned to work on a part-time basis.

At the US-China front, U.S. President Donald Trump fueled the US-China tension once again by claiming China for the virus outbreak, while China defied roughly. However, the UK PM Johnson has already rejected the agreement that ensures E.U. fishermen’s long-term access to British waters, while insisting the focus should be on annual negotiations.

Daily Support and Resistance

S1 1.2188
S2 1.2299
S3 1.2352

Pivot Point 1.241

R1 1.2464
R2 1.2521
R3 1.2632

GBP/USD– Trading Tip

The GBP/USD continues trading bearish below 50 EMA, which is extending resistance around 1.2420 level today. On the 4 hour chart, the GBP/USD is gaining support at 1.2313 level while the 50 EMA extends resistance at 1.2315 level. We can also see a strong selling candle right below 50 EMA, which suggests the potential of a selling bias in the GBP/USD pair. The more robust NFP figures have also driven selling bias in the GBP/USD pair, which is leading the GBP/USD pair towards 1.2315 and 1.2255 level. Conversely, a bullish breakout of 1.2470 level may influence the GBP/USD prices towards the next resistance level of 1.2488 level.

USD/JPY – Daily Analysis

The USD/JPY pair was closed at 106.609 after placing a high of 106.746 and a low of 106.219. Overall the pair USD/JPY moved in a bullish trend that day. At 4:30 GMT, the Average Cash Earnings for the year from Japan came in line with the expectations of 0.1%. The Household Spending for the Year from Japan was dropped by -6.0% against the expected drop by -6.3% and supported Yen.

At 17:30 GMT, the closely watched Average Hourly Earnings, Non-Farm Employment Change, and the Unemployment rate from the United States was released, which came in better than the expectations and raised the bars for U.S. dollar across the board. The Average Hourly Earnings were increased to 4.7% against the forecasted 0.5% in the month of April.

The Unemployment Rate from the United States was increased to 14.7% in April against the expectations of 16% and in comparison to March’s 4.4%. The Non-Farm Payrolls, which lost during April month, were recorded as 20.5M against the expected loss by 22 M and gave strength to the U.S. dollar.

If we look at the results, the drop in jobs was higher ever recorder as 20.5M but was under the expected value, so gave strength to the U.S. dollar. The huge number of lost jobs in a single month was even higher than it was in the Great Depression. However, it still managed to support the U.S. dollar.

On the other hand, the recorder unemployment rate was also high in the month of April in comparison to the previous month’s rate, but it still managed to support the U.S. dollar on Friday as it did not exceed the expected rise of rate.

Daily Support and Resistance

R3 107.31
R2 106.99
R1 106.63

Pivot Point 106.31

S1 105.95
S2 105.63
S3 105.27

USD/JPY – Trading Tips

The USD/JPY is trading sharply bullish at 117.450 in the wake of sharp bullish bias in the U.S. dollar since the release of less bad than expected economic data. On the 4 hour timeframe, the USD/JPY pair has formed three white soldiers who are likely to drive bullish bias in the USD/JPY pair. These may lead the USD/JPY prices further higher towards the next resistance level of 107.460.

The violation of an immediate resistance level may extend buying until 107.900 level. Conversely, the closing of selling candles below 107.460 can extend selling bias until 107 and 106.850. The 50 EMA is supporting the bullish bias around the 106.650 area. All the best for today!

Tags Daily Brief, EURUSD, Forex, Fundamental Analysis, GBPUSD, Technical Analysis, trading, USDJPY

Forex Signals

GBPUSD bounced off supports: Regression Channel bottom and 200-SMA

Post author By Fran S.
Post date 7 May, 2020
No Comments on GBPUSD bounced off supports: Regression Channel bottom and 200-SMA

The Setup

GBPUSD has created a descending leg inside a linear regression channel, which is pointing slightly upwards. The pair has bounced near the -2Sigma line that signals the bottom of the channel. We see also that, after piercing the 200-SMA line it soon recovered and is back above it. Additionally, we see that the price has made a kind of morning star figure, with a strong candle that engulfed the last two bearish candlesticks.

A buy-stop order at the high of the last candle in progress could create a movement to the upside, seeking the top of the channel, helped by the sentiment of investors about the relief by the UK government of the confinement British people are enduring due to the COVID-19 pandemic.

Main Levels

Entry stop-buy: 1.2386
     Stop-loss: 1.2295
 Profit Target: 1.2568

Risk and reward:

The risk is 91 pips or $910 per lot, $91 on a mini-lot, and $9.1 on a micro-lot.

The reward is 182 pips, or $1,820 per lot, $182 on a mini-lot and $18.2 on a micro-lot

The Reward-to-risk factor is 2.

Tags Forex, GBP-USD, GBPUSD, Trade Setup, trading

Forex Market Analysis

Daily F.X. Analysis, May 07 – Top Trade Setups In Forex – Braces for BOE Policy Decision!

Post author By Ali B.
Post date 7 May, 2020
1 Comment on Daily F.X. Analysis, May 07 – Top Trade Setups In Forex – Braces for BOE Policy Decision!

The greenback gained against most of its rivals and became the best performer along with JPY on Wednesday. Despite the loss of 20 million jobs in U.S. private payrolls, the U.S. dollar still managed to remain high on board. The ADP Non-Farm Employment change showed that during April, about 20236K people reported as jobless against the 20500K of expectations. Brace for U.S. Jobless Claims…

Economic Events to Watch Today

EUR/USD – Daily Analysis

The EUR/USD prices were closed at 1.07957 after placing a high of 1.08458 and a low of 1.07817. Overall the movement of the EUR/USD pair remained bearish throughout the day. The EUR/USD posted losses for 3rd consecutive day on Wednesday amid the new economic forecast by the European Commission. The COVID-19 pandemic has driven the European Union into a deep and uneven recession due to the contraction of national economies amid the disruptive work, daily life, and the movement of goods.

The new economic forecast by the European Commission came in after weeks of industrial shutdowns and social restrictions due to coronavirus pandemic. The economy of the whole Euro-region was forecasted to shrink by 7.5% this year after the increased unemployment, public debts, and the steps taken by the government to contain the virus spread. The forecasted decline in the economy is far worse than the contraction of around 4.5% during the Great Recession.

According to the European Commission, the economies of Italy, Spain, and Greece will see the contraction of more than 9% this year. The news gave a negative impression of the single currency and hence weighed on EUR/USD on Wednesday.

At 11:00 GMT, the German Factory Orders for the month of March were dropped by -15.6% against the expected drop of 10.0% and weighed on EUR. At 12:15 GMT, the Spanish Services PMI came as 7.1 against the expected 10.0 to weigh on EUR. At 12:45 GMT, the Italian Services PMI exceeded the expectations of 9.2 and came in as 10.8 in the month of April and supported EUR.

However, at 12:50 GMT, the French Final Services PMI came in line with the expectations of April as 10.2. At 12:55 GMT, the German Final Services PMI for April exceeded the expectations of 15.9 and came in as 16.2 to support EUR. However, the Final Services PMI for the whole bloc came in line with the expectations of 12.0. At 14:00 GMT, the Retail Sales for the month of March dropped the same as expected by 11.2%. Most data from Europe side came against EUR and hence weighed on EUR/USD prices on Wednesday.

Daily Support and Resistance

R3 1.0901
R2 1.0875
R1 1.0834
Pivot Point 1.0808
S1 1.0768
S2 1.0741
S3 1.0701

EUR/USD– Trading Tips

The EUR/USD price fell sharply from 1.0820 zones to place a low of around 1.0783. Closing of candles above this level is suggesting odds of bullish retracement. Continuation of buying above 1.078 can lead the pair towards the next resistance level of 1.0832 level. The EUR/USD pair has dropped below the double top resistance level of 1.0817, and the closing of candles below this level may extend selling bias until 1.0752. The EMA is still suggesting selling bias. Therefore, we may see selling below 1.0817. While bullish crossover above 1.0817 can lead to EURUSD prices towards 1.0865.

GBP/USD – Daily Analysis

The pair GBP/USD was closed at 1.23413 after placing a high of 1.24499 and a low of 1.23349. Overall the movement of GBP/USD remained bearish throughout the day. The GBP/USD pair on Wednesday posted losses for the 4th consecutive day and hit a fresh weekly low near 1.2330. The drop in GBP/USD pair was attributed to the strength of the U.S. dollar across the board.

Greenback gained against most of its rivals and became the best performer along with JPY on Wednesday. Despite the loss of 20 million jobs in U.S. private payrolls, the U.S. dollar still managed to remain high on board. The ADP Non-Farm Employment change showed that during April, about 20236K people reported as jobless against the 20500K of expectations.

Twenty million loss in U.S. private payroll was under the expected figure, so the U.S. dollar gained traction in the market on the back of the view that data came better than the expectations. Strong U.S. dollar weighed heavily on the GBP/USD pair and dragged its prices on Wednesday.

On the British side, the economic data about the Construction PMI for the month of April showed a decline to 8.2 against the expectations of 21.5 and weighed on GBP. Weaker than expected data from Britain caused pressure on Sterling and added in the downward movement of GBP/USD on Wednesday.

However, the mood towards Pound may change into positive on the next day when the Bank of England is due to announce its May monetary policy. Although no change in the interest rates will be seen given the circumstances, the nature of talks and comments on the British economy will be under consideration by traders.

Daily Support and Resistance

R3 1.2534
R2 1.2492
R1 1.2417
Pivot Point 1.2376
S1 1.2301
S2 1.226
S3 1.2185

GBP/USD– Trading Tip

The GBP/USD has traded in line without a previous forecast to test the support level of the 1.2318 level. The recent formation of inside up bar on the 4 hour time is suggesting odds of buying in the GBP/USD pair. On the higher side, the GBP/USD pair may find support around 1.2315 level, while resistance is likely to be found around 1.2385 and 1.2420 level. The 50 EMA lingers around 1.2470 level, and below this, we can expect additional selling in the GBP/USD pair. We are already keeping our sell limit around these levels.

USD/JPY – Daily Analysis

The USD/JPY was closed at 106.102 after placing a high of 106.617 and a low of 105.985. Overall the movement of USD/JPY remained bearish during the day. On Wednesday, the pair USD/JPY was dropped for the 4th straight day towards 105 level and remained under heavy selling pressure. The downfall in the USD/JPY pair seemed somewhat to ignore the strong buying of the U.S. dollar on Wednesday.

The latest ADP report about the private-sector jobs showed that employment in the Non-farm industry was declined by 20.236 million in April as compared to the decline of 149K in March. Greenback showed a muted reaction to this report by ADP on Wednesday because the figure came in less than the expected decline of 20.500 million, but the decline itself was huge.

Meanwhile, the downward trend of USD/JPY was continuous, which could be attributed to the worsening of US-China relations. After the threats given by the U.S. President Donald Trump to cancel the phase-one deal and impose new tariffs on Chinese goods, the risk-off market sentiment has been triggered and causing a drop in USD/JPY prices.

All of the threats given by Trump came on the back of arguments about the origin of coronavirus and its global spread. The count of jobless people increased to more than 20 million people from the U.S. private sector, and the coronavirus pandemic caused this. The lockdown of economic activities has caused millions of people jobless. As a result, the U.S. dollar extended its decline against the Japanese Yen and moved below 106 level. Furthermore, the downfall in USD/JPY prices on Wednesday below 106 level could also be attributed to the technical selling for crossing the horizontal support near the mid-106 level.

Daily Support and Resistance

R3 107.19
R2 106.91
R1 106.54
Pivot Point 106.26
S1 105.88
S2 105.61
S3 105.23

USD/JPY – Trading Tips

The technical side of USD/JPY is still bearish. However, the pair is showing some bullish correction, which may lead it towards 106.289. The pair has already violated the symmetric triangle, which was extending support at 106.700. As we can see in the 4-hour chart above, the USD/JPY is holding below the symmetric triangle, which is now extending resistance around 106.650. The 50 M.A. is also keeping pressure on the pair around the same level of 106.650. Below this level, we may see a selling trend in the USD/JPY pair until the next target levels of 106.

All the best for today!

Tags EURUSD, Forex, Fundamental Analysis, GBPUSD, Technical Analysis, trading, USDJPY

Forex Signals

GBP/USD Violates Upward Channel – Ready for a Sell Limit?

Post author By Ali B.
Post date 6 May, 2020
No Comments on GBP/USD Violates Upward Channel – Ready for a Sell Limit?

The GBP/USD currency pair failed to stop its 3-day losing streak and still trading below 1.2390 while representing 0.46% declines on the 4-hour timeframe. Sell-off came after the United Kingdom registered the highest death toll in Europe. The receding expectations of the government aid package also keep the currency pair under pressure.

Moreover, the broad-based US dollar recovery rally weighed on the cable pair. At the press time, the GBP/USD currency pair is currently trading at 1.2435 and consolidates in the range between the 1.2425 – 1.2450. However, traders are cautious about placing any strong positions as they are keenly awaiting for the upcoming final reading of April month UK Constriction PMI.

As per the latest report, the UK reported the highest death toll in Europe by rose above Italy’s 29,315 figures with 29,427. As in result, the Tory government get pressurized and could face additional criticism. As we know, the UK government is already criticized massively about the shortage of medical supplies, falling below testing targets, and a lack of clear guidelines for lockdown exit as well.

On the technical front, the GBP/USD pair has violated the upward channel on the 4-hour timeframe. The channel was supporting the pair around 1.2427 level, which Cable violated via closing a bearish engulfing candle. At the same time, the 50 EMA also extends resistance around 1.2425 area, and below this, the pair has the potential to drop until the next target level of 1.2318 level and even below this until 1.2246. Considering this, we should wait for a slight retracement in Sterling, and it’s worth placing a sell limited instead of entering a sell trade right away.

Entry Price: Sell Limit at 1.2418

Take Profit 1.2318

Stop Loss 1.2498

Risk/Reward 1.25

Profit & Loss Per Standard Lot = -$600/+$1000

Profit & Loss Per Micro Lot = -$‭‭60/+$100

Tags Forex, GBPUSD

Forex Market Analysis

Daily F.X. Analysis, May 06 – Top Trade Setups In Forex – Eyes on Services PMI Figures!

Post author By Ali B.
Post date 6 May, 2020
No Comments on Daily F.X. Analysis, May 06 – Top Trade Setups In Forex – Eyes on Services PMI Figures!

The U.S. dollar was also supported by the re-opening of economies by many countries, including several states of the U.S., which resulted in the risk-on sentiment in the market. Meanwhile, the announcement Trump made against China about imposing tariffs in case China fails to meet the condition of buying U.S. goods worth 200$. On Wednesday

Economic Events to Watch Today

EUR/USD – Daily Analysis

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

At 11:45 GMT, the French Government Budget Balance by the French Treasury Agency was released, which showed a deficit of 52.5B. At 12:00 GMT, the Spanish Unemployment Change fell short of expectations of 500K and showed that during April, 282.9K people were jobless. At 14:00 GMT, the Producer Price Index for March showed a decline of 1.5% against the expected decline by 1.3%.

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

U.S. dollar was also supported by the re-opening of economies by many countries, including several states of the U.S., which resulted in the risk-on sentiment in the market. Meanwhile, the announcement Trump made against China about imposing tariffs in case China fails to meet the condition of buying U.S. goods worth $200.

The renewed fears of a trade war between China & the U.S. also helped the greenback to gain traction against its rival currency EUR, and hence, the EUR/USD pair declined on Tuesday. Strong U.S. dollar amid better than expected economic data along with the weak EUR due to German court ruling on Tuesday caused EUR/USD pair to drop to 1.08257 level.

Daily Support and Resistance

R3 1.0927
R2 1.0921
R1 1.0912

Pivot Point 1.0906

S1 1.0896
S2 1.0891
S3 1.0881

EUR/USD– Trading Tips

The EUR/USD price trading slightly bearish falling to 1.0837 level after violating the upward trendline at 1.0889. On the 4 hour chart, the EUR/USD has formed a strong bearish engulfing candle, which is proposing selling bias among traders. Typically such a pattern reveals that buyers are weakened, and sellers may control the market. On the downside, the EUR/USD may encounter next support around 1.0835 level and violation of which can open further opportunity for selling until 1.07600 level.

GBP/USD – Daily Analysis

The GBP/USD is currently trading at 1.2428 and consolidates in the range between the 1.2410 – 1.2440. However, the traders are cautious about placing any position due to mixed market sentiment ahead of the U.S. Advance Nonfarm Payroll data, which is coming out during the New York session today.

Furthermore, the Bank of England will hold its official monetary policy meeting in the coming Thursday this week, and investors will be waiting for it. The BoE is expected to keep its interest rates unchanged at 0.10%. However, the speech and briefing will be new to Pound traders.

The pair GBP/USD roughly made a move on Tuesday and rose about only 0.05%. However, Cable has the potential to move in an upward direction and give a strong performance in the coming months. The U.K. & the U.S. talks will take effect from today over the matter of post-Brexit trade deal with E.U. It should be noted that this deal could help economies to recover from the COVID-19 pandemic.

On Tuesday, the International Trade Secretary Liz Truss started the trade talks via video conference with the U.S. trade representative Robert Lighthizer. Pound traders will keep an eye on the talks for further investment.

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

Daily Support and Resistance

R3 1.2597
R2 1.255
R1 1.2497

Pivot Point 1.2451

S1 1.2398
S2 1.2352
S3 1.2299

GBP/USD– Trading Tip

On Wednesday, the GBPUSD pair unchanged and holding mostly above 1.2435, testing a triple bottom pattern around 1.2425. The recent Doji pattern on GBP/USD pair is suggesting chances of bullish correction over 1.2425 support level. This may lead the GBP/USD prices towards 1.2515 level. On the lower side, the violation of 1.2420 support can lead the Sterling prices towards the next target level of 1.2316. Overall, the trading bias of GBP/USD is neutral right now, but the violation of 1.2420 can drive selling until the next support level of 1.2345 and 1.2310 level today.

USD/JPY – Daily Analysis

The USD/JPY currency pair finally broke out of trading ranges to trade at the 106.530marksk and recovered almost 25 pips from the initials low. The risk-on market sentiment is keeping the Japanese yen under pressure and provided support to the pair. On the other hand, the broad-based U.S. dollar weakness kept a lid on any gains in the currency pair.

The USD/JPY is trading at 106.35 and is consolidating in the range between the 106 – 106.80. However, traders are cautious about placing any strong position ahead of the fresh catalyst. The reason behind the recovery of the risk sentiment is the sign of easing lockdowns, which provided a positive mood around the equity markets. As in result, the Japanese yen became weaker in the wake of decrease safe-haven demand and seen as a key factor behind the pair’s modest uptick.

Moreover, a drop in the rate of virus-led fatalities has also helped in risk recovery sentiment. At the USD front, the U.S. dollar lost its bullish traction and struggled to gain any follow-through traction on Tuesday. The weak U.S. dollar was considered as a barrier to restrict currency pair’s gains at least for now.

Anyhow, the currency pair stopped its 2-day decline streak, and now it will be interesting to see if the buyers can maintain the move due to the concerns about a US-China spat about the origin of the coronavirus.

Looking forward, the market traders will now keep their eyes on the U.S. economic docket, which will release the ISM Non-Manufacturing PMI. This coming data will likely influence the USD price moves and produce some short-term trading opportunities.

Daily Support and Resistance

R3 107.36
R2 107.14
R1 106.86

Pivot Point 106.64

S1 106.37
S2 106.14
S3 105.87

USD/JPY – Trading Tips

The technical side of USD/JPY has turned bearish as the pair continues to trade bearish after violating the symmetric triangle support level of 106.700. As we can see in the 4-hour chart above, the USD/JPY pair has crossed below the symmetric triangle, which is now extending resistance around 106.650. The 50 M.A. is also keeping pressure on the pair around the same level of 107.050. Below this level, we may see a selling trend in the USD/JPY pair until the next target levels of 106

All the best for today!

Tags Daily Brief, EURUSD, Forex, Fundamental Analysis, GBPUSD, Technical Analysis, trading, USDJPY

Forex Market Analysis

Daily F.X. Analysis, May 04 – Series of E.U. Manufacturing PMI In Highlights!

Post author By Ali B.
Post date 4 May, 2020
No Comments on Daily F.X. Analysis, May 04 – Series of E.U. Manufacturing PMI In Highlights!

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

Economic Events to Watch Today

EUR/USD – Daily Analysis

The EUR/USD currency pair stopped its three-day winning streak and dropped to 1.0936 while representing 0.33% declines on the day mainly due to the broad-based U.S. dollar strength in the wake of risk-off market sentiment. However, the reason for the risk-off market sentiment could be attributed to the intensifying trade war between the U.S. and China.

The EUR/USD is trading at 1.0936 and consolidates in the range between the 1.0935 – 1.0975. As we all well aware that the currency pair rose 0.48%, 0.75%, and 0.24% on Wednesday, Thursday, and Friday, respectively, but failed to extend its bullish rally on the first day of trading this week.

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

Furthermore, the President of the United States, Donald Trump, on Friday, announced to punish China for not holding the virus in its Wuhan city and mishandling the coronavirus outbreak by imposing tariffs. He said that trade relations with China were on his secondary importance now after the coronavirus outbreak. This also helped the EUR/USD pair to move upward.

The EUR was boosted by the hopes and hype of an early reopening of the economy across the globe. The pair EUR/USD was also helped by the developments made in COVID-19 vaccines, which caused the decreased demand for the U.S. dollar as a funding currency. EUR was also supported by the decreasing number of deaths and appearing cases in Germany, Italy, Spain, and France. Overall the EUR/USD pair has recovered from its March corona caused the lowest level of 1.0637 to its multi-week highest of 1.1019 on Friday.

Daily Support and Resistance

R3 1.1005
R2 1.0993
R1 1.0977

Pivot Point 1.0965

S1 1.095
S2 1.0937
S3 1.0922

EUR/USD– Trading Tips

On Monday, the EUR/USD price is holding at 1.0924 area, after placing a high of 1.0948 during the Asian session. On the 4 hour chart, the EUR/USD has formed a candlesticks pattern three black crows around 1.0927 level. Typically such a pattern shows that buyers are exhausted, and sellers may enter into the market soon. On the lower side, the EUR/USD pair has already completed 38.2% Fibonacci retracement at 1.0920, and now it can go for 50% retracement at 1.0900 mark. Both of the leading indicators are supporting the bullish trend, but a slight retracement can be expected. The resistance is likely to be found around 1.0971 and 1.0992. Consider staying bearish below 1.099 level today.

GBP/USD – Daily Analysis

The GBP/USD failed to stop its Friday’s losses and dropped below 1.2450 level while representing 0.36% losses on the day as the U.S. dollar is benefitting again from the risk-off sentiment in the financial markets. However, the reason behind the risk-off market sentiment is the intensifying trade tussle between the U.S. and China.

The on-going crisis of the UK Tory government about the mishandling of the virus situation also keeps the British Pound under pressure. The GBP/USD currency pair is currently trading at 1.2448 and consolidates in the range between the 1.2440 – 1.2487. On the other hand, the PMI from the U.S. also dropped to its 11 years lowest level at 41.5 and weakened the U.S. dollar across the board. However, the pair GBP/USD ignored US PMI and continued falling on Friday.

As for the news, Boris Johnson’s announcement for coming up with a plan on how to restart the economy next week did not give much impact to GBP. The biggest risks nowadays to the U.K.’s economy and the British Pound include the Brexit & coronavirus.

As for Brexit, both parties Britain and the European Union has its differences in the future relationship. Another challenge of Brexit is the timeline for securing a deal because Johnson has insisted that the transition period will not be extended by his government.

If Johnson will not seek an extension, which can only be applied before June 31, there is a possibility that both sides will not have a deal before the deadline of December. European Union insisted that an agreement of this size needs several years to be hammered.

Daily Support and Resistance

R3 1.2544
R2 1.2524
R1 1.249

Pivot Point 1.247

S1 1.2436
S2 1.2416
S3 1.2382

GBP/USD– Trading Tip

The GBPUSD pair showed strong bearish movement to trade at 1.2445, testing a double top pattern around 1.2425. The recent Doji pattern on GBP/USD pair is suggesting chances of bullish correction over 1.2425 support level. This may lead the GBP/USD prices towards 1.2515 level. On the lower side, the violation of 1.2420 support can lead the Sterling prices towards the next target level of 1.2316. Overall, the trading bias of GBP/USD remains bullish, considering the 50 EMA as it’s keeping the Cable bullish above 1.2420 today.

USD/JPY – Daily Analysis

The USD/JPY pair was closed at 106.903 after placing a high of 107.405 and a low of 106.603. Overall the movement of USD/JPY remained bearish throughout the day. The USD/JPY pair during the America Session started to move upward towards the 107 level but failed to hold and preserve the recovery due to weak PMI.

At 4:30 GMT, the Tokyo Core CPI for the year was released, which showed a decline of -0.1% against the expected 0.1%. At 5:30 GMT, the Final Manufacturing PMI from Japan was released by the Bank of Japan for March, which showed that the manufacturing sector in Japan contracted to 41.9.

It was expected to remain the same as the previous month’s 43.7. The decline in manufacturing activity due to coronavirus pandemic resulted in weak Japanese Yen against the U.S. dollar. As for the U.S. data, at 18:45 GMT, the Final Manufacturing PMI form the U.S. was released, which came as 36.1 against the expectations of 36.9, and it weakened the U.S. dollar. At 19:00 GMT, the ISM Manufacturing PMI for the month of April was released, which was dropped to its 11 years lowest level at 41.5 from the previous month’s 49.1.

The drop in U.S. manufacturing activities due to a pandemic, which disturbed the supply chain across the globe, made the US PMI fell to its records low, and this weakened the U.S. dollar across the board on Friday. The weakened U.S. dollar pulled the pair USD/JPY to 106.6 level at the ending day of the week.

At 19:00 GMT, the Construction Spending from the U.S. also released, which came in as 0.9% against the -3.5% and supported the U.S. dollar. The ISM Manufacturing prices were also increased to 35.5 from the forecasted 30.7. The Wards Total Vehicle Sales during April were recorded as 8.6M against the 7.0M forecasted.

Daily Support and Resistance

R3 108.76
R2 108.14
R1 107.66

Pivot Point 107.03

S1 106.55
S2 105.92
S3 105.44

USD/JPY – Trading Tips

The USD/JPY pair take’s a bearish turn in the wake of mixed sentiment to trade around 106.700. As we can see in the 4-hour chart above, the USD/JPY pair is struggling to cross over the downward trendline, which is extending resistance around 106.950. The 50 EMA is also keeping pressure on the pair around the same level of 107.050. Below this level, we may see a selling trend in the USD/JPY pair until the next target levels of 106.44 and 106. The 50 EMA and MACD are also suggesting selling bias for the USD/JPY pair. Taking a selling trade below 106.950 can be a good idea today.

All the best for today!

Tags Daily Brief, EURUSD, Forex, Fundamental Analysis, GBPUSD, Technical Analysis, trading, USDJPY

Forex Market Analysis

Daily F.X. Analysis, May 01 – Top Trade Setups In Forex – Eyes on U.S. ISM Manufacturing PMI

Post author By Ali B.
Post date 1 May, 2020
No Comments on Daily F.X. Analysis, May 01 – Top Trade Setups In Forex – Eyes on U.S. ISM Manufacturing PMI

The U.S. dollar traded with a selling bias in the wake of weaker economic data. The closely watched Unemployment Claims for a previous week from the United States weighed on the U.S. dollar when it came in as 3839K against the expected 3500K. The Personal Spending for the month of March from the U.S. was declined by -7.5% against the expected decline by -4.8% and added in the weakness of the U.S. dollar.

The Core Price Index for the month of March came in line with the expectations of -0.1% and had a null effect on the U.S. dollar. The Employment Cost for the first quarter of this year came in favor of the U.S. dollar when it exceeded 0.8% against the expectations of 0.7%. Later today, the market is expected to show thin volatility in the wake of Labor day holiday. However, investors will be focusing on the ISM Manufacturing PMI figures from the United States to drive further price action in the market.

Economic Events to Watch Today

EUR/USD – Daily Analysis

The direct currency pair EUR/USD surged dramatically to close the day at 1.09517, having placed a high of 1.09725 and a low of 1.08327 yesterday. The ECB held its rates unchanged on Thursday and said that it expects the rates to remain at the present level or lower levels until the inflation of the Eurozone meet the level or reach near the projection of 2%. ECB also said that it was ready to adjust all of its instruments to achieve its projected aim of inflation in a sustained manner.

The Euro gained bullish momentum, although French Flash GDP for the First Quarter dropped more than expectations. It was expected to decline by -4.0 % in the first quarter of this year, but the results showed that the actual drop in French Flash GDP was recorded as -5.8%. While the German Retail Sales data decline by -5.6% against the expectations of -8.1%, it was in favor of the single currency Euro as the actual drop in German Retail Sales was less than its forecasted value.

At 11:45 GMT, the French Consumer Spending in the month of March was dropped by -17.9%, which were assumed to be dropped by -5.7%, and hence it weighed on single currency Euro. The French Prelim Consumer Price Index for the month of April came in favor of Euro as 0.1%, which was expected to decline by -0.2%.

The Spanish Flash Gross Domestic Product (GDP) for the First Quarter of year also dropped more than expected and weighed on Euro. The drop-in Spanish GDP was recorded as -5.2% at 12:00 GMT, whereas it was expected to drop by -4.2%. The Spanish Flash Consumer Price Index (CPI) for the year also showed a decline in April by -0.7% when it was expected as-0.5% and weighed on Euro currency.

The single currency Euro remained supportive by the data and ECB’s decisions on Thursday and gave strength to EUR/USD pair. Though the quarterly GDP of the Eurozone dropped to its lowest level since the records, the EUR/USD pair still managed to remain bullish throughout the day.

Daily Support and Resistance

R3 1.115
R2 1.1062
R1 1.1009

Pivot Point 1.0921

S1 1.0869
S2 1.078
S3 1.0728

EUR/USD– Trading Tips

On Friday, the EUR/USD price is holding at 1.0944 area, after placing a high of 1.0973 during the U.S. session on Thursday. On the 4 hour chart, the EUR/USD has formed a candlesticks pattern hanging man around 1.0955 level. Typically such a pattern shows that buyers are exhausted, and sellers may enter into the market soon. On the lower side, the EUR/USD pair can go for completing 38.2% Fibonacci retracement at 1.0920 and 50% retracement at 1.0900 mark. The trading sentiment for the EUR/USD continues to be bullish, especially after the bullish crossover of 50 EMA and MACD. Both of the leading indicators are supporting the bullish trend, but a slight retracement can be expected. The resistance is likely to be found around 1.0971 and 1.0992. Consider staying bearish below 1.099 level today.

GBP/USD – Daily Analysis

During Thursday’s Asian session, the GBP/USD is trading slightly bearish around 1.2562, maintaining the overall trading range of 1.2644 to 1.2525. Most of the buying triggered in the wake of weaker U.S. Jobless Claims figures

The U.K. Prime Minister, Boris Johnson, informed that the latest figure of 81,011 tests was hopeful, which were conducted on Wednesday, close to the government target of 100,000 tests per day by the end of April. He also said to the business community that he acknowledge their patience but informed that they have to keep going the way they are doing business now for the time being.

On the other hand, surgeons across the U.K. have warned that if the U.K. comes out of the lockdown too soon, it will cause the death of thousands. The Royal College of surgeons urged Prime Minister Boris Johnson to consider the service that saved his life when discussing the lifting of restrictions from lockdown.

Furthermore, there was no economic data or major event from the U.K. side, so the movement of the GBP/USD pair remained solely on USD. The U.S. dollar remained weak throughout the day because of poor economic data on Thursday.

The unemployment claims for the previous week from the U.S. were recorded as 3839K against the expectations of 3500K. An increased number of unemployed people weighed on the U.S. dollar and helped the pair GBP/USD to move in an upward direction and close the month with a bullish candle.

Daily Support and Resistance

R3 1.2896
R2 1.2769
R1 1.2682

Pivot Point 1.2555

S1 1.2467
S2 1.2341
S3 1.2253

GBP/USD– Trading Tip

The GBPUSD pair showed strong bullish movement to trade at 1.2540 after making a double top pattern around 1.2644. The recent bearish engulfing pattern on GBP/USD pair suggesting chances of selling in Sterling. On the lower side, the GBP/USD may find support around 1.2520. Below this, the GBP/USD prices have the potential to go after 1.2470.

Overall, the trading bias of GBP/USD remains bullish, considering the 50 EMA and MACD, both of the indicators are supporting selling bias. Consider staying bullish above 1.2510 and bearish trades below 1.2638 level today.

USD/JPY – Daily Analysis

The USD/JPY pair was closed at 107.169 after placing a high of 107.497 and a low of 106.404. Overall the movement of USD/JPY remained Bullish throughout the day. The USD/JPY pair posted gains on Thursday despite the weakness of the U.S. dollar across the board amid poor than expected economic data. Throughout the day, the USD/JPY pair moved back and forth but managed to post gains in the ending day of the month.

On Thursday, Federal Reserve announced to expand the scope of its main street lending in order to support the small and medium-sized businesses by giving them credit. The scheme would now provide the credit flow to the financially sound small & medium-sized companies which were in good condition before the pandemic.

Federal Reserve announced to allow finance to companies with up to 15,000 employees and $5 Billion in revenue, which was previously set for companies with up to10,000 employees and $2.5 Billion in revenue during the period of the pandemic, which affected the business activity across the United States.

At 17: 30 GMT, the closely watched Unemployment Claims for a previous week from the United States weighed on U.S. dollar when came in as 3839K against the expected 3500K. The Personal Spending for the month of March from the U.S. was declined by -7.5% against the expected decline by -4.8% and added in the weakness of the U.S. dollar.

Daily Support and Resistance

R3 108.76
R2 108.14
R1 107.66

Pivot Point 107.03

S1 106.55
S2 105.92
S3 105.44

USD/JPY – Trading Tips

The USD/JPY pair take’s a bullish turn in the wake of risk-on sentiment to trade around 107.180. As we can see in the 4-hour chart above, the USD/JPY pair is struggling to cross over the downward trendline, which is extending resistance around 107.250. The 50 EMA is also keeping pressure on the pair around the same level of 107.250. Below this level, we may see a selling trend in the USD/JPY pair until the next target levels of 106.99 and 106.960. The 50 EMA and MACD are also suggesting selling bias for the USD/JPY pair. Taking a selling trade below 107.350 and buying above 107.030 can be a good idea today.

All the best for today!

Tags Daily Brief, EURUSD, Forex, Fundamental Analysis, GBPUSD, Technical Analysis, trading, USDJPY

Forex Market Analysis

Daily F.X. Analysis, April 30 – Top Trade Setups In Forex – Brace for ECB Rate Decision!

Post author By Ali B.
Post date 30 April, 2020
No Comments on Daily F.X. Analysis, April 30 – Top Trade Setups In Forex – Brace for ECB Rate Decision!

On the forex front, the ICE U.S. Dollar Index dropped 0.4% on the day to a two-week low of 99.48, posting a four-day decline. The European Central Bank will announce its interest rates decision (deposit facility rate unchanged at -0.5% expected). The European Commission will post 1Q GDP (-3.4% on year expected) and March jobless rate (7.8% expected).

On the forex front, the ICE U.S. Dollar Index fell 0.4% on the day to a two-week low of 99.48, posting a four-day decline. The European Central Bank will announce its interest rates decision (deposit facility rate unchanged at -0.5% expected). The European Commission will post 1Q GDP (-3.4% on year expected) and March jobless rate (7.8% expected).

The U.S. Labor Department will release initial jobless claims in the week ended April 25 (3.5 million expected). The Commerce Department will report March’s spending (-5.0% on month expected) and personal income (-1.5% on month expected). The Market News International will release April Chicago PMI (37.7 expected).

Economic Events to Watch Today

EUR/USD – Daily Analysis

The EUR/USD soared over 0.5% to 1.0876. The economic figures revealed that the eurozone’s Economic Confidence Index slipped to 67.0 in April (73.1 expected) from 94.2 in March. Meantime, traders are awaiting the European Central Bank to maintain its key rates unchanged later today. Also, the eurozone’s first-quarter GDP (-3.4% on year estimated) and March jobless rate (7.8% expected) will be reported.

At the USD front, the dollar index’s (DXY) bounce from the 13-day low of 99.45 reached during Tuesday’s American trading hours, and it ran out of steam near 99.90 early on Wednesday. It’s mostly because both the S&P 500 futures and Asian stocks climbed, as in result greenback is losing its haven demand.

On the flip side, the European Central Bank will likely hold its policy unchanged and show a willingness to give more monetary stimulus if required. The EUR will likely give importance to the ECB’s moves on sentiment than traditional monetary policy signals.

At the USD front, the monthly safe-haven demand for the U.S. dollar also kept currency pair under pressure during the April month. The U.S. Dollar Index hit a daily low at 99.54 earlier in the morning but remained above Tuesday’s lows. Equity prices held on to gain.

At the coronavirus front, the number of confirmed coronavirus cases rose to 159,119, with a total of 6,288 deaths reported as per the German disease and epidemic control center report. While. The cases rose by 1,478 in Germany, the daily rate of increase shows rise to 0.9% from 0.8% on Wednesday. The death losses rose by 173 vs. 202 seen a day before.

Traders will keep their focus on the Eurozone CPI and GDP data ahead of the ECB policy decision. The coronavirus headlines and U.S. dollar dynamics could entertain the traders during the day ahead.

Daily Support and Resistance

S1 1.0774
S2 1.082
S3 1.0847

Pivot Point 1.0867

R1 1.0894
R2 1.0913
R3 1.0959

EUR/USD– Trading Tips

The technical side of the EUR/USD is more or less the same as yesterday. The EUR/USD is trading bullish around 1.0877 as the U.S. dollar seems to face bearish pressure due to dovish FOMC. The EUR/USD has the potential to go after 1.0882, and bullish breakout of this level may drive EUR/USD prices further higher until the next resistance level of 1.0960.

The trading sentiment for the EUR/USD continues to be bullish, especially after the bullish crossover of 50 EMA and MACD. Both of the leading indicators are supporting bullish trend with immediate support around 1.0814. We should consider taking buying trades above 1.0840 today.

GBP/USD – Daily Analysis

During Thursday’s Asian session, the GBP/USD currency pair extended its recovery moves from 1.2430 to 1.2470 but still considered bearish and trading below the 1.2500 level while representing 0.05% losses on the day mainly due to the broad-based U.S. dollar recovery pullback. The persistence criticism on Tory government policymakers’ performance about securing the personal protective equipment keeps the British Pound under pressure.

The GBP/USD is currently trading at 1.2478 and consolidates in the range between the 1.2429 – 1.2485. However, traders are cautious about placing any strong position ahead of coronavirus briefings by the UK PM Boris Johnson.

The Tory leader failed to head any daily coronavirus briefings even after the UK PM Boris Jonson returned to the office. Whereas, the reason behind the British PM Johnson’s little presence yesterday could be the news of his fiancée giving birth to a baby boy. On the other hand, the United Kingdom leader met with opposition Labour Party leader Keir Starmer and discussed the proceedings to combat the crisis.

The Tory party has been under pressure mainly due to the latest coronavirus report, which shows the U.K. as having the second-highest death toll in Europe. As well as, the criticism about the policymakers’ performance on securing the personal protective equipment (PPE) added further pressure on the Tory government. Despite this, the UK Tory government still claims to be on the top of performance while showing a coronavirus tracking app that warns the user when the contact with peoples infected by COVID-19,

On the flip side, the Foreign Secretary Dominic Raab said that the U.K. must pass and secure a Brexit deal by the end of the year to provide businesses, and this will be the best chance to ‘bouncing back’ economy from the coronavirus pandemic.

At the US-China front, U.S. President Donald Trump’s fueled fresh trader war between China and the United States, which sent the currency pair lower as the dollar caught bids in the wake of safe-haven demand. On the other hand, the Fed’s dovish pause and positive updates on the virus medicine have weighed on the U.S. dollar previously.

Daily Support and Resistance

S1 1.2315
S2 1.2371
S3 1.24

Pivot Point 1.2427

R1 1.2456
R2 1.2483
R3 1.2539

GBP/USD– Trading Tip

The GBP/USD continues to trade upward around 1.2479 area, as it’s maintaining a fresh trading range of 1.2525 – 1.2396. The GBP/USD has developed a bullish channel, which is supporting it around 1.2396 along with resistance around 1.2501. On the higher side, a bullish breakout of 1.2520 opens up further room for buying until 1.2560 and 1.2626 level.

The GBP/USD pair is holding a buying zone, above 50 EMA, which is also supporting the cable around 1.2409. Since the MACD is holding above 0, which demonstrates that one should be looking to enter a buying trades in the GBP/USD pair. Consider staying bullish above 1.2430 and bearish trades below 1.2520 level today.

USD/JPY – Daily Analysis

The USD/JPY lost 0.2% to trade around 106.61. The economic figures showed that Japan’s industrial production fell 3.7% on month in March, which is less than expectations of -5.0%, and retail sales declined by 4.5%. The currency pair failed to cheer the Japanese yen’s weakness and dropped to 6-weeks low yesterday.

The USD/JPY is trading at 106.64 and consolidates in the range between the 106.39 – 106.89. Whereas, the safe-haven demand for the U.S. dollar continues to lose due to risk-on sentiments in the stock market amid hopes of re-opening of the economies in Australia, New Zealand, and parts of Europe.

The currency pair continues to follow the broad-based U.S. dollar directions so far this week, with the latest stop in the dollar decline offering some support. The U.S. dollar index trades at 99.70 after hitting a daily low of 99.63.

The reason behind the risk-on market sentiment could also be the upbeat comments from the BOJ Governor. The Bank of Japan (BOJ) Governor Haruhiko Kuroda said that Japan’s financial system remains firm because a whole as bank groups have satisfactory capital buffers. Lastly, weakness in the U.S. dollar is also weighing on the USD/JPY. As expected, the Federal Reserve kept its benchmark interest rates unchanged at 0.00%-0.25%. The central bank acknowledged that the coronavirus pandemic is posting a considerable risk to the medium-term outlook for the economy.

Daily Support and Resistance

R3 108.1
R2 107.72
R1 107.3

Pivot Point 106.93

S1 106.51
S2 106.14
S3 105.72

USD/JPY – Trading Tips

The USD/JPY pair has traded mostly in line with the forecast to drop from 106.980 level to 106.350 level. At the moment, the USD/JPY pair is trading at 106.650, gaining immediate support around 106.350, and violation of this level can extend selling bias until 105.850. On the 4 hour chart, we can see the USD/JPY pair is holding below descending triangle pattern, which may keep the pair in a bearish mode under 106.980 resistance. At the same time, the 50 EMA and MACD are also suggesting selling bias for the USD/JPY pair. Taking a selling trade below, 106.850 seems to be a good idea today.

All the best for today!

Tags Daily Brief, EURUSD, Forex, Fundamental Analysis, GBPUSD, Technical Analysis, Trade Setup, trading, USDJPY

Forex Market Analysis

Daily F.X. Analysis, April 29 – Top Trade Setups In Forex – Eyes on FOMC & U.S. GDP Today!

Post author By Ali B.
Post date 29 April, 2020
No Comments on Daily F.X. Analysis, April 29 – Top Trade Setups In Forex – Eyes on FOMC & U.S. GDP Today!

On the forex front, the ICE U.S. Dollar Index slipped 0.1% on the day to 99.96 on Tuesday, as investors awaited U.S. first-quarter GDP data and the Federal Reserve’s interest rates decision due later today. The U.S. Federal Reserve will announce its interest rate decision (hold at 0.00% – 0.25% expected). The European Commission will post the Eurozone’s April Economic Confidence Index (73.1 expected).

Moreover, the European Central Bank will report the Eurozone’s M3 money supply in March (+5.5% on-year expected).

Economic Events to Watch Today

EUR/USD – Daily Analysis

Today in the early Asian session, the EUR/USD currency pair erasing yesterday’s losses and crossed above key support at 1.0809 while representing a 0.27% gains on the day mainly due to the broad-based U.S. dollar weakness in the wake of risk-on market sentiment.

The better mood in the risk market supports the shared currency. At the time of writing, the EUR/USD currency pair is currently trading at 1.0847 and consolidates in the range between the 1.0818 – 1.0855. However, the traders are cautious about placing nay strong position ahead of the all-important Federal Reserve (Fed) rate decision.

The greenback dropped to multi-week lows against the JPY currency and faced notable declines against the Aussie dollar and the New Zealand dollar mainly due to the better sentiments in the risk market. However, the reason behind the renewed risk-on market sentiment could be the lack of negative updates related to coronavirus. The slight stability in the oil market also keeps the market calm.

Later today, the U.S. Federal Reserve will announce its interest rate decision (hold at 0.00% – 0.25% expected). The U.S. Commerce Department will post 1Q annualized GDP (-4.0% on quarter). The National Association of Realtors will publish pending home sales for March (-13.6% on month expected).

Daily Support and Resistance

S1 1.0682
S2 1.0761
S3 1.0792

Pivot Point 1.084

R1 1.087
R2 1.0919
R3 1.0998

EUR/USD– Trading Tips

The EUR/USD is trading bullish at 1.0868 as the U.S. dollar seems to face bearish pressure ahead of Fed fund rate decision. On the higher side, the EUR/USD has the potential to go after 1.0882, and bullish breakout of this level may drive EUR/USD prices further higher until the next resistance level of 1.0960. The overall trading bias continues to be bullish, especially after the bullish crossover of 50 EMA and MACD. Both of the leading indicators are supporting bullish trend with immediate support around 1.0814. We should consider taking buying trades above 1.0840 today.

GBP/USD – Daily Analysis

During Wednesday’s Asian session, the GBP/USD currency pair flashing green and taking bids near the 1.2475 while representing 0.40% gains on the day mainly due to broad-based U.S. dollar fresh weakness in the wake of renewed risk-on sentiment in the market. The currency pair erased Tuesday’s losses, which were caused by doubt regarding the U.K. government’s coronavirus (COVID-19) figures.

Currently, the GBP/USD is trading at 1.2475 and consolidates in the range between the 1.2423 – 1.2486. However, the pre-FOMC and US GDP sentiments are boosting the currency pair’s strength.

On Tuesday, the official death toll of 552 shows further flattening of the virus curve in the U.K., while the update from the Office of National Statistics (ONS) indicates that the actual death toll in England to April 17 was 54% higher than the government released data report.

On the other hand, the U.S. dollar hit the multi-week lows against the JPY currency and suffered notable declines against the Aussie dollar and the New Zealand dollar mainly due to lack of its demand ahead of FOMC and U.S. GDP. The Dollar index’s (DXY) climbed from the 13-day low of 99.45 reached during Tuesday’s American trading hours ran out of steam near 99.90 early Wednesday, as the S&P 500 futures and Asian stocks rose, as in result greenback is losing its haven demand.

At the Brexit front, the report came that the discussions between the European Union (E.U.) and the U.K. regarding new trade arrangements from next year continue to postponed mainly due to disagreements and the coronavirus crisis. Besides this, the U.K.’s international trade secretary Liz Truss said that the E.U. is expected to stick under pressure and agree to a post-Brexit trade deal with the U.K.

Daily Support and Resistance

S1 1.2315
S2 1.2371
S3 1.24

Pivot Point 1.2427

R1 1.2456
R2 1.2483
R3 1.2539

GBP/USD– Trading Tip

The GBP/USD is exhibiting bullish bias around 1.2449 area, as it’s maintaining a fresh trading range of 1.2525 – 1.2396. On the 4 hour chart, the cable has also formed a bullish channel, which is supporting it around 1.2396 along with resistance around 1.2501. On the higher side, a bullish breakout of 1.2520 opens up further room for buying until 1.2560 and 1.2626 level.

The GBP/USD pair is holding a buying zone, above 50 EMA, which is also supporting the cable around 1.2409. Since the MACD is holding above 0, we should look for buying trades in the GBP/USD pair. Let’s look for buying trades above 1.2410 and bearish trades below 1.2520 level today.

USD/JPY – Daily Analysis

During the Asian session, the USD/JPY currency pair extended its 6-day losing streak and dropped to 106.41 while representing 41% declines on the day mainly due to broad-based U.S. dollar weakness in the wake of the risk-on market sentiment. However, the currency pair failed to cheer Japanese yen weakness and dropped to 6-weeks low. As of writing, the USD/JPY currency pair is currently trading at 106.44 and consolidates in the range between the 106.39 – 106.89.

Whereas, the safe-haven demand for the U.S. dollar continues to lose due to the better mood in the equity market as hopes of re-opening of the economies in Australia, New Zealand, and parts of Europe boosting the market sentiment. Moreover, the dismal U.S. C.B. Consumer Confidence data, as well as the hopes of sharp U.S. economic contraction, keeps the U.S. dollar under pressure.

The reason behind the risk-on market sentiment could also be the upbeat comments from the BOJ Governor. The Bank of Japan (BOJ) Governor Haruhiko Kuroda said on Tuesday that Japan’s financial system remains firm because a whole as bank groups have satisfactory capital buffers.

Daily Support and Resistance

R3 108.1
R2 107.72
R1 107.3

Pivot Point 106.93

S1 106.51
S2 106.14
S3 105.72

USD/JPY – Trading Tips

On the technical front, the USD/JPY was facing solid support around 107, the round figure, but it got violated over increased demand for safe-haven yen. At the moment, the USD/JPY is facing strong resistance around 107, along with support at 106.500, but this support seems weaker, and we may see USD/JPY prices falling further until 106.240 later today. Looking at the leading indicators on the 4-hour timeframe, we may see USD/JPY prices are holding below 50 periods EMA, and at the same time, the MACD is also holding into a negative zone. Let’s look for selling trades below 106.800 today.

All the best for today!

Tags Daily Brief, EURUSD, Forex, Fundamental Analysis, GBPUSD, Technical Analysis, trading, USDJPY

Forex Options

FX option expiries for Apr 28 NY cut

Post author By Kevin O'Sullivan
Post date 28 April, 2020
No Comments on FX option expiries for Apr 28 NY cut

FX option expiries for Apr 28 NY cut

28 April 2020, 08:35

FX option expiries for Apr 28 NY cut at 10:00 Eastern Time, via DTCC, can be found below.

EUR/USD: EUR amounts

1.0820 557m
1.0980 508m

USD/JPY: USD amounts

107.50 3.2bn
107.99 428m

GBP/USD: GBP amounts

1.2400 291m

NZD/USD: NZD amounts

0.6050 352m

Tags EURUSD, Forex, fx options, GBPUSD, NZDUSD, options, trading, USDJPY

Forex Market Analysis

Daily F.X. Analysis, April 24 – Top Trade Setups In Forex – Retail Sales & Business Climate Ahead!

Post author By Ali B.
Post date 24 April, 2020
No Comments on Daily F.X. Analysis, April 24 – Top Trade Setups In Forex – Retail Sales & Business Climate Ahead!

The U.S. dollar soared versus major currencies despite bounce off in the crude oil prices, at the same time, the U.K. Brent also made some bullish recovery. The U.S. House of Representatives assumes to establish a nearly $500 billion coronavirus relief bill, which once again can trigger safe-haven demand of the U.S. dollar.

During the Asian session, the U.S. dollar is headed for its best week since early April, as plunging oil prices pressures on commodity currencies and division over Europe’s emergency fund dragged on the euro. The market will mostly move based upon U.K. retail sales and German business climate figures today.

Economic Events to Watch Today

EUR/USD – Daily Analysis

The EUR/USD has traded bearishly at 1.0771 level after having violated the symmetric triangle pattern, which was supporting it around 1.0850. A daily close under 1.0783 level is likely to drive more sell-off below this level. Traders seem worries about potential recession since the release of worse than expected PMI figures.

The drop in business activity not only in Germany but also in overall Europe has expanded in April, with both services and manufacturing witnessing a historic dip in output as a consequence of the COVID-19 pandemic and subsequent lockdown.

The headline Flash Germany Composite PMI recorded 17.1 in April, down distinctly from 35.0 in March, and by far, it’s the lowest reading since comparable figures were first collected more than 22 years ago. The preliminary figures were based on replies received between April 7-22. Shutdowns caused by the COVID-19 did not influence the survey response rate.

There remains some uncertainty that Europe is still not ready to deepen fiscal integration, and the finance ministers will likely be unable to give an appropriate fiscal stimulus. As in result, the peripheral bond spreads may widen, which may booster further losses in the EUR/USD currency pair.

The eurozone economy experienced the sheerest declines in business activity and employment ever registered during April as a consequence of actions taken to restrain the coronavirus break, according to provisional PMI survey figures. Later today, the focus will remain on the German Ifo Business Climate figures to determine further trends in the EUR/USD pair.

Daily Support and Resistance

R3 1.0917
R2 1.0881
R1 1.0828

Pivot Point 1.0792

S1 1.0739
S2 1.0703
S3 1.065

EUR/USD– Trading Tips

On Friday, the EUR/USD pair continues trading in a selling mode around 1.0773, perhaps due to weaker manufacturing and services PMI figures. The overall trading bias continues to be bearish as the EUR/USD prices are holding below 50 EMA, which is extending resistance around 1.0837 level.

On the 4-hour chart, the EUR/USD has violated the symmetric triangle pattern, which is driving the selling trend in the pair. Currently, it’s holding the pair over 1.077, which is the triple bottom level. Above this, a slight bullish recovery can be seen until 1.0850 level. While bearish breakout of 1.0765 level can drive selling until 1.0649 level today, let’s look for selling trades below 1.0770 level today.

GBP/USD – Daily Analysis

The GBP/USD price is consolidating in a narrow trading range of 1.2424 – 1.2300. Sterling’s overall bias remains bearish since the release of manufacturing data. General business shutdowns at local and international levels in reply to the coronavirus infection 2019 (COVID-19) pandemic unsurprisingly ended in a speedy decline in U.K. private-sector production during April.

The latest Markit report on Flash U.K. manufacturing PMI signaled by far the most robust drop in business activity since comparable figures were first collected over two decades ago. The latest Markit Flash U.K. Manufacturing PMI was recorded between 7-21 April 2020, and shutdowns did not influence the survey response rate in place due to the COVID-19 break.

The United States President Donald Trump continues to push for the economic re-start, whereas giving worse warnings to Iran. He indicated a decrease in the further coronavirus outbreak. The GBP/USD currency pair flashing buy and sell, now holding at 1.2345 while reporting 0.07% losses on the day, probably due to the Tory government growing criticism about the mishandling coronavirus crisis.

Daily Support and Resistance

R3 1.0917
R2 1.0881
R1 1.0828

Pivot Point 1.0792

S1 1.0739
S2 1.0703
S3 1.065

GBP/USD– Trading Tip

The GBP/USD showed a slight bullish reversal to place a high around 1.2414, but the bullish trend wasn’t long enough as prices recorded soon. At the moment, the Cable is trading at 1.2347 area, which is also a resistance level extended by the downward channel. The 50 periods EMA also extend resistance at the same level 1.2368. A bullish breakout of 1.2368 level can extend the buying trend until 1.2420 level today. Elsewhere, the support continues to hold around 1.2258 level. The 50 EMA and MACD are both are suggesting selling bias in the Cable. So let’s look for selling trades below 1.2399 and bullish above 1.2420 level today.

USD/JPY – Daily Analysis

On Friday, the USD/JPY is consolidating in a narrow trading range of 108.00 level to 107.500 level, mainly due to the risk-on market sentiment keeps the safe-haven Japanse lower and providing support to the currency pair. The U.S. announced 4.427 million initial jobless claims for the preceding week overnight, with an unparalleled 26 million people dropping their jobs since late March.

At the USD front, the U.S. dollar took bids due to mixed risk sentiment, which is starting to dominate the markets and caused the bearish pressure to remain intact. The U.S. Dollar Index, which dropped below the 100 marks earlier in the day, is up 0.12% on the day at 100.47 and stays on track to close the 4th-straight day in the positive area.

The latest pullback of the U.S. dollar kept a lid on bullish moves in the pair. Currently, the USD/JPY is trading at 107.67 and consolidates in the range between the 107.66 – 107.86. However, investors are cautious and waiting for a fresh catalyst before placing any position.

Whereas, the multiple diverging factors failed to provide any meaningful direction or assist the pair in breaking through a narrow trading band held since the beginning of this week. The reason behind the risk-on market sentiment is the report regarding the passage of another $484 billion U.S. economic support package by the U.S. Senate. While the latest modest recovery in crude oil prices also keeps the market sentiment calm.

Looking ahead, the eyes will remain on the Core Durable Goods Orders m/mas that’s due during the U.S. session in order to forecast further trends in the USD related pairs.

Daily Support and Resistance

S1 105.92
S2 106.84
S3 107.44

Pivot Point 107.76

R1 108.36
R2 108.69
R3 109.61

USD/JPY – Trading Tips

The USD/JPY is mostly trading sideways within a narrow trading range of 108.020 – 107.300 zones. At the moment, it’s holding at 107.597, having formed a descending triangle pattern on the 4-hour timeframe. The triangle pattern is extending resistance around 107.850, along with support around 106.980. If USD/JPY manages to violate the descending triangle pattern, we may see pair dropping towards 106.200. While on the upper side, a bullish breakout of 108 can lead USD/JPY prices towards 109.100. The leading indicator, such as MACD and 50 EMA, are supporting bearish bias in the market today.

All the best for today!

Tags Daily Brief, EURUSD, Forex, Fundamental Analysis, GBPUSD, Technical Analysis, Technical Outlook, USDJPY

Forex Market Analysis

Daily F.X. Analysis, April 22 – Top Trade Setups In Forex -U.K. Inflation Stabilises!

Post author By Ali B.
Post date 22 April, 2020
No Comments on Daily F.X. Analysis, April 22 – Top Trade Setups In Forex -U.K. Inflation Stabilises!

On the forex front, the U.S. dollar gained traction against other major currencies, with the Dollar Index climbing 0.3% on the day to 100.20. The U.S. official data showed that Existing Homes Sales fell to an annualized rate of 5.27 million units in March (5.25 million units expected).

The British Consumer Prices Index (CPI), including owner-occupiers’ housing inflation rate, came out at 1.5% in March 2020. Although it’s down from 1.7% in February 2020, it’s not as bad as investors were expecting considering the lockdown in global markets.

Economic Events to Watch Today

EUR/USD – Daily Analysis

The EUR/USD fell by nearly 0.1% to trade at 1.0865. While Spain’s central bank announced, the country’s GDP could fall by 6.8% to 12.4% this year. Later in the today, the major focus will stay on the German ZEW Current Situation Index for April will be released (-75.0 estimated).

After the Eurozone divided on community debt, most of the analytes are worried that the finance ministers’ may unable to provide a suitable fiscal stimulus to support growth. So, the shared currency could remain under pressure ahead of the Thursday summit.

At the coronavirus front, as per the latest report, the number of confirmed coronavirus cases grew to 145,694, with 4,879 deaths reported in Germany so far. As the cases increased by 2,237 in Germany, a 1.6% rise picking-up pace from Tuesday’s 1.3% increment, the death toll moved sharply up by 281 vs. 194 a day before.

Looking forward, the upbeat Eurozone Consumer Confidence, which is scheduled to release at 14:00 GMT, may put a bid under EUR/USD currency pair. However, the pair trend will remain sluggish until the pair break the trading range of 1.0897 to 1.08616.

Daily Support and Resistance

S1 1.0724
S2 1.0788
S3 1.0823

Pivot Point 1.0852

R1 1.0887
R2 1.0916
R3 1.098

EUR/USD– Trading Tips

On Wednesday, the EUR/USD is trading sideways at 1.0825, as investors seem to wait for a solid reason to enter the market. The overall bias remains bearish as the EUR/USD prices are holding below 50 EMA, which is extending resistance around 1.08945 level. Continuation of a selling trend below 1.08945 level can continue selling until the next support area of 1.0772, but on the way, the pair may find support around 1.0815 level.

The EUR/USD is likely to find support around 1.0772, but below this, the next support prevails around 1.0652 level. The pair may find an immediate resistance level of around 1.09230, where the bullish breakout of this level can extend buying until the next resistance level of 1.1036. Conversely, we should look for selling trades below 1.0894.

GBP/USD – Daily Analysis

The GBP/USD soared 0.3% to trade at 1.2318 as the British Consumer Prices Index (CPI), including owner-occupiers’ housing inflation rate, came out at 1.5% in March 2020. Although it’s down from 1.7% in February 2020, it’s not as bad as investors were expecting considering the lockdown in global markets.

At the USD front, investors prefer to choose the U.S. dollar because of its safe-haven-demand in the market due to the fears of economic fallout, which is caused by the coronavirus outbreak. The dollar index, which measures the worth of the greenback against majors, rose 0.20% to levels above 100.00.

The reason behind the decline in GBP/USD pair could also be the immediate rise in COVID-19 cases, with the curve still not notably peaking. It indicates that there is still a high chance that lockdowns could last longer than expected, while the Bankruptcy and bad loans will likely boost the risk-off sentiment in the market and provide further support to the U.S. dollar again.

Apart from the U.K., U.S. President Donald Trump suggested that approximately 20 states ready for re-open while also showing a willingness to sign the bill that stops immigration into the U.S. for 60 days. As in result, the risk sentiment remains under pressure.

The reason behind the risk-off market sentiment could also be the early Asian news surrounding the U.S. Senate’s passage of $484 billion COVID-19 relief package and BOJ’s likely decline of economic and price forecasts. Moreover, statements from the BOE’s Bailey were also necessary to remark during the early Asian session.

As in result, the U.S. 10-year Treasury yields declined by 2-basis points (bps) to 0.55%, after dropping 4-bps on Tuesday, while the most stocks in Asia-Pacific flashing losses by the pres time.

Daily Support and Resistance

S1 1.1974
S2 1.2148
S3 1.2223

Pivot Point 1.2322

R1 1.2397
R2 1.2496
R3 1.2671

GBP/USD– Trading Tip

Yesterday, the GBP/USD fell sharply to trade at 1.2250 after violating the horizontal support level of 1.2424. On the 4 hour chart, the Cable has closed Doji candle above 1.2250 level can drive bullish bias until 1.2350. On the upper side, the Sterling may find next resistance around 1.2426, it’s the same level that supported the pair previously, and now it’s likely to drive selling bias in the GBP/USD pair. On the lower side, the violation of the 1.2265 level can lead the GBP/USD prices towards 1.2175. The 50 EMA and MACD are both are suggesting selling bias in the Cable. So let’s look for selling trades below 1.2322 and bullish above the same level today.

USD/JPY – Daily Analysis

On Wednesday, the USD/JPY is trading around 107.500 level, mostly exhibiting sideways trading due to a lack of major economic events in the market. The U.S. dollar index slipped to the fresh lows of 100.07 ahead of recovering some ground, still bearish by 0.15% on the day.

The Japanese yen seems to suffer due to a lack of confidence when the state of emergency is being lifted in Japan. While drop-in, the domestic macroeconomic indicators are expected to keep the Japanese yen’s in a bearish mode while maintaining the USD/JPY bullish. Lately, the uptrend in the JPY could be limited due to the forecast of the Bank of Japan (BOJ) support measures to boost funding for the companies due to be announced next week.

The U.S. Treasury prices advanced as investors continued to seek safe-haven assets. The benchmark 10-year U.S. Treasury yield declined to 0.571% from 0.625% Monday.

On the negative side, the greenback gained ground due to the oil price crash triggered a dash for cash. The high uncertainty in the market also boosted the greenback demand. So, if that trend continues during the ay ahead, the yellow metal could come under pressure.

Daily Support and Resistance

S1 105.92
S2 106.84
S3 107.44

Pivot Point 107.76

R1 108.36
R2 108.69
R3 109.61

USD/JPY – Trading Tips

The USD/JPY is trading mostly sideways within a narrow trading range of 108.020 – 107.300 zones. At the moment, it’s holding at 107.597, having formed a descending triangle pattern on the 4-hour timeframe. The triangle pattern is extending resistance around 107.850, along with support around 106.980.

In case, the USD/JPY violates the descending triangle pattern; we may see pair dropping towards 106.200. While on the upper side, a bullish breakout of 108 can lead USD/JPY prices towards 109.100. The leading indicator, such as MACD and 50 EMA, are supporting bearish bias in the market today. Let’s wait for a breakout before taking more trades today.

All the best for today!

Tags cable, Daily Brief, Dollar, Euro, EURUSD, Forex, Fundamental Analysis, GBPUSD, Pound, Support and Resistance, Technical Analysis, trading, USDJPY, yen

Forex Signals

GBP/USD Sideways Channel Breakout – An Update on Signal!

Post author By Ali B.
Post date 21 April, 2020
No Comments on GBP/USD Sideways Channel Breakout – An Update on Signal!

The GBP/USD prices are on a bearish mode, falling from 1.2400 level to 1.23700 area. Overall, the pair was supported around 1.2400 zones, but since this level is already violated, the Cable has strong odds of falling further until the 1.2290 area.

Sterling is getting weaker on the back of Brexit trade negotiations, which have been resumed. These should include another dimension to British Pound trading over the following weeks, with one economist saying markets should “fear” an initial July 01 deadline.

The United Kingdom and Eurozone have until July 01 to allow to prolong the transition phase, which is expected to run out by year-end to reach a free-trade plan. In case, no such extension is granted, economists warn the Pound could come below significant pressure throughout the second half of 2020.

Technically, the GBP/USD pair is trading at 1.2350, and it’s a good thing as we already entered the market at 1.2383 level. The reason behind entering selling trade is the breakout of the sideways trading range of 1.2400 – 1.2500, which got triggered after the release of worse than expected employment report from the United Kingdom. We have placed take profit 1.2323 with a stop loss of around 1.2443.

Entry Price: Sell at 1.2383

Take Profit 1.2323

Stop Loss 1.2443

Risk/Reward 1.00

Profit & Loss Per Standard Lot = -$‭‭600‬/ +$‭600

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

Tags Forex, GBPUSD

Forex Market Analysis

Daily F.X. Analysis, April 21 – Top Trade Setups In Forex – Economic Sentiment in Highlights!

Post author By Ali B.
Post date 21 April, 2020
No Comments on Daily F.X. Analysis, April 21 – Top Trade Setups In Forex – Economic Sentiment in Highlights!

On the forex front, the U.S. dollar firmed against its major peers, with the Dollar Index gaining 0.2% on the day to 99.95. The ZEW survey results of April will be released for Germany (current situation at -75.0, expectations at -42.0 expected) and the Eurozone.

The U.K. Office for National Statistics will report a jobless rate for the three months to February (steady at 3.9% expected). While in the U.S., the National Association of Realtors will report March existing home sales (5.30 million units expected).

Economic Events to Watch Today

EUR/USD – Daily Analysis

European stocks were mostly trading higher, with the Stoxx Europe 600 Index surging 0.7%. Both Germany’s DAX and the U.K.’s FTSE 100 added 0.5%, and France’s CAC was up 0.7%, which are somehow supporting the Euro, the single currency.

As of now, the market participants seem very concerned about the negative impact of the oil prices Monday’s declines and keeps their eyes on it. As in result, the U.S. dollar could continue to gain ground during the Europan trading hours ahead while the S&P 500 futures are now reporting a 0.65% drop.

The additional bearish pressure could arise from President Trump’s decision to delay immigration to the U.S. to control the coronavirus outbreak. Let’s brace to trade ZEW survey results of April will be released for Germany (current situation at -75.0, expectations at -42.0 expected) and the Eurozone.

Daily Support and Resistance

S1 1.0758
S2 1.0813
S3 1.084

Pivot Point 1.0869

R1 1.0896
R2 1.0924
R3 1.098

EUR/USD– Trading Tips

Technically, the EUR/USD is trading with a slightly bearish bias at 1.0825, exhibiting a bearish crossover below 50 EMA, which is now extending resistance around 1.0903 level. Continuation of a selling trend below 1.0903 level can extend selling until the next support area of 1.0772, but on the way, the pair may find support around 1.0815 level. The EUR/USD is likely to find support around 1.0772, but below this, the next support prevails around 1.0652 level. The pair may find an immediate resistance level of around 1.09230, where the bullish breakout of this level can extend buying until the next resistance level of 1.1036. Conversely, we should look for selling trades below 1.0870.

GBP/USD– Daily Analysis

The GBP/USD slid 0.5% to 1.2442. Investors will focus on the U.K. jobless rate for the three months to February due later in the day (steady at 3.9% expected). The United Kingdom and European Union Brexit drama keep moving while the latest news recommending to keep a check of Britain’s £39 billion has also been underlined by the cost of dealing with coronavirus, especially the economic £250 billion rescue package announced by Chancellor Rishi Sunak to protect jobs and businesses.

Later today, the U.S. dollar could continue to gain ground during the Europan trading hours ahead due to high safe-haven demand in the market in the wake of intensifying coronavirus fears while the S&P 500 futures are now reporting a 0.65% drop.

On the other hand, the reason behind the cable’s pair declines could also be the immediate rise in COVID-19 cases, with the curve still not notably peaking. It indicates that there is still a high chance that lockdowns could last longer than expected, while the Bankruptcy and bad loans will likely boost the risk-off sentiment in the market and provide further support to the U.S. dollar again.

Looking forward, traders are keenly waiting for the key U.K. data which is scheduled to release during this day ahead As well as, the coronavirus related headlines also will be key to watch for taking fresh directions in the U.S. dollar.

Daily Support and Resistance

S1 1.2298
S2 1.2374
S3 1.2407

Pivot Point 1.245

R1 1.2483
R2 1.2526
R3 1.2601

GBP/USD– Trading Tip

Taking a look at the 4-hour timeframe, the GBP/USD is trading at 1.2394 level, violating the support level of 1.2400 level. A bearish breakout of 1.2400 support area is expected to trigger a sell-off until 1.2310. The 50 periods EMA is also keeping the GBP/USD pair under pressure while extending resistance around 1.2430. Thus, the bounce off above this level can lead the GBP/USD pair towards the next resistance level of 1.2657. While bearish breakout of 1.2460 can open up further room for selling until the next support area of 1.2220.

USD/JPY – Daily Analysis

On Tuesday, the USD/JPY is trading with a selling bias around 107.350, due to intensifying coronavirus fears as increased risk sentiment is driving the demand for the safe-haven currency. The slump in the Japanese exports for March keeps Japanese yen down, which also supports the currency pair to stay at the upside.

The U.S. dollar extends taking bids mostly due to its safe-haven demand in the wake of intensified coronavirus fears. Considering the fresh report that the United States death toll surged over 40,000, whereas SkyNews mentions the U.K. has a bit over 16,000 people who died from the virus.

Looking forward, the North Korean leader’s health and oil moves will be key to watch, and coronavirus updates could be the driver seat for taking fresh directions. Alongside, the trader will keep their eyes on the U.S. dollar dynamics.

Daily Support and Resistance

S1 105.92
S2 106.84
S3 107.44

Pivot Point 107.76

R1 108.36
R2 108.69
R3 109.61

USD/JPY – Trading Tips

The USD/JPY is trading slightly bearish at 107.339, having formed a descending triangle pattern on the 4-hour timeframe. The triangle pattern is extending resistance around 107.850 along with resistance around 106.980. As we know, the descending triangle pattern usually breakout on the lower side, and if this happens, the violation of 106.980 level may send the USD/JPY currency pair towards 105.850 level.

All the best for today!

Tags Daily Brief, Dollar, Euro, EURUSD, Forex, Fundamental Analysis, GBPUSD, Pound, Price Action, Technical Analysis, trading, USDJPY, yen

Forex Market Analysis

Daily F.X. Analysis, April 20 – Top Trade Setups In Forex – Eurozone Events in Focus!

Post author By Ali B.
Post date 20 April, 2020
No Comments on Daily F.X. Analysis, April 20 – Top Trade Setups In Forex – Eurozone Events in Focus!

On the forex front, the U.S. Dollar Index eased 0.2% on the day to 99.72. On the economic data front, the Conference Board U.S. Leading Index dropped 6.7% on month in March (-7.2% expected). Today, the focus will be on the Eurozone’s economic events, which include the Trade balance, PPI, and current account, and these are due during the European session.

Economic Events to Watch Today

EUR/USD – Daily Analysis

The EUR/USD gained 0.4% to 1.0878 and GBP/USD rebounded 0.3% to 1.2501. The markets are now concerned about extended lockdowns indicating a deeper economic recession than previously forecasted. Moving on, the market sentiment is expected to stay pro-risk during the day ahead.

European stocks rebounded further, with the Stoxx Europe 600 Index gaining 2.6%. Germany’s DAX climbed 3.2%, the U.K.’s FTSE 100 increased by 2.8%, and France’s CAC jumped 3.4%.

The coronavirus outbreak has brought the deep divides among the member states on fiscal spending. Italy and Spain have blamed northern nations led by Germany and the Netherlands – of not doing enough.

Whereas Italy, Spain, France, and some other countries need debt mutualization through corona bonds, Germany and the Netherlands are still not buying the idea of community debt needed to control the economic fallout from the virus outbreak.

Looking forward, as the data calendar is light with no first-tier releases scheduled for release in the Eurozone and the U.S. The traders keep their eyes on the coronavirus related updates for meaningful direction.

Daily Support and Resistance

S1 1.0698
S2 1.0779
S3 1.0826

Pivot Point 1.0859

R1 1.0907
R2 1.094
R3 1.1021

EUR/USD– Trading Tips

On Monday, the EUR/USD is trading sideways at 1.0835, exhibiting a bearish crossover below 50 EMA, which is now extending resistance around 1.0903 level. Continuation of a selling trend below 1.0903 level can extend selling until the next support area of 1.0772, but on the way, the pair may find support around 1.0815 level. The EUR/USD is likely to find support around 1.0772, but below this, the next support prevails around 1.0652 level.

At this moment, the EUR/USD is holding at 1.0835, having an immediate resistance level of around 1.09230, where the bullish breakout of this level can extend buying until the next resistance level of 1.1036. Conversely, we should look for selling trades below 1.0870.

GBP/USD– Daily Analysis

The GBP/USD rebounded 0.3% to 1.2501 and consolidated in the range between the 1.2604 – 1.2450. However, the currency pair traders did not give any major attention to the coronavirus (COVID-19) crisis at home because the cases are comparatively more significant in the U.S.

Moreover, the United Kingdom and European Union Brexit drama keep moving while the latest news recommending to keep a check of Britain’s £39 billion has also been underlined by the cost of dealing with coronavirus especially the economic £250 billion rescue package announced by Chancellor Rishi Sunak to protect jobs and businesses.

On the other hand, U.S. President Donald Trump showed some willingness for another relief plan while also supporting an economic re-open plan.

Looking forward, all traders will keep their eyes on the coronavirus headlines due to a light economic calendar. However, any surprise announcement of stimulus might grab the spotlight.

Daily Support and Resistance

S1 1.2254
S2 1.2365
S3 1.2433

Pivot Point 1.2475

R1 1.2544
R2 1.2586
R3 1.2697

GBP/USD– Trading Tip

The GBP/USD is trading with a neutral bias over 1.2420 support areas to trade around 1.2446. The GBP/USD pair is likely to find support around 1.2420, which is extended by the triple bottom level that we can see on the 4-hour timeframe. A bearish breakout of 1.2425 support area is expected to trigger a sell-off until 1.2210. The 50 periods EMA is also keeping the GBP/USD pair supported around 1.2430. Thus, the bounce off above this level can lead the GBP/USD pair towards the next resistance level of 1.2657. While bearish breakout of 1.2460 can open up further room for selling until the next support area of 1.2220.

USD/JPY – Daily Analysis

The USD/JPY is flashing green and registered fresh gains near the 107.94, mainly due to the broad-based U.S. dollar strength in the wake of intensifying coronavirus fears, keeps the market tone heavy on the day. The slump in the Japanese exports for March keeps Japanese yen down, which also supports the currency pair to stay at the upside. The USD/JPY is trading at 107.84 and consolidates in the range between the 107.50 – 107.94.

At the USD front, the U.S. dollar continues to take bids mainly due to its safe-haven demand in the wake of intensified coronavirus fears. As per the latest report that the United States death toll rose above 40,000, whereas SkyNews mentions the U.K. has a bit over 16,000 people who died from the virus.

On the other hand, the reason behind the fresh risk-off market sentiment is the rise in the coronavirus (COVID-19) related death figures from the U.S. and the U.K. Whereas, the lack of clarity on the easing lockdown keeps the investors confused, as the new infections continue to rise globally.

Daily Support and Resistance

S1 105.92
S2 106.84
S3 107.44

Pivot Point 107.76

R1 108.36
R2 108.69
R3 109.61

USD/JPY – Trading Tips

The technical side of the USD/JPY has not changed much as it’s price continues to hold above the triple bottom area of 107.039. The MACD and 50 periods of EMA are suggesting bearish bias. Therefore, a downward breakout of this level can extend selling until 105.300, while the resistance holds around 108.640. We should look for selling trades below 107 to target 106.630, and buying can be seen above the same 107.360 level today.

All the best for today!

Tags Daily Brief, EURUSD, Forex, Fundamental Analysis, GBPUSD, Technical Analysis, trading, USDJPY

Forex Market Analysis

Daily F.X. Analysis, April 17 – Top Trade Setups In Forex – Risk-on Sentiment In Play!

Post author By Ali B.
Post date 17 April, 2020
No Comments on Daily F.X. Analysis, April 17 – Top Trade Setups In Forex – Risk-on Sentiment In Play!

On the forex front, the U.S. dollar strengthened against its major peers for a second straight session, with the ICE Dollar Index gaining 0.3% on the day to 99.93. Today, eyes will remain on the European Commission as it will post final readings of March CPI (+1.0% on-year expected). In the U.S., the Conference Board will release its Leading Index for March (-7.1% on month expected).

Economic Events to Watch Today

EUR/USD – Daily Analysis

The EUR/USD fell 0.4% to a week-low of 1.0862. Official data reported that the Euro zone’s industrial production slipped 0.1% on month in February as expected). The European Commission will post final readings of March CPI (+1.0% on-year expected).

The official data which is scheduled to release at 09:00 GMT is expected to show that Eurozone’s industrial production decreased by 0.2% month-on-month in February.

European stocks stabilized after a 3% loss in the prior session, with the Stoxx Europe 600 Index rising 0.6%. Germany’s DAX increased by 0.2%, the U.K.’s FTSE 100 climbed 0.6% while France’s CAC was little changed.

Markets are now concerned about extended lockdowns indicating a deeper economic recession than previously forecasted. Moving on, the market sentiment is expected to stay pro-risk during the day ahead.

As in result, the EUR/USD currency pair could continue to gain altitude. At the data front, the Eurozone Consumer Price Index (CPI) is scheduled for release, while the U.S. data calendar is thin with just Baker Hughes US Oil Rig Count number expected to release at 17:00 GMT.

Daily Support and Resistance

S1 1.0684
S2 1.0772
S3 1.0815

Pivot Point 1.086

R1 1.0904
R2 1.0949
R3 1.1037

EUR/USD– Trading Tips

The EUR/USD is trading bearish at 1.0835, exhibiting a bearish crossover below 50 EMA, which is now extending resistance around 1.0903 level. Continuation of a selling trend below 1.0903 level can extend selling until the next support area of 1.0772.

On Friday, the EUR/USD is likely to find support around 1.0772, but below this, the next support prevails around 1.0652 level. At this moment, the EUR/USD is holding at 1.0835, having an immediate resistance level of around 1.09230, where the bullish breakout of this level can extend buying until the next resistance level of 1.1036. Conversely, we should look for selling trades below 1.0870.

GBP/USD– Daily Analysis

GBP/USD dropped 0.8% to 1.2523 and consolidated in the range between the 1.2604 – 1.2450. However, the currency pair traders did not give any major attention to the coronavirus (COVID-19) crisis at home because the cases are comparatively more significant in the U.S.

At the U.K. Crisis front, the United Kingdoms’ coronavirus death toll rose above 11,000. Still, the buyers are ignoring this probably because the death toll is comparatively larger in the U.S. almost 20,000 deaths have been registered so far. The GBP/USD is exhibiting selling bias in the wake of a stronger dollar.

The U.S. official data showed that Initial Jobless Claims declined to 5.245 million for the week ended April 11 (5.500 million expected), and Housing Starts fell to an annualized rate of 1.216 million units in March (1.300 million units expected). Later today, the Conference Board U.S. Leading Index will be reported (-7.2% on month in March expected).

Later today, eyes will be on the U.S., the Conference Board will release its Leading Index for March (-7.1% on month expected) to determine further bias in the pair.

Daily Support and Resistance

S1 1.2181
S2 1.2353
S3 1.244

Pivot Point 1.2525

R1 1.2612
R2 1.2697
R3 1.2869

GBP/USD– Trading Tip

On Friday, GBP/USD is trading with a neutral bias over 1.2450 support areas to trade around 1.2486. The GBP/USD pair is likely to find support around 1.2450, which is extended by the triple top level, which got violated on the previous Friday.

On the 4-hour chart, the GBP/USD has formed a small bullish channel, which is likely to extend bullish bias for the pair. The 50 periods EMA is also keeping the GBP/USD pair supported around 1.2450. Thus, the bounce off above this level can lead the GBP/USD pair towards the next resistance level of 1.2657. While bearish breakout of 1.2460 can open up further room for selling until the next support area of 1.2220.

USD/JPY – Daily Analysis

The USD/JPY pair is flashing red and struggling towards above 108.00 level, mainly due to the broad-based U.S. dollar weakness in the wake of risk-on market sentiment. In the meantime, the weaker safe-haven Japanese yen keeps the pair supportive and turned out to be one of the key data that placed a lid on any additional losses in the currency pair, at least for now.

Currently, the USD/JPY pair is trading at 107.81 and consolidates in the range between the 107.64 – 108.08. At the USD front, the U.S. dollar continues to lose its buying momentum across the board, as the U.S. stocks futures and the Asian equities are flashing green mainly after the renewed hopes for coronavirus treatment.

The greenback that tracks the greenback against a basket of other currencies dropped 0.25% to 99.862. It should be noted that the investors failed to prefer the greenback, which is traditionally viewed as a safe-haven, mainly because of the United States President Donald Trump’s step to reopening the economy, which could continue to add bullish pressure around the equities during the day ahead.

Daily Support and Resistance

S1 105.92
S2 106.84
S3 107.44

Pivot Point 107.76

R1 108.36
R2 108.69
R3 109.61

USD/JPY – Trading Tips

All the best for today!

Tags Daily Brief, EURUSD, Forex, Fundamental Analysis, GBPUSD, Technical Analysis, trading, USDJPY

Forex Market Analysis

Daily F.X. Analysis, April 15 – Top Trade Setups In Forex – Brace for Retail Sales & BOC Policy!

Post author By Ali B.
Post date 15 April, 2020
No Comments on Daily F.X. Analysis, April 15 – Top Trade Setups In Forex – Brace for Retail Sales & BOC Policy!

On the forex front, the U.S. Dollar Index was little changed at 99.49 amid thin holiday trading. The economic calendar is a bit muted, but the only focus today will be on the U.S. Labor Department will release the March import price index (-3.2% on month expected).

On the forex front, the U.S. Dollar Index was seldom changed at 99.5 amid thin holiday trading. The economic calendar is muted a bit. The only focus today will be on the U.S. Labor Department, which will release March’s import price index (-3.2% on month expected).

Later in the day, the U.S. Commerce Department will post March retail sales (-8.0% on month expected) and February business inventories (-0.4% on month expected). The New York Federal Reserve will publish April Empire Manufacturing Index (-35.0 expected). The Federal Reserve will release March industrial production (-4.0% on month expected), capacity utilization (74.0% expected), and its latest Beige Book.

Economic Events to Watch Today

EUR/USD – Daily Analysis

The EUR/USD climbed 0.7% to 1.0987, French Finance Minister Bruno Le Maire said his government sees 2020 GDP contracting 8%, compared with a decline of 6% previously estimated.

The fresh uptick in the oil prices and above-forecast China trade data also helping restore the risk-sentiment. At the moment, the EUR/USD is trading at 1.0941 and consolidates in the range between the 1.0893 – 1.0967. At the coronavirus front, Australia has shown very sharp declines in the virus cases as compared to other countries and also registered declines in the death toll as per the latest report.

On the other hand, the macro-environment also supported the EUR/USD, and so do technical charts, especially Tuesday’s marubozu candle, which is indicative of strong bullish sentiment.

Looking forward, Spain and Italy are ready to release the report of inflation numbers for the month of March and will be essential to watch. Apart from this, the traders will also keep their eyes on U.S. Retail Sales and Industrial Production numbers for March.

Daily Support and Resistance

S1 1.0811
S2 1.0887
S3 1.0936

Pivot Point 1.0964

R1 1.1012
R2 1.104
R3 1.1116

EUR/USD– Trading Tips

The EUR/USD prices fell after testing 1.09885 resistance level, and the pair now seems to reverse back to the long-held trading range of 1.0922 – 1.0765. The EUR/USD is likely to find support around 1.0922 level. At this moment, the EUR/USD is holding at 1.09320, having an immediate support level of around 1.09060, where the bearish breakout of this level can extend selling until the next support level of 1.0846 and 1.07990. Conversely, the resistance stays at 1.0970 and 1.1035. The MACD is tossing above and below 0, converting the bearish sentiment into bullish and vice versa. Let’s consider staying bullish over 1.0960 today.

GBP/USD– Daily Analysis

The GBP/USD rose 0.9% to 1.2629. The GBP/USD is currently trading at 1.2508 and consolidates in the range between the 1.2604 – 1.2494. However, the currency pair traders did not give any major attention to the coronavirus (COVID-19) crisis at home because the cases are comparatively more significant in the U.S.

At the U.K. Crisis front, the United Kingdoms’ coronavirus death toll rose above 11,000, but the buyers are ignoring this probably because the death toll is comparatively larger in the U.S. almost 20,000 deaths have been registered so far.

The Brexit talks, which will be video conferencing between the European Union and the United Kingdom, are expected to happen and will likely entertain the cable traders as both sides have been stuck on the deadlines while the U.K. recently gave warning the bloc to change tactics or face serious ‘problems.

On the flip side, the headlines related to the expected British lockdown extension will likely keep the traders busy during the day ahead. Looking forward, the U.S. data, including the Retail Sales, activity numbers, and the Fed’s Beige Book, will be key to watch. The virus updates could keep the driver’s seat.

Daily Support and Resistance

S1 1.2352
S2 1.2475
S3 1.255

Pivot Point 1.2599

R1 1.2674
R2 1.2723
R3 1.2846

GBP/USD– Trading Tip

The GBP/USD is trading with a bearish bias over 1.2500 support areas to trade around 1.2516. The cable is likely to find support around 1.2490, which is extended by the triple top level, which got violated on Monday. As we can see on the 4-hour chart, the GBP/USD sideways channel has already been violated, and now it’s likely to keep the pair bullish outside this range of 1.2479 – 1.2185.

Ahead of the U.S. retail sales, the U.S. dollar is gaining bullish momentum, driving the bearish trend in the GBP/USD pair. However, the overall bias remains bullish as the prices are holding above 50 periods EMA. Conversely, the MACD is crossing into the bearish zone, opposing the EMA signal. So let’s consider taking buying trades over 1.2472 with a target of 1.2560.

USD/JPY – Daily Analysis

During Wednesday’s European session, the USD/JPY currency pair has succeded to recover almost 50 pips from the previous session lows and rose to a fresh session high near the 107.35 level in the last hour mainly due to the fresh upticks in the U.S. dollar. The USD/JPY is currently trading at 107.36 and consolidates in the range between the 106.94 – 107.46.

The pair for the second straight session on Wednesday showed some resilience below the 107.00 round-figure marks and attracted some dip-buying near monthly lows set on April 1.

Despite the latest positive news about decreasing the new coronavirus cases and deaths across the world, investors still worried about the economic fallout from the deadly coronavirus. This eventually supported the USD’s status as the global reserve currency and started some fresh selling around the major.

On the other hand, the risk-off market sentiment and declines in the global equity markets keep supporting the Japanese yen’s safe-haven status, which eventually keeps the currency pair limited.

Daily Support and Resistance

S1 105.75
S2 106.52
S3 106.84

Pivot Point 107.3

- R1 107.62
- R2 108.08
- R3 108.85

USD/JPY – Trading Tips

The USD/JPY is trading with a bearish bias, and it is pretty much likely to find support around the triple bottom area of 107.039. A downward breakout of this level can extend selling until 105.300, while the resistance holds around 108.640. The MACD and 50 periods of EMA are suggesting bearish bias, while the fundamentals side is also in favor of selling. Since we the U.S. retail sales due during the U.S. session, traders will focus on the news to drive the next movement in the market. Hence, we should look for selling trades below 107 to target 106.630, and buying can be seen above the same 107 level today.

All the best for today!

Tags Daily Brief, EURUSD, Forex, Fundamental Analysis, GBPUSD, Technical Analysis, trading, USDJPY

Forex Market Analysis

Daily F.X. Analysis, April 14 – Top Trade Setups In Forex – Eyes on G7 Meeting via Satellite!

Post author By Ali B.
Post date 14 April, 2020
No Comments on Daily F.X. Analysis, April 14 – Top Trade Setups In Forex – Eyes on G7 Meeting via Satellite!

Economic Events to Watch Today

EUR/USD – Daily Analysis

The EUR/USD found bids and crossed above 1.09 level while representing 0.37% gains, mainly due to the recent broad-based U.S. dollar weakness after risk recovery in the market sentiment in the wake of fresh measured optimism about coronavirus outbreak.

At the coronavirus front, Australia has shown very sharp declines in the virus cases as compared to other countries and also registered declines in the death toll as per the latest report. Meanwhile, India’s flow is starting to drop, as the growth rate of new cases has consecutively declined after April 6. Moreover, the discussion of easing restrictions on activity is taking attention in the U.S. and other parts of the world.

On the other hand, the above-forecast China trade data, especially imports, which registered a growth of 2.4%, contradicting expectations for a 2.4% decline, and the uptick in the crude oil prices, is helping improve the risk sentiment.

The EUR currency got supported by multiple factors, the figures of newly infected peoples and death toll showing a sign slowing down across the hotspots in Europe and boosted the sentient around the shared currency. The Eurogroup has reached a half a trillion euros virus rescue package gave further support to the common currency bulls.

Looking forward, the USD moves and virus updates will continue to play an important role. Traders will keep their eyes on the G7 meeting for the fresh trading sentiment.

Daily Support and Resistance

S1 1.0772
S2 1.0847
S3 1.0877
Pivot Point 1.0923
R1 1.0953
R2 1.0998
R3 1.1073

EUR/USD– Trading Tips

Last week, the EUR/USD violated the asymmetric triangle pattern, which has lead the EUR/USD prices further higher towards the next resistance level of 1.09299 area. The long-held trading range of 1.0922 – 1.0765 as it’s been already violated, and now the pair is holding above this level.

At this moment, the EUR/USD is holding at 1.09320, having an immediate support level of around 1.09060, where the bearish breakout of this level can extend selling until the next support level of 1.0846 and 1.07990. Conversely, the resistance stays at 1.0970 and 1.1035. The MACD is tossing above and below 0, converting the bearish sentiment into bullish and vice versa. Let’s consider staying bullish over 1.0960 today.

GBP/USD– Daily Analysis

Today in the Asian trading hours, the GBP/USD currency pair found bids and hit the monthly high near above 1.2550, mainly due to fresh declines in the broad-based U.S. dollar in the wake of risk-on market sentiment. As well as, the latest statement that the UK PM Boris Johnson has discharged from the hospital and still recovering from coronavirus, this news also helped the pairs quote. The GBP/USD currency pair is currently trading at 1.2568 and consolidates in the range between the 1.2504 – 1.2574. However, the currency pair traders did not give any major attention to the coronavirus (COVID-19) crisis at home because the cases are comparatively larger in the U.S.

On the other hand, the reason behind the pair’s bullish moves could also be the UK PM Boris Johnson’s health recovery as Johnson left the hospital. Though, The Guardian relied on his spokesman to say that He is “focusing on recovery.”

On the negative side, there are many chances to extend the U.K. lockdown for another month. Sir Patrick Vallance, Government Chief Scientific Adviser, said that the deaths toll from coronavirus could continue to rise this week or that could last for up to 3-weeks. It is worth mentioning that Chris Hopson, chief executive of NHS (National Health Services) Providers, indicates the lack of medical supplies.

Daily Support and Resistance

S1 1.2366
S2 1.2436
S3 1.2474
Pivot Point 1.2505
R1 1.2544
R2 1.2575
R3 1.2645

GBP/USD– Trading Tip

The GBP/USD is trading with a bullish bias over 1.2500 to trade around 1.2496 but still holds within a sideways channel. The GBP/USD sideways channel has already been violated as the GBP/USD is holding around 1.2520 and along with resistance around 1.2770. Considering the weakness in the U.S. dollar, the chances of selling remains low, but the bullish bias remains solid over 1.2500 level.

Since the resistance level of 1.2500 has already been violated, we may see GBP/USD prices going towards the next resistance level of 1.2720. The MACD and 50 EMA are also supporting the bullish bias, so let’s consider taking buying trades over 1.2432 with a target of 1.2500 first and then buying over 1.2500 to target 1.2610.

USD/JPY – Daily Analysis

the USD/JPY currency pair failed to continue its winning moves and dropped to 2-weeks low near the 107.53, mainly due to the fresh losses in the broad-based U.S. dollar in the wake of risk-on market sentiment. On the flip side, the risk-on market sentiment also weakened the Japanese yen and helped limit the downside in the currency pair, at least for the time being.

The USD/JPY is trading at 107.69 and consolidates in the range between the 107.53 – 107.81. The reason behind the global risk-on market sentiment could also be better-than-expected Chinse trade data, which keeps the U.S. dollar U.S.wer and provided the goodish boost to the riskier currencies.

At the data front, the data showed China’s exports improved in March and fell 6-6% YoY as compared to a 17.2% slide in the previous month. Moreover, imports reversed the previous month’s decline and rose 2.4% during the reported month.

While the futures on the S&P 500 are representing a 1.27% gain at press time and the U.S. dollar U.S.ntinues to lose its momentum across the board. The dollar index, which measures the worth of the greenback against majors, is reporting a 0.30% drop.

Daily Support and Resistance

S1 106.59
S2 107.18
S3 107.46
Pivot Point 107.77
R1 108.05
R2 108.36
R3 108.95

USD/JPY – Trading Tips

The USD/JPY is trading with a bearish bias, and it is pretty much likely to find support around the triple bottom area of 107.039. A bearish breakout of this level can extend selling until 105.300. While the resistance holds around 108.640. The MACD and 50 periods of EMA are suggesting bearish bias, while the fundamentals side is also in favor of selling. Since we don’t have any major fundamental coming out shortly, traders will focus on the technical side and levels. Hence, we should look for selling trades below 108 to target 107.030 today.

All the best for today!

Tags Daily Brief, Daily Support and Resistance, EUR-USD, Forex, Fundamental Analysis, GBPUSD, Technical Analysis, trading, USDJPY

Forex Market Analysis

Daily F.X. Analysis, April 10 – Top Trade Setups In Forex – U.S. CPI Under the Spotlight!

Post author By Ali B.
Post date 10 April, 2020
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The greenback dropped broadly due to the downbeat U.S. Initial Jobless Claims data release, which showed that the weekly new claims exceeded 6 million for the second straight time last week. The fresh fears of economic difficulty, indicated by the Fed Chair Powell, also keeps the USD lower, which leads a 0.06% drop in the U.S. dollar to trade at 99.46, having hit a daily high at 99.63 in early Asia. Today, the major focus of traders will be on the U.S. inflation report as most of the market is off due to good Friday. Let’s take a look at the technical and fundamental’s outlook.

Economic Events to Watch Today

EUR/USD – Daily Analysis

The single currency EUR gained a slight bullish momentum against the U.S. dollar on reports that the U.S. jobless claims performed worst than expected. A day before, the European Union finance ministers failed to agree on a coronavirus relief package. Meanwhile, the Bank of France sees the first-quarter GDP shrinking 6% from the previous quarter, the most significant decline since World War II, amid nationwide lockdown due to the coronavirus outbreak.

On the other hand, the EUR currency got supported by multiple factors, the figures of newly infected peoples and death toll showing a sign slowing down across the hotspots in Europe and boosted the sentient around the shared currency. In the meantime, the Eurogroup finally reached a half a trillion euros virus rescue package gave further support to the common currency bulls.

Looking forward, the USD moves and virus updates will continue to play an important role. Traders will keep their eyes on the Fed’s Mester’s speech, the U.S. Consumer Price Index (CPI), and the G20 energy ministers meeting for the fresh trading sentiment.

Daily Support and Resistance

S1 1.0685
S2 1.0796
S3 1.0862

Pivot Point 1.0907

R1 1.0973
R2 1.1018
R3 1.1129

EUR/USD– Trading Tips

The EUR/USD has violated the asymmetric triangle pattern, which is leading; it’s price further higher towards the next resistance level of 1.0960. The pair was following 1.0922 – 1.0765 trading, which is now likely to give support to the EUR/USD pair. At this moment, the EUR/USD is holding at 1.0940, having an immediate support level of around 1.09110, where the bearish breakout of this level can extend selling until the next support level of 1.0846 and 1.07990.

The MACD has crossed over 0, converting the bearish sentiment into bullish. At the same time, the 50 periods exponential moving average is also keeping the EUR/USD in a bullish mode, extending an immediate resistance around 1.08996. So, let’s consider taking buying trades above 1.0907 to target 1.0970 today.

GBP/USD– Daily Analysis

The GBP/USD rebounded for a second straight session, gaining 0.4% to 1.2392. U.K. government spokesman James Slack said Prime Minister Boris Johnson is in a stable condition and responding to coronavirus treatment in hospital.

The reason behind the GBP strength could also be the fresh pessimism surrounding Brexit date because the new Labour Party shadow Chancellor Anneliese Dodds asked ministers to beware putting “ideology over the national interest. Whereas, the U.K. Express conveyed the headlines indicating the Transition period delay could cost U.K. taxpayer £26 billion a year.

On the other hand, the U.S. Federal Reserve (Fed) Chair Jerome Powell expecting downbeat economics during the 2nd-quarter (Q2) of 2020 before expecting the recovery in the second half of the year.

As in result, Japan’s TOPIX recently rose to 1,424, up 0.56%, while stocks in China remain mixed by the reporting time. Looking ahead, traders will keep their focus on the coronavirus updates for intermediate direction. However, the expectedly downbeat U.S. inflation figures for March will likely keep the pair strong.

Daily Support and Resistance

S1 1.2187
S2 1.231
S3 1.2381

Pivot Point 1.2432

R1 1.2504
R2 1.2555
R3 1.2678

GBP/USD– Trading Tip

The GBP/USD soars to trade around 1.2496 but still holds within a sideways channel. The GBP/USD sideways channel is supporting the GBP/USD pair around 1.220 and along with resistance around 1.2490.

Considering the weakness in the U.S. dollar, the chances of selling remains low, but the bullish bias remains solid over 1.2500 level. Violation of this can lead the GBP/USD prices until 1.2720. The MACD and 50 EMA are also supporting the bullish bias, so let’s consider taking buying trades over 1.2432 with a target of 1.2500 first and then buying over 1.2500 to target 1.2610.

USD/JPY – Daily Analysis

Today in the early Asian session, the USD/JPY currency pair dropped to 108.33, mainly due to the risk-off market sentiment in the wake of intensified concerns about coronavirus (COVID-19). The fresh declines in the U.S. dollar, which are based on downbeat data and depressed signals from the Fed Chair, keeps the pair lower.

The USD/JPY is currently trading at 108.39 and consolidates in the range between the 108.33 – 108.61. At the USD front, the greenback dropped broadly due to the downbeat U.S. Initial Jobless Claims data release, which showed that the weekly new claims exceeded 6 million for the second straight time last week.

The fresh fears of economic difficulty, indicated by the Fed Chair Powell, also keeps the USD lower; as in result, the U.S. dollar index drops 0.06% to 99.46, having hit a daily high at 99.63 in early Asia.

At the coronavirus front, as per the latest report, the 427,460 cases of coronavirus registered an increase of 32,449 cases from its previous count and said the number of deaths also rose 1,942 to 14,696. It should also be noted that the Centers for Disease Control and Prevention (CDC) earlier announced ‘no sail’ order to all cruise ships. As in result, the U.S. continues marked as the world’s second-worst affected nation due to the virus after Italy.

Daily Support and Resistance

S1 107.84
S2 108.34
S3 108.59

Pivot Point 108.85

R1 109.09
R2 109.35
R3 109.86

USD/JPY – Trading Tips

The USD/JPY’s symmetric triangle pattern has already been violated, which was supporting the pair around 108.570. Closing of candles below this level is suggesting bearish bias among traders, which can lead the USD/JPY, the safe-haven currency pair, towards the next support level of 107.850. The 50 EMA is also suggesting a bearish bias for the USD/JPY pair.

On the higher side, the support level 108.500, which got violated earlier, is going to work as resistance now, and it may offer us selling traders in the USD/JPY today. The USD/JPY may exhibit buying until 108.580, and violation of this can open more room for buying until 108.8500. On the lower side, support continues to hold around 107.850. Let’s look for selling traders below 108.550 today.

All the best for today!

Tags Daily Brief, EURUSD, Forex, Fundamental Analysis, GBPUSD, Support and Resistance, Technical Analysis, trading, USDJPY

Forex Market Analysis

Daily F.X. Analysis, April 09 – Top Trade Setups In Forex – Brace for High Impact Events!

Post author By Ali B.
Post date 9 April, 2020
No Comments on Daily F.X. Analysis, April 09 – Top Trade Setups In Forex – Brace for High Impact Events!

On the forex front, the U.S. dollar stabilized against its major peers on Wednesday, as the ICE Dollar Index gained 0.2% on the day to 100.16. Eyes will remain on the German Federal Statistical Office, which is due to report February trade balance (16.5 billion euros surplus expected) and current account balance (17.0 billion euros surplus expected).

The U.K. Office for National Statistics will post February monthly GDP (+0.1% on month expected), industrial production (+0.1% on month expected), manufacturing production (+0.1% on month expected) and trade balance (1 billion pounds surplus expected).

Economic Events to Watch Today

EUR/USD – Daily Analysis

The EUR weakened against the U.S. dollar on reports that European Union finance ministers failed to agree on a coronavirus relief package. EUR/USD slid 0.3% to 1.0862.

German leading institutes expect the country’s GDP to slump 9.8% in the second quarter compared with the prior quarter and drop 4.2% for the whole year, citing the coronavirus pandemic. Meanwhile, the Bank of France sees the first-quarter GDP shrinking 6% from the previous quarter, the largest decline since World War II, amid nationwide lockdown due to the coronavirus outbreak.

Moving on, the shared currency may face deeper losses if a discussion about the stimulus package again fails to happen on the day or end on a sour note. It’s worth noting that the ECB is already running a negative interest rate policy and a massive asset purchase program. As a result, markets are increasingly expecting governments to do their bit by providing fiscal stimulus.

Looking forward, the ECB minutes, which are scheduled to happen at 11:30 GMT, are expected to repeat downside risks to the economy and willingness to do more if required. On the data front, Germany is set to report trade figures for the month of February at 07:00 GMT.

Daily Support and Resistance

S1 1.0742
S2 1.08
S3 1.0829

Pivot Point 1.0858

R1 1.0887
R2 1.0917
R3 1.0975

EUR/USD– Trading Tips

The EUR/USD continues trading within a symmetric triangle pattern, which is keeping the pair within 1.0922 – 1.0765 trading zone. At this moment, the EUR/USD is holding at 1.0866, having an immediate support level of around 1.0835, where the bearish breakout of this level can extend selling until the next support level of 1.07990 and 1.0765.

The MACD has still tossing above and below 0, converting the bearish sentiment into bullish. At the same time, the 50 periods exponential moving average is also keeping the EUR/USD in a neutral mode, extending an immediate resistance around 1.08856. So, let’s consider taking selling trades below 1.0835 to target 1.0775 and bullish above the same to target 1.0910 and 1.0970 today.

GBP/USD– Daily Analysis

Later today, U.K. monthly GDP data and manufacturing production for February will be released (both +0.1% on month expected). Whereas, the market risk sentiment getting heavy due to the rise in the U.S. cases, marked as a second highly infected nation, after Italy, in the world.

As in result, early Asia risk-on sentiment, mainly due to U.S. President Donald Trump’s push for restarting the economy, failed to extend while the U.S. 10-year treasury yields dropped 2-basis points to 0.746% with stocks in Asia flashing mixed results.

Looking ahead, the traders may not give any major attention to the U.K.’s data-dump comprising Manufacturing Production, Industrial Production, and monthly GDP due to being before the virus outbreak period.

However, the weekly release of U.S. Jobless Claims and speech from the Federal Reserve Chairman Jerome Powell will be essential to watch. Apart from this, virus updates will not lose its importance and will be essential to watch for new directions.

Daily Support and Resistance

S1 1.2104
S2 1.2236
S3 1.2315

Pivot Point 1.2368

R1 1.2447
R2 1.25
R3 1.2632

GBP/USD– Trading Tip

On Thursday, the GBP/USD soars to trade around 1.2398 within a sideways channel. The channel is supporting the Cable at 1.220 and along with resistance around 1.2490. The release of GDP figures from the U.K. can help drive a breakout in the market. In the case market breaks bellow 1.2278, we may see GBP/USD prices heading into the selling zone until 1.2100 and 1.2005.

Whereas, the chances of buying remains solid over 1.2275 until 1.2520. The MACD and 50 EMA are also supporting the neutral bias, so let’s consider taking buying trades over 1.2368 with a target of 1.2470 and sell trades below 1.2368

USD/JPY – Daily Analysis

During Thursday’s Asian session, the USD/JPY currency pair flashing green and continued its previous session recovery rally toward above the 109.00 level. The currency pair rose from 108.60 to 109.06, mainly due to the recent risk reset market sentiment.

Currently, the USD/JPY is currently trading at 108.94 and consolidates in the range between the 108.80 – 109.06. However, the Japanese yen earlier weakened caused by risk-on market sentiment in the wake of expectation of further stimulus and an easy run for the favorite candidate for the U.S. President’s post.

During the Newyork trading session, the attention was on the Federal Reserve Open Market Committee’s minutes of the unscheduled meeting on March 15. The minutes indicated anxiety about the virus and the extremely large degree of uncertainty. There was a muted reaction to the minutes because they didn’t show anything that hasn’t already been priced in by market traders. They just decided to cut the benchmark rate to nearly zero and restart bond-buying programs.

Moreover, Japan’s Prime Minister Abe has announced a state of emergency in Tokyo and 6-other provinces. He plans to control the economic fallout of COVID-19 as well as a substantial fiscal stimulus package. The package, worth ¥16.5trn, equates to 20% of GDP. Consequently, the USD/JPY currency pair is moving nowhere as investors seem confused about whether to buy USD/JPY over a stronger dollar or sell over the increased safe-haven appeal.

As per the latest comments from the U.S. and Japanese policymakers also indicated that more stimulus to control the coronavirus (COVID-19) is on their way. On the flip side, Bernie Sanders turned from the U.S. Presidential Candidate’s race, giving an edge to the market favorite Joe Biden and helping to improve the trading sentiment.

Daily Support and Resistance

S1 107.84
S2 108.34
S3 108.59

Pivot Point 108.85

R1 109.09
R2 109.35
R3 109.86

USD/JPY – Trading Tips

On Thursday, the USD/JPY’s symmetric triangle pattern continues to play due to a lack of high impact economic events. Choppy sessions continue to trade around 108.884, and it’s strictly following a narrow trading range of 108.650 – 107.250. The technical side of USD/JPY is mostly the same as the USD/JPY’s pair continues to find support around 108.700. On the 4 hour timeframe, the Japanese pair has closed a bullish engulfing candle over 50 EMA, which is suggesting odds of more buying in the USD/JPY currency pair. The USD/JPY may exhibit further room for buying until 109.680, and violation of this can open more room for buying until 110.500 and 111.450. On the lower side, support continues to hold around 108.750. Let’s look for buying traders over 108.850 today.

All the best for today!

Tags Daily Brief, EURUSD, Forex, Fundamental Analysis, GBPUSD, Technical Analysis, trading, USDJPY

Forex Market Analysis

Daily F.X. Analysis, April 08 – Top Trade Setups In Forex – Choppy Sessions Continued!

Post author By Ali B.
Post date 8 April, 2020
No Comments on Daily F.X. Analysis, April 08 – Top Trade Setups In Forex – Choppy Sessions Continued!

Daily F.X. Analysis, April 08 – Top Trade Setups In Forex – Choppy Sessions Continued!

Daily F.X. Analysis, April 08 – Top Trade Setups In Forex – Choppy Sessions Continued!

On the forex front, the U.S. dollar weakened against its major peers, with the ICE Dollar Index dropping 0.8% on the day to 99.91. Later in the day, the U.S. Federal Reserve will release its latest monetary meeting minutes. Whereas, the Bank of France will report Industry Sentiment Indicator for March (90 expected).

Economic Events to Watch Today

EUR/USD – Daily Analysis

The EUR/USD rebounded 0.9% to 1.0895, snapping a six-day decline. Official data showed that German industrial production grew 0.3% on month in February (-0.8% expected). Previously, an uptick in German’s industrial production for February may not provide support to the EUR/USD because the futures tied to the S&P 500 futures are starting to reporting a 0.60% drop and will likely draw bids for the greenback during the day ahead.

The European stocks remained on the upside, with the Stoxx Europe 600 Index gaining 1.9%. Germany’s DAX jumped 2.8%, France’s CAC rose 2.1%, and the U.K.’s FTSE 100 was up 2.2%, which is extending slight support to the single currency Euro.

Today, the European data docket is light, so apart from this, Federal Reserve’s March meeting minutes will be key to watch, which are scheduled to release at 18:00 GMT. While on the technical side, the immediate bias would remain bearish in the pair until the hourly chart descending trendline drawn from overnight highs is intact.

Daily Support and Resistance

S1 1.0647
S2 1.0762
S3 1.0827

Pivot Point 1.0876

R1 1.0941
R2 1.0991
R3 1.1106

EUR/USD– Trading Tips

Looking at the 4-hour timeframe, the EUR/USD is trading within a symmetric triangle pattern, which is keeping the pair within 1.0922 – 1.0765 trading zone. Right now, the pair is trading at 1.0858, having an immediate support level of around 1.07990 and 1.0765. The EUR/USD violated the support level of 1.085, which is now working as a resistance. A bearish breakout of 1.07990 level may extend selling bias until the next support level of 1.0650 while the MACD has crossed over 0, converting the bearish sentiment into bullish.

We can’t fully really on the MACD right now as the lack of trends in the market is causing its value to toss above and below 0, signaling a neutral bias. But the 50 periods exponential moving average is also keeping the EUR/USD in a bearish mode, extending an immediate resistance around 1.08856. So, let’s consider taking selling trades below 1.091 to target 1.0775 and bullish above the same to target 1.0946 today.

GBP/USD– Daily Analysis

The GBP/USD bounced 0.9% to 1.2340. The pair doesn’t seem to show much interest as the death toll from the coronavirus increased by 621 to 4,934. The total number of confirmed infections rose to 47,806. Apart from the coronavirus intensifying concerns, the GBP currency could remain bearish in the European trading hours, mainly due to the sluggish data. As in result, the U.S. 10-year Treasury yields remain flashing green around 0.68% with major Asian stocks marking gains.

At the Brexit front, the European Union and many others are forcing the Tory administration for the delay in the Brexit deadline while Cabinet Office Minister Michael Gove showing a willingness to leave talks unless there was a broad outline of a deal.

At the USD front, the U.S. Dollar taking bids on the day, as the S&P 500 futures slumped by 0.5%, indicating the risk-off sentiment in the global market after New York reported 731 deaths from coronavirus on Monday- the biggest daily rise. On the other hand, Spain’s daily losses of coronavirus deaths also increased for the 1st-time in 5-days.

Looking forward, investors will keep their eyes on every incoming detail about the virus for fresh direction. Moreover, Brexit headlines will also key to watch as the EU-UK policymakers are finalizing the timetable for further Brexit talks in April and May.

Daily Support and Resistance

S1 1.2075
S2 1.2201
S3 1.2269

Pivot Point 1.2327

R1 1.2395
R2 1.2453
R3 1.2578

GBP/USD– Trading Tip

On Wednesday, the GBP/USD continues trading around 1.2298 within a symmetric triangle pattern, which is supporting Sterling at 1.220 and along with resistance around 1.2490. On the 4-hour timeframe, the GBP/USD pair may find resistance around 1.2470, along with support around 1.2278. In the case of market breaks bellow 1.2278, we may see GBP/USD prices heading into the selling zone until 1.2100 and 1.2005. Whereas, the chances of buying remains solid over 1.2275 until 1.2520. The MACD and 50 EMA are also supporting the neutral bias, so let’s consider taking buying trades over 1.2209 with a target of 1.2400 and sell trades below 1.2335.

USD/JPY – Daily Analysis

During Wednesday’s early Asian session, the USD/JPY currency pair flashing green and struggles to cross above the 109.00 level mainly due to the latest recovery in the U.S. Dollar in the wake of the risk-off market sentiment. Whereas, the fresh bid in the safe-haven Japanse yen is one of the key factors behind the limit to the pair’s gains.

Right now, the USD/JPY pair is trading at 108.81 and consolidates in the range between the 108.50 – 109.00. Yesterday’s risk-on sentiment extended to Europe due to the optimism that the pace of new COVID-19 cases may be slowing, but the U.S. markets were failed to hold. Despite this, the U.S. Secretary of Housing said there are signs that COVID-19 cases in the U.S. could level out sooner than predicted.

At the USD front, the U.S. Dollar taking bids on the day, as the S&P 500 futures slumped by 0.5%, indicating the risk-off sentiment in the global market after New York reported 731 deaths from coronavirus on Monday- the most prominent daily rise. On the other hand, Spain’s daily losses of coronavirus deaths also increased for the 1st-time in 5-days.

At the U.K. front, the Foreign Secretary looking confident about the UK PM Boris Johnson’s health and said that he would recover from pandemic while describing him as a “fighter.” Moreover, Japan’s Prime Minister Abe has announced a state of emergency in Tokyo and 6-other provinces. He plans to control the economic fallout of COVID-19 as well as a substantial fiscal stimulus package. The package, worth ¥16.5trn, equates to 20% of GDP. Consequently, the USD/JPY currency pair is moving nowhere as investors seem confused about whether to buy USD/JPY over a stronger dollar or sell over the increased safe-haven appeal.

Daily Support and Resistance

S1 105.37
S2 106.64
S3 107.08

Pivot Point 107.91

R1 108.35
R2 109.17
R3 110.44

USD/JPY – Trading Tips

As we can see on the 4-hour timeframe, the USD/JPY’s symmetric triangle pattern still remains intact, perhaps due to a lack of high impact economic events in the market. The USD/JPY is trading choppy above and below 108.884, and it’s strictly following a narrow trading range of 108.650 – 107.250. With that being said, the USD/JPY’s immediate support is likely to be found around 108.700. On the 4 hour timeframe, the Japanese pair has closed a bullish engulfing candle over 50 EMA, which is suggesting odds of more buying in the USD/JPY currency pair.

The USD/JPY may exhibit further room for buying until 109.680, and violation of this can open more room for buying until 110.500 and 111.450. On the lower side, support continues to hold around 108.750. Let’s look for buying traders over 108.850 today.

All the best for today!

Tags Daily Brief, EURUSD, Forex, Fundamental Analysis, GBPUSD, Technical Analysis, trading, USDJPY

Forex Market Analysis

Daily F.X. Analysis, April 07 – Top Trade Setups In Forex – Risk-off Sentiment In Play!

Post author By Ali B.
Post date 7 April, 2020
No Comments on Daily F.X. Analysis, April 07 – Top Trade Setups In Forex – Risk-off Sentiment In Play!

On the forex front, the ICE U.S. Dollar Index was little changed on the day at 100.79. On Tuesday, eyes will be on the series of low impact economic events from the Eurozone, U.K., and U.S. economy, but these may not drive major price action in the market. So we should focus on the technical side of the market. The German Federal Statistical Office will report February industrial production (-0.9% on month expected).

France’s INSEE will release the February trade balance (5.05 billion euros deficit expected). The U.S. Labor Department will report JOLTS job openings for February (6.5 million expected). The Federal Reserve will post February consumer credit (+14.0 billion dollars expected).

Economic Events to Watch Today

EUR/USD – Daily Analysis

The EUR/USD slipped 0.1% to 1.0796, down for a sixth straight session. Official data showed that German factory orders dropped 1.4% on month in February (-2.5% expected). On the other hand, the eurozone Sentix Investor Confidence Index declined to -42.9 in April (-37.5 expected) from -17.1 in March.

The uptick in German’s industrial production for February may not provide support to the EUR/USD because the futures tied to the S&P 500 futures are starting to reporting a 0.60% drop and will likely draw bids for the greenback during the day ahead.

In the meantime, if the German data represents that the manufacturing output was already facing a renewed recession ahead of COVID-19 concerns seen in March, the EUR currency may draw offer, possibly testing support at 1.0770.

It is worth mentioning that Industrial Production usually releases by the Statistisches Bundesamt Deutschland, which measures outputs of the German factories and mines. Whereas, the changes in industrial production are broadly watched as a significant sign of strength in the manufacturing sector. A high figure is understood as positive or bullish for the EUR. Hence, a low reading is seen as negative (or bearish). The German Federal Statistical Office will report February industrial production (-0.9% on month expected).

Daily Support and Resistance

S1 1.0653
S2 1.0732
S3 1.0769

Pivot Point 1.081

R1 1.0847
R2 1.0889
R3 1.0967

EUR/USD– Trading Tips

On Tuesday, the EUR/USD is trading bearish at 1.088, having an immediate support level of around 1.07990. On the 4-hour chart, the EUR/USD has violated the support level of 1.085, which is now working as a resistance. A bearish breakout of 1.07990 level may extend selling bias until the next support level of 1.0650. While the MACD is staying below 0, supporting the odds selling movements in the market. At the same time, the 50 periods exponential moving average is also keeping the EUR/USD in a bearish mode. Bearish crossover of 1.081 area can open further room for selling until 1.065 level. So, let’s consider taking selling trades below 1.081 and bullish above the same to target 1.0946 today.

GBP/USD– Daily Analysis

The GBP/USD lost 0.3% to 1.2224. U.K. Prime Minister Boris Johnson has been admitted to intensive care as his coronavirus symptoms worsened. Meanwhile, the Markit U.K. Construction PMI slid to 39.3 in March (44.0 estimated) from 52.6 in February.

As per the latest report, the death toll from the coronavirus increased by 621 to 4,934. The total number of confirmed infections rose to 47,806. Apart from the coronavirus intensifying concerns, the GBP currency could remain bearish in the European trading hours, mainly due to the sluggish data. As in result, the U.S. 10-year treasury yields remain flashing green around 0.68% with major Asian stocks marking gains.

At the coronavirus front, the decreasing fear of coronavirus is also the reason behind the risk-on market sentiment. While the declining figures from Spain, Italy, and the U.K., the recent decline in the British death losses from the top of April 04 figures of 708 to 439 providing support to the market, but it seems doubtful as per the experts.

At the USD front, the U.S. dollar losing its bullish momentum on the day, mainly due to the risk recovery sentiment in the market. The fresh stimulus package hints from the U.S. also keeps the USD lower. Looking forward, investors will keep their eyes on the coronavirus updates. As well as, the government/central bank struggles to control the deadly disease will also be essential to watch for near-term direction.

Daily Support and Resistance

S1 1.1909
S2 1.21
S3 1.2184

Pivot Point 1.229

R1 1.2375
R2 1.248
R3 1.267

GBP/USD– Trading Tip

The GBP/USD is trading at 1.2330 within a symmetric triangle pattern, which is supporting Sterling at 1.220 and along with resistance around 1.2490. On the 4-hour timeframe, the GBP/USD pair may find resistance around 1.2470, along with support around 1.2278. In the case of market breaks bellow 1.2278, we may see GBP/USD prices heading into the selling zone until 1.2100 and 1.2005. Whereas, the chances of buying remains solid over 1.2275 until 1.2520. The MACD and 50 EMA are also supporting the bullish bias, so let’s consider taking buying trades over 1.2209 with a target of 1.2400.

USD/JPY – Daily Analysis

During Tuesday’s Asian session, the USD/JPY currency pair failed to continue its 3-days winning streak and faced some fresh supply while dropped to 108.67 level, mainly due to modest declines in the U.S. dollar in the wake of risk-on market sentiment. The fresh recovery in the risk market weakened the safe-haven JPY and collaborated the pair limit the downside. The USD/JPY is trading at 108.79 and consolidates in the range between the 108.67 – 109.28.

The decreasing number of new coronavirus cases is also the reason behind the risk-on market sentiment. While the declining figures from Spain, Italy, and the U.K., the recent decline in the British death losses from the top of April 04 figures of 708 to 439 providing support to the market and weakened the Japanese yen’s safe-haven status.

Moreover, the risk-on market sentiment could also be attributed to the fresh pickup in the U.S. Treasury bond yields. The Japanese government is showing a willingness to declare a state of emergency for Tokyo, and other big cities further weighed on the Japanese yen, which was also seen as a factor helping limit the downside.

On the other hand, the United States President Donald Trump is also showing a readiness to declare another aid package after the House Speaker Nancy Pelosi gave hints for the same. The risk sentiment got a boost, driving the Japanese yen higher.

Daily Support and Resistance

S1 105.37
S2 106.64
S3 107.08

Pivot Point 107.91

R1 108.35
R2 109.17
R3 110.44

USD/JPY – Trading Tips

The USD/JPY is also forming a symmetric triangle pattern on the 4-hour chart in the wake of thin volatility and trading volume in the market. The USD/JPY is trading choppy around 108.884, still staying above previously violated the choppy trading range of 108.650 – 107.250. With this, the USD/JPY’s best immediate support is likely to be found around 108.700. On the 4 hour timeframe, the Japanese pair has closed a bullish engulfing candle over 50 EMA, which is suggesting odds of more buying in the USD/JPY currency pair. The USD/JPY may exhibit further room for buying until 109.680, and violation of this can open more room for buying until 110.500 and 111.450. On the lower side, support continues to hold around 108.750. Let’s look for buying traders over 108.850 today.

All the best for today!

Tags Daily Brief, EURUSD, Forex, Fundamental Analysis, GBPUSD, Support and Resistance, Technical Analysis, trading, USDJPY

Forex Market Analysis

Daily F.X. Analysis, April 06 – Top Trade Setups In Forex – Risk-off Sentiment In Play!

Post author By Ali B.
Post date 6 April, 2020
No Comments on Daily F.X. Analysis, April 06 – Top Trade Setups In Forex – Risk-off Sentiment In Play!

On the forex front, the U.S. dollar continued to see safe-haven buying. The ICE U.S. Dollar Index rose 0.4% on the day to 100.58, extending its rally to a third straight session. Later today, the Research firm Markit will publish March U.K. Construction PMI (44.0 expected). The eurozone Sentix Investor Confidence Index for April will be released (-37.5 expected). The German Federal Statistical Office will report February factory orders (-2.5% on month expected).

Economic Events to Watch Today

EUR/USD – Daily Analysis

The EUR/USD slid 0.5% to 1.0809, posting a five-day losing streak. Official data revealed that the eurozone’s retail sales surged 0.9% on month in February (+0.1% expected). Later today, the eurozone Sentix Investor Confidence Index for April will be released (-37.5 expected).

Speaking about the Germans Factory orders data, this data release by the Deutsche Bundesbank, which indicates the shipments, inventories, and new orders. A surged in the factory order total may show progress in the German economic growth, and it could also be a factor to boost inflation.

It is worth noting that the German Factory influences by two-ways either positively or negatively, the total Eurozone GDP. A high figure is considered as a positive or bullish for the EUR, while a low reading is negative.

Therefore, the pair could drop to 1.0773 previously low on mixed Ferman data. Moreover, if the greenback catches fresh bids on the turnaround in the risk sentiment, the EUR/USD currency pair could suffer in a more profound drop below 107.00 ahead.

As per the coronavirus latest report, the cases rose by 3,677 in Germany when compared with Sunday’s 5,936 new infections, showing the 4th-straight drop in the daily rate. The death toll rose by 92. Consequently, the EUR/USD is suffering badly and may trade sideways as the dollar also suffers alongside.

Daily Support and Resistance

S1 1.0653
S2 1.0732
S3 1.0769

Pivot Point 1.081

R1 1.0847
R2 1.0889
R3 1.0967

EUR/USD– Trading Tips

The EUR/USD is trading bearish at 1.080, having an immediate support level of around 1.07990. On the 4-hour chart, the EUR/USD has violated the support level of 1.085, which is now working as a resistance. As of now, a bearish breakout of 1.07990 level may extend selling bias until the next support level of 1.0650. While the MACD is staying below 0, supporting the odds selling movements in the market.

At the same time, the 50 periods exponential moving average is also keeping the EUR/USD in a bearish mode. Bearish crossover of 1.081 area can open further room for selling until 1.065 level. So, let’s consider taking selling trades below 1.081today.

GBP/USD– Daily Analysis

The GBP/USD sank 1.1% to 1.2262. The Markit U.K. Construction PMI for March will be released later in the day (44.0 expected). As per the latest report, the coronavirus cases rose to 33,718 as of 08:00 GMT on April 02, whereas there was a 24% rise in the death toll to 2,921 at the same time.

Meanwhile, the Washington Governor extended the stay-at-home order, whereas S&P declared its U.S. rating at AA+ with expectations of a recovery in 2021. As in result, the market’s risk-tone remains moderately heavy with the U.S. 10-year treasury yields dropped below 0.60%, and most Asian stocks are also flashing red.

As per the latest report, the death toll from the coronavirus increased by 621 to 4,934. The total number of confirmed infections rose to 47,806. Apart from the coronavirus intensifying concerns, the GBP currency could remain bearish in the European trading hours mainly due to the sluggish data, which is released early Monday and showed the British consumer confidence declined to the weakest since February 2009.

On the flip side, the USD has ignored 7 million drops in the U.S. jobs for March, because the upbeat US ISM Non-Manufacturing PMI boded well for the greenback. However, the U.K. Services PMI data for March was revised down to 34.5 points, which will likely push the GBP lower.

Looking forward, the headlines related to the PM Johnson’s condition will remain driver seats. The U.S. dollar dynamics also will be critical to watch for fresh directions. Meanwhile, traders, all eyes will be on the U.K. government COVID-19 meeting, which is scheduled to happen at 0815GMT for new trading impetus. The meeting will be chaired by the U.K. Foreign Secretary Raab and include the advisers and officials.

Daily Support and Resistance

S1 1.1909
S2 1.21
S3 1.2184

Pivot Point 1.229

R1 1.2375
R2 1.248
R3 1.267

GBP/USD– Trading Tip

The technical side of the GBP/USD hasn’t changed much as it continues trading sideways in between the same trading range of 1.2275 – 1.2425. On the 4 hour timeframe, the GBP/USD is forming neutral candles despite worse than expected NFP figures from the U.S. Hence, the pair has gained slight support and recovered over 1.2265 resistance level, which is now working as a support.

On the 4-hour timeframe, the GBP/USD pair may find resistance around 1.2470, along with support around 1.2278. In the case of market breaks bellow 1.2278, we may see GBP/USD prices heading into the selling zone until 1.2100 and 1.2005. Whereas, the chances of buying remains solid over 1.2275 until 1.2520.

USD/JPY – Daily Analysis

During Monday’s Asian session, the USD/JPY currency pair flashing green and continue to gaining its traction for the 3rd-consecutive session mainly due to fresh risk recovery in the market.

The U.S. bond yields exhibited an uptick, which is providing support to the greenback and also kept the USD/JPY pair higher. Right now, the USD/JPY is trading at 109.25 and consolidates in the range between the 108.37 – 109.38.

However, the USD/JPY pair added to its intraday gains and rose further beyond the 109.00 round-figure marks, hitting fresh one-week tops in the last hour. A fresh drop in the death and cases of coronavirus gave a high relief to the trader. Whereas, the strong gain in the U.S. equity futures weakened the Japanese yen’s safe-haven demand.

On the other hand, the reason behind the Japanese bearish bias could also be TBS News report that the Japanese government is considering 6-months for a state of emergency declaration to control the coronavirus outbreak in Tokyo.

Daily Support and Resistance

S1 105.37
S2 106.64
S3 107.08

Pivot Point 107.91

R1 108.35
R2 109.17
R3 110.44

USD/JPY – Trading Tips

Technically, the USD/JPY pair is trading bullish a 109.177, having violated the choppy trading range of 108.650 – 107.250. With this, the USD/JPY’s best immediate support is likely to be found around 108.700. On the 4 hour timeframe, the Japanese pair has closed a bullish engulfing candle over 50 EMA, which is suggesting odds of more buying in the USD/JPY currency pair.

With this, the USD/JPY may exhibit further room for buying until 109.680, and violation of this can open more room for buying until 110.500 and 111.450. On the lower side, support continues to hold around 108.750. Let’s look for buying traders over 108.850 today.

All the best for today!

Tags Daily Brief, EURUSD, Forex, Fundamental Analysis, GBPUSD, Technical Analysis, trading, USDJPY

Forex Market Analysis

Daily F.X. Analysis, April 03 – Top Trade Setups In Forex – U.S. Labor Market In Highlights!

Post author By Ali B.
Post date 3 April, 2020
No Comments on Daily F.X. Analysis, April 03 – Top Trade Setups In Forex – U.S. Labor Market In Highlights!

On the forex front, the U.S. dollar strengthened against its major peers, with the ICE Dollar Index climbing 0.6% on the day to 100.10. Today’s eyes will be on the Markit that will publish final readings of March Services PMI for the eurozone (28.2 expected), Germany (34.2 expected), France (29.0 expected), the U.K. (34.8 expected) and the U.S. (38.5 expected). The European Commission will post February retail sales (+0.1% on month expected).

Economic Events to Watch Today

EUR/USD – Daily Analysis

The EUR/USD sank 1.1% to 1.0845, posting a four-day decline. Later today, the eurozone’s retail sales data for February will be reported (+0.1% on month expected). The market is lacking trading volume and volatility, but the focus will remain on the European economic events. The European Commission will report February January PPI (-0.8% on year expected).

Italy is showing some signs of slowing down in the virus cases despite this the market traders already priced in a recession in the Europan economy, especially in Germany, because the circumstances in Spain continue to rise very fast. The lockdown across Europe continues to weigh on economic activities.

The market risk-off sentiment could more worsen if the U.S. initial jobless claims ignore past expectations, which will send the EUR/USD currency pair to the fresh lowest level.

Besides the weekly data, the

Looking forward, the USD moves will continue to play a significant role, as attention shifts to the Euro area Final Services PMI report. Services PMI for the eurozone (28.2 expected), Germany (34.2 expected), France (29.0 expected), the U.K. (34.8 expected), and the U.S. (38.5 expected). The European Commission will post February retail sales (+0.1% on month expected).

Most importantly, the U.S. Non-Farm Payrolls and ISM Non-manufacturing PMI data are scheduled to release later this Friday. The coronavirus related headline could also drag attention.

Daily Support and Resistance

S1 1.0772
S2 1.0886
S3 1.0958

Pivot Point 1.0999

R1 1.1071
R2 1.1112
R3 1.1226

EUR/USD– Trading Tips

The EUR/USD is trading bearish at 1.090, having an immediate support level of around 1.07990. On the 8-hour timeframe, the EUR/USD has violated the support level of 1.085, which is now working as a resistance. Now, a bearish breakout of 1.07990 level may extend selling bias until the next support level of 1.0650.

The MACD has also crossed below 0, confirming the chances of more bearish movements in the market. The 50 EMA is also keeping the EUR/USD in a selling mode. For now, the eyes will remain on the U.S. NFP figures to determine further trends in the market. Bearish crossover of 1.1050 area can open further room for selling until 1.065 level. Let’s consider taking selling trades below 1.07990 today.

GBP/USD– Daily Analysis

The GBP/USD edged up 0.1% to 1.2390. The United Kingdom politics are getting warm after the voting to replace the opposition Labour Party leader Jeremy Corbyn closes. Moreover, the top U.K. judge gave warning that the British judiciary system will take hints from the European rules unless last Brexit-day.

As per the latest report, the coronavirus cases rose to 33,718 as of 08:00 GMT on April 02, whereas there was a 24% rise in the death toll to 2,921 at the same time.

The U.S. Labor Department will release March nonfarm payrolls report (-100,000 jobs, jobless rate at 3.8% expected). The Institute for Supply Management will post its Non-manufacturing Index for March (43.0 expected). It’s going to be a big day, not only for the GBP/USD but also for the rest of the dollar related currency pairs.

Daily Support and Resistance

S1 1.217
S2 1.2278
S3 1.2334

Pivot Point 1.2387

R1 1.2443
R2 1.2495
R3 1.2604

GBP/USD– Trading Tip

The GBP/USD trade sideways in between the same trading range of 1.2275 – 1.2425. On the 4 hour timeframe, the Cable has formed neutral candles as we may not see further trends until and unless the pair manages to come out of this narrow range. For that reason, the pair needs a solid fundamental reason, which we are not expecting from the United Kingdom today. Let’s see if U.S. claims help drive some price action in the market. On the 4-hour timeframe, the GBP/USD pair is pretty much likely to find resistance around 1.2470, along with support around 1.2278. In the case of market breaks bellow 1.2278, we may see GBP/USD prices heading into the selling zone until 1.2100 and 1.2005. Whereas, the chances of buying remains solid over 1.2275 until 1.2520.

USD/JPY – Daily Analysis

The USD/JPY currency pair continues to taking bids and rose above the 108.00 level despite the high risk-off sentiment in the market, which would typically keep the Japanese yen secure. However, the pair’s bullish trend could be attributed to the sharp rise in oil prices. The USD/JPY currency pair is currently trading at 108.25 and consolidates in the range between the 107.81 – 108.27. The broad-based greenback strength also keeps the pair higher.

As per the latest report, the COVID-19 cases have surpassed one million worldwide with over a death toll rate of over 50,000. Meanwhile, the Washington Governor extended the stay-at-home order, whereas S&P declared its U.S. rating at AA+ with expectations of a recovery in 2021.

As well as, Japan is now facing a rise in cases that are increasing the market risk tone time by time, which eventually will likely be good for the safe-haven Japanese yen currency. As in result, the U.S. 10-year Treasury yields fell below 0.60%, down 3-basis points (bps), whereas the U.S. stock futures also mark losses of near 1.0% by the press time. Even so, stocks in Asia-Pacific are moderately positive after the recent Aussie, Japan data.

Lastly, Tokyo also reporting a record hit in daily coronavirus (COVID-19) cases extended school holidays through May 06. Recently, Japan’s Economy Minister Nishimura said that we would consider support for production rise and adopting of ECMO as part of the economic plans to combat from the COVID-19.

Daily Support and Resistance

S1 105.37
S2 106.64
S3 107.08

Pivot Point 107.91

R1 108.35
R2 109.17
R3 110.44

USD/JPY – Trading Tips

On Friday, the technical side of the market continues to exhibit choppy trading sessions within a wide trading range of 108.650 – 107.250. The best idea is to buy at the lower limit 107.250 and sell below 108.650 for now, but on the news release of U.S. nonfarm payroll, we can experience a potential breakout in the USD/JPY pair.

The USD/JPY is trading at 108.270, consolidating sideways, right above a next support level of 107.750. On the higher side, a bullish breakout of 108.650 resistance level can lead the USD/JPY prices higher towards 109.750 level. Until then, we should look for doing choppy trading by selling below 108.600 and buying over 107.250. Below 107.200, the next support will stay around 105.990.

All the best for today!

Tags Daily Brief, EURUSD, Forex, Fundamental Analysis, GBPUSD, Technical Analysis, trading, USDJPY

Forex Market Analysis

Daily F.X. Analysis, April 02 – Top Trade Setups In Forex – U.S. Jobless Claims Shares the Stage

Post author By Ali B.
Post date 2 April, 2020
No Comments on Daily F.X. Analysis, April 02 – Top Trade Setups In Forex – U.S. Jobless Claims Shares the Stage

On the forex front, the ICE U.S. Dollar Index rose 0.5% on the day, to 99.47, supported by weak but better-than-expected U.S. economic data. On Thursday, the eyes will remain on the European Commission, which is due to report February January PPI (-0.8% on year expected). In the U.K., the Nationwide Building Society will publish its house price index for March (flat on month expected).

The U.S. Labor Department will post initial jobless claims in the week ended March 28 (3.5 million expected). The Commerce Department will report February trade balance (40 billion dollars deficit expected), factory orders (+0.2% on month expected), and final readings of durable goods orders (+1.2% on month expected).

Economic Events to Watch Today

EUR/USD – Daily Analysis

The EUR/USD slid 0.7% to 1.0952. Official data showed that the eurozone’s jobless rate fell to 7.3 in February (7.4% expected and in February), while German retail sales grew 1.2% on the month (+0.1% estimated).

Overall, the market is lacking trading volume and volatility, but the focus will remain on the European economic events. The European Commission will report February January PPI (-0.8% on year expected).

The market risk-off sentiment could more worsen if the U.S. initial jobless claims ignore past expectations, which will send the EUR/USD currency pair to the fresh lowest level.

Besides the weekly data, the EUR/USD currency pair will likely take clues from the U.S. trade balance and factory orders, which both are scheduled to release during the North American trading hours. The European data calendar seem empty with just Eurozone Producer Price Index, due for release at 09:00 GMT.

Daily Support and Resistance

S1 1.0772
S2 1.0886
S3 1.0958

Pivot Point 1.0999

R1 1.1071
R2 1.1112
R3 1.1226

EUR/USD– Trading Tips

On Thursday, the EUR/USD is trading bearish at 1.097, having an immediate support level of around 1.0910. On the 4-hour chart, the EUR/USD has violated the support level of 1.0965, which is now working as a resistance. The horizontal breakout support may drive the selling trend in the EUR/USD pair until 1.0845. On the higher side, the EUR/USD pair is facing resistance at 1.1050 area. Bullish crossover of 1.1050 area can open further room for buying until 1.1145 level. Let’s consider taking selling trades below 1.0960 today.

GBP/USD– Daily Analysis

The GBP/USD lost 0.3% to 1.2382. Yesterday, Sterling surged as traders reconciled their portfolios before the end of the first quarter of 2020, although analysts said the currency remained fragile. While than expected, economic events throughout the first quarter continued to weigh on the market’s risk-tone during the early Asian session.

The virus forced the global rating agency Fitch towards taking action on the eighteen United Kingdom Banking sector to reflect the downside risks to their credit profiles. To control the deadly disease, the British policymakers ordered almost 2-million testing kits from China; half of them will come this week, whereas officials are still evaluating the accuracy of kits.

Whereas, Wall Street dropped 4% because President Trump already gave warning to the USA about the painful two weeks ahead. Although, the White House expected that the coronavirus pandemic could take 100,000 to 240,000 lives, even if the U.S. follows social distancing guidelines.

While the U.S. cases crossed the 200,000 marks, moreover, the Fed also took measures to keep large banks liquid. Looking forward, the U.S. and the U.K. government’s respective policy measures to control the disease will be the major event to watch for near-term direction; the U.S. Jobless Claims will also be essential to watch.

Later in the day, the U.S. initial jobless claims are scheduled to release at 12:30 GMT. After a record, 3.283 million claims in the week to March 21, the Bloomberg median forecast is for an even more stunning 3.70 million claims were lodged this week. Continuing claims for the week to March 21 are seen jumping from 1.8mn to 4.94mn, which is causing a surge in the safe-haven appeal.

Daily Support and Resistance

S1 1.217
S2 1.2278
S3 1.2334

Pivot Point 1.2387

R1 1.2443
R2 1.2495
R3 1.2604

GBP/USD– Trading Tip

The GBP/USD trade sideways in between the same trading range of 1.2275 – 1.2425. On the 4 hour timeframe, the cable has formed neutral candles as we may not see further trends until and unless the pair manages to come out of this narrow range. For that reason, the pair needs a solid fundamental reason, which we are not expecting from the United Kingdom today. Let’s see if U.S. claims help drive some price action in the market.

On the 4-hour timeframe, the GBP/USD pair is pretty much likely to find resistance around 1.2470, along with support around 1.2278. In the case of market breaks bellow 1.2278, we may see GBP/USD prices heading into the selling zone until 1.2100 and 1.2005. Whereas, the chances of buying remains solid over 1.2275 until 1.2520.

USD/JPY – Daily Analysis

The USD/JPY is flashing green but reversed almost 30 pips from the early Asian high level. The pair is still struggling to hold its gain above 107.00 due to the greenback, which is exhibiting a fresh mild weakness after moderate recovery in the equity market. However, the slight improvement in the global risk sentiment also weakened the safe-haven Japanese yen and provided some lift to the pair during the early part of Thursday.

At this moment, the USD/JPY is trading at 107.22 and consolidates in the range between the 107.06 – 107.57. Where, the intensifying fears regarding the economic recession from the coronavirus pandemic and a recent decline in the U.S. Treasury bond yields capped further gains in the pair, instead prompted some fresh selling at higher levels.

On the other hand, Tokyo also reporting a record hit in daily coronavirus (COVID-19) cases extended school holidays through May 06. Recently, Japan’s Economy Minister Nishimura said that we would consider support for production rise and adopting of ECMO as part of the economic plans to combat from the COVID-19.

Daily Support and Resistance

S1 105.37
S2 106.64
S3 107.08

Pivot Point 107.91

R1 108.35
R2 109.17
R3 110.44

USD/JPY – Trading Tips

The USD/JPY is trading at 107.270, consolidating sideways, right above an immediate support level of 107. The USD/JPY’s trading range has narrowed further as it continues to trade within 107.600 – 106.900. We see neutral candles, which may trigger a breakout at any side of the market. But the bullish breakout of 108.650 resistance level can lead the USD/JPY prices higher towards 109.750 level. Until then, we should look for doing choppy trading by selling below 108.600 and buying over 107.250. Below 107.200, the next support will stay around 105.990. All the best for today!

Tags Daily Brief, EURUSD, GBPUSD, USDJPY

Forex Market Analysis

Daily F.X. Analysis, April 01 – Top Trade Setups In Forex – Eyes on Advance ADP Figures

Post author By Ali B.
Post date 1 April, 2020
No Comments on Daily F.X. Analysis, April 01 – Top Trade Setups In Forex – Eyes on Advance ADP Figures

The U.S. dollar failed to keep its momentum, with the Dollar Index marking a day-high of 99.93 before closing down 0.2% on the day to 99.01. Later today, eyes will be on the Markit as it will publish final readings of March Manufacturing PMI for the eurozone (44.6 expected), Germany (45.5 expected), France (42.9 expected), the U.K. (47.0 expected) and the U.S. (48.0 expected). The European Commission will report February jobless rate (steady at 7.4% expected). The German Federal Statistical Office will post February retail sales (+0.1% on month expected). Here’s a technical and fundamental outlook for today…

Economic Events to Watch Today

EUR/USD – Daily Analysis

The EUR/USD was broadly flat at 1.1027. Official data showed that the eurozone’s CPI grew 0.7% on year in March (+0.8% expected), while the German jobless rate was steady at 5.0% (5.1% estimated). Later today, the eurozone’s February jobless rate (7.4% expected) and German retail sales (+0.1% on month estimated) will be released.

Italy marked as the second-highest country of confirmed cases in the world after the United States (140,470). Total cases are 92,472 confirmed, marking up the highest death rate in the world.

Today, the manufacturing data are also scheduled to release in this day later. A disappointment on expectations by a big margin will likely send the greenback lower across the board. The European Commission will report February jobless rate (steady at 7.4% expected). The German Federal Statistical Office will post February retail sales (+0.1% on month expected).

Looking forward, all traders now keep their eyes on the German retail sales and manufacturing data, which is scuddled to release on at 06:00 GMT. The coronavirus headlines will take a driver’s seat while investors are likely to hold cash in the form of U.S. dollars due to intensifying coronavirus concerns.

Daily Support and Resistance

S1 1.0772
S2 1.0886
S3 1.0958

Pivot Point 1.0999

R1 1.1071
R2 1.1112
R3 1.1226

EUR/USD– Trading Tips

On Wednesday, the EUR/USD is trading slightly bearish at 1.097, having an immediate support level of around 1.0947. As we can see on the 4-hour chart above, the EUR/USD had formed a bullish channel supported the pair around 1.1060, but has now been violated. The breakout of an upward channel has a huge potential to drive the selling trend in the EUR/USD currency pair.

On the higher side, the EUR/USD pair is facing resistance at 1.1050 area. Bullish crossover of 1.1050 area can open further room for buying until 1.1145 level. Whereas, the chances of a bearish bias will remain strong if the pair closes a 4-hour candle below 1.0950 level today. On the lower side, the target is likely to target 1.0947 and 1.0885.

GBP/USD– Daily Analysis

The GBP/USD was little changed at 1.2413. A day before, Sterling surged as traders reconciled their portfolios before the end of the first quarter of 2020, although analysts said the currency remained fragile.

However, the worse than expected economic events throughout the first quarter continued to weigh on the market’s risk-tone during the early Asian session.

Today, the US ADP Employment report and the ISM Manufacturing data are scheduled to release in this day later. A miss on expectations by a significant margin will likely send the greenback lower across the board. However, the losses could be temporary, mainly because the coronavirus outbreak is not showing any sign of slowing down with the number of cases in the U.S. continue to rise and reached above 177,000 so far.

The economic calendar is mostly empty for the U.K.; therefore, the coronavirus updates will keep the driver’s seat until the U.S. session. Moreover, the ADP Employment Change and March month activity numbers from the world’s largest economy will be essential to watch for taking fresh direction.

Daily Support and Resistance

S1 1.202
S2 1.2208
S3 1.2319

Pivot Point 1.2396

R1 1.2507
R2 1.2584
R3 1.2772

GBP/USD– Trading Tip

The GBP/USD hasn’t moved much as it continues trading sideways around within a narrow trading range of 1.2275 – 1.2425. On the 4 hour timeframe, the Cable is forming bullish and bearish candles, showing a tug of war between the bulls and bears. We may not see further trends until and unless the pair manages to come out of this narrow range. In order to do this, the pair needs a solid fundamental reason, which we are not expecting from the United Kingdom.

USD/JPY – Daily Analysis

The USD/JPY currency pair looking flat and hit the high of 107.95 from the low o 107.25 mainly due to the greenback continue to pick the bids as a safe-haven demand after the report in the U.S. said that experts expecting the virus could kill almost 100,000 and 240,000 Americans despite social distancing measures.

The USD/JPY got support also from the Bank of Japan’s Tankan corporate survey, which showed Japanese manufacturers turned downbeat for the first time in seven years. The USD/PY is trading at 107.58 and consolidates in the range between the 107.25 – 107.94.

Besides, the risk sentiment in the market is getting worse time by time due to intensifying concerns over the coronavirus (COVID-19). As in result, the USD/JPY pair dropped earlier as JPY was getting strong bids due to its safe-haven demand while the U.S. dollar strength was supporting the pair to stay bullish.

As per the latest report, the coronavirus outbreak is not showing any sign of slowing down with the number of cases in the U.S. continue to rise and reached above 177,000 so far. The coronavirus cases continue to increase in Europe, with Spain and Italy reporting a total of 200,000 cases so far.

The U.S. President Trump was increasing the possibilities of another major infrastructure package or some $2trn within the next relief bill. At the same time, the Democratic House Speaker, Nancy Pelosi, also declared that the United States should start developing and discussing the 4th stimulus bill. Thus, the USD/JPY pair can trade bearish in the wake of a weaker dollar and stronger yen.

Daily Support and Resistance

S1 105.37
S2 106.64
S3 107.08

Pivot Point 107.91

R1 108.35
R2 109.17
R3 110.44

USD/JPY – Trading Tips

On Wednesday, the USD/JPY is trading at 107.570, consolidating sideways, right above an immediate support level of 107.200. The USD/JPY’s trading range remains narrow as the upper limit stays at 108.500, and the lower limit rests at 107.150.

We see neutral candles, which may trigger a breakout at any side of the market. But the bullish breakout of 108.650 resistance level can lead the USD/JPY prices higher towards 109.750 level. Until then, we should look for doing choppy trading by selling below 108.600 and buying over 107.250. Below 107.200, the next support will stay around 105.990. All the best for today!

Tags Daily Brief, EURUSD, Forex, Fundamental Analysis, GBPUSD, Technical Analysis, trading, USDJPY

Forex Signals

Double Top for Cable

This is a Double top formation in the cable pair, where price action hit the key 1.2300 area on two occasions and where the UK Prime Minister Boris Johnson has tested positive for the Covid-19 virus.

Traders will be looking for price action to move lower because of the double top and also because of the bad news regarding the Prime Minister, although his symptoms are said to be not serious and certainly we all wish him a speedy recovery and hope he remains in control of the United Kingdom

This is also based on the fact that cable has rallied over 1000 pips recently to reach the high recent high of just over the 1.2300 handle, and where we will expect some profit-taking. Also taking into consideration the dollar index has come off its highs and is currently reversing some of its recent losses, and this would help us in a hypothesis where the cable pair should now move lower.

Risk::

Standard Lot $1200

Mini Lot $120

Micro Lot $12

Tags Forex, GBPUSD, trading

Forex Market Analysis

Daily F.X. Analysis, March 27 – Top Trade Setups In Forex – Weaker Dollar In Play!

Post author By Ali B.
Post date 27 March, 2020
No Comments on Daily F.X. Analysis, March 27 – Top Trade Setups In Forex – Weaker Dollar In Play!

The greenback fell against its major peers, with the Dollar Index dipping 0.7% on the day to 100.94, down for a 4th consecutive session. France’s INSEE will release March Consumer Confidence Index (91 expected).

The U.S. Commerce Department will report February personal spending (+0.2% on month expected) and personal income (+0.4% on month expected). The University of Michigan (UOM) will report its final rea1dings of the March Consumer Sentiment Index (90.0 expected).

Economic Events to Watch Today

EUR/USD – Daily Analysis

The EUR/USD rallied 1.5% to 1.1047, posting a four-day winning streak. The risk-on market sentiment is also pushing the U.S. Dollar lower and sending the pair higher. The recovery in the risk-sentiment came after the U.S. Senate approved of the original $2 trillion fiscal stimulus package.

A series of economic fundamentals drove the pair, and even today market is likely to move on news. In particular, the U.S. initial jobless claims are expected to have risen to 1,000K from the preceding week’s 281K figure in the week ended March 20.

On the other hand, the EUR/USD currency pair will also take cues from the Kansas Fed Manufacturing Activity index for March. The European Union’s upcoming emergency meeting to discuss further steps to combat the virus will be essential to watch.

Markets are assuming that the Eurozone is going for a deep slowdown, and they need aggressive stimulus to stop the fallout from the virus outbreak. Later today, eyes will be on France’s INSEE, which is due to release March Consumer Confidence Index (91 expected).

Daily Support and Resistance

S1 1.0673
S2 1.0835
S3 1.0935

Pivot Point 1.0997

R1 1.1097
R2 1.1159
R3 1.1321

EUR/USD– Trading Tips

The EUR/USD is trading bullish at 1.1025, having an immediate support level of around 1.0947. The bullish channel has already been violated on the higher side, and it’s supporting is the bullish bias in the EUR/USD pair. On the higher side, the EUR/USD pair is facing resistance at 1.1070 area.

Bullish crossover of 1.1070 area can open further room for buying until 1.1194 level. Whereas, the chances of a bearish bias will remain strong if the pair continues to hold below 1.1070 level today. On the lower side, the target is likely to stay at 1.0947 and 1.0885.

GBP/USD– Daily Analysis

The GBP/USD surged 2.6% to 1.2192. The Bank of England said, after announcing a rate cut and additional bonds purchase last Thursday, it can expand asset purchases further if necessary. On the other hand, official data showed that U.K. retail sales declined 0.3% on month in February (+0.2% expected).

The policymakers could be called with the 24-hour prior notice to vote on the coronavirus support package on Friday. On the U.S. front, the coronavirus fears in the U.S. also increased with the death losses crossed 1,000 figures and an increase of 12,000 cases recorded in the single day on Wednesday.

The Bank of England (BOE) failed to offer any fireworks due to a lack of resources while disappointing U.K. Retail Sales, to 0.0% from 0.8% YoY forecast, also couldn’t recall the bears.

Later today, the U.S. Commerce Department will report February personal spending (+0.2% on month expected) and personal income (+0.4% expectation). The University of Michigan will report Consumer Sentiment Index (90.0 expected).

Daily Support and Resistance

S1 1.1339
S2 1.1535
S3 1.1662

Pivot Point 1.1731

R1 1.1858
R2 1.1927
R3 1.2122

GBP/USD– Trading Tip

The GBP/USD has violated the double top resistance level of 1.1945, and the pair now trades around 1.2180, the level which is marked as horizontal resistance. Today, the bullish breakout of the 1.2300 level can open the buying trend until the next resistance level of 1.2338 (50% Fibo level) and 1.2510 level, which accounts for a 61% retracement. On the lower side, the Cable can find support around 1.2035 and 1.1930. Let’s look for buying trades over the 1.1945 support level and selling below 1.2350 today.

USD/JPY – Daily Analysis

The USD/JPY currency pair flashing red and hit the session low near the 108.50, mainly due to broad-based U.S. Dollar weakness. While the greenback continues to lose its ground in the wake of the U.S. relief package. At the time of writing, the USD/JPY is trading at 108.78 and consolidates in the range between the 108.25 – 109.72.

However, the currency pair faced rejection at 109.72 in early Asia and dropped below the 100-day average support at 109.00 a few minutes before press time to hit a session low of 108.55.

Whereas, the major Asian equity indices like Japan’s Nikkei, Hong Kong’s Hang Seng and South Korea’s Kospi are flashing green.

It is worth to mention that the traders did not give much more attention to the Japanese Yen demand. So, the reason behind the pairs declines is the broad-based greenback weakness. The dollar index, which tracks the value of the greenback against majors, is currently trading at weekly lows near 99.30, having declined by nearly 200 pips on Thursday.

The U.S. dollar continues to lose its ground due to the unprecedented fiscal and monetary stimulus by the U.S. government and the Federal Reserve in the last five days.

Daily Support and Resistance

S1 106.51
S2 108.16
S3 108.75
Pivot Point 109.8
R1 110.4
R2 111.45
R3 113.09

USD/JPY – Trading Tips

On Friday, the demand for safe-haven assets such as gold and Japanese yen has surged in the wake of an increased number of coronavirus cases around the globe. Consequently, the USD/JPY pair has dropped to trade at 108.350, down from the 109 level. On the 4 hour chart, the USD/JPY has violated the bullish channel, which is now suggesting bearish bias in the USD/JPY.

The USD/JPY prices are holding around the next support level of 108.350, and around this level, we can expect USD/JPY to bounce off until 109.850. But in case, the USD/JPY exhibits a bearish breakout below 108.350 level; the pair may drop further until 106.450.

All the best for today!

Tags Daily Brief, EURUSD, Forex, Fundamental Analysis, GBPUSD, Technical Analysis, Trade Setup, trading, USDJPY

Forex Signals

GBP/USD Breaks over Double Top Pattern – Buckle Up for Buying

Post author By Ali B.
Post date 26 March, 2020
No Comments on GBP/USD Breaks over Double Top Pattern – Buckle Up for Buying

The GBP/USD trades bullish around 1.2030 in the wake of less dovish than expected monetary policy decisions. The central bank left the interest rate unchanged at 0.10%. However, it has warned that the measure and term of the economic collapse arising from the coronavirus pandemic will be “wide and dramatic but should eventually prove short-lived.”

The BOE Monetary Policy Committee (MPC) fixes monetary policy to reach the 2% inflation mark and whereby advocates to support growth and employment. In that context, its challenge over recent weeks has been to return to the severe economic and financial disorder produced by the spread of Covid-19.

Technically, the GBP/USD pair has violated the double top resistance level of 1.1930 level on the 4-hour chart. Closing of candles above this confirms bullish breakout and opens up further room for buying until 38.2% Fibonacci resistance level of 1.2135. At the same time, the MACD is also staying in a bullish zone. Support can be found around the 1.1946 zones.

Entry Price: Buy at 1.20286
Take Profit 1.21686
Stop Loss 1.19086
Risk/Reward 1.17

Profit & Loss Per Standard Lot = -$1200/ +$1400
Profit & Loss Per Micro Lot = -$120/ +$140

Tags Forex, Forex Signal, GBPUSD, trading

Forex Market Analysis

Daily F.X. Analysis, March 26 – Top Trade Setups In Forex – U.K. Monetary Policy In Focus!

Post author By Ali B.
Post date 26 March, 2020
No Comments on Daily F.X. Analysis, March 26 – Top Trade Setups In Forex – U.K. Monetary Policy In Focus!

The greenback weakened against its major rivals, with the U.S. Dollar Index dropping 0.7% on the day to 100.94, down for a fourth straight session. For now, the focus shifts to the major economic events which will be releasing through the day.

The Bank of England (BOE) will hold its monetary policy meeting, after a rate cut and additional bonds purchase announced last Thursday (March 19). The European Central Bank will publish the Eurozone’s M3 money supply in February (+5.2% on-year expected).

Germany’s GfK Consumer Confidence Index for April will be released (7.5 expected). France’s INSEE will release March indicators on business confidence (97 expected) and manufacturing confidence (93 expected).

Economic Events to Watch Today

EUR/USD – Daily Analysis

The EUR/USD jumped 0.9% to 1.0888, posting a three-day rebound. Most of the moment, the pair was driven by a series of economic fundamentals, and even today market is likely to move on news. In particular, the U.S. initial jobless claims are expected to have risen to 1,000K from the preceding week’s 281K figure in the week ended March 20.

If jobless claims fall in the 2 to 3 million range, which seems fairly possible, we will likely see a notable sell-off in the greenback. In that case, the EUR/USD currency pair could find a bid over the 50-day moving average at 1.10. On the other hand, the EUR/USD currency pair will also take cues from the Kansas Fed Manufacturing Activity index for March.

Meanwhile, the European Union’s upcoming emergency meeting to discuss further steps to combat the virus will be essential to watch. Markets are assuming that the Eurozone is going for a deep slowdown, and they need aggressive stimulus to stop the fallout from the virus outbreak.

Looking forward, the European Central Bank will release its monthly Economic Bulletin while the weekly Initial Jobless Claims, Goods Trade Balance, and Q4 Gross Domestic Product (GDP) data from the U.S. will be key to watch.

Daily Support and Resistance

S1 1.0531
S2 1.0673
S3 1.0742

Pivot Point 1.0815

R1 1.0885
R2 1.0957
R3 1.11

EUR/USD– Trading Tips

On Thursday, the EUR/USD is trading bullish at 1.0935, having an immediate support level of around 1.0890. The bullish channel that you can see in the chart above is also supporting the bullish bias in the EUR/USD pair, and it’s supporting the direct currency pair at 1.0890.

Closing of the bullish engulfing candle and three bearish two-hourly candles above 1.0890 support is signifying a bullish breakout, which can lead the pair towards 1.0959 resistance level. While the bearish breakout of 1.0890 can lead the EUR/USD prices towards 1.0780. Let’s consider staying bullish above 1.0890 today with an initial target of 1.0950.

GBP/USD– Daily Analysis

The GBP/USD climbed 0.6% to 1.1833. Official data showed that U.K. CPI grew 1.7% on year in February as expected, compared with a 1.8% growth in January. Later today, the Bank of England will hold its monetary policy meeting, after a rate cut and additional bonds purchase announced last Thursday. Also, U.K. retail sales data for February will be released (+0.2% on month estimated).

Later in the day, the Bank of England will hold its monetary policy meeting, after a rate cut and additional bonds purchase announced last Thursday (March 19). While the U.K. Retail Sales are expected to remain unchanged at 0.80% YoY but any major chances likely offer a new direction to the GBP/USD prices. The U.K. Office for National Statistics will report February retail sales (+0.2% on month expected).

Daily Support and Resistance

S1 1.1339
S2 1.1535
S3 1.1662

Pivot Point 1.1731

R1 1.1858
R2 1.1927
R3 1.2122

GBP/USD– Trading Tip

The GBP/USD has violated a broad trading range of 1.1400 – 1.1885, and the pair now trades around 1.1930, the level which is marked as a triple top. The Bank of England’s rate decision today will play a major role in determining it’s a trend. Today, the bullish breakout of the 1.1930 level can open the buying trend until the next resistance level of 1.2185 (38.2% Fibo level) and 1.2300 level, which accounts for a 50% retracement. On the lower side, the Cable can find support around 1.1665 and 1.1445. Let’s look for buying trades over the 1.1945 resistance level and selling below the same today.

USD/JPY – Daily Analysis

During Thursday’s early Asian session, the USD/JPY dropped to a session low of 110.45 from the high of 111.30 after the market sentiment shifts, mainly due to the United States Congress, which failed to come together and agree on relief package plan after facing recent hurdles. While the broad-based USD weakness also undermines the currency pair.

At the moment, the USD/JPY is trading at 110.52 and consolidates in the range between the 110.38 – 111.31. However, the safe-haven Japanese yen is continuing its bullish move, which seen in early Asia sessions due to fresh losses in the U.S. stock futures.

The risk-off market sentiment strengthened, pushing the futures tied to the S&P 500 futures lower. At press time, the index futures are reporting a 1% decline. On the other hand, the coronavirus outbreak is not showing any sign of slowing down in the U.S., Japan, and European countries.

There was a sharp rise in cases in Tokyo and gave a warning about the lockdown, which eventually strengthing the risk-off market sentiment and boosting the safe-haven Japanese yen.

Daily Support and Resistance

S1 107.85
S2 109.43
S3 110.32

Pivot Point 111.02

R1 111.91
R2 112.6
R3 114.19

USD/JPY – Trading Tips

The intensified safe-haven demand has started driving the bearish trend in the USD/JPY currency pair as it trades at 110.350, down from 111 level. On the 4 hour chart, the USD/JPY was trading in a bullish channel, which supported the USD/JPY prices around 110.650. Since this level has already been violated, now it’s going to work as a resistance for the USD/JPY.

As forecasted earlier, a bearish breakout of 110.600 can lead its prices toward 109.600 level, and that’s what the market is trying to do now. The USD/JPY prices are heading towards the next support level of 109.850, and around this level, we can expect USD/JPY to bounce off a bit. However, in case of a bearish breakout of 109.850 level, the pair may drop further until 108.450.

All the best for today!

Tags Daily Brief, EUR-USD, Forex, Fundamental Analysis, GBPUSD, Support and Resistance, Technical Analysis, Technical Outlook, trading, USDJPY

Forex Market Analysis

Daily F.X. Analysis, March 25 – Top Trade Setups In Forex – Brace for U.K. Inflation Figures!

Post author By Ali B.
Post date 25 March, 2020
No Comments on Daily F.X. Analysis, March 25 – Top Trade Setups In Forex – Brace for U.K. Inflation Figures!

The U.S. stocks soared on news of Congress is close to passing a substantial coronavirus relief bill. The sentiment was further boosted by President Donald Trump’s comments that he would like the U.S. economy to reopen by Easter in mid-April. The Dow Jones Industrial Average surged 2113 points (+11.4%) to 20,704, its biggest one-day percentage gain since 1933. The S&P 500 jumped 209 points (+9.4%) to 2,447, and the Nasdaq 100 rose 546 points (+7.8%) to 7,553.

Later today, February durable goods orders (preliminary reading, -1.0% on month expected) will be reported.

Economic Events to Watch Today

EUR/USD – Daily Analysis

The EUR/USD advanced 0.8% to 1.0809. The Markit Eurozone Manufacturing PMI slid to 44.8 in March (39.0 expected) from 49.2 in February and Services PMI sank to 28.4 (39.5 expected) from 52.6.

The EUR/USD currency could drop below the 1.08 if the coming German IFO Expectations Index for March disappoints expectation of 82, strengthening recession fears. Apart from this, U.S. Durable Goods data for February is also scheduled to release.

The traders need progress soon in the global market; otherwise, the risk assets may suffer another selloff, boosting haven demand for the U.S. dollar. At press time, the S&P 500 futures are reporting a 1.4% drop.

The U.S. dollar continues trading in the red territory against majors, as shown by the 0.3% drop in the dollar index. Federal Reserve’s unlimited quantitative easing plan has decreased pressure in funding markets and bought time for the politicians.

The headlines regarding coronavirus and stimulus package by the Federal Reserve will be key to watch. Eyes will be on the German IFO Expectations Index for taking new directions.

Daily Support and Resistance

S1 1.0531
S2 1.0673
S3 1.0742

Pivot Point 1.0815

R1 1.0885
R2 1.0957
R3 1.11

EUR/USD– Trading Tips

On Wednesday, the EUR/USD is trading sideways, forming higher’s high and higher’s a low pattern, which indicates stronger chances of a bullish bias in the market. The EUR/USD is trading around 1.0815, and it’s forming neutral candles while trading in an upward channel, which may support the pair around 1.0775.

On the higher side, the EUR/USD pair may face resistance around 1.0880, and above this, the pair has the potential to target the next resistance level of 1.0930 while the EUR/USD has odds of staying bearish below 1.0920 to target 1.0805.

GBP/USD– Daily Analysis

The GBP/USD surged 2.1% to 1.1789 after the U.K. government ordered lockdown measures to stop coronavirus spreading. On the other hand, the Markit U.K. Manufacturing PMI fell to 48.0 in March (45.0 expected) from 51.7 in February, and Services PMI dipped to 35.7 (45.0 estimated) from 53.2.

The GBP/USD currency pair may drop to their lowest level if the UK CPI data releases sluggish while a surprise positive figures could help the pair extend its fresh recovery rally from the multi-year low.

The Consumer Price Index published by the Office for National Statistics is a gauge of price moves by the comparison among the retail prices goods and services. The purchasing power of GBP is slowed down by inflation.

The CPI is a leading indicator to measure inflation and show changes in purchasing trends. Usually, a high figure is understood as positive (or bullish) for the GBP, while a sluggish figure is seen as negative (or Bearish). Let’s look at the technical side of the market.

Daily Support and Resistance

S1 1.1339
S2 1.1535
S3 1.1662

Pivot Point 1.1731

R1 1.1858
R2 1.1927
R3 1.2122

GBP/USD– Trading Tip

The direct currency pair GBP/USD maintains a broad trading range of 1.1400 – 1.1885 for another day as traders seem to wait for the U.K. Inflation today and Bank of England’s rate decision tomorrow. Today, the bullish breakout of the 1.1889 level can open the buying trend until the next resistance level of 1.2185 (38.2% Fibo level) and 1.2300 level, which accounts for a 50% retracement. On the lower side, the Cable can find support around 1.1665 and 1.1445.

A bearish breakout of 1.1425 level can lead the Cable towards the next support area of 1.1050. The MACD is tossing above and below zero as investors are unable to determine the trend of the market.

USD/JPY – Daily Analysis

During the Wednesday early Asian session, the USD/JPY currency pair found on the bullish track and hit the session high near 111.58, mainly due to the recovery in the market risk sentiment because the United States policymakers agreed on COVID-19 bill. The USD/JPY is trading at 111.48 and consolidates in the range between the 110.75 – 111.56.

After the two-days of disappointment, the Senate Democrats and Republicans ultimately agreed on the Trump administration-backed stimulus package plan. However, the raised expectations of the expected $2 trillion package to control the deadly virus impact and fresh strategy of reducing coronavirus (COVID-19) cases from Italy also improved the market risk sentiment.

Whereas, the United States 10-year treasury yields rose 4-basis points (bps) to 0.853% while the U.S. stock futures also decreased earlier losses. The Asian stocks flashing green and marked slight gains by the press time, which show’s drop in demand for safe-haven assets such as gold and Japanese yen.

For the time being, the traders are keenly awaiting the details of the voting as well as the times of the package for taking additional direction. However, the U.S. Durable Goods Orders for January and additional coronavirus headlines will be key to watch.

Daily Support and Resistance

S1 107.85
S2 109.43
S3 110.32

Pivot Point 111.02

R1 111.91
R2 112.6
R3 114.19

USD/JPY – Trading Tips

Technically, the safe-haven currency pair USD/JPY hasn’t changed a lot as it continues to consolidate around 111.300. On the 4 hour chart, the USD/JPY has formed a bullish channel that is still intact, and it’s pretty much likely to support the USD/JPY prices around 110.650.

A bearish breakout of 110.600 can lead its prices toward 109.600 level. The USD/JPY prices towards the next support level of 108.350, and around this level, we can expect USD/JPY to bounce off again. Conversely, the pair faces resistance around 111 and 112.190 today. Let’s stay bullish above 109.650 and bearish below the same level today.

All the best for today!

Tags Daily Brief, EURUSD, Forex, Fundamental Analysis, GBPUSD, Technical Analysis, Technical Outlook, trading, USDJPY

Forex Market Analysis

Daily F.X. Analysis, March 24 – Top Trade Setups In Forex – Eyes on Manufacturing PMI Figures!

Post author By Ali B.
Post date 24 March, 2020
No Comments on Daily F.X. Analysis, March 24 – Top Trade Setups In Forex – Eyes on Manufacturing PMI Figures!

The U.S. Dollar Index regained bullish bias at 102.81, while U.S. stock scored daily downside limits. Federal Reserve Bank of St. Louis President James Bullard said U.S. jobless rate might soar to 30% in the second quarter, and the Fed can provide more support if necessary. The U.S. official data showed that existing home sales amounted to an annualized rate of 5.77 million units in February, higher than expected.

Later today, eyes will be on the U.K. and U.S. manufacturing figures, which have the potential to price action…

Economic Events to Watch Today

EUR/USD – Daily Analysis

This morning, EUR/USD fell 0.2% to 1.0673, following a 0.4% gain on Friday. Later today, the eurozone’s March Consumer Confidence Index (-14.0 expected) will be released. The EUR/USD pair may cross the strong resistance level if the risk-off market sentiment gets more worsens ahead. Eventually, it will likely fuel deeper losses in the greenback and may increase demand for the common currency.

The EUR/USD currency pair may come under pressure in the coming European session if the Eurozone and German preliminary Manufacturing PMIs for March ignore expectations. The data is expected to surprise on the lower side, in the wake of the coronavirus outbreak and may show investors how much economy is affected by the COVID-19 impact.

Looking forward, the traders will keep their eye on the Eurozone and German preliminary Manufacturing PMIs for taking fresh direction, and it will likely leave the impact on the pair movement ahead. As well as, the United States and Federal Reserve incomplete deal-related headlines also will be key to watch.

Daily Support and Resistance

S1 1.043
S2 1.0592
S3 1.0678

Pivot Point 1.0753

R1 1.0839
R2 1.0914
R3 1.1075

EUR/USD– Trading Tips

The EUR/USD traded bearishly as it as violated and closed below horizontal support becomes a resistance level of 1.0990. The EUR/USD is trading around 1.0750, and it’s forming a lower-lows pattern on the 4-hour chart, which mostly drives a continuation of a selling trend.

Right now, the EUR/USD is trading at 1.0720, consolidating in a narrow trading range of 1.0817 – 1.0660. The EUR/USD is facing hurdles around 1.0817, and above this, the pair has the potential to target the next resistance level of 1.0930. While the EUR/USD has odds of staying bearish below 1.0920 to target 1.0805. On the daily chart, a violation of 1.0605 can extend the selling trend until 1.0550.

GBP/USD– Daily Analysis

The GBP/USD retreated 0.7% to 1.1557, after a 1.4% rally in the prior session. The GBP/USD pair slipped due to a stronger dollar after the U.S. official data showed that housing starts posted at an annualized rate of 1.599 million units in February (1.500 million units expected). The U.K.’s emergency coronavirus legislation will also reach the House of Lords for additional discussion before turning into the law some time by the end of the week.

However, the risk-sentiment continues to flash green with the U.S. ten-year treasury yields, S&P 500 Futures, and Asian stocks are all on their ways to recover the latest losses; while the headline Manufacturing and Services PMIs from the U.K. and the U.S. are likely to move into the contraction phase, with readings below 50.00.

Looking forward, the traders will keep their eye on the Flash Manufacturing PMI and FPC Meeting Minutes for taking fresh direction. As well as, the United States and Federal Reserve incomplete deal-related headlines also will be key to watch.

Daily Support and Resistance

S1 1.105
S2 1.1318
S3 1.1456

Pivot Point 1.1586

R1 1.1724
R2 1.1853
R3 1.2121

GBP/USD– Trading Tip

On Tuesday, the GBP/USD continues to consolidate in a broad trading range of 1.1400 – 1.1885 as the trend of the market isn’t clear. On the higher side, the bullish breakout of the 1.1885 level can open the buying trend until the next resistance level of 1.2185 (38.2% Fibo level) and 1.2300 level, which markets 50% retracement while the pair has solid chances of bouncing off over 1.1450 level.

A bearish breakout of 1.1425 level can lead the Cable towards the next support area of 1.1050. The MACD is tossing above and below zero as investors are unable to determine the trend of the market.

USD/JPY – Daily Analysis

At the starting of Tuesday’s Asian session, the USD/JPY currency pair hit the bearish track. They dropped to an intra-day low of 110.10, representing 0.69% losses mainly due to broad-based greenback weakness after rising expectations of further delays in the US COVID-19 bill. The USD/JPY is trading at 110.53 and consolidates in the range between the 110.09 – 111.30. Moreover, the currency pair gave little attention to the preliminary readings of Japan’s Jibun Bank PMIs and continued its declining streak.

At the data front, the preliminary readings of March month Jibun Bank Manufacturing PMI dropped below 47.6 to 44.8 in March. Moreover, the Services index dropped from 46.8 before 32.7, the lowest since September 2007. After the U.S. Senators’ failure to receive the much-awaited coronavirus (COVID-19) package bill, U.S. President, Vice President and Treasury Secretary tried to confirm traders that the stimulus package will be agreed soon. Still, he did not succeed in hiding fears of further delays in the relief package.

However, the report came that the Senate is not expected to vote on the Bill today too, and indicated further delays in President Trump’s ‘major’ response to the coronavirus.

On the positive side, the U.S. inflation expectations recovered slightly from the record low after the latest Federal Reserve statement that there is no limit to their Quantitative Easing program.

Daily Support and Resistance

S1 105.08
S2 107.59
S3 109.24

Pivot Point 110.1

R1 111.75
R2 112.61
R3 115.13

USD/JPY – Trading Tips

The USD/JPY pair has shown a slight bearish movement, falling from 110.65 level to 109.580. On the 4 hour chart, the USD/JPY has formed a bullish channel that is still intact, and it’s pretty much likely to support the USD/JPY prices around 109.650.

A bearish breakout of 109.600 level can lead the USD/JPY prices towards the next support level of 108.350, and around this level, we can expect USD/JPY to bounce off again. Conversely, the pair faces resistance around 111 and 112.190 today. Let’s stay bullish above 109.650 and bearish below the same level today.

All the best for today!

Tags Daily Brief, Daily Support and Resistance, EURUSD, Forex, Fundamental Analysis, GBPUSD, Technical Analysis, trading, USDJPY

Forex Market Analysis

Daily F.X. Analysis, March 23 – Top Trade Setups In Forex – Fundamentals Side Remains Light!

Post author By Ali B.
Post date 23 March, 2020
No Comments on Daily F.X. Analysis, March 23 – Top Trade Setups In Forex – Fundamentals Side Remains Light!

During Asian trading hours Monday, the ICE U.S. Dollar Index regained strength at 102.81, while U.S. stock futures hit daily downside limits. Federal Reserve Bank of St. Louis President James Bullard said U.S. jobless rate might soar to 30% in the second quarter, and the Fed can provide more support if necessary.

Later in the day, the European Commission will release the eurozone’s March Consumer Confidence Index (-14.0 expected). In the U.S., the Federal Reserve Bank of Chicago will post February National Activity Index (-0.29 expected).

Economic Events to Watch Today

EUR/USD – Daily Analysis

This morning, EUR/USD fell 0.2% to 1.0673, following a 0.4% gain on Friday. Later today, the eurozone’s March Consumer Confidence Index (-14.0 expected) will be released. The German IFO Business Climate Index dropped to 87.7 in March (88.0 expected) from 96.0 in February.

Moving on, the greenback may come under pressure and may allow EUR/USD to extend the recovery seen in the Asian session if the risk market further recovers in the European trading hour ahead. After the announcement of stimulus, the ECB President Christine Lagarde showed a willingness to use all essential tools to stop the negative impacts of the deadly virus.

Moving on, the EUR/USD pair may cross the strong resistance level if the risk-off market sentiment gets more worsens ahead. Eventually, it will likely fuel deeper losses in the greenback and may increase demand for the common currency.

The economic calendar is light today with the German Bundesbank’s monthly report is scheduled to release during the European trading session. Therefore, the traders may also take cues from the Eurozone Consumer Confidence for March and the Chicago Fed National Activity Index for February for new directions.

Daily Support and Resistance

S1 1.0335
S2 1.0529
S3 1.0615

Pivot Point 1.0723

R1 1.0809
R2 1.0917
R3 1.1111

EUR/USD– Trading Tips

On Monday, the major currency pair EUR/USD traded bearishly as it as violated and closed below horizontal support becomes a resistance level of 1.0990. The EUR/USD is trading around 1.0750, and it’s forming a lower-lows pattern on the 4-hour chart, which mostly drives a continuation of a selling trend.

While the EUR/USD has odds of staying bearish below 1.0920 to target 1.0805. On the daily chart, a violation of 1.0605 can extend the selling trend until 1.0550.

GBP/USD– Daily Analysis

The GBP/USD retreated 0.7% to 1.1557, after a 1.4% rally in the prior session. During the previous week, the Bank of England lowered its benchmark rate by 15 basis points to 0.10%. It announced that it would increase its holdings of U.K. government bonds and sterling non-financial investment-grade corporate bonds by GBP200 billion, to counter the economic shock caused by the coronavirus.

The GBP/USD pair slipped due to a stronger dollar after the U.S. official data showed that housing starts posted at an annualized rate of 1.599 million units in February (1.500 million units expected).

On the other hand, the U.S. Senate’s failure to pass the much-awaited COVID-19 Bill sent the Treasury yields and Asian stocks down. Apart from this, the conference by the G20 Finance Ministers may also offer some intermediate clues, and it will be key to watch. In contrast, the US Chicago Fed National Activity may also give some meaningful inspiration.

The PM’s Chief adviser Dominic Cummings faced criticism about supporting herd immunity. Therefore any progress in the story could also entertain the GBP/USD traders.

Daily Support and Resistance

S1 1.0953
S2 1.1333
S3 1.1492

Pivot Point 1.1713

R1 1.1872
R2 1.2094
R3 1.2474

GBP/USD– Trading Tip

On Monday, the GBP/USD prices are consolidating in a broad trading range of 1.1400 – 1.1885. Yet, the trend of the market isn’t clear as investors are waiting for a solid fundamental to drive further movement in the market. On the higher side, the bullish breakout of the 1.1885 level can open the buying trend until the next resistance level of 1.2185 (38.2% Fibo level) and 1.2300 level, which markets 50% retracement while the pair has solid chances of bouncing off over 1.1450 level. A bearish breakout of 1.1425 level can lead the Cable towards the next support area of 1.1050. The MACD is tossing above and below zero as investors are unable to determine the trend of the market.

USD/JPY – Daily Analysis

During the early Asian session, the USD/JPY currency pair flashing red and dropped below the 110 marks, representing 0.73% losses on the day mainly due to the U.S. Senate’s failure to pass the much-awaited COVID-19 Bill triggered the strong risk-off market sentiment.

The Japanese yen is now finding bids as a safe-haven demand has sent the USD/JPY pair lower. The USD/JPY is trading at 110.08 right now, and it continues to consolidate in the range between the 109.67 – 111.260. However, the USD/JPY was initially trading near 111.25 on Friday, due to broad-based USD strength.

Despite positive signals from U.S. President Donald Trump, the Senate declined to pass the much-awaited incentive to control the deadly virus impact. This news initially sent the U.S. equity futures to the limit down.

The President of the Federal Reserve Bank of Minneapolis, Neel Kashkari, followed the role of St. Louis Federal Reserve President James Bullard, who expected the 2nd-quarter (Q2) GDP to decrease by 50% and the increase in Unemployment Rate to 30%. Meanwhile, the Minneapolis head mentioning that the Fed has unlimited cash to support the financial system. As a result, they are trying to support the U.S. dollar.

On the other hand, the coronavirus (COVID-19) fears continue to increase because numbers of the death toll from the U.S. and Italy rising day by day. The 36 cases reported in New Zealand, which is currently taking the market’s attention. Lastly, Japanese media signaled that the Asian countries might soon ban entries of U.S. travelers.

Daily Support and Resistance

S1 105.08
S2 107.59
S3 109.24

Pivot Point 110.1

R1 111.75
R2 112.61
R3 115.13

USD/JPY – Trading Tips

On Monday, the USD/JPY pair has shown a slight bearish movement, falling from 110.65 level to 109.580. On the 4 hour chart, the USD/JPY has formed a bullish channel that is still intact, and it’s pretty much likely to support the USD/JPY prices around 109.650.

All the best for today!

Tags Daily Brief, EURUSD, Forex, Fundamental Analysis, GBPUSD, Technical Analysis, trading, USDJPY

Forex Market Analysis

Daily F.X. Analysis, March 20– Top Trade Setups In Forex – Stronger Dollar In Play!

Post author By Ali B.
Post date 20 March, 2020
No Comments on Daily F.X. Analysis, March 20– Top Trade Setups In Forex – Stronger Dollar In Play!

The U.S. dollar strengthened further as other major central banks eased their monetary policies. The ICE Dollar Index jumped 1.8% on the day to 102.94, posting a three-day rally to the strongest level since Jan. 2017.

Later today, the European Central Bank will post January’s current account balance. The German Federal Statistical Office will report February PPI (+0.2% on-year expected).

The U.K. Office for National Statistics will release February public sector net borrowing, excluding banking groups (0.8 billion pounds expected).

Economic Events to Watch Today

EUR/USD – Daily Analysis

EUR/USD plunged 2.6% to 1.0662, the lowest level since April 2017. The German IFO Business Climate Index dropped to 87.7 in March (88.0 expected) from 96.0 in February.

European stocks returned to positive territory, with the Stoxx Europe 600 Index gaining 2.9%. Germany’s DAX rebounded 2.0%, France’s CAC rose 2.7%, and the U.K.’s FTSE 100 was up 1.4%. A slight improvement in the stocks is also driving the bullish movement in the EUro.

At the press time, the EUR/USD currency pair turned lower from 1.0980 to below 1.08 due to the strong haven bid around the dollar rose, producing significant gains for the greenback against the bucket of currencies. At the data front, all trader’s eyes on Germany’s Producer Price Index for February and the Eurozone Current Account data for January. Apart from this, the U.S. will release Existing Home Sales for February at 14:00 GMT.

Daily Support and Resistance

S1 1.0434
S2 1.0677
S3 1.0795

Pivot Point 1.092

R1 1.1038
R2 1.1163
R3 1.1406

EUR/USD– Trading Tips

Lately, the currency pair EUR/USD traded bearishly as it as violated and closed below horizontal support becomes a resistance level of 1.0990. The EUR/USD is currently trading around 1.0750, and it’s forming a lower-lows pattern on the 4-hour chart, which mostly drives a continuation of a selling trend.

At the moment, the EUR/USD is trading at 1.0750, essentially taking a bullish retracement. The EUR/USD is expected to find a hurdle around 1.0820, and above this, the pair has the potential to target the next resistance level of 1.0930. While the EUR/USD has robust odds of lingering bearish below 1.0920 to target 1.0805. On the daily chart, a violation of 1.0605 can extend the selling trend until 1.0550.

GBP/USD– Daily Analysis

The GBP/USD dipped 0.9% to 1.1499, down for an eighth straight session. The Bank of England lowered its benchmark rate by 15 basis points to 0.10% and announced that it would increase its holdings of U.K. government bonds and sterling non-financial investment-grade corporate bonds by GBP200 billion, to counter the economic shock caused by the coronavirus.

The Coronavirus cases rose from 643 to 3,269 during the last 24 hours in the U.K., but the separation of U.K.e Brexit Chief David Frost got major attention. The reason being his counterpart in the European Union (E.U.), Michel Barnier, also E.U.cing the flu-like deadly disease. As in result, it puts a question mark on the further Brexit talks.

As in result, the Asian stocks follow the foot-steps of Wall Street’s recovery, whereas the U.S. ten-year treasury yieldU.S.also rise to 1.158% by the press time. Due to the lack of major data, investors will keep their eyes on the coronavirus headlines.

Daily Support and Resistance

S1 1.0821
S2 1.1191
S3 1.1328

Pivot Point 1.1561

R1 1.1698
R2 1.1931
R3 1.2301

GBP/USD– Trading Tip

The GBP/USD is finally recovering a bit in the wake of bullish correction and trades around 1.1850. The pair continues to drop for a second consecutive week but seems to close a candle a bit higher this time. On the weekly timeframe, the GBP/USD pair has violated the descending triangle pattern, which supports it around the 1.2030 level. Below the 1.2030 level, the GBP/USD has expected to drop further until the next support level of 1.1245. Since the market was oversold, traders have entered buying to take profit before the weekends. As forecasted, we see bullish correction above 1.1245 level until 1.1885 or 1.2045 level, but then again, chances of selling will remain strong.

USD/JPY – Daily Analysis

Today in the early Asian session, the USD/JPY currency pair flashing red and turned from the one-month high set earlier. However, the currency pair failed to maintain its early Asian session’s gains and dropped to 109.300 from the high of 111.35, mainly due to the long U.S. Dollar bearish sentiment. As of writing, the USD/JPY currency pairs currently trading at 109.67 and consolidates in the range between the 109.33 – 111.36.

A strong effort by central banks across the world to quiet investor’s moods and decrease fears about the global recession sent the USD lower on the last trading day of the week and was seen as one of the key factors behind the pair’s ongoing corrective drop.

Meanwhile, the losses seemed unaffected by a strong recovery in the global risk sentiment, which seems to weaken the Japanese yen’s safe-haven demand. Investors’ looking for perceived riskier assets due to a positive mood in the equity.

Daily Support and Resistance

S1 105.08
S2 107.59
S3 109.24

Pivot Point 110.1

R1 111.75
R2 112.61
R3 115.13

USD/JPY – Trading Tips

On Friday, the safe-haven currency pair is trading above 108.400, the previously violated the double top resistance level of 107.950, and closing of candles above this level may drive further buying in the pair. On the 4 hour timeframe, the USD/JPY is trading within an upward channel, which is likely to drive further buying in the pair.

On Friday, we may see USD/JPY finding support at 108.100 level, and above this, the chances of buying remain stable until the next resistance level of 110. Let’s stay bullish above 108.850 today.

All the best for today!

Tags Daily Brief, EURUSD, Forex, Fundamental Analysis, GBPUSD, Technical Analysis, trading, USDJPY

Forex Market Analysis

Daily F.X. Analysis, March 19 – Top Trade Setups In Forex – Trump Set to Speak on Coronavirus!

Post author By Ali B.
Post date 19 March, 2020
No Comments on Daily F.X. Analysis, March 19 – Top Trade Setups In Forex – Trump Set to Speak on Coronavirus!

On the forex front, the ICE U.S. Dollar Index surged 1.3% on the day to 100.91, the highest level since April 2017. The U.S. Labor Department will release initial jobless claims in the week ended March 14 (220,000 expected).

The U.S. official data showed that housing starts posted at an annualized rate of 1.599 million units in February (1.500 million units expected).

Later today, initial jobless claims for the week ended March 14 (220,000 expected), and the Conference Board Leading Index for February (+0.1% on month expected) will be reported. The Commerce Department will report 4Q current account balance (108.5 billion dollars deficit expected). The Philadelphia Federal Reserve will post its Business Outlook Index for March (9.0 expected).

The U.S. dollar strengthened versus its major peers, with the ICE Dollar Index jumping 1.3% to a three-week high of 99.38. Later in the day, the European Commission will post final readings of February CPI (+1.2% on-year expected) and January trade balance (19.2 billion euros surplus expected).

During the U.S. session, the eyes will be on the U.S. Commerce Department, which is due to report February housing starts (1.5 million units expected) and building permits (1.5 million units expected).

Economic Events to Watch Today

EUR/USD – Daily Analysis

The EUR/USD marked a day-low of 1.0802 before rebounding to close at 1.0962, down 0.3%. The European Central Bank announced a 750 billion-euro bond-buying program to counter the coronavirus impacts. ECB President Christine Lagarde said, “there are no limits” to their commitment to the euro.

The Trump administration announced that Trump administration is planning to give checks directly to Americans in the shape of a $1 trillion stimulus program. Moving ahead, the EUR/USD currency pair may return and possibly break below Tuesday’s low of 1.0955 if the stocks cheer the substantial monetary and fiscal stimulus.

After the announcement of stimulus, the ECB President Christine Lagarde showed a willingness to use all important tools to stop the negative impacts of the deadly virus. At the press time, the EUR/USD currency pair turned lower from 1.0980 to below 1.08 due to the strong haven bid around the dollar rose, producing big gains for the greenback against the bucket of currencies.

Daily Support and Resistance

S1 1.0434
S2 1.0677
S3 1.0795

Pivot Point 1.092

R1 1.1038
R2 1.1163
R3 1.1406

EUR/USD– Trading Tips

On Thursday, the major currency pair EUR/USD continues to trade bearish as it as violated and closed below horizontal support becomes a resistance level of 1.0990. The EUR/USD is currently trading around 1.0970, and it’s forming a lower-lows pattern on the 4-hour chart, which mostly drives a continuation of a selling trend.

At the moment, the EUR/USD is trading at 1.0890, essentially following the bearish bias. The EUR/USD is expected to find a hurdle around 1.0920, and beyond this, the pair has the potential to target the next resistance level of 1.1030. While the EUR/USD has robust odds of lingering bearish below 1.0920 to target 1.0805. On the daily chart, a violation of 1.0805 can extend the selling trend until 1.0670.

GBP/USD– Daily Analysis

The GBP/USD plunged 3.5% to 1.1633, the weakest level since 1985, as U.K. Prime Minister Boris Johnson’s response to the coronavirus pandemic failed to convince investors.

As per the latest report, the death losses rose to 99 on Wednesday vs. Tuesday’s 67, reporting a 48% jump. As of March 18, 2,626 people in the United Kingdom were tested for coronavirus. The test numbers have been increasing from just over 1,000 a day at the end of February, when testing started, to more than 6,000 per day by mid-March.

Looking forward, the investors will now keep their eyes on the global measures to control the negative impacts of the virus for taking the near-term direction. However, the greenback may keep benefiting from the same due to its safe-haven status.

Daily Support and Resistance

S1 1.038
S2 1.1049
S3 1.1316

Pivot Point 1.1718

R1 1.1986
R2 1.2388
R3 1.3057

GBP/USD– Trading Tip

The GBP/USD continues to encounter bloodshed in the wake stronger dollar and weakness in the GBP. The direct currency pair continues to drop for a second consecutive week, and so far, it’s has traded bearishly from 1.3000 level to 1.1540 level just in two weeks.

On the weekly timeframe, the GBP/USD pair has violated the descending triangle pattern, which supports it around the 1.2030 level. Below the 1.2030 level, the GBP/USD is expected to drop further until the next support level of 1.1245. Since the market is oversold, traders may see a bullish correction above 1.1245 level until 1.1885 or 1.2045 level, but then again, chances of selling will remain strong.

USD/JPY – Daily Analysis

The USD/JPY extended its rally for a second straight session, climbing 0.6% to 108.38. During the Asian session, the USD/JPY currency pair hit the session high of 109.06 before the time of writing, representing 0.70% gains and continued its 3-day bullish streak near above the 108.50 after the latest downbeat data from Japan. As well as, broad-based USD strength also keeps the pair bullish. At the time of writing, the USD/JPY currency pair is currently trading at 108.86 and consolidates in the range between the 107.89 – 109.55.

At the data front, Japan’s National Consumer Price Index (CPI) came in below 0.8% forecast on MoM to 0.4%, whereas the CPI ex Food, Energy (YoY) slipped beneath 0.9% expectations to 0.6% for February.

Following the data, the BOJ minutes for the January monthly meeting announced further support for the Japanese central bank’s Quantitative Easing (Q.E.). As in result, the Japanese yen got another burden to carry, as the Japanese press pushes for government stimulus, which in turn offered additional support to the USD/JPY pair.

Daily Support and Resistance

S1 104.02
S2 105.92
S3 107

Pivot Point 107.83

R1 108.9
R2 109.73
R3 111.63

USD/JPY – Trading Tips

The stronger U.S. dollar has also driven the bullish trend in the USD/JPY currency pair, and it’s currently trading over 109. The indirect currency pair has also violated the double top resistance level of 107.950, and closing of candles above this level may drive further buying in the pair.

On the 4 hour timeframe, the USD/JPY is still trading within an upward channel, which is likely to drive further buying in the pair. Therefore, the pair may find support at 108.100 level, and above this, the chances of buying remain strong until the next resistance level of 110. Let’s stay bullish above 108.250 today.

All the best for today!

Tags Daily Brief, EURUSD, Forex, Fundamental Analysis, GBPUSD, Support and Resistance, Technical Analysis, trading, Trump, USDJPY

Forex Market Analysis

Daily FX. Analysis, March 18 – Top Trade Setups In Forex – Inflation Figures Under the Spotlight!

Post author By Ali B.
Post date 18 March, 2020
No Comments on Daily FX. Analysis, March 18 – Top Trade Setups In Forex – Inflation Figures Under the Spotlight!

The US dollar strengthened against its major peers, with the ICE Dollar Index jumping 1.3% to a three-week high of 99.38. Later in the day, the European Commission will post final readings of February CPI (+1.2% on-year expected) and January trade balance (19.2 billion euros surplus expected).

During the US session, the eyes will be on the US Commerce Department, which is due to report February housing starts (1.5 million units expected) and building permits (1.5 million units expected).

Economic Events to Watch Today

EUR/USD – Daily Analysis

The EUR/USD plunged from 1.5% to 1.1015. The ZEW German Current Situation Index dropped to -43.0 in March (-30.0 estimated) from -15.7 in February and Expectations Index dipped to -49.5 (-30.0 expected) from 8.7. It is worth to mention that the Eurozone’s powerhouse Germany has closed all borders, schools, public places, and unnecessary shops in the wake of intensifying coronavirus. As a result, the continuous decline in the economy could take the speed in the near term, which may add bearish pressures around the EUR.

Looking forward, the traders will keep their eyes on the broader market sentiment. If the global equities flash red, the USD will likely find buyers. At press time, the futures on the S&P 500 are reporting a 3 % decline.

The Federal Reserve and other major central banks have recently delivered rate cuts to ease the economic shock of the coronavirus pandemic. Meanwhile, the Fed has also launched a quantitative easing program worth $700 billion. Other major central banks have also played roles by cutting rates.

The Trump administration announced on Tuesday that Trump administration is planning to give checks directly to Americans in the shape of a $1 trillion stimulus program. Moving ahead, the EUR/USD currency pair may return and possibly break below Tuesday’s low of 1.0955 if the stocks cheer the heavy monetary and fiscal stimulus.

Daily Support and Resistance

S1 1.0882
S2 1.1024
S3 1.1096

Pivot Point 1.1166

R1 1.1239
R2 1.1309
R3 1.1451

EUR/USD– Trading Tips

On Wednesday, the major currency pair EUR/USD continues to trade mostly lower after violating the horizontal support level pf 1.1095. The EUR/USD is currently trading around 1.0970, and it’s forming a lower-lows pattern on the 4-hour chart, which mostly drives a continuation of a selling trend.

On the lower side, a continuation of a bearish bias can extend sell-off until 1.0920 and 1.0865. While the bullish breakout of 1.1096 can drive more buying until 1.1240 area. Consider staying bearish below 1.0970 today.

GBP/USD– Daily Analysis

The GBP/USD sank 1.2% to 1.2118. Official data showed that the UK jobless rate for the three months to January climbed to 3.9% (steady at 3.8% expected). The US continues to struggle from every level, as well as the Federal Reserve, also doing the same to make sure that the world’s largest economy doesn’t getting infected due to the deadly virus.

At the USD front, the greenback got support from the moves on Tuesday; the early-day decline could have taken clues from US Treasury Secretary Steve Mnuchin that the lack of action could send the Unemployment Rate to 20%.

Later today, the US Commerce Department will report February housing starts (1.5 million units expected) and building permits (1.5 million units expected), which may help determine further trends in the GBP/USD pair.

The investors will keep their eyes on virus headlines and take clues from the coronavirus relating headlines while the US Senate voting on President Donald Trump’s major stimulus plan as well as the UK PM’s action will be essential to watch.

Daily Support and Resistance

S1 1.1938
S2 1.211
S3 1.2189

Pivot Point 1.2282

R1 1.2362
R2 1.2454
R3 1.2626

GBP/USD– Trading Tip

A day before, the GBP/USD fell sharply to trade around 1.2060 level and has closed a bearish engulfing candle followed by Doji candles. It’s suggesting the odds of more selling in the market. The Cable has immediate support around 1.2170 level, and above this, the Cable can extend the continuation of a bullish bias until 1.1980 level and 1.1805. The MACD is consistently forming bearish histograms below zero, supporting the selling trend in the GBP/USD pair, which is why we should consider selling below 1.2100 today to target 1.1985 at first.

USD/JPY – Daily Analysis

The USD/JPY rebounded 1.4% to 107.35. The USD/JPY currency pair dropped below the 107.00 and hit the fresh session lows in the last hours, mainly due to fresh risk catalysts boosted the safe-haven demand. As of writing, the USD/JPY currency pair is currently trading at 107.17 and consolidates in the range between the 106.77 – 107.72. However, the currency pair trading bearish despite the Fed’s continued action mode and downbeat comments from the US policymakers as well as doubt between Japanese firms.

As we know, the currency pair failed to continue its previous day’s strong intraday positive move of over 200 pips and faced some fresh supply during the Asian session on Wednesday, mainly due to improving demand for traditional safe-haven assets.

Despite organized struggles by global central banks and many government stimulus measures to balance the negative economic impact from the coronavirus pandemic, the fears of an expected global slowdown continued losing the investor’s confidence.

It should be noted that the major reason behind the pair’s decline is the benefitted Japanese yen, which got support as perceived safe-haven status and turned out to be one of the key factors that leave some fresh downward pressure on the pair.

Daily Support and Resistance

S1 101.97
S2 104.1
S3 105.19

Pivot Point 106.23

R1 107.32
R2 108.37
R3 110.5

USD/JPY – Trading Tips

The USD/JPY is trading at 107.800 and continues to face double top resistance around 108.065. Below this, the USD/JPY is exhibiting a correction which is likely to lead the USD/JPY prices towards 105.960. Closing of 4-hour candle above this level has confirmed the chances of further buying in the pair until 108. Whereas, below 105.950, we may see further selling until 103.750. On the leading indicator’s front, the USD/JPY is in a bullish mode, and we should consider buying trades over 105. All the best for today!

Tags Daily Brief, EURUSD, Forex, Fundamental Analysis, GBPUSD, Support and Resistance, Technical Analysis, Technical Outlook, trading, USDJPY

Forex Market Analysis

Daily F.X. Analysis, March 17 – Top Trade Setups In Forex – Eyes on U.S. Retail Sales

Post author By Ali B.
Post date 17 March, 2020
No Comments on Daily F.X. Analysis, March 17 – Top Trade Setups In Forex – Eyes on U.S. Retail Sales

On the forex front, the U.S. dollar encountered a volatile trading session, with the ICE U.S. Dollar Index dropping 0.8% to 98.00. ZEW survey results in March will be released for Germany (current situation at -30.0, expectations at -27.2 expected) and the eurozone. The U.K. Office for National Statistics will publish a jobless rate for the three months to January (steady at 3.8% expected).

The U.S. Commerce Department will post February retail sales (+0.2% on month expected) and January business inventories (-0.1% on month expected). The Federal Reserve will release February industrial production (+0.4% on month expected) and capacity utilization (77.1% expected). The Labor Department will report JOLTS job openings for January (6.40M expected). The National Association of Home Builders will publish March Housing Market Index (74 expected).

Economic Events to Watch Today

EUR/USD – Daily Analysis

EUR/USD rose 0.5% to 1.1160. Later today, the ZEW German Current Situation Index for March will be released (-30.0 estimated). The ZEW survey results in March will be released for Germany (current situation at -30.0, expectations at -27.2 expected) and the eurozone.

European stocks returned to negative territory, with the Stoxx Europe 600 Index losing 4.9%. Germany’s DAX dropped 5.3%, France’s CAC lost 5.8%, and the U.K.’s U.K.’sU.K.’s U.K.’s FTSE 100 fell 4.0%. Meanwhile, the European Union proposed a 30-day travel ban on non-essential travel for the whole of the union region.

Whereas, the broad market recession fears continue to increase the progress into the U.S. bonds, which translates into lower returns on the bonds, ultimately keep the greenback under pressure. The U.S. dollar index trades around 98.25, down 0.50% on the day, having stopped its recovery just shy of 98.50.

Meanwhile, Treasury Secretary Steven Mnuchin said after a meeting with Senate Republicans that he was trying to attempt a significant stimulus package expected to support the economy due to the coronavirus outbreak. Looking forward, the focus will be on the German Zew Survey for March, which is scheduled to release at 10:00 GMT. During the American session, the spotlight will be on the U.S. Retail Sales, which is due at 12:30 GMT.

Daily Support and Resistance

S1 1.0882
S2 1.1024
S3 1.1096

Pivot Point 1.1166

R1 1.1238
R2 1.1309
R3 1.1451

EUR/USD– Trading Tips

The EUR/USD has traded mostly lower, bouncing off the double bottom support level of 1.1095 level. The EUR/USD is currently trading around 1.1165, and it’s forming a lower-lows pattern on the 4-hour chart, which mostly drives a continuation of a selling trend. On the lower side, a continuation of a bearish bias can extend sell-off until 1.1100 and 1.1095. While the bullish breakout of 1.1350 can drive more buying until 1.1454 area. Consider staying bullish over 1.1182 and bearish below the same level today.

GBP/USD– Daily Analysis

The GBP/USD marked a day-high of 1.2431 before retreating to close at 1.2268, broadly flat compared with the prior session. Investors will focus on the latest official jobs report due later in the day (jobless rate steady at 3.8% expected). For now, eyes will be on the U.K. Office for National Statistics as it will report a jobless rate for the three months to January (steady at 3.8% expected).

Market’s risk-tone seems to recover after the fresh stimulus from New Zealand and extended bond-buying from the BOJ. Also, supporting the risk recovery could be comments from Japan to coordinate with China and South Korea to tackle the pandemic. As in result, the U.S. ten-year treasury yields increase five basis points (bps) to 0.775%, whereas stocks in Asia also mark mild gains by the press time.

As we all know that the economic calendar is also active during the day ahead, markets will pay more attention to the COVID-19 headlines and the global struggles to stop the pandemic.

Daily Support and Resistance

S1 1.1938
S2 1.211
S3 1.2189

Pivot Point 1.2282

R1 1.2362
R2 1.2454
R3 1.2626

GBP/USD– Trading Tip

The GBP/USD fell sharply to trade around 1.2260 level and has closed a Doji candle followed by strong selling candles. The Cable has immediate support around 1.2170 level, and above this, the Cable can extend the continuation of a bullish bias until 1.2290 level and 1.2325.

The MACD is consistently forming bearish histograms below zero, supporting the selling trend in the GBP/USD pair, which is why we should consider selling below 1.2282 today. Recently, the GBP/USD has closed a bullish candle that can drive buying in the GBP/USD, and it may lead its prices higher towards 1.2425 level.

USD/JPY – Daily Analysis

The USD/JPY marked a day-low of 105.12 before closing at 106.25, down 1.5% on the day. The Bank of Japan kept its benchmark rate unchanged while doubling its target for the net purchase of ETFs to 12 trillion yen.

The USD/JPY currency pair are flashing green and trading above the mid-106.00 level, mainly due to the risk sentiment improved in the market. While the pair remain struggling to find acceptance above the 107.00, at the press time, the USD/JPY is trading at 106.86 and consolidates in the range between the 105.86 – 107.17.

The currency pair succeeded in recovering some positive traction on Tuesday and built on the overnight late bounce from the region of the key 105.00 psychological marks after a combination of supporting factors.

Notably, the moderate recovery in the global risk sentiment, as represented by positive sentiment in the equity markets, weakened the Japanese yen’s safe-haven demand and gave some support to the pair.

A hard struggle by major central banks to stop any negative impact from the coronavirus pandemic improved to boost investors’ confidence and turned the equity market positive.

The reason behind the risk-on sentiment could also be the goodish bounce in the U.S. Treasury bond yields, which improved the U.S. dollar demand and further added to the pair’s modest uptick.

Daily Support and Resistance

S1 99.26
S2 102
S3 103.37

Pivot Point 104.74

R1 106.11
R2 107.47
R3 110.21

USD/JPY – Trading Tips

The USD/JPY is trading at 107.800 and has already completed a 61.8% Fibonacci retracement level at 108.065. Below this, the USD/JPY is exhibiting a correction which is likely to lead the USD/JPY prices towards 105.960. Closing of 4-hour candle above this level has confirmed the chances of further buying in the pair until 108. Whereas, below 105.950, we may see further selling until 103.750. On the leading indicator’s front, the USD/JPY is in a bullish mode, and we should consider buying trades over 105. All the best for today!

Tags EURUSD, EURUSD USDJPY, Forex, Fundamental Analysis, GBPUSD, Technical Analysis, trading, USDJPY

Forex Market Analysis

Daily F.X. Analysis, March 16 – Top Trade Setups In Forex – G7 Meetings In Highlights!

Post author By Ali B.
Post date 16 March, 2020
No Comments on Daily F.X. Analysis, March 16 – Top Trade Setups In Forex – G7 Meetings In Highlights!

During Asian trading hours on Monday, the ICE U.S. Dollar Index dropped 1.1% to 97.67, giving up most of its gains made in the prior session, as the Fed slashed interest rates over the weekend. The U.K. house price grew 1.0% on month in March (+0.8% in February), according to the home-listing website Rightmove.

In the U.S., the New York Federal Reserve will publish March Empire Manufacturing Index (4.9 expected).

Economic Events to Watch Today

EUR/USD – Daily Analysis

On Monday, the European Union finance ministers plan to agree on an economic acknowledgment to the coronavirus pandemic, with the European Commission forecasting the consequences of the virus could drive the European Union into a recession.

The central bank kept rates unchanged on Thursday and raised its asset purchase program by EUR120B. They introduced a new program of cheap loans that would necessarily pay banks up to 0.75% to give to small businesses. However, the EUR traders were not impressed, as indicated by the long-tail (seller exhaustion) attached to Thursday’s candle.

Looking forward, the markets now keep their eyes on the European Union (E.U.) Finance Ministers’ and G7 leaders’ economic response to the virus outbreak, which is due later on Monday for taking fresh near-term trading opportunities in the main currency pair.

Daily Support and Resistance

S1 1.0654
S2 1.0918
S3 1.1045

Pivot Point 1.1182

R1 1.1309
R2 1.1447
R3 1.1711

EUR/USD– Trading Tips

GBP/USD– Daily Analysis

The GBP/USD dropped to 1.2321. Over the weekend, the global coronavirus pandemic worsened, particularly in Europe. Italy saw the number of coronavirus cases surge past 24,700 (1809 deaths), while Spain reported over 7,800 cases in total, Germany over 5,800 cases and France over 5,400 cases. In the U.S., the number of cases jumped to nearly 3,600 (68 deaths).

On Sunday, U.S. Federal Reserve slashed interest rates to near zero percent while announcing plans to purchase 700 billion dollars in bonds and securities to stabilize financial markets and support the economy.

It is worth mentioning that the global markets remain sluggish despite the Fed, and the RBNZ announced an unscheduled rate cut while the BOJ is in the pipeline. As in result, the risk-tone remains on the back foot with the U.S. treasury yields falling almost 30 basis points while markets in Asia also flash losses by the press time.

Looking forward, the coronavirus headlines and the central bank updates will be the key to watch for near-term direction, while the traders will keep their eyes on the EU-UK disputes regarding Brexit.

On Monday open, U.S. stock futures dropped nearly 5% to their daily limit.

U.K. house price grew 1.0% on month in March (+0.8% in February), according to the home-listing website Rightmove.

Daily Support and Resistance

S1 1.1957
S2 1.2295
S3 1.2436

Pivot Point 1.2633

R1 1.2774
R2 1.297
R3 1.3308

GBP/USD– Trading Tip

The GBP/USD fell sharply to trade around 1.2360 level and has closed a bullish candle followed by strong selling candles. The Cable has immediate support around 1.2270 level, and above this, the Cable can extend the continuation of a bullish bias until 1.2450 level and 1.2625.

The MACD is consistently forming bearish histograms below zero, supporting the selling trend in the GBP/USD pair, which is why we should consider selling below 1.2633 today. Recently, the GBP/USD has closed a bullish candle that can drive buying in the GBP/USD, and it may lead its prices higher towards 1.2685 level.

USD/JPY – Daily Analysis

Today in the Asian session, the USD/JPY currency pair flashing red and trading below the 107.00, representing 1.40% losses on the day after the Bank of Japan avoided delivering the rate cut ahead of the European open on Monday.

During its emergency 1-day monetary policy meeting, the Bank of Japan (BOJ) board members decided to keep rates unchanged at -10bps whereas maintaining a10-yr JGB yield target at 0.00%. Although, the decision on maintaining its interest rate targets was made by a 7-2 vote with board members Goushi Kataoka and Yutaka Harada dissenting.

At the BOJ front, the BoJ Interest Rate Decision is announced by the Bank of Japan. Usually, if the BoJ raises the interest rates, it is positive, or bullish, for the JPY. Likewise, if the BoJ has a dovish view on the Japanese economy and cuts the interest rate, it is considered negative or bearish.

On the other hand, the U.S. Federal Reserve (Fed) announced a surprise rate cut to 0.25% in addition to $700 billion worth of Quantitative Easing. As well as, the Fed policymakers signaled that there would not be any Federal Open Market Committee (FOMC) during this week, which was earlier scheduled for Wednesday.

Whereas, the RBA indicated that it would purchase bonds while holding a special meeting on Thursday, whereas RBNZ finally also joined the role of major central bankers that offered significant rate cuts in order to control the coronavirus (COVID-19).

Daily Support and Resistance

S1 99.26
S2 102
S3 103.37

Pivot Point 104.74

R1 106.11
R2 107.47
R3 110.21

USD/JPY – Trading Tips

Tags Daily Brief, EURUSD, Forex, Fundamental Analysis, GBPUSD, review, Technical Analysis, Technical Outlook, trading, USDJPY