Tag: Technical Analysis

Daily Crypto Review, Sept 7 – Peter Schiff: “I Was Wrong About Bitcoin”; Bitcoin Facing $9,000 or Recovering?

Post author By Ilija Rankovic
Post date 7 September, 2020
1 Comment on Daily Crypto Review, Sept 7 – Peter Schiff: “I Was Wrong About Bitcoin”; Bitcoin Facing $9,000 or Recovering?

The cryptocurrency market has been trying to establish its position after the pullback that happened on Wednesday and Thursday. Bitcoin is currently trading for $10,260, which represents a decrease of 1.34% on the day. Meanwhile, Ethereum recovered from its big drop and gained 7.3% on the day, while XRP gained 2.67%.

Daily Crypto Sector Heat Map

When taking a look at the top100 cryptocurrencies, SushiSwap gained 79.68% on the day, making it the most prominent daily gainer. UMA (31.22%) and Flexacoin (26.59%) also did great. On the other hand, the HedgeTrade lost 20.50%, making it the most prominent daily loser. It is followed by Hyperion’s loss of 15.70%. The rest of the market was either in the green or lost sub-1% of its value.

Top 10 24-hour Performers (Click to enlarge)

Bottom 10 24-hour Performers (Click to enlarge)

Bitcoin’s dominance level has gone up slightly, with its value is currently at 59.61%, which represents a 0.32% difference to the upside when compared to when we last reported.

Daily Crypto Market Cap Chart

The crypto sector capitalization has gone down slightly in the past 24 hours. Its current value is $331.58 billion, which represents a decrease of $3.07 billion when compared to our previous report.

_______________________________________________________________________

What happened in the past 24 hours?

_______________________________________________________________________

Technical analysis

_______________________________________________________________________

Bitcoin

After failing to break the $12,000 mark, BTC bears have taken over the market, causing the price to plummet, reaching as low as $10,000. The largest cryptocurrency by market cap took the weekend to consolidate and establish its presence above $10,000. However, the $10,360 resistance level proves its strength once again, making Bitcoin’s rebound towards the upside that much harder.

If the bulls fail to break the $10,360 level and sustain it, the bears will most likely make one more attempt to bring the price down. In this case, a drop to the 200-day SMA ($9,080) is likely. However, if BTC manages to bounce off the current level and rise above $10,500, a move to $11,000 is likely.

Traders should pay close attention to Bitcoin’s price movement around the $10,360 level, as the next move will determine its short-term future.

BTC/USD 4-hour Chart

Technical factors:

Price is well below its 50-period and 21-period EMA
Price is at its middle Bollinger band
RSI is recovering from being in the oversold territory (38.77)
Volume is descending (from extremely high)

Key levels to the upside Key levels to the downside

1: $10,360 1: $10,015

2: $10,500 2: $9,870

3: $10,850 3: $9,600

Ethereum

Ethereum had a similar weekend as Bitcoin, as its price consolidated and tried to establish itself above the most recent low of $310. While its price did get stuck at the $360 resistance level, it increased in value much more than Bitcoin, most likely due to the growing popularity of DeFi.

With all being said, Ethereum’s short-term future will be decided by the popularity of DeFi and the problems it will encounter with extremely high Gas fees.

Traders should pay attention to how ETH handles the $360 level.

ETH/USD 4-hour Chart

Technical Factors:

The price is well below its 21-period and 50-period EMA
The price is near its middle Bollinger band
RSI is neutral and recovering from being oversold (40.82)
Volume is descending (from high)

Key levels to the upside Key levels to the downside

1: $371 1: $360

2: $400 2: $340

3: $415 3: $300

Ripple

While XRP suffered the same fate as Bitcoin and Ethereum in terms of price movement, the third-largest cryptocurrency by market cap did have slight differences in the move towards the downside. XRP had several bull comebacks that tried to push the price back up, but failed due to the overall bearishness of the market.

XRP is now consolidating between the $0.235 and $0.2454, with low volume and no signs of future movement (unless the technicals change drastically).

XRP traders should watch out for any form of break of the immediate support/resistance levels.

XRP/USD 4-hour Chart

Technical factors:

The price is well below its 21-period and 50-period EMA
Price is near its middle Bollinger band
RSI is recovering from being oversold (40.84)
Volume is low (back from elevated)

Key levels to the upside Key levels to the downside

1: $0.2454 1: $0.235

2: $0.266 2: $0.227

3: $0.285 3: $0.221

Tags bitcoin, BTC, Crypto, Crypto Trading, cryptocurrency, Daily Brief, ETH, Ethereum, Fundamental Analysis, Ripple, Technical Analysis, trading, XRP

Forex Price Action

Fibonacci Trading: Fibonacci Levels Maximize Profit for Intraday Traders

Post author By Tareq Sikder
Post date 4 September, 2020
No Comments on Fibonacci Trading: Fibonacci Levels Maximize Profit for Intraday Traders

In today’s lesson, we are going to demonstrate an H1 chart offering an entry by using intraday support/resistance. To go with it, Fibonacci levels are used to spot out the stop-loss and take-profit levels. Let us now get started.

The chart shows that the price makes a long bearish move. The H1 chart makes a breakout at the last day’s lowest low (black drawn line). Usually, the chart attracts the sellers to look for short opportunities upon getting a bearish reversal candle. However, look at the combination of the last three candles. It is called Morning Star, which is one of the strongest bullish reversal patterns.

The price heads towards the North and goes back in the last day’s lowest low. Moreover, it makes a breakout at today’s highest high as well (black drawn line). Within four candles, the chart looks good for the buyers. The buyers may look to go long in the pair upon getting a bullish reversal candle at the breakout level.

The chart produces a bearish candle. The breakout level seems to hold the price as a level of support. A bullish reversal candle at the level may attract the buyers to go long and push the price towards the North further.

Here it comes. The chart produces a bullish engulfing candle right at the breakout level. The buyers may trigger a long entry right after the last candle closes by setting stop loss below the lowest low of the signal candle. We are going to talk about the take profit level in a minute. Let us find out how the trade goes.

The chart produces a bullish candle. The price heads towards the upside with the next candle as well. However, the candle comes out as a Doji candle having a long upper shadow. It suggests that the price may make a bearish correction or make a bearish reversal. Since the trade setup is based on the H1 chart, the buyers may lose a good number of pips if they are to wait for the chart to produce a reversal candle to close their entry. It is tough to manage trade in the H1 chart manually. Thus, setting the take profit is the best way. The question is, where should we set our take profit? In this regard, Fibonacci levels come extremely handy. Let us draw the Fibonacci levels in the chart and find out how they work in the chart above.

There you go. The price produces a bullish reversal candle at 61.8% level and heads towards the level of 161.8%. It means the buyers may achieve 1:2 risk-reward easily by using Fibonacci levels in intraday trading. In our fore coming lessons, we are going to demonstrate more examples of integration of Fibonacci levels and intraday trading. Stay tuned.

Tags Breakout, Bullish, Education, Fibonacci, Fibonacci Levels, Forex, Forex price action, Price Action, Resistance, Support, Technical Analysis, trading

Crypto Market Analysis

Daily Crypto Review, Sept 4 – Bitcoin at $10,000: What Happened? Detailed Price Level Analysis

Post author By Ilija Rankovic
Post date 4 September, 2020
1 Comment on Daily Crypto Review, Sept 4 – Bitcoin at $10,000: What Happened? Detailed Price Level Analysis

The cryptocurrency market has been decimated after Bitcoin plummeted below $11,000. Bitcoin is currently trading for $10,260, which represents a decrease of 10.02% on the day. Meanwhile, Ethereum lost 12.07% on the day, while XRP lost 9.21%.

Daily Crypto Sector Heat Map

When taking a look at the top100 cryptocurrencies, TRON gained 15.35% on the day, making it the most prominent daily gainer. Celo (13.98%) and ZB Token (8.75%) also did great. On the other hand, the Ampleforth lost 33.29%, making it the most prominent daily loser. It is followed by Sushi Swap’s loss of 32.41% and DFI. Money’s drop of 32.28%.

Top 10 24-hour Performers (Click to enlarge)

Bottom 10 24-hour Performers (Click to enlarge)

Bitcoin’s dominance level has gone up slightly, with its value is currently at 59.29%, represents a 0.67% difference to the upside when compared to when we last reported.

Daily Crypto Market Cap Chart

The crypto sector capitalization has plummeted in the past 24 hours. Its current value is $334.65 billion, which represents a decrease of $39.74 billion when compared to our previous report.

_______________________________________________________________________

What happened in the past 24 hours?

_______________________________________________________________________

Technical analysis

_______________________________________________________________________

Bitcoin

After failing to break the $12,000 mark, Bitcoin bears have taken over the market and the price plummeted, reaching as low as $10,000. While it was true that many people were bullish and called for a bull market, Bitcoin’s continuous failed attempts to break $12,000 took its toll and started a short-term bear trend that could reach $9,600 at some point.

There are many reasons that caused Bitcoin (and the rest of the crypto market) to plummet, mainly the US traditional market, DeFi, miners as well as traders.

The US S&P 500 index pulled back on Thursday after reaching record highs just earlier this week. This happened because of a US report showing jobless claims of over 881,000 in August. While this number was, in fact, better than expected, it is still much larger than the one that the US saw during the 2009 recession high-point (665,000). Bitcoin is not completely uncorrelated from the traditional markets and has most likely reacted slightly to this news.
While the DeFi craze is continuing, many believe that the fact that people are locking billions of dollars worth of Bitcoin may cause any form of market manipulation or influx of buyers/sellers much more significant due to reduced supply in circulation. It is also not implausible that DeFi is in a bubble (even some DeFi project leaders/creators such as Yearn Finance’s Andre Cronje say it), and that this is a form of a bubble “pop”.
Miners and traders gathered up to sell Bitcoin at the $12,000 mark, which triggered this crash. Miners tried to secure their profits and play it safe, and traders most likely did the same, as they saw strong resistance sitting at the $12,000 level. All of the big mining pools saw large BTC outflows from the wallets, incidacting a market play with the intention to take profits and secure gains.

Traders should pay attention to Bitcoin’s price movement around $10,090 and $10,400.

BTC/USD 4-hour Chart

Technical factors:

Price is well below its 50-period and 21-period EMA
Price is just above its lower band
RSI is deep in the oversold territory (21.56)
Volume is elevated

Key levels to the upside Key levels to the downside

1: $10,360 1: $10,015

2: $10,500 2: $9,870

3: $10,850 3: $9,600

Ethereum

Ethereum had a similar day to Bitcoin, with its price plummeting and reaching as low as $371. The second-largest cryptocurrency by market cap tried to break the downward pressure after dropping below $445. It quickly bounced off of $415 and pushed towards the upside. However, the $445 level was now resistance, and after a failed attempt to break it, ETH moved further down.

Ethereum is now in its consolidation/recovery stage near $380.

Traders should pay attention to any influx in volume as well as how ETH handles $415.

ETH/USD 4-hour Chart

Technical Factors:

The price is well below its 21-period and 50-period EMA
The price is just above the lower band
RSI is in the oversold territory (28.35)
Volume is descending (from extremely high)

Key levels to the upside Key levels to the downside

1: $400 1: $371

2: $415 2: $360

3: $445

Ripple

XRP was no exception when it comes to today’s price movement. The third-largest cryptocurrency by market cap plummeted and reached as low as $0.238 before starting to recover. The price is now recovering at the $0.2454 support level, which is (at the moment) contested. It is still unsure of whether XRP will end up above or below it, so traders should watch out to a breakout to any side.

XRP/USD 4-hour Chart

Technical factors:

The price is far below its 21-period and 50-period EMA
Price is at its lower band
RSI is in the oversold area (29.09)
Volume is above average

Key levels to the upside Key levels to the downside

1: $0.266 1: $0.2454

2: $0.285 2: $0.235

3: $0.31 3: $0.227

Tags bitcoin, BTC, Crypto, Crypto Trading, cryptocurrency, Daily Brief, ETH, Ethereum, Fundamental Analysis, Ripple, Technical Analysis, trading, XRP

Forex Market Analysis

Daily F.X. Analysis, September 04 – Top Trade Setups In Forex – Brace for U.S. NFP Figures!

Post author By Ali B.
Post date 4 September, 2020
1 Comment on Daily F.X. Analysis, September 04 – Top Trade Setups In Forex – Brace for U.S. NFP Figures!

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

Economic Events to Watch Today

EUR/USD – Daily Analysis

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

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

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

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

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

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

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

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

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

Daily Technical Levels

Support	Pivot	Resistance
1.1802	1.1834	1.1879
1.1757		1.1911
1.1726		1.1956

EUR/USD– Trading Tip

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

GBP/USD – Daily Analysis

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

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

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

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

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

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

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

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

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

Daily Technical Levels

Support	Pivot	Resistance
1.3228	1.3293	1.3344
1.3177		1.3409
1.3112		1.3460

GBP/USD– Trading Tip

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

USD/JPY – Daily Analysis

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

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

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

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

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

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

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

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

Daily Technical Levels

Support	Pivot	Resistance
105.9300	106.2500	106.5000
105.6800		106.8200
105.3700		107.0700

USD/JPY – Trading Tips

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

Tags EUR-USD, Forex, Forex Trading, Fundamental Analysis, GBP-USD, GBPUSD, Support and Resistance, Technical Analysis, Technical Outlook, Trade Setup, USD-JPY

Forex Signals

AUD/USD Bullish Correction Completed – Brace for Selling!

Post author By Ali B.
Post date 3 September, 2020
No Comments on AUD/USD Bullish Correction Completed – Brace for Selling!

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

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

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

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

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

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

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

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

Entry Price – Sell 0.7296

Stop Loss – 0.7336

Take Profit – 0.7256

Risk to Reward – 1:1

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

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

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

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Tags AUD/USD, Forex Trading Signal, Fundamental Analysis, Support and Resistance, Technical Analysis, Technical Outlook

Forex Market Analysis

Daily F.X. Analysis, September 03 – Top Trade Setups In Forex – A Day Before NFP!

Post author By Ali B.
Post date 3 September, 2020
1 Comment on Daily F.X. Analysis, September 03 – Top Trade Setups In Forex – A Day Before NFP!

Economic Events to Watch Today

EUR/USD – Daily Analysis

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

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

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

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

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

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

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

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

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

Daily Technical Levels

Support	Pivot	Resistance
1.1805	1.1868	1.1914
1.1759		1.1977
1.1696		1.2024

EUR/USD– Trading Tip

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

GBP/USD – Daily Analysis

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

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

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

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

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

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

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

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

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

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

Daily Technical Levels

Support	Pivot	Resistance
105.9000	106.1100	106.3700
105.6400		106.5800
105.4300		106.8400

GBP/USD– Trading Tip

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

USD/JPY – Daily Analysis

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

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

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

Daily Technical Levels

Support	Pivot	Resistance
1.3288	1.3346	1.3409
1.3225		1.3467
1.3167		1.3530

USD/JPY – Trading Tips

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

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

Crypto Market Analysis

Daily Crypto Review, Sept 3 – DeFi Flippening: Unifi’s Volume Topples Coinbase

Post author By Ilija Rankovic
Post date 3 September, 2020
1 Comment on Daily Crypto Review, Sept 3 – DeFi Flippening: Unifi’s Volume Topples Coinbase

The crypto sector had quite a bad day as almost every single cryptocurrency ended up in the red. Bitcoin is currently trading for $11,376, which represents a decrease of 4.26% on the day. Meanwhile, Ethereum lost 6.82% on the day, while XRP lost 9.33%.

Daily Crypto Sector Heat Map

When taking a look at the top100 cryptocurrencies, Kusama gained 24.25% on the day, making it the most prominent daily gainer. UMA (13.51%) and JUST (9.08%) also did great. On the other hand, the Ampleforth lost 26.14%, making it the most prominent daily loser. It is followed by OMG Network’s loss of 15.44% and Aragon’s drop of 15.44%.

Top 10 24-hour Performers (Click to enlarge)

Bottom 10 24-hour Performers (Click to enlarge)

Bitcoin’s dominance level has gone up slightly, with its value is currently at 58.62%, represents a 0.48% difference to the upside when compared to when we last reported.

Daily Crypto Market Cap Chart

The crypto sector capitalization has decreased significantly over the course of the day. Its current value is $375.41 billion, which represents a decrease of $15.64 billion when compared to our previous report.

_______________________________________________________________________

What happened in the past 24 hours?

_______________________________________________________________________

Technical analysis

_______________________________________________________________________

Bitcoin

Bitcoin’s push towards the upside yesterday culminated by the cryptocurrency price reaching the $12,000 mark before triggering a bear push. The largest crypto by market cap couldn’t keep its price above the level, which triggered massive bearish volume that brought the price down as low as $11,150. Bitcoin is currently consolidating right below $11,460, which it is testing and trying to get past. However, this level has proven to be a strong resistance point at the moment.

Traders should pay attention to Bitcoin’s price movement around $11,460.

BTC/USD 4-hour Chart

Technical factors:

Price is below its 50-period and 21-period EMA
Price is just above its lower band
RSI is stable (38.13)
Volume is coming back to normal after a massive spike

Key levels to the upside Key levels to the downside

1: $11,630 1: $11,460

2: $12,015 2: $11,090

3: $12,330 3: $10,855

Ethereum

Ethereum had a similar day to Bitcoin, with its price plummeting and reaching as low as $418 after failing to break $496 to the upside. The second-largest crypto by market cap is currently near the $445 level, which is resisting any current pushes towards the upside that Ethereum makes at the moment.

With all this being said, Ethereum is still looking extremely bullish as DeFi’s volume and the number of users is reaching its all-time highs. Traders should look for a break from the $445 level.

ETH/USD 4-hour Chart

Technical Factors:

The price is at its 21-period and below 50-period EMA
The price is just below the middle band
RSI is neutral (52.47)
Volume is descending (from extremely high)

Key levels to the upside Key levels to the downside

1: $445 1: $415

2: $496 2: $400

3: $360

Ripple

XRP was no exception when it comes to today’s price movement. The third-largest crypto by market cap crashed, at one point reaching sub-$0.266 levels. However, the price recovered, and XRP is currently consolidating at the $0.272 level. However, unlike Bitcoin and Ethereum, which seem ready to test its resistance levels, XRP’s low volume as well as price position signal that there is almost no chance it will move towards the upside on its own.

Traders should look at XRP’s next move, which will be triggered by a volume spike.

XRP/USD 4-hour Chart

Technical factors:

The price is below its 21-period and 50-period EMA
Price is just above its lower band
RSI is stable and leaning towards the oversold area (39.55)
Volume is slightly below average

Key levels to the upside Key levels to the downside

1: $0.285 1: $0.266

2: $0.31 2: $0.2454

3: $0.32

Tags bitcoin, BTC, Crypto, Crypto Trading, cryptocurrency, Daily Brief, ETH, Ethereum, Fundamental Analysis, Ripple, Technical Analysis, trading, XRP

Crypto Market Analysis

Daily Crypto Review, Sept 2 – Ethereum Pushing Towards $500; Decentralized Exchanges Volume Surges

Post author By Ilija Rankovic
Post date 2 September, 2020
1 Comment on Daily Crypto Review, Sept 2 – Ethereum Pushing Towards $500; Decentralized Exchanges Volume Surges

While the top cryptocurrencies had quite a slow day, the DeFi market kept going up. Bitcoin is currently trading for $11,890, which represents an increase of 2.37% on the day. Meanwhile, Ethereum gained 7.57% on the day, while XRP gained 6.91%.

Daily Crypto Sector Heat Map

When taking a look at top100 cryptocurrencies, DFI.Money gained 111.02% on the day, making it the most prominent daily gainer. SushiSwap (35.54%) and Flexacoin (23.70%) also did great. On the other hand, the bZx Protocol lost 16.28%, making it the most prominent daily loser. It is followed by Aragon’s loss of 10.47% and Kusama’s drop of 9.44%.

Top 10 24-hour Performers (Click to enlarge)

Bottom 10 24-hour Performers (Click to enlarge)

Bitcoin’s dominance level has gone down slightly, with its value is currently at 58.14%, represents a 0.26% difference to the downside when compared to when we last reported.

Daily Crypto Market Cap Chart

The crypto sector capitalization has increased significantly over the course of the day. Its current value is $391.05 billion, which represents an increase of $14.67 billion when compared to our previous report.

_______________________________________________________________________

What happened in the past 24 hours?

_______________________________________________________________________

Technical analysis

_______________________________________________________________________

Bitcoin

After managing to fend off the bears and establish its presence above $11,630 yesterday, Bitcoin started moving towards the upside. The largest cryptocurrency by market cap pushed towards the upside and quickly reached the $12,000 mark. However, the cryptocurrency did not stay above it for long and fell under it yet again. Bitcoin is now on a path towards the downside.

Traders should pay attention to how Bitcoin’s price reacts to its moving averages, as well as to $11,630.

BTC/USD 4-hour Chart

Technical factors:

Price is above its 50-period and 21-period EMA
Price is at its middle band
RSI is neutral (52.80)
Volume is slightly increased

Key levels to the upside Key levels to the downside

1: $11,630 1: $11,460

2: $12,015 2: $11,090

3: $12,330 3: $10,855

Ethereum

Ethereum had another extremely bullish day, where its parabolic rise continued. The second-largest cryptocurrency by market cap surged towards the upside and passed $445 with ease, only to be stopped a little under $490. Ethereum is now consolidating slightly below this level.

Ethereum’s parabolic price rise is attributed to a surge of interest in DeFi projects, and all they have to offer.

Ethereum traders should pay attention to DeFi announcements, as well as to how ETH will consolidate.

ETH/USD 4-hour Chart

Technical Factors:

The price is above its 21-period and 50-period EMA
The price is just below the upper band
RSI is in the overbought territory (73.71)
Volume is descending (from extremely high)

Key levels to the upside Key levels to the downside

1: $445 1: $415

2: $496 2: $400

3: $360

Ripple

XRP, boosted by the other cryptos increasing in price, pushed towards the upside itself. The third-largest cryptocurrency by market cap managed to get past the $0.285 resistance level, and then quickly (and successfully) retested it. The move towards the upside got stopped at $0.305, and XRP is now consolidating slightly under it.

While XRP’s move seems like it ran out of steam, its volume is still relatively high, which may indicate a possibility of further volatility.

Traders should look at XRP’s volume spikes and check for any signs of its next move’s direction.

XRP/USD 4-hour Chart

Technical factors:

The price is above its 21-period and 50-period EMA
Price is just under its upper band
RSI is stable and extremely close to being overbought (63.57)
Volume is slightly above average

Key levels to the upside Key levels to the downside

1: $0.31 1: $0.285

2: $0.32 2: $0.266

3: $0.3328 3:$0.2454

Tags bitcoin, BTC, Crypto, Crypto Trading, cryptocurrency, Daily Brief, ETH, Ethereum, Fundamental Analysis, Ripple, Technical Analysis, trading, XRP

Forex Market Analysis

Daily F.X. Analysis, September 02 – Top Trade Setups In Forex – Eyes on ADP Non-Farm Employment!

Post author By Ali B.
Post date 2 September, 2020
1 Comment on Daily F.X. Analysis, September 02 – Top Trade Setups In Forex – Eyes on ADP Non-Farm Employment!

Economic Events to Watch Today

EUR/USD – Daily Analysis

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

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

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

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

Daily Technical Levels

Support	Pivot	Resistance
1.1870	1.1941	1.1981
1.1829		1.2053
1.1758		1.2093

EUR/USD– Trading Tip

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

GBP/USD – Daily Analysis

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

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

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

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

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

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

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

Daily Technical Levels

Support	Pivot	Resistance
105.6400	105.9000	106.2100
105.3300		106.4700
105.0700		106.7800

GBP/USD– Trading Tip

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

USD/JPY – Daily Analysis

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

Daily Technical Levels

Support	Pivot	Resistance
1.3330	1.3407	1.3459
1.3279		1.3535
1.3202		1.3587

USD/JPY – Trading Tips

Tags Daily Brief, EUR-USD, Forex, Forex Trading, Fundamental Analysis, GBP-USD, Support and Resistance, Technical Analysis, Technical Outlook, Trade Setup, trading, USD-JPY

Forex Market Analysis

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

Post author By Ali B.
Post date 1 September, 2020
No Comments on Daily F.X. Analysis, September 01 – Top Trade Setups In Forex – Dollar Weakens Amid NFP Forecast!

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

Economic Events to Watch Today

EUR/USD – Daily Analysis

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

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

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

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

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

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

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

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

Daily Technical Levels

Support	Pivot	Resistance
1.1891	1.1929	1.1975
1.1846		1.2012
1.1808		1.2058

EUR/USD– Trading Tip

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

GBP/USD – Daily Analysis

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

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

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

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

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

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

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

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

Daily Technical Levels

Support	Pivot	Resistance
1.3314	1.3355	1.3409
1.3260		1.3450
1.3219		1.3504

GBP/USD– Trading Tip

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

USD/JPY – Daily Analysis

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

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

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

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

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

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

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

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

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

Daily Technical Levels

Support	Pivot	Resistance
105.4200	105.7600	106.2300
104.9500		106.5700
104.6200		107.0300

USD/JPY – Trading Tips

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

Tags Daily Brief, EUR-USD, Forex, Forex Trading, Fundamental Analysis, GBP-USD, Support, Support and Resistance, Technical Analysis, Technical Outlook, Trade Setup, USD-JPY

Crypto Market Analysis

Daily Crypto Review, Sept 1 – Binance Crypto Card Expanding To The US; YFI Token Up 1,000,000% Since July

Post author By Ilija Rankovic
Post date 1 September, 2020
1 Comment on Daily Crypto Review, Sept 1 – Binance Crypto Card Expanding To The US; YFI Token Up 1,000,000% Since July

While the top cryptocurrencies had quite a slow day, the DeFi market kept going up. Bitcoin is currently trading for $11,630, which represents a decrease of 0.38% on the day. Meanwhile, Ethereum gained 2.99% on the day, while XRP lost 0.59%.

Daily Crypto Sector Heat Map

When taking a look at top100 cryptocurrencies, Sushi gained 110.98% on the day, making it the most prominent daily gainer. BitShares (72.48%) and Kusama (35.57%) also did great. On the other hand, DFI.Money lost 18.67%, making it the most prominent daily loser. It is followed by bZx Protocol’s loss of 13.96% and NXM’s drop of 9.34%.

Top 10 24-hour Performers (Click to enlarge)

Bottom 10 24-hour Performers (Click to enlarge)

Bitcoin’s dominance level has gone down slightly, with its value is currently at 58.40%, represents a 0.84% difference to the downside when compared to our last report.

Daily Crypto Market Cap Chart

The crypto market cap has increased significantly over the course of the day. Its current value is $375.72 billion, which represents an increase of $3 billion when compared to our previous report.

_______________________________________________________________________

What happened in the past 24 hours?

_______________________________________________________________________

Technical analysis

_______________________________________________________________________

Bitcoin

After a weekend of steady gains, Bitcoin spent the day trying to establish its presence above the newly-conquered $11,630 level. While the fight is still in progress, it seems that the largest cryptocurrency by market cap will stay above the level, thus turning it into support.

Traders should take a look at how Bitcoin handles its next resistance, which is at around $11,820.

BTC/USD 4-hour Chart

Technical factors:

Price is above its 50-period EMA and 21-period EMA
Price is above its middle band
RSI is neutral but leaning towards overbought (57.26)
Volume is low

Key levels to the upside Key levels to the downside

1: $11,630 1: $11,460

2: $12,015 2: $11,090

3: $12,330 3: $10,855

Ethereum

Unlike Bitcoin, Ethereum has had a great day. The second-largest cryptocurrency by market cap continued its rush towards the upside, fueled by the expansion of DeFi. The move towards the upside rekindled after ETH confirming its position above $415 and stopped (for now) at its next resistance level, which is sitting at $445. While Ethereum has a chance of breaking this level as well, it is unlikely that it will stay above it as the volume seems to be fading, while its RSI is in the overbought territory.

Ethereum traders should look for ETH’s pullback after the bullish move ends.

ETH/USD 4-hour Chart

Technical Factors:

Price is currently above its 21-period and 50-period EMA
Price is just below the upper band
RSI is in the overbought territory (74.23)
Volume is descending

Key levels to the upside Key levels to the downside

1: $445 1: $415

2: $496 2: $400

3: $360

Ripple

XRP’s move towards the upside ended abruptly as the third-largest cryptocurrency by market cap failed to break the $0.285 resistance level. While it is still very close to it, XRP shows no signs of breaking the resistance any time soon, unless it gets external help in the form of BTC pushing the price of the whole crypto market.

On the other hand, XRP doesn’t show any signs of going down anytime soon, so we can expect some range-bound trading in the near future.

Traders should look for an opportunity within the range XRP is currently in.

XRP/USD 4-hour Chart

Technical factors:

The price is above its 21-period and 50-period EMA
Price is slightly above its middle band
RSI is stable and neutral (58.98)
Volume is low and relatively stable

Key levels to the upside Key levels to the downside

1: $0.285 1: $0.266

2: $0.31 2: $0.2454

3: $0.32 3:$0.235

Tags bitcoin, BTC, Crypto, Crypto Trading, cryptocurrency, Daily Brief, ETH, Ethereum, Fundamental Analysis, Ripple, Technical Analysis, trading, XRP

Crypto Market Analysis

Daily Crypto Review, August 31 – Cryptos Making Steady Gains Over the Weekend; ETC Hit By Third 51% Attack

Post author By Ilija Rankovic
Post date 31 August, 2020
1 Comment on Daily Crypto Review, August 31 – Cryptos Making Steady Gains Over the Weekend; ETC Hit By Third 51% Attack

The crypto market had a good weekend, with almost every single top cryptocurrency ending up in a net gain. Bitcoin is currently trading for $11,664, which represents an increase of 0.66% on the day. Meanwhile, Ethereum gained 4.42% on the day, while XRP gained 2.19%.

Daily Crypto Sector Heat Map

When taking a look at top100 cryptocurrencies, UMA gained 48.99% on the day, making it the most prominent daily gainer. Flexacoin (27.54%) and bZx Protocol (26.08%) also did great. On the other hand, DFI.Money lost 17.06%, making it the most prominent daily loser. It is followed by Golem’s loss of 10.16% and NEM’s drop of 7.06%.

Top 10 24-hour Performers (Click to enlarge)

Bottom 10 24-hour Performers (Click to enlarge)

Bitcoin’s dominance level has gone down quite a bit over the weekend and dropped below the 60% mark. Its value is currently at 59.24%, represents a 1.82% difference to the downside when compared to our last report.

Daily Crypto Market Cap Chart

The crypto market cap has increased significantly over the course of the weekend. Its current value is $372.72 billion, which represents an increase of $19.24 billion when compared to our previous report.

_______________________________________________________________________

What happened in the past 24 hours?

_______________________________________________________________________

Technical analysis

_______________________________________________________________________

Bitcoin

Bitcoin spent the weekend slowly rising in price on low volume. The largest cryptocurrency by market cap rose above $11,460 and $11,630 resistance levels, turning them into support. The $11,630 level is currently being retested, but it looks like Bitcoin will stay above it unless a large spike of sellers suddenly comes to the market.

Traders should take a look at Bitcoin’s confirmation of the $11,630 level. If BTC stays above it, traders can consider Bitcoin to be moving in within a range, bound by $11,630 and $12,000.

BTC/USD 4-hour Chart

Technical factors:

Price is above its 50-period EMA and 21-period EMA
Price is slightly above its middle band
RSI is neutral but leaning towards overbought (57.95)
Volume is low

Key levels to the upside Key levels to the downside

1: $11,630 1: $11,460

2: $12,015 2: $11,090

3: $12,330 3: $10,855

Ethereum

After passing the descending trend and moving above it, Ethereum had a couple of days of steady gains. The second-largest cryptocurrency by market cap slowly gained ground and passed the $400 as well as $415 resistance levels along the way. The move stopped just above $430, before starting to retrace. There is a big possibility that the $415 level will be tested as a support level.

Ethereum traders should look for ETH’s reaction when the price reaches $415 again.

ETH/USD 4-hour Chart

Technical Factors:

Price is currently above its 21-period and 50-period EMA
Price is slightly below the upper band
RSI is severely overbought (67.64)
Volume is average

Key levels to the upside Key levels to the downside

1: $415 1: $400

2: $445 2: $360

3: $496 3: $340

Ripple

XRP also had a great weekend, with its price consistently moving towards the upside after briefly breaking the $0.266 support level to the downside, which is where the bullish move on Aug 27 started. While it made some progress towards the upside, XRP did not reach past any significant resistance levels. In fact, it got stopped by the $0.285 level, which it most likely won’t pass.

Due to its RSI being close to overbought, low volume, and price rejection around the $0.285 level, XRP will most likely start a move towards the downside now.

XRP traders should trade it on its way down towards $0.266 or possibly look for a bounce off of the support XRP will find on its way down.

XRP/USD 4-hour Chart

Technical factors:

The price is above its 21-period and 50-period EMA
Price is slightly below its upper band
RSI is nearly overbought but is moving towards neutral (58.17)
Volume is low and relatively stable

Key levels to the upside Key levels to the downside

1: $0.285 1: $0.266

2: $0.31 2: $0.2454

3: $0.32 3:$0.235

Tags bitcoin, BTC, Crypto, Crypto Trading, cryptocurrency, Daily Brief, ETH, Ethereum, Fundamental Analysis, Ripple, Technical Analysis, trading, XRP

Forex Market Analysis

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

Post author By Ali B.
Post date 31 August, 2020
1 Comment on Daily F.X. Analysis, August 31 – Top Trade Setups In Forex – Trading Choppy Sessions!

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

Economic Events to Watch Today

EUR/USD – Daily Analysis

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

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

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

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

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

Daily Technical Levels

Support	Pivot	Resistance
1.1902	1.1904	1.1908
1.1898		1.1910
1.1895		1.1914

EUR/USD– Trading Tip

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

GBP/USD – Daily Analysis

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

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

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

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

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

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

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

Daily Technical Levels

Support	Pivot	Resistance
105.3400	105.5700	105.7800
105.1300		106.0100
104.8900		106.2300

GBP/USD– Trading Tip

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

USD/JPY – Daily Analysis

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

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

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

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

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

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

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

Daily Technical Levels

Support	Pivot	Resistance
1.3339	1.3349	1.3364
1.3325		1.3373
1.3315		1.3388

USD/JPY – Trading Tips

Tags EUR-USD, forex services, Forex Trading, Fundamental Analysis, GBP-USD, Support and Resistance, Technical Analysis, Technical Outlook, USD-JPY

Forex Market Analysis

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

Post author By Ali B.
Post date 28 August, 2020
1 Comment on Daily F.X. Analysis, August 28 – Top Trade Setups In Forex – U.S. Fed Chair Powell Speaks!

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

Economic Events to Watch Today

EUR/USD – Daily Analysis

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

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

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

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

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

Daily Technical Levels

Support	Pivot	Resistance
1.1754	1.1828	1.1894
1.1689		1.1967
1.1615		1.2033

EUR/USD– Trading Tip

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

GBP/USD – Daily Analysis

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

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

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

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

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

Daily Technical Levels

Support	Pivot	Resistance
1.3145	1.3215	1.3268
1.3092		1.3338
1.3022		1.3391

GBP/USD– Trading Tip

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

USD/JPY – Daily Analysis

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

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

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

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

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

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

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

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

Daily Technical Levels

Support	Pivot	Resistance
105.8700	106.2900	106.9700
105.1800		107.4000
104.7600		108.0800

USD/JPY – Trading Tips

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

Tags Daily Brief, Daily Support and Resistance, EUR-USD, Forex, forex services, Forex Trading, Fundamental Analysis, GBP-USD, Support and Resistance, Technical Analysis, Technical Outlook, trading

Forex Market Analysis

Gold Still Controlled by the Bull

Post author By Eduardo Vargas
Post date 28 August, 2020
No Comments on Gold Still Controlled by the Bull

Overview

The Gold price continues developing a sideways movement, which corresponds to an incomplete corrective structure that is still incomplete. Although there is an extreme bullish sentiment among market participants, the price of the golden metal could be poised to a decline in the following trading sessions.

Market Sentiment Overview

Gold prices continue moving sideways, consolidating above the psychological barrier of $1,900. The precious metal gains of over 28% (YTD) were boosted by the US Dollar weakness, which has dropped 5.47% (YTD) so far.

Gold, in its weekly timeframe, illustrates the market sentiment of the precious metal exposed by its 52-week high and low range. In the chart, we currently distinguish the market action moving mostly sideways, on the extreme bullish sentiment zone. The indecision candle that the yellow metal developed leads us to observe a state of equilibrium between the market participants.

On the other hand, looking at the volatility of the precious metal (GVZ) exposed in its daily chart, we observe the price action is consolidating in a flag pattern in the bearish sentiment zone. At the same time, we highlight the bounce GVZ developed from the extreme bearish sentiment zone toward the bearish zone in which currently is consolidating. We see that GVZ, moving above its 60-day moving average, shows an improvement in the investors’ sentiment.

The current market context observed in the Gold Volatility Index, which is consolidating creating a flag formation, added to Gold’s retesting of $1,917.81 per ounce, corresponding to the support of the extreme bullish sentiment zone, leads us to expect a new decline in the price of the yellow metal.

Elliott Wave Outlook

The short-term outlook under the Elliott wave perspective and illustrated in its 2-hour chart exposes the sideways movement evolving an incomplete corrective structure, after the yellow metal touched its all-time high at $2,075.14 per ounce, reached on August 06th.

Once the precious metal topped at $2,075.15 per ounce, Gold completed its fifth wave of Minuette degree, and it is drawing a corrective sequence that remains incomplete. In the previous figure, we distinguish the aggressively developed first downward leg. This fast movement drove the yellow metal to ease over 10%, finding a bottom at $1,862.32 per ounce. That gave the pass to the wave (b), identified in blue, which remains in development.

The second leg of the incomplete three-wave sequence completed its first wave of a lesser degree at $2,015.65 per ounce, starting to retrace with a lower momentum. This decelerated movement observed in the wave b of Subminuette degree, identified in green, drives us to verify the alternation principle stating that a fast move should alternate with a slow movement.

For the coming trading sessions, we expect an upward movement that would complete the wave c of Subminuette degree, in green, which at the same time would end the wave (b) in blue. Once this wave ends, the price should start to decline in a five-wave sequence corresponding to wave (c) of Minuette degree, labeled in blue. This downward scenario agrees with the potential upside observed in the Gold Volatility Index chart.

Tags Elliott Wave Analysis, Forex, Gold, Market Sentiment, Price Action, Technical Analysis, Technical Outlook, trading

Crypto Market Analysis

Daily Crypto Review, August 28 – Bitcoin Bearish as XRP Plummets

Post author By Ilija Rankovic
Post date 28 August, 2020
1 Comment on Daily Crypto Review, August 28 – Bitcoin Bearish as XRP Plummets

The crypto market was mostly bearish over the course of the day, with XRP losing the most out of the top cryptocurrencies. Bitcoin is currently trading for $11,341, which represents a decrease of 0.5% on the day. Meanwhile, Ethereum lost 0.44% on the day, while XRP lost 5%.

Daily Crypto Sector Heat Map

When taking a look at top100 cryptocurrencies, Numeraire gained 29.44% on the day, making it the most prominent daily gainer. Serum (23.05%) and Uma (21.68%) also did great. On the other hand, Aragon lost 17.67%, making it the most prominent daily loser. It is followed by Kusama’s loss of 12.20% and Qtum’s drop of 11.12%.

Top 10 24-hour Performers (Click to enlarge)

Bottom 10 24-hour Performers (Click to enlarge)

Bitcoin’s dominance level has gone up quite a bit from when our previous report, with its value currently at 61.06%. This value represents a 0.71% difference to the upside when compared to our last report.

Daily Crypto Market Cap Chart

The cryptocurrency market cap has decreased slightly over the course of the day. Its current value is $353.48 billion, which represents a decrease of $6.8 billion when compared to our previous report.

_______________________________________________________________________

What happened in the past 24 hours?

_______________________________________________________________________

Technical analysis

_______________________________________________________________________

Bitcoin

Bitcoin was extremely volatile in the past 24 hours, with its price ranging from $11,110 to $11,600. The largest cryptocurrency by market capitalization is still below the $11,460 resistance level and seems like its preparing a move (most likely to the downside).

The price of Bitcoin has declined by more than 6% in the last three days and that along with the fact that $700 million Bitcoin futures expiry is approaching, traders are nervous and have a bearish scenario in mind. Many technical analysts believe that Bitcoin has two paths ahead at the moment: $16,000 or $9,600.

Traders should take a look at Bitcoin’s movement around $11,460 before trading.

BTC/USD 4-hour Chart

Technical factors:

Price is below its 50-period EMA and 21-period EMA
Price is below its middle band
RSI is neutral but leaning towards oversold (41.82)
Volume is average (one-candle spike)

Key levels to the upside Key levels to the downside

1: $11,460 1: $11,090

2: $11,630 2: $10,855

3: $12,015 3: $10,500

Ethereum

The second-largest cryptocurrency by market capitalization continued its path above the descending trend line. While being above this line is a positive thing, Ethereum is still losing value as it’s gripping the line and following it down. If ETH decides to test the upside, it will encounter some turbulence way before its major resistance at $415.

If, however, Ethereum pushes towards the downside, it will fall back into the trend and possibly rush towards the bottom trend line.

Ethereum traders should look for Ethereum’s volume spike and push towards the upside.

ETH/USD 4-hour Chart

Technical Factors:

Price is currently below its 21-period and 50-period EMA
Price is slightly below the middle band
RSI is neutral (45.39)
Volume is very low (With volume spike when the trend line was retested)

Key levels to the upside Key levels to the downside

1: $415 1: $400

2: $445 2: $360

3: $496 3: $340

Ripple

XRP had an incredibly bad day, as bears took over the market and pushed its price down. The third-largest cryptocurrency by market cap dropped under the $0.266 support, and then immediately tried to head back up (without any success). While the price is still near the $0.266 level, it is unlikely that XRP will confidently move above it unless Bitcoin pulls the whole crypto market up by a sudden move to the upside.

XRP traders should look for how the cryptocurrency reacts to the $0.266 level and trade-off of that info.

XRP/USD 4-hour Chart

Technical factors:

The price is below its 21-period and 50-period EMA
Price is slightly above its lower band
RSI is at the oversold line (30.19)
Volume is unstable and cycling between average (low) and extremely high volume candles

Key levels to the upside Key levels to the downside

1: $0.285 1: $0.266

2: $0.31 2: $0.2454

3: $0.32 3:$0.235

Tags bitcoin, BTC, Crypto, Crypto Trading, cryptocurrency, Daily Brief, ETH, Ethereum, Fundamental Analysis, Ripple, Technical Analysis, trading, XRP

Forex Elliott Wave Forex Market Analysis

Dow Jones: Still no New Record High Confirmation

Post author By Eduardo Vargas
Post date 27 August, 2020
No Comments on Dow Jones: Still no New Record High Confirmation

Overview

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

Market Sentiment Overview

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

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

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

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

Elliott Wave Outlook

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

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

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

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

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

Tags Confirmation, Dow Jones, Elliott Wave, Forex, forex review, Market Sentiment, Technical Analysis, Technical Outlook, trading, Volatility

Crypto Market Analysis

Daily Crypto Review, August 27 – $700 Million of Bitcoin Options Expiring on Friday: Prepare for Volatility

Post author By Ilija Rankovic
Post date 27 August, 2020
1 Comment on Daily Crypto Review, August 27 – $700 Million of Bitcoin Options Expiring on Friday: Prepare for Volatility

The crypto market was split between cryptos that ended up in the green and in the red, with a bit more cryptocurrencies ending up gaining in the past 24 hours. Bitcoin is currently trading for $11,374, which represents an increase of 0.14% on the day. Meanwhile, Ethereum gained 0.77% on the day, while XRP lost 0.36%.

Daily Crypto Sector Heat Map

When taking a look at top100 cryptocurrencies, Celo gained 56.49% on the day, making it the most prominent daily gainer. Aragon (36.44%) and Siacoin (17.45%) also did great. On the other hand, The Midas Touch lost 20.75%, making it the most prominent daily loser. It is followed by Kusama’s loss of 8.81% and Reserve Rights’ drop of 8.72%.

Top 10 24-hour Performers (Click to enlarge)

Bottom 10 24-hour Performers (Click to enlarge)

Bitcoin’s dominance level has stayed at the same place as we reported yesterday, with its value currently at 60.35%. This value represents a 0.01% difference to the upside when compared to our last report.

Daily Crypto Market Cap Chart

The cryptocurrency market cap has increased significantly over the course of the day. Its current value is $360.28 billion, which represents an increase of $24.61 billion when compared to our previous report.

_______________________________________________________________________

What happened in the past 24 hours?

_______________________________________________________________________

Technical analysis

_______________________________________________________________________

Bitcoin

Bitcoin has had somewhat a slow day after bottoming out near $11,090. The largest cryptocurrency by market cap tried to break the $11,460 resistance level at one point, but it ended up unsuccessfully. Bitcoin will need to gather quite a strong bullish presence if it wants to reach $12,000 anytime soon, as the upside is guarded by way too many smaller and bigger resistance levels.

With $700 million of Bitcoin options expiring on Friday, we may see a nice spike in volume and volatility. Various analysts predict that the price at its current position would be a good buying opportunity for futures traders, while a price near $12,000 would be a good sell opportunity.

Traders should take a look at Bitcoin’s movement around $11,460.

BTC/USD 4-hour Chart

Technical factors:

Price is below its 50-period EMA and 21-period EMA
Price is between its lower and middle band
RSI is neutral but leaning towards oversold (41.02)
Volume is average

Key levels to the upside Key levels to the downside

1: $11,460 1: $11,090

2: $11,630 2: $10,855

3: $12,015 3: $10,500

Ethereum

While it did not do much better than Bitcoin in terms of daily gains, Ethereum had a decent day. The second-largest cryptocurrency by market cap gathered a small bullish force to push through the descending trend. Not only did Ethereum push past it, but it also confirmed its position above it. With that being said, Ethereum needs a significant volume spike if it wants to reach past $400, or go any higher than that.

However, with DeFi booming and gathering interest from traders (and even creating new ones), Ethereum might be on the right track to show its true bullish nature in the mid-term.

Ethereum traders should look for Ethereum’s volume spikes and trade-off of that.

ETH/USD 4-hour Chart

Technical Factors:

Price is currently below its 21-period and 50-period EMA
Price is between its lower and middle band
RSI is neutral (44.63)
Volume is very low

Key levels to the upside Key levels to the downside

1: $415 1: $400

2: $445 2: $360

3: $496 3: $340

Ripple

XRP was the only cryptocurrency in the red in the past 24 hours out of the top3 cryptocurrencies by market cap. After bottoming out near $0.266 and recovering to around $0.28, XRP started dropping slightly again, reaching the current price of $0.275. The low volume and candles with small bodies and small wicks show almost no volatility in trading.

XRP traders should look for a volume spike before even considering a trade.

XRP/USD 4-hour Chart

Technical factors:

Price is below its 21-period and 50-period EMA
Price is between its lower and middle band
RSI stable and leaning towards the oversold area (38.69)
Volume is below average and stable

Key levels to the upside Key levels to the downside

1: $0.285 1: $0.266

2: $0.31 2: $0.2454

3: $0.32 3:$0.235

Tags bitcoin, BTC, Crypto, Crypto Trading, cryptocurrency, Daily Brief, ETH, Ethereum, Fundamental Analysis, Ripple, Technical Analysis, trading, XRP

Forex Market Analysis

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

Post author By Ali B.
Post date 27 August, 2020
1 Comment on Daily F.X. Analysis, August 27 – Top Trade Setups In Forex – U.S. Fed Chair Powell Speaks!

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

Economic Events to Watch Today

EUR/USD – Daily Analysis

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

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

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

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

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

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

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

Daily Technical Levels

Support	Pivot	Resistance
1.1787	1.1814	1.1856
1.1744		1.1884
1.1717		1.1926

EUR/USD– Trading Tip

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

GBP/USD – Daily Analysis

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

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

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

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

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

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

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

Daily Technical Levels

Support	Pivot	Resistance
1.3144	1.3182	1.3247
1.3079		1.3285
1.3040		1.3351

GBP/USD– Trading Tip

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

USD/JPY – Daily Analysis

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

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

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

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

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

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

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

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

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

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

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

Daily Technical Levels

Support	Pivot	Resistance
105.7600	106.1600	106.3700
105.5500		106.7700
105.1500		106.9800

USD/JPY – Trading Tips

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

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

Tags EUR-USD, Forex, Forex Trading, Fundamental Analysis, GBP-USD, GBPUSD, Support and Resistance, Technical Analysis, Technical Outlook, Trade Setup, trading, USD-JPY

Crypto Market Analysis

Daily Crypto Review, August 26 – Bitcoin in a Downtrend; Altcoins Following Bitcoin

Post author By Ilija Rankovic
Post date 26 August, 2020
1 Comment on Daily Crypto Review, August 26 – Bitcoin in a Downtrend; Altcoins Following Bitcoin

Almost every single cryptocurrency in the top100 ended up in the red today, as Bitcoin fell below $11,630. Bitcoin is currently trading for $11,334, which represents a decrease of 2.34% on the day. Meanwhile, Ethereum lost 3.84% on the day, while XRP lost 2.57%.

Daily Crypto Sector Heat Map

When taking a look at top100 cryptocurrencies, Kusama gained 35.49% on the day, making it the most prominent daily gainer. Aragon (18.33%) and The Reserve Rights (14.61%) also did great. On the other hand, Flexacoin lost 12.17%, making it the most prominent daily loser. It is followed by Ocean Protocol’s loss of 10.15% and Verge’s drop of 9.60%.

Top 10 24-hour Performers (Click to enlarge)

Bottom 10 24-hour Performers (Click to enlarge)

Bitcoin’s dominance level has increased slightly, with its value currently at 60.34%. This value represents a 0.3% difference to the upside when compared to our last report.

Daily Crypto Market Cap Chart

The cryptocurrency market cap decreased significantly over the course of the day. Its current value is $335.82 billion, which represents a decrease of $33.15 billion when compared to our previous report.

_______________________________________________________________________

What happened in the past 24 hours?

_______________________________________________________________________

Technical analysis

_______________________________________________________________________

Bitcoin

Bitcoin has experienced yet another price drop in the past 24 hours. As we mentioned in our previous article, the largest cryptocurrency by market cap was preparing a move to either side and that the direction of the move will decide BTC’s faith in the short-term. As we can see, Bitcoin decided to go towards the downside and quickly dropped below its $11,630 and $11,460 support levels. It got stopped, however, by both the $11,090 and the descending trend line, which Bitcoin created ten days ago.

Traders should take a look at how Bitcoin resolves its current position and trade after they get more info.

BTC/USD 4-hour Chart

Technical factors:

Price is below its 50-period EMA and its 21-period EMA
Price is at its lower band
RSI bounced off of the oversold line (32.84)
Volume has increased

Key levels to the upside Key levels to the downside

1: $11,460 1: $11,090

2: $11,630 2: $10,855

3: $12,015 3: $10,505

Ethereum

Ethereum also had a bad day, with bears dominating its price movements. The second-largest cryptocurrency by market cap has, over the course of the day, dropped back into the descending trend it just briefly escaped the day before. Ethereum’s position within the descending trend was confirmed after a small price spike couldn’t get past the trend’s upper level.

Ethereum traders should look for how ETH handles being in the level, and how it exits it.

ETH/USD 4-hour Chart

Technical Factors:

Price is currently below its 21-period and its 50-period EMA
Price is at its lower band
RSI is leaning towards oversold (37.87)
Volume is normal (but the past 24h saw a surge in volume at one point)

Key levels to the upside Key levels to the downside

1: $415 1: $400

2: $445 2: $361

3: $496 3: $340

Ripple

XRP suffered from the same fate as BTC and ETH, with bears taking over the market and its price dropping in the past 24 hours. The third-largest cryptocurrency by market cap fell below $0.285 after not being able to properly confirm its position above it, and almost reached the $0.266 support in the process. XRP is now stabilizing at around $0.275 with low volume and volatility.

XRP traders should look for how the cryptocurrency reacts when it reaches its immediate support/resistance levels.

XRP/USD 4-hour Chart

Technical factors:

Price is below its 21-period and its 50-period EMA
Price is slightly above its lower band
RSI stable, but leaning towards the oversold area (38.10)
Volume is below average and stable (except a two-candle spike during the price drop)

Key levels to the upside Key levels to the downside

1: $0.285 1: $0.266

2: $0.31 2: $0.2454

3: $0.32 3:$0.235

Tags bitcoin, BTC, Crypto, Crypto Trading, cryptocurrency, Daily Brief, ETH, Ethereum, Fundamental Analysis, Ripple, Technical Analysis, trading, XRP

Forex Market Analysis

Daily F.X. Analysis, August 26 – Top Trade Setups In Forex – Durable Goods Orders In Highlights!

Post author By Ali B.
Post date 26 August, 2020
1 Comment on Daily F.X. Analysis, August 26 – Top Trade Setups In Forex – Durable Goods Orders In Highlights!

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

Economic Events to Watch Today

EUR/USD – Daily Analysis

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

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

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

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

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

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

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

Daily Technical Levels

Support	Pivot	Resistance
1.1795	1.1820	1.1857
1.1758		1.1882
1.1733		1.1919

EUR/USD– Trading Tip

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

GBP/USD – Daily Analysis

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

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

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

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

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

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

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

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

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

Daily Technical Levels

Support	Pivot	Resistance
1.3079	1.3125	1.3196
1.3008		1.3242
1.2962		1.3313

GBP/USD– Trading Tip

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

USD/JPY – Daily Analysis

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

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

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

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

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

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

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

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

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

Daily Technical Levels

Support	Pivot	Resistance
105.9500	106.2700	106.6800
105.5500		106.9900
105.2300		107.4000

USD/JPY – Trading Tips

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

Tags EURUSD, Forex, Forex Trading, Fundamental Analysis, GBP-USD, Support and Resistance, Technical Analysis, Technical Outlook, Trade Setup, trading, USDJPY

Forex Signals

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

Post author By Ali B.
Post date 25 August, 2020
No Comments on Hard luck with GBP/USD Signal – Sudden Spike Hit Stop Loss!

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

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

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

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

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

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

Moving ahead, the market traders will keep their eyes on the U.S. Federal Reserve Chairman Jerome Powell’s speech at the Jackson Hole symposium, which is scheduled to open on Thursday. The U.S. August consumer confidence is due later in the day and will be key to watch. In the meantime, the USD moves and coronavirus headlines will also closely followed as they could play a key role in the gold run-up.

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

Tags Forex Trading Signal, Fundamental Analysis, GBP-USD, Support and Resistance, Technical Analysis, Technical Outlook, Trade Setup

Forex Market Analysis

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

Post author By Ali B.
Post date 25 August, 2020
1 Comment on Daily F.X. Analysis, August 25 – Top Trade Setups In Forex – Consumer Confidence in Focus!

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

Economic Events to Watch Today

EUR/USD – Daily Analysis

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

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

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

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

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

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

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

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

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

Daily Technical Levels

Support	Pivot	Resistance
1.1787	1.1797	1.1807
1.1777		1.1817
1.1767		1.1827

EUR/USD– Trading Tip

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

GBP/USD – Daily Analysis

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

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

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

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

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

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

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

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

Daily Technical Levels

Support	Pivot	Resistance
1.3082	1.3092	1.3103
1.3071		1.3113
1.3062		1.3124

GBP/USD– Trading Tip

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

USD/JPY – Daily Analysis

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

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

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

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

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

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

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

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

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

Daily Technical Levels

Support	Pivot	Resistance
105.7700	105.8500	105.9500
105.6700		106.0300
105.6000		106.1300

USD/JPY – Trading Tips

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

Tags Daily Brief, EURUSD, Forex, Forex Trading, Fundamental Analysis, Support and Resistance, Technical Analysis, Technical Outlook, Trade Setup, trading, USDJPY

Crypto Market Analysis

Daily Crypto Review, August 25 – Bitcoin Whales List Reaches All-Time High; DeFi Projects Still Booming

Post author By Ilija Rankovic
Post date 25 August, 2020
1 Comment on Daily Crypto Review, August 25 – Bitcoin Whales List Reaches All-Time High; DeFi Projects Still Booming

Cryptocurrencies had a steady day, with most of them being in the slight green. Bitcoin is currently trading for $11,768, which represents an increase of 1.22% on the day. Meanwhile, Ethereum gained 4.32% on the day, while XRP gained 1.85%.

Daily Crypto Sector Heat Map

When taking a look at top100 cryptocurrencies, Aave gained 33.55% on the day, making it the most prominent daily gainer. Kusama (26.13%) and The JUST (17.30%) also did great. On the other hand, Nervos Network lost 7.95%, making it the most prominent daily loser. It is followed by OMG Network’s loss of 7.59% and Siacoin’s drop of 7.53%.

Top 10 24-hour Performers (Click to enlarge)

Bottom 10 24-hour Performers (Click to enlarge)

Bitcoin’s dominance level has decreased slightly, with its value currently at 60.04%. This value represents a 0.16% difference to the downside when compared to our last report.

Daily Crypto Market Cap Chart

The cryptocurrency market cap increased in value over the course of the day. Its current value is $368.97 billion, which represents an increase of $6.26 billion when compared to our previous report.

_______________________________________________________________________

What happened in the past 24 hours?

_______________________________________________________________________

Technical analysis

_______________________________________________________________________

Bitcoin

Bitcoin is at an important crossroad that will decide its short-term future. While it is currently stuck between $11,630 and $12,000, the largest cryptocurrency by market cap will soon have to decide on its direction. Even though a retest of the $11,630 support seems much more plausible, that does not mean that BTC will make a sharp move towards the downside. If the level holds, Bitcoin might have a good chance of bouncing towards $12,000 yet again.

The low volume also shows that a bigger move is on the horizon.

Traders should look for what BTC will do after it hits one of its support/resistance levels before making a trade.

BTC/USD 4-hour Chart

Technical factors:

Price is below its 50-period EMA and below its 21-period EMA
Price is slightly above its middle band
RSI is neutral (50.15)
Volume is below average and stagnant

Key levels to the upside Key levels to the downside

1: $12,015 1: $11,630

2: $12,300 2: $11,460

3: $12,900 3: $11,090

Ethereum

Unlike Bitcoin that’s preparing for a move and trading with reduced volume and volatility, Ethereum had a great day and ended up making good gains. The second-largest cryptocurrency by market cap had a small volume spike, which was significant enough to push the price up and past the descending trend it was in for a couple of days.

Ethereum is now stabilizing at around $400, while its volume is decreasing.

Ethereum traders should look for Bitcoin’s next move, which ETH will most likely follow.

ETH/USD 4-hour Chart

Technical Factors:

Price is currently above its 21-period and its 50-period EMA
Price is at its upper band
RSI is neutral (52.30)
Volume is slightly increased from the previous days

Key levels to the upside Key levels to the downside

1: $415 1: $400

2: $445 2: $361

3: $496 3: $340

Ripple

XRP spent the day consolidating above $0.285 level, which is regained the previous day. The third-largest cryptocurrency by market cap focused on stabilizing above $0.285, but without much success. While it is still technically above it, XRP would need a small move towards the upside (or some other sort of a decisive move) to confirm its position.

XRP traders should be careful around the $.285 level and pick their trade carefully based on where XRP will go.

XRP/USD 4-hour Chart

Technical factors:

Price is above its 21-period and below its 50-period EMA
Price is slightly above the middle band
RSI is neutral (48.63)
Volume is below average and stable

Key levels to the upside Key levels to the downside

1: $0.31 1: $0.285

2: $0.32 2: $0.266

3: $0.332 3:$0.2454

Tags bitcoin, BTC, Crypto, Crypto Trading, cryptocurrency, Daily Brief, ETH, Ethereum, Fundamental Analysis, Ripple, Technical Analysis, trading, XRP

Crypto Market Analysis

Daily Crypto Review, August 24 – YFI The Youngest DeFi Billionaire; IOTA Going Bankrupt

Post author By Ilija Rankovic
Post date 24 August, 2020
1 Comment on Daily Crypto Review, August 24 – YFI The Youngest DeFi Billionaire; IOTA Going Bankrupt

Cryptocurrencies spent most of the weekend recovering from the bearish move, which occurred late Friday and early Saturday. Bitcoin is currently trading for $11,731, which represents an increase of 1.11% on the day. Meanwhile, Ethereum gained 0.8% on the day, while XRP gained 1.71%.

Daily Crypto Sector Heat Map

When taking a look at top100 cryptocurrencies, Cosmos gained 29.48% on the day, making it the most prominent daily gainer. IRISnet (21.33%) and The Midas Touch (18.49%) also did great. On the other hand, yearn.finance lost 8.32%, making it the most prominent daily loser. It is followed by Ren’s loss of 7.36% and Komodo’s drop of 6.67%.

Top 10 24-hour Performers (Click to enlarge)

Bottom 10 24-hour Performers (Click to enlarge)

Bitcoin’s dominance level has increased slightly and passed the 60% mark to the upside, with its value currently at 60.20%. This value represents a 0.46% difference to the upside when compared to our last report.

Daily Crypto Market Cap Chart

The cryptocurrency market cap experienced a decrease in value over the course of the weekend. Its current value is $362.71 billion, which represents a decrease of $10.46 billion when compared to our previous report.

_______________________________________________________________________

What happened in the past 24 hours?

_______________________________________________________________________

Technical analysis

_______________________________________________________________________

Bitcoin

After a failed breakout of the ascending triangle, Bitcoin’s price started moving down until it reached $11,460 on Saturday. After reaching that level and not being able to pass it to the downside, Bitcoin bounced and started moving up slowly. The whole weekend was rather slow in terms of volatility, but extremely important in terms of where Bitcoin will end up. The fight for $11,630 was successful, and BTC is now above it, with the potential of going further up. However, the move to the upside will not go far with this volume, as it is way too low for any significant movement.

BTC traders should look for a trade near the $11,900 level, which might act as resistance.

BTC/USD 4-hour Chart

Technical factors:

Price is above its 50-period EMA as well as its 21-period EMA
Price is slightly above its middle band
RSI is neutral (54.45)
Volume is below average

Key levels to the upside Key levels to the downside

1: $12,015 1: $11,630

2: $12,300 2: $11,460

3: $12,900 3: $11,090

Ethereum

Ethereum’s weekend was also spent in recovering from the bearish moves that occurred in the previous week. The second-largest cryptocurrency by market cap managed to stabilize at below-$400 levels, which it is now trying to pass to the upside. However, the moves which occurred in the past week created a downward-facing trend, which is creating resistance towards the upside, which Ethereum is struggling to pass with low volume, which it now has.

Ethereum traders can look for a trade after Ethereum breaks the trend (to any side).

ETH/USD 4-hour Chart

Technical Factors:

Price is currently above its 21-period and below its 50-period EMA
Price is at its middle band
RSI is neutral (49.72)
Volume is below average

Key levels to the upside Key levels to the downside

1: $415 1: $400

2: $445 2: $361

3: $496 3: $340

Ripple

XRP’s chart looks no different than Bitcoin’s and Ethereum’s chart. The third-largest cryptocurrency by market cap spent the weekend recovering from what was lost during the bearish moves that occurred throughout the week. XRP stabilized at $0.28 and then gathered the strength to push past it. While the price is currently above the $0.285 level, it is not certain that it will stay that way. XRP would need a confirmation move in order to turn $0.285 into true support.

XRP traders can look for after XRP confirms its position, or after it drops below $0.285.

XRP/USD 4-hour Chart

Technical factors:

Price is currently above the 21-period and below the 50-period EMA
Price is slightly above the middle band
RSI is neutral (51.50)
Volume is stable and below average

Key levels to the upside Key levels to the downside

1: $0.31 1: $0.285

2: $0.32 2: $0.266

3: $0.332 3:$0.2454

Tags bitcoin, BTC, Crypto, Crypto Trading, cryptocurrency, Daily Brief, ETH, Ethereum, Fundamental Analysis, Ripple, Technical Analysis, trading, XRP

Forex Market Analysis

Daily F.X. Analysis, August 24 – Top Trade Setups In Forex – Choppy Sessions In Play!

Post author By Ali B.
Post date 24 August, 2020
1 Comment on Daily F.X. Analysis, August 24 – Top Trade Setups In Forex – Choppy Sessions In Play!

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

Economic Events to Watch Today

EUR/USD – Daily Analysis

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

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

Daily Technical Levels

Support	Pivot	Resistance
1.1787	1.1797	1.1807
1.1777		1.1817
1.1767		1.1827

EUR/USD– Trading Tip

GBP/USD – Daily Analysis

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

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

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

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

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

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

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

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

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

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

Daily Technical Levels

Support	Pivot	Resistance
1.3082	1.3092	1.3103
1.3071		1.3113
1.3062		1.3124

GBP/USD– Trading Tip

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

USD/JPY – Daily Analysis

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

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

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

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

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

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

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

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

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

Daily Technical Levels

Support	Pivot	Resistance
105.7700	105.8500	105.9500
105.6700		106.0300
105.6000		106.1300

USD/JPY – Trading Tips

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

Tags Daily Brief, EURUSD, Forex, forex indicator, Forex Trading, Fundamental Analysis, GBPUSD, Support and Resistance, Technical Analysis, Technical Outlook, Trade Setup, trading, USDJPY

Forex Signals

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

Post author By Ali B.
Post date 21 August, 2020
No Comments on GBP/USD Breaks Below Upward Channel – Update on Signal!

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

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

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

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

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

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

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

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

Tags Forex, GBP-USD, Technical Analysis, Trade Setup, Trading Signal

Forex Price Action

Trendline Trading: Major Chart’s Support/Resistance and Take-Profit Target

Post author By Tareq Sikder
Post date 21 August, 2020
No Comments on Trendline Trading: Major Chart’s Support/Resistance and Take-Profit Target

In today’s lesson, we are going to demonstrate an example of trendline trading where the price trends towards the South by obeying a down-trending trendline. In one of our lessons, we learned the importance of choosing a chart for trendline trading. In today’s example, we find out one more point to go with that. Let us get started.

It is an H4 chart. The chart shows that the price heads towards the South by having a bullish correction. The chart shows that the price produces a double bottom. The buyers may keep their eyes on the chart to go long upon having a breakout at the neckline.

The price makes a breakout at the neckline and heads towards the North. It makes a bearish correction and resumes its bullish journey. The last wave suggests that the buyers may push the price towards the level, where the price made its bearish move earlier.

It does not. The price finds its resistance and makes a strong bearish move. It makes a breakout at the last swing low. What does that mean? It means we have two swing highs. With those, we can draw a down-trending trend line and wait for the price to go towards the trendline’s resistance to go short in the pair.

The price attempts to go towards the trendline’s resistance several times. However, it comes back to its horizontal support again. If we look at the horizontal support, the price bounces at the level three times. It becomes daily support, considering the number of H4 candles. On the other hand, the trendline’s resistance is an H4 resistance. The question is whether the H4 trendline traders should wait to go short from the trendline’s resistance or not? Let us proceed to the next chart and find more about it.

The chart produces a bearish engulfing candle. The price trends towards the South from the same trendline’s resistance. It produces another bearish reversal candle in the same chart. Ideally, trendline traders should trigger a short entry right after the last candle closes by setting their take profit at the horizontal support. This is how the daily support is respected as well as the H4 sellers go short in the pair by using the trendline trading strategy. Let us see how the trade goes.

Wow! The price heads towards the South with good bearish momentum. It hits the target and makes a breakout at the horizontal support. It means the trendline is still active. The sellers may wait again for the price to go towards the trendline’s resistance and to get a bearish reversal candle to go short in the pair.

We must choose the right chart for trendline trading to take entry and we must remember the bigger time frame’s support/resistance to set take profit. If the risk-reward ratio is at least 1:1, we may take entry. If it is less than 1:1, we may skip taking entry and concentrate on some other charts.

Tags Education, Forex, Forex price action, Price Action, Resistance, Support, Technical Analysis, trading, trend line, trend line trading, trendline resistance

Forex Market Analysis

Russell 2000 in Consolidation, Expecting for More Upsides

Post author By Eduardo Vargas
Post date 21 August, 2020
No Comments on Russell 2000 in Consolidation, Expecting for More Upsides

Overview

The Russell 2000 Index raised over 64% off its lowest level of the year, advancing from the extreme bearish to the extreme bullish sentiment zone. The incomplete complex corrective structure, still in progress, calls for more upsides in the coming trading sessions.

Market Sentiment Overview

This year, the Russell 2000 index is underperforming by 6.24% (YTD); however, it continues its recovery from the first quarter massive sell-off, when the U.S. index plummeted until its lowest level of the year at 953.77 pts, currently advancing 64.38% off its lows.

The Russell 2000’s daily chart shows it’s moving inside the 52-week high-low range, exposing the development of a consolidation formation in the extreme bullish sentiment zone. Simultaneously, the 71-point reading observed in the fear and greed index reveals a bullish bias, helping support the upward bias that now prevails on the Russell 2000 Index.

On the other hand, Russell 2000’s volatility index shows it’s moving in the extreme bearish sentiment zone, which increases the bullish perspective for the U.S index grouping the 2,000 small-cap U.S. companies.

Consequently, both the market structure consolidating in the extreme bullish sentiment zone and the decreasing volatility observed, lead us to expect further upsides for the following trading sessions, which could make it advance till its opening level of the year, at 1,672 pts.

Elliott Wave Outlook

The short-term overview under the Elliott wave perspective is shown in its 4-hour chart, which reveals the structure of a bullish sequence that remains intact since March 23rd when Russell 2000 found fresh buyers at 963.62 pts.

In the previous chart, we distinguish Russell 2000’s upward progression, moving in a complex corrective formation identified as a double three pattern (3-3-3) of Minute degree, marked in black, which belongs to a wave B of Minor degree labeled in green.

The complexity level in the corrective sequence could be understood under the alternation principle context. Observing the first chart and considering the aggressive sell-off, lasting about in one month (since mid-February till mid-March), the alternation principle states that after a high-momentum level movement, a reduced-momentum move comes next, and vice versa.

Currently, Russell 2000 advances in wave (c) of Minuette degree, which began on July 10th when the U.S. index ended the wave e of the triangle pattern corresponding to wave (b) in blue. Once wave (b) was completed, the market participants pushed prices higher, carrying it till the 1,608 level on August 11th after the Russell 2000 Index found stiff resistance, which ended wave iii of Subminuette degree identified in green.

Consequently, we expect a limited sideways movement during the following trading sessions before continuing its advance toward fresh highs. Russell’s next upward movement could boost it to the 1,702.17 level, to test last February’s highs.

Tags Elliott Wave, Forex, Market Sentiment, Price Action, Russell 2000, Stock market, Technical Analysis, Technical Outlook, trading, Wave Analysis

Forex Market Analysis

Daily F.X. Analysis, August 21 – Top Trade Setups In Forex – Eyes in PMI Figures!

Post author By Ali B.
Post date 21 August, 2020
1 Comment on Daily F.X. Analysis, August 21 – Top Trade Setups In Forex – Eyes in PMI Figures!

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

Economic Events to Watch Today

EUR/USD – Daily Analysis

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

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

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

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

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

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

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

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

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

Daily Technical Levels

Support	Pivot	Resistance
1.1817	1.1843	1.1884
1.1775		1.1911
1.1749		1.1952

EUR/USD– Trading Tip

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

GBP/USD – Daily Analysis

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

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

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

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

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

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

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

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

Daily Technical Levels

Support	Pivot	Resistance
1.3108	1.3167	1.3271
1.3005		1.3329
1.2946		1.3433

GBP/USD– Trading Tip

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

USD/JPY – Daily Analysis

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

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

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

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

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

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

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

Daily Technical Levels

Support	Pivot	Resistance
105.6200	105.9200	106.1000
105.4300		106.4100
105.1300		106.5900

USD/JPY – Trading Tips

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

Tags Daily Brief, EURUSD, Forex, Forex Trading, Fundamental Analysis, GBPUSD, Support and Resistance, Technical Analysis, Technical Outlook, Trade Setup, trading, USDJPY

Crypto Market Analysis

Daily Crypto Review, August 21 – OMG Network Token Up Over 100% Today; Tether Moving 1 Billion USDT From Tron to Ethereum Blockchain

While most of the top cryptocurrencies took the day to consolidate or advance slightly, Ethereum tokens were the most volatile and moved up or down with much more intensity. Bitcoin is currently trading for $11,0835, which represents an increase of 0.56% on the day. Meanwhile, Ethereum gained 1.39% on the day, while XRP gained 1.01%.

While most of the top cryptocurrencies took the day to consolidate or advance slightly, Ethereum tokens were the most volatile and moved up or down with much more intensity. Bitcoin is currently trading for $11,835, which represents an increase of 0.56% on the day. Meanwhile, Ethereum gained 1.39% on the day, while XRP gained 1.01%.

Daily Crypto Sector Heat Map

When taking a look at top100 cryptocurrencies, OMG Network gained 106.88% on the day, making it the most prominent daily gainer. 0x (48.58%) and Flexacoin (42.15%) also did great. On the other hand, Ren lost 14.05%, making it the most prominent daily loser. It is followed by Reserve Rights’ loss of 7.07% and Waves’ drop of 6.93%.

Top 10 24-hour Performers (Click to enlarge)

Bottom 10 24-hour Performers (Click to enlarge)

Bitcoin’s dominance level has decreased slightly and went under the 60% mark yet again, with its value currently at 59.74%. This value represents a 0.7% difference to the downside when compared to our last report.

Daily Crypto Market Cap Chart

The cryptocurrency market cap experienced a sharp increase in value over the course of the day. Its current value is $373.17 billion, which represents an increase of $9.41 billion when compared to our previous report.

_______________________________________________________________________

What happened in the past 24 hours?

_______________________________________________________________________

Technical analysis

_______________________________________________________________________

Bitcoin

After a failed breakout of the ascending triangle, Bitcoin’s price started moving down sharply towards $11,630. The move, as we noted in our previous articles, stopped there. Bitcoin spent the past 24 hours mostly consolidating after a brief moment of bullish presence, which brought its price above $11,800 levels.

This move towards the upside, no matter how small it is, shows that Bitcoin is in a great spot at the moment, and it would take a lot to shake it out of this extremely bearish mid-term position.

BTC traders should be looking for a trade above $12,000, or after the push towards it fails.

BTC/USD 4-hour Chart

Technical factors:

Price is at its 50-period EMA and below its 21-period EMA
Price slightly below its middle band
RSI is neutral (48.45)
Volume is average (descending)

Key levels to the upside Key levels to the downside

1: $12,015 1: $11,630

2: $12,300 2: $11,460

3: $12,900 3: $11,090

Ethereum

Ethereum spent the day struggling at the $415 level, as the fight for whether it will end up above or below the level is still continuing. The second-largest crypto by market cap recovered from its drop to $395 after hitting a semi-descending line, which acted as support/resistance since Aug 5.

This fight for $415 clearly shows the fight between two mindsets: bulls who are extremely bullish when it comes to DeFi and everything related, and bears which are scared of the skyrocketing ETH transaction fees as well as of the ICO scenario that happened around 2017.

Ethereum traders should wait for ETH to establish itself above or below $415 before trading.

ETH/USD 4-hour Chart

Technical Factors:

Price is currently at its 21-period and its 50-period EMA
Price is at its middle band
RSI is neutral (47.15)
Volume is slightly below average

Key levels to the upside Key levels to the downside

1: $415 1: $400

2: $445 2: $361

3: $496 3: $340

Ripple

XRP’s chart looks a lot like BTC’s chart in the past couple of days. The third-largest cryptocurrency by market cap stopped moving towards the downside after hitting $0.285, which held up quite nicely. XRP then got a small boost towards the $0.29, where it is now consolidating.

With both 21-period and 50-period moving averages right above the price, XRP would require a strong bullish initiative in order to move towards $0.31, which (at the moment) seems unlikely.

Traders can look for an entry within the range between $0.285 and $0.31.

XRP/USD 4-hour Chart

Technical factors:

Price is currently below the 21-period and 50-period EMA
Price is slightly below the middle band
RSI is neutral (46.15)
Volume is descending (approaching average)

Key levels to the upside Key levels to the downside

1: $0.31 1: $0.285

2: $0.32 2: $0.266

3: $0.332 3:$0.2454

Tags bitcoin, BTC, Crypto, Crypto Trading, cryptocurrency, Daily Brief, ETH, Ethereum, Fundamental Analysis, Ripple, Technical Analysis, trading, XRP

Forex Market Analysis

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

Post author By Ali B.
Post date 20 August, 2020
1 Comment on Daily F.X. Analysis, August 20 – Top Trade Setups In Forex – Jobless Claims In Focus!

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

Economic Events to Watch Today

EUR/USD – Daily Analysis

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

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

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

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

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

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

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

Daily Technical Levels

Support	Pivot	Resistance
1.1792	1.1873	1.1916
1.1749		1.1997
1.1668		1.2041

EUR/USD– Trading Tip

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

GBP/USD – Daily Analysis

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

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

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

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

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

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

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

Daily Technical Levels

Support	Pivot	Resistance
1.3037	1.3153	1.3212
1.2978		1.3328
1.2862		1.3388

GBP/USD– Trading Tip

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

USD/JPY – Daily Analysis

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

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

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

Daily Technical Levels

Support	Pivot	Resistance
105.4100	105.7800	106.4600
104.7200		106.8400
104.3500		107.5200

USD/JPY – Trading Tips

Tags Daily Brief, EURUSD, Fundamental Analysis, GBPUSD, Support and Resistance, Technical Analysis, Technical Outlook, Trade Setup, trading, USDJPY

Crypto Market Analysis

Daily Crypto Review, August 20 – ETH Plummets Due To Skyrocketing Transaction Fees; $12,000 Level Too Strong For Bitcoin

Post author By Ilija Rankovic
Post date 20 August, 2020
1 Comment on Daily Crypto Review, August 20 – ETH Plummets Due To Skyrocketing Transaction Fees; $12,000 Level Too Strong For Bitcoin

While most of the top cryptos had a slightly red day, Ethereum tokens mostly did great. Bitcoin is currently trading for $11,732, which represents a decrease of 0.25% on the day. Meanwhile, Ethereum lost 1.26% on the day, while XRP lost 1.24%.

Daily Crypto Sector Heat Map

When taking a look at top100 cryptocurrencies, OMG Network gained 26.67% on the day, making it the most prominent daily gainer. yearn.finance (20.13%) and Qtum (10.04%) also did great. On the other hand, Balancer lost 19.84%, making it the most prominent daily loser. It is followed by Compound’s loss of 9.50% and Waves’ drop of 8,97%.

Top 10 24-hour Performers (Click to enlarge)

Bottom 10 24-hour Performers (Click to enlarge)

Bitcoin’s dominance level has increased slightly and passed the 60% mark, with its value currently at 60.44%. This value represents a 0.77% difference to the upside when compared to our last report.

Daily Crypto Market Cap Chart

The cryptocurrency market cap experienced a slight increase in value over the course of the day. Its current value is $364.76 billion, which represents an increase of $0.56 billion when compared to our previous report.

_______________________________________________________________________

What happened in the past 24 hours?

_______________________________________________________________________

Technical analysis

_______________________________________________________________________

Bitcoin

After a brief break of the $12,000 level, Bitcoin fell down and is controlled by BTC bears for the second day in a row. The largest cryptocurrency by market cap has moved towards the $11,630 support level (as we said in our previous article) and tried to test its strength. The level held up, and Bitcoin is now consolidating right above it.

This bear push was caused by several factors, but mostly because of the immense resistance at around $12,000 and the challenges Ethereum faces with its incredibly high transaction fees (Bitcoin acts as a “representative” to all the cryptos, so it affects others, but is also affected by others).

BTC traders should be looking for a trade when Bitcoin breaks $11,630 to the downside or pushes towards $12,000 again.

BTC/USD 4-hour Chart

Technical factors:

Price is below its 50-period EMA and its 21-period EMA
Price is between its lower and middle band
RSI is slightly tilted towards the oversold area (41.97)
Volume is average

Key levels to the upside Key levels to the downside

1: $12,015 1: $11,630

2: $12,300 2: $11,460

3: $12,900 3: $11,090

Ethereum

Even though Ethereum’s social sentiment is still extremely high due to the craze over DeFi, it is a fact that ETH’s transaction fees have been skyrocketing as the demand for DeFi increased. This fact, along with Bitcoin not being able to break the $12,000 mark, caused the second-largest cryptocurrency by market cap to drop below its $415 support level (now resistance). The drop stopped around $400 and changed direction, trying to retake its previous highs. However, the $415 resistance level confirmed its strength, leaving ETH below it.

Ethereum traders should look for a trade when ETH breaks $415 to the upside.

ETH/USD 4-hour Chart

Technical Factors:

Price is currently below its 21-period and its 50-period EMA
Price is slightly above its lower band
RSI is descending (39.54) and approaching oversold levels
Volume is average

Key levels to the upside Key levels to the downside

1: $415 1: $400

2: $445 2: $361

3: $496 3: $340

Ripple

XRP has had quite a bad day, as it essentially nullified any previous moves towards the upside. The third-largest cryptocurrency by market cap dropped to $0.285 levels (and even below it at one point). While the level held up and secured XRP’s position above it, for the time being, XRP does not look like it will make another move towards the upside soon.

Traders can look for a trade when XRP breaks $0.285 to the downside.

XRP/USD 4-hour Chart

Technical factors:

Price is currently below the 21-period and 50-period EMA
Price is slightly above the lower band
RSI is neutral (40.49)
Volume is descending (though it is slightly elevated)

Key levels to the upside Key levels to the downside

1: $0.31 1: $0.285

2: $0.32 2: $0.266

3: $0.332 3:$0.2454

Tags bitcoin, BTC, Crypto, Crypto Trading, cryptocurrency, Daily Brief, ETH, Ethereum, Fundamental Analysis, Ripple, Technical Analysis, trading, XRP

Forex Market Analysis

Daily F.X. Analysis, August 19 – Top Trade Setups In Forex – Eyes on FOMC Meeting Minutes!

Post author By Ali B.
Post date 19 August, 2020
1 Comment on Daily F.X. Analysis, August 19 – Top Trade Setups In Forex – Eyes on FOMC Meeting Minutes!

On the news front, the eyes will remain on the FOMC Meeting Minutes, which are not expected to show a rate change but will help us understand U.S. economic situation and policymakers’ stance on it. Besides, the Inflation reports from the U.K. and Eurozone are also likely to drive some price action during the European session today.

Economic Events to Watch Today

EUR/USD – Daily Analysis

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

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

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

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

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

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

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

Daily Technical Levels

Support	Pivot	Resistance
1.1873	1.1920	1.1975
1.1818		1.2022
1.1772		1.2077

EUR/USD– Trading Tip

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

GBP/USD – Daily Analysis

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

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

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

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

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

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

Daily Technical Levels

Support	Pivot	Resistance
1.3136	1.3193	1.3291
1.3037		1.3349
1.2980		1.3447

GBP/USD– Trading Tip

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

USD/JPY – Daily Analysis

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

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

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

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

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

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

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

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

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

Daily Technical Levels

Support	Pivot	Resistance
105.1100	105.5900	105.9000
104.8000		106.3800
104.3100		106.6900

USD/JPY – Trading Tips

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

Crypto Market Analysis

Daily Crypto Review, August 19 – Cryptos Heavily in the Red, YFI Token Breaks $11,000 and Approaches BTC’s Price Level

Post author By Ilija Rankovic
Post date 19 August, 2020
1 Comment on Daily Crypto Review, August 19 – Cryptos Heavily in the Red, YFI Token Breaks $11,000 and Approaches BTC’s Price Level

Almost every single cryptocurrency in the top100 was in the red today after Bitcoin broke $12,000 to the downside. Bitcoin is currently trading for $11,685, which represents a decrease of 4.7% on the day. Meanwhile, Ethereum lost 5.56% on the day, while XRP lost 9.4%.

Daily Crypto Sector Heat Map

When talking about top100 cryptocurrencies, yearn.finance gained 19.51% on the day, making it the most prominent daily gainer. THETA (17.62%) and Swipe (17.28%) also did great. On the other hand, Numeraire lost 10.95%, making it the most prominent daily loser. It is followed by BitTorrent’s loss of 10.14% and Fetch.ai’s drop of 9.94%.

Top 10 24-hour Performers (Click to enlarge)

Bottom 10 24-hour Performers (Click to enlarge)

Bitcoin’s dominance level has increased slightly (even though it is still under the 60% mark), with its value currently at 59.77%. This value represents a 0.13% difference to the upside when compared to our last report.

Daily Crypto Market Cap Chart

The cryptocurrency market cap experienced a decrease in value over the course of the day. Its current value is $364.20 billion, which represents a decrease of $20 billion when compared to our previous report.

_______________________________________________________________________

What happened in the past 24 hours?

_______________________________________________________________________

Technical analysis

_______________________________________________________________________

Bitcoin

After finally breaking $12,000 with confidence, Bitcoin is now falling hard below it (click on the arrow of the image). The largest cryptocurrency by market cap is dropping below $11,700 at the moment on bearish momentum. If the cryptocurrency manages to break below the 11,600 level, the next target will be 11,087. Right now, it is heavily oversold, so we can also expect a bounce back to near $12,000.

BTC traders should look for a trade after the cryptocurrency decides on whether it will end up above or below $11,600, as this is a strong support level.

BTC/USD 4-hour Chart

Technical factors:

Price is below its 50-period EMA and below its 21-period EMA
Price is below its lower band.
RSI is dropping (34) and approaching the oversold area
Volume is above average

Key levels to the upside Key levels to the downside

1: $12,015 1: $11,630

2: $12,300 2: $11,460

3: $12,900 3: $11,090

Ethereum

Ethereum’s social sentiment is still on the rise with the increased interest in DeFi. Even though the second-largest cryptocurrency by market cap is losing heavily in the past 24 hours, the $400 support level should hold, and ETH is (for the time being) safe above it. The next move Ethereum makes will most likely be caused by Bitcoin’s move, as the largest cryptocurrency by market cap is preparing an explosive move towards (most likely) the upside. That, though, should wait a bit, since cryptos are still under selling pressure.

Traders should look for a trade when ETH regains a higher and steady volume.

ETH/USD 4-hour Chart

Technical Factors:

Price is currently below its 21-period and its 50-period EMA
Price is below its lower B.B.
RSI is descending (36) approaching oversold levels
Volume is average

Key levels to the upside Key levels to the downside

1: $445 1: $415

2: $496 2: $400

3: $361

Ripple

XRP’s bold move towards the upside, which came after announcing that its company (Ripple) will focus its business model on the XRP token rather than using it as a side solution, got nullified. The third-largest cryptocurrency by market cap dropped below the $0.31 level and as low as $0.29 (which is where it is at now).

Traders can look for a trade after XRP moves above or below its immediate support/resistance levels, or within the current trading level.

XRP/USD 4-hour Chart

Technical factors:

Price is currently below the 21-period and 50-period EMA
Price is below the lower B.B.
RSI is dropping (38.6)
Volume increased in the last hours

Key levels to the upside Key levels to the downside

1: $0.32 1: $0.31

2: $0.332 2: $0.285

3:$0.266

Tags bitcoin, BTC, Crypto, Crypto Trading, cryptocurrency, Daily Brief, ETH, Ethereum, Fundamental Analysis, Ripple, Technical Analysis, trading, XRP

Forex Fundamental Analysis

Flash Crash Precautions for Technical Traders

Post author By Forex Academy
Post date 18 August, 2020
No Comments on Flash Crash Precautions for Technical Traders

After the recent publication of a book called Flash Crash, the concept of the same name once again stirred the attention of traders across different markets. This controversial literary record of Navinder Singh Sarao’s very public 2015 arrest after having previously amassed staggering $70 million buying and selling futures from his London home points to the existence of fragilities in markets. As opposed to regular pricing fluctuations, a flash crash entails an extremely volatile and sudden plunge of the pricing of a security traded on the open market before quickly recovering. With more and more instances of such swift declines, we can see the aftermath of these dramatic volatilities in the markets of stocks, futures, currencies, and cryptocurrencies as well. Whether it results from programming code errors, specifically designed algorithms, and fraudulent behavior, or some other drivers, flash crash plays an important role in assessing risk levels for traders worldwide.

The currency market underwent a major flash crash on January 3, 2019, which took place on the AUD/JPY pair. Since these two currencies are some of the world’s most important exchange rates, their 2019 dynamic was so unbelievable that it drew the attention of the media and traders across the world. With AUD becoming very weak and JPY gaining strength, the currency pair fell the unbelievable 7% in a matter of three minutes. Considering the fact that that the prices plummeting to this extent is exceptionally rare even in a week’s time, one could naturally assume that some major crisis, such as bombing or death of a president, was responsible for such violent move in the currency market. As a flash crash is rather believed to be a deliberate act of market attack to obtain profit instantaneously, the previous assumption falls short.

Some sources discussed how extensive the damage of these volatile activities in an illiquid market had on the Australian economy. With China being on holiday during the week of the event and the U.S. market closing, a drop in liquidity occurred. One of the biggest American companies, Apple, expressed concern regarding the impact which the slowdown in China could have on its fourth-quarter revenues, immediately shifting investors’ focus on the havoc these circumstances could wreak on the global economy. Along with several currency levels being extremely low against the yen at the time came burning questions concerning market liquidity, algorithms, and overall market functioning, which reasonably caused deep concern among traders around the globe and not only in the currency market but other markets as well.

Despite the media frenzy over the global economy, some sources pointed out that liquidity had little effect on anything but the currency market. In fact, the images below portray some major discrepancies between the evidently severe states of the AUD/JPY pair and the stock market performance during the 2019 flash crash. The proportion of these differences then aroused curiosity about the reasons why the prices rebounded immediately after the decline. Some financial reports on this event reflect on the stability AUD/JPY enjoyed over the course of 2018, which may point to the possibility of some major banks and/or institutions getting involved. Interestingly enough, right about the time of the 2019 flash crash, 89% of AUD/JPY traders were going long. As this was a virtually unforeseen ratio of 9:1, it was almost a perfect opportunity for big banks to step in do what they always do – redirect the prices and cream off the profit. Even if the Japanese government decided to move JPY up or down, this process would happen gradually, as opposed to what the currency market witnessed in 2019.

As the AUD/JPY pair closed down approximately 83 pips on the day of the event only to bounce right back up to the levels at the end of 2018, we need to draw some deeper lessons. We can attribute the magnitude of this catastrophe to the media and the big banks, but essentially if you do not analyze risk, timing, and strategy, among others, you are inevitably putting yourself in much greater risk. Most traders whose accounts were completely destroyed as a result of the 2019 AUD/JPY volatility, drowned themselves with emotion-based trading, greedily going after a bounce. Although the 2019 currency market flash crash was not the first occurrence of this phenomenon, the individuals practicing the indicator-heavy approach to trading, especially the ones beginning to build their accounts, experienced a shock as well. Those traders who managed to get out understood how relevant technical analyses and understanding indicators are for surviving the market’s instability.

Brexit and the 2015 EUR/CHF crash both exemplify how such events can influence the creation of a really large candle closing at an entirely different point from where it started. The 2019 flash crash too revealed some unusual facts, where the open and close on the AUD/JPY currency pair were only 83 pips apart, yet with a noticeable high and low. While most indicators typically focus solely on the open and close, ignoring additional information regarding the highs and lows, ATR would be the only tool that could give out relevant signals. At such times, ATR would read much higher than usual, and as flash crashes rarely happen, you would know that the information you were getting was telling you to take a certain action. In case you are using a volume indicator, some of the more average versions might be able to catch the highs and the lows, in contrast to the better versions whose quality stems from its ability to filter out any such activity.

Whether you are using the ATR alone or together with the volume indicator, you should consider the settings which tell how the indicators are measuring data. For example, with the ATR, the settings typically indicate the number 14, which stands for 14 candles, which for daily traders implies that the data is recorded 14 trading days back. Due to the impact of events such as the flash crash, you will not be able to get an accurate reading for another two weeks. Nonetheless, despite the equation being susceptible to these sudden changes, you can still proceed with the trading on the affected currency pair if you take the reading from the day before the event took place. Therefore, in the following 14 days, you will not be including the indicator’s reading, but relying on the one fixed number you found on that particular day.

Even though events such as Brexit and the 2015 EUR/CHF crash are not very common, they still occur every few years, which is why every trader should know how to prepare for the unexpected. As we explained above, the out-of-the-ordinary candle created at those times will inevitably affect your indicators, regardless of how well-devised an algorithm you use. Whichever currency pair undergoes these massive influences, your only task is to stay put and refrain from taking any action. If any currency was under impact because of some external factors, such as GBP after Brexit in 2016, you would not be trading that currency until all indicators went back to normal. What this further implies is that you may need to check the settings to see how far back your indicator is going to record data and patiently sit out for that period of time. Moreover, any attempt to adjust and set up your indicators will prove to be until those big candles are filtered out of the system. Luckily enough, there are approximately seven other major currencies you can trade and keep your account active.

Apart from the 2019’s flash crash, we can trace several other such events happening in the past few years: ETH in 2017, GBP in 2016, and Singapore Exchange in 2013. Although they do not occur very often, once they do, though, no market is exempt from such an unexpected price plunge and rebound. What is so volatile about flash crashes is that, despite what sets them off, they deeply and profoundly affect the market. We may not have enough insight into the intentions of the major players, but we must take into consideration the amount of impact they can have on the direction of prices and the overall market conditions. Nevertheless, regardless of the current climate, every trader now knows the two strategies they can use at such times. If you are a trader of currencies, you will either rely on the data recorded one day before such an event to proceed with a trade on the affected currency or decide to sit out until further notice. Whatever you do decide, however, do not let yourself run after some transient highs searching for some instant gratification.

Tags forex analysis, FX Trading, Technical Analysis

Forex Course

144. Trading The Channel Breakouts In The Forex Market

Post author By Reddy Shyam Shankar
Post date 18 August, 2020
No Comments on 144. Trading The Channel Breakouts In The Forex Market

Introduction

Breakout trading is one of the easiest and most common and smartest ways to trade the market. It doesn’t matter whether you are a scalper, intraday trader, investor, or a swing trader; you can always make money in the market if you master the breakout trading only.

Breakout trading is an attempt to enter in the market when the price action moves outside the significant price range, most of the time it takes an immense amount of power to break the significant areas, and you will always witness the spikes, fake-outs near the breakouts, this is because both of the parties tries to dominate the shows.

What is a Price Channel?

A price channel is a state of the market that connects the swing high and swing higher lows in an uptrend. Conversely, in a downtrend, it connects the swing low and lower low. The upper trend lines act as a resistance to the price action, and the lower trend lines act as a support line on the price chart. The price respects these areas by staying inside the price channel. When the opposite party becomes dominates, then we witness the breakout in a channel.

Trading Channel Breakouts

Buy Trade 1

The price chart below represents a channel breakout in the CAD/JPY forex pair.

As we can see, the sellers are getting weaker in the channel, and as a result, soon after the breakout price action changed its trend. So, around 81.55, the price action broke to the north and printing a brand new higher high.

Buy Trade 2

The image below represents the formation of a price channel in the CAD/JPY forex pair.

As we can see, the below price chart represents our entry-exit and stop loss in this pair. So during the downtrend, both buyers and sellers were holding equal power. Near to the 78.00 area, price action broke to the north, and after the breakout, we took a buy-entry. After our entry, the price made a brand new higher high, but the hold at the most recent higher high convinced us to close our trade at the 88.37 level.

Sell Trade 1

The image below represents the formation of a Price channel in a downward trend.

The image below represents our entry, stop loss, and take profit in this Forex pair. The channel is typically formed when there is no trend, or when the trend is about to end. On a lower timeframe, we can trade inside the Channel, but on this timeframe, the break below the 78.30 level indicates that the sellers stole the show, and are ready for a brand new lower low.

Sell Trade 2

The image below represents a channel breakout in the AUD/JPY Forex pair.

Right after the price action approaches the most recent support area, it just got shot down and broke below the Channel. The strong red breakout candle is an indication for us to go short in this pair and right after our entry, we have witnessed a brand new lower low.

Trading channel breakouts is this simple. But minute details like drawing channel lines accurately is crucial. Let’s learn more breakout trading techniques in the upcoming lessons. For now, don’t forget to take the quiz.

[wp_quiz id=”85204″]

Tags Breakout trading, Breakouts, Channel, Channel Breakouts, Education, Forex, Forex Course, Forex Trading, Technical Analysis, Technical Trading, trading

Forex Basic Strategies

The ‘Daily High Low’ Based Forex Trading Strategy

Post author By Reddy Shyam Shankar
Post date 18 August, 2020
No Comments on The ‘Daily High Low’ Based Forex Trading Strategy

Introduction The daily high low based forex trading strategy is a breakout trading strategy from the high and low prices in the daily timeframe. In forex trading, the daily timeframe is crucial as most of the significant market players use this time table in their trading. As a result, any trading strategy in the daily […]

Introduction

The daily high low based forex trading strategy is a breakout trading strategy from the high and low prices in the daily timeframe. In forex trading, the daily timeframe is crucial as most of the significant market players use this time table in their trading. As a result, any trading strategy in the daily time frame provides better trading results compared to the lower time frame.

On the other hand, when the price creates a rally by breaking the high and low price of the daily timeframe will indicate a significant market momentum. If you can avoid the range market, the high low based strategy can provide a reliable trading result. If you can implement the trading strategy well as per the rule mentioned below, you can make a decent profit from it in any currency pair.

The Daily High Low Based Trading Strategy

The daily high low based forex trading strategy has a simple concept:

If the price breaks below the low of yesterday’s candle, it may move further low.
If the price breaks above the high of yesterday’s candle, it may move further high.

It is a standard brief of this trading strategy. Let’s have a look at the image below:

In this image above, the price has made a new higher high once it breaks above the candle high in the market area. However, there is some market condition where price moves to a range and violates the movement above or below the candle high.

If you are trading the breakout of a daily candlestick that is larger than the earlier candlesticks, you might be caught by the mean reversion of the price. In the forex market, it is often difficult to predict how long a trend could stay. Almost 70% of the time, the market moves within a range; therefore, you should find a location of the price where the breakout from a daily candle would be reliable.

The basic concept of making a good profit from the forex market is to buy from low and sell from high. Therefore, any bullish breakout from a significant support level in a daily timeframe would indicate a reliable daily breakout strategy compared to a trade setup from the middle of a trend. Let’s have a look at the image below, how the price moved up once it got a breakout from a daily candle from a significant support level.

Now look at the image below and see how the price violates the daily breakout to the upside once it reached above 50% of the possible trend.

How to Trade the High Low Breakout Strategy?

This trading strategy is simple as you can make most of the trading decision a day before the movement is expected. The main of this trading strategy is to place two pending orders above or below the yesterday candle. Therefore, you can catch any movement either upside or downside from the previous day’s candle.

Timeframe

We should consider the daily timeframe to determine the high and low prices. Later on, move to the lower timeframe (usually H4) to enter the trade. However, for new traders, it is recommended to stick to the daily timeframe.

Currency Pairs

This trading strategy works well in all currency pairs, including EURUSD, GBPUSD, USDJPY, or AUDUSD. However, sticking to the major and minor currency pairs would provide a better trading result. Moreover, you should avoid exotic pairs as there is a risk of the false move by hitting the high or low and reverse back.

Breakout Rules

Identify the currency pair that is moving within a trending environment. You can predict the direction of the price based on the market context or support and resistance.
For example, suppose the price is aggressively creating a higher high or lower low. In that case, the price will likely continue the current momentum until it reaches the next resistance or support level. Moreover, any breakout from a significant key level often creates a fresh move either upside and downside.
When the daily candle of the previous day closes, place a buy stop above the daily high, and a sell stop below the daily low to catch the breakout.
Move your stop loss at 50% of the daily candle.
For the take-profit level, you can consider the average price of the last three days’ movement. For example, if the daily candle of the last three days shows the movement of 100 pips, 50 pips, and 100 pips, the total movement would be 250 pips (100+50+100). Therefore, the average price of the last three days would be 83 pips (250/3).

Example of Daily High Low Based Trading Strategy

The image below represents the graphical view of the daily high low based trading strategy:

In the image above, we can see the price moved up from a significant support level with a daily close above it. A buy Stop is taken once the price had a bullish daily close from the key support level. A similar concept will apply to the bearish market once the price has a daily close from a significant resistance level.
The next day, the buy stop is taken, and the price moved to the take profit level. The take profit level is taken by calculating the average price of the last three candles.
The stop loss is set at 50% of the previous day’s candle. If the stop loss hit, it will indicate that the price will reverse or consolidate more. In that case, we should wait for a further breakout or move to another currency pair.

Summary

Let’s summarize the daily breakout trading strategy:

Identify the currency pair that is moving within a trend or likely to start a new trend.
Set buy stop above the candle if the price is moving up from a support level and put a sell stop if the price is moving down from a resistance level.
Stop-loss should be at 50% of the previous day’s candle.
Take profit will be the average price of the last three days’ movement.

In this trading strategy, the challenge is to avoid correction and choppy market. In that case, you should read the price action to determine the possible movement by measuring the price momentum. Moreover, to get the maximum benefit from this trading strategy, follow strong money management rules.

Tags Basic Trading Strategies, Daily High Low Strategy, Forex Market, Forex Trading, High Low, Technical Analysis, Technical Trading, trading strategy

Forex Market Analysis

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

Post author By Ali B.
Post date 18 August, 2020
1 Comment on Daily F.X. Analysis, August 18 – Top Trade Setups In Forex – Boosted Safe-Haven Plays!

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

Economic Events to Watch Today

EUR/USD – Daily Analysis

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

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

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

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

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

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

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

Daily Technical Levels

Support	Pivot	Resistance
1.1838	1.1860	1.1891
1.1807		1.1913
1.1785		1.1945

EUR/USD– Trading Tip

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

GBP/USD – Daily Analysis

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

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

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

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

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

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

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

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

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

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

Daily Technical Levels

Support	Pivot	Resistance
1.3075	1.3099	1.3124
1.3050		1.3148
1.3027		1.3173

GBP/USD– Trading Tip

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

USD/JPY – Daily Analysis

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

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

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

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

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

Daily Technical Levels

Support	Pivot	Resistance
105.7300	106.2000	106.4600
105.4800		106.9200
105.0100		107.1800

USD/JPY – Trading Tips

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

Tags Daily Brief, EUR/JPY, Forex, Forex Trading, Fundamental Analysis, GBPUSD, Support and Resistance, Technical Analysis, Technical Outlook, Trade Setup, trading, USDJPY

Crypto Market Analysis

Daily Crypto Review, August 18 – Crypto Fundamentals Booming: Bitcoin Above $12,000; XRP Skyrocketing to $0.315

Post author By Ilija Rankovic
Post date 18 August, 2020
1 Comment on Daily Crypto Review, August 18 – Crypto Fundamentals Booming: Bitcoin Above $12,000; XRP Skyrocketing to $0.315

The cryptocurrency market made gains over the course of the day as Bitcoin broke the $12,000 mark. Bitcoin is currently trading for $12,247, which represents an increase of 3.61% on the day. Meanwhile, Ethereum gained 1.12% on the day, while XRP gained 5.14%.

Daily Crypto Sector Heat Map

When talking about top100 cryptocurrencies, Flexacoin gained 27.98% on the day, making it the most prominent daily gainer. yearn.finance (26.80%) and Fetch.ai (25.97%) also did great. On the other hand, Algorand lost 14.78%, making it the most prominent daily loser. It is followed by Chainlink’s loss of 12.26% and THORChain’s drop of 10.18%.

Top 10 24-hour Performers (Click to enlarge)

Bottom 10 24-hour Performers (Click to enlarge)

Bitcoin’s dominance level has increased slightly (though it is still under the 60% mark), with its value currently at 59.64%. This value represents a 0.47% difference to the upside when compared to our last report.

Daily Crypto Market Cap Chart

The cryptocurrency market cap experienced a solid increase in value over the course of the day. Its current value is $384.43 billion, which represents an increase of $11.03 billion when compared to our previous report.

_______________________________________________________________________

What happened in the past 24 hours?

_______________________________________________________________________

Technical analysis

_______________________________________________________________________

Bitcoin

Bitcoin finally broke $12,000 with confidence, after a couple of days slowly preparing for this move. The largest cryptocurrency by market cap broke out from a large ascending triangle formation and pushed up to $12,470 before falling back down slightly. However, for now, Bitcoin is safe above $12,000 even though it is moving towards the downside. It will most likely test the closest support level in the short term.

This (relatively) sudden break above $12,000 came as a result of many things, but mostly increased interest in DeFi which is making people enter the crypto space (which they do through Bitcoin) and because of institutional investors such as Pantera capital (which just recently announced raising $165 million)

BTC traders should look for a trade after Bitcoin retests its support level.

BTC/USD 4-hour Chart

Technical factors:

Price is above its 50-period EMA and its 21-period EMA
Price is slightly below its top B.B.
RSI is elevated (63.83)
Volume is decreasing (one-candle spike)

Key levels to the upside Key levels to the downside

1: $12,000 1: $11,630

2: $12,300 2: $11,460

3: $11,090

Ethereum

Ethereum’s social sentiment was booming as more and more people started investing in DeFi tokens. As this happened, more and more institutional investors grabbed ETH. This made the second-largest cryptocurrency by market cap establish its place above $415 with no signs of going below it in the short future.

When talking about the past 24 hours, Ethereum made a push towards $450 (accompanied by skyrocketing volume), which it did not have the strength to complete. The move died down, and Ethereum is now consolidating at the $430 level.

Traders should look for a trade when ETH regains steady volume.

ETH/USD 4-hour Chart

Technical Factors:

Price is currently above its 21-period and its 50-period EMA
Price is at its middle B.B.
RSI is neutral (52.68)
Volume is average (one-candle spike)

Key levels to the upside Key levels to the downside

1: $445 1: $415

2: $496 2: $400

3: $361

Ripple

XRP made a bold move towards the upside after announcing that its company (Ripple) will focus its business model on the XRP token. As more emphasis was put on developing XRP as the main solution rather than a side solution, more investors flocked and bought XRP.

The third-largest cryptocurrency by market cap pushed past $0.31 and even $0.32, ultimately reaching $0.3275 as the top of the move. As it could not sustain itself above the $0.32 level, XRP fell below it and started a consolidation/confirmation period right between $0.31 and $0.32.

Traders can look for a trade after XRP moves towards $0.32 to break it or towards $0.31 to test the support level.

XRP/USD 4-hour Chart

Technical factors:

Price is currently above the 21-period and 50-period EMA
Price is slightly below the top B.B.
RSI is elevated (63.26)
Average volume (two-candle spike)

Key levels to the upside Key levels to the downside

1: $0.32 1: $0.31

2: $0.332 2: $0.285

3:$0.266

Tags bitcoin, BTC, Crypto, Crypto Trading, cryptocurrency, Daily Brief, ETH, Ethereum, Fundamental Analysis, Ripple, Technical Analysis, trading, XRP

Forex Signals

EUR/USD Violates Resistance – Buying Signal Doing Well!

Post author By Ali B.
Post date 17 August, 2020
No Comments on EUR/USD Violates Resistance – Buying Signal Doing Well!

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

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

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

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

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

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

Entry Price – Buy 1.1871

Stop Loss – 1.1831

Take Profit – 1.1911

Risk to Reward – 1:1

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

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

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

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

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

Tags EUR-USD, Forex, Fundamental Analysis, Support and Resistance, Technical Analysis

Forex Market Analysis

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

Post author By Ali B.
Post date 17 August, 2020
1 Comment on Daily F.X. Analysis, August 17 – Top Trade Setups In Forex – Eyes Technical Levels!

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

Economic Events to Watch Today

EUR/USD – Daily Analysis

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

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

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

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

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

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

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

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

Daily Technical Levels

Support	Pivot	Resistance
1.1745	1.1805	1.1900
1.1650		1.1960
1.1591		1.2054

EUR/USD– Trading Tip

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

GBP/USD – Daily Analysis

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

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

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

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

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

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

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

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

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

Daily Technical Levels

Support	Pivot	Resistance
1.3010	1.3077	1.3150
1.2938		1.3216
1.2871		1.3289

GBP/USD– Trading Tip

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

USD/JPY – Daily Analysis

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

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

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

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

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

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

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

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

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

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

Daily Technical Levels

Support	Pivot	Resistance
105.8400	106.4500	107.1900
105.1000		107.8000
104.4900		108.5500

USD/JPY – Trading Tips

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

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

Crypto Market Analysis

Daily Crypto Review, August 17 – DeFi Craze Continues: More BTC Tokenized Than Mined

Post author By Ilija Rankovic
Post date 17 August, 2020
1 Comment on Daily Crypto Review, August 17 – DeFi Craze Continues: More BTC Tokenized Than Mined

The cryptocurrency market spent most of its weekend consolidating, with only a couple of cryptocurrencies moving significantly. Bitcoin is currently trading for $11,817, which represents a decrease of 0.64% on the day. Meanwhile, Ethereum lost 1.27% on the day, while XRP lost 0.47%.

Daily Crypto Sector Heat Map

When talking about top100 cryptocurrencies, OMG Network gained 50.69% on the day, making it the most prominent daily gainer. Waves (26.69%) and Ren (24.74%) also did great. On the other hand, Quant lost 6.55%, making it the most prominent daily loser. It is followed by Divi’s loss of 5.80% and Ampleforth’s drop of 5.08%.

Top 10 24-hour Performers (Click to enlarge)

Bottom 10 24-hour Performers (Click to enlarge)

Bitcoin’s dominance level has decreased slightly and dropped under the 60% mark, with its value currently at 59.17%. This value represents a 0.91% difference to the downside when compared to our last report.

Daily Crypto Market Cap Chart

The cryptocurrency market cap experienced a slight increase in value over the weekend. Its current value is $373.40 billion, which represents an increase of $5.33 billion when compared to our previous report.

_______________________________________________________________________

What happened in the past 24 hours?

_______________________________________________________________________

Technical analysis

_______________________________________________________________________

Bitcoin

Bitcoin was on a slightly upward slope over the course of the weekend, trying to reach $12,000 before attempting a strong push. The largest cryptocurrency by market cap saw good support in the 21-period moving average, which kept it on its path. The descending RSI and incredibly low volume indicate that the cryptocurrency will move very soon. Meanwhile, Bitcoin’s hashrate reached its new all-time high of 129 EH/s.

BTC traders should look for a trade when a volume spike happens.

BTC/USD 4-hour Chart

Technical factors:

Price is above its 50-period EMA and its 21-period EMA
Price is at its middle B.B
RSI is neutral (52.88)
Volume is decreasing (Low)

Key levels to the upside Key levels to the downside

1: $12,000 1: $11,630

2: $12,300 2: $11,460

3: $11,090

Ethereum

Unlike Bitcoin, Ethereum was not moving slow throughout the weekend. After breaking the $415 mark, Ethereum needed to consolidate above it and show strength, which it did. The second-largest cryptocurrency by market cap retested its support (successfully) and is now safely at the $425 mark.

Traders should look for a trade when ETH regains volume.

ETH/USD 4-hour Chart

Technical Factors:

Price is currently above its 21-period and its 50-period EMA
Price is above its top B.B.
RSI is neutral (52.85)
Volume is below average

Key levels to the upside Key levels to the downside

1: $445 1: $415

2: $496 2: $400

3: $361

Ripple

XRP spent its weekend consolidating between the $0.285 and $0.31 support and resistance levels. Low volatility, as well as volume, made XRP virtually untradeable over the course of the weekend. However, as much as XRP doesn’t seem like it doesn’t have the strength to push through $0.31 by itself (without Bitcoin moving first), the state it is currently in is still more bullish than bearish.

Traders can look for a trade after XRP increases its volume and heads towards $0.31.

XRP/USD 4-hour Chart

Technical factors:

Price is currently above the 21-period and 50-period EMA
Price is between its middle and top B.B.
RSI is neutral (55.30)
Low volume

Key levels to the upside Key levels to the downside

1: $0.31 1: $0.285

2: $0.32 2: $0.266

3: $0.245

Tags bitcoin, BTC, Crypto, Crypto Trading, cryptocurrency, Daily Brief, ETH, Ethereum, Fundamental Analysis, Ripple, Technical Analysis, trading, XRP

Forex Market Analysis

CAC 40 Advances in a 20-Year Triangle

Post author By Eduardo Vargas
Post date 16 August, 2020
No Comments on CAC 40 Advances in a 20-Year Triangle

Overview

The French index CAC 40 develops an incomplete triangle pattern that began in late August 2000. This year, CAC 40 underperforms 17.51% (YTD), recovering from the losses that dragged it to plunge until 3,632.1 pts, losing over 39.6%. The long-term outlook leads us to foresee a potential limited upside before to resume its drops corresponding to the incomplete bearish sequence in progress.

Market Sentiment Overview

The CAC 40 index, in its daily chart, unveils the advance mostly sideways since the price found resistance in the June’s high located at 5,213.7 pts. The current trading zone coincides with the mid-region of the 52-week high and low range, which leads us to observe that the market sentiment remains with a weak bullish sentiment. At the same time, we distinguish the French Index moving between the 60-day and 200-day moving average, which confirms the consolidation sequence that the French index remains in progress.

Nevertheless, considering that CAC 40 underperforms 17.51% (YTD), we observe that the Fresh index remains under bearish pressure, on the other the consolidation above the 4,871.7 pts., that corresponds to the 50% of the 52-week high and low range, the sideways formation could drive to CAC 40 to develop a limited upside before to resume a new decline.

Elliott Wave Outlook

The French stock market tracked by the CAC 40 index moves in a triangle pattern that began in late August 2000 when the market participants carried up the price until its record high at 6,944.8 pts. Once the price found resistance below the 7,000 pts, the French index started to move sideways, developing a triangle formation that remains incomplete.

The next figure illustrates to CAC 40, in its 2-week chart and log scale, under the Elliott wave perspective. The French index develops an incomplete triangle pattern (3-3-3-3-3), which moves in wave ((4)) of Primary degree identified in black.

The corrective structural series that remains in progress since the French index topped at 6,944.8 pts in late August 2020, currently develops its wave (E) of Intermediate degree identified in blue. Simultaneously, according to the Elliott wave theory, wave (E) must have three internal segments. In this context, from the figure, we distinguish that the price action completed the first bearish leg corresponding to wave A of Minor degree identified in green, which found a bottom at 3,632.1 pts on last March from where the price started to bounce, developing the wave B that remains in progress.

Currently, CAC 40 advances in its wave B of Minor degree labeled in green. Once completed this internal leg, the French index should resume its declines, with a possible support level located at 3,600 pts, even if it could extend until 2,957 pts.

Finally, once completed the long-term corrective sequence corresponding to wave ((4)), CAC 40 should start a new long-term rally corresponding to the fifth wave of Primary degree.

Tags 20-Year Triangle, CAC 40, Elliott Wave, Forex, Market Sentiment, Technical Analysis, trading

Forex Signals

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

Post author By Ali B.
Post date 14 August, 2020
No Comments on EUR/USD Choppy Trading Continues – An Update on Signal!

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

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

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

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

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

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

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

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

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

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

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

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

Tags EUR-USD, Forex, Fundamental Analysis, spread, Support, Support and Resistance, Technical Analysis

Forex Basic Strategies

Catch the Breakout with 34 EMA Trading Strategy!

Post author By Reddy Shyam Shankar
Post date 14 August, 2020
No Comments on Catch the Breakout with 34 EMA Trading Strategy!

Introduction

The exponential moving average (EMA) is a specialized chart indicator that tracks the value of an asset over time. It is a sort of weighted moving average (WMA) that provides more weighting or significance to ongoing valuable information. As like the simple moving average, the exponential moving average is utilized to see value patterns over time, and observing a few EMAs at one time is simple to do with moving normal rebinds.

What Is an Exponential Moving Average (EMA)?

An exponential moving normal (EMA) is a kind of moving average (MA) that puts a more noteworthy weight and sharpness on the latest information points. The exponential moving average is likewise alluded to as the exponentially weighted moving average. An exponentially weighted moving average responds more essentially to ongoing value changes than a straightforward moving average (SMA), which applies an equivalent weight to all observations in the period.

In the below image, you can see a naked chart of EURUSD

Now let’s plot the exponential moving average in the chart to see how it looks like

The Formula of Exponential Moving Average (EMA)

EMAToday =

(ValuetToday ∗ (Smoothing / 1+Days)) + EMAyesterday * (1 - (Smoothing / 1+Days))

Where: EMA = Exponential Moving Average

While there are numerous potential choices for the smoothing factor, the most widely recognised choice is 2

That gives the latest observation exceeding weight. In the event that the smoothing factor is expanded, later observations have more effect on the EMA.

Calculating the EMA

Calculating the EMA needs one more inspection than the SMA. Assume that you need to utilise 34 days as the number of inspections for the EMA. At that point, you should hold up until the 34th day to gain the SMA. On the 35th day, you would then be able to utilise the SMA from the earlier day as the first EMA for yesterday.

The calculation for the SMA is clear. It is essentially the entirety of the stock’s closing prices during a time span, divided by the number of inspections for that period. For instance, a 34-day SMA is only the entirety of the closing value for the previous 34 trading days, parted by 34.

34 EMA with Trendline Breakout Strategy

By combining the exponential moving average indicator with the price action context, the 34 EMA with trend line breakout forex trading strategy has established. In a decent trending market, this forex trading system is an entirely dependable trading strategy that can pull in plenty of pips effectively into your forex trading account.

To demonstrate it, simply proceed to do a little backtest on previous price history, and you will perceive what I’m discussing after you’ve learnt the trading methods and layouts which are additionally clarified underneath.

Timeframes

The 34 exponential moving average trading technique functions admirably in all timeframes from 5 minutes to weekly charts. The higher time frames can give better trading outcomes. However, it is best to stay on the 1 hour to daily chart as it can give high accuracy trades.

Currency Pair

There are no rules to utilise a currency pair. Still, it is good to utilize a forex pair that often remains in the range, for instance, EURUSD. However, all major and minor forex pairs are free to go with this trading technique.

Buy Entry

First, draw a downward trend line and look for an upward breakout.
If the breakout has happened, then the price must be residing above the 34 EMA.
After the downward trend breakout has happened, look at the highs of the bullish candlestick that form.
The signal candle is the candle with a high that is lower than the last candle’s high. So, if the signal candle’s high is broken, at that point, enter a buy trade immediately. On the other hand, you can put in a buy stop order only a couple of pips over the high of that signal candle so if the price breaks signal candle’s high, your order will be placed.
If your buy stop order isn’t executed and the candles keep on making lower highs, move your buy stop order to every lower high candle that structures until the price goes up and executes your trade.
It’s always better to place a stop loss below the downward trend line breakout candle.

Sell Entry

First, draw an upward trend line and look for a downward breakout.
If the breakout has happened, then the price must be residing below the 34 EMA.
After the upward trend breakout has happened, look at the lows of the bearish candlestick that form.
The signal candle is the candle with a low that is higher than the last candle’s low. So, if the signal candle’s low is broken, at that point, enter a sell trade immediately. On the other hand, you can put in a sell stop order only a couple of pips over the low of that signal candle so if the price breaks signal candle’s low, your order will be placed.
If your sell stop order isn’t executed and the candles keep on making higher lows, move your sell stop order to every higher low candle that structures until the price goes down and executes your trade.
It’s always better to place a stop loss above the upward trend line breakout candle.

Limitations of the EMA

It is hazy whether or more emphasis ought to be put on the latest days in the timeframe. Numerous traders accept that new information better mirrors the current pattern of the asset. Simultaneously, others feel that overweighting current dates makes a preference that prompts to more bogus alarms.

Correspondingly, the EMA depends completely on authentic information. Numerous economists suspect that business sectors are proficient, which implies that current market value meanwhile mirrors all accessible data. If the markets are actually proficient, utilising authentic information should disclose to us nothing about the upcoming movement of security prices.

Summary

Let’s summarise the 34 exponential moving average with trendline breakout trading strategy:

You should look for an impulsive trendline breakout.
After the trendline breakout has happened, the price must be above or below the 34 EMA (depending on buy and sell entry).
It’s always better to put the stop loss below or above the trendline breakout candle.
Better money management can give you a better risk/reward ratio.

Moreover, you need to practice this trading strategy until your win ratio reaches above 60 per cent, and you must have to control your emotion and psychology for better outcomes.

Tags 34 EMA, Basic Strategies, Breakout, Education, ema, Exponential Moving Average, Forex, Forex Trading, Technical Analysis, Technical Trading

Forex Market Analysis

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

Post author By Ali B.
Post date 14 August, 2020
1 Comment on Daily F.X. Analysis, August 14 – Top Trade Setups In Forex – Eyes U.S. Retail Sales!

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

Economic Events to Watch Today

EUR/USD – Daily Analysis

The EUR/USD currency pair succeeded to extended its previous session bullish rally and hit the fresh intra-day highs towards 1.1800 level. However, the reason for the gains in currency pair could also be attributed to the broad-based U.S. dollar bearish bias, backed by fears that U.S. economic recovery from COVID-19 continuing to diminish. The on-going U.S. Congress’ failure to reach an agreement for the country’s latest COVID-19 stimulus package also added a burden to the greenback and contributed to the currency pair gains.

On the contrary, the growing cases of coronavirus in Germany became the key factor that kept the lid on any additional gains in the currency pair. At the moment, the EUR/USD currency pair is currently trading at 1.1831 and consolidating in the range between 1.1781 – 1.1838.

The on-going uncertainty surrounding the much-awaited U.S. fiscal stimulus or the second wave of coronavirus (COVID-19), not to forget the latest tension between America and China over TikTok, weighed on the broad-based U.S. dollar and contributed to the currency pair gains. It should be noted that the Democrats and Republicans are still struggling to approve an additional stimulus package as authorities hinted that additional stimulus is needed to control the negative impact of the recent wave of the coronavirus.

At the coronavirus front, the number of reported coronavirus cases increased to 219,964, with a total of 9,211 deaths tolls, as per the German disease and epidemic control center, Robert Koch Institute (RKI), on Thursday. Meanwhile, the Cases rose by 1,445 in Germany on Thursday against Wednesday’s +1,226. Whereas the death toll increased by 4, the tally showed. Despite this, the shared currency did not give any major attention to it and remains unperturbed by the renewed virus concerns.

The market players will keep their eyes on the Retail Sales m/m, Core Retail Sales m/m, and Prelim UoM Consumer Sentiment, which is scheduled to be released during the New York session.

Daily Technical Levels

Support	Pivot	Resistance
1.1773	1.1819	1.1857
1.1735		1.1903
1.1689		1.1942

EUR/USD– Trading Tip

GBP/USD – Daily Analysis

The GBP/USD currency pair succeeded in stopping its previous-day losing streak and rose closer to 1.3100 level, mainly due to the broad-based U.S. dollar weakness. That was triggered by the coronavirus crisis in the U.S., which continued to fuel worries that the second wave of COVID-19 cases could undermine the U.S. economy.

The repeated inability over the much-awaited stimulus also adds pressure on the U.S. dollar and further pushed the currency pair. On the other hand, the fresh optimism over the UK-US relations also added strength around the Pound currency and contributed to the currency pair gains. On the other hand, the on-going pessimism of coronavirus (COVID-19) second wave in the U.K., and the UK-Japan lingering trade talks became the major factors that kept the lid on any further gains in the currency pair. Currently, the GBP/USD currency pair is currently trading at 1.3084 and consolidating in the range between 1.3031 – 1.3093.

The U.K. Trade Secretary Liz Truss declared that she is very satisfied as the United States has not implemented additional tariffs, which gave some support to the local currency and extended further upside momentum in the pair.

The U.K. formally started to face recession the previous day, with over 20% of GDP drop across the pond. In turn, the British business leaders and trade unions urged the extension of furlough scheme beyond October expiry; Chancellor Rishi Sunak sees promising signs off-late.

At the Brexit front, the Brexit jitters remain on the card as the fisheries and level-playing field being the tardiest obstacle. However, the policymakers from both sides are set to resume the sixth round in the next week. Apart from this, the U.S. criticized the European Union (E.U.) due to its lack of action regarding the airbus case. Elsewhere, the U.S. added some French and German goods to the tariff list while removing a few from the U.K. and Greece.

On the other hand, the rising COVID-19 cases, especially in the U.S., Australia, Japan, and some of the notable Asian nations like India, fueled concerns that the economic recovery could halt once again, which ultimately drags the broad-based U.S. dollar under pressure. The on-going uncertainty surrounding the much-awaited U.S. fiscal stimulus and the latest tension between America and China over TikTok also weighed on the broad-based U.S. dollar and contributed to the currency pair gains.

As a result, the broad-based U.S. dollar reporting losses on the day amid the failure of the U.S. stimulus package, as well as the United States still facing virus woes, ultimately crushed hopes for a quick economic recovery. Nevertheless, the losses in the U.S. dollar helped the currency pair to stay higher.

Daily Technical Levels

Support	Pivot	Resistance
1.3021	1.3073	1.3116
1.2977		1.3169
1.2925		1.3212

GBP/USD– Trading Tip

The GBP/USD consolidates at 1.3070 level, holding right above the 50 periods EMA support area of 1.3040 level while the bearish breakout of 1.3040 level can extend selling unto 1.2918 level. Recently as we can see in the chart above that the GBPUSD pair has violated its upward trendline that supported the pair around 1.3130 level, and now below this, we can expect GBP/USD to continue trading bearish. The GBP/USD should show a bearish crossover to confirm a strong selling bias in the Cable. On the higher side, Sterling may find resistance at 1.3105 and 1.3175. Let’s consider selling below 1.3045 level today.

USD/JPY – Daily Analysis

The USD/JPY currency pair failed to extend its previous 4-day bullish bias and dropped just above the mid-106.00 level, mainly due to the broad-based U.S. dollar weakness triggered by the worries that the second wave of COVID-19 cases in the United States could ruin the recovery in the world’s biggest economy. The on-going doubts over the U.S. Stimulus Package also weighed on the American currency and contributed to the pair losses. On the other hand, the concerns about intensifying US-China relations and U.S. Trade Representative Robert Lighthizer’s verbal attack on Europe extended some additional support to the safe-haven Japanese yen, which exerted an additional burden on the currency pair. Apart from this, the upbeat performance of Japanese PPI also underpinned the Japanese yen and pushed currency pair further lower. At this particular time, the USD/JPY currency pair is currently trading at 106.91 and consolidating between 106.57 – 106.94.

Despite the reduction in coronavirus cases, the fears about the U.S. economic recovery still hover all over the market and keep the U.S. dollar bulls defensive. As per the latest report, the figures have crossed almost 5.2 million cases in the U.S. alone as of August 13, as per the Johns Hopkins University and millions unemployed.

Meanwhile, the risk-off market sentiment was further bolstered by the long-lasting disappointment over the lack of progress in the much-awaited fiscal package. U.S. President Donald Trump accused Democrats that they are not willing to negotiate over the package.

As in result, the broad-based U.S. dollar failed to gain any positive traction on the day and reported losses as the United States crisis of virus could break hopes for a quick economic recovery, which kept the investors careful. However, the losses in the U.S. dollar kept the currency pair bearish.

Also weighing on the market trading sentiment could be the U.S. Central Command’s statement suggesting the Iranian Navy overtaking a ship called “Wila.” Besides, the U.S. Trade Representative Robert Lighthizer’s verbal attack on Europe also adds a burden to the market trading sentiment.

Across the Pound, the losses in the currency pair could also be associated with Japanese PPI’s upbeat performance, which eventually underpinned Japanese yen and contributed to the currency pair declines. At the data front, Japan’s July month Producer Price Index (PPI) grew past-0.3% forecast on MoM to 0.6%. Further, the yearly figures slipped less than -1.1% expected level to -0.9%.

Daily Technical Levels

Support	Pivot	Resistance
106.6400	106.8500	107.1400
106.3500		107.3500
106.1400		107.6400

USD/JPY – Trading Tips

The USD/JPY trades sideways over resistance become a support level of 106.628 level. Above this, the USD/JPY pair is opening further room for buying until 107.450 level. The RSI and MACD are also supporting bullish bias in the pair. A recent bullish breakout of 106.450 level can extend the buying trend until 107.390. The current market price of USDJPY is staying over 50 EMA, which extends support at 105.950 and may push the pair higher. Let’s consider buying above 106.480 level today. Good luck!

Tags Daily Brief, EUR-USD, Forex, Fundamental Analysis, GBP-USD, GBPUSD, Support and Resistance, Technical Analysis, Technical Outlook, Trade Setup, trading, USD-JPY

Crypto Market Analysis

Daily Crypto Review, August 14 – ETH Price Skyrocketing; BitMEX Implementing KYC Procedures

Post author By Ilija Rankovic
Post date 14 August, 2020
1 Comment on Daily Crypto Review, August 14 – ETH Price Skyrocketing; BitMEX Implementing KYC Procedures

The cryptocurrency market had mad a slight rally in the past 24 hours, with Ethereum leading the way with a price gain of almost 8%. Bitcoin is currently trading for $11,723, which represents an increase of 1.33% on the day. Meanwhile, Ethereum gained 7.61% on the day, while XRP gained 4.96%.

Daily Crypto Sector Heat Map

When talking about top100 cryptocurrencies, Waves gained 36.29% on the day, making it the most prominent daily gainer. Algorand (34.02%) and Reserve Rights (25.27%) also did great. On the other hand, Ampleforth lost 14.74%, making it the most prominent daily loser. It is followed by Aragon’s loss of 12.46% and yearn.finance’s drop of 11.04%.

Top 10 24-hour Performers (Click to enlarge)

Bottom 10 24-hour Performers (Click to enlarge)

Bitcoin’s dominance level has decreased slightly since we last reported, with its value currently at 60.08%. This value represents a 0.76% difference to the downside when compared to yesterday’s value.

Daily Crypto Market Cap Chart

The cryptocurrency market cap experienced an increase in value since we last reported. Its current value is $368.07 billion, which represents an increase of $9.15 billion when compared to yesterday’s value.

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What happened in the past 24 hours?

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Technical analysis

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Bitcoin

Bitcoin spent the day trying to get back near $12,000 after a day of consolidation. Its price made a sharp move towards the upside and broke the $11,630 resistance level, but stopped at $11,850 and then started to retrace. This retracement is most likely a test of the newly-passed resistance (now support). If Bitcoin’s price holds up above it, there is a good chance that we can see another move towards the $12,000 mark in the near term.

BTC traders should look for an opportunity when BTC spikes after the confirmation of its position.

BTC/USD 4-hour Chart

Technical factors:

Price is currently above its 50-period EMA and its 21-period EMA
Price is above its middle B.B
RSI is neutral (54.81)
Volume is decreasing

Key levels to the upside Key levels to the downside

1: $12,000 1: $11,630

2: $12,300 2: $11,460

3: $11,090

Ethereum

Ethereum is the star of the day, as its price has skyrocketed over the course of the last 24 hours. The second-largest cryptocurrency by market cap saw a massive increase in volume while its price went from below-$400 levels all the way up to $432. Ethereum is now consolidating at around $420 and trying to test the $415 support level.

Traders should look for a trade when Ethereum confirms its position above $415 (or fails to do so).

ETH/USD 4-hour Chart

Technical Factors:

Price is above its 21-period and its 50-period EMA
Price is above its top B.B.
RSI is overbought (71.94)
Volume is average (one-candle spike)

Key levels to the upside Key levels to the downside

1: $415 1: $$400

2: $496 2: $361

3: $340

Ripple

XRP had a great day and outperformed Bitcoin as well. The third-largest cryptocurrency by market cap ended up gaining almost 5% on the day after breaking above the $0.285 resistance level. As we noted in our previous report, breaking this level is key to pushing further towards the upside, and XRP’s future moves towards $0.31 are a bit more realistic now. However, for the time being, the current progress got stopped by the top B.B. at $0.3, and XRP started consolidating and (possibly) testing $0.285 as support.

Traders can look for an opportunity right after XRP increases in volume and heads towards $0.31.

XRP/USD 4-hour Chart

Technical factors:

Price is above the 21-period and 50-period EMA
Price is between its middle and top B.B.
RSI is neutral (57.75)
Low volume

Key levels to the upside Key levels to the downside

1: $0.31 1: $0.285

2: $0.32 2: $0.266

3: $0.245

Tags bitcoin, BTC, Crypto, Crypto Trading, cryptocurrency, Daily Brief, ETH, Ethereum, Fundamental Analysis, Ripple, Technical Analysis, trading, XRP

Forex Signals

USD/CAD Violates Descending Triangle Pattern – An Update on Signal!

Post author By Ali B.
Post date 13 August, 2020
No Comments on USD/CAD Violates Descending Triangle Pattern – An Update on Signal!

During Thursday’s European trading session, the USD/CAD currency pair failed to stop its Asian session from losing streak and dropped further below the mid-1.3200 level, mainly due to the U.S. dollar weakness triggered by gloomy U.S. economic outlook and lingering uncertainty over the U.S. stimulus package.

On the other hand, the weaker oil prices due to the OPEC bearish fuel demand prediction, and US-China on-going war, undermined the commodity-linked currency the loonie which helped the currency pair to limit its deeper losses. Currently, the USD/CAD currency pair is currently trading at 1.3215 and consolidating in the range between 1.3209 – 1.3257.

Considering the on-going condition between the US-China, China’s Assistant Commerce Minister said he hopes the U.S. will create conditions for the implementation of the phase-1 trade deal. He further added that the COVID-19 and U.S. export control measures hurt Chinese purchases on U.S. goods and services. However, traders gave little attention to the above statement.

On the other hand, the on-going deadlock over additional stimulus measures to support the economic recovery from the coronavirus pandemic also weighed on the market risk sentiment.

This, in turn, the broad-based U.S. dollar failed to gain bullish momentum and reported losses on the day as the United States was still fighting the coronavirus. However, the weakness in the U.S. dollar kept the pair under pressure.

At the crude oil front, the WTI crude oil prices remain depressive around $42 levels as fears about the lower oil demand fueled after the OPEC said in its monthly report that the fuel demand will likely fall more than expected. This statement initially overshadowed the U.S. government data, which showed a decline in inventories and suggested that demand is recovering despite the coronavirus pandemic. However, the losses in the crude oil undermined the commodity-linked currency the loonie, which helped limit the pair’s deeper losses.

Looking forward, the market players will closely follow the release of the U.S. Initial Weekly Jobless Claims, which will affect the USD price dynamics and produce some meaningful direction for the currency pair. In the meantime, the traders will also keep their eyes on the news concerning the U.S./China.

Technically, the USD/CAD has formed a descending triangle pattern that provided support at 1.3235 level, and it has now been violated. The USDCAD pair has violated the double bottom support area of 1.3235 level. Closing of candles below this level confirms a breakout; therefore, the odds of further selling below the 1.3235 level increase, and it can lead to USD/CAD prices until 1.3160. A slight bullish retracement could be seen until 1.3235 level before the pair continues trading lower. Check out the trade plan…

Entry Price – Sell 1.32282
Stop Loss – 1.32682
Take Profit – 1.31882
Risk to Reward – 1:1
Profit & Loss Per Standard Lot = -$400/ +$400
Profit & Loss Per Micro Lot = -$40/ +$40

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Tags Forex Trading Signal, Fundamental Analysis, Support and Resistance, Technical Analysis, Technical Outlook, USD/CAD

Forex Signals

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

Post author By Ali B.
Post date 13 August, 2020
No Comments on Gold Signal Hits Stop Loss – What’s Next to Expect?

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

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

Meanwhile, the upbeat market performance could also be associated with the reports that President and CEO of the Federal Reserve Bank of Dallas Robert Steven Kaplan keep pushing the government for further unemployment benefits while refraining from imposing any lockdowns retractions. At the coronavirus front, the COVID-19 cases remain on the card and continue to affect the U.S. economic recovery. As per the latest report, the figures have crossed almost 5.2 million cases in the U.S. alone as of August 13, as per the Johns Hopkins University and millions unemployed.

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

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

Tags Forex Trading, Fundamental Analysis, Gold, Technical Analysis, Trading Signal, XAU/USD