Tag: Technical Outlook

Categories
Forex Signals

USD/CHF Continues to Drip Amid Weaker Dollar – Quick Update on Signal

During Friday’s European trading hours, the USD/JPY currency pair failed to stop its previous session bearish moves and took further offers below mid- the 0.9000 level. However, the reason for the bearish tone around the currency pair could be associated with the broad-based U.S. dollar weakness, triggered by the risk-on market mood, which tends to undermine the safe-haven U.S. dollar. Hence, the upbeat market sentiment, supported by optimism over a potential vaccine/treatment for the highly infectious coronavirus.

During Friday’s European trading hours, the USD/JPY currency pair failed to stop its previous session bearish moves and took further offers below mid- the 0.9000 level. However, the reason for the bearish tone around the currency pair could be associated with the broad-based U.S. dollar weakness, triggered by the risk-on market mood, which tends to undermine the safe-haven U.S. dollar. Hence, the upbeat market sentiment, supported by optimism over a potential vaccine/treatment for the highly infectious coronavirus.

During Friday’s European trading hours, the USD/JPY currency pair failed to stop its previous session bearish moves and took further offers below mid- the 0.9000 level. However, the reason for the bearish tone around the currency pair could be associated with the broad-based U.S. dollar weakness, triggered by the risk-on market mood, which tends to undermine the safe-haven U.S. dollar. Hence, the upbeat market sentiment, supported by optimism over a potential vaccine/treatment for the highly infectious coronavirus.

On the contrary, the positive tone around the equity market also weakened the safe-haven Swiss franc and became the factor that cap further downside momentum for the USD/CHF currency pair. Currently, the USD/CHF currency pair is currently trading at 0.90430.9043 and consolidating in the range between 0.9040 – 0.9095.

While discussing the positive side of the story, the renewed optimism over a possible vaccine for the highly infectious coronavirus disease boosted the market risk tone. However, the hopes of the vaccine were boosted after Gilead Sciences received US FDA approval for its antiviral therapy to treat the highly contagious coronavirus disease. Elsewhere, the reasons for the risk-on market trading sentiment could also be attributed to rising expectations of further U.S. stimulus package. These hopes were fueled after the positive remarks of President Donald Trump and House of Representatives Speaker Nancy Pelosi, which eventually raised hopes for the measures to be passed before the election. Thus, the risk-on market mood tends to undermine the safe-haven Swiss franc, which becomes the key factor that lends some support to the currency pair to ease the intraday bearish pressure surrounding the USD/CHF pair.

As a result of the upbeat market sentiment, the broad-based U.S. dollar failed to gain any positive traction on the day. Apart from this, the U.S. dollar losses could also be associated with the increasing expectations of a strong Democratic victory in the U.S. elections, which tend to undermine the greenback. However, the U.S. dollar losses became the key factor that kept the currency pair under pressure. Simultaneously, the U.S. Dollar Index that tracks the greenback against a basket of other currencies dropped to 92.757.

Across the ocean, the equity market’s optimism was rather unaffected by the intensified US-China tussle and Brexit concerns. At the US-China front, the U.S. Secretary of State Michael Pompeo designated 6-more Chinese publications as “foreign missions”, or media outlets controlled by Beijing, at a Wednesday briefing. These headlines have little to no impact on the CHF markets.

Looking forward, the market traders will keep their eyes on the USD moves amid the lack of major data/events on the day. However, the final presidential debate between President Donald Trump and his Democratic rival Joe Biden. will be key to watch. Furthermore, the risk catalyst like geopolitics and the virus woes, not to forget the Brexit, could not lose their importance.


Daily Support and Resistance

S1 0.9016
S2 0.9042
S3 0.9058
Pivot Point 0.9069
R1 0.9085
R2 0.9096
R3 0.9123

Entry Price – Sell 0.90606
Stop Loss – 0.91006
Take Profit – 0.90206
Risk to Reward – 1:1
Profit & Loss Per Standard Lot = -$400/ +$400
Profit & Loss Per Micro Lot = -$40/ +$40
Fellas, now you can check out forex trading signals via Forex Academy mobile app. Follow the links below.
iPhone Users: https://apps.apple.com/es/app/fasignals/id1521281368
Andriod Users: https://play.google.com/store/apps/details?id=academy.forex.thesignal&hl=en_US

Categories
Forex Signals

USD/JPY Violates Bearish Flag – Buckle up for a Sell Signal! 

The USD/JPY pair is trading sharply bearish after violating the bearish flag at the 104.680 level. Below this level, we may have more selling trade opportunities. The USD/JPY pair traded with a positive note during the whole Thursday session after a goodish pickup in the U.S. dollar demand. The rebounded U.S. dollar helped currency pair USD/JPY to gain positive traction and move away from the six-week lowest level it touched on Wednesday.

The USD/JPY pair is trading sharply bearish after violating the bearish flag at the 104.680 level. Below this level, we may have more selling trade opportunities. The USD/JPY pair traded with a positive note during the whole Thursday session after a goodish pickup in the U.S. dollar demand. The rebounded U.S. dollar helped currency pair USD/JPY to gain positive traction and move away from the six-week lowest level it touched on Wednesday.

The USD/JPY pair is trading sharply bearish after violating the bearish flag at the 104.680 level. Below this level, we may have more selling trade opportunities. The USD/JPY pair traded with a positive note during the whole Thursday session after a goodish pickup in the U.S. dollar demand. The rebounded U.S. dollar helped currency pair USD/JPY to gain positive traction and move away from the six-week lowest level it touched on Wednesday.

The slow progress in the U.S. stimulus measure package attracted some buying in the greenback that dampened the hopes that financial aid will be delivered before elections. The statement by House of Representatives Speaker Nancy Pelosi that soon there will be pen to paper on the stimulus bill failed to impress investors, and the USD/JPY pair continued moving in the upward direction.

Pelosi even said that the stimulus package could be passed in the House before election day, but investors were somewhat unconvinced that the bill could pass through the Senate due to the strong opposition from Republicans over a bigger stimulus deal. This, in turn, weighed on risk sentiment and supported the Japanese Yen that ultimately capped further upside in the USD/JPY pair prices.

Apart from developments surrounding the U.S. fiscal stimulus, the USD bulls further took clues from the better than expected release of the U.S. initial jobless claims. The number of Americans filed for unemployment benefits declined to 787K during the previous week for the first time against the projected 860K and supported the U.S. dollar. The decline in unemployment claims means less need for a U.S. stimulus package and more strength for the U.S. dollar and USD/JPY pair.

On the data front, the C.B. Leading Index from the U.S. dropped to 0.7% against the expected 0.8% and weighed on the U.S. dollar. The Existing Home Sales advanced to 6.54M in comparison to projected 6.20M and supported the U.S. dollar. Another favorable economic data release gave strength to the U.S. dollar that pushed the USD/JPY pair even higher on grounds. Meanwhile, the rising number of coronavirus cases across the globe and fears for economic recovery due to lockdowns imposed to curb the spread of the virus raised the safe-haven appeal, supported the Japanese Yen, and weighed on the USD/JPY pair to limit its bullish move on Thursday.


The USD/JPY traded dramatically bearish to drop from 105.460 level to 104.349 level. Like other pairs, the USD/JPY has also entered the oversold zone, and now sellers seem to be exhausted. On the higher side, the USD/JPY pair has reversed some of the losses to trade at the 104.700 level. On the higher side, the pair may go after the 38.2% Fibonacci retracement level of 104.900 and 50% Fibo level of 105. Let’s consider taking a buying trade over 104.350 area today. 

Entry Price – Buy 104.593

Stop Loss – 104.993

Take Profit – 104.093

Risk to Reward – 1:1

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

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

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

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

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

Categories
Forex Market Analysis

Daily F.X. Analysis, October 23 – Top Trade Setups In Forex – European PMI In Highlights! 

The economic calendar is filled with medium impact economic events such as Unemployment Claims, C.B. Leading Index m/m, and Existing Home Sales from the United States on the news front. Besides, the Consumer Confidence from the Eurozone will also remain in the highlights today. The market may show some price action during the U.S. session on the release of U.S. Jobless Claims. 

The economic calendar is filled with medium impact economic events such as Unemployment Claims, C.B. Leading Index m/m, and Existing Home Sales from the United States on the news front. Besides, the Consumer Confidence from the Eurozone will also remain in the highlights today. The market may show some price action during the U.S. session on the release of U.S. Jobless Claims. 

The economic calendar is filled with medium impact economic events such as Unemployment Claims, C.B. Leading Index m/m, and Existing Home Sales from the United States on the news front. Besides, the Consumer Confidence from the Eurozone will also remain in the highlights today. The market may show some price action during the U.S. session on the release of U.S. Jobless Claims. 

Economic Events to Watch Today  

 

EUR/USD – Daily Analysis

The EUR/USD closed at 1.18184 after placing a high of 1.18666 and a low of 1.18111. The EUR/USD pair was down and remained bearish on that day. As the market sentiment deteriorated and the U.S. dollar moved stronger across the board, the EUR/USD pair dropped on a session by 0.3% and remained one of the worst G10 performers on Thursday.

The common currency put an end to a four-day rally on Thursday as the hopes of the next round of U.S. stimulus deal faded away. 

The U.S. President Donald Trump crushed the risk appetite on Thursday after blaming Democrats for not compromising an acceptable agreement. This raised the U.S. dollar on board from its seven-week lowest level. The hopes for the next round of U.S. stimulus package were faded after Trump blamed Democrats that they were unwilling to compromise on the relief aid bill’s size. However, the talks were continuing, and it is uncertain whether a stimulus package is delivered before the Presidential elections or not.

The faded hopes dampened the risk sentiment and added strength to the U.S. dollar that ultimately added weight on the EUR/USD pair on Thursday. Furthermore, the rising number of coronavirus cases in Europe also weighed on the EUR/USD pair. In Europe, the daily number of infections reached record levels, with Spain becoming the first western country to report one million cases. These rising numbers of coronavirus cases from Europe also undermined the Euro currency’s confidence, ultimately added to the losses of the  EUR/USD pair.

On the data front, at 11:00 GMT, the German GfK Consumer Climate came in as -3.1 against the forecasted -2.9 and weighed on Euro currency that added in the losses of EUR/USD pair. At 18:52 GMT, the Consumer Confidence from Europe was also declined to -16 from the projected -15 and weighed on the single currency and added in the losses of EUR/USD pair. From the U.S. side, the Unemployment Claims from last week were dropped to 787K against the projected 860K and supported the U.S. dollar. At 19:00 GMT, the Existing Home Sales also raised to 6.54M against the forecasted 6.20M and supported the U.S. dollar that ultimately weighed on EUR/USD pair.

Apart from macroeconomic data, the European Central bank has also hinted that the Eurozone’s economy was in for a bumpy road ahead. The President of ECB Christine Lagarde also warned about the effects of the second wave of coronavirus on the economy. So, the weak outlook of the Eurozone economy also weighed on EUR/USD pair.

Daily Technical Levels

Support    Resistance

1.1828     1.1889

1.1795     1.1915

1.1768     1.1949

Pivot Point: 1.1855

EUR/USD– Trading Tip

The bullish bias of the EUR/USD has weakened as the pair fell from the 1.1880 level to a 50% Fibonacci retracement level of 1.1805 level. This level’s violation may trigger further selling until the 1.1769 area that marks 61.8% Fibonacci retracement for the EUR/USD. The EUR/USD is likely to exhibit further selling bias today, especially after violating the 1.1770 level to 1.1740 level. The MACD and RSI are also supporting the bearish bias; therefore, bearish bias remains dominant today. The EUR/USD may face resistance around 1.1837 and 1.1880 level today.

GBP/USD – Daily Analysis

The GBP/USD closed at 1.30822 after placing a high of 1.31517 and a low of 1.30704. Overall the GBP/USD pair remained on the downside all through the day. The GBP/USD pair gave up some ground and remained bearish on Thursday amid the broad-based U.S. dollar come back. However, the GBP/USD pair managed to stay in the upper half of its weekly range.

The British Pound fell on Thursday, although the talks between the E.U. & U.K. resumed on the day. The reason could be attributed to the brinkmanship from Britain amid negotiations, risk an accidental no-deal Brexit. On Thursday, the top E.U. Brexit negotiator Michael Barnier arrived in London to intensify talks with his British counterpart David Frost to break the impasse and find a solution to key sticking points, fisheries, and state aid.

The fisheries have long been a debating point in the Brexit negotiations as the U.K. has been determined to control access to its waters after the transition period ends. U.K. has refused to stick with the E.U.’s common fisheries policy that set fishing quotas among the E.U. member states. The transition period has come near to end with just months to go, and the U.K. has refused to allow talks to run past the year-end deadline. According to a spokesman for UK PM Boris Johnson, the time has remained very short as the U.K. has been reportedly clear that any agreement should be placed before the end of the transition period.

The concerns have raised in the market that the U.K.’s strategy to be somewhat tough on talks and deadlines could risk an accidental no-deal Brexit as the end of the year is coming ahead. These concerns weighed on the Sterling and added the GBP/USD pair’s losses on Thursday.

On the data front, the CBI Industrial Order Expectations from the U.K. came in as -34 against the forecasted -50 and supported British Pound. 

However, from the U.S. side, the Unemployment Claims from the previous week declined to 787K against the forecasted 860K and supported the U.S. dollar. The Existing Home Sales also supported the U.S. dollar after rising to 6.54M from the anticipated 6.20M. The positive data from the U.S. exerted pressure on GBP/USD pair on Thursday. Meanwhile, the Bank of England Governor Andrew Bailey told of strong demand to invest in climate change technology. He also sketched a strong demand for green investment. Looking forward, market participants will await the release of PMI for services and manufacturing activities to find a fresh clue about GBP/USD pair.

Daily Technical Levels

Support    Resistance

1.3049     1.3129

1.3021     1.3179

1.2970     1.3208

Pivot point: 1.3100

GBP/USD– Trading Tip

The GBP/USD traded bearishly below the 1.3165 resistance area to trade at the 1.3070 level that marks the 38.2% Fibonacci retracement level for the Sterling. On the further downside, the GBP/USD pair may take another dip until the 61.8% Fibo level of 1.3018 as the MACD is still pointing towards the selling area. At the moment, Sterling’s immediate resistance holds at the 1.3070 mark; however, the closings below this level is supporting the selling bias. Consider opening sell trades below the 1.3100 level today. 

USD/JPY – Daily Analysis

The USD/JPY pair was closed at 104.884 after placing a high of 104.921 and a low of 104.474. The movement of the USD/JPY currency pair stayed bullish throughout the day. The USD/JPY pair traded with a positive note during the whole Thursday session after a goodish pickup in the U.S. dollar demand. The rebounded U.S. dollar helped currency pair USD/JPY to gain positive traction and move away from the six-week lowest level it touched on Wednesday.

The slow progress in the U.S. stimulus measure package attracted some buying in the greenback that dampened the hopes that financial aid will be delivered before elections. The statement by House of Representatives Speaker Nancy Pelosi that soon there will be pen to paper on the stimulus bill failed to impress investors, and the USD/JPY pair continued moving in the upward direction.

Pelosi even said that the stimulus package could be passed in the House before election day. Still, investors were somewhat unconvinced that the bill could pass through the Senate due to the strong opposition from Republicans over a bigger stimulus deal. This, in turn, weighed on risk sentiment and supported the Japanese Yen that ultimately capped further upside in the USD/JPY pair prices.

Apart from developments surrounding the U.S. fiscal stimulus, the USD bulls further took clues from the better than expected release of the U.S. initial jobless claims. The number of Americans filed for unemployment benefits declined to 787K during the previous week for the first time against the projected 860K and supported the U.S. dollar. The decline in unemployment claims means less need for a U.S. stimulus package and more strength for the U.S. dollar and USD/JPY pair.

On the data front, the C.B. Leading Index from the U.S. dropped to 0.7% against the expected 0.8% and weighed on the U.S. dollar. The Existing Home Sales advanced to 6.54M in comparison to projected 6.20M and supported the U.S. dollar. Another favorable economic data release gave strength to the U.S. dollar that pushed the USD/JPY pair even higher on grounds.

Meanwhile, the rising number of coronavirus cases across the globe and fears for economic recovery due to lockdowns imposed to curb the spread of the virus raised the safe-haven appeal, supported the Japanese Yen, and weighed on the USD/JPY pair to limit its bullish move on Thursday.

On Thursday, the U.S. Dollar Index measures the greenback against the six currencies’ basket surge by 0.4% to 92.97. The U.S. dollar index fell to its seven-week lowest level at 92.46 on Wednesday but recovered from there on the next day amid a strong U.S. dollar despite the talks for stimulus package continued. However, traders’ focus will now be shifted towards the final presidential debate between President US Donald Trump and his Democratic rival Joe Biden.

Daily Technical Levels

Support    Resistance

104.18     105.35

103.68     106.00

103.02     106.51

Pivot point: 104.84

USD/JPY – Trading Tips

The USD/JPY traded dramatically bearish to drop from 105.460 level to 104.349 level. Like other pairs, the USD/JPY has also entered the oversold zone, and now sellers seem to be exhausted. On the higher side, the USD/JPY pair has reversed some of the losses to trade at the 104.700 level. On the higher side, the pair may go after the 38.2% Fibonacci retracement level of 104.900 and 50% Fibo level of 105. Let’s consider taking a buying trade over 104.350 area today. Good luck! 

Categories
Forex Signals

USD/CAD Slips Below Downward Trendline – Brace for a Sell Signal! 

The USD/CAD pair was closed at 1.31447 after placing a high of 1.31519 and a low of 1.30808. Overall the movement of the USD/CAD pair remained bullish throughout the day. In the early trading session on Wednesday, the USD/CAD pair followed its Tuesday’s move and dropped to its lowest since 7th September over the US dollar’s weakness. The decline in crude oil prices also played a role in raising the USD/CAD pair on board. The negative macroeconomic data from Canada also added strength to the USD/CAD pair gains on Wednesday.

The USD/CAD pair was closed at 1.31447 after placing a high of 1.31519 and a low of 1.30808. Overall the movement of the USD/CAD pair remained bullish throughout the day. In the early trading session on Wednesday, the USD/CAD pair followed its Tuesday’s move and dropped to its lowest since 7th September over the US dollar’s weakness. The decline in crude oil prices also played a role in raising the USD/CAD pair on board. The negative macroeconomic data from Canada also added strength to the USD/CAD pair gains on Wednesday.

The USD/CAD pair was closed at 1.31447 after placing a high of 1.31519 and a low of 1.30808. Overall the movement of the USD/CAD pair remained bullish throughout the day. In the early trading session on Wednesday, the USD/CAD pair followed its Tuesday’s move and dropped to its lowest since 7th September over the US dollar’s weakness. The decline in crude oil prices also played a role in raising the USD/CAD pair on board. The negative macroeconomic data from Canada also added strength to the USD/CAD pair gains on Wednesday.

On the data front, the Consumer Price Index from Canada was released at 17:30 GMT for September, which came in line with -0.1%. The Core Retail Sales from Canada for September declined to 0.5% from the projected 0.9%. For September, the Retail Sales dropped to 0.4% against the expected 1.0% and weighed on the Canadian dollar. Dollarmmon and Median CPI from Canada came in line with the expectations of 1.5% and 1.9%, respectively.

 Whereas the NHPI for September raised to 1.9% from the forecasted 1.2%. The Core CPI for September also remained the same as the year at 0.1%. However, the Trimmed CPI for the year raised to 1.8% against the forecasted 1.7%. The highlighted CPI, Retail Sales, and Core Retails Sales data came in negative or as expected and weighed on the Canadian Dollar tDollartimately pushed higher the USD/CAD prices on Wednesday.

Meanwhile, the Crude Oil Inventories from the previous week dropped to -1.0M against the forecasted 0.5M and raised the demand for crude oil that ultimately supported the declining WTI crude oil prices on Wednesday.

Crude oil prices suffered on Wednesday though most of its losses recovered still, it closed its day weak, which made its commodity-linked currencies Loonie weaker and supported the rising USD/CAD pair.


Daily technical Levels

Support Resistance

1.3103 1.3184

1.3051 1.3213

1.3023 1.3265

Pivot point: 1.3132

The USD/CAD is facing immediate resistance at the 1.3171 level, and closing of candles below this level is likely to drive selling bias in the market. The USD/CAD has recently closed a Doji candle below 1.3172, which is suggesting that the bullish bias seems to be over, and sellers may enter the market soon. As we can see on the chart, the USD/CAD’s very next candle is bearish engulfing, followed by a doji candle, support strong selling bias for the pair. Therefore, we have opened a sell signal, and we aim for quick 40 pips. Check out a trading plan below.

Entry Price – Buy 0.71124

Stop Loss – 0.70724

Take Profit – 0.71524

Risk to Reward – 1:1

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

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

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

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

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

 

Categories
Forex Signals

AUD/USD Set to Complete ABCD Pattern – Buying Signal! 

The AUD/USD pair was closed at 0.71174 after placing a high of 0.71365 and a low of 0.70445. Overall the movement of the AUD/USD pair remained bullish throughout the day. On Wednesday, the AUD/USD pair posted the biggest gain since October 09 amid the broad-based US dollar weakness and the improved risk sentiment due to US stimulus package talks’ developments.

The AUD/USD pair was closed at 0.71174 after placing a high of 0.71365 and a low of 0.70445. Overall the movement of the AUD/USD pair remained bullish throughout the day. On Wednesday, the AUD/USD pair posted the biggest gain since October 09 amid the broad-based US dollar weakness and the improved risk sentiment due to US stimulus package talks’ developments.

The AUD/USD pair was closed at 0.71174 after placing a high of 0.71365 and a low of 0.70445. Overall the movement of the AUD/USD pair remained bullish throughout the day. On Wednesday, the AUD/USD pair posted the biggest gain since October 09 amid the broad-based US dollar weakness and the improved risk sentiment due to US stimulus package talks’ developments.

Investors were confident about the chances of a coronavirus stimulus agreement in the US that raised the market’s risk appetite and supported Aussie’s risk. The US President Trump said that he was willing to accept a larger relief bill despite Senate Republicans’ opposition and boosted optimism in the market. Like the Australian dollar, the riskier currencies gained from it and supported the AUD/USD pair’s upward movement on Wednesday.

On the data front, at 04:30 GMT, the MI Leading Index for September came in as 0.2% compared to August’s 0.5%. At 05:30 GMT, the Retail Sales from Australia came in as -1.5%. The investors mostly ignored Australia’s data as the focus was shifted towards the US stimulus package deal.

The latest minutes released by the Reserve Bank of Australia showed that the further rate cut has been on the table. This weighed on market sentiment as well as increase the bearish pressure on the Australian dollar. The Aussie dropped in previous days because of increased negative pressure generated by the rising chances of further monetary easing. However, on Wednesday, the AUD/USD pair recovered most of its previous day’s losses and rose about 1% on a day.

The risk sentiment was also supported by the hopes that the results from phase-3 trials of vaccines will be delivered in the coming months that will approve one-or-two vaccine by the end of the year. These hopes favored the Australian dollar further and pushed AUD/USD pair even higher.


Daily Technical Levels

Support Resistance

0.7057 0.7144

0.7010 0.7184

0.6970 0.7230

Pivot point: 0.7097

The AUD/USD is trading with a bullish bias at 0.7110, heading towards the next resistance level of 0.7136 level. On the lower side, the AUD/USD may find support at 0.7087, and closing of candles above this level may drive the pair further higher. The MACD is suggesting a buying trends; therefore, we have opened a buying trade over 0.7110. Checkout a trade signal…

Entry Price – Buy 0.71124

Stop Loss – 0.70724

Take Profit – 0.71524

Risk to Reward – 1:1

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

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

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

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

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

 

Categories
Forex Market Analysis

Daily F.X. Analysis, October 22 – Top Trade Setups In Forex – U.S. Jobless Claims In Focus! 

The economic calendar is filled with medium impact economic events such as Unemployment Claims, C.B. Leading Index m/m, and Existing Home Sales from the United States on the news front. Besides, the Consumer Confidence from the Eurozone will also remain in the highlights today. The market may show some price action during the U.S. session on the release of U.S. Jobless Claims. 

The economic calendar is filled with medium impact economic events such as Unemployment Claims, C.B. Leading Index m/m, and Existing Home Sales from the United States on the news front. Besides, the Consumer Confidence from the Eurozone will also remain in the highlights today. The market may show some price action during the U.S. session on the release of U.S. Jobless Claims. 

The economic calendar is filled with medium impact economic events such as Unemployment Claims, C.B. Leading Index m/m, and Existing Home Sales from the United States on the news front. Besides, the Consumer Confidence from the Eurozone will also remain in the highlights today. The market may show some price action during the U.S. session on the release of U.S. Jobless Claims. 

Economic Events to Watch Today  

  

EUR/USD – Daily Analysis

The EUR/USD pair was closed at 1.18609 after placing a high of 1.18806 and a low of 1.18209. The EUR/USD pair extended its previous day’s gains and rose for the 4th consecutive session on Wednesday to reach its highest since mid-September. Despite the alarming comments from ECB President Christine Lagarde, the EUR/USD pair managed to post gains on Wednesday over the U.S. dollar’s weakness and improved risk sentiment.

The U.S. Dollar Index was down by 0.5% and fell to its seven-week lowest level on Wednesday to 92.46 over fresh hopes that the U.S. stimulus package for coronavirus would release soon. The hopes were encouraged by the comments of U.S. President Donald Trump, who said that he was ready to accept a larger coronavirus-relief package. This boosted investor’s optimism that eventually led to rising risk sentiment and increasing pressure on the safe-haven U.S. dollar. The U.S. dollar weakness added further strength to the already rising EUR/USD pair’s prices on Wednesday.

According to the White House spokesperson, Allysa Farah, she was optimistic that a fiscal deal between Democrats and Republicans would reach soon as Trump has suggested that he accept the $2.2 trillion bill proposed by Democrats. However, Senate Republicans have made it public that they will oppose a larger bill.

On Wednesday, the President of the European Central bank, Christine Lagarde, said in a pre-recorded interview that the economic outlook was under clear risk due to an unexpected early pickup in coronavirus infections. She said that more scientists in the Eurozone were expecting the epidemic’s resurgence in November or December with the cold. Lagarde’s concerning statements weighed on the single currency Euro and capped further gains in EUR/USD pair on Wednesday.

The central bank of Europe is set to hold a governing council next week to decide on its monetary policy. The majority of economists expect no change in policy until December. ECB is expected to ramp up its 1.35 trillion pandemics bond-buying program at its last policy meeting in 2020.

These expectations also weighed on the single currency Euro and capped further gains in currency pair EUR/USD.

Meanwhile, the number of coronavirus cases in Europe is continuously setting fresh records. However, market participants are ignoring the issue; it still holds some importance in driving the EUR/USD pair as there was no macroeconomic data to be released from Europe or the U.S. On Thursday, Europe will publish the Consumer Confidence Report, and the U.S. will publish its initial jobless claims from last week that will have a major impact on EUR.USD pair’s movements.

Daily Technical Levels

Support Resistance

1.1773     1.1854

1/1725     1.1889

1.1691     1.1936

Pivot point: 1.1807

EUR/USD– Trading Tip

The EUR/USD is trading sharply bullish amid a weaker U.S. dollar to trade at 1.1848 level, and the has formed inside bar down, which suggests that the bullish bias is getting weaker and sellers may dominate the market. On the lower side, the EUR/USD can go for bearish correction until the 1.1819 level that marks the 38.2% Fibonacci retracement level. Continuation of further selling trends can lead the EUR/USD price towards a 1.1800 mark, and below this, the next support level stays at 1.1765. The MACD and RSI are also supporting the bearish bias now. The bearish bias remains dominant today. 

GBP/USD – Daily Analysis

The GBP/USD pair was closed at 1.31461 after a high of 1.31765 and a low of 1.29332. On Wednesday, the GBP/USD pair followed its previous daily trend and rose for 3rd consecutive day. The British Pound jumped higher on the day by 1.6% and reached its highest since September 7.

The recent jump in British Pound against the U.S. dollar came in as the E.U. and the U.K. were set to resume talks after Britain welcomed the bloc’s desire to break the impasse in negotiations. The post-Brexit talks are set to resume on Thursday after the E.U. Brexit negotiator Micheal Barnier said a deal was in reach and pledged to seek the necessary compromises on both sides. He added that an agreement has reached within and if both sides were willing to work constructively and compromise despite the difficulties.

Great Britain signaled that it was ready to intensify talks to soften the key sticking issues included fisheries and sovereign aid. Micheal Barnier believed that sovereignty was a legitimate concern for the U.K., and E.U. would have to compromise. These developments in Brexit talks gave strength to British Pound and supported GBP/USD pair on Wednesday to post gains.

On the data front, at 11:00 GMT, the CPI for the year from Great Britain was released as 0.5% against the forecasted 0.4% in September and supported British Pound. The Core CPI for the year was also released and came in as expected by 1.3%. The Public Sector Net Borrowing advanced to 35.4B against the forecasted 32.5B and weighed on GBP. The RPI for the year also dropped to 1.1% against the expected 1.2% and weighed on GBP.

At11:03 GMT, the United Kingdom’s PPI input raised to 1.1% against the forecasted -0.9% and raised British Pound. However, at 12:30 GMT, the PPI output remained flat at -0.1%. The Housing Price Index for the year from Pound also came in line with 2.5% expectations.

The rising CPI and PPI Input data supported the bullish momentum of the GBP/USD pair on Wednesday.

The British Pound was also helped by easing fears over negative interest rates after Deputy Bank of England Governor Dave Ramsden said that cutting rates below zero could hamper lending activity. He also said that there might be an appropriate time to use negative interest rates, but this was not that time. These comments also gave strength to British Pound and raised the GBP/USD pair on Wednesday.

Meanwhile, the U.K. reported 26,688 coronavirus cases on Wednesday in comparison to Tuesday’s 21,331 cases. The rising number of coronavirus infections from the U.K. forced the government to impose new lockdown measures in the country’s parts. These lockdowns also held the upward trend of the GBP/USD pair on Wednesday.

On the U.S. front, the stimulus package talks were resumed after U.S. President Donald Trump agreed to increase the stimulus package’s size. The renewed hopes for a stimulus package before elections weighed on the U.S. dollar, which added further strength to the rising GBP/USD pair on Wednesday.

Daily Technical Levels

Support Resistance

1.2997     1.3220

1.2864     1.3310

1.2774     1.3443

Pivot point: 1.3087

GBP/USD– Trading Tip

The GBP/USD soared sharply to trade at the 1.3170 level, and recently, it has entered the overbought zone. Below 1.3170, we may see the GBP/USD price trading bearish to complete 23.8% Fibo level and 38.2% Fibo level at 1.3100 and 1.3068 level. Continuation of a bearish trend can lead the Cable towards the 1.3006 level that marks a 61.8% Fibo level. The cable may face resistance at 1.3170 level today. 

USD/JPY – Daily Analysis

The USD/JPY pair was closed at 104.580 after placing a high of 105.523 and a low of 104.339. The USD/JPY pair reversed its previous day momentum and fell on Wednesday to its one-month lowest level on the back of fresh U.S. dollar weakness. The pair hit 104.339 level, the lowest level since September 21 after U.S. President Donald Trump boosted for a larger stimulus package. This report prompted some investors to move toward riskier assets and dampened the safe-haven appeal for the greenback.

The price action from the USD/JPY traders suggested that traders were betting heavily on the news that there might be a stimulus by this weekend and ignored the signs of opposition from Trump’s Republican Party.

The Senate Majority Leader Mitch McConnell provided no timetable for a relief bill and said that he was not in favor of larger stimuli before elections. Whereas, the White House Chief of Staff Mark Meadows preserved the hopes for a stimulus deal and said on Wednesday that he was very hopeful that progress was being made in the negotiations. He added that both parties would remain under talks over the coming days.

The U.S. Treasury yields held near their highest levels in four months on Wednesday over the expectations that a deal might be reached. The 10-year Treasury yield was up by 1.5 basis points and touched its fresh four months high at 0.84%. This weighed on the U.S. dollar and added further pressure on the USD/PY pair.

The Federal Reserve issued it Beige Book on Wednesday that revealed that economic activity was continuously increasing across all districts with a pace of growth characterized as slight to modest in most districts.

The USD/JPY pair’s main driver on Wednesday remained fresh hopes for a stimulus package as there was no macroeconomic data to be released on the day. The focus was entirely on the relief bill, where Nancy Pelosi also affirmed that she was optimistic about the chances of reaching an agreement before the U.S. Presidential elections.

Daily Technical Levels

Support Resistance

104.18     105.35

103.68     106.00

103.02     106.51

Pivot point: 104.84

USD/JPY – Trading Tips

The USD/JPY traded dramatically bearish to drop from 105.460 level to 104.349 level. Like other pairs, the USD/JPY has also entered the oversold zone, and now sellers seem to be exhausted. On the higher side, the USD/JPY pair has reversed some of the losses to trade at the 104.700 level. On the higher side, the pair may go after the 38.2% Fibonacci retracement level of 104.900 and 50% Fibo level of 105. Let’s consider taking a buying trade over 104.350 area today. Good luck! 

Categories
Forex Market Analysis

Daily F.X. Analysis, October 21 – Top Trade Setups In Forex – U.K., U.S., Canada Events in Highlights! 

On the news front, the economic calendar is filled with a series of fundamentals from the U.K. and Canada, focusing on the U.S. Inflation data. The U.K. Inflation data is due during the European session, and economists expect a slight improvement in the U.K. CPI figures from 0.2% to 0.4%, while core CPI is likely to surge to 0.4% from 0.2%, and it may underpin the Cable pair today. On the other hand, the Canadian inflation report is also expected to perform slightly better today to support the Canadian dollar demand. 

On the news front, the economic calendar is filled with a series of fundamentals from the U.K. and Canada, focusing on the U.S. Inflation data. The U.K. Inflation data is due during the European session, and economists expect a slight improvement in the U.K. CPI figures from 0.2% to 0.4%, while core CPI is likely to surge to 0.4% from 0.2%, and it may underpin the Cable pair today. On the other hand, the Canadian inflation report is also expected to perform slightly better today to support the Canadian dollar demand. 

On the news front, the economic calendar is filled with a series of fundamentals from the U.K. and Canada, focusing on the U.S. Inflation data. The U.K. Inflation data is due during the European session, and economists expect a slight improvement in the U.K. CPI figures from 0.2% to 0.4%, while core CPI is likely to surge to 0.4% from 0.2%, and it may underpin the Cable pair today. On the other hand, the Canadian inflation report is also expected to perform slightly better today to support the Canadian dollar demand. 

Economic Events to Watch Today  

 


 

EUR/USD – Daily Analysis

The EUR/USD pair was closed at 1.8221 after placing a high of 1.18406 and a low of 1.17598. Overall the movement of the EUR/USD pair remained bullish throughout the day. The EUR/USD rose for the 3rd consecutive day and extended its previous day’s gains to reach its highest since September 21. On Tuesday, the EUR/USD pair’s upward momentum was supported by a weaker U.S. dollar across the board.

The U.S. Dollar Index was down by 0.45% at 93.0, the lowest October level, however, the Dow Jones gains 0l68%, and the NASDAQ rose by 0.30%. On Tuesday, the greenback remained weak against all of its rivals as the investors look for the results in negotiations for a new round of fiscal stimulus in the U.S.

The EUR/USD pair rose more than 0.5% on Tuesday above the 1.18400 level for the first time in October as the market mood improved. EUR/USD pair followed the lockdown on Brexit talks, coronavirus spread in Europe, and France is reporting the record-high number of people hospitalized with Ireland introducing tough restrictions.

On the data front, the German PPI for September raised to 0.4% from the forecasted 0.1% and supported the single currency. At 13:00 GMT, the Current Account from Eurozone also raised to 19.9B against the forecasted 17.2B and supported EUR/USD pair’s bullish move.

At 17:30 GMT, the Building Permits raised to 1.55M from the expected 1.52M and supported the U.S. dollar on the U.S. front. The Housing Starts from the U.S. declined to 1.42M against the forecasted 1.45M and weighed on the U.S. dollar that ultimately added strength to EUR/USD pair on Tuesday. Furthermore, the improved risk sentiment after the reviving hopes for additional U.S. fiscal stimulus and expectations of a COVID-19 vaccine by the end of this year boosted investors’ confidence. The risk-on flow smashed the greenback’s relative safe-haven status and was seen as a key factor driving the currency pair higher.

The U.S. House Speaker Nancy Pelosi said on Sunday that legislation on a wide-range of coronavirus relief packages could be pushed through before the election on November 3. Whereas, the investors remained unconvinced that a deal could be reached with Republicans before the self-imposed deadline by Pelosi.

Traders were also concerned about the rising number of coronavirus cases in Europe that could lead to fresh lockdown measures and dent global economic recovery. This, in turn, raised the U.S. dollar demand due to its safe-haven status and capped further upside momentum for EUR/USD pair.

Looking forward, the market participants will await the release of German PPI for September on Wednesday for finding fresh clues about the EUR/USD pair’s movements.

Daily Technical Levels

Support Resistance

1.1773     1.1854

1.1725     1.1889

1.1691     1.1936

Pivot point: 1.1807

EUR/USD– Trading Tip

The EUR/USD is trading sharply bullish amid a weaker U.S. dollar at 1.1848 level, and continuation of a bullish trend has formed three white soldiers on the 4-hour timeframe. That bullish setup may drive an upward movement until the 1.1870 mark and 1.1900 level. The MACD and RSI support the buying trend, and on the higher side, the EUR/USD may face resistance at 1.1870. Conversely, the bearish correction can also be seen until the 1.1831 level and 1.1807 mark. Above 1.1807, we can expect a continuation of a buying trade today. 

GBP/USD – Daily Analysis

The GBP/USD pair was closed at 1.29466 after placing a high of 1.29794 and a low of 1.29107. Overall the movement of the GBP/USD pair remained bullish throughout the day. The GBP/USD pair followed its previous daily trend and rose for the second consecutive day on Tuesday; however, the gains remain limited as the frozen Brexit talks overshadowed the U.S. dollar’s weakness. The parts of Britain went into lockdown to curb virus infections also weighed on the rising GBP/USD pair on Tuesday.

The Brexit trade deal’s trade talks were paused after a phone call between negotiators from both sides failed to make a breakthrough. The U.K. negotiator David Frost said that his call with E.U. counterpart Michel Barnier was constructive but in-person talks could not resume. He said that fundamental change in the E.U.’s approach was required before face-to-face talks should continue. At the same time, Barnier said that the E.U.’s door was open following the phone call. The Frenchman who had proposed intensified talks in London this week said that both sides should make the most out of the little time left as both sides sought an agreement to govern their trading relationship[ after the U.K.’s transition period in the E.U. ends in January 2021. Both sides are calling on the other to compromise ahead of the looming December deadline for a deal. The disagreement persists on key issues like fisheries, level playing field, and governance.

On Tuesday, the U.K. Prime Minister Boris Johnson reportedly told the Greek prime minister that Brexit talks would remain paused until the E.U. changes its stance on the negotiations. He also reaffirmed that the E.U. had effectively ended the negotiations by stating that they did not want to change their negotiating positions, so the E.U. should change their position, and then the U.K. would be willing to talk on a new basis.

Without a trade deal, the U.K. will trade on the terms of the World Trade Organization with the E.U. that will hurt both economies, particularly when some parts of Britain were under lockdown to control the rising infection cases. The PM Boris Johnson also confirmed that Great Manchester would be going into the highest lockdown level – Tier 3- from Friday. It came in because the U.K.’s coronavirus cases raised by 21,330 daily, its highest daily rise since June 5.

All these Brexit tensions and rising coronavirus cases, and the renewed lockdowns kept the GBP/USD pair’s additional gains under pressure on Tuesday. Whereas, the internal market of PM Boris Johnson that seeks to undermine parts of the Brexit withdrawal agreement was voted down in Parliament, and this supported the GBP/USD pair’s bullish trend on Tuesday.

There was no macroeconomic release from Britain’s side on the data front, and from the U.S., the Housing Starts were declined to 1.42M against the expected 1.45M and weighed on the U.S. dollar that ultimately added strength to GBP/USD pair.

Daily Technical Levels

Support Resistance

1.2910     1.2980

1.2875     1.3015

1.2841     1.3049

Pivot point: 1.2945

GBP/USD– Trading Tip

The GBP/USD surged sharply to trade at the 1.3006 mark, but soon it slipped again to trade at the 1.2939 level. The cable is currently gaining immediate support at the 1.2939 level, and a bearish breakout of the 1.2939 mark can lead to GBP/USD prices further lower towards the 1.2886 level. On the flip side, the resistance continues to hold around the 1.3006 level. The MACD and RSI show neutral bias as investors seem to wait for a solid reason to enter the market. 

USD/JPY – Daily Analysis

The USD/JPY pair was closed at 105.506 after placing a high of 105.745 and a low of 105.339. Overall the movement of the USD/JPY pair remained bullish throughout the day. The USD/JPY pair rose to its six-day highest level on Tuesday in the early trading session but started losing its intraday gains in the late session due to U.S. dollar weakness. The uncertainty surrounding the next round of the U.S. fiscal stimulus kept the U.S. dollar bulls defensive and the USD/JPY pair under pressure.

The main factor involved in the USD/JPY pair’s upward momentum in U.S. dollar weakness was the solid rebound in U.S. equity markets that undermined the safe-haven Japanese Yen. Furthermore, a strong pickup in the U.S. Treasury bond yields, though, failed to revive the U.S. dollar demand and remained supportive of the move.

On the data front, at 17:30 GMT, the Building Permits for September from the U.S. raised to1.55M from the projected 1.52M and supported the U.S. dollar that ultimately pushed the USD/JPY pair higher. The Housing Starts declined in September to 1.42M from the anticipated 1.45M and weighed on the U.S. dollar helped cap further upside momentum in the USD/JPY pair.

The trade’s focus was on the developments over the U.S. stimulus measure as the self-imposed deadline by the U.S. House of Representatives Speaker Nancy Pelosi to reach a deal with Republicans was about to end. The hopes for the next round of stimulus measures were fading away as only two weeks are left for U.S. presidential elections, and it seems hard that both sides will reach a deal by then.

These faded hopes also supported the U.S. dollar and added further strength to the rising USD/JPY pair on Tuesday.

Meanwhile, on Tuesday, the U.S. Federal Reserve Vice Chair Randal Quarles said that the nonbank financial system was significantly more fragile than its traditional counterparts, and it has been confirmed by the market stresses created by the coronavirus pandemic. Furthermore, the Philadelphia Federal Reserve Bank President Patrick Harker said that Fed’s new framework should help address shortfalls in employment and help affected workers find new opportunities. He said that tolerating higher inflation will be worth it to help achieve employment goals. These comments from Fed officials also supported the USD/JPY pair’s bullish move on Tuesday.

Daily Technical Levels

Support Resistance

105.33     105.69

105.18     105.90

104.96     106.05

Pivot point: 105.54

USD/JPY – Trading Tips

The USD/JPY trades with a bearish bias around the 105.250 level, having violated the upward channel at the 105.450 level. Closing of candles below this level may lead the USD/JPY pair towards the 105 mark; however, it needs to violate the immediate support area of 105.285. Closing of candles below 105.285 may help us capture quick selling trades until the 105 level. The USD/JPY has recently closed a bearish engulfing candle, and it has also violated the upward channel; both of these are supporting further selling trend in the USD/JPY pair today.  

Good luck!  

Categories
Forex Signals

USD/CAD Examines Double Bottom Support – Brace for Bullish Recovery! 

The USD/CAD pair was closed at 1.31273 after placing a high of 1.32036and a low of 1.31042. Overall the movement of the USD/CAD pair remained bearish throughout the day. The USD/CAD pair fell to its fifth day lowest level on Tuesday amid the broad-based US dollar weakness and the strong rebound in crude oil prices.

The USD/CAD pair was closed at 1.31273 after placing a high of 1.32036and a low of 1.31042. Overall the movement of the USD/CAD pair remained bearish throughout the day. The USD/CAD pair fell to its fifth day lowest level on Tuesday amid the broad-based US dollar weakness and the strong rebound in crude oil prices.

The USD/CAD pair was closed at 1.31273 after placing a high of 1.32036and a low of 1.31042. The USD/CAD fell to its fifth day lowest level on Tuesday amid the broad-based US dollar weakness and the strong rebound in crude oil prices.

The greenback was weak across the board due to the pertaining uncertainty over the US stimulus package’s development. The US Dollar Index dropped to 93.02 level, its lowest since October 9 on Tuesday amid the US equity market’s strength. The improved risk sentiment supported the US equity market and weighed on the US dollar that ultimately dragged the USD/Cad pair’s prices on Tuesday.

The focus of traders has been shifted to the US negotiations for a new round of US stimulus package for the coronavirus crisis. The US Speaker of the House, Nancy Pelosi, has set a deadline for reaching an agreement before the November 3 election.

Though US President Donald Trump has shown his support for the wide range of stimulus measures, still Nancy Pelosi has failed to break the impasse, and these developments have faded away from the hopes that US stimulus will be delivered before elections. These uncertainties kept the market sentiment under pressure, and the USD/CAD pair suffered because of it.

There was no macroeconomic fundamentals to be released from Canada on the data front, and from the US, the Building Permits were released for September that raised to 1.55M from the expected 1.52M and supported the US dollar. While the Housing Starts were declined to 1.42M from the expected 1.45M and weighed on the US dollar that ultimately dragged the USD.CAD pair’s prices.

On the crude oil side, the WTI prices soared on Tuesday after falling for three consecutive days and reached near the $42 level amid the broad-based US dollar weakness. The rising crude oil prices gave strength to commodity-linked Loonie that ultimately added weight on the already declining USD/CAD pair. The Canadian dollar’s strength driven by raised risk sentiment and crude oil prices dragged the USD/CAD pair’s prices towards its five days lowest level on Tuesday.



Daily Technical Levels

Support Resistance

1.3083 1.3186

1.3041 1.3247

1.2980 1.3289

Pivot point 1.3144

The USD/CAD traded sharply bearish at the 1.3103 level, having violated the double bottom support area of the 1.3103 level on the 4-hour timeframe. Below this level, we may see further selling until the 1.3055 mark; however, the MACD and RSI are in an extremely oversold zone, and we may see a slight bullish recovery before entering into an additional selling zone. The idea is to wait for a bullish correction until the 1.3140 level that marks the 38.2% Fibonacci retracement level before taking another selling trade. Good luck! 

Categories
Forex Signals

USD/CAD Managed to Extend Its Previous Session Modest Gains

During Tuesday’s early Asian trading session, the USD/CAD currency pair managed to extend its previous session modest gains and remain well bid around closer to 1.3200 level due to the declines in the crude oil prices, which tend to undermine the commodity-linked currency the Loonie and helps the currency pair to put the fresh bids during the early Asian session. 

During Tuesday’s early Asian trading session, the USD/CAD currency pair managed to extend its previous session modest gains and remain well bid around closer to 1.3200 level due to the declines in the crude oil prices, which tend to undermine the commodity-linked currency the Loonie and helps the currency pair to put the fresh bids during the early Asian session. 

During Tuesday’s early Asian trading session, the USD/CAD currency pair managed to extend its previous session modest gains and remain well bid around closer to 1.3200 level due to the declines in the crude oil prices, which tend to undermine the commodity-linked currency the Loonie and helps the currency pair to put the fresh bids during the early Asian session. 

On the contrary, the broad-based U.S. dollar weakness, triggered by the combination of factors, could be considered one of the key factors that kept the lid on any additional gains in the currency pair. As of writing, the USD/CAD currency pair is currently trading at 1.3190 and consolidating in the range between 1.3148 – 1.3195.

The optimism over the coronavirus (COVID-19) vaccine/treatment was recently overshadowed by the concerns about the second wave of coronavirus infections, which keep fueling the doubts over the global economic recovery. Besides this, the renewed conflict between the U.S. and China also weighed on the market trading sentiment. It is worth mentioning that Mike Pompeo has stated that ‘We are sanctioning mainland-China and Hong Kong entities and individuals for conduct related to the sanctioned proliferator the Islamic Republic of Iran Shipping Lines. He further added that our warning is clear: If you do business with IRISL or its subsidiaries, you will face U.S. sanctions.” This recently exerted downside pressure on the trading sentiment and contributed to the currency pair losses.

Despite this, the broad-based U.S. dollar remained depressed as the investors continue to sell U.S. dollars in the wake of the renewed hopes of additional U.S. fiscal stimulus measures and hopes of a coronavirus vaccine at the end of this year, which tends to undermine the safe-haven U.S. dollar. Elsewhere, the U.S. dollar losses were further bolstered by the doubts over the U.S. economic recovery amid rising coronavirus cases. Thus, the U.S. dollar losses become the key factor that cap further gains in the currency pair. Simultaneously, the U.S. Dollar Index that tracks the greenback against a bucket of other currencies dropped by 0.04% to 93.672.

On the bullish side, the WTI’s weakness restricts the USD/CAD bearish moves as oil is the biggest export-item for Canada. However, the WTI crude oil prices failed to extend its previous day gaining streak and remain depressed on the day mainly due to China’s GDP grew less than expected in the third quarter (Q3), which fueling concerns over the demand for crude oil from the world’s second-largest oil consumer. This, in turn, undermined the sentiment around the crude oil prices. The concerns over the sharp rise in new coronavirus cases, which could trigger renewed lockdown restrictions and damage the global economy’s ongoing recovery, continued challenging the crude oil bulls. Thus, the crude oil prices’ losses undermined the commodity-linked currency the Loonie and contributed to the currency pair gains.

Looking forward, the market traders keeping their eyes on the Housing Starts and Building Permits data. In the meantime, the updates surrounding the fresh Sino-US tussle, as well as the coronavirus (COVID-19), could not lose their importance.

Daily Support and Resistance

S1 1.308

S2 1.3141

S3 1.3166

Pivot Point 1.3202

R1 1.3226

R2 1.3263

R3 1.3323

The USD/CAD is trading mostly sideways over the 1.3170 level, and recently, it’s trying to a bullish engulfing pattern that may drive upward movement in the market until the 1.3250 level. Conversely, the bearish breakout of 1.3175 level can drive selling bias until 1.3095. Overall, the RSI and MACD are in support of selling bias until the 1.3095 level. Let’s consider taking a buy trade over 1.3170 and selling below the same level today. Good luck!

Categories
Forex Market Analysis

Daily F.X. Analysis, October 20 – Top Trade Setups In Forex – European Events in Highlights! 

On the news front, the economic calendar is filled with a series of low impact economic events. However, the focus will remain on the German PPI m/m and Current Account from the Eurozone, and the point to note is that both of the data are expected to be positive so that it may underpin the Euro today. Besides, the FOMC Member Williams and Quarles speeches will be monitored for further price action. 

On the news front, the economic calendar is filled with a series of low impact economic events. However, the focus will remain on the German PPI m/m and Current Account from the Eurozone, and the point to note is that both of the data are expected to be positive so that it may underpin the Euro today. Besides, the FOMC Member Williams and Quarles speeches will be monitored for further price action. 

On the news front, the economic calendar is filled with a series of low impact economic events. However, the focus will remain on the German PPI m/m and Current Account from the Eurozone, and the point to note is that both of the data are expected to be positive so that it may underpin the Euro today. Besides, the FOMC Member Williams and Quarles speeches will be monitored for further price action. 

Economic Events to Watch Today  

 


 

EUR/USD – Daily Analysis

The EUR/USD pair was closed at 1.17708 after placing a high of 1.17936 and a low of 1.17030. Overall the movement of the EUR/USD pair remained bullish throughout the day. The EUR/USD pair was up on Monday and tried to approach the 1.1800 arear as the hopes of a U.S. stimulus package weighed on the U.S. dollar. 

The U.S. dollar was weak across the board due to mounting hopes that the U.S. stimulus package will be delivered soon and the encouraging Chinese data published on the day in early trading sessions. It was revealed that Republicans added 0.1 trillion dollars to its previous $1.8 trillion package offer to reach a consensus with Democrats. The Democrats, however, still found it difficult to reach a deal with republicans.

However, the hopes were increased in the market for U.S. stimulus as Republicans were making progress in compromising. This weighed on the U.S. dollar and helped the EUR/USD pair to extend its gains. On China’s front, the data from there reported its GDP at 4.9% in Q3 that was below the expectations of 5.2% and above the previous 3.2%. The U.S. dollar came under pressure because of China’s good performance in Q3 than Q2 and supported the EUR/USD pair’s upward momentum.

On Monday, the European Central Bank President Christine Lagarde said that she wanted E.U. governments to consider the possibility of making E.U. debt a permanent fixture of the bloc’s economic response to the crises. When asked about the 750 billion euros debt-fueled response to the coronavirus crisis, the E.U. commission will borrow on financial markets and disburse to E.U. countries as grants and loans; Lagarde said that this stimulus tool was a response to an exceptional situation like a pandemic. She added that there should be a discussion about this stimulus’s possibility to remain in the European toolbox to be mobilized again in identical circumstances.

Lagarde added that a debate on a common budgetary tool specific to the Euro area should take place and learn lessons from the situation that has happened recently. These comments from Lagarde added further strength to the already rising Euro currency and added additional gains. On the coronavirus front, Belgium extended its restrictions on bars and restaurants for the next four weeks as the infection rate rose continuously. The health minister warned that Belgium could soon be overwhelmed by new coronavirus infections.

Italy recorded its highest daily infection rate on Sunday and announced a raft of measures to control infection spread. Meanwhile, nine major French cities were also placed under curfew. However, these lingering coronavirus tensions failed to reverse the rising EUR/USD pair, and the currency pair remained on the positive track on Monday.

Daily Technical Levels

Support Resistance

1.1709     1.1723

1.1703     1.1731

1.1695     1.1737

Pivot point: 1.1717

EUR/USD– Trading Tip

The EUR/USD is consolidating below a strong resistance level of 1.1793 level, extended by a downward trendline on the 4-hour timeframe. On the lower side, the EUR/USD may find support at the 1.1735 level, and violation of this support level can extend selling until the 1.1690 level. On the higher side, bullish trend continuation can lead the EUR/USD price towards the next target level of the 1.1830 mark. The MACD supports bullish bias; therefore, we should look for buying trades upon today’s breakout of the 1.1790 level. 

GBP/USD – Daily Analysis

The GBP/USD pair was closed at 1.29827 after placing a high of 1.30244 and a low of 1.28912. The British Pound eased from session highs on Monday against the U.S. dollar but remained supported as the E.U. assured that it would remain committed to intensifying Brexit-deal talks with the U.K. The E.U. Brexit negotiator Michel Barnier confirmed that the E.U. remained available to intensify negotiations in London. This marked a change in tone after E.U. leaders dropped their pledge to intensify trade talks last week and called on the U.K. to make concessions for a deal. Barnier’s statement raised the possibility of a Brexit deal and helped GBP/USD pair to remain positive on Monday.

The U.K. Cabinet Office Minister Michael Gove had suggested that the U.K. would not resume talks before acknowledging signs of progress. He also said that he welcomes the constructive move on the part of the E.U. However, he said that there was no basis to find an agreement and that Brussel’s proposals were inconsistent with sovereign status. He also labeled potential talks as meaningless.

The pair GBP/USD was raised during the early trading session but failed to extend gains and eased due to Gove’s statement. Michael Gove said that the U.K. was increasingly well-prepared for an Australian-style exit from the E.U., meaning no-deal. The mixed statements from Barnier and Gove confused the traders, and the currency pair suffered from it as it moved on the upside in the early session and lost most of its gains in the late session.

On the data front, at 04:01 GMT, the Rightmove Housing Price Index for October came in as 1.1% compared to the previous 0.2%. From the U.S. side, the NAHB Housing Market Index rose to 85 from the forecasted 83 and supported the U.S. dollar that limited GBP/USD pair gains on Monday.

Meanwhile, the rising number of coronavirus in the U.K. also weighed on GBP/USD pair as an 18,804 new cases were reported for COVID-19 in the U.K. on Monday with 80 new deaths. This also kept the pair under pressure and its gains limited on the day.

Daily Technical Levels

Support Resistance

1.2900     1.2941

1.2874     1.2956

1.2859     1.2982

Pivot point: 1.2915

GBP/USD– Trading Tip

The GBP/USD surged sharply to trade at the 1.3006 mark, but soon it slipped again to trade at the 1.2939 level. The cable is currently gaining immediate support at the 1.2939 level, and a bearish breakout of the 1.2939 mark can lead to GBP/USD prices further lower towards the 1.2886 level. On the flip side, the resistance continues to hold around the 1.3006 level. The MACD and RSI show neutral bias as investors seem to wait for a solid reason to enter the market. 

USD/JPY – Daily Analysis

The USD/JPY pair was closed to 105.430 after placing a high of 105.501 and a low of 105.299. Overall the movement of the USD/JPY pair remained bullish throughout the day. Despite the U.S. dollar weakness, the USD/JPY pair posted gains on Monday and remained bullish as the U.S. stimulus package deal’s developments started moving on the positive side. The market mood was also better and played against the greenback after releasing the GDP report from China.

The Republicans extended its previous offer of $1.8 trillion to a $1.9 trillion packages on Monday, which was again failed by Democrats. The U.S. President Donald Trump has expressed his willingness for a larger stimulus package, but he still has to convince Republicans. Whereas, the U.S. House Speaker Nancy Pelosi has set out a 48-hour deadline for U.S. stimulus talks in the last effort to reach a deal before the elections.

Before elections, the hopes for a stimulus package dimmed and supported the U.S. dollar and raised the USD/JPY pair on Monday.

Meanwhile, China published its GDP report for the third quarter that came in as 4.9% and fell short of the forecasted 5.5% but extended compared to the previous 3.2%. The U.S. dollar came under pressure because of the Chinese GDP report and further capped gains in the USD/JPY pair on Monday.

On the data front, at 04:50 GMT, the Trade Balance from Japan for September came in as 0.48T against the forecasted 0.85T and weighed on the Japanese Yen. At 19:00 GMT, the NAHB Housing Market Index for October raised to 85 from the forecasted 83 and supported the U.S. dollar that pushed the USD/JPY pair even higher. Meanwhile, the Fed Chair Jerome Powell said in his speech on Monday that it should be more important for the U.S. to get the development of CBDC- cross-border digital currency right than being the first one to issue it.

China has given away about $1.5 million for its digital currency trials and has said that it would become the first to issue a CBDC. China wanted to reduce its dependence on the global dollar payment system and has taken the initiative to issue its digital currency.

Following China’s move, many central banks worldwide have started examining the possibility of issuing a digital currency. Facebook has also announced introducing Libra, its digital currency, given the increased demand for digital payments during the COVID-19 pandemic.

The Bank for International Settlements (BIS) and the seven other central banks, including the U.S. Fed and Bank of England, have released a report that tells the importance of CBDC to catch up with China’s move be the first one. According to Powell, the U.S. Fed has not yet decided on the issuance of digital currency, but it has been an active participant in research into the issue.

Moreover, the Federal Reserve Vice Chair Richard Clarida said on Monday that after taking a substantial hit from the pandemic, the U.S. economy was rebounded strongly. He said that it might take another year to reach pre-pandemic economic levels, but the labor market could take more than that to recover the pandemic’s damage. Fed officials’ comments also weighed on the U.S. dollar and caped further gains in the USD/JPY pair on Monday.

Daily Technical Levels

Support Resistance

105.37     105.50

105.28     105.56

105.23     105.64

Pivot point: 105.42

USD/JPY – Trading Tips

The USD/JPY trades with a bullish bias around the 105.550 level, holding below the double bottom area. Bullish crossover of 105.550 level may lead USD/JPY pair further higher until 105.800 level. On the 2 hour chart, the USD/JPY has formed an upward channel, which is likely to support the USD/JPY pair around the 105.300 level. Below this, the next support is likely to be found around 105.250 and 105.06. Let’s consider opening sell trade beneath 105.60 and buying over 105.050 level today. Good luck!  

Categories
Forex Signals

AUD/USD Violates Bearish Flag – Bearish Bias Dominates!   

The AUD/USD pair was closed at 0.70685 after placing a high of 0.71144 and a low of 0.70685. Overall the movement of the AUD/USD pair remained bearish throughout the day. The AUD/USD pair extended its previous day’s losses and dropped for the third consecutive day on Monday as the market sentiment soared after the reports from the US dampening hopes of a US COVID-19 stimulus deal.

The AUD/USD pair was closed at 0.70685 after placing a high of 0.71144 and a low of 0.70685. Overall the movement of the AUD/USD pair remained bearish throughout the day. The AUD/USD pair extended its previous day’s losses and dropped for the third consecutive day on Monday as the market sentiment soared after the reports from the US dampening hopes of a US COVID-19 stimulus deal.

The AUD/USD pair was closed at 0.70685 after placing a high of 0.71144 and a low of 0.70685. Overall the movement of the AUD/USD pair remained bearish throughout the day. The AUD/USD pair extended its previous day’s losses and dropped for the third consecutive day on Monday as the market sentiment soared after the reports from the US dampening hopes of a US COVID-19 stimulus deal.

The upbeat Chinese GDP data for the third quarter gave strength to the Australian dollar and helped AUD/USD pair to open its week on a strong note. The Asian giant’s economy and the largest trading partner of Australia expanded by 4.9% in Q3 and showed strong industrial output and consumption figures that pointed out a strong recovery from the pandemic that hit Q2 hardest.

The China-proxy Aussie gained traction after the upbeat data from China, and the US dollar became weak, ultimately pushing the AUD/USD pair on the higher side in the early trading session on Monday. However, the gains were short-lived, and the AUD/USD pair’s movement reversed as the hopes for a US stimulus package faded away.

During the Weekend, the statement from Nancy Pelosi that a deal might be reached before elections over the US stimulus package gave strength to the risk sentiment. The improved risk sentiment pushed AUD/USD pair to open on a strong note, but the upward momentum was broken after hopes deteriorated on Monday.

The Republicans added another 0.1 trillion dollars to the previous $1.8 trillion stimulus package that failed to get approval. The US President showed his willingness to approve more stimulus before elections; however, he needed to deal with Republicans first. The US House Speaker Nancy Pelosi provided a 48-hours deadline to Republicans to reach a deal to pass the coronavirus stimulus package before elections. 

The mixed situation has weighed on the risk sentiment as the stimulus hopes are fading with the passage of time and the risk perceived Aussie suffered that reversed the direction of AUD/USD pair on Monday.

The pair AD/USD started moving in the downward trend because of the rate differentials between 10-year government bond yields of Australia and the US. The US 10-year Treasury yields were around 0.77%, and the Australian counterpart was at 0.750%. 

The market participants will be looking forward to the release of monetary policy meeting minutes from the Reserve Bank of Australia on Tuesday and will keep following the bearish bias until finding some fresh clues for future trading.


Daily Technical Levels

Support Resistance

0.7078 0.7101

0.7064 0.7110

0.7056 0.7124

Pivot point: 0.7087

The AUD/USD is trading at the 0.7043 level, having violated the bullish flag pattern on the 2-hour timeframe. On the lower side, bearish trend continuation can lead the AUD/USD pair towards the support area of 0.7014 level. At the same time, the support continues to stay at the 0.7068 level. The bearish bias remains dominant today; therefore, we should look for selling trades below the 0.7067 level today. Good luck! 

Categories
Forex Market Analysis

Daily F.X. Analysis, October 19 – Top Trade Setups In Forex – Eyes on ECB and Fed Officials Speech!  

On the news side, the economic calendar is filled with high impact speeches from the central bank officials such as the U.S. Fed Chair Powell and ECB President Lagarde. The U.S. Fed Chair Powell participates in a panel discussion about cross-border payments and digital currencies at the International Monetary Fund’s annual meeting, via satellite. Audience questions are expected. Simultaneously, the U.K MPC Member Cunliffe and the FOMC Member Clarida are also due to speak during the U.S. sessions.

On the news side, the economic calendar is filled with high impact speeches from the central bank officials such as the U.S. Fed Chair Powell and ECB President Lagarde. The U.S. Fed Chair Powell participates in a panel discussion about cross-border payments and digital currencies at the International Monetary Fund’s annual meeting, via satellite. Audience questions are expected. Simultaneously, the U.K MPC Member Cunliffe and the FOMC Member Clarida are also due to speak during the U.S. sessions.

On the news side, the economic calendar is filled with high impact speeches from the central bank officials such as the U.S. Fed Chair Powell and ECB President Lagarde. The U.S. Fed Chair Powell participates in a panel discussion about cross-border payments and digital currencies at the International Monetary Fund’s annual meeting, via satellite. Audience questions are expected. Simultaneously, the U.K MPC Member Cunliffe and the FOMC Member Clarida are also due to speak during the U.S. sessions.

Economic Events to Watch Today  

 


 

EUR/USD – Daily Analysis

The EUR/USD pair was closed at 1.17043 after placing a high of 1.17458 and a low of1/16937. Overall the movement of the EUR/USD pair remained bullish throughout the day. On Friday, the EUR/USD pair showed limited movement as most of its daily gains vanished during late trading sessions after the U.S. dollar became strong across the board. The U.S. dollar became stronger after the hopes for the next round of stimulus ahead of upcoming elections faded away.

Meanwhile, the financial markets were calmed on Friday by the hopes that Pfizer could apply for a U.S. emergency use of its coronavirus vaccine in November. The financial markets were affected by the coronavirus pandemic’s resurgence that could undermine the fragile economic recovery. The Wall Street futures and European stocks came back into positive territory on Friday after the U.S. pharmaceutical group said that the vaccine’s regulatory filing could come as soon as safety data are available in the 3rd week of November.

The rising risk sentiment in the market helped EUR/USD stay on the positive trend on Friday despite the rising number of coronavirus cases across Europe. On the data front, at 14:00 GMT, the Final CPI for the year from Eurozone remained flat with the projections of -0.3%. The Final Core CPI for the year also came in line with the expectations of 0.2%. Whereas, the Trade Balance from Eurozone showed a surplus of 21.9B against the forecasted 18.1B and the previous 19/3B and supported single currency Euro that ultimately added strength in EUR/USD pair.

Whereas, the Italian Trade Balance was released at 14:02 GMT that showed a surplus of 3.93B against the forecasted 7.23B and weighed on the Euro. Most data from Eurozone came in line with the forecasts and had a null-effect on EUR/USD pair. From the U.S. side, the Core Retail Sales rose to 1.5% against the forecasted 0.4%, and the Retail Sales was advanced to 1/9% against the projected 0.7% and supported the U.S. dollar. The gains in EUR/USD pair were dragged down by the strong Retail Sales figures from the U.S. that added strength to the U.S. dollar and exerted pressure on EUR/USD pair’s prices on Friday.

The combination of the severe economic downturn due to coronavirus and the high value of the Euro weighed heavily on inflation levels on the Eurozone economy. That is why most of the daily gains in EUR/USD were lost on Friday as the continuous threat of deflation remains a severe problem for policymakers; however, it seems like the negative trend would continue for some time.

Whereas the Capacity Utilization Rate from the U.S. dropped to 71.5% against the expected 72.1%, and the Industrial Production from the U.S. also declined to -0.6% from the forecasted 0.6% and weighed heavily on the U.S. dollar. U.S. reports’ negative results exerted pressure on the U.S. dollar and ultimately raised the EUR/USD pair’s gains.

On the other hand, the U.S. dollar was stronger because of the U.S. President’s offer to increase the size of a fiscal stimulus package by Republicans to win the Democrats’ support. The attempt to increase the stimulus package’s size was due to securing his position in the upcoming elections by providing aid to the struggling Americans. However, there are still no signs that Democrats and Republicans will reach an agreement before November 3rd. The strong U.S. dollar weighed on EUR/USD pair and capped further gains in the currency pair on Friday.


Daily Technical Levels

Support Resistance

1.1676     1.1748

1.1646     1.1790

1.1605     1.1820

Pivot point: 1.1718

EUR/USD– Trading Tip

The EUR/USD is trading at 1.1706 level, holding above an immediate double bottom support level of 1.1693. The U.S. dollar is likely to show some volatility during the day on the back of high and medium impact economic events from the United States. A stronger dollar may trigger a selling trend until the 1.1656 level, while the resistance can be found around 1.1725 and the 1.1748 levels.

GBP/USD – Daily Analysis

The GBP/USD pair was closed at1.29150 after placing a high of 1.29622 and a low of 1.28616. Overall the movement of the GBP/USD pair remained flat throughout the day. On Friday, the GBP/USD pair remained flat as the day’s opening and closing levels for the currency pair remained the same at 1.29150. However, the GBP/USD pair remained marginally lowered for the week because of the contradictory reports. The coronavirus and the U.S. Presidential elections headlines and the Brexit developments had a great impact on GBP/USD pair’s prices during the week.

The GBP/USD pushed to the higher side after the hopes that the U.K. and E.U. could continue trade talks emerged in the market. The U.K. foreign secretary Dominic Raab said that both sides were close to a deal, and this encouraged hopes that PM Boris Johnson will not walk away from further discussions. However, the gains in GBP/USD pair could not live for long as the same hopes faded away after the spokesman to PM Boris Johnson said that the trade talks between the U.K. and E.U. were over unless there was a fundamental change from the economic bloc. These comments weighed on the local currency British Pound, and the pair GBP/USD lost all of its gains from the earlier session.

A day earlier, the E.U. leaders dropped their commitments to work intensively with the U.K. to reach a trade deal and said Britain should make the necessary moves to secure an agreement. The key sticking points for Brexit negotiations were still the level playing field, fisheries, and governance issues.

The lack of progress in Brexit talks and the rising number of coronavirus cases in Britain weighed on local currency GBP. There was no macroeconomic data release from the United Kingdom on the data front, so traders kept following the U.S. dollar movements on Friday. At 17:30 GMT, the Core Retail Sales for September from the U.S. advanced to 1.5% from the projected 0.4%. The U.S. dollar Retail Sales also increased to 1.9% against the forecasted 0.7% and supported the U.S. dollar. The Capacity Utilization Rate from the U.S. dropped to 71.5% from the forecasted 72.1% and weighed on the U.S. dollar. The Industrial Production from the U.S. dropped to -0.6% from the anticipated 0.6% and weighed heavily on the U.S. dollar. The economic data from the United States on Friday also came in mixed and provided a null effect on the GBP/USD pair.

Apart from economic data, the U.S. dollar was strong on Friday due to the U.S. stimulus package’s latest developments. It seems like U.S. President Donald Trump wants to win elections and secure his position for the second time on November 3rd. Trump proposed increasing the $1.8trillion package to provide aid to struggling areas before upcoming elections. However, this statement was not enough to raise bars for the GBP/USD pair on Friday.

Over Brexit Front, the PM Boris Johnson agreed to extend the E.U.’s trade talks until October. It was already agreed between the PM Johnson and E.U. Commission president Ursula von der Leyen. The extended deadline raised the chances for a Brexit deal before the end of the transitions period on December 31st. The rising optimism in the market helped the risk sentiment and favored the GBP/USD pair’s upward direction. However, the upward trend of the currency pair was reversed due to the rising number of coronavirus cases, and the pair ended its day at the same level it had started its day with.


Daily Technical Levels

Support Resistance

1.2859     1.3000

1.2804     1.3086

1.2718     1.3141

Pivot point: 1.2945

GBP/USD– Trading Tip

The GBP/USD is trading at 1.2890 level, having supported over 1.2890 level. Above this, the next target is likely to be found around 1.2957 and 1.3020 level. Simultaneously, a bearish breakout of the 1.2890 support level can extend selling bias until 1.2840. The bearish bias remains solid below the 1.2890 mark. The cable may exhibit a breakout on the release of U.S. related economic events, especially the retail sales and consumer confidence. The leading indicators, such as MACD and RSI, support selling; therefore, it’s worth taking a selling trade below 1.2880 today. 

USD/JPY – Daily Analysis

The USD/JPY pair was closed at 105.377 after placing a high of 105.444 and a low of 105.188. Overall the movement of the USD/JPY pair remained bearish throughout the day. Despite the US dollar’s strength across the board on Friday, the pair USD/JPY dropped and posted losses for the day. It was mainly due to the US stimulus measure’s mixed developments in the market.

On Friday, the US President Donald Trump said that he was ready to increase the $1.8 trillion stimulus relief package for coronavirus. This news raised the hopes that the next round of stimulus will be delivered before elections on November 3rd and raised risk sentiment that supported the USD/JPY pair.

However, the same hopes were faded away after the Senate Majority Leader Mitch McConnell said that he wanted to put forward a highly targeted proposal of $500 billion despite the prior skinny bill that was failed. After Trump’s above statement, the Republican senator’s comments showed that Republicans were against the big stimulus package before elections. It raised concerns that stimulus will not be delivered before elections and weighed on risk sentiment, and dragged the USD/JPY pair on Friday to the lower side.

Meanwhile, the Federal Reserve Bank of Minneapolis President Neel Kashkari said on Friday that the US regulators were going in the wrong direction when it comes to the banks, and the arguments banks use against the strict requirements amount to nonsense. He added that there should be tough and higher capital requirements on the bigger banks.
At 17:30 GMT, the highlighted Core Retail Sales from the United States advanced to 1.5% against the forecasted 0.4% and supported the US dollar. The US dollar Retail Sales also raised to 1.9% from the forecasted 0.7% and supported the US dollar. At 19:00 GMT, the Prelim UoM Consumer Sentiment for October also raised o 81.2 against the forecasted 80.2 and supported the US dollar.

All these highlighted macroeconomic releases from the US gave strength to its local currency but failed to provide upside momentum to the USD/JPY pair on Friday as the focus of trades has been shifted towards stimulus package and upcoming US presidential elections.

At 18:15 GMT, the Capacity Utilization Rate from the United States for September dropped to 71.5% against the projected 72.1% and weighed on the US dollar. In August, the Industrial Production from the US also dropped to -0.6% against the forecasted 0.6% and weighed on the US dollar.

At 19:00 GMT, the Business Inventories in August remained flat with a projection of 0.3%. The Prelim UoM Inflation Expectations came in as 2.7% in October against September’s 2.6%. At 23:00 GMT, the Federal Budget Balance also came in line with the expectations of -124.6B.
The US side’s negative data weighed on the US dollar, which ultimately dragged the USD/JPY pair on the downside on Friday. Furthermore, the risk sentiment was also supported by the news that Pfizer could be applied for a US emergency use of its coronavirus vaccine in November. The raised risk sentiment helped limit the losses of the USD/JPY pair on Friday.


Daily Technical Levels

105.05     105.70

104.82     106.12

104.40     106.36

Pivot point: 105.47

USD/JPY – Trading Tips

The USD/JPY traded sideway, with a neutral bias within a narrow trading range of 105.600 level to the 105.250 mark. Most of the selling triggered following the USD/JPY disrupted an upward channel at the 105.900 mark on Monday. The USD/JPY is trading at 105.459 marks, the support that’s was prolonged by double bottom mark on the two-hourly charts. A bearish violation of the 105.450 mark may encourage additional selling unto the 105.070 support level as the MACD, and the 50 periods EMA are in support of selling sentiment today. Let’s consider opening sell trade beneath 105.60 and buying over 105.050 level today. Good luck!  

Categories
Forex Signals

Bearish Flag in AUD/USD – Can we Expect Bearish Trend Continuation?  

During Monday’s early Asian trading session, the AUD/USD currency pair failed to stop its Friday’s losing streak and witnessed some fresh selling on the first trading day of the week while dropped to the near three-week lows below the 0.7100 level. However, the prevalent bearish sentiment around the currency pair could be associated with the on-going expectations of further policy easing by the RBA, which tends to undermine the Australian dollar and contribute to the currency pair losses. 

During Monday’s early Asian trading session, the AUD/USD currency pair failed to stop its Friday’s losing streak and witnessed some fresh selling on the first trading day of the week while dropped to the near three-week lows below the 0.7100 level. However, the prevalent bearish sentiment around the currency pair could be associated with the on-going expectations of further policy easing by the RBA, which tends to undermine the Australian dollar and contribute to the currency pair losses. 

During Monday’s early Asian trading session, the AUD/USD currency pair failed to stop its Friday’s losing streak and witnessed some fresh selling on the first trading day of the week while dropped to the near three-week lows below the 0.7100 level. However, the prevalent bearish sentiment around the currency pair could be associated with the on-going expectations of further policy easing by the RBA, which tends to undermine the Australian dollar and contribute to the currency pair losses. 

Apart from this, the currency pair’s declines were further bolstered by the long-lasting tussle between the US-China and stimulus deadlock in the U.S., which leads to the decline in U.S. stock’s future. This, in turn, undermined the perceived risk currency Australian dollar and contributed to the currency pair losses. The acceleration in the coronavirus (COVID-19) wave 2.0 also played its major role in undermining the market trading sentiment, which adds further burden around the perceived risk currency Australian dollar and dragged the currency pair low. On the contrary, the declines in the broad-based U.S. dollar, triggered by the combination of factors, becomes the factor that helps the currency pair to limit its deeper losses. At this time, the AUD/USD is currently trading at 0.7085 and consolidating in the range between 0.7073 – 0.7086.

As we already mentioned that the AUD/USD currency pair took a hit from Reserve Bank of Australia’s Governor Philip Lowe, who had provided a strong hint on Thursday that the central bank will likely cut interest rates, or announce further stimulus measures at its next meeting in early-November in order to support jobs growth and alleviate currency pressures within the current pandemic situations. This, in turn, undermined the Australian dollar.

The global market trading sentiment failed to stop its Friday negative performance and remains pessimistic on the day amid the intensifying market worries over the rapid rise in new coronavirus cases, which leads to the new lockdown restrictions and hinder the global economic recovery, undermining the perceived riskier Australian dollar. Elsewhere, the intensifying tensions between the U.S. and China added additional burdens around the global trading market. The tension between the world’s two largest economies fueled further after China aggressively warns the U.S. to step back from Taiwan Strait. However, these lingering Sino-US tensions keep challenging the risk market sentiment and contributed to the currency pair losses.

Apart from this, the U.S. policymakers’ inability to offer the much-awaited COVID-19 stimulus also played its major role in weakening the market trading sentiment, which in turn, exerted some additional pressure on the perceived riskier Australian dollar and contributed to the currency pair losses.

 

Across the pond, the reason for the downbeat market trading sentiment could also be associated with the China-Australia tussle. Having initially halted Aussie coal and cotton, the Dragon Nation recently passed a law to limit exports of its controlled items. This shows China’s willingness to combat global criticism to dump the markets with exports and heavy risks. 

Despite the U.S. upbeat data, the broad-based U.S. dollar failed to stop its bearish bias and remained under pressure on the day. Moreover, the U.S. dollar losses could also be associated with political uncertainty in the U.S. ahead of U.S. elections. Thus, the weaker U.S. dollar is seen as the major factor that kept the currency pair higher. Simultaneously, the U.S. Dollar Index that tracks the greenback against a bucket of other currencies dropped to 93.705.

Looking forward, the traders will keep their eyes on China’s 3td-quarter (Q3) GDP, which is expected 5.2% YoY against 3.2% prior. In the meantime, the Fed Chair Powell Speaks will closely be followed. At the same time, the NAHB Housing Market Index data will also be key to watch. Apart from this, the continuous drama surrounding the US-China relations and updates about the U.S. stimulus package will not lose their importance. 


Daily Support and Resistance

S1 0.6931

S2 0.7014

S3 0.7054

Pivot Point 0.7096

R1 0.7137

R2 0.7179

R3 0.7261

The AUD/USD is trading with a bearish bias at the 0.7092 level, forming a bearish flag pattern on the four hourly timeframes. A bearish breakout of 0.7068 level supports the pair; however, this support violation can trigger selling until 0.7014 level. On the flip side, a bullish crossover of 0.7107 can lead the AUD/USD price towards the next target level of 0.7165. Good luck! 

Good luck!

Categories
Forex Signals

USD/CHF Downward Channel in Play – Quick Update on Signal!

The USD/CHF extended its previous session losing streak and hit the intra-day low around the 0.9130 regions in the last hours. However, the reason for the currency pair prevalent bearish bias could be attributed to the risk-off market sentiment, which underpins the safe-haven Swiss Franc and contributes drive selling in the pair. Hence, the market trading bias was being pressured by the fears of the steep rise in new coronavirus infections in Europe and the U.S.

The USD/CHF extended its previous session losing streak and hit the intra-day low around the 0.9130 regions in the last hours. However, the reason for the currency pair prevalent bearish bias could be attributed to the risk-off market sentiment, which underpins the safe-haven Swiss Franc and contributes drive selling in the pair. Hence, the market trading bias was being pressured by the fears of the steep rise in new coronavirus infections in Europe and the U.S.

The USD/CHF extended its previous session losing streak and hit the intra-day low around the 0.9130 regions in the last hours. However, the reason for the currency pair prevalent bearish bias could be attributed to the risk-off market sentiment, which underpins the safe-haven Swiss Franc and contributes drive selling in the pair. Hence, the market trading bias was being pressured by the fears of the steep rise in new coronavirus infections in Europe and the U.S.

Moreover, the risk-off market sentiment was further bolstered by the prevalent impasse over the next round of the U.S. fiscal stimulus measures, which further pessimism around the currency pair. On the flip side, the broad-based U.S. dollar weakness, triggered by doubts over the U.S. economic recovery, also played its major role in undermining the currency pair. At this particular time, the USD/CHF currency pair is currently trading at 0.9134 and consolidating in the range between 0.9130 – 0.9164.

The market risk tone has been shaky since the day started, possibly due to the worsening coronavirus (COVID-19) conditions in the U.K., Europe, and the U.S., which keeps fueling the worries over the global economic recovery. Meanwhile, the renewed conflict between the U.S. and China and the China-Australia tussle also exerted downside pressure on the market risk-tone and underpinned the safe-haven Swiss franc. As per the latest report, the daily new cases increased past Thursday’s record level of 6,638, with 7,334 new infections leading to 348,557 total numbers. The death toll seems to ease from the previous day’s 33 to 24 while marking a total of 9,734 deaths. As in result, the investors remained cautious that the rise in new coronavirus cases could lead to renewed lockdown measures.

Apart from this, the U.S. policymakers’ inability to offer the much-awaited COVID-19 stimulus also played its major role in weakening the market trading sentiment, which exerted some additional pressure on the market trading sentiment. At the US-China front, the renewed concerns over worsening diplomatic tensions between the world’s two largest economies also exerted downside pressure on the market trading sn time, which keeps the USD/CHF currency pair under pressure. Check out the trading plan below…


Daily Support and Resistance

S1 0.9083
S2 0.9113
S3 0.9128
Pivot Point 0.9142
R1 0.9158
R2 0.9172
R3 0.9201

Entry Price – Sell 0.91405
Stop Loss – 0.91805
Take Profit – 0.91005
Risk to Reward – 1:1
Profit & Loss Per Standard Lot = -$400/ +$400
Profit & Loss Per Micro Lot = -$40/ +$40
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Categories
Forex Signals

GBP/USD Succeeded to Stop Losing Streak – Quick Update on Signal!

During the Friday’s early European trading session, the GBP/USD currency pair managed to stop its early-day declining streak and recovered from the daily lows of 1.2883 to the 1.2925 level mainly due to the fresh optimism about the Brexit deal, triggered by the report suggesting that the European Union (E.U.) and the U.K. policymakers are ready to extend talks, which eventually helped the currency pair to limit its deeper losses.

During the Friday’s early European trading session, the GBP/USD currency pair managed to stop its early-day declining streak and recovered from the daily lows of 1.2883 to the 1.2925 level mainly due to the fresh optimism about the Brexit deal, triggered by the report suggesting that the European Union (E.U.) and the U.K. policymakers are ready to extend talks, which eventually helped the currency pair to limit its deeper losses.

During the Friday’s early European trading session, the GBP/USD currency pair managed to stop its early-day declining streak and recovered from the daily lows of 1.2883 to the 1.2925 level mainly due to the fresh optimism about the Brexit deal, triggered by the report suggesting that the European Union (E.U.) and the U.K. policymakers are ready to extend talks, which eventually helped the currency pair to limit its deeper losses.

 Besides, the Brexit hopes were further fueled after the U.K. Foreign Secretary Dominic Raab said, “We are close to a deal.” On the flip side, the broad-based U.S. dollar fresh weakness, backed by the worries over the U.S. economic recovery, also played its major role in supporting the currency pair. On the contrary, the worsening COVID-19 conditions in the U.K. and the renewed fears of tough lockdown measures become the key factor that kept the lid on any further gains in the currency pair. 

As we already mentioned, the GBP/USD currency pair witnessed some instant progress over the last hours after the European Union (E.U.) and the U.K. policymakers showed a willingness to extend Brexit talks. As per the latest report, the E.U.’s chief negotiator Michael Barnier said he is ready for Brexit talks “until last possible day” while his British counterpart blamed the regional leaders for the prevailing impasse the Brexit deal. These positive headlines instantly underpinned the British Pound and pushed the currency pair higher. 

In the meantime, the U.K. Foreign Secretary Dominic Raab said in response to the E.U.’s ultimatum of deciding on the Brexit fate that the “We are disappointed and surprised by the European Union (E.U.) position on Brexit,” He further added that “We are close to a deal.” Hence the Raab’s latest optimism about the Brexit deal helped the currency pair to stay bid.

Despite the rising number of COVID-19 cases and the U.S. Congress’ lack of progress towards passing the latest stimulus measures ahead of the November 3 presidential election, the broad-based U.S. dollar failed to put any heaven bids and remain depressed on the day, possibly due to the doubts over the U.S. economic recovery, which tend to undermine the greenback. The losses in the U.S. dollar becomes the key factor that helps the currency pair. 

On the contrary, the COVID-19 cases in the U.K. and Europe getting worse day by day as the daily counts reached closer to the 20,000 threshold, 18,980 new cases, 138 deaths marked in the latest report. Considering the virus’s current condition spreading, the opposition Labour Party ordered the national lockdown for at least two weeks. Apart from the USK, the U.S. cases of the novel coronavirus crossed 8 million so far, rising by 1 million in less than a month, as another wave in cases hits the nation at the onset of cooler weather.

The traders will keep their eyes on September month’s Retail Sales and Michigan Consumer Confidence for October. Meanwhile, the USD moves and coronavirus headlines will also closely followed as they could play a key role in the crude oil. 

Daily Support and Resistance

S1 1.2671

S2 1.2806

S3 1.2856

Pivot Point 1.2941

R1 1.2991

R2 1.3075

R3 1.321


The GBP/USD is trading at 1.2890 level, having supported over 1.2890 level. Above this, the next target is likely to be found around 1.2957 and 1.3020 level. Simultaneously, a bearish breakout of the 1.2890 support level can extend selling bias until 1.2840. The bearish bias remains solid below the 1.2890 mark.

Entry Price – Sell 1.2917

Stop Loss – 1.2877

Take Profit – 1.2957

Risk to Reward – 1:1

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

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

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

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

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

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Forex Signals

AUD/CAD Trimmed Its Eary-Day Gains & Dropped – Downward Channel In Play!   

The AUD/CAD failed to extend its early-day modest gains and edged lower around the 0.9362 level. However, the bearish sentiment around the currency pair could be associated with the on-going tussle between the US-China and stimulus deadlock in the U.S., which leads to the decline in U.S. stock’s future. This, in turn, undermined the perceived risk currency Australian dollar and contributed to the currency pair losses. The acceleration in the coronavirus (COVID-19) wave 2.0 also played a major role in undermining the market trading sentiment, which added further burden around the Australian dollar’s perceived risk currency and dragged the currency pair low. 

The AUD/CAD failed to extend its early-day modest gains and edged lower around the 0.9362 level. However, the bearish sentiment around the currency pair could be associated with the on-going tussle between the US-China and stimulus deadlock in the U.S., which leads to the decline in U.S. stock’s future. This, in turn, undermined the perceived risk currency Australian dollar and contributed to the currency pair losses. The acceleration in the coronavirus (COVID-19) wave 2.0 also played a major role in undermining the market trading sentiment, which added further burden around the Australian dollar’s perceived risk currency and dragged the currency pair low. 

The AUD/CAD failed to extend its early-day modest gains and edged lower around the 0.9362 level. However, the bearish sentiment around the currency pair could be associated with the on-going tussle between the US-China and stimulus deadlock in the U.S., which leads to the decline in U.S. stock’s future. This, in turn, undermined the perceived risk currency Australian dollar and contributed to the currency pair losses. The acceleration in the coronavirus (COVID-19) wave 2.0 also played a major role in undermining the market trading sentiment, which added further burden around the Australian dollar’s perceived risk currency and dragged the currency pair low. 

On the contrary, the weaker crude oil prices, triggered by the combination of factors, tend to weaken the demand for the commodity-linked currency the loonie, which becomes the factor that helps the currency pair to limit its deeper losses. The AUD/CAD currency pair is currently trading at 0.9362 and consolidating in the range between 0.9357 – 0.9386.

Intensifying restrictive measures such as lockdowns and curfews in Europe and the U.K. to control the 2nd-wave of coronavirus outbreak pushed global equity markets down. As per the latest report, the daily new cases increased past Thursday’s record level of 6,638, with 7,334 new infections leading to 348,557 total counts. The death toll seems to ease from the previous day’s 33 to 24 while marking a total of 9,734 fatalities. Apart from this, the U.S. policymakers’ inability to offer the much-awaited COVID-19 stimulus also played its major role in weakening the market trading sentiment, which in turn exerted some additional pressure on the perceived riskier Australian dollar and contributed to the currency pair losses.

Elsewhere, the intensifying tensions between the U.S. and China added additional burdens around the global trading market. The tension between the world’s two largest economies fueled further after China aggressively warns the U.S. to step back from Taiwan Strait. However, these lingering Sino-US tensions kept challenging the risk-on market sentiment and contributed to the currency pair losses.

Access the pond, the reason for the downbeat market trading sentiment could also be associated with the latest report suggesting that the World Health Organization (WHO) said that the previously cheered corona-vaccine from Gilead Sciences Inc., Remdesivir, did not affect COVID-19 patients’ length of hospital stay or chances of survival. These negative headlines exerted some additional pressure on the market sentiment. The S&P 500 Futures dropped as it currently marks 0.15% intraday losses to 3,472.

The reason for the crude oil losses could also be associated with the latest reports suggesting that the Organization of the Petroleum Exporting Countries (OPEC) decided to ease supply cuts despite rapidly falling fuel demand in Europe and the U.S. amid rising numbers of COVID-19 cases in both regions. Thus, the decline in oil prices undermined the demand for the commodity-linked currency the loonie and became the key factor that helps the currency pair limit its deeper losses.

In the absence of the major data/events on the day, the market traders will keep their eyes on September month’s Retail Sales and Michigan Consumer Confidence for October. Meanwhile, the USD moves and coronavirus headlines will also closely followed as they could play a key role in the crude oil. 


Daily Support and Resistance

S1 0.9242

S2 0.9303

S3 0.9341

Pivot Point 0.9364

R1 0.9402

R2 0.9426

R3 0.9487

Entry Price – Sell 0.93594

Stop Loss – 0.93994

Take Profit – 0.93194

Risk to Reward – 1:1

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

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

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

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

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

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Forex Market Analysis

Daily F.X. Analysis, October 16 – Top Trade Setups In Forex – Retail Sales in Focus! 

On the news side, the economic calendar is likely to offer another round of central bankers’ speeches worldwide. BOC Gov Council Member Lane, U.S. FOMC officials, is due to speak today. Simultaneously, the main highlight of the day is likely to be ECB President Lagarde Speaks and Unemployment Claims from the U.S. economy.

On the news side, the economic calendar is likely to offer another round of central bankers’ speeches worldwide. BOC Gov Council Member Lane, U.S. FOMC officials, is due to speak today. Simultaneously, the main highlight of the day is likely to be ECB President Lagarde Speaks and Unemployment Claims from the U.S. economy.

On the news side, the economic calendar is likely to offer another round of central bankers’ speeches worldwide. BOC Gov Council Member Lane, U.S. FOMC officials, is due to speak today. Simultaneously, the main highlight of the day is likely to be ECB President Lagarde Speaks and Unemployment Claims from the U.S. economy.

Economic Events to Watch Today  

 

EUR/USD – Daily Analysis

The EUR/USD pair was closed at 1.17068 after placing a high of 1.17576 and a low of 1.16883. Overall the movement of the EUR/USD pair remained bearish throughout the day. The EUR/USD pair dropped on Thursday to its nine-day lowest level over the strength of the U.S. dollar and rising fears of a second wave of coronavirus in Europe. 

The U.S. dollar was strong across the board on Thursday, with the market ruling out the chance of more fiscal stimulus before the November elections despite the surge in coronavirus cases. Furthermore, the unexpected rise in the Philadelphia Fed Manufacturing Index also helped raise the U.S. dollar across the board on Thursday. At 17:30 GMT, it raised to 32.3 in October against the expectations of 14.4 and supported the U.S. dollar. The advanced index encouraged hopes that the U.S. economy could demonstrate greater resilience in the year’s final months.

This raised the U.S. dollar despite the rise in initial jobless claims and weighed on EUR/USD pair.

Meanwhile, the E.U. Summit started on Thursday. E.U. leaders met in Brussels to seek a way out of the Brexit impasse as the bloc remained divided over-ambitious targets to slash greenhouse gas emissions.

E.U. leaders also agreed to extend the trade negotiations with Britain. In a joint statement, E.U. leaders called on the U.K. to make the necessary moves to make an agreement possible and shift from their red lines to make a Brexit deal possible.

The E.U. chief negotiator Michel Barnier said that he wanted talks to continue with the U.K. till next month. Whereas, the German Chancellor Angela Merkel said that the E.U. should also compromise with the U.K. to reach a final agreement. On the data front, the French Final CPI for September came in line with -0.5% expectations. The data from Europe failed to impact the prices of a single currency.

Moreover, the European Central Bank President Christine Lagarde said on Thursday that ECB would be prepared to inflict additional emergency measures to seize the economic fallout from the coronavirus crisis, with the region facing a rapid surge in coronavirus infections. As per the World Health Organization, Europe has recorded more than 7.4 million coronavirus cases, with more than 251000 deaths and an alarming hospitalization rate. Lagarde said that as the second wave of coronavirus was hitting Europe’s coastline, ECB should make sure all the resources that ECB has available will be used to deal with the situation. She added that many resources, including asset purchases and interest rates, were still available, and ECB was ready to use them in need.

The ECB’s concerns and readiness to use further stimulus in need also weighed on Euro currency and dragged the EUR/USD pair downward.

Daily Technical Levels

Support Resistance

1.1676     1.1748

1.1646     1.1790

1.1605     1.1820

Pivot point: 1.1718

EUR/USD– Trading Tip

The EUR/USD is trading at 1.1706 level, holding above an immediate double bottom support level of 1.1693. The U.S. dollar is likely to show some volatility during the day on the back of high and medium impact economic events from the United States. A stronger dollar may trigger a selling trend until the 1.1656 level, while the resistance can be found around 1.1725 and the 1.1748 levels.

GBP/USD – Daily Analysis

The GBP/USD pair was closed at 1.29037 after placing a high of 1.30299 and a low of 1.28903. Overall the movement of the GBP/USD pair remained bearish throughout the day. The British Pound fell dramatically against the U.S. dollar on Thursday after the E.U. leaders urged U.K. to make necessary moves to secure an agreement instead of committing to work intensively with the U.K. to reach a trade deal. 

After the first day of the E.U. Summit, the chief EU negotiator Michel Barnier said that the level playing field, fisheries, and governance issues remained, as the key sticking points that held up the progress on trade talks. E.U. officials also criticized the U.K. Brexit negotiator David Frost and called on the U.K. to make further concessions to reach a deal on trade. Prime Minister Boris Johnson will announce his decision on whether the U.K. will walk away or continue talks on Friday.

One of many reasons behind the lack of progress in talks was the U.K. facing an aggressive second wave of the coronavirus that has forced the government to impose lockdown restrictions that could slow the recovery.

In Great Britain, talks continued between the government and local leaders over expanding the strictest coronavirus restrictions to more parts of England. The rising number of coronavirus cases in the U.K. raised the need for restrictions that will affect the economic recovery. These recovery fears weighed on local currency and ultimately dragged the GBP/USD pair on the downside.

On the data front, the C.B. Leading Index from the United Kingdom came in as 0.5% for August compared to July’s 0.8% and weighed on GBP that added further pressure on GBP/USD pair. From the U.S. side, the Philly Fed Manufacturing Index rose in October to 32.3 from September’s 15.0, and the forecasted 14.4 supported the U.S. dollar. The strong U.S. dollar added further strength to the rising GBP/USD pair on Thursday.

Meanwhile, the U.S. dollar was also strong onboard after Nancy Pelosi said that Trump only wanted to secure his position. That is why he was forcing a smaller stimulus package ahead of elections. She added that he did not have any concern about the struggling Americans and refused to pass a half stimulus measure. These lingering tensions confusion related to U.S. stimulus measures raised uncertainty and supported the U.S. dollar. The main driver of the GBP/USD pair’s downward momentum on Thursday was E.U. leaders’ calls for the U.K. to make necessary moves to reach consensus on the Brexit deal and the rising number of restrictions in England. 

Daily Technical Levels

Support Resistance

1.2859     1.3000

1.2804     1.3086

1.2718     1.3141

Pivot point: 1.2945

GBP/USD– Trading Tip

The GBP/USD is trading at 1.2890 level, having supported over 1.2890 level. Above this, the next target is likely to be found around 1.2957 and 1.3020 level. Simultaneously, a bearish breakout of the 1.2890 support level can extend selling bias until 1.2840. The bearish bias remains solid below the 1.2890 mark. The cable may exhibit a breakout on the release of U.S. related economic events, especially the retail sales and consumer confidence. The leading indicators, such as MACD and RSI, support selling; therefore, it’s worth taking a selling trade below 1.2880 today. 

USD/JPY – Daily Analysis

The USD/JPY pair was closed at 105.420 after placing a high of 105.491 and a low of 105.060. Overall the movement of the USD/JPY pair remained bullish throughout the day. On Thursday, the U.S. dollar appreciated across the board due to its safe-haven status after the rising concerns about tightened coronavirus restrictions. The rising number of coronavirus infections with little expectations of a fiscal stimulus deal kept the investors away from risk.

On Thursday, the U.S. Treasury Secretary Steven Mnuchin said he was open to a targeted deal with the House Speaker Nancy Pelosi. He said that Pelosi should move 300 billion dollars to needy Americans from the previous fund’s leftovers. In response, she replied that Donald Trump only wanted to seek a symbolic victory and genuinely had no intentions to help the struggling poor people. Pelosi also said that she would not go for a half stimulus measure and stick to her $2.2 trillion packages.

These tensions surrounding the U.S. stimulus package dropped the hopes that any measure will release before elections and supported the U.S. dollar. The rising U.S. dollar help provides further support to the USD/JPY pair.

The Philly Fed Manufacturing Index for October raised to 32.3 from the forecasted 14.4 and the previous 15.0 and supported the U.S. dollar. At 17:30 GMT, the Unemployment Claims from the U.S. for last week raised to 898K from the forecasted 810K and weighed on the U.S. dollar. The Empire State Manufacturing Index from the U.S. dropped to 10.5 from the expected 13.9 and weighed on the U.S. dollar. The Import Prices from September remained flat with the expectations of 0.3%. From the Japan side, the Tertiary Industry Activity for August was released at 09:30 GMT that fell short of expectations of 1.2% and came in as 0.8% and weighed on the Japanese Yen that ultimately supported the additional gains in USD/JPY pair on Thursday.

Traders ignored the rising number of unemployment claims and shifted their focus towards the rising Philly Fed Manufacturing Index and supported the USD/JPY pair’s bullish movement. The advanced index refreshed hopes that the U.S. economy could reveal greater flexibility in the final months of the year.

Furthermore, the Dallas Federal Reserve President Robert Kaplan said that minorities and women who have been affected by the job losses due to the coronavirus pandemic would need help to get back to work. Kaplan said that the economic activities were shifting more towards the less dependent sectors on face-to-face interaction due to the fears of coronavirus spread. Whereas, the Fed’s vice chair of supervision, Randal Quarles, said a need for more aid in the short-term funding market.

The rising number of coronavirus in the absence of any approved vaccine has raised fears for an economic recovery that has already been under pressure due to ongoing geopolitical tensions, the trade war between the U.S. & China, and the deep recession. These uncertainties kept the U.S. dollar supportive due to its safe-haven status and helped the USD/JPY pair post gains on Thursday.

Daily Technical Levels

105.05     105.70

104.82     106.12

104.40     106.36

Pivot point: 105.47

USD/JPY – Trading Tips

The USD/JPY traded sideway, with a neutral bias within a narrow trading range of 105.600 level to the 105.250 mark. Most of the selling triggered following the USD/JPY disrupted an upward channel at the 105.900 mark on Monday. The USD/JPY is trading at 105.459 marks, the support that’s was prolonged by double bottom mark on the two-hourly charts. A bearish violation of the 105.450 mark may encourage additional selling unto the 105.070 support level as the MACD, and the 50 periods EMA are in support of selling sentiment today. Let’s consider opening sell trade beneath 105.60 and buying over 105.050 level today. Good luck!  

Categories
Forex Signals

AUD/USD Breaks Below Upward Channel – Braceof Sell Upon Retracement! 

During Thursday’s early European trading hours, the AUD/USD currency pair failed to stop its previous session bearish moves and took further offers near well below 0.7100 level, mainly due to the disappointing release of employment details, which showed that Australia’s economy lost 29.5K jobs in September. This, in turn, undermined the Asutliann dollar and contributed to the currency pair declines. Apart from this, the increasing probabilities of an interest rate cut by the Reserve Bank of Australia in November also played its major role in undermining the Australian dollar. Across the pond, the prevalent risk-off market sentiment, triggered by the worsening coronavirus (COVID-19) conditions in Europe and the U.K., exerted some additional pressure on the perceived riskier Aussie and dragged the currency pair below 0.7100 mars.

During Thursday’s early European trading hours, the AUD/USD currency pair failed to stop its previous session bearish moves and took further offers near well below 0.7100 level, mainly due to the disappointing release of employment details, which showed that Australia’s economy lost 29.5K jobs in September. This, in turn, undermined the Asutliann dollar and contributed to the currency pair declines. Apart from this, the increasing probabilities of an interest rate cut by the Reserve Bank of Australia in November also played its major role in undermining the Australian dollar. Across the pond, the prevalent risk-off market sentiment, triggered by the worsening coronavirus (COVID-19) conditions in Europe and the U.K., exerted some additional pressure on the perceived riskier Aussie and dragged the currency pair below 0.7100 mars.

During Thursday’s early European trading hours, the AUD/USD currency pair failed to stop its previous session bearish moves and took further offers near well below 0.7100 level, mainly due to the disappointing release of employment details, which showed that Australia’s economy lost 29.5K jobs in September. This, in turn, undermined the Asutliann dollar and contributed to the currency pair declines. Apart from this, the increasing probabilities of an interest rate cut by the Reserve Bank of Australia in November also played its major role in undermining the Australian dollar. Across the pond, the prevalent risk-off market sentiment, triggered by the worsening coronavirus (COVID-19) conditions in Europe and the U.K., exerted some additional pressure on the perceived riskier Aussie and dragged the currency pair below 0.7100 mars.

However, the global risk sentiment was further pressured by the fading hopes of additional U.S. fiscal stimulus. On the data front, the economy has lost 29.5K jobs in September against expectations for 35K losses and down from August’s 111K additions. The seasonally adjusted Unemployment Rate surged to 6.9% against expectations for a rise to 7.1% from 6.8%. In the meantime, the part-time jobs dropped by 9.4K in September against 74.8K additions in August. At the same time, the full-time employment sank by 20.1K against 36.2K additions in August. 

Considering the recent condition of the economy, the RBA’s Governor Lowe said that the benchmark interest rate could be cut down to 0.10% from the current record low of 0.25%, which undermined the Australian dollar exerted some additional pressure on the currency pair. The market trading sentiment remains depressed during the early European session as the condition of the second wave of coronavirus infections in Europe and the U.K. getting worse time by time, which suggests that the local lockdowns cannot tame the pandemic, which in turn suggests fresh national activity restrictions. 

In the meantime, the fears of a no-deal Brexit and the dovish tone of major central bankers pushing for further fiscal help also exert downside pressure on the market trading sentiment, which in turn undermined perceived riskier Aussie and dragged the currency pair below 0.7100 marks.

Additionally, the long-lasting inability to pass the U.S. fiscal package also weighed on the risk sentiment, which eventually undermined the perceived riskier Australian dollar and contributed to the currency pair gains. Despite U.S. President Donald Trump’s recent push to break the coronavirus stimulus deadlock, the opposition Democratic Party remains up in its demands. As per the latest report, the U.S. Treasury Secretary Mnuchin recently blamed the opposition to put obstacles for the much-awaited aid package before the presidential election to keep President Donald Trump lagging the election polls. 

At the US-China front, the renewed concerns over worsening diplomatic tensions between the world’s two largest economies also exerted downside pressure on the market trading, which keeps the AUD/USD currency pair under pressure. Other than the US-China tussle, Australia and China are also loggerheads with each other.

As a result, the broad-based U.S. dollar succeeded in extending its Asian session loss gains es and took some further bid during the early European session as investors still prefer the safe-haven assets in the wake of the risk-off market sentiment. However, the U.S. dollar gains seem rather unaffected by the intensifying political uncertainty ahead of the upcoming U.S. presidential election on November 3. However, the incoming polls tend to recommend a clear-cut presidential success for the Democrat nominee Joe Biden, which might cap additional upside momentum for the U.S. dollar. However, the U.S. dollar gains become the key factor that kept the currency pair under pressure. At the same time, the U.S. Dollar Index that tracks the greenback against a bucket of other currencies inched up 0.02% to 93.398 by 9:58 PM ET (1:58 AM GMT).

Looking forward, the traders will keep their eyes on the weekly U.S. Initial Jobless Claims, which is expected 825K versus 840K prior. Apart from this, the continuous drama surrounding the US-China relations and updates about the U.S. stimulus package will not lose their importance. 


Daily Support and Resistance

S1 0.7095

S2 0.7133

S3 0.715

Pivot Point 0.717

R1 0.7187

R2 0.7208

R3 0.7245

The AUD/USD pair has violated the double bottom support level of 0.7150 level, and below this, the pair may drop further until the next support area of 0.7098 level. On the higher side, the pair may find resistance at 0.7150 and 0.7190 level. The bearish bias remains solid today, especially below 0.7150.

Entry Price – Buy 105.245

Stop Loss – 105.645

Take Profit – 104.845

Risk to Reward – 1:1

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

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

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

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

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

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Forex Signals

USD/JPY Under Pressure – Downward Channel Weights! 

The USD/JPY pair was closed at 105.161 after placing a high of 105.514 and a low of 105.034. Overall the movement of the USD/JPY pair remained bearish throughout the day. The rising uncertainties in the market related to US stimulus, vaccine development, global economic recovery, and the US November presidential elections gave a push to safe-haven appeal that supported safe-haven Japanese Yen and weighed on USD/JPY pair.

The USD/JPY pair was closed at 105.161 after placing a high of 105.514 and a low of 105.034. Overall the movement of the USD/JPY pair remained bearish throughout the day. The rising uncertainties in the market related to US stimulus, vaccine development, global economic recovery, and the US November presidential elections gave a push to safe-haven appeal that supported safe-haven Japanese Yen and weighed on USD/JPY pair.

The USD/JPY pair was closed at 105.161 after placing a high of 105.514 and a low of 105.034. Overall the movement of the USD/JPY pair remained bearish throughout the day. The rising uncertainties in the market related to US stimulus, vaccine development, global economic recovery, and the US November presidential elections gave a push to safe-haven appeal that supported safe-haven Japanese Yen and weighed on USD/JPY pair.

The currency pair dropped on Wednesday to one week’s lowest level as the hopes for the next round of US stimulus package before elections fell after Nancy Pelosi said that the newly proposed package of $1.8 trillion by President Trump would be not sufficient to provide support to economic recovery from the pandemic and deep recession.

Another reason behind the faded risk sentiment was the latest news about the vaccine trials from different candidates. Earlier this week, Johnson & Johnson halted their coronavirus vaccine’s clinical trials due to an unexpected illness in one of the participants. And on Wednesday, the Eli Lilly and Co. also stopped its vaccine’s trials for coronavirus, and this raised concerns that without a vaccine, the economic recovery will be slow. These concerns added in demand for safe-haven and raised the Japanese Yen that ultimately weighed on the USD/JPY pair.

On the data front, the Revised Industrial Production from Japan for August dropped to 1.0% from the forecasted 1.7% and weighed on the Japanese Yen. The PPI and the Core PPI data from the United States for September raised to 0.4% from 0.2% of forecasts and supported the US dollar. Macroeconomic data from both sides supported the USD/JPY pair but failed to reverse the direction as the investors were focusing on the rising number of uncertainties in the market.

Meanwhile, the 2020 World Bank Group-IMF Annual Meetings started on October 12th to 18th, in which global finance leaders warned that the fragile recovery would be crushed by the failure to stop the spread of coronavirus, maintain stimulus, and rising debts in developing nations.

Global poverty has been raised to the highest levels for the first time in 2 decades due to the coronavirus crisis. Developing nations had been hit hard by the pandemic as the debts for recovering through the crisis rose in developing nations to alarming levels. The annual meetings’ agenda was to take necessary actions to build a strong foundation for a strong recovery that would help all countries.

The US Treasury Secretary Steven Mnuchin urged both global institutions IMF and World Bank on Wednesday to work thoughtfully within their existing resources to battle the coronavirus pandemic. Mnuchin also urged G20 nations to approve a proposed debt restructuring framework.

The rising hopes that developing nations will be getting help to recover from the pandemic also raised the market’s risk sentiment that limited additional losses in USD/JPY prices on Wednesday.

Furthermore, on Wednesday, the Federal Reserve Vice Chair Richard Clarida said that the US economic data has been shockingly strong since May, but the output will still take another year to climb back to its pre-pandemic level. Clarida’s comments raised uncertainty over recovery and supported the Japanese Yen that weighed on the USD/JPY pair.


Daily Support and Resistance

S1 104.26

S2 104.74

S3 104.93

Pivot Point 105.22

R1 105.41

R2 105.7

R3 106.18

The USDJPY pair is trading with a selling bias below an immediate resistance level of 105.349 level. On the 4 hour timeframe, the USD/JPY has formed a downward channel that’s extending resistance at 105.349. Closing of candles beneath this level is likely to keep the USD/JPY pair in a selling mode until the 105.050 mark, conversely, the bullish breakout of the 105.349 level may lead the pair further higher towards the 105.580 level. 

Entry Price – Buy 105.245

Stop Loss – 105.645

Take Profit – 104.845

Risk to Reward – 1:1

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

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

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

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

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

Categories
Forex Market Analysis

Daily F.X. Analysis, October 15 – Top Trade Setups In Forex – ECB President Lagarde Speaks

On the news side, the economic calendar is likely to offer another round of central bankers’ speeches worldwide. BOC Gov Council Member Lane, U.S. FOMC officials, is due to speak today. Simultaneously, the main highlight of the day is likely to be ECB President Lagarde Speaks and Unemployment Claims from the U.S. economy.

On the news side, the economic calendar is likely to offer another round of central bankers’ speeches worldwide. BOC Gov Council Member Lane, U.S. FOMC officials, is due to speak today. Simultaneously, the main highlight of the day is likely to be ECB President Lagarde Speaks and Unemployment Claims from the U.S. economy.

On the news side, the economic calendar is likely to offer another round of central bankers’ speeches worldwide. BOC Gov Council Member Lane, U.S. FOMC officials, is due to speak today. Simultaneously, the main highlight of the day is likely to be ECB President Lagarde Speaks and Unemployment Claims from the U.S. economy.

Economic Events to Watch Today  

 

EUR/USD – Daily Analysis

The EUR/USD pair was closed at 1.17459 after placing a high of 1.17708 and a low of 1.17197. Overall the movement of the EUR/USD pair remained flat yet slightly bullish throughout the day. The EUR/USD pair followed its previous day’s bearish trend and extended its decline in the first half of the day but started to recover losses in the second half of the day as the U.S. dollar became weak. However, the gains were also limited due to the increased uncertainty in the market related to Europe’s coronavirus situation.

The risk sentiment in the market supported the consolidated movement of the EUR/USD pair on Wednesday and turned the prices on the upside after the European Union agreed to pay more than 1 billion euros, about 1.2 billion dollars to Gilead GILD.O. The amount will be paid for a six-month supply of its antiviral drug Remdesivir shortly before the publication of the coronavirus medication’s biggest trial. This news helped EUR/USD pair to recover some losses of the day on Wednesday.

Other than that, the U.S. dollar was weak across the board on Wednesday after the Federal Reserve Vice Chairman Richard Clarida said that the U.S. economic data since May has been surprisingly strong; however, it will still take another year for output to reach back to its pre-pandemic level. 

The rising uncertainty about the economic recovery weighed on risk sentiment and dragged the EUR/USD prices on Wednesday to the downward direction.

On the data front, at 14:00 GMT, the Industrial Production from Eurozone dropped to 0.7% from the expected 0.8% and weighed on the Euro currency. At 17:30 GMT, the Core PPI & PPI data from the U.S. for September raised to 0.4% from the projected 0.2% and supported the U.S. dollar. The macroeconomic data from both sides weighed on EUR/USD pair and kept the pair under pressure on Wednesday.

On October 14, the European Central Bank President Christine Lagarde said that European countries would need to invest 290 billion euros each year to meet their commitments under the 2015 Paris climate agreement. 

The little gains in EUR/USD could also be attributed to the latest Brexit optimism that emerged after U.K. Prime Minister Boris Johnson suggested that the U.K. continue to work on Brexit deal past the October 15 deadline. This raised hopes that no-deal will be out of option soon and raised EUR/USD pair on Wednesday.

Furthermore, the downward pressure on the EUR/USD pair was due to the latest moves from Eli Lilly and Co. to halt the government-sponsored clinical trials of its coronavirus vaccine. This move after a day when Jonson & Johnson halted its vaccine’s clinical trials due to an unexpected illness found in one participant raised economic recovery concerns and weighed on the riskier EUR/USD pair.

Daily Technical Levels

Support Resistance

1.1720     1.1773

1.1694     1.1798

1.1668     1.1825

Pivot point: 1.1746

EUR/USD– Trading Tip

The EUR/USD pair traded sharply bearish to break below a solid support area of 1.1780 extended by an upward channel. On the lower side, the EUR/USD is gaining support at the 1.1732 level, and the bearish breakout of the 1.1732 level may lower the EUR/USD price further than the 1.1697 level. The MACD and RSI favor selling bias, but we may see a slight upward movement until the 1.1764 level before seeing further selling in the pair.

GBP/USD – Daily Analysis

The GBP/USD closed at 1.30113 after placing a high of 1.30642 and a low of 1.28627. Overall the movement of the GBP/USD pair remained bullish throughout the day. The currency pair GBP/USD raised on Wednesday amid the renewed hopes of a Brexit deal and the U.S. dollar weakness. On Wednesday, the U.S. dollar was weak as the U.S. Treasury Secretary Steven Mnuchin said that the U.S. stimulus package would not be delivered before November Presidential elections. The hopes for stimulus measure faded away and weighed on the U.S. dollar, ultimately helping the GBP/USD pair’s upward momentum.

Meanwhile, the upward trend in GBP/USD pair was also supported by the latest extension to the reach a Brexit deal by PM Boris Johnson. The U.K. government allowed Brexit talks to extend beyond the former deadline of October 15, announced by the PM Boris Johnson.

The extension raised renewed hopes to reach a Brexit deal and supported the local currency that favored the additional gains in GBP/USD pair.

However, the gains were limited by the rise of coronavirus cases in the United Kingdom, as it reported almost 20,000 new coronavirus cases on Wednesday. PM Boris Johnson said on the issue of coronavirus spread that the latest three-tier regional approach was productive in controlling the spread as the aim was to avoid the nationwide lockdown.

Moreover, the Brexit headlines overshadowed the coronavirus threats, and the pair kept moving in the upward direction on Wednesday. The main operator of the GBP/USD pair on Wednesday was the optimism about the Brexit deal in the market. On the flip side, the Bank of England chief Andy Haldane said that he was hopeful that Britain’s economic recovery from coronavirus’s initial impact would persist despite the risks. He said it because of the adaptability of businesses and households in the region.

He said that the consumption patterns and work practices of Britain’s had been changed since March lockdowns. This positive comment also raised the British Pound bars that helped the GBP/USD pair’s upward movement. The Core PPI for September and the PPI data rose to 0.4% from the forecasted 0.2% and capped further gains in GBP/USD pair from the U.S. side.

However, the comments from Federal Reserve member Clarida that it will take another year for economic output to reach its pre-pandemic level weighed on the U.S. dollar that helped additional gains in GBP/USD pair on Wednesday.

Daily Technical Levels

Support Resistance

1.2894     1.3098

1.2777     1.3183

1.2691     1.3301

Pivot point: 1.2980

GBP/USD– Trading Tip

The GBP/USD is trading at 1.3020 level, having supported over 1.3005 level. Above this, the next target is likely to be found around 1.3050 and 1.3070 level. At the same time, a bearish breakout of the 1.3005 support level can extend selling bias until 1.2959. The bullish bias remains strong over 1.3005. The leading indicators, such as MACD and RSI, support selling; therefore, it’s worth taking a selling trade below 1.2944 today. 

USD/JPY – Daily Analysis

The USD/JPY currency pair successfully stopped its previous day losing streak and took some fresh bids near two-week highs, around the 105.30 regions in the last hour. However, the reason for the pair’s prevalent bullish bias could be attributed to the stronger U.S. dollar. Hence, the U.S. dollar remained supportive on the back of fading hopes over additional U.S. fiscal stimulus measures and surging COVID-19 cases in the leading European countries, which keeps the market trading sentiment under pressure and increase demand for traditional safe-haven assets. Apart from this, the latest halts in the COVID-19 vaccine trials are also weighing on the market risk tone. On the contrary, the prevalent risk-off market sentiment underpinned demand for traditional safe-haven assets, including the Japanese yen, which could be considered one of the key factors that kept the lid on any additional gains currency pair. At this particular time, the USD/JPY is currently trading at 105.25 and consolidating in the range between 105.10 – 105.30.

However, the market risk sentiment extended the previous two-day slumps to 3,478, down 0.08% intraday on the day. The market trading sentiment was being pressured by the fears of no U.S. stimulus ahead of the U.S. presidential election. Moreover, the S&P 500 Futures’ losses were further bolstered by the intensifying coronavirus (COVID-19) conditions in Europe amid pauses in the (COVID-19) virus vaccine trials. In the meantime, the on-going Brexit woes and downbeat U.S. inflation also exerted downside pressure on the market trading sentiment, which underpinned the demand for traditional safe-haven assets, including the U.S. dollar and Japanese yen.

As per the latest report, the U.S. Treasury Secretary Steve Mnuchin blamed the opposition Democratic Party to stop the stimulus package from keeping President Donald Trump lagging the election polls. Across the pond, the rising COVID-19 cases in notable European countries, such as Spain, France, Germany, and the U.K., orders for strict local lockdowns in recent days. Whereas, Johnson and Johnson’s pause in vaccine trials and Eli Lily also dragged the market sentiment down.

Moreover, the market risk-off sentiment was further bolstered by the reports suggesting that no deal was signed between the European Union (E.U.) and the U.K. Furthermore, the intensifying tussle between the U.S. and China also exerted downside pressure on the market. This, in turn, underpinned the safe-haven Japanese yen, which becomes the key factor that kept the lid on any additional gains in the currency pair.

The broad-based U.S. dollar managed to keep its gains throughout the Asian session as the traders still cheering the risk-off marker mood. However, the U.S. dollar gains seem rather unaffected by the intensifying political uncertainty ahead of the upcoming U.S. presidential election on November 3. However, the incoming polls suggest a clear-cut presidential victory for the Democrat candidate Joe Biden, which might cap further upside momentum for the U.S. dollar. However, the U.S. dollar gains become the key factor that helps the currency pair to stay bid. Simultaneously, the U.S. Dollar Index that tracks the greenback against a bucket of other currencies inched up 0.02% to 93.398 by 9:58 PM ET (1:58 AM GMT).

Looking forward, the traders will keep their eyes on the weekly U.S. Initial Jobless Claims, which is expected 825K versus 840K prior. Apart from this, the continuous drama surrounding the US-China relations and updates about the U.S. stimulus package will not lose their importance. 

Daily Technical Levels

105.05 105.70

104.82 106.12

104.40 106.36

Pivot point: 105.47

USD/JPY – Trading Tips

The USD/JPY traded sideway, with a neutral bias within a narrow trading range of 105.600 level to the 105.250 mark. Most of the selling triggered following the USD/JPY disrupted an upward channel at the 105.900 mark on Monday. The USD/JPY is trading at 105.459 marks, the support that’s was prolonged by double bottom mark on the two-hourly charts. A bearish violation of the 105.450 mark may encourage additional selling unto the 105.070 support level as the MACD, and the 50 periods EMA are in support of selling sentiment today. Let’s consider opening sell trade beneath 105.60 and buying over 105.050 level today. Good luck!  

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Forex Signals

GBP/USD Breaking Below 1.3000 Support – Is It Worth Selling? 

In the European trading session, the GBP/USD currency pair managed to stoop its previous session declining streak and refresh the intra-day high around mid-1.2900 level mainly due to easing fears of a no-deal Brexit, which initially underpinned the Pound and contributed to the currency pair gains. This was witnessed after the latest reports suggesting that the European Union leaders will be meeting in Brussels on Thursday and Friday to discuss Brexit and label progress in talks with the U.K. 

In the European trading session, the GBP/USD currency pair managed to stoop its previous session declining streak and refresh the intra-day high around mid-1.2900 level mainly due to easing fears of a no-deal Brexit, which initially underpinned the Pound and contributed to the currency pair gains. This was witnessed after the latest reports suggesting that the European Union leaders will be meeting in Brussels on Thursday and Friday to discuss Brexit and label progress in talks with the U.K. 

In the European trading session, the GBP/USD currency pair managed to stoop its previous session declining streak and refresh the intra-day high around mid-1.2900 level mainly due to easing fears of a no-deal Brexit, which initially underpinned the Pound and contributed to the currency pair gains. This was witnessed after the latest reports suggesting that the European Union leaders will be meeting in Brussels on Thursday and Friday to discuss Brexit and label progress in talks with the U.K. 

On the other hand, the broad-based U.S. dollar fresh weakness, backed by the U.S. economic recovery worries, also played a major role in supporting the currency pair. Moreover, the U.S. dollar losses were further bolstered after the Bank of America Corp (N: BAC) reported a 15.8% drop in quarterly profit, which instantly raised extra doubts about the U.S. economic recovery pushed the U.S. dollar down. At a particular time, the GBP/USD currency pair is currently trading at 1.2978 and consolidating in the range between 1.2864 – 1.2980.

As we already mentioned, the GBP/USD currency pair witnessed strong progress over the last hours, in the wake of the latest Brexit headlines ahead of the critical meeting between the UK PM Boris Johnson and the E.U. Commission President Ursula von der Leyen later on Wednesday. As per the latest report, the 27 national leaders will tell their negotiators to extend conversations with the U.K. to reach an agreement from January 1, 2021. They will also decide to step up contingency preparations for an abrupt economic split without a deal to avoid tariffs or quotas. These positive headlines instantly underpinned the British Pound and pushed the currency pair higher. 

Across the pond, the Bank of U.S. reported a 15.8% drop in quarterly profit on the day, hit by higher provisions for credit losses due to the COVID-19 pandemic, which in turn, adds burden around the broad-based U.S. dollar. Detail suggested, “Net income applicable to common shareholders dropped to $4.44 billion, or 51 cents per share, in the 3rd-quarter ended September 30, from $5.27 billion, or 56 cents per share, a year earlier.

Despite the risk-off market sentiment, the broad-based U.S. dollar failed to extend its long-day bullish rally and edged lower during the European session amid Bank of America profit falls on pandemic woes. On the other hand, the concerns about the ever-increasing number of coronavirus cases and weakness in the U.S. Consumer Price Index (CPI) also weighed on the broad-based U.S. dollar. However, the losses in the U.S. dollar kept the currency pair higher. Whereas the U.S. Dollar Index that tracks the greenback against a basket of other currencies down to 93.493.

On the contrary, the COVID-19 cases in the U.K. continue to pick up the pace as the U.K. reported the highest new cases since June on the previous day, with 143 deaths and 17,234 new confirmed cases. As in result, the opposition Labour Party ordered the national lockdown for at least two weeks. While considering the previous day’s downbeat employment data, the ruling Conservatives imposed local lockdowns. Hence, the renewed coronavirus worries became the key factor that kept the lid on any additional currency pair gains.


Daily Support and Resistance

S1 1.2683

S2 1.2829

S3 1.2883

Pivot Point 1.2976

R1 1.3029

R2 1.3122

R3 1.3268

Entry Price – Buy 1.29966

Stop Loss – 1.30366

Take Profit – 1.29566

Risk to Reward – 1:1

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

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

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

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

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

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Forex Signals

USD/CHF Failed to Extend Previous Session Gains – Downward Channel In Play

Today in the European trading session, the USD/CHF currency pair stopped its previous session bullish momentum. They edged lower below the 0.9150 level, mainly due to the risk-off market sentiment, triggered by lack of additional U.S. fiscal stimulus and the US-China tussle, which eventually underpinned the safe-haven Swiss franc and kept the currency pair under pressure. Moreover, the market trading sentiment was further pressured by the downbeat reports that Johnson & Johnson paused the coronavirus vaccine trails, which also burdened the currency pair. 

Today in the European trading session, the USD/CHF currency pair stopped its previous session bullish momentum. They edged lower below the 0.9150 level, mainly due to the risk-off market sentiment, triggered by lack of additional U.S. fiscal stimulus and the US-China tussle, which eventually underpinned the safe-haven Swiss franc and kept the currency pair under pressure. Moreover, the market trading sentiment was further pressured by the downbeat reports that Johnson & Johnson paused the coronavirus vaccine trails, which also burdened the currency pair. 

Today in the European trading session, the USD/CHF currency pair stopped its previous session bullish momentum. They edged lower below the 0.9150 level, mainly due to the risk-off market sentiment, triggered by lack of additional U.S. fiscal stimulus and the US-China tussle, which eventually underpinned the safe-haven Swiss franc and kept the currency pair under pressure. Moreover, the market trading sentiment was further pressured by the downbeat reports that Johnson & Johnson paused the coronavirus vaccine trails, which also burdened the currency pair. 

Across the pond, the bearish tone around the currency pair could also be associated with the fears of national lockdowns in Europe, which add further burden to the trading sentiment and dragged the currency lower. On the contrary, the broad-based U.S. dollar strength, backed by the market risk-on tone, becomes the key factor that kept the lid on any additional losses in the pair.

However, the equity market has been flashing red since the day started. Although, the reason could be associated with the major negative catalysts, including the further delay in the much-awaited coronavirus (COVID-19) relief package and the resurgence of COVID-19 new cases in the U.S. and Europe, which keep fueling the worries over the global economic growth. Apart from this, the fears of the U.K. and the European Union’s (E.U.) Brexit talks and the latest pause in the COVID-19 vaccine trials also add pessimism around the market trading sentiment. This, in turn, provided a boost to the safe-haven Swiss Fran and exerted some additional pressure on the currency pair.

As in result, the broad-based U.S. dollar managed to keep its gains throughout the Asian session as the traders still cheering the risk-off marker mood. However, the U.S. dollar gains seem relatively unaffected by the intensifying U.S. political uncertainty. However, the incoming polls suggest a clear-cut presidential victory for the Democrat candidate Joe Biden, which might cap further upside momentum for the U.S. dollar. However, the U.S. dollar gains become the key factor that helps the currency pair limit its more profound losses. Simultaneously, the U.S. Dollar Index that tracks the greenback against a bucket of other currencies rose by 0.01% to 93.550 by 10:12 PM ET (2:12 AM GMT).

Looking forward, the traders will keep their eyes on the release of the US PPI figures for September. Meanwhile, FOMC members and the RBNZ policymaker’s scheduled speeches will key to watch for some meaningful trading direction. Apart from this, the ongoing drama surrounding the US-China relations and updates about the U.S. stimulus package will not lose their importance.

Daily Support and Resistance

S1 0.9006

S2 0.9069

S3 0.9109

Pivot Point 0.9132

R1 0.9172

R2 0.9195

R3 0.9258


The USD/CHF is trading with a bearish bias at 0.9125, holding below an immediate resistance level of 0.9157 resistance area. Closing of candles below this level may drive selling bias until the 0.9086 level. On the two-hourly timeframes, the USD/CHF pair has formed a downward channel that is likely to drive selling bias, and that’s one reason we opened a selling signal in the USD/CHF pair. Here’s a trading plan… 

Entry Price – Sell 0.91392

Stop Loss – 0.91792

Take Profit – 0.90992

Risk to Reward – 1:1

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

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

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

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

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

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Forex Signals

Bearish Bias Dominates EUR/JPY – Downward Channel In Play! 

Today in the early European trading session, the EUR/JPY currency pair failed to stop its previous session losing streak and picked up further offers around below the 124.00 marks. However, the bearish sentiment around the currency pair could be attributed to the prevalent market risk-off sentiment, which benefitted the safe-haven Japanese yen and exerted some heavy pressure on the currency pair. Thus, the market trading sentiment was being pressured by the US policymakers’ failures to offer the much-awaited fiscal stimulus as well as the intensification of the Sino-American tussle also weighed on the market trading tone. 

Today in the early European trading session, the EUR/JPY currency pair failed to stop its previous session losing streak and picked up further offers around below the 124.00 marks. However, the bearish sentiment around the currency pair could be attributed to the prevalent market risk-off sentiment, which benefitted the safe-haven Japanese yen and exerted some heavy pressure on the currency pair. Thus, the market trading sentiment was being pressured by the US policymakers’ failures to offer the much-awaited fiscal stimulus as well as the intensification of the Sino-American tussle also weighed on the market trading tone. 

Today in the early European trading session, the EUR/JPY currency pair failed to stop its previous session losing streak and picked up further offers around below the 124.00 marks. However, the bearish sentiment around the currency pair could be attributed to the prevalent market risk-off sentiment, which benefitted the safe-haven Japanese yen and exerted some heavy pressure on the currency pair. Thus, the market trading sentiment was being pressured by the US policymakers’ failures to offer the much-awaited fiscal stimulus as well as the intensification of the Sino-American tussle also weighed on the market trading tone. 

Whereas, the renewed halt in the trials of a vaccine for the highly contagious coronavirus diseases also played its major role in weakening the market risk mood, which in turn, adds further burden around the currency pair. Across the pond, the latest data from Germany’s Robert Koch Institute (RKI) fueled the market’s fears of a larger coronavirus (COVID-19) in Europe, which tends to undermine the shared currency and contributing to the currency pair losses. 

On the contrary, the positive remarks from the German Economy Ministry over the EUR economy become the key factor that helps the currency pair to limit its deeper losses. At this particular time, the EUR/JPY currency pair is currently trading at 123.76 and consolidating in the range between 123.64 – 123.97.

As we already mentioned that the market trading sentiment has been flashing mixed signals since the day started. Be it the failure of the American lawmakers to offer any positive announcement on the coronavirus (COVID-19) relief package or the fresh escalation in the Sino-American tussle, not to forget the downbeat US data, these all factors kept the market risk sentiment under pressure. This, in turn, benefitted the safe-haven Japanese yen and exerted some heavy pressure on the currency pair.

Most of the investors remain cautious on the back of the delay in the production of a vaccine for the highly contagious coronavirus diseases. This was witnessed after the Johnson & Johnson suspended clinical trials for its COVID-19 vaccine due to an unexplained illness. 

Moreover, the market trading sentiment was further bolstered by the rising coronavirus cases in the US and Europe, which has been fueling worries about global economic recovery. According to the coronavirus (COVID-19) data from Johns Hopkins University data., the number of global cases crossed 38 million as of Oct. 14. Whereas, the U.S. still not showing any signs of decreasing infection rates, which raised concerns over the economic recovery. 

Across the pond, the shared currency was being pressured by the latest data from Germany’s Robert Koch Institute (RKI), which fueled the market’s fears of a larger coronavirus (COVID-19) in Europe. As per the latest report, the daily new confirmed cases grew 5,132 to 334,585 in Europe while the death toll also rose by 40, taking the total to 9,677. 

On the contrary, the latest positive remarks from the German Economy Ministry over the EUR economy become the key factor that helps the currency pair to limit its deeper losses. As per the keywords, “the economy is expected to show by far the highest quarterly growth rate ever recorded in Q3, though indicators signal a slowed continuation of the recovery process in Q4.” He further added ” COVID-19 effects on the labor market are still significant, slight improvement is already apparent.

The US Michigan Consumer Sentiment Index for September, which is expected 75 versus 74.1 prior, will likely help resolve near-term USD moves. Furthermore, the risk catalyst like geopolitics and the virus woes, not to forget the Brexit, will also be key to watch for the fresh direction.


Daily Support and Resistance

S1 122.75

S2 123.4

S3 123.65

Pivot Point 124.05

R1 124.3

R2 124.71

R3 125.36

The EUR/JPY has already violated the double bottom support level of 123.922 level and closing of candle below this area is likely to drive selling trend until next support area of 123.350 level. On the further lower side, the EUR/JPY may find the next support at 123.270. 

Entry Price – Sell 123.81

Stop Loss – 124.21

Take Profit – 123.41

Risk to Reward – 1:1

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

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

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

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

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

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Forex Signals

AUD/NZD Failed To Gain Any Positive Traction – Quick Update on Signal! 

The AUD/NZD currency pair failed to extend its early-day winning streak and remain flat around 1.0753/70 region, mainly due to the risk-off market sentiment, which eventually undermined the perceived risk currency Australian dollar and contributed to the currency pair declines. However, the market trading sentiment was being pressured by the intensification of the Sino-American tussle, and the uncertainty over the American stimulus package also weighed on the market trading tone. 

The AUD/NZD currency pair failed to extend its early-day winning streak and remain flat around 1.0753/70 region, mainly due to the risk-off market sentiment, which eventually undermined the perceived risk currency Australian dollar and contributed to the currency pair declines. However, the market trading sentiment was being pressured by the intensification of the Sino-American tussle, and the uncertainty over the American stimulus package also weighed on the market trading tone. 

The AUD/NZD currency pair failed to extend its early-day winning streak and remain flat around 1.0753/70 region, mainly due to the risk-off market sentiment, which eventually undermined the perceived risk currency Australian dollar and contributed to the currency pair declines. However, the market trading sentiment was being pressured by the intensification of the Sino-American tussle, and the uncertainty over the American stimulus package also weighed on the market trading tone. 

Meanwhile, the downbeat reports that Johnson & Johnson paused the coronavirus vaccine trails also played its major role in weakening the market risk mood, which adds further burden around the currency pair. Across the pond, the bearish tone around the currency pair could also be associated with the fresh reports suggesting that Australia becomes the largest customer of New Zealand, which eventually underpinned the NZD currency and contributes to the currency pair losses. 

In the meantime, the election expectations in New Zealand also favored the NZD bulls as the current Prime Minister (PM) Jacinda Ardern is a market favorite due to her ability to safeguard, which keeps the NZD currency supportive and dragged the currency pair down. At the moment, the AUD/NZD currency pair is currently trading at 1.0771 and consolidating in the range between 1.0753 – 1.0775.

However, the market risk tone has been sluggish since the day started due to various factors. Be it the U.S. lawmakers’ failure to offer any positive announcement on the coronavirus (COVID-19) relief package or the fresh escalation in the Sino-American tussle, not to forget the delay in the COVID-19 vaccine, these all factors have been weighing on the market risk tone. This, in turn, underpinned the perceived risk currency Australian dollar and contributed to the currency pair declines. 

As per the latest report, the Eli Lilly and Co. (NYSE: LLY) paused the government-led clinical trial of its COVID-19 antibody treatment a day after Johnson & Johnson (NYSE: JNJ) delayed clinical trials for its COVID-19 vaccine due to an unexplained illness in a participant. This, in turn, increased the safe-haven demand in the market. Thus, the downbeat market mood exerted some additional pressure on the perceived riskier Australian dollar.

Moreover, the market trading sentiment was further bolstered by the rising coronavirus cases in the U.S. and Europe, fueling worries about global economic recovery. According to the coronavirus (COVID-19) data from Johns Hopkins University data., the number of global cases crossed 38 million as of October 14. Whereas the U.S. still not showing any signs of decreasing infection rates, which raised concerns over the economic recovery. At the Europe front, the daily new confirmed cases grew 5,132 to 334,585 in Europe while the death toll also rose by 40, taking the total to 9,677. There were additional 4,122 cases the previous day with 13 death, as per the latest data.

Besides, the currency pair’s losses were further bolstered by the prevalent concerns about a row with China over coal imports, which also weighed on the market sentiment and undermined the Australian currency. The 2-major factors have been dominating the AUD currency. Firstly, China appears to have verbally enacted a ban on Australian coal imports. At the same time, China’s Balance of Trade dropped to $37.0 billion in September, which undermined the AUD currency and dragged the currency pair down.

Across the ocean, the bearish tone around the currency pair could also be associated with the fresh reports suggesting that Australia becomes the largest customer of New Zealand, which eventually underpinned the NZD currency and contributes to the currency pair losses. Furthermore, New Zealand is ready for a general election on October 17, which is seen as a positive for the NZD currency as the current Prime Minister (PM) Jacinda Ardern is a market favorite due to her abilities, which in turn, strengthed the kiwi dollar and contributed to the currency pair losses.

Looking forward, the traders will keep their eyes on the release of the US PPI figures for September. Meanwhile, FOMC members and the RBNZ policymaker’s scheduled speeches will key to watch for some meaningful trading direction. Apart from this, the ongoing drama surrounding the US-China relations and updates about the U.S. stimulus package will not lose their importance. 


Entry Price – Buy 1.07734

Stop Loss – 1.07334

Take Profit – 1.08134

Risk to Reward – 1:1

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

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

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

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

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

Categories
Forex Market Analysis

Daily F.X. Analysis, 14th October – Top Trade Setups In Forex – U.S. PPI Figures Ahead! 

On the news side, the focus will remain on the Core PPI and PPI figures that are likely to underperform compared with the previous month’s data, with this, the dollar may get weaker against other currencies. However, the FOMC members’ speeches will be worth monitoring to predict further market action. 

On the news side, the focus will remain on the Core PPI and PPI figures that are likely to underperform compared with the previous month’s data, with this, the dollar may get weaker against other currencies. However, the FOMC members’ speeches will be worth monitoring to predict further market action. 

On the news side, the focus will remain on the Core PPI and PPI figures that are likely to underperform compared with the previous month’s data, with this, the dollar may get weaker against other currencies. However, the FOMC members’ speeches will be worth monitoring to predict further market action. 

Economic Events to Watch Today  

 

EUR/USD – Daily Analysis

The EUR/USD closed at 1.17451 after placing a high of 1.18154 and a low of 1.17301. The EUR/USD pair dropped on Tuesday amid the strength of the U.S. dollar, dampened hopes of a coronavirus vaccine, and the rising number of coronavirus cases from the Eurozone along with the rising unemployment fears in the Euro area.

Euro currency remained stressed on Tuesday due to the strength of its rival U.S. dollar across the board. The impasse over the U.S. stimulus package after the comments from U.S. House Speaker Nancy Pelosi that the newly proposed stimulus relief bill from the U.S. President was not sufficient to meet Americans’ requirements gave strength to the U.S. dollar. The strength of the U.S. dollar weighed on EUR/USD pair on Tuesday.

Meanwhile, the market’s risk appetite was declined by Johnson & Johnson’s recent decision to halt the trials of their COVID-19 vaccine. The dampened hopes of a coronavirus vaccine weighed on the riskier currency Euro and dragged the prices of the EUR/USD pair further on the downside.

Furthermore, the coronavirus pandemic situation in European nations escalated and raised fears for the Eurozone’s economic recovery. The Eurozone’s economic prospects were also down because of the increased uncertainty about the Brexit deal and the U.S. presidential elections. The rising uncertainty caused an increased demand for safe-haven greenback that ultimately added to the EUR/USD pair’s losses on Tuesday.

Moreover, at 10:59 GMT, the German Final Consumer Price Index (CPI) for September remained in-line with the expectations of -0.2%. At 14:00 GMT, the ZEW Economic Sentiment from Eurozone dropped to 52.3 against the forecasted 72.0 and the previous 73.9 in October and weighed on a single currency added further in EUR/USD pair. The German ZEW Economic Sentiment also dropped in October to 56.1 from the forecasted 74.1 and the previous 77.4 and weighed on Euro that ultimately dragged EUR/USD prices on the downside.

The rising number of coronavirus cases in European nations has forced authorities to impose restrictions, which has raised fears for unemployment. The official data suggested that U.K. unemployment started to grow even before the government imposed new restrictions to control the virus’s spread. These fears continuously weighed on the euro currency and EUR/USD pair.

From the U.S. side, the NFIB Small Business Index came in as 104.0 against the projected 100.9 and supported the U.S. dollar added in the EUR/USD pair’s losses on Tuesday. Simultaneously, the CPI and Core CPI data from the U.S. remained flat with the expectations of 0.2% and had no impact on the U.S. dollar and EUR/USD pair.

Daily Technical Levels

Support Resistance

1.1791    1.1832

1.1767    1.1851

1.1749    1.1874

Pivot point: 1.1809

EUR/USD– Trading Tip

The EUR/USD pair traded sharply bearish to break below a solid support area of 1.1780 extended by an upward channel. On the lower side, the EUR/USD is gaining support at 1.1732 level, and the bearish breakout of 1.1732 level may lower the EUR/USD price further than the 1.1697 level. The MACD and RSI favor selling bias, but we may see a slight upward movement until the 1.1764 level before seeing further selling in the pair.

GBP/USD – Daily Analysis

The GBP/USD pair was close at 1.29340 after placing a high of 1.30678 and a low of 1.29216. The British Pound fell sharply on Tuesday amid the rising concerns about the no-deal Brexit and fears over a looming lockdown hurt sentiment.

The chances that the U.K. will leave the E.U. without a trade deal increased after the French government appeared reluctant to give in to U.K. demands over its fisheries’ control. The French foreign minister Jean-Yves Le Drian said that the possibility of the U.K. leaving the E.U. without a trade deal was a credible hypothesis.

The French government has already said that it will not accept any bad deal in fisheries, and this has raised the uncertainty over the deal just ahead of October 15-16 European summit. The E.U. Brexit negotiator Michel Barnier will provide updates on Brexit negotiations at the E.U. summit. Barnier will elaborate on the E.U. summit’s situation on the Brexit’s key sticking points with the details about priorities and the red lines. 

The British Pound remained under pressure as the concerns were raised after the French government’s warning about the no-deal Brexit. This weighed ultimately on the GBP/USD prices. Furthermore, the rising number of coronavirus in the United Kingdom forced the local government to impose further restrictions to control the virus’s spread. PM Boris Johnson said that the rising number of cases in the U.K. was flashing at them like dashboard warnings in a passenger jet. 

Boris Johnson unveiled a new three-tier system that categories areas based on the medium, high, and very high alert levels due to an uptick in coronavirus cases across the country. The U.K. government’s rising restrictions to control the spread of the virus raised fears of economic recovery that weighed on the local currency, which added further losses in the GBP/USD pair.

On the data front, at 04:01 GMT, the BRC Retail Sales Monitor for the year from Britain rose in September to 6.1% from the expected 3.5% and the previous 4.7% and supported British Pound and caped further losses in GBP/USD pair. AT 11:00 GMT, the Claimant Count Change in September dropped to 28.1K against the forecasted 78.8K and the previous 39.5K and supported British Pound. In September, the Unemployment Rate rose to 4.5% from the forecasted 4.3% and weighed on British Pound and added the GBP/USD pair’s additional losses.

At 11:02 GMT, Britain’s Average Earnings Index came in as 0.0% for the quarter against the expected -0.6% and supported GBP. On the other hand, the NFIB Small Business Index was released from the United States at 15:30 GMT and raised to 104.0 from the anticipated 100.9 and supported the U.S. dollar that dragged the GBP/USD pair even downward.

Daily Technical Levels

Support Resistance

1.3018    1.3098

1.2971    1.3131

1.1938    1.3177

Pivot point: 1.3051

GBP/USD– Trading Tip

The GBP/USD is trading at 1.2894 level, holding right below an immediate resistance level of 1.2944. The resistance is extended by an intraday horizontal level on the two-hourly timeframes. Below the 1.2944 resistance level, the Sterling can trigger selling until the 1.2894 level and 1.2845 level. On the flip side, a bullish breakout of 1.2944 levels can trigger buying until the 1.2994 level. The leading indicators, such as MACD and RSI, support selling; therefore, it’s worth taking a selling trade below 1.2944 today. 

USD/JPY – Daily Analysis

The USD/JPY closed at 105.475 after placing a high of 105.625 and a low of 105.234. The risk aversion market sentiment kept the USD/JPY pair on the high on Tuesday. The impasse supported the market sentiment over the U.S. stimulus package, the pandemic spread worldwide, and the pause of vaccine trials by Johnson & Jonson along with the Australian and Chinese recent clash.

The latest talks between Republicans & democrats for a fresh round of stimulus measures also failed to provide meaningful results and weighed on market sentiment. The U.S. House Speaker Nancy Pelosi downplayed the hopes for another round of stimulus package further after saying that the newly proposed package by US Trump was insufficient to meet the United States’ needs.

These dampened hopes over the next round of coronavirus relief bill raised risk aversion market sentiment and supported the U.S. dollar due to its safe-haven status and supported USD/JPY pair. Furthermore, the risk-off market bias was underpinned by the rising number of coronavirus cases across the globe and the governments’ restrictive measures to curb coronavirus’s effect on the economy. The economic recovery concerns raised even further after the IMF report that revealed that business and other economic activities were highly disturbed by the coronavirus pandemic-induced lockdowns. 

However, the IMF projection for the global recession somewhat improved on Tuesday to 4.4% than the previous projection of 5.2% in summer. This projection helped improve the risk sentiment and weighed on the safe-haven Japanese yen that added further gains in the USD/JPY pair.

The U.S. Dollar Index was up by 0.5% on Tuesday after the risk sentiment suffered due to the pause of vaccine trials by Johnson & Johnson. The company paused its trials after an unexpected illness was found in one of the participants. This pause increased the uncertainty over the economic recovery and supported the safe-haven greenback that pushed the USD/JPY pair.

On the data front, at 04:50 GMT, the M2 Money Stock for the year from Japan dropped to 9.0% from the expected 9.1% and weighed on the Japanese Yen that added strength to the USD/JPY pair on Tuesday. At 15:00 GMT, the NFIB Small Business Index for September advanced to 104.0 against the expected 100.9 and previous 100.2 and supported the U.S. dollar that lifted the USD/JPY pair. At 17:30 GMT, the CPI and the Core CPI data from September remained flat with the anticipated 0.2% and had a null-effect on the U.S. dollar.

Furthermore, China reportedly banned imports of Australian coal and left Australian vessels stuck at Chinese ports. These tensions between China and Australia increased concerns and raised uncertainty that helped improve the safe-haven Japanese yen and capped further gains in the USD/JPY pair on Tuesday.

Daily Technical Levels

105.05    105.70

104.82    106.12

104.40    106.36

Pivot point: 105.47

USD/JPY – Trading Tips

The USD/JPY traded sideway, with a neutral bias within a narrow trading range of 105.600 level to the 105.250 mark. Most of the selling triggered following the USD/JPY disrupted an upward channel at the 105.900 mark on Monday. The USD/JPY is trading at 105.459 marks, the support that’s was prolonged by double bottom mark on the two-hourly charts. A bearish violation of the 105.450 mark may encourage additional selling unto the 105.070 support level as the MACD, and the 50 periods EMA are in support of selling sentiment today. Let’s consider opening sell trade beneath 105.60 and buying over 105.250 level today. Good luck!  

Categories
Forex Signals

EUR/USD Sideways Session Continues – Brace for Sell Position

The EUR/USD failed to stop its previous session losses and further offers around below the 1.1800 level. However, the bearish sentiment around the currency pair was boosted after the fresh downbeat released German ZEW headline numbers for October, showing that the Economic Sentiment Index came in at 56.1 against 73.0 expectations 77.4 last. This, in turn, undermined the sentiment around the shared currency and contributed to the currency pair losses. 

The EUR/USD failed to stop its previous session losses and further offers around below the 1.1800 level. However, the bearish sentiment around the currency pair was boosted after the fresh downbeat released German ZEW headline numbers for October, showing that the Economic Sentiment Index came in at 56.1 against 73.0 expectations 77.4 last. This, in turn, undermined the sentiment around the shared currency and contributed to the currency pair losses. 

The EUR/USD failed to stop its previous session losses and further offers around below the 1.1800 level. However, the bearish sentiment around the currency pair was boosted after the fresh downbeat released German ZEW headline numbers for October, showing that the Economic Sentiment Index came in at 56.1 against 73.0 expectations 77.4 last. This, in turn, undermined the sentiment around the shared currency and contributed to the currency pair losses. 

Apart from this, the reason for the bearish bias around the currency pair could also be associated with the fresh reports suggesting the re-imposition of stricter restrictions in Germany, Spain, and France to stop the coronavirus second-wave. On the flip side, the broad-based U.S. dollar strength, backed by the upbeat market sentiment, also played a major role in undermining the currency pair. At the moment, the EUR/USD currency pair is currently trading at 1.1793 and consolidating in the range between the 1.1779 – 1.1817.

At the data front, the German ZEW headline numbers for October showed that the Economic Sentiment Index arrived in at 56.1 against 73.0 expectations and 77.4 last. Moreover, the currency pair losses were also bolstered by reports suggesting a sharp rise in the coronavirus cases in Spain, France, and German. It is very downhearted headlines that the second-wave of the virus is picking up pace in Europe once again, which leads re-imposition of stricter restrictions in Germany, Spain, and France to contain the coronavirus second-wave.

According to the coronavirus (COVID-19) data from Germany’s Robert Koch Institute (RKI), the country’s cases rose around ~39,000 as of yesterday while the latest update today added 13 deaths more so that brings the total tally to 9,634 persons. This, in turn, undermined the shared currency and contributed to the currency pair.

Apart from this, the risk sentiment has been flashing red since the Asian session started, witnessed by the S&P 500 Futures’ negative performance. However, the reason for the downbeat trading sentiment could be associated with the worrisome headlines concerning Brexit and on-going tension between the U.S. and China. dislike for the U.S. proposal to the Congress about selling three sales of advanced weaponry to Taiwan recently renewed the trade war saga

At the US-China front, the renewed conflict between the U.S. and China fueled after the Dragon Nation China’s Washington Embassy lashed out at the U.S. passage of the three advanced weaponry sales to Taiwan during late-Monday, per Reuters. As per the latest report, China’s representative said, “China consistently and firmly opposes U.S. arms sales to Taiwan.” This, in turn, added additional pressure around the market sentiment.

Across the pond, the recent coronavirus (COVID-19) warning from the U.S. health official Anthony Fauci and stimulus uncertainty also keep the market trading sentiment under pressure. As per the keywords, “Dr. Anthony Fauci, director of the U.S. National Institute of Allergy and Infectious Diseases (NIH), suggests another 181,000 deaths in the United States by February. 

As per the latest report, the US Centers for Disease Control and Prevention (CDC) reported 7,740,934 cases of the new coronavirus yesterday, with an increase of 46,069 from its previous count. As in result, the broad-based U.S. dollar remains on the bullish track and still reporting gains on the day. However, the U.S. dollar gains were being supported by the reports suggesting that the U.K. pharma giant, Johnson, and Johnson, stopped its COVID-19 vaccine trial due to an unexplained illness, which eventually boosted the safe-haven assets like the U.S. dollar.

However, the U.S. dollar gains seem rather unaffected by the U.S. political uncertainty ahead of U.S. elections. Thus, the gains in the U.S. dollar become the key factor that kept the currency pair lower. Whereas, the U.S. Dollar Index, which tracks the greenback against a bucket of other currencies, rose by 0.11% to 93.207 by 10:04 PM ET (2:04 AM GMT). Looking forward, the market traders will keep their eyes on the U.S. Consumer Price Index (CPI) data. Furthermore, the risk catalyst like geopolitics and the virus woes, not to forget the Brexit, will not lose their importance.

Daily Support and Resistance

S1 1.1626

S2 1.1672

S3 1.1694

Pivot Point 1.1718

R1 1.174

R2 1.1764

R3 1.181

The EUR/USD pair is supported over 1.1790 level, which marks double bottom level on the 4-hour timeframe. Above this level, the EUR/USD is likely to bounce off until the 1.1811 level, and the bullish breakout of the 1.1831 level can also extend buying until the next target level of 1.1870. Conversely, the bearish breakout of the 1.1790 level can extend the selling trend until the 1.1750 level.

Entry Price – Buy 1.17872

Stop Loss – 1.18272

Take Profit – 1.17472

Risk to Reward – 1:1

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

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

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

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

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

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Forex Signals

EUR/JPY Continues to Trade Below Previously Violated Upward Channel – Signal Update! 

The EUR/JPY failed to stop its previous session bearish streak and drew further offers around the 124.17 regions. However, the basis for the bearish sentiment around the EURJPY pair could be associated with the fresh reports suggesting the re-imposition of stricter restrictions in Germany, Spain, and France to stop the coronavirus second-wave. This, in turn, weakened the forecast around the shared currency and dragged the currency pair lower. Apart from this, the intensification of the Sino-American tussle and the uncertainty over the American stimulus package, keep weighing on the market risk-tone, which eventually underpinned the Japanese yen’s safe-haven demand and contributed to the currency pair losses. Moreover, the risk-off market sentiment was further boosted by the fresh discouraging vaccine news, which put a further bid under the safe-haven Japanese yen. At this particular time, the EUR/JPY is trading at 124.29 and consolidating between 124.17 – 124.48.

The EUR/JPY failed to stop its previous session bearish streak and drew further offers around the 124.17 regions. However, the basis for the bearish sentiment around the EURJPY pair could be associated with the fresh reports suggesting the re-imposition of stricter restrictions in Germany, Spain, and France to stop the coronavirus second-wave. This, in turn, weakened the forecast around the shared currency and dragged the currency pair lower. Apart from this, the intensification of the Sino-American tussle and the uncertainty over the American stimulus package, keep weighing on the market risk-tone, which eventually underpinned the Japanese yen’s safe-haven demand and contributed to the currency pair losses. Moreover, the risk-off market sentiment was further boosted by the fresh discouraging vaccine news, which put a further bid under the safe-haven Japanese yen. At this particular time, the EUR/JPY is trading at 124.29 and consolidating between 124.17 – 124.48.

The EUR/JPY failed to stop its previous session bearish streak and drew further offers around the 124.17 regions. However, the basis for the bearish sentiment around the EURJPY pair could be associated with the fresh reports suggesting the re-imposition of stricter restrictions in Germany, Spain, and France to stop the coronavirus second-wave. This, in turn, weakened the forecast around the shared currency and dragged the currency pair lower. Apart from this, the intensification of the Sino-American tussle and the uncertainty over the American stimulus package, keep weighing on the market risk-tone, which eventually underpinned the Japanese yen’s safe-haven demand and contributed to the currency pair losses. Moreover, the risk-off market sentiment was further boosted by the fresh discouraging vaccine news, which put a further bid under the safe-haven Japanese yen. At this particular time, the EUR/JPY is trading at 124.29 and consolidating between 124.17 – 124.48.

The shared currency remained pressured by the vaccine news and re-imposed stricter restrictions in Spain and France, and Germany to stop the coronavirus second-wave. New infections in Germany once again top 4000 on Tuesday. According to the coronavirus (COVID-19) data from Germany’s Robert Koch Institute (RKI), the country’s cases rose around ~39,000 as of yesterday while the latest update today added 13 deaths more so that brings the total tally to 9,634 persons. This, in turn, undermined the shared currency and contributed to the currency pair.

Moreover, the sentiment around the shard currency was further bolstered by the reports suggesting that the UK pharma giant, Johnson, and Johnson, delayed its COVID-19 vaccine trial due to an unexplained illness.

Across the pond, the market trading sentiment has been flashing mixed signals since the day started. Be it the American lawmakers’ failure to offer any positive announcement on the coronavirus (COVID-19) relief package or the recent escalation in the Sino-American tussle, not to forget the Brexit worries, these all factors have been weighing on the market risk tone. At the US-China front, China recently showed his dislikes over the White House arms sale to Taiwan and the recent ban from China to use Aussie coal for power stations, which eventually offered additional pressure to the market sentiment and contributed to the currency pair losses.


Moving on, the ZEW will release its German Economic Sentiment Index and the Current Situation Index at 0900 GMT in the EU session later today, which is expected to drop to 73.0 in October as against a 77.4 reading booked in the previous month. Meanwhile, the Current Situation Sub-Index is expected to arrive at -60.0 against a -66.2-figure recorded last month. Apart from this, the market traders will keep their eyes on the US Consumer Price Index (CPI) data. Furthermore, the risk catalyst like geopolitics and the virus woes, not to forget the Brexit, will not lose their importance.

Daily Support and Resistance

S1 121.85

S2 122.64

S3 123.04

Pivot Point 123.43

R1 123.83

R2 124.22

R3 125

The EUR/JPY pair is trading with a bearish bias at 125.35 level, having violated the support become a resistance level of 124.460 level. On the lower side, the EUR/JPY may gain support at 123.735 levels as worked as a support in the past. Checkout a trading plan below…

Entry Price – Buy 124.19

Stop Loss – 124.59

Take Profit – 123.79

Risk to Reward – 1:1

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

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

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

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

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

Categories
Forex Signals

AUD/USD Fails to Gain Positive Traction Amid Risk Aversion Waves! 

The AUD/USD currency pair failed to stop its early-day losing streak and drew some further offers around well below the 0.7200 level, mainly due to the risk-off market sentiment. The intensification of the Sino-American tussle drove that. The American stimulus package’s ambiguity also weighed on the market trading tone, which eventually undermined the Australian dollar’s perceived risk currency and contributed to the currency pair declines. 

The AUD/USD currency pair failed to stop its early-day losing streak and drew some further offers around well below the 0.7200 level, mainly due to the risk-off market sentiment. The intensification of the Sino-American tussle drove that. The American stimulus package’s ambiguity also weighed on the market trading tone, which eventually undermined the Australian dollar’s perceived risk currency and contributed to the currency pair declines. 

The AUD/USD currency pair failed to stop its early-day losing streak and drew some further offers around well below the 0.7200 level, mainly due to the risk-off market sentiment. The intensification of the Sino-American tussle drove that. The American stimulus package’s ambiguity also weighed on the market trading tone, which eventually undermined the Australian dollar’s perceived risk currency and contributed to the currency pair declines. 

On the other hand, the coronavirus (COVID-19) vaccine’s hopes failed to provide meaningful support to the market trading sentiment, keeping the currency pair under pressure. Apart from this, the bearish tone around the currency pair could also be associated with the broad-based U.S. dollar prevalent strength. The U.S. dollar was being supported by the market risk-off sentiment. At the moment, the AUD/USD currency pair is currently trading at 0.7179 and consolidating in the range between 0.7165 – 0.7214.

However, the market risk tone has been sluggish since the day started due to the combination of factors. Be it the U.S. lawmakers’ failure to offer any positive announcement on the coronavirus (COVID-19) relief package or the fresh escalation in the Sino-American tussle, not to forget the Brexit woes, these all factors have been pressing the market risk tone. This, in turn, underpinned the perceived risk currency Australian dollar and contributed to the currency pair declines. 

At the US-China front, China recently showed his dislikes over the White House arms sale to Taiwan and the recent ban from China to use Aussie coal for power stations, which eventually offered additional pressure to the market sentiment and contributed to the currency pair losses.

Moreover, the market trading sentiment was further bolstered by the rising coronavirus cases in the U.S. and Europe, fueling worries about global economic recovery. According to the coronavirus (COVID-19) data from Germany’s Robert Koch Institute (RKI), the country’s cases rose around ~39,000 as of yesterday while the latest update today added 13 deaths more so that brings the total tally to 9,634 persons. At the U.S. front, the virus will firm its grip in the world’s largest economy, said by the U.S. health official Dr. Anthony Fauci. Hence, the pandemic fears regaining market attention and kept the investors cautious.

As in result, the broad-based U.S. dollar managed to keep its gains throughout the day as the traders still cheering the risk-off market tone, which keeps the safe-haven demand high in the market. However, the U.S. dollar gains seem rather unaffected by the U.S. political uncertainty ahead of U.S. elections. Thus, the gains in the U.S. dollar become the key factor that kept the currency pair under pressure Whereas, the U.S. Dollar Index, which tracks the greenback against a bucket of other currencies, rose by 0.11% to 93.207 by 10:04 PM ET (2:04 AM GMT).

However, the coronavirus (COVID-19) vaccine’s hopes failed to help the market sentiment on the day as the market negative headlines overshadowed the vaccine-related optimism and kept the trading sentiment negative. Anyhow, these hopes might play a key role that could help the market trading sentiment to limit the currency pair’s deeper losses.

On the contrary, the Australian dollar is a little impressed by the unexpected rise in Chinese imports last month, strengthening the domestic economy. At the data front, China’s Trade Balance for September, in Yuan terms, arrived in CNY257.68 billion against CNY416.59 billion last. Whereas, September exports arrived in +8.7% against .+11.6% last while imports came in at +11.6% vs. -1.3% expected and -0.5% prior.


Looking forward, the market traders will keep their eyes on the U.S. Consumer Price Index (CPI) data. Furthermore, the risk catalyst like geopolitics and the virus woes, not to forget the Brexit, will not lose their importance.

Daily Support and Resistance

S1 0.7068

S2 0.7112

S3 0.7138

Pivot Point 0.7157

R1 0.7182

R2 0.7201

R3 0.7245

The AUD/USD is taking a bullish turn over a support level of 0.7160 level, perhaps, to complete a 23.6% Fibonacci retracement at 0.7180 and 0.7197 level. On the higher side, AUD/USD may face the next resistance at 0.7203 level. It’s the same level where the downward trendline is likely to match and extend resistance to the AUD/USD level. Good luck! 

Categories
Forex Market Analysis

Daily F.X. Analysis, 13th October – Top Trade Setups In Forex – U.S. Inflation in Highlights! 

Investor’s eyes will stay on the Final CPI and Final core CPI due to the U.S. Economy. The analysts are forecasting no significant changes in the inflation rate; thus, it may go muted. However, the Claimant Count Change and Unemployment Rate data from the U.K. is likely to drive market movements. Let’s keep an eye on U.K. labor market figures and U.S. CPI m/m later today.

Investor’s eyes will stay on the Final CPI and Final core CPI due to the U.S. Economy. The analysts are forecasting no significant changes in the inflation rate; thus, it may go muted. However, the Claimant Count Change and Unemployment Rate data from the U.K. is likely to drive market movements. Let’s keep an eye on U.K. labor market figures and U.S. CPI m/m later today.

Investor’s eyes will stay on the Final CPI and Final core CPI due to the U.S. Economy. The analysts are forecasting no significant changes in the inflation rate; thus, it may go muted. However, the Claimant Count Change and Unemployment Rate data from the U.K. is likely to drive market movements. Let’s keep an eye on U.K. labor market figures and U.S. CPI m/m later today.

Economic Events to Watch Today  

  

EUR/USD – Daily Analysis

The EUR/USD pair was closed at 1.18109 after placing a high of 1.18265 and a low of 1.17865. Overall the movement of the EUR/USD pair remained flat throughout the day. The EUR/USD pair was flat on Monday, as the European Central Bank members reportedly downplayed expectations that it would adopt the Federal Reserve’s average inflation targeting measure, cooling bets on central banks allowing inflation to run above target.

Several ECB policymakers appeared reluctant to follow the Fed with an average inflation target on concerns it could lead to unrealistic expectations about future policy decisions. The European Central Bank has targeted an inflation policy of below but close to 2% for years. If ECB adopts average inflation targeting like Fed, this move will see the ECB allow inflation to run above its 2% target for some time to make up for periods of sluggish price increases. 

Recently, Eurozone inflation has remained short of the bank’s target. Following U.S. Federal Reserve on inflation targeting measure could allow inflation to rise above 2% and makeup periods of lagging price pressures.

Meanwhile, the signs that the second wave of coronavirus has started to weigh on growth have attracted the central bank’s attention and caused a sluggish move in the single currency Euro. On the data front, at 10:59 GMT, the German Wholesale Price Index dropped to 0.0% from the forecasted 0.2% and weighed on single currency Euro that ultimately weighed on EUR/USD pair.

On the U.S. front, the U.S. dollar remained strong onboard on Monday amid the rising hopes that a small coronavirus relief bill will be passed before elections as the talks over the massive stimulus bill stalled on the day. The new proposed bill by Trump of 1.8 trillion dollars faced rejection from both Republicans and Democrats. Republicans were reluctant to add more to the government debt pile, and Democrats wanted their 2.2 trillion packages.

After this, Trump Administration called on Congress for a small stimulus package to be funded from leftover funds and used for hardly-hit sectors like airline and small businesses. The hopes that a small package will be delivered before elections gave strength to the U.S. dollar that added pressure on EUR/USD, and the pair remained flat throughout the day.

Daily Technical Levels

Support Resistance

1.1791 1.1832

1.1767 1.1851

1.1749 1.1874

Pivot point: 1.1809

EUR/USD– Trading Tip

The EUR/USD pair is supported over 1.1790 level, which marks double bottom level on the 4-hour timeframe. Above this level, the EUR/USD is likely to bounce off until the 1.1811 level, and the bullish breakout of the 1.1831 level can also extend buying until the next target level of 1.1870. Conversely, the bearish breakout of the 1.1790 level can extend the selling trend until the 1.1750 level.

GBP/USD – Daily Analysis

The GBP/USD pair was closed at 1.30644 after placing a high of 1.30824 and a low of 1.30052. Overall the movement of the GBP/USD pair remained bullish throughout the day. The GBP/USD pair remained positive on Monday despite broad-based U.S. dollar strength. The pair traded at its four-week highest level, but the prospect remained depressed as the local country’s coronavirus situation escalated and forced to impose new restrictive measures.

The U.S. dollar was high on board after the talks for massive stimulus measures stalled again, and the Chinese yuan depreciated. The strong U.S. dollar helped cap further gains in GBP/USD pair on Monday. The latest move also weighed the gains in the GBP/USD pair from the Bank of England, who asked commercial banks earlier today about their readiness to cope with negative interest rates. On Monday, the Bank of England wrote banks to ask them how ready they were to cope with adopting negative interest rates.

This move from BoE raised concerns that it was considering cutting interest rates further to cope with the rising coronavirus cases in the U.K. The rising speculations over further rate cuts from BoE in the coming months weighed on British Pound and limited the additional gains in GBP/USD pair.

Meanwhile, the Governor of Bank of England, Andrew Bailey, said on Monday that the central bank thought Britain’s economy could struggle more than it has forecasted to recover from the coronavirus pandemic crisis. Bailey said that risk was, unfortunately, all on the downside, which added further pressure on British Pound.

Moreover, British Prime Minister Boris Johnson implemented a three-tiered system of restrictions with the closure of pubs in certain parts of England as the country was trying to deal with the rising number of coronavirus cases. These restrictive measures also exerted downside pressure on GBP/USD pair on Monday.

Furthermore, on the U.S. front, the U.S. dollar remained strong across the board after the Chinese yuan was depreciated. The Chinese city gave away 10M yuan in a lottery trial of digital currency. The latest digital currency trial was aimed at stimulating consumer spending to aid China’s economic recovery from the coronavirus pandemic.

Other than that, the U.S. dollar was also strong as the talks for a massive stimulus bill stalled again when Republicans and Democrats disagreed with passing the newly proposed bill by Trump of worth $1.8 trillion. After this, Trump Administration called on Congress to small stimulus aid for airline and small businesses. The strong U.S. dollar also kept the GBP/USD pair’s gain limited on Monday.

On the Brexit deal front, the concerns rose that negotiations could collapse as the differences between E.U. & U.K. demands were only rising. The deadline to reach a deal is just three days far, and no progress has been reported as of yet that has raised the risk sentiment in the market. The improved risk sentiment kept the GBP/USD pair higher on board.

Daily Technical Levels

Support Resistance

1.3018 1.3098

1.2971 1.3131

1.1938 1.3177

Pivot point: 1.3051

GBP/USD– Trading Tip

The GBP/USD is trading at 1.3043 level, holding right below an immediate resistance level of 1.3063. The resistance is extended by an upward channels’ trendline on the two-hourly timeframes. Below the 1.3063 resistance level, the Sterling can trigger selling until the 1.3003 level and 1.2959 level. On the higher side, a bullish breakout of 1.3063 levels can trigger buying until the 1.3127 level. The fundamental side is muted today, and the U.S. banks are closed in the observance of Columbus day; therefore, we may experience thin volatility. 

USD/JPY – Daily Analysis

The USD/JPY pair was closed at 105.317 after placing a high of 105.817 and a low of 105.240. Overall the movement of the USD/JPY pair remained bearish throughout the day. The USD/JPY pair failed to cheer the Chinese Yuan depreciation and U.S. dollar strength on Monday and continued decline over the fresh hopes that the U.S. stimulus aid package will be delivered before the elections.

The people’s Bank of China removed a 20% reserve requirement ratio for yuan forward settlements that undermined the cost of shorting yuan and weighed on the Chinese currency. But investors failed to take advantage of this depreciation in yuan, and the pair USD/JPY remained depressed in the market.

The rising number of coronavirus cases worldwide and the increased restrictions to curb the coronavirus pandemic’s effect raised the safe-haven appeal and supported the Japanese Yen that weighed on the USD/JPY pair. Meanwhile, the absence of key macroeconomic events due to the U.S. and Canada celebrating Columbus Day and Thanksgiving respectively exerted more pressure on the USD/JPY pair.

On the Japan front, the Bank Lending for the year was released at 04:50 GMT that remained flat at 6.4%. The Core Machinery Orders raised to 0.2% from the forecasted -1.0% and supported the Japanese Yen that weighed on the USD/JPY pair. Whereas, the PPI for the year from Japan decreased to -0.8% against the forecasted -0.5%. At 10:58 GMT, the Prelim Machine Tool Orders for the year remained flat at -15.0%.

Furthermore, the newly proposed U.S. stimulus measure of $1.8 trillion by Trump also faced rejection from both parties. In response to this, the Trump administration asked Congress to provide Americans with a small relief fund specifically for airlines and small businesses before elections.

The hopes that a small package could be passed before elections and a massive stimulus package after elections weighed on the U.S. dollar and added further losses in the USD/JPY pair on Monday.

Moreover, the White House physician Sean Conley said that U.S. President Donald Trump was free of transmission risk to others on Saturday. On Sunday, Trump claimed that he was now immune from the coronavirus, but the chances to get infected remained again. Trump was tested positive for coronavirus on first October, and he has been getting medical assistance since then. The news that Trump was getting better and has no transmission risk raised risk sentiment and capped further losses in the USD/JPY pair by weighing on safe-haven Japanese yen.

Daily Technical Levels

105.05 105.70

104.82 106.12

104.40 106.36

Pivot point: 105.47

USD/JPY – Trading Tips

On Tuesday, the USD/JPY traded sharply bearish to drop from 105.900 level to the 105.450 mark. Most of the selling triggered after the USD/JPY violated an upward channel at 105.900 level. Currently, the USD/JPY pair is trading at 105.459 level, the support level that’s extended by double bottom level. A bearish breakout of 105.450 level may drive further selling until the 105.070 support level as the MACD, and the 50 periods EMA are in support of selling bias today. Let’s consider opening sell trade below 105.40 level today. Good luck!  

Categories
Forex Signals

EUR/JPY Breaks Below Upward Channel at 124.850 – Quick Update on Sell Signal! 

Today in the European trading session, the EUR/JPY currency pair failed to stop its previous session losing streak and remain depressed around below the 124.50 marks. However, the bearish bias around the currency pair could be associated with upbeat Japan’s Machinery Orders data, underpinning the Japanese yen currency and contributing to the currency pair declines. Apart from this, Europe’s intensified coronavirus concerns undermined the shared currency and add further pessimism around the currency pair. On the contrary, the prevalent market risk-on sentiment tends to undermine the safe-haven Japanese yen, which becomes the key factor that helps the pair to limit its deeper losses. At this particular time, the EUR/JPY currency pair is currently trading at 124.38 and consolidating in the range between 124.32 – 125.08.

Today in the European trading session, the EUR/JPY currency pair failed to stop its previous session losing streak and remain depressed around below the 124.50 marks. However, the bearish bias around the currency pair could be associated with upbeat Japan’s Machinery Orders data, underpinning the Japanese yen currency and contributing to the currency pair declines. Apart from this, Europe’s intensified coronavirus concerns undermined the shared currency and add further pessimism around the currency pair. On the contrary, the prevalent market risk-on sentiment tends to undermine the safe-haven Japanese yen, which becomes the key factor that helps the pair to limit its deeper losses. At this particular time, the EUR/JPY currency pair is currently trading at 124.38 and consolidating in the range between 124.32 – 125.08.

Today in the European trading session, the EUR/JPY currency pair failed to stop its previous session losing streak and remain depressed around below the 124.50 marks. However, the bearish bias around the currency pair could be associated with upbeat Japan’s Machinery Orders data, underpinning the Japanese yen currency and contributing to the currency pair declines. Apart from this, Europe’s intensified coronavirus concerns undermined the shared currency and add further pessimism around the currency pair. On the contrary, the prevalent market risk-on sentiment tends to undermine the safe-haven Japanese yen, which becomes the key factor that helps the pair to limit its deeper losses. At this particular time, the EUR/JPY currency pair is currently trading at 124.38 and consolidating in the range between 124.32 – 125.08.

As we all well aware that the coronavirus resurgence in Europe is intensifying, which fueled the worries over the EUR economic recovery. As per the latest report, France has reported record-high new daily cases of approximately 27K during the recession. At the Spain front, Catalonia and Navarre’s regions will tighten restrictions on working and public gatherings after the continued rise in COVID-19 cases, which keeps the shard currency under pressure and contributed to the currency pair losses.

Across the pond, the market trading sentiment has been flashing mixed signals since the day started. Be it the American lawmakers’ failure to offer any positive announcement on the coronavirus (COVID-19) relief package or the on-going in the Sino-American tussle, not to forget the no-deal Brexit fears, these all factors have been weighing on the market risk tone. This, in turn, underpinned the safe-haven Japanese yen and dragged the currency pair further lower.

Across the pond, upbeat Japan’s Machinery Orders data also supported the Japanese yen currency, which keeps the currency pair under pressure. At the data front, the August month’s Machinery Orders recovered from -16.2% previous and -15.6% forecast to -15.2% YoY. On the other hand, the Producer Price Index (PPI) for September dropped below -0.5% expected and previous readings to -0.8%.

On the contrary, the market risk sentiment recently got lift by the positive reports suggesting that Trump had fully recovered from his bout with COVID-19. These hopes were further fueled after his physician Sean Conley stating that he is no longer an infection risk. This, in turn, boosted the market trading sentiment and helped the currency pair limit its deeper losses.


Daily Support and Resistance

S1 121.85

S2 122.64

S3 123.04

Pivot Point 123.43

R1 123.83

R2 124.22

R3 125

Technically, the EUR/JPY is trading at 124.450 level, having violated the upward channel supporting the pair at 124.800 level. For now, the EUR/JPY may find resistance at 124.800, and on the lower side, the pair may drop until 124.247. The leading indicators, such as MACD and RSI, are holding below 50, suggesting the odds of further selling bias among traders. Check out the forex trading signal below… 

Entry Price – Buy 124.439

Stop Loss – 124.839

Take Profit – 124.039

Risk to Reward – 1:1

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

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

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Categories
Forex Signals

AUD/USD Failed To Gain Any Positive Traction – Double Bottom Supports! 

The AUD/USD failed to stop its early-day losing streak and dropped to 0.7213 level, mainly due to the broad-based U.S. dollar strength, backed by the stalled stimulus talk. Apart from this, the fears of a hard Brexit and surge in the coronavirus (COVID-19) fears from Europe keep challenging the market risk-on tone, which undermined the perceived risk currency Australian dollar and contributed to the currency pair gains. On the contary, the market risk-on sentiment, supported by the vaccine hopes helped the currency pair to limits its deeper losses. At the press time, the AUD/USD is trading at 0.7230 and consolidating in the range between 0.7213 – 0.7236. Moving on, the progress in the currency pair is expected to remain sluggish amid the U.S. holiday.

The AUD/USD failed to stop its early-day losing streak and dropped to 0.7213 level, mainly due to the broad-based U.S. dollar strength, backed by the stalled stimulus talk. Apart from this, the fears of a hard Brexit and surge in the coronavirus (COVID-19) fears from Europe keep challenging the market risk-on tone, which undermined the perceived risk currency Australian dollar and contributed to the currency pair gains. On the contary, the market risk-on sentiment, supported by the vaccine hopes helped the currency pair to limits its deeper losses. At the press time, the AUD/USD is trading at 0.7230 and consolidating in the range between 0.7213 – 0.7236. Moving on, the progress in the currency pair is expected to remain sluggish amid the U.S. holiday.

The AUD/USD failed to stop its early-day losing streak and dropped to 0.7213 level, mainly due to the broad-based U.S. dollar strength, backed by the stalled stimulus talk. Apart from this, the fears of a hard Brexit and surge in the coronavirus (COVID-19) fears from Europe keep challenging the market risk-on tone, which undermined the perceived risk currency Australian dollar and contributed to the currency pair gains. On the contary, the market risk-on sentiment, supported by the vaccine hopes helped the currency pair to limits its deeper losses. At the press time, the AUD/USD is trading at 0.7230 and consolidating in the range between 0.7213 – 0.7236. Moving on, the progress in the currency pair is expected to remain sluggish amid the U.S. holiday.

The market risk-on sentiment faded after the House Speaker Nancy Pelosi rejected Friday’s U.S. President Donald Trump’s aid package proposal of $1.8 trillion. Apart from this, the on-going surge in the COVID-19 cases from the U.K. and Europe and the no-deal Brexit fears also weighs on the market risk sentiment, which undermined the perceived risk currency Australian dollar and contributed to the currency pair gains. As per the latest report, the no-deal Brexit is gradually gaining momentum as the European Union (E.U.) and the U.K. are still at loggerheads, despite being near the October 15 deadline. 

Across the pond, the latest figures from Europe and the U.K. keeps leading the national lockdowns. As per the latest report, France reported record 27,000 new cases with German infections surging by the most since April, which kept fueling the worries over the global economic recovery and kept the currency pair under pressure. 

As a result, the broad-based U.S. dollar succeeded in stopping its early-day losses and took the fresh bids on the day. However, the U.S. dollar gains could be temporary as worries over the economic recovery in the U.S. could be stopped amid the reappearance of coronavirus cases and U.S. post-election uncertainty. 

The People’s Bank of China (PBOC) set the financial institutions free from the need to set aside cash when purchasing F.X. for clients through forwards. These moves could negatively impact the Chinse currency as the same moves were taken in September 2017, which resulted in over 2.0% drop of the Chinese yuan (CNY) during the following three weeks. Thus, any Chinese currency loss tends to undermine the Australian dollar as China is the biggest customer in Australia.


Daily Support and Resistance

S1 0.7068

S2 0.7112

S3 0.7138

Pivot Point 0.7157

R1 0.7182

R2 0.7201

R3 0.7245

The AUDUSD is likely to trade with a bullish bias over 0.7203 level, and continuation of an upward trend may lead AUD/USD price towards 0.7253 level. On the lower side, the support stays at the 0.7203 area today. We may see the AUD/USD to trade bullish until 0.7250 and 0.7330. Good luck! 

Categories
Forex Signals

Gold Upward Channel Supports Buying in Gold – Brace for Buying! 

The yellow metal prices failed to extend its previous session winning streak and edged lower around $1,919 during the European trading session. However, the broad-based U.S. dollar strength could be considered one of the main reasons behind the yellow-metal fresh selling bias. The gains in the U.S. dollar came into existence after the U.S. House Speaker Pelosi rejected Friday’s proposal from Trump, concerning the coronavirus (COVID-19) aid package worth near $1.8 trillion. 

The yellow metal prices failed to extend its previous session winning streak and edged lower around $1,919 during the European trading session. However, the broad-based U.S. dollar strength could be considered one of the main reasons behind the yellow-metal fresh selling bias. The gains in the U.S. dollar came into existence after the U.S. House Speaker Pelosi rejected Friday’s proposal from Trump, concerning the coronavirus (COVID-19) aid package worth near $1.8 trillion. 

The yellow metal prices failed to extend its previous session winning streak and edged lower around $1,919 during the European trading session. However, the broad-based U.S. dollar strength could be considered one of the main reasons behind the yellow-metal fresh selling bias. The gains in the U.S. dollar came into existence after the U.S. House Speaker Pelosi rejected Friday’s proposal from Trump, concerning the coronavirus (COVID-19) aid package worth near $1.8 trillion. 

Besides this, the market risk-on sentiment, backed by the hopes of Trump’s health recovery from the COVID-19 infections, also weighed on the yellow metal price. Subsequently, the logic behind the risk-on market sentiment could also be connected with the vaccine’s positive reports and treatment for the extremely infectious coronavirus. On the contrary, the prevalent rise in the COVID-19 cases from the U.K. and Europe and the no-deal Brexit fears keep challenging the market risk-on sentiment, helping the bullion prices limit its deeper losses. Apart from this, the US-China long-lasting tussle also questions the market sentiment upside momentum, which also caps further downside for the gold. AS of writing, the yellow metal prices are currently trading at 1,921.49 and consolidating in the range between 1,919.20 – 1,933.37.

Even though the U.S. House Speaker Nancy Pelosi refused Friday’s U.S. President Donald Trump’s aid package proposal of $1.8 trillion, the market trading sentiment remains positive, possibly due to the positive reports suggesting that the Trump had fully recovered from his bout with COVID-19. These hopes were further fueled after his physician Sean Conley stating that he is no longer an infection risk. This, in turn, boosted the market trading sentiment and undermined the safe-haven metal prices.

Additionally, the market trading sentiment was supported by the hopes of the coronavirus vaccine. Thus the positive tone surrounding the market trading sentiment was seen as one of the key factors that kept the gold prices under pressure. 

Despite the upbeat market sentiment, the broad-based U.S. dollar succeeded in extending its previous-session gains and took further bids on the day amid the stalled stimulus talk that tends to underpin the U.S. dollar. However, the U.S. dollar gains could be short-lived or temporary as concerns over the economic recovery could be stopped because of the resurgence of coronavirus cases and U.S. post-election uncertainty. Although, the U.S. dollar gains kept the gold prices under pressure, as the price of gold is inversely associated with the U.S. dollar price. 

On the contrary, the worries over the resurgence of the coronavirus pandemic have been destroying the support of the global economic improvement, which holds challenging the market trading sentiment and help the yellow-metal prices to limit its deeper losses. As per the latest report, France reported record 27,000 new cases while German infections are surging by the most since April.

At the US-China front, the long-lasting tussle between the United States and China remain on the cards as both parties continuously using very harsh words for each other. This, in turn, added further questions around the market trading sentiment and became the key portion that held the cap on any additional losses in the safe-haven metal prices.


Daily Support and Resistance

S1 1847.32

S2 1874.78

S3 1887.18

Pivot Point 1902.24

R1 1914.64

R2 1929.7

R3 1957.16

The yellow metal gold has risen sharply to trade at 1,928 marks; however, the neutral candle’s closing beneath 1,932 levels implies mixed inclination among traders. Gold is traded over 1,919 levels, and closing of candles beyond 1,919 mark may induce an upward shift in the market. On the upper side, a breach of 1,932 may drive gold higher towards 1,943 and 1,952 marks. In contrast, a bearish breakout of 1,919 levels may lead the gold price towards 1,907 levels today. Mixed bias prevails due to holidays in the United States. Good luck! 

Categories
Forex Market Analysis

Daily F.X. Analysis, 12th October – Top Trade Setups In Forex – U.S. Bank Holiday! 

On the news front, the market is likely to exhibit slight movements as the U.S. and Canadian banks are closed in Columbus’s observance and thanksgiving holiday. Therefore, most of the focus should stay on the technical side of the market today.

On the news front, the market is likely to exhibit slight movements as the U.S. and Canadian banks are closed in Columbus’s observance and thanksgiving holiday. Therefore, most of the focus should stay on the technical side of the market today.

On the news front, the market is likely to exhibit slight movements as the U.S. and Canadian banks are closed in Columbus’s observance and thanksgiving holiday. Therefore, most of the focus should stay on the technical side of the market today.

Economic Events to Watch Today  


 

EUR/USD – Daily Analysis

The EUR/USD pair was closed at 1.18296 after placing a high of 1.18308 and a low of 1.17478. Overall the movement of the EUR/USD pair remained bullish throughout the day. The EUR/USD raised to its more than 2-weeks highest level on Friday on the back of lifted sentiment in the market after the renewed hopes for a U.S. stimulus package. EUR/USD pair rose on Friday despite the increasing tensions regarding the coronavirus pandemic.

The second wave of the COVID-19 pandemic in the Eurozone forced governments across the region to start implementing fresh restrictions mostly on leisure activities like bars, pubs, and restaurants. The Chief Economist of European Central Bank, Philip Lane, said that the next phase of coronavirus would be tougher for the European economy.

Lane said that the central bank would wait to see the government’s response to the coronavirus challenge as they publish their budgets for 2021; by saying so, he dampened expectations for fresh stimulus from the ECB by this month. The news that the ECB will not announce any stimulus measure by the end of this month despite rising coronavirus cases raised the risk sentiment and pushed EUR/USD pair on board. 

On the other hand, Trump, who said earlier this week that talks between Republicans & Democrats will be halted until elections, said that he wanted a bigger stimulus package for Americans on Friday. The U-turn by Trump for the coronavirus stimulus package came in after polls suggested a victory of Joe Biden in upcoming elections due to his support for the big stimulus package.

The talks between Nancy Pelosi and Steven Mnuchin resumed on Friday after Trump gave the go-ahead stimulus package. These developments raised risk sentiment in the market as the hopes increased that a package will be delivered before the elections. This, in turn, weighed on the U.S. dollar, and that ultimately pushed the already rising EUR/USD pair on the upside towards more than 2—weeks highest level.

Meanwhile, at 11:45 GMT, the French Industrial Production for August declined to 1.3% from the expected 2.1% and weighed on Euro on the data front. At 13:00 GMT, the Italian Industrial Production for August raised to 7.7% from the expected 1.3% and supported the single currency that ultimately added further in the EUR/USD pair upside momentum.

From the U.S. side, the Final Wholesale Inventories dropped to 0.4% from the forecasted 0.5% and supported the U.S. dollar that capped further gains in EUR/USD pair.

Daily Technical Levels

Support Resistance

1.1734     1.1784

1.1708     1.1808

1.1684     1.1834

Pivot point: 1.1758

EUR/USD– Trading Tip

On Monday, the EUR/USD is trading with a bullish bias around 1.1798 level, having an immediate resistance at 1.1832 level. A bullish crossover of 1.1832 level may lead the EUR/USD pair further higher until the 1.1870 mark. At the same time, the support continues to stay at 1.1798 level. The violation of the symmetric triangle pattern nad an upward channel is supported by bullish bias in the EUR/USD pair today. Let’s consider taking a buy trade over 1.1798 level today. 

GBP/USD – Daily Analysis

The GBP/USD pair was closed at 1.30441 after placing a high of 1.30489 and a low of 1.29135. Overall the movement of the GBP/USD pair remained bullish throughout the day. The GBP/USD pair moved to its one month’s highest level on Friday after the U.S. dollar came under pressure over fresh stimulus hopes. In the absence of any latest development surrounding the Brexit talks, the GBP/USD pair continued following the U.S. dollar’s movements.

Wall Street’s main indexes remained in the positive territory for the third straight day on Friday after Trump gave the go-ahead for talks over the next round of the stimulus package. Earlier this week, Trump ordered to halt further talks with Democrats over the stimulus package till elections. But later, he decided sideways and said that he wanted a small stimulus package specifically for airline workers. And now, on Friday, Trump said that he wanted to give a big stimulus package to Americans before the elections. He proposed a $1.8 trillion package and approved further talks. The latest proposed package will include checks to individuals and an extension of the paycheck protection program.

The U.S. Treasury Secretary Steven Mnuchin and House Speaker Nancy Pelosi resumed talks on the revised package of 1.8 trillion dollars on Friday. This gave hopes that the package will be delivered before elections and supported the GBP/USD pair’s risk sentiment.

On the Brexit front, on Friday, an E.U. diplomat said that European Union chief Brexit negotiator, Michel Barnier wanted a few more concessions from Britain before entering the last intense phase of negotiations on a trade deal.

The two main negotiators from the E.U. side, Barnier and David Frost, said they were inching towards a deal. However, they also said that important gaps remained on fishing, level playing field, and governance issues. 

As we already know, the PM Boris Johnson has given the 15th October deadline to reach a deal, and given this deadline, before reaching the final round of make-or-break negotiations, Barnier has asked for a few more concessions. It remains that Johnson will allow for a further concession or not; however, both sides have confirmed that they were prepared for a no-deal scenario if needed. 

Furthermore, France has sharpened its tone on fishing rights and warned that an agreement on the fishing issue with the United Kingdom would be an integral part of the Brexit deal, and its proposals have fallen short. The French Minister of the Sea Annick Girardin said that the U.K. had made unacceptable proposals, and the nation’s fisherman has said in response that they would prefer no-deal over a bad one.

On the data front, at 11:00 GMT, the Construction Output for August dropped to 3.0% against the forecasted 5.1% and weighed on GBP/USD pair. August’s GDP also fell to 2.1% from the forecasted 4.6% and weighed on GBP/USD pair. 

The Goods Trade Balance came in line with the expectations of -9.0B. The Index of Services for the quarter raised 7.1% from the forecasted 7.0% and supported British Pound. The Industrial Production for August decreased to 0.3% from the projected 2.6% and weighed on GBP. The Manufacturing Production for August also declined to 0.7% from the projected 3.2% and weighed on British Pound. Despite poor than expected macroeconomic data from Great Britain, the GBP/USD pair raised in the market to its one month’s highest level on the back of improved risk sentiment amid Brexit and U.S. stimulus package developments.

Daily Technical Levels

Support Resistance

1.2921     1.3013

1.2863     1.3049

1.2828     1.3106

Pivot Point: 1.2956

GBP/USD– Trading Tip

The GBP/USD is trading at 1.3043 level, holding right below an immediate resistance level of 1.3063. The resistance is extended by an upward channels’ trendline on the two-hourly timeframes. Below the 1.3063 resistance level, the Sterling can trigger selling until the 1.3003 level and 1.2959 level. On the higher side, a bullish breakout of 1.3063 levels can trigger buying until the 1.3127 level. The fundamental side is muted today, and the U.S. banks are closed in the observance of Columbus day; therefore, we may experience thin volatility 

USD/JPY – Daily Analysis

The USD/JPY pair was closed at 105.603 after placing a high of 106.039 and a low of 105.579. Overall the movement of the USD/JPY pair remained bearish throughout the day. On Friday, the USD/JPY pair dropped and reversed its direction as the U.S. President Donald Trump took a U-turn from his earlier statements related to the U.S. stimulus package. The market moved against the U.S. dollar and made it weak across the board after hopes for Joe Biden to win the election increased, and Trump approved stimulus talks.

On Friday, the U.S. President Donald Trump said he wanted a new and big stimulus package than earlier proposed in a radio interview. He said that he wanted to provide checks to Americans before elections. Whereas, earlier this week, Trump said that he wanted to halt further talks till elections, and after that, he said that he wanted a small stimulus package for airline workers.

The U-turn by U.S. President over the stimulus package gave a boost to risk sentiment as it increased the hopes that the package will be delivered before the elections. This weighed on the U.S. dollar, and the pair USD/JPY suffered on Friday. Furthermore, on Friday, Larry Kudlow said that Trump had approved the talks for a new proposed stimulus package worth $1.8 trillion. The talks for it have resumed on Friday between U.S. Treasury Secretary Steven Mnuchin and House Speaker Nancy Pelosi. 

On the data front, at 04:30 GMT, the Average Cash Earnings for the year declined to -1.3% against the forecasted -1.2% and weighed on the Japanese Yen. The Household Spending for the year from Japan also dropped to -6.9% from the forecasted -6.6% and weighed on the Japanese Yen. Despite Japan’s negative macroeconomic data, the USD/JPY pair remained bearish throughout the day amid broad-based U.S. dollar weakness. From the U.S. side, the Final Wholesale Inventories for August were released at 19:00 GMT that dropped to 0.4%from the projected 0.5% and supported the U.S. dollar. However, traders ignored the U.S. data as the focus was shifted completely towards the U.S. stimulus developments.

On the other hand, the United Kingdom’s coronavirus situation worsened as one of the U.K.’s top scientists warned that the country was at a tipping point. He said that more deaths from the viruses would follow a rise in cases in the coming weeks. He added that country was facing a similar situation that it last seen in March. The rising number of coronavirus cases worldwide raised safe-haven appeal and supported the Japanese Yen and weighed on the USD/JPY pair.

Daily Technical Levels

Support Resistance

105.53    105.80

105.42     105.98

105.25     106.08

Pivot point: 105.70

USD/JPY – Trading Tips

The USD/JPY traded sharply bearish to drop from 105.900 level to 105.450 mark. Most of the selling triggered after the USD/JPY violated an upward channel at 105.900 level. Currently, the USD/JPY pair is trading at 105.459 level, the support level that’s extended by double bottom level. A bearish breakout of 105.450 level may drive further selling until the 105.070 support level as the MACD, and the 50 periods EMA are in support of selling bias today. Let’s consider opening sell trade below 105.40 level today. Good luck!  

Categories
Forex Signals

EUR/JPY Upward Channel Underpins Bullish Trend – An Update on Signal 

During the Friday’s European trading hours, the EUR/JPY currency pair succeeded to extend its previous session gaining streak and hit the intra-day high level around above 125.00 level mainly due to the risk-on market sentiment, backed by the prevalent optimism over treatment for the highly infectious coronavirus, which tends to undermine the safe-haven Japanese yen and contributes to the currency pair gains. Moreover, the market risk tone was further boosted by the increasing expectations of further US stimulus package, which provided further boost to the currency pair. 

During the Friday’s European trading hours, the EUR/JPY currency pair succeeded to extend its previous session gaining streak and hit the intra-day high level around above 125.00 level mainly due to the risk-on market sentiment, backed by the prevalent optimism over treatment for the highly infectious coronavirus, which tends to undermine the safe-haven Japanese yen and contributes to the currency pair gains. Moreover, the market risk tone was further boosted by the increasing expectations of further US stimulus package, which provided further boost to the currency pair. 

During the Friday’s European trading hours, the EUR/JPY currency pair succeeded to extend its previous session gaining streak and hit the intra-day high level around above 125.00 level mainly due to the risk-on market sentiment, backed by the prevalent optimism over treatment for the highly infectious coronavirus, which tends to undermine the safe-haven Japanese yen and contributes to the currency pair gains. Moreover, the market risk tone was further boosted by the increasing expectations of further US stimulus package, which provided further boost to the currency pair. 

On the contrary, Europe’s quickly rising coronavirus (COVID-19) cases fueled the worries over the EUR economy recovery, which becomes the key factor that kept the lid on any additional gains in the currency pair. Meanwhile, the latest report that the Spanish Prime Minister (PM) Pedro Sánchez announced a state of emergency in Madrid also played a major role in capping further currency pair gains. As of writing, the EUR/JPY currency pair is currently trading at 124.97 and consolidating in the range between 124.51 – 125.02.

As we already mentioned that the equity market has been flashing green since the day started. The reason could be associated with the major positive catalysts. Be it the renewed probabilities of the further stimulus package or optimism over treatment for the highly infectious coronavirus, not to forget the upbeat China data, these all factors favor the market trading sentiment, which could be considered the main factors that kept the currency pair higher. 

It should be noted that the US President Donald Trump stepped back from his earlier ‘NO’ to the coronavirus (COVID-19) aid package talks. However, US President Donald Trump is ready to shift towards the large scale bill, which propels the market’s risk sentiment and weighs on the safe-haven Japanese yen. Apart from this, the coronavirus (COVID-19) vaccine’s hopes also favored the market risk tone, which eventually underpinned the safe-haven US Japanese yen and contributed to the currency pair gains.

As per the latest report, China joins the World Health Organization’s virus vaccine program after returning from one week-long holiday, which initially fueled the hopes of a disease cure. Meanwhile, the market trading sentiment was further bolstered by the positive reports that Gilead and Regeneron’s vaccine research efforts will offer strong results to stop the virus.

On the contrary, the Spanish Prime Minister (PM) Pedro Sánchez announced a state of emergency in Madrid as the COVID-19 cases in the UK and Germany are also worrisome. At the coronavirus front, the coronavirus cases grew to 314,660, with a total of 9,589 deaths toll, according to the German disease and epidemic control center, Robert Koch Institute (RKI) report. In the meantime, the cases rose by 4,516 on the day while the death toll rose by 11. The daily rise in new cases topped 4,000 for the second day in a row, the highest numbers since April 10. These virus fears could be considered one of the key factors that kept the lid on any additional currency pair gains.

In the absence of the major data/events on the day, the market traders will keep their eyes on the Canadian jobs data. In the meantime, the risk catalyst like geopolitics and the virus woes, not to forget the Brexit, will also be key to watch for the fresh direction.


Daily Support and Resistance

S1 121.85

S2 122.64

S3 123.04

Pivot Point 123.43

R1 123.83

R2 124.22

R3 125

The EUR/JPY has violated the triple top resistance level of 124.850 mark, and now this is opening further room for buying until the next resistance level of 125.300 level. On the lower side, the support continues to stay at 124.850 level. The MACD and the 50 periods EMA are also supporting the buying trend today and check out a trading plan below.

Entry Price – Buy 124.933

Stop Loss – 124.533

Take Profit – 125.333

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

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Forex Signals

EUR/USD Violated Symmetric Triangle Pattern – Brace for Selling! 

During the Friday’s European trading hours, the EUR/USD currency pair succeeded to extend its previous session gaining streak and hit the intra-day high level around above 1.1800 level mainly due to the broad-based U.S. dollar selling bias, triggered by the market risk-on sentiment. However, the market risk tone was being supported by optimism over a possible vaccine and treatment for the highly infectious coronavirus. 

During the Friday’s European trading hours, the EUR/USD currency pair succeeded to extend its previous session gaining streak and hit the intra-day high level around above 1.1800 level mainly due to the broad-based U.S. dollar selling bias, triggered by the market risk-on sentiment. However, the market risk tone was being supported by optimism over a possible vaccine and treatment for the highly infectious coronavirus. 

During the Friday’s European trading hours, the EUR/USD currency pair succeeded to extend its previous session gaining streak and hit the intra-day high level around above 1.1800 level mainly due to the broad-based U.S. dollar selling bias, triggered by the market risk-on sentiment. However, the market risk tone was being supported by optimism over a possible vaccine and treatment for the highly infectious coronavirus. 

Meanwhile, the increasing expectations of further U.S. stimulus packages also boosted the market trading sentiment, which keeps the U.S. dollar lower. Apart from this, the United States’ political uncertainty also weighs on the broad-based U.S. dollar, which provided an additional boost to the currency pair. 

On the contrary, Europe’s quickly rising coronavirus (COVID-19) cases fueled the worries over the EUR economy recovery, which becomes the key factor that kept the lid on any additional gains in the currency pair. Meanwhile, the latest report that the Spanish Prime Minister (PM) Pedro Sánchez announced a state of emergency in Madrid also played a significant role in capping further currency pair gains.

However, the reason for the risk-on market sentiment could be associated with the renewed probabilities of the further stimulus package, triggered after the U.S. President Donald Trump stepped back from his earlier ‘NO’ to the coronavirus (COVID-19) aid package talks. This was witnessed after the discussions between House of Representative Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin over the U.S. stimulus package resumed overnight. Apart from this, the coronavirus (COVID-19) vaccine’s hopes also favored the market risk tone, which eventually underpinned the safe-haven U.S. dollar. 

As per the latest report, China joins the World Health Organization’s virus vaccine program after returning from one week-long holiday, which initially fueled the hopes of a disease cure. Meanwhile, the market trading sentiment was further bolstered by the positive reports that Gilead and Regeneron’s vaccine research efforts will offer strong results to stop the virus.

As in result, the broad-based U.S. dollar failed to stop its previous session losing streak & remained depressed during the European session as the investors continue to sell U.S. dollars on the back of the U.S. fiscal stimulus hopes, which keeps the market sentiment bullish. Furthermore, the U.S. dollar losses could also be associated with political uncertainty in the U.S. ahead of U.S. elections. Thus, the losses in the U.S. dollar kept the currency pair higher.

On the contrary, the Spanish Prime Minister (PM) Pedro Sánchez announced a state of emergency in Madrid as the COVID-19 cases in the U.K. and Germany are also worrisome. At the coronavirus front, the coronavirus cases grew to 314,660, with a total of 9,589 deaths toll, according to the German disease and epidemic control center, Robert Koch Institute (RKI) report. In the meantime, the cases rose by 4,516 on the day while the death toll rose by 11. The daily rise in new cases topped 4,000 for the second day in a row, the highest numbers since April 10. These virus fears could be considered one of the key factors that kept the lid on any additional currency pair gains.


Daily Support and Resistance

S1 1.1626

S2 1.1672

S3 1.1694

Pivot Point 1.1718

R1 1.174

R2 1.1764

R3 1.181

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

Entry Price – Sell 1.17755

Stop Loss – 1.18155

Take Profit – 1.17355

Risk to Reward – 1:1

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

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

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

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

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

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Forex Signals

USD/CAD Failed To Stop Its Previous Session Losing Streak – What’s Next?

During Friday’s Early European trading session, the USD/CAD currency pair extended its previous session losses and dropped to the intra-day low below 1.3180 level, mainly due to the broad-based U.S. dollar weakness. The prevalent downtrend in the greenback is primarily tied to the optimism over the U.S. fiscal stimulus hopes, which keeps the market trading sentiment positive and contributed to the currency pair losses. Moreover, the U.S.’s political uncertainty also weighs on the already weaker U.S. dollar, which adds further burden around the currency pair. 

During Friday’s Early European trading session, the USD/CAD currency pair extended its previous session losses and dropped to the intra-day low below 1.3180 level, mainly due to the broad-based U.S. dollar weakness. The prevalent downtrend in the greenback is primarily tied to the optimism over the U.S. fiscal stimulus hopes, which keeps the market trading sentiment positive and contributed to the currency pair losses. Moreover, the U.S.’s political uncertainty also weighs on the already weaker U.S. dollar, which adds further burden around the currency pair. 

During Friday’s Early European trading session, the USD/CAD currency pair extended its previous session losses and dropped to the intra-day low below 1.3180 level, mainly due to the broad-based U.S. dollar weakness. The prevalent downtrend in the greenback is primarily tied to the optimism over the U.S. fiscal stimulus hopes, which keeps the market trading sentiment positive and contributed to the currency pair losses. Moreover, the U.S.’s political uncertainty also weighs on the already weaker U.S. dollar, which adds further burden around the currency pair. 

Across the pond, the reason for the declines in the currency pair could also be attributed to the recent surge in the crude oil prices, which underpinned the commodity-linked currency the Loonie and contributed to the currency pair’s declines. The crude oil prices were being supported by the Norwegian oil output disruption and risk-on market profile. As of writing, the USD/CAD currency pair is currently trading at 1.3175 and consolidating in the range between 1.3168 – 1.3204. Moving on, the currency pair traders seem cautious to place any strong position ahead of Canadian jobs data.

Despite the intensified Sino-US tussle, the market trading sentiment extended its previous-session positive tone and remained supportive by the combination of factors. The reason for the risk-on market trading sentiment could be attributed to the positive headlines suggesting that the Republican and Democratic policymakers agreed on a final push to reach a comprehensive aid package after President Donald Trump rejected talks earlier this week. However, these positive headlines helped the market’s risk sentiment and undermined the U.S. dollar’s safe-haven demand.

At the USD front, the broad-based U.S. dollar remained depressed as the investors continue to sell U.S. dollars on the back of the U.S. fiscal stimulus hopes, which keeps the market sentiment bullish. Moreover, the U.S. dollar losses could also be associated with political uncertainty in the U.S. ahead of U.S. elections. Thus, the losses in the U.S. dollar kept the currency pair lower. 

Crude oil fresh bids above $42 on the day backed by reports cited the Norwegian oil output disruption and risk-on market profile. In the meantime, the U.S. Secretary of State Mike Pompeo tweeted the Trump administration’s decision to increase hardships for Iran’s financial sector while imposing fresh sanctions on 18 banks from Iran, further fueling the disturbance in the oil supply and provided an additional boost to the oil prices. 

Moving on, the currency pair could face further losses as Canada is set to add 156.6K jobs in September. Hence, the big beat on the Canadian jobs data tends to underpin the Candian dollar, which could offer extra legs to the downside in the currency pair. Looking ahead, the market traders will keep their eyes on updates surrounding the Sino-US tussle and stimulus headlines. Whereas Canadian jobs data will be key to watch. In the meantime, the USD moves and coronavirus headlines will not lose its importance.


Daily Support and Resistance

S1 1.3233

S2 1.3272

S3 1.3292

Pivot Point 1.3312

R1 1.3331

R2 1.3351

R3 1.339

The USD/CAD is heading lower with a bearish bias at the 1.3170 level, having violated the support level of 1.3206 which now is working as a resistance. On the lower side, the USD/CAD pair may find support at 1.3174 area and 1.3080 support. We may enter a sell trade below 1.3209 level today or at least put the sell limit. Stay tuned and good luck! 

Categories
Forex Market Analysis

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

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

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

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

Economic Events to Watch Today  


 

EUR/USD – Daily Analysis

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

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

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

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

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

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

Daily Technical Levels

Support Resistance

1.1734    1.1784

1.1708    1.1808

1.1684    1.1834

Pivot point: 1.1758

EUR/USD– Trading Tip

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

GBP/USD – Daily Analysis

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

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

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

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

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

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

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

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

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

Daily Technical Levels

Support Resistance

1.2921    1.3013

1.2863   1.3049

1.2828    1.3106

Pivot Point: 1.2956

GBP/USD– Trading Tip

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

USD/JPY – Daily Analysis

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

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

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

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

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

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

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

Daily Technical Levels

Support Resistance

105.66    106.18

105.36    106.42

105.13    106.71

Pivot point: 105.89

USD/JPY – Trading Tips

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

Categories
Forex Signals

EUR/JPY Testing Double Top – Let’s Capture Bearish Correction!

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Entry Price – Sell 124.62
Stop Loss – 125.02
Take Profit – 124.22
Risk to Reward – 1:1
Profit & Loss Per Standard Lot = -$400/ +$400
Profit & Loss Per Micro Lot = -$40/ +$40
Fellas, now you can check out forex trading signals via Forex Academy mobile app. Follow the links below.
iPhone Users: https://apps.apple.com/es/app/fasignals/id1521281368
Andriod Users: https://play.google.com/store/apps/details?id=academy.forex.thesignal&hl=en_US

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Forex Signals

USD/CAD Breaking Below Double Bottom Support – Quick Outlook! 

The USD/CAD pair was closed at 1.32564 after placing a highof1.33404 and a low of 1.32548. The USD/CAD pair dropped and removed all of its previous day’s gains on Wednesday amid broad-based U.S. dollar weakness and increasing crude oil prices. The U.S. dollar weakness was due to Trump’s latest U-turn on Wednesday’s previous day’s statement. The U.S. President Donald Trump backed his statement of halting the negotiations with Democrats because of continuous disagreement between both parties over the stimulus measure’s size. However, a day after that, Trump again called for more aid to Americans from U.S. congress as airlines and other small businesses were facing huge crises. 

The USD/CAD pair was closed at 1.32564 after placing a highof1.33404 and a low of 1.32548. The USD/CAD pair dropped and removed all of its previous day’s gains on Wednesday amid broad-based U.S. dollar weakness and increasing crude oil prices. The U.S. dollar weakness was due to Trump’s latest U-turn on Wednesday’s previous day’s statement. The U.S. President Donald Trump backed his statement of halting the negotiations with Democrats because of continuous disagreement between both parties over the stimulus measure’s size. However, a day after that, Trump again called for more aid to Americans from U.S. congress as airlines and other small businesses were facing huge crises. 

The USD/CAD pair was closed at 1.32564 after placing a highof1.33404 and a low of 1.32548. The USD/CAD pair dropped and removed all of its previous day’s gains on Wednesday amid broad-based U.S. dollar weakness and increasing crude oil prices. The U.S. dollar weakness was due to Trump’s latest U-turn on Wednesday’s previous day’s statement. The U.S. President Donald Trump backed his statement of halting the negotiations with Democrats because of continuous disagreement between both parties over the stimulus measure’s size. However, a day after that, Trump again called for more aid to Americans from U.S. congress as airlines and other small businesses were facing huge crises. 

This U-turn by Trump raised risk sentiment in the market and supported the riskier Canadian Dollar that ultimately dragged the USD/CAD pair on Wednesday. The hopes for further stimulus dimmed on Tuesday after Trump’s advice to Republicans to stop negotiating with Democrats. These declined hopes added strength to the U.S. dollar on the previous day, but the strength was turned into weakness after Trump backed from his own statement on Wednesday.

The weak U.S. dollar added further pressure on the USD/CAD pair, and the pair posted big declines on Wednesday. Furthermore, the rising Crude oil prices also affected the USD/CAD pair movements on Wednesday. The WTI Crude oil rose on Wednesday despite the negative Crude Oil Inventories report from the United States.

At 19:30 GMT, the Crude Oil Inventories data from Energy Information Administration revealed that U.S. crude oil inventories for the previous week came in as 0.5M against -1.2M. The crude oil prices remained above $40 on Wednesday and added strength in commodity-linked currency Loonie. The rising crude oil prices raised the Canadian Dollar, which added pressure on the USD/CAD pair. Meanwhile, the Ivey Purchasing manager’s Index for September was released from Canada that dropped to 54.3 points against the forecasted 64.5 and weighed on the Canadian Dollar. It kept the losses in the USD/CAD pair limited on Wednesday.

Federal Reserve also released its September meeting minutes on Wednesday that revealed that officials were concerned about economic recovery and called for more stimulus measures to support the economic recovery. Minutes from Fed failed to give any specific direction to the USD/CAD pair on Wednesday, and the pair kept moving in a bearish trend.


Daily Technical Levels

Support Resistance

1.3222 1.3312

1.3192 1.3372

1.3132 1.3402

Pivot point: 1.3282

The USD/CAD is heading lower with a bearish bias at 1.3245 level, having violated the double bottom support level of 1.3250. The closing of the bearish engulfing pattern on the 4-hour timeframe triggered a bearish breakout, which is now likely to open further room for selling until 1.3202 levels. Checkout a trading plan below…

Entry Price – Sell 1.32344

Stop Loss – 1.32744

Take Profit – 1.31944

Risk to Reward – 1:1

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

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

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

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

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

Categories
Forex Market Analysis

Daily F.X. Analysis, 08th October – Top Trade Setups In Forex – ECB Monetary Policy Meeting! 

On the news side, the economic calendar is likely to offer another round of central bankers’ speeches worldwide. BOC Gov Macklem, BOE Gov Bailey, and SNB Chairman Jordan are due to speak today. Simultaneously, the day’s main highlight is likely to be ECB Monetary Policy Meeting Accounts and Unemployment Claims from the U.S. economy.

On the news side, the economic calendar is likely to offer another round of central bankers’ speeches worldwide. BOC Gov Macklem, BOE Gov Bailey, and SNB Chairman Jordan are due to speak today. Simultaneously, the day’s main highlight is likely to be ECB Monetary Policy Meeting Accounts and Unemployment Claims from the U.S. economy.

On the news side, the economic calendar is likely to offer another round of central bankers’ speeches worldwide. BOC Gov Macklem, BOE Gov Bailey, and SNB Chairman Jordan are due to speak today. Simultaneously, the day’s main highlight is likely to be ECB Monetary Policy Meeting Accounts and Unemployment Claims from the U.S. economy.

Economic Events to Watch Today  

 

EUR/USD – Daily Analysis

The EUR/USD pair was closed at 1.17637 after placing a high of 1.17816 and a low of 1.17248. On Wednesday, the EUR/USD pair recovered most of its previous day’s losses after the U.S. dollar became weak on the back of U.S. President Trump’s support to multiple aid measures. This raised the risk-on market sentiment and helped the EUR/USD pair to gain traction in the market.

On Tuesday, the U.S. president called off negotiations with Democrats over the next round of stimulus measure and spurred the risk-off market sentiment that weighed on currency pair. Just a day after this announcement, Trump flipped and changed his statement and called for checks to all Americans, especially Airlines and payroll protection. 

On the data front, the German Industrial Production for August dropped to -0.2% against the forecasted 1.5% and weighed on Euro. At 11:45 GMT, the French Trade Balance dropped to -7.7B against the projected -6.5B and weighed on single currency Euro. At 13:00 GMT, the Italian Retail Sales for August increased to 8.2% from the projected 3.8% and raised the EUR/USD pair.

Meanwhile, the European Central Bank’s President Christine Lagarde said that ECB would not remove monetary support until the coronavirus crisis remains. She reinforced that the central Bank and fiscal authorities must work together. Lagarde said that ECB should guard against premature withdrawal of stimulus and stated that the risk of more divergence in the euro area would remain even after the coronavirus crisis. Lagarde’s comments did not have any major impact on the EUR/USD currency pair as she did not provide any new information.

Whereas, on the U.S. front, the FOMC published its September meeting minutes on Wednesday. Minutes revealed that economic data was recovering faster than expected from the Q2 decline. The outlook for the Eurozone economy assumed additional fiscal support, and Fed lawmakers urged U.S. Congress to deliver the next round of aid packages. However, the Federal Reserve September meeting minutes also had no major impact on the EUR/USD pairs.

Moreover, as the U.S. President Donald Trump has repeatedly pushed for approving a vaccine before elections, the U.S. Food and Drug Administration (FDA) said that a coronavirus vaccine would not be approved by Election Day. This news raised the risk sentiment in the market and appreciated the EUR/USD pair.

Daily Technical Levels

Support Resistance

1.1729    1.1788

1.1697    1.1815

1.1670    1.1846

Pivot point: 1.1756

EUR/USD– Trading Tip

On Thursday, the EUR/USD is trading with a slight bullish bias around 1.1740 level, holding within an upward channel providing support at 1.1759 level and resistance at 1.1800. Bullish trend continuation may lead the EUR/USD exchange rate towards 1.1840 mark, and continuation of upward movement may lead the pair towards 1.1865. While on the lower side, support stays at 1.1760 and 1.1725 level today. The ECB Monetary Policy Meeting Accounts will be in highlights to determine the next movement in the market.  

GBP/USD – Daily Analysis

The GBP/USD pair was closed at 1.29181 after placing a high of 1.29294 and a low of 1.28449. The GBP/USD pair followed its previous day bearish trend dropped further in the earlier trading session; however, the pair managed to reverse its direction in the late session and posted gains for the day. The improving risk sentiment in the market helped GBP/USD pair to move upward on Wednesday.

The U.S. President Donald Trump flipped from its Tuesday’s statement that negotiations between Republicans and Democrats will not proceed until after the election. On Wednesday, Trump backed from it and called for additional support to Americans, especially Airline workers. This turn back from Trump was not expected and supported the risk sentiment that ultimately added strength to the GBP/USD pair.

Meanwhile, the statement by Michael Gove gave new optimism about the Brexit deal and supported British Pound. The Chancellor of Lancaster’s duchy said that there were 66% chances that a Brexit deal would be reached amid fresh optimism over a breakthrough on one stocking point of state aid. 

It seems like just like state aid, other sticking points will break, and the Brexit deal will be reached before the end of this year. This optimism lifted British Pound in the market against its rivals and pushed GBP/USD pair on the upside. However, some concerning news also circulated about the European Union being hard on fisheries issues in the market. E.U. had hardened its stance over the fisheries issue and said that Britain should be forced to hand over the same amount of fish as it used to do when it was an E.U. member. The rising concerns over fisheries sticking point limited the British Pound gains on Wednesday.

On the data front, at 12:32 GMT, the Halifax HPI from the United Kingdom for September rose to 1.6% from the projected 1.5% and supported British Pound. At 13:30 GMT, the Housing Price Index for the year in August dropped to 2.3% from the forecasted 3.4% and weighed on British Pound.

From the U.S. side, the Federal Reserve issued its meeting minutes from September, which showed that lawmakers were urging U.S. Congress to deliver the next round of stimulus package, and they were stressing the need for it. 

The economic data was recovering much better than expected in Q2, but the fiscal government still needed support. Minutes failed to impress the U.S. dollar, and the pair GBP/USD continued to move higher.

British Pound investors will closely look forward to the speech of Governor of Bank of England Andrew Bailey to find fresh clues about the U.K. economic condition. On the data front, the Unemployment Claims form the U.S. will also greatly impact the GBP/USD pair’s prices on Thursday.

Daily Technical Levels

Support Resistance

1.2921    1.3013

1.2863    1.3049

1.2828    1.3106

Pivot Point: 1.2956

GBP/USD– Trading Tip

The GBP/USD is trading at 1.2930 level, heading north to complete Fibonacci retracement, especially after breaking the bullish channel at 1.2930. For the moment, the same level is anticipated to produce resistance to the GBP/USD pair. We may notice a bullish movement in Sterling, particularly in the wake of bullish correction unto 1.2930. Failure to violate this mark or closing candles beneath the 1.2930 mark is anticipated to drive selling bias unto the 1.2865 level. The MACD and RSI support bullish bias. However, the recent smaller histograms of MACD advise neutral bias among traders. Let’s consider taking buy over 1.2956 or selling below the same.

USD/JPY – Daily Analysis

The USD/JPY closed at 105.962 after placing a high of 106.105 and a low of 105.593. The USD/JPY pair rose to its highest level since 14th September on Wednesday on the back of improved risk sentiment and U.S. dollar strength. Trump’s latest flip from his own words gave a push to risk sentiment in the market and supported the USD/JPY pair’s an upward trend on Wednesday.

The Federal Reserve issued minutes from its recent meeting, which showed that officials were worried about what would happen if financial aid decreased or disappeared. Furthermore, on Wednesday, the Minneapolis Federal Reserve President Neel Kashkari said that the U.S. economy would face enormous consequences if the next round of stimulus packages were not approved soon. He stated that there were no moral hazards in issuing more aid, and further delay would cause a much worse downturn. 

Kashkari added that unlike the 2008 financial crisis, the 2020 pandemic crisis was not born of financial system weakness, so financial aid must be approved to support airlines and other industries that were facing big damages. The comments from Kashkari raised concerns and helped improve risk sentiment that supported the USD/JPY pair’s bullish stance on the day.

Meanwhile, the Bank of Japan’s Governor Haruhiko Kuroda said that Japan’s economy was difficult, but it has started to pick up. He said that the impact of COVID-19 would be watched carefully to take additional steps in monetary easing. He added that Bank would not hesitate to further assess in time of need. Kuroda said that the Consumer Prices in Japan are likely to fall for the time being and will start to increase as the economy will improve. The comments from Kuroda also failed to provide any meaningful impact on the USD/JPY pair prices.

On the data front, the Leading Indicators from Japan were released at 10:00 GMT that came in line with 88.8% expectations. Furthermore, the U.S. President Donald Trump said that Republicans would not proceed with the negotiations on the U.S. Stimulus package with Democrats as they were proposing a $2.4 trillion package and Republicans were ready for only a $1.6 trillion packages. However, on Wednesday, Trump backed from his statement and asked for more aid from U.S. Congress for Americans, especially for airline workers and small businesses.

 

The flip of Trump raised risk sentiment in the market and weighed on the safe-haven Japanese Yen that lifted the USD/JPY pair. Moreover, the risk-sentiment was further bolstered by the news that the US FDA has said that the developed vaccine’s availability will be delayed until after the U.S. presidential elections on 03rd November. It also affected the Japanese Yen due to its safe-haven status and supported the USD/JPY pair is an upward trend.

Daily Technical Levels

Support Resistance

105.66    106.18

105.36    106.42

105.13    106.71

Pivot point: 105.89

USD/JPY – Trading Tips

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

Categories
Forex Signals

GBP/USD Trades Choppy – Brexit Woes and National Lockdown Hits! 

Today in the European trading hours, the GBP/USD currency pair managed to stop its previous session bearish moves and took bids around closer to the 1.2900 level. However, the bullish trend around the currency pair could be associated with the weaker U.S. dollar. The U.S. dollar lost its early-day gains as the market trading sentiment turned positive, which trimmed the U.S. dollar’s safe-haven bids and contributed to the currency pair gains. 

Today in the European trading hours, the GBP/USD currency pair managed to stop its previous session bearish moves and took bids around closer to the 1.2900 level. However, the bullish trend around the currency pair could be associated with the weaker U.S. dollar. The U.S. dollar lost its early-day gains as the market trading sentiment turned positive, which trimmed the U.S. dollar’s safe-haven bids and contributed to the currency pair gains. 

Today in the European trading hours, the GBP/USD currency pair managed to stop its previous session bearish moves and took bids around closer to the 1.2900 level. However, the bullish trend around the currency pair could be associated with the weaker U.S. dollar. The U.S. dollar lost its early-day gains as the market trading sentiment turned positive, which trimmed the U.S. dollar’s safe-haven bids and contributed to the currency pair gains. 

On the contrary, the downbeat catalysts, like uncertainty over the Brexit talks and concerns over national lockdown, become the key factors that kept the lid on any additional currency pair gains. At this particular time, the GBP/USD currency pair is currently trading at 1.2872 and consolidating in the range between 1.2867 – 1.2930.

Despite concerns about the coronavirus cases in some nations and U.S. President Donald Trump’s decision to end negotiations with Democrats on the economic stimulus package, the investors continued to cheer the latest reports suggesting that the U.S. President Trump showed a willingness to pass $25 billion for Airline Payroll Support and $135 billion for the Paycheck Protection Program for small businesses. This, in turn, provided a fresh boost to the market’s risk sentiment and trimmed the U.S. dollar’s safe-haven bids.

As in result, the broad-based U.S. dollar failed to maintain its positive traction and edged lower, at least for now. Moreover, the losses in the U.S. dollar could also be associated with the fresh risk-on mood. However, the U.S. dollar losses were further bolstered by the renewed concerns about the already shaky U.S. economic recovery. Thus, the losses in the U.S. dollar kept the GBP/USD currency pair higher. Whereas, the U.S. Dollar Index, which tracks the greenback against a basket of six other currencies, was up 0.1% at 93.737.

At the Brexit front, the Brexit related uncertainties remain on the card. As per the latest reports, the Irish Foreign Minister Simon Coveney said that the European Union (E.U.) Chief Brexit Negotiator Michel Barnier will not agree on intensified discussions unless the U.K. moves its stance on state aid. Furthermore, the news that the European states push for a hardliner in fisheries and knowingly delay the negotiations exerted extra downside pressure around the British Pound, which could be considered one of the key factors that kept the lid on any additional gains in the currency pair.

Also capping the pair’s gains could be the COVID-19 worries over the rise in northern England and looming concerns over national lockdown weigh the cable. Looking forward, the market traders keeping their eyes on the Fed Chair Jerome Powell’s scheduled speech. In the meantime, the updates surrounding the fresh Sino-US tussle, as well as the coronavirus (COVID-19), could not lose their importance.


Daily Support and Resistance

S1 1.2673

S2 1.279

S3 1.286

Pivot Point 1.2907

R1 1.2978

R2 1.3025

R3 1.3142

Entry Price – Buy 1.28932

Stop Loss – 1.28532

Take Profit – 1.29332

Risk to Reward – 1:1

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

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

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

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

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

Categories
Forex Signals

USD/CHF Trades Bearish Downward – Weaker Dollar in Play! 

During the Wednesday’s Asian trading hours, the USD/JPY currency pair failed to stop its previous sessU.S.n bearish trend and took further offers below the 0.9170 level. However, the reason for the bearish tone around the currency pair could be associated with the broad-based U.S. dollar weakness, triggered by the renewed concerns about the already shaky U.S. economic recovery. 

During the Wednesday’s Asian trading hours, the USD/JPY currency pair failed to stop its previous sessU.S.n bearish trend and took further offers below the 0.9170 level. However, the reason for the bearish tone around the currency pair could be associated with the broad-based U.S. dollar weakness, triggered by the renewed concerns about the already shaky U.S. economic recovery. 

During the Wednesday’s Asian trading hours, the USD/JPY currency pair failed to stop its previous sessU.S.n bearish trend and took further offers below the 0.9170 level. However, the reason for the bearish tone around the currency pair could be associated with the broad-based U.S. dollar weakness, triggered by the renewed concerns about the already shaky U.S. economic recovery. 

Apart from this, the upbeat market sentiment also undermined safe-havU.S. U.S. dollar and contributed to the currency pair losses. On the contrary, the U.S. positive tone around the equity market undermined the safe-haven Swiss franc, which becomes the fU.S.tor that helps the USD/CHF currency pair limit its deeper losses. Currently, the USD/CHF currency pair is currently trading at 0.9168 and consolidating in the range between 0.9160 – 0.9186.

The market trading sentiment remained supported by reports suggesting that the U.S. President Trump showed a willingness to pass $25 billion for Airline Payroll Support and $135 billion for small businesses for the Paycheck Protection Program. The U.S. positive data provided a fresh boost to the market’s risk sentiment and trimmed the U.S. dollar’s safe-haven bids.

However, the optimism around the equity market was unaffected by U.S. President Donald Trump’s decision to cancel the talks with Democrats on theU.S.conomic stimulus package to boost the coronavirus-hit economy. It is worth recalling that the theU.S. President Donald Trump canceled talks with Democrats over the stimulus package, which raised doubts about the U.S. economic recovery. This, in turn, led in no small fallU.S.n the U.S. equity markets on Tuesday, but the reaction turned out to be short-lived.

As a result of the upbeat markeU.S.sentiment, the broad-based U.S. dollar failed to gain any positiU.S. traction during the European trading session. Besides, the losses could be associated with the renewed concerns about the already shakyU.S.S economic recovery, which also undermine the broad-based U.S. dollar. However, the U.S. dollar losses became the key factor that kept the currency pair under pressure. U.S.ereas, the U.S. Dollar Index, which tracks the greenback U.S.ainst a basket of six other currenciU.S., was up 0.1% at 93.737.

Looking forward, the market traders keeping their eyes on theU.S. Chair Jerome Powell’s scheduled speech. In the meantime, the updates surrounding the fresh Sino-US tussle, as well as the coronavirus (COVID-19), could not lose their importance.


Daily Support and Resistance

S1 0.9127

S2 0.9164

S3 0.9185

Pivot Point 0.9202

R1 0.9222

R2 0.9239

R3 0.9277

The USD/CHF pair is trading with a bearish bias at 0.9165 level, forming a downward channel on the 4-hour timeframe. On the lower side, the bearish trend continuation is likely to drive the selling trend until the 0.9140 support level. At the same time, the MACD is also forming smaller histograms than before, suggesting selling bias in the market. Here’s a quick trade plan… 

Entry Price – Sell 0.91736

Stop Loss – 0.92136

Take Profit – 0.91336

Risk to Reward – 1:1

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

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

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

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

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

Categories
Forex Signals

EUR/JPY Extends Bullish Bias Amid Faded Safe Haven – Signal Update 

During the Wednesday’s Asian trading hours, the EUR/JPY currency pair extended its Asian session winning streak and remain bullish around above 124.50 level mainly due to a fresh and robust rebound in the equity markets, which undermined the Japanese yen’s safe-haven demand and turned out to be the key factor that extending some support to the USD/JPY currency pair. However, market traders digested the US President Donald Trump’s decision to cancel talks with Democrats on the stimulus package. This was witnessed after the steep fall in the US equity markets turned out to be short-lived. 

During the Wednesday’s Asian trading hours, the EUR/JPY currency pair extended its Asian session winning streak and remain bullish around above 124.50 level mainly due to a fresh and robust rebound in the equity markets, which undermined the Japanese yen’s safe-haven demand and turned out to be the key factor that extending some support to the USD/JPY currency pair. However, market traders digested the US President Donald Trump’s decision to cancel talks with Democrats on the stimulus package. This was witnessed after the steep fall in the US equity markets turned out to be short-lived. 

During the Wednesday’s Asian trading hours, the EUR/JPY currency pair extended its Asian session winning streak and remain bullish around above 124.50 level mainly due to a fresh and robust rebound in the equity markets, which undermined the Japanese yen’s safe-haven demand and turned out to be the key factor that extending some support to the USD/JPY currency pair. However, market traders digested the US President Donald Trump’s decision to cancel talks with Democrats on the stimulus package. This was witnessed after the steep fall in the US equity markets turned out to be short-lived. 

On the contrary, the dismal German industrial figures and coronavirus woes in Europe ten undermine the shard currency and become the key factor that kept the lid on any additional gains in the currency pair. As of writing, the EUR/JPY currency pair is currently trading at 124.64 and consolidating in the range between 123.86 – 124.72.

As we already mentioned, the Industrial Production in Germany unexpectedly dropped in August, as per the official data showed on the day, suggesting that the manufacturing sector’s recovery is losing momentum. Apart from this, the bearish sentiment around the shared currency was further bolstered by the World Health Organization’s (WHO) Regional European Director Hans Kluge warnings that Europeans suffer “pandemic fatigue” from the disruption caused by the rapid spread of the coronavirus. Thus, it was seen as one of the key factors that capped further currency pair gains.

On the contrary, the positive mood around the equity markets, triggered by a strong pickup in the US Treasury bond yields, tends to undermine the Japanese yen’s safe-haven demand and becomes one of the key factors that kept the currency pair intra-day high. It is worth recalling that the US President Donald Trump’s yesterday’s decision to cancel negotiations with Democrats over the stimulus package raised doubts about the US economic recovery. This, in turn, led to a large fall in the US equity markets on Tuesday, but the reaction turned out to be short-lived.

Looking forward, the market traders keeping their eyes on the Fed Chair Jerome Powell’s scheduled speech. In the meantime, the updates surrounding the fresh Sino-US tussle, as well as the coronavirus (COVID-19), could not lose their importance.


Daily Support and Resistance

S1 121.85

S2 122.64

S3 123.04

Pivot Point 123.43

R1 123.83

R2 124.22

R3 125

The EUR/JPY pair is trading with a bullish bias at 124 level as the single currency Euro gained bullish momentum. Simultaneously, the Japanese yen is getting weaker, just like gold amid weakness in the safe-haven appeal. We opened a buying trade over 124.175 level as it was extended by an upward channel on the 2-hour timeframe. Since we are already out, encashing 36 green pips, I would like to take a second trade, perhaps, a selling one below the 125.300 resistance level now. Let’s brace for it! 

Categories
Forex Market Analysis

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

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

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

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

Economic Events to Watch Today  

EUR/USD – Daily Analysis

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

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

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

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

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

Daily Technical Levels

Support Resistance

1.1726     1.1817

1.1670     1.1854

1.1634     1.1909

Pivot point: 1.1762

EUR/USD– Trading Tip

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

GBP/USD – Daily Analysis

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

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

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

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

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

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

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

Daily Technical Levels

Support Resistance

1.2921     1.3013

1.2863     1.3049

1.2828     1.3106

Pivot Point: 1.2956

GBP/USD– Trading Tip

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

USD/JPY – Daily Analysis

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

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

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

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

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

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

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

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

Daily Technical Levels

Support Resistance

105.39     105.91

105.08     106.12

104.88     106.43

Pivot point: 105.60

USD/JPY – Trading Tips

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

Categories
Forex Options

FX Options Market Combined Volume Expiries for 7th October 2020

Thank you for visiting the Forex Academy FX Options market combined volume expiries section. Each day, where available, we will bring you notable maturities in FX Options of amounts of $100 million-plus, and where these large combined maturities at specified currency exchange rates often have a magnetic effect on price action, especially in the hours leading to their maturities, which happens daily at 10.00 AM Eastern time. This is because the big institutional players hedge their positions accordingly. Each option expiry should be considered ‘in-play’ with a good chance of a strike if labelled in red, still in play and a possible strike if labelled in orange and ‘out of play’ and an unlikely strike if labelled in blue, with regard to the likelihood of price action meeting the strike price at maturity.

Thank you for visiting the Forex Academy FX Options market combined volume expiries section. Each day, where available, we will bring you notable maturities in FX Options of amounts of $100 million-plus, and where these large combined maturities at specified currency exchange rates often have a magnetic effect on price action, especially in the hours leading to their maturities, which happens daily at 10.00 AM Eastern time. This is because the big institutional players hedge their positions accordingly. Each option expiry should be considered ‘in-play’ with a good chance of a strike if labelled in red, still in play and a possible strike if labelled in orange and ‘out of play’ and an unlikely strike if labelled in blue, with regard to the likelihood of price action meeting the strike price at maturity.

Thank you for visiting the Forex Academy FX Options market combined volume expiries section. Each day, where available, we will bring you notable maturities in FX Options of amounts of $100 million-plus, and where these large combined maturities at specified currency exchange rates often have a magnetic effect on price action, especially in the hours leading to their maturities, which happens daily at 10.00 AM Eastern time. This is because the big institutional players hedge their positions accordingly. Each option expiry should be considered ‘in-play’ with a good chance of a strike if labelled in red, still in play and a possible strike if labelled in orange and ‘out of play’ and an unlikely strike if labelled in blue, about the likelihood of price action meeting the strike price at maturity.

…………………………………………………………………………………………………………

FX option expiries for Tuesday, October 7 at the 10 am NY cut

USDJPY (USD amount)

  • 105.10 385m
  •  105.25 450m
  •  105.50 1.8bn
  •  106.20 549m

USDJPY is close to an area of resistance and is overbought. The 105.50 option expiry level looks open for a retest.

………………………………………………………………………………….

As you can see on the preferred 1-hour chart(s), we have also plotted the expiration levels at the various exchange rate maturities, and we have also labelled in red, orange, and blue.  Therefore, if you see option expiry exchange rates labelled in red, these should be considered in-play because we believe there is a greater chance of the expiry maturing at these levels based on technical analysis at the time of writing. There is still a lesser possibility of a strike if they are in orange, and so these are ‘in-play’ too. However, if we have labelled them in blue, they should be considered ‘not in-play,’ Therefore, price action would be unlikely to reach these levels, which are often referred to as Strikes, at the time of the 10 AM New York cut.

Our technical analysis is based on exchange rates, which may be several hours earlier in the day and may not reflect price action at the time of the maturities. We have not factored in economic data releases or keynote speeches by policymakers, or potential market volatility leading up to the cut.

Although we have added some technical analysis, we suggest you take the levels and plot them onto your own trading charts and incorporate the information into your own trading methodology to use the information to your advantage. Remember, the higher the amount, the larger the gravitational pull towards the exchange rate maturity at 10:00 AM Eastern time.

If you want to learn how forex option expiries affect price action in the spot FX market, see our educational article by clicking here: https://bit.ly/2VR2Nji

DISCLAIMER: Please note that this information is for educational purposes. Also, the maturities will look more or less likely to become a strike at 10 AM NY time due to exchange rate fluctuations resulting in a different perspective regarding technical analysis and upcoming economic data releases for the associated pairs.

Categories
Forex Signals

Gold Bullish Bias Continues – Upward Channel Plays! 

Today in the European trading session, the yellow metal prices succeeded in stopping its early-day losing streak and took some modest bids in the last hour near above the 1,915 level. However, the overall bullish tone around the bullion prices could be associated with the broadly weaker U.S. dollar as the gold price is inversely related to the U.S. dollar price. The U.S. dollar was being pressured by the upbeat market mood, as well as, the hopes for the latest U.S. stimulus measures also kept the U.S. dollar under pressure. 

Today in the European trading session, the yellow metal prices succeeded in stopping its early-day losing streak and took some modest bids in the last hour near above the 1,915 level. However, the overall bullish tone around the bullion prices could be associated with the broadly weaker U.S. dollar as the gold price is inversely related to the U.S. dollar price. The U.S. dollar was being pressured by the upbeat market mood, as well as, the hopes for the latest U.S. stimulus measures also kept the U.S. dollar under pressure. 

Today in the European trading session, the yellow metal prices succeeded in stopping its early-day losing streak and took some modest bids in the last hour near above the 1,915 level. However, the overall bullish tone around the bullion prices could be associated with the broadly weaker U.S. dollar as the gold price is inversely related to the U.S. dollar price. The U.S. dollar was being pressured by the upbeat market mood, as well as, the hopes for the latest U.S. stimulus measures also kept the U.S. dollar under pressure. 

Apart from this, the U.S. political uncertainty ahead of the presidential election on November 3 kept challenging the market risk-on tone and helped the safe-haven metal. On the contrary, the overnight optimism that the U.S. President Donald Trump discharged from the hospital becomes the key factor that kept the lid on any additional gains in the yellow metal prices. The yellow metal prices are currently trading at 1,916.65 and consolidating in the range between 1,906.76 – 1,918.09.

However, the market trading sentiment kept struggling to extend its previous session positive bias and remained supportive by the latest optimism over the U.S. President Donald Trump’s return to the White House following a 3-day hospital stay due to coronavirus infection. Apart from this, the expectations of further stimulus from America also positively impacted the market trading sentiment. These hopes could be considered as one of the key factors that undermining safe-haven assets, including gold.

Across the Pond, the tensions between China and the U.S. keep gaining market attention and challenged the market risk-on tone. The renewed US-China tussle at the US-China front keeps challenging the market risk mood, adding further pessimism around the currency pair. As per the latest report, the Dragon Nation continues criticizing the U.S. ban on TikTok and WeChat at the World Trade Organization (WTO). These conflicting headlines might help the safe-haven metal prices by increasing the safe-haven demand in the market.

Elsewhere, the upbeat US ISM Services PMI data failed to leave any major impact on the market as the U.S. dollar hit a fresh low. At the USD front, the broad-based U.S. dollar remained depressed as the investors continue to sell U.S. dollars in the wake of the low safe-haven demand in the market. Looking forward, the market traders keeping their eyes on the Fed Chair Jerome Powell’s scheduled speech. In the meantime, the updates surrounding the fresh Sino-US tussle, as well as the coronavirus (COVID-19), could not lose their importance.


Daily Support and Resistance

S1 1847.32

S2 1874.78

S3 1887.18

Pivot Point 1902.24

R1 1914.64

R2 1929.7

R3 1957.16

The yellow metal gold continues to trade bullish at 1,911 levels. The formation of candles beyond the 1,908 mark is likely to support the gold today. On the 4 hour chart, candles closing below 1,908 mark are expected to drive more selling till 1,900 levels, while the bullish breakout of 1,917 resistance may ascertain the next trend in the market. Although we opened a sell trade during the European session in gold, we soon realized that it’s not worth holding gold as it’s forming a bullish setup. The bullish bias remains solid above 1,908. Good luck! 

Categories
Forex Signals

EUR/JPY Enters Oversold Zone – Can We Expect Bearish Correction?

The EUR/JPY currency pair extended its Asian session declining streak and remain depressed around below 124.50 level mainly due to the cautious mood around the equity markets, which tend to underpin the Japanese yen’s safe-haven demand and turned out to be the key factor that exerting some pressure on the EUR/JPY currency pair. Apart from this, the latest optimism over the US-Japan relationship provided further support to the Japanese yen, which add further pessimism around the currency pair. 

The EUR/JPY currency pair extended its Asian session declining streak and remain depressed around below 124.50 level mainly due to the cautious mood around the equity markets, which tend to underpin the Japanese yen’s safe-haven demand and turned out to be the key factor that exerting some pressure on the EUR/JPY currency pair. Apart from this, the latest optimism over the US-Japan relationship provided further support to the Japanese yen, which add further pessimism around the currency pair. 

The EUR/JPY currency pair extended its Asian session declining streak and remain depressed around below 124.50 level mainly due to the cautious mood around the equity markets, which tend to underpin the Japanese yen’s safe-haven demand and turned out to be the key factor that exerting some pressure on the EUR/JPY currency pair. Apart from this, the latest optimism over the US-Japan relationship provided further support to the Japanese yen, which add further pessimism around the currency pair. 

On the contrary, the better-than-forecasts German Factory Orders data and positive comments from the ECB policymakers over the EUR economy help the currency pair to limit its deeper losses. As of writing, the EUR/JPY currency pair is currently trading at 1.1780 and consolidating in the range between 1.1766 – 1.1802.

As we already mentioned, the German Factory Orders improved more-than-expected in August, suggesting that the manufacturing sector recovery in Europe’s largest economy is regaining traction. This, in turn, underpinned the shard currency and becomes the key factor that kept the lid on any additional losses in the currency pair. At the data front, the Contracts for goods’ Made in Germany’ came in at +4.5% on the month vs. +2.6% expected and +2.8% last, as per the latest data showed by the Federal Statistics Office showed on the day. Annually, Germany’s Industrial Orders dropped only by 2.2% in the reported month vs. -7.3% previous and -19.9% expectations.

Apart from this, the positive comments from the ECB policymakers over the euro area economy also played its role in capping the currency pair losses. As per the latest comment from the European Central Bank (ECB) policymaker and Irish Central Bank Governor Gabriel Makhlouf, the euro area economy has recovered sharply from the trough seen in April. 

On the contrary, the cautious mood around the equity markets, triggered by the US political uncertainty ahead of the presidential election on November 3, tends to underpin the Japanese yen’s safe-haven demand and becomes one of the key factors that kept the currency pair under pressure. However, the overnight optimism over the US President Donald Trump’s return to the White House recently overshadowed by the prevalent US political uncertainty. In the meantime, the hopes of a compromise over a new coronavirus relief package also failed to boost trading’ sentiment, which is not good for the currency pair.

At the US-China front, the renewed US-China tussle also keeps challenging the market risk mood, which might add further pessimism around the currency pair. As per the latest report, the Dragon Nation continuing criticizing the US ban on TikTok and WeChat at the World Trade Organization (WTO). 

Across the pond, the losses in the currency pair were further bolstered after the US Secretary of State Mike Pompeo said that Japan’s Prime Minister (PM) Yoshihide Suga would strengthen the relationship with the US, which in turn, Japanese yen got impressed and added further downside pressure around the EUR/JPY currency pair.


Technically, the EUR/JPY pair is trading bearish today at 124.200 level, holding over the 38.2% Fibonacci retracement level. Recently, the EUR/JPY formed a bearish engulfing pattern on the 4-hour timeframe that may lead the pair towards 124.055 level. The candle’s closing below 124.055 level may extend the selling trend until the 61.8% Fibonacci retracement level of 123.66. But in case, if the EUR/JPY pair reverses and breaks the resistance level of 124.700 level, then I will consider closing the signal in the loss. Let’s keep an eye on it.

Entry Price – Sell 124.42

Stop Loss – 124.82

Take Profit – 123.92

Risk to Reward – 1:1

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

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

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

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

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

Categories
Forex Signals

GBP/JPY on a Bearish Run – 61.8% Fibonacci Retracement in Play!

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GBP/JPY on a Bearish Run – 61.8% Fibonacci Retracement in Play! 

The GBP/JPY pair failed to keep its early-day bullish momentum and dropped well below the 137 level despite the upbeat market sentiment. However, the prevalent bearish sentiment around the currency pair could be associated with U.K. Housing Equity Withdrawal q/q figures, which fell from -4.5B to -7.7B mark, missing the economists forecast of -4.3B.

Besides this, the currency pair’s declines were further bolstered after the U.S. Secretary of State Mike Pompeo said Japan’s Prime Minister (PM) Yoshihide Suga would strengthen the relationship with the U.S. Thus, the Japanese yen got impressed by the above comments, which adds further downside pressure around the GBP/JPY currency pair. On the contrary, the market upbeat mood, backed by optimism over US President Trump’s health, could be considered one of the key factors that help the currency pair limit its deeper losses. 

At the US-China front, the renewed US-China tussle also keeps challenging the market risk-on mood, which might add further pessimism around the currency pair. As per the latest report, the Dragon Nation recently fueled the Sino-American tussle by criticizing the US ban on TikTok and WeChat at the World Trade Organization (WTO). 

Across the ocean, the currency pair losses got an additional boost after the US Secretary of State Mike Pompeo said Japan’s Prime Minister (PM) Yoshihide Suga is a ‘powerful force for good’, as well as Pompeo further added that he believes Suga will strengthen the relationship with the US.

These positive comments tend to underpin the Japanese yen currency and drag the currency pair lower.

The GBP/JPY has formed a sharp bearish a candle below 137.450 resistance area. Closing of candles below this leve suggests odds of a selling bias in the market, especially when the MACD has also formed a bearish crossover 


Doji candle over a resistance become support level of 1.3245, which signifies weakness in the selling bias. Simultaneously, the USD/CAD’s MACD is forming smaller histograms than before, and it’s an indication of a potential bullish bais. On the lower side, the GBP/JPY pair may drop until 136.500 that marks 38.2% Fibonacci retracement level and even below this until 61.8% Fibo level of 135.940 level. Good luck! 

Entry Price – Sell 136.89
Stop Loss – 137.29
Take Profit – 136.39
Risk to Reward – 1:1
Profit & Loss Per Standard Lot = -$400/ +$400
Profit & Loss Per Micro Lot = -$40/ +$40
Fellas, now you can check out forex trading signals via Forex Academy mobile app. Follow the links below.
iPhone Users: https://apps.apple.com/es/app/fasignals/id1521281368
Andriod Users: https://play.google.com/store/apps/details?id=academy.forex.thesignal&hl=en_US

Categories
Forex Signals

USD/CAD Resistance Become Support Level – Brace for Bullish Signal

During Tuesday’s Asian trading session, the USD/CAD currency pair managed to stop its previous session losses and refreshed daily highs, around the 1.3270 level due to the mixed sentiment around the crude oil prices, which tend to undermine the commodity-linked currency the Loonie and helps the currency pair to put the fresh bids during the early European session.

During Tuesday’s Asian trading session, the USD/CAD currency pair managed to stop its previous session losses and refreshed daily highs, around the 1.3270 level due to the mixed sentiment around the crude oil prices, which tend to undermine the commodity-linked currency the Loonie and helps the currency pair to put the fresh bids during the early European session.

During Tuesday’s Asian trading session, the USD/CAD currency pair managed to stop its previous session losses and refreshed daily highs, around the 1.3270 level due to the mixed sentiment around the crude oil prices, which tend to undermine the commodity-linked currency the Loonie and helps the currency pair to put the fresh bids during the early European session.

On the contrary, the broad-based U.S. dollar weakness, triggered by the combination of factors, could be considered as one of the key factors that kept the lid on any additional gains in the currency pair. As of writing, the USD/CAD currency pair is currently trading at 1.3269 and consolidating in the range between 1.3241 – 1.3274.

Despite the fears of fresh lockdown restrictions in the U.K. and Europe, the equity market sentiment remained well supported by optimism over the U.S. President Donald Trump’s recovery from COVID-19. As per the latest report, the U.S. President Donald Trump returned to the White House after a 3-night hospital stay due to coronavirus infection, which boosted the market risk tone and undermined the safe-haven U.S. dollar.

Apart from this, the possibilities of a soft Brexit remain high, which keeps investors relax. In the meantime, the U.S. House Speaker Nancy Pelosi and the Treasury Secretary Steve Mnuchin keep struggling even to start the stimulus talks, which add further boost around the market trading sentiment.

As a result, the broad-based U.S. dollar remained depressed as the investors continue to sell U.S. dollars in the wake of the market’s low safe-haven demand. Moreover, the U.S. dollar losses could also be associated with the rising hopes that the U.S. Congress will reach an agreement over the latest stimulus measures to control the economic impact of COVID-19. Thus, the U.S. dollar losses become the key factor that cap further gains in the currency pair. Whereas, the U.S. Dollar Index, which tracks the greenback against a bucket of other currencies, dropped by 0.03% to 93.468 by 9:52 PM ET (1:52 AM GMT).

At the crude oil front, WTI crude oil prices still reporting mixed signals. However, the crude oil prices took some bids during the early day, supported by the marker risk-on mood and weaker U.S. dollar. Besides, the crude oil prices’ gains were further supported by the reports that show growing workers’ strike in Norway that could reduce the country’s production capacity. Thus, the crude oil prices’ upticks underpinned the commodity-linked currency, the Loonie, and exerted some downside pressure on the currency pair.

Looking forward, the market traders keeping their eyes on the Fed Chair Jerome Powell’s scheduled speech. In the meantime, the updates surrounding the fresh Sino-US tussle, as well as the coronavirus (COVID-19), could not lose their importance.


Daily Support and Resistance

S1 1.3233
S2 1.3272
S3 1.3292
Pivot Point 1.3312
R1 1.3331
R2 1.3351
R3 1.339

The USD/CAD has closed a Doji candle over a resistance become support level of 1.3245, which signifies weakness in the selling bias. At the same time, the USD/CAD’s MACD is forming smaller histograms than before, and it’s an indication of a potential bullish bais. The USD/CAD may find the next resistance at 1.3305 and 1.3330 level while the support is likely to stay at 1.3245 and 1.3205.

Entry Price – Buy 1.32651
Stop Loss – 1.32251
Take Profit – 1.33051
Risk to Reward – 1:1
Profit & Loss Per Standard Lot = -$400/ +$400
Profit & Loss Per Micro Lot = -$40/ +$40
Fellas, now you can check out forex trading signals via Forex Academy mobile app. Follow the links below.
iPhone Users: https://apps.apple.com/es/app/fasignals/id1521281368
Andriod Users: https://play.google.com/store/apps/details?id=academy.forex.thesignal&hl=en_US

Categories
Forex Signals

AUD/USD Breaking Below Descending Triangle Pattern – Brace for Selling! 

The AUD/USD currency pair failed to extend its early-day bullish moves and dropped below the 0.7200 level despite the upbeat market sentiment and weaker U.S. dollar. Conclusion: as we all know that these both factors tend to support the currency pair; unfortunately, the currency pair was rather unaffected by these positive factors. However, the reason for the ongoing bearish sentiment around the currency pair could be associated with the RBA’s announcement of no rate change, which is seen as negative, or bearish for the AUD currency. 

The AUD/USD currency pair failed to extend its early-day bullish moves and dropped below the 0.7200 level despite the upbeat market sentiment and weaker U.S. dollar. Conclusion: as we all know that these both factors tend to support the currency pair; unfortunately, the currency pair was rather unaffected by these positive factors. However, the reason for the ongoing bearish sentiment around the currency pair could be associated with the RBA’s announcement of no rate change, which is seen as negative, or bearish for the AUD currency. 

The AUD/USD currency pair failed to extend its early-day bullish moves and dropped below the 0.7200 level despite the upbeat market sentiment and weaker U.S. dollar. Conclusion: as we all know that these both factors tend to support the currency pair; unfortunately, the currency pair was rather unaffected by these positive factors. However, the reason for the ongoing bearish sentiment around the currency pair could be associated with the RBA’s announcement of no rate change, which is seen as negative, or bearish for the AUD currency. 

Meanwhile, the losses in the currency pair were further bolstered after the RBA shared a dovish view on the Australian economy, which eventually undermined the Australian dollar and contributed to the currency pair gains. On the contrary, the broad-based U.S. dollar weakness, buoyed by the market risk-on mood, could be considered the key factor that might cap the further downside for the currency pair. Furthermore, the positive reports over the U.S. President Donald Trump’s health also help the currency pair limit its deeper losses. The AUD/USD currency pair is currently trading at 0.7152 and consolidating in the range between 0.7147 – 0.7208.

Despite the ongoing rise in the COVID-19 cases, coupled with the fears of lockdown restrictions, the pair’s loosest trading sentiment has been flashing green since the day started. However, the market trading tone was being supported by the optimism over the U.S. President Trump’s health. As per the latest report, the U.S. President Donald Trump returned to the White House after a three-night hospital stay due to coronavirus infection, which boosted the market risk tone and helped the currency pair to limit its deeper losses. 

However, the concern over the U.S. President Trump’s health remains on the card. It should be noted that the U.S. President Trump released a video to confirm that he will soon trail the presidential election race, after losing a high time off-late. However, the video clip showed that U.S. President Trump’ is still struggling while speaking, raising concerns for his health. Thus, these concerns might keep the market sentiment cautious.

At home, the Reserve Bank of Australia (RBA) kept its cash rate and the targeted yield on 3-year bonds unchanged at 0.25% during the latest announcement. In the meantime, the RBA shared a dovish view on the Australian economy, which undermined the Australian dollar and contributed to the currency pair losses. According to the RBA latest report, Unemployment and underemployment rate are expected to remain high for an extended period, as well as “Wage, and inflation pressures remain very depressed.”.

Furthermore, the reason for the losses in the currency pair could be associated with some repositioning trade ahead of the Australian budget. It should be noted that the Australian government is expected to unveil a fiscal blueprint and introduce other measures to drive the economic recovery from the coronavirus-induced recession. This might weak the AUD demand and drag the currency pair further down.


At the USD front, the broad-based U.S. dollar failed to gain any positive traction on the day amid risk-on market sentiment. Moreover, the U.S. dollar losses could also be associated with the rising hopes that the U.S. Congress will reach an agreement over the latest stimulus measures to control the economic impact of COVID-19. However, the U.S. dollar losses became the key factor that kept the currency pair’s losses limited. Whereas, the U.S. Dollar Index, which tracks the greenback against a bucket of other currencies, dropped by 0.03% to 93.468 by 9:52 PM ET (1:52 AM GMT). Looking forward, the market traders keeping their eyes on the Fed Chair Jerome Powell’s scheduled speech. In the meantime, the updates surrounding the fresh Sino-US tussle, as well as the coronavirus (COVID-19), could not lose their importance.

Daily Support and Resistance

S1 0.7068

S2 0.7112

S3 0.7138

Pivot Point 0.7157

R1 0.7182

R2 0.7201

R3 0.7245

The AUDUSD is likely to trade with a bearish bias today, as we can see on the hourly timeframe, gold has violated an upward trendline support level of 0.7177 level, and the closing of candles below this level is likely to drive selling bias until 0.7160 and 0.7140 level. Selling bias remains dominant today.

Entry Price – Sell 0.71701

Stop Loss – 0.72101

Take Profit – 0.71301

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