Categories
Forex Signals

AUD/USD Completes 61.8% Fibonacci Retracement – Brace for Buying Signal! 

The AUD/USD currency pair failed to extend its early-day gains and edged lower around below the mid-0.7100 level, mainly due to the risk-off market sentiment triggered by the latest headlines surrounding U.S. President Donald Trump’s infection to the coronavirus (COVID-19). 

Furthermore, the renewed concern about the second wave of coronavirus infections also weighed on the market trading sentiment, which eventually undermined the perceived riskier Australian dollar and contributed to the currency pair declines. In the meantime, the U.S. policymakers’ failures to break the deadlock over the COVID-19 stimulus talks also keeps the market trading sentiment under pressure. Across the ocean, the broad-based U.S. dollar strength, supported by the risk-off market sentiment, also played its significant role in lowering the currency pair. 

On the contrary, the upbeat Aussie Retail Sales data showed that the Australian Retail Sales shrank lesser than -4.2% forecast to -4.0% in September, becoming the key factor that helps the currency pair limit its deeper losses. 

Concerns over the resurgence of the coronavirus pandemic have been ruining the hopes of the global economic recovery, which keeps the market trading sentiment under pressure and weakened the perceived riskier Australian dollar. The global death toll has crossed the 1 million mark, and the world is becoming a gloomy place once again. In America, the pandemic has infected more than 7.2 million and killed more than 206,000. Meanwhile, Europe’s worst COVID-19 center, Madrid, is considering fresh lockdown restrictions in the coming days. Moscow’s mayor ordered companies to send at least 30% of their staff home, as many European countries reported new infections records. 

Apart from this, the chatters over the U.S. President Donald Trump’s infection to the coronavirus (COVID-19) and U.S. policymakers’ failures to break the deadlock over the COVID-19 stimulus talks also exerting downside pressure on the market risk tone. However, the Democrats pushed their bill amount of $2.2 trillion through the house to boost the pessimism surrounding the discussions as Republicans are less interested in approving anything beyond a $1.5 trillion package.

On the contrary, the currency pair’s losses were capped by the upbeat Aussie Retail Sales data, which instantly gave some support to the Aussie currency and helped the currency pair limit its deeper losses. At the data front, the Australian Retail Sales beat the preliminary forecast of -4.2% with -4.0% prints in September. In doing so, the data reverses the previous month’s 3.2% advances.


Daily Support and Resistance

S1 0.6878

S2 0.6959

S3 0.6994

Pivot Point 0.704

R1 0.7075

R2 0.7121

R3 0.7202

On the 2-hour timeframe, the AUD/USD pair has completed a 61.8% Fibonacci retracement around the 0.7138 level, and above this, the odds of bullish trend continuation will remain high until the 0.7174 level. The MACD histograms are also becoming weaker and signaling that the sellers are exhausted, and bullish may enter in the market now. Considering this, we have entered a buying trade in the AUD/USD pair. Checkout a trading plan below.  

Entry Price – Buy 0.71649

Stop Loss – 0.71249

Take Profit – 0.72049

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 Succeeded to extend Bullish Bias Amid Faded Haven Appeal!

Today in the European trading session, the GBP/JPY currency pair successfully extended its previous session bullish trading moves and hit the two-weeks high around 135.70 marks mainly due to the on-going Brexit optimism, which eventually underpinned the Brtish Pound and contributed to the currency pair gains. Apart from this, the currency pair got an additional boost after the Bank of England (BoE) policymaker reduced the possibility of negative interest rates in the short-term, which also benefitted the British Pound and extended further support to the currency pair.

Let me remind you that the combination of factors helped the currency catch some aggressive bids on the 2nd-day of a new trading week and build on last week’s modest bounce from the lowest level since early July 133.00 marks. Across the pond, the strong rally in the equity markets, backed by the combination of factors, undermined the safe-haven Japanese yen and gave a further boost to the GBP/JPY currency pair.

Despite concerns about the coronavirus cases in some notable nations and worsening US-China relations, the investors continued to cheer the hopes of the US fiscal stimulus package triggered by reports suggesting that the US Democrats’ showed a willingness to alter previous proposals while saying that the deadlock over the much-awaited stimulus talks seems to break anytime. This, in turn, boosted the market trading sentiment and extended support to the currency pair.

Moreover, the upbeat market sentiment was being supported by optimism over the coronavirus vaccine, which came after the US pharmaceutical giant Johnson and Johnson Inc COVID-19 vaccine trial has shown a strong immune response to the coronavirus with a single dose in the early trial stages.

The UK and EU are ready to resume the 9th and final phases of Brexit talks on the day across the pond. Reports suggest that negotiators will start the process to finalize a deal by the end of this week to hammer out an agreement in time for the next EU summit in mid-October. However, the hopes of a Brexit deal were further fueled after the EU steps back from warnings to leave trade and security talks, shows a willingness to prepare a joint legal agreement. (WAB). This, in turn, boosted the sentiment around the British Pound and extended further support to the currency pair.

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


The GBP/JPY pair has formed bullish engulfing candles on the 4-hour timeframe, suggesting a bullish bias around 135.150. The recent bullish crossover of 135.100 levels is likely to lead the GBP/JPY price towards 136.400 levels. On the further higher side, the bullish crossover of 136.400 level will make our forex trading signal more secure, and it can lead GBP/JPY price towards 139.900 level. Check out a trading plan below…

Entry Price – Buy 136.056
Stop Loss – 135.656
Take Profit – 136.456
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 Failed to Gains Positive Traction – Quick 40 Pips Profit! 

Today in the early European trading session, the EUR/JPY currency pair failed to stop its previous session losing streak and further offers around below the 124.00 regions in the last hours. However, the bearish bias around the currency pair was bolstered by the reports suggesting the confirmation of deflation seeping back into the Eurozone, which undermined the shared currency and contributed to the currency pair declines. Meanwhile, the continued rise in coronavirus cases also exerted downside pressure on the shared currency, which dragged the currency par below 124.00. 

The reason for the currency pair selling bias could also be attributed to the market risk-off mood, which eventually underpinned the Japanese yen’s safe-haven demand. Hence, the risk-off market sentiment was mainly sponsored by the Fed’s hint for another stress test for large banks as well as the U.K. scientist group’s readiness for another national lockdown also weighed on the market risk tone. At this particular time, the EUR/JPY currency pair is currently trading at 123.86 and consolidating in the range between 123.81 – 124.31.

At the coronavirus front, the number of confirmed coronavirus cases increased to 263,773, with a total of 9,378 deaths reported on the day. Meanwhile, the number of new infections rose by 1,916 on Friday, while the death toll rose by 7, as per the latest data from the German disease and epidemic control center, Robert Koch Institute (RKI). This, in turn, undermined the sentiment around the single currency and contributed to the currency par declines.

Moreover, the sentiment around the shard currency was further bolstered by the reports suggesting confirmation of deflation seeping back into the Eurozone. Detail suggested the Eurozone annualized CPI confirmed the -0.2% previous estimate.

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 downbeat U.S. data, these all factors have been weighing on the market risk tone. This, in turn, underpinned the safe-haven Japanese yen.

The employment data released on Thursday showed that initial jobless claims dropped slower than expected at the data front. Eight hundred sixty thousand claims were filed over the past week against the predicted 850,000.

Additionally, weighing the market trading sentiment could be the fears of rising COVID-19 cases in the U.S., Europe, and some of the notable Asian nations like India, fueling fears that the economic recovery could be halted. 

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 U.S. 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.


We decided to open a sell position in the EUR/JPY pair during the European session as it formed a bearish engulfing pattern below 124.250 level. The candle closing drove more selling in the EUR/JPY pair, and now it’s likely to trigger more selling until the 123.375 level. The MACD and 50 EMA were also supporting selling bias; therefore, we decided to capture a quick sell position to target 123.742 take profit level. Let’s keep an eye on 123.3750 now as the closing of candles above this level may drive some buying during the U.S. session. Good luck! 

Categories
Forex Market Analysis

June 25 – Quick Technical Update on S&P500 & Gold

The U.S. stocks sank during a broad sell-off on Monday, with the S&P 500 dropping over 1.5 %. In particular, the technology companies bearing the strength of an escalating trade dispute between the U.S.  and different leading economies.

 

The U.S. Treasury was drafting curbs that may block companies with a minimum of 25% Chinese possession from purchasing  U.S. technology companies. In response, the dollar plunged to a two-week low against the yen as a rise in the global trade worries depressed investor risk appetites and turned down U.S. yields.

 

S&P 500 – Daily Outlook

The U.S. stock market index SPX is trading at 2709.02, down 45.25 points and 1.67%. S&P500 is facing a strong support near 2700 after falling 1.59% today. We can expect a pullback above 2700, whereas the violation of this level will lead SPX -1.66% towards 2685.



S&P500- Intraday Support & Resistance Levels 

Support     Resistance 

2745.54      2769.84

2738.04      2777.34

2725.89      2789.49

Key Trading Level:    2757.69

 

Gold – XAU/USD – Daily Outlook

The precious metal gold is trading bearish at 1267.57, down -0.17% on Monday. Technically, Gold is trading sideways with a lower range of 1264 – 1271. The breakout of this range will define the further trend of gold. The breakout above 1271 can lead gold prices towards 1275 while a breakout below 1265 will open further room for buying until 1261.



Gold- Intraday Support & Resistance Levels 

Support     Resistance 

1271.5     1273.64

1270.84    1274.3

1269.77    1275.37

Key Trading Level:    1272.57

That’s pretty much it for now. Investors are advised to monitor the U.S. CB Consumer Confidence in order to capture further movements in the dollar index, gold, and the U.S. stocks.