Archive for Financial News – Page 2

Gold seeing “healthy” pullback

By Han Tan, Market Analyst, ForexTime

It was overdue for a pullback, and boy, are we getting one.

Spot Gold has now fallen into sub-$1900 levels as it extends yesterday’s steep drop. Tuesday’s 5.69 percent decline was Bullion’s largest single-day decline since 2013, with much of the stellar gains seen over the past two weeks now wiped out. At the time of writing, Gold futures are shedding another 2.6 percent.

From a technical perspective, the jarring move was needed to pull Bullion away from ‘overbought’ territory, ending Gold’s three-week period when its 14-day relative strength index was above the 70 mark.

There appears to be some serious profit-taking going on, as investors rotate funds back into other asset classes, especially considering the swath of US Treasuries that’s being brought to market this week. US real yields pulling back above minus one percent for the first time this month is denting some of Gold’s allure and prompting investors to sell off Bullion.

While we may see a period of consolidation for Gold prices, the overall bullish case appears intact. In other words, there are still plenty of sound reasons to think that Gold prices can resume its climb.

Although 10-year US Treasury yields climbed to 0.64 percent at the time of writing, it remains far off from pre-pandemic levels of above one percent, while real yields are still in negative territory. There also remains lingering concerns over the outlook for the global economy, even as geopolitical risks continue to simmer in the background. While the Dollar index is trying to claw its way back to the 94 handle, investors continue to expect more weakness for the Dollar, and the softer Greenback offers little resistance to Gold’s upside.

Bullion has been guided steadily upwards by its 50-day simple moving average (SMA) since Q2, apart from the brief dip below the line in early June. This trend is expected to remain intact, although it also implies that the pullback may still have some ways to go before spot Gold gets reacquainted with its 50-day SMA once more.

 

Disclaimer: The content in this article comprises personal opinions and should not be construed as containing personal and/or other investment advice and/or an offer of and/or solicitation for any transactions in financial instruments and/or a guarantee and/or prediction of future performance. ForexTime (FXTM), its affiliates, agents, directors, officers or employees do not guarantee the accuracy, validity, timeliness or completeness, of any information or data made available and assume no liability as to any loss arising from any investment based on the same.


Forex-Time-LogoArticle by ForexTime

ForexTime Ltd (FXTM) is an award winning international online forex broker regulated by CySEC 185/12 www.forextime.com

UK economy nosedives into recession

By Lukman Otunuga, Research Analyst, ForexTime

It is official, the UK economy has entered a recession for the first time in 11 years!

Economic growth during the second quarter of 2020 was a horror show, plunging 20.4% after a 2.2% fall in the first three months of 2020. This was the worst GDP seen in Western Europe and clearly illustrated the damaging impacts of coronavirus to the UK economy. To rub salt into the wound, it was only yesterday that data revealed an estimated one million jobs had already been erased during the coronavirus induced lockdown.

Surprisingly, the British Pound offered a fairly muted reaction despite the UK stumbling into the largest recession on record. The currency slightly gained against the Dollar and held its ground against other G10 currencies on Wednesday morning. It looks like the disappointing GDP report was already priced in with investors now evaluating how quickly the UK economy can bounce back. Expect the Pound to become highly sensitive to economic data over the next few weeks as investors access if a V-shaped bounce back could still be on the cards. After today, market players may start questioning whether looser monetary policy and handsome fiscal packages have the ability to revive the UK economy.

Looking at the technical picture, the GBPUSD remains in a wide range on the daily timeframe with support at 1.3000 and resistance at 1.3200. Prices are trading above 20 & 200 Simple Moving Average while the MACD trades to the upside. The trend is bullish but some fatigue looks to be kicking in with bears eyeing the 1.3000 support. It is worth keeping in mind that the GBPUSD has been stuck between these level’s for the past two weeks with bears constantly pressing against 1.3000.

A solid breakdown below 1.3000 could encourage a decline towards 1.2850. Alternatively, if this level proves to be a tough nut to crack, then a rebound towards 1.3130 could be on the cards.

Disclaimer: The content in this article comprises personal opinions and should not be construed as containing personal and/or other investment advice and/or an offer of and/or solicitation for any transactions in financial instruments and/or a guarantee and/or prediction of future performance. ForexTime (FXTM), its affiliates, agents, directors, officers or employees do not guarantee the accuracy, validity, timeliness or completeness, of any information or data made available and assume no liability as to any loss arising from any investment based on the same.


Forex-Time-LogoArticle by ForexTime

ForexTime Ltd (FXTM) is an award winning international online forex broker regulated by CySEC 185/12 www.forextime.com

ORANGE: Technical setup bearish for orange price

By IFCMarkets.com

Technical setup bearish for orange price

Florida orange growers experienced a disastrous 2019-20 season with regard to farm prices – average farm prices plummeted 50-56% from average prices in 2018-19. The reasons cited for the drop in orange juice prices include high orange juice inventories held by Florida processors combined with high juice imports and declining orange juice sales at retail outlets. And the technical bias for price is bearish currently. On the other hand, inventories of single-strength, chilled orange juice fell 9.3% through May 30 compared to a year earlier, according to Citrus Department statistics. And single-strength orange juice imports declined by 40% during the same period. Retail orange juice sales rose 1% in the US through April 11. Falling orange juice supply and higher sales are upside risk for orange juice price.

Indicator VALUE Signal
RSI Neutral
MACD Sell
Donchian Channel Neutral
MA(100) Sell
Fractals Sell
Parabolic SAR Sell

 

Summary of technical analysis

Order Sell
Buy stop Below 112.93
Stop loss Above 125.15

Market Analysis provided by IFCMarkets.com

Risk on: Russia registers vaccine

By Han Tan, Market Analyst, ForexTime

US benchmark stock indices are set for gains when markets open today, fuelled by positive developments surrounding a Covid-19 vaccine. Russia announced today that it has registered the world’s first Covid-19 vaccine, while drug makers such as BioNTech, Novavax, and Inovio Pharmaceuticals say they are moving closer to their respective vaccines, with these stocks making some of the biggest pre-market moves.

Such developments are pushing the SP500 minis to about 0.5 percent, or a mere 18 points, away from its record high.

The headlines have also contributed to Gold prices hurtling back below the psychologically-important $2000 level. Bullion has fallen by some 2.3 percent so far today, which would mark its biggest single-day move since April. The news may have spurred on the technical pullback needed to bring Gold prices away from overbought territory. With a flood of US Treasuries being brought to market this week, there could also be some profit-taking in Bullion prices at play.

Risk appetite has also seen other tailwinds, including news that US President Donald Trump is considering a tax cut for capital gains. Investors outlook surrounding Germany, Europe’s largest economy, over the next 6 months also registered a positive surprise. Such headlines make for a risk-on mood, emboldening investors who continue to remain optimistic over the global economic recovery.

 

Disclaimer: The content in this article comprises personal opinions and should not be construed as containing personal and/or other investment advice and/or an offer of and/or solicitation for any transactions in financial instruments and/or a guarantee and/or prediction of future performance. ForexTime (FXTM), its affiliates, agents, directors, officers or employees do not guarantee the accuracy, validity, timeliness or completeness, of any information or data made available and assume no liability as to any loss arising from any investment based on the same.


Forex-Time-LogoArticle by ForexTime

ForexTime Ltd (FXTM) is an award winning international online forex broker regulated by CySEC 185/12 www.forextime.com

Murrey Math Lines 11.08.2020 (AUDUSD, NZDUSD)

Article By RoboForex.com

AUDUSD, “Australian Dollar vs US Dollar”

In the H4 chart, after rebounding from 5/8, AUDUSD is expected to resume growing to reach the resistance at 7/8. However, this scenario may be canceled if the price breaks 5/8 to the downside. After that, the instrument may continue falling towards the support at 4/8.

AUDUSD_H4
Risk Warning: the result of previous trading operations do not guarantee the same results in the future

As we can see in the M15 chart, the pair has broken the upside line of the VoltyChannel indicator and, as a result, may continue trading upwards.

AUDUSD_M15
Risk Warning: the result of previous trading operations do not guarantee the same results in the future

NZDUSD, “New Zealand Dollar vs US Dollar”

In the H4 chart, NZDUSD is consolidating. In this case, the pair is expected to break 5/8 and then continue trading upwards to reach the resistance at 6/8. However, this scenario may no longer be valid if the price breaks 4/8 to the downside. After that, the instrument may continue falling towards the support at 3/8.

NZDUSD_H4
Risk Warning: the result of previous trading operations do not guarantee the same results in the future

As we can see in the M15 chart, the pair has broken the upside line of the VoltyChannel indicator and, as a result, may continue moving upwards to reach 6/8 from the H4 chart.

NZDUSD_M15

Article By RoboForex.com

Attention!
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex LP bears no responsibility for trading results based on trading recommendations described in these analytical reviews.

USD holding on to gains from last Friday

By Orbex

Euro Continues To Extend Declines

The common currency is trading weaker on Monday’s open, extending on the declines from last Friday. This comes as price failed to breach the previous two-year highs.

The dollar strength is also adding to the current weakness in EURUSD. Price action is trading near the 1.1750 level of support.

From the Stochastics oscillator, there is a possibility that EURUSD might hold on to this support.

A rebound off this level could see another attempt to the upside.

But in case the euro slips below the 1.1750 handle, then we could expect a move toward the 1.1600 level of support next.

GBPUSD Likely To Settle Inside The Range

The British pound sterling is also extending losses from last Friday. Just after price made another attempt to close above 1.3122, GBPUSD dropped lower.

For now, price action is likely supported near the 1.3000 level. We expect some ranging price action to extend within these levels.

Only a breakout from the range will determine the near term direction. GBPUSD could be poised to breakout higher given the bullish momentum,

A strong close above 1.3122 is required with follow-through to post a new high. The next main target is 1.3200.

WTI Crude Oil Falls Back Into Consolidation

Oil prices have been somewhat volatile over the past few sessions.

After trading strongly above the 42.00 level, oil prices gave way, paring gains. As a result, WTI crude oil is now trading within the 42.00 and 41.00 levels.

A breakout from this range needs to be convincing in order to maintain the trend.

While the bias remains to the upside, we could expect this sideways action to prevail.

To the downside, below the 41.00 handle, the previous lows near 39.00 might act as support.

To the upside, 43.00 forms the key resistance level.

Gold Retreats From All-Time Highs

The precious metal is trading soft on Monday right after prices touched a new all-time high last Friday.

The pace of declines is, however, limited. This means that the upside is still likely to prevail.

On the 4-hour chart, we see that price action is supported by the lower end of the rising price channel.

A rebound off this line will need to see gold prices making higher highs.

Failure to post new gains could potentially put the precious metal at risk of a correction.

Immediate support is near the 1967 handle if the psychological support area near 2000 gives way.

By Orbex

 

Fibonacci Retracements Analysis 11.08.2020 (EURUSD, USDJPY)

Article By RoboForex.com

EURUSD, “Euro vs US Dollar”

As we can see in the H4 chart, the divergence made the pair stop at 61.8% fibo and start a new decline, which is getting closer to the key correctional target at 50.0% fibo (1.1595). After completing the correction, EURUSD may resume trading upwards to reach 76.0% fibo at 1.2095.

EURUSD_H4
Risk Warning: the result of previous trading operations do not guarantee the same results in the future

The H1 chart shows a more detailed structure of the current correctional downtrend, which has already reached 23.6% fibo and may continue towards 38.2% and 50.0% fibo at 1.1637 and 1.1551 respectively. However, if the price breaks the high at 1.1916, the correction will be over.

EURUSD_H1
Risk Warning: the result of previous trading operations do not guarantee the same results in the future

USDJPY, “US Dollar vs. Japanese Yen”

As we can see in the H4 chart, after reaching 61.8% fibo, the downtrend was stopped by the convergence on MACD, that’s why USDJPY is currently correcting upwards and has already reached 38.2% fibo and may later continue towards 50.0%, 61.8%, and 76.0% fibo at 107.02, 107.68, and 108.50 respectively. The key upside target is the fractal high at 109.85.

USDJPY_H4
Risk Warning: the result of previous trading operations do not guarantee the same results in the future

The H1 chart shows that after finishing the correctional decline towards 50.0% fibo, the pair is starting a new rising movement. Later, the price may break the high at 106.47 and then continue growing to reach 50.0% fibo at 107.02. The support is the fractal low at 104.18.

USDJPY_H1

Article By RoboForex.com

Attention!
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex LP bears no responsibility for trading results based on trading recommendations described in these analytical reviews.

Currency Majors Show a Variety of Trends. Investors Expect Additional Drivers

by JustForex

The US dollar has strengthened slightly against a basket of currency majors. The US dollar index (#DX) closed the trading session in the green zone (+0.17%). Investors are focused on the deteriorating relationship between the US and China. China’s Foreign Ministry has imposed sanctions on US officials after Washington sanctioned 11 Chinese and Hong Kong officials on Friday. Meanwhile, on August 15, another round of trade negotiations between the countries should begin. Investors also monitor the adoption of a new package of measures to support the US economy.

The Bank of England intends to increase quantitative easing (QE) if the UK economy slows down and faces difficulties again. Deputy Governor of the Bank of England, Dave Ramsden, also noted that the regulator has a headroom. Investors expect the release of UK labor market data today.

The “black gold” prices continue to grow. At the moment, futures for the WTI crude oil are testing the $42.70 mark per barrel. At 23:30, API weekly crude oil inventories will be published.

Market indicators

Yesterday, there was a variety of trends in the US stock market: #SPY (+0.30%), #DIA (+1.28%), #QQQ (-0.43%).

The 10-year US government bonds yield is growing. At the moment, the indicator is at the level of 0.59-0.60%.

The news feed for 2020.08.11:
  • – Data on the labor market in the UK at 09:00 (GMT+3:00);
  • – ZEW economic sentiment index in Germany at 12:00 (GMT+3:00);
  • – Producer price index in the US at 15:30 (GMT+3:00).

by JustForex

Yen softens despite rising US-China tensions

By Lukman Otunuga, Research Analyst, ForexTime

Shares across Asian markets ventured higher on Tuesday morning, following gains on Wall Street overnight as investors shrugged off China’s retaliatory actions against the United States.

In a move that is likely to strain US-China relations even further, Beijing slapped sanctions on U.S. officials in response to similar measures enforced by Washington. Despite this, market sentiment remains optimistic with investors keeping a close eye on negotiations over the next coronavirus stimulus package in the US.

With hopes for additional U.S fiscal supporting risk sentiment, safe-haven currencies like the Japanese Yen and even Dollar have struggled to shine despite mounting tensions between the two largest economies in the world.

USDJPY eyes 106.50

Over the past two weeks, the USDJPY has found comfort within a 150-pip range with support at 105.00 and resistance around 106.50.

Given how both the Dollar and Yen are fundamentally bearish, this could be a slow grind higher or lower. Looking at the technical picture, prices remain bearish on the daily chart as the candlesticks are trading below the 20 Simple Moving Average while the MACD trades to the downside. If 106.50 proves to be reliable resistance, prices could end up declining back towards the 105.00 support.

Alternatively, a breakout above 106.50 may open the gates towards 107.50.

EURJPY remains in an uptrend

A picture is worth a thousand words…

Looking at the EURJPY on the daily charts, prices are firmly bullish as there have been consistently higher highs and higher lows.

The currency pair is finding comfort above the 20 Simple Moving Average while the MACD also points to the upside. A solid breakout above 125.50 will confirm the bullish trend with the new higher low around 124.00. The next key point of interest in such a scenario will be found around 127.00. On the other hand, if 125.50 proves to be a tough nut to crack, prices could sink back towards 123.00.

GBPJPY breakout setup in play

It has been the same story with the GBPJPY over the past two weeks as the currency traded within 110 pip range. All eyes will be on the support at 137.90 and resistance at 139.00.

A decisive breakdown and daily close below 137.90 should pave a path towards 135.00. Alternatively, a breakout above 139.00 may inspire a move back towards 141.00.

Disclaimer: The content in this article comprises personal opinions and should not be construed as containing personal and/or other investment advice and/or an offer of and/or solicitation for any transactions in financial instruments and/or a guarantee and/or prediction of future performance. ForexTime (FXTM), its affiliates, agents, directors, officers or employees do not guarantee the accuracy, validity, timeliness or completeness, of any information or data made available and assume no liability as to any loss arising from any investment based on the same.


Forex-Time-LogoArticle by ForexTime

ForexTime Ltd (FXTM) is an award winning international online forex broker regulated by CySEC 185/12 www.forextime.com

The Analytical Overview of the Main Currency Pairs on 2020.08.11

by JustForex

The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.17868
  • Open: 1.17365
  • % chg. over the last day: -0.39
  • Day’s range: 1.17220 – 1.17744
  • 52 wk range: 1.0777 – 1.1781

The bearish sentiment prevails on the EUR/USD currency pair. The trading instrument has updated local lows again. The demand for greenback has been partially resumed. Investors continue to monitor the adoption of a new package of measures to support the US economy. At the moment, EUR/USD quotes are consolidating in the range of 1.1725-1.1770. The single currency has the potential for further decline. We recommend opening positions from key levels.

The news feed on 2020.08.11:
  • – ZEW economic sentiment indices in Germany and the Eurozone at 12:00 (GMT+3:00);
  • – Producer price index in the US at 15:30 (GMT+3:00).
EUR/USD

Indicators signal the power of sellers: the price has fixed below 50 MA and 100 MA.

The MACD histogram is in the negative zone, which indicates the bearish sentiment.

Stochastic Oscillator is in the neutral zone, the %K line has crossed the %D line. There are no signals at the moment.

Trading recommendations
  • Support levels: 1.1725, 1.1700
  • Resistance levels: 1.1770, 1.1800, 1.1845

If the price fixes below 1.1725, EUR/USD quotes are expected to fall further. The movement is tending to 1.1700-1.1670.

An alternative could be the growth of the EUR/USD currency pair to 1.1800-1.1830.

The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.30535
  • Open: 1.30582
  • % chg. over the last day: +0.02
  • Day’s range: 1.30553 – 1.30959
  • 52 wk range: 1.1466 – 1.3516

There is an ambiguous technical pattern on the GBP/USD currency pair. The British pound is being traded in a flat. Quotes are testing local support and resistance levels: 1.3055 and 1.3100, respectively. Financial market participants expect additional drivers. The trading instrument is tending to decline. Positions should be opened from key levels.

The UK released ambiguous labor market data.

GBP/USD

The indicators do not give accurate signals: the price has crossed the 50 MA and 100 MA.

The MACD histogram is near the 0 mark.

Stochastic Oscillator is in the neutral zone, the %K line has crossed the %D line. There are no signals at the moment.

Trading recommendations
  • Support levels: 1.3055, 1.3010, 1.2980
  • Resistance levels: 1.3100, 1.3155, 1.3185

If the price fixes below 1.3055, GBP/USD quotes are expected to correct. The movement is tending to 1.3010-1.2980.

An alternative could be the growth of the GBP/USD currency pair to 1.3140-1.3170.

The USD/CAD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.33890
  • Open: 1.33508
  • % chg. over the last day: -0.28
  • Day’s range: 1.33009 – 1.33607
  • 52 wk range: 1.2949 – 1.4668

USD/CAD quotes have been declining again. The trading instrument has updated local lows. At the moment, the key support and resistance levels are 1.3290 and 1.3335, respectively. USD/CAD quotes have the potential for further decline. We recommend paying attention to the dynamics of oil prices. Positions should be opened from key levels.

At 15:30 (GMT+3:00), data on building permits will be published in Canada.

USD/CAD

Indicators do not give accurate signals: the price has crossed the 100 MA.

The MACD histogram is in the negative zone, which indicates the bearish sentiment.

Stochastic Oscillator is near the oversold zone, the %K line has crossed the %D line. There are no signals at the moment.

Trading recommendations
  • Support levels: 1.3290, 1.3255, 1.3235
  • Resistance levels: 1.3335, 1.3370, 1.3400

If the price fixes below 1.3290, a further drop in USD/CAD quotes is expected. The movement is tending to 1.3255-1.3235.

An alternative could be the growth of the USD/CAD currency pair to 1.3370-1.3400.

The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 105.842
  • Open: 105.936
  • % chg. over the last day: +0.09
  • Day’s range: 105.913 – 106.240
  • 52 wk range: 101.19 – 112.41

The technical pattern is still ambiguous on the USD/JPY currency pair. The trading instrument is in a sideways trend. Investors expect additional drivers. At the moment, the local support and resistance levels are 105.80 and 106.20, respectively. USD/JPY quotes are tending to grow. We recommend paying attention to the dynamics of US government bonds yield. Positions should be opened from key levels.

The news feed on Japan’s economy is calm.

USD/JPY

Indicators signal the power of buyers: the price has fixed above 50 MA and 100 MA.

The MACD histogram is in the positive zone, which indicates the bullish sentiment.

Stochastic Oscillator is in the neutral zone, the %K line is below the %D line, which gives a signal to sell USD/JPY.

Trading recommendations
  • Support levels: 105.80, 105.60, 105.30
  • Resistance levels: 106.20, 106.45

If the price fixes above 106.20, further growth in USD/JPY quotes is expected. The movement is tending to 106.50-106.80.

An alternative could be a decline in the USD/JPY currency pair to 105.50-105.20.

by JustForex