Archive for Forex and Currency News

EUR ascending the heights

By Lukman Otunuga, Research Analyst, ForexTime

It’s a busy week with a plethora of central bank meetings, rebounding data releases and an EU summit. But the pandemic looms over everything still as US virus hotspots appear to be forcing some states into more stringent lockdown measures once again.

Throw in some US-China geopolitical concerns around South China Sea claims and the markets are under the weather with US stocks opening in the red, but off their pre-market lows so far. US CPI increased in line with estimates, rebounding after three straight monthly declines, but still remains subdued.

GBP is the weakest major on the day as GDP disappointed and a new post-Brexit trade report is suggesting mountains of red tape in the months ahead – clearly a potential drag on sterling moving forward, with the risk of a no-deal still on the table.

EUR summit in focus

The single currency is the major currency outperformer today, as EUR/USD looks to make its way to the June high at 1.1422. Markets are clearly expecting big things from Thursday’s ECB meeting (Lagarde to be less dovish?) and the EU leaders gathering at the end of the week to discuss the Recovery Fund.

Sentiment is evidently constructive, and the world’s most traded currency pair is now just above short-term resistance around 1.1370, which has limited EUR upside over the last few sessions. Key support lies at the trend lines around 1.1275/80 with the pair well bid on dips.

Positioning wise, the Euro is still the most overbought major, but is not stretched so even though positive developments are expected, it is feasible that the EUR could break to new highs on a good outcome. Of course, the market may be left frustrated if the latter part of the week disappoints.

EUR/CAD breaking out of range

Similar to its big brother above, this pair is grinding higher after what looks like a break through the recent peaks around 1.5450. Trend strength oscillators are bullish and having consolidated in a range for over three months since April, prices could potentially see an explosive move higher.

The May high at 1.5533 is the next major target, before testing the 1.58-1.61 range. A false break will see prices back into the most recent range. The market retains a sizeable short in CAD, reflecting the underlying bearish sentiment.

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

Japanese Candlesticks Analysis 14.07.2020 (EURUSD, USDJPY, EURGBP)

Article By RoboForex.com

EURUSD, “Euro vs. US Dollar”

As we can see in the H4 chart, the pair is still forming the ascending channel. After forming a Harami pattern, EURUSD is reversing. Considering the current bullish dynamics, the price may finish the correction and then resume trading upwards to reach the resistance level at 1.1420. At the same time, an alternative scenario implies that the instrument may continue falling to return to 1.1300.

EURUSD
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 forming a Hammer pattern not far from the support area, USDJPY has started reversing. At the moment, the pair is moving upwards. The current situation implies that after a slight correction the market may resume the ascending tendency towards the resistance level at 108.08. Still, there is an opposite scenario, which says that the instrument may fall and return to 106.67.

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

EURGBP, “Euro vs. Great Britain Pound”

As we can see in the H4 chart, the pair is moving inside the rising channel again. By now, EURGBP has completed a Harami pattern, which may signal a new correction. After the correction, the price may resume moving to reach its upside target at 0.9120. In the future, the instrument may continue trading upwards to update the highs. However, there might be another scenario, according to which the asset may correct towards the support level at 0.8989.

EURGBP

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.

Ichimoku Cloud Analysis 14.07.2020 (EURGBP, BTCUSD, GBPUSD)

Article By RoboForex.com

EURGBP, “Euro vs Great Britain Pound”

EURGBP is trading at 0.9043; the instrument is moving inside Ichimoku Cloud, thus indicating a sideways tendency. The markets could indicate that the price may test the cloud’s downside border at 0.8995 and then resume moving upwards to reach 0.9135. Another signal in favor of further uptrend will be a rebound from the descending channel’s upside border. However, the bullish scenario may be canceled if the price breaks the cloud’s downside border and fixes below 0.8955. In this case, the pair may continue falling towards 0.8905. To confirm further growth, the asset must break the cloud’s upside border and fix above 0.9080, thus indicating a completion of a Head & Shoulders reversal pattern.

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

BTCUSD, “Bitcoin vs US Dollar”

BTCUSD is trading at 9157.00; the instrument is moving below Ichimoku Cloud, thus indicating a descending tendency. The markets could indicate that the price may test Tenkan-Sen and Kijun-Sen at 9205.00 and then resume moving downwards to reach 8905.00. Another signal in favor of further downtrend will be a rebound from the rising channel’s downside border. However, the bearish scenario may no longer be valid if the price breaks the cloud’s upside border and fixes above 9325.00. In this case, the pair may continue growing towards 9645.00.

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

GBPUSD, “Great Britain Pound vs US Dollar”

GBPUSD is trading at 1.2542; the instrument is moving below Ichimoku Cloud, thus indicating a descending tendency. The markets could indicate that the price may test Tenkan-Sen and Kijun-Sen at 1.2575 and then resume moving downwards to reach 1.2430. Another signal in favor of further downtrend will be a rebound from the downside border of a Double Top reversal pattern. However, the bearish scenario may no longer be valid if the price breaks the cloud’s upside border and fixes above 1.2640. In this case, the pair may continue growing towards 1.2730.

GBPUSD

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.

The Analytical Overview of the Main Currency Pairs on 2020.07.14

by JustForex

The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.13023
  • Open: 1.13416
  • % chg. over the last day: +0.29
  • Day’s range: 1.13253 – 1.13503
  • 52 wk range: 1.0777  – 1.1494

The technical pattern is still ambiguous on the EUR/USD currency pair. A trading instrument is consolidating. Investors expect additional drivers. The second wave of the COVID-19 epidemic remains in the spotlight. Governor of California, Gavin Newsom, imposed new statewide restrictions due to a sharp increase in the number of people infected with coronavirus. At the moment, the key range is 1.1325-1.1370. We expect important economic releases from Germany and the US. Positions should be opened from key levels.

The news feed on 2020.07.14:
  • – German ZEW economic sentiment index at 12:00 (GMT+3:00);
  • – US inflation report at 15:30 (GMT+3:00).
EUR/USD

Indicators do not give accurate signals: the price is testing 50 MA.

The MACD histogram is in the positive zone, but below the signal line, which gives a weak signal to buy EUR/USD.

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: 1.1325, 1.1300, 1.1260
  • Resistance levels: 1.1370, 1.1400

If the price fixes below 1.1325, EUR/USD quotes are expected to fall. The movement is tending to 1.1300-1.1270.

An alternative could be the growth of the EUR/USD currency pair to 1.1400-1.1420.

The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.26203
  • Open: 1.25539
  • % chg. over the last day: -0.57
  • Day’s range: 1.25063 – 1.25609
  • 52 wk range: 1.1466  – 1.3516

GBP/USD quotes have been declining. During yesterday’s and today’s trading sessions, the British pound has lost more than 100 points against the greenback. At the moment, the GBP/USD currency pair is testing the support level of 1.2510. The 1.2555 mark is the nearest resistance. A trading instrument has the potential for further decline. Great Britain published a weak report on the country’s GDP. Positions should be opened from key levels.

We recommend paying attention to economic releases from the US.

GBP/USD

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

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

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

Trading recommendations
  • Support levels: 1.2510, 1.2470, 1.2440
  • Resistance levels: 1.2555, 1.2580, 1.2620

If the price fixes below 1.2510, a further fall in GBP/USD quotes is expected. The movement is tending to 1.2470-1.2440.

An alternative could be the growth of the GBP/USD currency pair to 1.2580-1.2620.

The USD/CAD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.35851
  • Open: 1.36079
  • % chg. over the last day: +0.08
  • Day’s range: 1.35931 – 1.36463
  • 52 wk range: 1.2949  – 1.4668

Purchases prevail on the USD/CAD currency pair. The trading instrument has updated local highs. USD/CAD quotes found resistance at 1.3645. The 1.3610 mark is already a “mirror” support. The continuation of the upward trend is possible. We recommend paying attention to the dynamics of “black gold” prices. Positions should be opened from key levels.

The news feed on Canada’s economy is calm.

USD/CAD

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

The MACD histogram is in the positive zone, indicating the bullish 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: 1.3610, 1.3580, 1.3545
  • Resistance levels: 1.3645, 1.3700

If the price fixes above 1.3645, further growth of the USD/CAD quotes is expected. The movement is tending to the round level of 1.3700.

An alternative could be a decrease in the USD/CAD currency pair to 1.3585-1.3560.

The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 106.884
  • Open: 107.238
  • % chg. over the last day: +0.34
  • Day’s range: 107.116 – 107.366
  • 52 wk range: 101.19  – 112.41

USD/JPY quotes have been growing. The trading instrument has updated local highs. At the moment, the USD/JPY currency pair is testing the following support and resistance levels: 107.10 and 107.35, respectively. The technical pattern signals a further increase in USD/JPY quotes. We recommend payштп 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 do not give accurate signals: the price has crossed 100 MA.

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

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

Trading recommendations
  • Support levels: 107.10, 106.95, 106.80
  • Resistance levels: 107.35, 107.60, 107.75

If the price fixes above 107.35, further growth of the USD/JPY quotes is expected. The movement is tending to 107.60-107.80.

An alternative could be a decrease in the USD/JPY currency pair to 106.90-106.70.

by JustForex

No love for Pound as UK growth disappoints

By Lukman Otunuga, Research Analyst, ForexTime

Sterling weakened against the Dollar and most G10 currencies on Tuesday morning after UK economic growth figures massively undershot expectations by increasing a tepid 1.8% in May versus the 5% forecast.


This disappointing rebound from the painful -20.4% contraction witnessed in April reveals that the UK economy is recovering much slower than expected, despite the reopening of construction and manufacturing sectors. Any talks of a V-shaped recovery may be swept under the carpet for the time being, especially if data continues to miss market expectations.

On the bright side, there is a sense of optimism around growth in June and July experiencing a sharper rebound due to the re-opening of non-essential shops, leisure and hospitality sector. Regardless, the cost of coronavirus in the UK has been painfully expensive with the economy contracting 25% during March and April. Any signs of rising coronavirus cases in the United Kingdom could trigger fears of renewed lockdowns, ultimately hitting sentiment and threatening growth.

Appetite towards the British Pound is likely to fall further in the near term, as disappointing growth adds to the negative list of negative themes haunting investor attraction.
Looking at the technical picture, the GBPUSD is under pressure on the daily charts with prices trading below 1.2550 as of writing. Sustained weakness below this level may open a path towards 1.2400 and 1.2250.

GBPJPY approaches 134.00.

Expect the GBPJPY to trend lower in the short to medium term, especially after UK economic growth disappointed in May.
The currency pair is under pressure on the daily charts with prices approaching the 50 SMA. A solid breakdown below 134.00 may trigger a decline towards the 131.60 support. If prices can break back above 135.00, the GBPJPY has the potential to test 137.00.

EURGBP approaches 0.9100.

Prices seem to be  pushing towards the 0.9100 resistance level. A clean break above this point could trigger a move higher towards 0.9100 in the short term.

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

EURCHF Analysis: Getting ready for an ECB meeting and a speech by the head of SNB

By IFCMarkets

Getting ready for an ECB meeting and a speech by the head of SNB

The upward movement means the strengthening of the euro and the weakening of the Swiss franc. The speech of the head of the Swiss National Bank (SNB) Thomas Jordan is expected on July 14. Market participants believe that he will confirm his department’s commitment to a super-soft monetary policy. This may weaken the franc. Recall that the SNB rate is negative and has been -0.75% since the beginning of 2015. On Monday, two more companies (Pfizer and BioNTech) announced the creation of a Covid-19 vaccine. This is a negative factor for the “safe haven currencies” – the Swiss franc and yen. The EU leaders’ summit will be held on July 17-18. They will discuss the functioning of the anti-crisis fund. Before it begins, there may be some positive statements from the ECB, which will hold its regular meeting just the day before – July 16. The ECB’s rate of 0% ( since March 2016) is not expected to change.

Indicator VALUE Signal
RSI Buy
MACD Buy
MA(200) Neutral
Fractals Buy
Parabolic SAR Buy
Bollinger Bands Neutral

 

Summary of technical analysis

Order Buy
Buy stop Above 1,07
Stop loss Below 1,06

Market Analysis provided by IFCMarkets

Dollar bearish bets ticked up despite surprisingly strong jobs report

By IFCMarkets

US dollar net short bets declined to $14.48 billion from $13.89 against the major currencies during the one week period, according to the report of the Commodity Futures Trading Commission (CFTC) covering data up to July 7 and released on Friday July 10. The change in net short dollar bets resulted from significant decrease in bearish bets on Canadian dollar, British Pound and increase in bullish bets on euro, which outweighed a marked decrease in yen bullish bets. The Pound, Canadian and Australian dollars maintained net short positions against the dollar. The bearish dollar bets rose again despite US Labor Department data showed that the US added back 4.8 million jobs in June when a gain of 3.7 million jobs was expected, and Institute of Supply Management report its manufacturing purchasing managers index climbed to 52.6 from 43.1 in May. Readings above 50 indicate an expansion in economic activity. Bullish euro view was supported by sharp easing in euro-zone’s business activity contraction in June according to final services PMI reading.

 

CFTC Sentiment vs Exchange Rate

July 07 2020 Bias Ex RateTrend Position $ mln Weekly Change
CAD bearish positive -1236 275
AUD bearish positive -48 153
EUR bullish positive 14599 706
GBP bearish positive -1287 339
CHF bullish positive 501 -71
JPY bullish positive 1954 -809
Total 14483

 

commitment of traders net long short
commitment of traders weekly change
market sentiment ratio long short positions

Market Analysis provided by IFCMarkets

Note:
This overview has an informative and tutorial character and is published for free. All the data, included in the overview, are received from public sources, recognized as more or less reliable. Moreover, there is no guarantee that the indicated information is full and precise. Overviews are not updated. The whole information in each overview, including opinion, indicators, charts and anything else, is provided only for familiarization purposes and is not financial advice or а recommendation. The whole text and its any part, as well as the charts cannot be considered as an offer to make a deal with any asset. IFC Markets and its employees under any circumstances are not liable for any action taken by someone else during or after reading the overview.

Weekly Fundamental Bulletin: BoJ, BoC & ECB Meetings

By Orbex

Last Week’s Highlights

China’s Consumer Prices Rise at a Steady Pace

The latest data from China showed a steady increase in consumer prices to 2.5% on the year in June. This was up from 2.4% in the previous month.

On a month over month basis, China’s CPI fell 0.1%, but the declines were slower than the 0.8% fall seen in the previous month.

Core inflation, which excludes the volatile food and energy prices, rose at a slower pace of 0.9%, compared to the 1.1% increase in the previous month.

Germany Exports Recover in May

There were some positive signs for the Germany economy last week. Official data from Destatis showed that exports recovered in May as trading resumed following the easing of the COVID restrictions.

Exports rose at a pace of 9% on a month over month basis in May. This helped to reverse some of the 24% declines from the previous month. The increase in exports is the first in the past three months.

Imports also rose by 3.5%, following a 16.6% decline in the month before.

RBA Keeps Interest Rates Steady

The Reserve Bank of Australia held its key interest rates unchanged at record lows. It also kept the target yield on 3-year government bonds unchanged.

The central bank vowed to maintain an accommodative monetary policy as long as required. The central bank’s decision is widely in line with market expectations.

The RBA had cut the interest rates to record lows of 0.25% in March this year, while also introducing its asset purchase program to combat the downturn due to the pandemic.

US Services Sector Rebounds in June

The latest non-manufacturing PMI report from the Institute of Supply Management (ISM) saw a solid rebound in the services sector.

The ISM NMI spiked to 57.1 in June following a slump to 45.4 in May. The move back above the 50-level on the index suggests expansion in the sector.

The data also beat forecasts of a rise to 50.1. The sharp increase is the biggest single-month jump since record-keeping began.

Upcoming Economic Events

New Zealand Q2 Inflation to Drop 0.5%

The latest quarterly inflation report from New Zealand is due this week on Thursday.

Economists forecast that inflation fell 0.5% in the 3 months ending June. This follows a surprise 0.8% increase in the first three months of the year.

On a year over year basis, the headline inflation is forecast to slow down to 2.1%, down from 2.5% in the first quarter of the year.

Bank of Japan to Maintain a Cautious Outlook

The BoJ will be meeting this week and is widely expected to leave interest rates unchanged. The bank might cut its growth forecasts for the fiscal year ending March 2021.

This comes as the BoJ will be releasing its quarterly report on the economy. The central bank ramped up its monetary policy tools in March and April this year. Fiscal stimulus measures were also set up to handle the downturn in the economy due to the pandemic.

Bank of Canada to Keep Interest Rates Steady

The Bank of Canada will be holding its monetary policy meeting this week. The central bank is forecast to leave interest rates unchanged.

The BoC cut rates to historic lows of 0.25% in response to the pandemic earlier this year.

It is likely to maintain a cautious tone, despite the recent jobs report showing that Canadian unemployment fell to 12.3% in June after rising to 13.7% in May. The economy also added nearly one million jobs in June.

ECB to Remain on the Sidelines for the 1st Time Since March

The European Central Bank will be holding its monetary policy meeting this week. However, the central bank, which has been busy since March, is expected to stand pat on policy this week.

The ECB is widely expected to leave interest rates and its asset purchases unchanged. It comes at a time when discussions are taking place regarding the European Recovery Fund.

A final decision is expected anytime this week.

By Orbex

 

Fibonacci Retracements Analysis 13.07.2020 (GOLD, USDCHF)

Article By RoboForex.com

XAUUSD, “Gold vs US Dollar”

As we can see in the H4 chart, over the past week, XAUUSD managed to fix above the broken high at 1764.86 and reach 1800.00. From the technical point of view, the chart shows that the pair has already reached the post-correctional extension area between 138.2% and 161.8% fibo at 1800.60 and 1823.00 respectively. After breaking this area, the instrument may try to attack its all-time high at 1920.66. However, a divergence on MACD indicates a possible pullback. The key support is at 1670.60.

GOLD_H4
Risk Warning: the result of previous trading operations do not guarantee the same results in the future

In the H1 chart, after completing the rising wave, the pair is correcting downwards. By now, it has already reached 38.2% fibo and may later continue towards 50.0% fibo at 1787.50. If the price breaks the high at 1817.89, the instrument may continue the current bullish tendency.

GOLD_H1
Risk Warning: the result of previous trading operations do not guarantee the same results in the future

USDCHF, “US Dollar vs Swiss Franc”

As we can see in the H4 chart, after breaking its previous low at 0.9367, USDCHF continues falling towards the mid-term 76.0% at 0.9350. At the same time, there is a convergence on MACD, which may indicate a possible pullback soon. However, the key downside target remains the low at 0.9176.

USDCHF_H4
Risk Warning: the result of previous trading operations do not guarantee the same results in the future

In the H4 chart, after correcting towards 0.9553, which is now a resistance level, the pair is moving downwards. The key short-term downside targets are inside the local post-correctional extension area between 138.2% and 161.8% fibo at 0.9309 and 0.9267 respectively. However, the convergence on MACD may indicate a slowdown in the current descending tendency.

USDCHF_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.

The Analytical Overview of the Main Currency Pairs on 2020.07.13

by JustForex

The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.12834
  • Open: 1.13023
  • % chg. over the last day: +0.15
  • Day’s range: 1.13009  – 1.13361
  • 52 wk range: 1.0777  – 1.1494

The EUR/USD currency pair is consolidating. The technical pattern is ambiguous. Sentiment in the financial markets continues to deteriorate amid the second wave of the COVID-19 epidemic. The World Health Organization reported a record 230,370 new cases last Sunday. The number of infected in the world has reached 13 million. At the moment, EUR/USD quotes are testing local support and resistance levels: 1.1300 and 1.1335, respectively. The single currency is tending to decline. Positions should be opened from key support and resistance levels.

Today, the publication of important economic releases is not expected.

EUR/USD

Indicators do not give accurate signals: the price has crossed 50 MA.

The MACD histogram is in the positive zone, but below the signal line, which gives a weak signal to buy EUR/USD.

Stochastic Oscillator is in the neutral zone, the %K line is below the %D line, which indicates the bearish sentiment.

Trading recommendations
  • Support levels: 1.1300, 1.1260, 1.1220
  • Resistance levels: 1.1335, 1.1365

If the price fixes below 1.1300, EUR/USD quotes are expected to fall. The movement is tending to 1.1260-1.1240.

An alternative could be the growth of the EUR/USD currency pair to 1.1360-1.1380.

The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.26063
  • Open: 1.26203
  • % chg. over the last day: +0.12
  • Day’s range: 1.25917  – 1.26662
  • 52 wk range: 1.1466  – 1.3516

GBP/USD quotes are in a sideways trend. There is no defined trend. Financial market participants expect additional drivers. The British pound is testing the key support and resistance levels: 1.2580 and 1.2665, respectively. The demand for risky assets has weakened. The GBP/USD currency pair is tending to decline. Positions should be opened from key levels.

We recommend paying attention to the speech by the head of the Bank of England.

GBP/USD

Indicators do not give accurate signals: the price has crossed 50 MA.

The MACD histogram is near the 0 mark.

Stochastic Oscillator is in the neutral zone, the %K line is below the %D line, which indicates the bearish sentiment.

Trading recommendations
  • Support levels: 1.2580, 1.2520, 1.2470
  • Resistance levels: 1.2665, 1.2700

If the price fixes below 1.2580, GBP/USD quotes are expected to correct. The movement is tending to the round level of 1.2500.

An alternative could be the growth of the GBP/USD currency pair to 1.2700-1.2720.

The USD/CAD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.35872
  • Open: 1.35851
  • % chg. over the last day: -0.01
  • Day’s range: 1.35552  – 1.36024
  • 52 wk range: 1.2949  – 1.4668

There is an ambiguous technical pattern on the USD/CAD currency pair. The loonie is consolidating. Investors expect additional drivers. The local support and resistance levels are 1.3555 and 1.3585, respectively. We recommend paying attention to the dynamics of “black gold” prices. Positions should be opened from key levels.

The news feed on Canada’s economy is calm.

USD/CAD

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

The MACD histogram has been declining, which gives a signal to sell USD/CAD.

Stochastic Oscillator is in the neutral zone, the %K line is above the %D line, which indicates the bullish sentiment.

Trading recommendations
  • Support levels: 1.3555, 1.3520, 1.3490
  • Resistance levels: 1.3585, 1.3625

If the price fixes above 1.3585, USD/CAD quotes are expected to rise. The movement is tending to 1.3620-1.3640.

An alternative could be a decrease in the USD/CAD currency pair to 1.3520-1.3500.

The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 107.149
  • Open: 106.884
  • % chg. over the last day: -0.28
  • Day’s range: 106.787  – 107.096
  • 52 wk range: 101.19  – 112.41

USD/JPY quotes have become stable. A trading instrument is consolidating. The local support and resistance levels are 106.80 and 107.10, respectively. The technical pattern signals a possible correction of the USD/JPY currency pair. 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 quite calm.

USD/JPY

Indicators do not give accurate signals: the price has crossed 50 MA.

The MACD histogram is near the 0 mark.

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

Trading recommendations
  • Support levels: 106.80, 106.65
  • Resistance levels: 107.10, 107.35, 107.60

If the price fixes below 106.80, a further drop in USD/JPY quotes is expected. The movement is tending to 106.50-106.30.

An alternative could be the growth of the USD/JPY currency pair to 107.30-107.50.

by JustForex