Archive for Forex and Currency News

Sterling: 99 problems but negative rates ain’t one

By Lukman Otunuga, Research Analyst, ForexTime

Like a phoenix rising from the ashes, the British Pound has exploded to life – practically burning the Dollar and every single G10 currency today!

Buying sentiment towards Sterling went through the roof after BoE deputy governor Dave Ramsden brushed aside talks of negative interest rates, echoing comments of governor Andrew Bailey last week.

While the almost 200 pip jump seen on the GBPUSD is refreshing and incredibly encouraging for bulls, it is far too early for any celebrations.

The Pound has 99 problems and although negative rates ain’t one for now….Brexit talks, rising coronavirus cases and shaky economic fundamentals among many other negative themes may leave Sterling depressed and unloved.

Focusing back on Brexit, the ninth week and final round of scheduled negotiations kick off today with reports confirming that both sides remain optimistic over some kind of breakthrough. Well, who can blame them? With the United Kingdom and Europe suffering from rising COVID-19 cases and shaky macro fundamentals, a messy Brexit that hits the UK and Europe is not in anyone’s best interest.

Although there have been some concessions over the past few days, the question is whether this will translate into an agreement in which both sides enter into intensive “tunnel” talks. A positive outcome that prevents Britain from a messy exit from the European Union could bolster appetite towards Sterling. However, a disappointing outcome which leaves investors with more questions than answer may send the Pound tumbling.

If there is one hard lesson learnt from Brexit over the past few years, it is to always expect the unexpected.

Talking technicals, the GBPUSD is still bearish on the daily charts despite the explosive jump witnessed earlier today. Prices are trading above the 100 & 200 Simple Moving Averages which is coincidentally above the 1.2750 support level. An intraday breakout above 1.2900 could spark a move higher towards 1.3000 in the short term. Alternatively, if prices trade back below 1.2750, the next key levels of interest will be around 1.2650 and 1.2500, respectively.

Ultimately, where the GBPUSD concludes this week will remain heavily influenced by Brexit developments.

 

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

Dollar bearish bets rose as Fed signaled low rates until 2024

By IFCMarkets.com

US dollar net short bets decrease reversed with total net shorts rising to $33.60 billion from $30.9 billion against the major currencies during the one week period, according to the report of the Commodity Futures Trading Commission (CFTC) covering data up to September 22 and released on Friday September 25. The increase in net short dollar bets was the result of mainly increase in bullish bets on euro as the euro-zone current account surplus decline to €16.6 billion in July from €20.7 billion was smaller than forecast. Dollar bearish bets rose as the Labor Department reported above expected 860 thousand Americans filed for first-time jobless benefits and Federal Reserve kept interest rates at zero and Fed chair Powell told interest rates would remain low until at least 2024 and more fiscal support is likely to be needed. At the same time the Chicago Fed’s national activity index, which reflects overall US economic activity, fell to 0.79 in August from 2.54 in the prior month, while the federal government debt soared 58.9% to $22.58 trillion in the second quarter, after 11.4% gain in the first quarter.

CFTC Sentiment vs Exchange Rate

September 22 2020 Bias Ex RateTrend Position $ mln Weekly Change
CAD bearish negative -1420 -135
AUD bullish negative 1171 -12
EUR bullish negative 27923 1477
GBP bullish positive 236 51
CHF bullish negative 2163 503
JPY bullish negative 3524 810
Total 33598

 

commitment of traders net long short
 

 

commitment of traders weekly change
 

 

market sentiment ratio long short positions
Market Analysis provided by IFCMarkets.com

Fibonacci Retracements Analysis 28.09.2020 (GOLD, USDCHF)

Article By RoboForex.com

XAUUSD, “Gold vs US Dollar”

As we can see in the H4 chart, XAUUSD has finished the correction by breaking the Triangle pattern downwards; after reaching 38.2% fibo at 1836.50, the pair has failed to break it yet, which may indicate a possible local pullback. If the price breaks 38.2% fibo, it may continue falling to reach 50.0% and 61.8% fibo at 1763.30 and 1690.00 respectively. The resistance remains at the high at 2074.75.

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

In the H1 chart, the pair is forming a short-term pullback. The local convergence made XAUUSD reach 23.6% fibo but after a rebound from the low it may resume trading upwards to reach 38.2% and 50.0% fibo at 1891.25 and 1904.45 respectively. If the asset breaks the support, which is the local low at 1848.69, the instrument may complete the pullback.

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, the convergence made USDCHF complete the descending wave at the long-term 38.2% fibo and start a new correction to the upside, which has already broken 23.6% fibo and may continue moving towards 38.2% fibo at 0.9343. After that, there might be a slight correction to the downside, which may be followed by further growth towards 50.0% and 61.8% fibo at 0.9449 and 0.9554 respectively. After finishing the correction, the instrument may resume falling to break the support at 0.8998 and then reach the long-term 50.0% fibo at 0.8706.

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

In the H1 chart, the asset is moving upwards but the MACD indicator is forming a divergence at the same time, which hints at a possible pullback after the pair reaches the target at 38.2% fibo at 0.9343; possible correctional targets are 23.6%, 38.2%, and 50.0% fibo at 0.9273, 0.9231, and 0.9196 respectively.

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.

Forex Technical Analysis & Forecast 28.09.2020

Article By RoboForex.com

EURUSD, “Euro vs US Dollar”

After breaking 1.1640 and reaching the short-term downside target, EURUSD is expected to grow and test 1.1640 from below. Later, the market may form a new descending structure with the target at 1.1600 and then resume trading upwards to reach 1.1740.

EURUSD
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 still consolidating around 1.2730; it has expanded the range down to 1.2692. Possibly, today the pair may expand the range up to 1.2810 and then trade downwards to reach 1.2690. If later the price breaks this level to the downside, the market may continue moving inside the downtrend with the key target at 1.2600. After that, the instrument may start a new correction towards 1.2870.

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

USDRUB, “US Dollar vs Russian Ruble”

After forming another consolidation range below 77.40 and breaking it upwards, USDRUB has completed the ascending structure at 78.32 and may later continue trading upwards. Today, the pair may fall to test 77.50 from above and then start another growth towards 78.70. After that, the instrument may correct with the target at 76.60.

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

USDJPY, “US Dollar vs Japanese Yen”

After completing the ascending structure at 105.60, USDJPY is falling towards 105.00. Later, the market may form one more ascending structure to reach 106.00 and then start a new decline to return to 105.00.

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

USDCHF, “US Dollar vs Swiss Franc”

After finishing the ascending structure at 0.9292, USDCHF is consolidating below this level. Possibly, the pair may resume moving upwards to reach 0.9308 or even 0.9340. Later, the market may correct with the target at 0.9215.

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

AUDUSD, “Australian Dollar vs US Dollar”

After completing another descending wave at 0.7004, AUDUSD is expected to grow and reach 0.7070. After that, the instrument may resume trading downwards to break 0.7000 and then continue falling with the target at 0.6930. Later, the market may start a new correction towards 0.7240.

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

BRENT

Brent is still consolidating around 42.00. Possibly, the asset may expand the range down to 41.20. After that, the instrument may form one more ascending structure to break 42.70 and then continue trading upwards with the target 44.60.

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

XAUUSD, “Gold vs US Dollar”

Gold is still consolidating at the lows. According to the main scenario, the price may expand the range down to 1848.80 and then start a new growth to reach 1878.50. If later the price breaks this range to the upside, the market may form one more ascending structure towards 1921.15; if to the downside – resume trading within the downtrend with the target at 1830.00.

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

BTCUSD, “Bitcoin vs US Dollar”

After forming another consolidation range around 10660.00, BTCUSD is moving to break it to the upside. Possibly, the pair may extend this structure up to 11200.00 and then resume trading downwards to return to 10660.00. If later the price breaks 10600.00, the market may continue falling with the target at 10000.00 or even 9700.00.

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

S&P 500

The S&P index is still consolidating around 3269.9 not far from the upside border. Today, the asset may expand the range up to 3330.0 and then start another decline towards 3202.2. After that, the instrument may form one more ascending structure with the target at 3320.00.

S&P 500

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 2020.09.28

by JustForex

The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.16696
  • Open: 1.16265
  • % chg. over the last day: -0.36
  • Day’s range: 1.16150 – 1.16402
  • 52 wk range: 1.0637 – 1.2012

The bearish sentiment still prevails on the EUR/USD currency pair. The trading instrument has set new local lows again. At the moment, EUR/USD quotes are consolidating in the range of 1.1615-1.1655. Financial market participants have taken a wait-and-see attitude before the first debate between President Donald Trump and Democratic candidate Joe Biden. We recommend opening positions from key levels.

The publication of important economic releases is not planned today. We recommend paying attention to the speech by the ECB President.

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, but above the signal line, which gives a weak signal to sell EUR/USD.

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

Trading recommendations
  • Support levels: 1.1615, 1.1600
  • Resistance levels: 1.1655, 1.1685, 1.1715

If the price fixes below 1.1615, a further drop in EUR/USD quotes is expected. The movement is tending to 1.1590-1.1570.

An alternative could be the growth of the EUR/USD currency pair to 1.1680-1.1720.

The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.27411
  • Open: 1.27618
  • % chg. over the last day: +0.15
  • Day’s range: 1.27504 – 1.28014
  • 52 wk range: 1.1409 – 1.3516

The GBP/USD currency pair is in flat. There is no defined trend. Investors expect additional drivers. At the moment, the local support and resistance levels are 1.2750 and 1.2810, respectively. The debate between President Donald Trump and Democratic candidate Joe Biden is in the spotlight. Positions should be opened from key levels.

The publication of important UK economic reports is not planned.

GBP/USD

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

The MACD histogram has started growing, which indicates the development of bullish sentiment.

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

Trading recommendations
  • Support levels: 1.2750, 1.2680, 1.2600
  • Resistance levels: 1.2810, 1.2865, 1.2915

If the price fixes above 1.2810, the GBP/USD currency pair is expected to grow. The movement is tending to 1.2850-1.2880.

An alternative could be a drop in GBP/USD quotes to 1.2720-1.2670.

The USD/CAD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.33557
  • Open: 1.33820
  • % chg. over the last day: +0.16
  • Day’s range: 1.33742 – 1.34034
  • 52 wk range: 1.2949 – 1.4669

USD/CAD quotes have become stable after a prolonged rally. At the moment, the loonie is consolidating. Local support and resistance levels are 1.3370 and 1.3415, respectively. In the near future, a technical correction of the trading instrument 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 do not give accurate signals: the price is testing 50 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 above the %D line, which gives a signal to buy USD/CAD.

Trading recommendations
  • Support levels: 1.3370, 1.3325, 1.3290
  • Resistance levels: 1.3415, 1.3500

If the price fixes above 1.3415, further growth in USD/CAD quotes is expected. The movement is tending to 1.3450-1.3470.

An alternative could be a decline in the USD/CAD currency pair to 1.3330-1.3300.

The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 105.391
  • Open: 105.480
  • % chg. over the last day: +0.19
  • Day’s range: 105.264 – 105.690
  • 52 wk range: 101.19 – 112.41

The USD/JPY currency pair is still being traded in flat. The technical pattern is ambiguous. Investors expect additional drivers. At the moment, the local support and resistance levels are 105.20 and 105.50, respectively. 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 do not give accurate signals: the price has fixed between 50 MA and 100 MA.

The MACD histogram has started declining, which indicates the bearish sentiment.

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

Trading recommendations
  • Support levels: 105.20, 104.85, 104.45
  • Resistance levels: 105.50, 105.70, 106.00

If the price fixes above 105.50, further growth in USD/JPY quotes is expected. The movement is tending to the round level of 106.00.

An alternative could be a decline in the USD/JPY currency pair to 104.90-104.70.

by JustForex

 

This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.

EUR/USD Sticking to Its Two-Month Lows

Author: Dmitriy Gurkovskiy, Chief Analyst at RoboForex

On the final September Monday, the major currency pair is sticking to its two-month lows and trading around 1.1634.

The start of this week is anticipated to be calm for EUR/USD but there will be a lot of news later.

As usual, at the beginning of every month, the USA is going to report on its labor market and September readings may raise a lot of questions. The first of them is whether the positive impulse, which helped to eliminate the spring crisis with jobs and labor force, is still strong or on the decline and may start consolidating? If the employment indicators do not steadily improve, there will be talks about additional stimulus packages, which is a serious problem.

This week, the USA will publish the final report on the country’s GDP for the second quarter of 2020. If the actual readings are not worse than expected, the USD may find some support because all problems in this area have already been included in prices.

In the H4 chart, EUR/USD is forming the third descending wave with the target at 1.1600. Later, the market may correct towards 1.1744 and then continue trading inside the downtrend with the target at 1.1500. From the technical point of view, this scenario is confirmed by MACD Oscillator: its signal line is no longer moving inside the histogram area. However, taking into account that on the price chart the instrument may yet continue falling, the line is not expected to rise towards 0 until the price reaches the target. If later the line breaks 0, there might be a new correction on the price chart.

As we can see in the H1 chart, after breaking 1.1640, EUR/USD is consolidating below it. Possibly, the pair may test this level from below and then resume falling to break 1.1612. After that, the instrument may continue trading downwards to reach 1.1600 at least. From the technical point of view, this scenario is confirmed by Stochastic Oscillator: its signal line is moving downwards and has already broken 50. Later, it may continue falling to reach 20. Only after the line leaves the area of 20, the asset may start a correction on the price chart.

Disclaimer

Any forecasts contained herein are based on the author’s particular opinion. This analysis may not be treated as trading advice. RoboForex bears no responsibility for trading results based on trading recommendations and reviews contained herein.

Week in review: King Dollar returns as risk aversion grips markets

By Lukman Otunuga, Research Analyst, ForexTime

It was a gloomy start to the trading week as the sharp rises in coronavirus cases triggered fears around new and extended local and national lockdowns.

Equity markets kicked off Monday flashing red with the S&P 500 extending losses thanks to the lack of progress on a new US stimulus package.

Investors who were expecting some action and fireworks from Tesla’s battery day were left empty-handed after Elon Musk’s announcement underwhelmed. The lack of fresh detail on the price of battery packs and the absence of ground-breaking announcements prompted market players to reverse out of Tesla. The company’s shares have dropped over 8.5% this week.

In our technical outlook, it was all about the return of king Dollar after being crushed by G10 currencies in Q3. Appetite towards the world’s most liquid currency has been boosted by a fresh spike of coronavirus cases in Europe with the Dollar Index breaking above the 94.00 resistance. Talking technicals, the DXY is turning increasingly bullish with the upside momentum potentially opening a path towards 96.00.

As the week progressed, stocks just couldn’t catch a bid as risk aversion intensified while the word “hike” by a certain Federal Reserve official pushed the Dollar higher!

There was little action in the FX space mid-week despite the flurry of PMI figures from Europe, the United Kingdom and the United States. It was interesting how investors mostly shrugged off the PMI data showing that European economies were recovering at a slower pace than expected from restrictions and lockdowns.

The September selloff in US stocks gained momentum as the S&P 500 flirted with a technical correction! A technical correction is when the price of an asset falls 10% or more from its recent high. Given how both the S&P 500 and Nasdaq have tumbled considerably over the past few weeks, is the party over?

On Friday, equity bulls drew some comfort from reports that House Democrats were drafting a US $2.4 trillion stimulus plan. However, these gains could be temporary given the rising coronavirus cases in Europe and more than half of U.S states.

As another eventful trading week comes, the million Dollar question is whether the Greenback will extend gains in the week ahead.

Commodity spotlight – Gold

Gold is on route to concluding the week almost 4.5% lower thanks to a resurgent Dollar.

Expect the precious metal to extend losses in the week ahead if the Dollar continues to steal Gold’s safe-haven flows. Looking at the technical picture, prices are bearish on the daily charts. A weekly close below $1890 may open a path towards $1820.

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

NZDUSD Analysis: Deteriorating New Zealand data bearish for NZDUSD

By IFCMarkets.com

Deteriorating New Zealand data bearish for NZDUSD

New Zealand’s economic data in the last couple of weeks were weak. Visitor arrivals continued to drop in July at unchanged pace, the services sector expansion stopped in August and manufacturing sector expansion almost stopped, while the trade surplus turned into deficit in August. Thus, visitor arrivals dropped 98.5% over year in July after 98.4% drop in previous month. The Business NZ Performance of Services Index fell to 46.9 in August from 54.4 in the previous month, and the Business NZ Performance of Manufacturing Index dropped to 50.7 in August from 59 in July. At the same time the balance of trade surplus of N$447 million in July turned into a deficit of N$353 million in August. Weak New Zealand economic data are bearish for NZDUSD.

Indicator VALUE Signal
RSI Neutral
MACD Sell
Donchian Channel Neutral
MA(200) Buy
Fractals Neutral
Parabolic SAR Sell

 

Summary of technical analysis

Order Sell
Buy stop Below 0.651
Stop loss Above 0.6796

Market Analysis provided by IFCMarkets.com

Ichimoku Cloud Analysis 25.09.2020 (USDCHF, USDCAD, CADJPY)

Article By RoboForex.com

USDCHF, “US Dollar vs Swiss Franc”

USDCHF is trading at 0.9265; the instrument is moving above Ichimoku Cloud, thus indicating an ascending tendency. The markets could indicate that the price may test Tenkan-Sen and Kijun-Sen at 0.9225 and then resume moving upwards to reach 0.9375. Another signal in favor of further uptrend will be a rebound from the rising channel’s downside border. However, the bullish scenario may no longer be valid if the price breaks the cloud’s downside border and fixes below 0.9105. In this case, the pair may continue falling towards 0.9015.

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

USDCAD, “US Dollar vs Canadian Dollar”

USDCAD is trading at 1.3357; the instrument is moving above Ichimoku Cloud, thus indicating an ascending tendency. The markets could indicate that the price may test Tenkan-Sen and Kijun-Sen at 1.3285 and then resume moving upwards to reach 1.3525. Another signal in favor of further uptrend will be a rebound from the rising channel’s downside border. However, the bullish scenario may no longer be valid if the price breaks the cloud’s downside border and fixes below 1.3175. In this case, the pair may continue falling towards 1.3085.

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

CADJPY, “Canadian Dollar vs Japanese Yen”

CADJPY is trading at 78.86; the instrument is moving below Ichimoku Cloud, thus indicating a descending tendency. The markets could indicate that the price may test the cloud’s downside border at 79.10 and then resume moving downwards to reach 77.25. Another signal in favor of further downtrend will be a rebound from the descending channel’s upside border. However, the bearish scenario may no longer be valid if the price breaks the cloud’s upside border and fixes above 79.75. In this case, the pair may continue growing towards 80.65.

CADJPY

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 2020.09.25

by JustForex

The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.16601
  • Open: 1.16696
  • % chg. over the last day: +0.11
  • Day’s range: 1.16626 – 1.16850
  • 52 wk range: 1.0637 – 1.2012

The EUR/USD currency pair has become stable after a significant drop. Investors have started partially fixing positions on the greenback. At the moment, the trading instrument is consolidating. The key range is 1.1630-1.1685. Financial market participants are still concerned about the active increase in the incidence of COVID-19 in many countries around the world. The US Congress has resumed talks on a new stimulus package. Today we expect important economic reports from the US. Positions should be opened from key levels.

The news feed on 2020.09.25:
  • – Durable goods orders in the US at 15:30 (GMT+3:00).

We also recommend paying attention to the speeches by the FOMC representatives.

EUR/USD

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

The MACD histogram is near the 0 mark. There are no signals at the moment.

Stochastic Oscillator is in the neutral zone, the %K line is above the %D line, which gives a signal to buy EUR/USD.

Trading recommendations
  • Support levels: 1.1630, 1.1600
  • Resistance levels: 1.1685, 1.1715, 1.1750

If the price fixes above 1.1685, EUR/USD quotes are expected to correct. The movement is tending to 1.1725-1.1750.

An alternative could be the decline of the EUR/USD currency pair to the round level of 1.1600.

The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.27141
  • Open: 1.27411
  • % chg. over the last day: +0.21
  • Day’s range: 1.27316 – 1.28052
  • 52 wk range: 1.1409 – 1.3516

The GBP/USD currency pair has been growing. The British pound has updated local highs. At the moment, GBP/USD quotes are testing the round level of 1.2800. The level of 1.2745 is the nearest support. The trading instrument has the potential for further correction. Trading activity and volatility are still high. We recommend paying attention to the news feed from the US. Positions should be opened from key levels.

The publication of important UK economic reports is not planned.

GBP/USD

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

The MACD histogram has started growing, which indicates the development of 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: 1.2745, 1.2680, 1.2600
  • Resistance levels: 1.2800, 1.2865, 1.2915

If the price fixes above the round level of 1.2800, further growth of the GBP/USD currency pair is expected. The movement is tending to 1.2850-1.2880.

An alternative could be a drop in GBP/USD quotes to 1.2700-1.2660.

The USD/CAD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.33801
  • Open: 1.33557
  • % chg. over the last day: -0.17
  • Day’s range: 1.33327 – 1.33671
  • 52 wk range: 1.2949 – 1.4669

USD/CAD quotes have been declining after a prolonged rally. The trading instrument has updated local lows. At the moment, the loonie is consolidating in the range of 1.3325-1.3370. The technical pattern signals a further correction of the USD/CAD currency pair. Today, we recommend paying attention to economic releases from the US, as well as 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 fixed between 50 MA and 100 MA.

The MACD histogram has started declining, which indicates a further correction of the USD/CAD currency pair.

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: 1.3325, 1.3290, 1.3255
  • Resistance levels: 1.3370, 1.3415

If the price fixes below 1.3325, further correction of USD/CAD quotes is expected. The movement is tending to 1.3290-1.3260.

An alternative could be the growth of the USD/CAD currency pair to 1.3410-1.3430.

The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 105.355
  • Open: 105.391
  • % chg. over the last day: +0.02
  • Day’s range: 105.240 – 105.542
  • 52 wk range: 101.19 – 112.41

The USD/JPY currency pair is in a sideways trend. There is no defined trend. Financial market participants expect additional drivers. The trading instrument is testing local support and resistance levels: 105.20 and 105.55, respectively. 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 do not give accurate signals: the price has crossed the 50 MA.

The MACD histogram is near the 0 mark. There are no signals at the moment.

Stochastic Oscillator has started exiting the oversold zone, the %K line is above the %D line, which indicates the bullish sentiment.

Trading recommendations
  • Support levels: 105.20, 104.85, 104.45
  • Resistance levels: 105.55, 105.80, 106.20

If the price fixes above 105.55, further growth in USD/JPY quotes is expected. The movement is tending to the round level of 106.00.

An alternative could be a decline in the USD/JPY currency pair to 104.90-104.70.

by JustForex

 

This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.