Archive for Forex and Currency News – Page 2

USD continues to decline for the fifth consecutive session

By Orbex

EURUSD Fails To Breakout Above Resistance At 1.1132

The common currency made attempts to rise past the 1.1132 price level on Monday.

However, the gains were quickly erased as the currency was pushed lower.

EURUSD is likely to confirm the resistance at 1.1132. This opens the downside back to the 1.1000 level.

But, establishing support here could potentially pave the way for further gains in the medium-term outlook.

For the moment, the outlook is to the downside but watch for any minor reversals that could quickly form into new support levels.

This will keep the medium-term upside bias in view. In the descent to the 1.1000 level, a lower high will validate the correction.

GBPUSD Pulls Back After Briefly Hitting Resistance At 1.2424

The GBPUSD currency pair is making steady advances after prices found support near 1.2277.

The gains saw the British pound aiming for the 1.2424 level. Although the pair managed to rise to this level briefly, it has pulled back.

We expect sellers to keep a lid on the currency from posting further gains.

This could mean that GBPUSD will drift lower, albeit supported near 1.2277.

In the near term, watch for minor support to form near 1.2343.

A reversal off this level could potentially suggest a breakout above 1.2424.

WTI Crude Oil Reverses Gains After Rising Above 35.50

Oil prices rose to a two-month high on Monday, briefly rising above 35.50. But prices quickly gave up the gains.

The retracement will likely see support forming near the 33.66 level. A reversal off this level will support the upside bias.

Oil prices need to follow through by posting a higher high. Else, this could potentially keep price action subdued but supported above the 35.50 level.

There is of course the risk of a move lower.

A close below 33.66 could open the downside risk for a move towards the 27.95 level.

Given that support hasn’t been tested at this level, the 27.95 remains a prime target.

XAUUSD Higher At The Open, But Fails To Build Up Momentum

Gold prices opened higher on Monday, but price action has failed to make any major gains.

We expect to see a flat close which could potentially suggest the downside building up. This also coincides with the lower high that is currently forming.

In the near term, the lower support at 1717.65 might be able to stall the precious metal from declining further.

This potentially puts the gold price to move into a sideways range, unless there is a strong breakout lower.

By Orbex

Ichimoku Cloud Analysis 02.06.2020 (EURUSD, BTCUSD, USDJPY)

Article By RoboForex.com

EURUSD, “Euro vs US Dollar”

EURUSD is trading at 1.1131; the instrument is moving above Ichimoku Cloud, thus indicating an ascending tendency. The markets could indicate that the price may test the cloud’s upside border at 1.1125 and then resume moving upwards to reach 1.1255. Another signal in favor of further uptrend will be a rebound from the rising channel’s downside border. However, the bullish scenario may be canceled if the price breaks the cloud’s downside border and fixes below 1.1055. In this case, the pair may continue falling towards 1.0965. To confirm further growth, the asset must break the upside border of the Triangle pattern and fix above 1.1165.

EURUSD
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 10062.00; 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 9675.00 and then resume moving upwards to reach 11065.00. Another signal in favor of further uptrend will be a rebound from the upside border of a Triangle pattern. However, the bullish scenario may no longer be valid if the price breaks the cloud’s downside border and fixes below 9055.00. In this case, the pair may continue falling towards 8265.00.

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

USDJPY, “US Dollar vs Japanese Yen”

USDJPY is trading at 107.71; the instrument is moving above Ichimoku Cloud, thus indicating an ascending tendency. The markets could indicate that the price may test the cloud’s downside border at 107.40 and then resume moving upwards to reach 108.65. Another signal is favor of further uptrend will be a rebound from the support level. However, the bullish scenario may no longer be valid if the price breaks the cloud’s downside border and fixes below 107.05. In this case, the pair may continue falling towards 106.25. To confirm further growth, the asset must break the resistance and fix above 108.05, thus completing an Inverted Head & Shoulders pattern.

USDJPY

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 2020.06.02

by JustForex

The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.11148
  • Open: 1.11349
  • % chg. over the last day: +0.16
  • Day’s range: 1.11153 – 1.11385
  • 52 wk range: 1.0777 – 1.1494

The EUR/USD currency pair has become stable after prolonged growth. Quotes are currently consolidating. The local support and resistance levels are 1.1100 and 1.1150, respectively. The demand for risky assets is still high amid hopes of a recovery in the global economy. Investors continue to monitor the conflict between Washington and Beijing, as well as mass protests throughout the United States. Positions should be opened from key 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 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: 1.1100, 1.1065, 1.1035
  • Resistance levels: 1.1150, 1.1180, 1.1200

If the price fixes above 1.1150, further growth of EUR/USD quotes is expected. The movement is tending to the round level of 1.1200.

An alternative could be a decrease in the EUR/USD currency pair to 1.1070-1.1050.

The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.23235
  • Open: 1.24889
  • % chg. over the last day: +1.20
  • Day’s range: 1.24784 – 1.25543
  • 52 wk range: 1.1466 – 1.3516

There are aggressive purchases on the GBP/USD currency pair. During yesterday’s and today’s trading sessions, the growth of quotes exceeded 200 points. The British pound has reached 4-week highs. The trading instrument is currently consolidating. The key range is 1.2480-1.2550. The demand for risky assets is still high. The British pound has the potential for further growth. We recommend opening positions from key levels.

The news feed on the UK economy is calm.

GBP/USD

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

The MACD histogram is in the positive zone and continues to rise, which gives a strong signal to buy GBP/USD.

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

Trading recommendations
  • Support levels: 1.2480, 1.2425, 1.2365
  • Resistance levels: 1.2550, 1.2600

If the price fixes above 1.2550, further growth of GBP/USD quotes is expected. The movement is tending to 1.2600-1.2630.

An alternative could be a decrease in the GBP/USD currency pair to 1.2440-1.2400.

The USD/CAD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.37748
  • Open: 1.35745
  • % chg. over the last day: -1.49
  • Day’s range: 1.35297 – 1.35852
  • 52 wk range: 1.2949 – 1.4668

USD/CAD quotes show a steady downtrend. During yesterday’s and today’s trading sessions, the drop in quotes exceeded 240 points. The recovery of “black gold” prices supports the loonie. The trading instrument is currently consolidating. The local support and resistance levels are 1.3530 and 1.3585, respectively. USD/CAD quotes have the potential for further decline. Positions should be opened from key levels.

The news feed on Canada’s economy is calm.

USD/CAD

Indicators signal the power of sellers: the price has fixed below 50 MA and 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 crossed the %D line. There are no signals at the moment.

Trading recommendations
  • Support levels: 1.3530, 1.3450
  • Resistance levels: 1.3585, 1.3675, 1.3735

If the price fixes below 1.3530, a further drop in USD/CAD quotes is expected. The movement is tending to 1.3460-1.3420.

An alternative could be the growth of the USD/CAD currency pair to 1.3640-1.3660.

The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 107.679
  • Open: 107.584
  • % chg. over the last day: -0.12
  • Day’s range: 107.513 – 107.835
  • 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. At the moment, the local support and resistance levels are 107.65 and 107.90, respectively. Investors expect additional drivers. 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: 50 MA has started crossing 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: 107.65, 107.50, 107.35
  • Resistance levels: 107.90, 108.30, 108.60

If the price fixes below 107.65, USD/JPY quotes are expected to fall. The movement is tending to 107.50-107.20.

An alternative could be the growth of the USD/JPY currency pair to 108.20-108.50.

by JustForex

The US Currency Is Under Pressure due to Protests in the US

by JustForex

The US dollar has continued to decline against a basket of currency majors. The dollar index (#DX) has updated local lows and closed in the negative zone (-0.53) yesterday. The US currency is under pressure due to tensions between the US and China, as well as mass protests in the United States. In 15 states and Washington, National Guard units were deployed to contain the protests that began due to the death of African-American, George Floyd, after police custody.

Today, the Reserve Bank of Australia has decided on a key interest rate during the Asian trading session. As experts forecasted, the indicator was left unchanged at 0.25% per annum. Demand for risky assets is still high amid investors’ hopes of economic recovery after the consequences of COVID-19.

The “black gold” prices have been growing in expectation of OPEC+ meeting. At an online meeting later this week, major manufacturers will decide whether to extend record cuts in production to support prices. Currently, futures for the WTI crude oil are testing the $36.15 mark per barrel. At 23:30 (GMT+3:00), API weekly crude oil stock will be published.

Market indicators

Yesterday, there was the bullish sentiment in the US stock market: #SPY (+0.40%), #DIA (+0.39%), #QQQ (+0.30%).

The 10-year US government bonds yield is consolidating. At the moment, the indicator is at the level of 0.66-0.67%.

The news feed on 2020.06.02:
  • Today, the publication of important economic news is not expected.

by JustForex

Sterling sets aside Brexit risks even as UK-EU talks commence today

By Han Tan, Market Analyst, ForexTime

GBPUSD is trading around its highest levels in a month, having briefly breached the 1.25 psychological level.

Sterling, along with the rest of its G10 peers, has been able to take advantage of the waning US Dollar at the onset of June as they try to pare back their year-to-date losses. Even with its recent rally, the Pound remains over 5.8 percent weaker against the Greenback compared to the start of the year.

UK and EU negotiators are resuming talks today to try and reach a post-Brexit trade deal. If both London and Brussels fail to come to an agreement, at least to extend the transition period beyond 2020, then such a scenario raises the prospects of a hard-Brexit at the onset of the new year. Hence, any development surrounding these June talks could trigger bouts of volatility in Sterling.

The Pound’s outlook remains bearish overall, considering the possibility that the Bank of England could adopt negative interest rates, potentially by February 2021. A no-deal Brexit, coupled with negative UK interest rates, could see GBPUSD plummeting.

For the time being, traders are looking past such concerns and focusing instead on the UK economy’s post-pandemic recovery. The government is set to announce an economic stimulus package next month, which is expected to help mitigate the economic damage from the coronavirus outbreak. Such optimism is curbing the pessimism surrounding Sterling, with Pound-Dollar one-month 25 Delta risk reversals showing that traders have grown less bearish on GBPUSD since March.

From a technical perspective, GBPUSD appears to have more room to run to the upside, with the currency pair yet to venture into ‘overbought’ territory, judging by the 14-day relative strength index. Sterling’s next advance against the Greenback may be capped below the 1.265 line, as was the case on two separate attempts in April. It remains to be seen whether GBPUSD has enough momentum to actually breach that 1.265 resistance level over the short-term, although I’m fairly certain the Dollar will have a major say about that.

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 bruised by majors as optimism returns

By Lukman Otunuga, Research Analyst, ForexTime

Investors have marched into June with a renewed appetite for risk after President Donald Trump’s response to China’s new law reining in Hong Kong was not as bad as initially feared.

It looks like market players are dumping in favour of riskier currencies amid the growing optimism and this continues to be reflected across the G10 space. With the mighty Dollar entering the new trading month clearly on the wrong side of the bed, could weakness be a dominant theme over the next few weeks?

The Dollar Index (DXY) daily chart is certainly worth one thousand words. Prices are under pressure with bearish investors eyeing the 97.80 level. A solid daily close below this point may encourage a decline towards 96.25.

AUDUSD explodes higher with 0.6850 in sight

The Australian Dollar took advantage of a weaker Dollar on Monday as prices rallied towards 0.6800.

A weaker Greenback should inject Aussie bulls with enough inspiration to break above 0.6800 with 0.6850 acting as the next key level of interest. If rally runs out of steam and prices sink back under 0.6700, then the AUDUSD may retrace back towards 0.6550.

USDJPY remains rangebound

Prices are trading near the 108.00 resistance level and could sink back towards 107.00 if the Dollar continues to weaken. A breakdown below 107.00 may trigger a drop towards 105.90.

USDCAD tumbles below 1.3680

Talk about a way to start the final trading month of Q2.

The USDCAD has tumbled almost 200 pips today and could sink lower thanks to a severely depressed Dollar. Should the Canadian Dollar appreciate on rising Oil prices, the USDCAD may sink lower towards 1.3500.

GBPUSD to break above 1.2500?

Who would have thought the GBPUSD would jump towards 1.2500 as Brexit talks official resume on Tuesday?

While the currency pair could push higher on Dollar weakness, the upside may be limited by uncertainty and fears over the UK economy.

A solid breakout above 1.2500 could trigger a move back towards 1.2650. Should 1.2500 prove to be a reliable resistance, prices may decline back towards 1.2350.

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 net short bets increase as US jobless number rises to 40 million

By IFCMarkets

US dollar bearish bets increased to $8.60 billion from $7.67 against the major currencies during the one week period, according to the report of the Commodity Futures Trading Commission (CFTC) covering data up to May 26 and released on Friday May 29. The change in overall dollar position was mainly due to significant decrease in bearish bets on Canadian dollar, and increase in bullish bets on Japanese yen and euro as the Japanese government announced it was considering a fresh stimulus package worth over $929 billion while data showed euro-zone’s economic activity contracted less drastically in May. The Pound, Canadian and Australian dollars maintained net short positions against the dollar. The bearish dollar bets rose as minutes of the Fed’s April policy meeting showed officials discussed how to convince markets that interest rates will stay low for a long time. Bearish bets on dollar increased as US Labor department report showed nearly 40 million Americans lost their jobs in the previous nine weeks.

 

CFTC Sentiment vs Exchange Rate

May 26 2020 Bias Ex RateTrend Position $ mln Weekly Change
CAD bearish negative -2463 49
AUD bearish positive -2694 -111
EUR bullish positive 10318 412
GBP bearish positive -1716 -263
CHF bullish positive 1131 8
JPY bullish negative 4023 835
Total 8598

 

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.

GBPUSD Analysis: UK manufacturing PMI upgrade bullish for GBPSD

By IFCMarkets

UK manufacturing PMI upgrade bullish for GBPSD

UK manufacturing PMI for May was revised upward: manufacturing PMI for May was revised up from preliminary reading of 40.6 to 40.7. This is bullish for GBPUSD.

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

 

Summary of technical analysis

Order Buy
Buy stop Above 1.2425
Stop loss Below 1.2373

Market Analysis provided by IFCMarkets

Forex Technical Analysis & Forecast 01.06.2020 (EURUSD, GBPUSD, USDRUB, USDJPY, USDCHF, AUDUSD, GOLD, BRENT, BTCUSD, S&P 500)

Article By RoboForex.com

EURUSD, “Euro vs US Dollar”

After finishing another ascending wave at 1.1111, EURUSD is consolidating around 1.1118. Possibly, the pair may expand the range up to 1.1157 and then return to 1.1118. If later the price breaks the range to the upside, the market may start a new growth towards 1.1192; if to the downside – resume trading inside the downtrend with the target at 1.1081.

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”

After breaking 1.2362 to the upside, GBPUSD is expected to continue growing towards 1.2447. After that, the instrument may start a new decline to reach 1.2362 and then form one more ascending structure with the target at 1.2518.

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

USDRUB, “US Dollar vs Russian Ruble”

USDRUB is consolidating to break 70.70 to the downside. Possibly, the pair may reach 69.86 and then return to 70.70 to test it from below. After that, the instrument may form one more ascending structure with the target at 69.44, at least.

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 107.86, USDJPY is falling to reach 107.44. Later, the market may resume trading upwards with the target at 107.64.

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

USDCHF, “US Dollar vs Swiss Franc”

USDCHF continues falling towards 0.9590. After that, the instrument may resume trading downwards with the target at 0.9650.

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 breaking 0.6692 to the upside, AUDUSD is expected to continue growing towards 0.6772. Later, the market may fall to return to 0.6692.

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

BRENT

After breaking 36.66, Brent is expected to reach 38.48, After that, the instrument may correct towards and return to 36.66. Later, the market may resume trading upwards with the target at 39.00 and then start a new correction towards 30.50.

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

XAUUSD, “Gold vs US Dollar”

After breaking 1734.34, Gold is expected to form one more ascending structure towards 1750.10. After that, the instrument may correct to test 1734.34 from above and then resume trading upwards with the target at 1775.50.

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

BTCUSD, “Bitcoin vs US Dollar”

After completing the ascending wave at 9700.00, BTCUSD has finished the descending impulse to reach 9400.00 along with the correction towards 9500.00. Possibly, today the pair form a new descending structure to break 9400.00 and then continue trading downwards with the target at 9200.00.

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

S&P 500

The Index is still growing. Today, the asset may reach 3084.5 and then fall towards 3043.7. After that, the instrument may start a new growth with the target at 3160.5.

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.

Fibonacci Retracements Analysis 01.06.2020 (GOLD, USDCHF)

Article By RoboForex.com

XAUUSD, “Gold vs US Dollar”

As we can see in the H4 chart, the divergence made XAUUSD start a new decline to reach 23.6% fibo at 1690.70, which was later followed by another ascending impulse towards the high at 1764.86. If the pair breaks the high, it may continue growing to reach the post-correctional extension area between 138.2% and 161.8% fibo at 1798.90 and 1858.60 respectively. However, there is another scenario, according to which the instrument may rebound from the high start a new descending wave towards 38.2% and 50.0% fibo at 1645.40 and 1607.83 respectively.

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

In the H1 chart, the convergence made the pair complete the descending wave at 23.6% fibo (1690.70) and start a new growth to break the high 1764.86.

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 the downside border of the Triangle pattern, USDCHF has failed to break the similar border of the Flat pattern. However, a breakout of this border is just a question of time. The current decline may be considered as a new correctional wave towards 61.8% fibo at 0.9453. The resistance remains in at 0.9743.

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

In the H1 chart, the descending wave is approaching 50.0% fibo at 0.9538. At the same time, one can see a convergence on MACD, which may indicate a rebound towards 0.9638. Earlier, this level acted as a support.

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.