InvestMacro

by JustForex

The EUR/USD currency pair

Technical indicators of the currency pair:

• Prev Open: 1.10830
• Open: 1.10928
• % chg. over the last day: +0.11
• Day’s range: 1.10798 – 1.10995
• 52 wk range: 1.0879 – 1.1572

EUR/USD currency pair continues to trade in Flat. There is no defined trend is not observed. Currently, the local support and resistance levels are 1.10750 and 1.11000, respectively. Investors took to a waiting approach before the ECB meeting. It is expected that the regulator will keep the main monetary policy parameters at the same level. We recommend you to pay attention to the comments and rhetoric of the Central Bank representatives. Open positions from key levels.

At 14:45 (GMT+2:00) the ECB will announce its key interest rate.

Indicators do not give accurate signals: the price is consolidating near 50 MA and 100 MA.

MACD histogram is near the 0 mark.

The stochastic oscillator is located in the neutral zone, the %K line is below the %D line, which gives a sell signal for EUR/USD.

Trading recommendations

• Support levels: 1.10750, 1.10400
• Resistance levels: 1.11000, 1.11200, 1.11450

If the price fixes below 1.10750, further decline of EUR/USD quotes is expected to 1.10400-1.10200.

Alternatively, the EUR/USD currency pair may recover to 1.11200-1.11500.

The GBP/USD currency pair

Technical indicators of the currency pair:

• Prev Open: 1.30450
• Open: 1.31387
• % chg. over the last day: +0.71
• Day’s range: 1.31191 – 1.31509
• 52 wk range: 1.1959 – 1.3516

The GBP/USD currency pair is dominated by bullish sentiments. Yesterday the quotes growth exceeded 90 points. The trading instrument has set new local highs. The demand for sterling rose after the Confederation of British Industry reported about the strengthening of producer sentiment. According to Refinitiv, financial markets participants see a 50% chance of rate cuts compared to 70% on Monday. The meeting of the Bank of England is scheduled for next week. Currently, GBP/USD quotes are consolidated in the range 1.31000-1.31450. We do not rule out further strengthening of the pound against the US dollar. Open positions from key levels.

The Economic News Feed for 23.01.2020 is calm.

The indicators signal the strength of buyers: the price has fixed above 50 MA and 100 MA.

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

The Stochastic Oscillator is located in the oversold area, the %K line crossed the %D line. There are no signals at the moment.

Trading recommendations

• Support levels: 1.31000, 1.30750, 1.30350
• Resistance levels: 1.31450, 1.32000

If the price fixes above 1.31450, expect further growth of GBP/USD quotes to the round level of 1.32000.

Alternatively, the quotes could decrease to 1.30700-1.30400.

The USD/CAD currency pair

Technical indicators of the currency pair:

• Prev Open: 1.30712
• Open: 1.31347
• % chg. over the last day: +0.57
• Day’s range: 1.31326 – 1.31716
• 52 wk range: 1.2949 – 1.3566

Aggressive purchases are observed on the USD/CAD currency pair. The looney has overcome and strengthened above the key extremums. Yesterday, Bank of Canada kept its key interest rate at 1.75% as expected, but opened the door for a possible decline in case of slow growth. Weak inflation data and negative dynamics of oil quotes put additional pressure on the Canadian dollar. We do not rule out further growth in the trading instrument. At the moment the key range is 1.31300-1.31700. Open positions from these marks.

Today the publication of important economic releases from Canada is not planned.

The indicators signal the strength of buyers: the price has fixed above 50 MA and 100 MA.

MACD histogram is in the positive zone, which gives a signal to buy USD/CAD.

The Stochastic Oscillator is in the neutral zone, the %K line is below the %D line, which indicates a possible correction of the USD/CAD currency pair.

Trading recommendations

• Support levels: 1.31300, 1.31000, 1.30750
• Resistance levels: 1.31700, 1.32000

If the price fixes above 1.31700, expect further growth toward 1.32000-1.32200.

Alternatively, the quotes could decine toward 1.31000.

The USD/JPY currency pair

Technical indicators of the currency pair:

• Prev Open: 109.848
• Open: 109.832
• % chg. over the last day: -0.02
• Day’s range: 109.503 – 109.856
• 52 wk range: 104.45 – 113.53

USD/JPY quotes have moved down. The trading instrument has updated the local lows. Investors started partially fixing USD positions after a long rally. Currently, USD/JPY is testing the support level at 109.500. The mark 109.700 is the nearest resistance. The trading instrument has a potential for further decline. We recommend you to pay attention to the dynamics of the US government bonds yield. Open positions from key levels.

Weak data on the trade balance of Japan was published during the Asian trading session.

The indicators signal the sellers’ strength: the price has fixed below 50 MA and 100 MA.

Histogram of MACD is in the negative zone, which indicates further correction of USD/JPY currency pair.

The Stochastic Oscillator is located in the oversold area, the %K line crossed the %D line. There are no signals at the moment.

Trading recommendations

• Support levels: 109.500, 109.200, 109.000
• Resistance levels: 109.700, 109.800, 110.000

If the price fixes below 109.500, expect further correction toward 109.300-109.100.

Alternatively, the quotes could grow toward 109.900-110.000.

by JustForex

By Alpari.com

By Alpari.com

By TheTechnicalTraders.com

Chris Vermeulen joins me today to shares his trading strategy for 4 different markets. While most of these markets are not correlated he has reasons for why he is long in each. Pick and choose where you want to deploy your capital.

TheTechnicalTraders.com

Day after day, companies have been forced to make technological changes in order to adapt to new regulations, technological innovations and advances in society.

One of these changes that companies are now facing is the PSD2 digital payments regulation, which has gone into action since September 14, 2019.

What is PSD2?

PSD2 is the European regulation focused on electronic payment services. This system aims to facilitate and give maximum security to monetary transactions in Europe.

The PSD2 laws have been adapted and renewed according to technological advances and cybersecurity. In November 2018, the European Union communicated the new PSD2 regulation in order to fight against fraud in electronic payments, which has now entered into force on 14 September 2019.

What is the PSD2 regulation?

Some experts have announced that the new regulation will radically change the way we shop on the internet. But what does this new regulation really consist of?

Until now, when we wanted to make an online purchase, the platform redirected us to a payment gateway in which we had to insert certain information from our bank card (such as the number, expiration date and CVV). In many cases, this action is complemented with verification codes sent via SMS.

Therefore, we need a series of intermediaries to contact the company issuing the card, in order to indicate to our bank that the payment should be charged to another bank account.

With the new PSD2 regulation, every time the customer wants to make a digital payment, they must authenticate themselves using three ways: something you have (for example, coordinate card, mobile or ID card), something you know (a password or code, for example) or something you are (biometric proof such as voice or fingerprint).

In other words, bank cards will no longer be necessary to make purchases over the internet, nor will we be redirected to external payment gateways. With the new law, there will no longer be intermediaries and purchases can be made in a much easier way between client-company with total security.

How can companies adapt to this new law?

Faced with this, companies must adapt and have resources that adapt to the new regulations.

For example, payments through DTMF, i.e. by means of written insertion of digits, must update their resources, as this system will not serve them. Thus, other tools arrive that assume the role of the new regulation, such as telephone charging with a credit card.

This system, in addition to adapting to the new regulations, is integrated into a virtual PBX service. This also allows companies to offer customer service over the phone, as well as make payments over the phone.

However, given that many companies have not yet made any changes in their payment methods and are not ready to apply the new regulations, the Bank of Spain announced on September 5th a moratorium of 14 to 18 months for its full application.

The Bank of Spain points out that there will be no more postponements, and companies will have to adapt as soon as possible to this new law. This law aims to improve the security of both businesses and their customers, reduce intermediaries, and make businesses more competitive.

By Emma Smith

Article By RoboForex.com

GBPUSD, “Great Britain Pound vs US Dollar”

As we can see in the daily chart, GBPUSD is still correcting and forming Triangle pattern. The pair is stuck above the support at 38.2% (1.2883). If the price fails to break this level, it may start a new rising impulse to break the high at and reach mid-term 76.0% fibo at 1.3794.

The H4 chart shows that the correction has stopped at 38.2% fibo. If the price breaks the local low at 1.2904, the pair may continue falling towards 50.0% and 61.8% fibo at 1.2856 and 1.2700 respectively.

EURJPY, “Euro vs. Japanese Yen”

In the daily chart, after updating the previous high and failing to reach 61.8% fibo at 123.05, the pair has started a new pullback towards 50.0% fibo. Despite the divergence on MACD, it’s too early to think about the trend reverse, at least as long as EURJPY is trading above the support. It means that this decline should be considered as a new short-term correction, which may be followed by further growth towards 61.8% and 76.0% fibo at 123.05 and 124.69 respectively.

The H4 chart shows that the pair is moving downwards to reach 38.2%. However, if the price falls towards 23.6% fibo at 121.21, the decline may continue to reach 38.2% and 50.0% fibo at 120.19 and 119.36 respectively. If the price breaks the resistance at 122.87, the mid-term growth will continue.

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.

By ForexNewsNow

Trading in China has been hit by a double whammy: the spread of a deadly pneumonia virus (which has already claimed nine lives), only made worse by the (planned) closing of the financial markets, ahead of the traditional Lunar New Year celebrations.

While the jury is still out on what that could actually mean, by Tuesday (21 January 2020), we already saw a falling yuan, as well as steep declines in the FTSE China A50 Index (registering the biggest drop in six months), reports Bloomberg.

Quoting a Shanghai trader, Bloomberg points to the fact that “people are getting nervous and cashing out”. What fuels uncertainty is the five-day trading break, which will affect the markets in China and Hong Kong (starting on Friday).

As we try to explain below, Forex trading has already taken note, leading to a global shake-up in the currency markets.

People are “discouraged” from leaving their homes, having a spill-over effect on travel and sale of consumer goods.

This is likely to impact European luxury stocks, which are most exposed to fluctuations in the Asian market. In a separate article, Bloomberg shows that luxury holdings LVMH SE and Kering have already registered falls to the tune of 2.5% and 3.7% (respectively). But it is not those investing in Europe that should be worried.

Some are already drawing comparisons to the outbreak of SARS (Severe acute respiratory syndrome) pandemic, that hit southern China in 2002-2003. The biggest concern for FX trading is whether the virus is capable of spreading. Why? This might negatively affect the surrounding countries, whose currencies are considerably more vulnerable.

The downfall spiral is driven by speculation about how serious the virus actually is. And the official numbers, released by the Chinese authorities are not helping, says the Financial Times. Talking to epidemiologists and leading public health experts, the paper believes that they are prone to underreporting and are actually much higher in reality.

Adding to growing concerns, CNN confirmed that the virus can spread between humans, breaking news this morning (Wednesday, 22 January 2020). The virus, which originally started in the city of Wuhan, central China, has now traveled to Japan, South Korea, Taiwan, Thailand and, the United States.

Effects on Forex trading: markets are growing more risk-averse, as safer “options” gain territory.

On Tuesday (21 January 2020), analysts were pointing to “a stronger yen, a stronger Swiss franc and risk aversion is setting in across everything”, which made gains at the expense of a weaker yuan. Reuters picked up on 0.54% rise by US dollar against offshore yuan (standing at 6.904 per dollar).

What is more, FX traders should “exercise caution” in making transactions in currencies, linked to Chinese trade and tourism. As discussed, this is likely to have a negative effect on markets in South-East Asia. Taking another example, Reuters points to the Australian dollar, which “touched its lowest in over a month” (standing at 0.6842 against the US dollar).

By ForexNewsNow

Article By RoboForex.com

EURUSD, “Euro vs US Dollar”

EURUSD is forming the fifth descending wave; after finishing the correctional wave towards 1.1117, the price has completed another descending structure with the first target at 1.1080. At the moment, the instrument is consolidating. Possibly, the pair may fall to reach 1.1075 and then grow towards 1.1087 at least. Later, the market may start a new decline with the target at 1.1062.

GBPUSD, “Great Britain Pound vs US Dollar”

GBPUSD has finished the ascending correctional structure towards 1.3080. Today, the pair may fall to break 1.3000 and then continue trading inside the downtrend with the short-term target at 1.2927.

USDCHF, “US Dollar vs Swiss Franc”

USDCHF has broken 0.9688; right now, it is still forming the fifth ascending wave. Possibly, today the pair may test 0.9690 from above and then form one more ascending structure with the short-term target at 0.9703.

USDJPY, “US Dollar vs Japanese Yen”

After completing the descending impulse at 109.80, USDJPY has finished the correction towards 110.03. Today, the pair may fall to break 109.80 and then continue moving downwards with the short-term target at 109.41.

AUDUSD, “Australian Dollar vs US Dollar”

AUDUSD has finished the descending structure towards 0.6832. Possibly, today the pair may resume moving upwards to reach 0.6850 and then start another decline with the target at 0.6811.

USDRUB, “US Dollar vs Russian Ruble”

USDRUB has reached 61.90; right now, it is consolidating at the top. According to the main scenario, the price is expected to resume trading inside the downtrend with the target at 61.37.

USDCAD, “US Dollar vs Canadian Dollar”

USDCAD is forming another ascending structure towards 1.3104. After that, the instrument may start a new correction to reach 1.3077 and then resume trading upwards growth with the target at 1.3118.

XAUUSD, “Gold vs US Dollar”

Gold is forming one more descending structure towards 1545.80. Later, the market may start another correction with the target at 1556.96 and then resume trading downwards to reach 1534.34.

BRENT

Brent is moving downwards. Possibly, the pair may reach 63.97 and then start another growth with the target at 64.90.

BTCUSD, “Bitcoin vs US Dollar”

BTCUSD is still consolidating around 8600.00. The main scenario implies that the pair may grow to break 8850.00 and then continue trading upwards to reach 9240.00. After that, the instrument may start a new decline with the target at 7700.00.

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.

By George Prior

The bullish financial markets are indifferent to the Trump impeachment trial – more concerning is the U.S.-China trade deal and the Coronavirus, says the CEO of one of the world’s largest independent financial services and advisory organizations.

The comments from deVere Group chief executive, Nigel Green, come as U.S. President Donald Trump’s historic impeachment trial got underway on Tuesday in the Senate, with Democrats calling for his removal from office and Republicans determined to have him acquitted.

Mr Green says: “A major geopolitical event such as the impeachment trial of a U.S. President would, typically, send shock waves through financial markets.

“This has not been the case here. The seemingly relentlessly bullish markets have largely shown indifference to the impeachment process.

“This is because investors see the likelihood of Trump being removed from the White House following a Senate trial as almost zero.”

He continues: “However, what is far more likely to cause market jitters in the coming weeks are vulnerable trade relations between the U.S. and China, the world’s two largest economies.

“U.S.-China phase one deal has stopped additional tariffs being imposed on each other’s goods.  However, it does not address serious structural issues of trade between two vastly different economies, one which has enormous state capacity. In addition, the sheer number of goods – amounting to $200bn –that China will need to buy from the U.S. could, ultimately, make the deal unworkable.

“The hard part is negotiations yet to come.”

Mr Green goes on to add: “Markets will also be weighing concerns regarding the spread of the Coronavirus that has afflicted hundreds in China so far – as hundreds of millions prepare to travel during the Lunar New Year period. It’s the largest annual human migration on Earth.

“The World Health Organisation is meeting on Wednesday to discuss the situation.  An upscaling of the threat could depress markets and hit consumer sentiment and spending.”

The deVere CEO concludes: “This bull market isn’t bothered about Trump’s impeachment trial. It will be closely monitoring other major issues, including the U.S.-China trade dispute – the far-reaching impact of which is likely to outlive Trump’s presidency.”

About:

deVere Group is one of the world’s largest independent advisors of specialist global financial solutions to international, local mass affluent, and high-net-worth clients.  It has a network of more than 70 offices across the world, over 80,000 clients and $12bn under adviseme

by JustForex

The EUR/USD currency pair

Technical indicators of the currency pair:

• Prev Open: 1.10939
• Open: 1.10830
• % chg. over the last day: -0.09
• Day’s range: 1.10773 – 1.10869
• 52 wk range: 1.0879 – 1.1572

Since the beginning of this week, trading on the EUR/USD currency pair has been very active. At the same time, there is no defined trend. At the moment, EUR/USD quotes are testing local support of 1.10800. Round level 1.11000 is the nearest resistance. Investors expect additional drivers. The trading instrument can decline further. We recommend opening positions from key levels.

At 17:00 (GMT+2:00) the US will publish data on existing home sales.

The price is fixed below 50 MA and 100 MA, which signals the strength of the sellers.

The MACD histogram has moved to the negative zone, which indicates a bearish sentiment.

The 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: 1.10800, 1.10500
• Resistance levels: 1.11000, 1.11200, 1.11450

If the price fixes below 1.10800, further decline of EUR/USD quotes is expected. Expect movement toward 1.10500-1.10300.

Alternatively, the EUR/USD currency pair may recover to 1.11200-1.11400.

The GBP/USD currency pair

Technical indicators of the currency pair:

• Prev Open: 1.30076
• Open: 1.30450
• % chg. over the last day: +0.27
• Day’s range: 1.30347 – 1.30614
• 52 wk range: 1.1959 – 1.3516

The GBP/USD currency pair has moved up. The trading instrument has updated its local highs. Sterling was supported by a positive report on the UK labor market. At the moment GBP/USD quotes are consolidating. The key range is 1.30350-1.30750. The technical picture signals about further correction of GBP/USD currency pair. Today we recommend you to pay attention to the economic releases from the USA. Positions should be opened from key levels.

The news background on the UK economy is quite calm.

Indicators do not give an accurate signal: 50 MA crossed 100 MA.

The MACD histogram is in the positive zone, which indicates the growth of GBP/USD quotes.

The stochastic oscillator is in the neutral zone, the %K line is above the %D line, which indicates a bullish mood.

Trading recommendations

• Support levels: 1.30350, 1.30000, 1.29600
• Resistance levels: 1.30750, 1.31000, 1.31450

If the price fixes above 1.30750, expect further growth of GBP/USD to 1.31000-1.31400.

Alternatively, the GBP/USD currency pair may decline to 1.30100-1.29800.

The USD/CAD currency pair

Technical indicators of the currency pair:

• Prev Open: 1.30474
• Open: 1.30712
• % chg. over the last day: +0.20
• Day’s range: 1.30712 – 1.30918
• 52 wk range: 1.2949 – 1.3566

USD/CAD quotes have started to recover. The trading instrument has updated its local highs. Currently, the Moon is consolidating in the range of 1.30700-1.30900. Financial markets participants took a waiting position before the Bank of Canada meeting. It is expected that the regulator will leave the main monetary policy parameters at the same level. We also recommend to pay attention to the dynamics of oil prices. Positions should be opened from key levels.

The Economic News Feed for 22.01.2020:

• – Data on inflation in Canada – 15:30 (GMT+2:00);
• – Bank of Canada key interest rate decision – 17:00 (GMT+2:00).

The indicators signal the strength of buyers: the price has fixed above 50 MA and 100 MA.

MACD histogram is in the positive zone, which gives a signal to buy USD/CAD.

The stochastic oscillator is in the neutral zone, the %K line is below the %D line, which indicates a bearish sentiment.

Trading recommendations

• Support levels: 1.30700, 1.30500, 1.30350
• Resistance levels: 1.30900, 1.31000, 1.31200

If the price fixes above 1.30900, expect further growth toward 1.31200-1.31400.

Alternatively, the quotes could descend toward 1.30500-1.30300.

The USD/JPY currency pair

Technical indicators of the currency pair:

• Prev Open: 110.176
• Open: 109.848
• % chg. over the last day: -0.25
• Day’s range: 109.827 – 110.096
• 52 wk range: 104.45 – 113.53

The USD/JPY currency pair has an ambiguous technical picture. The trading instrument is being consolidated. USD/JPY quotes are testing local support and resistance levels: 109.800 and 110.100, respectively. In the nearest future correction of USD/JPY currency pair after the prolonged growth is not excluded. We recommend you to pay attention to the US government bond yield dynamics. Positions should be opened from key levels.

The Economic News Feed for 22.01.2020 is calm.

Indicators do not give an accurate signal: 50 MA crossed 100 MA.

MACD histogram is near the 0 mark.

The stochastic oscillator is located in the neutral zone, the %K line has crossed the %D line. No signals at the moment.

Trading recommendations

• Support levels: 109.800, 109.600, 109.350
• Resistance levels: 110.100, 110.300, 110.600

If the price fixes below 109.800, USD/JPY quotes are expected to correct. Potential movement towards 109.500-109.300.

Alternative is the growth of USD/JPY pair to 110.400-110.600.

by JustForex

by JustForex

The US currency fell slightly against a basket of major currencies. The dollar index (#DX) closed in the red zone (-0.07%). Investors’ attention was focused on the outbreak of coronavirus in China yesterday. However, the Chinese authorities assured the population and the international community that they had taken large-scale measures to prevent viral shedding. This has improved the sentiment of financial market participants. It should be recalled that the outbreak of pneumonia was recorded in China in December, the previously unknown coronavirus became the causative agent.

The winner of yesterday’s trading was the British pound, which rose against the US dollar. The British currency was supported by optimistic data on the UK labor economy. The average salary rose in November by 3.2%, while experts expected growth by 3.1%. Initial jobless claims fell in December and counted to 14.9K instead of the forecasted value of 22.6K. Today, the Bank of Canada will announce its interest rate decision. It is expected that the regulator will keep the key marks of monetary policy at the same level.

The “black gold” prices are declining. Currently, futures for the WTI crude oil are testing the $57.95 mark per barrel.

Market Indicators

Yesterday, there was the bearish sentiment on the US stock market: #SPY (-0.20%), #DIA (-0.49%), #QQQ (-0.04%).

The 10-year US government bonds yield has declined. At the moment, the indicator is at the level of 1.77-1.78%.

• – Core consumer price index in Canada at 15:30 (GMT+2:00);
• – Existing home sales in the US at 17:00 (GMT+2:00);
• – Bank of Canada interest rate decision at 17:00 (GMT+2:00).

by JustForex