InvestMacro

by JustForex

The EUR/USD currency pair

Technical indicators of the currency pair:

• Prev Open: 1.11036
• Open: 1.10804
• % chg. over the last day: -0.22
• Day’s range: 1.10762 – 1.10914
• 52 wk range: 1.0884 – 1.1623

Last week, the USD recovered a part of its losses against world currencies. EUR/USD quotes updated local lows. Beijing and Washington said they were nearing completion of the first phase of the trade agreement. Participants in the financial markets are waiting for the Fed meeting, which is scheduled for October 30. Currently, EUR/USD is consolidating in the range of 1.10700-1.11000. The trading instrument has the potential to further decline. Consider opening positions from the key levels.

The Economic News Feed for 28.10.2019 is calm.

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

The MACD histogram is in the negative zone, but above the signal line, which gives a weak signal to sell EUR/USD.

The Stochastic Oscillator is in the overbought zone, the %K line began to cross the %D line. There are no signals at the moment.

Trading recommendations

• Support levels: 1.10700, 1.10450, 1.10200
• Resistance levels: 1.11000, 1.11250, 1.11500

If the price consolidates below 1.10700, expect a further descend toward 1.10450-1.10300

Alternatively, the quotes could grow toward 1.11250-1.11500.

The GBP/USD currency pair

Technical indicators of the currency pair:

• Prev Open: 1.29140
• Open: 1.28513
• % chg. over the last day: -0.62
• Day’s range: 1.28342 – 1.28581
• 52 wk range: 1.1959 – 1.3385

Yesterday, sales prevailed on the GBP/USD currency pair. The quotes descended by more than 70 points. The GBP remains under pressure due to the uncertainty surrounding Brexit. Keep track of current information on this issue. The trading instrument is currently consolidating. The local support and resistance levels are 1.28000 and 1.28800, respectively. GBP can decline further. Open positions from key levels.

The Economic News Feed for 28.10.2019 is calm.

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

The MACD histogram is in the negative zone, but above the signal line, which gives a weak signal to sell GBP/USD.

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

Trading recommendations

• Support levels: 1.28000, 1.27600, 1.26800
• Resistance levels: 1.28800, 1.29450, 1.30100

If the price consolidates below 1.28000, expect the quotes to drop toward 1.27500-1.27000.

Alternatively, the quotes could grow toward 1.29400-1.29800.

The USD/CAD currency pair

Technical indicators of the currency pair:

• Prev Open: 1.30717
• Open: 1.30696
• % chg. over the last day: -0.07
• Day’s range: 1.30651 – 1.30767
• 52 wk range: 1.2727 – 1.3664

The USD/CAD currency pair has stabilized. CAD is currently consolidating. There is no defined trend. The local support and resistance levels are 1.30550 and 1.30800, respectively. In the near future, technical correction of USD/CAD quotes after a prolonged fall is not ruled out. We recommend paying attention to the dynamics of prices for oil. Open positions from the key levels.

The Economic News Feed for 28.10.2019 is calm.

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

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

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

Trading recommendations

• Support levels: 1.30550, 1.30200, 1.30000
• Resistance levels: 1.30800, 1.31000, 1.31200

If the price consolidates below 1.30550, expect a further descend toward 1.30200-1.30000.

Alternatively, the quotes could grow toward 1.31000-1.31200.

The USD/JPY currency pair

Technical indicators of the currency pair:

• Prev Open: 108.671
• Open: 108.598
• % chg. over the last day: -0.07
• Day’s range: 108.571 – 108.706
• 52 wk range: 104.97 – 114.56

The technical pattern on the USD/JPY currency pair remains ambiguous. The trading instrument is in a lateral movement. USD/JPY quotes test local support and resistance levels at 108.500 and 108.700, respectively. Participants in financial markets expect additional drivers. Pay attention to the yield dynamics on US government bonds. Open positions from key levels.

The Economic News Feed for 28.10.2019 is calm.

The price fixed above 50 MA and 100 MA, which signals the strength of buyers.

The MACD histogram has started to rise, indicating bullish sentiment.

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

Trading recommendations

• Support levels: 108.500, 108.250, 108.000
• Resistance levels: 108.700, 108.900

If the price consolidates below 108.500, expect the quotes to fall toward 108.300-108.100.

Alternatively, the quotes could grow toward 108.900-109.200.

by JustForex

By Dmitriy Gurkovskiy, Chief Analyst at RoboForex

On Monday 28th, 2019, the major currency pair stopped falling and right now is trading at 1.1088.

This week’s key highlight will be the US Federal Reserve Meeting. Investors are very eager to find out whether the regulator is going to make a pause in cutting the rate and loosening its monetary policy or not.

The current consensus forecast implies that during this meeting the regulators cut the rate one more time down to 1.50-1.75%. After that, the Fed is expected to announce that it is going to take a break. Will the regulator continue its soft monetary policy in the future? So far, it’s not clear. Probably, a lot will depend on how the White House assesses the prospects of US-China trade wars and how it positions itself in them.

US President Donald Trump already became more active on this front. Last week, he said that the regulator had to be more active and support the country’s economy by cutting its rates. Trump’s stance is very well known, the question is how strong it is right now.

The USD may fall a little bit at the time of the rate decision, but this news won’t have a major impact on the American currency – the decision is highly anticipated.

In the H4 chart, EUR/USD is trading inside the third descending structure with the predicted target at 1.1050; right now, it is forming a downside continuation pattern and has already broken 1.1105. Today, the pair may test this level from below and then resume falling towards the above-mentioned target. Later, the market may start a new correction to reach 1.1104 and then resume trading inside the downtrend towards 1.1030, which is the closest target of the first descending wave. From the technical point of view, this scenario is confirmed by MACD Oscillator: its signal line has broken 0 and right now continues moving below it, thus indicating a further decline.

As we can see in the H1 chart, EUR/USD has reached another downside target at 1.1070; this structure may be considered as the first half of the third descending wave. Possibly, today the pair may fall towards 1.1060 and then form one more ascending structure to reach 1.1090. Practically, the price is expected to form a downside continuation pattern. Later, the instrument may resume trading downwards with the target at 1.1050. From the technical point of view, this scenario is confirmed by Stochastic Oscillator: its signal line is moving inside the “overbought area” and may start a new decline to break 50. After that, the downtrend may quicken.

Disclaimer

Any predictions contained herein are based on the authors’ particular opinion. This analysis shall not be treated as trading advice. RoboForex shall not be held liable for the results of the trades arising from relying upon trading recommendations and reviews contained herein.

By Admiral Markets

Source: Economic Events 28 October 2019 – Admiral Markets’ Forex Calendar

As expected, the ECB’s key interest rate decision last Thursday didn’t provide any significant volatility in the DAX30 CFD. And, with the economic calendar being thin today, it’s difficult to see significant impulses on either side.

Currently, the German index has stabilised between 12,800 and 12,900 points, but this is on an Hourly time-frame above 12,600 points with a clear bullish tendency.

In fact, given the latest news around the massive liquidity injections from the FED, conducting nearly 65 billion USD in overnight repurchase agreements and another 35 billion USD in repo operation last Tuesday alone, it’s difficult to see Equities come under serious pressure in the near-term, especially with the FED rate decision taking place next Wednesday.

The reason for that: since 1980 research shows a clear bullish tendency “Pre-FOMC”, not only in US-equities, but also in the DAX30 CFD. That’s especially true with a flattening US-yield curve and volatility being solid. Here, on average, nearly 80% of all profits in the S&P 500 were made within eight days leading up to the interest rate decision.

With that in mind, and the DAX30 CFD trading above 12,800 points, another push up to last week’s and current yearly highs around 12,920 has a higher probability than a push lower and test of the region around 12,600 points:

Source: Admiral Markets MT5 with MT5SE Add-on DAX30 CFD Hourly chart (between 07 October 2019 to 25 October 2019). Accessed: 25 October 2019 at 10:00 PM GMT

Source: Admiral Markets MT5 with MT5SE Add-on DAX30 CFD Daily chart (between 19 July 2018 to 25 October 2019). Accessed: 25 October 2019 at 10:00 PM GMT

Please note: Past performance is not a reliable indicator of future results, or future performance.

In 2014, the value of the DAX30 CFD increased by 2.65%, in 2015, it increased by 9.56%, in 2016 it increased by 6.87%, in 2017 it increased by 12.51%, in 2018 it fell by 18.26%, meaning that after five years, it was up by 10.5%.

Disclaimer: The given data provides additional information regarding all analysis, estimates, prognosis, forecasts or other similar assessments or information (hereinafter “Analysis”) published on the website of Admiral Markets. Before making any investment decisions please pay close attention to the following:

1. This is a marketing communication. The analysis is published for informative purposes only and are in no way to be construed as investment advice or recommendation. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and that it is not subject to any prohibition on dealing ahead of the dissemination of investment research.
2. Any investment decision is made by each client alone whereas Admiral Markets shall not be responsible for any loss or damage arising from any such decision, whether or not based on the Analysis.
3. Each of the Analysis is prepared by an independent analyst (Jens Klatt, Professional Trader and Analyst, hereinafter “Author”) based on the Author’s personal estimations.
4. To ensure that the interests of the clients would be protected and objectivity of the Analysis would not be damaged Admiral Markets has established relevant internal procedures for prevention and management of conflicts of interest.
5. Whilst every reasonable effort is taken to ensure that all sources of the Analysis are reliable and that all information is presented, as much as possible, in an understandable, timely, precise and complete manner, Admiral Markets does not guarantee the accuracy or completeness of any information contained within the Analysis. The presented figures refer that refer to any past performance is not a reliable indicator of future results.
6. The contents of the Analysis should not be construed as an express or implied promise, guarantee or implication by Admiral Markets that the client shall profit from the strategies therein or that losses in connection therewith may or shall be limited.
7. Any kind of previous or modeled performance of financial instruments indicated within the Publication should not be construed as an express or implied promise, guarantee or implication by Admiral Markets for any future performance. The value of the financial instrument may both increase and decrease and the preservation of the asset value is not guaranteed.
8. The projections included in the Analysis may be subject to additional fees, taxes or other charges, depending on the subject of the Publication. The price list applicable to the services provided by Admiral Markets is publicly available from the website of Admiral Markets.
9. Leveraged products (including contracts for difference) are speculative in nature and may result in losses or profit. Before you start trading, you should make sure that you understand all the risks.

By Admiral Markets

There are several critical and challenging factors in relation to trading that can severely harm a trader’s potential trading success and prosperity. And if you fail to address the challenges, or ignore the impact these factors can have, the effects can be disastrous.

Overtrading, trading without a plan, being inexperienced, only having a thin grasp of market mechanisms, not understanding how fundamentals move our FX markets, these are just some of the barriers we can impose on ourselves, directly limiting our potential. The subject of trading from an under capitalised account is never discussed enough in trading circles, despite this crucial factor being a considerable block to progression.

The FX market, whether traded on a part time basis, or as a full time self employed activity, should be approached with professionalism. That professional attitude should be extended to trading with an account that allows the trader the freedom to function effectively in the market place. Whilst you know that you’re betting on markets, you shouldn’t adopt the various bad practices, associated with other betting industries.

You shouldn’t take punts, instead you risk a proportion of your account size per trade, after analysing your markets, using both fundamental and technical analysis. You don’t bet on hunches and you don’t suddenly decide to take a punt on the movement of a currency pair because you have a few spare dollars or Euros. Instead, as a professional trader who has self respect and who respects their industry, you plan everything in advance. Because you agree with the truism that; “if you fail to plan, you plan to fail”.

One simple, effective method to establish if the account size you’re trading is sufficient for your ambitions, is to firstly decide what targets you have for your trading. Are you looking to supplement your full time income, or are you looking to trade full time? The majority of traders are part time, generally swing or day traders, looking to supplement their income. Many have an ambition to reach a point of success and profitability, which will eventually allow them to become full time traders.

Let’s base our calculations on the premise that you’re a part time trader, a swing or day trader, who will trade EUR/USD exclusively. You have €5,000 to trade with, you now need to establish if it’s enough capitalization to trade effectively. And if so what parameters should you attach to your trading, in order to ensure you’re not trading from an under capitalised position? And what targets could you realistically attach to your trading, to achieve your ambitions? We’ve selected a figure of €5,000, as it’s the upper band of the €3-€5K average deposit/account size figure, which many brokers refer to as the deposit their clients hold with them.

As a trader only speculating on EUR/USD exclusively, you’ll enjoy some of the tightest spreads available, whilst the slippage and poor fills you experience should be significantly reduced, due to the increased liquidity available for the most traded currency pair globally 24-7. You can trade this security, through an ECN/STP trading model, safe in the knowledge that the conditions you’re trading in are as good as it gets. You have to now decide what risk to take on each trade, in relation to your account size.

If you’re prepared to risk 2% account size per trade as a swing trader, then you’ll be risking €100 per trade. For swing traders this is generally considered to be an acceptable level of risk. If you’re a day trader, taking several trades on EUR/USD per day, you may prefer to risk 0.5% account size per trade, therefore, you’ll be risking €25 per trade. The risk per trade has now been established, what returns should you aim for?

The account growth you aim for is often a contentious subject in the retail trading world, with many market commentators in the mainstream financial media, neglecting to understand the key difference between investing and trading. You’ll often see criticism that trading returns are way too optimistic, when traders report they’re aiming for gains of perhaps 50-100% per year. However, for successful traders such a return is neither delusional, or out of reach.

Many article writers will compare investment returns to trading returns when the two phenomena are mutually exclusive. Aiming for 1-2% return per week, is an entirely realistic proposition for traders who put their funds to work. Therefore, if you consider your original $5,000 account size and you’re aiming for 2% annual growth as a swing or day trader, you’ll be looking to double your account size to €10,000. If you dial down your ambitions and your risk per trade, you may instead aim for 50% account growth per year, which is roughly 1% gain per week.

Such targets are realistic and achievable, for proficient and disciplined traders, operating either full, or part time. The examples outlined illustrate that your capitalization should be directly related to your risk per trade and your target growth. The illustrations also provide evidence that any level of capitalization (in theory) allows you to trade effectively, if your broker allows you to take positions risking only, for example, the €25 per trade highlighted in the article.

However, the likelihood of achieving returns of any size will be enhanced if you stick to the parameters outlined, details that you’ll have embedded into your comprehensive trading plan, a plan which you’re continually perfecting, based around the trading discipline you’ve also developed.

Content Source: Mr. Asim from Forex Trading Dubai has contributed in this article.

Article By RoboForex.com

EURUSD, “Euro vs US Dollar”

EURUSD continues forming the third descending impulse. Possibly, today the pair may break 1.1080 and then continue trading inside the downtrend with the predicted target at 1.1057.

GBPUSD, “Great Britain Pound vs US Dollar”

GBPUSD has finished the third descending impulse towards 1.2828. After that, the instrument may continue trading downwards with the predicted target at 1.2770.

USDCHF, “US Dollar vs Swiss Franc”

USDCHF continues moving upwards. Today, the pair may fall to reach 0.9920 and then form one more ascending structure with the predicted target at 0.9940.

USDJPY, “US Dollar vs Japanese Yen”

USDJPY is still consolidating around 108.44. Possibly, today the pair may form a new descending structure to reach 108.40. Later, the market may break this level and then continue trading inside the downtrend with the target at 108.06.

AUDUSD, “Australian Dollar vs US Dollar”

After reaching the short-term downside target at 0.6815, AUDUSD is consolidating around it. If later the price breaks this range to the upside at 0.6823, the market may start a new correction towards 0.6835 and then form a new descending structure with the target at 0.6788; if to the downside at 0.6809 – continue trading inside the downtrend to reach the above-mentioned target.

USDRUB, “US Dollar vs Russian Ruble”

USDRUB has completed the ascending wave at 64.04. Today, the pair may fall to reach 63.80, thus forming a new consolidation range between these two levels. If later the price breaks this range to the upside, the market may continue the correction towards 64.64; if to the downside at 1.1044 – resume trading inside the downtrend with the target at 62.93.

USDCAD, “US Dollar vs Canadian Dollar”

USDCAD is consolidating around 1.3073 without any particular direction. Possibly, the pair may fall to reach 1.3024 and then form one more ascending structure with the target at 1.3131.

XAUUSD, “Gold vs US Dollar”

Gold continues the correction; right now, it is consolidating around 1490.19. Possibly, today the pair may fall to reach 1490.19 and then start a new growth towards 1505.85. After that, the instrument may continue trading inside the downtrend with the predicted target at 1451.65.

BRENT

After reaching the predicted upside at target 61.35 and forming the consolidation range below it, Brent has broken the range to the upside to reach 61.87 and then retuned to 60.35. If later the price breaks this range to the upside, the market may continue trading inside the uptrend with the target at 63.07; if to the downside – start another correction to reach 60.40 and then resume trading upwards.

BTCUSD, “Bitcoin vs US Dollar”

BTCUSD is still consolidating around 7400.00. Possibly, the pair may form a new descending structure to reach 7200.00 and then start another growth with the target at 8200.00.

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.

Article By RoboForex.com

BTCUSD, “Bitcoin vs US Dollar”

As we can see in the daily chart, the descending tendency continues. After completing the short-term correction, BTCUSD started a new descending impulse, which has almost reached 61.8% fibo at 7215.00. Later, the price may continue trading towards 76.0% fibo at 5700.00. However, the key mid-term target is the long-term low at 3121.90. The previous impulse has moved the resistance, which is currently at 50.0% fibo at 8500.00.

In the H1 chart, the pair is correcting sideways; right now, it is moving between the local low at 7302.00 and 23.6% fibo at 7550.00. In the future, the instrument may yet continue the correction towards 38.2% and 50.0% fibo at 7700.00 and 7825.00 respectively, but it’s highly unlikely.

ETHUSD, “Ethereum vs. US Dollar”

As we can see in the H4 chart, after finishing the correction, ETHUSD started a new decline, which has almost reached the low at 152.28. If the price breaks the low, the pair may continue trading towards 76.0% fibo at 148.60 and then the post-correctional extension area between 138.2% and 161.8% fibo at 135.30 and 124.40 respectively.

In the H1 chart, the instrument is correcting upwards and has already reached 38.2% fibo. The next upside target is 50.0% fibo at 165.56. the support is the local low at 153.00.

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 JustForex

Yesterday, the US dollar strengthened against a basket of currency majors. The dollar index (#DX) closed yesterday’s trading session in the green zone (+0.17%). Investors are focused on statements by US President Donald Trump. Trump criticized the Fed again for too high interest rate. “Take a look around the World at our competitors. Germany and others are actually GETTING PAID to borrow money. Fed was way too fast to raise, and way too slow to cut!” Trump tweeted.

Mario Draghi held his last meeting as head of the ECB yesterday. Finally, he reminded investors of gloomy economic prospects, and also said that low interest rates would remain for a long time. On November 1, Christine Lagarde will become a head of ECB instead of Mario Draghi.

The British pound is still under pressure due to the uncertainty concerning Brexit. Today, EU leaders will gather to decide whether to extend Britain’s exit from the bloc or not. It is known that most countries support the initiative to postpone Brexit for three months, except France. Meanwhile, Leader of the House of Commons of United Kingdom, Jacob Rees-Mogg, said that the government did not want to postpone Brexit and intended to do so on October 31, as planned.

The “black gold” prices are consolidating. At the moment, futures for the WTI crude oil are testing the $56.15 per barrel mark. At 20:00 (GMT+3:00) US Baker Hughes rig count will be published.

Market Indicators

Yesterday, there was a variety of trends in the US stock markets: #SPY (+0.16%), #DIA (-0.10%), #QQQ (+0.97%).

The 10-year US government bonds yield is still at 1.75-1.76%.

• – German IFO business climate index at 11:10 (GMT+3:00);
• – Michigan consumer sentiment and expectations at 17:00 (GMT+3:00).

by JustForex

By George Prior

The Brexit-pummelled pound – the worst-performing major currency of the G10 – is going to fall further following the Opposition leader’s instruction to his party to abstain on Monday’s general election vote.

The bleak warning is from Nigel Green, CEO and founder of deVere Group, one of the world’s largest independent financial advisory organizations.

It comes as the leader of the opposition Labour Party has told his party to come together to block Monday’s parliamentary vote on a general election on December 12, which was called for by Prime Minister Boris Johnson on Thursday.

If parliament does agree to the election, in return, Mr Johnson will afford them more time to scrutinize the Brexit Bill which was given the green-light by the House of Commons on Tuesday – but the timetable for its passing was not.

The UK’s Fixed Term Parliaments Act, (FTPA) requires that two-thirds of all 650 lawmakers must support holding a snap election. This is the third time Mr Johnson has tried to have a general election since taking office.

Mr Green warns: “Whether it is Boris Johnson’s preferred date of December 12or a few weeks later, a general election is looming on the horizon for the UK.

“An election in itself will create further woes for the already Brexit-battered British pound as they always fuel uncertainty.

“We immediately saw this in action on Thursday when sterling – the worst-performing major currency of the G10 – fell from its recent multi-month highs and took a turn lower following the announcement Boris Johnson will seek a general election before Christmas.

“Whilst the beleaguered pound does have much of the Brexit shenanigans already priced-in, Jeremy Corbyn’s decision to instruct Labour MPs to abstain or vote against Monday’s general election vote will ramp up the uncertainty further – thereby extending the pound’s losses.

“Should Labour adhere to Mr Corbyn’s instructions, the PM would then not have the numbers – as abstentions count against under the FTPA – and no election will take place on December 12. This begs the question: when will the election take place?”

He continues: “The significant drop in the value of the pound since the referendum has contributed to reducing people’s purchasing power and a drop in UK living standards. Weaker sterling means imports are more expensive, with rising prices being passed on to consumers.

“The fall in the pound is good for exports some claim, but it must be remembered that around 50 per cent of UK exports rely on imported components. These will become more expensive as the pound falls in value.

“A low pound is, of course, bad news for British holidaymakers, travellers abroad and the millions of British expats – with holidays and living/retirement overseas more expensive.”

Mr Green goes on to add: “Furthermore, the Brexit deadlock continues which is causing the UK economy to haemorrhage investment, confidence and opportunity.

“Job-generating, tax-paying, wealth-creating businesses need certainty.”

The deVere CEO concludes: “It’s an abuse of the democratic system for the opposition to not allow a general election to take place to break the deadlock.

“Many voters will believe that the reason why Jeremy Corbyn is pursuing this path is that despite the most chaotic political turmoil this country has faced in generations led by the ruling Conservatives, he is still unlikely to win a general election.”

“Mr Corbyn and others need to stop playing games.  The pound and the UK economy are losing their edge in a competitive global economy with the grinding Brexit politicking.”

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 advisement

by JustForex

The EUR/USD currency pair

Technical indicators of the currency pair:

• Prev Open: 1.11303
• Open: 1.11036
• % chg. over the last day: -0.25
• Day’s range: 1.11008 – 1.11094
• 52 wk range: 1.0884 – 1.1623

The EUR/USD currency pair went down after a long growth. The trading tool has updated local lows. The ECB, as expected, kept the basic parameters of monetary policy at the same level. A number of weak business activity indicators in Germany and the EU pushed the EUR down. At the moment, EUR/USD quotes are consolidating in the range of 1.10850-1.11150. The single currency has the potential for further correction. Open positions from the key levels.

At 11:00 (GMT + 3: 00), the German IFO business climate index will be published.

Indicators signal the strength 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.

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

Trading recommendations

• Support levels: 1.10850, 1.10550, 1.10200
• Resistance levels: 1.11150, 1.11450, 1.11750

If the price consolidates below the level of 1.10850, expect a further fall to 1.10600-1.10300.

Alternatively the quotes could grow to 1.11400-1.11600.

The GBP/USD currency pair

Technical indicators of the currency pair:

• Prev Open: 1.29140
• Open: 1.28513
• % chg. over the last day: -0.62
• Day’s range: 1.28342 – 1.28581
• 52 wk range: 1.1959 – 1.3385

Yesterday, sales prevailed on the GBP/USD currency pair. The fall in quotes exceeded 70 points. The pound is still under pressure due to the uncertainty surrounding Brexit. We recommend that you keep track of current information on this issue. The trading instrument is currently consolidating. The local support and resistance levels are: 1.28000 and 1.28800, respectively. Sterling has the potential to further decline. Open positions from the key levels.

The Economic News Feed is calm.

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

The MACD histogram is in the negative zone but above the signal line, which gives a weak signal to sell GBP/USD.

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

Trading recommendations

• Support levels: 1.28000, 1.27600, 1.26800
• Resistance levels: 1.28800, 1.29450, 1.30100

If the price consolidates below 1.28000, expect a drop toward 1.27500-1.27000.

Alternatively, the quotes could grow toward 1.29400-1.29800.

Registration

The USD/CAD currency pair

Technical indicators of the currency pair:

• Prev Open: 1.30717
• Open: 1.30696
• % chg. over the last day: -0.07
• Day’s range: 1.30651 – 1.30767
• 52 wk range: 1.2727 – 1.3664

The USD/CAD currency pair has stabilized. CAD is currently consolidating. There is no defined trend. The local support and resistance levels are 1.30550 and 1.30800, respectively. In the near future, the technical correction of USD/CAD quotes after a prolonged fall is not ruled out. We recommend that you pay attention to the dynamics of the prices for oil. Open positions from the key levels.

The Economic News Feed for 25.10.2019:

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

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

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

Trading recommendations

• Support levels: 1.30550, 1.30200, 1.30000
• Resistance levels: 1.30800, 1.31000, 1.31200

If the price consolidates below 1.30550, expect a drop toward 1.30200-1.30000.

Alternatively, the quotes could correct toward 1.31000-1.31200.

The USD/JPY currency pair

Technical indicators of the currency pair:

• Prev Open: 108.671
• Open: 108.598
• % chg. over the last day: -0.07
• Day’s range: 108.571 – 108.706
• 52 wk range: 104.97 – 114.56

The technical picture on the USD/JPY currency pair is still ambiguous. The trading instrument is in lateral movement. USD/JPY quotes test local support and resistance levels 108.500 and 108.700. Participants in financial markets expect additional drivers. We recommend that you pay attention to the dynamics of yield on US government bonds. Open positions from the key levels.

The Economic News Feed for 25.10.2019:

The price fixed above 50 MA and 100 MA, which signals the strength of buyers.

The MACD histogram has started to rise, indicating a bullish sentiment.

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

Trading recommendations

• Support levels: 108.500, 108.250, 108.000
• Resistance levels: 108.700, 108.900

If the price consolidates below 108.500, USD/JPY is expected to fall to 108.300-108.100.

Alternatively, the quotes could grow toward 108.900-109.200.

by JustForex

By Admiral Markets

Source: Economic Events October 25, 2019 – Admiral Markets’ Forex Calendar

While the economic calendar is quite thin this Friday, and we shouldn’t expect the final release of the Michigan Consumer Sentiment to induce higher volatility, we still want to have a look at the USD/JPY – a currency pair which will be of some interest in coming trading week.

The USD/JPY will be principally driven by the Fed rate decision on Wednesday, followed by the BoJ rate decision on Thursday.

While a Fed rate cut of 25 basis points is nearly entirely priced in (the Fed Watch Tool currently shows a likelihood of over 90%), what’s of higher interest is the rhetoric in reference to a possible rate decision in December, and the announced “Non-QE”-QE program.

Here, the current plan is to buy US Treasuries for the next 8.5 months at a pace of 60 billion USD per month, and any hints during Wednesday’s meeting that the Fes could consider extending that program if no improvement to the liquidity issue in the repo market is seen, the US dollar could see a new wave of heavier selling, resulting from another push downwards in 10-year US yields, going for another test of the region around the all-time lows at 1.36%.

In addition to the dovish Fed rhetoric, it will be interesting to see what the BoJ delivers, particularly after the recent turbulences in Japanese bond markets where 10-year JGB yields spiked on October 2 after a poorly-received auction. This was a likely sign that traders are finally paying heed to Kuroda’s recent comments, warning against excessive falls in super-long yields, which left us with expectations that the BoJ is to deliver a more dovish stance than currently expected.

If this expectation around the BoJ doesn’t come to fruition and the Fed delivers dovish rhetoric, and the US economic releases continue to disappoint, a sustainable break above 109.00 seems unlikely.

With this bigger picture in mind, we’d carefully watch any for any better-than-expected news releases today at 2pm GMT. A stint higher is likely a potential fake out, and any signs of bullish exhaustion could be interesting for Short-engagements from a risk-reward perspective, targeting on another attempt to break back below 106.80/107.00:

Source: Admiral Markets MT5 with MT5-SE Add-on USD,JPY Daily chart (between September 7, 2018, to October 24, 2019). Accessed: October 24, 2019, at 10:00pm GMT – Please note: Past performance is not a reliable indicator of future results, or future performance.

In 2014, the value of the USD/JPY increased by 13.7%, in 2015, it increased by 0.5%, in 2016, it fell by 2.8%, in 2017, it fell by 3.6%, in 2018, it fell by 2.7%, meaning that after five years, it was up by 4.1%.

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