The US dollar is declining against a basket of major currencies after news from the United States. The US President, Donald Trump, refuses to sign a short-term funding bill because it does not provide funds for the construction of the wall between the US and Mexico. Such a decision may suspend the work of the government. The dollar index (#DX) updated monthly lows and closed yesterday in the negative zone (-0.78%).
The euro strengthened against the US dollar as it became known that an agreement on the Italian budget was still officially concluded. Economic data from the UK and the US was also published yesterday. The volume of retail sales in the UK rose by 1.4% in November and was better than the forecasted value of 0.3%. The Bank of England left the interest rate unchanged at 0.75%, as experts expected. Philadelphia Fed manufacturing index in the United States fell in December to 9.4 instead of 15.6.
The “black gold” prices are moderately recovering after the collapse the day before. At the moment, futures for the WTI crude oil are testing the mark of $46.40 per barrel.
Market Indicators
Yesterday, aggressive sales were observed in the US stock market: #SPY (-1.63%), #DIA (-1.94%), #QQQ (-1.45%).
The 10-year US government bonds yield has continued to decline. Currently, the indicator is at the level of 2.79-2.80%.
The news feed on 21.12.2018:
– UK GDP data at 11:30 (GMT+2:00); – Core durable goods orders in the United States at 15:30 (GMT+2:00); – Report on the US GDP at 15:30 (GMT+2:00); – GDP data in Canada at 15:30 (GMT+2:00).
On Thursday the 20th of December, trading on the pair closed up. High volatility persisted until trading closed. In the first half of the European session, the euro rose against the dollar to 1.1486 amid the overall weakening of the US dollar. This pressure on the US dollar was exerted by expectations that the Fed would slow down the pace of rate hikes.
During the US session the dollar index began a correction. Sellers almost completely blocked the daily gains, but failed to secure them, causing the euro to fall to 1.1402, then rise to 1.1485.
Day’s news (GMT+3):
10:45 France: consumer spending (Nov), GDP (Q3).
12:30 UK: current account (Q3), total business investment (Q3), GDP (Q3), public sector net borrowing (Nov).
15:00 UK: BoE quarterly bulletin (Q4).
16:30 Canada: GDP (Oct), retail sales (Oct).
16:30 US: durable goods orders (Nov), GDP (Q3),
18:00 US: personal income (Nov), personal spending (Nov).
18:00 Canada: BoC business outlook survey.
18:00 US: Michigan consumer sentiment (Dec).
18:00 Eurozone: consumer confidence (Dec).
21:00 US: Baker Hughes total rig count.
Fig 1. MA channel on the EURUSD hourly chart.
Current situation:
I removed the resistance in the area around 1.1440, which the price passed several times. The Lb balance line on the hourly timeframe continues to be a good support for buyers. At the time of writing, the euro is trading at 1.1461. According to the forecast, I am considering a recovery to 1.1500.
With the opening of the US session, we should pay close attention to US bond yields. If there is no struggle on the part of sellers around the level of 1.15, then we should prepare for a march to 1.1550. The road is open along the U3 line, and the 112th degree is passing along 1.1550 through 1.1542.
If the recovery is sluggish, then we should not rule out a return to the Lb balance line – 1.1428/30. Buyers have about 5 hours to get to 1.1488.
Limassol, Cyprus — RoboMarkets, a multi-asset broker that provides online trading services to professional and retail clients from European countries, has announced addition of more than 700 new CFDs on stocks available for trading through R Trader platform. Along with introduction of new stocks, R Trader now offers several more features.
RoboMarkets is very active in improving its proprietary trading solutions and expanding the list of available trading instruments. Starting today, RoboMarkets clients have an opportunity to trade more than 700 new CFDs on stocks of the companies at NYSE and NASDAQ stock exchanges. The most well-known assets are Dropbox Inc., IQ Iqiyi Inc., Opera Limited, Spotify Technology S.A., Roku Inc., as well as First Trust Nasdaq Artificial Intelligence and Robotics ETF and Vanguard Total World Bond ETF.
Apart from adding new instruments to R Trader, the Company has improved the functionality that helps to download trading statements in CSV and PDF formats and import the list of the instruments from TXT files into Watchlists.
“In its operations, the Company is always focused on clients. In this particular case, we were tracking search queries inside the system and, as a result, managed to make the list of trading assets that were the most popular among traders and might be interesting for trading. Everything we did was just adding them to the platform.” – Kiryl Kirychenka, Head of R Trader Project.
About R Trader
R Trader is a result of cooperation between RoboMarkets and UMSTEL, a fintech company that created a “cloud” multi-asset trading platform. R Trader platform provides access to trade 8 types of assets, which include more than 11,000 trading instruments. The platform is very convenient and easy to use and guarantees the maximum transparency of all trading operations, while its functionality matches the leading desktop platforms.
About RoboMarkets
RoboMarkets is an investment company with the CySEC license No. 191/13. RoboMarkets offers investment services in many European countries by providing traders, who work on financial market, with access to its proprietary trading platforms.
As we can see in the H4 chart, EURUSD is testing the resistance level and forming Engulfing, Shooting Star, and Doji reversal patterns. Judging by the previous movements, at the moment it may be assumed that after testing the level the instrument may be corrected and then continue moving to the upside.
USDJPY, “US Dollar vs. Japanese Yen”
As we can see in the H4 chart, USDJPY has broken the resistance level and formed several Engulfing, Hammer, and Doji reversal patterns. Judging by the previous movements, at the moment it may be assumed that after completing the pullback the instrument may continue its ascending tendency.
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.
AUDUSD is trading at 0.7090; the instrument is moving below Ichimoku Cloud, thus indicating a descending tendency. The markets could indicate that the price may test Tenkan-Sen and Kijun-Sen at 0.7125 and then resume moving downwards to reach 0.7030. Another signal to confirm further descending movement is the price’s rebounding from the channel’s upside border. However, the scenario that Implies further decline may be cancelled if the price breaks the upside border of the cloud and fixes above 0.7150. In this case, the pair may continue growing towards 0.7275.
NZDUSD, “New Zealand Dollar vs US Dollar”
NZDUSD is trading at 0.6727; the instrument is moving below Ichimoku Cloud, thus indicating a descending tendency. The markets could indicate that the price may test Tenkan-Sen and Kijun-Sen at 0.6760 and then resume moving downwards to reach 0.6665. Another signal to confirm further descending movement is the price’s rebounding from the resistance level. However, the scenario that Implies further decline may be cancelled if the price breaks the upside border of the cloud and fixes above 0.6855. In this case, the pair may continue growing towards 0.6965.
USDCAD, “US Dollar vs Canadian Dollar”
USDCAD is trading at 1.3497; the instrument is moving above Ichimoku Cloud, thus indicating an ascending tendency. The markets could indicate that the price may test the upside border of the cloud at 1.3455 and then resume moving upwards to reach 1.3565. Another signal to confirm further ascending movement is the price’s rebounding from the channel’s downside border. However, the scenario that implies further growth may be cancelled if the price breaks the downside border of the cloud and fixes below 1.3415. In this case, the pair may continue falling towards 1.3325.
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 EUR/USD had a variety of trends yesterday, before the Federal Reserve meeting. As expected, the regulator increased the key interest range by 25 basis points up to 2.50%. However, the investors were disappointed to hear the key interest rate will be increased only two times in 2019 instead of three times. You should open positions from the key support and resistance levels of 1.14000 and 1.4400.
The Economic News Feed for 20.12.2018:
– PMI index by the Philadelphia Federal Reserve (US) – 15:30 (GMT+2:00).
Indicators point toward the power of the buyers: the price fixed above 50 MA and 200 MA.
The MACD histogram is in the positive zone, the price fixed above 50 MA and 200 MA.
The Stochastic Oscillator is in the overbought zone, the %K line crosses the %D line. There are no signals at the moment.
Trading recommendations
Support levels: 1.14000, 1.13600, 1.13250
Resistance levels: 1.14400, 1.14750
If the price fixes above 1.14400, expec the EUR/USD to grow toward 1.14750-1.15000.
Alternatively the quotes can descend toward 1.13600-1.13250.
The GBP/USD currency pair
Technical indicators of the currency pair:
Prev Open: 1.26300
Open: 1.26079
% chg. over the last day: -0.17
Day’s range: 1.26585 – 1.26657
52 wk range: 1.2477 – 1.4378
GBP/USD is showing a variety of trends. The investors are waiting for the Bank of England meeting, where the regulator is expected to keep the current interest rate at 0.75%. You should open positions from the key levels of 1.26300 and 1.26800.
– Bank of England Meeting on Key Interest Rate (UK) – 14:00 (GMT+2:00);
The indicators do not provide precise signals, the price is testing 50 MA.
The MACD histogram is close to 0, there are no signals at the moment.
The Stochastic Oscillator is in the overbought zone, the %K line crosses the %D line. There are no signals at the moment.
Trading recommendations
Support levels: 1.26300, 1.25800, 1.25300
Resistance levels: 1.26800, 1.27300, 1.27700
If the price fixes below 1.26800, consider buying GBP/USD. The movement will tend toward 1.27300-1.27700.
Alternatively the quotes can descend toward the round 1.26000.
The USD/CAD currency pair
Technical indicators of the currency pair:
Prev Open: 1.34624
Open: 1.34842
% chg. over the last day: +0.08
Day’s range: 1.34662 – 1.35043
52 wk range: 1.2248 – 1.3506
The USD/CAD currency pair has a variety of trends. The trading instrument is testing the annual maximums. The financial market participants are waiting for the Federal Reserve meeting. You should open positions from the key support and resistance levels of 1.34600 and 1.35000. A technical correction after a long rally is highly possible.
You should keep an eye on the US economic reports.
The price fixed above 50 MA and 200 MA which points toward the power of the buyers.
The MACD histogram is in the positive zone but below the signal line which gives a weak signal toward purchasing USD/CAD.
The Stochastic Oscillator reached the oversold zone, the %K line has crossed the %D line. There are no signals at the moment.
Trading recommendations
Support levels: 1.34600, 1.34150, 1.33900
Resistance levels: 1.35000, 1.35500
If the price fixes above the round 1.35000 expect further growth of the USD/CAD quotes. The movement will tend toward 1.35400-1.35600.
Alternatively the price can fix below 1.34600 and you should look for market entry points to open short positions. The movement will tend toward 1.34200-1.34000.
The USD/JPY currency pair
Technical indicators of the currency pair:
Prev Open: 112.497
Open: 112.406
% chg. over the last day: -0.11
Day’s range: 111.742 – 112.604
52 wk range: 104.56 – 114.56
The USD/JPY currency pair keeps showing a negative trend. The JPY strengthened against the USD by more than 150 points. The USD/JPY quotes are testing the local support at 111.750 with 112.250 being a mirror support. The trading instrument can descend further.
The Bank of Japan, as was expected, kept the fundamental parameters of the monetary policy. The Central Bank also informs that the country`s economy is showing a stable growth.
The indicators point toward the power of the sellers, the price fixed below 50 MA and 200 MA.
The MACD histogram is in the negative zone and below the signal line, which gives a strong signal toward selling USD/JPY.
The Stochastic Oscillator is in the oversold zone, the %K line crosses the %D line. There are no signals at the moment.
Trading recommendations
Support levels: 111.750, 111.400
Resistance levels: 112.100, 112.250, 112.600
If the price fixes below the 111.750 support level, expect further descend of the USD/JPY quotes. The movement will tend toward 111.400-11.200.
Alternatively the quotes can recover 112.250-112.400.
On Wednesday the 19th of December, trading on the euro closed slightly down. In European trading, the euro rose to 1.1439. After the FOMC’s meeting, the euro fell against the dollar by 75 pips to 1.1364, stopping at the balance line.
As expected by the majority of market participants, the interest rate was raised by 25 base points. The Federal fund rate’s range is 2.25% – 2.50%. The rate hike was taken into consideration in the prices, as well as the Fed’s lowered expectations on the number of rate hikes planned for 2019, which were changed from three to two.
The balance line and region around the 67th degree were well supported. During the European session, the price recovered to 1.1425. Buyers passed through 45th degree and a setup is visible, pointing to a rise to the resistance of 1.1437.
Given the emerging price model, I will assume that a triangular formation will take shape. Before the end of the day I expect the euro to moderately weaken, reaching the balance line at 1.1386.
At the moment, based on the current growth, buyers are showing that they are ready to move towards 1.15 and higher. To do this, they need to get close to the resistance where they will remain for around 20 hours.
The US dollar fell against a basket of major currencies after the Fed meeting. Yesterday, the regulator raised the interest rate at 25 basis points to 2.50%, as experts expected. However, investors were disappointed by the news that the planned number of rate increases in 2019 was reduced from three to two. Also, Fed Chairman, Jerome Powell, noted that the volatility of the financial market increased, and inflation at the end of the year was more restrained than expected. Therefore, in his opinion, reducing the number of rate increases will support the economy. The dollar index (#DX) closed in the negative zone (-0.11%) yesterday.
Yesterday, economic data from the UK, Canada, the US and New Zealand was also published. Thus, the consumer price index in the UK counted to 2.3% in November, as the experts forecasted. The core consumer price index in Canada fell in November to -0.2%. Existing home sales in the US rose to 5.32M in November and were better than the forecasted 5.20M. New Zealand’s GDP counted to 0.3% in the third quarter instead of 0.6%. Today we recommend paying attention to the news feed of the UK and the US.
The “black gold” prices have risen after the publication of the report on crude oil inventories in the United States. At the moment, futures for the WTI crude oil are testing the mark of $47.10 a barrel.
Market Indicators
Yesterday, aggressive sales were observed in the US stock market: #SPY (-1.50%), #DIA (-1.66%), #QQQ (-2.46%).
The 10-year US government bonds yield has continued to decline. Currently, the indicator is at the level of 2.75-2.77%.
The news feed on 20.12.2018:
– The volume of retail sales in the UK at 11:30 (GMT+2:00); – Bank of England interest rate decision at 14:00 (GMT+2:00); – Philadelphia Fed manufacturing index in the United States at 15:30 (GMT+2:00).
Many technological strides have been made over the last couple of decades. Advancement in technology is becoming faster and faster as each year passes by and many technologies to improve work efficiency, communication, and even financial services are being discovered and used every day. Technology has made the world smaller in a good way; we are now able to talk to family and friends from across the globe without having to spend too much money or wait too long for a reply. International financial transactions have also become more straightforward and hassle-free.
1. Anonymity. – Bitcoins can be used to buy merchandise anonymously. In this time and age where privacy has become a critical factor to be considered when you’re connected to the Internet, being able to transact anonymously presents a very inviting option for many people.
2. Easy international transactions. – Because bitcoin is not tied to any country or is subjected to regulations, global payments and other financial transactions are easier, and a lot more affordable than traditional international banking systems where fees still need to be paid and transactions may take time to be completed.
3. Cost. – Small businesses may prefer bitcoins since there is no credit card fee that they would have to pay the bank. Online stores from across the world could also gain more profit by using bitcoin instead of other online payment methods like Paypal where there are charges for currency conversion and additional fees.
4. Investment. – People may also get enticed by the history of bitcoin price. Because of the recent rise in bitcoin prices, a lot of people have begun thinking about investing in bitcoin as a form of long-term investment.
Bitcoins are stored in a digital wallet which could either be on a cloud or your computer. Digital wallets serve as your bank account which allows you to send or receive bitcoins, pay for bitcoin transactions, and save or store your bitcoins for future use.
No one can predict how bitcoin can affect world finance and economy in the long run, but judging by its practicality and its current popularity, it may be here to stay for a while. Bitcoin may even revolutionize the way that the insurance industry works. Without the need for banks to act as middlemen, insurance claims would be paid out more efficiently and promptly. There may also come a time when you wouldn’t need to pay for a monthly premium; with the help of GPS technology in conjunction with bitcoin technology, your vehicle’s movement can be tracked, and you would just have to pay for the times when your vehicle is in use. These are just assumptions but very well may be the future with bitcoins.
None of the content on Hoganinjury.com is legal advice nor is it a replacement for advice from a certified lawyer. Please consult a legal professional for further information.
EURUSD is trading upwards. Possibly, the pair may continue the correction towards 1.1400 (an alternative scenario). According to the main scenario, later the price is expected to continue trading inside the downtrend with the target at 1.1290.
GBPUSD, “Great Britain Pound vs US Dollar”
GBPUSD is still consolidating. Possibly, the pair may grow towards 1.2750 and then fall to reach 1.2640. Later, the market may continue the correction with the target at 1.2804 (an alternative scenario). According to the main scenario, the price is expected to continue trading inside the downtrend with the target at 1.2450.
USDCHF, “US Dollar vs Swiss Franc”
USDCHF is trading upwards to reach 0.9943. After that, the instrument may start a new decline towards 0.9920 and then form one more ascending structure with the short-term target at 0.9990.
USDJPY, “US Dollar vs Japanese Yen”
USDJPY is trading downwards. Today, the pair may form a continuation pattern around 112.40. The short-term downside target is at 111.15.
AUDUSD, “Australian Dollar vs US Dollar”
AUDUSD is still being corrected. Possibly, today the pair may form one more ascending structure to reach 0.7210. After that, the instrument may resume trading inside the downtrend with the short-term target at 0.7077.
USDRUB, “US Dollar vs Russian Ruble”
USDRUB is consolidating close to the upside border of the range. Today, the pair may fall to break 66.80 and then continue this decline with the target at 65.80.
XAUUSD, “Gold vs US Dollar”
Gold is trading upwards. Possibly, today the pair may reach 1250.32 and then form a new descending structure towards 1240.25. After that, the instrument may start another growth with the target at 1255.10.
BRENT
Brent has broken 59.05 and completed another descending structure. Today, the pair may grow to return to 59.05 and then start a new decline towards 57.57, thus forming another consolidation range. Later, the market may break the range to the upside and resume trading inside the uptrend with the target at 73.00.
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.
