InvestMacro

by JustForex

The EUR/USD currency pair

Technical indicators of the currency pair:

• Prev Open: 1.10317
• Open: 1.10940
• % chg. over the last day: +0.56
• Day’s range: 1.10802 – 1.10940
• 52 wk range: 1.0879 – 1.1572

On Friday, January 31, there were aggressive purchases on EUR/USD currency pair. The trading instrument set new local highs. The coronavirus outbreak in China continues to be in the focus of attention of financial markets participants. We recommend you to monitor the current information on this issue. At the moment EUR/USD quotes are consolidating in the range of 1.10700-1.11000. The single currency has potential for further growth. We expect the publication of important economic reports. Open positions from key levels.

The Economic News Feed for 03.02.2020:

• – Business Activity Index in the German manufacturing sector – 10:55 (GMT+2:00);
• – ISM Manufacturing Index for the USA – 17:00 (GMT+2:00).;

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 EUR/USD.

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

Trading recommendations

• Support levels: 1.10700, 1.10400, 1.10200
• Resistance levels: 1.11000, 1.11200, 1.11500

If the price fixes above 1.11000, expect the quotes to grow toward 1.11200-1.11500.

Alternatively, the quotes could descend toward 1.10500-1.10300.

The GBP/USD currency pair

Technical indicators of the currency pair:

• Prev Open: 1.30856
• Open: 1.31703
• % chg. over the last day: +0.81
• Day’s range: 1.31528 – 1.31836
• 52 wk range: 1.1959 – 1.3516

GBP/USD quotes show a strongly pronounced upward trend. Sterling has overcome and strengthened above the key extremums. At the moment, the trading instrument is consolidating. Local support and resistance levels are at 1.31400 and 1.31800, respectively. The GBP/USD currency pair has potential for further growth. This week will introduce a number of important indicators of business activity in the UK. Open positions from key levels.

The Economic News Feed for 03.02.2020:

• – UK Manufacturing Activity Index – 11:30 (GMT+2:00).

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 near the oversold area, the %K line crossed the %D line. There are no signals at the moment.

Trading recommendations

• Support levels: 1.31400, 1.31000, 1.30750
• Resistance levels: 1.31800, 1.32100

If the price fixes above 1.31800, expect further growth toward 1.32100-1.32400.

Alternatively, the quotes could descend toward 1.31000.

The USD/CAD currency pair

Technical indicators of the currency pair:

• Prev Open: 1.32042
• Open: 1.32360
• % chg. over the last day: +0.20
• Day’s range: 1.32358 – 1.32498
• 52 wk range: 1.2949 – 1.3566

A bullish sentiment still dominates the USD/CAD. The trading instrument has updated local highs again. Currently, the CAD is consolidating in the range of 1.32200-1.32500. Technical correction of USD/CAD quotes after the prolonged rally is not excluded in the nearest future. We recommend you to pay attention to the dynamics of oil prices. Open positions from key levels.

The news background on the Canadian economy is calm.

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

Histogram of MACD is in the positive zone, which indicates a bullish sentiment.

The Stochastic Oscillator is in the neutral zone, the %K line crosses the %D line. No signals at the moment.

Trading recommendations

• Support levels: 1.32200, 1.31900, 1.31550
• Resistance levels: 1.32500, 1.32800

If the price fixes above 1.32500, expect the quotes to grow toward 1.32800-1.33000.

Alternatively, the quotes could correct toward 1.31900-1.31700.

The USD/JPY currency pair

Technical indicators of the currency pair:

• Prev Open: 108.977
• Open: 108.450
• % chg. over the last day: -0.53
• Day’s range: 108.307 – 108.626
• 52 wk range: 104.45 – 113.53

The USD/JPY currency pair has moved down after a prolonged consolidation. The trading instrument broke through the key lows. Currently, USD/JPY is consolidating in the range 108.300-108.600. Demand for save haven currencies remains at a high level. We do not rule out further growth of the yen against the US dollar. Today we recommend you to pay attention to the US economy news background. Open positions from key levels.

The publication of important economic reports from Japan is not planned.

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

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

The 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: 108.300, 108.000
• Resistance levels: 108.600, 108.800, 109.100

If the price fixes below 108.300, USD/JPY quotes are expected to fall further. Potential movement towards 108.000-107.800.

Alternatively, the quotes could grow to 109.000-109.200.

by JustForex

by JustForex

On Friday, the US dollar weakened significantly against a basket of major currencies. The dollar index (#DX) closed in the red zone (-0.52%). Markets are under pressure due to the spread of the Chinese coronavirus. Investors continue to monitor the global economic impact of the virus spread, which overshadows the profitable season.

Chinese markets have opened after the New Year holidays, which were extended by 10 days due to an outbreak of coronavirus. The start of trading was marked by the expected collapse of the indices on average by 8%. This is the biggest drop in Chinese indices since 2015. Chaos is happening on the Chinese exchanges, many stocks are collapsing. During the current trading week, a number of important indicators on economic activity in the Eurozone, the UK and the US will be published. Investors will also assess the US labor market report for January.

The “black gold” prices are declining. Currently, futures for the WTI crude oil are testing the $51.70 mark per barrel.

Market Indicators

On Friday, there were aggressive sales in the US stock market: #SPY (-1.82%), #DIA (-2.12%), #QQQ (-1.59%).

The 10-year US government bonds yield fell again. At the moment, the indicator is at the level of 1.53-1.54%.

• – German manufacturing PMI at 10:55 (GMT+2:00);
• – Manufacturing PMI in the UK at 11:30 (GMT+2:00);
• – ISM manufacturing PMI at 17:00 (GMT+2:00).

We also recommend paying attention to the speech by the ECB President.

by JustForex

By Admiral Markets

Source: Economic Events February 3, 2020 – Admiral Markets’ Forex Calendar

The DAX30 CFD has seen a weak weekly close driven by the latest news and developments on the Coronavirus. The resulting risk-off among market participants directs out focus onto the psychologically relevant level of 13,000 points.

Technically, the DAX developed a sequence of falling highs and lows after breaking below the import region of support on the Hourly chart around 13,380/400 points on Monday of last week.

After failing to recapture this region last Wednesday/Thursday after the Fed and despite market participants expecting a dovish Fed, allowing speculations to rise that the central bank will cut rates at least once in 2020 by 25 basis points with a likelihood of over 80%, gives the weak weekly close a clear sign of weakness.

If we get to see a sustainable drop below 13,000 points, the daily trend support around 12,900 points will get our attention.

A drop below that level darkens the technical picture further, then making a test of the SMA(200) and thus further losses down to min 12,500 points a possibility.

If bulls, on the other hand, regain control, a push back above 13,300 points brightens the picture again, switching the technical mode from bearish to at least neutral:

Source: Admiral Markets MT5 with MT5-SE Add-on DAX30 CFD Hourly chart (between January 14, 2019, to January 31, 2020). Accessed: January 31, 2020, at 10:00pm GMT

Source: Admiral Markets MT5 with MT5-SE Add-on DAX30 CFD Daily chart (between October 19, 2018, to January 31, 2020). Accessed: January 31, 2020, at 10:00pm GMT – Please note: Past performance is not a reliable indicator of future results, or future performance.

In 2015, the value of the DAX30 CFD 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%, in 2019, it increased by 26.44% meaning that after five years, it was up by 34.2%.

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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.
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By Admiral Markets

By TheTechnicalTraders – Our research team has highlighted a number of technical and other factors that point to a very real potential of a major market top setting up across the global markets.  We’ve highlighted a number of research articles over the past 30 to 45 days that clearly illustrate our interpretation of the US and global markets.

Our research team believes the Coronavirus outbreak in Wuhan china will cripple economic expansion and consumer economic activity in China and much of SE Asia over the next few weeks and months.  If the virus spreads into India, it could quickly target large portions of India’s economic capabilities.  We are very early into this potential pandemic event.  The growth rates reported by China suggest only a 2~3% death rate, yet an almost exponential growth rate for the number of invested.  It started off below 100 about 10+ days ago and is now almost ready to break 10k.

Skilled traders must understand that the world is far more inter-connected economically and via transportation than it was even 50 years ago.  More people travel to various parts of the world more often than ever before.  More goods and services travel back and forth across oceans and continents than ever before.  This inter-connected world is actually quite small when you consider a student or vacationer can travel more than halfway around the planet in less than 35 hours, access two or three major transportation hubs (airports) and have direct contact to dozens of people and indirect contract to thousands of people within that span of time.

January 23, 2020: JANUARY 2018 STOCK MARKET REPEAT – YIKES!

December 20, 2019: WHO SAID TRADERS AND INVESTOR ARE EMOTIONAL RIGHT NOW?

December 16, 2019: CURRENT EQUITIES RALLY SIMILARITIES TO 1999

Our concern is, quite literally, that the growth of the number of infected people related to this Coronavirus is only just starting to explode.

One analyst we were watching on TV suggested waiting for a -5% price correction in high-value US equities before attempting to buy back into this weakness.  Knowing that any type of global pandemic even could continue to expand for many months, years of decades, we believe a large number of these analysts are failing to understand the total scope of this potential event.

Our research team believes the next 6 to 12 months will become very telling regarding the real economic contraction resulting from the Coronavirus spread.  We believe the initial measures governments and world organizations are taking will shrink economic opportunity by at least 10 to 20% for certain nations.  If the virus explodes into Africa, or the Middle East, or North America, then we have another set of problems to deal with.  At that point, the economic ramifications could result in a 30 to 50% contraction in certain segments of the US and Global economy.

Let us try to explain our thinking…

No, people will not stop buying toilet paper, toothpaste, food, and other essential supplies, but they will likely slow their purchases at Starbucks, Movie Theaters, Social Events, Traveling to unknown areas and shopping in large exposed areas (big box stores).  Anything that is perceived as a risk will be viewed as potentially dangerous and unwanted.

Consumers and Businesses are like flocks of birds or schools of fish, they all seem to turn to follow the others and move as a single group or “beast”.  If consumers start to pull back as this issue extends, we expect the “beast” will follow this trend until the risk is minimized.

Even though the US economic numbers from Q4 are still landing with very strong numbers – remember this data does not include any real data from the current quarter.  Everything looks really good if you ignore the threat of the Coronavirus going forward (which is rather foolish).  Q1 and Q2 2020 could become a completely different set of numbers.

January 29, 2020: ARE WE SETTING UP FOR A WATERFALL SELLOFF?

We believe the waterfall even that we highlighted earlier this week is still a very valid interpretation of the global market future reaction throughout most of Q1 and Q2 of this year.  We don’t see any real alternative other than price contraction as long as the Coronavirus continues to wreak havoc across the planet.  If the virus is suddenly contained and diminishing, or cured, then we believe the global perception will change back to positive very quickly.

We believe the first waterfall event is already taking place.  We believe the second waterfall event will produce a downside price move targeting recent support near $307 on the SPY.  We believe any further breakdown of the price below this support level will prompt a downside price move targeting the $260 level.  These rotations will come in waves or waterfall events and could target various sectors of the US and global markets.

Pay attention to what the Transportation Index is doing as this outbreak continues.  Slowing consumer activity means essential items will still be in high demand, but big-ticket items, cars, luxury, and vacations may see a dramatic slowing in sales and activity.  Even homes and apartments may slow in sales.  People tend to become very protective and secure in these economic modes.

The Transportation Index may initially fall to levels near 10,200 before finding any real support.  Then a further downside move may target longer-term support near 8,500.  Below that level..  well, let’s just say that below that level and we could be well into a very serious Bearish contraction phase of the global markets.

Take this time to reposition your assets and protect your value.  You can always redeploy your capital when you feel the time is right to jump back into the markets.  We believe the next 60 to 90 days will become very informative relating to the spread and capabilities of this virus and our ability to fight it.  Don’t let this volatility be something like 2009 when you look back and say “I should have known better”.

Join my ETF Trade Alert Newsletter – Wealth Building Newsletter if you like what you read here and ride my coattails as I navigate these financial markets and build wealth while others lose nearly everything they own.

Chris Vermeulen
TheTechnicalTraders.com

NOTICE: Our free research does not constitute a trade recommendation or solicitation for our readers to take any action regarding this research.  It is provided for educational purposes only.  Our research team produces these research articles to share information with our followers/readers in an effort to try to keep you well informed.  Visit our web site to learn how to take advantage of our members-only research and trading signals.

By Dan Steinbock     

Chinese government has used very strong measures to contain the spread of the coronavirus outbreak in Wuhan. The ultimate economic impact will depend on the eventual diffusion and infectiousness of the new virus.

After the outbreak of a new coronavirus (2019-nCoV) and evidence of human-to-human transmission, central government urged people to stay at home, restricted travel and cancelled major public events. That caused travel to plunge 29 percent on the first day of the Lunar New Year, but likely saved countless lives.

China extended Lunar New Year holiday to keep people at home and reduce the risk of the spread, while extending several billions of dollars to help contain the virus. As the number of the infected continues to accelerate and evidence of human-to-human transmission has been discovered in and outside China, the World Health Organization (WHO) has declared global health emergency.

While the full effect of the outbreak on the Chinese and the global economy is too early to estimate, probable impact scenarios can be assessed.

Despite enhanced capabilities, new risks

Internationally, markets have responded to virus outbreaks with sharp but temporary reactions until the spread is halted. Recently, analysts have used as a guideline to these projections the Severe Acute Respiratory Syndrome (SARS) in 2002-3. But that’s premature.

In the early 2000s, China’s efforts to control SARS were criticized as the disease spread internationally before the global outbreak was subdued. A decade later, Chinese response to the Avian influenza (H7N9) was significantly faster, broadly praised and the disease did not spread widely.

In recent years, China has significantly strengthened its national and local surveillance systems to prevent and control diseases. Laboratory and hospital capacity have been significantly reinforced. The record in emergency management is varied at local level.

However, despite improved Chinese capabilities and Chinese authorities alerting outside bodies, including the World Health Organization, to the novel coronavirus relatively quickly, there are now new risks, due to greater global integration. In 2003, China’s air, rail and road travel was only a fraction of what it is now and most Chinese lived in the countryside. Today, China has the world’s largest logistical hubs and 60 percent of people reside in densely populated cities. That’s the reason for the effort to insulate Wuhan and other urban centers in its proximity, altogether 51 million people – which is comparable to the total population of South Korea.

The timing also differs. Unlike SARS, the current outbreak took place before the Chinese Lunar New Year, which is accompanied by the world’s largest human migration. That’s why the government took extraordinary measures to reduce the risk of accelerated spread, which may set a new norm for struggle against epidemics in megacities.

Early human and economic costs

During SARS outbreak, 8,100 people worldwide were infected, while 774 died mainly in Chinese mainland and Hong Kong; 10 percent of the total. It was determined that the basic reproduction number – the number of people a newly-infected person is likely to pass the virus to – was about 2-5.

With the coronavirus, there are currently (8 pm Wuhan time, Jan 31) 9,776 confirmed cases in China, while 213 have died; that’s less than 2.2 percent of the total. According to early research, the reproduction number is 3.3-5.5. In other words, despite similar transmissibility, mortality rate in coronavirus seems to be less fatal (currently 2.2%) relative to SARS (11%) and particularly to Middle East Respiratory Syndrome MERS (35%).

However, health authorities suggest that symptoms may not show during the 2 to 14-day incubation period for the new coronavirus, which would undermine traditional containment practices. If the new virus can be detected only after considerable collateral damage, there is worse ahead, as Chinese authorities have suggested. The implication is that the exponential stage of the virus is still ongoing.

In the mainland, the current outbreak has already hit transportation, tourism and travel, restaurants and retail, which will impair near-term consumption data, while harming stocks most exposed to consumer markets. Globally, the damage was first felt in commodities, which react fast to outbreaks that typically penalize the sales of jet fuel, diesel and gasoline. In the past four weeks, crude oil plunged 15 percent until global health experts called for calm and reason.

What analysts are now monitoring is the milestone when the number of new infections begins to decelerate because that tends to signal the turning point for sentiment as well. But that may still be some way ahead.

While all early impact scenarios are subject to great epidemiological uncertainty, economic damage in past outbreaks typically hits first household consumption and trade. And it is likely to be compounded in major regional hubs, such as Wuhan, “China’s Chicago.” As government response takes off, outbreak spending will accelerate rapidly in emergency services.

If outbreaks prove protracted, they may penalize companies’ capital expenditures, which are sensitive to demand expectations, and cause disruptions in supply chains as reduced mobility generates temporary outages. Stringent financial conditions in markets are likely to further amplify collateral damage and thereby risk aversion.

Impact on economic growth in China

Before the outbreak, China was moving toward a mild recovery. Despite US trade war, GDP growth amounted to 6.1 percent in 2019. Given progressive deceleration, which is normal after intensive industrialization, China was expected to grow by 5.8 to 6.2 percent in 2020.

After the outbreak, three scenarios prevail. In the “SARS-like impact scenario,” a sharp quarterly effect – down to or below 5 percent – would be followed by a rebound in short order. The broader impact would be relatively low and regional. The impact on annualized growth would be relatively low.

In the “accelerated impact scenario,” the adverse impact would be significantly steeper in terms of growth and damage, while a rebound would follow only later. The impact on annualized growth would prove more significant. The broader impact would prove more significant and affect global prospects.

In the “disruptive impact scenario,” the adverse impact is harder to assess. Whether natural or synthetic, the new strain occurred in the worst time (before the largest human migration) and the worst place (huge regional hub which was expected to record 7.8% growth in 2020).

It is not the only recent anomaly. Last fall, African swine fever (ASF), which had never before seen in China but now mysteriously appeared with the onset of the US trade war, decimated half of China’s pigs, which doubled pork prices and contributed to inflation causing pricy US pork exports to double in China.

The odds for two such consequent anomalies, timing and location are exceedingly low. Yet both did occur – in almost perfect sequence.

For now, central government seeks to use maximum efforts to contain the outbreak of the novel coronavirus. Over time, it is likely to boost further national and local surveillance systems, and emergency management in megacities, while protecting China against potential external bio-threats that have destabilization potential.

 About the Author:

The author is the founder of Difference Group who has served at the India, China and America Institute (USA), Shanghai Institutes for International Studies (China) and the EU Center (Singapore)  

A shorter version of the commentary was published by China Daily on January 31, 2020

By Michael Kuchar

2020 started with some good moves in some of the major cryptocurrencies. As a bi-directional market which allows you to profit from long trades as well as short trades, these cryptocurrencies could hold great potential for you.

But why should you focus on these cryptocurrencies?

a.) Good volatility with high trading volume

In any financial market, you are basically trading against the dealer or other traders. Without volume and volatility, you are left with a dead cryptocurrency which only ties down your money while good things happen elsewhere…without you. You should be able to buy and sell at will with instant order executions, and your preferred cryptocurrency should have good range of movement to help you profit from its movements.

b.) Easy to buy or sell

The cryptocurrencies to focus on should be the ones that are easy to buy or sell on popular cryptocurrency trading platforms like Binance, Etoro, ROinvesting or IG, as a result of their general acceptability to the entire market. There is no gain in trading cryptos that no one has ever heard of or one that no one wants. If you check for example ROinvesting review, you will easily see which cryptocurrency pairs are commonly traded and which ones are sparsely traded. The candles in the latter will look more like stacked matchboxes than real candles.

Now that we know the character of the crypto assets we should look out for, here are some of the cryptocurrencies to focus on in 2020.

1. Bitcoin

Bitcoin will continue to command number 1 position because it is the cryptocurrency which best fulfils the conditions listed above. It commands the most market volume, is easy to buy or sell, will always have demand and will have supply willing to meet that demand. It commands great range of movements that can potentially turn the right move into good profits.

2. Litecoin

Litecoin was created as an analogue of Bitcoin, and so it tends to track the movements of Bitcoin in the market. If Bitcoin is too expensive to trade or commands too much volatility for your account to handle, then Litecoin is a good alternative. Most of the time, you will find that the same price patterns on Bitcoin tend to form on Litecoin, and at lower prices too. So if you have a small account, Litecoin is a good trading alternative for 2020.

3. Ripple

Ripple may just be the sleeping giant that could awaken in 2020. This is because the project has a working product that is very likely to be the future of global remittance and bank wire transfer systems. More than 75 banks from all over the world have signed up to the Ripple network. How the price of Ripple continues to trade at such cheap levels is still a wonder to many discerning crypto investors. Imagine a company with a product that has the potential to be used by billions of people in the not-too-distant future, and you have Ripple Labs. The Ripple token could be the one to surprise many this year and it is still at cheap level. As at the time of writing, it is not even up to 25 cents per token. What you would use to buy 1 BTC can fetch you nearly 8,600 XRP tokens. Lest I forget, I need to mention that the company was able to secure $200m additional investment in December 2019. Keep an eye on Ripple for 2020.

4. EOS

EOS is surely but quietly making giant strides in the decentralized apps (dApps) market. While Ethereum and TRON have traditionally been the two names in this space for real-life dApps and gambling-related dApps respectively, EOS is quietly taking over that market. The 260 dApps that have been created on EOS commanded a trade volume of $5bn in the last year, which represented 50% of the total spend on dApps in the market. This also surpassed the total amounts spent on Ethereum and TRON in the dApps market. EOS is also commanding more activity in this space than Ethereum or TRON. The EIDOS launch on the EOS platform has increased the number of transactions on that platform by a factor of X4. EIDOS has conferred on EOS a status of the dApp network which has lower users that command the largest activity volumes. EOS should be on your watchlist for 2020 and the cost of the token is still below $4.

These are the top 4 cryptocurrencies you need to watch out for in 2020, a year that we believe will see greater value for cryptos that are adding value to the ecosystem as well as churning out real-life use case products.

About the Author:

Michael is an experienced financial trader using Forex, Commodities and Cryptocurrencies. In addition to trading, he runs businesses, trains traders and develops trading technology products. His other passions are boxing and traveling.

Article By RoboForex.com

EURUSD, “Euro vs US Dollar”

EURUSD has completed another ascending impulse towards 1.1038; right now, it is correcting towards 1.1013. After that, the instrument may form one more ascending structure to break 1.1038 and then continue growing with the target at 1.1060.

GBPUSD, “Great Britain Pound vs US Dollar”

GBPUSD has returned to 1.3085; right now, it is consolidating near the highs. Possibly, the pair may form a new descending structure towards 1.3040 and then start another growth with the target at 1.3090.

USDCHF, “US Dollar vs Swiss Franc”

After finishing the descending structure towards 0.9680, USDCHF has completed the correction at 0.9700. Later, the market may start a new decline with the target at 0.9661.

USDJPY, “US Dollar vs Japanese Yen”

USDJPY is still consolidating around 108.99. Possibly, today the pair may expand the range up to 109.39 or even 109.57 to test it from below. Later, the market may resume falling inside the downtrend with the target at 108.03.

AUDUSD, “Australian Dollar vs US Dollar”

After breaking 0.6733, AUDUSD has completed the descending structure towards 0.6707. Today, the pair may grow to test 0.6733 from below and then resume trading downwards with the target at 0.6688.

USDRUB, “US Dollar vs Russian Ruble”

USDRUB is moving upwards. Possibly, the pair may reach 63.50 and then form a new descending structure to break 62.90. Later, the market may resume trading downwards with the first target at 62.38.

USDCAD, “US Dollar vs Canadian Dollar”

USDCAD is falling towards 1.3188 and may later start a new correction to reach 1.3206, thus forming a new consolidation range. If the price breaks this range to the downside, the market may form a new descending structure to reach 1.3170; if to the upside – resume growing with the target at 1.3250.

XAUUSD, “Gold vs US Dollar”

Gold is moving downwards. Possibly, the pair may break 1570.84. The downside target is at 1560.00.

BRENT

Brent is growing towards 58.87. Today, the pair is expected to form a new consolidation around this level. If later the price breaks this range to the upside, the market may continue trading upwards with the target at 60.75.

BTCUSD, “Bitcoin vs US Dollar”

BTCUSD has reached 9500.00; right now, it is moving downwards. The main scenario implies that the pair may fall to reach 9050.00 and then start a new correction towards 9250.00. After that, the instrument may continue falling with the target at 8500.00.

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 H4 chart, after reaching 38.2% fibo, BTCUSD is trying to get to 50.0% fibo. At the same time, there is a divergence on MACD, which may indicate a possible pullback soon. The support is at 23.6% fibo (8184.75).

In the H1 chart, after the pair had reached the upside post-correctional extension area between 138.2 and 161.8% fibo at 9552.55 and 9783.85 respectively, there was a divergence on MACD, which made it start a new pullback. The targets of this pullback may be 23.6%, 38.2%, and 50.0% fibo at 9248.00, 9051.40, 8893.30 respectively. The resistance is the local high at 9564.80.

ETHUSD, “Ethereum vs. US Dollar”

As we can see in the H4 chart, after updating the high, ETHUSD is trying to fix above 23.6%. the next upside target is 38.2% fibo at 210.20. At the same time, there is a divergence on MACD.

In the H1 chart, the pair is growing towards the local post-correctional extension area between 138.2 and 161.8% fibo at 188.05 and 193.65 respectively.

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

The EUR/USD currency pair

Technical indicators of the currency pair:

• Prev Open: 1.10084
• Open: 1.10317
• % chg. over the last day: +0.16
• Day’s range: 1.10170 – 1.10351
• 52 wk range: 1.0879 – 1.1572

The EUR/USD currency pair has moved up after a prolonged decline. The trading instrument has updated its local highs. At the moment EUR/USD quotes are consolidated in the range of 1.10100-1.10400. The technical picture signals a further correction of the single currency against the USD. Investors continue to assess the risks of further coronavirus spreading. We expect the release of important statistical data. We recommend opening positions from key levels.

The Economic News Feed for 31.01.2020:

• – Consumer Price Index (EU) – 12:00 (GMT+2:00);
• – GDP Report (EU) – 12:00 (GMT+2:00);
• – Personal Spending (US) – 15:30 (GMT+2:00);

Indicators do not give accurate signals: the price has fixed between 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 EUR/USD.

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: 1.10100, 1.09900
• Resistance levels: 1.10400, 1.10600, 1.10800

If the price fixes above 1.10400, expect the quotes to correct toward 1.10600-1.10800.

Alternatively, the quotes could descend toward 1.09900-1.09700.

The GBP/USD currency pair

Technical indicators of the currency pair:

• Prev Open: 1.30186
• Open: 1.30856
• % chg. over the last day: +0.50
• Day’s range: 1.30814 – 1.31407
• 52 wk range: 1.1959 – 1.3516

GBP/USD quotes are showing positive dynamics. During yesterday and today’s trading the sterling strengthened against the US dollar by more than 100 points. The Bank of England, as expected, kept the main parameters of monetary policy at the same level. Today the UK will officially withdraw from the EU. At the moment, the trading instrument is consolidated in the range of 1.31000-1.31400. You should open positions from these marks.

Publication of important economic reports from the UK is not planned.

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

Histogram of MACD is in the positive zone, which indicates a bullish sentiment.

The Stochastic Oscillator is located in the overbought zone, the %K line crossed the %D line. No signals at the moment.

Trading recommendations

• Support levels: 1.31000, 1.30750, 1.30300
• Resistance levels: 1.31400, 1.31700

If the price fixes above 1.31400, expect the quotes to rise toward 1.31700-1.32000.

Alternatively, the quotes could descend toward 1.30700-1.30500.

The USD/CAD currency pair

Technical indicators of the currency pair:

• Prev Open: 1.31974
• Open: 1.32042
• % chg. over the last day: +0.08
• Day’s range: 1.31952 – 1.32339
• 52 wk range: 1.2949 – 1.3566

The USD/CAD currency pair is still dominated by bullish sentiments. The trading instrument has updated local highs again. At the moment USD/CAD quotes are testing resistance level 1.32350. The mark 1.31900 is a key support. Technical correction is not ruled out in the nearest future. Today participants of financial markets will evaluate important economic releases from Canada. Positions should be opened from key levels.

At 15:30 (GMT+2:00) a report on Canadian GDP will be published.

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 indicates a bullish sentiment.

The Stochastic Oscillator is located in the overbought zone, the %K line crossed the %D line. No signals at the moment.

Trading recommendations

• Support levels: 1.31900, 1.31700, 1.31500
• Resistance levels: 1.32350, 1.32600

If the price fixes above 1.32350, expect further growth toward 1.32600-1.32800.

Alternatively, the quotes could correct toward 1.31600-1.31400.

The USD/JPY currency pair

Technical indicators of the currency pair:

• Prev Open: 108.983
• Open: 108.977
• % chg. over the last day: -0.01
• Day’s range: 108.878 – 109.136
• 52 wk range: 104.45 – 113.53

USD/JPY currency pair continues to trade in a long flat. There is no defined trend. The trading instrument tests the local supply and demand areas: 108.600-108.750 and 109.100-109.250, respectively. USD/JPY quotes have potential for recovery. We recommend you to pay attention to the dynamics of US government securities yield. Positions should be opened from key levels.

The news background on Japanese economy is rather calm.

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

Histogram of MACD is in positive zone, which indicates bullish moods.

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

Trading recommendations

• Support levels: 108.750, 108.600
• Resistance levels: 109.100, 109.250, 109.650

If the price fixes above 109.100, USD/JPY quotes are expected to rise. Potential movement towards 109.400-109.600.

Alternatively, the USD/JPY pair may decline to 108.500-108.300.

by JustForex

By Admiral Markets

Source: Economic Events January 31, 2020 – Admiral Markets’ Forex Calendar

The Fed rate decision on Wednesday this week couldn’t brighten the picture for the USD/JPY after its recent significant drop back below 110.00.

While nothing new came last Wednesday, paired with the rising expectations among market participants of a dovish Fed in the future who expect, with a likelihood of over 80%, rate cuts at least once by 25 basis points, this should keep the pressure on US yields and thus fuel our expectation of USD/JPY seeing a further drop, finding a potential first target around 107.80/108.00.

That said, any disappointment in today’s data around the Personal Income and Personal Spending, resulting pressure on US yields could thus result in a bearish weekly close in the currency pair with the main focus lying on the region around 107.80/108.00.

In addition to that, USD/JPY traders should keep a close eye on any new developments on the Coronavirus which result in another wave of short-term risk-off hitting financial markets, driving US yields lower and thus USD/JPY lower, too.

Technically the region around 107.80/108.00 is activated if we get to see a drop below 108.50 while above the mode stay choppy with a neutral tendency, leaving chances of a near-term test of the region around 110.30 on the table:

Source: Admiral Markets MT5 with MT5-SE Add-on USD/JPY Daily chart (between November 20, 2018, to January 30, 2020). Accessed: January 30, 2020, at 10:00pm GMT – Please note: Past performance is not a reliable indicator of future results, or future performance.

In 2015, the value of USD/JPY 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%, in 2019, it fell by 0.85%, meaning that after five years, it was down by 9.2%.

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