InvestMacro

Article By RoboForex.com

USDCAD, “US Dollar vs Canadian Dollar”

As we can see in the H4 chart, the pair is moving inside the rising channel again. By now, USDCAD has completed a Harami pattern near the support level. The current situation implies that USDCAD may reverse and resume growing towards 1.3333. At the same time, one shouldn’t exclude an opposite scenario, according to which the instrument may start a new decline to return to 1.3222.

AUDUSD, “Australian Dollar vs US Dollar”

As we can see in the H4 chart, the pair continues the descending tendency; after completing a Hammer, the price is rebounding from the horizontal support level. Right now, there are two possible scenarios. The first one implies that AUDUSD may test 0.6668. The other scenario suggests that the instrument may form a slight correction and then resume falling with the target at 0.6545. the current situation implies that the second scenario is more probable for the next several trading sessions.

USDCHF, “US Dollar vs Swiss Franc”

As we can see in the H4 chart, after finishing the pullback within the ascending tendency, USDCHF has formed a Harami reversal pattern. The current situation suggests that the pair may reverse and reach the channel’s upside border to continue the ascending tendency with the target at 0.9870. However, one shouldn’t ignore another scenario, according to which the instrument may continue falling towards 0.9766.

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 Orbex

Investors sought the safety of safe-haven assets, selling the risk-heavy equities.

This came amid an increase in the Coronavirus cases outside of China. Besides some Asian countries, Europe is also being affected.

This led to an increase in safe-haven assets such as gold and US Treasuries.

German Business Confidence Improves in February

Business confidence in Germany, as measured by the Ifo institute saw modest improvement. For February, the business climate index rose to 96.1 during the month. This was up from a revised 96.0 in January.

The data underlined the fact that German businesses were unaffected by the impact of the virus outbreak. It also signaled a modest increase in the business sentiment from December.

EURUSD Attempting to Rebound

The common currency is posting some modest gains into Monday’s close. This comes as the US dollar takes a pause in its rally.

With the Stochastics now showing possible renewed momentum, we expect that the EURUSD will maintain the upside bias for now. As long as the price level of 1.0839 holds, the next upside target is 1.0897.

Oil Drops as Investors Expect Lower Demand

Crude oil prices are trading weaker, down over 5% on Monday. The declines come on the back of newly reported cases on the virus outbreak. The economic impact is expected to hit demand for crude oil.

As a result, oil prices pared gains and are trading weaker.

Crude Oil Loses the Support

Oil prices plunged sharply, losing the support level of 51.65. This will push price action lower to retest the support at 50.00. A retest of this handle will likely stabilize the declines.

However, there could be scope for further declines. If oil prices bottom near 50.00, we expect to see a rebound taking place. But, under the current circumstances, this could take a while before prices turn bullish.

Gold Surges on Flight to Safety

The precious metal is up over 2% on the day. The gains were driven by investors bidding the safe-haven gold and other similar assets. This comes as France already reported a big drop in tourism.

Investors are starting to assess the big impact the virus outbreak is causing on various economies around the world.

XAUUSD at 7-year High, Shows No Sign of Easing

The precious metal touched a 7-year high on Monday as it hit 1689 before retreating intraday. The gains are driven by the investor fears of a widespread impact due to the virus outbreak.

In the near term, any dips are likely to attract new buyers into the market. If there is a rebound, then we expect the XAUUSD to hit the 1700 handle in the near term.

By Orbex

by JustForex

The US dollar is stable against currency majors. The dollar index (#DX) closed yesterday with a slight increase (+0.10%). The Chinese virus is still in the focus of attention. The spread of Covid-19 outside of China is of great concern to investors. Analysts believe that coronavirus will affect the economy of most countries, and the Fed may cut interest rates. Demand for the “safe haven” currencies has resumed again.

Countries around the world are stepping up efforts to prevent a pandemic, while the number of infected has exceeded 80,000. In South Korea, an outbreak of coronavirus was recorded among members of the religious movement, so the authorities intend to check 200 thousand members of this movement. The US promised to allocate $2.5 billion to fight the disease due to the rapid spread of the virus outside of China. The European Commission, in turn, allocates 232 million euros to counteract the spread of coronavirus, as well as calls on the international community to cooperate.

The “black gold” prices are consolidating after a significant fall the day before. Currently, futures for the WTI crude oil are testing the $51.25 mark per barrel.

Market indicators

Yesterday, there were aggressive sales in the US stock market: #SPY (-3.32%), #DIA (-3.51%), #QQQ (-3.86%).

The 10-year US government bonds yield declined. At the moment, the indicator is at the level of 1.35-1.36%.

• – CB consumer confidence index in the US at 17:00 (GMT+2:00).

by JustForex

By IFCMarkets

On Monday, US stock quotations dropped for the 3rd day in a row. This was facilitated by an increasing number of people infected with coronavirus outside of China. The S&P 500 (-3,35%) and Dow Jones Industrial Average (-3,56%) indices went down, the Nasdaq (-3,71%) collapsed as well. Trading volume on US exchanges continued to enlarge and totaled 10.59 billion shares. Yesterday it was 36% more than the 20-day average. The Dow Jones stock index collapsed by more than 1000 points in one day – for the third time ever in its history. Shares of 3 sectors of the S&P 500 index (utilities, arms production and consumer staples) fell less than others. The Consumer Confidence Index will be released in the US today. The ICE exchange dollar index still closed “in the red” on Monday and keeps declining slightly now. Investors believe that the coronavirus epidemic will force the Fed to lower the rate (1.75%) at a session to be held on March 18.

Today, European stocks rise in price as part of the correction after a powerful downfall on the eve. Airline securities, that went down in value yesterday, are leading now. The ESTOXX 50 index gained half a percent after yesterday’s drop of almost 4%. The US provides $ 2.5 billion to address the epidemic and create a vaccine. South Korea announced they will test 200,000 residents for coronavirus. German IFO Business Climate economic indicators for February unexpectedly turned positive yesterday. The Eurozone is unlikely to publish any significant macroeconomic data today. The EUR/USD rate demonstrates a sluggish growth. It may be limited by investors’ expectations that the ECB will reduce the rate in July this year from the current 0% to minus 0.1%. The probability of such development reached 50% from 35% last week.

Asian indices are trading today without a single trend. Chinese Shanghai Composite fell 0.6%.Hang Seng Index gained 0.3% today. The Australian S&P/ASX 200 index also moved upward. Japanese Fujifilm shares rose 5.6% to a historic high after reports that Avigan could be used to treat coronavirus.

Brent futures are now trading above the psychological level of $ 55 per barrel. The Minister of Energy of Saudi Arabia Abdulaziz bin Salman said that OPEC + countries shouldn’t be satisfied with coronavirus and they continue to consider reducing production by another 600 thousand barrels per day, in addition to the current limit of 1.7 million barrels per day. Note that despite the coronavirus epidemic, Bank of America maintained its forecast of an average Brent price of $ 62 per barrel in 2020. Gold prices moved down today from its 7-year high on Monday. Investors are awaiting to the major global central banks to cut rates and their expectations are supported by precious metal quotations.

Market Analysis provided by IFCMarkets

Note:
This overview has an informative and tutorial character and is published for free. All the data, included in the overview, are received from public sources, recognized as more or less reliable. Moreover, there is no guarantee that the indicated information is full and precise. Overviews are not updated. The whole information in each overview, including opinion, indicators, charts and anything else, is provided only for familiarization purposes and is not financial advice or а recommendation. The whole text and its any part, as well as the charts cannot be considered as an offer to make a deal with any asset. IFC Markets and its employees under any circumstances are not liable for any action taken by someone else during or after reading the overview.

by JustForex

The EUR/USD currency pair

Technical indicators of the currency pair:

• Prev Open: 1.08247
• Open: 1.08521
• % chg. over the last day: +0.09
• Day’s range: 1.08452 – 1.08676
• 52 wk range: 1.0879 – 1.1572

During yesterday’s trading, the single currency continued to recover against the greenback. EUR/USD quotes updated local highs. The euro was supported by optimistic data from Germany. At the moment the trading instrument is consolidating. The key support and resistance levels are 1.08300 and 1.08700, respectively. The EUR/USD currency pair has a potential for further correction. We expect economic reports from the USA. We recommend opening positions from key levels.

The Economic News Feed for 25.02.2020:

• – in the fourth quarter, German GDP growth met market expectations and amounted to 0.3% (YoY);
• – the US consumer confidence index will be published at 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 below the %D line, which indicates a bearish mood.

Trading recommendations

• Support levels: 1.08300, 1.08000, 1.07800
• Resistance levels: 1.08700, 1.09000, 1.09250

If the price fixes above 1.08700, expect the quotes to move toward 1.09000-1.09250.

Alternatively, the quotes could descend toward 1.08000-1.07800.

The GBP/USD currency pair

Technical indicators of the currency pair:

• Prev Open: 1.29448
• Open: 1.29301
• % chg. over the last day: +0.09
• Day’s range: 1.29142 – 1.29419
• 52 wk range: 1.1959 – 1.3516

The technical picture on the GBP/USD currency pair is ambiguous. The trading instrument is in sideways movement. Unidirectional trend is not observed. At the moment local support and resistance levels are at 1.29000 and 1.29450, respectively. Sterling has a potential for recovery. It is recommended to open positions from key levels.

The publication of important economic releases from the UK is not planned.

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

MACD histogram is near the 0 mark.

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

Trading recommendations

• Support levels: 1.29000, 1.28500
• Resistance levels: 1.29450, 1.29800, 1.30150

If the price fixes above the resistance level at 1.29450, expect the quotes to rise to 1.29800-1.30000.

Alternatively, the quotees could descend toward 1.28700-1.28400.

The USD/CAD currency pair

Technical indicators of the currency pair:

• Prev Open: 1.32508
• Open: 1.32925
• % chg. over the last day: -0.21
• Day’s range: 1.32801 – 1.32987
• 52 wk range: 1.2949 – 1.3566

Buying prevails on the USD/CAD currency pair. The trading instrument has updated local highs again. The CAD is under pressure from a significant drop in oil quotes. At the moment USD/CAD quotes are consolidating. The key support and resistance levels are 1.32700 и 1.33050. The Canadian dollar has a potential for further decline against the greenback. Today, we recommend to pay attention to the US economic reports. Positions should be opened from key levels.

The Economic News Feed for 25.02.2020 is calm.

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

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

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: 1.32700, 1.32450, 1.32250
• Resistance levels: 1.33050, 1.33400

If the price fixes above 1.33050, expect further growth toward 1.33400-1.33600.

Alternatively, the quotes could descend toward 1.32500-1.32300.

The USD/JPY currency pair

Technical indicators of the currency pair:

• Prev Open: 111.342
• Open: 110.681
• % chg. over the last day: -0.63
• Day’s range: 110.627 – 111.043
• 52 wk range: 104.45 – 113.53

At USD/JPY currency pair aggressive sales are observed. Yesterday the drop in quotations exceeded 70 points. The trading instrument has set new local lows. At the moment the safe haven currency is consolidating in the range of 110.650-111.100. USD/JPY quotes have potential for further correction. We recommend you to monitor the current information about the epidemic in China. Positions should be opened from key levels.

The Economic News Feed for 25.02.2020 is calm.

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

Histogram of MACD is in the negative zone, which indicates a bearish mood.

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

Trading recommendations

• Support levels: 110.650, 110.300, 110.100
• Resistance levels: 111.100, 111.600, 112.200.

If the price fixes below 110.650, further correction of USD/JPY quotes is expected. Potential movement towards 110.300-110.000.

Alternative is the growth of USD/JPY currency pair to 111.500-111.700.

by JustForex

By Alpari.com

By Alpari.com

By Lukman Otunuga, Research Analyst, ForexTime

Article by ForexTime

ForexTime Ltd (FXTM) is an award winning international online forex broker regulated by CySEC 185/12 www.forextime.com

By CentralBankNews.info
Paraguay’s central bank left its monetary policy rate steady at 4.0 percent, saying the data shows the country’s economy is expected to continue along the path of recovery in the first months of the year though the outbreak of the coronavirus in China “has become a new factor of uncertainty.”
The Central Bank of Paraguay (BCP), which has kept its rate steady since October 2019 after five rate cuts in the preceding months by a total of 125 basis points, added the outbreak has not only led to the temporary closure of some factories in China, lowering production, but the outlook for the local region “has become more complex” considering the challenge of renegotiating debt in Argentina.
On the other hand, economic data from Brazil remains favorable while a greater depreciation of the real has been noted.
“In this scenario, CPM (the monetary policy committee) considers that maintaining the current accommodative profile continues to be compatible with the fulfillment of the medium term inflation target,” the central bank said.
Paraguay’s economy was hit hard by several shocks last year, including drought and then flooding which cut agricultural output, and then weakness in Argentina and Brazil, which lowered exports.
In the third quarter of 2019 Paraguay’s economy bounced back from two consecutive quarters of annual contraction in the first and second quarters of 2019, with gross domestic product expanding by 2.8 percent year-on-year.
Inflation in Paraguay was steady at 2.8 percent in January and December and BCP expects inflation to gradually converge to its target of 4.0 percent, plus/minus 2 percentage points, in the medium term.

www.CentralBankNews.info

By IFCMarkets

The coronavirus epidemic is spreading outside of China.

As of February 24, 77.3 thousand people have been infected in China, 2.6 thousand people died. Iran is in second place by number of deaths (12 people). At the same time, the number of patients in Iran is relatively low and amounts 47. In South Korea there are more than 800 patients, 8 people died. In Italy, more than 200 infected and 7 dead. China produces a significant amount of component parts for US companies. Investors fear supply cuts due to the coronavirus epidemic and its subsequent quarantine. In addition, the demand for American goods has decreased markedly. Particularly, smartphone sales decreased by about a third. The China Passenger Car Association reported a 92% drop in car sales in the first 2 weeks of February to 811 units a day.

Summary of technical analysis

Market Analysis provided by IFCMarkets

By Lukman Otunuga, Research Analyst, ForexTime

Article by ForexTime

ForexTime Ltd (FXTM) is an award winning international online forex broker regulated by CySEC 185/12 www.forextime.com