Equities markets saw a late surge last week as news of a US-China trade deal broke.
Markets had been trading with caution over the week. Many players feared that Trump would press ahead with his next round of tariffs. These were due to take effect as of Sunday, December 15th. However, late on Thursday, reports of a deal began circling, sending equities higher.
The deal in question is the phase-one trade deal agreed upon by the two sides back in October. The deal was initially due to be signed at the APEC meeting in Chile in November.
However, following the cancellation of the meeting due to civil unrest in Chile, the markets were left wondering whether a deal would be signed ahead of the December 15th tariff date.
So, What’s in the Deal?
The first details of the deal broke via a tweet from Trump, who wrote:
The deal saw Trump canceling the December 15th tariffs as well as reducing 15% tariffs on $120 billion of Chinese goods (which went live in September).
The 25% tariffs on $250 billion of Chinese goods will remain in place until a phase-two deal is complete. In return for the reduction in tariffs, China has agreed to step up its purchases of US agricultural products and has also canceled planned tariffs of its own.
Commenting further on the deal, US Trade Secretary Robert Lighthizer said that China has committed to an extra $200 billion of US agricultural, energy and manufactured goods purchases over the next two years.
The text of the deal lays out specific figures for individual items. However, these have not been released so as not to impact the commodity market.
What Has the Reaction Been?
The markets were initially firmly higher in response to the news. However, gains reversed over late trading on Friday as the market seemed to react with disappointment to the details of the deal.
Many players have said that the deal outlined is not as big as had been expected. Much of the US political community shares this view, pointing out that agricultural purchases, specifically, do not even amount to the figure of the losses suffered by US farmers last year.
As usual, Trump did his best to put a positive spin on things, telling reporters:
“I say affectionately that the farmers are going to have to go out and buy much larger tractors because it means a lot of business, a tremendous amount of business.”
Next Steps
Both sides are now carrying out a legal review of the text of the 86 page document before making arrangements for a formal signing of the deal.
Lighthizer and Chinese Commerce Minister Gao Feng are then due to lead their delegations in the next round of meetings. These meetings will be aimed at delivering a phase-two trade deal, in January.
Technical Perspective
The SPX500 continues to trade higher, having broken above the prior 3156.45 highs, which are holding as support for now. However, the RSI indicator is flagging bearish momentum here. With price moving within a rising wedge pattern, there is the risk of a correction lower.
To the downside, the next key level to watch is the 3092 region. While above here, medium-term focus is on a continued push higher.
Prime Minister Boris Johnson’s landslide victory may finally bring an end to the Brexit deadlock. In their biggest election win since Margaret Thatcher’s 1987 triumph, the Conservatives swept 365 of the 650 seats in Parliament and dealt a crushing blow to their Brexit opponents.
Now the UK government should be able to get its deal passed by January 31. We may expect upbeat comments from the BoE this week which could further lift the pound. The pair is climbing along with the moving averages towards 1.9700. The psychological level of 1.9000 will be a major support to maintain the rally.
Gold Hit by Optimism
Global sentiment improved after the US and China reached a Phase one deal on Friday. The US will suspend the upcoming round of tariffs on $160 billion of Chinese goods and reduce existing ones.
In exchange, China agreed to double its purchases of US goods and services with an additional $200 billion over the next two years. Markets welcomed the de-escalation and we would expect bullion to be under pressure as traders turned on the risk-seeking mode.
The metal met strong resistance at 1487 on the bearish trend line. A break below 1450 could trigger an extended sell-off.
USDJPY Awaits Bullish Breakout
Despite the Fed’s dovish stance to leave a rate hike off the table in 2020, the greenback held strong against the Japanese yen. Sentiment is turning around gradually as geopolitical tensions have seemingly eased off.
A breakthrough in the US-China talks and a post-election swift Brexit may start to weigh on safe-haven currencies like the yen. A bullish breakout above 109.70 could send the price to 110.50 while the downside risk would be a drop below 108.40.
AUDCAD Rises Back to September High
The Australian dollar has been the collateral damage of the 17-month long trade war between the US and China. As Australia’s largest trading partner absorbing nearly 30% of the country’s exports, China’s slowdown is compounding on its own domestic challenges such as muted inflation.
Needless to say that a truce between the two giants would provide much relief to the Aussie. The pair is testing the daily resistance level of 0.9140, and the bullish trend line around 0.9000 is the key support to monitor.
After extensive speculation, the US and China have finally agreed on the much-talked-about phase one trade deal.
The announcement comes just before a fresh round of tariffs were to come into effect on goods imported from China.
Washington said that, while the 25% tariff will remain, it would cut the 15% levies by half. Investors expect further details over the coming weeks.
Euro Gives Back Gains Amid a Busy Day
The euro was trading stronger on Friday but gave back the gains by closing hours. The euro was buoyed by the outcome of the UK elections.
News about the trade deal also saw a bit of volatility for the US dollar. However, the euro ignored the weak retail sales report, trading off the global cues.
EURUSD Reverses Gains Off Resistance
The common currency rose to the resistance level of the 1.1200 – 1.1180 region. But price action quickly reversed, pushing EURUSD to close slight in the red. Currently, we expect the currency pair to slip to the lower support area of 1.1100. A retest of this level for support will likely keep the upside bias alive.
Sterling Gains on Tory Win
The pound sterling rose over 1.26% on Friday as the UK election results were announced. Investors had already bet on a Tory win. However, there was a bit of doubt on whether the Conservative party could win with a majority.
Following the results, PM Boris Johnson is now expected to proceed with his Brexit plans.
GBPUSD Retreats off 1.35 Level
With trades already pricing in a Tory victory, the currency pair reversed gains after reaching for 1.3500. Price action culminated with a strong pullback thereafter.
However, the upside bias remains in place for the moment. Short term support could form at 1.3226 level. But the currency pair could continue trading within Friday’s range.
Gold Pares Losses on US Data
The precious metal came under pressure following a host of positive news reports on the trade front and the UK elections. Amid the noise, economic data from the US saw that retail sales rose less than expected.
But the USD managed to brush aside the data. Gold prices, for their part, managed to hold ground.
XAUUSD to Remain Directionless in the Medium Term
The precious metal is trading within the established corridor of 1483 and 1462. As long as this range is maintained, we do not expect to see any major moving coming along. The bias also remains mixed for gold at this point. There is a risk of a breakout in either direction, especially with the weekly candlestick closing bullish.
Regardless of why you to move things across the border, here are three methods of international shipping discussed in more detail.
In this article we’ll try to help you to understand some aspects of international shipping – how to choose the right transport company and share some tips on how to save you money.
If you want to send your shipment abroad, you have several options. Aircraft, trains, boats, and cars can be used to transport cargo between countries. However, different mailing methods are suitable for different situations.
How Do I Ship Internationally? (Methods Of Transportation)
There are many ways to deliver your goods around the world. Road or rail delivery is often the best option for delivery to neighboring countries, but what to do if you need to import or export from other locations.
Courier services
These are probably the services you’ll be best acquainted with. If you send a small quantity, you will probably use a courier service. (Personal belongings and gifts are examples of situations where a courier service may be preferable.)
Airfreight – traditional air freight is a way of quickly transporting goods around the world. By loading it on a plane and sending it to another country.
Shipping – Shipping is often the cheapest way to transport your goods globally. However, it takes a lot more time to reach its destination.
Which Method Should I Use?
Here are a few considerations:
Price
Many people are just looking for the cheapest way to send packages abroad. If you can be flexible, with regards to factors, such as delivery time, you can save much money as the cost of air freight/courier services can be 4 times higher than the cost of shipping a relatively large package of goods.
Size of goods
For all types of overseas transportation, the size largely determines the price.
Parcels, more than a specific size, will make courier services and air transportation much more expensive. Whereas, parcels of a smaller size (about 100 kg and 0.5 cubic meters) are meaningless to go through the hassle of sea transportation.
How fast you need the goods
The big difference between these international shipping services is the time of delivery. Shipping from China can take 6-7 weeks, while some courier services can around three days!
How simple you want this process to be
There are many differences in the services offered by these different methods.
Courier services are easy to use and deliver goods directly to your front door.
Sea and air freight can be more straightforward, although you need to be sure that the company that controls your shipment, knows precisly what is required to clear your shipment and deliver it quickly and efficiently.
Air Freight vs. Sea Freight vs. Courier Services
Here is a simple guide to selecting the most appropriate option for your needs:
As a general rule, anything weighing less than 100 kg (e.g., personal goods) is usually worth using a courier service. If you are importing or exporting a large number of small and expensive items, such as tablets or luxury watches, it is usually more appropriate to use air freight services.
Sea freight offers great savings, but whether sea freight is generally more advantageous for larger shipments or not is up to you and your budget. The cost of sea freight is often cheaper and remains the same for up to 25 boxes. Sea freight is generally more economical for larger volumes.
Although we have already given you a brief overview of what a courier is, let us go a little deeper.
A courier is the best way to imitate the typical experience of international delivery – the use of a courier is an international delivery service.
The courier is responsible for the door-to-door process. Much like receiving regular mail, couriers allow you to deliver your goods directly to your door.
This method is more straightforward than other international shipping methods. The courier will pick up the parcel and deliver it, as well as contact the appropriate person to pay any duties or taxes.
Pros and Cons Of Couriers
To help you decide whether an international parcel courier service is an international parcel service, we have listed the pros and cons of using it.
Pros:
Easy to use.
Very fast. Couriers are the fastest way to deliver parcels worldwide.
Once-off costs and a few unexpected fees. The problem with shipping goods by freight is that, in addition to the original cost, you can get a bill full of unforeseen expenses that may be more than the value of the cargo itself. Courier services usually do not have any hidden costs.
Cons:
Compared to freight, couriers are much more expensive. That is not a problem if you ship a box or two of small personal items. However, if you export large quantities of goods then courier it then the cheapest option for shipments up to 100 kg.
Saving money when your shipping goods are not applicable unless you buy in bulk and the service offered with freight is normally business-oriented, not customer-oriented.
Your products are loaded into the aircraft and delivered to you or your customers. Naturally, this is a much quicker process than shipping by sea, but there are much less space and weight allowances on the plane.
As a result, the cost of air transportation is calculated differently (moving a kilogram by air is much more than by sea), so often sea freight can be the cheaper option when it comes to bulky items.
How Are Air Freight Charges Calculated?
Airline rates are based on either the actual gross weight or the volume weight of the cargo, whichever is higher.
That is because some items take up more space on board than their actual weight.
Should I Use Air Or Sea Freight?
That is one of our FAQs! If you want to get a detailed answer about whether to choose sea or air transport, look at the overview below.
When choosing between air and sea transport, the following three main points should be taken into account:
Price
Size
Delivery time
Sea transportation is usually 4-6 times cheaper than air transportation. If you are interested in reducing costs, sea freight will be of interest to you.
When looking at the different expenses, for sea transportation of cargo, one cubic meter is equal to 1000 kg, whereas, on air transportation, six cubic meters is equal to 1000 kg.
If you increase the weight of your cargo during transportation by sea, the probability that the price will increase is not high. If you import heavier load by air, the difference in price between the two options will increase significantly and could be 4-6 times more.
When importing goods, time is often a factor. If you have urgent stock needs and you need the goods delivered immediately, the best option for you would be air transportation.
On the other hand, if you order the products in advance and can wait up to 6 weeks, shipping would be a better option for you.
Another consideration may be ethical reasons:
if your company is concerned about their carbon footprint, shipping is undoubtedly the way forward.
In terms of CO2 emissions, sea freight emits 15 g of CO2 per tonne of cargo per kilometer, while air freight emits 545 g per tonne of cargo per kilometer!
Sea Freight
If you can meet the minimum requirements and you are looking for cheap international shipping, sea freight is exactly what you want.
What is Sea Freight?
Sea freight is the transportation of bulk cargo by sea. Your goods are packaged on cargo ships and shipped worldwide to their destination.
You might need a freight forwarder to do this, as they take care of the safety of your goods, keep you informed of their location, liaise with your suppliers, and sort out your deliveries.
The point is that there are many steps in this process that we take care of for you.
As you can guess, circumnavigating the world is not the fastest thing – shipping is the slowest process, usually taking more than a month.
However, making significant savings on costs could be worth the wait.
How Are International Shipping Rates Calculated?
Sea freight costs are calculated according to volume or weight (whichever is higher). It is usually the volume, so most companies need to know the size of your shipment to find out the price.
The industry uses the technical term “weight or measure” – often abbreviated to “ppm.” This means that 1.0 cubic meters are equivalent to 1000 kg.
The weight is rarely so high that it affects the cost, but if your shipment was 2.0 cm3 and 2500 kg, the weight is higher than the volume. If it were 2.5 cubic meters and 2000 kg, the amount would be more significant so that the freight fees would depend on it.
Crossing the border
Importing
If you are importing goods into the country, you need to know about possible surcharges. These may include:
Taxes and duties
Handling fee (depending on the service you use)
Customs clearance
Exporting
Exporting is accompanied by some rules and regulations as well, which you will also have to follow. Many of the documents required for export are general, for example:
Export invoices containing a detailed description of your products and the correct product code.
Typical transport documents – carrier’s receipt for the cargo with the details of the transportation and routing contract
Dangerous Goods Instructions – if your products are hazardous.
Export licenses – not always necessary, but worth knowing about.
Common sense is important when planning the initial logistics of your export. Think about the travel of your product and consider all possible options. If you are using freight forwarders, only use reputable companies and always remember to take out additional insurance.
If this is your first international delivery, you will most likely not know what Freight Forwarding is.
Forwarding is the transportation of bulk cargo, so a freight forwarder (shout out to SDC International) is an agent who acts on behalf of other companies to organize the safe, efficient, and economical transporting of goods.
To sum it up
There are many options for transporting goods, and there may not be one solution for your transportation needs. Each mode of transportation has its advantages and disadvantages.
Prioritization, understanding of cargo characteristics and cost comparison are the most important when planning and selecting the optimal mode of transport that best suits your personal or business needs.
About the Author:
Dmitrii B. is the founder of GRIN tech – a full-cycle white label agency delivering design, development and marketing solutions.
Slowing UK private sector activity bearish for GBPUSD
UK composite PMI decline accelerated in December. Will the GBPUSD decline?
The price chart on 1-hour timeframe shows GBPUSD: H1 is trading sideways. The price is falling toward the 200-period moving average MA(200) which is rising. And the RSI oscillator is below 50 level but has not reached the oversold zone. There is no trend yet formed, traders have to decide when it would be a best time to enter the market.
EURUSD is correcting with the target at 1.1100. Possibly, today the pair may move upwards to reach 1.1146 and then form a new descending structure towards the above-mentioned target. Later, the market may start the fifth wave to the upside to reach the key target at 1.1236.
GBPUSD, “Great Britain Pound vs US Dollar”
GBPUSD is correcting with the target at 1.3288. Today, the pair may grow towards 1.3400 and then resume moving downwards to reach the above-mentioned target. After that, the instrument may form one more ascending structure towards 1.3542.
USDCHF, “US Dollar vs Swiss Franc”
USDCHF is consolidating around 0.9830. Possibly, today the pair may expand this range towards 0.9870. Later, the market may start a new decline with the target at 0.9790 and then resume trading upwards to reach 0.9915.
USDJPY, “US Dollar vs Japanese Yen”
USDJPY is correcting with the target at 109.14. Today, the pair may reach 109.44 and then start a new decline to reach the above-mentioned target. After that, the instrument may form one more ascending structure with the short-term target at 109.80.
AUDUSD, “Australian Dollar vs US Dollar”
AUDUSD is correcting towards 0.6856. Later, the market may resume moving upwards with the key upside target at 0.6959.
USDRUB, “US Dollar vs Russian Ruble”
USDRUB has completed the ascending impulse at 62.91 along with the correction towards 62.50, thus forming a new consolidation range. If later the price breaks this range to the upside at 62.90, the market may start a new growth with the short-term target at 63.37.
USDCAD, “US Dollar vs Canadian Dollar”
USDCAD is consolidating around 1.3177. Possibly, the pair may reach 1.3200 and then form a new descending structure towards 1.3131. Later, the market may start another correction with the target at 1.3232.
XAUUSD, “Gold vs US Dollar”
Gold is correcting towards 1480.88. After that, the instrument may form a new descending structure to break 1465.05 and then continue moving downwards with the target at 1449.40.
BRENT
Brent has finished the ascending impulse at 66.00; right now, it is correcting downwards to reach 64.77. After that, the market may start a new growth with the short-term target at 67.20.
BTCUSD, “Bitcoin vs US Dollar”
BTCUSD is moving downwards with the target at 7000.00. Later, the market may form one more ascending structure to break 7600.00 and then continue trading upwards to reach 8165.00.
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.
As we can see in the H4 chart, XAUUSD continues the correctional uptrend towards 38.2% fibo at 1488.16. After breaking еры level, the pair may continue growing to reach 50.0% and 61.8% fibo at 1501.30 and 1514.30 respectively. After completing the correction, the instrument may break the local low at 1445.60 and continue falling towards its mid-term target, which is 50.0% fibo at 1413.85.
In the H1 chart, the divergence made the pair start a quick descending impulse, which has reached 61.8% fibo at 1461.34. Right now, the price is forming a pullback towards the local high at 1486.69. If the instrument fails to reach and break the high, the next descending wave will be heading towards 76.0% fibo at 1455.50 and then the low at 1445.60.
USDCHF, “US Dollar vs Swiss Franc”
The H4 chart shows the descending correctional wave. After the price reached its mid-term high, there was a divergence on MACD, which made the pair start a quick descending wave. By now, it has almost reached 61.8% fibo at 0.9801. After breaking this level and fixing below it, USDCHF may continue falling towards 76.0% at 0.9748. At the same time, there is a convergence on MACD, which may indicate a possible reverse soon.
As we can see in the H1 chart, USDCHF is trading downwards to reach 61.8% fibo at 0.9801. At the same time, there is a convergence on MACD.
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 US dollar ended the trading week with a decline. The dollar index (#DX) closed on Friday in the red zone (-0.22%). On Sunday, US Trade Representative Robert Lighthizer announced that the phase one US-China trade deal was “totally done.” US President Donald Trump pledged to cancel a new round of tariffs, which was scheduled for December 15. In turn, Beijing promised to increase purchases of American agricultural products. Also, Donald Trump announced that the second stage of trade negotiations would begin immediately after the conclusion of the first stage. However, Beijing made clear that the transition to the next phase would depend on how the conditions of the first phase were met.
The British pound continues to strengthen after the decisive victory of the conservative party by Prime Minister Boris Johnson in the elections. This victory paved the way for Britain to exit the EU. The Brexit process may already begin after the official opening of parliament and the Queen’s speech on Thursday. Investors also expect the Bank of England interest rate decision and its statements on monetary policy issues.
Today, during the Asian trading session, optimistic economic data have been published in China. Thus, China’s industrial production grew by 6.2% in November, while experts expected 5.0%.
The “black gold” prices continue to show positive dynamics. At the moment, futures for the WTI crude oil are testing the $60.00 mark per barrel.
Market Indicators
On Friday, there was the bullish sentiment in the US stock market: #SPY (+0.06%), #DIA (+0.06%), #QQQ (+0.33%).
The 10-year US government bonds yield has declined. At the moment, the indicator is at the level of 1.84-1.85%.
The Economic News Feed for 16.12.2019:
– Statistics on economic activity in Germany and the Eurozone at 10:30 (GMT+2:00) and 11:00 (GMT+2:00), respectively;
– Composite PMI in the UK at 11:30 (GMT+2:00);
– Services PMI in the UK at 11:30 (GMT+2:00);
– Markit composite PMI in the US at 16:45 (GMT+2:00).
A resounding triumph of the Tory and its leader Boris Johnson at early parliamentary elections in the United Kingdom helped the Pound to skyrocket last week. On Monday, December 16th, 2019, GBPUSD is back to growth after a slight technical correction. Right now, it is trading at 1.3385.
So, it is reported that the Tory secured 364 out of seats 650 seats in the House of Commons, thus giving Boris Johnson an excellent chance for successful ratification of the actual Brexit agreement in the parliament. The Tory hasn’t seen such strong results for a very long time, since 1987, while for its opponent, the British Labor Party that now holds 203 seats in the renewed Parliament, they are the worst over 40 years.
At this point, the British Parliament and Johnson are facing a very complicated and hard work to ratify all necessary documents for the Brexit. In case everything goes the way as it should, the United Kingdom may officially start exiting the alliance within the specified time, before the end of January 2020. De facto, the United Kingdom may have exited the European Union only at the end of 2020 – the year will be a transition period for both parties.
The Pound is very energetic right now because investors finally saw what they had been longing for. In this light, no external news is able to kill this positive mood.
As we can see in the H4 chart, GBP/USD has reached the short-term upside target at 1.3496; right now, it is correcting towards 1.3288. After completing the correction, the pair may start the fifth ascending wave to reach 1.3533. Later, the market may a deeper correction with the target at 1.3155. From the technical point of view, this scenario is confirmed by MACD Oscillator: its signal line is moving near the highs. The indicator is expected to leave the histogram area and fall towards 0. After that, one may expect another growth towards the highs.
In the H1 chart, GBP/USD has returned to 1.3408. Today, the pair may continue the correction towards 1.3288. After that, the instrument may break the correctional channel and start another rising wave with the first target at 1.3410. 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 falling to break 80. Later the indicator may continue moving downwards to reach 50.
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.
The last trading session on the EUR/USD currency pair is very active. At the same time, a unidirectional trend is not observed. At the moment, the following local support and resistance levels can be distinguished: 1.11100 and 1.11450, respectively. Monitor trade negotiations between Washington and Beijing. U.S. sales representative Robert Lighthizer provides the opportunity to sign the first phase of the agreement in early January 2020. Today in Germany and the eurozone. Open positions from key levels.
The Economic News Feed for 16.12.2019:
– Business Activity Report (GER/EU) – 10:30/11:00 (GMT+2:00);
Indicators do not provide accurate signals: the price crossed 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 overbought zone, the %K line has crossed the %D line. There are currently no signals.
Trading recommendations
Support levels: 1.11100, 1.10900, 1.10700
Resistance levels: 1.11450, 1.11850, 1.12000
If the price consolidates above 1.11450, expect further growth toward 1.11800-1.12000.
Alternatively, the quotes could drop toward 1.10800-1.10600.
The GBP/USD currency pair
Technical indicators of the currency pair:
Prev Open: 1.33362
Open: 1.33390
% chg. over the last day: +1.23
Day’s range: 1.33370 – 1.34222
52 wk range: 1.1959 – 1.3516
Last week, sterling strengthened significantly against the US dollar. Demand for the pound rose after the victory of the ruling conservative party in the election. At the moment, GBP/USD quotes have stabilized. Market participants expect up-to-date information on Brexit. Today, investors will evaluate important economic releases from the UK. In the near future, technical correction of the trading instrument is not ruled out. Open positions from main levels.
At 11:30 (GMT+2:00) a number business activity indicators in the UK will be published.
Indicators signal the power of buyers: the price has fixed above 50 MA and 100 MA.
The MACD histogram is in the positive zone and continues to rise, which gives a strong signal to buy GBP/USD.
The Stochastic Oscillator is in the overbought zone, the %K line has crossed the %D line. There are currently no signals.
Trading recommendations
Support levels: 1.33100, 1.32250, 1.31650
Resistance levels: 1.34200, 1.35000
If the price consolidates above 1.34200, expect the quotes to grow toward 1.35000-1.35400.
Alternatively, the quotes could descend toward 1.32600-1.32300.
The USD/CAD currency pair
Technical indicators of the currency pair:
Prev Open: 1.31830
Open: 1.31719
% chg. over the last day: -0.12
Day’s range: 1.31423 – 1.31862
52 wk range: 1.3014 – 1.3664
The USD/CAD currency pair continues to be traded in a flat. There is no defined trend. At the moment, quotes are testing the support level of 1.31450. 1.31750 is the nearest resistance. Looney is supported by bullish sentiment in the oil market. The trading instrument has the potential to further decline. Open positions from key levels.
The Economic News Feed for 16.12.2019 is calm.
Indicators signal the power of sellers: the price has fixed below 50 MA and 100 MA.
The MACD histogram has moved into the negative zone, which also indicates a bearish sentiment.
The Stochastic Oscillator is in the oversold zone, the %K line is below the %D line, which gives a weak signal to sell USD/CAD.
Trading recommendations
Support levels: 1.31450, 1.31000
Resistance levels: 1.31750, 1.32000, 1.32250
If the price consolidates below 1.31450, expect the quotes to drop toward 1.31000.
Alternatively, the quotes could grow toward 1.31900-1.32100.
The USD/JPY currency pair
Technical indicators of the currency pair:
Prev Open: 109.197
Open: 109.292
% chg. over the last day: +0.06
Day’s range: 109.277 – 109.444
52 wk range: 104.45 – 113.53
USD/JPY stabilized after a significant increase last week. Demand for the “safe haven” currencies weakened amid the prospects for a settlement of the trade conflict between Washington and Beijing. The trading instrument is currently consolidating. The local support and resistance levels are 109.250 and 109.450, respectively. In the near future, a technical correction of the USD/JPY currency pair is possible. We recommend that you pay attention to the dynamics of yield on US government bonds. Open positions from key levels.
The Economic News Feed for 16.12.2019 is calm.
The price has fixed above 50 MA and 100 MA, which signals the power of buyers.
The MACD histogram is close to 0. There are no signals at the moment.
The Stochastic Oscillator is in the neutral zone, the %K line crossed the %D line. There are no accurate signals.
Trading recommendations
Support levels: 109.250, 109.050, 108.900
Resistance levels: 109.450, 109.700
If the price consolidates above 109.450, expect the quotes to grow toward 109.700-110.000.
Alternatively, the quotes could descend toward 109.100-108.900.
