Category Archives: Market Anakysis

Forex market analyized

Gold price remains in bullish trend but vulnerable to a pullback.

In our previous analysis when Gold price was trading around $1,650 I said that we expect a pull back in Gold price. So far the pull back has been very shallow and so far important support trend lines remain intact.Green line – supportRed line – resistanceGold price continues to make higher highs and higher lows. Price is touching once again the green upward sloping support trend line. As long as this trend line remains intact we remain optimistic and consider each pull back as a buying opportunity. But bulls need to be very cautious as the oscillators have reached overbought levels. We could soon see new short-term higher highs in Gold price and the oscillators to produce a lower high. This is the most probable scenario now. To see some bearish divergence signs. Overall I believe Gold price is very vulnerable to a pull back towards $1,600-$1,570 again. I believe the most probable scenario as long as we hold above $1,638 is to see $1,670-80 before turning lower. If $1,638 fails to hold then I would expect price to move lower right away.The material has been provided by InstaForex Company – www.instaforex.com…

EURUSD: Aid of 500 billion euros is delayed. The competition for the darkest forecast of economic contraction continues

There is no news affecting the exchange rate of the European currency or the US dollar today. However, at the beginning of the European session, the euro fell sharply against the US dollar after postponing further negotiations of the Eurogroup on Thursday. During the speech, Eurogroup President Mario Centeno said that the negotiations will continue on Thursday, as at the end of the 16-hour conversation, EU Finance Ministers did not come to a single agreement.

Let me remind you that joint measures and efforts aimed at fighting the coronavirus and supporting the economies of the eurozone member states are now more important than ever before. It is possible that the lack of consensus on a number of issues in such difficult times may even become a turning point for the eurozone as a whole. The new Italian government has repeatedly expressed its dissatisfaction with the current laws and framework within the eurozone in the past year. Let me remind you that in March of this year, when a similar meeting failed, EU leaders instructed Finance Ministers to agree on a package of anti-crisis measures in the next two weeks, the deadline for which expires tomorrow.
We are talking about a number of measures…

Evening review for April 8th for EUR/USD. Euro needs US labor market statistics

Outlook for EUR/USD. A lot of macroeconomic data was unveiled during recent days.
1. In Europe, the epidemic has passed its peak. The epidemiological situation has improved in Italy and Spain.
2. Eurozone finance ministers failed to agree on the region-wide stimulus. The meeting is suspended until Thursday.
3. In the US, the situation is likely to stabilize by the end of the week.
Nevertheless, the market mood is still difficult to predict.
I suppose that the US employment data will be of crucial importance. The data is expected to be published on April 9th.
EUR/USD:
Buy positions can be opened from the level of 1.1040.
Sell positions can initiated from 1.0765.The material has been provided by InstaForex Company – www.instaforex.com…

April 8, 2020 : GBP/USD Intraday technical analysis and trade recommendations.

Recently, the GBPUSD has reached new LOW price levels around 1.1450, slightly below the historical low (1.1650) achieved in September 2016.That’s when the GBP/USD pair looked very OVERSOLD around the price levels of 1.1450 where a double-bottom reversal pattern was recently demonstrated.Technical outlook will probably remain bullish if bullish persistence is maintained above 1.1890-1.1900 (Double-Bottom Neckline) on the H4 Charts.Bullish breakout above 1.1900 (Latest Descending High) invalidated the bearish scenario temporarily & enabled a quick bullish movement to occur towards 1.2260.Next bullish targets around 1.2520 and 1.2680 were expected to be addressed if sufficient bullish momentum was maintained.However, early bearish pressure signs have originated around 1.2470 leading to another bearish decline towards 1.2265.That’s why, H4 Candlestick re-closure below 1.2265 is needed to hinder further bullish advancement and enhance the bearish momentum on the short term.If so, Initial Bearish target would be located around 1.1900 provided that quick H4 bearish closure below 1.2265 is achieved.On the other hand, bullish persistence above 1.2265 would probably enhance another bullish pullback movement up to the price level of 1.2470.Trade recommendations :Conservative traders should be waiting either for another bullish pullback towards 1.2470 or another H4 bearish closure below 1.2265 as a valid SELL signal. T/P…

April 8, 2020 : EUR/USD Intraday technical analysis and trade recommendations.

Since December 30, the EURUSD pair has trended-down within the depicted bearish channel until the depicted two successive Bottoms were established around 1.0790 then 1.0650 where the EUR/USD pair looked OVERSOLD after such extensive bearish decline.Few weeks ago, the EURUSD pair has expressed significant bullish recovery around the newly-established bottom around 1.0650.The following bullish engulfing H4 candlesticks as well as the recently-demonstrated ascending bottoms indicated a high probability bullish pullback at least towards 1.0980 and 1.1075 (Fibonacci Level 50%).Key Supply-Levels in confluence with significant Fibonacci levels are located around 1.1075 (50% Fibonacci) and 1.1175 (61.8% Fibonacci) where bearish rejection was highly-expected.Moreover, a Head & Shoulders continuation pattern was demonstrated around the price levels of (1.1000 – 1.1075).Shortly after, further bearish decline was demonstrated towards 1.0800 where the nearest demand level to be considered was located near the backside of the broken channel (1.0800-1.0750).Early signs of Bullish rejection have been manifested around the price zone of (1.0800-1.0750) leading to the current bullish spike up to 1.0920.This supports the bullish side of the market as long as bullish persistence is maintained above the recently-established ascending Bottom around 1.0770.On the other hand, any bearish breakout below 1.0770 invalidates the previously-mentioned outlookTrade recommendations :Intraday traders…

Financial markets and indices #SPX, #DAX amid the coronavirus pandemic COVID-19

Dear colleagues.There is no pause in the outpour of shocking scenarios, and Donald Trump has once again managed to surprise the public. According to the calculations of White House analysts, on a light scenario, there is an estimated 150,000 deaths in the US due to the COVID-19 pandemic, while the worst-case scenario draws over 2 million number of infected cases. Despite this, the US citizens seemed to look rather pleased with this announcement.Against this backdrop, the US intelligence sees this better than blaming China for underestimating the number of victims. The underestimation on China’s part is only natural, as they were able to control the spread of the virus immediately although it might have seemed so impossible to do so. The current state of the virus outbreak in the US is none other than due to the collapse of the vaunted American health care system, which is costing the budget a tidy sum of $ 1.3 trillion. This scenario gravely affects the US economy and not in a good way.Massive injections of central banks and the Federal Reserve System led to some stabilization in financial markets, the liquidity of which improved significantly. Thus, for example, from February 25 to March 31,…

Trading plan for Gold for April 08, 2020

Technical outlook:Gold is facing strong resistance at $1,703 levels and the yellow metal is expected to stay lower. The overall structure is looking bearish until prices stay below $1,703 levels; while a break higher would test $1,750. At this point in writing Gold is seen to be trading around $1,647 levels and is expected to drop lower towards immediate support at $1,568. The recent boundary that is being worked upon is between $1,703 and $1,451 respectively. Please note that Gold has retraced up to fibonacci 88% of the earlier drop, carving a lower top around $1,675 levels. If the counter trend rally has completed, prices should reverse sharply lower towards $1,450 support and beyond. Once the counter trend line support is broken, it would confirm that a meaningful top is in place at $1,675, and that Gold could accelerate lower again. Trading point of view, Gold remains good to sell on rallies until prices stay below $1,703.Trading plan:Remain short @ 1,640/50, stop @ 1,703 target @ 1,450 and lower.Good luck!The material has been provided by InstaForex Company – www.instaforex.com…

BTC analysis for 04.08.2020 – Potential drop on BTC is coming, the main objective is set at the price of $5.813

Corona virus news:On April 5, Italy’s “blood donation day,” the Italian Red Cross constructed an advanced medical post using funds generated through a crypto fundraiser.The Italian Red Cross has raised nearly $32,000 through cryptocurrency donations in less than one month. Roughly $22,000 has been used to finance the construction of the initiative’s first advanced medical post in the town of Castel Gandolfo near Rome. The funds were spent by the initiative to purchase a pneumatic tent that will house the medical post, in addition to other materials. The tent was erected during Italy’s “blood donation day” and used as a screening station for pre-donation medical examinations.Technical analysis: BTC has been trading downwards as I expected. The price broke the Pitchfork mini upward channel and it gave us the first signal for the potential chage in the trend from bullish to bearish.Watch for selling opportunities. The area around $7.500-$7.600 looks like good zone for sell posiitons.Downward targets are set at the price of $6.595 and $5.813.MACD oscillator is showing decreasing on the upside momentum and the slow line turned to the downside, which is indication for potential change in the trend.Major resistance pivot zone is set at $7.600-$8.000Support levels are set at…

USD/JPY analysis for 04.08.2020 – End of the downward correction (bull flag pattern) and bigger up-swing in play. Watch for

Corona virus news:Boris Johnson has spent a second night in intensive care amid concerns about the seriousness of his condition and how the government will make key decisions about the coronavirus pandemic in his absence.The foreign secretary, Dominic Raab, who is deputising for the prime minister, has no power to make major decisions without cabinet agreement, it emerged on Tuesday.Technical analysis: USD/JPY has been trading sideways at the price of 108.88. Anyway, there is the potential completion of the downward correction (bull flag pattern) in the backgorund and rejection of the important pivot support at 108.50, which is strong indication for the further upside continuation. My analysis from yesterday is still valid.Watch for buying opportunities on the dips. The area around 109.10 looks like good zone to load long positions.Upward targets are set at the price of 109.85 and 110.60. MACD oscillator is showing strong upside pressure and the slow line is turned to the upside, which is great addition to our long bias. Resistance levels are set at the price of 109.37, 109.85 and 110.60 Support level is set at the price of 108.50.The material has been provided by InstaForex Company – www.instaforex.com…

EUR / USD: Euro bound to decline below $1.05

The global financial crisis of 2008-2009 is now used as a template for forecasting and developing investment strategies for various assets. However, the nature of the previous and current crisis caused by the outbreak of coronavirus is fundamentally different. The latter is more likely a natural disaster, after which the economy usually recovers quickly. Therefore, it is hardly worth surprising that the number of supporters of the U-shaped growth of US GDP is increasing. If this really happens, then it’s too early to buy American stocks, as well as selling greenbacks.The growth of the S&P 500 index by more than 20% of the March minimum suggests that large-scale measures to support the US economy, proposed by the White House and the Fed, somewhat calmed the financial markets. However, stocks are still in a vulnerable position. Market participants may be scared by the news about the worsening epidemiological situation in the United States, as well as reports that the country government is not able to transfer financial incentives to business quickly enough.The decline in the S&P 500 is fraught with the resumption of sales of EUR / USD. The volatility of the main currency pair in 2020 increased sharply. At the same…