by JustForex
Germany’s GDP growth estimate for Q3 worsened to 1.7% from 1.8%. Analysts believe the economic performance across Europe will worsen in Q4 due to the introduction of new restrictions to combat the Covid-19 wave.
From a technical point of view, the EUR/USD pair is bearish on the hour time frame. The Euro continues to show weakness, the price is slowly declining, and buyers’ attempts to buy back the movement give only a small intraday bounce. The MACD indicator has become inactive, but there are signs of divergence at several time frames, so traders should expect a technical rebound. Under such market conditions, traders should consider sell positions from the resistance levels near the moving average since the price has strongly deviated from the averages. Buy trades should be considered only from the support levels of the higher time frame, given the buyers’ initiative, but only with short targets.
Alternative scenario: if the price breaks out through the 1.1386 resistance level and fixes above, the mid-term uptrend will likely resume.
The UK health secretary said that vaccines may be less effective against the new variant of Covid-19. According to an official government report, the UK failed to prepare properly for a coronavirus pandemic because resources were focused on Brexit. The UK not only recorded the highest number of deaths in Europe – more than 140,000 so far – but it also suffered the sharpest economic hit among the developed countries.
On the hourly time frame, the trend on GBP/USD is bearish. The MACD indicator has become inactive but is signaling divergence on several time frames. Under such market conditions, traders should consider sell positions from the support levels around the moving average. The buyers need to get the price back above the 1.3360 level, so buy trades should be considered only if the price returns to the 1.3360-1.3507 corridor, given the buyers’ initiative.
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Alternative scenario: if the price breaks out through the 1.3507 resistance level and consolidates above, the bullish scenario will likely resume.
The Japanese yen strengthened sharply in early Friday trading as a new strain of Covid-19 detected in South Africa sparked a wave of caution in global markets. The Japanese Yen is one of the “safe-haven” currencies in case of emergency shocks.
The global trend on the USD/JPY currency pair is bullish. But the MACD indicator became negative, and sellers’ pressure is increasing. Under such market conditions, it’s better to look for buy positions from the buyers’ initiative zone near the moving average, but after additional confirmation in the form of a buyers’ initiative. Sell positions should be considered from the resistance levels of higher time frames, given there is sellers’ initiative, but only with short targets.
Alternative scenario: if the price falls below 113.79, the uptrend will likely be broken.
Oil prices fell sharply this morning as a rise in coronavirus cases and a new Covid-19 strain raised concerns about the outlook for energy demand ahead of the OPEC+ meeting. The Canadian dollar is a commodity currency, so it fell sharply against the dollar amid the drop in oil.
From a technical point of view, the trend of the USD/CAD currency is bullish. The MACD indicator became positive, the pressure of buyers is increasing. Under such market conditions, it is better to look for buy trades from the support levels near the moving average. Sell deals should be considered from the resistance levels of the higher time frames.
Alternative scenario: if the price breaks down through the 1.2571 support level and fixes below, the downtrend will likely resume.
by JustForex
This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.
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