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Ichimoku Cloud Analysis 08.09.2022 (EURUSD, XAUUSD, AUDUSD)

EURUSD, “Euro vs US Dollar”

The pair is correcting after a bounce off a strong support area. It is moving under the Ichimoku Cloud, indicating a downtrend. A test of the upper border of the Cloud is expected at 0.9995, followed by falling to 0.9775. An additional signal confirming the decline will be a bounce off the upper border of the bearish channel. The scenario can be cancelled by a breakaway of the upper border of the Cloud and securing above 1.0075, which will mean further growth to 1.0165.

XAUUSD, “Gold vs US Dollar”

The pair is pushing off the upper border of the bearish channel, going under the Ichimoku Cloud, which means a downtrend. Another test of the lower border of the Cloud at 1720.00 is expected, followed by a decline to 1655.00. An additional signal confirming the decline will be a bounce off the upper border of the descending channel. The scenario can be cancelled by a breakaway of the upper border of the Cloud and securing above 1735.00, which will entail further growth to 1775.00. The decline will be confirmed by a breakaway of the lower border of the Triangle pattern and securing under 1685.00.

AUDUSD, “Australian Dollar vs US Dollar”

The pair is testing the signal lines of the indicator, going under the Ichimoku Cloud, which means a downtrend. A test of the lower border of the Cloud at 0.6810 is expected, followed by a decline to 0.6545. An additional signal confirming the decline will be a bounce off the upper border of the descending channel. The scenario can be cancelled by a breakaway of the upper border of the Cloud and securing above 0.6940, which will entail further growth to 0.7030.

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.

Financial News Forex and Currency News

08 Sep

Japanese Candlesticks Analysis 08.09.2022 (XAUUSD, NZDUSD, GBPUSD)

Article By RoboForex.com

XAUUSD, “Gold vs US Dollar”

At the support level, Gold has formed yet another reversal pattern Hammer. Currently, the pair is going by the pattern in an ascending impulse. The goal of the correction can be 1725.50. However, the quotes might fall to 1680.50 and continue the decline without testing the resistance level.

NZDUSD, “New Zealand vs US Dollar”

On H4, at the support level, the pair has formed a Hammer. Going by the signal of the reversal candlestick pattern, the pair can form an ascending impulse. The goal of the growth can be 0.6115. After a bounce off the resistance level, the quotes might continue the downtrend. However, the price may still fall to 0.5970 without correcting to the resistance level.

GBPUSD, “Great Britain Pound vs US Dollar”

On H4, at the support level, the pair has formed an Engulfing reversal pattern. Going by it, the pair may currently demonstrate an ascending impulse. The goal of growth might be the resistance level of 1.1600, and next if the price bounces off it, it will have a chance to continue falling. However, it may fall to the support level of 1.1350 without testing the resistance.

Article By RoboForex.com

Financial News Forex and Currency News

08 Sep

The Analytical Overview of the Main Currency Pairs on 2022.09.08

By JustForex

The EUR/USD currency pair

Technical indicators of the currency pair:

Prev Open: 0.9903
Prev Close: 0.9903
% chg. over the last day: +0.91 %

The ECB will hold its monetary policy meeting today, where analysts expect to see an excessive interest rate hike of 0.75%. And given the euro strengthening yesterday, there is every reason to believe that investors are already buying European currencies in the expectation that the ECB will hold an aggressive rate hike, unusual for itself. But many analysts believe it is too early to consider the euro as an investment, as the euro is still under a lot of pressure due to fears of recession, the conflict in Ukraine, and the energy shock. Also, it should be noted that the US Federal Reserve will also raise the rate by 0.5-0.75% at its next meeting, so the interest rate differential between the Fed and the ECB will continue to put downward pressure on the EUR/USD quotes.

Trading recommendations

Support levels: 0.9953, 0.9929, 0.9912.
Resistance levels: 1.0016, 1.0046, 1.0077, 1.0111, 1.0150

From the technical point of view, the trend on the EUR/USD currency pair on the hourly time frame is bearish. EUR/USD quotes are trading near parity again. Technically, there is a formation of a wide balance with a range of 0.9912-1.0077. The MACD indicator became positive, and the price returned to the range, forming a false breakdown zone below. Under such market conditions, buy trades are best to look for on intraday time frames from the support level of 0.9953 or 0.9929. Sell trades can be considered from resistance levels of 1.0016 or 1.0046, but only after the additional confirmation.

Alternative scenario: if the price breaks out of the 1.0047 resistance level and fixes above, the uptrend will likely resume.

News feed for 2022.09.08:

– Eurozone Marginal Lending Facility (m/m) at 15:15 (GMT+3);
– Eurozone ECB Monetary Policy Statement (m/m) at 15:15 (GMT+3);
– Eurozone ECB Interest Rate Decision (m/m) at 15:15 (GMT+3);
– US Initial Jobless Claims (w/w) at 15:30 (GMT+3);
– Eurozone ECB Press Conference at 15:45 (GMT+3);
– US Fed Chair Powell Speaks at 16:10 (GMT+3);
– Eurozone ECB President Lagarde Speaks at 17:15 (GMT+3).

The GBP/USD currency pair

Technical indicators of the currency pair:

Prev Open: 1.1516
Prev Close: 1.1516
% chg. over the last day: 0.00 %

The plan of the new British Prime Minister Liz Truss was well received by the British pound yesterday. According to preliminary information, the new government plans to freeze Britain’s energy bills, which will cost the country 130 billion pounds. According to analysts, it will give a temporary boost to the British currency. Onward everything depends on the actions of the Bank of England.

Trading recommendations

Support levels: 1.1449, 1.1400
Resistance levels: 1.1561, 1.1669, 1.1816, 1.1901, 1.1994, 1.2035, 1.2167

From the technical point of view, the trend on the GBP/USD currency pair on the hourly time frame is bearish. At the moment, the price is trading at the level of moving averages, and the MACD indicator is positive again. It is best to look for sell trades on intraday time frames, the nearest resistance level is 1.1561. Buy trades can be considered from the support level of 1.1449, but only with confirmation.

Alternative scenario: if the price breaks out through the 1.1670 resistance level and fixes above, the uptrend will likely resume.

There is no news feed for today.

The USD/JPY currency pair

Technical indicators of the currency pair:

Prev Open: 142.70
Prev Close: 143.74
% chg. over the last day: +0.72 %

From a fundamental point of view, the situation remains the same. With inflation in Japan still subdued, traders are betting that the Bank of Japan will not lift a finger to stop the yen’s fall. Most importantly, wage growth and inflation expectations remain subdued, so it does not look like inflation will take root. Consequently, the Bank of Japan is convinced that this is a global supply shock that will soon dissipate. The Japanese yen has already lost 25% of its value against the dollar index this year. With regard to the implementation of currency intervention, such a move now seems unrealistic. First, Japan would have to intervene alone, because neither Europe nor the US would agree to loosen its monetary policy now. Second, individual intervention implies a lower probability of success, requiring tons of foreign exchange reserves, and may even have unpleasant consequences.

Trading recommendations

Support levels: 142.83, 141.77, 141.00, 139.61, 138.78, 137.65, 136.80, 135.20
Resistance levels: 145.00

From the technical point of view, the medium-term trend on the currency pair USD/JPY is bullish. The price is trading above the average lines, and the buyers’ pressure is still there. The MACD indicator remains positive, there is no sign of reversal. Under such market conditions buy trades can be sought from the support level of 142.83 or 141.77, but with additional confirmation. Sell deals can be considered on the intraday time frames from the psychological level of 145.00, but only with additional confirmation, as fundamentally, USD/JPY quotes are inclined to grow.

Alternative scenario: If the price fixes below 141.00, the downtrend will likely resume.

There is no news feed for today.

The USD/CAD currency pair

Technical indicators of the currency pair:

Prev Open: 1.3151
Prev Close: 1.3118
% chg. over the last day: -0.25 %

The Bank of Canada held its fourth consecutive interest rate hike in an attempt to lower inflation from a four-year high. Policymakers led by Governor Tiff Macklem raised the benchmark overnight rate by 75 basis points to 3.25% on Wednesday, giving Canada’s Central Bank the highest interest rate among major advanced economies. At the same time, officials said they expect rate hikes to continue in the coming months, but the next hikes are likely to have a small adjustment.

Trading recommendations

Support levels: 1.3077, 1.3020, 1.2989, 1.2958, 1.2936, 1.2900
Resistance levels: 1.3220

From the point of view of technical analysis, the trend on the USD/CAD currency pair is bullish. The price is now trading below the moving averages, the MACD indicator has become negative, and there is some seller pressure, but the latent divergence indicates that the price is difficult to move lower. Under such market conditions, buy trades should be considered on the lower time frames from the support level of 1.3077, but only with confirmation. The best way to sell is to consider the resistance level of 1.3220, but only after a false breakout, as the level has already been tested and a lot of liquidity has been formed above the level.

Alternative scenario: if the price breaks down and consolidates below the 1.3077 support level, the downtrend will likely resume.

News feed for 2022.09.08:

– US Crude Oil Reserves (w/w) at 18:00(GMT+3).

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.

Financial News Forex and Currency News

08 Sep

Oil prices continue to fall. The ECB is going to raise interest rates by 0.75%

By JustForex

Despite the fact that the Federal Reserve officials reiterated the need to tighten monetary policy to curb inflation, US indices were trading in positive territory on Wednesday. The technology sector, which has been under pressure in recent days, was also supported by lower Treasury yields. At the close of the stock market yesterday, the Dow Jones Index (US30) increased by 1.40% and the S&P 500 Index (US500) added 1.83%. The NASDAQ Technology Index (US100) jumped by 2.14% on Wednesday.

Fed Vice President Lael Brainard said Wednesday that monetary policy should be restrictive for some time, adding that the central bank would need to see several months of low inflation figures to see if inflation is slowing.

Shares of Apple Inc. rose modestly after the introduction of a slew of new products, including the iPhone 14, the iPhone 14+, the top models of the iPhone 14 Pro, and the larger iPhone 14 Max. Analysts say Apple’s new phone will cause a strong update cycle, as many iPhone buyers haven’t updated their phones in years.

Meanwhile, Twitter shares added more than 5% after a Delaware court rejected Elon Musk’s request to delay a lawsuit that Twitter had launched to prevent the billionaire from backing out of a deal to buy the social network.

The Bank of Canada held its fourth consecutive interest rate hike in an effort to lower inflation from a four-year high. Policymakers led by Governor Tiff Macklem raised the benchmark overnight rate by 75 basis points to 3.25% on Wednesday, giving Canada’s Central Bank the highest interest rate among major advanced economies.

Equity markets in Europe traded flat yesterday. German DAX (DE30) gained 0.53%, French CAC 40 (FR40) added 0.02%, Spanish IBEX 35 (ES35) increased by 0.17%, British FTSE 100 (UK100) closed on Tuesday down 0.86%.

The ECB will hold its monetary policy meeting today, where analysts expect to see an excessive interest rate hike of 0.75%. Taking into consideration yesterday’s EUR strengthening, there is a good reason to believe that investors are already buying European currency in the expectation that the ECB will hold an uncharacteristic aggressive rate hike. But according to analysts, irrespective of the euro reaction direction on Thursday, there is a high probability that the effect on the currency rate will be temporary. This is because EUR/USD has been reacting weakly to ECB rate expectations lately, as the energy crisis continues to shape the dynamics of the pair.

According to analysts, the energy crisis in Europe will only worsen this winter as rising fuel prices reduce consumer demand and force factories to cut production or close, which is a very bad scenario for Europe.

Oil prices fell by 5% yesterday. Analysts see the following reasons for the drop in oil prices in recent days: the twenty-year high of the dollar, which increased the cost of buying crude oil for other currencies; growing quarantine measures in China; concerns about the third consecutive 75 basis point increase in rates by the US Federal Reserve at a meeting on September 21; G7 efforts to limit Russia’s selling price of oil in order to deprive Moscow of the maximum revenue it seeks from energy exports to finance its war against Ukraine; the finish line in negotiations over the Iran nuclear deal, which could potentially return hundreds of thousands of barrels of Iranian oil to the world market.

“There are fears that an angry Putin will stop all oil and gas supplies to Europe to teach the West and the world a lesson for trying to unite against Mother Russia,” said John Kilduff, a partner at the New York-based energy hedge fund Again Capital.

Gas prices in Europe decreased by 14%. Gas prices are down amid reports that European gas storage facilities are filling ahead of schedule.

Asian markets were trading lower yesterday. Japan’s Nikkei 225 (JP225) decreased by 0.71% yesterday, Hong Kong’s Hang Seng (HK50) lost 0.83%, and Australia’s S&P/ASX 200 (AU200) was 1.42% lower by the end of the day.

The Japanese currency keeps losing ground, and the reason for that is not only the interest rate differences between the Bank of Japan and other central banks. Another problem for the yen is the change in the trade balance. The country used to have a constant trade surplus, but with energy prices skyrocketing and Japan importing most of its energy from abroad, it is facing a trade deficit. Combined with the ban on tourists visiting the island, demand for the yen dropped sharply.

Australia’s index fell at the opening market on Thursday after data showed the country’s trade balance contracted more than expected in July.

S&P 500 (F) (US500) 3,979.87 +71.68 (+1.83%)

Dow Jones (US30) 31,581.28 +435.98 (+1.40%)

DAX (DE40) 12,871.44 12,915.97 (+0.35%)

FTSE 100 (UK100) 7,237.83 −62.61 (−0.86%)

USD Index 109.55 −0.66 (−0.60%)

Important events for today:

– Japan GDP (q/q) at 02:50 (GMT+3);
– Australia RBA Governor Lowe Speaks at 06:05 (GMT+3);
– Switzerland Unemployment Rate (m/m) at 08:45 (GMT+3);
– Eurozone Marginal Lending Facility (m/m) at 15:15 (GMT+3);
– Eurozone ECB Monetary Policy Statement (m/m) at 15:15 (GMT+3);
– Eurozone ECB Interest Rate Decision (m/m) at 15:15 (GMT+3);
– US Initial Jobless Claims (w/w) at 15:30 (GMT+3);
– Eurozone ECB Press Conference at 15:45 (GMT+3);
– US Fed Chair Powell Speaks at 16:10 (GMT+3);
– Eurozone ECB President Lagarde Speaks at 17:15 (GMT+3);
– US Natural Gas Storage (w/w) at 17:30 (GMT+3);
– US Crude Oil Reserves (w/w) at 18:00 (GMT+3).

By JustForex

Economics & Fundamentals Financial News

08 Sep

As expected: USDJPY, GBPUSD, gold hit key targets

By ForexTime

There’s been a lot of major movements across currency markets of late, as the US dollar’s scorched-earth ascent to a fresh 20-year high leaves its major peers lying in a heap.

And some of our recent Market Analysis report had served as a prelude to these major FX moves.

In case you missed it, let’s revisit some of them:

1) Sept 1st article: “How does the US Dollar typically fare in September?”

This time last week, I wrote:

“The US dollar is expected to register further gains in September 2022, even as DXY now trades around its highest levels in 20 years.”

Sure enough, the benchmark dollar index duly delivered with a higher high, posting a fresh peak since 2002.

To be clear, the DXY has moderated back below the psychologically-important 110 mark at the time of writing, and has returned to around last Thursday’s highs. It appears that the DXY is now seeing a pullback from “overbought” conditions, with its 14-day relative strength index moving back below the 70 threshold.

Even the equally-weighted USD index has printed a higher high since, trading around levels not seen since the early months of the global pandemic back in 2020.

In that same September 1st article, we also highlighted some of the world’s top-traded major currency pairs and key levels to look out for this month:

EURUSD: 59% chance of hitting 0.985
USDJPY: 70% chance of reaching 141.0
GBPUSD: 87% chance of touching 1.15

Suffice to say, those levels for USDJPY and GBPUSD have been resoundingly breached, arriving much sooner in September than anticipated, thanks (or no thanks) to the US dollar’s resilient climb.

USDJPY is now trading around levels not seen since 1998 …

… while GBPUSD is making a throwback to 1985, back when Margaret Thatcher was UK Prime Minister.

EURUSD: oh, so close …

EURUSD came within a whisker of the 0.985 level earmarked for the entirety of September, as mentioned in last Thursday’s (Sept 1st) article.

The day after, we published our latest Week Ahead article (our regular feature on Fridays):

2) Sept 2nd article: Week Ahead – ECB may surprise markets

in which I wrote:

“EURUSD could fall to as low as 0.986 in the coming week.”

To be fair, this past Tuesday, EURUSD came within a whisker of those levels.

Still, one can’t yet rule out such a move, especially with EURUSD struggling to stay around the parity mark as we count down to the European Central Bank’s policy decision due very soon.

Now, back to the US dollar wrecking havoc across major asset classes …

even dollar-denominated commodities have not been spared.

3) Aug 29th article: Trade of the Week – Gold to retest $1700 support?

Gold has been testing the psychologically-important $1700 support level over the past week, as suggested in the title of our August 29th Trade of the Week article.

And here’s what we wrote a couple of weeks ago:

“$1700: stronger support should arrive at this psychologically-important line, noting that previous dips below $1700 have proved short-lived in recent years.”

And gold’s performance since that Trade of the Week article (published every Monday) has indeed mimicked the price action from recent years, whereby dips below $1700 have proven short lived.

And that’s just a short recap of what’s transpired with these popular assets of late.

There’s bound to be more volatility and excitement across global financial markets before 2022 is over.

So keep checking back with our Daily Market Analysis as we help you keep pace with various instruments along the way,

Article by ForexTime

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

Financial News Forex and Currency News Metals

07 Sep

Was It Really the Fed That Sent Stock Prices Tumbling?

“Stocks have the strong potential to continue lower as prices trace out…”

By Elliott Wave International

Elliott Wave International has mentioned time and again that the mainstream financial media nearly always mentions a news development as the reason for a given day’s stock market action.

More than that, we’ve provided example after example of how these so-called explanations usually don’t hold water.

For example, on August 26, when the Dow Industrials closed lower by just over 1,000 points, a headline said (Marketwatch):

Dow closes down 1000 points, Nasdaq falls 3.9% after Powell warns of pain to households in inflation battle

That “warning” was given by Fed Chairman Powell in Jackson Hole, Wyoming when he basically said that the central bank will continue with its aggressive rate hikes.

However, this stance by the Fed is nothing new, and indeed, the stock market staged a significant rally since mid-June. All the while, the Fed had been hawkish.

Here’s a Forbes headline from July 27:

Dow Jumps 400 Points After Fed Hikes Rates By 75 Basis Points

There have been other similar headlines during the stock market’s two-month rally.

So, how can Fed rate hikes be bullish one day but bearish at another time?

Our decades-long observations here at Elliott Wave International is that news does not drive stock prices in the first place — contrary to popular belief.

The stock market is driven by investor psychology, which is reflected in the repetitive patterns of the Elliott wave model.

Indeed, before the 643-point drop in the Dow on August 22, and the 1008-point plunge on August 26, the August 19 U.S. Short Term Update (a thrice weekly Elliott Wave International publication which provides near-term forecasts for major U.S. financial markets) said:

As the week wore on, selling strength became more intense. On Wednesday, August 17, the NYSE advance/decline ratio was negative by 4.30-to-1. Today’s closing a/d ratio was negative by 6.32-to-1. The same with Big Board up and down volume. Down volume as a percentage of up and down volume was 81.4% on Wednesday and today it was 86%. Stocks have the strong potential to continue lower as prices trace out declining impulse patterns at various degrees of trend. [emphasis added]

In other words, patterns of the Elliott wave model were strongly suggesting further decline — regardless of what the Fed chairman said or didn’t say.

If you’d like to learn about the Elliott wave model, an excellent book on the subject is Elliott Wave Principle: Key to Market Behavior, by Frost & Prechter. Here’s a quote from this Wall Street classic:

All waves may be categorized by relative size, or degree. The degree of a wave is determined by its size and position relative to component, adjacent and encompassing waves. [Ralph N.] Elliott named nine degrees of waves, from the smallest discernible on an hourly chart to the largest wave he could assume existed from the data then available. He chose the following terms for these degrees, from largest to smallest: Grand Supercycle, Supercycle, Cycle, Primary, Intermediate, Minor, Minute, Minuette, Subminuette. Cycle waves subdivide into Primary waves that subdivide into Intermediate waves that in turn subdivide into Minor waves, and so on. The specific terminology is not critical to the identification of degrees, although out of habit, today’s practitioners have become comfortable with Elliott’s nomenclature.

You can learn more about the Wave Principle by reading the entire online version of the book for free!

The only requirement for free access is a Club EWI membership — which is also free.

Club EWI is the world’s largest Elliott wave educational community and members enjoy complimentary access to a wealth of Elliott wave resources on investing and trading — without any obligations.

Get started by following this link: Elliott Wave Principle: Key to Market Behavior — get free and instant access now.

This article was syndicated by Elliott Wave International and was originally published under the headline Was It Really the Fed That Sent Stock Prices Tumbling?. EWI is the world’s largest market forecasting firm. Its staff of full-time analysts led by Chartered Market Technician Robert Prechter provides 24-hour-a-day market analysis to institutional and private investors around the world.

Financial News Stock Market News

07 Sep

Murrey Math Lines 07.09.2022 (USDJPY, USDCAD)

Article By RoboForex.com

USDJPY, “US Dollar vs Japanese Yen”

On H4, the quotes have reached the overbought area. We should expect a bounce off 8/8 and subsequent falling to the nearest support level of 7/8. The scenario can be cancelled by rising over the resistance level of +1/8, in which case growth will continue so that the quotes might reach +2/8.

On M15, the lower line of VoltyChannel is too far away from the current price, so falling can be signaled by just a bounce off 8/8 on H4.

USDCAD

The situation on the USDCAD chart is similar to that on the previous chart. On H4, the quotes have reached the overbought area. We expect a bounce off 8/8 and subsequent falling to the support level of 6/8. The scenario can be cancelled by rising over the resistance level of +1/8. This will push the price further upwards to +2/8.

On M15, the lower line of VoltyChannel is too far away from the current price, so falling can be signaled by just a bounce off 8/8 on H4.

Article By RoboForex.com

Financial News Forex and Currency News

07 Sep

Crypto Market Digest for 07.09.2022

Article By RoboForex.com

The BTC is inclined downwards, and it becomes more noticeable every day. On Wednesday, the leading cryptocurrency is balancing at 18,773 USD.

Triggers are all the same. First and foremost, the reason is the falling of US stock indices and the rally in the USD. The dollar enjoys crazy demand in anticipation of the upcoming September meeting of the Federal Reserve System. It is also growing because the euro is weak, fallig due to the energy crisis in Europe.

Technically, the BTC returned to the support area of 18,000-19,000 USD that is extremely important for buyers. The probability of a breakaway has increased significantly, and if it happens, the BTC will head for 12,000 USD through 15,000 USD.

Capitalisation of the crypto sector is 938 billion USD, the BTC taking up 38.3% and the ETH – 19.8%.

Glassnode: overall pessimism

In Glassnode, they say that a decline of the BTC to 17,000 USD is quite possible, marking 15,000 USD as an intermediate resistance level.

Ethereum is ready for The Merge

The Ethereum network has uploaded another update called Bellatrix and is now fully ready for The Merge and a new update that will bring it to the PoS protocol.

Binance will stop supporting certain stablecoins

The Binance exchange has decided that starting 29 September the platform will no longer be supporting the USDC, USDP, and TUSD. The exchange will convert all balances in these stabecoins into its own one BUSD at the rate of 1 to 1.

Article By RoboForex.com

Cryptocurrencies Financial News

07 Sep

The Analytical Overview of the Main Currency Pairs on 2022.09.07

By JustForex

The EUR/USD currency pair

Technical indicators of the currency pair:

Prev Open: 0.9921
Prev Close: 0.9903
% chg. over the last day: -0.18 %

The US service sector PMI Index rose to a four-month high due to increased demand. The dollar Index and Treasury yields rose sharply after strong economic data, with the 10-year Treasury yield reaching a new three-month high. This in turn, put negative pressure on the European currency, which is trading near multi-year lows again.

Trading recommendations

Support levels: 0.9900
Resistance levels: 0.9963, 0.9988, 1.0016, 1.0046, 1.0077, 1.0111, 1.0150

From the technical point of view, the trend on the EUR/USD currency pair on the hourly time frame is bearish. EUR/USD quotes are trading below parity. Technically, there is a formation of a wide balance with a range of 0.9912-1.0077, but the price is now trading below the level of 0.9912. The MACD indicator is in the negative zone, and selling pressure remains, but there are signs of divergence. Under such market conditions, it is better to look for buy trades on intraday time frames from the support level of 0.9912 after the price fixes higher. Sell trades can be considered from resistance levels of 0.9963 or 0.9988, but only after the additional confirmation.

Alternative scenario: if the price breaks out of the 1.0047 resistance level and fixes above, the uptrend will likely resume.

News feed for 2022.09.07:

– German Industrial Production (m/m) at 09:00 (GMT+3);
– Eurozone GDP (q/q) at 2:00 (GMT+3);
– US FOMC Member Mester Speaks (m/m) at 17:00 (GMT+3);
– US FOMC Member Brainard Speaks (m/m) at 19:35 (GMT+3).

The GBP/USD currency pair

Technical indicators of the currency pair:

Prev Open: 1.1508
Prev Close: 1.1517
% chg. over the last day: +0.08 %

UK 10-year bond yields exceeded 3%, the highest level in over a decade, amid expectations that new Prime Minister Liz Truss will trigger a wave of government spending. Swaps related to the Bank of England policy meetings show that expectations of a rate hike have been rising steadily since early August, meaning that the key rate will more than double by the end of the year. There are fears that inflation, which was 10.1% in July, will spiral out of control, even after six consecutive rate hikes by policymakers.

Trading recommendations

Support levels: 1.1500, 1.1400
Resistance levels: 1.1669, 1.1816, 1.1901, 1.1994, 1.2035, 1.2167

From the technical point of view, the trend on the GBP/USD currency pair on the hourly time frame is bearish. At the moment, the price is trading below the moving average levels, and below the psychological level of 1.1500, the MACD indicator is negative again. It is best to look for sell trades on intraday time frames, the nearest resistance level is 1.1500. Buy trades can be considered from the support level of 1.1500 if the price consolidates above the round level.

Alternative scenario: if the price breaks out through the 1.1670 resistance level and fixes above, the uptrend will likely resume.

News feed for 2022.09.07:

– UK BOE Monetary Policy Report (m/m) at 12:00 (GMT+3);
– UK BOE Gov Bailey Speaks (m/m) at 12:00 (GMT+3).

The USD/JPY currency pair

Technical indicators of the currency pair:

Prev Open: 140.57
Prev Close: 142.78
% chg. over the last day: +1.57 %

From a fundamental point of view, the Bank of Japan is firmly committed to its soft policy through its Yield Curve Control (YCC) program, while the US Fed continues to aggressively raise interest rates in an attempt to rein in inflation. And until the BoJ starts to worry about inflation or the Fed sees that the US economy has slowed enough to suspend rate hikes, these fundamental dynamics will continue to push USD/JPY quotes up. With 2-year Treasury yields hitting 3.50%, the highest level in 15 years, there is little sign of the fundamental momentum weakening yet. But after the yen plunged sharply yesterday, the Bank of Japan said it would increase its planned bond purchases as an escalating sell-off in Treasuries puts upward pressure on global yields and weakens the yen.

Trading recommendations

Support levels: 142.83, 141.77, 141.00, 139.61, 138.78, 137.65, 136.80, 135.20
Resistance levels: 144.00, 145.00

From the technical point of view, the medium-term trend on the currency pair USD/JPY is bullish. The price is trading above the average lines, and the buyers’ pressure is still there. The MACD indicator remains positive, there is no sign of reversal. Under such market conditions, buy trades can be sought from the support level of 142.83 or 141.77, but with additional confirmation. Sell deals can be considered on the intraday time frames from the psychological level of 144.00, but only with additional confirmation, as fundamentally, USD/JPY quotes are inclined to grow.

Alternative scenario: If the price fixes below 139.61, the downtrend will likely resume.

There is no news feed for today.

The USD/CAD currency pair

Technical indicators of the currency pair:

Prev Open: 1.3134
Prev Close: 1.3149
% chg. over the last day: +0.11 %

The Bank of Canada will hold a monetary policy meeting today. The Bank of Canada is expected to raise its key rate by 75 basis points to 3.25% as another step in the fight against inflation. The focus is on whether the bank will call for further tightening or not. In its latest statement released July 13, the bank said, “The Board of Governors continues to believe that interest rates will need to be raised further, and the pace of the increase will be determined by the bank’s current assessment of the economy and inflation.” Going forward, analysts expect the BoC to pause in its October 26 policy decision.

Trading recommendations

Support levels: 1.3157, 1.3077, 1.3020, 1.2989, 1.2958, 1.2936, 1.2900
Resistance levels: 1.3220

From the point of view of technical analysis, the trend on the USD/CAD currency pair is bullish. The price is now trading above the moving averages, the MACD indicator is positive, and there is slight buying pressure. Under such market conditions, buy trades should be considered on the lower time frames from the support level of 1.3157, but only with confirmation. For sell deals, it is better to consider the resistance level of 1.3220, but only after a false breakout, as the level has already been tested, and a lot of liquidity has been formed above the level.

Alternative scenario: if the price breaks down and consolidates below the 1.3077 support level, the downtrend will likely resume.

There is no news feed for today.

By JustForex

Financial News Forex and Currency News

07 Sep

China reported a falling trade balance. EU insists on the introduction of taxes on the income of energy companies

By JustForex

The US service sector PMI Index rose to a four-month high on higher demand. The index of business activity and new orders rose to the highest levels in a year, reflecting both continued changes in purchasing habits and solid wage growth. The dollar index and Treasury yields increased sharply amid the data, with the 10-year Treasury yields rising to a new three-month high. At the close of the stock market yesterday, the Dow Jones Index (US30) decreased by 0.54%, and the S&P 500 Index (US500) fell by 0.40%. The NASDAQ Technology Index (US100) lost 0.74% on Tuesday.

According to the latest PMI survey, global manufacturing declined in August for the first time since June 2020. The decline, while very modest, reflects an increasingly widespread deterioration in manufacturing and demand conditions across both sectors and regions. Companies are also taking a more cautious approach to controlling costs and employment as the economic climate worsens. CentralBbanks are raising interest rates amid an economic slowdown that, while bearing fruit in terms of lower inflation, increases the risk of a deepening global downturn and possible recession.

The White House confirmed that the United States will not list Russia as a sponsor of terrorism. This is the final decision.

Equity markets in Europe traded without a single dynamic yesterday. German DAX (DE30) gained 0.87%, French CAC 40 (FR40) added 0.19%, Spanish IBEX 35 (ES35) was 0.26% lower, British FTSE 100 (UK100) closed on Tuesday with a 0.18% gain.

The new British Prime Minister Liz Truss outlined her top three priorities: growing the economy by cutting taxes, taking action on energy bills, and strengthening the NHS (National Health Service).

German energy giant Uniper warned Tuesday that the worst is yet to come for Europe, as worries about Russian gas supplies to Europe in the fall and winter continue to drive up prices.

The EU is pushing for national taxes on energy companies’ inflated profits to counter what European Commission President Ursula von der Leyen called “astronomical” energy bills. The planned taxes, to be discussed by EU energy ministers on Friday, would target both fossil fuel producers and low-carbon energy companies that have made super profits thanks to artificially inflated electricity prices.

The European Commission approved a proposal to suspend the visa facilitation agreement with Russia completely as of September 12.

According to the IEA, global coal consumption will rise to a record high in the near future, even though coal remains the dirtiest fuel of all the major fossil fuels. Already, global coal prices are trading at unusually high levels.

Asian markets traded flat yesterday. Japan’s Nikkei 225 (JP225) gained 0.03% yesterday, Hong Kong’s Hang Seng (HK50) ended yesterday down 0.12%, and Australia’s S&P/ASX 200 (AU200) fell by 0.38% yesterday.

Australia’s annual GDP at the end of July was 3.6% instead of the expected 3.4%. Quarterly GDP grew by 0.9% from the previous value of +0.8%. Australian stock index ASX 200 gained slightly on this news.

China’s trade balance for August was 535.91 billion yuan, compared to the expected 504.85 billion yuan, and 682.69 billion yuan last year. Exports jumped by 11.8% last month against an expected 15.7%. The country’s imports grew by 4.6% against the expected 8.7%. Markets treated the data as negative as exports and imports missed the expectations.

S&P 500 (F) (US500) 3,908.55 −15.71 (−0.40%)

Dow Jones (US30) 31,148.07 −170.37 (−0.54%)

DAX (DE40) 12,871.44 +110.66 (+0.87%)

FTSE 100 (UK100) 7,300.443 +13.01 (+0.18%)

USD Index 110.243 +0.71 (+0.64%)

Important events for today:

– Australia GDP (q/q) at 04:30 (GMT+3);
– German Industrial Production (m/m) at 09:00 (GMT+3);
– UK BoE Monetary Policy Report (m/m) at 12:00 (GMT+3);
– UK BoE Gov Bailey Speaks (m/m) at 12:00 (GMT+3);
– Eurozone GDP (q/q) at 12:00 (GMT+3);
– Canada BoC Interest Rate Decision (m/m) at 17:00 (GMT+3);
– Canada BoC Rate Statement (m/m) at 17:00 (GMT+3);
– Canada Ivey PMI (m/m) at 17:00 (GMT+3);
– US FOMC Member Mester Speaks (m/m) at 17:00 (GMT+3);
– US FOMC Member Brainard Speaks (m/m) at 19:35 (GMT+3).

By JustForex

Economics & Fundamentals Financial News

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