Archive for Forex and Currency News

The Analytical Overview of the Main Currency Pairs on 2021.11.26

by JustForex

The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.1196
  • Prev Close: 1.1205
  • % chg. over the last day: +0.08%

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.

Trading recommendations
  • Support levels: 1.1168
  • Resistance levels: 1.1256, 1.1386, 1.1436, 1.1535, 1.1613, 1.1667, 1.1717

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.

EUR/USD
News feed for 2021.11.26:
  • – Eurozone ECB President Lagarde’s Speech at 10:00 (GMT+2).

The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.3323
  • Prev Close: 1.3320
  • % chg. over the last day: -0.02%

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.

Trading recommendations
  • Support levels: 1.3307
  • Resistance levels: 1.3360, 1.3434, 1.3507, 1.3575, 1.3685, 1.3748

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.

Alternative scenario: if the price breaks out through the 1.3507 resistance level and consolidates above, the bullish scenario will likely resume.

GBP/USD
There is no news feed for today.

The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 115.41
  • Prev Close: 115.31
  • % chg. over the last day: -0.09%

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.

Trading recommendations
  • Support levels: 114.38, 113.79, 113.32, 112.87, 112.30
  • Resistance levels: 115.15, 115.50

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.

USD/JPY
There is no news feed for today.

The USD/CAD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.2657
  • Prev Close: 1.2646
  • % chg. over the last day: -0.09%

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.

Trading recommendations
  • Support levels: 1.2646, 1.2598, 1.2571, 1.2483, 1.2416, 1.2388
  • Resistance levels: 1.2729

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.

USD/CAD
There is no news feed for today.

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.

Forex Technical Analysis & Forecast 26.11.2021

Article By RoboForex.com

EURUSD, “Euro vs US Dollar”

After completing the correctional wave at 1.1228, EURUSD is consolidating below this level. If later the price breaks this range to the downside, the market may resume trading downwards to reach 1.1180; if to the upside – continue the correction with the target at 1.1257.

EURUSD
Risk Warning: the result of previous trading operations do not guarantee the same results in the future

GBPUSD, “Great Britain Pound vs US Dollar”

GBPUSD is still falling towards 1.3295. Later, the market may start a new correction to reach 1.3350 and then resume trading downwards with the target at 1.3290.

GBPUSD
Risk Warning: the result of previous trading operations do not guarantee the same results in the future

USDRUB, “US Dollar vs Russian Ruble”

USDRUB is still consolidating around 74.70. If later the price breaks this range to the downside, the market may resume trading downwards to reach 74.00; if to the upside – form one more ascending structure with the target at 75.50.

USDRUB
Risk Warning: the result of previous trading operations do not guarantee the same results in the future

USDJPY, “US Dollar vs Japanese Yen”

USDJPY has finished the correctional wave at 114.60. Possibly, the pair may start a new growth with the target at 115.70 and then resume falling to reach 114.50.

USDJPY
Risk Warning: the result of previous trading operations do not guarantee the same results in the future

USDCHF, “US Dollar vs Swiss Franc”

After completing the correction at 0.9316, USDCHF is expected to grow and reach 0.9383. Later, the market may start another decline with the target at 0.9315.

USDCHF
Risk Warning: the result of previous trading operations do not guarantee the same results in the future

AUDUSD, “Australian Dollar vs US Dollar”

After forming a new consolidation range around 0.7190 and breaking it to the downside, AUDUSD has completed the descending wave at 0.7138. Possibly, today the pair may continue trading downwards with the target at 0.7107.

AUDUSD
Risk Warning: the result of previous trading operations do not guarantee the same results in the future

BRENT

After breaking the consolidation range to the downside, Brent is expected to continue falling towards 78.00. Later, the market may grow to reach 80.00 and then resume trading downwards with the target at 77.40.

BRENT
Risk Warning: the result of previous trading operations do not guarantee the same results in the future

XAUUSD, “Gold vs US Dollar”

Gold has completed the ascending wave at 1800.80. Today, the metal may resume trading downwards to reach 1789.0 and then form one more ascending structure with the target at 1813.30.

GOLD
Risk Warning: the result of previous trading operations do not guarantee the same results in the future

S&P 500

After rebounding from 4720.0 to the downside, the S&P index has completed the descending structure at 4652.0; right now, it is consolidating around the latter level. If later the price breaks this range to the downside, the market may resume trading downwards 4596.6.

S&P 500

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.

The euro is plunging – and probably won’t bounce back soon

By Keith Pilbeam, City, University of London 

The euro has weakened against the US dollar since the beginning of 2021, from around US$1.23 to its current exchange rate of US$1.13. That’s a fall of about 9%, which is significant, especially since these are the two major currencies of the world. The drop has also intensified in November, falling 3% since the turn of a month, which has seen violence in European capitals over COVID restrictions, migrant problems at the Belarus-Poland border and Russian troops amassing on the border of Ukraine.

The decline should be seen in a broader context, though. The euro is still stronger than a couple of years ago, when it was about US$1.10. It also went through some heavy weekly volatility from February to April 2020 in the early part of the COVID pandemic, bouncing between about US$1.07 and US$1.13 at a time when lots of investors were fleeing to the US dollar for safety and there was much uncertainty about what lockdowns would mean.

Euro vs US dollar chart

Euro vs dollar chart
Trading View

Explaining currency movements on a weekly or even monthly basis is well known to be extremely difficult, especially when it comes to major economies like the US and the countries in the eurozone. But certainly we need to look at what is happening in both regions and not just one or the other. Using this simple idea, there are several explanations for the recent euro depreciation.

Inflation differences

The first explanation relates to the Federal Reserve and the European Central Bank (ECB) stimulating their economies using quantitative easing (QE), which is essentially creating money to buy financial assets such as government bonds from banks and other major investors. Both central banks have been doing this extensively since the start of the pandemic.

However, with annual inflation in the US now reaching a serious level of 6.2%, compared with a less troublesome 4.1% in the eurozone, the feeling is that the Fed will end its asset purchases sooner. This is because increasing the money supply has the potential to stoke inflation. Indeed, the Fed has recently already started “tapering” or slowing down the rate of QE with a view to stopping it in the second half of 2022. On the other hand, the ECB has been discussing a replacement for its US$2.2 trillion (£1.7 trillion) QE programme when it ends in March 2022.

Connected to this is an increasing expectation that the US may also have to begin a series of rises to interest rates from the middle of 2022 to curb inflation, while ECB president Christine Lagarde has just made it clear that the ECB is unlikely to start raising rates until at least 2023. These emerging differences in the monetary-policy stances of the US and eurozone have clearly favoured a strengthening of the dollar (since QE and lower interest rates tend to make a currency depreciate).

COVID and politics

A second pivotal factor has been the recent relative strength of the US economy in its recovery from the pandemic compared with the eurozone. In 2021, the US is forecast by the International Monetary Fund to grow 6% compared to 5% in the eurozone, while in 2022 they are respectively expected to grow 5.2% and 4.3%. Again, this points to dollar strength.

More COVID lockdowns in the US seem unlikely (even though cases are rising again), though not in the eurozone area, where the rate of infections has been picking up sharply in recent weeks in countries like Germany, France, the Netherlands, Austria and Belgium. Austria is now back in lockdown, and other eurozone countries could follow suit.

A final driver of the recent strength of the dollar is greater political stability. The Biden administration still has three years in office and has recently succeeded in passing its US$1.7 trillion Build Back Better stimulus package.

By contrast, countries in the eurozone face a period of greater political instability. Germany is seeing the 16 years of relative stability under Angela Merkel coming to an end. The question of whether Emmanuel Macron will succeed in the French elections in April 2022 against Marine Le Pen is also weighing on investors’ minds, as are the continued trade frictions between the EU and the UK over Brexit.

It is happening at a time when Russia’s build-up of forces close to Ukraine raises the prospect of military conflict on the edge of Europe – not to mention that Russia has already been limiting the region’s gas supply and one of its main pipelines runs through Ukraine. In addition, there have been significant anti-vaccine protests in France, the Netherlands, Germany and Italy, and European governments are now under intense pressure to bring their spending under control.

So while short-term currency movements are very difficult to predict, there are many reasons to believe that the recent period of euro weakness will continue. This is making imports to the eurozone more expensive – not least energy – and while it has some benefits for a major exporter like Germany, it also undermines the credibility of the eurozone as a global economic force.

The gamechanger might be if the ECB acknowledged that there is an inflation problem that needs to be tackled, by ending its experiment with QE and beginning the process of raising interest rates. That, however, does not look likely any time soon.The Conversation

About the Author:

Keith Pilbeam, Professor of Economics, City, University of London

This article is republished from The Conversation under a Creative Commons license. Read the original article.

USDCAD Impulsive Trend Could Weigh On Prices

By Orbex

The formation of the USDCAD currency pair suggests the development of a large correction trend. This takes the form of a standard Ⓐ-Ⓑ-Ⓒ zigzag.

At the end of October, the downward movement of the market ended within the primary correction Ⓑ. This took the form of a bearish double zigzag (W)-(X)-(Y) of the intermediate degree. Then we saw an impulsive growth within the primary wave Ⓒ.

Currently, impulse wave (1) and the intermediate correction wave (2) have ended. In the near future, the upward movement of the price in the intermediate sub-waves (3)-(4)-(5) is likely to continue.

The final of the entire primary impulse wave is possible around the level of 1.295. Thus, there is a good chance to make money on purchases, in order to take profit at the end of the wave Ⓒ.

USDCAD

An alternative scenario shows the primary double Ⓦ-Ⓧ-Ⓨ zigzag is being constructed, with the actionary wave Ⓨ under development.

Wave Ⓨ can take the form of an (A)-(B)-(C) zigzag of the intermediate degree. So far, the first impulse wave (A) has ended. To confirm the alternative, we should see a decline in the currency pair within the intermediate correction (B).

Most likely, if the market goes down, the price will drop to 1.246. At that level, wave (B) will be at 61.8% of wave (A). After that, the final impulse wave (C) could lead the market higher than 1.296.


Orbex-LogoArticle by Orbex

Orbex is a fully licensed broker that was established in 2011. Founded with a mission to serve its traders responsibly and provides traders with access to the world’s largest and most liquid financial markets. www.orbex.com

Intraday Market Analysis – USD Keeps High Ground

By Orbex

USDCHF tests key resistance

USDCHF

The US dollar consolidates gains after the FOMC minutes signaled for rate hikes if inflation stays high. A bullish MA cross on the daily chart is strong evidence for an upbeat sentiment.

The pair is testing last September’s peak at 0.9365. A breakout would flush the short interest out and attract momentum buyers.

An extended rally may carry the price to April’s high at 0.9470, a major resistance from the daily chart. An overbought RSI may cause a brief pullback. 0.9300 from the previous consolidation would be a new support.

EURGBP remains under pressure

EURGBP

The euro struggles due to fears of a new round of covid lockdowns across the continent.

The fall below the daily support at 0.8400 has put the few buyers under pressure. A faded rebound suggests that the bears are still in control of the direction.

The RSI’s bullish divergence points to a deceleration in the sell-off. However, in the absence of confirmation, the current sideways action could be a mere consolidation. Buyers may remain cautious unless offers around 0.8435 get lifted. A break below 0.8380 may send the pair to 0.8300.

XAUUSD lacks support

XAUUSD

Gold extended losses as expectations for higher interest rates grew. The break below 1823 has forced leveraged buyers to liquidate their positions, stirring up volatility in the process.

The price is heading towards the origin of the November rally at 1760. A bullish RSI divergence shows that the downward pressure could be waning.

As the RSI dips into the oversold territory, buyers have started to bid again from the demand area. 1812 is a key hurdle to lift or the metal could plunge to September’s low at 1730.


Orbex-LogoArticle by Orbex

Orbex is a fully licensed broker that was established in 2011. Founded with a mission to serve its traders responsibly and provides traders with access to the world’s largest and most liquid financial markets. www.orbex.com

How Many Indicators Should You Use When Trading Forex?

By Orbex

– When beginner traders start exploring a good trading platform, they probably are a bit daunted by all the different indicators that are available. The most popular trading platform MT4 comes with a standard several dozen.

How do you know which ones to use? Are they all worth it? Do you really need to know all of them and what they do?

The thing is, picking the right indicators is part of the art of becoming a trader. Unfortunately for beginner traders, that makes it harder for them to get advice on how to pick the best set of indicators.

Some traders use a lot, some use very few. Analysts, who like having as much information as possible, often recommend using several indicators at once. Brokers who want to help their clients make better decisions will frequently say you should use several indicators, and not rely on just one.

And they are right, for good reason

The thing is, it’s quite possible to have too many indicators. In turn, this can lead to a thing that many traders call “analysis paralysis”.

The point of indicators is to help cut through the market “noise”, so you pick the right points to trade. If you have too many indicators, they start to become noise themselves and make it harder for you to trade.

Part of the theory of using several indicators at once is to find confirmation on signals. If one indicator gives you a signal, and another doesn’t, then that trade is likely to be less sure than if two different indicators are giving the same signal. If you have three indicators giving you the same signal, then it’s even stronger.

Too many instructions

On the other hand, it is less likely for three independent indicators to give you an identical signal. That said, the likelihood of getting the same signal keeps dropping the more indicators you add. In fact, if you have a dozen indicators that you’re waiting for all of them to give you the same signal… well, that just might not ever happen. And you won’t actually get any trading done.

So, it comes back to risk management, which really is the core of successful trading. If you use more indicators, then you are likely to get stronger signals, but less often. That is, assuming these are independent indicators and not indicators that are based on the same mechanic, like different moving averages.

If you want to trade more often, then you might want to use fewer indicators. However, that means your signals are weaker, and your trades are less likely to work out.

It’s all about balance

In the end, the number of indicators you should use is a function of your strategy.

A lot of people will try to tell you to use more or fewer indicators. And there are plenty who want to sell you this awesome indicator that always works (but they need to sell it to you for some reason because they aren’t using it to become bazillionaires themselves).

The reality is that you should use indicators depending on your risk profile and trading style.

There isn’t a “right” or “wrong” number, so you shouldn’t let someone deter you based simply on how you don’t use “enough” indicators. You might instead adjust your risk profile to improve your profitability. Alternatively, having more indicators than someone else might work better for you because you take longer-term trades which offer better risk ratios.

Just be aware that when we analysts say you should use several indicators, it usually just means that we want you to trade safely. It doesn’t necessarily mean that you should go out and get an encyclopedic knowledge of all the indicators.


Orbex-LogoArticle by Orbex

Orbex is a fully licensed broker that was established in 2011. Founded with a mission to serve its traders responsibly and provides traders with access to the world’s largest and most liquid financial markets. www.orbex.com

Japanese Candlesticks Analysis 24.11.2021 (EURUSD, USDJPY, EURGBP)

Article By RoboForex.com

EURUSD, “Euro vs US Dollar”

As we can see in the H4 chart, the asset has formed several reversal patterns, including Hammer and Doji, close to the support level. At the moment, EURUSD may reverse and start a new correctional impulse. In this case, the upside correctional target may be at 1.1305. Later, the market may rebound from the resistance area and resume the descending tendency. However, an alternative scenario implies that the price may continue falling to reach 1.1180 without correcting towards the resistance area.

EURUSD
Risk Warning: the result of previous trading operations do not guarantee the same results in the future

USDJPY, “US Dollar vs Japanese Yen”

As we can see in the H4 chart, USDJPY has formed several reversal patterns, for example, Shooting Star, while testing the resistance area. At the moment, USDJPY may reverse and start a new wave to the downside towards the support level. In this case, the downside target may be at 114.60. At the same time, an opposite scenario implies that the price may continue growing to reach 115.50 without correcting and reaching the support level.

USDJPY
Risk Warning: the result of previous trading operations do not guarantee the same results in the future

EURGBP, “Euro vs Great Britain Pound”

As we can see in the H4 chart, after forming several reversal patterns, such as Hammer and Inverted Hammer, near the support level, EURGBP is reversing and may start another growth towards the resistance area. In this case, the upside target may be at 0.8435. Later, the market may test the area, rebound from it, and resume the descending tendency. Still, there might be an alternative scenario, according to which the asset may continue falling to reach 0.8360 without correcting towards the resistance area.

EURGBP

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.

Murrey Math Lines 24.11.2021 (USDJPY, USDCAD)

Article By RoboForex.com

USDJPY, “US Dollar vs. Japanese Yen”

As we can see in the H4 chart, USDJPY is trading above the 200-day Moving Average, thus indicating an ascending tendency. Having broken 7/8 and fixed above it, the price is expected to continue growing to reach the resistance at 8/8. However, this scenario may no longer be valid if the price breaks 7/8 to the downside. After that, the instrument may reverse and correct towards the support at 6/8.

USDJPYH4
Risk Warning: the result of previous trading operations do not guarantee the same results in the future

In the M15 chart, the pair may break the upside line of the VoltyChannel indicator and, as a result, continue its growth.

USDJPY_M15
Risk Warning: the result of previous trading operations do not guarantee the same results in the future

USDCAD, “US Dollar vs Canadian Dollar”

As we can see in the H4 chart, USDCAD is re-testing the resistance at 8/8. In this case, the price is expected to rebound from this level and then resume falling towards the support at 6/8. Still, this scenario may no longer be valid if the price breaks 8/8 to the upside. After that, the instrument may grow to reach the resistance at +1/8.

USDCAD_H4
Risk Warning: the result of previous trading operations do not guarantee the same results in the future

In the M15 chart, the pair may break the downside line of the VoltyChannel indicator and, as a result, continue falling to reach 6/8 from the H4 chart.

USDCAD_M15

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.

AUDUSD Triple Zigzag Hints At Bullish Growth

By Orbex

AUDUSD

The AUDUSD currency pair suggests the development of a bearish intervening wave x of the cycle degree. It hints at a triple zigzag Ⓦ-Ⓧ-Ⓨ-Ⓧ-Ⓩ.

At the time of writing, a bullish intervening wave Ⓧ is formating, taking the form of an intermediate double (W)-(X)-(Y) zigzag. Currently, the intermediate intervening wave (X), followed by the development of the final actionary wave (Y), has begun.

Wave (Y) can take the form of a double zigzag W-X-Y of the minor degree. The W and X sub-waves have already completed their pattern. And each of them is a triple zigzag of the minute degree.

Thus, in the near future, the rate could increase in the minor wave Y towards the 0.758 area. At that level, intermediate waves (W) and (Y) will be equal.

AUDUSD

Let’s consider an alternative scenario in which the formation of the primary intervening wave Ⓧ has already come to an end. It took the form of an intermediate double zigzag.

Now the market is in the final part of the primary wave Ⓩ and most likely, it is a double zigzag. This wave can complete the minor standard zigzag near 0.695 level, as shown on the chart.

At the level of 0.695, primary wave Ⓩ will be at 76.4% of wave Ⓨ. After reaching the specified price level, the cycle intervening wave x will end. Then prices could rise within the cycle wave z above the maximum of 0.755.


Orbex-LogoArticle by Orbex

Orbex is a fully licensed broker that was established in 2011. Founded with a mission to serve its traders responsibly and provides traders with access to the world’s largest and most liquid financial markets. www.orbex.com

The Analytical Overview of the Main Currency Pairs on 2021.11.24

by JustForex

The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.1234
  • Prev Close: 1.1248
  • % chg. over the last day: +0.12%

Europe continues to face power shortages in the region. Electricity prices in some countries are approaching historic highs. The business activity index in Europe increased unexpectedly, which was a surprise to analysts who had expected a slowdown in activity, especially in the manufacturing sector. However, there are no fundamental reasons for the euro to rise now as the ECB continues to print money actively.

Trading recommendations
  • Support levels: 1.1256, 1.1168
  • Resistance levels: 1.1386, 1.1436, 1.1535, 1.1613, 1.1667, 1.1717

From a technical point of view, the EUR/USD pair is bearish on the hour time frame. The Euro continues to show weakness, but the price is narrowing in a triangle, suggesting an impulsive movement. 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 deviated strongly 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.

EUR/USD
News feed for 2021.11.24:
  • – German Ifo Business Climate (m/m) at 11:00 (GMT+2);
  • – US Prelim GDP (q/q) at 15:30 (GMT+2);
  • – US Core Durable Goods Orders (m/m) at 15:30 (GMT+2);
  • – US Initial Jobless Claims (w/w) at 15:30 (GMT+2);
  • – US PCE price index (m/m) at 17:00 (GMT+2);
  • – US New Home Sales (m/m) at 17:00 (GMT+2);
  • – US Michigan Consumer Sentiment (m/m) at 17:00 (GMT+2);
  • – US FOMC Meeting Minutes at 21:00 (GMT+2).

The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.3392
  • Prev Close: 1.3378
  • % chg. over the last day: -0.10%

In the UK, there is an increase in business activity. Data for October showed an increase in the manufacturing sector, while in the services sector, the data was negative. With expectations of an interest rate hike from the Bank of England, the British pound might be strengthened soon.

Trading recommendations
  • Support levels: 1.3360
  • Resistance levels: 1.3434, 1.3507, 1.3575, 1.3685, 1.3748

On the hourly time frame, the trend on GBP/USD is bearish. The MACD indicator has become inactive. The currency pair has formed a clear flat corridor with the range of 1.3360-1.3508. Under such market conditions, traders should consider sell positions from the upper border of the range. Buy trades should be considered only from the lower border of the range, given the buyers’ initiative.

Alternative scenario: if the price breaks out through the 1.3507 resistance level and consolidates above, the bullish scenario will likely resume.

GBP/USD
There is no news feed for today.

The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 114.87
  • Prev Close: 115.12
  • % chg. over the last day: +0.22%

Japan’s business activity index showed an improvement for October. The lifting of the restrictions has already been reflected in the economic data more than a month ago. The economic situation in Japan will improve slowly. However, the JPY will be losing its position against the USD because the Bank of Japan does not plan to cut its stimulus program at the moment.

Trading recommendations
  • Support levels: 114.38, 113.79, 113.32, 112.87, 112.30
  • Resistance levels: 115.15, 115.50

The global trend on the USD/JPY currency pair is bullish. The MACD indicator is positive, but there are the first signs of divergence. Under such market conditions, it’s better to look for buy positions from the buyers’ initiative zone near the moving average. 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.

USD/JPY
News feed for 2021.11.24:
  • – Japan Manufacturing PMI (m/m) at 02:30 (GMT+2).

The USD/CAD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.2698
  • Prev Close: 1.2668
  • % chg. over the last day: -0.23%

The Canadian dollar is a commodity currency, so the USD/CAD currency pair highly depends on the dynamics of the dollar index and oil prices. Yesterday, the dollar index was trading in a narrow range, while the oil prices increased by more than 3%, despite the possible oil reserves released by the USA, Japan, China, and India. As a result, the USD/CAD currency pair increased due to the strengthening of the Canadian dollar.

Trading recommendations
  • Support levels: 1.2646, 1.2598, 1.2571, 1.2483, 1.2416, 1.2388
  • Resistance levels: 1.2729

From a technical point of view, the trend of the USD/CAD currency is bullish. The MACD indicator has become inactive. There are signs of divergence on several time frames while indicating a weakness of buyers. Under such market conditions, it is better to look for buy trades from the support levels near the moving average since the price has strongly deviated from the average values. 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.

USD/CAD
News feed for 2021.11.24:
  • – US Crude Oil Reserves (w/w) at 17:30 (GMT+2).

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.