InvestMacro

by JustForex

The EUR/USD currency pair

Technical indicators of the currency pair:

• Prev Open: 1.1441
• Prev Close: 1.1454
• % chg. over the last day: +0.11%

ECB officials indicate that supply chain problems, rising commodity prices, and Omicron continue to impact Europe’s near-term growth prospects. Such statements, as a rule, should be regarded as that the ECB does not plan to change something in its monetary policy soon. ECB head Christine Lagarde is expected to speak today. The European currency is getting stronger now due to a decrease in the dollar index.

Trading recommendations

• Support levels: 1.1457, 1.1436, 1.1395, 1.1369, 1.1330, 1.1305, 1.1288, 1.1271
• Resistance levels: 1.1514, 1.1613, 1.1667, 1.1717

From a technical point of view, the EUR/USD trend on the hour time frame is bullish. The European currency continues to strengthen due to the decline in the dollar index. But the price has now deviated strongly from the average values; the MACD indicator indicates a divergence. For good entry longs, traders should expect a corrective movement downwards. Under such market conditions, it is better to consider sell deals from the daily resistance level of 1.1514, but with additional confirmation. Buy trades can be considered on the lower time frames from the support levels 1.1457 or 1.1436, but only with additional confirmation in the form of the buyers’ initiative.

Alternative scenario: if the price breaks down through the 1.1369 support level and fixes below, the mid-term uptrend will be broken.

News feed for 2022.01.14:

• – ECB President Lagarde’s Speech at 15:30 (GMT+2);
• – US Retail Sales (m/m) at 15:30 (GMT+2);
• – US Industrial Production (m/m) at 16:15 (GMT+2);
• – US Michigan Consumer Sentiment (m/m) at 17:00 (GMT+2);
• – US FOMC Member Williams’s Speech at 18:00 (GMT+2).

The GBP/USD currency pair

Technical indicators of the currency pair:

• Prev Open: 1.3699
• Prev Close: 1.3701
• % chg. over the last day: +0.01%

The British pound is strengthening for three main reasons. Firstly, the Bank of England raised its key interest rate in December and is likely to raise it again in February. Secondly, the 3-month LIBOR rates on the interbank lending market are two times higher than similar rates on the dollar index, and this difference is increasing now. Third, despite the reduction in the QE program, the US Fed balance sheet continues to rise, which negatively affects the dollar index.

Trading recommendations

• Support levels: 1.3667, 1.3641, 1.3581, 1.3551
• Resistance levels: 1.3708, 1.3753, 1.3786

On the hourly time frame, the GBP/USD trend is bullish. The price is steadily growing, but the MACD indicator is still signaling divergence on higher time frames. Under such market conditions, traders should consider buy positions from the support level of 1.3708 or 1.3667 but only with additional confirmation in the form of a buyers’ initiative. Sell trades can be considered on the lower time frames from the resistance level of 1.3732, but only with short targets.

Alternative scenario: if the price breaks down through the 1.3633 support level and consolidates below, the bearish scenario will likely resume.

News feed for 2022.01.14:

• – UK GDP (m/m) at 09:00 (GMT+2);
• – UK Industrial Production (m/m) at 09:00 (GMT+2);
• – UK Manufacturing Production (m/m) at 09:00 (GMT+2).

The USD/JPY currency pair

Technical indicators of the currency pair:

• Prev Open: 114.62
• Prev Close: 114.15
• % chg. over the last day: -0.41%

Investors are buying the Japanese Yen as an insurance asset due to US stock market uncertainty. Investors believe that the end of the quantitative easing program, four rate hikes, and the beginning of a nine-month Fed balance sheet reduction is so aggressive that it will limit the potential for further gains in stock indices. The dollar index reached its biggest weekly decline in eight months. At the same time, the Japanese currency is supported by good statistical data, which showed a decline in producer inflation from 9.2% to 8.5%.

Trading recommendations

• Support levels: 113.72, 114.18, 113.95
• Resistance levels: 113.99, 114.40, 115.04, 115.35, 115.64

The global trend on the USD/JPY currency pair is bearish. The price confidently broke through the priority change level and consolidated lower. The MACD indicator is in the negative zone, but there are the first signs of divergence. Buy deals are best to look from the support levels on the lower time frames near the daily support level of 113.72. Sell trades can be considered from the resistance level of 113.99 or 144.40, but only with confirmation in the form of a sellers’ initiative.

Alternative scenario: if the price fixes above 115.04, the uptrend will likely resume.

News feed for 2022.01.14:

• – Japan Producer Price Index (q/q) at 01:50 (GMT+2).

The USD/CAD currency pair

Technical indicators of the currency pair:

• Prev Open: 1.2500
• Prev Close: 1.2519
• % chg. over the last day: -0.15%

The Canadian dollar is a commodity currency, so it depends not only on the monetary policy of the Bank of Canada but also on the oil prices and the dollar index. The oil price slightly decreased yesterday, which resulted in the decrease of the Canadian dollar and growth of the USD/CAD quotes. Analysts expect the dollar index to grow soon, which will provide additional support to the quotes.

Trading recommendations

• Support levels: 1.2470, 1.2427
• Resistance levels: 1.2558, 1.2628, 1.2678, 1.2715

From a technical point of view, the USD/CAD currency pair is bearish. The price has found support on the higher time frame. And the MACD indicator began to signal a divergence on several timeframes. Under such market conditions, it is better to look for buy trades on the lower time frames from 1.2470 support level. It is best to look for sell deals from the resistance levels around the moving average or from the descending local trend line.

Alternative scenario: if the price breaks through the 1.2628 resistance level and fixes above, the downtrend is likely to be broken.

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.

by JustForex

On Thursday, major US indices closed lower amid renewed selling of technology stocks. At the same time, investors believe that the end of quantitative easing, four rate hikes, and the beginning of the Fed’s balance sheet reduction for nine months – is so aggressive that it will limit the possibilities for further growth of stock indices. By the close of the session, the S&P 500 Index (US500) decreased by 1.4%, the Dow Jones Industrial Average (US30) decreased by 0.5%, and the Nasdaq Technology Index (US100) lost 2.5%.

During the previous week, the number of new jobless claims in the US was 230,000, while analysts expected 200,000. The US producer price index increased by 0.2% in December, which is lower than the expected 0.4% growth and much slower than the 1.0% growth in November. The decline in producer inflation is the first sign of the beginning of easing and consumer inflation in the near term.

Yesterday, Meta, formerly owned by Facebook, Google-Alphabet, Amazon, Apple, and Microsoft, fell sharply, with Microsoft shares down more than 4%.

Analysts believe the US Federal Reserve will raise rates by 25 basis points at its March 16 meeting, with rates rising 25 basis points each quarter through the third quarter of 2023.

Wells Fargo analysts also predict that the Federal Reserve will raise interest rates four times this year. The balance sheet reduction, according to the analysts, will begin in the 3rd quarter of 2023.

The largest US banks (JPMorgan, Wells Fargo & Co, Citigroup, BlackRock, First Republic Bank) will report today. Analysts expect positive reports as 2021 was a successful year for the US economy.

Yesterday, Fed spokesman Evans said that inflation has been high for a longer period of time, so the Fed should act sooner. The committee needs to bring inflation down to about 2%. Evans also added that inflation was likely to be 2.5% by the end of this year.

Key points from Fed spokesman Brainard’s speech:

Yesterday, British Tesco Plc shares decreased by 0.9% before today’s report. The largest British grocery retailer predicts that operating profit from retail operations for the fiscal year will be above the previously expected range of 2.5-2.6 billion pounds ($3.43-3.57 billion) on the background of good performance during the winter holidays.

The EU cannot ban the launch of Nord Stream 2, but the start is postponed due to the situation between Russia and Ukraine.

Asian stock indices are declining in trading on Friday, following the negative dynamics of US indices. Japan’s Nikkei (JP225) decreased by 1.28%, Hong Kong’s Hang Seng (HK50) decreased by 0.3%, and Australia’s ASX 200 (AU200) lost 1.08%. Statistics from China showed that China’s 2021 foreign trade surplus peaked at $676.43 billion, breaking the previous record of $593.9 billion in 2015. But month-to-month dynamics showed a slowdown in exports and imports. Analysts believe that strict restrictive measures to curb COVID-19 outbreaks and a real estate slump are two of the problems China will face in 2022 after an initial economic recovery.

Main market quotes:

S&P 500 (F) (US500) 4,659.03 −67.32 (−1.42%)

Dow Jones (US30) 36,113.62 −176.70 (−0.49%)

DAX (DE40) 16,031.59 +21.27 (+0.13%)

FTSE 100 (UK100) 7,563.85 +12.13 (+0.16%)

USD Index 94.87 −0.04 (−0.04%)

• – Japan Producer Price Index (q/q) at 01:50 (GMT+2);
• – UK GDP (m/m) at 09:00 (GMT+2);
• – UK Industrial Production (m/m) at 09:00 (GMT+2);
• – UK Manufacturing Production (m/m) at 09:00 (GMT+2);
• – ECB President Lagarde’s Speech at 15:30 (GMT+2);
• – US Retail Sales (m/m) at 15:30 (GMT+2);
• – US Industrial Production (m/m) at 16:15 (GMT+2);
• – US Michigan Consumer Sentiment (m/m) at 17:00 (GMT+2);
• – US FOMC Member Williams’s Speech at 18:00 (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.

By Orbex

USDCHF tests daily support

The US dollar plunged after December’s CPI slowed down to 0.5% from 0.8% in November.

Despite a swift recovery from the daily support at 0.9100, price action came under pressure once again at December’s supply area (0.9280). The dive below 0.9180 then 0.9140 is a sign of liquidation as buyers rush to the exit.

As the greenback revisits the critical support at 0.9100, an oversold RSI may attract some buying interest. The former demand area around 0.9200 is now the first resistance level.

XAUUSD looks to break out

Gold edged higher as the US dollar softened across the board.

The precious metal has met stiff selling pressure in the supply zone around 1830. This level used to be a support from last November’s sell-off.

The recovery above the psychological level of 1800 shows the bulls’ commitment to keeping the price afloat. A break above the supply zone would force the sell-side to cover and trigger an extended rally towards the previous peak at 1870.

On the downside, 1800 has turned into a fresh support.

USOIL continues upward

WTI crude climbed higher after a larger-than-expected fall in US inventories. A close above the daily resistance at 79.00 was a strong bullish sign.

Following a brief pause, the rally accelerated above 80.40. Sentiment remains upbeat and the bulls are keen to buy the dip during a pullback. A breach above 82.20 would clear the path to the peak at 85.00.

An overbought RSI may cause a temporary retreat. In that case, trend-followers could be looking to jump in near the closest support at 81.20.

Article 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

Article By RoboForex.com

EURUSD, “Euro vs US Dollar”

EURUSD is trading at 1.1440; the instrument is moving above Ichimoku Cloud, thus indicating an ascending tendency. The markets could indicate that the price may test Tenkan-Sen and Kijun-Sen at 1.1395 and then resume moving upwards to reach 1.1525. Another signal in favour of a further uptrend will be a rebound from the support level. However, the bullish scenario may no longer be valid if the price breaks the cloud’s downside border and fixes below 1.1275. In this case, the pair may continue falling towards 1.1185.

USDJPY, “US Dollar vs Japanese Yen”

USDJPY is trading at 114.62; the instrument is moving below Ichimoku Cloud, thus indicating a descending tendency. The markets could indicate that the price may test Tenkan-Sen and Kijun-Sen at 115.05 and then resume moving downwards to reach 113.35. Another signal in favour of a further downtrend will be a rebound from the descending channel’s upside border. However, the bearish scenario may no longer be valid if the price breaks the cloud’s upside border and fixes above 116.15. In this case, the pair may continue growing towards 117.05.

USDCAD, “US Dollar vs Canadian Dollar”

USDCAD is trading at 1.2500; the instrument is moving below Ichimoku Cloud, thus indicating a descending tendency. The markets could indicate that the price may test the cloud’s downside border at 1.2555 and then resume moving downwards to reach 1.2365. Another signal in favour of a further downtrend will be a rebound from the descending channel’s upside border. However, the bearish scenario may no longer be valid if the price breaks the cloud’s upside border and fixes above 1.2645. In this case, the pair may continue growing towards 1.2735.

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.

Article By RoboForex.com

EURUSD, “Euro vs US Dollar”

Having completed the ascending wave at 1.1452, EURUSD is consolidating below this level. Possibly, the pair may grow to reach the short-term upside target at 1.1457 and then start a new correction towards 1.1363. Later, the market may form one more ascending structure with the target at 1.1506.

GBPUSD, “Great Britain Pound vs US Dollar”

GBPUSD is still growing and may soon reach 1.3722. After that, the instrument may correct towards 1.3627 and then start another growth with the target at 1.3760.

USDRUB, “US Dollar vs Russian Ruble”

USDRUB is consolidating around 74.66. Possibly, today the pair may break the range to the downside and resume trading downwards with the target at 74.07. Later, the market may correct to return to 74.66 and then form a new descending structure to reach 74.00.

USDJPY, “US Dollar vs Japanese Yen”

After completing the descending wave at 114.90 and breaking it to the downside, USDJPY is still falling towards 114.16. Later, the market may start another correction with the target at 115.60.

USDCHF, “US Dollar vs Swiss Franc”

Having finished the descending wave at 0.9130, USDCHF is expected to correct towards 0.9181. After that, the instrument may resume trading downwards with the target at 0.9090.

AUDUSD, “Australian Dollar vs US Dollar”

AUDUSD has completed the ascending wave at 0.7288. Today, the pair may correct to reach 0.7212 and then resume growing with the target at 0.7333.

BRENT

Brent has completed the ascending structure at 85.00 and may later correct towards 80.50. After that, the instrument may form one more ascending structure to reach 90.00 and then start another correction with the target at 75.00.

XAUUSD, “Gold vs US Dollar”

Gold continues growing towards 1830.30. After that, the instrument may correct to reach 1800.00 and then start another growth with the target at 1900.00.

S&P 500

After finishing the ascending structure at 4747.0, the S&P index is correcting towards 4698.9 and may later resume growing with the target at 4845.5.

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.

by JustForex

The EUR/USD currency pair

Technical indicators of the currency pair:

• Prev Open: 1.1366
• Prev Close: 1.1441
• % chg. over the last day: +0.66%

Yesterday, at the end of the day, the EUR/USD quotes grew sharply against the background of the sharp decline in the USD index. However, investors should understand that this growth of the Euro is temporary, as the monetary policy of the US central bank and the ECB are now almost on different poles. The ECB keeps on actively stimulating the economy, though at a slower pace. The US Federal Reserve is already planning 3-4 interest rate hikes from March of this year, which gives clear support to the dollar index.

Trading recommendations

• Support levels: 1.1395, 1.1369, 1.1330, 1.1305, 1.1288, 1.1271
• Resistance levels: 1.1436, 1.1535, 1.1613, 1.1667, 1.1717

From a technical point of view, the EUR/USD on the hour time frame is bullish. The European currency is strengthening rapidly. However, the price is now strongly deviating from its averages, so for good entry longs, traders should expect a corrective movement downwards. Under such market conditions, it is better to consider sell deals after the price returns under the level of 1.1436, but with additional confirmation. Buy trades can be considered on the lower time frames from the support level 1.1395, but only with additional confirmation in the form of the buyers’ initiative.

Alternative scenario: if the price breaks down through the 1.1330 support level and fixes below, the mid-term uptrend will be broken.

News feed for 2022.01.13:

• – US Initial Jobless Claims (w/w) at 15:30 (GMT+2);
• – US Producer Price Index (m/m) at 15:30 (GMT+2);
• – US FOMC Member Brainard’s Speech at 17:00 (GMT+2).

The GBP/USD currency pair

Technical indicators of the currency pair:

• Prev Open: 1.3635
• Prev Close: 1.3700
• % chg. over the last day: +0.48%

The British pound is strengthening for two main reasons. Firstly, the Bank of England raised its key interest rate in December and is likely to raise it again in February. Secondly, the 3-month Libor rates on the interbank lending market are two times higher than similar rates on the dollar index, and this difference is increasing now. Analysts believe the British pound is aiming for 1.38 per US dollar since that is the price area from which the pound was falling when investors were disappointed by the Bank of England’s reluctance to raise the interest rate last fall.

Trading recommendations

• Support levels: 1.3667, 1.3641, 1.3581, 1.3551
• Resistance levels: 1.3708, 1.3753, 1.3786

On the hourly time frame, the GBP/USD trend is bullish. The price is steadily growing, but the MACD indicator is still signaling divergence on higher time frames. Under such market conditions, traders should consider buy positions from the support level of 1.3667 or 1.3641 but only with additional confirmation in the form of a buyers’ initiative. Sell trades can be considered on the lower time frames from the resistance level of 1.3708, but only with short targets.

Alternative scenario: if the price breaks down through the 1.3581 support level and consolidates below, the bearish scenario will likely resume.

There is no news feed for today.

The USD/JPY currency pair

Technical indicators of the currency pair:

• Prev Open: 115.28
• Prev Close: 114.62
• % chg. over the last day: -0.57%

Statistics suggest that business sentiment among Japan’s working class is increasing, while confidence among retailers is also rising ahead of the holidays. The economy is picking up thanks to a relatively low number of coronavirus cases. But it should be noted that the monetary policy of the central bank of Japan and the US Federal Reserve are now diametrically opposed, so the strengthening of the Japanese yen should be associated with a temporary decline in the dollar index. The analysts see growth in USDJPY quotes in 2022.

Trading recommendations

• Support levels: 114.40, 114.18, 113.95
• Resistance levels: 114.94, 115.09, 115.35, 115.64

The global USD/JPY currency pair trend has changed to bearish. The price confidently broke through the priority change level and consolidated lower. The MACD indicator has become negative without any signs of reversal. Buy deals are best to look from the support levels on the lower time frames near the daily support level. Sell trades can be considered from the resistance level of 114.94, but only with confirmation in the form of a sellers’ initiative.

Alternative scenario: if the price fixes above 115.35, the uptrend will likely resume.

There is no news feed for today.

The USD/CAD currency pair

Technical indicators of the currency pair:

• Prev Open: 1.2570
• Prev Close: 1.2505
• % chg. over the last day: -0.52%

The Canadian dollar is a commodity currency, so it depends not only on the monetary policy of the Bank of Canada but also on the oil prices and the dollar index. Oil prices continue to rise, while the dollar index declined sharply on US CPI news yesterday. As a result, the Canadian dollar has strengthened substantially. Once the Fed starts to raise interest rates and/or reduce the Fed balance sheet, the dollar index will start to strengthen, which will cause oil prices to fall and the USD/CAD to rise.

Trading recommendations

• Support levels: 1.2502
• Resistance levels: 1.2558, 1.2628, 1.2678, 1.2715

From a technical point of view, the USD/CAD currency pair is bearish. The price is steadily declining. But the MACD indicator began to signal a divergence on several timeframes. Under such market conditions it is better to look for buy trades on the lower time frames from 1.2503. It is best to look for sell deals from the resistance levels around the moving average or from the descending local trend line.

Alternative scenario: if the price breaks through the 1.2678 resistance level and fixes above, the downtrend will likely to be broken.

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.

By Orbex

In the long term, the formation of the NZDUSD currency pair hints at a cycle zigzag pattern, which consists of three main sub-waves a-b-c.

On the current chart, we see the second half of a major correction wave b of the cycle degree. It seems to be complete, taking the form of a primary triple zigzag Ⓦ-Ⓧ-Ⓨ-Ⓧ-Ⓩ.

After the completion of the correction pattern, the market turned around, and we saw the development of the initial part of the cycle wave c. This wave is likely to take the form of a simple 5-wave impulse, as shown in the chart, consisting of five primary sub-waves ①-②-③-④-⑤.

The first two primary sub-waves ①-② have ended. The end of wave ③ could be at the previous maximum of 0.722.

Alternatively, the formation of wave b of the cycle degree can continue. Therefore, the primary wave Ⓩ could be a triple (W)-(X)-(Y)-(X)-(Z) zigzag of the intermediate degree.

The first four parts of the intermediate pattern have visibly ended. Then the price could begin to decline in the final intermediate wave (Z).

Wave (Z) could take the form of a minor triple zigzag W-X-Y-X-Z.

The fall of the exchange rate in the alternative could reach the level of 0.640. At that level, primary wave Ⓩ will be at 161.8% of primary wave Ⓨ.

Article 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

By Orbex

GBPUSD rally gains traction

The US dollar fell after the Fed Chair’s remark that no decision has been made on quantitative tightening. The pair showed some weakness near the daily resistance at 1.3600.

The RSI’s double top in the overbought area led some buyers to take chips off the table. However, a follow-up close above the resistance indicates that the bulls are still in control of the direction.

Sentiment remains upbeat and 1.3700 from the start of the November sell-off would be the next target. 1.3570 is a fresh support in case of a pullback.

NZDUSD bounces off major support

The New Zealand dollar recovers as risk appetite returns following Jerome Powell’s testimony.

The previous rebound towards 0.6830 met strong selling pressure. Its failure to achieve a new high suggests that the bearish bias lingers. The drop below 0.6740 further weighs on the kiwi. A bounce could still be an opportunity to sell into strength.

The bulls need to clear 0.6835 in order to turn the tide, and 0.6730 is a fresh support. A bearish breakout may test the base of December’s bounce at 0.6700.

EURJPY maintains uptrend

The euro recoups losses as traders dump safe-haven currencies. The fall below 130.80 has shaken out some weak hands.

Nonetheless, the upward bias remains intact after the single currency saw solid demand over the psychological level of 130.00. The RSI’s oversold situation compounded the attractiveness of the discount.

A rise above 131.60 would bring in momentum traders and clear the path for an extended rally to 132.55 near last October’s peak. 129.10 is the second line of defence in case of a deeper retracement.

Article 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

Article By RoboForex.com

GBPUSD, “Great Britain Pound vs US Dollar”

As we can see in the H4 chart, GBPUSD has reached 61.8% fibo after convergence on MACD and may boost its growth towards 76.0% fibo at 1.3672. After that, the pair may start a new correction to the downside before attacking the high at 1.3824. The key support is at 1.3160.

The H1 chart shows a more detailed structure of divergence on MACD and potential correctional targets – 23.6%, 38.2%, 50.0%, and 61.8% fibo at 1.3554, 1.3482, 1.3422, and 1.3364 respectively.

EURJPY, “Euro vs. Japanese Yen”

As we can see in the H4 chart, having completed a slight correction, EURJPY is moving upwards; it may soon update the local high and continue growing to reach 76.0% fibo at 132.02. After testing the high, the asset may start a new correction to the downside before attacking the high at 133.48. The support remains at the low at 127.38.

The H1 chart shows that the pair may is growing towards the local high at 131.60. If the asset fails to break it, the price may start a new short-term decline to reach 38.2%, 50.0%, and 61.8% fibo at 129.99, 129.49, and 128.99 respectively.

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.

Article By RoboForex.com

USDJPY, “US Dollar vs. Japanese Yen”

As we can see in the H4 chart, USDJPY has rebounded from the resistance at 8/8. In this case, the price is expected to break 7/8 and correct downwards to reach the support at 6/8. However, this scenario may no longer be valid if the price breaks 8/8 to the upside. After that, the instrument may reverse and grow towards the resistance at +2/8.

In the M15 chart, the pair may break the downside line of the VoltyChannel indicator and, as a result, continue falling.

USDCAD, “US Dollar vs Canadian Dollar”

In the H4 chart, USDCAD is trading below the 200-day Moving Average, thus indicating a descending tendency. In this case, the price is expected to test 1/8, break it, and continue falling towards the support at 0/8. Still, this scenario may no longer be valid if the price breaks the resistance at 2/8 to the upside. After that, the instrument may correct upwards to reach 4/8.

As we can see in the M15 chart, the pair has broken the downside line of the VoltyChannel indicator and, as a result, may continue trading downwards.

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.