InvestMacro

Article By RoboForex.com

Brent

As we can see in the H4 chart, Brent is correcting upwards after attempting to reach the low 65.89. There is a possibility that the current ascending movement may attack the high at 86.63. However, if this wave fails to break the high and rebounds from it instead, the asset may start a new decline towards long-term 38.2%, 50.0%, and 61.8% fibo at 59.53, 51.20, and 42.86 respectively.

The H1 chart shows that the current correctional uptrend is trying to break 50.0% fibo again. If it succeeds, Brent may continue trading upwards to reach 61.8% and 76.0% fibo at 78.70 and 81.63 respectively.

Dow Jones

As we can see in the H4chart, after completing the descending wave, the index is steadily growing. if the asset breaks the high at 36570.0, it may continue trading upwards to reach the post-correctional extension area between 138.2% and 161.8% fibo at 37558.0 and 38172.0 respectively. Otherwise, the instrument may start a new decline towards the support at 33962.0.

In the H1 chart, divergence on MACD made the index stop falling at 61.8% fibo and start a new growth, which is heading to break the resistance at 36237.0. However, another scenario implies a reversal and a new decline towards 76.0% fibo and the low at 34508.0 and 33962.0 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.

by JustForex

The EUR/USD currency pair

Technical indicators of the currency pair:

• Prev Open: 1.1285
• Prev Close: 1.1327
• % chg. over the last day: +0.37%

The dollar index is declining amid Pfizer’s approval of a new COVID-19 drug. Investors are shifting their funds to riskier assets, which causes the stock market to rise and, consequently, the dollar index to fall. In turn, a decline in the dollar index contributes to the strength of the European currency, even despite a sharp increase in the number of COVID-19 cases in the Eurozone.

Trading recommendations

• Support levels: 1.1323, 1.1293, 1.1230, 1.1168
• Resistance levels: 1.1360, 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 still bearish. The MACD indicator has become positive, the pressure of buyers is increasing. It is better to consider sell deals from the priority change level. Buy trades can be considered on the lower time frames from the support level of 1.1293, but only with additional confirmation.

Alternative scenario: if the price breaks out through the 1.1360 resistance level and fixes above, the mid-term uptrend will likely resume.

News feed for 2021.12.23:

• – US Initial Jobless Claims (w/w) at 15:30 (GMT+2);
• – US Core Durable Goods Orders (m/m) at 15:30 (GMT+2);
• – US PCE price index (m/m) at 15:30 (GMT+2);
• – US Michigan Consumer Sentiment (m/m) at 17:00 (GMT+2);
• – US New Home Sales (m/m) at 17:00 (GMT+2);

The GBP/USD currency pair

Technical indicators of the currency pair:

• Prev Open: 1.3254
• Prev Close: 1.3349
• % chg. over the last day: +0.71%

The UK may impose additional restrictions to contain the spread of the Omicron strain. In the past 24 hours, 106,122 new infections have been reported. In the run-up to Christmas, this situation could negatively impact the British pound. It should be noted that investors’ expectations are always priced in before the official data is released. The UK GDP increased by 1.1% in Q3; 1.3% growth was expected.

Trading recommendations

• Support levels: 1.3301, 1.3272, 1.3220
• Resistance levels: 1.3365, 1.3434, 1.3507, 1.3575, 1.3685

On the hourly time frame, the trend on GBP/USD is still bullish. The weakness of the dollar index has allowed the British currency to strengthen significantly. The MACD indicator is in the positive zone with no signs of reversal, buyers’ pressure has increased. Under such market conditions, traders should consider buy positions from the 1.3272 support level but only with additional confirmation in the form of a buyers’ initiative. Sell trades can be considered from the resistance level of 1.3365, but only with additional confirmation in the form of a sellers’ initiative.

Alternative scenario: if the price breaks down through the 1.3212 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: 114.05
• Prev Close: 114.08
• % chg. over the last day: +0.03%

On Friday, Japan’s government will present its annual budget with $943 billion in spending for the fiscal year beginning next April, further adding to its heaviest debt burden. Major budget spending will be on combating COVID-19 for social security to support the rapidly aging population and the largest military spending in Japanese history to deal with threats from China. This situation will contribute to the weakening of the Japanese currency.

Trading recommendations

• Support levels: 113.95, 113.76, 113.30, 112.62, 112.30
• Resistance levels: 114.30, 115.15, 115.50

The global trend on the USD/JPY currency pair is bearish. The price failed to consolidate above the priority change level yesterday, so this level was shifted slightly higher after the price returned to the wide balance. Buy positions should be considered from the 113.76 support level, but with additional confirmation in the form of a buyers’ initiative or after the price breaks out the priority change level. Sell positions should be considered if the price makes a false breakout of 114.30 level, and returns back to the wide corridor with the 113.30-114.30 price range.

Alternative scenario: if the price rises above 114.30, the uptrend will likely resume.

News feed for 2021.12.23:

• – Japan BoJ Governor Kuroda Speaks, at 03:00 (GMT+2).

The USD/CAD currency pair

Technical indicators of the currency pair:

• Prev Open: 1.2911
• Prev Close: 1.2839
• % chg. over the last day: -0.56%

The US oil inventories decreased by 4.7 million barrels over the week. Analysts were expecting a decline of 2.8 million barrels. This was the second major drop. A supply shortage almost always pushes prices higher. The Canadian dollar is a commodity currency, which correlates strongly with oil prices. A rise in oil prices leads to a strengthening of the Canadian currency.

Trading recommendations

• Support levels: 1.2828, 1.2721, 1.2677, 1.2638
• Resistance levels: 1.2903, 1.2951

From a technical point of view, the USD/CAD currency pair trend is bullish. The MACD indicator became negative, the sellers’ pressure has increased. Under such market conditions, it is better to look for buy deals from the support levels near the moving average on the lower time frames. Sell deals should be considered from the resistance level of 1.2903, but with additional confirmation in the form of a sellers’ initiative.

Alternative scenario: if the price breaks down through the 1.2783 support level and fixes below, the downtrend will likely resume.

News feed for 2021.12.23:

• – Canada GDP (q/q) at 15:30 (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.

By Orbex

The formation of the DXY index suggests the development of a large triple zigzag, consisting of cycle waves w-x-y-x-z.

On the 1H timeframe, we can see the second half of a large average wave y. This has the form of a double zigzag Ⓦ-Ⓧ-Ⓨ of the primary degree. Apparently, this double zigzag is coming to an end. The intermediate wave (Y), which has the form of a triple zigzag, can end around the level of 97.03. At that level, wave Z will be at 61.8% of wave Y.

After reaching the level of 97.07, there is a possibility that the bears may re-target the minimum of 91.94 within the cycle wave x.

Let’s consider an alternative scenario in which the cycle wave y will take longer to form.

Perhaps its final primary wave Ⓨ will be more complex in its structure. In fact, it may take the form, of a triple zigzag consisting of intermediate sub-waves (W)-(X)-(Y)-(X)-(Z).

In that case, the market may soon complete the decline in a small reactionary intervening wave (X) in the form of a double zigzag W-X-Y. And then the bulls can push the price to the level of 99.86 in the intermediate wave (Z).

At the specified level, wave (Z) will be at 123.6% of actionary wave (Y).

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 JustForex

Yesterday, by the close of the stock exchange, the S&P 500 (US500) increased by 1.0%, the Dow Jones Industrial Average (US30) gained 0.7%, and the Nasdaq (US100) added 1.2%. Positive statistical data provided significant support to the market. The US consumer confidence index increased to 115.8 in December, well above the consensus forecast of 111.0. The US GDP growth for the quarter was 2.3% (2.1% was expected). The US existing home sales increased by 1.9% in November. Sentiment for a rebound in stocks was also boosted by news that Pfizer’s COVID-19 tablets have received emergency approval in the US. Pfizer’s “Paxlovid” is the first approved COVID-19 drug for home use.

Tesla stock jumped more than 7% after CEO Elon Musk said he sold “enough stock” to meet his goal of selling 10% of his stake in the company.

The European stock indices also rose on Wednesday. France’s CAC 40 (FR40) gained 1.2%, Germany’s DAX (DE30) added 1%, Britain’s FTSE 100 (UK100) increased by 0.6%, and Spain’s IBEX 35 (ES35) added 0.9%. In European countries, there is an increase in the number of diseases of COVID-19. In the past 24 hours, there were 106,122 new cases of infection in the UK. In Spain, in the province of Madrid, a record number of cases since the beginning of the pandemic has been recorded on Tuesday. Media report that in pharmacies ended tests on COVID-19 and health centers are overflowing with people sickened by the coronavirus. The government of Catalonia has already imposed restrictions on some businesses and public places. Portugal has imposed new restrictions on the service sector. On December 27, the French government will meet in an emergency session to consider the introduction of a “vaccine pass”. Analysts expect Eurozone statistics for the fourth quarter to be weak.

Eleven associations of European energy-intensive industries (from cement to steel and from fertilizer to paper mills) issued a joint statement warning of “unbearably high energy prices” and production stoppages. The European energy crisis continues.

Germany and Israel are preparing to introduce the 4th dose of vaccination for the population. The World Health Organization does not recommend that all children and adolescents be vaccinated against coronavirus because there is little chance of severe disease in these age groups. This follows a statement about COVID-19 booster vaccinations on the organization’s website.

The US oil inventories decreased by 4.7 million barrels for the week. Analysts were expecting a decline of 2.8 million barrels. This is the second major decline. A supply shortage almost always pushes prices up.

The dollar index is declining amid Pfizer’s approval of a new COVID-19 drug. Investors are shifting their funds to riskier assets, which causes the stock market to rise and, consequently, the dollar index to fall. In turn, a decrease in the dollar index contributes to a decline in government bond yields and higher gold and silver prices.

On Friday, Japan’s government will present its annual budget with $943 billion in spending for the fiscal year beginning next April, further adding to its heaviest debt burden. Major budget spending will be on combating COVID-19, for social security to support the rapidly aging population and the largest military spending in Japanese history to deal with threats from China. Japan’s GDP will reach a record $4.9 trillion next year.

Singapore’s consumer price index increased to 3.8% (previous value 3.2%, forecast 3.4%). This is the highest inflation rate in the last 9 years.

Meanwhile, the Chinese city of Xi’an has tightened restrictions to curb the latest outbreak of the virus. Omicron has become the dominant strain of COVID-19 in Australia, and New South Wales has a record number of cases every day.

Main market quotes:

S&P 500 (F) (US500) 4,696.56 +47.33 (+1.02%)

Dow Jones (US30) 35,753.89 +261.19 (+0.74%)

DAX (DE40) 15,593.47 +146.03 (+0.95%)

FTSE 100 (UK100) 7,341.66 +44.25 (+0.61%)

USD Index 96.09 -0.41 (-0.42%)

• – Japan BoJ Governor Kuroda Speaks, at 03:00 (GMT+2);
• – Singapore Consumer Price index (m/m) at 07:00 (GMT+2);
• – US Initial Jobless Claims (w/w) at 15:30 (GMT+2);
• – US Core Durable Goods Orders (m/m) at 15:30 (GMT+2);
• – US PCE price index (m/m) at 15:30 (GMT+2);
• – Canada GDP (q/q) at 15:30 (GMT+2);
• – US Michigan Consumer Sentiment (m/m) at 17:00 (GMT+2);
• – US New Home Sales (m/m) at 17:00 (GMT+2);
• – US Natural Gas Storage (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.

By Orbex

EURUSD tests resistance

The US dollar stalled over improved risk appetite. The pair is consolidating near June 2020’s lows. A bearish breakout would further extend the downtrend.

The euro so far has found buyers at 1.1235. The bulls need to lift offers around 1.1360, the upper band of the recent consolidation range, before they could hope for a reversal. An extended rally may send the price to 1.1460.

In the meantime, the RSI’s overbought situation could briefly limit the bullish push as intraday traders take profit near the resistance.

GBPUSD makes a bullish attempt

The sterling surged after Britain’s economy showed solid growth in Q3. A previous rebound to the supply zone near 1.3370 has put pressure on the short side.

Then the pound found bids at 1.3170. Four attempts at this key support suggest a strong interest in keeping the price steady. 1.3370 is a major hurdle as it coincides with the 30-day moving average.

A breakout could initiate a bullish reversal and propel the pound to 1.3500. An overbought RSI may cause a short pullback with 1.3240 as the closest support.

USOIL awaits breakout

WTI crude found support from a larger-than-expected decline in US inventories. Price action saw active buying above 66.00, keeping the early December rally valid in the process.

The latest rebound is testing the supply zone around 73.30, which sits along the 30-day moving average. A close above this area of interest would force the bears to cover, paving the way for a rally towards 78.00.

On the downside, 71.00 is the immediate support. And 68.50 is a second line of defense in case of a deeper correction.

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

In the long term, the GBPJPY currency pair is most likely moving within a cycle impulse. Now the third part of this impulse, wave III is under development.

The second half of the powerful impulse wave III is visible in the 1H timeframe. And the decline in the bearish correction of the primary degree may end soon. This correction takes the form of an intermediate triple zigzag.

Most likely, the price will fall to the previous low of 148.89. This was marked by the minor sub-wave W, and then we can expect a price increase in the primary wave ⑤. In turn, this wave may take the form of either an impulse or an ending diagonal.

The entire primary wave ⑤ could complete its pattern near 167.74. At that level, it will be at 61.8% of wave ③.

An alternative scenario suggests that the formation of the primary correction ④ may continue for a longer time than in the first variant. It may take the form of an intermediate double zigzag (W)-(X)-(Y).

The last actionary wave (Y) of the intermediate degree can take the form of a double combination and consist of minor sub-waves W-X-Y.

In this scenario, market participants may observe a bearish price movement within the final minor wave Y to the level of 142.76.

At that level, wave ④ will be at 61.8% along the Fibonacci lines of impulse ③.

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

XAUUSD seeks support

Gold softens as the US dollar edged higher. A surge above 1788 and then 1808 has prompted the bears to cover.

The precious metal is looking for support after the breakout stalled with an overextended RSI. A bearish MA cross may weigh on short-term sentiment.

The base of the initial breakout around 1770 is a key support. A deeper correction would lead to the daily support at 1753, a critical level to keep the rebound relevant. Gold may climb towards 1850 if the bulls succeed in pushing above 1814.

USDCAD consolidates gains

The Canadian dollar recouped some losses after better-than-expected retail sales. A break above the major daily resistance at 1.2930 has put the bulls back in control of the direction.

The RSI’s repeated overbought situation may cause a temporary pullback. Trend followers would be looking to jump in at a better price. 1.2880 is the closest support.

Sentiment would remain upbeat as long as price action is above 1.2770. A rally above the intermediate resistance at 1.2960 may trigger an extended rally towards 1.3200.

UK 100 makes a bullish attempt

The FTSE 100 recovered some ground after the Omicron sell-off. The index has found solid buying at 7110.

An oversold RSI has attracted a buying-the-dips crowd. A tentative break above 7300 suggests strong interest in keeping the market afloat. A bullish MA cross could lead to an acceleration on the upside.

7385 is a major hurdle on the daily chart. Its breach could cause a runaway rally and resume the uptrend. On the downside, 7250 is the first support, and 7110 is the second line of defense in case of weakness.

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 continues falling. Possibly, today the pair may break 1.1262 and then reach 1.1230. After that, the instrument may start a new growth to test 1.1262 from below and then resume trading downwards with the target at 1.1221.

GBPUSD, “Great Britain Pound vs US Dollar”

GBPUSD has finished the correctional structure at 1.3262. Today, the pair may resume falling to break 1.3193 and then continue trading downwards with the target at 1.3140.

USDRUB, “US Dollar vs Russian Ruble”

USDRUB continues trading downwards to reach 73.51. Later, the market may break this level and continue falling towards 72.72 or even reach the target at 72.40.

USDJPY, “US Dollar vs Japanese Yen”

USDJPY continues growing towards 114.25 and may later start a new correction to reach 113.77. After that, the instrument may resume trading upwards with the target at 114.44.

USDCHF, “US Dollar vs Swiss Franc”

USDCHF continues growing to break 0.9262. Later, the market may form one more ascending structure with the short-term target at 0.9350.

AUDUSD, “Australian Dollar vs US Dollar”

AUDUSD has finished the ascending structure at 0.7155; right now, it is falling to reach 0.7129. Later, the market may start a new growth with the target at 0.7166.

BRENT

Brent has finished the ascending structure at 74.50. Possibly, today the asset may consolidate around this level. If later the price breaks the range to the upside, the market may resume growing with the first target at 79.07. After that, the instrument may start a new correction to reach 74.00.

XAUUSD, “Gold vs US Dollar”

After completing the ascending structure at 1800.00, Gold is expected to start another decline to reach 1778.15. Later, the market may resume growing to break 1800.00 and then form one more ascending wave with the target at 1820.00.

S&P 500

The S&P index is growing towards 4667.7 and may later correct to reach 4597.0. After that, the instrument may form one more ascending wave to break 4735.0 and then continue trading upwards with the target at 4800.0.

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”

In the H4 chart, USDJPY is trading above the 200-day Moving Average, thus indicating a possible ascending tendency. In this case, the price is expected to test 5/8, break it, and continue growing to reach the resistance at 6/8. However, this scenario may no longer be valid if the price breaks 4/8 to the downside. After that, the instrument may reverse and fall towards the support at 3/8.

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

USDCAD, “US Dollar vs Canadian Dollar”

In the H4 chart, USDCAD is trading above the 200-day Moving Average, thus indicating an ascending tendency. In this case, the price is expected to test 6/8, break it, and continue growing towards the resistance at 7/8. Still, this scenario may no longer be valid if the price breaks the support at 5/8 to the downside. After that, the instrument may correct downwards to reach 4/8.

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

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.