InvestMacro

Article By RoboForex.com

USDCAD, “US Dollar vs Canadian Dollar”

As we can see in the H4 chart, after forming several reversal patterns, including Engulfing, close to the support level, USDCAD is reversing and may resume trading upwards. In this case, the upside target may be the resistance area at 1.2900. However, an alternative scenario implies that the asset may correct to reach 1.2745 before resuming its ascending tendency.

AUDUSD, “Australian Dollar vs US Dollar”

As we can see in the H4 chart, AUDUSD has formed a Shooting Star reversal pattern near the resistance area. At the moment, the asset is reversing in the form of another pullback. In this case, the downside correctional target may be the support level at 0.7100. After testing the level, the price may rebound from it and resume the ascending tendency. The upside target is at 0.7210.

USDCHF, “US Dollar vs Swiss Franc”

As we can see in the H4 chart, after testing the support area, the pair has formed several reversal patterns, for example, Inverted Hammer. At the moment, USDCHF may reverse in the form of a new rising wave towards the resistance level. In this case, the upside target may be at 0.9235. Still, there might be an alternative scenario, according to which the asset may correct to reach 0.9160 before resuming its ascending tendency.

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 is trading within the “overbought area”. In this case, the price is expected to test 8/8, break it, and correct downwards to reach the support at 6/8. However, this scenario may no longer be valid if the price breaks +1/8 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, after breaking the 200-day Moving Average, USDCAD is trading above it, 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 8/8. 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 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 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.

by JustForex

The EUR/USD currency pair

Technical indicators of the currency pair:

• Prev Open: 1.1281
• Prev Close: 1.1312
• % chg. over the last day: +0.27%

According to preliminary information, the ECB is ready to decrease its stimulus measures and raise rates if necessary. But that hasn’t happened yet. Given the high probability of the interest rate increase by the Fed in March, the dollar index will keep being stable, which will be negatively reflected in EUR/USD quotes (decrease of EUR/USD).

Trading recommendations

• Support levels: 1.1288, 1.1271
• Resistance levels: 1.1336, 1.1368, 1.1369, 1.1436, 1.1535, 1.1613, 1.1667, 1.1717

From the technical point of view, the EUR/USD on the hour time frame is still bullish. After the December FOMC minutes publication, the EUR/USD quotes started a sharp decline, as a more hawkish policy of the Fed led to a rise in the dollar index. Under such market conditions, it is better to consider sell deals from the 1.1336 resistance level, but with additional confirmation. Buy trades can be considered on the lower time frames from the support level 1.1288, but only with additional confirmation in the form of the buyers’ initiative.

Alternative scenario: if the price breaks down through the 1.1288 support level and fixes below, the mid-term uptrend will be broken.

News feed for 2022.01.06:

• – US Initial Jobless Claims (w/w) at 15:30 (GMT+2);
• – US ISM Services PMI (m/m) at 17:00 (GMT+2).

The GBP/USD currency pair

Technical indicators of the currency pair:

• Prev Open: 1.3528
• Prev Close: 1.3555
• % chg. over the last day: +0.20%

The UK is approaching a daily sickness rate of 200,000. But the government is promising not to shut down the country entirely. This is a positive factor since companies have already begun to raise prices for goods and services due to concerns about inflation growth. Any additional restrictions may push inflation higher.

Trading recommendations

• Support levels: 1.3465, 1.3396, 1.3352, 1.3257, 1.3220
• Resistance levels: 1.3551, 1.3583, 1.3685

On the hourly time frame, the trend on GBP/USD is still bullish. But yesterday, the price formed a false breakout zone higher, which will now act as a good resistance area. The MACD indicator is still signaling divergence. Under such market conditions, traders should consider buy positions from the 1.3465 support level but only with additional confirmation in the form of a buyers’ initiative. Sell trades can be considered from the resistance level of 1.3551 or 1.3583.

Alternative scenario: if the price breaks down through the 1.3465 support level and consolidates below, the bearish scenario will likely resume.

News feed for 2022.01.06:

• – UK Services PMI (m/m) at 11:30 (GMT+2).

The USD/JPY currency pair

Technical indicators of the currency pair:

• Prev Open: 116.13
• Prev Close: 116.09
• % chg. over the last day: -0.03%

Due to the rise in COVID-19 cases, Tokyo may take emergency measures and impose restrictions. Japanese Prime Minister Kishida said yesterday that once the country manages to get COVID-19 under control, the economy will see a vertical increase in all indicators.

Trading recommendations

• Support levels: 115.64, 115.34, 115.09, 113.74
• Resistance levels: 116.11, 116.50

The global trend on the USD/JPY currency pair is bullish. The price has started a corrective movement, and this is an excellent opportunity to open buy trades. It is best to look for buy deals from the support levels around the moving average. Sell positions are better to look from the resistance level of 116.11, but only with confirmation and short targets.

Alternative scenario: if the price fixes below 115.09, the uptrend will likely be broken.

News feed for 2022.01.06:

• – Japan Services PMI (m/m) at 02:30 (GMT+2).

The USD/CAD currency pair

Technical indicators of the currency pair:

• Prev Open: 1.2706
• Prev Close: 1.2755
• % chg. over the last day: +0.38%

Economists predict three interest rate hikes from the Central Bank of Canada, starting in April. But they are confident that the Canadian economy will show a decline in the first quarter due to the Omicron strain and new restrictions. Fundamentally, both the US Fed and the Central Bank of Canada intend to tighten monetary policy this year, so both currencies will have support from the central banks. As a result, investors should not hope for medium-term trends on the currency pair USD/CAD. In annual terms, quotes will be flat.

Trading recommendations

• Support levels: 1.2757, 1.2710, 1.2667, 1.2628
• Resistance levels: 1.2824, 1.2903, 1.2951

From the technical point of view, the USD/CAD currency pair has changed to bullish. After the December FOMC minutes publication, the USD/CAD quotes showed a sharp increase, as a more “hawkish” policy of the Fed led to a rise in the dollar index. The MACD indicator became positive, with no signs of reversal. Under such market conditions, it is better to look for buy trades from the support level 1.2757 or 1.2710, but with an additional confirmation in the form of a buyer’s initiative. Sell trades are best to consider from the resistance levels of higher time frames.

Alternative scenario: if the price breaks down through the 1.2667 support level and fixes below, the downtrend is likely to resume.

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 Wednesday, the US stocks fell sharply after the US Federal Reserve meeting minutes showed that the central bank might raise interest rates earlier than expected. Meanwhile, some Fed officials also warned that the Fed might have to reduce the number of assets on its balance sheet soon after a rate hike. The S&P 500 (US500) and NASDAQ (US100) indices fell sharply after the FOMC minutes were released. The Dow Jones index, which reached a record high at the beginning of the day, also closed lower. By the end of the trading session, the S&P 500 Index (US500) decreased by 1.94%, the Dow Jones Industrial Average (US30) fell by 1.07%, and the Nasdaq Composite Technology Index (US100) lost 3.36%.

The ADP employment report showed that the US private sector added 807,000 jobs (expectation +375,000), but still nearly 4 million below pre-pandemic levels. According to the FOMC minutes, the US labor market is now in a “tight” phase. This week’s investor focus is also on US labor market data. The weekly report on new jobless claims will be released on Thursday, and on Friday, the December non-farm data and unemployment rate will be released.

The World Health Organization (WHO) reported Wednesday 2,294,039 new coronavirus cases worldwide in a 24-hour period. This is the highest daily rate in WHO statistics recorded during the pandemic.

European stock indices mostly rose yesterday despite a decline in business activity in the region and a rise in COVID cases. At the end of the day, French index CAC 40 (FR40) gained 0.81%, German DAX (DE30) added 0.74%, British FTSE 100 (UK100) increased by 0.16%. Spanish IBEX 35 (ES35) was the exception and decreased by 0.06%. European auto manufacturers’ quotes became the leaders of the growth on Wednesday. Renault SA gained 5.3%, Daimler AG added 4%, and Stellantis NV increased by 3.9%. JPMorgan analysts stick to the recommendation to buy all three companies.

But analysts believe that European stock markets will open with a decline on Thursday, which will continue the global sell-off following the release of the “hawkish” December FOMC protocol.

Kazakhstan has declared a state of emergency across the country. An anti-terrorist operation was launched in Almaty. All the banks in Kazakhstan stopped working. Internet access is also restricted. Middle Eastern air carriers cancel flights to Kazakhstan.

Crude oil reserves showed another decline. In the previous week, inventories decreased by 2.14 Mbbl, but less than the expected -3.3 Mbbl. But gasoline reserves increased by more than 10 Mbbl, the biggest weekly increase since April 2020. This indicates that the population does not travel much by car. But this is not surprising, as the rise in incidence increases every day.

On Thursday, Asian stock indices are decreasing during trading amid a decline in the US stock market the day before. Japan’s Nikkei 225 Index (JP225) decreased by 2.88% since the opening, Australia’s ASX 200 (AU200) lost 2.74%, but Hong Kong’s Hang Seng (HK50) feels good, showing an increase of 0.33%.

Main market quotes:

S&P 500 (F) (US500) 4,700.58 −92.96 (−1.94%)

Dow Jones (US30) 36,407.11 −392.54 (−1.07%)

DAX (DE40) 16,271.75 +119.14 (+0.74%)

FTSE 100 (UK100) 7,516.87 +11.72 (+0.16%)

USD Index 96.16 −0.10 (−0.10%)

• – Japan Services PMI (m/m) at 02:30 (GMT+2);
• – UK Services PMI (m/m) at 11:30 (GMT+2);
• – US Initial Jobless Claims (w/w) at 15:30 (GMT+2);
• – US ISM Services PMI (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.

Article By RoboForex.com

GBPUSD, “Great Britain Pound vs US Dollar”

As we can see in the H4 chart, GBPUSD has reached 50.0% fibo after convergence on MACD and may boost its growth towards 61.8% fibo at 1.3577. After that, the pair may start a new decline towards the key support at 1.3160. The key resistance is the local high at 1.3834.

The H1 chart shows that the price is correcting to the downside after local divergence on MACD; the targets are 23.6%, 38.2%, 50.0%, and 61.8% fibo at 1.3482, 1.3423, 1.3375, and 1.3327 respectively.

EURJPY, “Euro vs. Japanese Yen”

As we can see in the H4 chart, EURJPY is correcting upwards after convergence on MACD; it has already reached 61.8% fibo and may later continue towards 76.0% fibo at 132.02. After this pullback is over, the asset may resume falling to break the low at 127.38 and then reach the long-term 61.8% fibo at 126.40. The resistance is the high at 133.48.

The H1 chart shows that the pair may resume falling after divergence on MACD; the downside targets are 23.6%, 38.2%, 50.0%, and 61.8% fibo at 130.50, 129.90, 129.42, and 128.93 respectively. The resistance is the high at 131.46.

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

XAUUSD, “Gold vs US Dollar”

As we can see in the H4 chart, the asset is still trading upwards. After forming an Engulfing reversal pattern not far from the support level, XAUUSD is reversing and may continue forming its ascending impulse. In this case, the upside target may be the resistance area at 1835.50. At the same time, an opposite scenario implies that the price may return to 1805.00 before resuming its ascending tendency.

NZDUSD, “New Zealand vs US Dollar”

As we can see in the H4 chart, NZDUSD has formed a Hammer reversal pattern close to the support area. At the moment, the asset is reversing and may form a new ascending impulse towards the resistance level. In this case, the upside target may be at 0.6835. After that, the asset may rebound from this level and resume moving downwards. However, an alternative scenario implies that the price may fall to reach 0.6700 without any corrections towards the resistance level.

GBPUSD, “Great Britain Pound vs US Dollar”

As we can see in the H4 chart, GBPUSD has formed a Shooting Star reversal pattern near the resistance area. At the moment, the pair may reverse and start a new pullback. In this case, the downside correctional target may be at 1.3485. After testing the support level, the market may rebound from it and resume trading upwards. Still, there might be an alternative scenario, according to which the asset may continue growing to reach 1.3590 without any corrections towards the support level.

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: 1.1296
• Prev Close: 1.1287
• % chg. over the last day: -0.07%

In November, German retail sales increased unexpectedly to a record annual high despite renewed COVID-19 restrictions that are holding back a recovery in consumer activity in Europe’s largest economy. The unemployment rate in Germany fell from 5.3% to 5.2%.

Trading recommendations

• Support levels: 1.1288, 1.1271
• Resistance levels: 1.1336, 1.1368, 1.1369, 1.1436, 1.1535, 1.1613, 1.1667, 1.1717

From the technical point of view, the EUR/USD on the hour time frame is still bullish. Due to the sharp drop in the quotes, there is a high probability that the trend will change back to bearish. Yesterday, the price tried to break through the priority change level but failed to consolidate lower. The buyers managed to push the price higher. Under such market conditions, it is better to consider sell deals from the 1.1336 resistance level, but with additional confirmation. Buy trades can be considered on the lower time frames from the support level 1.1288, but only with additional confirmation in the form of the buyers’ initiative.

Alternative scenario: if the price breaks down through the 1.1288 support level and fixes below, the mid-term uptrend will be broken.

News feed for 2022.01.05:

• – German Services PMI (m/m) at 10:55 (GMT+2);
• – Eurozone Services PMI (m/m) at 11:00 (GMT+2);
• – US ADP Non-Farm Employment Change (m/m) at 15:15 (GMT+2);
• – US FOMC Meeting Minutes at 21:00 (GMT+2).

The GBP/USD currency pair

Technical indicators of the currency pair:

• Prev Open: 1.3471
• Prev Close: 1.3528
• % chg. over the last day: +0.42%

In December, manufacturing growth in the UK was slightly faster than initially anticipated, and supply problems related to the pandemic eased slightly. Rob Dobson, director of IHS Markit, said the economic recovery is still lower than in mid-2021 due to continued supply chain constraints and weak exports, which have been affected by Brexit-related problems and the prospect of further COVID-19 restrictions.

Trading recommendations

• Support levels: 1.3465, 1.3396, 1.3352, 1.3257, 1.3220
• Resistance levels: 1.3549, 1.3575, 1.3685

On the hourly time frame, the trend on GBP/USD is still bullish. The price is now trading in a wide corridor. The MACD indicator is still signaling divergence. Under such market conditions, traders should consider buy positions from the 1.3465 support level but only with additional confirmation in the form of a buyers’ initiative. Sell trades can be considered from the resistance level of 1.3549, but only after a false breakout.

Alternative scenario: if the price breaks down through the 1.3396 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: 115.31
• Prev Close: 116.12
• % chg. over the last day: +0.70%

The Japanese yen fell to a 5-year low against the dollar. The medium-term uptrend on the USD/JPY currency pair will continue as the monetary policies of the Japanese and US central banks are now diametrically opposed. The tightening policy of the US Federal Reserve will help the dollar index strengthen, while the easing stimulation policy of the Central Bank of Japan will make the yen weaker.

Trading recommendations

• Support levels: 115.78, 115.34, 115.09, 113.74
• Resistance levels: 116.50

The global trend on the USD/JPY currency pair is bullish. Yesterday, the price easily broke through the daily resistance level and fixed higher. But at the moment, the price strongly deviated from the average values, so it is better to consider the buy deals either on the lower time frames or wait for the pullback to the support levels near the moving average. It is better to look for sell positions from the next resistance level of 116.50.

Alternative scenario: if the price fixes below 115.09, the uptrend will likely be broken.

There is no news feed for today.

The USD/CAD currency pair

Technical indicators of the currency pair:

• Prev Open: 1.2741
• Prev Close: 1.2703
• % chg. over the last day: -0.30%

In December, Canada’s manufacturing sector activity grew at its slowest pace in five months as material shortages, and delivery delays held back output. Canada’s PMI for the manufacturing sector declined to 56.5 from 57.2 in November. A rapidly spreading variant of the Omicron coronavirus could be an additional challenge for the industry. But since the Canadian dollar is a commodity currency, rising energy prices positively affect the national exchange rate.

Trading recommendations

• Support levels: 1.2667, 1.2628
• Resistance levels: 1.2723, 1.2770, 1.2824, 1.2903, 1.2951

From the technical point of view, the USD/CAD currency pair trend is bearish. The sellers managed to protect the priority change level. The MACD indicator has become inactive. Under such market conditions, it is better to look for sell deals from the resistance levels near the moving average. Buy trades can be considered from the support level of 1.2667, but with additional confirmation in the form of a buyers’ initiative.

Alternative scenario: if the price breaks out through the 1.2770 resistance level and fixes above, the downtrend will likely be broken.

News feed for 2022.01.05:

• – Canada Building Permits (m/m) at 15:30 (GMT+2);
• – 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.

by JustForex

The US stock indices traded without a single trend yesterday. By the end of the trading day, the Dow Jones Industrial Average (US30) increased by 0.59%, the S&P 500 Index (US500) decreased by 0.06%, and the Nasdaq Technology Index (US100) lost 1.33%. Meanwhile, the Dow Jones (US30) and S&P 500 (US500) indices made new all-time highs during the trading session but showed declines after the news. The US manufacturing PMI data for December was weak (58.7 vs. 61.1 last month). Typically, an index above 50 reflects growth in the manufacturing sector and vice versa, so at the moment, analysts believe that the US manufacturing sector is stable, despite the decline in numbers.

Analysts at JPMorgan believe US stocks still have significant upside potential. In their opinion, the main support for the indices is given by the news that the Omicron strain is less dangerous than expected and the stabilization of business activity in China.

According to Bloomberg, chip delivery times are rising again due to the rapid spread of the Omicron variant and new restrictions so that chip shortages will continue.

According to Reuters, 4.5 million Americans quit their jobs in November, a record high. Investors now look forward to the nonfarm payrolls data coming out Friday and the weekly jobless claims data that will be published on Thursday.

The US set a new global daily record of more than 1 million infections in 24 hours.

European stock indices closed yesterday in the green zone. German DAX (DE30) gained 0.82%, Spanish IBEX 35 (ES35) added 0.39%, and French CAC 40 (FR40) jumped by 1.39%, ending the trading at a record high again. The British FTSE 100 (UK100) also gained +1.63% at the end of the day. In December, the pace of British manufacturing growth was slightly higher than initially anticipated, and pandemic supply problems eased slightly. In November, German retail sales increased unexpectedly to a record annual high, despite renewed COVID-19 restrictions that are holding back a recovery in consumer activity in Europe’s largest economy. The unemployment rate in Germany fell from 5.3% to 5.2%.

Protests erupted in Kazakhstan over rising fuel prices. The President of Kazakhstan imposed a state of emergency in the Mangistau region and the city of Almaty from January 5 to January 19. The state of emergency includes the introduction of a curfew from 23.00 to 7.00, restrictions on freedom of movement, including vehicles, and restrictions on entry and exit from Almaty and Mangistau region. The Internet in the country has malfunctioned, with local media reporting that the messengers Telegram, WhatsApp, and Signal have stopped working.

Following the OPEC+ meeting, representatives decided to stick to their plan to increase oil production by 400,000 bpd in February. OPEC+ countries also agreed that the oil market is currently in a state of equilibrium.

Australia reported 47,738 new daily cases, the highest since the pandemic began.

Japan’s Sony announced plans to create an electric car company, Mobility. The new Sony Mobility company will begin operations in the spring of 2022. At CES in 2020, Sony unveiled a prototype of the Vision-S electric car. In December of the same year, the car was first tested on European roads, and in April, Sony conducted a test drive using remote control via the 5G network. Now, the company has announced a new phase in developing the Vision-S. Sony has unveiled a prototype of a new electric car, the Vision-S 02, with safety as a priority for the company.

Shares of Chinese real estate developer Evergrande showed a slight rise after trading resumed, even though the company needs to demolish 39 buildings on Hainan, which were found illegal. The demolition is the latest move by local authorities to seize some of Evergrande’s valuable land assets. Evergrande is thus trying to pay off more than $300 billion in liabilities, including nearly $20 billion in internationally traded bonds.

Main market quotes:

S&P 500 (F) (US500) 4,793.54 −3.02 (−0.063%)

Dow Jones (US30) 36,799.65 +214.59 (+0.59%)

DAX (DE40) 16,152.61 +131.88 (+0.82%)

FTSE 100 (UK100) 7,505.15 +120.61 (+1.63%)

USD Index 96.28 +0.07 (+0.07%)

• – German Services PMI (m/m) at 10:55 (GMT+2);
• – Eurozone Services PMI (m/m) at 11:00 (GMT+2);
• – US ADP Non-Farm Employment Change (m/m) at 15:15 (GMT+2);
• – Canada Building Permits (m/m) at 15:30 (GMT+2);
• – US Crude Oil Reserves (w/w) at 17:30 (GMT+2);
• – US FOMC Meeting Minutes at 21:00 (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 Lukman Otunuga Senior Research Analyst, ForexTime

Article by ForexTime

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