InvestMacro

Article By RoboForex.com

XAUUSD, “Gold vs US Dollar”

As we can see in the H4 chart, after a correctional movement in the form of a Triangle pattern and several tests of the high, XAUUSD has formed a quick rising impulse to break it. As a result, the mid-term uptrend has reached 50.0% fibo and may later continue towards 61.8% and 76.0% fibo at 1956.50 and 2000.00 respectively. However, one shouldn’t disregard a divergence on MACD, which may hint at further mid-term decline towards the key support – the low at 1764.36.

The H1 chart shows that the pair has reached 76.0% fibo. Considering a divergence on MACD, the asset may fall towards 23.6%, 38.2%, and 50.0% fibo at 1887.40, 1863.70, and 1845.00 respectively. However, a breakout of the local high at 1925.23 will result in further trend to the upside.

USDCHF, “US Dollar vs Swiss Franc”

As we can see in the H4 chart, after updating the low and attempting to leave the post-correctional extension area between 138.2% and 161.8% fibo at 0.8886 and 0.8816 respectively, USDCHF has skyrocketed and this movement to the upside may be considered as the start of a new mid-term correction. The correctional target remains at the resistance at 0.8999.

The H1 chart shows a more detailed structure of the correction after a convergence on MACD. The asset is approaching 23.6% fibo at 0.8864 and, after breaking it, may continue moving towards 38.2%, 50.0%, and 61.8% fibo at 0.8908, 0.8943, and 0.8979 respectively. A breakout of the support at 0.8793 will complete this correction.

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: 1.2297
• Prev Close: 1.2216
• % chg. over the last day: -0.66%

EUR/USD is recovering from Thursday’s fall. There were no particular reasons for the sharp decline. The credit market didn’t show any significant change in trading. The dollar index continues to remain close to the minimum values, continuing to decline in the Asian session. The pair remained in an ascending channel, bouncing off the nearest support.

Trading recommendations

• Support levels: 1.2216, 1.2151
• Resistance levels: 1.2309, 1.2353

The main trading scenario for EUR/USD is trading in a sideways range. Technically, the pair indicated the first sign of correction, breaking through the lower border of the channel. But considering the time when it happened, the break-through may turn out to be false. Now the euro is in an ascending channel again. The ADX almost didn’t react to the fall. The price is stuck between two moving averages. Given the mixed signals and the first day of trading, low volatility can be expected.

Alternative scenario: if the price can fix below the level of 1.2216, it is possible that the price will go lower to 1.2151 – 1.2130. A break-through of 1.2309 will resume the uptrend.

News feed for 2021.01.04:

• – German Manufacturing PMI (Dec.) at 11:55 (GMT+2);
• – Eurozone Manufacturing PMI (Dec.) at 12:00 (GMT+2).

The GBP/USD currency pair

Technical indicators of the currency pair:

• Prev Open: 1.3620
• Prev Close: 1.3658
• % chg. over the last day: +0.28%

The pound is gradually continuing to renew its highs, showing no signs of a correction. The pair is the strongest among all the majors. However, we can’t say the same about British securities. Gilts profitability continues to fall, throwing into question the further long-term growth of the sterling. But technically, the trend continues and the nearest resistance is far away.

Trading recommendations

• Support levels: 1.3627, 1.3428
• Resistance levels: 1.4386

The main scenario is risk-averse buying on a decline. The pair’s technical characteristics remain strong. The price is above the moving averages. But on the hourly timeframe, the ADX showed a decrease in the trend potential after moving into the overvalued area. On H4, the oscillator just hit this area. With that in mind, you should be vigilant when building up long positions.

Alternative scenario: if the pair fixes below 1.3627, the northern scenario is likely to reverse and the pair will head towards 1.3428.

News feed for 2021.01.04:

• – UK Manufacturing PMI (Dec.) at 12:30 (GMT+2).

The USD/JPY currency pair

Technical indicators of the currency pair:

• Prev Open: 103.17
• Prev Close: 103.26
• % chg. over the last day: +0.08%

USD/JPY continues to be dominated by bears. With the opening of trading in Europe, the main support level was broken. Apparently, the move is based solely on the decline of the dollar index, as the stock market continues to rise. The 102.03 mark becomes the closest support in case the price fails to return above 102.89 during the day.

Trading recommendations

• Support levels: 102.03, 101.20
• Resistance levels: 103.33, 103.90

The main scenario – selling on growth. For the fourth trading day, the pair is confidently remaining below the moving averages. The MACD is below zero, while the ADX continues to react only to a decline. Now the potential for the trend has decreased, which may indicate a slowdown in the rate of decline. But there are no signs of correction yet.

An alternative scenario assumes a break-though of 103.33 from the bottom up. In this case, the pair may reach 103.90.

There is no news feed for today.

The USD/CAD currency pair

Technical indicators of the currency pair:

• Prev Open: 1.2751
• Prev Close: 1.2757
• % chg. over the last day: +0.05%

There was a large portion of bearish pressure with the opening of trades. A decline in the dollar and an increase in oil prices brought the pair back to the December lows. The market is awaiting a decision of OPEC+ concerning the extension of the production cut program. Against this background, serious changes can occur during the day.

Trading recommendations

• Support levels: 1.2686, 1.2523
• Resistance levels: 1.2875, 1.2954

The main scenario – risk-averse selling during growth. The MACD shows convergence, which gives confidence to the bears. But ADX didn’t show a significant reaction with a significant withdrawal of the price from the moving averages. At the same time, the price bounced off its strong support level, indicating a stop near current levels. Based on this, we can wait for the price to return to the SMA 50 at 1.2750 and try to build up sales in case of a rebound from the line.

Alternative scenario: if the price manages to return above 1.2750 – 1.2787, the pair may resume the upward correction.

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 Hussein Sayed, Chief Market Strategist (Gulf & MENA), ForexTime

Article by ForexTime

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

By Han Tan, Market Analyst, ForexTime

Article by ForexTime

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

by JustForex

The market opening after the holidays looks somewhat alarming. S&P 500 futures demonstrates growth against the background of a surge in oil prices, but other parts of the market indicate that investors are looking for defensive assets. Bond yields are decreasing and gold moved sharply to growth. The mining companies and energy sector are the growth leaders.

Economic growth continues to gradually recover. PMI points to the continued consistent growth in Asia, boosted by strong demand for Chinese exports, although China’s recovery has slowed down slightly. Against this background, European stocks started trading with confidence, adding 0.45%.

But the overall market direction isn’t synchronous. The yield of the British Gilts approached their historical lows and reached 0.155%. German Bonds fell to -0.615%. American Treasuries decreased by 0.920%. After such a sharp drop in yields, gold rose sharply in price, reaching $ 1930 per troy ounce.

The outbreak of new diseases may push investors to seek protective assets. The US has set a new daily record of 300,000 infections. A state of emergency is being considered in Tokyo. Against this background, Japanese indices are inferior to others.

Today, investors will be focused on the OPEC+ decision on oil production. It’s interesting for the market whether the participating countries will be able to come to an agreement at which oil prices will continue to rise. In anticipation of a positive decision, oil futures renewed their highs.

Stock indices are demonstrating steady growth, while the dollar is declining.

S&P 500 (F) 3,762.62 +13.87 (+0.37%)

Dow Jones 30,606.48 +196.92 (+0.65%)

DAX 13,796.70 +77.92 (+0.57%)

FTSE 100 6,598.55 +138.03 (+2.14%)

USD Index 89.495 -0.399 (-0.44%)

• – German Manufacturing PMI (Dec.) at 11:55 (GMT+2);
• – Eurozone Manufacturing PMI (Dec.) at 12:00 (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 JustForex

The EUR/USD currency pair

Technical indicators of the currency pair:

• Prev Open: 1.2248
• Prev Close: 1.2296
• % chg. over the last day: +0.39%

EUR/USD accelerated growth, although there were not many drivers for this. Everything now looks more like a pre-New Year rally, in which the dollar is declining in most cases. The yield on German Bonds continued to fall, which casts doubt on the further growth of the euro. However, the chart shows a consolidation above the December 18 high and a new annual record is set.

Trading recommendations

• Support levels: 1.2353, 1.2414
• Resistance levels: 1.2216, 1.2151

The main scenario for EUR/USD trading is cautious buying on a decline. Technically, the pair is not yet giving hints of the end of the northern trend. The price is confidently holding in the local ascending channel and above the moving averages. However, divergence began to form on the MACD, and the trend potential indicator is declining. Against this background, long positions must be insured and caution should be exercised when opening new ones.

Alternative scenario: if the price can consolidate below the level of 1.2272, the price may move further to 1.2236 – 1.2216, and the breakdown of the last point may signal a complete reversal.

News feed for 2020.12.31:

• – 16:30 (GMT+2) The number of initial claims for unemployment benefits in the United States.

The GBP/USD currency pair

Technical indicators of the currency pair:

• Prev Open: 1.3497
• Prev Close: 1.3621
• % chg. over the last day: +0.91%

The pound renewed its annual highs given Boris Johnson’s support from the House of Commons. But as it is the case for the euro, there are no other fundamental factors for the bulls. Despite the positive end of the year in politics for Britain, the Gilts yield remained close to annual lows at 0.200%, which raises doubts about the continuation of the rally.

Trading recommendations

• Support levels: 1.3287, 1.3187
• Resistance levels: 1.3657, 1.4386

The main scenario is cautious buying on a decline. Now the technical characteristics of the pair are very strong. If there are hints of an impending correction in the euro, then in this case, there are none at all. The pair is trading above the moving averages. ADX continues high, indicating high bullish pressure. 1.3657 is the nearest all-time high, a breakout of which could send the pair towards 1.43.

Alternative scenario: if the pair consolidates below 1.3541, the northern scenario is likely to cancel and the pair will head towards 1.3428.

There is no news feed for today.

The USD/JPY currency pair

Technical indicators of the currency pair:

• Prev Open: 103.52
• Prev Close: 103.18
• % chg. over the last day: -0.33%

With the breakdown of the main majors of its annual highs, the dollar-yen succumbed to the correlation and returned to the December lows. In this pair, there is no reason for growth at all. The yen does not react to the growth of risky assets, and in the absence of growth in yields on the credit market, everything looks like a stable bearish trend.

Trading recommendations

• Support levels: 103.26, 102.89
• Resistance levels: 103.90, 104.15

The main scenario is selling on growth. The closing of trading on Wednesday showed an acceleration in the fall. The MACD is showing divergence, hinting at a possible correction, but the ADX is indicating still strong bearish pressure. 102.89 is the last historical line, a breakout of which can send the instrument to 101.19 – the low of March this year.

An alternative scenario assumes a breakdown of 103.50 from the bottom up. In this case, the pair may reach the area of 103.90 – 104.15.

News feed for 2020.12.31:

• – 16:30 (GMT+2) The number of initial claims for unemployment benefits in the United States.

The USD/CAD currency pair

Technical indicators of the currency pair:

• Prev Open: 1.2814
• Prev Close: 1.2750
• % chg. over the last day: -0.50%

USD/CAD was actually following the general market trend based on the dollar’s decline. Oil quotes are consolidating slightly below their annual highs, but the pair has accelerated its decline. Today the news background is empty and early closing is expected. There will probably not be a significant change in price within the day.

Trading recommendations

• Support levels: 1.2686
• Resistance levels: 1.2875, 1.2954

The main scenario is selling on growth. MACD is firmly entrenched in the negative area. ADX, despite the steady price movement in the south direction, shows a decrease in the trend potential. This is an indirect sign of a slowdown in the fall and, possibly, a stop. But for now, the bears remain strong. In this regard, the southern scenario remains relevant.

Alternative scenario: if the price manages to return above 1.2811, the pair may resume the upward correction.

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

Despite the ongoing pandemic, the year on the stock exchanges is ending near historic highs. Bullish sentiment has lifted risky assets this year to unexpectedly high valuations on the expectation that vaccinations in 2021 will resume economic growth and boost corporate profits, amid unprecedented stimuli. The MSCI World Global Stock Index ended up growing 14% for the full year of 2020.

Banks and funds representatives see no reason to reverse. The conclusion of the Brexit agreement, the start of vaccinations and economic stimulus programs by central banks without expectations of an increase in interest rates can keep playing on the side of the bulls for a long time. The Fed, in its economic review, provided a projection in which the first rate hike could be only after 2023. Due to the more stable growth of inflation in the US compared to Europe, as well as huge cash injections into the economy, the downtrend in the dollar may continue next year.

Against this background, the benchmark S&P 500 index confidently entrenched above 3700. Many analysts on Wall Street are convinced that there is nothing to prevent stocks from rising next year, and the index can rise above 4000.

Expectations of economic growth are also observed in oil quotes. Brent oil is confidently holding above $ 50 per barrel, WTI is about $ 48. The manufacturing sector of advanced economies is gradually recovering, supporting the demand for black gold.

Major stock indexes are trading as usual and in different directions. The dollar index continues to decline.

S&P 500 (F) 3,717.62 -6.63 (-0,18%)

Dow Jones 30,409.56 +73.89 (+0.24%)

DAX 13,718.78 -42.60 (-0.31%)

FTSE 100 6,443.91 -111.91 (-1.71%)

USD Index 89.517 -0.132 (-0.15%)

• – 04:00 (GMT+2) Manufacturing PMI (Dec);
• – 16:30 (GMT+2) Number of initial applications for unemployment benefits.

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 Han Tan, Market Analyst, ForexTime

Article by ForexTime

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

Article By RoboForex.com

USDJPY, “US Dollar vs Japanese Yen”

USDJPY is trading at 103.34; the instrument is moving below Ichimoku Cloud, thus indicating a descending tendency. The markets could indicate that the price may test the cloud’s upside border at 103.55 and then resume moving downwards to reach 102.45. Another signal in favor of further downtrend will be a rebound from the rising channel’s downside border. However, the bearish scenario may no longer be valid if the price breaks the cloud’s upside border and fixes above 103.95. In this case, the pair may continue growing towards 104.75.

EURUSD, “Euro vs US Dollar”

EURUSD is trading at 1.2279; the instrument is moving above Ichimoku Cloud, thus indicating an ascending tendency. The markets could indicate that the price may test the cloud’s upside border at 1.2255 and then resume moving upwards to reach 1.2345. Another signal in favor of further uptrend will be a rebound from the rising channel’s downside border. However, the bullish scenario may be canceled if the price breaks the cloud’s downside border and fixes below 1.2205. In this case, the pair may continue falling towards 1.2115.

AUDUSD, “Australian Dollar vs US Dollar”

AUDUSD is trading at 0.7651; 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 0.7625 and then resume moving upwards to reach 0.7705. Another signal in favor of further uptrend will be a rebound from the rising channel’s downside border. However, the bullish scenario may no longer be valid if the price breaks the cloud’s downside border and fixes below 0.7575. In this case, the pair may continue falling towards 0.7485.

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

USDCAD, “US Dollar vs Canadian Dollar”

As we can see in the H4 chart, the descending tendency continues. Right now, after forming several reversal patterns, such as Doji, not far from the resistance level, USDCAD is reversing in the form of another descending impulse and may later continue falling within the descending channel. in this case, the downside target will be at 1.2685. However, an alternative scenario implies that the price may start a new pullback to reach 1.2900 before resuming its decline.

AUDUSD, “Australian Dollar vs US Dollar”

As we can see in the H4 chart, AUDUSD continues growing within the rising channel. Right now, after forming several reversal patterns, such as Harami, not far from the support area, the pair may reverse and then resume growing to reach the next resistance area at 0.7700. At the same time, an opposite scenario says that the price may correct towards 0.7575 before resuming the ascending tendency.

USDCHF, “US Dollar vs Swiss Franc”

As we can see in the H4 chart, the downtrend continues. At the moment, after forming several reversal patterns, such as Engulfing, not far from the resistance area, USDCHF is reversing and may continue the descending tendency. In this case, the downside target may be the next support area at 0.8770. Still, there might be an alternative scenario, according to which the asset may grow to return to 0.8900 before testing the support area.

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.