InvestMacro

by JustForex

European stocks moved up after a rebound in trade supplies. Earlier, the border crossing was blocked due to the worsening epidemiological situation. At the same time, the market got to know about the rejection of Boris Johnson’s offer for mutual concessions by the European Union. The EU still refuses to reduce the cost of fish products by more than 25%. However, officials assure that both sides are ready to make a “final push” and that “a deal is still possible.”

US equity futures have faltered after the statements from Donald Trump, who criticized the pandemic relief bill. This triggered a 0.25% pullback in the S&P 500 futures after falling by 0.7%. It requires lawmakers to increase the stimulus payments to $ 2,000 from the $ 600 indicated in the document.

On the one hand, the appeal appears to be positive for the market. But, on the other hand, Trump’s comments may cause a new disturbance in the markets, since it may take more time to bring the bill into practice. The House Speaker Nancy Pelosi is now pointing to the need for larger individual checks on incentive payments and said that the House of Representatives will try to deal with the additional measure during Thursday’s meeting.

It seems that the stock and foreign exchange markets aren’t yet ready to “press the sell button” and have taken a wait-and-see approach. The credit market is traded in different directions. German Bonds and British Gilts lost profitability, while the US Treasuries moved higher.

Major stock indices opened in different directions:

S&P 500 (F) 3,687.62 +10.37 +0.28%

DAX 13,508.05 +89.94 +0.67%

FTSE 100 6,449.85 -3.31 -0.05%

USD Index 90,325 -0.221 -0.24%

• – United States Initial Jobless Claims at 16:30 (GMT+2).
• – Canadian GDP (MoM) (Oct) at 16:30 (GMT+2);
• – New Home Sales in the United States (Nov) at 18:00 (GMT+2);
• – US crude oil reserves 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 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 Lukman Otunuga, 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

Article By RoboForex.com

USDCAD, “US Dollar vs Canadian Dollar”

As we can see in the H4 chart, the pullback within the descending tendency continues. Right now, after forming several reversal patterns, such as Hammer, not far from the support level, USDCAD is reversing in the form of another correction and may later continue growing within the descending channel. in this case, the upside target will be at 1.2990. However, an alternative scenario implies that the price may continue falling to reach 1.2685 without testing the channel’s upside border.

AUDUSD, “Australian Dollar vs US Dollar”

As we can see in the H4 chart, after forming a Hammer pattern, the pair is reversing. Right now, AUDUSD continues growing within the rising channel. In this case, the upside target will be the next resistance level at 0.7670. At the same time, an opposite scenario says that the price may continue falling to return to 0.7500 before resuming its growth.

USDCHF, “US Dollar vs Swiss Franc”

As we can see in the H4 chart, after breaking the descending channel’s downside border and forming several reversal patterns, such as Doji, not far from the resistance area, USDCHF is reversing and may resume the descending tendency. In this case, the next downside target may be the support area at 0.8800. Still, there might be an alternative scenario, according to which the asset may return to 0.8930 before resuming its decline.

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

On Monday evening, the British Prime Minister Boris Johnson’s desire to compromise and make concessions to the European Union on the fishing clause became known. According to his new plan, the cost of fish that the EU catches in British waters should be reduced by 30%. In return, the United Kingdom seeks concessions in other items of the contract.

Last week the UK pushed for the European bloc to cut costs by 60%, but the EU refuses to cut costs by more than 25%. The European Commission is currently consulting with EU member states on the UK proposal, and Michelle Barnier is due to inform his 27 ambassadors at approximately 16:00 (GMT+1) on Tuesday in Brussels. The authorities added that a compromise could still be reached.

Against this background, the market has stabilized after falling on Monday. Hopes for a deal remain. An additional bullish driver for the market is the US Congress’s positive decision on the $ 900 billion bailout bill. As noted in ING Group, the agreed package of tax breaks will undoubtedly help mitigate some of the negative factors, but, unfortunately, it will not fully offset the effects of the pandemic.

The European stock market has partially recovered its losses but is in no hurry to return to the highs. The likelihood of developing a correction remains as the yield of the primary bonds continues to decline.

Major stock indices are trading down:

S&P 500 (F) 3,687.88 +2.13 +0.06%

Dow Jones 30,216.45 +37.40 +0.12%

DAX 13,364.25 +117.95 +0.89%

FTSE 100 6,421.65 +5.33 +0.08%

• – 16:30 (GMT+3) The number of initial applications for unemployment benefits in the United States;
• – 16:30 (GMT+3) Canadian GDP (m/m) (Oct);
• – 18:00 (GMT+3) New Home Sales in the United States (Nov);
• – 18:30 (GMT+3) US crude oil reserves.

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

EURUSD, “Euro vs US Dollar”

After completing the descending wave at 1.2140 and then breaking 1.2200 to the upside, EURUSD has reached the short-term upside target at 1.2249; right now, it is falling to test 1,2200 from above and may later form one more ascending structure towards 1.2277. However, if the price breaks 1.2190 to the downside, the market may continue the correction to reach 1.2050 and then start another growth with the target at 1.2330.

GBPUSD, “Great Britain Pound vs US Dollar”

After finishing the descending wave at 1.3230 and then breaking 1.3330 to the upside, GBPUSD has reached the short-term target at 1.3499; right now, it is falling to test 1.3330 from above and may later start another growth towards 1.3544. However, if the price breaks 1.3320 to the downside, the instrument may continue trading downwards with the target at 1.3200.

USDRUB, “US Dollar vs Russian Ruble”

After breaking 73.83 to the upside and then completing the ascending structure at 75.12, USDRUB is expected to test 73.83 from above and may later form one more ascending structure towards 74.67, thus forming a new consolidation range between two latter levels. If later the price breaks this range to the upside, the market may start another growth to reach 76.76; if to the downside – resume trading downwards with the target at 72.20.

USDJPY, “US Dollar vs Japanese Yen”

After finishing the ascending wave at 103.77, USDJPY is falling towards 103.00. After that, the instrument may grow to reach 103.40 and then start another decline to break 102.70. Later, the market may form a new descending structure with the closest target at 102.50.

USDCHF, “US Dollar vs Swiss Franc”

After finishing the ascending structure at 0.8900, then reaching 0.8880, and forming a new consolidation range there, USDCHF has broken this range to the downside to reach the short-term target at 0.8844; right now, it is correcting to test 0.8877 from below. After that, the instrument may start another decline with the target at 0.8839.

AUDUSD, “Australian Dollar vs US Dollar”

After completing the descending wave at 0.7490 along with the correction towards 0.7599, AUDUSD is trading downwards to reach 0.7548. Later, the market may start a new growth with the target at 0.7636.

BRENT

After completing another descending structure at 49.50, Brent has tested 51.08 from below and may later fall towards 50.00, thus forming a new consolidation range between these two levels. If later the price breaks this range to the downside; the market may continue the correction to reach 47.84; if to the upside – resume trading upwards to break 52.85 and then continue growing with the target at 55.00.

XAUUSD, “Gold vs US Dollar”

After finishing the ascending wave at 1906.48 and then falling towards 1855.25, Gold has formed one more ascending structure to reach 1878.00; right now, it is forming a new consolidation range between the latter level. If later the price breaks this range to the downside at 1870.00; the market may form a new descending structure to break 1850.00 and then continue trading downwards to reach 1820.66; if to the upside at 1886.00 – resume trading upwards with the target at 1900.00 and then start another decline towards 1750.00.

BTCUSD, “Bitcoin vs US Dollar”

BTCUSD continues falling to reach 21800.00 and may later correct towards 22900.00, thus forming a new consolidation range between these two levels. If later the price breaks this range to the downside; the market may form a new descending structure with the target at 20600.00; if to the upside – resume trading upwards to reach 24700.00 and then start a new decline towards the above-mentioned target.

S&P 500

After finishing the descending structure at 3610.2 along with the correction towards 3700.0, the S&P index is falling to reach 3671.9, thus forming a new consolidation range between two latter levels. If later the price breaks this range to the downside; the market may form a new descending structure to reach 3600.0; if to the upside – resume trading upwards with the target at 3737.0.

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.

By Lukman Otunuga, 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

by JustForex

The EUR/USD currency pair

Technical indicators of the currency pair:

• Prev Open: 1.2223
• Prev Close: 1.2242
• % chg. over the last day: +0.16%.

EUR/USD on Monday managed to regain its losses and close the day with a slight plus thanks to the statements of Boris Johnson. There was a pullback with the opening of the Asian session. The bear trend did not manage to reverse the upward trend. The yield of German Bonds remains under pressure amid the closure of borders with the UK, and against this background, the pair’s further growth looks difficult.

Trading recommendations

• Support levels: 1.2273
• Resistance levels: 1.2177, 1.2124

The main trading scenario for EUR/USD is trading in a sideways range with little buying priority. Technical indicators give weak signals for growth. ADX shows low reaction to moves in both directions. MACD is back in the positive area but is holding close to zero for now. The price quickly broke through the moving averages from above, then from below, and consolidated around them. A rebound from the price range of the first half of December suggests that the bulls are still holding the pair.

Alternative scenario: if the price can consolidate below the level of 1.2177, the price may move further to 1.2124 – 1.2106. A breakdown of 1.2273 could send the pair towards 1.2414.

News feed for 2020.12.22:

• – 16:30 (GMT+2) US GDP (Final Estimate) (Q/Q) (Q3).

The GBP/USD currency pair

Technical indicators of the currency pair:

• Prev Open: 1.3403
• Prev Close: 1.3463
• % chg. over the last day: +0.45%

On Monday sterling showed high volatility (just over 300 points). The bullish engulfing candlestick was formed, which usually indicates a continuation of the upward trend on the daily chart. But caution should be exercised since sterling is susceptible to changing moods in the political arena. The Brexit talks are still in the “hard decisions” phase.

Trading recommendations

• Support levels: 1.3287, 1.3187
• Resistance levels: 1.3553, 1.3623

The main trading scenario for GBP/USD is trading in a wide sideways range between 1.3553 and 1.3287. The technical indicators of the sterling are slightly weaker than the euro. ADX showed a significant increase in the trend potential on a price decline. But it hardly reacted to the reverse upward movement, which may indicate growth as a false movement. The price remained fixed below the moving averages. MACD is near zero. There is a weak southern signal, the pair may take a position of waiting for drivers in one direction or another.

Alternative scenario: if the price consolidates above 1.3553, it is likely to resume its growth. A breakdown of 1.3287 will give a signal for further decline.

News feed for 2020.12.22:

• – 12:30 (GMT+2) UK GDP (g/g) (3 sq.).

The USD/JPY currency pair

Technical indicators of the currency pair:

• Prev Open: 103.51
• Prev Close: 103.29
• % chg. over the last day: -0.21%

On Monday, USD/JPY from the first resistance level and formed a “bearish engulfing” on the daily candle. In fact, the pair was simply correlating with the major majors, moving in the wake of the dollar index. The reaction to the falling stock indices was minimal, and the volatility still remains low.

Trading recommendations

• Support levels: 103.26, 102.89
• Resistance levels: 103.93, 104.15

The main scenario is trading in a sideways range with little priority to buying. Within the day, a “double bottom” pattern has formed on the chart, which gives a signal to buy. But it is the only one. The rest of the technical indicators are mixed. The ADX reacts quickly to growth and decline, indicating equal strength of bulls and bears. MACD is near zero and the price is stuck near the moving averages.

An alternative scenario assumes a breakdown of 103.26 and the development of a further fall. In the case of overcoming 103.93, further growth is possible.

News feed for 2020.12.22:

• – 16:30 (GMT+2) US GDP (Final Estimate) (Q/Q) (Q3).

The USD/CAD currency pair

Technical indicators of the currency pair:

• Prev Open: 1.2795
• Prev Close: 1.2853
• % chg. over the last day: +0.45%

USD/CAD is the only monitored pair that did not retrace its trend intraday on Monday. The northerly movement remains in effect, although the long shadow above is alarming. Since the opening of the week, oil quotes have lost about $ 1.5 (-3%), which supports the bullish trend in the instrument.

Trading recommendations

• Support levels: 1.2789, 1.2688
• Resistance levels: 1.2954, 1.3079

The main scenario is buying. ADX confirms the growing strength of the northward movement. There was no reaction to the rollback. The moving averages SMA 50 and SMA 100 have completely rebuilt in the upward direction.

Alternative scenario: if the price can return below 1.2787, the southern trend will regain its strength.

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 Lukman Otunuga, 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

by JustForex

The EUR/USD currency pair

Technical indicators of the currency pair:

• Prev Open: 1.2268
• Prev Close: 1.2254
• % chg. over the last day: -0.11%

EUR/USD closed slightly lower on Friday. With the opening of the Asian session, a gap of 30 points was formed, and the pair continued to decline. The driver was the expectation of closing the borders of Germany and France with Great Britain. Information about the new mutation of the virus is forcing other EU countries to follow their example. Italy, the Netherlands, and Belgium are among them.

Trading recommendations

• Support levels: 1.2177, 1.2124
• Resistance levels: 1.2273

The main scenario: selling. Fear has appeared in the European market, which stimulates the strengthening of the dollar. The pair quickly fixed below the two moving averages SMA 50 and SMA 100. The MACD quickly moved to the negative zone, and the overall monthly chart for December indicated divergence, which strengthens the southern signal. The ADX reacts flabbily, which indicates further slow downward movement.

Alternative scenario: if the price can fix above the level of 1.2239, it is possible that the price will return to the maximum of 1.2273 and higher.

There is no news feed for today.

The GBP/USD currency pair

Technical indicators of the currency pair:

• Prev Open: 1.3578
• Prev Close: 1.3521
• % chg. over the last day: -0,42%

On Friday, traders were disappointed because of the lack of progress in the Brexit negotiations. The problems remained the same — the controversial issue of fishing. The sterling started a correction. In the Asian session, the pressure on the British currency increased significantly after information about the closure of the EU borders with Britain amid the aggravation of the situation with the coronavirus pandemic. It seems that the pound not only lost its drivers for growth but also received a portion of the bearish onslaught.

Trading recommendations

• Support levels: 1.3287, 1.3224
• Resistance levels: 1.3553, 1.3623

The main scenario: selling. The ADX shows a significant increase in the potential of the downtrend, which indicates that sales are strengthening. The signal about a change in direction that was received on Friday intensified. The MACD accelerated the movement in the negative direction on the hourly timeframe. The price fixed well below the two moving averages SMA 100 and SMA 50.

Alternative scenario: if the price fixes below 1.3520, the pair is likely to resume its growth.

News feed for 2020.12.21:

• – United Kingdom CBI Industrial Orders (Dec) at 14:00 (GMT+2).

The USD/JPY currency pair

Technical indicators of the currency pair:

• Prev Open: 103.09
• Prev Close: 103.31
• % chg. over the last day: +0.21%

On Friday, the currency pair consolidated near the price level of 103.40 after a quick fall to the 102nd figure. The opening of the Asian session triggered a small jump northward due to the rise in the dollar index. But price fluctuations remain low. On the one hand, the dollar is pulling the pair up. But on the other hand, the fear in the market of risky assets makes investors seek refuge, which may influence the increase of the Japanese yen in price.

Trading recommendations

• Support levels: 103.26, 102.89
• Resistance levels: 103.93, 104.15

The main scenario is trading in a sideways range with little priority to buying. The northern impulse into the Asian session didn’t continue into the European one. For this pair, the entire news feed is mixed. The price position between the two moving averages SMA 50 and SMA 100 confirms the expectations of weak dynamics. The MACD is in the positive zone, but there are no signs of acceleration. The ADX level is also low but directed upwards.

An alternative scenario assumes a break-through of 103.26 and the development of a further fall.

There is no news feed for today.

The USD/CAD currency pair

Technical indicators of the currency pair:

• Prev Open: 1.2717
• Prev Close: 1.2781
• % chg. over the last day: +0.50%

After Friday’s consolidation near the annual minimums, the pair quickly moved to an uptrend. The growth driver is the growth of the dollar index and the correction in the oil market. After the reports of an aggravation of the situation with the coronavirus in Europe, leading to the closure of borders, the commodity indices declined in price. Oil quotes demonstrated a sharp decline, which exerted pressure on the Canadian dollar.

Trading recommendations

• Support levels: 1.2789, 1.2688
• Resistance levels: 1.3079, 1.3172

The main scenario is buying. Since the pair was declining during the entire December without significant pullbacks, the first resistance level turned out to be quite high. But if the southern impulse in the oil market continues, it will be quite possible to achieve it. After the triple divergence, the MACD has confidently fixed in the positive zone, which gives a signal for a deep correction. The ADX is weak and, possibly, there will be a slow rise during the day.

Alternative scenario: if the price can return below 1.2757, the southern trend will continue.

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.