InvestMacro

Article By RoboForex.com

XAUUSD, “Gold vs US Dollar”

XAUUSD is trading at 1906.00; 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 1895.00 and then resume moving upwards to reach 1945.00. 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 1860.00. In this case, the pair may continue falling towards 1805.00.

AUDUSD, “Australian Dollar vs US Dollar”

AUDUSD is trading at 0.7562; 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 0.7585 and then resume moving downwards to reach 0.7445. 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 0.7635. In this case, the pair may continue growing towards 0.7765.

EURUSD, “Euro vs US Dollar”

EURUSD is trading at 1.2183; 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 1.2195 and then resume moving downwards to reach 1.2065. Another signal in favor of further downtrend will be a rebound from the rising channel’s downside border. However, the bearish scenario may be canceled if the price breaks the cloud’s upside border and fixes above 1.2275. In this case, the pair may continue growing towards 1.2365.

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, after updating the previous local high and breaking 38.2% fibo, XAUUSD couldn’t reach 50.0% fibo at 1919.00. At the same time, there was a divergence on MACD, which made the pair plunge. However, the asset may yet start a new rising impulse to reach a more significant target, 61.8% fibo at 1956.50. On the other hand, if the instrument continues falling and breaks the low at 1764.36, it will continue falling to reach its mid-term target at 38.2% fibo at 1725.37.

The H1 chart shows a more detailed structure of the current descending tendency after a divergence on MACD. By now, it has already broken 23.6% fibo and may later continue towards 38.2%, 50.0%, 61.8%, and 76.0% fibo at 1852.28, 1835.59, 1818.90, and 1798.66 respectively. However, a breakout of the local high at 1906.73 will result in further trend to the upside.

USDCHF, “US Dollar vs Swiss Franc”

As we can see in the H4 chart, after testing the post-correctional extension area between 138.2% and 161.8% fibo at 0.8886 and 0.8816 respectively, USDCHF has started a new correction towards the resistance area at 0.8999 because of the long-term convergence on MACD. After completing the correction, the asset may start another descending wave; the downside target is the long-term 50.0% fibo at 0.8707.

In the H1 chart, after breaking 236% fibo, the pair is still moving upwards to reach 38.2% fibo at 0.8926. Later, the market may continue growing towards 50.0% and 61.8% fibo at 0.8957 and 0.8990 respectively. A breakout of the support at 0.8822 will complete this local correction and result in further mid-term downtrend.

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

After the stock indexes stopped growing on Friday, the situation with risky assets worsened later on Monday. After the discovery of a new strain of the Covid-19 virus in the UK, which – the British authorities claim – is spreading 70% faster and out of control, investors have begun to flee to defensive assets. The main blow will again fall on the tourism sector and airlines. Thousands of flights are canceled.

The situation is further aggravated with the lack of a breakthrough in the Brexit negotiations. Another “last day” was missed when the main controversial issues must have been settled. Taking into account the issues at the border due to the coronavirus, a panic has set out in logistics companies, as the roads on both sides of the English Channel have been clogged for several days. The Food and Beverage Federation has warned of the possibility of serious disruptions in the supply of fresh food during the Christmas season.

Stock indices are at risk of a triple hit this week. Firstly, of course, the market has taken into account that the end of the year would be unsatisfactory in terms of the epidemiological situation. Big players, however, are already saying that no one expected this time to be “that bad.” Second, the deadline for an agreement between the EU and the UK is getting close. If there is no agreement, then on January 1, Britain will begin trade with the EU in accordance with WTO rules, and this promises additional customs duties. Thirdly, by the end of the year, investors can close long positions which will accelerate the fall of stock markets. Taking into account that there are few bullish drivers at the beginning of the week, the market risks becoming bearish.

Given the backdrop of new shocks, the dollar index has accelerated its corrective growth and returned above the key level of 90, adding 0.57%. The yield on benchmark US Treasuries has fallen by 40 basis points at once to 0.908%. The British Gilts have suffered the largest losses – 65 basis points.

Major stock indices are trading down:

S&P 500 (F) 3,686.88 -19.37 -0.52%

Dow Jones 30,179.05 -124.32 -0.41%

DAX 13,341.20 -289.31 -2.12%

FTSE 100 6,434.06 -95.12 -1.46%

• – 14:00 (GMT+3). UK Industrial Orders Index (CBI) (dec).

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

AUDUSD, “Australian Dollar vs US Dollar”

AUDUSD is trading at 0.7592; the instrument is moving above Ichimoku Cloud, thus indicating an ascending tendency. The markets could indicate that the price may test the cloud’s downside border at 0.7575 and then resume moving upwards to reach 0.7690. 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 0.7530. In this case, the pair may continue falling towards 0.7445.

EURUSD, “Euro vs US Dollar”

EURUSD is trading at 1.2240; 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 1.2205 and then resume moving upwards to reach 1.2350. 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 1.2155. In this case, the pair may continue falling towards 1.2065.

USDJPY, “US Dollar vs Japanese Yen”

USDJPY is trading at 103.36; 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 103.50 and then resume moving downwards to reach 102.55. Another signal in favor of 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 103.75. In this case, the pair may continue growing towards 104.85.

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

Stock market indices have stopped going up as the news about renewed tensions between the US and China was released. On Thursday evening, it became known that the United States was ready to blacklist dozens of Chinese companies. Investors’ appetite for risk has plummeted, but the indices show more consolidation than preparation for a correction.

The Brexit issue is still of greater importance to the market. David Frost claims that negotiations are blocked again, and time is running out. Still no consensus has been found in the fishing question. Ursula von der Leyen, for her part, warns that “great differences” persist and that “overcoming them will be very difficult.” Given such conditions, sterling started declining.British Gilts has increased in price since the opening of the European session, while the yield has fallen to 0.253%.

The market in the Brexit issue will take into account the statements of the Bank of England. On Thursday, the British monetary regulator stated it would leave interest rates unchanged at 0.1% and bond buyback at £875 bn. However, the regulator is ready to quickly adjust the policy in case of failure in the negotiations. Any aggravation in the negotiations between the EU and the UK will imply for investors milder terms of the Bank of England lending in the future.

As a result of new shocks, the dollar index has transitioned to correctional growth. In the European session, USDX has reached 89.838 (+0.11%). The dollar bulls are backed by pending talks in Washington, DC for a new aid package. No agreement has yet been reached, and negotiations have been postponed until the weekend.

Market indicators

Major market stocks are trading as usual:

S&P 500 (F) 3.712,38 -0,37 -0,01%

DAX 13.691,25 +24,00 +0,18%

FTSE 100 6.576,29 +25,23 +0,39%

• – 10:00 UK Retail Sales (MoM) (GMT+3);
• – 12:00 German IFO Business Climate Index (GMT+3);
• – 12:00 Baseline Retail Sales (MoM) in Canada (GMT+3).

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

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 descending tendency continues. Right now, after forming several reversal patterns, such as Hammer, not far from the support level, USDCAD has reversed in the form of another correction and may later continue falling within the descending channel. in this case, the downside target will be at 1.2635. However, an alternative scenario implies that the price may start a new pullback to return to 1.2825 before resuming the downtrend.

AUDUSD, “Australian Dollar vs US Dollar”

As we can see in the H4 chart, after forming a Shooting Star pattern and reversing, AUDUSD continues growing within the rising channel. In this case, the upside target will be the next resistance level at 0.7660. At the same time, an opposite scenario says that the price may continue falling to return to 0.7545 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 support area, USDCHF may later resume the descending tendency. In this case, the next downside target may be the support area at 0.8790. 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.

Article By RoboForex.com

USDCHF, “US Dollar vs Swiss Franc”

As we can see in the H4 chart, USDCHF is moving below the 200-day Moving Average, thus indicating a descending tendency. In this case, the price is expected to continue falling to reach the closest support at 0/8. Still, this scenario may no longer be valid if the price breaks 1/8 to the upside. After that, the instrument may reverse and correct 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 the descending tendency.

XAUUSD, “Gold vs US Dollar”

In the H4 chart, XAUUSD is consolidating. In this case, the price is expected to break 4/8 upwards and continue growing to reach the resistance at 5/8. However, this scenario may no longer be valid if the price breaks the support at 3/8 to the downside. After that, the instrument may continue falling towards 2/8.

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

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: 1.2149
• Prev Close: 1.2198
• % chg. over the last day: +0.40%

On Wednesday afternoon, together with the positive PMI data, EUR/USD was able to break through the upper border of consolidation and, possibly, headed to conquer new highs at the level of 1.2414, which is the maximum of April 2018. The Fed didn’t support the precipitous dollar, promising to extend the asset purchase program as long as it will be necessary. Both factors are bullish for the pair.

Trading recommendations

• Support levels: 1.2177, 1.2124
• Resistance levels: 1.2414

The main scenario: buying on a decline. The broken upper border of the range is likely to provide the support. The MACD confirms the rise. The ADX also indicates an uptrend scenario, but at a slow pace. Most likely, the pair will soon form a new maximum and show the boundaries of a new range.

Alternative scenario: if the price can fix below the level of 1.2177, it is possible that the price will return to the previous range or move to correction.

News feed for 2020.12.17:

• – Philadelphia Fed Manufacturing Index (Dec) at 16:30 (GMT+2).

The GBP/USD currency pair

Technical indicators of the currency pair:

• Prev Open: 1.3458
• Prev Close: 1.3504
• % chg. over the last day: +0,34%

The sterling continues to demonstrate a steady uptrend. On Wednesday, the quotes reached 1.3552 – the highest level since May last year. The bulls could do with disappointing statistics from the service sector – the most economically important one for the Foggy Albion. The figures didn’t demonstrate the transition to growth and remained in the contraction zone at the level of 49.9. The consumer price index reflects deflation in November at the level of -0.1%, and in annual terms, there is a slowdown in the pace to 0.3% from 0.7% a month earlier.

Trading recommendations

• Support levels: 1.3449, 1.3287
• Resistance levels: 1.3613, 1.3657

The main scenario: alertness on a decline. The ADX shows the presence of bullish potential, but it’s constantly slowing down. The MACD still signals an approaching correction, as the divergence doesn’t disappear. The pair has moved far from the moving averages located at 1.3456 (SMA 50) and 1.3377 (SMA 100), which indirectly indicates a short-term overbought. It is advisable to wait for the rollback of the price to open long positions.

Alternative scenario: if the price fixes below 1.3456, the bullish momentum will be lost and we can consider selling the currency pair.

News feed for 2020.12.17:

• – BOE Interest Rate Decision at 15:00.

The USD/JPY currency pair

Technical indicators of the currency pair:

• Prev Open: 103.66
• Prev Close: 103.45
• % chg. over the last day: -0.20%

The USD/JPY currency pair is somewhat surprising in the currency market. The bearish direction can be explained by the decline in the dollar index, but only partially. A positive sentiment in the stock market and a lack of fear in the credit market usually support the pair. But while the yields of the benchmark US Treasuries are far from their minimum and the stock market is trading at its maximum, USD/JPY is near the minimum of this March.

Trading recommendations

• Support levels: 103.17, 103.09
• Resistance levels: 103.93, 104.15

The main trading scenario for the pai: selling on growth, but after a rollback to the moving averages. An uptrend correction is possible during the day, as the pair has reached support levels. In the Asian session, the southern impetus is ineffectually supporting the ADX, showing a slow rise. The trend potential is falling. The MACD is in the negative zone, but it will form a divergence in case of a rollback. The rise to the moving averages 103.59 – 103.79 and renewal of the fall is possible.

An alternative scenario assumes a break-through of 103.79 and the development of a deeper correction to 103.93 and 104.15.

News feed for 2020.12.17:

• – Philadelphia Fed Manufacturing Index (Dec) at 16:30 (GMT+2).

The USD/CAD currency pair

Technical indicators of the currency pair:

• Prev Open: 1.2697
• Prev Close: 1.2736
• % chg. over the last day: +0.31%

Yesterday this currency pair was the only one of the majors where the US dollar was in the positive zone by the end of the day. But it’s most likely that there will be no tendency to continue strengthening the USD. The oil market continues to grow, supporting the Canadian and other commodity currencies. There are no signs of a reversal.

Trading recommendations

• Support levels: 1.2688, 1.2528
• Resistance levels: 1.2792, 1.2835

We are considering selling up to the level of 1.2528. The movement may be accelerated due to oil prices. The ADX indicates growth of the potential and there is a possibility of a break-through of the first support level.

Alternative scenario: if the price manages to return above 1.2792, the south trend will be broken and a buy signal will appear towards the level of 1.2835.

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.