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Ichimoku Cloud Analysis 13.12.2022 (EURUSD, XAUUSD, USDCAD)

EURUSD, “Euro vs US Dollar”

The currency pair is testing the signal lines of the Cloud. The instrument is going above the Ichimoku Cloud, which suggests an uptrend. A test of the Kijun-Sen line at 1.0550 is expected, followed by growth to 1.0725. An additional signal confirming the growth will be a bounce off the lower border of the Triangle pattern. The scenario can be cancelled by a breakaway of the lower border of the Cloud and securing under 1.0385, which will mean further falling to 1.0295. The growth will be confirmed by a breakaway of the upper border of the Triangle and securing above 1.0615.

XAUUSD, “Gold vs US Dollar”

Gold is correcting after a bounce off the resistance level. The instrument is going above the Ichimoku Cloud, which suggests an uptrend. A test of the upper border of the Cloud at 1780 is expected, followed by growth to 1840. An additional signal confirming the growth will be a bounce off the lower border of the bullish channel. The scenario can be cancelled by a breakaway of the lower border of the Cloud and securing under 1760, which will mean further falling to 1710.

USDCAD, “US Dollar vs Canadian Dollar”

The currency pair is pushing off the support level. The instrument is going above the Ichimoku Cloud, which suggests an uptrend. A test of the upper border of the Cloud at 1.3595 is expected, followed by growth to 1.3845. An additional signal confirming the growth will be a bounce off the lower border of the bullish channel. The scenario can be cancelled by a breakaway of the lower border of the Cloud and securing under 1.3475, which will mean further falling to 1.3385.

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.

Financial News Forex and Currency News

13 Dec

The Analytical Overview of the Main Currency Pairs on 2022.12.13

By JustMarkets

The EUR/USD currency pair

Technical indicators of the currency pair:

Prev Open: 1.0528
Prev Close: 1.0537
% chg. over the last day: +0.09 %

The US consumer price data will be released today, and an important interest rate meeting of the Federal Reserve will be held tomorrow. Analysts forecast that the consumer inflation rate will fall from 7.7% to 7.4% year-over-year, and core inflation (which excludes food and energy prices) will fall from 6.3% to 6.1%. Amid the slowdown in rate hikes, investors will turn their attention to riskier assets such as the euro. Also, on Tuesday, Germany will publish inflation data where inflationary pressures are also expected to decrease. Thus, volatility in currency pairs with the US dollar and euro will be extremely high.

Trading recommendations

Support levels: 1.0510, 1.0483, 1.0361, 1.0332, 1.0284, 1.0193
Resistance levels: 1.0583, 1.0610

The trend on the EUR/USD currency pair on the hourly time frame is bullish. But at the moment, the price is forming a wide-volatile flat. The MACD indicator has become inactive. Under such market conditions, moving to lower time frames or waiting for an impulse movement is necessary. Buy trades are best considered from the support level of 1.0483, but with additional confirmation. Sell deals can be considered from the resistance level of 1.0584, but it is better with a confirmation in the form of a reverse initiative or a false breakout, as the level has already been tested.

Alternative scenario: if the price breaks down through the support level of 1.0446 and fixes below it, the downtrend will likely resume.

News feed for 2022.12.13:

– German Consumer Price Index (m/m) at 09:00 (GMT+2);
– German ZEW Economic Sentiment (m/m) at 12:00 (GMT+2);
– Eurozone ZEW Economic Sentiment (m/m) at 12:00 (GMT+2);
– US Consumer Price Index (m/m) at 15:30 (GMT+2).

The GBP/USD currency pair

Technical indicators of the currency pair:

Prev Open: 1.2245
Prev Close: 1.2264
% chg. over the last day: +0.16 %

The Bank of England and the UK Treasury have already acknowledged that the country is in recession. However, technically, there have not been two consecutive quarters of negative growth so far. There has only been one-quarter of negative growth. The latest GDP data showed that the UK economy grew by 0.5% in the last month. Since the last Bank of England meeting, the data have been consistent with the recession estimate but not as bad as expected. This creates a difficult scenario for the Bank of England as inflation is still in double digits, and therefore the Bank of England is likely to raise its rate by 0.5% this Thursday.

Trading recommendations

Support levels: 1.2177, 1.2024, 1.1964, 1.1684, 1.1476, 1.1418
Resistance levels: 1.2304, 1.2381, 1.2431

From the technical point of view, the GBP/USD currency pair trend on the hourly time frame is bullish. The price is trading at the level of the moving averages, but there are signs of liquidity narrowing. The MACD indicator has become inactive. Under such market conditions, buy trades are better to look for from the support level of 1.2177, but with confirmation on intraday time frames. Sell trades are best looked for from the resistance level of 1.2304 but also better with confirmation in the form of a reverse initiative or a false breakout.

Alternative scenario: if the price breaks down from the 1.2100 support level and fixes below it, the downtrend will likely resume.

News feed for 2022.12.13:

– UK Average Earnings Index (m/m) at 09:00 (GMT+2);
– UK Claimant Count Change (m/m) at 09:00 (GMT+2);
– UK Unemployment Rate (m/m) at 09:00 (GMT+2);
– UK BoE Gov Bailey Speaks at 13:00 (GMT+2).

The USD/JPY currency pair

Technical indicators of the currency pair:

Prev Open: 136.55
Prev Close: 137.64
% chg. over the last day: +0.79 %

The situation on the USD/JPY currency pair has not changed. Fundamentally, in the medium term, USD/JPY quotes are inclined to grow as the difference between the interest rates of the US Federal Reserve and the Bank of Japan is increasing. On Wednesday, the Fed will raise the rate by at least another 0.5%, while the Bank of Japan is firmly committed to a soft monetary policy until spring 2023. This divergent policy contributes to the decline of the Japanese currency against the dollar.

Trading recommendations

Support levels: 137.13, 135.33, 133.53
Resistance levels: 139.09, 140.75, 143.17, 145.16

From the technical point of view, the medium-term trend on the currency pair USD/JPY is bearish. The MACD indicator is in the positive zone, and the buyer’s pressure on the intraday time frames is increasing, but there are the first signs of divergence. Sell deals can be looked for from the resistance level of 139.09 if there is a reverse reaction. Buy trades are best considered on intraday time frames from the support level of 137.13, but only with confirmation.

Alternative scenario: If the price fixes above 139.00, the uptrend will likely resume.

There is no news feed for today.

The USD/CAD currency pair

Technical indicators of the currency pair:

Prev Open: 1.3633
Prev Close: 1.3633
% chg. over the last day: 0.00 %

Oil prices jumped by 3% yesterday. Oil was supported by the continued closure of the pipeline that connects Canadian oil to the US Gulf Coast. How long it will take Canada’s TC Energy Corp to clean up and restart its Keystone pipeline is still unknown. The Canadian dollar is a commodity currency, so rising oil prices have strengthened the Canadian dollar. A decline in US inflation today may trigger a further rise in oil prices.

Trading recommendations

Support levels: 1.3621, 1.3518, 1.3438, 1.3386, 1.3360, 1.3281, 1.3212
Resistance levels: 1.3690, 1.3776, 1.3855

From the point of view of technical analysis, the trend on the USD/CAD currency pair has changed to bullish. The price is trading at the level of moving averages, and the MACD indicator has become inactive. Such market conditions significantly complicate the search for good entry points. Buy trades should be considered from the 1.3621 support level, but with additional confirmation. For sell deals, it is better to consider the resistance level of 1.3690 but with confirmation in the form of a reverse initiative or after a false breakout, as the level has already been tested.

Alternative scenario: if the price breaks down and consolidates below the support level of 1.3386, the downtrend will likely resume.

There is no news feed for today.

By JustMarkets

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.

Financial News Forex and Currency News

12 Dec

Trade Of The Week: Heavy Event Week To Trigger GBPUSD Breakout?

By ForexTime

Watch this space as the GBPUSD could enter into the holiday season with a bang!

Later this week, investors will be served a super combo of top-tier economic data and central bank meetings featuring not only the Federal Reserve (Fed) but European Central Bank (ECB) and Bank of England (BoE). With so much going on over the next few days, volatility could be the name across currency, commodity, and equity markets.

Our focus falls on the GBPUSD which is up roughly 10% quarter-to-date. After staging a powerful rebound back in late September, prices have been supported by fundamental and technical forces. With the dollar losing its grip on the FX throne as aggressive Fed rate hike bets cool, this has fuelled sterling’s upside gains. The currency pair is bullish and could experience a breakout with the right fundamental drivers. Before we discuss what to expect from the Fed and BoE this week, it is worth keeping in mind that the USD has depreciated against every single G10 currency since the start of Q4.

On the monthly charts, bulls seem to be stealing more control with prices currently testing a sticky level around 1.2300.

The same can be said on the weekly timeframe with 1.2300 just below the 50-week SMA. Nevertheless, prices are still bullish as there have been consistently higher highs and higher lows.

Whatever the outcome of the policy meetings between the two central banks, it most likely will set the tone for the GBPUSD for the rest of 2022.

What to expect from the Fed?

The Fed is widely expected to shift into lower gear on rates in December, hiking by 50 basis points compared to the 75-basis point increases they’ve undertaken over the last four policy meetings.

Indeed, signs of easing inflationary pressures have reduced the pressure on the Fed to raise interest rates aggressively. On top of this, such a move would be consistent with recent dovish speeches from Fed officials, including Jerome Powell. The million-dollar question is what the Fed does at its next policy meeting in February 2023. Jerome Powell’s press conference and information from the December meeting could provide investors with some important insight.

Before the heavily anticipated meeting on Wednesday, all eyes will be on the latest US inflation figures on Tuesday. Inflation is expected to have slowed to 7.3% in November compared to the 7.7% witnessed in October. A figure that meets or prints below expectations may further pare back interest rate hike bets, weakening the dollar. Alternatively, a hot print could result in the Fed raising rates for longer than anticipated – boosting dollar bulls as a result.

How about the BoE?

Markets widely expect the Bank of England to hike rates by a further 50 basis points this month.

Early signs of easing inflationary pressures have reduced the pressure for the BoE to move ahead with another jumbo 75 basis point rate hike. Indeed, the latest UK CPI data for November is expected to show inflation cooling to 10.9% on an annual basis. If expectations become reality, this may suggest that inflation may have peaked at 11.1% back in October. Nevertheless, inflation is still well above the central bank’s 2% target – forcing the BoE to continue raising interest rates in 2023.

It may be wise to keep a close eye on the latest UK jobs, retail sales and PMI figures which may offer additional insight into the health of the economy. But given how the UK economy is likely in recession, the central bank is trapped between a rock and a hard place on rates and economic growth. Ultimately, investors will closely observe the meeting for clues on the pace of future rate hikes in the New Year.

GBPUSD gearing to push higher?

A weaker dollar remains one of the major driving forces behind the GBPUSD’s upside momentum. However, prices remain within a minor range with support at 1.2120 and resistance at 1.2300.

The currency pair is firmly bullish on the daily charts as there have been consistently higher highs and highs and higher lows. Prices are trading above the 50, 100, and 200-day SMA while the MACD trades above zero. A solid breakout and daily close above 1.2300 may open the doors towards 1.2460 and 1.2650. Alternately, a move back below 1.2120 (where the 200-day SMA resides) could signal a selloff towards 1.1900 and 1.1750, respectively.

Article by ForexTime

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

Forex and Currency News Opinions

12 Dec

Ichimoku Cloud Analysis 12.12.2022 (GBPUSD, USDJPY, NZDUSD)

By RoboForex.com

GBPUSD, “Great Britain Pound vs US Dollar”

The currency pair is testing the signal lines of the indicator. The instrument is going above the Ichimoku Cloud, which indicates prevalence of an uptrend. A test of the upper border of the Cloud at 1.2145 is expected, followed by growth to 1.2640. An additional signal confirming the growth will be a bounce off the lower border of the bullish channel. The scenario can be cancelled by a breakaway of the lower border of the Cloud and securing under 1.2020, which will indicate further falling to 1.1925.

USDJPY, “US Dollar vs Japanese Yen”

The currency pair has left the descending channel. The pair is going inside the Cloud, which indicates a flat. A test of the lower border of the Cloud is expected at 136.35, followed by growth to 141.85. An additional signal confirming the growth will be a bounce off the lower border of the bullish channel. The scenario can be cancelled by a breakaway of the lower border of the Cloud and securing under 135.25, which will mean further falling to 134.35. The growth will be confirmed by a breakaway of the upper border of the descending channel and securing above 138.05.

NZDUSD, “New Zealand Dollar vs US Dollar”

The currency pair is pushing off the Tenkan-Sen line. The instrument is going above the Ichimoku Cloud, indicating an uptrend. A test of the Kijun-Sen line is expected at 0.6355, followed by growth to 0.6605. An additional signal confirming the growth will be a bounce off the lower border of the bullish channel. The scenario can be cancelled by a breakaway of the lower border of the Cloud and securing under 0.6235, which will entail further falling to 0.6245.

Article By RoboForex.com

Financial News Forex and Currency News

12 Dec

The Analytical Overview of the Main Currency Pairs on 2022.12.12

By JustMarkets

The EUR/USD currency pair

Technical indicators of the currency pair:

Prev Open: 1.0555
Prev Close: 1.0532
% chg. over the last day: -0.21 %

This week, the ECB will hold its last monetary policy meeting of the year. Analysts expect the ECB to raise the interest rate by another 50 basis points. But the main focus of investors right now is not on the size of the rate hike but on the final rate level and what the rate difference will be between the US Fed and the ECB. The bigger the difference between the two, the stronger the dollar index against the euro.

Trading recommendations

Support levels: 1.0483, 1.0361, 1.0332, 1.0284, 1.0193
Resistance levels: 1.0584, 1.0610

The trend on the EUR/USD currency pair on the hourly time frame is bullish. But at the moment, the price is trading below the moving averages, and the MACD indicator has become negative. On the intraday time frames, the sellers have taken over the initiative. Under such market conditions, buy trades are best considered from the support level of 1.0483 but with additional confirmation. Sell deals can be considered from the resistance level of 1.0584, but better with a confirmation in the form of a reverse initiative or a false breakout, as the level has already been tested.

Alternative scenario: if the price breaks down through the support level of 1.0446 and fixes below it, the downtrend will likely resume.

There is no news feed for today.

The GBP/USD currency pair

Technical indicators of the currency pair:

Prev Open: 1.2231
Prev Close: 1.2266
% chg. over the last day: +0.28 %

The UK government on Friday announced sweeping financial regulatory reforms that, according to Jeremy Hunt, will change the EU laws that have prevented the country from developing normally after Brexit. The package of 30 measures includes easing a rule requiring banks to separate their retail operations from their investment units. The changes announced in the package, dubbed the “Edinburgh Reforms,” also include a review of short-selling rules, stock exchange listings of companies, insurers’ balance sheets, and real estate investment funds. Treasury Secretary Jeremy Hunt said he wants to ensure Britain’s status as “one of the most open, dynamic, and competitive financial services centers in the world.”

Trading recommendations

Support levels: 1.2177, 1.2024, 1.1964, 1.1684, 1.1476, 1.1418
Resistance levels: 1.2279, 1.2304, 1.2381, 1.2431

From the technical point of view, the GBP/USD currency pair trend on the hourly time frame is bullish. The price is trading at the level of the moving averages. The MACD indicator has become inactive. Under such market conditions, it is better to look for buy deals from the support level of 1.2177, but with confirmation on intraday time frames. Sell trades are best looked for from the resistance level of 1.2279 but also better with confirmation in the form of a reverse initiative or a false breakout.

Alternative scenario: if the price breaks down from the 1.2100 support level and fixes below it, the downtrend will likely resume.

News feed for 2022.12.12:

– UK GDP (m/m) at 09:00 (GMT+2);
– UK Industrial Production (m/m) at 09:00 (GMT+2);
– UK Manufacturing Production (m/m) at 09:00 (GMT+2).

The USD/JPY currency pair

Technical indicators of the currency pair:

Prev Open: 136.68
Prev Close: 136.58
% chg. over the last day: -0.07 %

The Japanese Yen will now be completely dependent on the Dollar Index, as the divergent policies of the Japanese central banks and the US Federal Reserve leave no chance for the yen. Since a rate hike from the Fed on Wednesday is largely seen as a foregone conclusion, investors are focused on the Fed’s projections regarding the final rate point. Therefore, fundamentally, USD/JPY quotes are prone to further growth.

Trading recommendations

Support levels: 135.33, 133.53
Resistance levels: 137.42, 139.09, 140.75, 143.17, 145.16

From the technical point of view, the medium-term trend on the currency pair USD/JPY is bearish. The MACD indicator is positive again, and the buyers’ pressure on the intraday time frames is increasing. Sell deals may be looked for from the resistance level of 137.24, provided that there is a reverse reaction. Buy trades are best considered on intraday time frames from the support level of 135.33, but only with confirmation.

Alternative scenario: If the price fixes above 138.00, the uptrend will likely resume.

There is no news feed for today.

The USD/CAD currency pair

Technical indicators of the currency pair:

Prev Open: 1.3590
Prev Close: 1.3645
% chg. over the last day: +0.40 %

The Canadian dollar is a commodity currency. Falling oil prices last week caused the Canadian dollar to fall against other currencies, especially against the US dollar. On the one hand, this is a negative sign. On the other hand, a decrease in oil prices will have a downward effect on inflation, leading to an increase in production figures. Currently, the Bank of Canada keeps the rate higher than the US Federal Reserve and the ECB, so the Canadian dollar has a solid fundamental basis.

Trading recommendations

Support levels: 1.3621, 1.3518, 1.3438, 1.3386, 1.3360, 1.3281, 1.3212
Resistance levels: 1.3690, 1.3776, 1.3855

From the point of view of technical analysis, the trend on the USD/CAD currency pair has changed to bullish. The price is trading above the moving averages, and the MACD indicator is in the positive zone. But the price is in front of the resistance level. Under such market conditions, buy trades should be considered after a slight pullback to the support level of 1.3621, but with additional confirmation. For sell deals, it is best to consider the resistance level of 1.3690 but with a confirmation in the form of a reverse initiative or after a false breakout, as the level has already been tested.

Alternative scenario: if the price breaks down and consolidates below the support level of 1.3386, the downtrend will likely resume.

News feed for 2022.12.12:

– Canada BoC Gov Macklem Speaks at 22:25 (GMT+2).

By JustMarkets

Financial News Forex and Currency News

10 Dec

COT Currency Speculators drive Euro bullish bets to a 92-week high

By InvestMacro

Here are the latest charts and statistics for the Commitment of Traders (COT) data published by the Commodities Futures Trading Commission (CFTC).

The latest COT data is updated through Tuesday December 6th and shows a quick view of how large market participants (for-profit speculators and commercial traders) were positioned in the futures markets. All currency positions are in direct relation to the US dollar where, for example, a bet for the euro is a bet that the euro will rise versus the dollar while a bet against the euro will be a bet that the euro will decline versus the dollar.

British pound sterling & Australian dollar lead Weekly Speculator Changes

COT currency market speculator bets were slightly lower this week as five out of the eleven currency markets we cover had higher positioning while the other six markets had lower speculator contracts.

Leading the gains for the currency markets was the British pound sterling (8,391 contracts) with the Australian dollar (4,067 contracts), the Euro (2,636 contracts), the Swiss franc (2,017 contracts) and the Japanese yen (1,398 contracts) also showing a positive week.

The currencies leading the declines in speculator bets this week were the Mexican peso (-18,134 contracts) with the Canadian dollar (-5,974 contracts), the Brazilian real (-5,439 contracts), the New Zealand dollar (-1,444 contracts), Bitcoin (-257 contracts) and the US Dollar Index (-6 contracts) also registering lower bets on the week.

Highlighting the COT currency data this week is the rising Euro positioning. Large speculators increased their bullish bets for the Euro this week for the seventh time out of the past eight weeks and for the twelfth time out of the past thirteen weeks. The Euro speculator position has gone from a total of -47,676 contracts on August 30th to a total of +124,883 contracts this week for a thirteen-week change of +172,559 contracts. The current speculator standing for the Euro has now ascended to the most bullish level since March 2nd of 2021, a span of ninety-two weeks.

The Euro (EURUSD) price has been on a bullish trend as well since falling to an approximate 20-year low in September at a below parity exchange rate of 0.9593. Since the September low, the Euro has rallied by approximately 9 percent and is now trading at the highest levels since June with this week’s close above the 1.0550 exchange rate.

Data Snapshot of Forex Market Traders | Columns Legend

Dec-06-2022	OI	OI-Index	Spec-Net	Spec-Index	Com-Net	COM-Index	Smalls-Net	Smalls-Index
USD Index	45,115	56	24,886	66	-27,540	32	2,654	46
EUR	711,537	84	124,883	73	-160,005	31	35,122	35
GBP	230,311	55	-28,193	45	37,774	60	-9,581	39
JPY	223,424	64	-65,996	28	75,202	72	-9,206	35
CHF	40,171	33	-12,230	22	17,859	74	-5,629	38
CAD	148,891	29	-22,090	15	22,905	88	-815	28
AUD	158,755	51	-40,563	47	42,820	51	-2,257	47
NZD	42,954	36	-6,498	37	6,301	61	197	54
MXN	293,708	93	47,952	48	-53,360	51	5,408	66
RUB	20,930	4	7,543	31	-7,150	69	-393	24
BRL	25,464	7	2,198	48	-4,324	51	2,126	86
Bitcoin	15,769	83	67	78	-568	0	501	24

Strength Scores led by Bitcoin & EuroFX

Strength Scores (a normalized measure of Speculator positions over a 3-Year range, from 0 to 100 where above 80 is extreme bullish and below 20 is extreme bearish) showed that Bitcoin (78.1 percent) and the EuroFX (73.3 percent) lead the currency markets currently. The US Dollar Index (66.4 percent) comes in as the next highest in the currency markets in strength scores.

On the downside, the Canadian Dollar (15.5 percent) comes in at the lowest strength level currently and the only currency in an Extreme-Bearish position (below 20 percent).

Strength Statistics:
US Dollar Index (66.4 percent) vs US Dollar Index previous week (66.4 percent)
EuroFX (73.3 percent) vs EuroFX previous week (72.5 percent)
British Pound Sterling (44.8 percent) vs British Pound Sterling previous week (37.6 percent)
Japanese Yen (28.2 percent) vs Japanese Yen previous week (27.4 percent)
Swiss Franc (22.3 percent) vs Swiss Franc previous week (16.9 percent)
Canadian Dollar (15.5 percent) vs Canadian Dollar previous week (22.6 percent)
Australian Dollar (47.2 percent) vs Australian Dollar previous week (43.5 percent)
New Zealand Dollar (36.8 percent) vs New Zealand Dollar previous week (40.7 percent)
Mexican Peso (47.8 percent) vs Mexican Peso previous week (55.5 percent)
Brazilian Real (48.3 percent) vs Brazilian Real previous week (54.1 percent)
Bitcoin (78.1 percent) vs Bitcoin previous week (82.6 percent)

Japanese Yen tops Strength Trends

Strength Score Trends (or move index, calculates the 6-week changes in strength scores) show that the Japanese Yen (22.6 percent) leads the past six weeks trends for the currency markets this week. The New Zealand Dollar (17.1 percent), the British Pound Sterling (16.8 percent), the EuroFX (15.3 percent) and the Australian Dollar (10.1 percent) fill out the top movers in the latest trends data.

The Brazilian Real (-28.9 percent) leads the downside trend scores currently while the next markets with lower trend scores were the US Dollar Index (-8.7 percent), the Canadian Dollar (-4.7 percent) and the Swiss Franc (-2.5 percent).

Strength Trend Statistics:
US Dollar Index (-8.7 percent) vs US Dollar Index previous week (-13.0 percent)
EuroFX (15.3 percent) vs EuroFX previous week (22.7 percent)
British Pound Sterling (16.8 percent) vs British Pound Sterling previous week (12.6 percent)
Japanese Yen (22.6 percent) vs Japanese Yen previous week (16.6 percent)
Swiss Franc (-2.5 percent) vs Swiss Franc previous week (-18.9 percent)
Canadian Dollar (-4.7 percent) vs Canadian Dollar previous week (5.3 percent)
Australian Dollar (10.1 percent) vs Australian Dollar previous week (-8.6 percent)
New Zealand Dollar (17.1 percent) vs New Zealand Dollar previous week (35.8 percent)
Mexican Peso (15.1 percent) vs Mexican Peso previous week (37.7 percent)
Brazilian Real (-28.9 percent) vs Brazilian Real previous week (-20.2 percent)
Bitcoin (0.8 percent) vs Bitcoin previous week (5.3 percent)

Individual COT Forex Markets:

US Dollar Index Futures:

The US Dollar Index large speculator standing this week equaled a net position of 24,886 contracts in the data reported through Tuesday. This was a weekly decrease of -6 contracts from the previous week which had a total of 24,892 net contracts.

This week’s current strength score (the trader positioning range over the past three years, measured from 0 to 100) shows the speculators are currently Bullish with a score of 66.4 percent. The commercials are Bearish with a score of 32.0 percent and the small traders (not shown in chart) are Bearish with a score of 45.6 percent.

US DOLLAR INDEX Statistics	SPECULATORS	COMMERCIALS	SMALL TRADERS
– Percent of Open Interest Longs:	80.1	4.1	12.4
– Percent of Open Interest Shorts:	25.0	65.1	6.6
– Net Position:	24,886	-27,540	2,654
– Gross Longs:	36,157	1,838	5,610
– Gross Shorts:	11,271	29,378	2,956
– Long to Short Ratio:	3.2 to 1	0.1 to 1	1.9 to 1
NET POSITION TREND:
– Strength Index Score (3 Year Range Pct):	66.4	32.0	45.6
– Strength Index Reading (3 Year Range):	Bullish	Bearish	Bearish
NET POSITION MOVEMENT INDEX:
– 6-Week Change in Strength Index:	-8.7	10.8	-17.6

Euro Currency Futures:

The Euro Currency large speculator standing this week equaled a net position of 124,883 contracts in the data reported through Tuesday. This was a weekly advance of 2,636 contracts from the previous week which had a total of 122,247 net contracts.

This week’s current strength score (the trader positioning range over the past three years, measured from 0 to 100) shows the speculators are currently Bullish with a score of 73.3 percent. The commercials are Bearish with a score of 30.6 percent and the small traders (not shown in chart) are Bearish with a score of 35.0 percent.

EURO Currency Statistics	SPECULATORS	COMMERCIALS	SMALL TRADERS
– Percent of Open Interest Longs:	34.4	51.0	12.0
– Percent of Open Interest Shorts:	16.9	73.5	7.0
– Net Position:	124,883	-160,005	35,122
– Gross Longs:	245,063	363,169	85,050
– Gross Shorts:	120,180	523,174	49,928
– Long to Short Ratio:	2.0 to 1	0.7 to 1	1.7 to 1
NET POSITION TREND:
– Strength Index Score (3 Year Range Pct):	73.3	30.6	35.0
– Strength Index Reading (3 Year Range):	Bullish	Bearish	Bearish
NET POSITION MOVEMENT INDEX:
– 6-Week Change in Strength Index:	15.3	-18.8	25.8

British Pound Sterling Futures:

The British Pound Sterling large speculator standing this week equaled a net position of -28,193 contracts in the data reported through Tuesday. This was a weekly increase of 8,391 contracts from the previous week which had a total of -36,584 net contracts.

This week’s current strength score (the trader positioning range over the past three years, measured from 0 to 100) shows the speculators are currently Bearish with a score of 44.8 percent. The commercials are Bullish with a score of 59.7 percent and the small traders (not shown in chart) are Bearish with a score of 39.2 percent.

BRITISH POUND Statistics	SPECULATORS	COMMERCIALS	SMALL TRADERS
– Percent of Open Interest Longs:	12.4	73.3	10.0
– Percent of Open Interest Shorts:	24.6	56.9	14.1
– Net Position:	-28,193	37,774	-9,581
– Gross Longs:	28,539	168,838	22,941
– Gross Shorts:	56,732	131,064	32,522
– Long to Short Ratio:	0.5 to 1	1.3 to 1	0.7 to 1
NET POSITION TREND:
– Strength Index Score (3 Year Range Pct):	44.8	59.7	39.2
– Strength Index Reading (3 Year Range):	Bearish	Bullish	Bearish
NET POSITION MOVEMENT INDEX:
– 6-Week Change in Strength Index:	16.8	-19.6	18.0

Japanese Yen Futures:

The Japanese Yen large speculator standing this week equaled a net position of -65,996 contracts in the data reported through Tuesday. This was a weekly boost of 1,398 contracts from the previous week which had a total of -67,394 net contracts.

This week’s current strength score (the trader positioning range over the past three years, measured from 0 to 100) shows the speculators are currently Bearish with a score of 28.2 percent. The commercials are Bullish with a score of 72.3 percent and the small traders (not shown in chart) are Bearish with a score of 34.7 percent.

JAPANESE YEN Statistics	SPECULATORS	COMMERCIALS	SMALL TRADERS
– Percent of Open Interest Longs:	10.6	76.1	11.1
– Percent of Open Interest Shorts:	40.1	42.4	15.3
– Net Position:	-65,996	75,202	-9,206
– Gross Longs:	23,589	169,918	24,896
– Gross Shorts:	89,585	94,716	34,102
– Long to Short Ratio:	0.3 to 1	1.8 to 1	0.7 to 1
NET POSITION TREND:
– Strength Index Score (3 Year Range Pct):	28.2	72.3	34.7
– Strength Index Reading (3 Year Range):	Bearish	Bullish	Bearish
NET POSITION MOVEMENT INDEX:
– 6-Week Change in Strength Index:	22.6	-20.9	12.7

Swiss Franc Futures:

The Swiss Franc large speculator standing this week equaled a net position of -12,230 contracts in the data reported through Tuesday. This was a weekly increase of 2,017 contracts from the previous week which had a total of -14,247 net contracts.

This week’s current strength score (the trader positioning range over the past three years, measured from 0 to 100) shows the speculators are currently Bearish with a score of 22.3 percent. The commercials are Bullish with a score of 74.4 percent and the small traders (not shown in chart) are Bearish with a score of 38.5 percent.

SWISS FRANC Statistics	SPECULATORS	COMMERCIALS	SMALL TRADERS
– Percent of Open Interest Longs:	3.3	70.9	25.3
– Percent of Open Interest Shorts:	33.8	26.5	39.4
– Net Position:	-12,230	17,859	-5,629
– Gross Longs:	1,343	28,500	10,183
– Gross Shorts:	13,573	10,641	15,812
– Long to Short Ratio:	0.1 to 1	2.7 to 1	0.6 to 1
NET POSITION TREND:
– Strength Index Score (3 Year Range Pct):	22.3	74.4	38.5
– Strength Index Reading (3 Year Range):	Bearish	Bullish	Bearish
NET POSITION MOVEMENT INDEX:
– 6-Week Change in Strength Index:	-2.5	-8.7	21.1

Canadian Dollar Futures:

The Canadian Dollar large speculator standing this week equaled a net position of -22,090 contracts in the data reported through Tuesday. This was a weekly lowering of -5,974 contracts from the previous week which had a total of -16,116 net contracts.

This week’s current strength score (the trader positioning range over the past three years, measured from 0 to 100) shows the speculators are currently Bearish-Extreme with a score of 15.5 percent. The commercials are Bullish-Extreme with a score of 87.8 percent and the small traders (not shown in chart) are Bearish with a score of 28.5 percent.

CANADIAN DOLLAR Statistics	SPECULATORS	COMMERCIALS	SMALL TRADERS
– Percent of Open Interest Longs:	20.6	53.3	20.8
– Percent of Open Interest Shorts:	35.5	37.9	21.4
– Net Position:	-22,090	22,905	-815
– Gross Longs:	30,717	79,379	30,984
– Gross Shorts:	52,807	56,474	31,799
– Long to Short Ratio:	0.6 to 1	1.4 to 1	1.0 to 1
NET POSITION TREND:
– Strength Index Score (3 Year Range Pct):	15.5	87.8	28.5
– Strength Index Reading (3 Year Range):	Bearish-Extreme	Bullish-Extreme	Bearish
NET POSITION MOVEMENT INDEX:
– 6-Week Change in Strength Index:	-4.7	4.0	-1.8

Australian Dollar Futures:

The Australian Dollar large speculator standing this week equaled a net position of -40,563 contracts in the data reported through Tuesday. This was a weekly boost of 4,067 contracts from the previous week which had a total of -44,630 net contracts.

This week’s current strength score (the trader positioning range over the past three years, measured from 0 to 100) shows the speculators are currently Bearish with a score of 47.2 percent. The commercials are Bullish with a score of 50.8 percent and the small traders (not shown in chart) are Bearish with a score of 46.9 percent.

AUSTRALIAN DOLLAR Statistics	SPECULATORS	COMMERCIALS	SMALL TRADERS
– Percent of Open Interest Longs:	22.9	63.7	10.6
– Percent of Open Interest Shorts:	48.4	36.7	12.0
– Net Position:	-40,563	42,820	-2,257
– Gross Longs:	36,334	101,160	16,814
– Gross Shorts:	76,897	58,340	19,071
– Long to Short Ratio:	0.5 to 1	1.7 to 1	0.9 to 1
NET POSITION TREND:
– Strength Index Score (3 Year Range Pct):	47.2	50.8	46.9
– Strength Index Reading (3 Year Range):	Bearish	Bullish	Bearish
NET POSITION MOVEMENT INDEX:
– 6-Week Change in Strength Index:	10.1	-17.5	30.8

New Zealand Dollar Futures:

The New Zealand Dollar large speculator standing this week equaled a net position of -6,498 contracts in the data reported through Tuesday. This was a weekly decline of -1,444 contracts from the previous week which had a total of -5,054 net contracts.

This week’s current strength score (the trader positioning range over the past three years, measured from 0 to 100) shows the speculators are currently Bearish with a score of 36.8 percent. The commercials are Bullish with a score of 61.3 percent and the small traders (not shown in chart) are Bullish with a score of 53.9 percent.

NEW ZEALAND DOLLAR Statistics	SPECULATORS	COMMERCIALS	SMALL TRADERS
– Percent of Open Interest Longs:	38.0	53.4	7.9
– Percent of Open Interest Shorts:	53.1	38.8	7.4
– Net Position:	-6,498	6,301	197
– Gross Longs:	16,302	22,950	3,397
– Gross Shorts:	22,800	16,649	3,200
– Long to Short Ratio:	0.7 to 1	1.4 to 1	1.1 to 1
NET POSITION TREND:
– Strength Index Score (3 Year Range Pct):	36.8	61.3	53.9
– Strength Index Reading (3 Year Range):	Bearish	Bullish	Bullish
NET POSITION MOVEMENT INDEX:
– 6-Week Change in Strength Index:	17.1	-23.5	41.4

Mexican Peso Futures:

The Mexican Peso large speculator standing this week equaled a net position of 47,952 contracts in the data reported through Tuesday. This was a weekly fall of -18,134 contracts from the previous week which had a total of 66,086 net contracts.

This week’s current strength score (the trader positioning range over the past three years, measured from 0 to 100) shows the speculators are currently Bearish with a score of 47.8 percent. The commercials are Bullish with a score of 50.5 percent and the small traders (not shown in chart) are Bullish with a score of 65.9 percent.

MEXICAN PESO Statistics	SPECULATORS	COMMERCIALS	SMALL TRADERS
– Percent of Open Interest Longs:	60.5	35.9	2.7
– Percent of Open Interest Shorts:	44.1	54.1	0.8
– Net Position:	47,952	-53,360	5,408
– Gross Longs:	177,555	105,410	7,854
– Gross Shorts:	129,603	158,770	2,446
– Long to Short Ratio:	1.4 to 1	0.7 to 1	3.2 to 1
NET POSITION TREND:
– Strength Index Score (3 Year Range Pct):	47.8	50.5	65.9
– Strength Index Reading (3 Year Range):	Bearish	Bullish	Bullish
NET POSITION MOVEMENT INDEX:
– 6-Week Change in Strength Index:	15.1	-14.0	-7.7

Brazilian Real Futures:

The Brazilian Real large speculator standing this week equaled a net position of 2,198 contracts in the data reported through Tuesday. This was a weekly decrease of -5,439 contracts from the previous week which had a total of 7,637 net contracts.

This week’s current strength score (the trader positioning range over the past three years, measured from 0 to 100) shows the speculators are currently Bearish with a score of 48.3 percent. The commercials are Bullish with a score of 50.6 percent and the small traders (not shown in chart) are Bullish-Extreme with a score of 85.9 percent.

BRAZIL REAL Statistics	SPECULATORS	COMMERCIALS	SMALL TRADERS
– Percent of Open Interest Longs:	57.4	28.6	14.0
– Percent of Open Interest Shorts:	48.8	45.5	5.7
– Net Position:	2,198	-4,324	2,126
– Gross Longs:	14,625	7,271	3,566
– Gross Shorts:	12,427	11,595	1,440
– Long to Short Ratio:	1.2 to 1	0.6 to 1	2.5 to 1
NET POSITION TREND:
– Strength Index Score (3 Year Range Pct):	48.3	50.6	85.9
– Strength Index Reading (3 Year Range):	Bearish	Bullish	Bullish-Extreme
NET POSITION MOVEMENT INDEX:
– 6-Week Change in Strength Index:	-28.9	28.6	-3.2

Bitcoin Futures:

The Bitcoin large speculator standing this week equaled a net position of 67 contracts in the data reported through Tuesday. This was a weekly fall of -257 contracts from the previous week which had a total of 324 net contracts.

This week’s current strength score (the trader positioning range over the past three years, measured from 0 to 100) shows the speculators are currently Bullish with a score of 78.1 percent. The commercials are Bearish with a score of 36.9 percent and the small traders (not shown in chart) are Bearish with a score of 24.3 percent.

BITCOIN Statistics	SPECULATORS	COMMERCIALS	SMALL TRADERS
– Percent of Open Interest Longs:	80.2	1.9	8.7
– Percent of Open Interest Shorts:	79.8	5.5	5.5
– Net Position:	67	-568	501
– Gross Longs:	12,651	306	1,365
– Gross Shorts:	12,584	874	864
– Long to Short Ratio:	1.0 to 1	0.4 to 1	1.6 to 1
NET POSITION TREND:
– Strength Index Score (3 Year Range Pct):	78.1	36.9	24.3
– Strength Index Reading (3 Year Range):	Bullish	Bearish	Bearish
NET POSITION MOVEMENT INDEX:
– 6-Week Change in Strength Index:	0.8	-9.1	3.3

Article By InvestMacro – Receive our weekly COT Newsletter

*COT Report: The COT data, released weekly to the public each Friday, is updated through the most recent Tuesday (data is 3 days old) and shows a quick view of how large speculators or non-commercials (for-profit traders) were positioned in the futures markets.

The CFTC categorizes trader positions according to commercial hedgers (traders who use futures contracts for hedging as part of the business), non-commercials (large traders who speculate to realize trading profits) and nonreportable traders (usually small traders/speculators) as well as their open interest (contracts open in the market at time of reporting). See CFTC criteria here.

COT Updates Forex and Currency News Opinions

09 Dec

The Analytical Overview of the Main Currency Pairs on 2022.12.09

By JustMarkets

The EUR/USD currency pair

Technical indicators of the currency pair:

Prev Open: 1.0504
Prev Close: 1.0554
% chg. over the last day: +0.47 %

Initial jobless claims jumped to the highest level since February, indicating that unemployed people need more time to find work. These are the first signs that the US labor market is beginning to “cool down,” which will affect the Fed’s monetary policy toward slowing the rate hikes. The end of the tightening cycle is close.

Trading recommendations

Support levels: 1.0483, 1.0361, 1.0332, 1.0284, 1.0193
Resistance levels: 1.0584, 1.0610

The trend on the EUR/USD currency pair on the hourly time frame is bullish. The price is trading above the moving average lines, the MACD indicator is positive again, and buyers’ pressure remains. But now that the price has reached the resistance level, a pullback is possible. It is better to consider buy deals from the support level of 1.0483 but with additional confirmation. Sell deals can be considered from the resistance level of 1.0584, but it is better with confirmation in the form of reverse initiative.

Alternative scenario: if the price breaks down through the support level of 1.0332 and fixes below it, the downtrend will likely resume.

News feed for 2022.12.09:

– US Producer Price Index (m/m) at 15:30 (GMT+3);
– US Michigan Consumer Sentiment (m/m) at 17:00 (GMT+3).

The GBP/USD currency pair

Technical indicators of the currency pair:

Prev Open: 1.2199
Prev Close: 1.2236
% chg. over the last day: +0.30 %

The Bank of England will raise the interest rate next week. Analysts are leaning that it will be a 50 bps increase, raising the bank rate to 3.50%. Further, the Bank of England is projected to add another 50 basis points in the first quarter of 2023 and 25 basis points in the second quarter, with medians showing that the bank rate will peak at 4.25%. The UK is almost certainly headed for recession, with economists giving an average 85% chance of a recession within a year. Quarterly forecasts suggest that the economy will contract by 0.4% this year, which fits the technical definition of a recession.

Trading recommendations

Support levels: 1.2177, 1.2016, 1.1964, 1.1684, 1.1476, 1.1418
Resistance levels: 1.2279, 1.2381, 1.2431

From the technical point of view, the trend on the GBP/USD currency pair on the hourly time frame is bullish. The price is trading above the average lines. The MACD indicator returned to the positive zone, and there is a slight buying pressure inside the day. Under such market conditions, buy trades are better to look for from the support level of 1.2177, but with confirmation on intraday time frames. Sell trades are best looked for from the resistance level of 1.2279 but also better with confirmation in the form of a reverse initiative or a false breakout.

Alternative scenario: if the price breaks down from the 1.1965 support level and fixes below it, the downtrend will likely resume.

There is no news feed for today.

The USD/JPY currency pair

Technical indicators of the currency pair:

Prev Open: 136.64
Prev Close: 136.67
% chg. over the last day: +0.02 %

According to the Japan Foreign Trade Council, Japan’s exports and imports hit a record high in fiscal 2022 in value terms after rising energy prices and a weaker yen. The country’s trade balance is expected to be negative for the third consecutive year. Imports and exports will rise only slightly, while in value terms, they will both be markedly higher due to higher prices. This suggests that the Bank of Japan will continue to stimulate the economy.

Trading recommendations

Support levels: 135.33, 133.53
Resistance levels: 137.42, 139.09, 140.75, 143.17, 145.16

From the technical point of view, the medium-term trend on the currency pair USD/JPY is bearish. The MACD indicator has become negative, and sellers’ pressure is increasing. Sell deals can be looked for from the resistance level of 137.24, provided that there is a reverse reaction and change in the structure on the intraday time frames. Buy trades are best considered on intraday time frames from the support level of 135.33, but only with confirmation.

Alternative scenario: If the price fixes above 138.00, the uptrend will likely resume.

There is no news feed for today.

The USD/CAD currency pair

Technical indicators of the currency pair:

Prev Open: 1.3654
Prev Close: 1.3591
% chg. over the last day: -0.46 %

The Bank of Canada made it clear this week that the price appreciation cycle is coming to an end as serious signs of slowing economic growth are emerging. The Canadian dollar is a commodity currency, so it faces further pressure as oil prices continue to decline, hitting new lows since the beginning of the year amid demand and recession fears. This has led investors to return to safe-haven assets such as the US dollar and gold.

Trading recommendations

Support levels: 1.3518, 1.3438, 1.3386, 1.3360, 1.3281, 1.3212
Resistance levels: 1.3658, 1.3682, 1.3682, 1.3776, 1.3855

From the point of view of technical analysis, the trend on the USD/CAD currency pair has changed to bullish. But the price is trading below the moving averages, and the MACD indicator has become negative. The price is correcting. Buy trades should be considered after a slight pullback from the support level of 1.3518 or 1.3438, but with additional confirmation. For sell deals, it is best to consider the resistance level of 1.3658 but with confirmation in the form of reverse.

Alternative scenario: if the price breaks down and consolidates below the support level of 1.3386, the downtrend will likely resume.

There is no news feed for today.

By JustMarkets

Financial News Forex and Currency News

08 Dec

Japanese Candlesticks Analysis 08.12.2022 (XAUUSD, NZDUSD, GBPUSD)

By RoboForex.com

XAUUSD, “Gold vs US Dollar”

On H4, at the support level, gold has formed a Harami reversal pattern. Currently, the pair is going by the signal in an ascending wave. The goal of the growth may be 1810.00. Upon testing the resistance level, the pair will get the chance for breaking through it and continuing the uptrend. However, the price may pull back to 1775.00 before further growth.

NZDUSD, “New Zealand Dollar vs US Dollar”

On H4, at the support level, the pair has formed a Hammer reversal pattern. The pair is now going by the signal in an ascending wave. The goal of the growth may be 0.6450. Upon breaking through the resistance level, the quotes will get the chance to continue the uptrend. However, the price may pull back to 0.6305 before further growth.

GBPUSD, “Great Britain Pound vs US Dollar”

On H4, at the support level, the pair has formed a Doji reversal pattern. The pair may now go by the signal in an ascending wave. The goal of the growth may be the resistance level of 1.2380. However, the price may pull back to 1.2105 before continuing the uptrend.

Article By RoboForex.com

Financial News Forex and Currency News

08 Dec

Ichimoku Cloud Analysis 08.12.2022 (GBPUSD, USDJPY, NZDUSD)

By RoboForex.com

GBPUSD, “Great Britain Pound vs US Dollar”

The currency pair is correcting by a Wedge reversal pattern. The instrument is going above the Ichimoku Cloud, which suggests an uptrend. A test of the upper border of the Cloud at 1.2155 is expected, followed by growth to 1.2545. An additional signal confirming the growth will be a bounce off the lower border of the bullish channel. The scenario can be cancelled by a breakaway of the lower border of the Cloud and securing under 1.9175, which will mean further falling to 1.1875. The growth will be confirmed by a breakaway of the upper border of the Wedge and securing above 1.2215.

USDJPY, “US Dollar vs Japanese Yen”

The currency pair is pushing off the resistance level. The instrument is going below the Ichimoku Cloud, which suggests a downtrend. A test of the upper border of the Cloud at 137.55 is expected, followed by falling to 131.25. An additional signal confirming the growth will be a bounce off the upper border of the descending channel. The scenario can be cancelled by a breakaway of the upper border of the Cloud and securing above 139.35, which will mean further growth to 140.25. The falling will be confirmed by a breakaway of the lower border of the bullish channel and securing under 135.85.

NZDUSD, “New Zealand Dollar vs US Dollar”

The currency pair is testing the signal lines of the indicator. The instrument is going above the Ichimoku Cloud, which suggests an uptrend. A test of the upper border of the Cloud at 0.6325 is expected, followed by growth to 0.6625. An additional signal confirming the growth will be a bounce off the lower border of the bullish channel. The scenario can be cancelled by a breakaway of the lower border of the Cloud and securing under 0.6205, which will mean further falling to 0.6110.

Article By RoboForex.com

Financial News Forex and Currency News

08 Dec

The Analytical Overview of the Main Currency Pairs on 2022.12.08

By JustMarkets

The EUR/USD currency pair

Technical indicators of the currency pair:

Prev Open: 1.0461
Prev Close: 1.0505
% chg. over the last day: +0.42 %

European Central Bank spokesman Kazimir pointed out yesterday that the inflation figure alone is not enough to slow rates down, so the ECB has plenty of “reasons” to keep tightening. Kazimir is considered among the most hawkish spokespeople and favors a 75 bps rate hike. Also, Kazimir is not convinced that Eurozone inflation has peaked but believes that the Eurozone recession will be short.

Trading recommendations

Support levels: 1.0483, 1.0361, 1.0332, 1.0284, 1.0193
Resistance levels: 1.0562, 1.0610

The trend on the EUR/USD currency pair on the hourly time frame is bullish. The price is trading at the level of the moving averages, the MACD indicator is positive again, and buying pressure is coming back. Buy trades are best considered from support levels of 1.0483, but with additional confirmation. Sell deals can be considered from the resistance level of 1.0562, but better with confirmation in the form of reverse initiative, as the price may react to the border of the inclined descending channel.

Alternative scenario: if the price breaks down through the support level of 1.0332 and fixes below it, the downtrend will likely resume.

News feed for 2022.12.08:

– Eurozone ECB President Lagarde Speaks at 14:00 (GMT+3);
– US Initial Jobless Claims (w/w) at 15:30 (GMT+3).

The GBP/USD currency pair

Technical indicators of the currency pair:

Prev Open: 1.2134
Prev Close: 1.2208
% chg. over the last day: +0.61 %

UK Chancellor of the Exchequer Jeremy Hunt is expected to unveil a series of reforms later this week that will help make London more competitive. The new chancellor wants to reduce cap rules for Britain’s biggest banks and adjust Solvency II rules to make the insurance sector more competitive. Next week, a host of major central banks will announce their latest monetary policy decisions ahead of the Christmas break. The Bank of England is expected to raise its interest rate by 0.5%.

Trading recommendations

Support levels: 1.2117, 1.2016, 1.1964, 1.1684, 1.1476, 1.1418
Resistance levels: 1.2254, 1.2381, 1.2431

From the technical point of view, the GBP/USD currency pair trend on the hourly time frame is bullish. The price is trading at the level of the moving averages. The MACD indicator has returned to the positive zone, and there is a slight buying pressure inside the day. Under such market conditions, it is better to look for buy deals from the support level of 1.2127 but with confirmation because the level has already been tested. Sell trades are best looked for on intraday time frames from resistance levels of 1.2254, but they are also better with confirmation in the form of a reverse initiative or a false breakout.

Alternative scenario: if the price breaks down of the 1.1965 support level and fixes below it, the downtrend will likely resume.

There is no news feed for today.

The USD/JPY currency pair

Technical indicators of the currency pair:

Prev Open: 136.95
Prev Close: 136.58
% chg. over the last day: -0.27 %

Japan’s economy shrank at an annualized rate of 0.8% in real terms over the last quarter, down from 1.2% last quarter. Inflation-adjusted real gross domestic product declined by 0.2% on a quarterly basis. There was a sharp increase in imports in the July-September quarter due to higher energy prices and a sharp weakening of the yen, which inflated the value of imported goods. The increase in imports has a negative impact on GDP, which measures the total value of goods and services produced in a country.

Trading recommendations

Support levels: 135.34, 133.53
Resistance levels: 137.15, 139.09, 140.75, 143.17, 145.16

From the technical point of view, the medium-term trend on the currency pair USD/JPY is bearish. The MACD indicator has become inactive, and the price forms a flat structure. Under such market conditions, buy trades can be sought on intraday time frames from the support level of 135.34 or from the uptrend line, but only with confirmation. Sell deals can be sought from the resistance level of 137.15, provided there is a reverse reaction and a change in the structure on the intraday time frames.

Alternative scenario: If the price fixes above 139.08, the uptrend will likely resume.

News feed for 2022.12.08:

– Japan GDP (q/q) at 01:50 (GMT+3).

The USD/CAD currency pair

Technical indicators of the currency pair:

Prev Open: 1.3648
Prev Close: 1.3652
% chg. over the last day: +0.03 %

The Bank of Canada went for a more aggressive rate hike of 50 bps, although analysts had expected a 25 bps increase. The Bank of Canada’s overnight rate is now 4.25%, the highest since 2008. The Bank of Canada and the Reserve Bank of New Zealand currently hold the highest rates of any major economy. The statement indicates that inflation growth has been more robust than expected, while Canada’s labor market remains “tight” and the economy continues to operate in excess demand. Nevertheless, there is growing evidence that monetary tightening is holding back domestic demand, citing slowing consumer spending growth and a weakening housing market.

Trading recommendations

Support levels: 1.3637, 1.3520, 1.3438, 1.3386, 1.3360, 1.3281, 1.3212
Resistance levels: 1.3682, 1.3682, 1.3776, 1.3855

From the point of view of technical analysis, the trend on the USD/CAD currency pair has changed to bullish. The price is trading above the moving averages. But the MACD indicator shows a strong divergence, and there is a change in the structure of the lower time frames. Buy trades should be considered after a slight pullback from the support level of 1.3637, but with additional confirmation. For sell deals, it is better to consider the resistance level of 1.3683 but with confirmation in the form of reverse initiative.

Alternative scenario: if the price breaks down and consolidates below the support level of 1.3386, the downtrend will likely resume.

There is no news feed for today.

By JustMarkets

Financial News Forex and Currency News

Risk Disclosure: Foreign Currency trading and trading on margin carries a high level of risk and can result in loss of part or all of your investment. Due to the level of risk and market volatility, Foreign Currency trading may not be suitable for all investors and you should not invest money you cannot afford to lose. Before deciding to invest in the foreign currency exchange market you should carefully consider your investment objectives, level of experience, and risk appetite. You should be aware of all the risks associated with foreign currency exchange trading, and seek advice from an independent financial advisor should you have any doubts.

All information and opinions on this website are for general informational purposes only and do not constitute investment advice.