On H4, at a pullback near the support level the a Harami reversal pattern has formed. Currently, the pair can go by the signal in an ascending wave. The goal of growth is 1.0090. However, the quotes may pull back to 0.9915, bounce off the level, and continue the uptrend after the correction.
USDJPY, “US Dollar vs Japanese Yen”
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 growth is 147.80. However, the quotes may pull back to 145.00 and continue the uptrend after the correction to the support level.
EURGBP, “Euro vs Great Britain Pound”
On H4, the pair has formed an Engulfing reversal pattern. Currently, the pair is going by the signal in an ascending wave. The goal of the growth may be the resistance level of 0.8760. Upon testing and breaking through it, the pair has a chance for continuing the uptrend. However, it may still pull back to 0.8565 before growing to the resistance level.
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.
On H4, the quotes have broken through the 200-day Moving Average and are now resting above it, which indicates an uptrend. The RSI is testing the the support level. Currently, we should expect the quotes to rise over 7/8 (96.88) and then grow to the resistance level of 8/8 (100.00). The scenario can be cancelled by a breakaway of 6/8 (93.75) downwards. In this case, the quotes may drop to the support level of 5/8 (90.62).
On M15, the upper line of VoltyChannel is broken, which increases the probability of price growth.
S&P 500
On H4, the quotes are going under the 200-day Moving Average, indicating the prevalence of a downtrend. The RSI bounced off the resistance level. Currently, a breakaway of the support level downwards is expected at 0/8 (3750.0), followed by falling to -1/8 (3593.8). The scenario can be cancelled by a downward breakaway of the resistance level at 1/8 (3906.2). In this case, the quotes may reach 2/8 (4062.5).
On M15, the lower line of VoltyChannel is broken, confirming the downtrend and a high probability of further price falling.
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.
The European Central Bank has increased the interest rate by 0.75%. As a result of this step, the refinancing rate reached 2%. This is the most massive rate hike in the history of the ECB. In addition to the expected rate hike, the ECB also announced changes to the target long-term refinancing (TLTRO) operations in terms of the applied interest rate and earlier repayment dates. On the other hand, the balance sheet reduction was postponed until the December meeting.
Trading recommendations
Support levels: 0.9969, 0.9897, 0.9873, 0.9835, 0.9755, 0.9601
Resistance levels: 1.0054, 1.0111, 1.0162, 1.0230
From the technical point of view, the trend on the EUR/USD currency pair on the hourly time frame is bullish. The price began a corrective movement and fell below the moving lines. The MACD indicator is in the negative zone, but sellers’ pressure is weak. Under such market conditions, buy trades should be considered from the support level of 0.9969 or 0.0897, but with additional confirmation in the form of reverse initiative. Sell deals can be considered from the resistance level of 1.0054, but also with confirmation.
Alternative scenario: if the price breaks down through the support level of 0.9834 and fixes below it, the downtrend will likely resume.
News feed for 2022.10.28:
– Eurozone French GDP (m/m) at 08:30 (GMT+3);
– Eurozone French CPI (m/m) at 09:45 (GMT+3);
– Eurozone Spanish GDP (m/m) at 10:00 (GMT+3);
– Eurozone Spanish CPI (m/m) at 10:00 (GMT+3);
– Eurozone Italian CPI (m/m) at 12:00 (GMT+3);
– Eurozone German GDP (m/m) at 11:00 (GMT+3);
– Eurozone German CPI (m/m) at 15:00 (GMT+3);
– US PCE Price index (m/m) at 15:30 (GMT+3);
– US Michigan Consumer Sentiment (m/m) at 17:00 (GMT+3);
– US Pending Home Sales (m/m) at 17:00 (GMT+3).
The GBP/USD currency pair
Technical indicators of the currency pair:
Prev Open: 1.1611
Prev Close: 1.1557
% chg. over the last day: -0.47 %
The British pound is firmer than the euro right now. Investors’ confidence in the “pound” is returning amid serious preparations of the new government to form a new budget and a plan to get out of recession. Most likely, it will be achieved by cutting government spending, which will increase unemployment. However, this step is necessary because otherwise, the British economy will have a lot more problems in the form of further reduction of production, business activity, and the real estate market to recession levels.
Trading recommendations
Support levels: 1.1467, 1.1338, 1.1172, 1.1093, 1.0915, 1.0817
Resistance levels: 1.1698, 1.1816, 1.1901
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 at the level of the moving averages. The MACD indicator has become inactive, and the buyers’ pressure remains, but now the price is correcting. Under such market conditions, buy trades can be considered from the support level of 1.1467 or 1.1337, but better after confirmation. Sell trades are best to look for on intraday time frames. The nearest resistance level is 1.1698, but also better with confirmation in the form of a reverse initiative.
Alternative scenario: if the price breaks down of the 1.1172 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: 146.32
Prev Close: 146.26
% chg. over the last day: -0.04 %
The Japanese yen hit a 3-week high ahead of the Bank of Japan meeting. Currency intervention and weakness in the dollar helped the yen strengthen temporarily. Nevertheless, the Bank of Japan held another interest rate meeting today and maintained its super soft policy to support the fragile economy. That is the reason why analysts are skeptical about strengthening the yen, as the US Fed is still in a tightening cycle, while the BoJ has left policy unchanged.
From the technical point of view, the medium-term trend on the currency pair USD/JPY has changed to bearish. The price is trading at the level of the moving averages. The MACD indicator has become inactive, and there is a slight buying pressure. Under such market conditions, buy trades can be sought on intraday time frames from the support level of 145.88 or 144.90. Sell deals can be searched from the 147.75 resistance level, but only with additional confirmation. The level of 146.79 has already been tested twice and is likely to be broken by the price.
Alternative scenario: If the price fixes above 150.00, the uptrend will likely resume.
News feed for 2022.10.28:
– Japan Unemployment Rate (m/m) at 02:30 (GMT+3);
– Japan Tokyo Core CPI (m/m) at 02:30 (GMT+3);
– Japan BoJ Interest Rate Decision at 06:00 (GMT+3);
– Japan BoJ Monetary Policy Statement at 06:00 (GMT+3);
– Japan BoJ Outlook Report at 06:00 (GMT+3);
– Japan BoJ Press Conference (Tentative).
The USD/CAD currency pair
Technical indicators of the currency pair:
Prev Open: 1.3559
Prev Close: 1.3565
% chg. over the last day: +0.04 %
The Canadian dollar is a commodity currency and depends not only on the monetary policy of the Bank of Canada but also on the performance of the dollar index and oil prices. The dollar index strengthened yesterday while oil prices also continued to grow. As a result, the Canadian dollar is trading in a narrow range, as it was affected by two opposing factors. Overall, the outlook for oil remains on the upside, while the dollar index is fundamentally close to a reversal. In the medium term, USD/CAD quotes may decline significantly.
From the point of view of technical analysis, the trend on the USD/CAD currency pair is bearish. The price is trading at the level of the moving averages. The MACD indicator is in the negative zone, but there is a divergence, indicating the sellers’ weakness. The best way to sell is to consider the resistance level of 1.3678, but only after additional confirmation in the form of a reverse initiative. Buy trades should be considered on the lower time frames from the support level of 1.3541, but it is better after confirmation.
Alternative scenario: if the price breaks out and consolidates above the resistance level of 1.3855, the uptrend will likely resume.
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.
RoboForex, a leading global provider of services on financial markets, announces to become an official sponsor of the professional football club Cienciano. Cienciano is a professional football club based in Cusco, Peru that currently plays in the Peruvian Primera División. The contract is for the period 2022-2023.
RoboForex has among its priorities the realization of works with which it can demonstrate social responsibility. Without geographic limits, and without distinction of areas of concern (sports, health, environment, community, education…) this company tries to give back to society all the trust and solidarity that have been granted to it since the beginning of its operations. Recently, a part of this social responsibility has taken shape in Peru.
In this Latin American nation, RoboForex has built a productive and harmonious link with a football team that enjoys well-deserved and traditional popular support. Club Cienciano has to its credit two international trophies that place it on the world football stage. Born in Cusco on July 8, 1901, it is considered one of the oldest football clubs in the country and is called “America’s Dad”. Its stadium is named after a Spanish-Inca writer known as Inca Garcilaso de la Vega.
The outstanding trajectory of this club and its deep-rooted fans are the reasons why RoboForex participates in a sponsorship agreement that favours the training and performance of Cienciano football. Initially, this sponsorship agreement will be in force until 2023. It is expected that RoboForex’s contribution will help the club to increase its potential and win every match and every championship. In addition, it is projected that the city of Cusco and Peru as a whole will obtain important benefits that go beyond sports. RoboForex, in alliance with Club Cienciano, intends to carry out social works that have an impact on the welfare of several communities. Indeed, on September seventeenth of this year, two hundred football balls were donated. This donation benefited schools in Cusco that need support to develop their sports activities.
In the officialization activity the CBO of the RoboForex company in Latin America Sami Otman has expressed, “We have been captivated by Peru, by its people, its culture, its history and by the great club that is Cienciano. Which reaffirms the commitment RoboForex has made to the club and to all of Peru”
The cheers that Peruvians dedicate to their football club will encourage RoboForex’s performance as a financial company with social responsibility.
About RoboForex
RoboForex is a company which delivers brokerage services. The company provides traders who work in financial markets with access to its proprietary trading platforms. RoboForex Ltd has the brokerage licence FSC 000138/333. More detailed information about the Company’s products and activities can be found on the official website at roboforex.com.
The pair is testing the Tenkan-Sen line. The pair is going above the Ichimoku Cloud, which means an uptrend. A test of the Kijun-Sen line is expected at 1.1550, followed by growth to 1.1955. 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 1.1305, which will mean further falling to 1.1210.
AUDUSD, “Australian Dollar vs US Dollar”
The pair is growing inside a bullish channel, going above the Ichimoku Cloud, which means an uptrend. A test of the Tenkan-Sen line is expected at 0.6440, followed by growth to 0.6720. 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 0.6105.
USDCHF, “US Dollar vs Swiss Franc”
The pair is pushing off the signal lines of the indicator, going below the Ichimoku Cloud, which means a downtrend. A test of the Kijun-Sen line is expected at 0.9905, followed by falling to 0.9735. An additional signal confirming the decline 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 0.9975, which will mean further growth to 1.0065.
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.
On H4, at the support level, the pair has formed a Harami reversal pattern. Currently, the pair may go by the signal, forming an ascending wave. The goal of growth will be 1.3690; it may be later broken away so that the price will continue the uptrend. However, the quotes may still pull back to 1.3490 before growing.
AUDUSD, “Australian Dollar vs US Dollar”
On H4, at the support level, the pair has formed a Hammer reversal pattern. Currently, the pair is going by the signal in an ascending movement. The goal of growth may be 0.6600. After testing the resistance level, the quotes have a chance to bounce off it and develop a descending wave again. However, the price may just drop to 0.6450 without testing the resistance level.
USDCHF, “US Dollar vs Swiss Franc”
On H4, at a pullback near the support level, the pair has formed a Hammer reversal pattern. The pair may currently go by the signal in an ascending wave. The goal of growth is 0.9920. After testing the resistance level, the pair will have a chance for breaking through it and continuing the uptrend. However, the price may still pull back to 0.9825 before growing.
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.
The European Central Bank will hold its monetary policy and interest rate meeting today. The analyst expects the ECB to raise the interest rate by 0.75%, although some European leaders stressed the risk of recession and suggested not to sharply increase the cost of borrowing in the Eurozone. Also today, the US will release data for the third quarter, where analysts expect to see a growth of 2.3%. Falling GDP figures may cause a surge in volatility as it will be a sign of a slowing economy, forcing policymakers to be less aggressive in the interest rate hike cycle. Still, it will be positive for the euro.
Trading recommendations
Support levels: 1.0032, 0.9969, 0.9873, 0.9835, 0.9755, 0.9601
Resistance levels: 1.0111, 1.0162, 1.0230
From the technical point of view, the trend on the EUR/USD currency pair on the hourly time frame is bullish. The price is trading above the moving averages. The MACD indicator is in the positive zone, and the buyers’ pressure remains. Under such market conditions, buy trades should be considered from the support level of 1.0032 or 0.9969, but with additional confirmation in the form of reverse initiative. Sell deals may be considered from the resistance level of 1.0111, but also with confirmation.
Alternative scenario: if the price breaks down through the support level of 0.9834 and fixes below it, the downtrend will likely resume.
News feed for 2022.10.27:
– Eurozone Monetary Policy Statement at 15:15 (GMT+3);
– Eurozone Interest Rate Decision at 15:15 (GMT+3);
– US Initial Jobless Claims (w/w) at 15:30 (GMT+3);
– US GDP (q/q) at 15:30 (GMT+3);
– US Durable Goods Orders (m/m) at 15:30 (GMT+3);
– Eurozone ECB Press Conference at 15:45 (GMT+3);
– US Natural Gas Storage (w/w) at 17:30 (GMT+3).
The GBP/USD currency pair
Technical indicators of the currency pair:
Prev Open: 1.1463
Prev Close: 1.1615
% chg. over the last day: +1.33 %
The pound sterling continued its rally against the US dollar, rising more than 4% for the week as political uncertainty in the UK dissipated. The new British Prime Minister, Rishi Sunak, postponed the announcement of the financial plan from October 31 to 17. Details of the budget have not yet been released, but Rishi Sunak confirmed that fighting inflation will be the government’s focus. Economic stability and restoring confidence will also be a priority.
Trading recommendations
Support levels: 1.1382, 1.1338, 1.1172, 1.1093, 1.0915, 1.0817
Resistance levels: 1.1478, 1.1693, 1.1816, 1.1901
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 levels of the moving averages. The MACD indicator is in the positive zone, there is still buying pressure, but the first signs of divergence have appeared, which indicates that the growth is limited. Under such market conditions, buy trades can be considered from the support level of 1.1467 or 1.1337, but better after confirmation. Sell trades are best sought on intraday time frames. The nearest resistance level is 1.1698, but also better with confirmation in the form of a reverse initiative.
Alternative scenario: if the price breaks down of the 1.1172 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: 147.98
Prev Close: 146.38
% chg. over the last day: -1.09 %
The strengthening of the Japanese Yen in recent days is mainly due to a decrease in the dollar index amid rumors that the US Federal Reserve should be less aggressive in its interest rate hike cycle to prevent a steep decline in economic indicators and GDP. But investors should keep in mind that the Bank of Japan and the US Fed are still looking the other way. The Bank of Japan is pursuing a soft monetary policy, while the US Fed is in a tightening cycle. And the situation has stayed the same, even despite the currency interventions, so analysts do not recommend investors sell Japanese currency prematurely. Experts point out that in April 2023, the second five-year term of Governor Haruhiko Kuroda expires, which offers the prospect of a gradual withdrawal of his radical economic stimulus program.
From the technical point of view, the medium-term trend on the currency pair USD/JPY has changed to bearish. The price has consolidated below the priority change level and is trading below the moving averages. The MACD indicator has become negative, and there is slight seller pressure, but there are also signs of weakness in the form of divergence. Under such market conditions, buy trades can be looked for on intraday time frames from the 144.91 or 144.19 support level. Sell trades can be looked for from the 146.79 resistance level, but only with additional confirmation.
Alternative scenario: If the price fixes above 150.00, 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: 1.3610
Prev Close: 1.3554
% chg. over the last day: -0.41 %
The Bank of Canada raised its interest rate by 0.5% to 3.75%, which came as a surprise to analysts, as most had expected a move of 0.75%. At a press conference, Bank of Canada Governor Tiff Macklem said higher interest rates are starting to curb economic growth. This is increasingly evident in areas of the economy that are sensitive to interest rates, such as housing and household spending. Thus, the Bank of Canada is beginning to be more cautious in its rate hike cycle, and it is highly likely that the rest of the central banks will have to do the same, or a global recession is inevitable.
Trading recommendations
Support levels: 1.3535, 1.3454
Resistance levels: 1.3678, 1.3795, 1.3855, 1.3968
From the point of view of technical analysis, the trend on the USD/CAD currency pair is bearish. The price has consolidated below the priority change level and is trading below the moving averages. The MACD indicator is in the negative zone, but there is a divergence, which indicates the weakness of the sellers. The best way to sell is to consider the resistance level of 1.3678, but only after the additional confirmation in the form of reverse initiative. Buy trades should be considered on the lower time frames from the support level of 1.3534, but it is better after confirmation.
Alternative scenario: if the price breaks out and consolidates above the resistance level of 1.3855, the uptrend will likely resume.
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.
After dominating the FX space throughout 2022, the dollar’s reign could be coming to an end.
Since the start of Q4, dollar bulls have been missing in action as investors bet the Federal Reserve will slow the pace of rate hikes in the face of slowing economic growth.
This has pushed the Dollar Index (DXY) to its lowest level in five weeks, injecting bears with enough confidence to attack 110.00. Given how the dollar may weaken further on Fed pivot hopes, this could drag the DXY towards 109.00 in the near term.
We can see a similar theme in the equally-weighted USD index. Prices are under pressure on the weekly charts. Sustained weakness below 1.2500 could open the doors towards 1.2184.
EURUSD back above parity
As the dollar struggles across the board, this has offered an opportunity for currencies to fight back. Euro bulls wasted no time in pushing the EURUSD back above parity for the first time in five weeks. With dollar bulls missing in action amid Fed pivot hopes, and the ECB expected to raise rates by 75 basis points on Thursday, this has propelled the EURUSD towards 1.0030. A daily close above parity could encourage a move towards 1.0100 in the short term. If parity proves to be unreliable support, we could see a decline back toward 0.9900.
GBPUSD breaks above 1.1490
Pound bulls blasted above the 1.1490 resistance level this morning thanks to a weaker dollar. Prices have turned bullish on the daily timeframe and could hit the 100 SMA in the short term. A strong break above this level may see prices test the daily bullish channel around 1.1850. Should the upside lose momentum, a move back toward 1140 could be on the cards.
AUDUSD eyes 0.6550
It looks like AUDUSD bulls are back in town. The sharp rebound witnessed today could signal the return of bulls with 0.6550 acting as a key point of interest. A strong break above this level could see the currency pair target the 50-day SMA and higher. Should 0.6550 prove to be a tough resistance to crack, the AUDUSD could return towards 0.6340 and 0.6200, respectively.
USDJPY capped below 149.00?
After creating consistently higher highs and higher lows, USDJPY bulls could be taking a break. Prices are trading back below 149.00 thanks to fundamental forces and may sink lower due to a weaker dollar. Bears may target 145.00 and 143.50 which is where the 50-day SMA resides.
Watch out for the NZDUSD
It looks like the NZDUSD could be gearing for a major breakout above 0.5800. Such a move could open a path toward the 50 day SMA at 0.5880 and 0.5900. A scenario where 0.5800 holds the forte may send prices back towards 0.5720 and 0.5560.
At the support level, gold has formed a Hammer reversal pattern. Going by the signal, the pair is forming a correctional wave. The goal of growth will be 1675.50. After a test of the resistance level, the pair might bounce off it and continue the downtrend. However, the quotes may fall to 1640.50 without a pullback to the resistance level.
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 growth will be 0.5825. After a breakaway of the resistance level, the quotes will get a chance to continue the uptrend. However, the price may correct to 0.5735 before growing.
GBPUSD, “Great Britain Pound 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 growth is the resistance level of 1.1650. If it is broken away, the price will have a chance to continue the downtrend. However, it might drop to 1.1390 before growing.
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.
In Germany, the IFO Business Activity Index declined for the fifth month in a row to 84.3 points from a revised 84.4 points in September. But despite the decline, there are signs of stabilization. Although investor expectations have slightly improved for Germany and Europe as a whole, the current component of the assessment is still weak. Germany’s Q3 GDP data will be released later in the week. Analysts expect the economy to contract as companies and households are increasingly affected by higher energy bills and continued high inflation, adjusting consumption and investment.
Trading recommendations
Support levels: 0.9897, 0.9873, 0.9835, 0.9755, 0.9601
From the technical point of view, the trend on the EUR/USD currency pair on the hourly time frame is bullish. The price is trading above the moving averages. The MACD indicator is in the positive zone, and the buyers’ pressure remains. Under such market conditions, buy trades should be considered from the support level of 0.9897 or 0.9873, but with additional confirmation in the form of reverse initiative. Sells deals may be considered from the resistance level of 0.9961 or 1.0058, but also with confirmation.
Alternative scenario: if the price breaks down through the support level of 0.9755 and fixes below it, the downtrend will likely resume.
News feed for 2022.10.26:
– German Ifo Business Climate (m/m) at 11:00 (GMT+3);
– US CB Consumer Confidence (m/m) at 17:00 (GMT+3);
– FOMC Member Waller Speaks at 20:55 (GMT+3).
The GBP/USD currency pair
Technical indicators of the currency pair:
Prev Open: 1.1275
Prev Close: 1.1465
% chg. over the last day: +1.69 %
In his first speech as British Prime Minister, Rishi Sunak promised to right the wrongs of the outgoing administration but hinted that “difficult decisions” lie ahead. This is not surprising since Britain is facing serious fundamental problems: inflation is at a 40-year high, the economy is falling, and there are an energy crisis and rising heating and energy bills. Investors are now turning their attention to the budget proposal due later this month and the upcoming Bank of England meeting on November 3.
Trading recommendations
Support levels: 1.1382, 1.1338, 1.1172, 1.1093, 1.0915, 1.0817
Resistance levels: 1.1478, 1.1693, 1.1816, 1.1901
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 levels of the moving averages. The MACD indicator has become positive, and there is still buying pressure. Under such market conditions, buy trades can be considered from the support level of 1.1382 or 1.1337, but better after confirmation. Sell trades are best to look for on intraday time frames, the nearest resistance level is 1.1478, but it is also better with confirmation since the level has already been tested.
Alternative scenario: if the price breaks down of the 1.1172 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: 148.88
Prev Close: 147.94
% chg. over the last day: -0.63 %
According to estimates by broker Central Tanshi Co. the Japanese authorities have spent as much as 5.5 trillion yen (almost $37 billion) to support the yen. Analysts are sure that if the yield of inflation-adjusted government bonds does not improve, this step will only have a temporary effect, as the divergent policies of the Bank of Japan and the US Federal Reserve lead to an increase in the interest rate differential, which is very negative for the Japanese currency. However, BoJ governor Kuroda said last week that the central bank would keep monetary policy soft for at least the rest of the year.
Trading recommendations
Support levels: 146.63, 145.88, 144.91, 144.16, 143.00
Resistance levels: 148.64, 150.00, 151.05
From the technical point of view, the medium-term trend on the currency pair USD/JPY is bullish despite the currency intervention. The price is trading below the levels of the moving averages. The MACD indicator has become negative, and there is slight sellers’ pressure. Under such market conditions, buy trades can be sought on intraday time frames from the support level of 146.63, but with confirmation. Sell deals can be searched from a resistance level of 148.64, but only with additional confirmation in the form of a reverse initiative.
Alternative scenario: If the price fixes below 145.88, the downtrend will likely resume.
There is no news feed for today.
The USD/CAD currency pair
Technical indicators of the currency pair:
Prev Open: 1.3705
Prev Close: 1.3606
% chg. over the last day: -0.72 %
The central Bank of Canada will hold a monetary policy and interest rate meeting today. Analysts expect the Bank of Canada to raise the rate by 0.75%, although some experts think the Bank of Canada might raise the rate by 0.5% as the core inflation is growing, the overall consumer inflation has been falling for three months in a row. As a result, the Bank of Canada might need to take a smaller step to avoid “plunging” the economy into a recession.
Trading recommendations
Support levels: 1.3583, 1.3535, 1.3454
Resistance levels: 1.3678, 1.3795, 1.3855, 1.3968
From the point of view of technical analysis, the trend on the USD/CAD currency pair has changed to bearish. The price has consolidated below the priority level and traded below the moving averages. The MACD indicator has become negative, but there is a divergence, indicating the sellers’ weakness. The best way to sell is to consider the resistance level of 1.3678, but only after additional confirmation in the form of reverse initiative. Buy trades should be considered on the lower time frames from the support level of 1.3583, but it is also better after confirmation.
Alternative scenario: if the price breaks out and consolidates above the resistance level of 1.3855, the uptrend will likely resume.
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.
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