In the H4 chart, after reaching 23.6% fibo, Bitcoin has rebounded from it. In the future, the pair may continue falling towards 38.2% and 50.0% fibo at 7907.00 and 7150.00 respectively. However, the correction that has been taking place for more than a month creates an impression that bulls are saving strengths before pushing the price towards the high at 10368.40 and then the fractal high at 10505.60..
As we can see in the H1 chart, the divergence on MACD has finished the local rising movement; tight now, the pair is forming a new descending impulse towards the low at 8814.20. after breaking it, the instrument may continue falling to reach the post-correctional extension area between 138.2% and 161.8% fibo at 8628.10 and 8514.10 respectively. The resistance is the high at 9301.40.
ETHUSD, “Ethereum vs. US Dollar”
As we can see in the H4 chart, Ethereum is still correcting to the downside and has already tested 23.6% fibo at 214.90. A local rebound may be just a correction to the upside. Later, the pair may continue trading downwards to reach 38.2% and 50.0% fibo at 191.00 and 171.60 respectively. The resistance remains at the high at 253.47.
The H1 chart shows a more detailed structure of the current ascending correction, which has already reached 50l.0% fibo and may yet continue towards 61.8% fibo at 236.35. If the price breaks the low at 215.90, the instrument may complete the correction and resume the mid-term downtrend.
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.
An ambiguous technical pattern has been developed on the EUR/USD currency pair. The United States published a rather optimistic report on the US labor market for June. The number of jobs in the country increased by 4.8 million. The unemployment rate fell to 11.1% from 13.3%. At the same time, the dollar index has kept current highs. Investors are concerned about the start of a new wave of the coronavirus epidemic. The United States reported more than 55K new cases of COVID-19 yesterday, having set a world record. Currently, the EUR/USD quotes are consolidating in the range of 1.1215-1.1250, respectively. We recommend opening positions from these marks.
News feed for 2020.07.03:
Today, the publication of important economic releases is not planned. US financial markets will be closed due to the holiday.
Indicators do not send accurate signals: 50 MA has crossed 100 MA.
The MACD histogram is in the negative zone, indicating a bearish sentiment.
Stochastic Oscillator is in the neutral zone, the %K line is above the %D line, which gives a signal to buy EUR/USD.
Trading recommendations
Support levels: 1.1215, 1.1190, 1.1170
Resistance levels: 1.1250, 1.1285, 1.1310
If the price fixes below 1.1215, the EUR/USD quotes are expected to fall. The movement is tending to 1.1190-1.1170.
An alternative could be the growth of the EUR/USD currency pair to 1.1280-1.1300.
The GBP/USD currency pair
Technical indicators of the currency pair:
Prev Open: 1.24652
Open: 1.24640
% chg. over the last day: -0.01
Day’s range: 1.24379 – 1.24866
52 wk range: 1.1466 – 1.3516
The GBP/USD currency pair has stabilized after a prolonged rally. The pound sterling is currently consolidating. GBP/USD quotes are testing local support and resistance levels: 1.2450 and 1.2490, respectively. In the near future, a technical correction is possible. The growing risks of the second wave of the coronavirus pandemic put pressure on risky assets. Positions should be opened from key levels.
In June, the composite index of business activity in the UK significantly accelerated from 30.0 to 47.7.
Indicators do not send accurate signals: the price has crossed 50 MA.
The MACD histogram is near the 0 mark.
Stochastic Oscillator is in the neutral zone, the %K line has crossed the %D line. There are no signals at the moment.
Trading recommendations
Support levels: 1.2450, 1.2400, 1.2360
Resistance levels: 1.2490, 1.2530
If the price fixes below 1.2450, a correction of the GBP/USD quotes is expected. The movement is tending to the round level of 1.2400.
An alternative could be the growth of the GBP/USD currency pair to 1.2530-1.2560.
The USD/CAD currency pair
Technical indicators of the currency pair:
Prev Open: 1.35825
Open: 1.35671
% chg. over the last day: -0.17
Day’s range: 1.35533 – 1.35755
52 wk range: 1.2949 – 1.4668
The USD/CAD currency pair is in a sideways trend. The technical pattern is ambiguous. Participants in financial markets evaluate the US labor market report for June. The local support and resistance levels are 1.3550 and 1.3585, respectively. We recommend paying attention to the dynamics of “black gold” prices. Positions must be opened from key levels.
The news feed on the Canadian economy is calm.
Indicators do not send accurate signals: the price is consolidating near 50 MA.
The MACD histogram is in the negative zone, indicating a bearish sentiment.
Stochastic Oscillator is in the neutral zone, the %K line is above the %D line, which gives a signal to buy USD/CAD.
Trading recommendations
Support levels: 1.3550, 1.3525, 1.3490
Resistance levels: 1.3585, 1.3615
If the price fixes below 1.3550, USD/CAD is expected to fall. The movement is tending to 1.3525-1.3500.
An alternative could be the growth of the USD/CAD currency pair to 1.3615-1.3640.
The USD/JPY currency pair
Technical indicators of the currency pair:
Prev Open: 107.420
Open: 107.482
% chg. over the last day: +0.02
Day’s range: 107.435 – 107.567
52 wk range: 101.19 – 112.41
The USD/JPY currency pair is still consolidating. Unidirectional trends are not observed. Participants in financial markets expect additional drivers. The local support and resistance levels are 107.35 and 107.65, respectively. Demand for the “safe haven” currencies is high again. We recommend paying attention to the dynamics of yield on US government bonds. Positions must be opened from key levels.
The publication of important economic reports from Japan is not planned.
Indicators do not send accurate signals: the price has crossed 50 MA.
The MACD histogram is near the 0 mark.
Stochastic Oscillator is in the neutral zone, the %K line has crossed the %D line. There are no signals at the moment.
Trading recommendations
Support levels: 107.35, 107.05, 106.80
Resistance levels: 107.65, 107.85, 108.10
If the price fixes below 107.35, USD/JPY is expected to fall. The movement is tending to 107.00-106.70.
An alternative could be the growth of the USD/JPY currency pair to 107.90-108.10.
For the weekly close, global financial markets and Forex could see subdued volatility. This is mainly due to the shortened US trading hours coming from the US Independence Day on Saturday, July 4 (for a change in trading hours please check here).
Still, the fundamental and the technical picture in the EUR/USD is very interesting for the days ahead: the EUR/USD kept on stabilizing against the region around 1.1180/1200 for a potential long trigger, especially with the focus on 10-year US Treasury yields and the region around 0.60%.
A break below that level will likely result in the yield differential between European and US yields continuing to narrow, favouring gains in the EUR/USD, activating 1.1400/1450 as a target on the upside.
But, while we are very sceptical in regards to the US dollar and expect the USD to depreciate, not only driven by a drop in US yields but also in response to the Fed continuing with their US Treasury purchases. There are also some downside risks in the EUR/USD, at least in the short-term:
While we could see global central banks winding down outstanding USD liquidity swap lines over the last few weeks (resulting in a declining Fed balance sheet), we could imagine this situation to tense up again in the near-term, which could see the US dollar gain and push the EUR/USD lower.
Our technical line in the sand here can be found around 1.1150, a break lower activates 1.1000 on the downside:
Source: Admiral Markets MT5 with MT5-SE Add-on EUR/USD Daily chart (between May 3, 2019, to July 2, 2020). Accessed: July 2, 2020, at 10:00pm GMT – Please note: Past performance is not a reliable indicator of future results, or future performance.
In 2015, the value of the EUR/USD fell by 10.2%, in 2016, it fell by 3.2%, in 2017, it increased by 13.92%, 2018, it fell by 4.4%, 2019, it fell by 2.2%, meaning that after five years, it was down by 7.3%.
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– Most investors make the mistake of linearly extrapolating a financial trend into the future, especially at junctures when that trend is near a turn.
In everyday terms, it’s called “getting married to the trend.”
Here’s what Elliott Wave International President Robert Prechter said in his book, Prechter’s Perspective:
Most published forecasts are at best descriptions of what has already happened. I never give any forecast a second thought unless it addresses the question of the point at which a change in trend may occur. …
Read forecasts carefully. If they are unsophisticated, linear extrapolations of a recent trend, it’s probably the best policy to toss them aside and go search for something potentially useful.
Employing the Elliott wave model helps a market participant to avoid the error of assuming that today’s trend will carry into tomorrow. Why, even a 3rd-grader can learn a tell-tale sign of when a trend is about to change. More on that in a bit.
First, let’s look at a prime historical example of how trend extrapolation manifests.
A little background: the price of crude oil hit a low of $49.90 in January 2007 and then climbed dramatically in the following year and a half, reaching a high of $147.50 in July 2008.
Many energy market observers expected even higher prices.
Here are just a few of the headlines as crude oil was skyrocketing:
Oil price ‘may hit $200 a barrel’ (May 7, 2008, BBC)
An Oracle of Oil Predicts $200-a-Barrel Crude (May 21, 2008, The New York Times)
WHAT IF OIL HITS $200? (June 28, 2008, Los Angeles Times)
In the same time frame, one chief executive of an energy firm had predicted $250 a barrel.
Yet, around the time these headlines were published, the Elliott wave model was suggesting a different price path for oil.
The June 8, 2008 Elliott Wave Theorist, a monthly publication which has provided analysis and forecasts for financial markets and cultural trends since 1979, said:
The Top of Wave 5 in Crude Oil Is Fast Approaching
Now, what is the significance of the completion of a fifth wave?
That means that a trend, whether up or down, is on the cusp of a turn. In this case, the trend had been up. So, the “top of Wave 5” meant that the next significant price move would be down. Well, as mentioned a moment ago, just a month later, crude oil’s price hit that $147.50 top.
Here’s what followed:
As Robert Prechter noted in his 2017 book, The Socionomic Theory of Finance:
Only someone extrapolating an Elliott wave could see that “one of the greatest commodity tops of all time” lay dead ahead. Those using supply-demand arguments and linear extrapolation … were in the wrong place at the wrong time.
So, if you can count to five, you can anticipate trend turns, even when the majority are expecting the trend to continue.
Let’s go a bit further back in history and see how “counting to five” helped our analysts call a top in the price of General Electric’s stock.
In late October 2000, this chart was published in the Elliott Wave Financial Forecast, a monthly publication that covers major U.S. financial markets:
The completion of a quarter-century five-wave pattern portended a major reversal in GE’s stock.
At the time, the Elliott Wave Financial Forecast made a straightforward forecast:
GE is going to go way down … .
Here’s what happened thereafter:
But, getting back to that 3rd-grader who was mentioned earlier, you can see him discern a five-wave pattern in a market chart yourself and perhaps learn in the process.
Also, see how a college student picked right up on an even more detailed Elliott wave pattern — in no time! Then, hear from one of Elliott Wave International’s own wave experts who has more to say about the error of assuming a current trend will persist, well, merely because it’s already in place.
It’s all in a video titled “Anyone Can Learn the Wave Principle.” Watch it for free — compliments of Elliott Wave International.
This article was syndicated by Elliott Wave International and was originally published under the headline Stocks, Oil: See How Elliott Waves Help You Avoid “Getting Married to the Trend”. EWI is the world’s largest market forecasting firm. Its staff of full-time analysts led by Chartered Market Technician Robert Prechter provides 24-hour-a-day market analysis to institutional and private investors around the world.
For my next project, I plan to compile a database of companies and industries that are struggling to meet pledges for greening various corporate operations and supply chains. Using this database, I aim to identify cases in which stronger public environmental policies can help businesses meet a range of environmental commitments. I further aim to identify ways to mobilize business advocacy in favor of stronger environmental policies.
– Saudi Arabia’s Energy Minister Prince Abdulaziz claimed last week that the Kingdom will be the world’s biggest hydrocarbon producer “even” in 2050.
“I can assure that Saudi Arabia will not only be the last producer, but Saudi Arabia will produce every molecule of hydrocarbon and it will put it to good use … It will be done in the most environmentally sound and safe way and the most sustainable way,” Abdulaziz said when asked about the oil market outlook in 2050 during a virtual conference convened by Saudi Arabia’s Future Investment Initiative Institute (FII-I).
Abdulaziz added that Saudi Arabia “will be the last and biggest producer of hydrocarbon even then,” referring to 2050.
But is Saudi Arabia’s the world’s leading hydrocarbon producer now? And what is its legitimate prospect for being the largest hydrocarbon producer in 2050?
‘Hydrocarbon’ Explained
To unpack what the prince is claiming, we first must understand the hydrocarbon classification. A hydrocarbon is an organic compound that contains only carbon and hydrogen. This encompasses petroleum, natural gas, and condensates.
Is Saudi Arabia the world’s largest hydrocarbon producer?
Saudi Arabia’s oil production in 2019, which includes crude oil, all other petroleum liquids, and biofuels–this would include natural gas plant liquids and condensate–was an average of 11.81 million bpd, according to the Energy Information Administration (EIA). At 12% of the world’s total, it’s no wonder why Saudi Arabia holds so much market sway, especially when in cahoots with the rest of the OPEC members.
Russia, too, is right up there, producing an average of 11.49 million bpd, or 11% of the world’s total. This is also no wonder, then, that when you put Russia and Saudi Arabia together to “stabilize” the world’s oil supply to balance it with demand, it creates a crude oil production powerhouse that is unmatched.
But individually speaking, Saudi Arabia is not king of the oil production hill, for its nemesis–the country that sought to undo every production quota OPEC could come up with, is the United States. On its own, the United States produced 19.51 million barrels of oil (and other petroleum liquids) per day, besting both Saudi Arabia and Russia, and controlling 19% of the world’s oil supplies.
The rest of the countries on their own are significantly further down the list, with not one of them producing more than half of third-place Russia. Still, Canada and China–#4 and #5 respectively–are still worth mentioning.
But Saudi Arabia expects to be the largest hydrocarbon producer “still” in 2050. If they are not so now, what are the chances they will be so thirty years from now?
Perhaps out of step with Saudi Arabia’s grand Vision 2030 plan, The Kingdom is still hoping to be top dog for petroleum production decades from now.
The EIA, in its Annual Energy Outlook 2020, has forecast that global production of crude oil and lease condensate, natural gas plant liquids, dry natural gas, and coal in the United States will reach 90.29 quadrillion Btus in its reference case. For crude oil and lease condensate, the EIA expects that the United States will be on par with where it is today, in its reference case. For natural gas plant liquids production, the EIA anticipates an increase by 2050.
Source: EIA Annual Energy Outlook 2020
The reason for the EIA assuming oil production will level off in 2022 and holding fairly steady through 2045 is the anticipated decline in well productivity, forcing tight oil producers to hunt for oil is less prolific areas.
For Saudi Arabia, its 30-year hydrocarbon plan or abilities are more of an unknown. It has the world’s second-largest crude oil reserves, and it does have plans to add natural gas production in the coming years as it looks to step away from its near-total reliance on crude oil.
For natural gas, Saudi Arabia announced earlier this year that it may actually bring forward its plans to export natural gas by 2030. It did not, however, provide details about this plan, or how it would be implemented.
But its detail less plans may run into some trouble. For starters, while Saudi Arabia has an excess of low-cost associated gas reserves that it could tap, the production of said gas would be limited to the amount of crude it can produce. And crude oil production is periodically–and profoundly so right now–capped by OPEC agreements that keep the Kingdom’s fossil fuel ambitions in check.
But the EIA sees the OPEC countries besting non-OPEC countries on the production front by 2050
By 2050, the EIA sees the production of crude oil, lease condensate, natural gas plant liquids (NGPLs) and other liquid fuels from 2018 to 2050 reaching 121.5 million barrels per day (b/d) in 2050, or about 21% more than 2018 levels.
For crude oil and lease condensate, the EIA sees OPEC members increasing production by 9.5 million bpd, and non-OPEC countries increasing their crude oil and lease condensate production by 8 million bpd. This translates into a 27% increase for OPEC countries and a 17% increase for non-OPEC countries, according to the EIA’s International Annual Energy Outlook.
Overall, the EIA expects the OPEC countries to produce 56% of total global production in 2050.
Most of that production increase that OPEC nations (27%) will see will come from the Middle East, which is expected to increase by 35% to 2050.
Meanwhile, production in Russia (14%) and Canada (123%) are expected to increase at a quicker rate than the United States (8%) and Brazil (50%).
Using historical production figures courtesy of BP and forecasts published by peakoilbarrel, the top four oil producers remain in their positions through 2050.
Toeing the Saudi Line
Prince Abdulaziz’s chest-puffing seems to be in line with Saudi Arabia’s previous assertions that oil will be alive and well in 2050 despite attempts to spur the world along an energy transition. Even as far back as 2007, Aramco said it could boost reserves to as many as 1 trillion barrels by 2027, adding that it would be 2050 or later before production peaks.
But some of Saudi Arabia’s forecasts of fossil fuel’s future were more sober-minded, even seeing a phasing out of fossil fuels by the middle of this century, Ali al-Naimi, Saudi Arabia’s oil minister at the time said in 2015.
“In Saudi Arabia, we recognize that eventually, one of these days, we are not going to need fossil fuels. I don’t know when, in 2040, 2050 or thereafter,” al-Naimi said, adding that Saudi Arabia was therefore planning on becoming a “global power in solar and wind energy.”
– The China-rest of the world relations, the trajectory of the Covid-19 pandemic, the U.S. election and Brexit are the top concerns for investors for the last six months of 2020.
The observations from Nigel Green, CEO and founder of deVere Group, one of the world’s largest independent financial advisory and fintech organizations, come as the world readjusts after arguably the most turbulent six months in more than 70 years.
Mr Green says: “On the very first day of this new decade, the media reported for the first time on an outbreak of viral pneumonia in the Chinese city of Wuhan.
“Six months on and Covid-19 has changed the world forever.
“We’re in a new era and this will, of course, have potential repercussions on investment decision-making as we move into the second half of this most unusual of years.
“As investors, we should brace ourselves for more headwinds, which are likely to drag on growth and returns, than tailwinds, which enhance growth and help fuel positive returns.”
The deVere CEO says that he believes there are, currently, four key headwinds that investors need to monitor carefully in H2 2020.
“First, relationship developments between China – the world’s second largest economy and major driver of global economic growth – and the rest of the world.
The major areas of concern are the simmering trade tensions with the U.S. – the world’s largest economic power; the fallout from allegations from some Western leaders regarding China’s culpability in the coronavirus pandemic; the impact of international condemnation regarding Beijing’s crackdown on Hong Kong’s independence; and accusations of ‘state-sponsored’ cyber attacks.”
He continues: “Second, how easing coronavirus lockdowns and reopening of society and economies could cause new accelerations in infections which would dampen hopes of a quick and sustainable economic recovery.
“Third, the uncertainty that can be expected to be triggered by this year’s U.S. presidential election.
“The 2020 U.S. presidential election is seen by many as particularly important as not only will whoever wins be the CEO of the world’s largest economy, they will be in that role as the world economically readjusts following the global fallout of coronavirus.”
“And fourth, the risk of a no-deal Brexit for the UK, EU and global economies remains a key headwind. The UK government has so far not withdrawn from its threat to walk away without a trade agreement in place, despite the mass financial disruption caused by the pandemic.”
All in all, there’s more uncertainty to come that could affect global investors. However, there are three major tailwinds, says Nigel Green.
“First, governments across the globe are willing to provide considerable, often historic, levels of stimulus to support economic recovery.
“Second, central banks around the world have said that they do not believe that they are yet out of significant ammunition.
“And third, the rise of fintech has lead to more and more individuals across the world successfully saving and investing for their future at reduced costs.”
In this vein, after the U.S. Federal Reserve’s last expansion to its already record-beating stimulus programme on June 16, the deVere CEO said: “This extra stimulus acts as a ‘backstop’ or ‘floor’ for equities.
“The additional Fed support was widely expected by the markets and therefore, investors who have been paying attention have been topping-up their investment portfolios recently as entry points will inevitably continue to go higher as we move forward.”
Mr Green concludes: “There are challenges as well as major opportunities ahead for the second half of 2020.
“Investors should remain invested because history teaches us that markets go up over the long term.
“In addition, investment portfolios must be adequately diversified across asset classes, sectors, regions and currencies. This is the investor’s best weapon to capitalize on the opportunities and sidestep risks.”
About:
deVere Group is one of the world’s largest independent advisors of specialist global financial solutions to international, local mass affluent, and high-net-worth clients. It has a network of more than 70 offices across the world, over 80,000 clients and $12bn under advisement.
As we can see in the H4 chart, the ascending tendency continues. After finishing the pullback and testing the support level, XAUUSD has formed a Hammer pattern. At the moment, the price may start reversing to continue the uptrend. In this case, the upside target is at 1791.00. At the same time, one shouldn’t exclude an alternative scenario, according to which the market may fall and return to 1755.00.
NZDUSD, “New Zealand vs. US Dollar”
As we can see in the H4 chart, the sideways tendency continues. After forming several reversal patterns, such as Hammer, not far from the support level, NZDUSD is reversing. Possibly, the pair may reverse and start a new growth to reach the resistance area at 0.6520. After testing this area, the instrument may resume falling towards 0.6385.
GBPUSD, “Great Britain Pound vs US Dollar”
As we can see in the H4 chart, after forming a Doji pattern while testing the resistance level, GBPUSD has started reversing. At the moment, the pair is expected to continue the descending tendency. In this case, the downside target is at 1.2272. Still, there is another scenario, which suggests that the instrument may continue the trading upwards to reach 1.2530 without reversing and forming any significant corrections.
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.
GBPUSD is trading at 1.2488; 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 1.2455 and then resume moving upwards to reach 1.2575. 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 1.2305. In this case, the pair may continue falling towards 1.2215.
LTCUSD, “Litecoin vs US Dollar”
LTCUSD is trading at 41.29; 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 41.55 and then resume moving downwards to reach 38.65. 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 42.45. In this case, the pair may continue growing towards 44.05. To confirm further decline, the asset must break the neckline of a Head & Shoulders reversal pattern and fix below 40.35.
USDCAD, “US Dollar vs Canadian Dollar”
USDCAD is trading at 1.3608; the instrument is moving inside Ichimoku Cloud, thus indicating a sideways tendency. The markets could indicate that the price may test the cloud’s upside border at 1.3625 and then resume moving downwards to reach 1.3510. 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 1.3645. In this case, the pair may continue growing towards 1.3735. To confirm further decline, the asset must break the downside border of a Wedge pattern and fix below 1.3575.
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 greenback is losing ground against major competitors before the US labor market report for June. These statistics may have a significant impact on the dynamics of currency majors. We recommend paying attention to the difference between the actual and forecasted values of the indicators. Investors are still concerned about the rapid increase in the number of infected with COVID-19, which may cause even greater damage to the global economy. The total number of infected has reached a mark of 10.5 million. Currently, the local levels of support and resistance on the EUR/USD currency pair are 1.1265 and 1.1300, respectively. Positions should be opened from key levels.
The Economic News Feed for 2020.07.02:
At 15:30 (GMT+3:00), a report on the US labor market will be published.
Indicators signal the power of buyers: the price has fixed above 100 MA.
The MACD histogram is in the positive zone, indicating the bullish sentiment.
Stochastic Oscillator is in the overbought zone, the %K line has crossed the %D line. There are no signals at the moment.
Trading recommendations
Support levels: 1.1265, 1.1245, 1.1215
Resistance levels: 1.1300, 1.1325, 1.1345
If the price fixes above 1.1300, further growth of EUR/USD quotes is expected. The movement is tending to 1.1325-1.1350.
An alternative could be a decrease in the EUR/USD currency pair to 1.1245-1.1220.
The GBP/USD currency pair
Technical indicators of the currency pair:
Prev Open: 1.23965
Open: 1.24652
% chg. over the last day: +0.59
Day’s range: 1.24607 – 1.25237
52 wk range: 1.1466 – 1.3516
There are aggressive purchases on the GBP/USD currency pair. Since the beginning of this week, the British pound has added almost 200 points. The trading instrument has reached key extremes. The British pound is currently consolidating in the range of 1.2490-1.2540. Further growth of GBP/USD quotes is possible. Today, US labor statistics are in the spotlight. Positions should be opened from key levels.
Indicators signal the power of buyers: the price has fixed above 100 MA.
The MACD histogram is in the positive zone, which gives a signal to buy GBP/USD.
Stochastic Oscillator is near the overbought zone, the %K line has crossed the %D line. There are no signals at the moment.
Trading recommendations
Support levels: 1.2490, 1.2460, 1.2430
Resistance levels: 1.2540, 1.2600
If the price fixes above 1.2540, further growth of GBP/USD quotes is expected. The movement is tending to 1.2580-1.2620.
An alternative could be a decrease in the GBP/USD currency pair to 1.2460-1.2430.
The USD/CAD currency pair
Technical indicators of the currency pair:
Prev Open: 1.35753
Open: 1.35825
% chg. over the last day: +0.08
Day’s range: 1.35755 – 1.36112
52 wk range: 1.2949 – 1.4668
There is an ambiguous technical pattern on the USD/CAD currency pair. The loonie is consolidating. Financial market participants expect data on the US labor market. At the moment, the local support and resistance levels are 1.3575 and 1.3615, respectively. We also recommend paying attention to the dynamics of “black gold” prices. Positions should be opened from key levels.
The news feed on Canada’s economy is calm enough.
Indicators do not give accurate signals: 50 MA has crossed 100 MA.
The MACD histogram is near the 0 mark.
Stochastic Oscillator is in the neutral zone, the %K line is below the %D line, which indicates the bearish sentiment.
Trading recommendations
Support levels: 1.3575, 1.3550, 1.3525
Resistance levels: 1.3615, 1.3650, 1.3670
If the price fixes below 1.3575, USD/CAD quotes are expected to fall. The movement is tending to 1.3530-1.3500.
An alternative could be the growth of the USD/CAD currency pair to 1.3640-1.3670.
The USD/JPY currency pair
Technical indicators of the currency pair:
Prev Open: 107.920
Open: 107.420
% chg. over the last day: -0.43
Day’s range: 107.333 – 107.556
52 wk range: 101.19 – 112.41
The USD/JPY currency pair has become stable. The trading instrument is currently consolidating. USD/JPY quotes are testing local support and resistance levels: 107.30 and 107.60, respectively. The technical pattern signals a possible correction after a prolonged rally. We recommend paying attention to the news feed on the US economy. Positions should be opened from key levels.
The publication of important economic reports from Japan is not planned.
Indicators do not give accurate signals: the price has fixed between 50 MA and 100 MA.
The MACD histogram is in the negative zone, which indicates the development of bearish sentiment.
Stochastic Oscillator is in the neutral zone, the %K line is below the %D line, which gives a signal to sell USD/JPY.
Trading recommendations
Support levels: 107.30, 107.05, 106.80
Resistance levels: 107.60, 107.85, 108.10
If the price fixes below 107.30, a further drop in USD/JPY quotes is expected. The movement is tending to 107.00-106.70.
An alternative could be the growth of the USD/JPY currency pair to 107.85-108.10.
