As we can see in the H4 chart, the ascending tendency continues. At the moment, after completing the pullback towards the channel’s downside border, USDCAD has formed a Hammer pattern. The upside target may be at 1.4240. At the same time, there might be another scenario, which implies that the instrument may fall towards the support level at 1.3940.
AUDUSD, “Australian Dollar vs US Dollar”
As we can see in the H4 chart, the ascending tendency continues. After completing a Doji pattern not far from the resistance level, the price is expected to reverse and start a new pullback towards the channel’s downside border. The downside target may be at 0.6356. Still, the instrument may choose an opposite scenario and continue trading upwards to test 0.6620 without reversing.
USDCHF, “US Dollar vs Swiss Franc”
As we can see in the H4 chart, the pair continues the ascending tendency. By now, USDCHF has formed several reversal patterns, such as Hammer, near the channel’s downside border. The current situation suggests that after reversing the pair may continue the ascending tendency. In this case, the upside target may be at 0.9792. However, one shouldn’t ignore another scenario, according to which the instrument may fall and return to 0.9690.
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.
Yesterday, the US dollar weakened against a basket of major currencies. The US dollar index (#DX) closed in the negative zone (-0.34). US President, Donald Trump, has accused China of the fact that the country could stop the coronavirus before it spreads around the world. It should be recalled that the US administration is conducting a “serious investigation” of the occurrence and spread of the virus. US Secretary of State, Mike Pompeo, says that the USA is sure that Beijing did not report the outbreak on time and hid the danger of the virus. Today, the number of victims of coronavirus has reached 3 million.
The Australian dollar has updated monthly highs, as signs of progress in restarting economies have helped the currency to recover some of its losses after sharp sales in March. Australia has managed to avoid a large number of deaths from COVID-19, and now the country is starting to ease restrictions on movement.
British Prime Minister, Boris Johnson, recovered from the coronavirus and returned to work yesterday. During his speech, the official stated his confidence that the country will be able to overcome the coronavirus, but he also emphasized that it is too early to weaken quarantine. This will happen only when the United Kingdom is convinced that there will be no second virus peak.
The “black gold” prices continue to decline. At the moment, the WTI crude oil futures are testing the mark of $11.60 per barrel. At 23:30 (GMT+3:00) weekly crude oil inventories according to the American Petroleum Institute will be published.
Market indicators
Bullish sentiments were observed yesterday in the US stock market: #SPY (+1.44%), #DIA (+1.47%), #QQQ (+0.80%).
The 10-year US government bonds yield is recovering. At the moment, the indicator is at the level of 0.66-0.67%.
The news feed on 2020.04.28:
– CB Consumer Confidence in the USA at 17:00 (GMT+3:00).
There is an ambiguous technical pattern on the EUR/USD currency pair. Quotes are currently consolidating. The local support and resistance levels are 1.0810-1.0835. Demand for risky assets has started resuming amid reduced restrictions in most countries of the world. Investors expect the Fed and the ECB meetings which will be held this week. The single currency is tending to grow. We recommend opening positions from key levels.
At 17:00 (GMT+3:00), CB consumer confidence index will be published.
Indicators do not give accurate signals: the price has crossed 50 MA and 100 MA.
The MACD histogram is near the 0 mark.
Stochastic Oscillator is in the neutral zone, the %K line is above the %D line, which indicates the bullish sentiment.
Trading recommendations
Support levels: 1.0810, 1.0785, 1.0755
Resistance levels: 1.0835, 1.0860, 1.0890
If the price fixes above 1.0835, the EUR/USD currency pair is expected to grow. The movement is tending to 1.0870-1.0900.
An alternative could be a decrease in the EUR/USD quotes to 1.0780-1.0750.
The GBP/USD currency pair
Technical indicators of the currency pair:
Prev Open: 1.23626
Open: 1.24281
% chg. over the last day: +0.51
Day’s range: 1.24041 – 1.24375
52 wk range: 1.1466 – 1.3516
The GBP/USD currency pair is consolidating. There is no defined trend. GBP/USD quotes are testing local support and resistance levels: 1.2400 and 1.2450, respectively. The technical pattern signals a possible growth of the trading instrument. We expect statistics from the US. We recommend opening positions from key support and resistance levels.
The news feed on the UK economy is calm.
Indicators do not give accurate signals: 50 MA has started crossing 200 MA.
The MACD histogram is rising again, which indicates the growth of the GBP/USD currency pair.
Stochastic Oscillator is in the neutral zone, the %K line is above the %D line, which also gives a signal to buy GBP/USD.
Trading recommendations
Support levels: 1.2400, 1.2370, 1.2300
Resistance levels: 1.2450, 1.2515
If the price fixes above the resistance level of 1.2450, further growth of GBP/USD quotes is expected. The movement is tending to 1.2500-1.2525.
An alternative could be a decrease in the GBP/USD currency pair to 1.2350-1.2330.
The USD/CAD currency pair
Technical indicators of the currency pair:
Prev Open: 1.40948
Open: 1.40330
% chg. over the last day: -0.56
Day’s range: 1.40138 – 1.40727
52 wk range: 1.2949 – 1.4668
The loonie is still being traded in a flat. There is no defined trend. At the moment, the local support and resistance levels are 1.4020 and 1.4070, respectively. USD/CAD quotes are tending to decline. Today, investors will assess economic reports from the US. 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.
Indicators do not give 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 is below the %D line, which indicates the bearish sentiment.
Trading recommendations
Support levels: 1.4020, 1.3975, 1.3925
Resistance levels: 1.4070, 1.4120, 1.4180
If the price fixes below the support level of 1.4020, USD/CAD quotes are expected to fall. The movement is tending to 1.3980-1.3960.
An alternative could be the growth of the USD/CAD currency pair to 1.4120-1.4150.
The USD/JPY currency pair
Technical indicators of the currency pair:
Prev Open: 107.543
Open: 107.243
% chg. over the last day: -0.26
Day’s range: 107.043 – 107.338
52 wk range: 101.19 – 112.41
The USD/JPY currency pair is in a sideways trend. There is no defined trend. At the moment, USD/JPY quotes are testing a round level of 107.00. The 107.35 mark is the key resistance. A trading instrument is tending to decline. Today we recommend paying attention to economic reports, as well as to the dynamics of US government bonds yield. Positions should be opened from key levels.
Indicators signal the power of sellers: the price has fixed below 50 MA and 100 MA.
The MACD histogram has started declining again, indicating the bearish sentiment.
Stochastic Oscillator is in the neutral zone, the %K line is below the %D line, which also gives a signal to sell USD/JPY.
Trading recommendations
Support levels: 107.00, 106.50
Resistance levels: 107.35, 107.60, 107.75
If the price fixes below the support level of 107.00, USD/JPY quotes are expected to fall. The movement is tending to 106.70-106.50.
An alternative could be the growth of the USD/JPY currency pair to 107.50-107.70.
– Crude Oil continues to be a big mover as the supply glut has really pushed global capacity to its limits. Dozens of full tanker ships are anchored off the California and Singapore coastlines waiting for demand to pick up. As long as the Virus shutdown persists globally, the supply gut will continue to wreak havoc on oil price levels into Summer. As of early Monday morning, Crude Oil is lower by -17% to $14.10 as I type.
What most readers of our articles here don’t fully grasp is just how accurate our long-term predictions truly are and its why we link to past research posts that clearly prove our analysis can be deadly accurate.
You may remember our incredible research post from July 2019 which suggested Crude Oil would collapse in early 2020 calling out a potential $14 price target.
You may also like to review our warning from January 2019 related to Oil and Energy. We also predicted the gold bullion breakout and bull market to happen last year in April, May, or June, which is it, and we called that six months prior. Eric Sprott talked about our gold prediction and how much he liked out analysis on his podcast back then.
Our Adaptive Fibonacci price modeling system is suggesting a support zone near $9 to $18 may become a new sideways trading zone for Crude Oil. We believe the downside risk to price levels is still excessive, but we also believe that true price valuation levels will keep Oil above $4 ppb as global demand will eventually recover. Thus, we believe Oil will likely settle into a sideways price range between $9 and $18 as this virus event continues. It may attempt brief moves outside these ranges but eventually, settle back into this range until true demand begins to accelerate higher.
Before we continue, be sure to opt-in to our free market trend signals before closing this page, so you don’t miss our next special report!
This Daily Crude Oil Chart highlights our Adaptive Fibonacci Price Modeling system’s results and clearly shows the Support Zone. We believe this Zone will become a new sideways price channel for Crude oil.
Weekly Crude Oil Price Chart – Support Zone
This Weekly Crude Oil Price chart also highlights the Support Zone. The potential for Crude prices to retest the $7 to $8 price range based on this massive supply glut is not out of the question. We believe Crude Oil will settle into the Support Zone while attempting to establish a price bottom near $7 or $8 over the next 90+ days. It may become an extended sideways bottom/flag formation as the bottom forms.
Our suggestion is to expect a more sideways bottom formation in Crude Oil over the next 60 to 90+ days. The supply-side glut is really pushing price levels down to extreme levels. Nothing will change that aspect of the market dynamic until we exit this Virus shut-down and demand starts to skyrocket higher. That may come in August or later in the year.
We do believe Oil will attempt to find support above $7 to $8 ppb as we believe the supply glut will push oil prices to a “core value level” where global buyers will attempt to say “we can’t sell oil at anything less than $x.xx”. We believe that level is $7 to $8 ppb overall.
As a technical analyst and trader since 1997, I have been through a few bull/bear market cycles in stocks and commodities. I believe I have a good pulse on the market and timing key turning points for investing and short-term swing traders. 2020 is an incredible year for traders and investors. Don’t miss all the incredible trends and trade setups.
We all have trading accounts, and while our trading accounts are important, what is even more important are our long-term investment and retirement accounts. Why? Because they are, in most cases, our largest store of wealth other than our homes, and if they are not protected during a time like this, you could lose 25-50% or more of your entire net worth. The good news is we can preserve and even grow our long term capital when things get ugly like they are now and ill show you how and one of the best trades is one your financial advisor will never let you do because they do not make money from the trade/position.
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Subscribers of my ETF trading newsletter had our trading accounts close at a new high watermark. We not only exited the equities market as it started to roll over in February, but we profited from the sell-off in a very controlled way with TLT bonds for a 20% gain. This week we closed out SPY ETF trade taking advantage of this bounce and entered a new trade with our account is at another all-time high value.
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Building up with the gradual closures of major sports leagues around the world, online betting platforms were always expected to take a hit on the London Stock Exchange. One of the biggest in the UK, Flutter Entertainment PLC, was certainly among those to be impacted by the lockdown on sports.
The company, which is comprised of the online gambling platforms Paddy Power, Betfair, and brands incorporated under The Stars Group, is one of many which sees much of its revenue come via sports betting. While share prices dropped somewhat, they have recovered rather well since the drop. A major reason behind this is the omnichannel nature of the company’s leading brand, Paddy Power.
Flutter Entertainment, as rebranded in 2019 from Paddy Power Betfair, saw its share price take a significant drop from 11 March to 12 March, falling from 7,924.00 GBX to 6,700.00 GBX. The drop coincided with the continued closures of elite-level football leagues across Europe and the impetus on the Premier League and English Football League to follow suit. On 13 March, the Premier League, FA, EFL, and WSL postponed professional football.
The value continued to tumble, hitting a year-low, by quite some margin, of 5,512.00 GBX on 18 March. This was the point at which the UK as a whole was going into lockdown. As Flutter totes several shops across the UK, further drops were inevitable, with the prime minister, Boris Johnson, further emphasising a stay-at-home order of seven days to two weeks.
As those orders were extended a great deal, one would assume that the company deriving much of its profits from betting would see its share price continue to decrease. However, in the weeks since the 18 March low, Flutter has risen a tremendous amount.
One of the key aspects which have allowed Paddy Power to become such an influential figure in British iGaming is that they provide a wide-ranging gambling platform. While sports betting is, of course, big business, the Paddy Power platform also prominently displays its expansive games section. Known for their advertising campaigns, the Flutter company now appears to be benefitting from bringing in the likes of Jose Mourinho and Rhodri Giggs as comedic advert stars over the past couple years.
Just by looking at the page’s betting games online, it’s clear to see that people are making the most of the offering. The progressive jackpots – Monster Jackpot, Daily Jackpot, Jackpot King, and Cash Boost Jackpot – were all increasing at a rapid pace, at the time of writing, meaning that many players must be playing the associated titles. Then, of course, there are the unseen levels of gaming across the other slots, instant wins, roulette, and blackjack games.
On 16 March, Flutter Entertainment announced that the closures of sports around the world could cost the company significantly; yet despite this, share prices have been getting stronger. On 24 April, the Flutter Entertainment PLC price climbed to 9,044.00 BX, ticking up slightly on its more normalised pricing of 9,018.00 GBX from 17 April.
Without any sport on the cards, it’s inevitable that most of the UK’s premier iGaming companies will feel the loss. However, at least in regards to share price, Paddy Power’s long-lasting embrace of its games offering appears to have allowed them to remain relevant with punters, which may have influenced their share price to recover quickly.
During difficult times, we hope that everyone will pull together, keep calm, and work as a unit to ensure that society continues to run smoothly. Unfortunately, this is not always the case – as is particularly evident right now.
Toilet paper has reached incredible prices on eBay. Videos of supermarket brawls populate the internet. One man in Tennessee bought 17,000 bottles of hand sanitiser, hoping to sell them for a fat profit. In the UK, where I’m currently under lockdown, we are increasingly seeing bare shelves in store and huge online queues to order groceries by delivery.
But we are also seeing acts of kindness and benevolence – hospital doctors working long shifts to help treat ill patients, and social media campaigns to allow elderly, vulnerable individuals to have a dedicated hour to shop in supermarkets before they open. How can we explain these two approaches to crisis situations?
The decision of whether to buy supplies in a socially responsible manner, or to hoard them, is related to game theory. This approach is based around the understanding that our pay-off in some situations is based not only on what we do, but what on others do too. For example, getting the food we want from a supermarket is dependent on us and all (or most) other shoppers acting sensibly. If we decide to be socially responsible, that is of little effect if others decide to panic buy.
Social psychology research suggests that there are two main motives for “selfish” behaviour – greed and fear. When greedy, individuals are simply unconcerned with others and take what they want to benefit themselves. Fear is more complicated. In this case, individuals may wish to act in a socially-responsible fashion, but are concerned that others will not. If they shop sparingly and others hoard, they will be left with the worst outcome – the so-called “sucker’s payoff”. The belief that others are acting selfishly can often exacerbate those tendencies in others.
How to stop hoarding
So how can self-interest be reduced? Research suggests several ways in which socially-responsible behaviour – and the reduction of hoarding – might be encouraged.
One method may be to emphasise the feelings of kinship between shoppers. Perceiving others as similar to ourselves usually increases cooperation. Another is to play down the idea that everyone is panic-buying. Fewer newspaper articles highlighting bare shelves should lower concerns about getting the “sucker’s payoff”. And although acts of hoarding can lead to more hoarding, the opposite is also true. Acts of generosity can increase others socially minded tendencies and promote cooperation.
The extended nature of the situation should also be emphasised. When people believe they are in for the long haul, and may encounter the same people in the same situation again, they tend to be more socially responsible.
People tend to be more cooperative in small groups, especially with strangers. So, allowing small numbers of people into a place at once may help to reduce selfishness. Luckily, this is happening already thanks to social distancing rules. Promoting discussion and conversation often improves relationships amongst people in game theory-type situations. Although this may not be a very practical solution, perhaps the Blitz spirit of singing songs together could help with this – supermarket karaoke anyone?
Finally – and perhaps more drastically – we could introduce punishment for acting selfishly. Social sanctions – such as naming and shaming or ostracising those who hoard – can often be effective, but relies on the person caring about being shamed. Direct punishment – such as fines – can work, but only if it is strong enough to be a deterrent to others. Too weak a punishment can actually increase selfishness if individuals realise the cost/benefit analysis will work in their favour. It remains to be seen whether the regulations recently put in place in the UK banning groups of more than two people gathering in a public place will be strict enough to work as intended.
Unfortunately, it is the case that some people just don’t trust others or actually prefer to make sure that others get less than them. Little can be one about these ingrained personality traits. But, they are in the minority and over the coming weeks (or months) we will hopefully see that the human spirit is far stronger than a dangerous virus, even in the face of toilet paper shortages.
As we can see in the H4 chart, after falling and reaching 23.6% fibo, XAUUSD is moving towards the high at 1747.77. If the price breaks it, the pair may continue its growth to reach the post-correctional extension area between 138.2% and 161.8% fibo at 1798.90 and 1858.60 respectively. At the same time, one should note that the rising impulse was slowed down as it was approaching the high. In this case, there is a high probability of a new descending wave with the targets at 38.2% and 50.0% fibo at 1634.40 and 1599.50 respectively.
In the H1 chart, the convergence made the pair start a new growth towards the high at 1747.77 but the tendency changed. “Black Cross” on MACD indicates a potential decline towards 38.2% fibo at 1634.40.
USDCHF, “US Dollar vs Swiss Franc”
As we can see in the H4 chart, the pair has broken the upside border of the Triangle pattern. If the price manages to continue this rising impulseю it may grow to reach the high at 0.9901 and then mid-term 76.0% fibo at 0.9982. At the same time, one shouldn’t exclude the possibility that the pair may return to the downside border and then fall towards 61.8% fibo at 0.9453.
In the H1 chart, the divergence made the pair start a new decline, which has already reached 38.2% fibo. The next downside targets may be 50.0% and 61.8% fibo at 0.9697 and 0.9673 respectively. The resistance is the high at 0.9803.
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.
After finishing the descending wave at 1.0730 and then forming the consolidation range around 1.0800, EURUSD has broken it to the upside; right now, it continues the ascending correction. Possibly, the pair may grow to reach 1.0860 to complete the correction and then resume trading inside the downtrend with the target at 1.0700.
GBPUSD, “Great Britain Pound vs US Dollar”
After forming the consolidation range around 1.2340 and breaking it to the upside at 1.2385, GBPUSD is expected to choose an alternative scenario and continue the correction towards 1.2437. After that, the instrument may start another decline with the short-term target at 1.2190.
USDRUB, “US Dollar vs Russian Ruble”
After finishing the descending wave at 74.00, USDRUB is expected to correct towards 75.80. After that, the instrument may form a new descending structure to break 74.00 and then continue trading inside the downtrend with the short-term target at 71.92.
USDJPY, “US Dollar vs Japanese Yen”
After breaking 107.60, USDJPY continue moving downwards to reach 107.15. Later, the market may grow to break 107.60 and then continue trading upwards with the target at 108.05.
USDCHF, “US Dollar vs Swiss Franc”
After completing the ascending wave at 0.9800, USDCHF is correcting downwards to reach 0.9715. after that, the instrument may form one more ascending structure with the target at 0.9850.
AUDUSD, “Australian Dollar vs US Dollar”
AUDUSD is still growing. Possibly, the pair may reach 0.6444 and then fall to break 0.6380. After that, the instrument may continue trading downwards with the target at 0.6250.
BRENT
Brent is consolidating around 25.00 without any particular direction. Possibly, the pair may break 23.06 to the downside and then start a new correction to reach 21.10. Later, the market may form one more ascending structure to break 27.00 and then continue trading upwards with the short-term target at 31.00.
XAUUSD, “Gold vs US Dollar”
Gold is still consolidating around 1720.00. Today, the pair may fall towards 1702.88 and then grow to return to 1720.00, thus forming a new consolidation range. If later the price breaks this range to the downside, the market may correct with the target at 1695.50; if to the upside – start another growth to reach 1752.35.
BTCUSD, “Bitcoin vs US Dollar”
BTCUSD is moving upwards; it has broken 7600.00 and may continue growing towards 8000.00. Later, the market may start a new correction to reach 7250.00 and then form one more ascending structure with the target at 9000.00.
S&P 500
S&P 500 is moving upwards; it has broken 2845.1 and may continue growing towards 2935.4. after that, the instrument may correct to reach 2680.5 and then start another growth with the target at 3160.2.
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 Friday, the US dollar fell slightly against a basket of major currencies. The US dollar index (#DX) closed in the negative zone (-0.10). Yesterday, US Secretary of the Treasury, Steven Mnuchin, said the country’s economy would recover closer to July, August, or September when the work of the still closed enterprises would resume. According to the forecast of the Congressional Budget Office, a sharp contraction of the economy is expected this quarter, and the growth by 17% is expected in the second half of the year.
Thierry Breton, the European Commissioner for Internal Market, said that due to the coronavirus pandemic, EU GDP could decline by 7.5%. However, if the situation does not improve and the second peak of the pandemic is observed, then the reduction may be even higher. Meanwhile, Italy is beginning to phase out strict quarantine. So, from May 4, it is planned to resume the work of factories, construction, and some wholesale companies, and residents will be allowed to visit relatives. According to the plan, restaurants and bars will open in early June.
According to the National Health Commission of the PRC, there are no new cases of COVID-19 infection and deaths in the Chinese province of Hubei and the city of Wuhan, which is considered the epicenter of the infection spread. Yesterday, the last 12 patients were discharged from hospitals. Today nobody has been identified with suspected infection.
The Japanese yen has been growing after the Bank of Japan lifted restrictions on the purchase of government bonds and increased the purchase of corporate debt to help companies that were hit by the economic crisis. The regulator also has expanded incentive measures to support the financing of companies and government spending to fight the economic consequences of the coronavirus pandemic. The key interest rate remained unchanged at -0.10% per annum.
The “black gold” prices continue to decline. Currently, futures for the WTI crude oil are testing the $14.45 mark per barrel.
Market indicators
On Friday, there was the bullish sentiment in the US stock market: #SPY (+1.93%), #DIA (+1.17%), #QQQ (+1.58%).
The 10-year US government bonds yield has not changed a lot. At the moment, the indicator is at the level of 0.62-0.63%.
The news feed on 2020.04.27:
Today, the publication of important economic news is not expected.
The EUR/USD currency pair has been growing. Investors have started fixing greenback positions partially. EUR/USD quotes have updated local highs. Currently, the euro is consolidating in the range of 1.0815-1.0855. The technical pattern signals further growth of the EUR/USD currency pair. Financial market participants continue to assess the risks and impact of the COVID-19 epidemic on the global economy. At the moment, the number of infected in the world is close to 3 million. We recommend opening positions from key levels.
Today, the publication of important economic releases is not planned.
Indicators do not give accurate signals: the price has crossed 100 MA.
The MACD histogram is in the positive zone and above the signal line, which indicates a further increase in EUR/USD quotes.
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: 1.0815, 1.0785, 1.0755
Resistance levels: 1.0855, 1.0890, 1.0930
If the price fixes above 1.0855, further growth of the EUR/USD currency pair is expected. The movement is tending to 1.0880-1.0910.
An alternative could be a decline in EUR/USD quotes to 1.0790-1.0760.
The GBP/USD currency pair
Technical indicators of the currency pair:
Prev Open: 1.23403
Open: 1.23626
% chg. over the last day: +0.21
Day’s range: 1.23606 – 1.24546
52 wk range: 1.1466 – 1.3516
The bullish sentiment prevails on the GBP/USD currency pair. Quotes have updated local highs. The British pound is currently consolidating. The local support and resistance levels are 1.2400 and 1.2450, respectively. The greenback demand has started declining. We do not exclude further growth of the trading instrument. We recommend opening positions from key support and resistance levels.
The news feed on the UK economy is calm.
Indicators do not give accurate signals: the price has crossed 100 MA.
The MACD histogram is in the positive zone and continues to rise, which indicates the growth of the GBP/USD currency pair.
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: 1.2400, 1.2370, 1.2300
Resistance levels: 1.2450, 1.2515
If the price fixes above the resistance level of 1.2450, further growth of GBP/USD quotes is expected. The movement is tending to 1.2500-1.2525.
An alternative could be a decrease in the GBP/USD currency pair to 1.2350-1.2330.
The USD/CAD currency pair
Technical indicators of the currency pair:
Prev Open: 1.40741
Open: 1.40948
% chg. over the last day: +0.12
Day’s range: 1.40394 – 1.41172
52 wk range: 1.2949 – 1.4668
The USD/CAD currency pair is still being traded in a flat. There is no defined trend. USD/CAD quotes are testing the key support and resistance levels: 1.4040 and 1.4120, respectively. The technical pattern signals a possible decrease in the trading instrument. We 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.
Indicators do not give accurate signals: 50 MA has crossed 200 MA.
The MACD histogram has started declining, indicating the development of the 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: 1.4040, 1.4000, 1.3925
Resistance levels: 1.4120, 1.4200, 1.4250
If the price fixes below the support level of 1.4040, a further drop in the USD/CAD quotes is expected. The movement is tending to 1.4000-1.3970.
An alternative could be the growth of the USD/CAD currency pair to 1.4100-1.4150.
The USD/JPY currency pair
Technical indicators of the currency pair:
Prev Open: 107.559
Open: 107.543
% chg. over the last day: -0.07
Day’s range: 107.047 – 107.622
52 wk range: 101.19 – 112.41
The USD/JPY currency pair has been declining. The trading instrument has set new local lows. USD/JPY quotes found support at the level of 107.10. The 107.35 mark is already a “mirror” resistance. The USD/JPY currency pair has the potential for further decline. The Bank of Japan, as expected, kept key interest rates unchanged. The regulator lifted restrictions on the purchase of government bonds and increased the purchase of corporate debt. Positions should be opened from key levels.
Indicators signal the power of sellers: the price has fixed below 50 MA and 100 MA.
The MACD histogram is in the negative zone and below the signal line, which indicates the bearish sentiment.
Stochastic Oscillator is in the neutral zone, the %K line is above the %D line, which gives a signal to buy USD/JPY.
Trading recommendations
Support levels: 107.10, 106.95, 106.70
Resistance levels: 107.35, 107.60, 107.75
If the price fixes below the support level of 107.10, a further drop in the USD/JPY quotes is expected. The movement is tending to 106.90-106.70.
An alternative could be the growth of the USD/JPY currency pair to 107.50-107.70.
