InvestMacro

By Alpari.com

By Alpari.com

By Elliott Wave International

– Weeks before the February top in the DJIA, the January Elliott Wave Theorist (Elliott Wave International President Robert Prechter’s monthly publication about financial markets and social trends since 1979) said:

Most economists believe the Fed can prevent financial crises and depressions. [EWI’s analysts] disagree. Socionomic theory proposes that naturally fluctuating waves of social mood regulate financial optimism and the economy. They are unconscious and cannot be managed. [emphasis added]

In case you’re unfamiliar with socionomic theory, socionomics is the study of how society’s changes in mood motivate social actions in realms that include the economy, political preferences, financial markets, actions of peace and war, and the fads and fashions of popular culture. Robert Prechter began formulating socionomic theory in 1976.

Now, let’s get back to the point that the January Elliott Wave Theorist makes about “naturally fluctuating waves of social mood” being unmanageable. Realize that if people’s psychology shifts from expansive to cautious, there’s nothing financial authorities can do about it.

That doesn’t mean that central banks don’t try.

On March 23, after the start of the swift financial downturn, Marketwatch had this headline:

Fed, saying aggressive action is needed, starts unlimited QE

Ironically, on that very day, the stock market declined even further.

But, looking beyond the action of the market, you can also get a good idea about the “fluctuating waves of social mood” from this chart and commentary from our April Elliott Wave Financial Forecast:

Changes in producer prices, a key deflationary indicator that tends to lead consumer prices, are already negative. The chart shows the persistent long-term slowing of U.S. producer prices on what Conquer the Crash maintains has been a steadily waxing precursor to deflation and depression. Noting PPI’s movement back and forth across the zero line, CTC observed that “economists have had difficulty explaining why producer prices have been so sluggish. The short answer is that deflationary psychology is creeping toward gaining the upper hand, no matter what the Fed does.”

It’s evident that a deflationary psychology is taking hold globally.

Consider that PPI measures from January-to-February declined in Germany, China, Japan, the U.K, South Korea, Canada, France and Italy.

The closest that the world has come to deflation in modern times was the 2007-2009 financial crisis. However, the last full-blown deflationary episode was in the early 1930s. As you know, this period is known as the “Great Depression.”

Robert Prechter’s book, Conquer the Crash, explains why deflation, which is a decrease in the total amount of money and credit, goes together with a depression:

A deflationary crash is characterized in part by a persistent, sustained, deep, general decline in people’s desire and ability to lend and borrow. A depression is characterized in part by a persistent, sustained, deep, general decline in production. Since a decline in credit reduces new investment in economic activity, deflation supports depression. Since a decline in production reduces debtors’ means to repay and service debt, a depression supports deflation. Because both credit and production support prices for financial assets, their prices fall in a deflationary depression. As asset prices fall, people lose wealth, which reduces their ability to offer credit, service debt and support production.

Deflation and depressions are rare.

Yet, the swift downturn in global financial markets strongly suggests that this is a time to prepare for the next ones.

With that in mind, Elliott Wave International has prepared a free report titled “What You Need to Know Now About Protecting Yourself from Deflation”, which you can access free when you join Club EWI. Membership in Club EWI is also 100% free.

By TheTechnicalTraders

Chris is seeing uncertainty that could bring equities lower as money is flowing into safe havens. The charts are showing that markets are approaching a major inflection point, which could go either way. Both gold and silver should rise rapidly once they get past resistance.

Time Stamp References:
0:45 – Equities and safe havens.
2:00 – Market weakness – bear rally?
4:45 – Charts show a coming inflection point.
9:20 – Charts testing support on gold.
10:20 – Silvers chart is still ugly.
12:15 – What happened in oil?
20:00 – Equities may top and rollover.

Talking Points From This Episode

• Equity markets may have a limited upside.
• If you don’t understand it, don’t buy it.
• His bullish outlook for gold and silver.
• Large caps are looking very good.

Chris Vermeulen is CEO & Founder of Technical Traders Ltd. Chris has been involved in the markets since 1997 and is the founder of Technical Traders Ltd. He is an internationally recognized technical analyst, trader, and author.

Years of research, trading, and helping individual traders around the world has taught him that many traders have great trading ideas, but they lack one thing. They struggle to execute trades systematically for consistent results. Chris helps educate traders, and his mission is to help his clients boost their trading performance while reducing market exposure and portfolio volatility.

He has also been on the cover of AmalgaTrader Magazine and featured in Futures Magazine, Gold-Eagle, Safe Haven, The Street, Kitco, Financial Sense, Dick Davis Investment Digest, and dozens of other financial websites.

TheTechnicalTraders.com

By George Prior

Traditional banks will fall even further behind in market share and customer experience due to the global coronavirus pandemic, warns the CEO of one of the world’s largest independent financial advisory organizations.

The comments from Nigel Green, founder and chief executive of deVere Group, follow research that the use of financial apps is up by 72 per cent since mid-March.

Mr Green observes: “The pandemic has accelerated those trends that were already shaping business. These include greater inclusion of tech into our every day lives.

“Coronavirus has ushered in a new world, with digitalization and new technologies fuelling the changes. This can be seen by demand soaring for video-calling platforms such as Google Hangouts, Skype, FaceTime and Zoom amongst others, as more people than ever work remotely.

“It’s also underscored by the increasing use of fintech apps which allow users immediate, on-the-go, 24/7 access to, use, and management of their money.”

He continues: “There’s a historical precedent for what’s happening now.

“Banks and other traditional financial services providers were, in most cases, spectacularly caught off guard by the 2008-2009 financial crash.

“As they found their way into a new world with a new regulatory landscape and new customer expectations, business and tech developments were way down their to-do list. They were in survival mode.

“This is when agile, tech-driven challenger banks and fintech firms swooped in to fill the void left between what traditional financial services companies, especially the traditional banks, were offering and what customers were expecting, especially in terms of customer experience.”

Mr Green goes on to add: “The fintech firms, which offer mobile banking, savings and investment apps, and peer-to-peer lending, amongst other services, now have a decade of development, experience and expertise over many traditional banks.

“As even more people are now embracing fintech due to Covid-19-triggered social distancing, isolation and lockdowns, and as the apps are growing in popularity due to their convenience, increased security, and as people become ever-more tech-savvy, it’s likely that ‘bricks and mortar’ banks will fall even further behind in market share and customer experience.”

The deVere CEO concludes: “Coronavirus is going to further disrupt the wider banking sector. It will act as another catalyst for people to seek fintech alternatives to access, manage, use, save and invest their money across the world.”

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.

Article By RoboForex.com

USDCAD, “US Dollar vs Canadian Dollar”

As we can see in the H4 chart, the pair is forming an ascending tendency. At the moment, after completing an Engulfing pattern and then attempting to reverse, AUDUSD is correcting. The upside target may be at 1.4320. At the same time, there might be another scenario, which implies that the instrument may fall towards the support level at 1.4000.

AUDUSD, “Australian Dollar vs US Dollar”

As we can see in the H4 chart, the pair is still correcting within the ascending tendency. After completing a Doji pattern not far from the support level, the price is expected to reverse and then resume growing. the upside target remains at 0.6550. Still, the instrument may choose an opposite scenario and continue trading sideways to test the support level at 0.6262.

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 0.9790. However, one shouldn’t ignore another scenario, according to which the instrument may fall and return to 0.9600.

Article By RoboForex.com

Attention!
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex LP bears no responsibility for trading results based on trading recommendations described in these analytical reviews.

Article By RoboForex.com

XAUUSD, “Gold vs US Dollar”

XAUUSD is trading at 1716.00; the instrument is moving above Ichimoku Cloud, thus indicating a bullish tendency. The markets could indicate that the price may test Tenkan-Sen and Kijun-Sen 1705.00 and then resume moving upwards to reach 1785.00. Another signal to confirm further ascending movement is the price’s rebounding from the rising channel’s downside border. However, the scenario that implies further growth may be canceled if the price breaks the cloud’s downside border and fixes below 1665.00. In this case, the pair may continue falling towards 1615.00.

AUDUSD, “Australian Dollar vs US Dollar”

AUDUSD is trading at 0.6341; the instrument is moving inside Ichimoku Cloud, thus indicating a sideways tendency. The markets could indicate that the price may test the support level at 0.6295 and then resume moving upwards to reach 0.6535. Another signal to confirm further ascending movement is the price’s rebounding from the rising channel’s downside border. However, the scenario that implies further growth may be canceled if the price breaks the cloud’s downside border and fixes below 0.6210. In this case, the pair may continue falling towards 0.6135. After breaking the descending channel’s upside border and fixing above 0.6395, the price may resume moving upwards.

USDCAD, “US Dollar vs Canadian Dollar”

USDCAD is trading at 1.4128; the instrument is moving above Ichimoku Cloud, thus indicating a bullish tendency. The markets could indicate that the price may test the cloud’s upside border at 1.4050 and then resume moving upwards to reach 1.4385. Another signal to confirm further ascending movement is the price’s rebounding from the descending channel’s upside border. However, the scenario that implies further growth may be canceled if the price breaks the cloud’s downside border and fixes below 1.3975. In this case, the pair may continue falling towards 1.3905.

Article By RoboForex.com

Attention!
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex LP bears no responsibility for trading results based on trading recommendations described in these analytical reviews.

Here’s how a bearish price gap on Target’s chart foretold of the retail giant’s Q1 2020 nosedive

By Elliott Wave International

As many of us continue the process of working from home, isolated with young children and significant others day in and day out, the subject of price gaps feels paradoxically fitting.

Here’s why: After countless hours of sharing the same tight-knit space of finger-painting on the walls, dirty dishes, and zero social outlet, in comes your partner. You nervously ask, “Are you okay?” To which she replies with the most frightening of all four-letter “F” words,

I’m “F-I-N-E”

And that’s when you know it’s time to brace for impact.

“FINE,” in its vacant hollowness, is the equivalent of a gap on a price chart. They are generated in extremely tense, emotional market environments when a spike in volume and volatility makes prices jump so fast that they leave an empty space on the chart.

Indeed, in today’s emotional market environment, price gaps are everywhere, from bonds to bitcoin to big tech and beyond:

• “Price Gap Triggers Fear for Bond ETF’s” (March 29 Yahoo! Finance)
• “A CME Gap at $3500 Leaves Bitcoin Vulnerable” (April 14 Bitcoinist)
• “Apple Gaps Below Key Moving Average.” (April 2 The Street)

The question is, can you somehow use price gaps for your trading or investment decisions?

The short answer is, yes. A longer answer comes via Elliott Wave International’s Trader’s Classroom instructor Jeffrey Kennedy. Over the past few months, Jeffrey has built a strong, evidence-based case in favor of price gaps and their ability to clarify two main facets of a price trend:

1. The strength of the trend, and
2. Where prices are within their Elliott wave pattern

Case in point: Target, TGT. Early last December, well before the market mayhem, Jeffrey recognized a series of price gaps on TGT’s charts. At the time, TGT was orbiting lifetime highs and mainstream analysts saw no end to the stock’s upside, as this December 6, 2019 Yahoo! Finance confirms:

“Target (TGT) has been a star… The stock price keeps hitting new highs with its unending rally. Analysts continue to raise EPS estimates for TGT, propelling this stock into a Zacks Rank #1 (Strong Buy).”

In his December 3, 2019 Trader’s Classroom, however, Jeffrey identified a so-called acceleration gap in the stock’s August advance, a strong indication of third-of-third wave price action. That made the latest push higher a likely 5th wave and meant that the rally was closer to its end than its beginning, prompting this bearish forecast:

“The next sequence of events would be a pullback that could go into April,” labeling common Fibonacci target for the decline.

The next chart shows what followed: In late December, Target turned down from an all-time high plummeting 25% before stopping at a seven-month low on March 25:

That was just one example of (very) many. Price gaps enhance your understanding of the Elliott wave pattern underway. They can also join forces with other technical tools to facilitate high-confidence forecasts.

Here’s one more for you. In his February 18 Trader’s Classroom, Jeffrey identified a bearish key reversal pattern and price gap on the chart of Skyworks Solutions, Inc. (ticker symbol: SWKS). Jeffrey told subscribers that,

“the risk is to the downside and we’ll see further decline.”

What happened next?

Well, in Elliott Wave International’s brand-new, free educational video titled “See a Price Gap? Learn to Capitalize on Them,” Jeffrey revisits Skyworks Solutions and shows you the outcome of his original bearish forecast:

You can see it all for yourself in Jeffrey’s video lesson, where he covers these critical bases:

• What is a price gap?

• What are the 4 types of price gaps and when do they occur?

• Which price gaps coincide with specific substructures of an Elliott wave impulse pattern?

• What is the “closing the gap” trade set-up, and how is it used to identify high-confidence turns?

It’s time to take your trading technique from “FINE” to fortified.

The best part is, Elliott Wave International is offering “See a Price Gap? Learn to Capitalize on Them” for FREE to all our Club EWI members.

Take 30 seconds to get instant access.

By TheTechnicalTraders 

– As we continue to delve into the looming Real Estate crisis that will likely hit the US and globe over the next 12 to 24+ months, we want to focus on the human psychological process of dealing with a crisis event and how that relates to economic engagement.  In the first part of this research article, we discussed how the time-line and events that have unfolded over the past 120+ days have setup a continuing global crisis event.  The best of our knowledge, there has been nothing like this, other than massive wars like WWII, that have taken place on the planet over the past 75+ years.

This presents a very real possibility that human psychological processes have engaged throughout the planet that may disrupt how effective the recovery efforts are in the near future.  If humans engage in a traditional psychological crisis-cycle process, then there is little chance that the economic recovery will reach 2018-2019 levels very quickly.  Let’s review the psychological process of a crisis event.

The normal Psychological reactions to a crisis event are:

Vicarious Rehearsal: People that are distanced from the crisis event (location or expectations) tend to react in a way that reflects their belief that “it won’t result in any dramatic changes to their lives”.  Thus, they continue behaving and acting as they would without the crisis.

Denial: The process of denial takes on many forms.  Some people simply ignore the warnings or information related to the crisis.  Others become agitated or confused.  Some simply chose to believe the threat is not real and others may believe the threat does not relate to themselves.

Stigmatization: Sometimes, segments of society may become stigmatized by their community as anger or blame drives people to believe infected people or segments of society that may promote the crisis event are identified.  We’ve already seen some of this type of activity throughout the globe take place.

Fear and Avoidance: Fear becomes a central psychological element that may drive certain people to act in extreme, and sometimes irrational, ways to avoid the perceived or real threat.  Fear, much like Greed, is to primary element of all human activity and we must understand these components and how they transition throughout this virus event.

Withdrawal, Hopelessness, and Helplessness:  When people realize the threat is real and feel there is nothing they can do or change in their lives to avoid the consequences of the threat – a feeling of Hopelessness and Helplessness begins to set in.  When this happens, people tend to withdraw from normal activities and isolate themselves from the threat and society as a whole. (Source: https://www.orau.gov)

We believe these components of how society reacts to a crisis event are more like a “transitional process” than a series of separate events or actions.  We believe, initially, Vicarious Rehearsal and Denial are the initial reactions to a crisis event.  Then, these transition into Stigmatization and Fear when society realizes the threat of the crisis is very real and tangible.  Lastly, society moves into a balance between the last three elements where Stigmatization, Fear, and Hopelessness permeate as the crisis event continues to unfold.

Can we find any evidence that consumers were acting in a manner consistent with this psychological process within the data?  What would we look for in the data and how would we identify key characteristics of this psychological process?

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!

First, we would look for Vicarious Rehearsal and Denial in the form of “opportunity and greed” in the data.  The US Fed lowered interest rates to near ZERO on March 15, 2020.  This may have prompted a surge in refinancing and purchase commitments from qualified buyers.  We would look for a surge in mortgage applications in March 2020 as the expansion and severity of the virus crisis was surging.  Additionally, we would also look for a surge in home prices and sales levels as qualified buyers attempted to profit from lower rates.

When we look at the charts below, pay attention to the spikes on the charts in March 2020 and how they correlate to the US Fed decreasing interest rates just prior to the shut-down “National Emergency” order from President Trump.  The good news in early 2020 related to Q4:2019 earnings and economic data seemed to lull people into believing the risks were minimal.  Well, quite a bit has changed since then…

US MBA Mortgage Applications (WoW): Notice the spike on the week of March 11, 2020, above 50?  This level was nearly double the previous peak levels going back over 2 years.  A flood of buying and refinancing activity took place in early March 2020 near peak price levels.

US Existing Home Sales (MoM): This existing home sales data shows that both January and March 2020 exhibited strong sales numbers of existing homes.  Pay special attention to how quickly this data changed in April 2020.  Existing home sales levels have collapsed from the previous monthly levels as consumers have moved beyond the Denial stage and into the Fear stage.

US House Price Index (MoM):  This chart shows that house price levels are still appreciating while demand has already started to collapse.  Again, pay attention to what happened in March 2020 and what is happening in April 2020.  Mortgage applications have collapsed.  Existing home sales have collapsed.  Yet, prices remain rather high right now.  It would appear that home sellers are reluctant to decrease pricing as aggressively as potential buyers are exiting the market.  Eventually, the lack of real demand will prompt price levels to contract to attract interested buyers.  As we’ve seen before, though, when prices start to decline – a vicious cycle begins where potential buyers wait out the bottom or “low-ball” offers because they know the dynamics of the markets have changed in their favor.

US Jobless Claims 4-Week Average (WoW):  The real kicker, in our opinion, is how the shut-down has resulted in a massive segment of new job losses in the US.  It is hard to argue with the fact that the “average” 4-week jobless claims number shot up to levels above 1,000,000 recently.  This is the highest level we’ve seen in this economic indicator EVER.  These levels are nearly 10x the 2008-09 credit crisis levels – trying to put this into perspective.

When we have massive amounts of people suddenly losing their jobs (sources of income), this creates a massive disruption in the supply/demand side of the Real Estate market.  How massive is this number??  Take a look at the last chart…

Yes, this is a real chart of the jobless situation in the USA.  Please remember, if the situation in the USA is as it is being reported, then the situation throughout the rest of the world may be similarly related to job losses.  The point we are trying to make is that the job losses recently have been massively higher than anything we saw throughout the 2008-09 credit crisis – nearly 800% to 900% more massive.

I am hoping people can see what I am trying to warn about, which is the next major market crash, much worse than what we saw in March. See this article and video for a super easy to understand the scenario that is playing out as we speak, and real estate will follow.

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 going to be an incredible year for skilled traders.  Don’t miss all the incredible moves and trade setups.

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. Yesterday we closed out SPY ETF trade taking advantage of this bounce and our account is at another all-time high value. Exciting times for us technical traders!

I hope you found this informative, and if you would like to get a pre-market video every day before the opening bell, along with my trade alerts. These simple to follow ETF swing trades have our trading accounts sitting at new high water marks yet again this week, not many traders can say that this year. Visit my Active ETF Trading Newsletter.

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.

If you have any type of retirement account and are looking for signals when to own equities, bonds, or cash, be sure to become a member of my Long-Term Investing Signals which we issued a new signal for subscribers.

Ride my coattails as I navigate these financial markets and build wealth while others lose nearly everything they own during the next financial crisis.

Chris Vermeulen
Chief Market Strategies
TheTechnicalTraders.com

by JustForex

The US dollar has continued to grow against a basket of major currencies. The US dollar index (#DX) closed in the positive zone (+0.15). The greenback demand is still high. Oil quotes gradually win back the losses incurred since the beginning of the week. Also, investors have taken a wait-and-see attitude before the publication of the report on jobless claims in the US. It is expected that the figure will increase less than last week, but there will still be a huge flow of claims.

Today, a videoconference of EU leaders will take place, where they will try to identify EU steps in overcoming the consequences of the coronavirus pandemic. The establishment of the European Recovery Fund will be discussed. President of the European Council, Charles Michel, said the day before that the union should prepare for a phased lifting of restrictions.

The “black gold” prices are recovering. Currently, futures for the WTI crude oil are testing the $15.60 mark per barrel.

Market indicators

Yesterday, there was the bullish sentiment in the US stock market: #SPY (+2.22%), #DIA (+1.98%), #QQQ (+2.97%).

The 10-year US government bonds yield has not changed a lot. At the moment, the indicator is at the level of 0.61-0.62%.

• – Indicators of economic activity in Germany and the Eurozone at 10:30 (GMT+3:00) and 11:00 (GMT+3:00), respectively;
• – Indicators of economic activity in the UK at 11:30 (GMT+3:00);
• – Initial jobless claims in the US at 15:30 (GMT+3:00);
• – New home sales in the US at 17:00 (GMT+3:00).

by JustForex

by JustForex

The EUR/USD currency pair

Technical indicators of the currency pair:

• Prev Open: 1.08565
• Open: 1.08209
• % chg. over the last day: -0.32
• Day’s range: 1.07910 – 1.08342
• 52 wk range: 1.0777 – 1.1494

EUR/USD quotes have been declining. The trading instrument has updated key extremes. The greenback demand is still high. At the moment, the euro is testing local support of 1.0790. The 1.0830 level is already a “mirror” resistance. Today, EU leaders will discuss a plan to overcome the consequences of the COVID-19 epidemic via a video conference. Investors will also assess important economic releases. We recommend opening positions from key levels.

The Economic News Feed for 23.04.2020

• – Indicators of economic activity in Germany and the Eurozone at 10:30 (GMT+3:00) and 11:00 (GMT+3:00), respectively;
• – Initial jobless claims in the US at 15:30 (GMT+3:00);
• – New home sales in the US at 17:00 (GMT+3:00).

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 continues to decline, indicating the bearish sentiment.

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: 1.0790, 1.0750, 1.0720
• Resistance levels: 1.0830, 1.0845, 1.0875

If the price fixes below 1.0790, a further fall in the EUR/USD currency pair is expected. The movement is tending to 1.0760-1.0730.

An alternative could be the growth of EUR/USD quotes to 1.0860-1.0880.

The GBP/USD currency pair

Technical indicators of the currency pair:

• Prev Open: 1.22863
• Open: 1.23312
• % chg. over the last day: +0.32
• Day’s range: 1.23078 – 1.23756
• 52 wk range: 1.1466 – 1.3516

There is an ambiguous technical pattern on the GBP/USD currency pair. The British pound is being traded in a flat. GBP/USD quotes are testing the following key support and resistance levels: 1.2300 and 1.2375, respectively. The demand for risky assets is still low. A trading instrument has the potential for further decline. We expect important statistics on the UK economy. We recommend opening positions from key support and resistance levels.

The Economic News Feed for 23.04.2020

• – Indicators of economic activity in the UK.

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: 1.2300, 1.2250
• Resistance levels: 1.2375, 1.2410, 1.2445

If the price fixes below the round level of 1.2300, a further drop in GBP/USD quotes is expected. The movement is tending to 1.2260-1.2240.

An alternative could be the growth of the GBP/USD currency pair to 1.2410-1.2450.

The USD/CAD currency pair

Technical indicators of the currency pair:

• Prev Open: 1.42103
• Open: 1.41612
• % chg. over the last day: -0.34
• Day’s range: 1.41149 – 1.41980
• 52 wk range: 1.2949 – 1.4668

The USD/CAD currency pair is in a sideways trend. There is no defined trend. Financial markets participants expect additional drivers. USD/CAD quotes are testing the key support and resistance levels: 1.4120 and 1.4200, respectively. The loonie is supported by the recovery of the “black gold” prices after a significant collapse. Today we recommend paying attention to economic reports from the US. 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 fixed between 50 MA and 200 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: 1.4120, 1.4050, 1.4000
• Resistance levels: 1.4200, 1.4250

If the price fixes below the support level of 1.4120, USD/CAD quotes are expected to fall. The movement is tending to 1.4070-1.4050.

An alternative could be the growth of the USD/CAD currency pair to 1.4250-1.4280.

The USD/JPY currency pair

Technical indicators of the currency pair:

• Prev Open: 107.761
• Open: 107.778
• % chg. over the last day: +0.01
• Day’s range: 107.537 – 107.865
• 52 wk range: 101.19 – 112.41

USD/JPY quotes are still in a sideways trend. There is no defined trend. Investors expect additional drivers. The USD/JPY currency pair is still testing local support and resistance levels: 107.50 and 107.85, respectively. We expect important economic releases from the US. We also recommend paying attention to the dynamics of US government bonds yield. Positions should be opened from key levels.

The news feed on Japan’s economy is calm enough.

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 below the %D line, which indicates the bearish sentiment.

Trading recommendations

• Support levels: 107.50, 107.25, 106.95
• Resistance levels: 107.85, 108.10

If the price fixes below the support level of 107.50, USD/JPY quotes are expected to fall. The movement is tending to 107.20-107.00.

An alternative could be the growth of the USD/JPY currency pair to 108.10-108.30.

by JustForex