Category Archives: Market Anakysis

Forex market analyized

GBP/USD: plan for the US session on February 21. The pound continues to break the stereotypes of fundamental analysis. The

To open long positions on GBPUSD, you need:
If the British pound has been falling all week on the back of good fundamental data on the labor market and retail sales, then weak report on the services sector, on the contrary, returned buyers to the market. The breakthrough of the resistance of 1.2922, which I drew attention to in the morning review, allowed the bulls to build growth in the area of the resistance of 1.2967, which is now their first goal. Fixing above this level will lead to an update of the maximum of 1.3010, where I recommend fixing the profit. In the scenario of a decline in GBP/USD, the formation of a false breakdown at the support level of 1.2922 will signal the opening of new long positions, however, it is best to wait for the release of fundamental data on the American economy. In the event of a breakdown of the above support, I recommend considering new purchases of the pound only for a rebound from the minimum of 1.2884.
To open short positions on GBPUSD, you need:
The bears failed to push the pound below the support of 1.2884, and also failed to protect the resistance of 1.2922. The breakdown…

EUR/USD: plan for the US session on February 21. The bulls have problems with the level of 1.0820. Good data on PMI indices

To open long positions on EURUSD, you need:
Buyers of the euro took advantage of the good data on the PMI indices, which rose for the services and manufacturing sectors. They maintained an important support level of 1.0785, however, they did not manage to get above the resistance of 1.0822. The task for the second half of the day remains the breakdown of the area of 1.0822, which will lead to an update of the highs of 1.0860 and 1.0886, where I recommend fixing the profits. However, everything will now depend on data on similar indices for the United States. Good indicators will again return the pressure on EUR/USD, which will lead to a repeat test of the minimum of 1.0785. If it breaks, I recommend that you postpone long positions on the euro until the test lows of 1.0765 and 1.0740.
To open short positions on EURUSD, you need:
The bears did not take long to wait and returned to the market after an unsuccessful attempt to break the resistance of 1.0822, which I paid attention to in my morning review. Apparently, the sellers are counting on good reports on the American economy, which are scheduled for the second half of the day….

Trading plan for EUR/USD for February 21st, 2020

Technical outlook:EUR/USD has been giving in to bears for the last 13 trading sessions from February 3rd, 2020. The entire drop from 1.1240 through 1.0780 can be the last leg within the ending diagonal structure on a larger time frame. Please note that prices found support at the Fibonacci 0.786 retracement of the previous rally between 1.0340 and 1.2555. A bullish reversal day can confirm that the drop is certainly completed and that the EUR/USD bulls are expected to remain in control. Please note that the drop from the 1.1095 level was very sharp. Hence, the recovery can also be the same since there is no resistance in the charts until the 1.1095 level. It is recommended to remain flat for now and wait for a bullish reversal signal in the daily chart before initiating long positions again. A potential engulfing bullish candlestick pattern is in progress. A day close above 1.0803 can confirm that.Trading plan:Remain flat for now. Wait for a bullish pattern to initiate long positions.Good luck!The material has been provided by InstaForex Company – www.instaforex.com…

The euro saw a ray of light

Optimistic statements by ECB Vice-President Luis de Guindos noted that a strong labor market and low interest rates can support economic growth in the eurozone. The acceleration of European business activity from 51.3 to 51.6 in February became a kind of ray of light in the dark realm for fans of the euro and allowed EUR/USD to the base of the 8th figure. However, there are few reasons for the development of a full-fledged correction for the single European currency.
The release of data on German and European PMI rightfully claimed to be the key event of the week. The minutes of the January meetings of the Fed and the ECB failed to shake the confidence of the “bears” in the main currency pair. The Fed exuded optimism about the bright future of the US economy. The European Central Bank expressed doubt that a cease-fire in the trade war between Washington and Beijing will be able to lift the eurozone economy from its knees. In the end, most tariffs remain in effect, which negatively affects both international trade and global GDP.
Data on the business activity should show how the eurozone economy has adapted to the pernicious influence of the coronavirus. And at…

Trading recommendations for EUR USD pair on February 21

From a comprehensive analysis, we see a flat with variable boundaries of 1.0782/1.0820. Now, about the details. The downward movement that was set at the beginning of the year managed to lower the rate of the single currency by more than 440 points. Moreover, since the beginning of February, the movement has been inertial at all. Such vivid stability leads to overheating of short positions and the lack of proper corrections can disrupt that stability. The market is emerging from this difficult situation with the help of accumulations and variable flat, where a horizontal movement of 60 hours is currently observed, which is not a small fluctuation in terms of time weight.
Regarding the theory of downward development, we see a kind of synchronicity, where a fellow GBP/USD market has a similar development in itself with one exception – that it is just beginning the recovery process. While on the EURUSD pair, we are already storming the psychological ranges. It turns out that we have a positive correlation and there is a chance of an additional incentive when trading moves interact. Regarding the development of the euro/dollar pair, we are faced with a 50% range level 1.0700//1.0775//1.0850 and the existing…

Analysis and forecast for EUR/GBP on February 21, 2020

Hello!
Perhaps the main driver that affects the price dynamics of the euro/pound pair’s rate is still Brexit. More specifically, this is a deal on a trade agreement between the UK and the EU.
Optimism after the victory of the Conservative is fading. We can assume that this event has already been played by the market.
As for the monetary policy of the Bank of England, many market participants expect that this year the British Central Bank will go to the easing of monetary policy and reduce the main interest rate. Some speculate that this will happen at the meeting of the Bank of England in May.
Such assumptions, along with sluggish economic growth in the UK, are not in favor of the pound and paired with the euro in particular.
Let’s look at the price charts of this interesting pair’s rate. As a rule, you can get a lot of information from them and understand the prospects for the further direction of a particular tool.
Weekly

The range in which the euro/pound has been trading for a long time can be designated as 0.8275-0.8595. In this regard, it is logical to assume that the exit from this range will indicate the direction of the price movement of…

EUR/USD: Euro still far from being completely defeated

What happens on Forex in February is nothing but the surrender of the greenback’s main competitors. The EUR / USD pair fell to a 3-year bottom, the yen against the US dollar sank to a 2.5-year low, and GBP / USD fell below the base of the 29th figure.The dollar bulls made a real feast, and technical analysts for USD are looking forward to the formation of a “golden cross” – the intersection of 50 and 200-day moving averages. This figure rose 13 times in the 21st century and signaled the strengthening of the American currency by an average of 2.5% over the next 40 days.However, the strength of the dollar is only the other side of the coin. The decline in EUR / USD would not have been so swift if not for the weakness of the single European currency. Judging by the protocol from the ECB Governing Council meeting in January, the regulator believes that even a ceasefire in the Washington and Beijing trade war will have a negative impact on the eurozone economy since most of the trade tariffs introduced by the parties remain valid. Although production activity in the region has improved, it is still at a…

Technical analysis of GBP/USD for February 21, 2020

7Overview:Pivot : 1.2959.The GBP/USD pair faces resistance at 1.2959, while strong resistance is seen at 1.3020. Support is found at 1.2848 and 1.2810 levels.The GBP/USD pair continues to move downwards from 1.2959 level. The pair could fall from 1.2959 level to the first support around 1.2848. In consequence, if the GBP/USD pair will break support at 1.2848, this level will turn into resistance (1.2959) today. In the H1 time frame, the 1.2959 level is expected to act as minor resistance. Hence, we expect the GBP/USD pair to continue moving in the bearish trend from 1.2959 level towards the target at 1.2848. In the long term, if the pair succeeds in passing through 1.2848 level , the market will indicate the bearish opportunity below 1.2848 level in order to reach the second target at 1.2810. However, the 1.2810 mark remains a significant support zone. Thus, the trend will probably rebound again from 1.2810 level as long as this level is not breached. in overall, we still prefer the bearish scenario below the area of 1.2959.The material has been provided by InstaForex Company – www.instaforex.com…

USD/CAD reversing below resistance

Trading RecommendationEntry: 1.32656Reason for Entry: 78.6% Fibonacci retracement, Horizontal swing highTake Profit : 1.32245Reason for Take Profit: 78.6% Fibonacci retracement, 61.8% Fibonacci extensionStop Loss: 1.32847Reason for Stop loss: -27.2% Fibonacci retracementThe material has been provided by InstaForex Company – www.instaforex.com…

USD/CAD – on its way upwards

Good day, dear traders! I present to your attention, a trading idea for the USD/CAD pair.
The US dollar is strengthening against all currency pairs, winning over majors such as EUR/USD, GBP/USD, and AUD/USD. The fall against the dollar is almost vertical, as not everyone can jump into such movements. However, there is a pair that remains relatively calm – the USD/CAD pair. On Wednesday, good data on inflation was released, so the loonie was positive, even against the background of the strong dollar.
As you can see, a buy signal was formed yesterday, as part of the Price Action strategy:
Once again, the pair is growing for the second month. And, against the background of a very strong annual stop level of sellers in the area of 1.3500, the pair looks very attractive for medium-term purchases. From the current prices, although the risk/profit ratio is 1 to 2, the breakdown itself can be volatile. On the other hand, if you focus on the closing of daily candles, the ratio can be 1 to 3, which is generally not bad, given the crisis that we are facing at the moment.
Good luck in trading and control your…