Tag Archives: how to trade forex

U.S. Employment Plunges Much More Than Expected In March

Employment in the U.S. fell much more than expected in the month of March, according to a report released by the Labor Department on Friday. The report said employment plunged by 701,000 jobs in March after jumping by an upwardly revised 275,000 jobs in February. Economists had expected employment to slump by 100,000 jobs compared to the addition of 273,000 jobs originally reported for the previous month. With the much bigger than expected drop in employment, the unemployment rate surged up to 4.4 percent in March from 3.5 percent in February. The unemployment rate had been expected to climb to 3.8 percent. The material has been provided by InstaForex Company – www.instaforex.com…

Comprehensive analysis of movement options of AUD/USD, USD/CAD, and NZD/USD (daily) in April 2020. The analysis of the APLs

Minor operational scale (daily time frame)
In the second month of spring – what will happen with the “raw” currencies AUD/USD, USD/CAD, and NZD/USD? Overview of the development of the traffic movement from April 4, 2020.____________________
Australian Dollar vs US Dollar
Testing and direction of the range breakdown:
resistance level of 0.6100 – median line minute;support level of 0.6000 – the upper border of the channel 1/2 median line fork operational scale minuteIt will determine the development of the movement of the Australian dollar AUD/USD from April 4, 2020.
Sequential breakdown of support levels:
0.6000 – upper limit of the channel 1/2ML minute;0.5965 – lower bound of ISL61.8 equilibrium zone of the forks of the operational scale minor;0.5930 – lower bound of ISL61. 8 equilibrium zone of the forks of the operational scale minute;Confirm the development of the movement of the Australian dollar in the channel 1/2 median line minute (0.6000 – 0.5860 – 0.5730) with the prospect of reaching the minimum price of 0.5510.
When sharing the breakdown of the median lines (resistance of 0.6100) and median line minor (0.6130) – option of the movement AUD/USD to the upper limit of ISL61.8 (0.6240) zone equilibrium fork operational scale minute and channel borders 1/2 median line (0.6275 -…

Sweden Services Sector Activity Weakest Since 2012

Sweden’s services sector contracted at the fastest rate in 15 years to hit its lowest level since 2012, survey data from Swedbank and the logistics association SILF showed on Wednesday. The Purchasing Managers’ Index for the services sector decreased to 46.9 in March from 56.4 in February.Any reading below 50 suggests contraction in the sector. The latest monthly decline was the largest in the survey’s fifteen-year history and the reading was the lowest since 2012. The order index and production sub-indices recorded the biggest declines in March followed by employment. The sub-index for the suppliers’ delivery times increased for the second straight month, reaching a record high. “Normally, rising delivery times mean increased demand pressure, but this time it is rather a lack of supply that contributes to longer delivery times partly because of the corona virus and closed borders,” Swedbank analyst Jorgen Kennemar said. Service sector companies plans contracted in March, which indicates a darker economic outlook in the future. The Composite PMI, which combines manufacturing and services, fell to 45.9 in March from 55.4 in the previous month. The material has been provided by InstaForex Company – www.instaforex.com…

GBP/USD: plan for the US session on April 3. Bears are counting on a major flight of the pound down. The support of 1.2315

To open long positions on GBPUSD, you need:Bears managed to gain a foothold below the support of 1.2315 in the first half of the day after very poor data on activity in the UK services sector. This is clearly visible on the 5-minute chart. However, the continuation of the downward trend in the pound will depend on data on the state of the US labor market. In the second half of the day, the bulls urgently need to return a pair back to the level of 1.2315, since only in this scenario will it be possible to maintain the advantage. If the decline continues in GBP / USD, it is best to return to long positions only after the support test of 1.2150 or to rebound from the larger minimum of 1.1985, in the expectation of correction of 60-70 within the day. A breakout and consolidation above 1.2315 will push purchases to the maximum area of 1.2473, where I recommend fixing the profits.To open short positions on GBPUSD, you need:The bears coped with the weekly task and broke below the support of 1.2315 from the 5th time. Sellers of the pound in the second half of the day need to achieve…

Will the dollar stop plan B?

All attempts by the Fed to rein in the US dollar were futile. Neither a sharp reduction in the federal funds rate, nor the launch of unlimited purchases of Treasury and mortgage bonds under QE, nor the transfer of liquidity to foreign central banks using swaps and repos has dampened investors’ interest in buying the USD index. If this continues, I am afraid that currency interventions will be necessary. According to BofA Merrill Lynch, this will happen when the EUR/USD pair falls to 1.05.
In theory, this scale of dollar liquidity and the rapid expansion of the Fed’s balance sheet should have knocked the “American” down. Nevertheless, the number of supporters of the “dollar smile” theory is growing rapidly. It assumes that at the first stage, the USD index is strengthened due to the strength of the US economy and the associated inflow of capital to the US securities market. When a recession begins, the dollar peaks as investors flee to safe-haven assets. Then, thanks to those who want to save stock indices from falling into the abyss with the help of aggressive monetary expansion, the Fed forms the bottom of the smile. After that, the dollar begins to grow again, as…

BTC analysis for 04.03.2020 – Major pivot resistance at the price of $7.000 is on the test, potential for downside rotation

BTC news:With growing mobile money across the globe, Revolut has joined the list of growing bank challengers in the UK. The platform is offering an alternative to the central government-controlled fiat currency. With a fixed supply, Bitcoin is seen as the alternative to the fiat especially at a time when governments are printing more money through the quantitative easing program.Technical analysis: BTC has been trading upwards.The price tested and rejected of the very important pivot level at $7.000, which is sign that there is potential for downside rotation. The action around the critical level at $7.000 will be important fore the further direction.Yesterday’s daily close was well off the high, which is another sign that there is potential for the downside.MACD oscillator is still showing reading below the zero but the slow line is going upwards.Major resistance is set at $7.000 and the next one is at $7.630.My recommendation is to watch for selling opportunities around the critical pivot at $7.000.Potential targets can be set at $6.131, $5.180 and even $3.877The material has been provided by InstaForex Company – www.instaforex.com…

Australia Construction Index Slides In March – AiG

The construction sector in Australia continued to contract in March, and at a faster rate, the latest survey from the Australian Industry Group showed on Friday with a seasonally adjusted Performance of Construction Index score of 37.9. That’s down from 42.7 and it moves further beneath the boom-or-bust line of 50 that separates expansion from contraction. It also marks the lowest index reading since May 2013. Across the four construction, the house building sector indicated modest growth for a fourth consecutive month. Contractions in the apartment and commercial construction sectors were steeper, while the contraction in engineering construction activity eased slightly in March. The material has been provided by InstaForex Company – www.instaforex.com…

China Services PMI Data Due On Friday

China will on Friday see March results for the services and composite indexes from Caixin, highlighting a modest day for Asia-Pacific economic activity. In February, the services index saw a score of 26.5, while the composite came in at 27.5. Japan will see March results for the services and composite indexes from Jibun Bank. In February, their scores were 32.7 and 35.8, respectively. Australia will release February figures for retail sales, with forecasts suggesting an increase of 0.4 percent on month following the 0.3 percent decline in January. Australia also will see March numbers for the Performance of Construction Index from the Australian Industry Group; in February, the index score was 42.7. Malaysia will release February numbers for imports, exports and trade balance. In January, imports were worth 72.08 billion ringgit and exports were at 84.08 billion ringgit for a trade surplus of 12.00 billion ringgit. Finally, the markets in Taiwan are closed on Friday for Children’s Day and will re-open on Monday. The material has been provided by InstaForex Company – www.instaforex.com…