Forex analysis review |
- January 31, 2020 : EUR/USD Intraday technical analysis and trade recommendations.
- BTC analysis for 01.31.2020 - Watch for potential downside on the BTC due to overbought condition and rejection of the median
- January 31, 2020 : GBPUSD demonstrating bullish pullback towards the depicted supply zone (1.3175-1.3200) to be watched for
- Gold 01.31.2020 - Gold is trading near the imporrtant pivot level at $1.588, watch for the price action around it to confirm
- GBP/USD - Decision pivot level on the GBP at the price of 1.3170
- Evening review for EURUSD n 01/31/2020. The euro is trying to grow - the question about the level of 1.1100
- Analysis of EUR/USD and GBP/USD for January 31. Inflation in the EU afloat, GDP – disappointing
- EUR/USD. January 31. The euro is growing but after 20-40 points, it can resume falling
- GBP/USD. January 31. The Bank of England gives a surprise, Britain officially leaves the EU, and the pound is growing
- The euro looks to the future
- EURUSD: The eurozone economy continues to experience growth difficulties
- USDCAD approaches our second target and a major short-term resistance
- Trading recommendations for EURUSD on January 31
- GBPUSD makes multiple tests of important support trend line
- EURUSD potential bounce to 1.1070 or even 1.11
- GBP/USD: plan for the US session on January 31. The pound increased to the upper border of the medium-term triangle and collapsed
- Gold remains inside bullish channel
- EUR/USD: plan for the US session on January 31. The euro is marking time before the level of 1.1038 amid poor data on inflation
- Gold auction and seller trap
- Gold at the crossroads: between $1600 and $2000
- USD / JPY and its crosses' prospects for February
- Technical analysis and forecast for USD/JPY on January 31, 2020
- EUR / USD: dollar releases steam
- Trading recommendations for GBP/USD
- Technical analysis of GBP/USD for January 31, 2020
| January 31, 2020 : EUR/USD Intraday technical analysis and trade recommendations. Posted: 31 Jan 2020 07:14 AM PST
On December 20, bearish invalidation of the depicted short-term channel was demonstrated. Thus, further bearish decline was expressed towards 1.1065 where significant bullish recovery has originated. Shortly-after, a quick bullish spike towards 1.1235 (Previous Key-zone) was suggested to be watched for bearish rejection and another valid SELL entry. Suggested bearish position has achieved its targets while approaching the price levels around 1.1110. However, the Key-Level around 1.1110 has provided some bullish demand. This was followed by a bullish pullback towards 1.1140 and 1.1175 where the depicted key-zone as well as the recently-broken uptrend were located. Recently, evident signs of bearish rejection were demonstrated around 1.1175. That's why, quick bearish decline was executed towards 1.1110. As expected in a previous article, bearish persistence below 1.1110 enabled further bearish decline towards 1.1060 then 1.1035 which failed to provide any bullish SUPPORT for the EURUSD pair. Instead, further bearish decline was demonstrated towards 1.1000 where the pair looked quite oversold while approaching the depicted demand level (1.1000). On the other hand, the EURUSD pair had a recently-established Key Level around 1.1035 which is being breached to the upside failing to provide bearish rejection for the pair. Short-term technical outlook turns into bullish as long as the EURUSD maintains its movement above 1.1035. Hence, further bullish advancement would be expected towards 1.1085 where a more consistent supply level (the backside of the depicted trend line) is located. The material has been provided by InstaForex Company - www.instaforex.com |
| Posted: 31 Jan 2020 06:59 AM PST Industry news: Bitcoin has dominated the cryptocurrency Futures market, but Ethereum might soon have its own similar product, according to Tarbert. The Chairman of the U.S. Commodities Futures Trading Commission (CFTC) appeared in a recent interview where he offered his views on numerous topics, including the cryptocurrency market. He talked about the two largest digital assets, Bitcoin and Ethereum, saying that both "fall under our jurisdiction." He continued by outlining his agency's actions towards the cryptocurrency space and specifically the Futures market: "We are doing a lot in the digital asset space. We are seeing exchanges started to list; certainly, we have seen Bitcoin Futures, both cash-settled as well as physically-delivered. My guess is we are going to see Ether Futures as well. And as things start to migrate into the commodity space, we will see even more." Technical analysis: BTC has been trading downwards as I expected yesterday. The rejection of the Pitchfork median line was the key for the recent downside movement together with the lack of demand around $9.530. Watch for selling opportunities and potential rotation down towards the $8.972 and $8.792. MACD oscillator is showing decreasing on the buying power, which adds confirmation for further downside. Major resistance is set at the price of $9.530 Support levels are seen at the price of $8.970 and $8.790. The material has been provided by InstaForex Company - www.instaforex.com |
| Posted: 31 Jan 2020 06:53 AM PST
On December 13, the GBPUSD pair looked overpriced around the price levels of 1.3500 while exceeding the upper limit of the newly-established bullish channel. On the period between December 18 - 23, bearish breakout below the depicted channel followed by initial bearish closure below 1.3000 were demonstrated on the H4 chart. However, earlier signs of bullish recovery were manifested around 1.2900 denoting high probability of bullish pullback to be expected. Thus, Intraday technical outlook turned into bullish after the GBP/USD has failed to maintain bearish persistence below the newly-established downtrend line. That's why, bullish breakout above 1.3000 allowed the recent Intraday bullish pullback to pursue towards 1.3250 (the backside of the broken channel) where bearish rejection and another bearish swing were suggested for conservative traders in previous articles. Moreover, new descending highs were recently demonstrated around 1.3120 and 1.3085. Conservative traders were advised to wait for bearish breakdown below 1.2980. This would be needed first to enhance further bearish decline towards 1.2900, 1.2800 and 1.2780 where the backside of the previously-broken downtrend is located. However, Yesterday, early signs of bullish recovery have been manifested around 1.2980-1.3000 (Bullish hammer followed by a Bullish Engulfing H4 candlestick). In the Meanwhile, Intraday traders can watch the current bullish pullback towards the depicted price zone (1.3175 - 1.3200) where another episode of bearish rejection and a valid SELL entry can be considered. The material has been provided by InstaForex Company - www.instaforex.com |
| Posted: 31 Jan 2020 06:42 AM PST Gold has been trading sideways at the price of $1.582. The price is near the critical decision level at $1.588 and you should watch carefully the price action around it.
The breakout of the $1.588 to the upside will confirm test of 1$1.611 and in that case you should watch on buying opportunities on the dips. The rejection of the critical pivot resistance at $1.588 would confirm rotation back towards the level of $1.570, $1.564 and $1.545. MACD oscillator is showing neutral stance Major resistance is set at the price of $1.588 Support levels are seen at the price of $1.570, $1.64 and $1.545. The material has been provided by InstaForex Company - www.instaforex.com |
| GBP/USD - Decision pivot level on the GBP at the price of 1.3170 Posted: 31 Jan 2020 06:29 AM PST GBP has been trading upwards at the price of 1.3150. The price is at the critical decision level at 1.3150-1.3170 and you should watch carefully the price action around it.
The breakout of the 1.3170 to the upside will confirm test of 1.3213-1.3280 and in that case you should watch on buying opportunities on the dips. The rejection of the critical pivot resistance at 1.3170 would confirm rotation back towards the level of 1.3077. MACD oscillator is showing positive reading but the slow line is tuned to the downside. Stochastic oscillator is in overbought condition... Major resistance is set at the price of 1.3150-1.317. Support level is set at the price of 1.3077. The material has been provided by InstaForex Company - www.instaforex.com |
| Posted: 31 Jan 2020 06:01 AM PST
The data on inflation in the United States (the PCE index +0.3%) is slightly higher than the forecast. While inflation (core) is kept at about 1.6% per annum. The Fed does not require intervention. The euro is trying to grow today. It is not yet clear whether it is a reversal up or just a technical pullback. The key to determining the issue will be the level of 1.1100. If the euro is fixed above 1.1100, it is a reversal up. We keep purchases from 1.1110. We keep sales from 1.0990. The material has been provided by InstaForex Company - www.instaforex.com |
| Analysis of EUR/USD and GBP/USD for January 31. Inflation in the EU afloat, GDP – disappointing Posted: 31 Jan 2020 05:46 AM PST EUR/USD On January 30, the EUR/USD pair added about 20 basis points and thus continues to move quotes away from the previously reached lows. The assumed wave Y is considered complete, and if this assumption is correct, the increase in quotes will continue as part of the construction of a new upward trend section. Most likely, the new upward section will also be three-wave, since in recent months the tool has been forming mainly corrective structures. Fundamental component: The news background on Thursday was very interesting. In general, the entire current week frankly pleases investors with the presence of interesting and important news and reports. However, this does not yet lead to an increase in the amplitude, which remains very modest. Yesterday, the most interesting news for the euro-dollar instrument came from America. The GDP data fully matched market expectations and showed an increase of 2.1% in the fourth quarter. This value was recorded in the third quarter. The value of 2.1% may still be revised since it is not final. Also released is a fairly important index of personal consumption expenditures, which unexpectedly fell to 1.3% with the value of the third quarter of 2.1%. Thus, the departure of quotes from the reached lows, that is, the decline of the dollar, was caused by weak economic reports from America. Also quite interesting was the consumer price index in Germany, which exceeded the value of last month and is equal to 1.7% y/y. This report could add optimism to buyers of the euro, especially since the US reports were weak. However, today, on Friday, inflation in the European Union was only 1.4% y/y, and the core consumer price index fell to 1.1% y/y. Also, the eurozone's GDP for the fourth quarter was disappointing, which declined from 1.2% in the third quarter to 1.0%. Thus, this news may lead to the fact that the demand for the euro currency will fall again, and the dollar will grow again, which may cause not only the complication of the wave Y but also the entire downward trend section. General conclusions and recommendations: The euro-dollar pair have presumably completed the construction of a descending set of waves. The construction of the wave Y may resume, but based on the size of the waves W and X. The conclusion is still about the completion of this wave. Thus, I recommend selling the instrument only if a successful attempt to break the mark of 1.0982 with the target of 1.0922, which corresponds to 127.2% for Fibonacci. I do not recommend buying the tool yet. GBP/USD The GBP/USD pair gained about 70 basis points on January 30. Thus, the section of the trend after December 31 continues to become more complicated, and at the moment, it is still unclear what kind of wave the instrument is currently in. It can be 2 or b or 3 or C. Either way, the markets can't yet leave the range limited by the 23.6% and 38.2% Fibonacci levels (blue grid). A successful attempt to break the mark of 1.3162 will show that the markets are ready to buy, and then the instrument will continue to form a very complex wave 2 or b. Unsuccessful – will lead to a new decline in quotes to the level of 38.2% for Fibonacci. Fundamental component: The news background for the GBP/USD instrument on Thursday was very important. Markets were waiting for the Bank of England's interest rate decision. Moreover, there were real fears that the rate would be lowered, which would certainly cause serious pressure on the pound and a drop in demand for this currency. However, the bank not only did not reduce the rate, but the voting among the members of the monetary committee showed a 0-2-7 alignment. That is, only two members voted to lower the rate. The markets were waiting for at least three to vote in favor, and possibly four. It is the fact that the majority of Central Bank governors refuse to apply such a measure as monetary easing that has caused additional demand for the pound. Moreover, today is January 31, which means that the dream of Boris Johnson and most of the British people has come true. The UK is officially leaving the EU today and is beginning an 11-month process of adapting to new conditions outside the EU. There is certainly some euphoria about this among investors, but how long will it last? General conclusions and recommendations: The pound-dollar tool continues to build a new downward trend. However, the current wave markup is too complicated. Thus, I recommend selling the British only after a successful attempt to break the mark of 1.2940 with a target located around 1.2764, which is equal to 50.0% for Fibonacci, or wait for the completion of the construction of a complicated wave 2 or b and sell the instrument after that. The material has been provided by InstaForex Company - www.instaforex.com |
| EUR/USD. January 31. The euro is growing but after 20-40 points, it can resume falling Posted: 31 Jan 2020 05:12 AM PST EUR/USD - 4H.
Good day, dear traders! As seen on the 4-hour chart, the EUR/USD currency pair continues the growth process in the direction of the corrective levels of 38.2% (1.1061) and 50.0% (1.1083), as I said yesterday. It is difficult for me to say that the information background was the reason for the growth of the European currency, since the report on the EU GDP, which was released today, frankly disappointed traders, showing an increase of only 1% in the fourth quarter, although market expectations were 1.2%. However, after the formation of two bullish divergences and almost perfect working out of the target level for the previous trading idea, I expected a corrective pullback within the continuing downward trend corridor. Thus, since the corridor remains in force, I expect the pair to turn in favor of the US currency near its upper line and resume falling towards the levels of 1.10 and 1.09. The rebound of the pair's quotes from one of the Fibo levels indicated by the down arrows can be regarded as signals for sales. If the pair closes above the descending corridor, this trading idea will be canceled. Forecast for EUR/USD and trading recommendations: The long-term trading idea remains valid. Traders still have a long-term target for a fall near the level of 1.0850, confirmed by the closing of the pair's rate below the trend line. It can take several weeks to complete. A new short-term trading idea is to sell the pair when rebounding from the corrective levels of 38.2%, 50.0% or 61.8%. A mandatory condition is that quotes do not go beyond the descending corridor. The material has been provided by InstaForex Company - www.instaforex.com |
| Posted: 31 Jan 2020 05:12 AM PST GBP/USD - 4H.
Good day, dear traders! As I said in the last review, after the quotes rebounded from the upward global correction line, the GBP/USD pair reversed on the 4-hour chart in favor of the British and started the growth process in the direction of the downward trend lin. In total, these lines form a triangle, from which I will now wait for the price to exit in order to determine the further trend. At the moment, the pair's quotes have worked out the downward trend line. Thus, if there is a rebound from it, it can already be regarded as a new signal for sales with a goal slightly higher than the already familiar level of 76.4% (1.2995). If traders perform a close on this trend line, I would recommend not to rush with purchases, but to review the entire graphical picture of the pair. Yesterday, an important meeting of the Bank of England was held in the UK, during which it was decided not to change the size of the key rate, which came as a shock to some traders. Today, the official Brexit will take place. These two events seem to be the reason for the growth of the British pound, which, therefore, may not be too long-term. Forecast for GBP/USD and trading recommendations: The new trading idea is to sell the pound when it is fixed below the correction line, as well as to buy the pair if it closes above the upper trend line. However, today I do not recommend buying the pound, as its information background is now too strong, which can cause a sharp reversal in favor of the dollar. I recommend selling small lots in the event of a rebound of quotes from the downward trend line with the target of 1.3015 (approximately). The material has been provided by InstaForex Company - www.instaforex.com |
| Posted: 31 Jan 2020 05:12 AM PST Having declined by 1.5% in January, it would seem that the EUR/USD pair violated the basic principle of fundamental analysis: "A strong economy is a strong currency". US GDP in October-December grew by 2.1% y/y, during the year - by 2.3%, while its European counterpart - by a modest 0.1% q/q and 1% y/y. Moreover, in the fourth quarter, the two largest economies in the eurozone, represented by France and Italy, unexpectedly declined. Nevertheless, the release of statistics on economic growth, instead of helping the "bears" on the main currency pair to continue the southern campaign, on the contrary, gave them a pig. The dynamics of eurozone GDP
Net export turned out to be the main driver of US GDP growth. Its contribution amounted to 1.5 pp against the background of a record decline in imports since 2009. The indicator is declining not only due to the introduction of duties by the White House but also due to weakening domestic demand. Thus, the growth of consumer spending in the United States in the fourth quarter slowed from 3.2% to 1.8%. The eurozone's gross domestic product was revised upward in July-September, and the problems of the French economy are related to the usual correction after rapid growth in the third quarter. Also, GDP statistics are lagging, while the leading indicator from the OECS signals a recovery in the eurozone economy in January-March 2020. Dynamics of European business activity
States, by contrast, risk losing steam in the first quarter due to Boeing's financial problems and the loss of growth drivers such as fiscal and monetary stimulus. The releases of data on business activity and the US labor market will be the central events of the week by February 7 and may turn out to be the beginning of the end for the "bears" on EUR/USD. "Bulls" in the euro will continue to restrain the Chinese coronavirus, which will most likely peak in the middle of the last month of winter. According to Bloomberg estimates, due to the epidemic, China's GDP may slow down to 4.5% in the first quarter. It is not the best news for official Beijing, which expects a 6% growth for the year. It will double the size of the economy compared to 2010. Another deterrent is the potential US-EU trade war. Donald Trump's appetites are great. He will certainly demand supplies of chlorinated chicken banned by Brussels to Europe, and will also retaliate in response to the European Union's carbon tax. The escalation of the conflict will force Bloomberg experts to make adjustments to the forecast of 1.16 for EUR/USD at the end of 2020. Yes, the US GDP is likely to continue to slow down, and the Fed, including due to the inversion of the yield curve, will have grounds for lowering the federal funds rate, but a new trade war will not raise the head of the eurozone economy and increase the risks of easing the ECB's monetary policy. Technically, after reaching the target of 88.6% for the "shark" pattern, the probability of EUR/USD correction in the direction of 23.6%, 38.2% and 50% of the CD wave increased. We are talking about the levels of 1.105, 1.1085 and 1.112. EUR/USD, the daily chart
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| EURUSD: The eurozone economy continues to experience growth difficulties Posted: 31 Jan 2020 05:12 AM PST The French economy contracted in the 4th quarter of this year, which indicates problems with the growth of the eurozone's GDP, since we can no longer count on Germany alone, which is also not in the best shape, tacking on the edge of recession. According to a report by the statistics agency Insee, the GDP of France, which is the second-largest economy in the eurozone, decreased by 0.1% in the 4th quarter of 2019 compared to the 3rd quarter after growing by 0.3%. The drop was directly related to strikes at the end of the year (presumably -0.1% of GDP), which were held by protesters against the pension reform, as well as a reduction in the inventory of companies and interruptions in exports. However, strikes are likely to have a limited and short-term impact on the economy. Meanwhile, consumer spending in France in December 2019 decreased by 0.3% compared to November and increased by 2.0% compared to December 2018. A drop of 0.4% m/m was predicted. This reduction in spending is unlikely to support the final report on the French GDP for 2019. Inflation also continued to decline. According to the data, the preliminary consumer price index (CPI) in France in January this year decreased by 0.4% compared to December and increased by 1.5% year-on-year. The index was expected to fall by 0.5% and grow by 1.5%, respectively. As for the EU-harmonized consumer price index, it increased by 1.6% compared to January 2019. The situation with inflation does not cause serious problems, however, the indicator falls short of the 2.0% level set by the European Central Bank. A report on Italian GDP growth was also published today. According to preliminary data, it decreased in the 4th quarter by 0.3% compared to the 3rd quarter of 2019, while it was expected to remain unchanged. All these indicators made a negative contribution to the overall gross domestic product of the eurozone in the 4th quarter, which grew by only 0.1% compared to the previous quarter. Economists had expected quarterly growth of 0.2%. The EU statistics agency Eurostat also indicated that GDP grew by only 1% compared to the same period of the previous year. Annual inflation in the eurozone rose only by 1.4% in January after rising by 1.3%, which is also far from the target, and with interest rates at zero and negative levels, it may need more drastic intervention from the Central Bank, which continues to sit on the sidelines, watching the situation develop after a series of changes made last fall. The eurozone consumer price index for January was predicted at 1.4%. Meanwhile, the core consumer price index, which does not take into account volatile categories, rose only by 1.1%. As for the technical picture of the EURUSD pair, the gradual blurring of important levels indicates the absence of major players in the market. On the one hand, wanting to take the risk and buy the euro in the current environment is not enough to push the pair above 1.1030. On the other hand, there are also no people who are eager to buy the American dollar after such a downward trend in the absence of new guidelines. The breakdown of the support of 1.1005 will again return the market to the location of the bears, which will push the trading instrument to the lows of 1.0960 and 1.0910. If the bulls are stronger, then fixing above 1.1030 will lead to an update of the highs of 1.1060 and 1.1090. The material has been provided by InstaForex Company - www.instaforex.com |
| USDCAD approaches our second target and a major short-term resistance Posted: 31 Jan 2020 04:28 AM PST USDCAD has broken through the 1.3180 resistance and our first target. Price is now heading towards the second target of 1.3275, but until then we have a major obstacle to overcome. Bulls need to push price above the important resistance trend line.
Green line - resistance Red lines - Fibonacci extension targets USDCAD has been bouncing as expected. Price has now reached important resistance levels and the green downward sloping resistance trend line. This resistance is at 1.3245 and bulls need to be very cautious as the chances of a rejection and reversal are high. Support is at 1.3155. Next upside target is at 1.3275. The material has been provided by InstaForex Company - www.instaforex.com |
| Trading recommendations for EURUSD on January 31 Posted: 31 Jan 2020 04:23 AM PST From a complex analysis, we see that the quote failed to show activity during the past day, maintaining a kind of restraint set by the market earlier. Indecision to act remains on the market for the fourth day in a row after the quote approached the psychological level of 1.1000. The sharp decline in the activity and the compression of the quote led to the fact that market participants were trapped in uncertainty, where even the external background can not move the quote from the dead point. The most significant moment was the technical factor of the previous day, where the correlated GBPUSD pair managed to show high activity during its background - more than 100 points in the form of a pulse, and the EURUSD pair continued its sluggish wandering within the previously set limits. The lack of interaction between trading instruments in such a set of circumstances confirms the fact of pressure on market participants of sharp changes. Having information about such strong pressure and the lack of a proper rebound from the psychological level of 1.1000, the recovery theory takes on a deeper meaning. So, the restraint of buyers, who had every chance to turn the quote in the right direction, remained without action, and sellers, due to the circumstances, build a platform within the second stage of recovery. As you know, this is a theory, but if you refer to a steady downward move and the fact that the oblong correction has been held in the market for at least four months, then there is still a common sense of recovery. Let me remind you that the stumbling block is the level of 1.1000, which displays the second stage. Until it is broken, the risk of continuing the oblong correction remains. In terms of volatility, we see that since the beginning of the week, the average daily indicator is 30 points, which is 33% lower than the overall dynamics of the currency pair. See the table at the end of the article. (Daily variation: 28 points - Monday; 27 points - Tuesday; 35 points - Wednesday; 33 points - Thursday) Analyzing the past day by the minute, we see an upward trend and the development of which occurred within the control values. As discussed in the previous review, traders are waiting for a break in the stagnation that has formed over the past days, where the points of interaction with trading positions are located in the coordinates of 1.0980 and 1.1040. Looking at the trading chart in general terms (the daily period), we see a constant fluctuation within the oblong correction, where no drastic changes have yet occurred. The news background of the previous day included data on the unemployment rate in Europe, where they recorded a decline from 7.5% to 7.4%, and the euro did not react in any way. In the second half of the day, data was released on applications for unemployment benefits in the United States, where changes were not expected, but they occurred. So, initial applications decreased by 7 thousand, but repeated ones decreased by 44 thousand. The market reaction was absent here, which is even more alarming for market participants. Today, in terms of the economic calendar, we have already received data on the level of inflation in Europe. The forecasts coincided and we saw an acceleration from 1.3% to 1.4%. Even a moderate increase in inflation reduces the fear of a possible ECB interest rate cut. After that, preliminary data on EU GDP were released, where expectations coincided and we saw a slowdown from 1.2% to 1.0%. There was no market reaction, which continues to pump ambiguity into the existing fluctuation. The upcoming trading week in terms of the economic calendar has PMI data, as well as a report from the United States Department of Labor, which will arouse the interest of market participants. The most interesting events displayed below: On Monday, February 3 EU 10:00 London time - business activity index in the manufacturing sector (PMI): Prev 47.8 -> Forecast 45.9 USA 15:00 London time - manufacturing PMI from ISM (Jan): Prev 47.2 -> Forecast 48.0 On Tuesday, February 4 UK 10:30 London time - index of business activity in the construction sector (Jan): Prev 44.4 -> Forecast 45.9 USA 16:00 London time - the volume of industrial orders On Wednesday, February 5 EU 11:00 London time - Retail sales (y/y) (Dec): Prev 2.2% -> Forecast 1.3% USA 14:15 London time - ADP report on private sector employment (Jan): Prev 202K -> Forecast 155K USA 16:00 London time - ISM business activity index in the service sector (Jan) On Friday, February 7 USA 14:30 London time - unemployment rate USA 14:30 London time - report of the United States Department of Labor: Prev 145K -> Forecast 156K Further development Analyzing the current trading chart, we see that the quote is conditionally in place, focusing on the area of 1.1020/1.1040. The process of stagnation persists in the market, and this is the fifth day. Market participants are closely monitoring the price-fixing points and its behavior, since such a long hovering within the psychological level of 1.1000 has not been for a long time. Concerning reducing volatility, as well as ignoring the external background, we can assume that acceleration is coming, and the direction is not so important, as the local jump on which you can earn. In turn, traders are closely watching the coordinates of 1.0980 and 1.1040, as the jump in activity will come soon, as was the case for the GBPUSD pair. It is likely to assume that the ambiguous mood will soon subside and a local discharge will occur, which may not lead to drastic changes, but it will be possible to make money on it, and in this case, this is the most important thing. The points of interaction with trading operations are located in the values of 1.0980 - sell and 1.1040 - buy. Based on the above information, we will output trading recommendations: - Buy positions will be considered in the event of a breakdown of the accumulation and fixing the price higher than 1.1040. - Sell positions are considered if the downward interest is held and the price is fixed below 1.0980, without the shadow piercing the candle. The perspective of the move is located in the following stages: #3/1-1.0950 and #3/2-1.0879. Indicator analysis Analyzing different sectors of timeframes (TF), we see that due to the prolonged stagnation, the indicators of technical instruments at minute and hour intervals have become unstable. In turn, the medium-term outlook still signals sales. Volatility for the week / Volatility Measurement: Month; Quarter; Year. The volatility measurement reflects the average daily fluctuation, based on the calculation for the Month / Quarter / Year. (January 31 was based on the time of publication of the article) The volatility of the current time is 21 points, which is a low value even relative to the dynamics of the current week. It is likely to assume that if the price remains stagnant and fluctuates within the specified limits, we will not see any drastic changes in terms of volatility. Key levels Resistance zones: 1.1080**; 1.1180; 1.1300**; 1.1450; 1.1550; 1.1650*; 1.1720**; 1.1850**; 1.2100. Support zones: 1.1000***; 1.0900/1.0950**;1.0850**; 1.0500***; 1.0350**; 1.0000***. * Periodic level ** Range level *** Psychological level ***** The article is based on the principle of conducting a transaction, with daily adjustments. The material has been provided by InstaForex Company - www.instaforex.com |
| GBPUSD makes multiple tests of important support trend line Posted: 31 Jan 2020 04:19 AM PST GBPUSD has challenged for the 5th time the support trend line connecting the lows from 1.2768. As long as price is above this trend line we could see a move higher...however price bounces off that trend line but does not manage to make a higher high.
GBPUSD has respected this green trend line as shown in the chart above. However after each bounce, price made a lower high.. Is this a triangle formation or a Head and shoulders formation. One thing is for sure. If price breaks below the recent lows and the green trend line support, we could see a nice sell off towards 1.27. On the other hand if price breaks above the recent high at 1.3175, we could have another try towards 1.33-1.34. The material has been provided by InstaForex Company - www.instaforex.com |
| EURUSD potential bounce to 1.1070 or even 1.11 Posted: 31 Jan 2020 04:14 AM PST EURUSD is bouncing off the 1.0990 bottom. There are several signs indicating the bounce will continue towards 1.1070-1.11 area. This is not the time to be bearish EURUSD as this could unfold into a longer-term bottom.
Green line - resistance trend line Red horizontal lines -Fibonacci extension targets EURUSD has shown bullish divergence signals in the RSI in the short-term, as price was making new lows and the RSI not. Price has made a bounce from 1.0990 to 1.1038 and now after a pull back we see strength by buyers once again. This bounce is expected to push price to 1.1070 at least. Most probable target is the 1.11 zone where we find a confluence of both the Fibonacci targets and the two trend lines that converge. A rejection of this bounce at 1.11 will be seen as a back test and we should then expect resumption of downtrend. If bulls manage to break above the red and green trend lines we could have an important low at 1.0990 and we could expect something bigger above 1.1240. Until then we have lots of time. Support at 1.0990 is key for this short-term bullish scenario and must not break. The material has been provided by InstaForex Company - www.instaforex.com |
| Posted: 31 Jan 2020 04:09 AM PST To open long positions on GBPUSD, you need: Back in the morning review, I paid attention to the breakout of the resistance of 1.3102 and the level of 1.3133, where I recommended taking profits and opening short positions. This is what happened, and the presence of large sellers in the area of the upper border of the triangle was confirmed. At the moment, the bulls need to hold the level of 1.3102, which has already been tested as support, or even better, try to close the day above the area of 1.3133, which can trigger a new wave of euro purchases in the area of the highs of 1.3172 and 1.3227 at the beginning of next week, where I recommend taking the profits. If the GBP/USD falls below the support of 1.3102 in the second half of the day, the scenario of closing long positions may work. Therefore, in this case, you can only buy the pound from the lows of 1.3065 and 1.3030. To open short positions on GBPUSD, you need: Sellers did not fight for the resistance of 1.3102 but declared themselves in the area of 1.3133, which I paid attention to in the morning. At the moment, the test of support for 1.3102 has taken place, but the bulls have so far rebuffed. The key task of the bears for the second half of the day will be the return of GBP/USD under the support of 1.3102, which will quickly push the pound to the area of the lows of 1.3065 and 1.3030, where I recommend fixing the profits. Also, we should not forget about the resistance of 1.3133, since its breakdown can lead to a large wave of growth. In this case, it is best to look for new short positions after the resistance update of 1.3172, or even higher, from the maximum of 1.3227. Indicator signals: Moving Averages Trading is conducted above the 30 and 50 daily averages, which indicates the continuation of the upward trend. Bollinger Bands If the average indicator border breaks, the pound will be supported by the lower level at 1.3070. Breaking the upper limit at 1.3133 will lead to a new wave of growth.
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| Gold remains inside bullish channel Posted: 31 Jan 2020 04:04 AM PST Gold price is trading around $1,580 so far respecting the lower boundary of the bullish channel it has been inside since the $1,535 low. Bulls need to hold above $1,563 in order to continue to control the short-term trend.
Red lines - Fibonacci extension targets Gold price has so far reached our first target of $1,578 and has made a double top at $1,586. Breaking above this double top will open the way for our second target of $1,600. Support is at $1,563 and as long as price is above that level, bulls are in control.
Gold price is approaching the 2020 highs and on a weekly basis we observe a constructive bullish move. The bearish divergence is still there and we could continue seeing it even if we see a new higher high. The RSI is back at overbought levels but the most important price level is this week's low. As long as price is above this week's low, bulls have nothing to fear. The material has been provided by InstaForex Company - www.instaforex.com |
| Posted: 31 Jan 2020 04:00 AM PST To open long positions on EURUSD, you need: Buyers of the euro were disappointed by the weak report on inflation growth in the eurozone, which coincided with economists' forecasts, but the report on the GDP rate was not as good as expected, which kept EUR/USD in the narrow price channel. From a technical point of view, nothing has changed either. Volatility is quite low, which plays on the side of euro buyers. The bulls still need a breakout and consolidation above the resistance of 1.1038, which will strengthen the momentum that is aimed at the level of 1.1060, where I recommend taking the profits. Good data on the US economy, in particular on the growth of spending and income of Americans, can lead to pressure on the euro. In the scenario of the pair's decline in the second half of the day, the area of 1.1009 will provide support, but it is best to open long positions from there under the condition of a false breakout since a break in this range will lead to a reversal of the upward correction and return new sellers to the market. In this case, I recommend looking for EUR/USD purchases only after updating the lows around 1.0983 and 1.0964. To open short positions on EURUSD, you need: Sellers are not in a hurry to return to the market, but there is also no serious demand for the euro. Today, the task of the bears is to form a false breakout in the resistance area of 1.1038, and good data on the growth of incomes and expenses of Americans will push the euro to the support of 1.1009, on which the further direction of the market depends. Fixing below this range will increase the pressure on EUR/USD, which will open a direct road to the area of 1.0983 and 1.0964 levels, where I recommend fixing the profits. If the bullish scenario is implemented, then you can only count on short positions after breaking the resistance of 1.1038 from the maximum of 1.1060. Indicator signals: Moving Averages Trading is just above the 30 and 50 moving averages, which keeps the chance of a euro recovery. Bollinger Bands Volatility is low, which does not give signals to enter the market based on the indicator.
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| Posted: 31 Jan 2020 03:16 AM PST Good afternoon, dear traders, I present to you the analysis of GOLD. So, this trading week began with "coronavirus" fears, and so it passed in this way. "CROWBAR", by and large, was "about nothing", and traders continued to recoup Chinese pneumonia. Today there is an interesting situation in terms of the distribution and concentration of sellers' stops in gold. This is a classic trap that can slam shut today or Monday in Asia. H1: In this situation, I do not recommend working in sales, because you will be forced to put stops at the top two levels and you will most likely be removed. Therefore, either work from pullbacks to increase in the American session or wait for a false breakdown (namely false) and after that, work in the opposite direction. Good luck with trading and a happy weekend! The material has been provided by InstaForex Company - www.instaforex.com |
| Gold at the crossroads: between $1600 and $2000 Posted: 31 Jan 2020 03:00 AM PST The current state of the precious metals market, gold in particular, is of concern to analysts. Recently, the yellow metal has experienced noticeable volatility, and forecasts for its price were one more improbable than the other. Experts fear that the dynamics of gold will lose stability, and its value will reach fantastic values, causing an imbalance in the market. At the moment, the price of the leading precious metal is relatively stable. On Thursday, January 30, its growth amounted to only 0.4%, and since the beginning of the year, the yellow metal has risen in price by no more than 4.4%. The current picture is slightly at odds with experts' forecasts for the end of 2019, when various scenarios of raising the price of gold were put forward up to $4000 per 1 ounce. It is possible that the rise in the price of "gold" quotes is hindered by an unstable external background: increasing tension over the spread of coronavirus, a sharp drop in oil prices, collapses in stock markets, and the inversion of the yield curve of US treasury bonds. Analysts believe that one of the potential drivers of gold growth may be the presidential election in the United States. Not only the future direction of the world economy, but also the dynamics of the yellow metal will depend on their results. According to Peter Schiff, an analyst of the precious metals market, if Democrat Bernie Sanders, one of the current candidates, wins, the US economy will face a disaster, and the price of gold will exceed $2000. Although many experts consider this scenario unlikely, do not rule out such a development. The currency strategists of the German company Degussa are confident that this year, the price of the yellow metal will rise to $1,700 per 1 troy ounce. Analysts believe that this will happen against the background of a slowdown in the global economic growth, and a surge in the financial markets. Degussa summarizes that in a stormy sea of economic turmoil and financial instability, the leading precious metal remains a safe haven. According to some experts, in the medium term, gold can overcome the psychologically important mark of $1,600 per 1 ounce. Analysts believe that if this scenario is implemented, February 2020 will bring another rally of the precious metal. This will direct the vector of "gold" quotes to new highs, experts summarize. The material has been provided by InstaForex Company - www.instaforex.com |
| USD / JPY and its crosses' prospects for February Posted: 31 Jan 2020 02:53 AM PST USD / JPY
The attempt of the players to increase initiated at the beginning of the year was unsuccessful. In January, they failed to rise above the final boundaries of the monthly Ichimoku cross (109.59 - 110.83), and also gain a foothold in the bull zone relative to the weekly cloud. Players on the rise were forced to retreat, so far they have questioned the preservation of the daily golden cross and the presence, albeit not higher, but at least in the cloud zone in the daily and weekly times. Therefore, based on the situation, it can be noted that in February the couple will spend in the struggle for possession of area 109 (daily cloud + final boundaries of the daily cross + weekly short-term trend + lower boundary of the weekly cloud), followed by strengthening of the players to lower. The confrontation at the lines 109 can lead to a retest of the levels completed on the eve and a new testing of zone 109, 40-50 (daily Tenkan + weekly Senkou Span B + monthly Kijun). The nearest support zone, which will also try to defend bullish interests in the future, is located in the region of influence and attraction at level 108 (monthly and weekly cross levels) in February. EUR / JPY
In January, the upward players retested the previously reached milestones in the region of 122.70-50 (the first target of the daily target for breakdown of the cloud + lower boundary of the weekly cloud), but after that, they passed the initiative to the opponent, who, it should be noted, managed to achieve good results. Due to which, it almost designated a rebound from a monthly short-term trend. As a result, if the fundamental component does not intervene, the main prospect for February may be the further strengthening of the bearish sentiment and the development of the started decline. The interests of the lowering players will be aimed at eliminating the weekly golden cross (119.34 - 118.52) and fulfilling the daily bearish target for the breakdown of the cloud. The main influence and attraction now have an area of 120.20-50 (weekly Fibo Kijun + monthly Tenkan), Furthermore, in the case of a retest, the area 121.30-50 (daily cloud + daily cross + weekly Tenkan and Senkou Span A) will be important. A reliable fixation above can level the January achievements of the bears, which will require a new assessment of the situation. GBP / JPY
The pair failed to achieve great certainty in January and the whole month passed in consolidation and uncertainty. The support was the monthly medium-term trend (141.55), while the weekly Tenkan and the monthly Fibo Kijun (144.37 - 145.09) organized the upper limit for the movement. Therefore, in February, the reliable overcoming of these lines will be of paramount importance. The following significant landmarks are now located for players to increase in the region of 147.93 (maximum extreme), and for players to decrease by 139.20-80 (weekly Fibo Kijun and the cloud). Ichimoku Kinko Hyo (9.26.52), Pivot Points (classic), Moving Average (120) The material has been provided by InstaForex Company - www.instaforex.com |
| Technical analysis and forecast for USD/JPY on January 31, 2020 Posted: 31 Jan 2020 02:50 AM PST Hello, dear colleagues! Since today is Friday and the weekly trading ends, it means that you can pay attention to USD/JPY currency pair. Previously, when the interest rate on the US dollar was much higher, this currency was considered a risky asset, while the yen, as far as I remember, has always been a safe-haven currency. When investors are drawn to risk, the dollar-yen grew, and when the market is negative, it declined. Now that the US refinancing rate has been lowered three times in a row, it is not as clear as before, so I suggest that you go to the price charts and consider the technical picture for this instrument. Weekly
Last week and the week before, the euro-yen met a strong barrier for further growth right on the green resistance line of 125.29-110.29. Thus, we can conclude that this line was built on the correct points, and this causes a sense of satisfaction. But that's not the point now. Until there is a true breakdown of this line, the pair will be under downward risks. But if the resistance line breaks 125.29-110.29, the road will open to further growth, the goals of which will be 110.68 and 112.40. At the moment, USD/JPY has entered the limits of the Ichimoku indicator cloud, but the further decline is held back by the 50 simple moving average and the Tenkan line. As you can see, at the moment, there is a strong rebound up from these indicators. It is not yet known how long it may last (or whether it will last at all), as well as what the current weekly candle and its closing price will be in the end. It is not excluded that it will be performed in the form of a reversal model of candle analysis, and in this case, we can count on the growth of the euro-yen, which may be quite significant. The descending scenario will be signaled by the exit of the cross down from the cloud to the Ichimoku indicators, then the pair will go to the support area of 107.65, on the ability to break through which the prospects of the EUR/JPY pair rate will depend. Now, let's move on to a smaller period. Daily
Here the picture is mixed. In yesterday's trading, the pair fell within the Ichimoku cloud, which is not good for the prospects of further growth. However, the long lower shadow indicates the heroic attempts of the euro bulls to raise the rate and return the quote to the area above the upper border of the cloud. It did not work out a bit, although the candle for January 30 may well be considered a reversal, that is, bullish. Just today, after yesterday's candle with a huge tail, we are seeing the strengthening of the EUR/JPY rate. At the moment, the pair has already made attempts to get out of the cloud up, but the strong Kijun line of the Ichimoku indicator is an insurmountable obstacle. It prevents the pair from going up from the Ichimoku cloud and testing the resistance of sellers at 109.27. But even the breakdown of this mark will not clarify the situation completely. The fact is that there is a Tenkan line at 109.41, which can provide strong resistance and turn the price down, making the breakdown of the resistance of 109.27 false. With this development, everything will be very bad for the euro-yen and there will be a high probability of a decline, and quite intense. Let's move to the USD/JPY trading plan. At the moment, the main trading idea is buying. However, I do not consider it appropriate to open long positions under the resistance in the form of the upper border of the cloud and the Kijun line. You either need to wait for the Kijun breakout and buy on the pullback to this line, or it is risky and aggressive to buy from 109.00. I wish you success and profits! The material has been provided by InstaForex Company - www.instaforex.com |
| EUR / USD: dollar releases steam Posted: 31 Jan 2020 02:26 AM PST
The US economy has shown the slowest annual growth in three years. Therefore, an increase in US GDP of 2.1% in the fourth quarter and 2.3% in general for 2019 did not become a catalyst for strengthening the greenback. Obviously, net exports, which is the main driver of the expansion of the American economy is actually quite toxic for it. This indicator made a 1.5% contribution to the growth of national GDP in October – December due to the strongest decline in imports since the "great recession" of 2008-2009. This is indicative of domestic demand problems in the United States and is confirmed by a slowdown in consumer spending in the country from 3.2% to 1.8%. Thanks to the introduction of large-scale trade tariffs, the White House managed to cut off oxygen imports, but the US economy is unlikely to grow for a long time on such fuel. In addition, the United States is not an isolated country, and the state of its economy depends on what is happening in the rest of the world. The Fed understands this very well and is sensitive to international risks. Because of this, the American Central Bank is often compared with the tail of a dog, the role of which is the global economy. Amid accelerating global economic growth in 2017, the Federal Reserve was actively raising the interest rate, while a slowdown in global GDP in 2019 due to the trade war between Washington and Beijing which forced the regulator to resort to monetary easing. In this regard, 2018 stands apart and the increase in the rate on federal funds was promoted by a large-scale fiscal stimulus, which so could not accelerate the American economy to the promised 3% by Donald Trump. For two consecutive years, the national GDP did not reach the intended goal and, probably, will not be able to do this in 2020.
In favor of easing the fed's monetary policy, another inversion of the Treasurys yield curve speaks. The indicator predicted all seven previous recessions in the US economy and its return to the levels recorded during the period of escalation of tension in trade relations between the United States and China suggests the need for the Fed to resume the cycle of preventive monetary expansion. According to Bloomberg experts, the further spread of the coronavirus will subtract 1.4% from China's GDP in the first quarter, and by the end of the year, economic growth in the country may slow down to 4.5%. Given that China accounts for 17% of global GDP and the US economy is not isolated from the rest of the world, an external negative can affect its state in the future. Support for the EUR / USD pair was provided not only by data on American GDP but also by a positive report on European unemployment, which fell in December to the lowest level since May 2008 (from 7.5% to 7.4%), as well as the Bank of England's decision to maintain a rate of 0.75% adopted by a majority vote. For most of 2019, the pound and the euro have moved in almost the same direction. Therefore, the sharp rise in GBP / USD following the results of the January meeting of BoE could not leave indifferent the main currency pair. Despite the fact that the first "bulls" attack on resistance 1.1030–1.1035 was repulsed, they do not seem to intend to abandon the idea of re-assault. The material has been provided by InstaForex Company - www.instaforex.com |
| Trading recommendations for GBP/USD Posted: 31 Jan 2020 02:05 AM PST Using complex analysis, we can see a long-awaited impulse movement after a painful stagnation, where the quote has grown by more than 100 points in a few hours. For almost two days, the quote wandered within the psychological level of 1.3000, having not just a low activity, but also its absence. The signal of the upcoming acceleration was the dynamics of volatility for January 29, which was only 39 points, which is one of the lowest values in history. This kind of compression indicates a strong imbalance of trading forces, where the slightest noise can cause a local jump in activity, which happened in the market. Regarding the zigzag-shaped model theory, everything was not as simple as we wanted. The completion of the model did not happen, due to the absence of a tipping formation. In fact, the previous phases of the model are still out of reach of the price. There were no consolidations. If we discuss a possible new compression phase within the model, the stop coordinates are within the 70-80% of the previous move, i.e. the value of 1.3112– 1.3131. At the same time, if we analyze the coordinates of the fracture of the model, we get the following areas: 1.3170-1.3280 - fracture in the upward direction; 1.2960-1,2904 – fracture in the downward direction. In terms of volatility, we see a significant acceleration, where compared with that of the day before, we have an increase in activity three times. Meanwhile, in the case of the average daily indicator, there is an increase of 42%. Detailing the past day by the minute, we see that the jump in activity occurred during the period of 11:00-13:00 London time [time on the trading terminal]. After that, a relatively narrow range of 1.3074-1.3108 was formed. As discussed in the previous review, the tactic of sitting outside the market has paid off. Traders waited for the breakout of one of the interaction control values [1.2960 & 1.3040-45], where they successfully entered the market and took a solid profit. Looking at the trading chart in general terms [the daily period], we see that there were no drastic changes when the price once again approached the psychological level of 1.3000. The quote still continues to wander in the conditionally sideways corridor, relative to seven weeks. The news background of the previous day included data on applications for unemployment benefits in the United States. Although changes were not expected, they have occurred. Thus, initial applications fell by 7 thousand, while repeated ones surprised everyone with a decrease of 44 thousand. Meanwhile, there was no market reaction to good performance in the States for other reasons, so the focus of the last day was the Bank of England's meeting, where as predicted, the interest rate was left unchanged at 0.75%. This decision was expected for many factors, but the noise before the meeting in the media was fanned strong, claiming that the moment has come and that we will see 0.50%. The moment is indeed near, but let's remember the earlier statements of the regulator saying that actions will not be taken immediately, and that the hint was not about the beginning of the year. Based on the reports from the Bank of England, the distribution of votes on the rate remained the same [7-2], which upset many followers of the rate cut. At the same time, Mark Carney, who is leaving his post, outlined the regulator's poor views on the economic prospects of the United Kingdom which they are monitoring. In fact, the move to reduce the rate has already been made, but due to caution, changes in the Bank's policy will take place slowly. The market reaction to the results of the Bank of England meeting was in terms of local strengthening of the pound, due to the lack of rate cuts and specifics. The most interesting point was that the surge in activity occurred half an hour before the meeting results, which questions who leaked the information. In terms of the general information background, we have a freedom-inspired Boris Johnson, who loudly declares a bright future for a strong and purposeful country, after Brexit "The most important thing to say today is that this is not the end, but the beginning. This is the moment when the dawn breaks and the curtain rises for the start of a new act. This is a moment for real national renewal and change, " says British Prime Minister Boris Johnson. However, do not forget that this great power is now facing a transition period, which will be extremely difficult and ambiguous with a strict framework. The upcoming trading week, in terms of the economic calendar, is expected to be rich. We have a stream of statistical data, centered on the report of the United States Department of Labor, which will certainly interest market participants. The most interesting events are displayed below - - - > Monday, February 3 UK 10:30 London time – the Index of business activity in the manufacturing sector (PMI): Pred. 49.8 - - - > Forecast 47.6 US 15:00 London time - manufacturing PMI (PMI) from ISM (Jan): PREV. 47.2 - - - > Forecast 48.0 Tuesday, February 4 UK 10:30 London time - index of business activity in the construction sector (Jan): PREV. 44.4 - - - > Forecast 45.9 US 16:00 London time - volume of industrial orders Wednesday, February 5 UK 10:30 London time - business activity index in the service sector (Jan): PREV. 52,9--- > Forecast of 49.1 US 14:15 London time - ADP report on private sector employment (Jan): PREV. 202K - - - > Forecast 155K US 16:00 London time - ISM business activity index in the service sector (Jan) Friday, February 7 US 14:30 London time - unemployment rate US 14:30 London time - report of the United States Department of Labor: PREV. 145K - - - > 156k Forecast Further development Analyzing the current trading chart, we can see the still-holding upward interest that was held on the market yesterday, during the initial impulse movement. The quote has already reached the area of 70-80% relative to the previous move, which concentrates special attention on itself. In fact, the current location of the price puts traders at a possible risk of breaking the Zigzag-shaped model in the upward direction. In this case, you should not jump to conclusions, since in terms of the main movement, the quote must take a position in the interaction range of 1.3170-1.3280. Otherwise, without this, we will still be in the Z-model, which means that there is a certain return movement. From the emotional mood of the market, we can see a high coefficient of speculative positions, which is understandable, as we stood still for several days. Detailing the minute-by-minute time period, we see that the range of 1.3074-1.3108 fell during the start of the European trading session, having a number of impulse rising candles. In turn, speculators actively closed the previously short positions, since the risk of a reversal is high, and the existing profit is already higher than all expectations. Having a general picture of actions, there is a possibility that further actions will depend on the behavior of the quote relative to the current values. So, the first assumption is that we have a local overbought due to acceleration, together with the Zigzag-shaped model that still remains, where a descent to the area of 1.3050 will be very possible. The second scenario meanwhile is based on the fact that the Z-model has come to completion and is waiting for its fracture, so it is worth monitoring the behavior of the quote relative to the area of 1.3170-1.3280. Based on the above information, we will output the following trading recommendations: - Buy positions are considered if the price fixes higher than 1.3170. - Sell positions are considered in the reverse plan, where positions with less trading volume can be considered in the area of 1.3100. Indicator analysis Analyzing the different sectors of timeframes (TF), we see that due to the last jump, the indicators of technical instruments have changed their downward mood to an upward one, relative to all major time periods. Volatility for the week / Volatility measurement: Month; Quarter; Year The volatility measurement reflects the average daily fluctuation, based on the calculation for the Month / Quarter / Year. (January 31 was based on the time of publication of the article) The current volatility is 58 points, which is not bad for the day after the rally. There is a possibility that if activity slows down, the volatility of the day will be within the daily average. Key level Resistance zones: 1,3170**; 1,3300**; 1,3600; 1,3850; 1,4000***; 1,4350**. Support areas: 1,3000; 1,2885*; 1,2770**; 1,2700*; 1,2620; 1,2580*; 1,2500**; 1,2350**; 1,2205(+/- 10p.)*; 1,2150**; 1,2000***; 1,1700; 1,1475**. * Periodic level ** Range level ***Psychological level **** The article is based on the principle of conducting a transaction, with daily adjustments. The material has been provided by InstaForex Company - www.instaforex.com |
| Technical analysis of GBP/USD for January 31, 2020 Posted: 31 Jan 2020 01:42 AM PST Overview: The GBP/USD pair was trading around the area of 1.3100 a day ago. Today, the level of 1.3052 represents a weekly pivot point in the H1 time frame. The pair has already formed minor resistance at 1.3131 and the strong resistance is seen at the level of 1.3174 because it represents the weekly resistance 2. So, major resistance is seen at 1.3174, while immediate support is found at 1.3023. If the pair closes below the weekly pivot point of 1.3052, the GBP/USD pair may resume it movement to 1.3023 to test the weekly support 1. From this point, we expect the GBP/USD pair to move between the levels of 1.3023 and 1.3174. Equally important, the RSI is still calling for a strong bullish market as well as the current price is also above the moving average 100. As a result, buy above the weekly pivot point of 1.3052 with targets at 1.3131 and 1.3174 in order to form a double top. Nevertheless, stop loss should always be taken into account, accordingly, it will be of beneficial to set the stop loss below the last bearish wave at the level of 1.3003. The material has been provided by InstaForex Company - www.instaforex.com |
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