Forex analysis review |
- Forecast for USD/JPY on November 18, 2020
- Forecast for EUR/USD on November 18, 2020
- Forecast for GBP/USD on November 18, 2020
- Hot forecast and trading signals for GBP/USD on November 18. COT report. COT report. Analysis of Tuesday. Recommendations
- Overview of the GBP/USD pair. November 18. What are the chances of Donald Trump reviewing the election results through the
- Overview of the EUR/USD pair. November 18. Hungary and Poland block the adoption of the EU budget. The transfer of power
- EURUSD - Another COVID-19 vaccine has been tested, but it will not save us from harsh measures
- GBPUSD - forecasts of a positive and negative outcome of BREXIT
- EURUSD evening review 17.11 Euro grows
- Analytics and trading signals for beginners. How to trade EUR/USD on November 18? Getting ready for Wednesday session
- November 17, 2020 : EUR/USD daily technical review and trade recommendations.
- November 17, 2020 : EUR/USD Intraday technical analysis and trade recommendations.
- November 17, 2020 : GBP/USD Intraday technical analysis and trade recommendations.
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- EUR/USD trading signals for November 17
| Forecast for USD/JPY on November 18, 2020 Posted: 17 Nov 2020 06:59 PM PST USD/JPY The yen strengthened by 37 points on Tuesday, this morning the 104.05 target level was reached. Now we are waiting for the price to overcome this level so that the pair could fall to the 103.18 target . The advantage of just such a scenario is indicated by the Marlin oscillator, whose signal line is decreasing along a steep trajectory.
The four-hour chart shows that the price is developing under both indicator lines, and the MACD line marks its own downward reversal, which reinforces the downward short-term trend. The Marlin oscillator is declining in its own channel. There are no signs of a price reversal yet. We are waiting for the price to settle below the 104.05 level and for it to move to 103.18.
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| Forecast for EUR/USD on November 18, 2020 Posted: 17 Nov 2020 06:58 PM PST EUR/USD Yesterday the euro rose by 42 points, slightly falling short of the MACD line on the daily timeframe. The previous price peak from November 9 reached the resistance of the MACD line, and therefore the growth from the last four days that did not retest the MACD line can be taken as a correction from the fall on November 9-11. With such a plan, the price can fall to the target level of 1.1620 without much difficulty. But first you need to settle under 1.1750 in order to make sure that the price will move exactly according to this plan. At the preliminary stage, the price should settle below the nearest level of 1.1830.
The Marlin oscillator is turning to the downside. It is especially important to accelerate the decline of the oscillator as a leading instrument in the coming days, because if Marlin behaves differently, we might not have a downward trend. We see a rising situation on the four-hour chart. The price is above both indicator lines, the Marlin oscillator is also in the positive zone.
Take note that the MACD indicator line is close to the 1.1830 level, at 1.1802. Therefore, the price consolidating below 1.1830 on a daily scale should be perceived as the price falling below 1.1802. If this does not happen, then the actual growth target will become 1.1940 and the resistance of the MACD line at 1.1904 will become an intermediate resistance. The material has been provided by InstaForex Company - www.instaforex.com |
| Forecast for GBP/USD on November 18, 2020 Posted: 17 Nov 2020 06:58 PM PST GBP/USD The pound sterling rose by 54 points on Tuesday, and it settled above the MACD line on the daily chart. The Marlin oscillator continues to grow in the positive zone. Therefore, the pound has the strongest position among other counter-dollar currencies. The target remains - the range of 1.3350/80.
The four-hour chart shows that the price is staying above both indicator lines: above the balance line (red) and the MACD line (blue). Marlin is growing in the positive zone. We expect the pound to continue rising.
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| Posted: 17 Nov 2020 06:15 PM PST GBP/USD 1H The GBP/USD pair weakly moved up on Tuesday, November 17. The upward trend line remains relevant, therefore, you are advised to trade to the upside now. According to yesterday's recommendations, we should have stayed long with the 1.3298 target. Yesterday, this level was not reached, nevertheless, the upward trend is still present. Therefore, the bulls continue to be the dominant traders in the market, and the pound/dollar pair retains excellent prospects for succeeding growth. Take note that the current fundamental background does not support the pound's growth. Therefore, with a high degree of probability, the previous local high near the 1.3300 level may turn out to be the peak of the entire upward trend of recent months. At least now it is very difficult to even guess what basis traders can continue to buy the pound. Nevertheless, long positions remain relevant until the price settles below the trend line. Bears are advised to wait until the trend line has been overcome, which will lead to a trend reversal to a downward trend. GBP/USD 15M
Both linear regression channels are directed to the upside on the 15-minute timeframe, so there are no signs of the end of the upward trend at the moment. Therefore, the pair may rise again to the resistance level of 1.3298. Further prospects of the bulls will depend on overcoming or not overcoming this level. COT report
The GBP/USD pair increased by 250 points in the last reporting week (November 3-9). It is not surprising that the pound strengthened, since the US presidential election was held during this period, and the dollar was declining against its main competitors. However, the pound began to grow after this period. In general, the pound has been growing recently. But the Commitment of Traders (COT) reports does not really provide any useful information. Non-commercial traders closed 3,300 Buy-contracts (longs) and opened 1,100 Sell-contracts (shorts). Therefore, they became more bearish, and the net position decreased by 4,400, which is not so small for the pound. Recall that the "non-commercial" group opened a total number of 87,000 contracts. Thus, 4,400 is 5%. As for the general trend among professional traders, the indicators in the chart clearly show that there is no trend at this time. The green line (net position of non-commercial traders) on the first indicator constantly changes its direction. The second indicator also shows the absence of a trend, as professional traders increase the net position, then reduce it. Thus, no long-term conclusions or forecasts can still be made based on the COT report. We recommend paying more attention to technique and foundation. The fundamental background for the British pound did not change on Tuesday. In principle, you can clearly see this from the way the pair traded yesterday. The movements were smooth, the volatility was low. Bank of England Governor Andrew Bailey's speech did not provide any new and important information, although traders continue to wait for hints from the central bank about the timing of the introduction of negative rates. However, they cannot get this information yet. Not a single macroeconomic report was published on Tuesday. There was also no new information regarding the negotiation of the trade deal. We mean official information. Therefore, traders continue to trade the pair rather sluggishly and wait for important information on the most important topics. And there are now plenty of such both in the United States and in the UK. You just need to wait for one of these topics to explode. Bailey is set to speak once again on Wednesday. However, we do not expect anything new and interesting from the head of the British central bank. In addition to this event, the publication of the consumer price index for October will also take place. According to experts' forecasts, inflation will accelerate to 0.6% y/y, but this value still remains quite low. It is unlikely that it will be able to provoke new purchases of the British currency. However, the pound does not really need the support of the fundamental background from Britain right now. The negative background from the US and traders' hopes for an agreement in the negotiations between Brussels and London keep the pound afloat. We have two trading ideas for November 18: 1) Buyers for the pound/dollar pair continue to hold the initiative in their hands. Thus, we advise you to continue buying the pair while aiming for the resistance levels of 1.3298 and 1.3409, if the bulls continue to manage to keep the pair above the trend line. Take Profit in this case will be from 40 to 150 points. 2) Sellers have not been able to take the pair below the trend line. If the price settles below the trend line and below the support area of 1.3160 -1.3184, the trend will change to a downward trend and you can sell the pound/dollar pair while aiming for the Senkou Span B line (1.3081) and support area of 1.3004-1.3024. Take Profit in this case can range from 60 to 120 points. Hot forecast and trading signals for EUR/USD Explanations for illustrations: Support and Resistance Levels are the levels that serve as targets when buying or selling the pair. You can place Take Profit near these levels. Kijun-sen and Senkou Span B lines are lines of the Ichimoku indicator transferred to the hourly timeframe from the 4-hour one. Support and resistance areas are areas from which the price has repeatedly rebounded off. Yellow lines are trend lines, trend channels and any other technical patterns. Indicator 1 on the COT charts is the size of the net position of each category of traders. Indicator 2 on the COT charts is the size of the net position for the "non-commercial" group. The material has been provided by InstaForex Company - www.instaforex.com |
| Posted: 17 Nov 2020 04:31 PM PST 4-hour timeframe
Technical details: Higher linear regression channel: direction - sideways. Lower linear regression channel: direction - upward. Moving average (20; smoothed) - upward. CCI: 99.1078 The British pound sterling in pair with the US dollar continued to rise in price for most of Tuesday, November 17. After another unsuccessful attempt to start a downward movement (fixing the price below the moving average), the quotes again resumed moving north. Despite the difficult fundamental background for the British currency. However, we have repeatedly talked about a very strange strengthening of the British currency. From our point of view, it is completely unfounded, and the pound sterling is overbought. For a while, the pound could get more expensive due to the "four types of crisis" in America (summer months and September), but then the situation stabilized a little and now only the epidemiological crisis causes serious concerns. Nevertheless, it is the pound that continues to grow although the UK also has a very difficult situation with the "coronavirus", with the economy, and with Brexit. However, as we have also repeatedly stated, any fundamental theory must find technical confirmation. There are no confirmations, so the pair is continuing its upward movement. The UK has its saga. If in the States it is "elections and Donald Trump", in Britain it is "Brexit and trade negotiations". Unfortunately, to date, it is still unclear at what stage the negotiations between the groups of Michel Barnier and David Frost are at, what is the progress? From time to time, there are reports in the media from circles close to the negotiating groups or the government, but all these reports are different and often contradict each other. For example, only in the last few days, the media reported that David Frost had informed Boris Johnson of a possible agreement next week. That there are still serious disagreements about fishing and fair competition. The fact that the UK is still not afraid to leave the European Union without any agreements. Some media outlets report a "stalemate" on the issue of fishing. Some talk about overall progress in the negotiations. Perhaps this is the reason for the growth of the British currency. Remember, how many times the pound sterling (since 2016) has grown when there were no reasons for this? How many times did it grow up solely on rumors, expectations, and hopes? This is probably the case right now. Perhaps market participants (primarily major players) believe that the deal will eventually be agreed upon, and this is why the British currency is strengthening. Thus, despite the appearance of a failed fundamental background, as we can see, there are reasons why the pound may well show growth. Another thing is that if officials eventually announce a failure in the negotiations, the pound may collapse down by 500-600 points, if not more. And this may happen in the next few days, maximum - weeks. As early as this week, an EU summit will be held, during which issues related to the UK, Brexit, and deal negotiations are to be discussed. We remind traders that the European Union is also studying the possibility of legal proceedings with London over the "Johnson bill", which has not yet been adopted but may be adopted in the future even though the House of Lords rejected it. In general, despite the growth of the British currency, we still believe that at any moment this currency can fall like a stone. Meanwhile, not all US political analysts are sure that the election is over and Donald Trump has finished the fight for the presidency. Experts from the Harvard University School of Economics conducted a study that identified 285 different scenarios, following which Donald Trump may try to stay in power. The main reasons for Trump's irrepressible desire to remain President, experts call the deprivation of immunity and a huge number of lawsuits against him and his business empire. While Trump is President, lawsuits are not considered or are considered "through the fingers", and Trump himself is inviolable. Trump loses the post – and all claims to him will no longer be claimed by the US President, but claims to an ordinary US citizen. As a result, the school's researchers even identified a clear strategy for Trump's actions, which began to be implemented several months ago, long before the election. First, Trump began to form a negative attitude towards the Democrats in advance, regularly stating that they would try to rig the election with the help of "postal voting". Secondly, Trump started talking about the so-called "red gap" in advance: Trump first pulled ahead, and then quickly lost his advantage due to ballots that came in the mail (that is, later), in which the majority of votes is given to Biden (but this was known before the election). Thus, this effect Trump from the very beginning tried to pass off as a scam, saying that the Democrats through this scheme can wind up any number of votes since they will know how many votes Trump has. Third, Trump tried his best to find violations in the voting and counting in every state in which he lost. Whether it's a broken counting machine, not allowing representatives of the Republican Party to the precinct or a glitch in the software that is responsible for counting votes. Fourth, the dismissal of Mark Esper as Secretary of Defense, whom Trump could not rely on because of the latter's public refusal to use military force to disperse demonstrators during rallies and racially motivated protests over the summer. Fifth, the appointment of "his" judge to the US Supreme Court in case the case goes to the Supreme Court. Sixth, Trump, through lawsuits in civil courts, achieves the maximum delay in the announcement of the official and final election results. Seventh, Trump will try to recognize elections in a particular state as invalid, in which case the electoral college will be appointed by the state authorities, not by the voters. And if these authorities are Republicans, then they will appoint Republicans. Thus, despite the apparent unambiguity of Trump's defeat, indeed, everything may still be incomplete, and the remaining six weeks of a crazy 2020 may still present surprises. For the US dollar, all this political chaos is a negative factor. We have already said that market participants are afraid of uncertainty, so the longer Trump keeps the chances of a "coup", the longer the dollar remains under pressure. Another thing is that in the UK, the situation is such that it is extremely difficult for the pound to find reasons for growth. However, both currencies cannot become cheaper at the same time.
The average volatility of the GBP/USD pair is currently 99 points per day. For the pound/dollar pair, this value is "average". On Wednesday, November 18, therefore, we expect movement inside the channel, limited by the levels of 1.3156 and 1.3354. The reversal of the Heiken Ashi indicator downwards signals a new round of corrective movement. Nearest support levels: S1 – 1.3245 S2 – 1.3184 S3 – 1.3123 Nearest resistance levels: R1 – 1.3306 R2 – 1.3367 R3 – 1.3428 Trading recommendations: The GBP/USD pair is trying to continue moving up on the 4-hour timeframe. Thus, today it is recommended to stay in long positions with targets of 1.3306 and 1.3354 until the Heiken Ashi indicator turns down. It is recommended to trade the pair down with targets of 1.3123 and 1.3062 if the price is fixed below the moving average line. The material has been provided by InstaForex Company - www.instaforex.com |
| Posted: 17 Nov 2020 04:31 PM PST 4-hour timeframe
Technical details: Higher linear regression channel: direction - sideways. Lower linear regression channel: direction - upward. Moving average (20; smoothed) - upward. CCI: 109.5623 The second trading day of the week for the EUR/USD pair was again fairly calm. During the day, the euro/dollar pair continued its upward movement within the side channel of 1.1700-1.1900, which we have already mentioned more than once. By and large, the technical picture does not change at all, and quotes continue to move to the upper line of the specified channel. Thus, a downward reversal may occur near the level of 1.1900, which may be the beginning of a new round of downward movement with the goal of 1.1700. In the long term, the absolute flat has been maintained for three months. The US currency is still not in demand among traders, however, the fall against the euro does not continue. We still expect that the previous local high near the 1.2000 level will remain the peak of the entire upward trend. However, as we have already said, any fundamental theory must be supported by technical factors and signals. There are no 100% forecasts in the foreign exchange market. Hungarian-Polish veto. Yesterday, the media literally stirred up around the unexpected news about the blocking of the EU budget for 2021-2027 by Hungary and Poland. In addition to the seven-year budget, Hungarians and Poles blocked the 750 billion euro recovery fund after the pandemic. The reason is the EU's refusal to change the principles of allocating funds from the budget and the recovery fund. At the moment, the following rules apply: if a violation of the principles of democracy, freedom of the press and independent justice is observed in any of the EU countries, then funding from the common European "cauldron" may stop until the authorities of the violators resolve the situation. Poland and Hungary have repeatedly been suspected of violating these principles, so they may well lose payments from the EU budget. At the same time, any EU member state can veto any bill and any important decision. This was used by Hungary and Poland. Thus, negotiations will now have to start with representatives of these countries to change their decision, otherwise the budget will not be adopted, as well as the fund. And if they are not accepted, then the money will not flow to the countries. EU officials have already criticized the actions of the Polish and Hungarian authorities, calling their actions reckless and short-sighted. According to politicians, many European companies are on the verge of bankruptcy and are waiting for this money. However, this problem is small for the European Union and the euro currency. It is obvious to everyone that sooner or later the parties will agree and the budget and the fund will be adopted and ratified. It is only a matter of time and small concessions on each side. All the same, the budget for 2021-2027 and the recovery fund will have to start distributing no earlier than March next year. That is, there is still plenty of time. And it is also not profitable for Hungary and Poland to block these two bills forever, since they will also not receive a single euro from these sources. Thus, this problem is likely to be resolved in the near future. Moreover, the next EU summit will be held this Thursday. Well, the euro did not react to this news and calmly continued to rise in price. In the United States, the main problem remains "coronavirus". The topic of elections, which has stirred the minds of all market participants in recent months, has finally faded into the background and is no longer of particular interest. By and large, the election can already be considered history, since Trump did not take any real steps to change the results of the vote. Therefore, there will be no revision of the results. Joe Biden won by a wide margin, so suing Trump doesn't make any sense. Only time will be lost. And he doesn't have much time left. However, the American President has already set out to conduct them "usefully" and escalate the trade war with China, which in recent months has been frankly put on pause. Both Washington and Beijing simply waited, waiting for who would be elected President. After all, future negotiations and future relations between the countries depended on this. Now that China has got the President it wanted, the chances of a softening of US-China relations have increased dramatically. However, Trump either really intends to run for President in 2024, or just finally wants to punish his main culprit for losing the election, where he is going to introduce a number of sanctions measures and new duties against Chinese officials and on Chinese goods. In the first case, the President can prepare a springboard for his presidency in 2024-2028, in the second - he is just going to take revenge on Beijing. But the current US President does not care about the "coronavirus". He didn't care from the start. And after losing the election, he doesn't care twice. It's a good thing that every state in America has the right to set quarantine restrictions themselves. Trump stopped commenting on COVID-2019 a few weeks ago (and maybe even months), because each of his new statements further lowered his political ratings. But Joe Biden believes the virus is still very dangerous. And this is noticeable without Biden's words. The Democrat who won the presidential race said that Donald Trump's refusal to recognize the election results and transfer power to him could lead to an increase in the number of victims from the "coronavirus". The Office of General Services, which is supposed to begin the process of transferring power, did not recognize Biden as the new President. Accordingly, the procedure has not started, and Biden does not have access to government reports that are needed to plan a strategy to combat COVID-2019 in the future. "We are talking about saving lives, this is not an exaggeration. If we don't coordinate our actions, more people may die," Biden said. From a technical point of view, the euro/dollar pair still continues to maintain an upward trend. Traders will be able to count on a stronger growth than to the level of 1.1900 if they confidently overcome this level. In this case, the quotes leave the side channel. However, we remind traders that the side channel is not perfect and the price has briefly left it several times over the past three months. Accordingly, even overcoming its upper line does not guarantee the resumption of the upward trend.
The volatility of the euro/dollar currency pair as of November 18 is 62 points and is characterized as "average". Thus, we expect the pair to move today between the levels of 1.1803 and 1.1927. A downward reversal of the Heiken Ashi indicator may signal a new round of downward correction within the framework of a continuing upward trend. Nearest support levels: S1 – 1.1841 S2 – 1.1780 S3 – 1.1719 Nearest resistance levels: R1 – 1.1902 R2 – 1.1963 R3 – 1.2024 Trading recommendations: The EUR/USD pair has started a new round of correction, but remains above the moving average. Thus, today it is recommended to open new long positions with targets of 1.1902 and 1.1927, if the Heiken ASHI indicator turns up. It is recommended to consider sell orders if the pair is fixed below the moving average with the first targets of 1.1803 and 1.1780. The material has been provided by InstaForex Company - www.instaforex.com |
| EURUSD - Another COVID-19 vaccine has been tested, but it will not save us from harsh measures Posted: 17 Nov 2020 03:54 PM PST Another vaccination born against the COVID-19 virus was raging all over the world. This time, the American company Moderna Inc. reported that the effectiveness of the drug during the final test was 94.5%. Everything would be fine if not for the cost, which, according to experts, can be more than $ 37 per injection. Not everyone will be able to afford such an expensive drug, and even if they want to buy it, they still won't be able to, since the United States itself will get it first, which played with the presidential election and missed its second wave of infections. Thus, the United States is storming the maximum daily growth day after day according to the latest report, and the indicators have gone far beyond 100 thousand detected cases per day and now amount to about 160 thousand. The absolute maximum was set just a few days ago – 181 thousand, and the total number of people infected with coronavirus infection exceeds the mark of 11 million, and this data is only for the United States. With such a terrifying trend and the lack of a proper deterrent tool in many states, the news about large-scale quarantines is no longer considered something surprising, there is only one question—why was it delayed so long? The US presidential election turned out to be the most important topic for the current government than the health of its own citizens, but this is their choice. Quarantine measures from the Atlantic to the Pacific. Following the data received, California has announced an immediate tightening of quarantine measures since November 16, a mask regime has been introduced throughout the state, and people must wear them literally everywhere. According to the order of the Governor, the previously announced resumption of work of enterprises will be postponed, and most of the state's educational institutions will suspend training. In turn, the Governor of New York decided on a curfew for bars and restaurants, which will have to close at 10 p.m., as well as gyms, while internal meetings should be limited to a maximum of 10 people. The Governor of New Jersey followed the example of New York and introduced new restrictions. It is now forbidden to hold meetings of more than 10 people, previously there were 25. The existing restrictions can only be the beginning if the upward trend fails to change to a decline in the near future. The US dollar has yet a proper reaction to the actions of some states, perhaps this is due to the fact that investors are looking at the situation with COVID relative to the whole world. Therefore, Europe is already in the zone of full-scale restrictive measures, and the trend of infections is still growing. The French government says bars and restaurants will remain closed until mid-January as the government tries to quell a renewed outbreak of the virus. According to recently published data, France is working on a long-term strategy to combat the pandemic, and the tactics will be presented at the end of November. According to rumors, the strategy provides for restrictive measures until the summer of 2021. It is now understood why investors do not suddenly run out of the US dollar, as it is not clear where it is safer to hold assets at the moment. German Chancellor Angela Merkel was the only person who expressed optimism about the current situation. The chancellor hoped that the pace of recovery in Europe will come as soon as it is possible to control the virus (COVID-19). Merkel noted that the German economy has recovered strongly after the collapse in activity in the spring of this year, but new restrictive measures introduced after a new wave of infections will lead to stagnation at best in the last quarter. This is despite financial assistance for the most affected sectors, such as hospitality and entertainment. Since the market can change as quickly as there is information noise, the situation in the global economy is very difficult. Traders should think a hundred times before laying strategic positions. In terms of technical analysis, it can be seen that the quote in the period of November 16 tried to return to the level of 1.1810, but at the end of the day it still remained above this coordinate, which gives confidence to buyers. Presumably, if the new restrictive measures in the United States will affect the volume of dollar positions, then the prospect of a move to the local maximum of November 9, 1.1920, does not look like something supernatural. The bigger problem will be the fact that if the European currency manages to gain a foothold higher than 1.1920. In this case, the main psychological indicator of 1.2000, where there was already a quote in the period of September 1, will be at risk. As for the market dynamics for November 16, low activity continues to be recorded, which is considered abnormal. So since November 12, there has been a decline in volatility, which on November 13 was only 38 points. Yesterday, the market accelerated slightly to 54 points, but it is still 32% below the average level. Such a long-term restraint of trade forces, with such a stable information noise, indicates the accumulation process, which can eventually lead to a sharp acceleration in the market. At the trading chart in general terms (daily period), the sideways trend is still considered mainly in the medium term. However, if the psychological level of 1.2000 falls, then everything may change. In terms of the economic calendar today, we received data on retail sales, where the previous data was revised in favor of growth from 5.4% to 5.9%, and the current indicator reflected 5.7%, which coincides with market expectations. Data on the volume of industrial production was published after that, which came out better than the forecast. The previous indicator was revised for the better -7.3 - - - > -6.7%, and the current indicator reflected an even greater slowdown in the rate of decline to -5.3%. In the current trading chart, it is visible that the rapid upward movement led to almost complete recovery of the euro relative to the decline over the past week. Only time will tell whether this will be a new stage of upward development—it is too early to draw conclusions. In order to minimize the volume of short positions, the quote must be kept higher than 1.1920, preferably on a four-hour period. In this case, the movement to the psychological level of 1.2000 should be talked about. Until the above scenario comes true, it is advisable not to exclude the natural basis of the price rebound from the area of 1.1900/1.1920, for it has repeatedly happened in history. Indicator analysis Analyzing a different sector of timeframes (TF), it is clear that the indicators of technical instruments at minute intervals signal a sale due to the initial fixation of long positions after an intensive upward move. The hourly and daily intervals are still on an upward wave, signaling a purchase. Weekly volatility / Volatility measurement: Month; Quarter; Year Measurement reflects the average daily fluctuation, based on the calculation for the Month / Quarter / Year. (November 17 was based on the time of publication of the article) The dynamics of the current time is only 50 points, which is 37% below the average level. The market participants will likely take a pause, as a new round of acceleration is waiting for us with the start of the European session. An exception to the rule may be the information background. For example, a new set of restrictions on the United States will be published, which will give an incentive to speculators. Key levels Resistance zones: 1,1900-20**; 1,2000***; 1,2100*; 1,2450**; 1,2550; 1,2825. Support zones: 1,1810*; 1,1700; 1,1612*;1,1500; 1,1350; 1,1250*;1,1180**; 1,1080; 1,1000***. *Periodic level **Range level ***Psychological level The material has been provided by InstaForex Company - www.instaforex.com |
| GBPUSD - forecasts of a positive and negative outcome of BREXIT Posted: 17 Nov 2020 03:54 PM PST While the negotiations between England and Brussels on a trade agreement are in full swing, traders have become more active and under the auspices of Bloomberg began to actively fantasize, and what would happen if..? Everyone understands that a negative outcome on Brexit will lead to an instant weakening of the British currency. So after four years of divorce litigation, even the most ardent speculators are tired, and now, the result without a deal will affect the trading chart by weakening the pound by about 5% of the total value according to the survey. A positive outcome of the existing negotiations, which will be expressed by the conclusion of a peace deal, according to a bloomberg survey, may lead to the strengthening of the British currency by another 2% of the current value. It is worth noting that relative to the March lows, the pound against the dollar has already strengthened by more than 16%, so such a modest scale of 2% may be considered justified. Don't forget that even a positive Brexit is a blow to the UK economy, which is declining in volume throughout the long-running process, if you don't take into account the catastrophic global crisis of 2020 If you go back to the current Brexit negotiations, you can see that the media is actively full of rumors that the parties are allegedly closer to a positive outcome and close officials plan to announce a breakthrough on Monday. Toxic info-noise with unjustified expectations leads to local strengthening of the pound. At the same time, these same "Insider" sources claim that the talks may still fail, as the two sides are still some distance apart on familiar stumbling blocks that have plagued the talks since they began in March. Getting a deal will still require the UK to make serious political decisions about whether it is willing to compromise, especially on the thorny issue of access to British fishing waters, an EU official said. To be brief, Britain and the EU are using the pressure of time to try to force each other to compromise. It is worth recalling that even in the case of a positive outcome, the parties need to ratify the agreement and this process also requires time. According to information on the ratification of the agreement to the British Parliament a couple of days, while the European Parliament this should take about three weeks. In terms of technical analysis, you can see that during the past day there was an attempt to reverse the quote, where market participants locally managed to go down to the area of 1.3165, but then there was a stop with a reverse move in the direction of the rebound point of 1.3240. Approximately zero change, where the daily candle is close to the "Doji" shape. Unfortunately, the information background does not allow us to fully develop the downward interest, thus the multi-stage system described in previous reviews may be postponed indefinitely. As for the market dynamics for November 16, there is the lowest indicator since the beginning of November, it was 76 points, which is 38% below the average level. It is worth considering that even with such a high discrepancy between the average and daily dynamics, minute intervals reflect acceleration, where the naked eye can see the speculative hype. Looking at the trading chart in General terms (daily period), you can see that the recovery relative to the September downward tact is more than 80%, and this indicates a high desire on the part of buyers in this period. Today, in terms of the economic calendar, we do not have statistics for the UK but the United States has something to report for. Retail sales in the United States seemed to grow but also decreased, this was due to the fact that the previous indicators were revised in favor of growth from 5.4% to 5.9%, and the current value came out at 5.7%. After that, we published data on the volume of industrial production, which came out better than the forecast. The previous indicator was revised for the better -7.3 - - - > - 6.7%, and the current indicator reflected an even greater slowdown in the rate of decline to - 5.3%. Analyzing the current trading chart, you can see that the maximum of the last day had passed, and the speculative mood associated with some rumors about the positive outcome of Brexit began to chase a quote to the side of the 1,3300 level. Now everything depends on further information of the noise as fixing prices higher than USD 1.3300 for a four-hour period can increase the chances of buyers for further recovery relative to September, where the impact will be local maximum 1,3480. It is worth considering that the pound is already overbought and a small change in background information, for example, it could lead to a reduction in long positions and as a result of a natural rebound from a low of 1.3300. Thereby keeping prices lower than USD 1.3300 leaves the sellers in a descending course. Indicator Analysis Upon analyzing a different sector of timeframes (TF), it is clear that the indicators of technical instruments continue to follow the upward course signaling a purchase. Volatility for the week / Volatility Measurement: Month; Quarter; Year Measurement reflects the average daily fluctuation based on the calculation for the Month / Quarter / Year. (November 17 was based on the time of publication of the article) The Dynamics of the current time is only 86 points, which is 30% below the average level, but you can see speculative interest which you can earn by operating on smaller time periods. Key level Resistance zones: 1,3300**; 1,3600; 1,3850; 1,4000***; 1,4350**. The support area: 1,3175(1,3200); 1,3000***; 1,2840/1,2860/1,2885; 1,2770**; 1,2620; 1,2500; 1,2350**; 1,2250; 1,2150**; 1,2000*** (1,1957);1,1850; 1,1660; 1,1450 (1,1411). * Periodic level ** Band level ***Psychological level I advise you to read the articles: EURUSD-Great America is like a circus GBPUSD is the never-ending word BREXIT Trading recommendations on the currency market for novice traders-EURUSD and GBPUSD 17.11.20 The material has been provided by InstaForex Company - www.instaforex.com |
| EURUSD evening review 17.11 Euro grows Posted: 17 Nov 2020 01:46 PM PST
EUR USD The Euro is going up but purchases are already risky. We are holding purchases from 1.1825 but we are already ready for a stop-flip down from 1.1840. Sales from 1.1840 and lower from 1.1810. The material has been provided by InstaForex Company - www.instaforex.com |
| Posted: 17 Nov 2020 01:10 PM PST Hourly chart of the EUR/USD pair
The EUR/USD pair made another upward spurt in the upward trend. However, it was extremely difficult for novice traders to trade today, since early in the morning the pair immediately grew by around 30 points in an hour, and it was on this candle that a buy signal from MACD was formed. And so a signal appeared while the price had already gone up a decent distance. Nevertheless, even if traders opened buy positions on this signal, they only lost a few points at the time of the MACD indicator's reverse downward reversal. In any case, the losses were small. Unfortunately, the EUR/USD pair came close to the upper border of the horizontal channel and, accordingly, there is a very high probability of a downward reversal in this area and it could start moving towards the lower border of the 1.1700-1.1900 channel, which is where the price has been for about three months. Confidently overcoming the 1.1903 level can provoke a succeeding upward movement, which novice traders can reach. In the meantime, we are still leaning towards the option of a new downward movement. Novice traders had nothing to pay attention to on Tuesday. There was quite interesting news regarding the adoption of the EU budget for 2021-2027. There were interesting messages from Donald Trump, as well as some interesting reflections on his prospects as president of the United States and actions in the next and remaining ten weeks. However, nothing that could trigger an increase in volatility. As a result, the pair passed only about 50 points in a day, which is quite small, but it eloquently shows that there were no important news and reports during the day. The US currency began to rise in price even towards the evening, which is completely inconsistent with the nature of the retail sales report that was just published and showed a smaller increase in the indicator in October than it was predicted. The European Union is set to publish a relatively important report on inflation for October. However, it is unlikely to please the buyers of the European currency. The main indicator is forecast to remain at the level of -0.3% y/y. That is, deflation will be recorded in the European Union for the fourth consecutive month. Deflation, like high inflation, is considered a negative factor for any economy. Therefore, this report is unlikely to cause additional demand for the euro. But, in conjunction with the approach to the 1.1903 level, there are increasing chances of a downward reversal and a new fall by 100-150 points. Possible scenarios for November 18: 1) Since the price continues to trade above the upward trend line, long positions are now relevant. The upside potential of the euro, as always, is limited by the 1.1903 level, and the price is near it. Thus, formally, to open new buy positions, you need to wait for a new signal to buy MACD and trade upward with the target of 1.1900, however, due to the proximity of this level, we recommend that novice traders brace for a downward reversal or they should overcome 1.1903. And only after that, should you consider the possibility of opening new deals. 2) Trading for a fall at this time is not relevant, since there is a pronounced upward trend. Thus, novice traders are advised to wait for the upward trend to end in order to have a reason to open short positions. Namely, the price should settle below the trend line. In this case, open sell orders while aiming for 1.1820 and 1.1790. On the chart: Support and Resistance Levels are the Levels that serve as targets when buying or selling the pair. You can place Take Profit near these levels. Red lines are the channels or trend lines that display the current trend and show in which direction it is better to trade now. Up/down arrows show where you should sell or buy after reaching or breaking through particular levels. The MACD indicator (14,22,3) consists of a histogram and a signal line. When they cross, this is a signal to enter the market. It is recommended to use this indicator in combination with trend lines (channels and trend lines). Important announcements and economic reports that you can always find in the news calendar can seriously influence the trajectory of a currency pair. Therefore, at the time of their release, we recommended trading as carefully as possible or exit the market in order to avoid a sharp price reversal. Beginners on Forex should remember that not every single trade has to be profitable. The development of a clear strategy and money management are the key to success in trading over a long period of time. The material has been provided by InstaForex Company - www.instaforex.com |
| November 17, 2020 : EUR/USD daily technical review and trade recommendations. Posted: 17 Nov 2020 08:55 AM PST
Few Weeksago, the price zone around 1.1880-1.1900 constituted a KEY Price-Zone as it corresponded to the backside of the depicted broken ascending channel where significant bearish pressure and a reversal Head & Shoulders pattern were demonstrated. Recently, Two opportunities for SELL Entries were offered upon the recent upside movement towards 1.1880-1.1900. All target levels were achieved. EXIT LEVEL was reached around 1.1720. Early signs of bullish reversal were demonstrated around the recent price levels of 1.1600. Shortly after, the EUR/USD pair has demonstrated a significant BUYING Pattern after the recent upside breakout above the depicted price zone (1.1750-1.1780) was achieved. As mentioned in the previous article, the pair has targeted the price levels around 1.1920 which exerted considerable bearish pressure bringing the pair back towards 1.1800 which constitutes a prominent KEY-Zone for the EUR/USD pair. Thus, the pair remains trapped between the price levels of 1.1750-1.1900 until breakout occurs in either directions. The material has been provided by InstaForex Company - www.instaforex.com |
| November 17, 2020 : EUR/USD Intraday technical analysis and trade recommendations. Posted: 17 Nov 2020 08:40 AM PST
Intraday traders should have noticed the recent bearish closure below 1.1700. This indicated bearish domination for the market on the short-term. However, the EURUSD pair has failed to maintain sufficient bearish momentum below 1.1625 (38% Fibonacci Level). Instead, another bullish breakout was being demonstrated towards 1.1870 which corresponded to 76% Fibonacci Level. As mentioned in previous articles, the price zone of 1.1870-1.1900 stood as a solid SUPPLY Zone corresponding to the backside of the broken channel. Moreover, the recent bearish H4 candlestick closure below 1.1770 was mentioned in previous articles to indicate a valid short-term SELL Signal. All bearish targets were already reached at 1.1700 and 1.1630 where the current bullish recovery was initiated. The recent bullish pullback towards the price zone of 1.1870-1.1900 was supposed to be considered for signs of bearish rejection and another valid SELL Entry. S/L should be placed just above 1.1950. Bearish closure and persistence below 1.1777 (61.8% Fibonacci Level) is needed to enhance further bearish decline at least towards 1.1630. Otherwise, another bullish pullback towards 1.1870-1.1900 should be considered for another valid SELL Entry The material has been provided by InstaForex Company - www.instaforex.com |
| November 17, 2020 : GBP/USD Intraday technical analysis and trade recommendations. Posted: 17 Nov 2020 08:33 AM PST
In July, the GBP/USD pair has expressed an Ascending Flag Pattern above the price level of 1.2780. Shortly after, bullish persistence above the price zone of 1.3300 was achieved. This was supposed to allow bullish pullback to pursue towards 1.3400 as a final projection target for the suggested pattern. However, the GBP/USD pair failed to do so. Instead, another bearish movement was targeting the price level of 1.2840 and 1.2780 where bullish SUPPORT existed allowing another bullish movement initially towards 1.3000 which failed to maintain sufficient bearish momentum. That's why, the recent bullish breakout above 1.3000 has enabled further bullish advancement towards 1.3250-1.3270 where the upper limit of the new movement channel came to meet the GBP/USD pair. Upon any upcoming bullish pullback, price action should be watched around the price levels of (1.3250-1.3270) for signs of bearish pressure as a valid SELL Entry can be offered. Initial bearish target would b located at 1.3000. While S/L should be placed above 1.3300. The material has been provided by InstaForex Company - www.instaforex.com |
| Does it make sense to expect USD downtrend? Posted: 17 Nov 2020 07:33 AM PST According to the forecasts by analysts at CITI, the US dollar is on track to lose 20% of its value. Market participants are agitated about this outlook. Does it make sense to believe in this viewpoint? What does it rest upon? Obviously, this forecast is sure to arouse attention among investors because of its catchy heading. Analysts seem to be longing for attention from mass media and market participants. Let's assume the US dollar will fall 20% in value. Against what currency? Speaking about the US dollar index, the US currency will lose the most against the euro. The US Federal Reserve is determined to impose more stimulus measures. At the same time, the ECB has also come up with stimulus solutions. Perhaps, the European regulator will launch a much bigger stimulus program. The major difference is that yields of the US Treasuries are higher than the ones of the European bonds. The ongoing crisis revealed that global risk aversion sharply boosts demand for the US dollar. It is a good idea to get to know viewpoints of various experts. Nevertheless, you should mull over before you believe in the broad-based weakness of the US dollar. The opposite viewpoint was suggested by TD Securities. Today they predicted that the US dollar would climb 2% in the nearest months. The greenback will find solid support from soaring coronavirus cases worldwide and contraction of the global economy. This is a short-term outlook. As for the long-term forecast, experts maintain their point that the greenback is doomed for weakness during 2021. Importantly, lockdowns in European countries will certainly affect the EU gross domestic product. In this context, the euro might drop 2% against the US dollar. Bloomberg Economics also warns of a severe downturn in the EU economy. The think tank monitors high-frequency indicators. Almost half of the top ten economies have been logging a serious slowdown. The global death toll amid the COVID-19 pandemic reached a record peak. The level of patients admitted to hospitals is back to 50% from the previous high in some EU countries. Such events are seen as short-term bearish factors for EUR/USD. When it comes to political prospects in the US, the last week did not clear up the case. Donald Trump does not acknowledge his defeat. However, he is not successful in court proceedings, challenging the outcome of the presidential election. Meanwhile, investors think it's a bad idea to buy the US dollar. No matter how this year ends up. The split of power in the US goes without saying. This derails a budget policy. So, monetary policy is expected to prop up the US economic growth. The US central bank aims to turn on the printing press at its full capacity to mitigate political risks. In such cases, the US dollar tends to lose ground. The COT reports disclose that open interest is in favor of selling. Nevertheless, if the US dollar weakness comes true, this will hardly play havoc with financial markets. The Fed's cash emissions are unlikely to boost demand for the US currency which could speed up inflation. Analysts warn of financial bubbles. Therefore, some economists foresee not a decline of the US dollar but the same economic conditions in the medium term. So, the greenback is going to keep afloat. At the same time, analysts do not rule out that the strain on the US dollar could be the main culprit of a fall of the US currency. After the US dollar index tests lows, it will rebound to the current levels. Let's apply this scenario to the EUR/USD pair. It is expected to climb over 1.21 and afterwards make a downward correction to 1.17.  |
| NZDUSD vulnerable to a pull back towards 0.68-0.6785 if short-term support at 0.6865 fails to hold. Posted: 17 Nov 2020 07:00 AM PST With NZDUSD in a bullish channel and price making higher highs and higher lows, we have confirmation that trend is still bullish. However there are some signs that we should not ignore and they are not very good for bulls.
Red rectangle- first pull back target Black lines -Fibonacci retracements NZDUSD despite making a marginal higher high, it looks weak and ready to turn lower. Price is now challenging lower channel boundary support at 0.6875. If the channel is broken we expect price to test the 38% Fibonacci retracement level around 0.6790. The RSI is not following price and is not making higher highs also. This bearish divergence supports our view that a pull back is near. The first target area for a pull back is found at the 38% Fibonacci level. Specially if support at 0.6790-0.6780. The material has been provided by InstaForex Company - www.instaforex.com |
| Gold price remains supported but still vulnerable Posted: 17 Nov 2020 06:54 AM PST Gold price is trading below $1,900 and above key support of $1,850. Price has bounced once again after re-visiting the $1,850 support area. However this time the bounce got rejected again at the resistance. Traders better be patient and trade near key support and resistance levels.
Red rectangle - resistance Gold price is now trading at $1,889. Price is closer to support than resistance. Bullish positions are favored as price is closer to sell stop level. Our preferred view is to stay neutral and turn bearish when and if price breaks support at $1,850. We do not expect that price will respect the support if tested again. We expect next time we see support tested, support will fail to hold. The material has been provided by InstaForex Company - www.instaforex.com |
| EURUSD still inside short-term bullish channel Posted: 17 Nov 2020 06:50 AM PST In our latest EURUSD analysis we pointed out when price was trading at 1.1820 that it was right above key short-term support and traders better prefer bullish positions as the risk is low relative to the potential reward. After one day price has reached as high as 1.1893, while now trading at 1.1872.
EURUSD continues making higher highs and higher lows in the short-term. Price remains inside the bullish channel. We could see a pull back over the next 12 hours towards 1.1850 where we find channel support. Resistance is at 1.19. Breaking below 1.1850 could push price lower towards 1.1820-1.18 again. Traders better take profits from yesterday's short-term positioning and wait for a pull back towards 1.1850 to see how price reacts to the support. A bounce off the support (lower channel boundary) would be a bullish sign. The material has been provided by InstaForex Company - www.instaforex.com |
| USD falls, but it may surprise its major rivals Posted: 17 Nov 2020 06:42 AM PST Positive news about a vaccine against COVID-19 gave hope to investors that the pandemic could come to the end soon. Moreover, market participants seem to be betting on a possible division of the US Congress. Notably, this could happen very soon. In this case, the US authorities will hardly manage to conduct an effective budget policy. That is why the country's monetary policy will be the only tool to maintain the economic growth. It means that the Fed will have to issue more money to compensate for political risks. That is why there is no surprise why the US dollar has been recently losing in value. On Monday, the US dollar index slumped to multi-week lows. Moreover, it went on sliding on Tuesday. Analysts at Goldman Sachs believe that the greenback is still overvalued by 10%. "A likely continuation of negative real interest rates in the US, combined with a sharp global economic recovery, would be a "standard recipe for broad dollar weakness", Zach Pandl, Goldman Sachs' co-head of global FX, rates and EM strategy, wrote. "Investors still seem reluctant to embrace a lower dollar view for the remainder of this year and through 2021 given the looming uncertainty around the US election, the health of the global economy and how the US will perform relative to other markets," Pandl added. "So, many investors are not positioned for a weaker dollar in the coming months." At the same time, analysts at JPMorgan expect upbeat news on the development of a vaccine against COVID-19. According to them, this will lead to an outflow of capital from the US currency. However, this process could be halted by short positions on the USD and an increase in the yield of treasuries. Therefore, it is recommended to refrain from aggressive short positions on the dollar at the moment. TD Securities is still stuck to its forecast of a significant decline in the dollar that will happen next year. However, in the short-term perspective, the US dollar may advance. Global COVID-19 hospitalizations have approached new peaks, while COVID-19 hospitalizations in some European countries returned to 50% from the previous high. These facts are considered as bearish for the greenback. They believe that the new restrictions imposed by the largest European countries will have a negative impact on the region's economy, so the USD exchange rate may grow by 2% in the next month. Experts at the Goldman Sachs also maintain a cautious short-term mood towards the euro due to factors such as new lockdowns in Europe and the expected easing of the ECB's policy next month. "EUR/USD is likely to keep trading within the 1.1720-1.1880 range in the next few weeks", noted FX Strategists at UOB Group. The bullish momentum increased slightly, allowing the pair to approach the upper limit of the specified range. There will be no surprise if the price breaks the 1.1880 level. However, to exit the consolidation phase, the pair will need to close above the key resistance of 1.1920. At this stage, the probability of such a move is low, but it will increase if the euro does not fall below $1.1790 in the next few days. Brexit could be another factor affecting the single currency. Although, the pound sterling will be the first to benefit from positive news on this topic. At the same time, the euro may also advance amid this news. However, a "hard" Brexit can easily push the EUR/USD pair back to 1.1500. As the British newspaper the Sun reported on Tuesday, the United Kingdom and the European Union may reach an agreement on a "divorce" early next week, probably on Tuesday. However, the publication adds that the negotiations may break down due to differences that remain on the key issues. In addition, a number of members of the British Cabinet believe that the quality of the deal proposed by the EU is so low that it may be even worse than a no-deal Brexit. The recent increase in the pound sterling against the US dollar suggests that some traders have already priced in some results of the trade deal. According to the forecast provided by experts at Bloomberg, if London and Brussels fail to reach a trade agreement, the British pound may fall by 5% to $1.25 by the middle of next year. The material has been provided by InstaForex Company - www.instaforex.com |
| Gold slightly declines amid new developments in coronavirus vaccine Posted: 17 Nov 2020 05:49 AM PST
The precious metals market gradually exhibit a downward trend on Tuesday morning. Gold continues to be popular as a "protective" asset, but the situation in the markets has changed: interest in risk has increased, which means that gold has temporarily faded into the background. The optimism of market participants was caused by news about another successful trial of another vaccine against coronavirus infection. Gold futures contracts for December delivery on the electronic trading platform in New York fell by 0.11% or $2.15, which sent it to the price level of $1,885.65 per troy ounce. Support for the precious metal was $1,860.7 per troy ounce, while resistance was located at $1,898 per troy ounce. Silver futures contracts for December delivery also slightly declined by 0.04%, which sent the price at $24.8 per troy ounce. The bulk of the pressure on gold is concentrated in the sector of biotechnological development of the COVID-19 vaccine. Another company, Moderna, announced the successful result of clinical trials of a coronavirus vaccine, the effectiveness of which is close to 94.5%. Thus, the third phase of testing has ended, which means that the vaccine's release to the market remains a matter of time. Of course, investors were encouraged by such news, especially since this is the second vaccine in the last two weeks that is being prepared to enter the broad markets. In this regard, the risk becomes more popular, and the"safe haven", gold, goes by the wayside. However, analysts warn that the rollback of the precious metal will be short-term, since the hype around drugs that protect against coronavirus will end very soon, and fears of a complex epidemiological situation will return to its place. Therefore, the rejection of purchases of precious metals in favor of riskier assets will be temporary. In addition, experts stressed that the use of the vaccine will require a long period of time. It will take at least six months to implement and distribute it. And we are talking only about developed countries, where the whole process can be started faster. The rest of the world will have to wait even longer. Therefore, flashes of enthusiasm are not too dangerous for the market of precious metals, which will continue to be the most reliable assets on the market. Of course, the introduction of a coronavirus vaccine is the best thing that can happen in 2021. At least, hopes that economic growth will recover and combat the effects of the crisis on the background of the pandemic begin earlier and be more effective will obviously increase. However, this will not happen immediately, and for some time politicians and the Central Bank of the world will remain in a panic about the growing number of new cases of coronavirus infection. Thus, one vaccine cannot start the whole process of getting out of a difficult situation. In addition, the US dollar is still under pressure and will decline even more in the near future. This means that gold will have time to catch up and add well more than once. Copper futures contracts for December delivery fell 0.1% which sent the price to $3.2237 per pound. The material has been provided by InstaForex Company - www.instaforex.com |
| Bitcoin very likely to repeat gold's rally in 1970s Posted: 17 Nov 2020 05:16 AM PST The value of the most popular cryptocurrency bitcoin increased by 3% on Tuesday and is steadily approaching the $17,000 mark. The CoinMarketCap portal, which calculates the average price based on the data from more than 20 exchanges, reports that at the moment bitcoin has reached $16,708. The price of the main digital coin on the largest cryptocurrency exchange Binance rose by 2.94% and stopped at $16,701. The last time bitcoin broke through the $17,000 mark was on January 7, 2018. Today, the most popular cryptocurrency accounts for approximately 64.9% of the market.
The continuous growth of bitcoin is easy to explain. Bitcoin no longer responds to political changes in the world. Still, the digital coin is quite sensitive to economic fluctuations. At the same time, the current stock market sentiment, which deteriorated due to a drop in Treasuries bond yields, is beneficial to bitcoin as it is now viewed as a safe haven asset. Some experts believe that the rise in bitcoin was caused by the weakening of the US dollar and the increased value of risk assets such as oil, stocks, and metals. The current uptrend has been going on for more than a month, which is quite a lot compared to previous years. In case of a correctional decline, bitcoin can fall by 20-30% in just a week. Nevertheless, bitcoin is more likely to continue its steady and gradual growth until the end of the year. It is important to note that not only bitcoin, but almost all altcoins have shown an uptrend over the past day. The same is true for all other digital coins from the top 100, as they are also trading in the green zone. In addition, the demand for DeFi is back. Thus, the yearn.finance (YFI) coin grew by 12% per day and again crossed the $20,000 mark. The total cryptocurrency market cap increased by almost $13 billion per day to $475 billion and is now approaching an important psychological level. By the way, until recently, hardly anyone could predict such a stable positive trend in the cryptocurrency market. Last week was rather contradictory for the digital coin market. On the one hand, bitcoin was able to break through and settle above $16,000. On the other hand, most altcoins significantly depreciated. Experts predict glorious prospects for the flagship of virtual currencies in the foreseeable future. So, some analysts argue that by December 2021, the bitcoin rate can reach $318,000 thanks to acquiring the status of digital gold of the 21st century. In support of this forecast, experts draw an analogy between bitcoin and gold in the 1970s when the Bretton Woods system was rejected in 1973. This provoked the transition to the Jamaican monetary system. This event marked the beginning of the decoupling of the US dollar from the gold equivalent. Then the regime of fiat currencies appeared in the form it exists today. Analysts recall the spike in gold prices over the next 50 years and see monetary inflation and the US dollar devaluation as conditions for comparing gold and bitcoin. In 2008, the first cryptocurrency was created in response to the global economic crisis which transformed monetary policy towards zero interest rates. This can also explain the fact that bitcoin increased 555 times in the first bullish cycle between 2011 and 2013. Today's monetary and fiscal policies create preconditions for a collapse in fiat currencies, just as it happened in the 1970s. So, this will likely lead to an increase in demand for gold and its digital equivalent, bitcoin. The material has been provided by InstaForex Company - www.instaforex.com |
| Posted: 17 Nov 2020 04:56 AM PST Further Development
Analyzing the current trading chart of BTC, I found that the tested the median Pitchfork line with the bear divergece on the Stochastic oscillator, which is sign for the potential downside rotation. My advice is to watch for selling opportunities with the downside targets at $16,600 and $15,870 BTC looks overextended and selling opportunities are preferable under this condiiton.... Key Levels: Resistance: $17,000 and $19,500 Support levels: $16,600 and $15,870 The material has been provided by InstaForex Company - www.instaforex.com |
| EUR/USD analysis for November 17 2020 - Potential for the downside rotation towards 1.1840 Posted: 17 Nov 2020 04:25 AM PST BOE's Bailey: QE at a time like this can prevent unwarranted tightening in financial conditions BOE actions are not monetary financing
He sounds a tad more optimistic amid the recent vaccine news, as that may help to steer some of the pressure away from the debate on negative rates for now. But as the UK economy continues to underwhelm and Brexit uncertainty reigns, it may be tough to distract from further easing measures for too long. Further Development
Analyzing the current trading chart of EUR/USD, I found that the EUR/USD tested the median Pitchfork line with the bear divergence on the Stochastic oscillator, which is sign for the potential downside rotation. My advice is to watch for selling opportunities on the rallies with the downside targets at 1,1840 and 1,1815. 1-Day relative strength performance Finviz
Based on the graph above I found that on the top of the list we got Lumber and Cocoa today and on the bottom Ethanol and Nikkei 225 EUR is positive today but the momentum is decreasing... Key Levels: Resistance: 1,1890 Support levels: 1,1840 and 1,1815. The material has been provided by InstaForex Company - www.instaforex.com |
| Analysis of Gold for November 17,.2020 - Contraction on the GOld with potential for the breakout Posted: 17 Nov 2020 04:14 AM PST EU governments reportedly not ready for common virus testing procedures for travel Reuters reports, citing a EU document on the matterThis is a bit of a blow to airlines and the leisure sector as there is said to be divisions among EU states on the use of rapid antigen tests for travel. The lack of a common testing procedure will only serve to draw up more discrepancies on what is actually "safe" to allow travel across Europe, with airlines having been pressing for governments to use alternatives to blanket movement curbs. Ironically, the document was initially labelled as "progress report" but has been renamed because it actually signified a lack of progress instead. Classic.
Further Development
Analyzing the current trading chart of Gold, I found that the Gold is contraction prior to the Retail Saes in US and that there is potential for the news downside wave. 1-Day relative strength performance Finviz
Based on the graph above I found that on the top of the list we got Lumber and Cocoa today and on the bottom Ethanol and Nikkei 225 Key Levels: Resistance: $1,900 Support levels: $1,850 and $1,828. The material has been provided by InstaForex Company - www.instaforex.com |
| Airbnb makes Q3 profit despite pandemic Posted: 17 Nov 2020 03:59 AM PST
Airbnb's revenue fell 18% year-on-year in July-September to $ 1.34 billion. Nonetheless, the company made a net profit of about $ 219 million. This was mainly due to cost cuts. Airbnb has not recorded an annual profit once in its 12-year history and warned that this is also unlikely this year. The company also announced that its co-founder and head Brian Chesky agreed to cut his salary to $ 1 this year. In return, he will receive a bonus in shares worth up to $ 120 million over a 10-year period, provided that the quotes reach certain levels. Chesky promised to send these funds to charity. Airbnb announced an IPO filing in August. The listing could be one of the most notable debuts of 2020 on the American stock exchange. The leading underwriters of the placement will be Morgan Stanley and Goldman Sachs Group Inc. The company plans to list shares on the Nasdaq under the ticker "ABNB". It is also worth noting that Airbnb expects to raise about $ 3 billion for the IPO, and the company's value can be estimated at more than $ 30 billion. The material has been provided by InstaForex Company - www.instaforex.com |
| EUR/USD trading signals for November 17 Posted: 17 Nov 2020 03:47 AM PST DOVISH ECB TO WEIGH ON EURO The Euro is at risk of losing ground in the near term as several members of the European Central Bank signal the provision of additional monetary stimulus in December. From a technical view,
EUR/USD pair continued a weak corrective uptrend movement. Take note that the EUR/USD pair continues to trade within a bullish parallel channel. Therefore, a reversal in the opposite direction can be seen when the price approaches the upper boundaries of the channel which coincides with the 1.190 psychological round mark. EUR/USD also looks at risk of a near-term pullback as buyers are struggling to breach the resistance range at 1.1880 – 1.1900. However, remember that the trend will remain bullish until the price settles below the bullish channel. Trading for a bearish move at this time is irrelevant since there is support from upward trend. Thus, traders are advised to wait until the upward reversal or sign of weakness from buyers below 1.190 in order to to open short positions and aiming for 1.1820 and 1.1780. The material has been provided by InstaForex Company - www.instaforex.com |
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