Forex analysis review |
- May 17, 2021 : GBP/USD Intraday technical analysis and trade recommendations.
- May 17, 2021 : EUR/USD Intraday technical analysis and trade recommendations.
- May 17, 2021 : EUR/USD daily technical review and trade recommendations.
- GOLD Trading Plan for 17 May, 2021
- EUR/USD Hot Forecast for 17 May, 2021
- Trading Signal for Gold XUA/USD, for May 17 - 18, 2021: Key level 1850
- Short-term analysis on EURUSD for May 17, 2021.
- Short-term analysis on Gold for May 17, 2021.
- Expecting EURJPY to start a reversal soon.
- Forex forecast 05/17/2021 on AUD/USD, NZD/USD and Gold from Sebastian Seliga
- GBP to hit new targets. EUR may drop ahead of new rally.
- XRP shows more signs of strength.
- BTC analysis for May 17,.2021 - Third target reached at $43.000 but potential for further downside towards $30.000
- Analysis of Gold for May 17,.2021 - Breakout of the rising channel and potential for testing of $1.832
- Bitcoin volume analysis for May 17, 2021
- EUR/USD analysis for May 17 2021 - Massive resistance at 1.2170 and potential for sellers with target at 1.2080
- Britons cheer end of lockdown that benefits GBP
- Technical Analysis of GBP/USD for May 17, 2021
- Trading plan for Bitcoin for May 17, 2021
- EUR/USD: Bulls seek control, while bears seek victory
- Trading plan for EURUSD for May 17, 2021
- Technical Analysis of EUR/USD for May 17, 2021
- Gold steadily rising, aiming for $1,900 per ounce
- Litecoin forecast for May 17, 2021
- USD/CAD Buying Opportunity?
| May 17, 2021 : GBP/USD Intraday technical analysis and trade recommendations. Posted: 17 May 2021 12:48 PM PDT
Bearish Persistence below 1.3820 favoured bearish decline towards the 1.3600 levels. Bearish breakout below 1.3600 was needed to enhance further bearish decline. However, the GBPUSD pair was contained above the demand level of (1.3660) a few times before a temporary bullish spike could reach the price level of 1.4120. The previous spike above has re-tested the backside of the depicted broken channel which applied significant bearish pressure on the pair. Last week, this turned out to be a bullish trap once the GBPUSD pair returned below 1.3950 again until bullish breakout occurred shortly afterwards. Further bullish advancement was anticipated towards 1.4100 then 1.4150 where the lower limit of the recently-broken channel applied significant bearish pressure. On the other hand, Failure to maintain bearish pressure below 1.3400 is enhancin another bullish movement for retesting of the price level of 1.4225. Conservative traders should be waiting for signs of bearish rejection. If so, quick bearish decline should be anticipated towards 1.4050 then 1.3950 as initial target. The material has been provided by InstaForex Company - www.instaforex.com |
| May 17, 2021 : EUR/USD Intraday technical analysis and trade recommendations. Posted: 17 May 2021 12:39 PM PDT
Recently, finding significant demand around 1.2000, has allowed another bullish movement to pursue towards higher price levels ( 1.2100 - 1.2130 ) where bearish rejection was previously anticipated. Although transient bullish breakout above this zone was temporarily expressed, the pair has failed to maintain bullish movement above 1.2130. Bearish persistence below the price zone of 1.2050-1.2000 was needed to establish a short-term downtrend. However, the price zone around 1.1970 has provided significant bullish rejection so far leading to the current bullish breakout above 1.2050 then 1.2130. Currently, the short term outlook for the EURUSD pair remains bearish. Bullish trades are quite risky. That's why, we should be waiting for signs of bearish rejection like what happened earlier las week. Bearish re-closure below 1.2100 then 1.2050 is needed for more bearish domination. Next bearish targets would be located around 1.2020 then 1.1990. The material has been provided by InstaForex Company - www.instaforex.com |
| May 17, 2021 : EUR/USD daily technical review and trade recommendations. Posted: 17 May 2021 12:36 PM PDT
Another downside movement was expressed towards 1.1990. Breakdown below it was needed to allow one more downside visit towards 1.1840. However, an upside pullback was demonstrated towards 1.2175 (backside of the broken trendline) which provided sufficient bearish pressure resulting in a quick downside movement towards 1.2070. Currently, any upside movement towards 1.2175 should be watched for bearish rejection and a possible valid SELL Entry. If so, another downside movement towards 1.2070 should be anticipated. Further downside movement would be projected towards 1.1990. On the other hand, a breakout above 1.2175 enhances further bullish advancement towards 1.2250 as an initial target The material has been provided by InstaForex Company - www.instaforex.com |
| GOLD Trading Plan for 17 May, 2021 Posted: 17 May 2021 07:54 AM PDT
Gold surrendered a major part of its intraday gains to the highest level since early February and was last seen trading around the $1,846 region, nearly unchanged for the day. A goodish rebound in the US Treasury bond yields turned out to be a key factor that prompted some profit-taking around the non-yielding yellow metal. That said, a combination of factors should help limit any deeper losses amid absent relevant market moving economic releases from the US. Investors seem convinced that the Fed will keep interest rates low for a longer period. This, in turn, continued weighing on the US dollar and extended some support to the dollar-denominated commodity. Apart from this, a generally softer risk tone – amid worries over the continuous surge in new COVID-19 cases in Asia – further acted as a tailwind for traditional safe-haven assets, including gold. Strong resistance seems to have formed at $1,860, where the descending trendline and the Fibonacci 61.8% retracement of the January-March downtrend meets. A daily close above that level could attract buyers and open the door for additional gains toward $1,875 (static level, January 21 high, January 29 high). $1,820 (Fibonacci 50% retracement) could be seen as the initial support ahead of $1,800 (psychological level, 100-day SMA, 20-day SMA). With a convincing drop below the latter, additional losses toward $1,780 (Fibonacci 38.2% retracement) could be witnessed The material has been provided by InstaForex Company - www.instaforex.com |
| EUR/USD Hot Forecast for 17 May, 2021 Posted: 17 May 2021 07:53 AM PDT
EUR/USD closed last week on a strong footing well past 1.2100 the figure mainly on the back of the weakness surrounding the dollar and the strong bounce in yields of the German 10-year Bund.Buyers appear to have regained the upper hand around the shared currency and motivate EUR/USD to keep the buying pressure well and sound near 1.2170 on Monday. EUR/USD starts the week on a mixed note, fading the initial move to highs near 1.2170 while the downside remains limited by the 1.2130/25 band.Similar path is navigating the greenback in spite of the mild gains in yields of the key US 10-year note, which fail to extend the rebound further north of the 1.65%. Still in the bonds' space, yields of the German benchmark 10-year Bund extend the move higher to the -0.10% zone challenging levels last seen in May 2019.Daily studies are bullish and support the action, but last week's close in Doji (although with long tail) strongly overbought weekly stochastic and fading bullish momentum continue to warn. Near-term action is expected to remain biased higher while above important 1.21 support zone , but repeated failure to clear 1.2197 pivots would signal extended sideways mode but with increased downside risk.Loss of 1.2100 handles and trendline support (1.2074) would weaken the near-term structure and add to signals of stall. The material has been provided by InstaForex Company - www.instaforex.com |
| Trading Signal for Gold XUA/USD, for May 17 - 18, 2021: Key level 1850 Posted: 17 May 2021 07:21 AM PDT
Consolidation and daily close above 1850 would indicate the bullish trend. Otherwise, there could be a technical correction for the next few days. The fall in Treasury yields had boosted metals. But the 10-year bond yield is now recovering. It has rebounded after touching 1.60% and is at 1.63%, which could add pressure to Gold, and there could be a drop below 1850. The technical reading of the eagle indicator shows that XAU/USD is reaching extreme overbought levels, and a bearish movement is likely in the next few hours as part of the technical correction. Our recommendation is to sell below 1850, with targets at 1843 and 1825. In case of consolidation below 1843, the drop may be clearer. Support and Resistance Levels for May 17 - 18, 2021 Resistance (3) 1869 Resistance (2) 1862 Resistance (1) 1856 ---------------------------- Support (1) 1849 Support (2) 1836 Support (3) 1832 *********************************************************** Trading tip for GOLD for May 17-18, 2021 Buy above 1.851 (SMA 21), with a Take Profit at 1860 and a Stop Loss bellow 1848. Sell below 1848 (SMA 21) with a Take Profit at 1843 (7/8) and 1832, and a Stop Loss above 1852. The material has been provided by InstaForex Company - www.instaforex.com |
| Short-term analysis on EURUSD for May 17, 2021. Posted: 17 May 2021 06:43 AM PDT EURUSD has started the week on a slight positive note just above Friday's close. The volatility in the market is low but we expect it to rise during the week. EURUSD has already provided us with a bearish warning by the RSI. The bearish divergence in the Daily chart is not to be taken lightly.
EURUSD has the potential to provide a new higher high towards 1.2205. Traders will need to keep a close eye on the RSI. If price makes new highs and the RSI not, instead if the RSI hits the red line resistance and turns back down, then we will have another bearish divergence. This would be a sign of weakness and it would increase chances of a major reversal and pull back. Support is at 1.2050. Breaking below this level would imply more downside to be expected. The material has been provided by InstaForex Company - www.instaforex.com |
| Short-term analysis on Gold for May 17, 2021. Posted: 17 May 2021 06:39 AM PDT Gold price made a higher high today at $1,854.90. Trend remains bullish as price is still inside the bullish short-term channel and price continues making higher highs and higher lows. Gold price is making new highs but the RSI is not following. We have a bearish divergence warning signal.
Red lines - bearish divergence Gold price is showing the first bearish divergence warning signal in the 4 hour chart. Price could pull back towards the lower channel boundary around $1,820. Gold price is vulnerable to a pull back if not a bigger correction. So far there is no confirmation of such a reversal only warning signs. Gold bulls need to be cautious at current levels as the upside momentum is weakening. Traders need to protect their profits by raising stops. The material has been provided by InstaForex Company - www.instaforex.com |
| Expecting EURJPY to start a reversal soon. Posted: 17 May 2021 06:34 AM PDT EURJPY is trading around 132 level inside an upward sloping wedge pattern. As we mentioned in a previous post, the RSI has provided us with a bearish divergence warning. I expect prices to roll over towards 131 at least during the coming days.
Red lines- bearish divergence EURJPY is still in a bullish trend and still inside the wedge pattern. At current price levels I prefer to be neutral if not bearish. My view is that EURJPY will weaken soon and we will see at least a pull back towards the 131 level. If support by the wedge pattern is broken, then traders should expect a bigger decline maybe towards 128. The material has been provided by InstaForex Company - www.instaforex.com |
| Forex forecast 05/17/2021 on AUD/USD, NZD/USD and Gold from Sebastian Seliga Posted: 17 May 2021 06:30 AM PDT Let's take a look at the technical picture of AUD/USD, NZD/USD and Gold at the daily time frame chart. The material has been provided by InstaForex Company - www.instaforex.com |
| GBP to hit new targets. EUR may drop ahead of new rally. Posted: 17 May 2021 06:23 AM PDT
Market participants have come to a conclusion that the US dollar is unable to reach new highs. Sellers opened positions below 90.40. Thus, the US dollar index is entering the downward channel. On Monday, traders will pay attention to the speeches provided by the Fed's representatives. They are likely to say that a surge in the US inflation logged in April is a short-lived phenomenon. The fact that the regulator is ignoring the current inflationary risks may intensify pressure on the US dollar. Traders are also focused on the recent FOMC meeting results. They are trying to understand the attitude of financial officials towards the inflationary risks. Most investors are preoccupied by the possible changes in the Fed's monetary policy. However, they are almost sure that Jerome Powell will hardly change the stance. At the same time, analysts suppose that the US dollar index will continue losing in value. Now, it is approaching the key support level of 90.00. If it continues falling, it may reach such monthly lows as 90.0-89.90. Since the US dollar is trading below 91.80, the forecast remains negative.
The macroeconomic data of this week may raise the volatility of both the euro and the pound sterling. According to the preliminary estimates, the PMI data for May published in both countries will disclose quite positive figures, especially in the services sectors. At the same time, in Europe, the vaccination pace is becoming faster, thus supporting the euro. The euro/dollar pair is confidently hovering above the level of 1.2100. In the near future, it is likely to go on gaining in value If it consolidates above 1.2150, bulls will continue prevailing in the market. "A break above 1.2152 needed to reassert an upward bias for strength back to 1.2182/85, then what we expect to be tougher resistance at the 78.6% retracement of the Q1 fall and February high at 1.2212/43, where we will look for a fresh cap. Should strength directly extend, this can expose the top of the broader range and YTD high at 1.2325/1.2350," analysts at Credit Suisse think. The current economic situation is also boosting the euro. However, a rise above 1.2200 may meet resistance from the ECB. Economists at Westpac suppose that the regulator may push the price lower. If the pair fails to consolidate at 1.2150, sellers will push it towards 1.2000 or even lower. If the price breaks the mentioned level, it may slide to the 200 EMA located at 1.1957 or even deeper. However, most analysts believe that the euro will advance above 1.2200. Before the euro/dollar pair begins a new rally, it may decline to 1.2110.
Further lifting of lockdown measures in the UK is supporting the pound sterling that is rising against the US dollar. Since the economic reopening is boosting the indicator of the future economic situation, the Bank of England may soon start withdrawing its stimulus program. That is why today, traders are focused on speeches provided by the regulator's officials. If the regulator drops a hint about a possible switch to a tighter policy, the British pound will receive a new upward impulse. The pound/dollar pair will test the local resistance level of 1.4160.Otherwise, the pound sterling may resume falling. A break of the support level of 1.4080 will be the first sign of a downtrend. In general, this week, the pound sterling is expected to be volatile. The UK will publish a bulk of macroeconomic reports. The first part of the information will be disclosed on Tuesday. The UK will report on its labor market situation. From the technical point of view, the pound/dollar pair may jump to 1.4235. Buyers should focus on the level of 1.4055.  |
| XRP shows more signs of strength. Posted: 17 May 2021 06:14 AM PDT Despite the negative sentiment among most cryptocurrencies at the start of the week, XPR is showing signs of strength as price respects support and moves higher towards recent highs. XRP/USD has been differentiated from Bitcoin that is showing major topping signs.
Blue lines- support trend lines Green rectangle- major horizontal support area XRP/USD made a high yesterday just above $1.60 while today price pulled back towards $1.30. The key support at $1.20 remains intact. Price has now moved above the short-term resistance trend line once again and has potential of reaching the upper resistance trend line at $1.65. As we explained in our last post, a break above $1.61 would be a bullish sign. XRP/USD shows that it is not so much affected by the negativity in other cryptocurrencies and might start a big upward move soon, if resistance is broken. We remind that bulls do not want to see price break below $1.20 as this will lead to a deeper decline towards $1 and lower. The material has been provided by InstaForex Company - www.instaforex.com |
| Posted: 17 May 2021 05:21 AM PDT Technical analysis:
BTC has been trading downwards as I expected. The price reached my third downside target at the price of $43.000. Trading recommendation: Anyway, my advice is still to watch for selling opportunities on the rallies with the downside target at $30.100. Stochastic oscillator is in the oversold zone but there is no fresh bull cross, which is still bearish tone. Resistance is set at $47.000 The material has been provided by InstaForex Company - www.instaforex.com |
| Posted: 17 May 2021 05:14 AM PDT Technical analysis:
Gold has been trading upwards this morning but I found the breakout of the slope pattern in the background, which is bearish sign. Trading recommendation: Watch for potential selling opportunities on the rallies with the downside target at the price of $1844 and $1.832. The mean from the lat week is set at $1.835 Stochastic oscillator is showing overbought condition and the potential for the downside rotation. The material has been provided by InstaForex Company - www.instaforex.com |
| Bitcoin volume analysis for May 17, 2021 Posted: 17 May 2021 04:58 AM PDT
1.How to make money on cryptocurrencies? 2. Analysis of Bitcoin futures volume on Chicago Mercantile Exchange 3. Trend analysis. 4. Japanese candlestick analysis. 5. Conclusion. Statistics. 1. How to make money on cryptocurrencies? Risk management is very important if you want to become a professional trader. In trading, everything starts with risks. It does not matter how much a trader makes in a year. The ratio of profit to maximum drawdown comes first. If a trader has earned 100% per annum, this is a good result. At the same time, if the drawdown has reached 90%, such statistics are unlikely to attract investors. A good profit-to-risk ratio is considered to be 2 to 1. For example, if the annual return was 20% per annum with a risk of 10%, this is pretty good. Such statistics can be attractive to investors. In order to achieve such results, the risk management algorithm must price in all possible risks. In the previous article, we considered the risk per trade. Further, we will discuss other risks. Day trading risk. This risk determines how much you can lose in one trading day. This risk should be small, for example 3-5%. What is the point? Sometimes there are exceptional events in the world such as terrorist attacks, floods, man-made disasters, etc. This can make the market highly volatile and, accordingly, lead to losses. Therefore, on such days, it is better to close positions at a 5% loss than to continue trading and suffer huge losses. When reaching this maximum risk level, it is worth stopping trading. This secure approach will protect your deposit and open up opportunities for large capital management. 2. Analysis of Bitcoin futures volume on Chicago Mercantile Exchange. Apparently, the market has entered a downward correction. Let's consider the levels of the maximum traded volumes based on the Chicago Mercantile Exchange. These indicators show the activity of major market players. 13.05.21 - The level of the maximum traded volume (POC - Point Of Control) - 50040 14.05.21 - The level of the maximum traded volume (POC - Point Of Control) - 49230 The POC has moved down, the price is below the maximum traded volume. The market is moving in a downward trend. In such a situation, according to the volume analysis, you can open short positions. 3. Trend analysis. The second step in this analysis is to determine the short-, medium-, and long-term trend. It is worth opening trades when the direction of all three trends coincides. Trend analysis is carried out with the help of an exponential moving average: EMA 1152 (blue) shows the long-term trend on the H1 chart, which is similar to EMA 48 on the D chart; EMA 288 (red) shows the medium-term trend on the H1 chart, which is similar to EMA 48 on the H4 chart; EMA 48 (black) shows the short-term trend on the H1 chart.
The price is below all three EMAs. The trends are downward. Therefore, according to the trend analysis, it is possible to open short positions today. 4. Japanese candlestick analysis. Market analysis with the help of Japanese candlesticks is the third step in this trading system. Let's analyze yesterday's daily candlestick:
The candlestick has closed downwards, the candlestick is black. The low is below the low of the previous candlestick. The candlestick pattern matches the trend. It has a long body and small shadows. According to the Japanese candlestick analysis, it is worth considering sell orders. 5. Conclusion. Statistics. Volume analysis - SELL. Long-term trend - SELL. Medium-term trend - SELL. Short-term trend - SELL. Japanese candlestick analysis - SELL. Conclusion: On May 17, 2021, you can open short positions on bitcoin as different types of analysis provide the same forecasts. To analyze the effectiveness of this trading approach, you should use statistics. Based on these forecasts, we track the data on completed transactions and open new deals in a separate account. Transactions are made on four instruments: Bitcoin, Ethereum, Litecoin, and BCHUSD. They are analyzed in the same way. Gains for three months amounted to 9.1%, with a maximum drawdown of 4.88% Statement:
We continue to keep the short position on bitcoin open. The stop-loss order has been moved beyond the extreme point of the previous session. Part of the profit has already been locked in. The risk is not more than 1% per trade, this approach is conservative. According to this system, a stop-loss order is placed beyond the daily low or high, depending on the direction of the trade. We do not set take-profit orders, enabling the price to grow without limits. We follow the trade, moving SL beyond the extreme points of the future sessions. Since trading is carried out on the daily charts, this recommendation remains relevant throughout the day. Trade along the trend and you will make a profit! The material has been provided by InstaForex Company - www.instaforex.com |
| Posted: 17 May 2021 04:52 AM PDT Technical analysis:
EUR/USD has been trading upwards this morning but on the low volume, which is sign of weak buying and potential for the sellers. Trading recommendation: Watch for potential selling opportunities with the downside targets at 1.2133, 1.2110 and 1.2080. Massive resistance at the price of 1.2170 and good zone for sellers to join... Stochastic oscillator is showing overbought condition and the potential for the downside rotation. The material has been provided by InstaForex Company - www.instaforex.com |
| Britons cheer end of lockdown that benefits GBP Posted: 17 May 2021 04:46 AM PDT
The UK is ready to go back to normal life as the authorities are lifting social restrictions. Starting from May 17, England, Wales, and the most part of Scotland are eventually reopening businesses and lifting a ban on travelling abroad. People are allowed to assemble in closed premises, dine out in restaurants, stay in hotels, visit museums, theatres, cinemas, children's playgrounds, concert halls, and stadiums. The precondition for such gatherings is that no more than 6 people or 2 households can stay inside a premise. Besides, a group of up to 30 people can assemble in the open air. British Prime Minister Boris Johnson announced that some precautionary measures are needed. So, the Britons are obliged to have coronavirus tests twice a week. Citizens of England and Scotland are given the opportunity to order tests free of charge which will display results in 30 minutes. At the same time, in Wales and Northern Ireland this service will be available to particular groups of citizens, for example, to those who are not involved in teleworking. In fact, investors are still worried about a new more contagious coronavirus strain designated as B.1.617.2. Nevertheless, the market cheers a revival of the social life in the Kingdom that benefits sterling-denominated assets and the British currency itself. The pound sterling is holding the upper hand over the US dollar. The sterling has been gaining ground for two weeks in a row. Today GBP/USD is trading firmly at near 1.4099 that is below support of the upward channel. In the early London session, the currency pair was trading at about 1.4097.
Back to the fundamental background, Brexit and three lockdown entailed a severe downturn in the British economy that dealt a blow to the labor market. As soon as British businesses began hiring new employees, it became evident that people were in no hurry to employ in the hospitality sector and in retail sales, opting for more reliable vacancies. Interestingly, according to the survey of Adzuna recruitment website, one applicant can choose from 10 vacancies in some British towns. On the other hand, unexpected vacancies cannot be filled by foreign applicants as they have minor interest in employment in the UK. Referring to the Bureau of National Statistics, the number of foreign citizens working in the UK dropped 4% in the last 3 months of 2020 from the same period in 2019. The material has been provided by InstaForex Company - www.instaforex.com |
| Technical Analysis of GBP/USD for May 17, 2021 Posted: 17 May 2021 04:07 AM PDT
The trend of GBP/USD pair movement was controversial as it took place in the uptrend channel. Due to the previous events, the price is still set between the levels of 1.4025 and 1.4166, so it is recommended to be careful while making deals in these levels because the prices of 1.4025 and 1.4000 are representing the resistance and support respectively. Therefore, it is necessary to wait till the downtrend channel is passed through. Then the market will probably show the signs of a bearish market. In other words, buy deals are recommended above the price of 1.4025 with the first target at the level of 1.4166. From this point, the pair is likely to begin an ascending movement to the price of 1.4166 with a view to test the daily resistance at 1.4217. However, if the pair fails to pass through the level of 1.4217, the market will indicate a bearish opportunity below the strong resistance level of 1.4217. In this regard, sell deals are recommended lower than the 1.4217 level with the first target at 1.4102. It is possible that the pair will turn downwards continuing the development of the bearish trend to the level 1.3886. On the other hand, stop loss has always been in consideration thus it will be useful to set it above the last double top at the level of 1.0910 (notice that the major resistance today has set at 1.4303). The material has been provided by InstaForex Company - www.instaforex.com |
| Trading plan for Bitcoin for May 17, 2021 Posted: 17 May 2021 03:54 AM PDT
Technical outlook: Bitcoin has achieved its projected target towards $43,000 levels as we have been discussing since last several weeks. Prices have bounced off from just above $42,000 levels, falling short marginally from testing $41,500 levels, which is fibonacci 0.618 retracement of the entire rally between $3,850 and $65,000 levels respectively. Bitcoin has raised through $50,400 levels at this point in writing and might continue to print higher highs and higher lows from here. It is quite possible that the corrective drop is now complete around $42,000 and Bitcoin might resume higher towards $65,000 mark from here. Most traders might have already booked profits around $43,000 mark as suggested earlier. Bitcoin now has immediate interim support around $41,000 levels, while resistance is seen towards $60,000 levels respectively. A break above $60,000 from here will confirm that the trend has reversed and that bulls are back in control. The crypto turns a buy on dips from here. Trading plan: Remain long now, add more @ 42,000-45,000 zone, stop @ 40,000, target above @ 65,000. Good luck! The material has been provided by InstaForex Company - www.instaforex.com |
| EUR/USD: Bulls seek control, while bears seek victory Posted: 17 May 2021 03:45 AM PDT
The beginning of this week turned out to be contradictory for the US currency. It still wants to dominate, but it may not have the strength to fight. Now, experts do not rule out that the Euro currency will take control and surpass the US dollar. Last Friday, the EUR/USD pair showed bullish sentiments, which continued at the start of Monday, May 17. Earlier, the main currency pair hovered around the range of 1.2070-1.2080, and then reached the new resistance level of 1.2150. On Monday morning, the EUR/USD pair was dominated by "bearish" trends, and the indicator was near the level of 1.2138.
Experts do not rule out a successful bearish attack throughout the day. The potential targets of which are the levels of 1.2081 and 1.2061. The "bearish" scenario is likely to be cancelled in case of a breakdown of the strong resistance level of 1.2150, which will open the way to the levels of 1.2170, 1.2205 and higher. Analysts pay attention to the strengthening of the "bullish" sentiment on the European currency in the EUR/USD pair. At the end of last week, many traders increased their positions on the euro's growth to the maximum. Experts believe that the continuation of this trend contributes to the rise of the EUR/USD pair. In relation to the US currency, experts note the predominance of bearish sentiment over the bullish one. This trend is typical for long-term market participants. In the case of an active increase in purchases and sales of the US dollar by large players, there will be a high probability that the national currency will rise. However, the further strategy of the Fed may be a hindrance for the dollar's growth. It can be recalled that the regulator plans to buy more long securities and less short ones under the current program of quantitative easing (QE). Experts are confident that such a position will have an extremely negative impact on the dynamics of the USD. Earlier, the Fed adjusted its previous plans for the acquisition of Treasury state bonds, increasing by 3 percentage points (p.p.) – the purchase of securities for a period of 7 to 30 years. The monthly pace of purchases remained at the same level (about $80 billion). The new plan is valid from May 14 to June 11, 2021, but may be revised in the future. In the case of a long-term reduction of the short government debt by the US Treasury due to the large-scale placement of the long one, the pressure on long yields will increase. Experts highlighted that this will have a negative impact on the US currency. As a result, the specified currency may decline even more. The material has been provided by InstaForex Company - www.instaforex.com |
| Trading plan for EURUSD for May 17, 2021 Posted: 17 May 2021 03:37 AM PDT
Technical outlook: EURUSD has one again rallied through 1.2160/65 zone, looking to re-test the previous high at 1.2181 levels registered on May 11, 2021. It would be interesting to see if bears are able to hold below 1.2181 levels going forward. The resistance zone is seen between 1.2185 and 1.2210 levels respectively, which is also fibonacci 0.786 retracement of the earlier drop between 1.2350 and 1.1704 levels respectively. EURUSD is seen to be trading around 1.2164 levels at this point in writing and might be looking to test the recent swing highs around 1.2181/85 zone. A failure to break above 1.2181 would be considered extremely favorable for bears and could attract a sharp reversal. Immediate resistance is seen at 1.2242, while support comes in around 1.1986 levels respectively. A break below 1.1986 is required to confirm that bears are back in control. EURUSD larger trend might have turned lower since 1.2350 highs registered on January 06, 2021. A minimum drop to 1.1300 levels remain possible, if not further. Bears are expected to be back soon and drag prices below 1.1986 to confirm a reversal. Only a break above 1.2350 will change the structure. Trading plan: Remain short, stop above 1.2350, target below @ 1.1300 Good luck! The material has been provided by InstaForex Company - www.instaforex.com |
| Technical Analysis of EUR/USD for May 17, 2021 Posted: 17 May 2021 03:26 AM PDT
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| Gold steadily rising, aiming for $1,900 per ounce Posted: 17 May 2021 02:48 AM PDT On Monday, the price of gold significantly increased following a decline in the US Treasuries. At the time of writing this article, gold futures for June on the New York Stock Exchange Comex rose by 0.88% to $1854.2 per troy ounce. At the same time, the silver contracts for July soared by 1.49% to $27,773 per ounce.
Since Monday morning, the yield on ten-year government bonds has slipped to 1.62% from 1.63% in the previous session and from the previous local high of 1.69%. Usually, gold advances amid the fall in the US Treasury yields. Besides, the US dollar is weakening due to a drop in the bond market which is bullish for gold. Thus, a dropping dollar makes gold more attractive for holders. The reason for the decline in government bond yields was fresh macro statistics from the United States published the day before. According to the released data, in the previous month, retail sales in the country did not change from March. Analysts had expected a 1% rise. However, the current situation in the precious metals market has been quite predictable. So, at the end of last week, analysts said that in the short term, gold prices could exceed $1,850 per ounce, a critical level for gold's further rally. The past week has been a period of increasing volatility in the gold market. Bulls took the upper hand amid an increase in inflationary pressures and a return to economic uncertainty. Retail investors are deeply concerned about inflation woes. Today commodity traders are trying to figure out whether the US Federal Reserve will raise interest rates earlier than expected due to rising inflation. Investors hope that, despite the increase in inflation, the Fed will continue to stick to its dovish approach. If so, gold will only advance higher. Gold may also edge up amid the growing geopolitical tensions in the Middle East and the aggravation of the conflict between Israel and the Palestinians in the Gaza Strip. Some analysts predict a jump in gold eventually to $1,900 per ounce. Then, it is likely to remain at this level during the year before a new uptrend. The main driver for its rally is the use of gold by investors as a hedge against inflation. The material has been provided by InstaForex Company - www.instaforex.com |
| Litecoin forecast for May 17, 2021 Posted: 17 May 2021 02:11 AM PDT
1. Volume analysis of LTC/USD from Binance 2. Long-term trend analysis 3. Mid-term trend analysis 4. Short-term trend analysis 5. Japanese candlestick analysis 6. Conclusion 7. Statistics 1. Volume analysis of LTC/USD from Binance The analysis is based on the traded volume data from the Binance exchange on the daily chart. The analysis is carried out based on the footprint-profile theory. According to the theory, the movement of the level of the highest traded volume intraday can indicate the likely direction of the trend. The highest trade volume is the level with the largest number of transactions carried out. That is, it is the level of major market players. Accordingly, if the highest traded volume goes up, it indicates an upward trend. Otherwise, if the level goes down, it indicates a downward trend. Chaotic movements signal that the market is flat. 15.05.21 – the level of the highest traded volume (POC – PointOfControl) – 311 16.05.21 – the level of the highest traded volume (POC – PointOfControl) – 299 The POC has moved down. The price is below the POC. The market is moving in a downward trend. 2. Long-term trend analysis A trend is your friend. Many traders know this saying but do not know how to use it. The answer is simple: to trade only with the trend. Thus, your trades will be more profitable and less risky. According to the classic Dow theory, there are three main trends: long-term medium-term short-term These trends should be analyzed before you enter the market. Now, let's take a look at them. The long-term trend is the daily trend. In this case, trades are conducted in the daily time frame and are held for several days. The analysis of the daily trend is made with the help of the 48-period exponential moving average. If the daily candlestick closes above EMA 48, it will indicate the upward trend. You should enter long positions. Otherwise, if the daily candlestick closes below EMA 48, then it is the downward trend and you should enter short positions.
The price is above EMA 48. It is an upward long-term trend. You should consider entering long positions. 3. Mid-term trend analysis The mid-term trend is the trend on the 4-hour chart (H4). In this case, we will also turn to EMA 48. If the candlestick closes above EMA 48 on the H4 chart, it will indicate the upward trend. Thus, you should enter long positions. Otherwise, if the candlestick closes below EMA 48 on the H4 chart, it will indicate the downward trend. Consequently, you should enter short positions.
The price is below EMA 48. It is a downward mid-term trend. You should sell the instrument. 4. Short-term trend analysis A short-term trend is the trend in the H1 time frame. Moreover, it can show an entry point into the market. We turn to EMA 48 again. If the candlestick closes above EMA 48 on the H1 chart, it will indicate the upward trend. Thus, you should enter long positions. Alternatively, if the candlestick closes below EMA 48, it will indicate the downward trend. Consequently, you should enter short positions.
The price is below EMA 48. It is a short-term downward trend. You can enter short positions. The long-term trend, the mid-term trend, and the short-term trend are not in line. 5. Japanese candlestick analysis A classic Japanese candlestick analysis is applied to the daily time frame. The daily candlestick is analyzed.
The black daily candlestick has closed downward. Its low is below the previous candlestick's low. It is a Trend candlestick pattern with a long body and small shadows. Based on Japanese candlestick analysis, you should enter sell positions. 6. Conclusion
Conclusion: You can buy and sell LTC/USD on May 17, 2021, since various analyses provide different forecasts. 7. Statistics To analyze how effective this approach is, the data on completed transactions is tracked. The forecast is made for four instruments: Bitcoin, Ethereum, Litecoin, BCH/USD. 3-months gains: 9.1%. Drawdown: 4.88%. Statement:
I do not open new trades in Litecoin due to market uncertainty. The risk per trade is 1% of a deposit. A Stop Loss for new trades is placed beyond the daily extreme points. We do not set a Take Profit because we will continue to move the Stop Loss above the extreme points of the upcoming sessions. Since trading is carried out on daily charts, this recommendation is relevant throughout the day. Trade with the trend and you will generate profits! The material has been provided by InstaForex Company - www.instaforex.com |
| Posted: 17 May 2021 01:26 AM PDT
USD/CAD moves sideways between 1.2173 and 1.2068 levels. An upside breakout from this range could signal further growth, while a downside breakout may indicate a deeper decline. Jumping above the downtrend line signaled that the pair could develop a swing higher. A new upwards movement will be confirmed by a breakout and stabilization above the 1.2173 level. On the other hand, dropping below 1.2068 static support, the downside obstacle could indicate a potential decline towards the 1.2000 psychological level. Trading Conclusion!Increasing and passing above 1.2173 could really signal more gains towards the 1.2300 psychological level. The material has been provided by InstaForex Company - www.instaforex.com |
During April, the ongoing downside movement ( on the left side of the chart ) came to an end. The price levels around 1.1700 provided Significant BUYING Pressure. This initiated the recent uptrend towards 1.2150.
on the 4-hour chart.
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