Forex analysis review |
- Overview of the GBP/USD pair. June 2. Is the UK on the verge of a third "wave" of COVID?
- Overview of the EUR/USD pair. June 2. Nothing changed in the balance of power between the euro and the US dollar.
- Analytics and trading signals for beginners. How to trade EUR/USD on June 2. Analysis of Tuesday. Getting ready for Wednesday
- Bitcoin: the main reason for the collapse and the chances of recovery
- Wave analysis of EUR/USD for June 1. Eurozone inflation accelerates, euro rises
- Cryptocurrency market analysis on June 1, 2021
- EUR/USD. Euro rises again: 23rd figure is on the horizon
- Analysis for GBP/USD on June 1
- Trading Signal for BTC/USD (Bitcoin) for June 01 - 02, 2021: Buy above $34,400, Symmetrical triangle
- Technical analysis of Bitcoin
- Trading Signal for #INDU (Dow Jones 30) for June 01 - 02, 2021: Sell below 34,750
- Trading Signal for EUR/USD for June 01 - 02, 2021: Key Level 1.2207
- ETH rushes to $3,000, Ripple once again defeats the SEC, but the market is waiting for the BTC reaction: analysis and forecasts
- Ichimoku cloud indcator analysis on Ethereum
- XRP/USD short-term analysis and expectations.
- EURUSD trade recommendation and analysis for June 1, 2021.
- Technical analysis on Gold for June 1, 2021.
- Weekly USDJPY chart analysis.
- BTC analysis for June 01,.2021 - Completion of the ABC upside correction and potentia lfor downside movement
- Analysis of Gold for June 1,.2021 - Potential for the downside swing and test of $1.855
- EUR/USD analysis for June 01 2021 - Potential for the drop towards 1.2135
- Trading idea for GBP/USD
- Forecast for Litecoin on June 1, 2021
- US stocks slip ahead of May employment report
- Technical analysis and recommendations for EUR/USD and GBP/USD on June 1, 2021
| Overview of the GBP/USD pair. June 2. Is the UK on the verge of a third "wave" of COVID? Posted: 01 Jun 2021 07:11 PM PDT 4-hour timeframe
Technical details: Higher linear regression channel: direction - upward. Lower linear regression channel: direction - upward. Moving average (20; smoothed) - sideways. CCI: -34.5888 The British pound continues to ride on a "swing." If on Monday the pound/dollar pair rose by 50-60 points, on Tuesday it managed to fall by 80. Thus, the nature of the pair's movement does not change at all over time. The quotes have spent the last two weeks in a side-channel with a width of about 120 points while continuing to be located near their 3-year highs. The bulls did not experience any discomfort. And, in principle, it is quite rare when the pair is flat while trying to complete an upward trend. Hence, we conclude that the upward trend is far from over. Therefore, traders have the right to count on the further strengthening of the British currency, although there are much less visible reasons for this than for strengthening the dollar. In the article on the euro/dollar, we listed several global reasons why it is the European currency that will continue to rise in price and not the dollar. The exact reasons work for the pound. Another reason in the form of a "speculative factor" was added to them. Thus, there are three global reasons for the further growth of the pound and none for the growth of the dollar. Macroeconomic statistics from the UK and the entire fundamental background from the UK continue to be ignored. And the pound itself is growing by 50-60 percent since the money supply in the United States is inflating before our eyes, not because market participants actively buy it. The COT reports, which we review in our daily articles, clearly show that the big players are not actively buying the pound. And they clearly could not provide it with an increase of 2,800 points over the past 15 months. Meanwhile, in the UK, vaccination of the population continues at a high rate, and according to the Johns Hopkins website, 65 million vaccinations against the "coronavirus" have already been made. However, researchers and doctors urge not to rush with lifting all remaining quarantine restrictions, which is scheduled for June 21, according to the 4-step plan for getting out of quarantine from Boris Johnson. Health officials draw the government's attention to the "Indian" strain of COVID that continues to spread throughout the country. The number of cases of the disease is growing again. Scientists note that the "Indian" strain is more contagious than the "British" one and more resistant to vaccines. Even those people who have already received one dose of the vaccine are not protected. Thus, doctors urge to speed up the population's vaccination program and not rush with the introduction of the 4th stage of lifting the quarantine. The British Medical Association calls on Boris Johnson to make decisions about easing the quarantine based on data, not dates. According to Chaand Nagpaul, chairman of the British Medical Association, the premature lifting of all restrictions can lead to a new infection surge. It is reported that the "Indian" strain of "coronavirus" has already spread throughout England. It was previously found only in Bolton or Blackburn. Now cases of the disease have appeared even in the most remote areas. Against this background, it should be recalled that just recently, the former chief adviser to Boris Johnson, Dominic Cummings, made a sharp criticism of the entire government during the pandemic. According to him, the British government has shown itself to be completely incompetent and unable to solve important issues in the face of a serious crisis and pandemic. Cummings blamed the entire cabinet and the Prime Minister himself for the fact that the virus had spread across the UK and infected huge numbers of people, and the national health system was not prepared for such a turn of events. It should also be recalled that Boris Johnson and his actions are now under the close attention of the press and the public. The latest stories about the incomprehensible financing of the renovation of apartments in Downing Street and a Christmas holiday in a villa on a private island worth 15 thousand pounds have attracted attention to Boris Johnson. He recently married for the fourth time. These stories are now being dealt with by the relevant committees of the British Parliament. Thus, if the quarantine is lifted, as planned, on June 21, and in a few weeks Britain will be overwhelmed by a new "wave" of the pandemic, Johnson may not be forgiven. Everyone still remembers the phrase that Boris Johnson allegedly said last summer. He would rather see mountains of corpses than enter a new "lockdown." Whether or not Johnson said this phrase is no longer important. This information is firmly embedded in the minds and is now firmly associated with the British prime minister's name. Fortunately for the pound, all this information does not make any difference to its exchange rate. Of course, if the UK runs into the third "wave" of the pandemic, it will be very bad, and the rate hike next year can be forgotten. However, as we said in the first paragraph, the important factors now are entirely different. The "Scottish question," the "Northern Ireland problem," disagreements with the European Union, and the lack of an agreement with the EU on the services sector: all these topics now do not put any pressure on the British pound, which in the long term continues to grow calmly in tandem with the dollar, whose economy continues to recover with giant steps, and has no geopolitical problems. The pound/dollar pair can sometimes even be fixed below the moving average, but in most cases, then the upward movement is restored.
The average volatility of the GBP/USD pair is currently 79 points per day. For the pound/dollar pair, this value is "average." On Wednesday, June 2, we expect movement within the channel, limited by the levels of 1.4077 and 1.4235. The reversal of the Heiken Ashi indicator back to the top may signal a new round of upward movement within the new "swing." Nearest support levels: S1 – 1.4160 S2 – 1.4130 S3 – 1.4099 Nearest resistance levels: R1 – 1.4191 R2 – 1.4221 R3 – 1.4252 Trading recommendations: The GBP/USD pair has started a new round of downward movement on the 4-hour timeframe. Thus, today it is recommended to open new buy orders with targets of 1.4221, 1.4252, and 1.4282 in the event of a price rebound from the moving average. Sell orders should be opened if the price is fixed below the moving average line with targets of 1.4130 and 1.4099. The pound sterling now also continues to move in the flat. The material has been provided by InstaForex Company - www.instaforex.com |
| Posted: 01 Jun 2021 07:11 PM PDT 4-hour timeframe
Technical details: Higher linear regression channel: direction - upward. Lower linear regression channel: direction - upward. Moving average (20; smoothed) - upward. CCI: 73.0524 On Tuesday, June 1, the EUR/USD currency pair again traded very calmly. Recall that on Monday, the pair's volatility was about 50 points, but then there was at least some explanation: there were no macroeconomic statistics and other events on this day. But on Tuesday, there were statistics. However, this did not help traders to trade more actively. At the time of publication of all statistics in the euro area, including important reports, the pair's volatility was 29 points. It would have been about the same on Monday, but then in the US trading session, the pair still "woke up" and passed an additional 25 points up. Thus, we once again draw traders' attention to the fact that there is no particular reaction even to relatively important reports at this time. This weekend, we said that out of all the scattering of macroeconomic reports and fundamental events of this week, at least a couple of traders reacted. In practice, this is what happens. On Tuesday, on a fairly strong report on inflation in the Eurozone, quotes passed about 25 points in an hour. Although the European currency is traditionally a low-volatility currency, 50 points per day are minimal. In principle, the volatility illustration below shows how much this indicator has sunk recently. We continue to draw traders' attention to the most critical factors that matter now for the euro/dollar pair. It is important to understand the whole picture of things not to rush and panic and not get losses. First, global fundamentals remain on the side of the European currency. Even if this currency does not show growth every day, this does not mean that the US dollar has a chance of serious strengthening. We have repeatedly said that the main factor in the rise in the price of the euro currency in the last 15 months is a strong increase in the money supply in the United States, thanks to large stimulus packages and the Fed's actions. Given the fact that the Fed is not going to curtail the quantitative stimulus program yet, and the US Congress will now try to adopt a budget for the 2022 fiscal year, which implies an increase in spending to $ 6 trillion, it is hardly worth talking about the possible end of the printing press in the US. Most likely, the money supply will continue to inflate further, and the fall of the US currency will come with it. It should also be recalled that the United States benefits from a "cheap" dollar, and the European Union does not benefit from an expensive euro. Secondly, the state of the economy of the United States or the European Union, and, consequently, all macroeconomic indicators and reports are not particularly important now. Macroeconomic data can only have a minimal impact on a particular intraday currency. No more than that. At this time, the US economy feels much better than the European one, so it would be more logical to observe the growth of the US dollar and not the euro currency. But since increasing the dollar supply in the United States is much stronger, macroeconomic factors are simply in the shadow. We can't even say that they are not taken into account by the market. Because now it's not even these same market participants who "rule the ball." Central banks and governments are now running the show, feeding their economies with liquidity as part of various stimulus programs. Simply put, they print money and pour it into the economy through multiple mechanisms. In the European Union, they do the same thing as in the United States. For example, for the PEPP program. The only difference is that they pour 2 trillion euros into the economy in the European Union and abroad – 4. In the European Union, they adopt a budget of 2 trillion euros, and in the United States – 6. Thus, the factor of the state of the economy of the EU and the US is not particularly important now. Third, we have already said that the euro/dollar pair could change the global trend to an upward one in 2017. In 2017, the European currency reached a minimum point in a pair with the US dollar around the level of 1.03, thus reaching almost parity. However, if you look at the movements in the years following that moment, the European currency has not reached the very top point of these 4.5 years. And the whole new global upward trend can take from 6 to 12 years. At least another couple of years, the euro has to show strengthening in a pair with the US currency. Therefore, we are waiting for at least an update of 3-year highs and then 6-year highs. Fourth, there are no prerequisites for changing at least one of the global factors listed above. Money in the United States continues to be printed and poured into the economy, amounting to trillions. Washington does not want China to approach it in economic terms, so it will do everything to ensure that the economy continues to accelerate. And inflation, the national debt, and the depreciation of the US currency – this is the second question. The global technical trend is unlikely to end with the total growth of the euro currency by only 2,200 points. It is minimal for global trends. And macroeconomic factors now really play a minimal role in determining the movement of the pair.
The volatility of the euro/dollar currency pair as of June 2 is 57 points and is characterized as "average." Thus, we expect the pair to move today between the levels of 1.2173 and 1.2287. A reversal of the Heiken Ashi indicator back down will signal a possible new round of downward movement. Nearest support levels: S1 – 1.2207 S2 – 1.2146 S3 – 1.2085 Nearest resistance levels: R1 – 1.2268 R2 – 1.2329 Trading recommendations: The EUR/USD pair has started a new upward movement. Thus, today it is recommended to stay in long positions with targets of 1.2268 and 1.2287 until the Heiken Ashi indicator turns down. It is recommended to consider sell orders if the pair remains below the moving average with targets of 1.2146 and 1.2085. We also remind you that the pair is now moving almost flat. The material has been provided by InstaForex Company - www.instaforex.com |
| Posted: 01 Jun 2021 02:27 PM PDT Analysis of previous deals: 30M chart of the EUR/USD pair
The EUR/USD pair was not trading very actively again. Volatility during the day was only 41 points, which, of course, is very small. Therefore, it is still very difficult to trade and earn money in such conditions. How can you earn on a trade with a minimum Take Profit of 30 points if the pair passes only 40 points for the entire day? In addition, the pair remains openly flat. This is clearly visible on the 30-minute timeframe. At the same time, both in the context of several weeks, and in the context of today specifically. On Tuesday, the pair's quotes moved strictly sideways for most of the day, so, in accordance with our recommendations, we should ignore all signals from the MACD indicator. Despite this movement in recent weeks, and despite overcoming the upward trend line, the upward trend still persists. This is supported by the fact that the price continues to be located near its local highs near the level of 1.2266, as well as near the 3-year highs near the level of 1.2350. 5M chart of the EUR/USD pair
The picture on the 5-minute timeframe is as boring as it is on the 30-minute timeframe. There was one signal that was formed during the day - in the European trading session in the form of a rebound from the level of 1.2215. A long position should have been opened here, but, unfortunately, it closed at breakeven by Stop Loss at the beginning of the US trading session. Around the same time, another buy signal could have been generated in the form of a rebound from the same level (1.2215), but the price did not reach it for the second time, by just a point. Thus, a potentially profitable trade was closed by accident and a new signal, potentially profitable, was not formed due to a point. Bad luck. On the other hand, losses could be incurred with such low volatility and frequent price reversals. But this also did not happen. As for macroeconomic reports, there were plenty of them today. We usually mark the times of important reports with ticks in the charts, but today there is no need for this, since there wasn't any report that had caused an unambiguous reaction from the markets. Of the really important publications, we note inflation in the European Union, which accelerated to 2% y/y, and the ISM PMI in the US manufacturing sector, which rose to 61.2. Trading tips for Wednesday: The upward trend is still maintained on the 30-minute timeframe, so we continue to recommend considering long positions. However, the movement remains as close to flat as possible, so the MACD indicator can generate false signals. Thus, tomorrow we recommend that novice traders monitor buy signals from the MACD indicator, but if signs of a flat appear again, ignore them. It is recommended to trade from the levels 1.2159, 1.2181, 1.2215 and 1.2266 on the 5-minute timeframe. Take Profit, as before, is set at a distance of 30-40 points. Stop Loss - to breakeven when the price passes in the right direction by 15-20 points. At 5M TF, the target can be the nearest level if it is not too close or too far away. If located - then you should act according to the situation. On Wednesday, we recommend that novice traders pay attention to European Central Bank President Christine Lagarde's speech. More precisely, to be more careful during her speech, since we will find out what she will announce later on. Unless you follow her online. No more important events planned for tomorrow. 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 |
| Bitcoin: the main reason for the collapse and the chances of recovery Posted: 01 Jun 2021 09:42 AM PDT Bitcoin continues to consolidate, and the technical picture on the daily chart has not changed significantly compared to yesterday. Therefore, the forecast given on Monday has not lost its relevance. But on the 4-hour time frame, the technical picture looks more interesting, giving information for thought. But we will look at it a little later. In the meantime, it is worth dwelling on the reason for the recent collapse of the cryptocurrency market. Yes, we know that these were Tesla's claims to bitcoin because of its non-environmental nature, the ban of China. But few people talk about the third reason, which was probably the main one. And the above news factors are just triggers. After the collapse of the market, opinions about the leverage factor occasionally and timidly slipped in the statements of experts. But today, another article showed that this topic still deserves attention. Many experts cite leverage as one of the reasons for the collapse of bitcoin. It was those who bought digital coins using margin conditions that started liquidating positions after receiving negative news. It was as if they were swept away by the wave of the fall. And it was repeatedly mentioned earlier that it was speculators, not holders, who left the market. In particular, one of those who cited this reason was the host of the podcast "The Wolf of All Streets", Scott Melker. "Of course, there was a big cycle of negative news, but cycles of negative news always seem to kick in when the system gets off the hook," Melker said. "At a BTC price of between $60,000 and $50,000, we saw liquidations on exchanges of nearly $10 billion, which at the time was about three times more than any previous liquidation. Then from $40,000 to $30,000, we saw another $10 billion [in liquidation] before the price went back to about $40,000. In total, this is about 800,000 traders who completely liquidate their accounts," he added. But if leverage was the main reason for the Bitcoin market crash, then in May it was not mentioned in the conversation about the BTC drop. "Leverage was dropped from the conversation because it is the real answer. But nobody wants you to have a real answer," said Melker. As for the other news, Melker believes that there was nothing really "new" about it. The same China "banned" bitcoin repeatedly, but this time the market collapsed. Going back to the graph, which is the 4-hour time frame, after the market crash, recovery occurs, forming an equilateral triangle. It is an ambiguous figure in terms of direction. But the exit from it usually occurs impulsively. If its upper side is broken, then, given the technical potential of development, BTC/USD will most likely be able to overcome the resistance of 41,980.24 and gain a foothold higher. If quotes break through the lower border of the triangle, the downside potential will send BTC/USD to support at 28,392.99. As you can see, at least a double bottom, a triangle, local targets for bitcoin, and a wide frame of the range 28,392.99 - 41,980.24 remain unchanged at present.
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| Wave analysis of EUR/USD for June 1. Eurozone inflation accelerates, euro rises Posted: 01 Jun 2021 09:13 AM PDT
The wave counting on the 4-hour chart for the Euro/Dollar instrument has become a little confusing lately and is becoming more ambiguous. However, I identified the last decline in the instrument quotes as wave 4 of the upward trend section. If this assumption is correct, then the increase in quotes will continue with targets located near the 0.0% Fibonacci level, which corresponds to 1.2350 within wave 5. At the moment, wave 3 does not look entirely convincing, if only because it has taken on a shorter form than wave 1. Consequently, the wave counting is currently not 100% unambiguous. However, while the current wave counting is confirmed by the real movements of the instrument, there is no reason to revise it. Therefore, in the coming days, I expect the instrument quotes to continue to rise. If the decline resumes and a successful attempt is made to break through the current low of wave 4, this will be a good enough reason to make adjustments and additions to the current wave counting. The news background for the Euro/Dollar instrument on Tuesday was extensive and quite interesting. There were quite important reports, and not very important ones. After a rather boring first half of the day, the instrument, like the day before, begins to move much more actively. The first thing to mention is inflation. In the European Union, the consumer price index rose to 2.0% YoY, although markets expected a reading of 1.9% YoY. The unemployment rate in the European Union was also pleasing, which fell from 8.1% to 8.0%. However, these data did not provide much support to the European currency. And what additional support can we talk about if the euro is already near the peak of the previous upward trend segment? The data from Germany were less positive, but also less important. The unemployment rate remained unchanged at around 6.0%, the index of business activity in the manufacturing sector rose from 64.0 points to 64.4 points. Throughout the European Union, business activity in manufacturing rose from 62.8 points to 63.1 points. Thus, the markets today could increase demand for the European currency from the very morning, but they did it only in the afternoon, when the statistics in the United States were released, which also turned out to be strong, but at the same time did not affect the US dollar. In general, it is completely ambiguous that the markets generally reacted to economic reports today. During their release, there was no strong movement, and the instrument began to rise when there was no news. And a little later, reports were released that were supposed to increase the demand for the US currency. Based on the analysis, I still expect the instrument quotes to rise, although at this time, I am not completely sure about the wave counting, it can take on a completely different form. Thus, I still recommend buying the instrument with targets located around the 23rd figure and the level of 1.2340 for each MACD signal "up". But now a new decline in quotes (which will not prevent the upward trade, since the MACD will be directed downward) can lead to adjustments and additions to the current wave counting.
The wave counting of the upward trend section is still quite complete. The part of the trend, which began its construction immediately after it, took on a corrective and also fully completed form. If the current wave counting is correct, then the construction of a new upward trend section continues and its first two waves have been completed. The material has been provided by InstaForex Company - www.instaforex.com |
| Cryptocurrency market analysis on June 1, 2021 Posted: 01 Jun 2021 08:50 AM PDT
The wave counting of the 4-hour chart of bitcoin still suggests an increase in quotes. After the cryptocurrency quotes fell by more than $30,000, two upward waves were already built. Thus, I assume that at this time, the construction of a new three-wave structure has begun, where waves a and b are already present. If this is true, then the increase in prices will continue with the current levels in the framework of the assumed wave c with the targets, positioned above the expected peak of wave a. That is, above the $42,000 mark. However, at the moment, bitcoin quotes are moving up with great difficulty. Affected by the lack of a good news background, which has always been of great importance for the cryptocurrency. Thus, I consider an alternative option to build tools of complex corrective structures, which will be horizontal or close to such. It is already clear that the instrument is in a triangle, which means a very limited range of movements of the main cryptocurrency. The news background for bitcoin remains rather negative. There is, of course, news that inspires a little optimism in the hearts, but there are really few of them. Recent major news has come from China and the United States, where the authorities have set out to severely restrict mining and uncontrolled operations with bitcoin and other cryptocurrencies, which greatly reduces the demand for the asset. I believe that it is this news that prevents bitcoin from developing at least a corrective increase within the wave counting presented above. However, for example, in Argentina, there has recently been an increase in mining capacity and, in fact, an increase in the number of miners themselves. Inflation in Argentina is very high, reaching 50% per year. Thus, the national currency depreciates almost twice every year, as well as the savings of the country's residents. In search of protection from inflation and taking advantage of low electricity prices, local residents began to actively buy mining equipment and mine bitcoin, since even the latest drop in its quotes still makes it very profitable to mine and then sell it. It should also be noted that Argentina has a law that prohibits local residents from buying foreign currency in large quantities. Thus, the population does not have the opportunity to protect themselves from inflation by buying a more stable currency. Therefore, bitcoin and other cryptocurrencies for them are really a good way to make money and partly win back the depreciation of the local currency. However, one positive news from Argentina is clearly not enough for bitcoin to continue its growth. Recently, many central banks have issued statements warning investors that they could lose everything on bitcoin transactions. The cryptocurrency itself was also sharply criticized, which is overly volatile and speculative, and is also rarely used for its intended purpose, that is, as a means of payment. Based on the analysis, I believe that the three downward wave structure is complete. The current wave counting indicates a possible rise within wave c, I continue to recommend buying bitcoin for each MACD upward signal with targets located around $42,500. An unsuccessful attempt to break through the 61.8% Fibonacci level could lead to a new decline in bitcoin, but I more hope that in the coming year, the cryptocurrency will build complex corrective structures and will not resume the upward trend. The material has been provided by InstaForex Company - www.instaforex.com |
| EUR/USD. Euro rises again: 23rd figure is on the horizon Posted: 01 Jun 2021 08:31 AM PDT The euro-dollar pair consolidated within the 22nd figure, despite the "dovish" comments of some representatives of the ECB. Today, the single currency has received support from macroeconomic statistics. The published figures once again confirmed the fact that the European economy is recovering at an outstripping pace, amid an improvement in the epidemiological situation in Europe and an acceleration in the rate of vaccination of the population against COVID-19.
Let me remind you that yesterday, the buyers of EUR/USD were able to partially regain their lost positions due to the data from Germany. The German inflation growth indicators came out in the "green zone", foreshadowing the growth of inflation indicators on a pan-European scale. So, on an annual basis, the German consumer price index continued its upward trend, rising to 2.5% in May. The indicator has been growing consistently over the past five months. The harmonized index of consumer prices similarly exceeded the forecast values-both in monthly and annual terms. Germany is considered the "locomotive" of the European economy, so the euro received significant support yesterday, returning to the 22nd figure in the pair with the dollar. Today's macroeconomic block, in turn, only strengthened the position of buyers of EUR/USD. So, the pan-European consumer price index in May rose to 2%, exceeding the forecast values (most experts expected to see this indicator at around 1.9%). The indicator shows a positive trend for the third month in a row. For comparison, the CPI was 0.9% in February and 1.6% in April. In other words, we see consistent and very active growth in overall inflation. If we talk about the dynamics of core inflation, the situation is not so rosy. But there are also certain reasons for optimism. The core index paused its decline for the first time in the last three months and again showed growth. Thus, the core CPI in January was at 1.4%, while in April it slowed to 0.7%. Today, the indicator came out at 0.9%. Unemployment did not disappoint either. The overall unemployment rate in Europe continues to decline gradually. In May, this figure came out at 8.0% (the decline has been recorded for the third month in a row). The PMI indices have become a kind of "cherry on the cake" today. The May index of business activity in the manufacturing sector in Germany was revised upward (64.4 points). The European PMI in the manufacturing sector showed similar dynamics. The macroeconomic reports mentioned allowed buyers of EUR/USD to "stay afloat" and drift above the 1.2200 mark. But a more powerful informational motive is needed for the upward breakout. The dovish position of the ECB became a kind of "anchor" for the euro. Even though there was actually a divided sentiment regarding the further fate of QE amongst the members of the ECB, "hawks" are clearly in the minority. In particular, Bank of France Governor Francois Villeroy De Galhau, said last week that the European Central Bank "does not need to rush to change the rate of asset repurchases." At the same time, he stressed that any assumptions about reducing the buyout already at the June meeting are just speculation. Not so long ago, Christine Lagarde joined the doves of the Central Bank. The head of the European regulator said that against the background of general uncertainty, a soft monetary policy is still necessary - "both at the moment and in the future in the coming months." She also stressed that the current increase in inflation "is a temporary phenomenon." But here it should be noted that the growth of inflation indicators both in Germany and in the eurozone as a whole is consistent and, one might say, systemic. And indirect inflation indicators signal the continuation of the upward trend in the near term. This leads to a logical question - how long will the ECB be able to avoid talking about cutting incentives?
During the recent meeting of the ECB, Lagarde denied rumors that the regulator could cut PEPP this summer. According to her, the European Central Bank has not yet discussed the curtailment (or adjustment) of the large-scale program of emergency asset purchases. At the same time, she recalled that in March the Central Bank accelerated the rate of buying up bonds, so at the moment it is "too early" to talk about any changes. However, the dovish rhetoric of the ECB representatives has only a short-term impact on the EUR/USD pair. Key European macroeconomic indicators continue to demonstrate positive dynamics, strengthening the optimistic sentiment in the business environment (as evidenced by the PMI, IFO, ZEW indices). There is a common position on the market, which is expressed in the fact that the European regulator will have to react to the dynamics of the main macro-indicators with hawkish decisions or at least intentions. Thus, a certain uncorrelation with the Fed regarding the prospects for tightening monetary policy parameters allows the EUR/USD bulls to hold the occupied heights, demonstrating the strength of the upward trend. The dollar, in turn, is under the background pressure of the dovish position of the Fed. Neither the record growth of the PCE index nor the presentation of an ambitious draft of the US budget helped the dollar bulls to develop a large-scale rally. As soon as the greenback strengthened its positions (on Friday), it immediately fell under a wave of sales (on the same day). As a result, the pair showed increased volatility but closed the trading day at the opening level. Thus, the current fundamental background suggests that the EUR/USD pair has not exhausted its potential in the context of further growth. The technical side of the issue also speaks about the priority of longs. The pair on the daily chart is located between the middle and upper lines of the Bollinger Bands indicator, as well as above all the lines of the Ichimoku indicator (including above the Kumo clouds). The situation is similar on the weekly chart. The first target of the upward movement is 1.2266 (5-month price high), the main target is 1.2300 (upper line of the Bollinger Bands indicator on the daily chart). The material has been provided by InstaForex Company - www.instaforex.com |
| Analysis for GBP/USD on June 1 Posted: 01 Jun 2021 08:16 AM PDT
For the pound/dollar pair, the wave marking has not changed in recent weeks. The Briton has been in a side corridor of 120 basis points for more than two weeks. Thus, after the assumed wave e completed its construction, the correction wave structures began, which are very difficult to describe and define for any structure of the higher scale. And today's increase in the quotes of the instrument led to the fact that the 0.0% Fibonacci level was worked out for the first time since February 24. Thus, the supposed wave e has continued its construction all this time, and those incomprehensible correction structures that we have observed in recent weeks are parts of it. In general, the wave marking has not become clearer either today or in the last two weeks. Since the attempt to break through the level of 1.4240 was unsuccessful, there were reasons to assume the construction of the upward trend section, which originates on March 25 or April 9. Nevertheless, the markets may make several more attempts to break this mark. The pound/dollar pair moved directly opposite to the euro/dollar pair during the current day. The decline in quotes began in the morning after an unsuccessful attempt to break through the 1.4240 mark. From my perspective, it was the unsuccessful attempt to break through this mark that caused the further decline in the British dollar's quotes. In the UK, the news background was relatively weak today. At the current moment, only the index of business activity in the manufacturing sector for May was released, which only slightly decreased from 66.1 points to 65.5 points. At the same time, the index value remained well above the level of 50.0, below which it is considered that the trend has become negative. Thus, the reduction in business activity by 0.6 points clearly could not cause a decline in quotes by 90 basis points. And in the second half of the day, the increase in the quotes of the instrument began, although quite weak at the moment, only a couple of dozen points. But it began when reports on business activity in the manufacturing sector were released in the United States, both showing an improvement compared to the previous month. Thus, in the second half of the day, it would be more logical to see a decline in the quotes of the instrument, that is, the growth of the dollar. Bank of England Governor Andrew Bailey's speech, which may shake up the markets once again on Tuesday, will begin soon. However, everything will depend on whether Mr. Bailey reports anything essential or not. At this time, the wave pattern continues to be twofold. The pound moves almost horizontally, which makes it challenging to work with it. At this time, it is still unclear whether the proposed wave e has completed its construction. Its internal wave structure looks ambiguous. You can try to sell the instrument with a protective order above the level of 1.4240, which corresponds to 0.0% of the Fibonacci. And if the level of 1.4240 breaks, buy it.
The upward section of the trend, which began its construction a couple of months ago, takes a rather ambiguous form. As I said above, several variants of wave marking are possible at once. Unfortunately, different options offer different further developments. Therefore, it may be necessary to wait for the current wave markup to clear up a little. The material has been provided by InstaForex Company - www.instaforex.com |
| Trading Signal for BTC/USD (Bitcoin) for June 01 - 02, 2021: Buy above $34,400, Symmetrical triangle Posted: 01 Jun 2021 08:00 AM PDT
In the early trading hours of the American session, BTC / USD (Bitcoin) is trading within the symmetrical triangle according to a 4-hour chart, showing a consolidation signal after the fall in May to nearly $30,000. Now we notice that BTC is ready to challenge again the psychological level of $50,000. On the other hand, Nikolaos Panigirtzoglou, JPMorgan strategist and Bitcoin expert said: The longer-term signal remains problematic as it has not yet shortened. Price drops to the $26,000 level would still be needed before the longer-term momentum. In the medium term, Panigirtzoglou sees a fair value for Bitcoin in the range of $24,000 to $36,000. Analysts believe that the May crash in Bitcoin has severely weakened institutional demand, which is likely to keep prices at this level for now. In view of these discouraging factors for BTC, from a technical point of view, we expect the $ 30,000 floor, confirmed by a double bottom, to give support for BTC to stay above this level. On this condition, the crypto asset will be able to break again the downward pressure zone of $50,000 and thus reach the goal of $75,000 by the end of the year. Our recommendation is to continue buying BTC, if it makes a technical bounce at the 21 SMA or the bullish line of the triangle, around $34,555. Provided that it breaks and consolidates above the symmetrical triangle, we can buy BTC with targets at the 200 EMA at around of $46,946. Support and Resistance Levels for June 01 – 02, 2021 Resistance (3) 40,059 Resistance (2) 39,282 Resistance (1) 37,934 ---------------------------- Support (1) 34,652 Support (2) 32,551 Support (3) 31,369 The material has been provided by InstaForex Company - www.instaforex.com |
| Posted: 01 Jun 2021 07:41 AM PDT BITCOIN
May was dominated by the bears, who took a break in the last week of the month. As a result, bitcoin continues to remain in the zone of attraction formed by the accumulation of levels in the region of 37,297 - 35,594 - 34,354 (monthly Tenkan + monthly Kijun + the final line of the weekly cross). The breakdown of the zone and the continuation of the decline will eliminate the weekly golden cross and open the way to the final border of the monthly golden cross of the Ichimoku cloud (27177). If the bulls manage to limit the current downward correction of the higher time frames by the supports achieved, then they will have to restore their positions through the following important resistances - 41,432 (monthly Fibo Kijun + weekly Kijun + daily Fibo Kijun) - 44,615 (daily medium-term trend) - 47,235 (weekly levels + daily Fibo Kijun).
Bulls performed an upward correction on H1 and are currently fighting for the most important levels of 36,000 - 36,215. Work and positioning above the levels, as well as an upward reversal, will give preference to strengthening the mood of the bulls. The resistance of the classic Pivot levels serves as upward benchmarks within the day, these are 37,934 - 39,282 - 41,217. The loss of support for key levels (36,000 - 36,215) and a reliable consolidation below will change the current balance of power in the lower halves in favor of the bears. At the same time, the main task for the bears will be to overcome the supports of the higher halves (35,594 and 34,354). *** In the technical analysis of the situation, the following are used: higher time frames - Ichimoku Kinko Hyo (9.26.52) + Fibo Kijun levels H1 - Pivot Points (classic) + Moving Average 120 (weekly long-term trend) The material has been provided by InstaForex Company - www.instaforex.com |
| Trading Signal for #INDU (Dow Jones 30) for June 01 - 02, 2021: Sell below 34,750 Posted: 01 Jun 2021 07:35 AM PDT At the opening of the Wall Street market, the Dow Jones Industrial Average, #INDU, was up 0.36%, consolidating above the +1/8 murray reversal level in the 34,750 zone. Yesterday in our analysis, we indicate the upward continuation of the Dow Jones, we invite you to review and take into account some data.
The markets were closed on Monday for the celebration of Memorial Day in the US. So, we saw a low volume of trading and only the Dow Jones futures were moving. Now the index is showing no signs of exhaustion. The bullish force is likely to continue to the psychological level of 35,000. Markets will be watching the NFP data for May. Investors expect it to show that the unexpectedly weak employment in April was an exception, when only 266,000 jobs were created, well below the expected million. The US economy is expected to have added 650,000 new jobs in May. In a 4-hour chart, we can see the Dow Jones, #INDU, is breaking the +1/8 line of murray. This level acts as an extremely overbought level. It is likely that there will be a downward correction below this level. The technical reading of the eagle indicator shows that the SMA of 21 acts as an immediate support. Therefore, a bounce around 34,500 there will be a good opportunity to continue buying with targets at 34,750 and 35,000. Our recommendation is to sell below 34,750, given that it is an extremely overbought area. The eagle indicator is showing a downward correction signal. Hence, we can take this data into account to sell or wait for a rebound in the SMA of 21 to buy. Support and Resistance Levels for June 01 - 02, 2021 Resistance (3) 35,271 Resistance (2) 34,970 Resistance (1) 34,764 ---------------------------- Support (1) 34,557 Support (2) 34,495 Support (3) 34,396 The material has been provided by InstaForex Company - www.instaforex.com |
| Trading Signal for EUR/USD for June 01 - 02, 2021: Key Level 1.2207 Posted: 01 Jun 2021 06:56 AM PDT
In the early American session, the EUR / USD pair is trading below the SMA of 21 and above the strong support that combines the 8/8 line of Murray, with the EMA of 200. This is the key level to watch. With the consolidation below this level, we expect a fall to 7/8 of murray located at 1.2146. In the 1-hour chart, we notice a bullish wedge pattern being formed. If the 1.2207 area is broken sharply, the bullish outlook for this pair would be confirmed and the euro could rise to 1.2146 level. On the other hand, the euro is showing a sign of exhaustion in 1-hour charts as the reading of the eagle indicator is showing an overbought signal. This is seen on the chart as a deceleration of the bullish force. Supply in the market could increase and the euro could make a downward correction in the next few hours. This week, the NFP data from the United States is in investors' radars. No doubt, the markets are anticipating the data that will be published on Friday. But before, we expect the EUR / USD pair to make a technical correction to get out of the overbought levels and consolidate in the neutral ground before this data. The market sentiment for EUR / USD today shows that there are 65.26% of traders who are selling the EUR / USD pair. This is a sign that the inherent upward force still remains. The buyers wait for a support zone to enter the market and to buy during a new bullish wave that could go as high as 1.23. Our recommendation is to sell below 1.2230 that is where the 21 SMA is located. Alternatively, if a break is made from the 200 EMA and 8/8 Murray, sell below with targets at 1.2143. We must be very careful above 1.2260. Support and Resistance Levels for June 01 - 02, 2021 Resistance (3) 1.2289 Resistance (2) 1.2260 Resistance (1) 1.2241 ---------------------------- Support (1) 1.2193 Support (2) 1.2164 Support (3) 1.2145 *********************************************************** Trading tip for EUR/USD for June 01 - 02, 2021 Sell below 1.2228 (SMA 21), with take profit at 1.2207 (8/8), and 1.2143 (7/8) stop loss above 1.2260. Sell if breaks 1.2207 (8/8 of murray) with take profit at 1.2146 (7/8), stop loss below 1.2242. The material has been provided by InstaForex Company - www.instaforex.com |
| Posted: 01 Jun 2021 06:47 AM PDT The new week began with relative calm for the cryptocurrency market. The indicators of the major altcoins continued to fluctuate in the ranges due to the collapse of bitcoin, however, they began to show considerable desire to return to growth. Thanks to numerous attempts to go beyond psychological marks, the total capitalization of the cryptocurrency market has increased by 3%. ETH has managed to break out of the initial fluctuation range of $2,200-$2,400 and hit the $2,700 mark. As of 11:00 UTC, the main altcoin is quoted within a narrow corridor of $2,500-$2,700. However, at these levels, the asset began to fluctuate again, having risen in price by only 2% per day. At the same time, daily trading volumes are gradually increasing, reaching $42 billion. But the dynamics of price changes in a few hours suggests that the cryptocurrency still does not have sufficient market support to reach a new level and overcome the $3,000 mark. The main reason for this is too much dependence on bitcoin, which, in fact, is the anchor for the entire market. Ethereum has a rather positive individual news background, which contributes to the growth of quotes, however, the asset only managed to escape from one corridor to another. In addition to the upcoming London update, the developers have fixed the EIP-1559 vulnerability that caused the asset's network to be overloaded during the last mass sale. Thanks to this, the commission algorithm has stabilized. Soon, the coin will continue to strive for the level of $2,800, and eventually to $3,000, but growth will be significantly slowed by the market situation.
The XRP token has been the main driver of the market in recent days due to another victory, albeit local, of Ripple over the SEC. Recall that as part of the trial, representatives of the SEC were again denied a request to provide information about Ripple's legal advice. This news, coupled with the previous defeats of the SEC, can be perceived as support for the cryptocurrency market from the country's judicial system. However, the Ripple token failed to take advantage of the positive situation, and the cryptocurrency, having reached $1.08, rolled back to $1.01. Taking into account the indicators of the horizontal charts, as well as the daily trading volumes, which remain in the region of $6.5 billion, we can conclude that the market did not perceive another victory of Ripple. Therefore, in the near future, the main target of XRP/USD will be to consolidate above the $1 mark and slowly move towards $1.2 with parallel price consolidation.
Litecoin indicators continue to remain in the region of $170-$180, but the asset is accumulating critical mass. The cryptocurrency managed to jump to 14th place in terms of capitalization with a result of $11.9 billion. Altcoin also managed to slightly shift the range of fluctuations, which is clearly visible on the horizontal charts. LTC/USD indicators are quoted in the region of $188-$195, which indicates the prerequisites for more active growth. However, the limiting factor for the cryptocurrency is its excessive dependence on bitcoin, which is experiencing problems and is preparing to retest the $40,000 mark. Soon, the cryptocurrency will try to gain a foothold above the $200 mark, however, in the event of a negative impulse, LTC will test the strength of the support at $170.
Despite the rather turbulent market environment, cryptocurrencies are showing signs of life and are preparing for the start of a protracted growth. Thanks to another victory over the SEC, investors are starting to return to the game, as evidenced by statistics, which shows that the trading volume on cryptocurrency exchanges has exceeded the $2 trillion mark. However, bitcoin has the final say in the future development of the market. Soon, the cryptocurrency will finish accumulating volumes for the assault on the $40,000 mark, which will either herald a new growth cycle, or will plunge the market into another period of depression. The material has been provided by InstaForex Company - www.instaforex.com |
| Ichimoku cloud indcator analysis on Ethereum Posted: 01 Jun 2021 06:39 AM PDT There is a bullish signal in the making by the price action of Ethereum in the 4 hour chart using the Ichimoku cloud indicator. Price was trading below the Ichimoku cloud from $3,700 to $2,600 where it recently broke again above the cloud. Bulls and bears are battling now around the cloud as there is still no clear indication if price will stay above or re-enter the cloud.
Ethereum is trying to push above the cloud. Price is above both the tenkan-sen (red line indicator) and the kijun-sen (yellow line indicator). Breaking above the cloud and staying above $2,620 is key for the short-term trend. The tenkan-sen has crossed above the kijun-sen and this is a bullish sign. If price manages to stay above $2,620 we could see a move higher towards $3,200-$3,300 as explained in previous posts. Support at $2,380 is key and breaking below it will be a bearish sign. The material has been provided by InstaForex Company - www.instaforex.com |
| XRP/USD short-term analysis and expectations. Posted: 01 Jun 2021 06:33 AM PDT XRP/USD briefly pushed above $1.06 resistance today but bulls seem unable to hold above it. Fake break outs are usually worse than rejections as they lure in many traders with a fake signal. It is too early to call this signal a fake one. Bulls could make another try on $1.06 over the next few hours but the longer it takes to break it, the harder it will get.
Red lines - Fibonacci extensions After the low on May 23rd XRP/USD is making higher highs and higher lows. This is important for bulls and they will need to continue this way. Price has bounced and stopped the decline right at the major support and previous major resistance area. This is also another bullish sign. However in order to hope for a move above $1.97 bulls will need to show more signs of strength. XRP/USD could reach $1.20 and $1.45 over the coming days, but failure to hold above $0.80 could lead to a sell off towards $0.60. So far it seems like bulls are about to retake control of the trend but still there is nothing clear in the short-term. Traders need to be cautious. The material has been provided by InstaForex Company - www.instaforex.com |
| EURUSD trade recommendation and analysis for June 1, 2021. Posted: 01 Jun 2021 06:26 AM PDT EURUSD has bounced strongly above 1.22 and is trading around 1.2225. At current levels I prefer to open short positions or be at least neutral as I expect a major reversal in EURUSD to come soon and price to fall towards 1.2050.
Blue lines- Fibonacci retracement levels EURUSD has retraced 78.6% of the recent downward move. This is the price level I prefer to open short positions looking for a move lower. Price has resistance at 1.2235 and I believe it is not very likely for price to break above this level. My stop for my short position would be at 1.2270 and my target at 1.2050 Short-term support is at 1.2180 and a break below this level will increase chances of my trade to end with profit and reaching my target. The material has been provided by InstaForex Company - www.instaforex.com |
| Technical analysis on Gold for June 1, 2021. Posted: 01 Jun 2021 06:19 AM PDT Gold price made a new higher high today above $1,912. Price reached $1,916. Trend remains bullish as price continues making higher highs and higher lows. However my belief that a reversal is coming has been strengthened by the third bearish RSI divergence in the 4 hour chart.
Black line- bearish divergence Despite the third consecutive higher high in price, the RSI did not follow and made a new lower high. Price is still above $1,900 and there is still no confirmation of a trend reversal. The chances of a reversal have increased and my view to be neutral if not bearish at current levels remains. A pull back towards $1,880-$1,860 is fully justified and will not cause any trouble to the medium-term bullish trend as price would remain inside the bullish channel. The material has been provided by InstaForex Company - www.instaforex.com |
| Posted: 01 Jun 2021 06:14 AM PDT In our recent posts about USDJPY we focused on the short-term as price continued to respect support at 109 and as price started making again higher highs and higher lows. Although price reached 110.20, it is now trading at 109.60 in what we believe to be another higher low.
USDJPY is still above two key long-term resistance trend lines. One trend line is now at 109.10 and the other at 108.55. Staying above these trend lines on a weekly basis would be a bullish sign. If bulls manage to hold above the 108.50-109 support area, we could next see a push higher towards 111-112. Failure to hold above the trend lines will open the way for a decline towards 106 at least. The material has been provided by InstaForex Company - www.instaforex.com |
| Posted: 01 Jun 2021 05:38 AM PDT Technical analysis:
BTC has been trading downwards in last 12 hours and i see potential for the further downside movement. Trading recommendation: Watch for potential selling opportunities due to potential completion of the ABC upside correction and downside continuation. Downside targets are set at the price of $33.850 and $29.120. Stochastic is showing overbought condition and fresh bear cross, which is another sign and confirmation for the downside rotation. The material has been provided by InstaForex Company - www.instaforex.com |
| Analysis of Gold for June 1,.2021 - Potential for the downside swing and test of $1.855 Posted: 01 Jun 2021 05:29 AM PDT Technical analysis:
Gold has been trading upside and the price tested the level fo $1.912 but I see big exhaustion and potential for the drop towards the level of $1.855. Trading recommendation: Watch for potential selling opportunities if you see the downside breakout of the mini upside channel. Downside target is set at $1.855. Stochastic is showing overbought condition and fresh bear cross, which is another sign and confirmation for the downside rotation. The material has been provided by InstaForex Company - www.instaforex.com |
| EUR/USD analysis for June 01 2021 - Potential for the drop towards 1.2135 Posted: 01 Jun 2021 05:24 AM PDT Technical analysis:
EUR/USD has been trading sideways at the price of 1.2221 but I still see potential for the drop.. Trading recommendation: Watch for potential selling opportunities due to overbought condition and test of the upper line. Downside target is set at 1.2135 Stochastic is showing overbought condition and fresh bear cross, which is another sign and confirmation for the downside rotation. The material has been provided by InstaForex Company - www.instaforex.com |
| Posted: 01 Jun 2021 05:00 AM PDT
Congratulations to those who followed the trading idea last May 31. The plan was to build up long positions in order to push the quote above 1.42400. Plan:
Result:
The movement occurred during the Asian session. It followed the classic and trusted Price Action and Stop Hunting strategies. Congratulations again and have a nice trading day! The material has been provided by InstaForex Company - www.instaforex.com |
| Forecast for Litecoin on June 1, 2021 Posted: 01 Jun 2021 04:52 AM PDT
1. Analysis of volumes for the instrument LTCUSDT from the Binance exchange. This analysis uses data on horizontal volumes from the Binance exchange on daily charts. It is based on the "Footprint-Profile" theory, in which the movement of the level of the maximum horizontal volume per day can indicate the likely direction of the trend. The maximum volume level is the level at which the maximum number of transactions was made, that is, the level of a large player. Accordingly, the upward movement of the maximum volume levels indicates an upward trend. A downward movement of the maximum volume level indicates a downward trend. Chaotic movement of maximum volume levels indicates a flat in the market. 05/30/21 - Maximum horizontal volume level (POC - Point Of Control) - 175 05/31/21 - Maximum horizontal volume level (POC - Point Of Control) - 177 The POC moved upwards, the price is above the POC level. There is an upward movement in the market, so you can consider opening long positions. 2. Analysis of the long-term trend. A trend is a friend of a trader. Many traders know this saying but don't know how to use it. The answer is simple: trade only in the direction of the trend. This way your trades will have more profit potential with less risk. According to classical Dow theory, there are three main trends:
You need to analyze these three trends before opening any deal. This is what we will do in this analysis. The long-term trend in this analysis is the daily trend. Trades will be executed on the daily timeframe and held for several days. The analysis of the daily trend is carried out using the EMA (48) - an exponential moving average with a period of 48. If the daily candle closes above the EMA (48), then we have an upward trend in front of us and you can consider buying. If the daily candle closes below the EMA (48), then the trend is downward and you can consider selling.
The price is below the EMA (48). The long-term trend is downward, so selling should be considered in this situation. 3. Analysis of the medium-term trend. In this analysis, the medium-term trend will be the trend on the 4-hour chart (H4). EMA (48), an exponential moving average with a period of 48, will also be used for analysis. If the H4 candlestick closes above the EMA (48), then the trend is upward and you should buy. If the H4 candlestick closes below the EMA (48), then the trend is downward and you should sell.
The price is in line with the EMA (48). The medium-term trend is sideways, so you can both buy and sell. 4. Analysis of the short-term trend. A short-term trend that can show the point of entry into the market well is a trend on the H1 timeframe. We will be helped by the EMA (48) - an exponential moving average with a period of 48. If the H1 candlestick closes above the EMA (48), then the trend is upward and you should buy. If the H1 candlestick closes below the EMA (48), then the trend is downward and you should sell.
The price is in line with the EMA (48). The short-term trend is sideways, so you can buy and sell. Long-term, medium-term, and short-term trends do not coincide. 5. Japanese candlestick analysis. Classic Japanese candlestick analysis is applied to the daily timeframe. In this analysis, we will also analyze the daily candlestick.
The daily candlestick is closed upwards, the candlestick is white. The high is above the high of the previous candle. Candlestick configuration - Hammer pointing up, not large body, large lower shadow. According to the candlestick analysis, you can buy. 6. Conclusions.
General conclusion: On June 1, you can buy and sell, since different types of analysis give different forecasts. 7. Statistics. To analyze the effectiveness of this approach, statistics are kept on completed transactions. Forecasts and transactions are made in four instruments: Bitcoin, Ethereum, Litecoin, and BCH/USD. The yield is 10.4% in 4 months with a maximum drawdown of 4.88%. Statement:
I do not open new deals on Litecoin if there is uncertainty in the market The risk per trade is 1% of the deposit. For new trades, the stop loss is located behind the daily extreme point. We do not set the take profit, since we will accompany the transaction by moving the stop loss beyond 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 gain profits! The material has been provided by InstaForex Company - www.instaforex.com |
| US stocks slip ahead of May employment report Posted: 01 Jun 2021 04:47 AM PDT
US stocks declined on Monday in anticipation of the reports on US employment, which are due to be released this week. Aside from that, S&P 500 and Nasdaq also started the week lower because trading hours were cut due to Memorial Day in the United States. But the main reason is the upcoming data on US nonfarm payrolls, which may shake the markets if the figures are much lower than expected. S&P 500 slipped by 0.27%.  As said above, investors are very concerned that upcoming US data may be disappointing, not to mention change the perception on economic recovery. Key events for this week are: - policy meeting of the Reserve Bank of Australia (Tuesday); - OPEC meeting (Tuesday); - statements from Fed members (Wednesday); - US employment report for May (Friday). The material has been provided by InstaForex Company - www.instaforex.com |
| Technical analysis and recommendations for EUR/USD and GBP/USD on June 1, 2021 Posted: 01 Jun 2021 04:45 AM PDT EUR/USD
Looking at the monthly time frame, the bulls managed to close the month of May very positively. However, uncertainty continues to dominate the situation in the smaller time frames. The previously mentioned upward pivot points retain their location – the historical level (1.2243) - the target for the breakdown of the daily Ichimoku cloud (1.2345 - 1.2416) - the maximum extremum (1.2349). The downward pivot points have also remained in place for a long time, forming a fairly wide zone. The nearest support levels are set at 1.2150-59 (daily Fibo Kijun + historical level) - 1.2126 (daily medium-term trend) - 1.2093 - 1.2102 ( daily Fibo Kijun + weekly Fibo Kijun) - 1.2027 (weekly medium-term trend). At the moment, the daily short-term trend (1.2199) is acting as the center of gravity.
The advantage in the smaller time frames is now on the bulls' side. In the hourly chart, they consolidated above the key levels 1.2213-11 (central pivot level + weekly long-term trend). And although this advantage is quite weak with daily consolidation and weekly uncertainty, it is still present on the side of bullish traders. The intraday pivot points to develop the upward movement are the resistance of the classic pivot levels 1.2244 - 1.2262 - 1.2293. In turn, a consolidation below the level of 1.2213-11 will shift the advantage on the H1 chart in favor of strengthening bearish sentiments. We can note the support levels at 1.2195 (S1) - 1.2164 (S2) - 1.2146 (S3). GBP/USD
The pound was able to close May with a candlestick that is controlled by bullish sentiments, forming a close outside the monthly Ichimoku cloud. As a result, the main task for June will be to consolidate in the bullish zone relative to the cloud and continue the upward trend. Now, bullish traders are testing the February high (1.4240). The breakdown of this resistance will restore the upward trend and allow bullish traders to consider new prospects, so the result of the interaction is important in the near future. Yesterday's role and location of supports did not change - 1.4169 (daily short-term trend) - 1.4137 - 1.4090 (worked-out target for the breakdown of the daily cloud).
The pair approached the resistance level of 1.4250 (R2) in the smaller time frames. The next intraday resistance can be noted at 1.4280 (R3). At present, the downward correction is developing. Today's key supports are seen at 1.4196-70 (central pivot level + weekly long-term trend) and are strengthened by the daily short-term trend (1.4169). A consolidation below in the daily time frame will change the balance of power not only in the lower period but will also lead to the development and formation of a daily rebound from the encountered resistance of 1.4240 in the higher ones. *** Ichimoku Kinko Hyo (9.26.52) and Kijun-sen levels in the higher time frames, as well as classic Pivot Points and Moving Average (120) on the H1 chart, are used in the technical analysis of the trading instruments. The material has been provided by InstaForex Company - www.instaforex.com |
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