Bitcoin closes trap on bears

Trading 26 oct 2019 Commentaire »

In our last analysis on Bitcoin I pointed out the bearish scenario in case price broke below $7,785. However I also pointed out that traders should be careful and keep a close eye on the RSI indicator. For a clear bearish signal we wanted not only the price to break support but the RSI to make a new low.

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Red line - major resistance trend line

Black lines - bullish divergence

Green lines - sideways trading range

Bitcoin broke below support and moved as low as $7,250. However the RSI did not follow. This was a clear bullish divergence. We warned that something like this could happen and to be very careful. Price reversed sharply as BTCUSD is now trading near the upper trading range boundary which is important support. Was this fake break down a trap for bears? As long as price is below the red trend line resistance bears remain in control of the longer-term trend.

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USDJPY continues to consolidate, we remain bullish

Trading 26 oct 2019 Commentaire »

USDJPY continues to move sideways above the break out level of 108.50. This consolidation is expected to be followed by a new move higher towards 109.50-110 at least over the next week.

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Orange rectangle - support

USDJPY is in bullish trend. Price is above the cloud and above both the tenkan- and kijun-sen indicators. Price is also holding above the 108.50 area which was previously resistance and now support. Next support is at 107.70. As long as price is above 107.10 and the cloud we remain bullish expecting a move towards 110.

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EURUSD bulls need to react now or…..

Trading 26 oct 2019 Commentaire »

EURUSD has moved below the 1.11 level and is testing important cloud support at 1.1070-1.1080 area as we said it would, if price broke 1.11. Bulls need to react now as the 1.1070-1.1080 area is the line in the sand for the bullish continuation.

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Black line - support trend line

Price is trading below both the tenkan- and the kijun-sen. Short-term trend is neutral as price is inside the Kumo (cloud). Price is marginally above the upward sloping trend line support. Bulls need to step in now and push prices higher....Bears on the other hand in order to gain control of the trend they will need to continue pushing prices lower. Bears need to break and stay below 1.1070. Resistance is at 1.1115. Breaking above this level would be a bullish sign. Until then bears seem to have the upper hand, but they are still not in full control of the trend. Trading around 1.1080 has a good risk reward ratio for bulls taking into consideration of the possible upside. I will change my mind for the bullish scenario in case we close a day below 1.1070-1.1060.

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Gold reclaims key $1,500 level but daily candle gets rejected once again at major resistance

Trading 26 oct 2019 Commentaire »

Gold price managed to move and stay above the key $1,500 level and exit the short-term bearish channel. However price has formed a Daily bearish reversal candlestick pattern after closing near the day open which was also near the lows.

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Yellow rectangle - resistance

Green lines - bullish channel

Black line -RSI resistance trend line

Price has moved above the bullish channel. This is a bullish sign. However price has formed a bearish hammer daily candlestick. This is a bearish reversal signal. Combined with the fact that price got rejected once again at the resistance of $1,515-20 area and the RSI is still below the black downward sloping trend line resistance, makes me feel that another leg down could start from Monday. I remain bearish as long as price is below $1,525-30 area. Support is at $1,500-$1,490. Breaking below this level will confirm bears remain in control of the short-term trend.

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U.S. Dollar Edges High Amid News Of Progress In Trade Talks

Trading 26 oct 2019 Commentaire »

The U.S. dollar moved slightly higher during trading on Friday as traders reacted to upbeat news on the U.S.-China trade front.

The greenback is trading at 108.67 yen versus the 108.61 yen it fetched at the close of New York trading on Thursday. Against the euro, the dollar is valued at $1.1080 compared to yesterday's $1.1104.

The uptick by the dollar came after a statement from the U.S. Trade Representative's office said the U.S. and China have made progress toward finalizing a phase one trade deal.

The statement was released by the USTR following a phone call between U.S. Trade Representative Robert Lighthizer, Treasury Secretary Steven Mnuchin and Chinese Vice Premier Liu He.

"They made headway on specific issues and the two sides are close to finalizing some sections of the agreement," the USTR said. "Discussions will go on continuously at the deputy level, and the principals will have another call in the near future."

On the U.S. economic front, revised data released by the University of Michigan showed consumer sentiment improved by slightly less than initially estimated in the month of October.

The report said the consumer sentiment index for October was downwardly revised to 95.5 from the preliminary reading of 96.0. Economists had expected the index to be unrevised.

Despite the downward revision, the consumer sentiment index for October was still up from the final September reading of 93.2.

"Sentiment was insignificantly below the mid month level, with the small loss spread over most components of the Index," said Surveys of Consumers chief economist Richard Curtin.

He added, "The overall level of consumer confidence has remained quite favorable and largely unchanged during the past few years."


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Crude Oil Prices Extend Recent Upward Trend

Trading 26 oct 2019 Commentaire »

Extending the upward trend seen over the past few sessions, the price of crude oil moved moderately higher during trading on Friday.

Crude oil for December delivery rose $0.43 to $56.66 a barrel, ending the session at its best closing level in a month.

The increase by the price of crude oil came after a statement from the U.S. Trade Representative's office said the U.S. and China have made progress toward finalizing a phase one trade deal.

The statement was released by the USTR following a phone call between U.S. Trade Representative Robert Lighthizer, Treasury Secretary Steven Mnuchin and Chinese Vice Premier Liu He.

"They made headway on specific issues and the two sides are close to finalizing some sections of the agreement," the USTR said. "Discussions will go on continuously at the deputy level, and the principals will have another call in the near future."

On the U.S. economic front, revised data released by the University of Michigan showed consumer sentiment improved by slightly less than initially estimated in the month of October.

The report said the consumer sentiment index for October was downwardly revised to 95.5 from the preliminary reading of 96.0. Economists had expected the index to be unrevised.

Despite the downward revision, the consumer sentiment index for October was still up from the final September reading of 93.2.

"Sentiment was insignificantly below the mid month level, with the small loss spread over most components of the Index," said Surveys of Consumers chief economist Richard Curtin.

He added, "The overall level of consumer confidence has remained quite favorable and largely unchanged during the past few years."


The material has been provided by InstaForex Company - www.instaforex.com

Gold Prices Pull Back Near Unchanged Line After Seeing Initial Strength

Trading 26 oct 2019 Commentaire »

After seeing initial strength, gold prices pulled back near the unchanged line over the course of the trading session on Friday.

Gold for December delivery ended the day up just $0.60 at $1,505.30 an ounce after reaching an intraday high of $1,520.90 an ounce.

The precious metal's appeal as a safe haven waned after a statement from the U.S. Trade Representative's office said the U.S. and China have made progress toward finalizing a phase one trade deal.

The statement was released by the USTR following a phone call between U.S. Trade Representative Robert Lighthizer, Treasury Secretary Steven Mnuchin and Chinese Vice Premier Liu He.

"They made headway on specific issues and the two sides are close to finalizing some sections of the agreement," the USTR said. "Discussions will go on continuously at the deputy level, and the principals will have another call in the near future."

On the U.S. economic front, revised data released by the University of Michigan showed consumer sentiment improved by slightly less than initially estimated in the month of October.

The report said the consumer sentiment index for October was downwardly revised to 95.5 from the preliminary reading of 96.0. Economists had expected the index to be unrevised.

Despite the downward revision, the consumer sentiment index for October was still up from the final September reading of 93.2.

"Sentiment was insignificantly below the mid month level, with the small loss spread over most components of the Index," said Surveys of Consumers chief economist Richard Curtin.

He added, "The overall level of consumer confidence has remained quite favorable and largely unchanged during the past few years."


The material has been provided by InstaForex Company - www.instaforex.com

Treasuries Come Under Pressure Amid Progress In U.S.-China Trade Talks

Trading 26 oct 2019 Commentaire »

After initially showing a lack of direction, treasuries slid more firmly into negative territory over the course of the trading day on Friday.

Bond prices moved roughly sideways in afternoon trading, stuck in the red. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, rose by 3.5 basis points to 1.801 percent.

With the increase on the day, the ten-year yield closed above 1.8 percent for the first time in well over a month.

Treasuries came under pressure after a statement from the U.S. Trade Representative's office said the U.S. and China have made progress toward finalizing a phase one trade deal.

The statement was released by the USTR following a phone call between U.S. Trade Representative Robert Lighthizer, Treasury Secretary Steven Mnuchin and Chinese Vice Premier Liu He.

"They made headway on specific issues and the two sides are close to finalizing some sections of the agreement," the USTR said. "Discussions will go on continuously at the deputy level, and the principals will have another call in the near future."

On the U.S. economic front, revised data released by the University of Michigan showed consumer sentiment improved by slightly less than initially estimated in the month of October.

The report said the consumer sentiment index for October was downwardly revised to 95.5 from the preliminary reading of 96.0. Economists had expected the index to be unrevised.

Despite the downward revision, the consumer sentiment index for October was still up from the final September reading of 93.2.

"Sentiment was insignificantly below the mid month level, with the small loss spread over most components of the Index," said Surveys of Consumers chief economist Richard Curtin.

He added, "The overall level of consumer confidence has remained quite favorable and largely unchanged during the past few years."

The Federal Reserve's monetary policy decision is likely to be in focus next week, with CME Group's FedWatch tool currently indicating a 93.5 percent chance of another quarter point interest rate cut.

The monthly jobs report is also likely to attract some attention along with reports on third quarter GDP, personal income and spending and manufacturing activity.


The material has been provided by InstaForex Company - www.instaforex.com