Ichimoku cloud indicator Daily analysis of EURUSD for January 7, 2020

Trading 06 jan 2020 Commentaire »

EURUSD remains in a bullish trend continuing to make higher highs and higher lows. Price so far has respected the key Cloud support area of 1.1040-1.1050. Thus we continue to see more upside potential over the coming days.

analytics5e13acac0d971.png

Price has broken above the Kumo (cloud) and has so far successfully back tested support. Price bounced off the Cloud and this was another bullish signal. EURUSD is now trading above the tenkan-sen (red line indicator) while the kijun-sen is trending below tenkan-sen with a positive slope. With the tenkan-sen above the kijun-sen we have supporting evidence of a bullish trend. We continue to expect this next leg higher to move closer to 1.1280.The material has been provided by InstaForex Company - www.instaforex.com

Has Gold price topped?

Trading 06 jan 2020 Commentaire »

Gold price opened to new higher highs today above $1,560 and managed to climb all the way to $1,588. However the Daily candlestick implies that there are a lot of chances we have seen the top of this current upward move.

analytics5e13aab6a9cb8.png

Today's candlestick is an inverted bearish hammer or a topping tail candlestick pattern. With RSI and Stochs at overbought levels, with the rise almost parabolic since $1,470, I believe the chances for a top this Monday are high. Time for bulls to collect their profits and wait patiently to see the pull back if it will hold above $1,500.

analytics5e13ab964740b.png

Green lines - bearish divergence

Also taking a look at the weekly chart, we observe bearish divergence signs in the RSI. The last time we saw something similar, price fell more than $200. So this is something we should not ignore and come end of the week, if we are below $1,550 then we should expect more selling pressures to come.

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

Eurozone Investor Confidence Surges To Highest Since November 2018 – Sentix

Trading 06 jan 2020 Commentaire »

Eurozone investor confidence rose for third successive month in January, and at a faster-than-expected pace, to its highest level in over a year amid signs of an easing in the US-China trade dispute, survey data from the behavioral research institute Sentix showed on Monday.

The Sentix investor confidence index climbed to 7.6 points from 0.7 in January. Economists had forecast a score of 2.6.

The latest reading was the highest since November 2018.

"The riots surrounding the conflict between the US and Iran, which dominated the news at the end of the week, were either ignored by investors or are not considered to be crucial for the economy," the think tank said.

The improvement in sentiment continued despite the lack of any solid positive sign from the manufacturing sector.

The current situation index of the survey rose to 5.5 from -1, thus marking its strongest level since June. The expectations measure jumped to 9.8 from 2.5 to log it highest score since February 2018.

The survey also showed that Germany's investor confidence index climbed to its highest value since May 2019 and the current situation reading of 6 signaled that "the specter of recession seems to have been dispelled".

The three indexes for both Eurozone and Germany improved for a third straight month.

"The picture for the bond markets is darkening, although from the point of view of the investors surveyed by Sentix, the expansive central bank policy is still suppressing stronger upward trends in interest rates," the institute added.

The latest Sentix survey was conducted between January 2 and January 4 among 932 investors, of whom 241 were institutions.

Data for all regions of the world are improving, especially in Asia ex Japan, Sentix said.


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

Dollar Sell-off Accelerates On Heightened U.S.-Iran Tensions

Trading 06 jan 2020 Commentaire »

The U.S. dollar began the week on the back foot as geopolitical tensions between Iran and the U.S. flared up after Iran vowed to retaliate against Suleimani's death, and Donald Trump threatened to strike back in a disproportionate manner.

Tensions escalated over the weekend after Iran vowed to retaliate against U.S air strike last week and said that it will not abide by the uranium enrichment limits under the 2015 nuclear deal.

Trump also threatened sanctions against Iraq after its parliament called on U.S. forces to leave the country, amid a growing backlash over the U.S. killing of a top Iranian military commander.

He said that the United States will strike back in a disproportionate manner, if Iran strikes any U.S. person or target.

Global markets fell, while safe-haven assets such as gold and the yen climbed on concerns that Middle East tensions will hurt growth.

On the economic front, the IHS Markit will release the U.S. services PMI for December later in the day.

The currency showed mixed trading against its major counterparts in the Asian session. While it fell against the yen and the pound, it held steady against the franc and the euro.

The greenback declined to a 4-day low of 0.9684 against the franc from last week's closing value of 0.9722. The next possible support for the greenback is seen around the 0.95 mark.

The greenback weakened to 4-day lows of 1.1206 against the euro and 1.3175 against the pound, reversing from its early highs of 1.1157 and 1.3064, respectively. The greenback is likely to face support around 1.14 against the euro and 1.34 against the pound.

Pulling away from an early high of 1.2990 against the loonie, the greenback edged lower to 1.2964. If the currency drops further, it may challenge support around the 1.28 level.

The greenback came off from an early high of 0.6644 against the kiwi and fell to 0.6680. The greenback is seen finding support around the 0.68 level.

The U.S. currency was trading at 0.6947 a aussie, following an advance to 0.6932 in the previous session. The greenback is poised to find support around the 0.71 level.

In contrast, the greenback was trading at 108.11 versus the yen, after falling to 107.77 in the previous session, which was its weakest since October 10. The pair had ended last week's deals at 108.08.

The latest survey from Nikkei showed that Japan's manufacturing sector continued to contract in December, and at a faster rate, with a manufacturing PMI score of 48.4.

That's down from 48.9 in November and it moves further beneath the boom-or-bust line of 50 that separates expansion from contraction.

Looking ahead, Markit's U.S. final services PMI for December is set for release in the New York session.


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

Hungary Wage Growth Slows Slightly In October

Trading 06 jan 2020 Commentaire »

Hungary's average gross earnings growth slowed slightly in October, figures from the Hungarian Central Statistical Office showed on Monday.

Average gross earnings grew 11.6 percent year-on-year following an 11.8 percent increase in September. In August, earnings grew 11.5 percent.

The average gross earning rose to HUF 365,135 in October from HUF 360, 709 in September.

Net earnings annual growth also slowed to 11.6 percent from 11.8 percent in the previous month. Earnings climbed to HUF 242 815 from HUF 239 872 in the previous month.


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

January 6, 2020 : EUR/USD Intraday technical analysis and trade recommendations.

Trading 06 jan 2020 Commentaire »

analytics5e1364b819522.jpg

Since November 14, the price levels around 1.1000 has been standing as a significant DEMAND-Level which has been offering adequate bullish SUPPORT for the pair on two successive occasions.

Shortly-after, the EUR/USD pair has been trapped within a narrower consolidation range between the price levels of 1.1000 and 1.1085-1.1100 (where a cluster of supply levels and a Triple-Top pattern were located) until December 11.

On December 11, another bullish swing was initiated around 1.1040 allowing recent bullish breakout above 1.1110 to pursue towards 1.1175 within the depicted newly-established bullish channel.

Initial Intraday bearish rejection was expected around the price levels of (1.1175).

Quick bearish decline was demonstrated towards 1.1115 (Intraday Key-level) which got broken to the downside as well.

On December 20, bearish breakout of the depicted short-term channel was executed.

Thus, further bearish decline was demonstrated towards 1.1065 where significant bullish recovery has originated.

The recent bullish pullback towards 1.1235 (Previous Key-zone) was suggested to be watched for bearish rejection and another valid SELL entry.

Suggested bearish position is currently running in profits while moving below the broken demand-level of 1.1200.

Moreover, bearish persistence below 1.1175 allows next bearish target to be reached around 1.1120.

On the other hand, profit-taking is suggested to offset the associated risk.

Trade recommendations :

Conservative traders can consider the current bullish pullback towards the price level of (1.1200) as another valid SELL signal.

Bearish projection target to be located around 1.1120. Any bullish breakout above 1.1250 invalidates the mentioned bearish trade.

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

UK Service Sector Stabilizes In December

Trading 06 jan 2020 Commentaire »

The UK service sector stabilized at the end of the year, underpinned by a faster growth in new orders, survey results showed Monday.

The final IHS Markit/ Chartered Institute of Procurement & Supply services Purchasing Managers' Index improved to the neutral level of 50.0 from 49.3 a month ago. The reading was also above its flash of 49.0.

The stabilization of the service sector output was helped by a return to improving demand as new orders grew the most since last July.

Nonetheless, the domestic political uncertainty in the run up to the general election was the main factor weighing on new orders. Export sales slid for the fourth straight month.

Business optimism rebounded to the highest since September 2018 as service providers were hopeful that a more stable political backdrop will help to support business conditions.

Further, the improvement in business confidence lifted staffing levels. The latest upturn in employment was the fastest for five months.

Data signaled a strong increase in average cost burdens, with the rate of inflation picking up from the 39-month low seen in November. However, output price inflation eased to its weakest since February 2016.

The modest rebound in new work provides another signal that business conditions should begin to improve in the coming months, helped by a boost to business sentiment from greater Brexit clarity and a more predictable political landscape, Tim Moore, economics associate director at IHS Markit, said.

The survey showed that a stabilization of service sector activity was offset by a sharp and accelerated decline in manufacturing output.

The composite output index held steady at 49.3 in December. The latest reading was the joint-lowest since July 2016. However, the score was above the flash 48.5.

Capital Economics' economist Thomas Pugh said, "While it is probably too early to say that the worst is behind us, especially with the threat of something like a no deal Brexit at the end of the year, a boost in sentiment should support economic activity in the first half of 2020."


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

January 6, 2020 : GBP/USD Intraday technical analysis and trade recommendations.

Trading 06 jan 2020 Commentaire »

analytics5e135c44ea9c8.jpg

On December 12, the GBPUSD pair looked overpriced around the price levels of 1.3500 while exceeding the upper limit of the newly-established bullish channel.

On December 23, temporary bearish breakout below 1.3000 was demonstrated on the H4 chart.

However, earlier signs of bullish recovery manifested around 1.2900 denoted high probability of bullish breakout to be expected.

Thus, Intraday technical outlook turned into bullish after the GBP/USD has failed to maintain bearish persistence below the newly-established downtrend line.

That's why, bullish breakout above 1.3000 was anticipated. Thus, allowing the recent Intraday bullish pullback to pursue towards 1.3250 (the backside of the broken channel) where bearish rejection and another bearish swing were suggested for conservative traders in Last Week's previous articles.

Intraday bearish target remains projected towards 1.3000 and 1.2980 provided that the current bearish breakout below 1.3170 is maintained on the H4 chart.

Bearish breakdown below 1.2980 is mandatory to enhance further bearish decline towards 1.2900 where the backside of the previously-broken downtrend is located.

On the other hand, the current bullish pullback towards the depicted price zone (1.3170 - 1.3200) should be watched for bearish rejection and another valid SELL entry.

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

*U.S. Dollar Weakens To 0.6679 Against NZ Dollar

Trading 06 jan 2020 Commentaire »

U.S. Dollar Weakens To 0.6679 Against NZ Dollar


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

Hungary Producer Price Inflation Accelerates

Trading 06 jan 2020 Commentaire »

Hungary's producer price inflation accelerated in November, after slowing in the previous month, figures from the Hungarian Central Statistical Office showed on Monday. The total producer price index climbed 2.1 percent year-on-year following a 1.5 percent increase in October. In September, the measure rose 2.2 percent. The development of prices was influenced by changes in the world market prices of raw and base materials and by wage growth, the statistical office said. Domestic market prices increased 2.5 percent annually after a 1.7 percent rise in the previous month.

Prices of manufacturing, carrying a weight of 67 percent, rose by 3.4 percent and those of energy industry, with a weight of 28 percent, grew by 0.6 percent from a year ago. Prices for the foreign market climbed 1.9 percent year-on-year following a 1.4 percent climb in October.


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