Ichimoku cloud indicator Daily analysis of USDJPY

Trading 03 fév 2020 Commentaire »

USDJPY has provided us with another bearish signal in the Daily chart by breaking below the Daily Kumo. Price is now bouncing again towards the Kumo and it is important to see if price gets rejected or re-enters the cloud.

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USDJPY is in bearish daily trend. Price is below both the tenkan- and kijun-sen indicators and most importantly price is below the Kumo (cloud). Price is back testing the cloud which is now resistance. If price gets rejected and the tenkan-sen (red line indicator) crosses below the kijun-sen (yellow line indicator) we will get a confirmed bearish signal by the indicator. The Chikou span has already broken below the candlesticks and is challenging cloud support. 108 is key support and the area of 108.80-109.10 is key resistance. Trade accordingly.The material has been provided by InstaForex Company - www.instaforex.com

Short-term technical analysis on EURUSD

Trading 03 fév 2020 Commentaire »

EURUSD got rejected at the important junction at 1.11. Price has bounced and reached our 1.11 target and bears are happier now as price is pulling back after the rejection. Bulls want to see price make a higher low and resume the uptrend above 1.11 which remains key resistance.

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Red line -resistance

Green line -resistance

EURUSD has made a sharp pull back towards 1.1036 after reaching our short-term target. At 1.1030 we find the 61.8% Fibonacci retracement of the upward move from 1.0990 to the recent highs. If price continues lower towards 1.1030 and below, then we believe there chances of breaking below 1.0990 towards 1.09 are high. If on the other hand bulls manage to hold above 1.1030 and break above 1.11, we should expect to see 1.12 fast. Resistance at 1.11 is key. This is the time to be bullish again with 1.1030 as stop. If you do not like this risk return one should remain bearish as long as price is below 1.11.

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

Ichimoku cloud indicator Daily analysis of Gold

Trading 03 fév 2020 Commentaire »

Gold price managed to make another higher high today at $1,592 but price is pulling back down. Price remains inside the short-term bullish channel. Bulls need to overcome the bearish divergence warning signals and provide a strong upward break out above $1,600.

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Green lines- bullish channel

Gold price is bouncing once again off the lower channel boundary. Trend remains bullish. There is bearish divergence in the 4 hour chart but this is only a warning. Support is at $1,569-67 and as long as price is above this level, bulls remain in full control of the trend.

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In Ichimoku cloud terms, trend remains bullish. Price has pulled back towards the tenkan-sen (red line indicator) and so far is respecting it (support by tenkan-sen at $1,570). As long as the daily close is above $1,570 trend is clearly bullish. A close below it will open the way for a pull back towards $1,550 and maybe even towards the Kumo. So the area of $1,570-67 is key for the short-term trend.The material has been provided by InstaForex Company - www.instaforex.com

GBPUSD challenging major support

Trading 03 fév 2020 Commentaire »

GBPUSD despite making a higher high yesterday at 1.3209 is under heavy pressure today and is challenging important support levels. A move below 1.30-1.2970 would open the way for a move towards 1.27-1.25 area so this is a critical support level.

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Green line - support trend line

The green trend line support has been a confirmed support level so many times over the past weeks. Today's bearish reversal candle leaves little hopes for holding above the trend line. However we still remain above it, confirming the importance of the trend line. My target is at 1.2745 and next at 1.2550 if we see a break of this support trend line.

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

USDCAD reaches our second target

Trading 03 fév 2020 Commentaire »

USDCAD has reached today our second target of 1.3275 and has already broken above it and above an important downward sloping trend line resistance. This bullish signal could imply more upside in USDCAD.

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Green line -resistance trend line

Since January 18th we have pointed out the bullish flag pattern in USDCAD and the two Fibonacci targets. Price has not only reached our second target, it has now broken above the downward sloping resistance trend line. A back test on the upper side of the trend line is expected as a confirmation of the break out. So a pull back is expected. Bulls would want this pull back to be followed by a strong bounce that would provide a higher high afterwards. Bulls do not want to see price pull back below the green line and stay below it. Support is between 1.3240 and 1.3190. I expect more upside in this pair and consider any pull back as a buying opportunity.

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

U.S. Construction Spending Unexpectedly Dips 0.2% In December

Trading 03 fév 2020 Commentaire »

After reporting a bigger than expected increase in U.S. construction spending in the previous month, the Commerce Department released a report on Monday showing construction spending unexpectedly edged lower in the month of December.

The Commerce Department said construction spending dipped by 0.2 percent to an annual rate of $1.328 trillion in December after climbing by 0.7 percent to a revised rate of $1.330 trillion in November.

The modest pullback came as a surprise to economists, who had expected construction spending to increase by 0.5 percent.

With the unexpected decrease, construction spending pulled back off the more than one-year high reached in the previous month.

Spending on private construction edged down by 0.1 percent to a rate of $991.2 billion, as a 1.4 percent jump in spending on residential construction was more than offset by 1.8 percent slump in spending on non-residential construction.

The report said spending on public construction also fell by 0.4 percent to a rate of $336.4 billion, with the decrease partly reflecting a 2.1 percent nosedive in spending on educational construction.

Meanwhile, the Commerce Department said the value of construction in 2019 was $1.304 trillion, 0.3 percent below the $1.307 trillion spent in 2018.


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U.S. Manufacturing Index Unexpectedly Indicates Expansion In January

Trading 03 fév 2020 Commentaire »

U.S. manufacturing activity unexpectedly expanded for the first time in several months in January, according to a report released by the Institute for Supply Management on Monday.

The ISM said its purchasing managers index surged up to 50.9 in January after slipping to a revised 47.8 in December, with a reading above 50 indicating growth in manufacturing activity.

Economists had expected the index to show a more modest increase to a reading of 48.5, which would have still indicated a contraction.

With the much bigger than expected increase, the index returned to expansion territory for the first time since July 2019.

The jump by the headline index came as the production index soared to 54.3 in January from 44.8 in December and the new orders spiked to 52.0 from 47.6.

The employment index also climbed to 46.6 in January from 45.2 in December, although the reading below 50 still points to a loss of manufacturing jobs.

On the inflation front, the prices index rose to 53.3 in January from 51.7 in December, indicating prices increased for the second straight month.

"Global trade remains a cross-industry issue, but many respondents were positive for the first time in several months," said Timothy R. Fiore, Chair of the ISM Manufacturing Business Survey Committee. "Overall, sentiment this month is moderately positive regarding near-term growth."

The ISM is scheduled to release a separate report on service sector activity in the month of January on Wednesday. The non-manufacturing index is expected to inch up to 55.1 in January from 55.0 in December.


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Dutch Manufacturing Contraction Slows In January

Trading 03 fév 2020 Commentaire »

The Netherlands manufacturing sector contracted at the softest pace in January, survey results from IHS Markit showed on Monday.

The NEVI manufacturing purchasing managers' index, or PMI, rose to 49.9 in January from 48.3 in December. Any reading below 50 indicates contraction in the sector.

Among the sub-sector level, both the intermediate and investment goods segments deteriorated in operating conditions, while consumer goods producers improved.

Production decreased for the fourth month in a row in January. Output and new orders declined further. Order book volumes declined at a weaker client demand.

Outstanding business deteriorated for the eleventh month in a row and the rate of backlog depletion slowed. The number of workforce increased in January.

Cost burdens increased for the second month in a row in January. The rate of price inflation accelerated and average selling prices rose solidly.

Confidence among the goods-producers for the next year outlook for output strengthened to the highest in fourteen month in January.


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

Greece Manufacturing Sector Strongest Since August

Trading 03 fév 2020 Commentaire »

Greece's manufacturing sector improved at the fastest pace in five months in January, survey results from IHS Markit showed on Monday.

The manufacturing purchasing managers' index, or PMI, rose to 54.4 in January from 53.9 in December. Any reading above 50 indicates expansion in the sector.

New business grew sharply in January and new export orders rose at the quickest rate since April as external demand increased.

The number of workforce increased at the strongest rate and the pace of employment growth quickened in January. The backlogs of work declined for the twelfth month in a row, as capacity pressure increased.

Cost pressures intensified as the rate of input price inflation accelerated in January and the pace of inflation was broadly in line with the long-run series trend. Factory-gate charges remained unchanged despite greater pressure on margins.

Purchasing activity rose as firms increased their efforts to accumulate raw materials and semi-finished items.

Stronger new order growth and hopes of greater investment, led to output expectations for the next year rising to the highest since July 2012, the survey reported.


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

*U.S. Construction Spending Dips 0.2% In December

Trading 03 fév 2020 Commentaire »

U.S. Construction Spending Dips 0.2% In December


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