Analytics and trading signals for beginners. How to trade EUR/USD on September 8? Getting ready for Tuesday session

Trading 07 sept 2020 Commentaire »

Hourly chart of the EUR/USD pair

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The EUR/USD pair moved down on Monday, September 7, as we expected in the morning. The MACD indicator turned down, this moment is marked in the illustration with two circles. However, after a sell signal was generated, the EUR/USD pair managed to go down by as much as 20 points... Actually, we also warned about this in the morning, when we said that volatility might be low today. In practice, this is exactly what happened. From the high to the low of the day, the pair passed only 36 points at the time of this writing. This is an ultra low value. Thus, the technical picture has not changed at all during the day. The pair's quotes may continue to fall towards the target support level of 1.1790, which is the lower border of the small side channel, only 75 points wide. The price has been trading within this channel for the third consecutive day and can not leave its limits. Thus, at this time, novice traders can only attempt to reach the lower border of this channel, we do not expect other signals to form in the next few hours.

Everything that concerns the fundamental background, about news and economic reports, was already mentioned in the morning. Since no event was planned to date, market participants had nothing to react to during the day. Therefore, low volatility was partly low due to lack of data. There were also no important news and messages from the US. The country is preparing for elections, for the debate between Donald Trump and Joe Biden, as well as for the vaccination of the population against coronavirus, using a vaccine that has not yet passed all clinical trials. We can only take note of the drop in the number of new COVID-19 cases, which is good news for everyone: epidemiologists, doctors, the government, Trump, Jerome Powell and others. However, the victory is insignificant so far, so the US dollar is not getting strong support. In general, the economic situation in the United States remains rather difficult, so it is difficult for the dollar to find support from market participants.

We can expect few macroeconomic data on September 8, Tuesday. Perhaps we can recommend novice traders to only pay attention to the eurozone's GDP report for the second quarter. This indicator was already published a month ago, but it has several estimates. That is, its meaning is reviewed every month. Thus, tomorrow's report may be better than the previous month. The forecasts, however, completely coincide with the value of the previous month. -12.1% q/q and 15% y.y. If there are no improvements, the US dollar will be able to sustain its moderate growth (downward movement of the euro/dollar pair).

Possible scenarios for September 8:

1) We do not recommend novice traders to place buy positions at this time, since the pair has settled below the upward trend line, so now it has changed to a downward trend. There are currently no signals or technical patterns that support the upward trend. It will be possible to start working for an increase if the price settles above the side channel, but this is unlikely to happen before tomorrow morning.

2) Sell positions continue to look more relevant despite the fact that the pair is currently inside the side channel. Nevertheless, in the morning, traders can open sell positions while aiming for 1.1790 on a signal from MACD. Since the movement is very weak, you can even set the Stop Loss level to zero and Take Profit around 1.1790 and not monitor the trade. In the morning, we propose to re-evaluate the technical picture and then choose a new trading strategy for the day.

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 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

*Mauritius August CPI Inflation 1.5%, Same As In July

Trading 07 sept 2020 Commentaire »

Mauritius August CPI Inflation 1.5%, Same As In July


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

Macedonia Economy Shrinks 12.7% In Q2

Trading 07 sept 2020 Commentaire »

Macedonia's economy shrank sharply in the second quarter as domestic demand declined amid the coronavirus, or Covid-19, pandemic, preliminary data from the State Statistical Office showed on Monday.

Gross domestic product decreased 12.7 percent year-on-year following a 0.2 percent increase in the first quarter. In the second quarter of 2019, the economy expanded 3.4 percent.

Investments slumped 25.6 percent and household consumption decreased 11.6 percent.

Exports dropped 31.3 percent and imports declined 29.6 percent.

Separately, the statistical office reported that the consumer price inflation accelerated to 1.5 percent in August from 1.3 percent in July. Prices rose 0.5 percent from July, when they decreased 0.2 percent.


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

*Spain August Consumer Confidence 49.9 Vs. 53.1 In July: Reports

Trading 07 sept 2020 Commentaire »

Spain August Consumer Confidence 49.9 Vs. 53.1 In July: Reports


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Canadian Dollar Drops On Falling Oil Prices

Trading 07 sept 2020 Commentaire »

The Canadian dollar fell against its major counterparts in the European session on Monday amid lower oil prices, as Saudi Arabia slashed prices for oil supply to Asia to boost demand.

Crude for October delivery declined $0.58 to $39.19 per barrel.

State oil producer Saudi Aramco cut its October official selling price for shipments to Asia by 50 cents a barrel against the regional benchmark.

The company also lowered prices to the U.S. and the Europe.

Chinese crude imports fell for a second month in August after hitting a record high in June.

China's crude imports dropped to 11.18 million barrels per day from 12.08 mn b/d in July.

The loonie dropped to 80.98 against the yen and 1.3116 against the greenback, down from its early highs of 81.40 and 1.3050, respectively. The next likely support for the loonie is seen around 78.00 against the yen and 1.34 against the greenback.

The loonie fell to 1.5524 against the euro, from a 4-day high of 1.5448 seen at 5:45 pm ET. On the downside, 1.58 is possibly seen as the next support level for the loonie.

Survey data from Sentix showed that Eurozone investor confidence improved to the highest since February as the economy continued to recover from the coronavirus induced slump.

The investor confidence index rose to -8.0 in September from -13.4 in August. This was the fifth successive increase and reached its highest level since February.

The loonie hit a 4-day low of 0.9550 against the aussie, after rising to 0.9505 at 5:00 pm ET. The loonie is likely to face support around the 0.98 region.

Data from ANZ showed that Australia's job advertisement grew at a much slower pace in August.

Job ads increased 1.6 percent month-on-month in August, after a 19.1 percent rise in July.

U.S. markets are closed for Labor Day holiday.


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

Ireland Manufacturing Output Rises For Second Month

Trading 07 sept 2020 Commentaire »

Ireland's manufacturing output rose for the second straight month in July, albeit at a softer pace, figures from the Central Statistics Office showed on Monday.

Manufacturing output rose 8.8 percent month-on-month in July, after a 14.3 percent increase in June.

Industrial production increased 8.3 percent monthly in July, after an 13.7 percent rise in the previous month.

Production of other food products and food products registered the biggest output growth of 45.3 percent and 29.7 percent, respectively.

On an annual basis, manufacturing output grew 13.4 percent in July, after a 5.3 percent increase in the previous month.

Industrial production rose 12.9 percent year-on-year in July, after a 5.0 percent rise in the previous month.

Data also showed that the industrial turnover fell 1.0 percent monthly in July and gained 9.5 percent from a year ago.


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

Taiwan Trade Surplus Rises In August

Trading 07 sept 2020 Commentaire »

Taiwan's trade surplus increased in August as both exports and imports rose strongly, figures from the Ministry of Finance showed on Monday.

The trade surplus increased to US$6.466 billion in August from US$6.012 billion last year. Economists had expected a surplus of $5.80 billion. In July, the trade surplus was $5.369 billion.

Exports rose 8.3 percent year-on-year in August, following a 0.4 percent rise in July. Economists had expected a rose 1.6 percent.

Imports grew 8.5 percent annually in August, after a 6.8 decrease in the preceding month. Economists had forecast a rise of 0.7 percent.

Exports of parts of electronic products, information, communication and audio-video products grew in August, while those of base metals and related products, machinery, plastics and rubber, and related articles declined.

Imports of parts of electronic product, machinery, chemicals, information, communication and audio-video products gained in August, while those of mineral products decreased.

Exports to Mainland China and Hong Kong and U.S.A. increased, while shipments to ASEAN, Japan and Europe declined in July.

In the January to August period, exports rose 1.5 percent, while imports fell 0.1 percent from a year ago.


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

Czech Industrial Production Decline Slows In July

Trading 07 sept 2020 Commentaire »

The Czech Republic's industrial production decreased at a softer pace in July, data from the Czech statistical office showed on Monday.

Industrial production declined a working-day adjusted 5.0 percent year-on-year in July, following a 10.5 percent fall in June. Economists had forecast a 7 percent decline.

Manufacturing output declined 5.0 percent yearly in July.

Mining and quarrying output decreased 25.4 percent, while electricity, gas, steam and air conditioning rose 0.4 percent.

On a monthly basis, industrial production rose a seasonally adjusted 5.7 percent in July.

Industrial new orders decreased 3.6 percent year-on-year in June.

Separate data from the statistical office showed that the construction output decreased a working-day adjusted 10.4 percent annually in July.

On a seasonally adjusted basis, construction output rose 0.8 percent monthly in July.

Another report from the Czech statistical office showed that the trade balance registered a surplus of CZK 13.418 billion in July versus a deficit of CZK 1.743 billion in the same month last year. Economists had forecast a surplus of CZK 2.8 billion.

In June, the trade surplus was CZK 35.219 billion.

Exports declined 1.1 percent annually in July and imports fell 6.2 percent.

On a monthly basis, seasonally adjusted exports and imports rose by 4.9 percent and 5.8 percent, respectively, in July.


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

Ireland Enters Recession In Q2

Trading 07 sept 2020 Commentaire »

Ireland's economy entered a recession in the second quarter due to the restrictions related to the coronavirus pandemic, the Central Statistics Office reported Monday. Gross domestic product fell 6.1 percent sequentially, after shrinking 2.1 percent in the first quarter.

This was the second consecutive fall in GDP and also the biggest contraction since 2008.

On the expenditure-side, personal consumption of goods and services plunged 19.6 percent, while government spending grew 7.5 percent. Capital investment contracted 67.4 percent.

Final domestic demand declined 46.9 percent mainly due to the significant covid-19 related decline in personal spending.

Due to the substantial fall in imports of intellectual property products, overall imports fell 35.5 percent and exports were down 3.1 percent.

On a yearly basis, GDP dropped 3 percent in the second quarter.

The current account of the balance of payments recorded a surplus of EUR 11.7 billion, or equivalent to 14.1 percent of GDP. In the same period last year, the deficit was EUR 32.6 billion.

Another report from the statistical office showed that industrial production grew 8.8 percent on month in July, taking the annual growth to 13.4 percent.


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

*Macedonia Q2 GDP -12.7% Y/Y Vs. +0.2% In Q1

Trading 07 sept 2020 Commentaire »

Macedonia Q2 GDP -12.7% Y/Y Vs. +0.2% In Q1


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