*Euro Rises To 8-day High Of 126.17 Versus Yen

Trading 10 sept 2020 Commentaire »

Euro Rises To 8-day High Of 126.17 Versus Yen


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*ECB Maintains 2020 Eurozone Inflation Projection Steady At 0.3%

Trading 10 sept 2020 Commentaire »

ECB Maintains 2020 Eurozone Inflation Projection Steady At 0.3%


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Analytics and trading signals for beginners. How to trade EUR/USD on September 11. Analysis of Thursday deals. Getting ready

Trading 10 sept 2020 Commentaire »

EUR/USD hourly chart

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On Thursday, September 10, EUR/USD broke below the descending channel right after our morning publication. We recommended buying the euro with the targets at 1.1877 and 1.1903. Both targets were tested during the day, so novice traders could have earned from 40 to 65 pips. Congratulations! At the moment, the price has tested the upper boundary of the flat channel and rebounded from it. Therefore, we expect the pair to resume the downtrend. The sideways channel of 1.17 - 1.19 is still in place, and the quotes have been stuck there for month and a half. Thus, we now expect a downward movement. Unfortunately, it is not possible to see the formation of new trend lines or channels at this time. Therefore, you will have to trade for some time, watching closely for buy and sell signals.

The fundamental background was quite important today. However, the reaction of the market was unexpectedly opposite to the decisions taken by the ECB. In fact, the European Central Bank made no decisions at all. The rates remained unchanged, the QE and PEPP programs, which stimulate the economy, implying buybacks from the open market and flooding the economy with cash, also did not change. Moreover, there was not even a hint that something will change in the future. Even so, this would be a bearish factor for the pair. Besides, there was nothing optimistic about Christine Lagarde's speech. The ECB President said that monetary policy will remain "soft" for a long time, as inflation is now at a very low level, and it is still very far from a full economic recovery. The only positive thing was an improved outlook for GDP for 2020 which is seen at -8%. However, these estimates can be hardly called optimistic. Thus, according to the fundamental background, there were simply no reasons for buying the euro today. But such situations sometimes happen in the foreign exchange market. That is why we believe that later on Thursday and on Friday morning we will witness a downward movement simply because the euro was overrated.

On Friday, Germany and the United States will publish Consumer Price Index for August. While the data from Germany is not so important for us, the data on the US inflation rate may affect the euro/dollar trajectory. A better-than-expected reading will push the US dollar higher. If the report turns out to be worse than forecasted, then the euro may advance on the last trading day of the week.

Possible scenarios for September 11

1) Beginners are not recommended to open buy deals at this time, as the price hit the upper boundary of the channel at 1.1903, but failed to break above it. Therefore, further uptrend is very unlikely. Also, there is currently no pattern supporting the bullish trend.

2) Sell positions look more relevant at the moment, despite the fact that the pair went considerably higher during the day. However, the rebound from the level of 1.1903 signals a new round of the downward movement to the lower boundary of the 1.17-1.19 flat channel. We would recommend placing short positions amid the fall in price. Yet, you should have entered the market a little earlier at the time of the rebound from 1.1903. Therefore, it might be better to wait until the morning and make a new assessment of the current market situation.

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 economic calendar can seriously influence the trajectory of a currency pair. Therefore, at the time of their release, we recommend trading as carefully as possible or exit the market in order to avoid sharp price fluctuations.

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

Ichimoku cloud indicator Daily analysis of Gold for September 10, 2020

Trading 10 sept 2020 Commentaire »

Gold price continues to bounce off the key cloud support at $1,900. Price has now reached $1,960 and is challenging key resistance. Gold price has moved above the tenkan-sen indicator and is challenging the kijun-sen.

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Gold price remains above the Daily Kumo. This is bullish. Price has now recaptured the tenkan-sen and is challenging the kijun-sen. A bullish signal will be given once price breaks above the kijun-sen and specially if the tenkan-sen (red line indicator) crosses above the kijun-sen (yellow line indicator). Support remains at $1,900 but the cloud has now risen to $1,925. So breaking below $1,925 could lead to more downside so traders need to extra cautious as long as price does not recapture $1,990. If bulls recapture $1,990 then we can forget the scenario for a short-term pull back below $1,900.The material has been provided by InstaForex Company - www.instaforex.com

EURUSD bounces off channel support

Trading 10 sept 2020 Commentaire »

EURUSD has held above 1.1750 support. Price is still inside the bullish channel. Price is bouncing off the key support we mentioned in previous analysis and our bullish trade plan is so far working nicely.

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Blue lines - bullish channel

Pink line - support trend line

Green rectangle- target as long as price is inside channel

EURUSD is bouncing strongly towards 1.19. Today's low at 1.1799 is important as bulls do not want to see price break below it. Trend remains bullish and so do we as price is still inside the channel. Our stop is raised from 1.1750 to 1.1790. Resistance is at 1.1920 and bulls want to see price recapture that level. This will give boost towards 1.20 and higher.

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

USDCAD back tests break out area

Trading 10 sept 2020 Commentaire »

USDCAD as expected is back testing the break out area at 1.3150. Price is expected to bounce from current levels towards 1.3350-1.34. Bulls need to hold above the broken bearish channels in order for this upward move to continue higher.

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Blue lines - bearish short-term channel

Red lines - bearish medium-term channel

Pink line - expected move

USDCAD is most probably forming another higher low in the new sequence that started at 1.30. Price has broken above the bearish channels and this is big news for bulls. Continuing the move of higher highs and higher lows is important for our target of 1.3350-1.34. Support is at 1.3130. Our trading plan remains the same. We are bullish as long as price is above 1.31.

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Comprehensive analysis of the main currency pairs EUR/GBP & EUR/JPY & GBP/JPY (Daily) on September 11, 2020

Trading 10 sept 2020 Commentaire »

Minor operational scale (Daily)

How will the main currency pairs interact with each other? Options for the development of the movement of EUR/JPY & GBP/JPY (H4) on September 11, 2020.

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Euro vs Great Britain pound

The movement of the "main" cross-instrument EUR/GBP from September 11, 2020 will occur depending on the development and direction of the breakdown of the boundaries of the equilibrium zone (0.9115 - 0.9185 - 0.9260) of the Minute operational scale fork - details of working out the specified levels of the equilibrium zone are shown on the animated chart.

A breakdown of the resistance level of 0.9260 at the upper border of the ISL61.8 balance zone of the Minute operational scale forks will make it relevant to continue the development of the EUR/GBP movement to the warning line UWL61.8 (0.9320) of the Minor operational scale forks and it will be possible to update the local maximum of 0.9498 if it breaks through.

If the lower boundary of ISL38.2 is broken through the equilibrium zone of the Minute operational scale fork - support level of 0.9115 - a downward movement of the "main" cross-instrument may develop towards the targets:

  • 1/2 Median Line Minor (0.9065);
  • initial line SSL (0.9045) of the Minor operational scale fork;
  • lower border of the channel 1/2 Median Line Minor (0.8935);
  • initial line SSL Minute (0.8905);
  • control line LTL Minute (0.8885);
  • local minimum 0.8865;
  • with the prospect of reaching the level of 0.8670.

Details of the EUR/GBP movement since September 11, 2020 are shown on the animated chart.

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Euro vs Japanese yen

The development of the movement of the EUR/JPY cross-instrument from September 11, 2020 will proceed taking into account the development and direction of the breakdown of a fairly wide range:

  • resistance level of 126.35 - the final FSL line of the Minor operational scale fork;
  • support level of 125.20 - the upper border of the channel 1/2 Median Line of the Minute operational scale fork.

In case of breakdown of the resistance level 126.35 on the final FSL line of the Minor operational scale fork, the movement of EUR/JPY will be directed to the levels:

  • 126.75 - SSL Minute initial line;
  • 127.04 - local maximum;
  • 127.45 - UTL Minute control line;
  • with the prospect of reaching the warning lines - UWL38.2 (128.35) and UWL61.8 (129.60) - of the Minor operational scale fork.

The breakdown of the support level of 125.20 will determine the development of the movement of this cross-instrument in the 1/2 Median Line channel (125.20 - 124.63 - 124.00) of the Minute operational scale fork, and in case of a breakdown of the lower boundary (124.00) of this channel, the downward movement can be continued to the boundaries of the equilibrium zones of the operational scales - Minute (123.10 - 121.95 - 120.80) and Minor (122.60 - 121.45 - 120.25).

We look at the EUR/JPY movement options from September 11, 2020 on an animated chart.

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Great Britain pound vs Japanese yen

From September 11, 2020, the movement of the GBP/JPY cross-instrument will also develop depending on the development and direction of the range breakdown:

  • resistance level of 137.75 - the lower border of the channel 1/2 Median Line of the Minute operational scale fork;
  • support level of 136.70 - the upper border of ISL38.2 of the equilibrium zone of the Minute operational scale fork.

In case of a breakdown of the resistance level of 137.75, the movement of GBP/JPY will continue in the 1/2 Median Line channel (137.75 - 138.90 - 139.95) of the Minute operational scale fork, the breakdown of the upper border (139.95) of this channel will make the continuation of the upward movement of this cross-instrument to the targets:

  • SSL Minute initial line (141.95);
  • local maximum 142.69;
  • control line UTL Minute (143.25);
  • with the prospect of reaching the final Shiff Line Minor (144.77) and the lower boundary ISL38.2 (145.30) of the balance zone of the Minor operational scale.

The breakdown of ISL38.2 Minute - support level of 136.70 - followed by breakdown of level 136.15 - a variant of the development of the GBP/JPY movement within the equilibrium zone (136.70 - 134.85 - 133.05) of the Minute operational scale fork and the 1/2 Median Line channel (136.15 - 133.50 - 130.70 ) of the Minor operational scale fork with the prospect of reaching the warning line LWL38.2 Minor (128.95).

For details of the development of the GBP/JPY movement from September 11, 2020, see the animated chart.

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The review is compiled without taking into account the news background, the opening of trading sessions of the main financial centers and is not a guide to action (placing "sell" or "buy" orders).

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

September 10, 2020 : EUR/USD daily technical review and trade recommendations.

Trading 10 sept 2020 Commentaire »

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The EUR/USD pair has been moving sideways within the depicted expanding channel since August 3.

Previously, a temporary resistance level was formed around 1.1900 which prevented further upside movement for and forced the pair to have a downside pause for sometime.

On August 31, the EURUSD pair achieved another breakout above the previously mentioned resistance zone.

Significant SELLING pressure was applied around 1.2000 where the upper limit of the movement pattern came to meet the pair.

Recently, the EUR/USD pair has demonstrated a quick bearish decline towards 1.1800. More downside movement was expected towards the lower limit of the movement pattern around 1.1770-1.1750 where a valid BUYING opportunity was suggested.

As expected, a valid BUYING position was offered. Significant movement to the upside was demonstrated. Initial target would be located around 1.1900 where price action should be watched.

A breakout above 1.1920 (76.4% Fibonacci Level) will probably enable further upside movement towards the price zone of 1.1960-1.1980.

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

September 10, 2020 : EUR/USD Intraday technical analysis and trade recommendations.

Trading 10 sept 2020 Commentaire »

analytics5f5a3e96c6101.jpgThe EURUSD pair has failed to maintain enough bearish momentum below 1.1150 (consolidation range lower zone) to enhance further bearish decline.

Instead, bullish breakout above 1.1380-1.1400 has lead to a quick bullish spike directly towards 1.1700 which failed to offer sufficient bearish pressure.

Bullish persistence above 1.1700-1.1760 favored further bullish advancement towards 1.1975 where some considerable bearish rejection has been demonstrated.

The price zone around 1.1975-1.2000 ( upper limit of the technical channel ) remains a strong SUPPLY-Zone to be watched for bearish reversal.

However, Conservative traders should be waiting for bearish closure below 1.1700 - 1.1750.

As this indicates lack of bullish momentum and enhances further bearish decline initially towards 1.1645 and 1.1600.

Trade recommendations :

Conservative traders should wait for the current bullish movement to get back below 1.1750 as an indicator for lack of bearish momentum for a valid SELL Entry.T/P levels to be located around 1.1645, 1.1600 and 1.1500 while S/L to be placed above 1.1860 to minimize the associated risk.

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September 10, 2020 : GBP/USD Intraday technical analysis and trade recommendations.

Trading 10 sept 2020 Commentaire »

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Intermediate-term technical outlook for the GBP/USD pair has remained bullish since bullish persistence was maintained above 1.2780 (Depicted KeyLevel) on the H4 Charts.

On the other hand, the GBPUSD pair looked overbought after such a quick bullish movement while approaching the price level of 1.3475.

That's why, short-term bearish reversal was expected especially after bearish persistence was achieved below the key-level level of 1.3300.

A quick bearish decline towards 1.2900 where significant bullish recovery was recently expressed.

The price zone of 1.3130-1.3150 (the backside of the broken trend) remains an Intraday Key-Zone to offer bearish pressure if retested again soon.

However, the GBPUSD pair is showing lack of sufficient bullish momentum to pursue above the price level of 1.3000. That's why, bearish persistence below 1.3000 will probably enable further bearish decline initially towards 1.2800 where price action should be watched again

Trade recommendations :

Conservative traders are advised to wait for bullish pullback towards 1.3130-1.3150 (the backside of the broken trend) as a valid SELL Entry.

Initial T/p level is to be located around 1.3050 and 1.2900 if sufficient bearish pressure is maintained. On the other hand, bullish persistence above 1.3200 invalidates this trading scenario.

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