Analytics and trading signals for beginners. How to trade EUR/USD on September 17? Getting ready for Thursday session

Trading 16 sept 2020 Commentaire »

Hourly chart of the EUR/USD pair

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The EUR/USD pair corrected to the upward trend line, working it out from top to bottom, rebounding off it and resuming its downward movement. Thus, as we said in the morning, the pair corrected and moved down again with targets at the support levels of 1.1823 and 1.1800. The first goal was achieved, the second was not. However, novice traders could have earned 20-25 points on a sell signal from MACD at the moment. Now we recommend leaving the market, as it is impossible to predict how the market will react to the results of the Federal Reserve meeting and the speech of its chairman. It is always a surprise or "pig in a poke". Thus, it does not even make sense to predict in which direction the pair will move in an hour or two. The most important thing to note is that the pair remains in the sideways channel at 1.17-1.19, which we have already mentioned many times. If traders are overly disappointed by the evening events in the US, then the dollar may begin to fall in price, but is unlikely to go beyond the upper line of the side channel. Thus, even today, the pair's quotes are practically deprived of the opportunity to leave the side channel, in which they have been trading for a month and a half.

The background was quite interesting on Wednesday. In America, for example, a report on retail sales for August was published and it turned out that the indicator increased by 0.6%, which is below forecasts (+1.0%) and lower than the previous value (+1.2%). Excluding auto sales, retail sales rose 0.7%, also below forecasts and July figures. Nevertheless, the US currency strengthened in the afternoon, which makes it possible to conclude that market participants are fully focused on the forthcoming announcement of the results of the Fed meeting. As we said earlier, no one knows exactly what Federal Reserve Chairman Jerome Powell will announce and what his rhetoric will be. Therefore, we recommend that novice traders do not trade in the coming hours and wait until tomorrow morning.

The EU will publish inflation for August on Thursday, September 17. The euro may begin to exert pressure on itself after this report is released, since negative inflation or "deflation"may be recorded for the second consecutive month. Deflation, like hyperinflation, is a negative phenomenon for any economy. Especially for one recovering from one of the most serious crises in decades. Therefore, falling prices is a headache for the European Central Bank. It is possible that the ECB will have to stimulate the economy again in order to spur inflation. In general, this is an absolutely bearish factor for the euro. No major reports from America are scheduled for September 17.

Possible scenarios for September 17:

1) Novice traders are still recommended to not consider buying at this time, since the price failed to overcome the 1.1903 level once again, which is the upper line of the side channel. Therefore, the upward movement is canceled again. Also, there is not a single serious pattern that would support the upward trend now.

2) Selling still looks more attractive now, as traders have not overcome the 1.1903 level, and the price has settled below the uptrend line. Thus, novice traders can now place shorts, which can be left open until morning with targets of 1.1800 and 1.1761, while setting the Stop Loss level at breakeven in order to protect themselves from a possible sharp change in direction of movement, which is very likely. You can also close short positions at minimal profit and tomorrow morning a new market analysis deal.

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 (10,20,3) 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

*ECB's Schnabel: We Stand Ready To Act If Incoming Data Is Not Consistent With Objective Of Stimulus

Trading 16 sept 2020 Commentaire »

ECB's Schnabel: We Stand Ready To Act If Incoming Data Is Not Consistent With Objective Of Stimulus


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

U.S. Business Inventories Inch Up In Line With Estimates In July

Trading 16 sept 2020 Commentaire »

A report released by the Commerce Department on Wednesday showed a modest increase in U.S. business inventories in the month of July.

The Commerce Department said business inventories inched up by 0.1 percent in July after slumping by 1.1 percent in June. The uptick in inventories matched economist estimates.

The modest rebound in business inventories came as retail inventories jumped by 1.2 percent in July after tumbling by 2.7 percent in the previous month.

On the other hand, the report showed wholesale and manufacturing inventories fell by 0.3 percent and 0.5 percent, respectively.

The Commerce Department also said business sales surged up by 3.2 percent in July after soaring by 8.6 percent in June.

Manufacturing and wholesale sales both spiked by 4.6 percent during the month, while retail sales rose by 0.5 percent.

With the jump in sales far outpacing the uptick in inventories, the total business inventories/sales ratio slid to 1.33 in July from 1.37 in June.


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U.S. Homebuilder Confidence Unexpectedly Jumps To New Record High

Trading 16 sept 2020 Commentaire »

Reflecting historic traffic numbers, the National Association of Home Builders released a report on Wednesday showing homebuilder confidence jumped to a record high in September.

The report said the NAHB/Wells Fargo Housing Market Index shot up to 83 in September from 78 in August. Economists had expected the index to come in unchanged.

With the unexpected increase, the index rose to its highest level in the 35-year history of the series, surpassing the previous record high of 78 that was set last month and also matched in December 1998.

"The the suburban shift for home building is keeping builders busy, supported on the demand side by low interest rates," said NAHB Chief Economist Robert Dietz.

He added, "In another sign of this growing trend, builders in other parts of the country have reported receiving calls from customers in high-density markets asking about relocating."

The unexpected jump by the headline index came as the three component indexes also reached record highs in September.

The measure charting traffic of prospective buyers spiked to 73 from 64, the component measuring sales expectations in the next six months surged up to 84 from 78 and the index gauging current sales conditions climbed to 88 from 84.

However, NAHB Chairman Chuck Fowke noted many in the housing industry are worried about rising costs and delays for building materials, especially lumber.

"More domestic lumber production or tariff relief is needed to avoid a slowdown in the market in the coming months," Fowke said.

On Thursday, the Commerce Department is scheduled to release a separate report on new residential construction in the month of August.

Housing starts are expected to dip to an annual rate of 1.478 million in August after skyrocketing to a rate of 1.496 million in July.

Meanwhile, economists expect building permits, an indicator of future housing demand, to rise to a rate of 1.520 million after spiking to a rate of 1.495 million.


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

*U.S. Crude Oil Inventories Drop 4.4 Million Barrels In Week Ended 9/11

Trading 16 sept 2020 Commentaire »

U.S. Crude Oil Inventories Drop 4.4 Million Barrels In Week Ended 9/11


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

Gold Futures Extending Recent Gains As Dollar Slips

Trading 16 sept 2020 Commentaire »

Gold prices are modestly higher Wednesday morning as the dollar weakened further ahead of Federal Reserve's monetary policy announcement, due later in the day.

The dollar, which recovered in late afternoon trades on Tuesday after exhibiting weakness earlier, slid to 92.81 in the Asian session today. It edged up to 92.86 subsequently, but was still down more than 0.2% from previous close.

Gold futures for December were up $6.30 or 0.32% at $1,972.50 an ounce, after advancing to $1,978.00 an ounce earlier.

Silver futures were gaining $0.096 or 0.35% at $27.560 an ounce, while Copper futures were down $0.0060 or 0.21% at $3.0570 per pound.

The Fed is widely expected to leave interest rates unchanged. Markets are likely to pay close attention to any tweaks to the accompanying statement. The central bank's latest economic projections may also attract attention.


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

Ireland Residential Property Prices Drop In July

Trading 16 sept 2020 Commentaire »

Ireland's residential property prices declined in July, data from the Central Statistics Office showed on Wednesday.

Residential property price index declined 0.5 percent year-on-year in July, after remaining unchanged in June.

In the capital region Dublin, residential property prices declined 1.3 percent yearly in July. Excluding Dublin, residential property prices in Ireland rose 0.2 percent from the same period last year.

On a monthly basis, residential property prices rose 0.3 percent in July, after a 0.1 percent increase in the prior month.


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

South Africa Retail Sales Fall For Fourth Month

Trading 16 sept 2020 Commentaire »

South Africa's retail sales decreased for the fourth straight month in July, data from Statistics South Africa showed on Wednesday.

Retail sales fell 9.0 percent year-on-year in July, following an 7.2 percent decrease in June. Economists had forecast a 5 percent decline.

The biggest negative contribution came from the all 'other' retailers, retailers in food, beverages and tobacco in specialized stores, retailers in textiles, clothing, footwear and leather goods, and general dealers.

On a month-on-month basis, retail sales fell 1.1 percent in July, after a 6.6 percent rise in the previous month.

In the three months ended in July, retail sales increased 7.4 percent, following a 23.5 percent fall in the preceding three months.


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

Croatia Consumer Prices Decline Slows In August

Trading 16 sept 2020 Commentaire »

Croatia's consumer prices fell at a softer pace in August, figures from the Croatian Bureau of Statistics showed on Wednesday.

The consumer price index fell 0.1 percent year-on-year in August, following a 0.3 percent decrease in July.

Transportation costs declined 5.2 percent annually in August.

Prices for housing, water, electricity, gas and other fuels fell 1.7 percent and those of education declined 0.7 percent.

On a monthly basis, consumer prices fell 0.1 percent in August, after a 0.5 percent decline in the prior month.


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

September 16, 2020 : EUR/USD daily technical review and trade recommendations.

Trading 16 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. Early signs of downside pressure was manifested around 1.1900. Further bearish decline should be anticipated towards 1.1750. On the other hand, a breakout above 1.1920 (76.4% Fibonacci Level) will probably enable further upside movement towards 1.1960-1.1980.

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