Technical analysis of Gold

Trading 12 oct 2020 Commentaire »

Gold price broke out and above the downward sloping trend line resistance. This week started on a negative note but as long as price is above $1,890 we remain optimistic for next few weeks.

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Red line -resistance

Blue line -support

Since the bottom in mid-September, price is making higher highs and higher lows. Support is at $1,890-$1,900. Holding above this level is key for bulls. If price breaks below this level we expect Gold to reach $1,860-$1,800. Next resistance level Gold bulls need to overcome is at $1,965-75.

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Ichimoku cloud indicator Daily analysis of EURUSD

Trading 12 oct 2020 Commentaire »

EURUSD although is trading inside the Kumo the bullish scenario remains the primary one as price has moved above key resistance levels. We use the Ichimoku cloud indicator to find more points of interest.

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Resistance at 1.18-1.1820 is key. Price is above the tenkan-sen (red line indicator) and the kijun-sen (yellow line indicator). Support by the tenkan-sen and kijun-sen is at 1.1760. Next key support by the Kumo is at 1.16, while resistance by the upper cloud boundary is at 1.1870. The tenkan-sen is about to cross above the kijun-sen, the Chikou span (black line indicator) is challenging the past candlestick body which is now resistance. This confirms our view that 1.18-1.1820 is key resistance. As long as price remains above 1.1760 we remain optimistic for a move towards 1.21.The material has been provided by InstaForex Company - www.instaforex.com

AUDUSD tests short-term resistance

Trading 12 oct 2020 Commentaire »

AUDUSD is trading just above 0.72 having made higher highs and higher lows starting at 0.70 near the end of September. Price has reached important trend line resistance and for price to continue higher, we should first see resistance break.

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Blue line -trend line resistance

Green rectangle- support

Blue rectangle -target area

AUDUSD price is challenging the resistance at 0.7235. A break above this level will open the way for a move towards 0.74. On the other hand bears need to see price get rejected here at 0.72 and break below 0.71 for a deeper correction to unfold.

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Analytics and trading signals for beginners. How to trade EUR/USD on October 13? Getting ready for Tuesday session

Trading 12 oct 2020 Commentaire »

Hourly chart of the EUR/USD pair

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The EUR/USD pair began the expected corrective movement on Monday, October 12, rebounding from the upper line of the ascending channel. At the moment, it is clear that there will most likely be several rounds of a downward correction, since an upward pullback followed after the first round. Thus, the euro/dollar pair can still go down to the area of the lower line of the ascending channel. And rebounding from this line would be an ideal signal to open new long positions. Unfortunately, the MACD indicator gave a false signal to traders today. Its upward reversal could be regarded as a buy signal, but in reality the price did not go up any further and the indicator turned down again on the next candlestick. Losses on this deal could be about 10 points, which is not a lot. Therefore, novice traders can expect this correction to continue. Also in the morning we admitted the possibility of opening short positions when rebounding from the upper channel line, but we called this option risky, because it involves trading against the trend. Nevertheless, traders could earn several tens of points of profit on this trade.

There is absolutely nothing to note in terms of macroeconomic news on Monday. However, the fact that there was no news and reports that day is evident from the pair's volatility. Only 39 points were passed from the low to the high of the day. Even the speech of the head of the ECB Christine Lagarde did not change the situation, since the topic of monetary policy was not touched upon. Lagarde talked about creating the digital euro and its advantages over fiat money. There was nothing more interesting in her speech. There was even little news from the White House and from US President Donald Trump. Democrats and Republicans still cannot agree on providing a cash aid package to all the citizens and sectors of the US economy in need. Therefore, the US dollar may continue to fall moderately.

Several minor macroeconomic reports from the European Union are scheduled for Tuesday, October 13, but the most important report will be published in America. The consumer price index for September will be released in the afternoon, which is forecast to rise to 1.4% y/y. In general, inflation in the US has been pleasing lately. Recall that both the ECB and the Fed are targeting stable inflation at 2% y/y. However, inflation in the eurozone has been negative for three consecutive months. And it is only slightly below the target in the United States. However, one should not be prematurely happy and prepare buy positions on the dollar. Inflation in the US is relatively high because the dollar has dropped quite seriously over the past six months against a number of currencies. The same is true for the eurozone. Inflation in the EU is low because the euro has appreciated strongly against the dollar.

Possible scenarios for October 13:

1) Buy positions on the EUR/USD pair remain relevant at the moment due to the fact that the upward trend line was canceled, and a rising channel was formed. However, we still advise novice traders to wait for the price correction to the lower area of this channel, as well as for the MACD indicator to discharge to zero. Afterwards, you can finally open new long positions with targets around 1.1800 and slightly higher.

2) Sell positions have lost their relevance at the moment. Traders could have earned several tens of points on the signal of a price rebound from the upper channel line. However, at this time, we would not recommend opening new short positions. To do this, you need to wait until the current upward trend has been cancelled, that is, for the price to settle below the upward channel.

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

U.S. Dollar Strengthens On Stimulus Deadlock

Trading 12 oct 2020 Commentaire »

The U.S. dollar firmed against its most major counterparts in the European session on Monday, as U.S. stimulus talks remained deadlocked after Democrats' had rejected Republicans' $1.8 trillion coronavirus relief bill proposal.

While Republicans blamed it for being too large, Democrats said that the funding was not sufficient.

House Speaker Nancy Pelosi said that the proposal lacked a strategic plan to contain the spread of the outbreak, and has inadequate aid for state and local governments as well as financial relief for American families.

It is unclear whether Congress will have time to introduce a pandemic relief bill and pass it through the Republican-held Senate before the election.

This week's economic docket features consumer inflation on Tuesday, followed by producer prices on Wednesday. The attention will then shift to weekly jobless claims on Thursday and retail Sales and the consumer sentiment index on Friday.

The dollar edged up to 0.9124 against the franc and held steady thereafter. The pair had ended Friday's trading at 0.9092.

The greenback rose to 1.1787 against the euro and 1.3005 against the pound, from its previous low of 1.1827 and near a 5-week low of 1.3060, respectively. If the greenback continues its rise, 1.16 and 1.29 are possibly seen as its next resistance levels against the euro and the pound, respectively.

Reversing from its early lows of 0.7235 against the aussie and 0.6671 against the kiwi, the greenback rebounded to 0.7205 and 0.6645, respectively. The dollar may find resistance around 0.70 against the aussie and 0.645 against the kiwi.

In contrast, the greenback fell to a weekly low of 105.36 against the yen from Friday's closing value of 105.59. On the downside, 100 is possibly seen as its next support level.

Data from the Bank of Japan showed that Japan producer prices fell 0.2 percent on month in September - missing expectations for a flat reading following the downwardly revised 0.1 percent increase in August.

On a yearly basis, producer prices sank 0.8 percent - again shy of expectations for a loss of 0.5 percent, which would have been unchanged from the August reading.

The greenback remained weaker against the loonie and was trading at 1.3123. The greenback is seen locating support around the 1.29 level.


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India Inflation Accelerates More Than Expected

Trading 12 oct 2020 Commentaire »

India's consumer price inflation accelerated more than expected in September, preliminary data from the statistics ministry showed on Monday.

The consumer price index rose 7.34 percent year-on-year following a 6.69 percent increase in August. Economists had forecast 6.88 percent inflation.

Food price inflation climbed to 10.68 percent from 9.05 percent in the previous month.

Compared to the previous month, the CPI increased 1.16 percent and the food price index rose 2.41 percent in September.

The clothing and footwear component registered an annual increase of 3.04 percent and the housing costs rose 2.83 percent. Fuel and light prices climbed 2.87 percent.


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

India's Industrial Production Continues To Fall

Trading 12 oct 2020 Commentaire »

India's industrial production continued to fall in August but the pace decline slowed due to the gradual relaxation of the coronavirus containment measures, data from the National Statistical Office showed on Monday.

Industrial output dropped 8 percent on a yearly basis. Output was forecast to decrease 7.5 percent after easing 10.8 percent in July.

Among sub-sectors, mining logged the biggest annual fall of 9.8 percent, followed by an 8.6 percent decrease in manufacturing output. At the same time, electricity output was down only 1.8 percent.

During April to August period, industrial production logged an annual decrease of 25 percent.


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*India Apr-Aug Industrial Output Down 25% On Year

Trading 12 oct 2020 Commentaire »

India Apr-Aug Industrial Output Down 25% On Year


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*India Aug Industrial Production Falls 8% On Year, Consensus -7.5%

Trading 12 oct 2020 Commentaire »

India Aug Industrial Production Falls 8% On Year, Consensus -7.5%


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

*India September CPI Inflation 7.34% Vs. 6.69% In August, Consensus 6.88%

Trading 12 oct 2020 Commentaire »

India September CPI Inflation 7.34% Vs. 6.69% In August, Consensus 6.88%


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