Analytics and trading signals for beginners. How to trade EUR/USD on October 15? Getting ready for Thursday session

Trading 14 oct 2020 Commentaire »

Hourly chart of the EUR/USD pair

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The EUR/USD currency pair started an upward correction on Wednesday, October 14, as we expected in the morning. However, before doing so, the pair's quotes tried to continue the downward movement. A very interesting and remarkable situation has developed in which the MACD indicator has discharged at a non-rising price, and then it moved down again after a small downward impulse. In the morning, we warned novice traders that they should wait for the MACD indicator to discharge to zero. Since this did not happen, there was no need to open short positions on a new sell signal. Moreover, the signal, as expected, turned out to be false. After quotes slightly fell, the price immediately turned to the upside and began an upward correction, which could end near the 1.1764 level. If this is the case, then a new reversal of the MACD indicator can be regarded as a sell signal that can be worked out. The nearest targets for sell positions are the levels of 1.1711 and 1.1696.

No macroeconomic background for the pair today. Traders had nothing to pay attention to during the day. There was a fairly important sign, but secondary in fact - a report on industrial production in the eurozone, but its real value almost coincided with the forecast, so no reaction followed. In addition, European Central Bank President Christine Lagarde delivered a speech today, however, she did not mention anything important, as we expected. The price jumped 30 points in the afternoon, which can hardly be considered a reaction to any event. We are inclined to believe that today's trading was held on pure technique. By the way, volatility has not been very high in recent days.

Lagarde is scheduled to speak again on Thursday, October 15. Recently, the ECB president speaks almost every day. And it is clear that she does not provide traders with new and important information. Thus, most likely, Lagarde will not report anything important tomorrow as well. Data on the number of applications for jobless benefits in the United States is also set to be released on Thursday, which many consider an absolute indicator of unemployment. The number of secondary applications may be reduced from 10.976 million to 10.7 million. So in any case, the reduction is good for the US economy and the dollar. However, markets are unlikely to process this report. Most likely, technical and political factors will remain in first place. Recall that the presidential election is approaching in America, and Democrats and Republicans still can not agree on a new package of assistance to US citizens, unemployment and the most affected by the coronavirus crisis sectors of the economy.

Possible scenarios for October 15:

1) Buy positions on the EUR/USD pair have ceased to be relevant at the moment, since the pair has left the ascending channel and will now form a new downward trend. Thus, in order to consider long deals, one should wait for new technical patterns, such as trend lines or channels, that would support the upward movement.

2) Sell positions are current at the moment. An upward correction (albeit a small one) has taken place, so now you should wait for the MACD indicator to turn to the downside to open short positions with targets at 1.1711 and 1.1696. If the reversal does not follow in the next few hours, then it will be much more difficult to track it further, since it is already at night for many traders. Nevertheless, in the morning we will conduct a new analysis of the situation and make new recommendations.

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 (14,22,3) 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

Gold price respects support and bounces as expected.

Trading 14 oct 2020 Commentaire »

Gold price today tested the key support and stop level at $1,882. Price bounced off the support area and is now back above $1,900. However bulls will need to continue to support price and show more strength by breaking above $1,912. If we do not see any sign of strength soon, I expect price to break below $1,882.

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Green rectangle- support

Red rectangle - bounce target

Gold price is still inside the bullish channel. Price bounced off the key support shown by the green rectangle in the chart above. Price needs to continue making higher highs and higher lows if we are going to achieve our target at the red rectangle. A break below $1,882 will open the way for a move towards recent lows at $1,850.

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

Ichimoku cloud indicator Daily analysis of EURUSD

Trading 14 oct 2020 Commentaire »

EURUSD yesterday broke below the tenkan-sen and kijun-sen indicators. Price is bouncing today but still below the key indicators. Current price action favors a deeper pull back. Bulls need to recapture the 1.1770 level.

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With price inside the Kumo trend is neutral. However price is showing more bearish signs. Price has broken below the tenkan-sen and kijun-sen. The Chikou span (black line indicator) is below the candlestick pattern. There are more signs of weakness than signs of strength. As long as price is below 1.1770-1.18 we expect more downside in EURUSD.The material has been provided by InstaForex Company - www.instaforex.com

USDJPY forming another lower high

Trading 14 oct 2020 Commentaire »

USDJPY managed to rise all the way to 106.11 last week but this week JPY is stronger and pushing price lower. Technically the rejection at 106 and reversal are a bearish sign. USDJPY could continue lower towards the major support area of 104.70-104.50.

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Blue line - support

Red line- resistance

Pink line - longer-term resistance

USDJPY got rejected at the first trend line resistance and is pulling back down. The chances of breaking eventually below 104.50 are high. Such a break down will put pressure on price and we could see a fast decline towards 103. This week's high at 105.80 is key resistance. A weekly close above this level will be a bullish sign for the following week.

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

Pound Spikes Up As Brexit Talks To Continue After Deadline

Trading 14 oct 2020 Commentaire »

The pound strengthened against its major counterparts in the European session on Wednesday, erasing its early losses, as the UK confirmed that it would continue Brexit talks to secure a deal before the year-end deadline for the transition period.

The currency fell in early trading, but rebounded on reports the U.K. will not move off from talks immediately.

UK Prime Minister Boris Johnson is set to hold a call with European Commission President Ursula von der Leyen later in the day.

EU leaders are due to meet on Thursday and Friday at an European Council summit, where Brexit talks are on the agenda.

EU leaders told the U.K. on Tuesday to offer concessions on fisheries, dispute settlement and guarantees of fair competition in order to progress towards the agreement.

But a draft document showed that EU leaders are planning to say that "progress on the key issues of interest to the Union is still not sufficient for an agreement to be reached," according to news agency Reuters.

EU would also prepare for the possibility of a no-deal scenario.

Meanwhile, EU Brexit negotiator Michel Barnier would intensify the talks with Britain in order to ensure future deal after December 31.

The pound appreciated to 1.3043 against the dollar, from a 1-week low of 1.2863 set at 3:15 am ET. The pound is seen finding resistance around the 1.34 mark.

The GBP/JPY pair approached 137.18, after falling to near a 2-week low of 135.66 at 3:15 am ET. The pound is poised to find resistance around the 141.00 mark.

Having slipped to a 5-day low of 0.9122 at 3:15 am ET, the pound turned higher against the euro, with the pair trading at 0.9021. On the upside, 0.88 is seen as its next immediate resistance level.

The pound firmed to near a 2-week high of 1.1903 against the franc, reversing from near a 3-week low of 1.1769 recorded at 3:15 am ET. Further rally may take the pound to a resistance around the 1.22 level.


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

U.S. Producer Price Growth Exceeds Estimates In September

Trading 14 oct 2020 Commentaire »

After reporting a modest increase in U.S. consumer prices on Tuesday, the Labor Department released a report on Wednesday showing U.S. producer prices increased by more than expected in the month of September.

The Labor Department said its producer price index for final demand climbed by 0.4 percent in September after rising by 0.3 percent in August. Economists had expected prices to edge up by 0.2 percent.

The report said food prices jumped by 1.2 percent in September after decreasing by 0.4 percent in August, while energy prices fell by 0.3 percent after dipping by 0.1 percent.

Excluding food and energy prices, core producer prices still rose by 0.4 percent in September, matching the increase seen in the previous session. Core prices were also expected to inch up by 0.2 percent.

The stronger than expected core price growth was partly due to a continued increase in prices for services, which climbed by 0.4 percent in September after advancing by 0.5 percent in August.

The Labor Department said over 80 percent of the broad-based September increase can be traced to prices for final demand services less trade, transportation, and warehousing, which climbed by 0.5 percent.

The indexes for final demand trade services and final demand transportation and warehousing services also rose by 0.2 percent and 0.4 percent, respectively.

With the bigger than expected monthly increase, producer prices in September were up by 0.4 percent compared to the same month a year ago following a 0.2 percent dip in August.

The report also showed a significant acceleration in the annual rate of core producer price growth, which jumped to 1.2 percent in September from 0.6 percent in August.

On Tuesday, the Labor Department released a separate report showing a modest increase in consumer prices in the month of September, with the uptick in prices matching economist estimates.

The Labor Department said its consumer price index rose by 0.2 percent in September after climbing by 0.4 percent in August.

Prices for used cars and trucks spiked by 6.7 percent, accounting for most of the monthly increase by the headline index.

The report said energy prices increased by 0.8 percent amid a jump in prices for natural gas, while food prices came in unchanged.

Excluding food and energy prices, core consumer prices still edged up by 0.2 percent in September following the 0.4 percent growth seen in August. The uptick in core prices also matched estimates.

Compared to the same month a year ago, consumer prices in September were up by 1.4 percent, slightly faster than the 1.3 percent growth seen in August.

Core consumer prices were up by 1.7 percent year-over-year in September, unchanged from the annual growth seen in the previous month.


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

U.S. Producer Prices Climb More Than Expected In September

Trading 14 oct 2020 Commentaire »

After reporting a modest increase in U.S. consumer prices on Tuesday, the Labor Department released a report on Wednesday showing U.S. producer prices increased by more than expected in the month of September.

The Labor Department said its producer price index for final demand climbed by 0.4 percent in September after rising by 0.3 percent in August. Economists had expected prices to edge up by 0.2 percent.

The report said food prices jumped by 1.2 percent in September after decreasing by 0.4 percent in August, while energy prices fell by 0.3 percent after dipping by 0.1 percent.

Excluding food and energy prices, core producer prices still rose by 0.4 percent in September, matching the increase seen in the previous session. Core prices were also expected to inch up by 0.2 percent.


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

Dollar Little Changed After U.S. PPI

Trading 14 oct 2020 Commentaire »

Following the release of U.S. producer prices for September at 8:30 am ET Wednesday, the greenback changed little against its major counterparts.

The greenback was trading at 105.26 against the yen, 0.9133 against the franc, 1.1764 against the euro and 1.3021 against the pound around 8:33 am ET.


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

*U.S. Producer Prices Climb 0.4% In September, Core Prices Rise 0.4%

Trading 14 oct 2020 Commentaire »

U.S. Producer Prices Climb 0.4% In September, Core Prices Rise 0.4%


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

Dollar Falls Ahead Of U.S. PPI

Trading 14 oct 2020 Commentaire »

The U.S. producer prices for September are due at 8:30 am ET Wednesday. Ahead of the data, the greenback declined against its major counterparts.

The greenback was worth 105.28 against the yen, 0.9138 against the franc, 1.1752 against the euro and 1.3000 against the pound at 8:25 am ET.


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