Analytics and trading signals for beginners. How to trade EUR/USD on October 22? Getting ready for Thursday session

Trading 21 Oct 2020 Commentaire »

Hourly chart of the EUR/USD pair

analytics5f90b25f24924.jpg

The EUR/USD pair continued to move up without any correction throughout the day on Wednesday, October 21. On the one hand, such a strong movement is easy enough to work out, since there are no pullbacks. On the other hand, we advise novice traders to look for the most ideal signals to enter the market, since such recoilless movements are generally quite rare. Therefore, since there was no correction, the MACD indicator did not discharge to the zero level and, accordingly, was unable to form strong and clear buy signals. This means that novice traders should not have opened new long positions, at least based on our recommendations. We remind you that the price, in fact, continues to move inside the horizontal channel of 1.17-1.19 all this time, having previously rebounded from its lower border. Thus, a downward reversal may occur in the 1.1903 area and we may return to a downward movement. The upward trend line continues to support those who are trading down, but almost any correction in the pair will lead to the fact that quotes will settle below this line. This will be the first signal to change the trend.

No important macroeconomic publications in the European Union and America on Wednesday. European Central Bank President Christine Lagarde delivered a speech, but she did not report anything important and interesting for market participants. Moreover, the euro and the pound both grew almost simultaneously all day, which suggests that the reason for this growth lies in America or the dollar. However, the US did not provide any important information either. Democrats and Republicans still cannot agree on a new package of assistance to the US economy, but still express hope for an agreement in the coming days. However, this kind of information should have caused the dollar to rise, as well as its fall.

The calendar of macroeconomic events in the European Union and America is practically empty again on Thursday. You can turn to the report on applications for unemployment benefits in the United States. However, the market will likely ignore this report. Therefore, novice traders will have to look for news and closely monitor technical factors tomorrow, which, by the way, do not add too much clarity to the current picture. We expect a downward reversal around 1.1900.

Possible scenarios for October 22:

1) Buy positions on the EUR/USD pair remain relevant at the moment, since the price continues to trade above the rising trend line. Novice traders are advised to wait for a new round of downward correction, discharge of the MACD indicator and a new buy signal in order to open new long positions with targets at 1.1888 and 1.1903. Also, if one of the traders is now in the longs, then they can keep them open until the MACD indicator turns down.

2) You can return to taking sell positions on the currency pair, but first the price should settle below the rising trend line. In this case, the price could drop with the first targets at the support levels 1.1807 and 1.174, and in general it will aim for the lower border of the horizontal channel at 1.1696, from which it has rebounded several times.

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

BoE's Ramsden Says Not Appropriate Time To Use Negative Rates

Trading 21 Oct 2020 Commentaire »

Bank of England Deputy Governor Dave Ramsden said on Wednesday that this is not the appropriate time to use negative interest rates as the UK economy and financial system are weighed down by the shock from the coronavirus, or Covid-19, pandemic and concerns over a highly uncertain outlook. That said, negative rates will remain in the central bank's tool box for potential use in future when policymakers' assessment of their effectiveness change, he said in a speech. "As the MPC has made clear, we will keep the appropriateness of all tools, including negative rates, under review," Ramsden added.


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

Greece August Current Account Surplus Decreases

Trading 21 Oct 2020 Commentaire »

Greece's current account surplus for August shrunk from last year, largely due to a significant deterioration in the service balance, the Bank of Greece said Wednesday.

The current account surplus decreased to EUR 80 million from EUR 1.8 billion in the same month of 2019.

The deterioration in the services balance was only partly offset by improvements in the balance of goods and the primary and secondary income accounts.

The EUR 468 million narrowing in the visible trade deficit was largely due to the decline in the deficit in the oil trade, thanks to lower global oil prices.

The surplus in the services trade decreased mainly due to lower net travel receipts amid steep year-on-year declines in non-residents' arrivals and the corresponding receipts.

Further, lower net sea and air transport receipts led to a worsening in the transport balance.


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

Ichimoku cloud indicator Daily analysis of Gold

Trading 21 Oct 2020 Commentaire »

Gold price is moving higher towards the next resistance level of $1,920. Price is holding above the key support of $1,900 and is making a try to break above the cloud resistance at $1.925-$1.950.

analytics5f9094af528d0.jpg

Gold price remains below the Kumo (cloud). Price is above the tenkan-sen (red line indicator) and the kijun-sen (yellow line indicator). These two indicators provide support at $1,905. If price breaks below this level then we have another confirmed rejection at the cloud and reversal. This would increase dramatically the chances for a move towards $1,850-$1,800. If bulls manage to continue this higher highs and higher lows pattern combined with a break above $1,950, then we have many chances of recapturing the $2,000 price level and even making new all time highs.The material has been provided by InstaForex Company - www.instaforex.com

Belgium Consumer Confidence Weakens Slightly

Trading 21 Oct 2020 Commentaire »

Belgium's consumer confidence weakened slightly in October amid a resurgence of the coronavirus pandemic, survey data from the National Bank of Belgium showed on Wednesday.

The consumer confidence index eased to -17 from -16 in September.

"The deterioration of the COVID-19 pandemic has most certainly weighed somewhat on consumer confidence, which has clearly been eroded over the survey period, that nevertheless closed before the curfew and renewed closure of bars and restaurants at national level were announced," the bank said.

The survey period was from September 30 to October 15.

All of the sub-indicators were largely unchanged in October, except that of savings intentions, which rose.


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

Bullish signs in EURUSD

Trading 21 Oct 2020 Commentaire »

EURUSD is breaking above the Daily cloud resistance. This is an important bullish sign as bulls manage to support price inside the Kumo and never left it undefended. Bulls came back stronger and are recapturing key resistance levels.

analytics5f9093511dddd.jpg

In previous analysis when using the Ichimoku cloud indicator we noted that bulls will need to push price back above the tenkan-sen (Red line indicator) and the kijun-sen (yellow line indicator). This would be the first step for a move higher. EURUSD bulls managed to push above the 1.1750-1.1780 resistance and price is now also moving above the cloud. The Chikou span (black line indicator) is also testing the candlestick pattern from below as it represents the resistance at 1.1870-1.1880. First thing bulls must do now is to defend the tenkan-sen and the kijun-sen. Price could get back inside the Kumo but bulls do not want to fall below the tenkan-sen and the kijun-sen. If price fails to hold above them then this break out would be a fake one. A back test towards the tow indicators around 1.1780-1.18 is not out of the question, but not necessary. EURUSD has now the setup for a move towards 1.21. Will bulls support it?The material has been provided by InstaForex Company - www.instaforex.com

USDJPY falls towards major support

Trading 21 Oct 2020 Commentaire »

One week ago we noted in our analysis that the rejection at 106.10 was a bearish sign and that price should move lower towards 104.50-104.70 support area. Price is now at the pull back target area and is testing major support.

analytics5f9092232aa08.jpg

Red line - resistance trend line

Pink line - major resistance trend line

USDJPY remains below the two key resistance trend lines. Support is found at the recent low at 104.15. Price has formed another lower high. This is a bearish signs as bulls each time get weaker and weaker. Bears remain in control of the trend but eventually they will need to show their strength with a break below key support at 104 and a move towards 102-101. Bulls need to recapture 105.75 in order to regain control of the short-term trend.

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

*U.S. Crude Oil Inventories Decrease By 1.0 Million Barrels In Week Ended 10/16

Trading 21 Oct 2020 Commentaire »

U.S. Crude Oil Inventories Decrease By 1.0 Million Barrels In Week Ended 10/16


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

*Greece Aug Current A/c Surplus EUR 80 Mln Vs. EUR 1.8 Bln Last Year

Trading 21 Oct 2020 Commentaire »

Greece Aug Current A/c Surplus EUR 80 Mln Vs. EUR 1.8 Bln Last Year


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

Amazon Makes Free, One-hour Grocery Pickup Available To Prime Members At All U.S. Whole Foods Stores

Trading 21 Oct 2020 Commentaire »

Amazon said Wednesday that free one-hour grocery pickup is now available to prime members at all U.S. Whole Foods Market locations. Previously, the prime members could pick up Whole Foods orders only at select stores.

The service is available for prime members on orders $35 or more and reportedly begins on Wednesday. There are currently 487 Whole Foods stores in the U.S.

The prime members could shop thousands of items online, including fresh produce, meat and seafood, and pickup at their favorite Whole Foods Market location, the e-commerce giant said in a statement.

The COVID-19 pandemic has accelerated the adoption of online grocery services and prompted new customers to try services like grocery pickup.

Amazon said more than 40 percent of Whole Foods Market pickup orders each month are from customers trying the service for the first time.

According to recent data from Global Data Research, about 68 percent of consumers say they will continue to use curbside pickup even when the pandemic has subsided.

In addition to grocery pickup, Prime members in more than 2,000 cities and towns could receive unlimited free, two-hour delivery on more than 170,000 items from Amazon Fresh and Whole Foods Market on orders of $35 or more, Amazon said.

The prime members could find toys, gifts, household products and everyday essentials, electronics, Amazon devices, and more available with free, two-hour delivery from Amazon Fresh.


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