Analytics and trading signals for beginners. How to trade the EUR/USD currency pair on November 9? Analysis of Friday’s deals.

Trading 07 Nov 2020 Commentaire »

The hourly chart of the EUR/USD pair.

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The EUR/USD currency pair continued to trade very actively on Friday, November 6. By the end of the trading day, it reached the upper line of the side channel of 1.1700-1.1900, which has been very active in recent months. Naturally, the movement of recent days was caused only by the US election process, as well as further counting of votes, and not by the technical picture and other factors. Therefore, the main thing now is for the markets to calm down, and the pair's movement to become familiar again, every day so to speak. As for the prospects for the near future. Novice traders still do not have a trend line or a trend channel at their disposal. Thus, you need to start now either from important levels or from fortune-telling on coffee grounds. It is impossible to predict where the pair will move at the beginning of next week. Moreover, at the moment, the name of the winner of the election has not yet been announced. The chances are kept by both candidates, so what the reaction of the markets will be if, for example, the winner in the end is not the one on whom the majority bet, again, it is impossible to predict. One thing is now more or less certain. If the quotes fail to overcome the level of 1.1903, then the decline will begin within the correction. Moreover, this correction has been brewing for several days.

Vote counting continued in the United States on Friday, but there are still no final results. We can conclude that the fall in the US currency in recent days is due to political confusion, which is already there and which will continue to be. We remind novice traders that this year is a special US presidential election. Donald Trump is a very odious person and will not leave his post just like that. Also, the current President is constantly distinguished by unsubstantiated statements and discouraging actions. For example, on November 4, Trump declared himself the winner of the election. Even though there are no final results yet. Not surprisingly, since November 5, Trump has consistently accused Biden and his team of rigging the vote. He did this until November 3. Now all of America is preparing for a victory for Joe Biden, who is far ahead in the polls, but also preparing for legal proceedings, because Trump is determined to review the results of the voting in several states. In addition to this extremely important topic, important macroeconomic reports were published in America on Friday. First, this Nonfarm Payrolls, which shows the number of new jobs created outside of agriculture and is considered an extremely important indicator of the state of the labor market. The actual value was equal to 638 thousand with a forecast of 600 thousand. The unemployment rate also turned out to be stronger than expected – 6.9% in October against a forecast of 7.9%. However, this data did not help the dollar in any way, as the markets were completely focused on the US elections.

On November 9, the following scenarios are possible:

1) Purchases of the EUR/USD pair continue to be relevant. However, at this time, the movement is very strong, the MACD indicator does not have time to discharge to form new strong buy signals, and there is no trend line or channel. In general, clear signals are now extremely difficult to get, the fundamental background is extremely strong, and the situation for trading for novice traders is not the most favorable. We expect a correction on Monday.

2) Trading for a fall is not relevant at this time, although it is a new drop in the quotes that now has more chances and probability. Theoretically, novice traders can try to work out a new sell signal from the MACD with targets of 1.1798 and 1.1737, but do not forget about stop loss. We recommend that novice traders wait for the markets to calm down.

What's on the chart:

Price support and resistance levels – levels that are targeted when opening purchases or sales. You can place Take Profit levels near them.

Red lines – channels or trend lines that display the current trend and indicate which direction is preferable to trade now.

Up/down arrows – show when you reach or overcome which obstacles you should trade up or down.

MACD indicator(14,22,3) – a histogram and a signal line, the intersection of which is a signal to enter the market. It is recommended to use it in combination with trend lines (channels, trend lines).

Important speeches and reports (always included in the news calendar) can greatly influence the movement of the currency pair. Therefore, during their exit, it is recommended to trade as carefully as possible or exit the market to avoid a sharp reversal of the price against the previous movement.

Beginners in the Forex market should remember that every trade cannot be profitable. The development of a clear strategy and money management is the key to success in trading over a long period.

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

Dollar Extends Weakness

Trading 07 Nov 2020 Commentaire »

The U.S. dollar exhibited weakness on Friday, extending recent slide, amid continued uncertainty about the outcome of the U.S. presidential election.

While Democratic challenger Joe Biden closed in on President Donald Trump in the battleground states of Georgia and Pennsylvania and expanded his lead in Nevada. Meanwhile, the Trump team is reportedly pressing legal challenges in several states.

In economic news, data from the Labor Department showed U.S. non-farm payroll employment jumped by 638,000 jobs in October after surging up by a revised 672,000 jons in September. Economists had expected employment to increase by 600,000 jobs in the month.

The data also showed the unemployment rate in the U.S. dropped to 6.9% in October from 7.9% a month earlier.

The dollar index slipped to 92.18, and despite recovering to 92.33, was still down in negative territory, trailing its previous close by about 0.22%.

Against the Euro, the dollar weakened to $1.1879, giving up more than 0.4%.

The Pound Sterling was flat, fetching $1.3147 a unit, after moving between $1.3094 and $1.3177. UK house prices increased by 7.5% on yearly basis in three months to October, the fastest pace since mid-2106, data released by the Lloyds Bank subsidiary Halifax and IHS Markit showed.

The Yen was stronger at 103.32 a dollar, firming up from 103.51 a dollar Thursday evening. Data from the Ministry of Internal Affairs and Communications showed that Japan household spending fell 10.2 percent on year in September - coming in at 269,863 yen.

That beat forecasts for a decline of 10.7 percent following the 6.9 percent drop in August.

The Aussie was weaker, with the AUD-USD pair at 0.7258, easing by about 0.34%.

The Swiss franc was up at CHF 0.9004, firming up from CHF 0.9047.

The Loonie was weaker at 1.3060, falling from 1.3045 a dollar, its level a day earlier. Data released by Statistics Canada this morning showed that the Canadian economy created 83600 jobs in October 2020, below market forecasts of a 100 thousand rise and after a 378,200 increase in September. Full-time employment increased by 69100 jobs while part-time jobs were up by 14500.

Unemployment rate in Canada came in at 8.9% for October, down from 9% a month earlier, the data showed.


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

Treasuries Move To The Downside Following Upbeat Jobs Data

Trading 07 Nov 2020 Commentaire »

After ending the previous session little changed, treasuries moved to the downside during the trading day on Friday.

Bond prices came under pressure in morning trading and remained firmly negative throughout the afternoon. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, rose by 4.4 basis points to 0.820 percent.

The weakness among treasuries came following the release of a closely watched report from the Labor Department showing stronger than expected job growth in the month of October

The report said non-farm payroll employment jumped by 638,000 jobs in October after surging up by a revised 672,000 jobs in September.

Economists had expected employment to increase by 600,000 jobs compared to the addition of 661,000 jobs originally reported for the previous month.

The Labor Department also said the unemployment rate dropped to 6.9 percent in October from 7.9 percent in September. The unemployment rate was expected to slip to 7.7 percent.

"While the drop in unemployment was again mainly driven by temporarily laid-off workers returning to their old jobs, the number of permanent job losers also fell back slightly," said Andrew Hunter, Senior U.S. Economist at Capital Economics.

He added, "That could be a crucial sign that the longer-term damage from the pandemic will not prove as severe as many had feared."

Traders also kept an eye on the latest presidential election results, as several key states continue to count votes.

Democratic nominee Joe Biden now leads in Pennsylvania and Georgia, according to the latest numbers, suggesting the former Vice President is on track to exceed the 270 electoral college votes needed to win the White House.

However, President Donald Trump has claimed the increase in votes for Biden in a number of key states is proof of widespread voter fraud and pledged to take legal challenges to the results all the way to the U.S. Supreme Court.

Next week's trading may continue to be impacted by reaction to the results of this week's elections, while reports on consumer and producer price inflation may also attract some attention.

Bond traders are also likely to keep an eye on the results of the Treasury Department's auctions of three-year and ten-year notes and thirty-year bonds.


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

Oil Futures Settle Sharply Lower For The Day, But Gains 4.5% In Week

Trading 07 Nov 2020 Commentaire »

Crude oil futures ended sharply lower on Friday, weighed down by rising concerns over outlook for energy demand due to the continued surge in coronavirus cases across the U.S. and in several European countries.

Higher output from Libya weighed as well.

West Texas Intermediate Crude oil futures for December ended down $1.65 or 4.3% at $37.14 a barrel.

Brent crude futures were down $1.52 or 3.7% at $39.41 a barrel.

Despite today's weakness, WTI Crude and Brent futures gained 4.5% and 6%, respectively this week.

According to reports, U.S. saw a surge of over 120,000 new cases of coronavirus infections on Thursday, recording an increase of over 100,000 cases for a second straight day.

The continued impasse over a stimulus package too hurt.

A report from Baker Hughes showing another increase in U.S. drilling rigs count added to oil's woes. The report said total active drilling rigs in the U.S. increased for the eighth week in a row, rising to 300 (up 4) this week.

U.S. oil rigs added 5 to 226, while gas rigs count fell by 1 to 71.

The likelihood of OPEC and allies delaying an earlier proposal of increasing crude output by 2 million barrels from January helped limit oil's downside.


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

Gold Futures Settle Higher, Gain Nearly 4% In Week

Trading 07 Nov 2020 Commentaire »

Gold prices moved higher on Friday and the most active futures contract recorded strong gains for the week, as the dollar extended its weakness.

The dollar index slipped to 92.18 and was last seen at 92.21, down 0.34% from previous close.

Gold futures for December ended up $4.90 or about 0.3% at $1,951.70 an ounce.

For the week, gold futures gained about 3.8%, the biggest weekly surge in three months.

Silver futures for December ended the session with a gain of $0.471 at $25.662 an ounce, while Copper futures for December settled at $3.1540 per pound, gaining $0.0440.

Data from the Labor Department showed U.S. non-farm payroll employment jumped by 638,000 jobs in October after surging up by a revised 672,000 jobs in September. Economists had expected employment to increase by 600,000 jobs compared to the addition of 661,000 jobs originally reported for the previous month.

The Labor Department also said the unemployment rate dropped to 6.9% in October from 7.9% in September. The unemployment rate was expected to slip to 7.7%.

A report released by the Commerce Department showed wholesale inventories in the U.S. rose by 0.4% in September after climbing by 0.5% in August. Economists had expected inventories to edge down by 0.1%.

In election news, Democratic challenger Joe Biden gained more ground on President Donald Trump in the battleground states of Georgia and Pennsylvania, edging closer to winning the White House. The Trump team is pressing legal challenges in several states.

In coronavirus news, the number of new cases in the U.S. rose by over 120,000 on Thursday. Several countries in Europe, including Spain, Germany, the U.K. and Switzerland continued to see spikes in new cases, raising worries about economic recovery.


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

*U.S. Consumer Credit Increases By $16.2 Billion In October

Trading 07 Nov 2020 Commentaire »

U.S. Consumer Credit Increases By $16.2 Billion In October


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