Analytics and trading signals for beginners. How to trade EUR/USD on November 19? Getting ready for Thursday session

Trading 18 Nov 2020 Commentaire »

Hourly chart of the EUR/USD pair

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The EUR/USD pair tried to continue the upward movement on Wednesday, but it came across the resistance level of 1.1889 on its way, which it had already reached yesterday, and once again it failed to overcome the area. Therefore, it rebounded from this level and fell to the upward trend line, which the price also failed to overcome. The upward trend is still present. In the morning review, we warned that the upward movement is unlikely to resume and mentioned that it is not entirely advisable to buy the pair in the upper area of the horizontal channel at 1.1700-1.1900, since it is uncertain whether the price will be able to get out of it. In practice, this is what happened. The price did not leave the channel and is now preparing for a new round of downward movement within the same channel. Therefore, getting the price to settle below the trend line will change the current trend to a downward one within the horizontal channel. In this case, novice traders will be able to start trading down.

Only one more or less significant macroeconomic report was published on Wednesday - inflation in the European Union. As expected, the consumer price index in October remained unchanged at -0.3% y/y. Therefore, the weak inflation report might have triggered the slight decrease in the euro's quotes during lunchtime. At the same time, the overall volatility of the day was only 40 points. This is an extremely low value. And this volatility has persisted since the beginning of the week. Therefore, we cannot generally conclude that traders reacted to something today. During the day, the euro/dollar pair was initially up by 30 points, and then about 40 points down. By and large, it's just flat.

European Central Bank President Christine Lagarde is set to speak on Thursday. She has recently been speaking almost every day, but by and large these are not speeches, but participation in various video conferences. Of course, the head of the ECB can report something important there, but, as practice shows, this happens extremely rarely. Thus, we are inclined to the option that Lagarde will not report anything important on Thursday either. No more important reports or events scheduled for November 19. Accordingly, volatility might be extremely low during the day, and novice traders can only rely on unexpected and unplanned news.

Possible scenarios for November 19:

1) Long positions are relevant since the price is trading above the upward trend line. The euro's growth potential, as always, is limited by the 1.1903 level, and now the price is as close as possible to it. Thus, formally, when opening new buy positions while aiming for 1.1889 and 1.1903, you need to wait for a new signal to buy MACD, but traders must decide for themselves whether they are ready to take risks on such a transaction. As we have already mentioned, there is now a high probability of starting a new round of downward movement.

2) Trading for a fall at this time is irrelevant, since there is a pronounced upward trend. Novice traders are advised to wait until the price settles below the upward trend line. In this case, we open sell orders while aiming for 1.1837 and 1.1814.

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

Iceland Central Bank Trims Key Rate

Trading 18 Nov 2020 Commentaire »

Iceland's central bank cut its key interest rate on Wednesday citing a weakening in the economic outlook due to the resurgence in the coronavirus or Covid-19 infections. The Monetary Policy Committee cut the key interest rate, which is the seven-day term deposit rate, by 25 basis points to 0.75 percent, the Central Bank of Iceland said. The bank forecast an 8.5 percent contraction in GDP growth this year, which a full percentage point more than what was forecast in August. Inflation is set to average about 3.7 percent until early 2021 and ease there after due to the sizeable slack in the economy, the bank said. "The MPC will continue to use the tools at its disposal, including Treasury bond purchases by the Central Bank, to support the domestic economy and ensure that the more accommodative monetary stance is transmitted normally to households and businesses," the bank said.


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

*U.S. Crude Oil Inventories Inch Up By 0.8 Million Barrels In Week Ended 11/13

Trading 18 Nov 2020 Commentaire »

U.S. Crude Oil Inventories Inch Up By 0.8 Million Barrels In Week Ended 11/13


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

Evening review of EUR/USD for November 18, 2020.

Trading 18 Nov 2020 Commentaire »

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EUR/USD

In fact, in the near future, the euro may break either limit of the range.

The euro has been hovering within the range for 3.5 months.

During the last 24 hours, the single currency was fluctuating below the upper limit of the range that acts as the resistance area of 1.1900-1.1930.

The euro will either drop to 1.1600 or even lower or break the upper limit of the range.

Buy positions could be opened from 1.1895.

Sell positions could be initiated from 1.1849.

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

U.S. Housing Starts Spike To Pre-Covid High In October

Trading 18 Nov 2020 Commentaire »

New residential construction in the U.S. spiked by more than expected in the month of October, according to a report released by the Commerce Department on Wednesday.

The report said housing starts surged up by 4.9 percent to an annual rate of 1.530 million in October after soaring by 6.3 percent to an upwardly revised rate of 1.459 million in September.

Economists had expected housing starts to jump by 3.2 percent to a rate of 1.460 million from the 1.415 million originally reported for the previous month.

With the bigger than expected increase, housing starts reached their highest annual rate since coming in at 1.567 million in February.

"The housing sector continued to defy gravity in October, with housing starts surpassing expectations and climbing to their strongest pace since February," said Nancy Vanden Houten, Lead U.S. Economist at Oxford Economics.

She added, "Strong demand, low inventory, and record levels of homebuilder confidence continue to support new home construction."

The spike in housing starts came as single-family starts skyrocketed by 6.4 percent to a rate of 1.179 million, while the rate for units in buildings with five units or more tumbled by 3.2 percent to 334,000.

Meanwhile, the Commerce Department said building permits came in at an annual rate of 1.545 million in October, virtually unchanged from the revised rate seen in September.

Building permits, an indicator of future housing demand, had been expected to rise by 0.5 percent to a rate of 1.560 million from the 1.553 million originally reported for the previous month.

The report showed a 0.6 percent uptick in single-family permits to a rate of 1.120 million was offset by a 1.6 percent drop in multi-family permits to a rate of 425,000.

Compared to the same month a year ago, housing starts in October were up by 14.2 percent, while building permits were up by 2.8 percent.

"We expect some moderation in the pace of housing starts in the face of the rapidly escalating health crisis, a faltering recovery, and softening labor market gains," Vanden Houten said. "However, the risk in the near term may be for further upside surprises."

On Tuesday, the National Association of Home Builders released a separate report showing homebuilder confidence unexpectedly jumped to another new record high in the month of November.

The report said the NAHB/Wells Fargo Housing Market Index climbed to 90 in November from 85 in October. Economists had expected the index to come in unchanged.


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

EUR/CHF : l’euro encore bloqué par la résistance des 1,0840

Trading 18 Nov 2020 Commentaire »
Les bonnes nouvelles s’enchaînent sur le front des vaccins mais l’euro recule face au franc suisse

U.S. Housing Starts Spike More Than Expected In October

Trading 18 Nov 2020 Commentaire »

New residential construction in the U.S. spiked by more than expected in the month of October, according to a report released by the Commerce Department on Wednesday.

The report said housing starts surged up by 4.9 percent to an annual rate of 1.530 million in October after soaring by 6.3 percent to an upwardly revised rate of 1.459 million in September.

Economists had expected housing starts to jump by 3.2 percent to a rate of 1.460 million from the 1.415 million originally reported for the previous month.

With the bigger than expected increase, housing starts reached their highest annual rate since coming in at 1.567 million in February.

Meanwhile, the report said building permits came in at an annual rate of 1.545 million in October, virtually unchanged from the revised rate seen in September.

Building permits, an indicator of future housing demand, had been expected to rise by 0.5 percent to a rate of 1.560 million from the 1.553 million originally reported for the previous month.


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

Dollar Little Changed Following U.S. Housing Starts Data

Trading 18 Nov 2020 Commentaire »

After the release of U.S. housing starts and building permits for October at 8.30 am ET Wednesday, the greenback changed little against its major counterparts. The greenback was trading at 1.3270 against the pound, 1.1859 against the euro, 0.9116 against the franc and 103.95 against the yen around 8:33 am ET.


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

Loonie Little Changed After Canada Inflation Data

Trading 18 Nov 2020 Commentaire »

Canada inflation data for October has been published at 8:30 am ET Wednesday. The loonie changed little against its major counterparts after the data.

The loonie was trading at 1.5512 against the euro, 79.46 against the yen, 0.9553 against the aussie and 1.3080 against the greenback around 8:32 am ET.


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

*Canadian Consumer Price Index Rose 0.3% On A Monthly Basis In October

Trading 18 Nov 2020 Commentaire »

Canadian Consumer Price Index Rose 0.3% On A Monthly Basis In October


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