Analytics and trading signals for beginners. How to trade GBP/USD on November 24? Plan for opening and closing trades on

Trading 23 Nov 2020 Commentaire »

Hourly chart of the GBP/USD pair

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Trading the GBP/USD pair on the first trading day of the week was very similar to the EUR/USD pair. The price increased in the first half of the day, however, it fell in the US session and started a rather strong downward movement. Unfortunately, the technical picture for the pound is not as beautiful as for the euro, which greatly complicates the process of trading and processing the signals. For example, the chart clearly shows two trend lines at once, but the price overcame both, afterwards we saw an upward trend. In fact, the upward trend was maintained all this time, however, signals to change the trend regularly appeared. Nevertheless, in our last review on the pound, we advised you to buy the pair if we can go beyond the 1.3313 level by reaching the 1.3377 target. Today this level has been overcome, and the goal was reached. Therefore, novice traders could earn about 60 points. At the same time, you were advised to sell the pound/dollar pair at a new MACD sell signal, and such a signal also appeared today (circled), thus, novice traders could open sell positions today, and you could have gained 60 points. Even if traders only opened one trade, they still remained in profit.

Today's fundamental component was rather ambiguous for the British pound. Service PMI in the UK was slightly above the forecasted values, but was still below the level of 50.0. Thus, the service sector is also shrinking in Britain, which is negative for the economy. Nevertheless, the pound continued to rise in the first half of the day, and only began to fall in the afternoon. Of course, US PMIs could have made such an impression on market participants. After all, these indicators mean that the British economy will contract thanks to a new lockdown at the end of 2021, but the US one will not. However, we still believe that the dollar grew due to technical reasons, although not without the influence of the macroeconomic background.

No major reports scheduled for release tomorrow in both the UK and the US. Nevertheless, traders may continue to await information regarding trade talks between London and Brussels, since this topic is really important for the pound. If we receive information that the negotiations have reached a deadlock again, this could pull down the pound again. Moreover, the technical picture is now ambiguous and does not provide serious support to either buyers or sellers.

Possible scenarios for November 24

1) The important and strong level of 1.3313 was overcome today, however, not a single trend line supports the upward trend. Moreover, we continue to expect that the pound will begin to sharply fall, which is supported by the fundamental background. Therefore, from our point of view, it is not safe to open buy positions now.

2) From our point of view, sell positions are more convenient, and for a large number of reasons. Both upward trend lines have been overcome, the pair has settled below the 1.3313 level. And so we would recommend selling the pair, but after a round of upward correction, since it is unlikely that the quotes will continue to fall after the pair has already gone down by about 100 points. And even if it continues, novice traders will have to follow the deal at night, which is not very convenient.

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

Two-Year Note Auction Attracts Above Average Demand

Trading 23 Nov 2020 Commentaire »

The Treasury Department announced the results of this month's auction of $56 billion worth of two-year notes on Monday, revealing the sale attracted above average demand.

The two-year note auction drew a high yield of 0.165 percent and a bid-to-cover ratio of 2.71.

Last month, the Treasury sold $54 billion worth of two-year notes, drawing a high yield of 0.151 percent and a bid-to-cover ratio of 2.41.

The bid-to-cover ratio is a measure of demand that indicates the amount of bids for each dollar worth of securities being sold.

The ten previous two-year note auctions had an average bid-to-cover ratio of 2.57.


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Dollar Slides On Covid-19 Vaccine Hopes

Trading 23 Nov 2020 Commentaire »

The U.S. dollar declined against its major counterparts in the European session on Monday, as encouraging news on the vaccine front spurred hopes of a faster economic recovery from the virus crisis.

After a string of encouraging vaccine results in recent weeks, the Oxford University and British pharmaceutical giant AstraZeneca announced that their vaccine for the novel coronavirus could be around 90 percent effective under one dosing regimen.

One dosing regimen (n=2,741) showed vaccine efficacy of 90 percent when AZD1222 was given as a half dose, followed by a full dose at least one month apart, and another dosing regimen (n=8,895) showed 62 percent efficacy when given as two full doses at least one month apart.

The combined analysis from both dosing regimens (n=11,636) resulted in an average efficacy of 70 percent, it was said.

The FDA is looking to approve vaccine developed by Pfizer and German partner BioNTech in mid-December. The vaccine has shown almost 95 percent efficacy in preventing coronavirus.

The greenback slipped to 2-week lows of 1.1906 against the euro and 0.9077 against the franc, after rising to 1.1851 and 0.9113, respectively in early deals. The greenback is seen challenging support around 1.24 against the euro and 0.88 against the franc.

The greenback weakened to near a 3-month low of 1.3398 against the pound and a 5-day low of 103.68 against the yen, off its early highs of 1.3272 and 103.87, respectively. Immediate support for the greenback is possibly seen around 1.35 against the pound and 100.00 against the yen.

The U.S. currency depreciated to near a 2-year low of 0.6968 against the kiwi and a 6-day low of 0.7338 versus the aussie, easing from its early highs of 0.6923 and 0.7300, respectively. The greenback is likely to challenge support around 0.72 against the kiwi and 0.75 versus the aussie.

The greenback edged down to 1.3046 against the loonie, from a high of 1.3094 seen in early deals. On the downside, 1.25 is likely seen as its next support level.

Markit's U.S. flash composite PMI for November is scheduled for release shortly.


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GBP/USD : la livre sterling profite des espoirs autour du Brexit

Trading 23 Nov 2020 Commentaire »
La livre sterling travaille une résistance clé à 1,3350$. L’accord commercial post-Brexit soutient la tendance.

Bearish break down for Gold

Trading 23 Nov 2020 Commentaire »

Gold has finally broken below $1,850 support level at the start of this week. We are not surprised by this price action as we believed this would be the most probable outcome. Gold price continued to trade below the Ichimoku cloud and this made us continue to expect the break down towards $1,800.

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Green rectangle -support (broken)

Red rectangle- resistance levels

Gold price has finally broken a key support level. We now see Gold trading at $1,838 and we expect this downward move to continue lower towards $1,800 and maybe towards $1,750. Trend remains bearish as long as price is below $1,900.

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With Gold price still below the Daily Kumo (cloud) there was only one way for price to go. Resistance is at $1,865 by the tenkan-sen (Red line indicator). Bulls need to see a close above this level in order to hope for a move towards $1,900. All indicators in the Daily chart confirm bearish trend and rejection at $1,900. Gold price is expected to be under pressure at least this week.

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

EURUSD bulls face another rejection at 1.19

Trading 23 Nov 2020 Commentaire »

EURUSD has turned lower sharply today towards the key short-term support of 1.18. The RSI continues to provide bearish divergence warnings and it is highly probable that Dollar strength will be the main scenario over this week.

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Blue lines - bearish divergence

Price has managed to peak above 1.19 but sellers have stepped in again, pushing price towards 1.18. The bearish RSI divergence provides a warning that this is not the time to enter long positions or remain bullish. This is the time to be neutral if not bearish as a pull back is imminent. As long as the bearish divergence stands bulls need be cautious. On the other hand bears will need to show more signs of strength in order for a deeper pull back to follow. Bears will need to break below 1.18-1.1750 support area, otherwise a sideways movement will relieve the RSI from overbought levels and could give bulls time to gather strength for the next upward move.

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

NZDUSD reverses lower as expected

Trading 23 Nov 2020 Commentaire »

In our last analysis we noted the bearish divergence in the RSI of NZDUSD. We warned bulls that a pull back was close by and this week started with Dollar strength pushing NZDUSD towards the key support of 0.6875. So far price has made a low at 0.6892 and as long as support holds, bulls could make a come back.

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Blue lines -bullish channel (broken)

Red rectangle - target if green support fails to hold

Green rectangle- short-term support

Red line - bearish divergence

NZDUSD has broken the bullish channel. The RSI is providing bearish divergence signs. The most probable scenario is for price to break below support at 0.6875 and head towards the first target area of 0.68. At current market conditions we do not prefer long positions. A pull back towards 0.68 and maybe lower is highly likely, so we prefer to be neutral if not bearish.

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

UK Household Finance Perceptions At 6-month Low

Trading 23 Nov 2020 Commentaire »

UK households' finance perceptions weakened to a six-month low in November as savings and earnings declined sharply, survey data from IHS Markit and Ipsos MORI showed on Monday.

The household finance index, which measures households' overall perceptions of financial well-being, fell to 40.0 from 40.8 in October.

The decline signaled a more intense strain on the household finances amid a second lockdown in England and ongoing restrictions across the rest of the UK, IHS Markit said.

The outlook remained negative in November, with UK households on average expecting their financial situation to worsen in 12 months' time, though the level of pessimism was the weakest since March, the survey added.

Households' disposable income fell the most since May and at a sharp rate as suggested by cash availability and credit demand. As households dipped into savings to finance some purchases and compensate falling incomes, the level of savings dropped sharply at the quickest rate in seven years.

Further, the income from employment fell faster to its lowest level since July amid business activity declining in workplaces at the steepest rate in four months. The trend may have been partly driven by renewed use of furlough due to business closures in the hospitality and retail sectors, IHS Markit said.

That said, job perceptions recovered further from April's survey low and households were the least pessimistic since March. But the index measuring job security remained noticeably below the 50 mark.

The extension of the furlough scheme to March 2021 appears to have helped to moderate the degree of job insecurity among UK households, IHS Markit said.

The survey also found that around a quarter of surveyed households foresee the next move by the Bank of England to be a rate cut at some time, despite the record low base rate at present.

"The latest data paint a worrying picture for household finances across the UK, with no sign yet of a recovery from the blow caused by the pandemic," Lewis Cooper, economist at IHS Markit, said.

"The easing of lockdown measures will likely elevate some of the strain we saw in November, but until the economic recovery becomes more sustainable it is unlikely households will see much improvement in their financial situation."


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

Analytics and trading signals for beginners. How to trade EUR/USD on November 24? Review of Monday deals. Getting ready for

Trading 23 Nov 2020 Commentaire »

1-hour chart of EUR/USD

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In the first half of the trading day, EUR/USD resumed its downward move, surpassed 1.1890 from which it had rebounded three times earlier. Afterwards, the price climbed to 1.1903 which remains the upper border of the trading range. Then, it rebounded in an expected move and took a nosedive. Thus, the currency pair again reversed in the opposite direction at one of the borders of the trading range. I urge beginners not to be confused about this slump because it was not caused by any serious fundamental event. At least, in the recent few hours nothing extraordinary was reported by the mass media. Indeed, what could actually have happened to cause the US dollar gain of 100 pips in 2 hours? I guess this is just the market response to testing the upper border of the trading range. The thing is that most retail traders and large investors rushed to sell the euro at near the upper border of the channel. This accounts for a serious reinforcement of the US dollar. Well, there are no other reasons behind such moves. Perhaps, something will come into play later ...

In the first day of the trading week, the economic calendar contains a few important reports. For example, the eurozone's services PMI fell steeper than expected to 41.3. For your reference, any reading below 50 indicates contraction in the sector. No wonder, a slowdown in any sector stalls expansion of the whole national output. Besides, the eurozone's manufacturing PMI also declined a bit. Unlike the EU, the US reported upbeat data. The US services PMI grew to 57.7 and the manufacturing PMI rose to 56.7. To sum up, these publications today lie behind a slump of the single European currency and growth of the US dollar. Indeed, such data underscores not only trends in business activity but also indicate changes in the US and EU economies in the short term.

On Tuesday, the economic calendar is nearly empty for the EU. Germany is due release a few reports that is one country of 27 EU members. Nevertheless, metrics on Germany's economy could shed light on the overall background of the EU economy. Besides, the US also will not provide any news. Moreover, there is no burning issue to be of vital importance to market participants. The election topic is losing its influence to market sentiment. Investors are less interested in the coronavirus information than earlier. The veto on the 7-year EU budget and the recovery fund is not so thorny because the EU policymakers have plenty of time to settle it.

On November 24, the following scenarios are possible

1)Long positions on EUR/USD still make sense. Today the bulls were trying to push the price above the level of 1.1903, but their efforts were in vain. In means that traders should refrain from buying EUR. Before opening long positions on EUR/USD, it is recommended to wait until a new uptrend emerges again or a downtrend is evidently over.

2)Trading amid the downtrend is reasonable at present because the bias reversed downwards a few days ago. Today the MACD indicator formed a sell signal with a minor delay (it is marked by a circle on the chart). However, even in this case beginners have gained a profit of nearly 55 pips now. I guess this is a decent profit level. So, it would be better to close long deals. New long positions should be opened after the pair corrected upwards a bit.

What's on the chart:

Support and Resistance levels are the levels that are targets when opening buy or sell orders. Take Profit levels can be placed near them.

Red lines are channels or trend lines that display the current trend and show which direction it is preferable to trade now.

Up / down arrows show whether the pair should be traded up or down when reaching or overcoming particular obstacles.

MACD indicator (10,20,3) - a histogram and a signal line. When they are crossed, this signals a market entry. It is recommended for use in combination with trend lines (channels, trend lines).

Important speeches and reports in the economic calendar can greatly influence the movement of the currency pair. Therefore, during their release, it is recommended to trade as carefully as possible or exit the market in order to avoid a sharp price reversal 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 are the key to success in trading over a long period of time.

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

UK Private Sector Contracts Most Since May

Trading 23 Nov 2020 Commentaire »

The UK private sector contracted the most in six months in November due to the fastest reduction in service sector output since May amid temporary closures among leisure and hospitality companies, flash survey results revealed Monday.

The IHS Markit/Chartered Institute of Procurement & Supply composite output index dropped to 47.4 in November from 52.1 in October.

A score below 50 indicates contraction. However, the score was above economists' forecast of 42.5.

The service sector contracted notably in November as the second lockdown weighed heavily on leisure and hospitality sector. In contrast, manufacturing production expanded at a robust pace in November and the rate of growth accelerated since the previous month.

The services Purchasing Mangers' Index slid sharply to 45.8 from 51.4 in the previous month. The score was seen at 52.3.

Meanwhile, the manufacturing PMI rose to 55.2 in November from 53.7 a month ago. The expected reading was 53.3.

Demand from export markets, especially from China and the EU underpinned the manufacturing sector growth.

According to Markit, the underperformance of the service economy relative to the manufacturing sector was the widest in almost 25 years of data collection.

The deterioration in the overall private sector was less severe than reported during the first round of restrictions back in the spring, James Smith, an ING economist said.

For 2021, the outlook looks better, albeit still mixed. Initial supply chain disruptions from Brexit remain a clear possibility, the economist said. While this is unlikely to deliver a Covid-19 style hit to GDP, it will drag on the recovery.

Meanwhile, the news on vaccines offers a clear upside to 2021, but for the economy, a lot will also hinge on how and when the unprecedented furlough support is unwound, Smith added.

Total new work received by UK private sector firms decreased for the second month. Job shedding accelerated across the private sector, with the rate of decline in staffing numbers the steepest for three months.

Looking ahead, private sector companies remain optimistic that business activity will increase during the next 12 months. The degree of optimism was the strongest since March 2015.


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