Analytics and trading signals for beginners. How to trade GBP/USD on November 25? Plan for opening and closing trades on

Trading 24 Nov 2020 Commentaire »

Hourly chart of the EUR/USD pair

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The EUR/USD pair moved up for most of the day on Tuesday. However, it turned down at one point and a sell signal appeared (circled in red). Therefore, novice traders had a reason to open short positions today. Unfortunately, the signal turned out to be false, and traders could lose up to 20 points, as the upward movement resumed in the afternoon. At the end of the day, we can say that the price returned to the upper border of the 1.1700-1.1900 horizontal channel. Starting from November 17, the pair's quotes are in close proximity to this line, so it seems that buyers will push this level. However, the price will remain inside the horizontal channel until they do so, which means there are much more chances of a downward movement towards the lower border of the 1.1700 channel. Unfortunately, there is no trendline or trend channel right now to determine the current short-term trend. Better yet, there is now a vague flat inside the flat, since the price has also been trading in a narrow price range for the last week.

No major macroeconomic reports or events in both the UK and the US on Tuesday. There was some information that novice traders probably paid attention to. For example, the process of transfer of power from Donald Trump to Joe Biden has begun in America, which significantly reduces the likelihood of political chaos that has been observed in recent months. There is also news that vaccination of the US population may begin as early as next month, however, given the number of daily recorded cases of COVID-2019, this information does not support the dollar.

No important news scheduled for Wednesday in the European Union, but several rather important reports will be published in the US. The most important among them, from our point of view, is the report on orders for durable goods in four variations (main indicator, indicator excluding defense orders, indicator excluding transport, indicator excluding defense and aviation orders). If the real numbers turn out to be very different from the forecasted ones, then traders can react to them. But most likely, traders will not be surprised by the GDP indicator, since this is already the third GDP publication in the third quarter and, if there are no surprises, the indicator value will be + 33.1% q/q. If there is more, the dollar will receive support. Less - the euro will receive support. The rest of the indicators are less important and will be in the shadow of the above reports.

Possible scenarios for November 25:

1) Long positions are currently irrelevant. Buyers tried to take the pair above the 1.1903 level, but they did not succeed, which means that it is not recommended to buy the euro right now. You are still advised to wait for a new upward trend or go beyond the 1.1903 level in order to open long positions.

2) Trading for a fall at this time remains relevant, since the trend changed to a downward one a few days ago. We advise you to wait for a new sell signal from the MACD indicator and trade down with targets at the support levels of 1.1849 and 1.1791. The MACD indicator is above the zero level, therefore it is sufficiently discharged.

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

Belgium Business Confidence Weakens For First Time In 7 Months

Trading 24 Nov 2020 Commentaire »

Belgium's business confidence deteriorated in November, after strengthening in the previous six months, survey data from the National Bank of Belgium showed on Tuesday.

The business confidence index fell to -12.1 from -8.5 in October.

The business climate deteriorated sharply in the trade sector in particular, more than wiping out last month's clear rebound, as well as in business-related services.

In the trade sector, demand forecasts collapsed, leading to an anticipated reduction in orders placed with suppliers. Employment opportunities also shrunk, but to a lesser extent.

In the business services sector, demand expectations weakened significantly and entrepreneurs turned more pessimistic regarding the business outlook.

The construction sector also logged an erosion in sentiment eroded, while the manufacturing industry registered a modest improvement in morale on a more positive view on the order books and employment prospects.


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

*Belgium November Business Confidence -12.1 Vs. -8.5 In October

Trading 24 Nov 2020 Commentaire »

Belgium November Business Confidence -12.1 Vs. -8.5 In October


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

*U.S. Consumer Confidence Index Drops To 96.1 In November

Trading 24 Nov 2020 Commentaire »

U.S. Consumer Confidence Index Drops To 96.1 In November


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

Dollar Gains After U.S. Housing Data

Trading 24 Nov 2020 Commentaire »

Federal Housing finance agency's house price index and S&P/Case-Shiller home price index for September have been released at 9:00 am ET Tuesday. Following these data, the greenback rose against its major counterparts.

The greenback was trading at 104.56 against the yen, 1.1869 against the euro, 1.3332 against the pound and 0.9120 against the franc around 9:02 am ET.


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

*S&P CoreLogic Case-Shiller 20-City Home Price Index Up 6.6% YoY In September

Trading 24 Nov 2020 Commentaire »

S&P CoreLogic Case-Shiller 20-City Home Price Index Up 6.6% YoY In September


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

Dollar Rebounds Ahead Of U.S. Housing Data

Trading 24 Nov 2020 Commentaire »

Federal Housing finance agency's house price index and S&P Case-Shiller home price index for September are due at 9:00 am ET Tuesday. Ahead of these data, the greenback recovered from its early lows against its major counterparts.

The greenback was worth 104.56 against the yen, 1.1869 against the euro, 1.3332 against the pound and 0.9120 against the franc as of 8:55 am ET.


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

EUR / USD decline amid contrast in business activity data in Europe and USA, and ongoing COVID-19 crisis

Trading 24 Nov 2020 Commentaire »

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The main currency pair is still under the influence of two oppositely directed factors: the ongoing COVID-19 pandemic and hopes for an early vaccine against the virus.

At the moment, investors are at a crossroads, trying to figure out whether to focus on the negative effects of the coronavirus or on a return to normal in the future.

On Monday, the greenback tested the lows since September 1, but important support near 92 points held out. Meanwhile, strong US PMI data for November came as a surprise to the market and helped USD to halt its retreat and turn sharply higher.

According to preliminary estimates, the composite purchasing managers' index in the US for the current month rose to a maximum in more than five and a half years, at 57.9 points, compared with 56.3 points in October.

A sharp greenback reversal could mean a decrease in investor confidence that the Fed will decide to take any aggressive action at the December meeting.

Given the outlook for an effective vaccine soon, the rise in the US stock market, and strong US statistics, the regulator will most likely prefer to wait until the renewed congressional staff starts work in January before taking action.

EUR / USD was able to briefly break the 1.1900 mark, but then fell sharply to 1.1810, ending Monday's trading near 1.1840.

The contrasts in the data on business activity in Europe and the USA favored the decline of the euro against the dollar.

The composite PMI of the euro area, according to the first estimate, dipped to 45.1 points this month from 50 points in October. The value of the indicator in November became the lowest in six months.

It should be admitted, however, that European purchasing managers' indices were not as bad as economists feared. The manufacturing sector in Germany and the eurozone as a whole has strengthened. Given the scale of recent restrictive measures in the region, it can be said that the situation could be much direr. However, the indicators may still be revised downward.

On Tuesday, the US dollar slowed down its recovery from 12-week lows, where it was the day before.

The defensive greenback was under pressure from reports that Donald Trump had given the go signal to the head of the General Services Administration (GSA), Emily Murphy, for the handover of power to Joe Biden.

Also, the market reacted very positively to the news about the possible appointment of Janet Yellen for the post of Treasury Secretary under Biden. Since the former Fed chair is associated with financial incentives among investors, this news increased risk appetite and allowed the euro to regain some of its recent losses against the dollar.

"The strong support level for EUR / USD near 1.1790 is still unbreakable, but the weakening of the bullish momentum indicates that the pair is not ready to break above 1.1920. Now it can trade sideways for some time, and only an exit from the 1.1790-1920 range will signal the beginning of a more directional movement, "UOB experts believe.

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

NZDUSD continues making higher highs but also new bearish divergencies.

Trading 24 Nov 2020 Commentaire »

NZDUSD has climbed to 0.6980. Price is out of the bullish channel but continues to make higher highs and higher lows. At current price levels as explained in previous posts we prefer to be neutral if not bearish as we expect a turn lower towards 0.68.

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Blue lines - bullish channel

Red line- bearish divergence

Green line - support trend line

Black lines -Fibonacci retracements

NZDUSD has short-term support at 0.6920-0.6925. A break below this level will be a short-term bearish signal that could bring price to 0.6840. The first important Fibonacci level we expect to be seen is around 0.6840. Nulls remain in control of the trend as long as price remains above the green trend line.

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

UK Retailers Expect Sales To Stabilize In December: CBI

Trading 24 Nov 2020 Commentaire »

British retailers expect sales volumes to be broadly flat in the year to December with the nationwide lockdown due to end on December 2, the Distributive Trades Survey from the Confederation of British Industry showed on Tuesday.

Although sales volumes decreased in November, online sales posted its biggest growth in two years. The retail sales balance fell to -25 percent in November from -23 percent in October.

A balance of 55 percent said internet sales increased in November, the fastest since October 2018.

Orders decreased in November, but at the slowest pace since December 2019. The balance came in at -10 percent versus -39 percent in October. Orders are expected to fall at a similar pace next month.

"This month's survey gives hope that the economic impact of the Autumn lockdowns should not be as severe as in the Spring," Ben Jones, CBI principal economist, said.

Both consumers and firms are adapting as best they can, borne out in this month's strong online sales.

With encouraging progress on mass, rapid testing and vaccine solutions coming down the track, there is reason for growing consumer and business confidence going into 2021, Jones added.


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