GBPUSD challenges important weekly resistance

Trading 18 Déc 2020 Commentaire »

GBPUSD is about to break above key weekly resistance that was tested three times before. This is the fourth time GBPUSD is at the 1.35 resistance area and the second time during the last 13 months. The last two times price was at current levels got rejected and pulled back at least 800pips. This time we see a breakout coming.

analytics5fdd18e96d412.jpg

Green line - support trend line

Red line -resistance trend line

Green rectangles - attempts at 1.35 resistance

GBPUSD is clearly in an up trend as price is making higher highs and higher lows since last January lows around 1.15. Price will remain in a bullish trend as long as price is above the green trend line support. This support is now at 1.31. Breaking above 1.35 and holding above it is key for a continued upward move towards 1.42-1.43. The RSI so far is not making a higher high as price is relative to the Summer high. It is too soon to tell if we will see a bearish divergence. Nevertheless there is no reversal sign on the horizon, so we remain in the bullish camp.

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

Weekly view on EURUSD

Trading 18 Déc 2020 Commentaire »

EURUSD has captured the 1.22 level and continues to make higher highs and higher lows. On a weekly basis price has broken above key trend line resistance and we could see price extend towards 1.27 over the coming weeks.

analytics5fdd164654137.jpg

Red horizontal lines - Fibonacci extensions

Red downward sloping trend line - weekly resistance

EURUSD has broken above the trend line resistance and is heading towards the 100% extension Fibonacci target at 1.2740. Trend is clearly bullish and price is following similar pattern to the upside move it did back in 2016-2018 from 1.05 to 1.25. Currently it is not wise to go against such a weekly breakout, but look for opportunity pull backs to re-enter long.

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

Belgium Business Confidence Rises In December

Trading 18 Déc 2020 Commentaire »

Belgium's business confidence strongly improved in December, led by an sharp increase in sentiment in the services sector, survey data from the National Bank of Belgium showed on Friday.

The business confidence index rose to -8.4 from -12.1 in November. Economists had expected the reading to fall to -13.4.

General demand expectations picked up considerably in the services sector, the survey found.

Morale improved in the trade sector and rose further in the manufacturing industry, but deteriorated in the construction sector.


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

Ichimoku cloud indicator Daily analysis of Gold

Trading 18 Déc 2020 Commentaire »

Gold price as expected has reached the $1,900 resistance area. The Ichimoku cloud indicator confirms that the area around $1,900 is important cloud resistance and bulls will need to break above it, otherwise a rejection and move lower could be dangerous for the bullish case.

analytics5fdd154b7f9c0.jpg

Gold price is below the Daily Kumo (cloud). This is a bearish sign. A rejection at the cloud would be a bearish sign. Support by the tenkan-sen (red line indicator) is found at $1,857 and next at the kijun-sen (yellow line indicator) at $1,830. A pull back towards these levels would be a gift for bulls and a buying opportunity. On the other hand bears do not want to see price break above the cloud. Breaking above the cloud would be an important win for bulls.The material has been provided by InstaForex Company - www.instaforex.com

U.S. Leading Economic Index Climbs Slightly More Than Expected In November

Trading 18 Déc 2020 Commentaire »

A report released by the Conference Board on Friday showed its index of leading U.S. economic indicators increased by slightly more than expected in the month of November.

The Conference Board said its leading economic index rose by 0.6 percent in November after climbing by 0.8 percent in October. Economists had expected the index to increase by 0.5 percent.

"Initial claims for unemployment insurance, new orders for manufacturing, residential construction permits, and stock prices made the largest positive contributions to the LEI," said Ataman Ozyildirim, Senior Director of Economic Research at The Conference Board.

He added, "However, falling average working hours in manufacturing and consumers' worsening outlook underscore the downside risks to growth from a second wave of COVID-19 and high unemployment."

The report said the coincident economic index edged up by 0.2 percent in November after rising by 0.6 percent in October.

The lagging economic index also increased by 0.4 percent in November after climbing by 0.3 percent in the previous month.


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

*U.S. Leading Economic Index Climbs 0.6% In November

Trading 18 Déc 2020 Commentaire »

U.S. Leading Economic Index Climbs 0.6% In November


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

*Canadian Retail Sales Edged Up 0.4% In October

Trading 18 Déc 2020 Commentaire »

Canadian Retail Sales Edged Up 0.4% In October


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

German Ifo Business Sentiment Strengthens Unexpectedly

Trading 18 Déc 2020 Commentaire »

German business confidence improved in December as managers were more satisfied with their current situation and less skeptical about future, survey results released by the Munich-based ifo Institute showed Friday.

The business confidence index rose unexpectedly to 92.1 in December from revised 90.9 in the previous month. The score was forecast to ease to 90.0 from November's initially estimated value of 90.7.

While the lockdown is hitting certain sectors hard, overall the German economy is showing resilience, Clemens Fuest, ifo President said.

Both current assessment and expectations advanced from November. The current conditions indicator came in at 91.3, up from 90.0 a month ago. Economists had forecast the reading to fall to 89.0.

The expectations index improved to 92.8 in December from 91.8, which was above the expected reading of 92.5.

The increase in business confidence for December supports the assessment that Germany will avoid a contraction in the fourth quarter, Melanie Debono, an economist at Capital Economics, said.

But the new tightening in coronavirus restrictions, which came into effect this week, means that activity will remain subdued at the start of the New Year, before picking up in the second quarter, Debono noted.

The majority of the survey responses were collected before the decision to impose a tougher lockdown. The closure of non-essential shops until at least January 10 will weigh on retail and service sectors.

In manufacturing, business sentiment rose markedly in December. Assessments of the current situation hit its highest level since January. Optimism regarding the coming six months also increased noticeably.

In the service sector, the business climate indicator recovered somewhat. Companies were more satisfied with their current situation and their expectations were also a little less pessimistic.

In trade, the business climate improved and remained unchanged in the construction sector, the survey showed.


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

UK Manufacturing Orders Growth Fastest In 10 Months: CBI

Trading 18 Déc 2020 Commentaire »

UK manufacturing orders grew at the strongest pace in ten months in December as the rollout of the Covid-19 vaccine raised hopes for the future, the Industrial Trends Survey from the Confederation of British Industry showed Friday.

The order book balance rose to -25 percent in December from -40 percent in November. This was the highest since February 2020. However, they remained below the long-run average of -14 percent.

The export order books balance improved moderately to -44 percent from -51 percent in the previous month.

Manufacturers reported a slower decline in output volume in three months to December. A net balance of -6 percent expect output to fall in the next quarter.

Manufacturers expect muted pricing pressure in the next three months.

Tom Crotty, Group Director at INEOS and Chair of the CBI Manufacturing Council, said 2020 has been an incredibly difficult year for manufacturers, as firms have had to deal with the dual impact of a global pandemic and continued Brexit uncertainty.

"One of the key ways the government can help manufacturers is to strike a Brexit deal, as manufacturing is one of the sectors that would be hardest hit by a no deal Brexit," Crotty said.


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

Russia Central Bank Keeps Rates On Hold

Trading 18 Déc 2020 Commentaire »

Russia's central bank left its key interest rates unchanged, on Friday, as inflation exceeded the target largely due to one-off pro-inflationary factors.

The Board of Directors, led by Governor Elvira Nabiullina decided to retain the benchmark rate at 4.25 percent.

The bank had reduced the rate by 25 basis points in July and 100 basis points in June.

"Given the high heterogeneity of current economic and price movement trends, the Bank of Russia will assess the subsequent developments and the existence of a potential for additional key rate reduction," the bank said.

Although inflation is expected to lie within the range of 4.6 percent - 4.9 percent at the end of 2020, disinflationary risks do not prevail in 2021 as much as before, the bank said.

According to Bank of Russia's forecast, annual inflation will reach 3.5-4.0 percent in 2021 and will stabilize close to 4 percent later on.

With headline inflation likely to remain high into 2021, this suggests that there is much less scope for further interest rate cuts, Liam Peach, an economist at Capital Economics, said.

The central bank forecast the economy to contract around 4 percent this year. In spring 2021, the Russian economy is forecast to resume its sustainable growth as the coronavirus situation returns to normal. Accommodative monetary policy will continue to support the economy throughout the next year, the bank added.


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