Analytics and trading signals for beginners. How to trade GBP/USD on January 13? Analysis of Tuesday. Getting ready for Wednesday

Trading 12 Jan 2021 Commentaire »

Hourly chart of the GBP/USD pair

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The GBP/USD pair continued the upward movement on Tuesday, January 12, which began a day earlier after the price rebounded from the lower border of the descending channel. By the end of the trading day, the pair's quotes rose to the upper border of the same channel and settled above it. The trend changed to an upward one and even a buy signal appeared, but it is weak, therefore, you shouldn't work it out. It is considered weak because when it appeared the pair had already grown by around 150 points. Accordingly, there aren't many chances for the pair to move by another 50-100 points without a downward correction. Therefore, we recommend waiting for the downward correction, afterwards a buy signal will appear. But if novice traders have opened buy deals on this signal, then that means they are now in profit by around 30 points, which is not bad. So far, it looks like a long-term upward trend will resume. So now the pound/dollar pair raises a lot of questions, and even more questions are raised about the validity of the British pound's succeeding growth. But you have to choose from two options: either do not trade at all, or trade in the state of affairs that is.

Fundamentally, a rather important and unexpected event took place for the pound on Tuesday. Bank of England Governor Andrew Bailey delivered a speech, and one of his theses was "with negative rates there will be many difficulties and problems." This came across as an implication that the Bank of England will not lower the rate in the near future. That is, it will not soften the monetary policy and so market participants immediately bought the pound. But if this is the only reason for buying the pound, then a new downward movement may begin tomorrow. From our point of view, the foundation is not on the pound's side.

No major UK events scheduled for Wednesday, January 13, but then again Bailey spoke on Tuesday. Therefore, beginners will have to trade based solely on technical factors. The only thing is US inflation. It can affect the course of trading. But the chances of this, again, are few.

Possible scenarios for January 13:

1) Buy orders became relevant again, since the pair's quotes left the descending channel. Thus, you are now advised to consider long positions, but after a downward correction cycle, the indicator discharges to zero and a new buy signal is created. Aim for the resistance level at 1.3682 (to be revised tomorrow morning).

2) Sell positions have lost their relevance. Now you need to wait for a new downward trend or the end of the current upward trend. You can try to play on the correction, which should start in the near future, but it is always risky to trade against the trend. And the MACD indicator may not discharge in parallel with the decline, thereby creating a false sell signal.

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 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

Analytics and trading signals for beginners. How to trade EUR/USD on January 13? Analysis of Tuesday. Getting ready for Wednesday

Trading 12 Jan 2021 Commentaire »

Hourly chart of the EUR/USD pair

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The EUR/USD pair unexpectedly began to exclusively move sideways with minimal volatility on Tuesday, January 12. A more or less tangible upward movement began and reached the upper line of the descending channel by the end of the trading day. This is the kind of movement that we have been expecting. In the morning review, we advised you to wait for the MACD indicator to discharge and create a new strong sell signal. Such a signal could have formed only due to an upward correction. It did not appear during the day but can do so in the near future, possibly at any moment now. The MACD indicator has already come close to the zero level, and the price has to pass 20-25 points to reach the upper border of the channel. Thus, either a rebound from this line or a downward reversal of the MACD may bring back the downward movement. Of course, another option is not excluded, in which the channel will be overcome. But in this case, novice traders will receive a buy signal.

No major news for the euro or the dollar on Tuesday. In fact, the important news right now only concerns the political crisis in the United States. Donald Trump may face impeachment at the end of his presidential term, which threatens him with big problems in the future and severe restrictions when he becomes a private citizen. Joe Biden's inauguration day also raises concerns. Will something similar happen on January 6? In any case, Trump has already introduced a two-week emergency regime in Washington, and it is not clear whether he is cautious against new attacks by demonstrators or is he insuring himself in case he is again accused of riots?

The US will publish the consumer price index for December on Wednesday, January 13. The dollar may slightly increase if inflation rises over the reporting month. In fact, traders can ignore macroeconomic reports again. European Central Bank President Christine Lagarde will speak at the European Union, but everything will depend on her rhetoric. Lagarde can talk not only about monetary policy, but also about other aspects of the financial system. Forex market participants are most interested in the economy and how the central bank affects it, that is, monetary policy.

Possible scenarios on January 13:

1) Long positions are currently irrelevant, since the downward trend remains in force. Thus, those who wish to buy the euro/dollar pair should wait for a new upward trend to appear or the end of the downward trend (consolidation of quotes above the descending channel). In this case, you can consider long positions with targets around the 1.2264 level.

2) Trading for a fall is more relevant now, since there is a descending channel. Thus, you are advised to open new short positions while aiming for support levels 1.2112 and 1.2074 (to be specified on Wednesday morning), if a new MACD sell signal is generated, which should be discharged to zero before that. Also, a rebound from the upper border of the descending channel can be considered as a sell signal.

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

India Inflation Eases More Than Expected

Trading 12 Jan 2021 Commentaire »

India's consumer price inflation slowed more than expected in December, figures from the statistics ministry showed on Tuesday.

The consumer price index rose 4.59 percent year-on-year following a 6.93 percent increase in November. Economists had forecast 5.28 percent inflation.

The Consumer Food Price Index rose 3.41 percent annually in December after a 9.50 percent climb in November.

Compared to the previous month, the CPI fell 1.01 percent and the CFPI decreased 3.25 percent in December.

Prices of food and beverages increased 3.87 percent annually and those of clothing and footwear grew 3.49 percent. Housing costs grew 3.21 percent. Fuel and light cost rose 2.99 percent.


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

India Industrial Production Falls More Than Expected

Trading 12 Jan 2021 Commentaire »

India's industrial production decreased more-than-expected in November, figures from the statistics ministry showed on Tuesday. The industrial production index fell 1.9 percent from the same month in the previous year. Economists had forecast a decline of 0.4 percent. In November 2019, production grew 2.1 percent. Manufacturing output decreased 1.7 percent annually in November. Mining output shrunk 7.3 percent. Electricity output rose 3.5 percent.

In the April to November period, industrial production decreased 15.5 percent from the same period in the previous year.


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

German Economy To Grow 3.5% This Year – BDI

Trading 12 Jan 2021 Commentaire »

Germany's economy is set to expand this year on the back of export growth, but the biggest euro area economy will reach pre-crisis level only in the first half of next year, Federation of German Industries/BDI said Tuesday. The industry body predicted 3.5 percent growth for the German economy this year. GDP shrunk around 5 percent in 2020 as the coronavirus pandemic and subsequent lockdowns hurt economic activity severely. Exports are expected to grow 6 percent after an 11 percent slump last year. "A return to the pre-crisis level will therefore not be achieved in the current year," BDI President Siegfried Russwurm said.

"But there should be a good chance that it will succeed in the first half of 2022."


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

Pound Spikes Up As BoE Bailey Downplays Negative Rate Hopes

Trading 12 Jan 2021 Commentaire »

The pound was higher against its major counterparts during European deals on Tuesday, after Bank of England Governor Andrew Bailey downplayed expectations of taking interest rates negative to stimulate the economic growth.

In an online speech to the Scottish Chambers of Commerce, Bailey said that the monetary policy committee is debating the merits of negative interest rates.

It has a lot of implications such as reducing bank profits, he added.

The third national lockdown to contain the spread of the coronavirus will delay the economic recovery.

The resurgence in COVID-19 cases would 'delay, probably, the trajectory' of recovery.

Data from the British Retail Consortium showed that UK retailers logged the worst year on record for sales growth due to the Covid-19 pandemic.

In 2020, total retail sales decreased 0.3 percent, the worst annual change since records began in 1995.

The pound jumped to 0.8933 versus the euro, its biggest level since December 1. If the pound continues its rise, 0.88 is possibly seen as its next resistance level.

The pound climbed to a 4-day high of 1.3607 against the greenback from Monday's close of 1.3510. On the upside, 1.42 is likely seen as the next resistance level for the pound.

The pound advanced to more than a 4-month high of 141.80 against the yen and an 8-day high of 1.2110 against the franc, compared to yesterday's closing values of 140.88 and 1.2026, respectively. The pound is likely to find resistance around 144.00 against the yen and 1.24 against the franc.


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

Ichimoku cloud indicator Daily analysis of Gold

Trading 12 Jan 2021 Commentaire »

Gold bulls are unable to recapture $1,850 and move back above the Kumo (cloud). Price remains vulnerable and we are now seeing a downward break. Price is moving below the Kumo (cloud) and this is a bearish sign.

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The Chikou span (black line indicator) is right on top of the candlestick pattern. A move below it and especially if price breaks below recent low of $1,817, we should expect selling pressure to rise and Gold to move below $1,800 towards $1,750. Bulls need to push price above the Kumo again otherwise they will lose control of the trend.

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The weekly chart remains vulnerable to a move towards cloud support at $1,750-$1,700. Price is below both the tenkan-sen and kijun-sen indicators. Bulls need to see price recapture $1,919 on a weekly basis in order to feel safe again and to forget the bearish scenarios.

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

*India Dec Inflation 4.59% Vs. 6.93% In Nov, Consensus 5.28%

Trading 12 Jan 2021 Commentaire »

India Dec Inflation 4.59% Vs. 6.93% In Nov, Consensus 5.28%


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

*India Nov Industrial Production Falls 1.9% On Year, Consensus -0.4%

Trading 12 Jan 2021 Commentaire »

India Nov Industrial Production Falls 1.9% On Year, Consensus -0.4%


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

Romania Q3 GDP Growth Revised Up

Trading 12 Jan 2021 Commentaire »

Romania's economy recovered at a faster than estimated pace in the third quarter, second estimates from the National Institute of Statistics showed Tuesday.

Gross domestic product grew 5.8 percent sequentially in the third quarter instead of 5.6 percent estimated previously. The economy had contracted 12.2 percent in the second quarter.

On a yearly basis, GDP fell 5.7 percent after falling 10.3 percent in the second quarter. The rate was revised from 6 percent.

During the first three quarters of 2020, GDP was down by real 4.5 percent from the same period last year.


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