Analytics and trading signals for beginners. How to trade GBP/USD on February 3? Analysis of Tuesday. Getting ready for Wednesday

Trading 02 Fév 2021 Commentaire »

Hourly chart of the GBP/USD pair

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The GBP/USD pair tried to break through the upward trend line all day on Tuesday. The price tried to settle below it during the evening, but very quickly turned back to the upside, thereby forming a false sell signal. If novice traders opened short positions on this signal during the evening, they could lose around 14 points (the losing trade should have been closed at the close of the candle, which brought the price back above the trend line). However, during the daytime, the price settled below the trend line again and this signal has already become correct. We gave 1.3653 and 1.3607 as targets for bearish trading. The first target was reached with relative ease, while the price fell short of the second target by only three points. In any case, novice traders could earn around 20 to 50 points on this signal. Thus, even if a loss was received at night due to a false signal, it was still covered by a profitable trade during the day. In general, the pound/dollar pair crossed the rising trend line and failed to settle above the 1.3744 level. Thus, the chances of a further fall in the British currency sharply increased on Tuesday. Now you need to wait for a new sell signal from MACD.

No major report published in the UK or America on Tuesday, not a single major event. Thus, the dollar strengthened on Tuesday due to technical reasons, not fundamental ones. Five rebounds from the 1.3744 level still played a role.

There will be more interesting reports on Wednesday. First, the UK Services PMI. Secondly, a similar index for the US service industry. Third, a report on changes in the number of employees in the US ADP private sector. The first two reports do not raise any questions and it is unlikely that there will be major changes in them compared to the previous month. However, the report from ADP may provoke a reaction from market participants. Especially if the actual value differs greatly from the forecast. The forecast is +50,000 employees. Any value higher can help the dollar to continue to grow, lower - to provoke a pullback to the upside.

Possible scenarios on February 3:

1) Long positions have ceased to be relevant, since the price still broke the upward trend line. So now you need to wait for the upward trend to resume in order to be able to trade bullish again. The most interesting thing is that the price bounced back from the 1.3610 level, from which it had already rebounded on January 26. Thus, further downward movement is not obvious.

2) Short positions have become relevant at the moment, since a new downward trend has formed. However, the price was unable to overcome the 1.3610 level for the second time, so there is also a possibility of returning to the 1.3744 level. However, we still recommend trying to work out the next sell signal (if it is generated at all). To do this, you need to wait for the MACD indicator to discharge as close to the zero level as possible and after that, a downward reversal. The targets in this case will be located near the levels of 1.3622 and 1.3610.

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 February 3? Analysis of Tuesday. Getting ready for Wednesday

Trading 02 Fév 2021 Commentaire »

Hourly chart of the EUR/USD pair

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The EUR/USD pair resumed the downward movement without a proper correction on Tuesday. Due to the fact that the price only slightly retreated from the local lows, and the MACD indicator did not manage to discharge to the zero level. Therefore, a weak signal to sell from the MACD indicator was formed, but we advise you to consider only strong and clear signals. Those have not been formed at the moment. Therefore, according to our recommendations, one should not have opened trading positions. In general, the downward trend that has formed for the pair after the quote surprised the rising channel will remain. A downward trend line was also built today, which also supports bearish traders. Thus, in the current situation, you should either wait for a new sell signal from MACD, or to have the price settle above the trend line. The main thing is that the price managed to overcome the 1.2059 level, which significantly increases the likelihood of continued strengthening of the US dollar.

The entire macroeconomic background on Tuesday was reduced to a single report on the Gross Domestic Product in the European Union for the fourth quarter. Take note of the projected decline in GDP, from 1% to 2.2%. However, in reality, the decline was only 0.7% q/q. Thus, the report came out better than expected. However, it did not matter to the euro at all, as the markets continued to cheerfully ignore the statistics. In addition, it is too early to rejoice, there will be two more estimates of GDP for the fourth quarter, there may still be a deterioration or improvement in the indicator. The main thing that we can say is that traders are still ignoring the foundation and macroeconomics. Therefore, technical factors are a priority.

The indexes of business activity in the service sector of the US and the European Union will be published on Wednesday. And here, I must say, the differences are clearly visible. There is a 99% probability that business activity in the eurozone will remain below the 50.0 level, which will indicate a decline in this area, but in the US, on the contrary, there is a 99% probability that the index will be above the 50.0 level, which indicates growth. Thus, if traders suddenly decide to pay attention to statistics, then these reports can help the dollar rise. But the report on EU inflation has a very strange forecast for January, at +0.4%. Recall that deflation has been recorded in Europe in the last five months, that is, negative inflation. Not least because of the strong growth of the euro against the dollar over the past ten months. Now a sharp acceleration of inflation is expected. This is strange. But if the forecast comes true, then the euro could rise due to this report. If, again, the markets pay attention to statistics.

Possible scenarios on February 3:

1) Long positions have lost their relevance at the moment, since the price left the second rising channel. You can consider new long positions on the pair if the quote settles above the downward trend line. You can aim for levels 1.2084 and 1.2111.

2) Trading for a fall is currently relevant. The 1.2059 level has been overcome, so the chances of further downward movement have increased. However, we advise you to trade bearish only after the next round of correction, the MACD indicator is discharged to zero and a sell signal is generated. Or if the price rebounds off the trend line. The targets are 1.2004 and 1.1951.

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.

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

Czech Economic Expansion Slows

Trading 02 Fév 2021 Commentaire »

The Czech economic growth slowed sharply in the fourth quarter of 2020 as a resurgence in coronavirus infections damped activity in Europe, preliminary data showed Tuesday. Seasonally adjusted gross domestic product grew 0.3 percent from the third quarter, when it rose 6.9 percent. That defied economists' expectation for a decline of 2.5 percent. The economy expanded for a second quarter in a row. GDP decreased 5 percent year-on-year in the fourth quarter after a 5.3 percent decline in the previous three months. Economists had forecast a 7.7 percent fall. The decrease was caused mainly by a deepening slump in consumption expenditure of households, whereas external demand was significantly increasing, the agency said.

The economy shrank 5.6 percent for the full year 2020, logging the deepest slump in economic performance in the history of the independent Czech Republic.

The decline was influenced mainly by household consumption, investment expenditure and also by a slump in external demand in the first half-year when the coronavirus pandemic spread. The general government expenditure grew.


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LTC/USD holds support and challenges major resistance

Trading 02 Fév 2021 Commentaire »

LTC/USD fell as low as $125 and did not break the important support of $118.50. Price has reversed and has broken key trend line resistance while now it challenges recent highs at $145. If bulls manage to recapture $145 we could see $160-65 next.

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Red line -resistance

Green rectangle- support

Blue rectangle - resistance

LTC/USD is challenging the horizontal resistance at $145. With a lower high in place at $125, a break above $145 would be a bullish signal. Price has also broken above the red trend line resistance and all signs point to a move higher. Only a close below $131 would destroy bull's chances.

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

February 2, 2021 : GBP/USD Intraday technical analysis and trade recommendations.

Trading 02 Fév 2021 Commentaire »

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In December, the price levels of (1.3380-1.3400) have prevented further bullish movement for a few weeks.Bearish target was projected towards 1.3300. However, the pair has failed to pursue towards lower targets.

Instead, a bullish spike was expressed towards 1.3480-1.3500 where the upper limit of the depicted movement channel has previously provided bearish pressure on the pair.

Shortly after, another bullish spike has recently been demonstrated towards 1.3600 where the upper limit applied considerable bearish rejection again.Recently, the GBPUSD pair looked overbought while consolidating above the key-level of 1.3400.

As expected, bearish reversal was recently initiated around 1.3600. A quick bearish decline was demonstrated towards 1.3200.

However, the GBP/USD pair has failed to maintain bearish decline below 1.3200 in the previous attempt. Instead, bullish persistence above 1.3400 invalidated the bearish scenario for the short-term.

Another temporary bullish movement is being expressed to test the previous WEEKLY High around 1.3700. Further upside movement is expected towards the upper limit of the current movement channel around 1.3800 where bearish rejection and a possible SELL Entry are suggested.

Intermediate-term outlook can turn into bearish if only the GBP/USD pair could break below and maintain movement below 1.3400. If so, a quick bearish decline initially towards 1.3200-1.3150 would be expected.

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

NZDUSD still near highs of 0.72

Trading 02 Fév 2021 Commentaire »

NZDUSD is trading just 60-70 pips lower than the recent highs. Price remains inside the bullish channel. This pair is not as vulnerable as other USD pairs and price remains supported. Our view is that a deep pull back should be expected and upside potential is limited.

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Blue lines - bullish channel

Red lines - bearish divergence

The RSI is providing us with a warning. The bearish divergence in the RSI should be noted and traders must keep a close eye on the short-term support levels. Support is found at 0.7050-0.7090. Breaking below this area will be a bearish sign and will imply a bigger pull back is to be expected. Resistance remains at 0.7245 and as long as price is below this level, NZDUSD is vulnerable to a correction.

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

February 2, 2021 : EUR/USD daily technical review and trade recommendations.

Trading 02 Fév 2021 Commentaire »

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Few weeks ago, another episode of upside movement was expressed towards 1.2250 then 1.2350 where a false breakout above the price level of 1.2200 was regarded as a considerable bearish reversal signal.

Shortly after, a short-term reversal pattern has been demonstrated around these price levels. Intraday downside retracement to the downside was expected to occur.

However, the EUR/USD pair has failed to pursue towards lower price levels. Instead, the pair has spiked above the depicted Weekly HIGH around 1.2270 before the current bearish rejection was initiated around 1.2350.

Bearish closure below the mentioned price zone of 1.2250 - 1.2200 enabled a quick bearish decline towards 1.2170 which corresponded to a previous congestion zone as well as a prominent key-zone.

Persistence below the price level of 1.2170 has turned the intermediate outlook for the pair into bearish and enhanced further downside decline towards 1.2080 and just above few pips above 1.2040 as expected.

Currently, an atypical reversal Head & Shoulders Pattern is being depicted on the chart. Further confirmation needs more bearish persistence below 1.2170.

On the other hand, the recent upside pullback towards 1.2170 was suggested to be considered for SELLING the EURUSD pair again. It's already running in profits. S/L should be placed just above 1.2220.

Next projection target for the EURUSD pair would be located around 1.1990 where price action should be watched cautiously.

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

February 2, 2021 : EUR/USD Intraday technical analysis and trade recommendations.

Trading 02 Fév 2021 Commentaire »

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Recently, the EURUSD pair looked overbought while approaching the price levels of 1.2250 (138% Fibonacci Level).

That's why, conservative traders were advised to look either for SELL Positions around the previous price levels at 1.2330 (150% Fibonacci Level) in the previous article.

Recently, Bearish closure and persistence below 1.2160 was needed to abort the ongoing bullish momentum. This allowed the recent bearish movement to pursue towards 1.2050 where the depicted key-zone is located.

However, Intraday traders should were advised to look for short-term BUY Trade around the price zone of 1.2000.

This price zone provided temporary bullish SUPPORT for the EURUSD. However, lack of sufficient bullish momentum is currently being demonstrated.

Early Exit should be considered for the previous BUY Position while waiting for a possible bearish continuation Pattern.

Bullish closure below 1.2160 is needed to enhance further upside movement towards 1.2250 as an Intraday target. On the other hand, Bearish closure below 1.2000 would enhance the continuation of the current bearish Head and Shoulders Pattern towards lower targets around 1.1950 and probably 1.1860

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EURUSD tests major support trend line

Trading 02 Fév 2021 Commentaire »

EURUSD has broken below 1.2050. Support at 1.2050 was tested and respected several times. Breaking below this level is a bearish sign and we expect price to continue lower over the coming sessions.

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Red line - short-term resistance trend line

Green line - medium-term support trend line

EURUSD is now challenging the medium-term green trend line support at 1.2020. Price remains in a short-term bearish trend. Breaking below 1.2020 will open the way for a move towards 1.19-1.1870. The RSI in the Daily chart is far from oversold and continues making lower lows as price is making lower lows. Any bounce is considered a selling opportunity given the current conditions.

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

Gold under pressure

Trading 02 Fév 2021 Commentaire »

Gold price has broken below $1,850 once again. Price continues to trade sideways between $1,830 and $1,870. Price is now at the lower trading range boundary. Breaking below $1,830 will imply more downside to be expected towards $1,800.

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Blue lines - trading range

Gold price got rejected once again around $1,870 and is now back near 2021 lows. Support is at $1,830 and next at $1,800. Short-term traders could take advantage of the swings inside the trading range and be bullish as long as price holds above $1,830. $1,850 upside potential if $1,830 holds. Medium-term support is found at $1,800-$1,810. Breaking below it will open the way for a move towards $1,750 and lower. $1,850 remains key pivot level.

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