Analytics and trading signals for beginners. How to trade EUR/USD on February 11? Analysis of Wednesday. Getting ready for

Trading 10 Fév 2021 Commentaire »

Hourly chart of the EUR/USD pair

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The EUR/USD pair continued its upward movement on Wednesday, and reached the first resistance level of 1.2144 by the end of the day. However, if we only take the previous trading day into account, it becomes clear that there was no upward movement today, and volatility was low. Thus, it was extremely inconvenient to trade the pair, despite the seemingly present strong upward trend. Yesterday, we said that there is no point in building an upward trend line. Considering that the upward movement is practically recoilless, any more or less strong correction will lead to consolidation below such a trend line, which will be (with a high degree of probability) a false signal about a trend change. However, we still built such a trend line in order for novice traders to visualize that nothing would change in trading if the trend line existed. In the last article on the euro/dollar, we advised you to trade bullish if a strong buy signal from the MACD is generated, which is previously discharged to the zero level. You were also advised to open long positions if the pair rebounds from the 1.2059 level. Neither the first nor the second condition was met. It was not recommended to trade bearish at all. Therefore, novice traders today should not have opened any positions.

The macroeconomic background was extremely weak on Wednesday. Only one report published - US inflation. However, traders did not react to it, although the consumer price index decreased compared to December. In addition, two speeches from Wednesday - Christine Lagarde and Jerome Powell - however, they did not provide anything interesting in terms of new information. However, all this is obvious judging by the pair's volatility indicator for February 10. From the low to the high, the quotes passed 35 points for almost the entire day.

The situation with the foundation and macroeconomics will be even more deplorable on Thursday. One report on claims for unemployment benefits in the United States, which with almost a 100% likelihood, will not provoke any retaliatory actions from traders. There are no more events and reports in the news calendar. Thus, the pair may have very low volatility again, and trading decisions will have to be made solely on the basis of technical factors, which, in principle, is better for novice traders.

Possible scenarios on February 11:

1) Long positions are currently relevant, since the trend has been upward after trend lines were surpassed. So now novice traders are advised to wait for a new round of correction and the MACD indicator to discharge to the zero level, afterwards we wait for a new buy signal and buy the pair while aiming for resistance levels 1.2144 and 1.2170.

2) Trading bearish has ceased to be relevant at the moment. So now novice traders need to wait for a new downward trend and you could only consider trading bearish after that. Such a scenario is not expected in the near future, since there isn't even a trend line or channel right now.

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 in the Forex market should remember that every trade cannot be profitable. Developing a clear strategy and money management are the keys to success in trading over a long period of time.

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

*U.S. Crude Oil Inventories Decrease By 6.6 Million Barrels In Week Ended 2/5

Trading 10 Fév 2021 Commentaire »

U.S. Crude Oil Inventories Decrease By 6.6 Million Barrels In Week Ended 2/5


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

U.S. Wholesale Inventories Rise More Than Expected In December

Trading 10 Fév 2021 Commentaire »

Wholesale inventories in the U.S. increased by more than expected in the month of December, according to a report released by the Commerce Department on Wednesday.

The Commerce Department said wholesale inventories rose by 0.3 percent in December after coming in virtually unchanged in November. Economists had expected inventories to inch up by 0.1 percent.

The bigger than expected increase in wholesale inventories came as inventories non-durable goods climbed by 0.6 percent, while inventories of durable goods crept up by 0.1 percent.

The report also said wholesale sales surged up by 1.2 percent in December after rising by 0.3 percent in the previous month.

Sales of durable goods spiked by 2.1 percent during the month, while sales of durable goods increased by 0.4 percent.

With sales jumping by much more than inventories, the inventories/sales ratio for merchant wholesalers dipped to 1.29 in December from 1.31 in November.

Next Wednesday, the Commerce Department is scheduled to release a separate report on business inventories in the month of December. Economists currently expect inventories to rise by 0.4 percent.


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

U.S. Consumer Prices Rise 0.3% Amid Continued Spike In Gas Prices

Trading 10 Fév 2021 Commentaire »

With gasoline prices continuing to spike, the Labor Department released a report on Wednesday showing consumer prices in the U.S. increased in line with economist estimates in the month of January.

The Labor Department said its consumer price index rose by 0.3 percent in January after edging up by a revised 0.2 percent in December.

Economists had expected consumer prices to climb by 0.3 percent compared to the 0.4 percent increase originally reported for the previous month.

The consumer price growth was primarily due to the continued jump in gasoline prices, which soared by 7.4 percent in January after surging up by 5.2 percent in December.

Higher gasoline prices contributed to a 3.5 percent increase by the energy index even though prices for electricity and natural gas declined.

The report also showed a slight increase in food prices, which inched up by 0.1 percent in January, as an advance in prices for food away from home more than offset a dip in prices for food at home.

Excluding food and energy prices, core consumer prices came in unchanged for the second consecutive month. Economists had expected core prices to rise by 0.2 percent.

The Labor Department said higher prices for apparel, medical care, shelter, and motor vehicle insurance were offset by lower prices for recreation, used cars and trucks, airline fares, and new vehicles.

Compared to the same month a year ago, consumer prices in January were up by 1.4 percent, unchanged from the annual growth seen in December.

Meanwhile, the annual rate of growth in core prices slowed to 1.4 percent in January from 1.6 percent in the previous month.

"Looking ahead, inflation is poised to rise above 2% in the spring, but this will be driven largely by easy base effects and should be transitory," said Kathy Bostjancic, Chief U.S. Financial Economist at Oxford Economics.

She added, "Thus, the Federal Reserve should patiently look past this increase and delay rate liftoff until mid-2023 and QE tapering until 2022."

Next Wednesday, the Labor Department is scheduled to release a separate report on producer price inflation in the month of January.

Economists currently expect producer prices to rise by 0.4 percent, while core producer prices are expected to edge up by 0.2 percent.


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

*U.S. Wholesale Inventories Rise 0.3% In December

Trading 10 Fév 2021 Commentaire »

U.S. Wholesale Inventories Rise 0.3% In December


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

*U.S. Dollar Extends Decline To 0.8895 Against Franc After Inflation Data

Trading 10 Fév 2021 Commentaire »

U.S. Dollar Extends Decline To 0.8895 Against Franc After Inflation Data


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

U.S. Consumer Prices Rise In Line With Estimates In January

Trading 10 Fév 2021 Commentaire »

With gasoline prices continuing to spike, the Labor Department released a report on Wednesday showing consumer prices in the U.S. increased in line with economist estimates in the month of January.

The Labor Department said its consumer price index rose by 0.3 percent in January after edging up by a revised 0.2 percent in December.

Economists had expected consumer prices to climb by 0.3 percent compared to the 0.4 percent increase originally reported for the previous month.

Excluding food and energy prices, core consumer prices came in unchanged for the second consecutive month. Core prices were expected to rise by 0.2 percent.


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

Dollar Falls Following U.S. CPI

Trading 10 Fév 2021 Commentaire »

After the release of U.S. consumer inflation for January at 8:30 am ET Wednesday, the greenback dropped against its major rivals.

The greenback was trading at 1.2138 against the euro, 1.3849 against the pound, 104.56 against the yen and 0.8900 against the franc around 8:33 am ET.


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

*U.S. Consumer Prices Rise 0.3% In January, Core Prices Unchanged

Trading 10 Fév 2021 Commentaire »

U.S. Consumer Prices Rise 0.3% In January, Core Prices Unchanged


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

Dollar Mixed Ahead Of U.S. CPI

Trading 10 Fév 2021 Commentaire »

At 8:30 am ET Wednesday, U.S. consumer inflation for January is due. Ahead of the data, the greenback traded mixed against its major rivals. While the greenback recovered against the euro, it held steady against the rest of major rivals.

The greenback was worth 1.2126 against the euro, 1.3832 against the pound, 104.74 against the yen and 0.8908 against the franc as of 8:25 am ET.


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