Analytics and trading signals for beginners. How to trade GBP/USD on February 24? Analysis of Tuesday. Getting ready for

Trading 23 Fév 2021 Commentaire »

Hourly chart of the GBP/USD pair

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The GBP/USD pair continued its somewhat weakened upward movement on Tuesday, but it weakened only in the context of a day. On the whole, it remains confident and strong enough. So, in general, you are advised to consider bull trading. However, as we have mentioned more than once, now is not the best time to trade the pound/dollar pair. The problem is that few signals are being formed now, and there are a lot of false ones among them. For example, no signal on Tuesday, although the pound/dollar pair as a whole continued to move upward. At the same time, the MACD indicator as a whole moved down today. This phenomenon is called uncorrelation between price and indicator. The indicator is declining not because it reacts to a decline in prices, but because it has nowhere to grow further. The MACD indicator is also worn for the movement of the "trend-correction-trend-correction" type, and not for the movement of the "trend-trend-trend-trend" type. There has not been a single round of correction for the pair since the morning of February 18, so the indicator has been discharged a lot in recent days, despite the direction of price movement. Selling the pair, according to our recommendations in the previous article, was not advised on Tuesday.

Several quite interesting reports released in the UK on Tuesday. However, as it is already clear now, at the end of the day, none of them provoked a movement in the market. In fairness, take note that traders rarely react to data on wages or changes in the number of applications for unemployment benefits. In addition to these two reports, the unemployment rate was also published, which rose by 0.1%, however, this report did not cause any reaction. So was Federal Reserve Chairman Jerome Powell's evening speech in the US Congress.

The UK will host a speech by Bank of England Governor Andrew Bailey on Wednesday, as well as parliamentary hearings on the Bank of England's monetary policy report. These two events are important enough, as the British central bank has long been walking along the edge of the abyss called "negative rates". Bailey's latest comments on this issue spoke in favor of the fact that the central bank is not going to implement these plans in the near future. However, some other members of the monetary committee take a slightly tougher and more radical point of view. One of them (Jonathan Haskel) will also give a speech on Wednesday. Thus, these speeches, and not Powell's speech in the US Congress, may have an impact on the pair's movement on Wednesday.

Possible scenarios on February 24:

1) Long positions are relevant since a new upward trend line has formed. Thus, novice traders are advised to wait for a downward correction and a buy signal in the form of an upward reversal of the MACD indicator or a price rebound from the trend line. The targets in this case will be located at a distance of 50-60 points from the entry point.

2) Short positions have lost their relevance again, therefore, in order to be able to consider them, you need to wait for the price to overcome the upward trend line. Even if it happens on Wednesday, it is unlikely that the pound will lose much after this event. At the moment, the price and the trend line are separated by about 180 points.

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 24? Analysis of Tuesday. Getting ready for

Trading 23 Fév 2021 Commentaire »

Hourly chart of the EUR/USD pair

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The EUR/USD pair spent most of the day in a downward correction. The correction was not that strong, however, it allowed the MACD indicator to discharge to the zero level. So in the next few hours, this indicator can create a new buy signal, turning to the upside. The upward trend remains unquestionable. Two trend lines support bull traders at once. In addition to the standard buy signal from the MACD indicator, a signal in the form of a price rebound from the trend line (the closest, of course) can also be created. However, take note that the signal must be strong and accurate. If the pair trades for some time directly "on" the trend line, then neither a rebound nor being able to surpass it will work. In our last review, we advised you to buy the pair if a new buy signal is generated. It did not appear on Tuesday, therefore, novice traders who followed our recommendations should not have opened long positions on this day. You were advised to sell the pair when the price has finally surpassed the first trend line, which also did not happen during the day. Tuesday's volatility is only 45 points, which is low. Not surprisingly, no signal generated for the day.

The only macroeconomic report that was released on Tuesday was the EU inflation report for January. However, firstly, its actual value did not differ from the forecast and the previous one, and secondly, it was ignored. However, this is perfectly noticeable based on today's volatility. If there was a reaction to this report, the pair would not have gone 45 points in a day. There was also no reaction to Federal Reserve Chairman Jerome Powell's speech in the US Congress. As we expected, Powell did not mention anything extremely important either to Congress or to the markets.

The calendar of macroeconomic events is empty for the European Union on Wednesday. Meanwhile, Jerome Powell's second speech in the US Congress will take place. Typically, these two speeches (Powell speaks to Congress twice a year in front of different committees on monetary policy reports) are no different. Accordingly, if the markets ignored it on Tuesday, they will also ignore it on Wednesday. Thus, the macroeconomic background will be extremely weak, but this does not mean that trading will be unambiguously sluggish.

Possible scenarios on February 24:

1) Long positions are still relevant now, since traders already have two upward trend lines at their disposal. In the next few hours, a buy signal from the MACD indicator with targets at the resistance levels of 1.2188 and 1.2219 may form. Also, the price rebound from the trend line can be considered as a buy signal, the targets are the same.

2) Trading bearish is currently irrelevant, since the price continues to be above the trend lines. If traders manage to get the pair to settle below the first trend line, then you can open short positions with the targets of support levels 1.2109 and, in fact, the trend line.

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

EURUSD back tests broken trend line

Trading 23 Fév 2021 Commentaire »

EURUSD is trading at 1.2145. Earlier today price broke above the resistance trend line but now we see a back test of the break out area. Holding above 1.2080 gives hopes for an upward extension towards 1.2220-1.2350 as we explained in our previous analysis.

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Red line -resistance

Red rectangle- key support

Blue rectangle -first target

EURUSD is making higher highs and higher lows. Price is in a bullish short-term trend. Breaking above the red resistance trend line is a sign of strength and this gives bulls hope for a move towards the blue rectangle. Staying above the broken resistance trend line increase the chances of a bounce and a move higher. Bulls need to defend the 1.2020 low and by no means let price break below it. This will cancel any chance for an upside move towards 1.22.

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

Ichimoku cloud analysis of Gold

Trading 23 Fév 2021 Commentaire »

Gold price is trading just above $1,800. Price is bouncing off the major November low at $1,760 that was tested in previous days. A double bottom formation could push price back to $1,900. Today we use the Ichimoku cloud indicator to see the key levels that must be broken in order for Gold to break above the key pivot point of $1,850 and move towards $1,900.

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Despite the strong bounce of $1,760, Gold price in the 4 hour chart remains below the Kumo (cloud). This is a bearish sign. Price touched the Kumo (cloud) and got rejected. Price is above the tenkan-sen (red line indicator) and the kijun-sen (yellow line indicator). Support by these two indicators is at $1,803 and $1,787. Holding above these two levels is crucial for the short-term trend.

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On a daily basis Gold price remains well below the Kumo (cloud) and is now challenging the tenkan-sen and kijun-sen resistance levels. The tenkan-sen is still below the kijun-sen and both with negative slope. If price moves above the tenkan-sen and kijun-sen this would be a first step in order for bulls to regain control of the short-term trend. If the tenkan-sen crosses above the kijun-sen then we will have a weak buy signal. Of course the most important bullish signal will come with price breaking above the cloud resistance at $1,860. Until then the battle continues with bears having the control of the trend.The material has been provided by InstaForex Company - www.instaforex.com

USDJPY respects support trend line

Trading 23 Fév 2021 Commentaire »

USDJPY made a low at 104.92 today just below the upward sloping support trend line we mentioned in our last analysis, but bulls stepped in and pushed price above the support once again. Price so far respects the key trend line support and as long as this is the case, we remain optimistic. If support fails to hold, then we expect USDJPY to fall towards 104.

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Blue line - support

Blue rectangle - target if support fails to hold

USDJPY continues making higher highs and higher lows. Trend remains bullish and as we explained in our last analysis, as long as price respects the trend line, the pull backs are seen as buying opportunities. If support is broken then we expect the blue rectangle to be reached as this will be the first target.

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

Bitcoin loses more than 20% in two sessions

Trading 23 Fév 2021 Commentaire »

In our last BTC/USD analysis we noted that Bitcoin was reaching an important Fibonacci target at $56,000 area. We warned traders to be cautious as this area could very well be an important top. Trend remains bullish, but with high volatility being the norm in cryptocurrencies, traders need to adjust their strategies.

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BTC/USD is falling sharply below $50,000. After such a parabolic rise in price, it should not come as a surprise to see sharp declines. Major support is now found at $45,000 and next at $34,000.

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Using the Ichimoku cloud indicator we identify the two important support levels. The first level is where we find the kijun-sen(yellow line indicator). If this level is broken we should expect BTC/USD to move lower towards the Daily Kumo (cloud) at $34,000. The trend remains bullish but with signs of weakness. Resistance is at $51,585 and recapturing this level will be key for the short-term trend. A pull back towards the cloud and $34,000 is not out of the question, so bulls need to be cautious. I prefer to be neutral than bearish as the major trend remains upward.The material has been provided by InstaForex Company - www.instaforex.com

U.S. Consumer Confidence Improves More Than Expected In February

Trading 23 Fév 2021 Commentaire »

A report released by the Conference Board on Tuesday showed consumer confidence in the U.S. has improved more than expected in the month of February.

The Conference Board said its consumer confidence index rose to 91.3 in February from a downwardly revised 88.9 in January.

Economists had expected the consumer confidence index to inch up to 90.0 from the 89.3 originally reported for the previous month.

The bigger than expected increase by the headline index came as the present situation index climbed to 92.0 in February from 85.5 in January.

Noting the increase came after three months of consecutive declines, Lynn Franco, Senior Director of Economic Indicators at The Conference Board, said, "This course reversal suggests economic growth has not slowed further."

The rebound by the present situation index came as the percentage of consumers claiming business conditions are "good" rose to 16.5 percent from 15.8 percent, while those claiming conditions are "bad" fell to 39.9 percent from 42.4 percent.

Consumers' assessment of the labor market also improved, with those saying jobs are "plentiful" climbing to 21.9 percent from 20.0 percent and those claiming jobs are "hard to get" dropping to 21.2 percent from 22.5 percent.

On the other hand, the Conference Board said the expectations index edged down to 90.8 in February from 91.2 in January.

The percentage of consumers expecting business conditions to improve over the next six months fell to 31.0 percent from 34.1 percent, although those expecting conditions to worsen also declined to 17.7 percent from 19.0 percent.

Consumers' outlook regarding the job market was also somewhat mixed, with those expecting more jobs in the months ahead decreasing to 26.1 percent from 30.4 percent and those anticipating fewer jobs also slipping to 20.6 percent from 22.1 percent.

"While the Expectations Index fell marginally in February, consumers remain cautiously optimistic, on the whole, about the outlook for the coming months," Franco said.

She added, "Notably, vacation intentions-particularly, plans to travel outside the U.S. and via air-saw an uptick this month, and are poised to improve further as vaccination efforts expand."

On Friday, the University of Michigan is scheduled to release its revised reading on consumer sentiment in the month of February.

The consumer sentiment index for February is currently expected to be upwardly revised to 76.4 from the preliminary reading of 76.2, which was down from 79.0 in January.


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

Fed's Powell Reiterates Policy To Remain Unchanged For 'Some Time'

Trading 23 Fév 2021 Commentaire »

In a widely anticipated move, Federal Reserve Chair Jerome Powell on Tuesday told members of the Senate Banking Committee the central bank is likely to maintain ultra-easy monetary policy for the foreseeable future.

Powell's prepared remarks largely mirrored recent assessments, indicating interest rates will remain at near-zero levels and the Fed will continue its asset purchases at the current rate until "substantial further progress" has been made toward its goals of maximum employment and price stability.

"The economy is a long way from our employment and inflation goals, and it is likely to take some time for substantial further progress to be achieved," Powell said.

The comments from Powell come as recent concerns about the outlook for inflation have contributed to an increase in treasury yields, with the yields on ten-year notes and thirty-year bonds reaching their highest levels since the early days of the coronavirus pandemic.

Powell acknowledged that consumer prices have partially rebounded following the steep drop last spring but noted prices for sectors that have been most adversely affected by the pandemic remain "particularly soft."

The Fed chief said annual inflation remains below the central bank's 2 percent target and reiterated monetary policy is likely to remain unchanged until inflation is on track to moderately exceed 2 percent for "some time."

"While we should not underestimate the challenges we currently face, developments point to an improved outlook for later this year," Powell said. "In particular, ongoing progress in vaccinations should help speed the return to normal activities.

He added, "In the meantime, we should continue to follow the advice of health experts to observe social-distancing measures and wear masks."

Powell stressed that the Fed remains committed to using its full range of tools to support the economy and to help ensure the recovery will be as robust as possible.


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

*Hungary CB Holds Key Rate Steady At 0.60% As Expected

Trading 23 Fév 2021 Commentaire »

Hungary CB Holds Key Rate Steady At 0.60% As Expected


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

*U.S. Consumer Confidence Index Rises To 91.3 In February

Trading 23 Fév 2021 Commentaire »

U.S. Consumer Confidence Index Rises To 91.3 In February


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