Category Archives: Market Anakysis

Forex market analyized

Technical analysis of GBP/USD for February 25, 2020

Overview:The GBP/USD pair will continue rising from the level of 1.2948 today.So, the support is found at the level of 1.2825, which represents the 23.6% Fibonacci retracement level in the H1 time frame. Since the trend is above the 23.6% Fibonacci level, the market is still in an uptrend. Therefore, the GBP/USD pair is continuing with a bullish trend from the new support of 1.2825. The current price is set at the level of 1.2962 that acts as a daily pivot point seen at 1.2948. Equally important, the price is in a bullish channel. According to the previous events, we expect the GBP/USD pair to move between 1.2825 and 1.3048. Therefore, strong support will be formed at the level of 1.2825 providing a clear signal to buy with the targets seen at 1.3048. If the trend breaks the first resistance at 1.3048, the pair will move upwards continuing the development of the bullish trend to the level 1.3117 in order to test the daily resistance 2. In the same time frame, resistance is seen at the levels of 1.3048 and 1.3117. The stop loss should always be taken into account for that it will be reasonable to set your stop…

February 25, 2020 : EUR/USD Intraday technical analysis and trade recommendations.

On December 30, a bearish ABC reversal pattern was initiated around 1.1235 (Previous Key-zone) just before another bearish movement could take place towards 1.1100 (In the meanwhile, the EURUSD pair was losing much of its bearish momentum).One more bullish pullback was executed towards 1.1175 where the depicted key-zone as well as the recently-broken uptrend were located. That’s why, quick bearish decline was executed towards 1.1100 then 1.1035 which failed to provide enough bullish SUPPORT for the EURUSD pair.Further bearish decline took place towards 1.1000 where the pair looked quite oversold around the lower limit of the depicted bearish channel where significant bullish rejection was able to push the pair back towards the nearest SUPPLY levels around 1.1080-1.1100 (confluence of supply levels (including the upper limit of the channel).Since then, the pair has been down-trending within the depicted bearish channel until last week when bearish decline went further below 1.0950 and 1.0910 (Fibonacci Expansion levels 78.6% and 100%) establishing a new low around 1.0790.Currently, the EUR/USD pair looks quite oversold after such a long bearish decline and if bullish recovery is expressed above 1.0845-1.0860, further bullish advancement would be expected towards 1.0910 then 1.0950.Intraday traders were advised to look for signs of…

February 25, 2020 : GBP/USD Intraday technical analysis and trade recommendations.

On the period between December 18th – 23rd, bearish breakout below the depicted previous bullish channel followed by transient bearish movement below 1.3000 were demonstrated on the H4 chart.However, immediate bullish recovery (around 1.2900) brought the pair back above 1.3000.Bullish breakout above 1.3000 allowed the mentioned Intraday bullish pullback to pursue towards 1.3250 (the backside of the broken channel) where the current wide-ranged movement channel was established between (1.3200-1.2980).Recent temporary bearish breakdown below 1.2980 enhanced further bearish decline towards 1.2890 (the lower limit of the movement channe) where evident bullish rejection was manifested on February 10.Last week, temporary bullish breakout above 1.3000 has been expressed until Wednesday when another bearish decline below 1.3000 brought the GBPUSD pair back towards the lower limit of the channel @ 1.2870 -1.2850 where another episode of bullish recovery is being demonstrated.As expected, the current bullish pullback managed to pursue towards the price zone of 1.2980-1.3000 which may fail to offer enough bearish rejection.Although the Intermediate-term technical outlook remains bearish below the price level of 1.3000 (Supply-Zone), any bullish breakout above 1.3000 should be waited as a valid Intraday BUY entry.If so, further bullish advancement will be demonstrated towards the price levels of 1.3070 and 1.3150.On…

Technical analysis of ETH/USD for 25/02/2020:

Crypto Industry News:Sarah John, the chief treasurer of the Bank of England (BoE), expressed opinions on digital currencies issued by the state, according to an article published by financial media. She called on other central banks to consider developing a central bank cryptocurrency in response to recent movements of private companies in the digital payments sector.John said it was “really important” to consider central banks to think of “central bank digital currencies” as “options” in response to the efforts of large technology companies to develop stablecoins.A BoE official warned that inaction could cause regulators to be forced to catch up with private companies in the digital payments arena, claiming that “it is crucial that central banks” consider whether the public or private sector would be the best to provide digital currencies in the future “.John’s statements appear a few days after Randal Quarles, chairman of the Financial Stability Board (FSB), urged G20 members to accelerate efforts to develop a regulatory apparatus for virtual currencies and Stablecoins.In a letter sent to governors of central banks and finance ministers, Quarles emphasized the speed of innovation in digital payments and the emerging stablecoin sector, deciding to “accelerate the pace of developing the necessary regulatory…

GBP/USD: plan for the European session on February 25. Buyers of the pound are counting on good news on trade negotiations

To open long positions on GBPUSD, you need:
On Monday morning, the British pound fell. However, the bulls quickly took control of the market, forming the lower border of the ascending channel already in the North American session, which I drew attention to in my review yesterday. While trading is above the intermediate support of 1.2933, which acts as the middle of the wide side channel of 1.2890-1.2980, we can expect the pound to return to the maximum of last week in the area of 1.2978 and its update, which will lead to a test of the area of 1.3020, where I recommend taking the profits. Without such a scenario, talking about the long-term advantage of buyers will not be entirely true, especially since the beginning of trade negotiations between the UK and the EU promises to be very problematic. If the bulls do not cope with this task, most likely, the pressure on the pound will return. So, it is best to open new long positions after forming a false breakdown in the support area of 1.2889 or immediately on a rebound from the minimum of 1.2851.
To open short positions on GBPUSD, you need:
The sellers of the pound will try to…

Medium-term outlook for the fall of GBP/NZD

A reversal divergence is formed on the weekly chart using the Marlin oscillator. The price of the current candle for a short time went above the level of 2.0425 and returned under it. This level is very strong and has strategic importance. Starting from May 2010, the price reversed from it many times or accelerated after the breakdown.

Now we are seeing a price reversal from the level down. The first goal of the decline will be to support the MACD line at 1.9900, however, this is only the beginning. If a reversal does occur, the MACD line will be overcome. This will become an additional strengthening bearish factor and the price will fall to the target level of 1.8958 – until the top of May 2017. Overcoming the level opens the way to an even lower goal of 1.8274 – the minimum of July 2019.

According to the daily chart of the GBP/NZD pair, the divergence has already been formed.

As seen on the H4, a double divergence is already in effect and the Marlin oscillator – in the fall zone of the trend.The material has been provided by InstaForex Company –…

Overview of the GBP/USD pair. February 25. Traders are hoping for new information about the negotiations on trade deals

4-hour timeframe

Technical details:
Higher linear regression channel: direction – downward.
Lower linear regression channel: direction – downward.
Moving average (20; smoothed) – down.
CCI: -31.420
On February 25, the GBP/USD currency pair starts with a new round of corrective movement against the downward trend. On Friday last week, the pair’s quotes had the opportunity to gain a foothold above the moving average line, however, it did not take advantage. The new trading week opened with a gap down, which led to the resumption of the downward trend. However, at the same time, bears do not find new reasons for selling the British currency or buying the US dollar. The macroeconomic background this week will be extremely poor, so traders can only count on speeches by top officials of the UK, the European Union, or the United States on topics related to London’s trade negotiations with Washington or Brussels. Only this information can trigger serious exchange rate changes in the pound/dollar pair.
A hearing on the inflation report is scheduled for today in the UK. An event with a “high-profile” name that is unlikely to have any impact on the currency market. Also in the UK today, the CBI report on retail sales – sales volume for February,…

What Are The Major Institutions Trading? | Weekly COT Report (24/2 to 28/2)

The COT Report shows the long and short positions of the major institutions – which currencies they are the most bullish on and which currencies they are the most bearish on. This information is very useful for swing traders who hold positions for more than a day.The currency with the strongest bullish bias would be the USD, with Institutions adding more long contracts and at the same time also reducing the amount of short contracts that they were holding onto.The currency with the strongest bearish bias would be the NZD, AUD and following behind the JPY. Institutions are currently holding more shorts and also adding alot more short positions.The best plays this week would be to:1) Long USD/JPY2) Short AUD/USD and NZD/USDThe material has been provided by InstaForex Company –…

Possible bullish pattern is USDCAD

USDCAD has formed a very promising bottom formation around 1.32 and is bouncing towards 1.33 as expected. Next targets are at 1.3358 and 1.3425 as long as price is above 1.32.Blue line – bearish divergenceRed line – resistance (broken) Horizontal red lines – targetsGreen line – expected pathUSDCAD I believe has made a meaningful bottom at 1.32 and we should expect price to continue higher above 1.33. The RSI has been making glaring bullish divergence warning signs. Price has also broken above recent lower high strengthening our bullish scenario.The material has been provided by InstaForex Company –…

USDJPY reverses off our 2nd target

In a previous post we noted the bullish flag pattern in USDJPY and the two possible targets. Price almost touched the second target area and is now pulling back towards the break out area. This is most probably a back test of the breakout area, rather than a failed break out.Blue line -long-term resistance trend lineGreen line – support trend lineRed horizontal Fibonacci expansions = targetsUSDJPY managed to reach 112.22, but prices reversed as risk off took over due to the coronavirus threat spreading into risky assets. Price has fulfilled its upside target and we are now seeing an important back test.Blue line – resistanceGreen line – supportGreen rectangle – horizontal supportUSDJPY has reached the previous highs and once resistance area at 110.30. Bouncing off this area would be a bullish sign. Inability to hold above 110.30 would be a very bearish sign. Major long-term support is at 108.30. Bulls need to hold above this level no matter what.The material has been provided by InstaForex Company –…