Category Archives: Market Anakysis

Forex market analyized

Between two lights: gold hung in a narrow range

The price of gold began to decline today against the background of gradually fulfilling hopes for a faster recovery in global economies after the lifting of quarantine measures related to the COVID-19 pandemic. At the same time, the growing tension between the United States and China, as well as riots in America, are pushing the precious metals market in the opposite direction, which does not allow the fall to worsen. Thus, gold began to decline, which so far has its limits.The price of gold fell by 0.15% this morning and reached the level of $ 1,737.46 per troy ounce. Support for gold is at the level of $ 1,720 per troy ounce, and the resistance was at around 1,761 dollars per troy ounce.Today it has become clear that multidirectional forces press on gold, which does not allow it to choose a specific vector for movement. There are factors that support and make us move up, and there are pressures that pull down. On the one hand, this allows you to stay within the same range, almost eliminating a sharp and rapid drop. On the other hand, growth is also severely limited. Until the forces outweigh in one direction or another, we…

June 2, 2020 : GBP/USD Intraday technical analysis and trade recommendations.

Recently, Bullish persistence above 1.2265 has enhanced another bullish movement up to the price levels of 1.2520-1.2590 where significant bearish rejection as well as a quick bearish decline were previously demonstrated (In the period between 14th – 21 April).Moreover, Atypical Bearish Head & Shoulders reversal pattern was in progress. The GBP/USD pair was demonstrating the Right Shoulder of the pattern.Hence, Bearish persistence below 1.2265 (Reversal Pattern Neckline) was needed to confirm the pattern. Thus, enhance another bearish movement towards 1.2100, 1.2000 then 1.1920.Moreover, the price zone of 1.2300-1.2280 corresponding to a short-term uptrend was breached to the downside failing to provide enough bullish support for the pair. Thus, enhancing the bearish side of the market.Temporary bearish breakout below 1.2265 was demonstrated in the period between May 13 – May 26. However, immediate bullish rebound has been expressed on May 18.On the other hand, the price zone of 1.2520-1.2600 (Backside of the broken Uptrend) stands as a recently-established SUPPLY-Zone to offer bearish rejection and a valid SELL Entry for the pair in the short-term.Hence, further bearish decline would be expected to be enabled towards 1.2020 as a projection target for the reversal pattern provided that no bullish breakout above 1.2600 is expressed.Trade…

Trader’s diary. June 2, 2020. Covid-19 in Russia. Russian rouble

This is the chart of the coronavirus cases in Russia as of morning of June 2. The good news is that the number of new cases (+8,000) is less than the number of recovered (+11,000) per day. However, this happened only thanks to Moscow region, where +2,000 people were infected and +6,000 patients recovered per day. Consequently, the number of COVID-19 cases in Russia, excluding Moscow, continues growing and the epidemiological situation is not getting any better.Apparently, Russia, excluding Moscow, has not yet passed the peak. Accordingly, the epidemiological situation in the country is likely to improve no earlier than July 2 – that is, in a month.The Russian rouble continues strengthening. I believe that this is a false movement caused by the attack of central bank on currency buyers.The upward trend is likely to last until the vote on constitutional changes – that is, July 1.It is better to refrain from buying currency for roubles until there is a signal for the movement to stop.The material has been provided by InstaForex Company –…

Analysis of Gold for June 02,.2020 – Watch for the breakout of the symmetrical triangle contraction pattern to confirm further

News : (Bloomberg) — German Chancellor Angela Merkel will seek to broker a compromise Tuesday on a second stimulus package to help Europe’s biggest economy recover from the deep recession caused by the coronavirus. Merkel’s government launched an initial shot of stimulus and guarantees in March to cushion consumers and businesses from the impact of the outbreak. Officials are now focusing on trying to bring the economy back from a contraction expected to exceed 6% this year, the deepest since the aftermath of World War II. Merkel will host officials from the ruling coalition of her Christian Democratic-led bloc and the Social Democrats in Berlin from 2 p.m. local time. They’ll attempt to thrash out a deal on a plan worth between 50 billion euros ($56 billion) and 100 billion euros, a person with knowledge of the matter told Bloomberg last week. Technical analysis: Gold has been trading sideways at the price of $1,741. I found that market is in contraction and waiting for the next breakout of consolidation to confirm further direction. Trading recommendation: Watch for the breakout of the symmetrical triangle to confirm further direction. The upside breakout of the $1,744 may lead us for…

Trading plan for EUR/USD on June 2, 2020. Coronavirus updates from around the world. The US market keeps on rising despite

Coronavirus updates as of the morning of June 2: The situation in the US is a little bit brightening, as the number of deaths in the country have dropped below 1,000 per day for two days in a row. However, the number of new cases is still above 20 thousand per day, with the worst situation in Brazil, in which 15 thousand new cases are added per day.Meanwhile, a new wave of the pandemic may be declared in India and Peru, if the number of infections in both countries continue to accelerate.In Russia, the number of new cases is about 9,000 per day, but the number of people who recovered as of June 2 has already exceeded 3,000.The US market keeps on growing despite the negative news surrounding the US. To date, there are already 20 million unemployed in the US, and another 8 million per month is expected. In addition, 40 cities in the country are under curfew due to racial unrest, and the pandemic problems still remain.Nevertheless, the US market will soon fall, so open sell positions from the current prices.EUR/USD: The market is in an upward trend. Open buy positions at a breakout from 1.1155, or at a…

Trading recommendations for GBP/USD pair on June 2

From the point of view of complex analysis, you can see that the quote went through most of the flat formation, and now let’s talk about the details.
The last trading day reflected the high activity of market participants where the quote managed to consolidate above the level of 1.2350 at the beginning of the Asian trading session, which was the starting point for the breakdown of last week’s maximum – 1.2392. Traders did not stop there, the inertial move was set by the market, a small push was enough for further growth. As a result, the pound has grown up to the forecasted level of 1.2500, and this, by the way, is 74% of the flat formation 1.2150 // 1.2350 // 1.2620.
Before going further, it is worth recalling that the upward turn is held on the market for at least 11 trading days, and its total value is more than 450 points. The existing scale violated the text component of the first of May, which means that the restoration process, which so many had hoped for, is postponed indefinitely.
Flat formation is what traders are currently focused on as a development prospect. It is worth considering one point…

Analysis and forecast for EUR/USD on June 2, 2020

Hello, traders!
At yesterday’s trading, the main currency pair of the Forex market was just eager to continue strengthening, and it succeeded. As usual, we will move on to the technical picture for the euro/dollar pair a little later. For now, we will briefly talk about the events of yesterday and what is expected today.
From Europe, the indices of business activity in the manufacturing sector turned out to be mixed. If in Italy and France the indicator was better than the forecast values, in Germany and the Eurozone, as a whole, production activity decreased more than expected by economists.
Later, data on manufacturing activity in the United States of America were also released. The ISM manufacturing index, which in April was at an 11-year low of 41.5, rose to 43.1 last month. However, I note that if this indicator is below 50, this is a negative moment for the manufacturing sector, whose share in the US GDP is 10-11%. I would also like to remind you that the US economy in the first quarter of this year declined by 5% in annual terms, and after the crisis of 2008-2009 — this is the worst indicator. Nothing can be done, the consequences of COVID-19…

AUD/USD. Attractive and promising Australian currency

The Reserve Bank of Australia held its regular meeting today, which was expected to be “passable”. Nevertheless, the RBA’s passivity in the current conditions plays into the hands of the “Aussie” – the AUD/USD pair continued to siege the 68th figure after some hesitations. At the moment, the “round” level of 0.6800 plays the role of a psychologically important resistance level, while from the technical point of view, the nearest resistance is slightly higher – at 0.6850 (the lower border of the Kumo cloud on the weekly chart). All indicators speak in favor of further price growth, and the fundamental background also contributes to the growth of bullish sentiment.Before the June meeting of the RBA, the head of the regulator made several important statements, thereby indicating the position of the Central Bank regarding the future prospects of monetary policy. At today’s meeting, the Central Bank members only confirmed the theses voiced earlier, having provided background support to the AUD/USD pair. However, the Australian currency reacted modestly enough to the results of the June meeting – by and large, the market played the most important messages of Philip Lowe yesterday.Let me remind you that at the beginning of this week, the RBA…

Trading idea for USD/CHF

Good afternoon traders. A trading idea for USD / CHF.
The quotes of USD / CHF have been declining all throughout May and managed to break last month’s low yesterday. Set limit orders to trigger a rebound and push the quotes back to a flat, in accordance with the plan below:
Place limit orders from the current prices or below, to get a movement of about 50-100 pips.
Increasing volumes in the grid is not recommended.
If the first transaction already moves 100 pips, close the order.
Good luck!
The material has been provided by InstaForex Company –…

NZD/USD approaching resistance, potential reversal

Trading RecommendationEntry: 0.63438 Reason for Entry: Horizontal swing high resistance, 127.2% fibonacci extension and 161.8% fibonacci retracementTake Profit: 0.61644Reason for Take Profit: Horizontal overlap supportStop Loss: 0.64478Reason for Take Profit: Horizontal swing high resistance The material has been provided by InstaForex Company –…