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December 9, 2019 : EUR/USD Intraday technical analysis and trade recommendations.

Since October 2, the EURUSD pair has been trending-up until October 21 when the pair hit the price level of 1.1175.The price zone of (1.1175 – 1.1190) stood as a significant SUPPLY-Zone that demonstrated bearish rejection for two consecutive times in a short-period.Hence, a long-term Double-Top pattern was demonstrated with neckline located around 1.1075-1.1090 offering valid bearish positions few weeks ago.Shortly After, two consecutive bearish movements were executed towards 1.1000-1.0995 where another two episodes of bullish rejection were demonstrated.That’s why, the price zone of 1.1065-1.1085 where a cluster of supply levels were located (61.8% Fibo – 50% Fibo levels) prevented further bullish advancement.Thus, the EUR/USD Pair has been trapped between the price levels of 1.1000 and 1.1085 (where a cluster of supply levels is located) until Wednesday when a bullish spike was demonstrated above 1.1085 (towards 1.1110).Initial bearish rejection was anticipated around 1.1110 to bring bearish decline towards 1.1065.Moreover, atypical Head & Shoulders reversal pattern is being demonstrated with neckline located around 1.1065.Hence, a valid SELL entry was initially offered upon bearish breakout below 1.1065. Initial bearish target would be located around 1.1010.Trade recommendations :The current bullish pullback towards the recent Supply Zone of (1.1065-1.1085) should be considered for a valid…

Australian Dollar Slides On Weak China Data

The Australian dollar weakened against its major trading partners during European trading on Monday amid risk aversion, as weak exports data from China underscored persistent pressures on manufacturers from the prolonged Sino-U.S. trade war. China’s exports shrank for the fourth consecutive month in November, in a sign that the trade war with the United States was having an impact on the world’s second-largest economy. Investors awaited key events this week, including the Federal Reserve’s latest interest rate decision, new ECB boss Christine Lagarde’s first policy meeting and the U.K. general election. In an interview with France 3 television, French Finance Minister Le Maire said that France was ready to challenge U.S. President Trump’s tariffs threat at the World Trade Organization (WTO). “We are ready to take this to an international court, notably the WTO, because the national tax on digital companies touches U.S. companies in the same way as EU or French companies or Chinese. It is not discriminatory.” The currency held steady against its major counterparts in the previous session. The aussie dropped to a 4-day low of 0.6822 against the greenback, from a high of 0.6839 hit at 6:45 pm ET. The aussie is likely to locate support…

Latvia Inflation Slows For Third Month

Latvia’s consumer price inflation eased for the third month in a row in November, figures from the Central Statistical Bureau showed on Monday. The consumer price index climbed 2.1 percent year-on-year in November, following a 2.3 percent rise in October. In September, inflation was 2.6 percent. Prices for housing rose 3.6 percent annually in November and those of recreation, culture, and restaurants, hotels increased by 3.5 percent and 3.1 percent, respectively. On a monthly basis, consumer prices fell 0.3 percent in November. The material has been provided by InstaForex Company – www.instaforex.com…

Evening review for EURUSD on 12/9/2019. The market is waiting for important events

The market predictably stops before the main events of the week, month and end of the year:December 11 – Fed.December 12 – ECB.December 12 – British elections.Last week, I think the market showed readiness for EURUSD growth, namely:On very strong employment data on Friday, the news is strongly in favor of the dollar. The EURUSD fell not very much and reluctantly. It happens when the big players see the development in the other direction, against the news.The assessment of the chances of the outcome of the main events of December 11-12 also speaks more about the option of strong growth of the euro – than about the possibility of a strong fall.Let me remind you that over the past 3 years, the euro has several times shown very strong movements immediately after the ECB decision – up to 400 points in the 4-digit during the day.We keep purchases from 1.1035, stop at 1.0990.In the case of a downward turn, we sell from 1.0980.The material has been provided by InstaForex Company – www.instaforex.com…

Technical analysis of EUR/USD for December 09, 2019

Overview: The EUR/USD pair on the H-4 chart.The bias remains bullish in the nearest term testing 1.1175 or higher. Immediate support is seen around 1.1027. The EUR/USD pair continues to move upwards from the level of 1.1027. Today, the first support level is currently seen at 1.1027, the price is moving in a bullish channel now. Amid the previous events, the price is still moving between the levels of 1.1027 and 1.1132. The daily resistance and support are seen at the levels of 1.1101 and 1.1132 respectively. It is recommended to be cautious while placing orders in this area. Thus, we should wait until the uptrend channel has completed. Furthermore, if the trend is able to break out through the first resistance level at 1.1101, we should see the pair climbing towards the double top (1.1132) to test it. Buy above the level of 1.1055 with the first target at 1.1101 in order to test the daily resistance 2 and further to 1.1132. Also, it might be noted that the level of 1.1175 ais a good place to take profit because it will form a double top. In larger time frames the trend is still bullish as long as the…

Analysis of EUR/USD and GBP/USD for December 9. Dollar regained its lead thanks to America’s strong labor market

EUR / USD
On December 6, the EUR / USD pair completed lowering by 45 basis points. Thus, two attempts were immediately made to break through the maximum of wave b which ended successfully, while immediately two attempts to break through the 23.6% Fibonacci level ended in failure. Thus, the instrument began to move quotes away from the highs reached and failures near the level of 1.1107, which allow us to expect the resumption of building a bearish trend section with a complicated internal wave structure. At the same time, the wave pattern can be seriously confused and require corrections and additions at any time.
Fundamental component:
On Friday, the news background for the euro-dollar instrument was quite extensive, although all the most important reports came out in only one country, the United States. Most of all, markets were interested in the Nonfarm Payrolls report, which displays the number of jobs created outside the agricultural sector for the reporting period. It is this indicator that best reflects the state of the American labor market, which is very closely paid by the government and the Fed. So, the number of Nonfarms was as much as 266,000 in November. This figure…

European Economics Preview: Germany Foreign Trade Data Due

Foreign trade data from Germany is due on Monday, headlining a light day for the European economic preview. At 1.45 am ET, the State Secretariat for Economic Affairs is scheduled to release Swiss unemployment data. The jobless rate is forecast to remain unchanged at seasonally adjusted 2.3 percent in November. At 2.00 am ET, Destatis is slated to issue Germany’s foreign trade data. Exports are forecast to fall 0.3 percent and imports to drop 0.1 percent in October. In 2.30 am ET, Bank of France publishes business confidence survey results. At 3.00 am ET, industrial output and foreign trade figures from the Czech Republic are due. Production is forecast to shrink 3 percent annually in October. The trade surplus is expected to fall to CZK 13.3 billion from CZK 25.1 billion in September. In the meantime, Hungary’s foreign trade data is due. The trade surplus is seen at EUR 200 million in October versus EUR 539 million a month ago. At 4.30 am ET, Sentix is scheduled to issue euro area investor confidence data for December. Economists forecast the index to fall to -5.3 from -4.5 in November. The material has been provided by InstaForex Company – www.instaforex.com…

Oil: long-term forecast

Oil – CLFrom April 2011 to August 2014, the price of oil (WTI) formed an extended triangular graphic formation. In August 2014, the price went down from the triangle and plummeted until January 2016, reaching 26.14.The oil drop at the exit from the triangle that lasted for 75 weeks, exactly to the time point where the lines forming the triangle converge. From a minimum of 26.14, a new life cycle of the growth-decline market began. Our task is to determine the completion of a new market cycle.Now we see that the price has again formed a triangle, but this time it is smaller. The exit of the price from the triangle downward can provoke a 16-week fall before the end of March next year since the price in the second phase of the market’s life cycle is in decline.The upper generatrix of the large triangle, with its parallel downward movement to the minimum of February 2009, exactly coincides with the minimum of January 2016. The parallel line from the generatrix of the small triangle exactly coincides at the point with its time peak and the line of the price channel of red color. At the point of convergence of the lines,…

Japan Overall Bank Lending Rises 2.1% On Year

Overall bank lending in Japan was up 2.1 percent on year in November, the Bank of Japan said on Monday – coming in at 540.3 billion yen. That follows the 2.0 percent increase in October. Excluding trusts, bank lending advanced an annual 2.3 percent to 470.6 billion yen after gaining 2.2 percent a month earlier. Lending from trusts gained 1.0 percent to 69.6 billion yen, while lending from foreign banks jumped 11.7 percent to 3.05 billion yen following the 10.5 percent spike in the previous month. The material has been provided by InstaForex Company – www.instaforex.com…

New Zealand Manufacturing Value Climbs 0.9% In Q3

The value of manufacturing sales in New Zealand was up a seasonally adjusted 0.9 percent on quarter in the third quarter of 2019,. Statistics New Zealand said on Monday – after dipping 0.7 percent in the three months prior. The main industry movements were meat and dairy products, up NZ$169 million (2.0 percent); transport equipment and machinery, up NZ$158 million (5.1 percent); and metal products, up NZ$101 million (3.6 percent). By volume, manufacturing sales fell 0.3 percent after skidding 2.7 percent in the previous quarter. The main industry movements were meat and dairy products, down 4.5 percent; transport equipment and machinery, up 4.8 percent; and metal products, up 3.2 percent. The material has been provided by InstaForex Company – www.instaforex.com…