Tag Archives: how does forex trading work

*U.S. Industrial Production Dips 0.3% In December

U.S. Industrial Production Dips 0.3% In December The material has been provided by InstaForex Company – www.instaforex.com…

Dollar Rises Vs Most Majors Ahead Of U.S. Industrial Production

Fed’s Industrial production for December will be published at 9.15 am ET Tuesday. Ahead of the data, the greenback traded mixed against its major counterparts. While the greenback held steady against the pound, it rose against the rest of major counterparts. The greenback was worth 110.20 against the yen, 1.1100 against the euro, 1.3044 against the pound and 0.9685 against the franc at 9:10 am ET. The material has been provided by InstaForex Company – www.instaforex.com…

U.S. Housing Starts Spike 16.9% In December

After reporting significant increases in new residential construction in the two previous months, the Commerce Department released a report on Friday showing U.S. housing starts saw an even more substantial spike in the month of December. The Commerce Department said housing starts skyrocketed by 16.9 percent to an annual rate of 1.608 million in December after jumping by 2.6 percent to a revised rate of 1.375 million in November. The surge came as a big surprise to economists, who had expected housing starts to rise by 0.7 percent to a rate of 1.375 million from the 1.365 million originally reported for the previous month. With the much bigger than expected increase, housing starts soared to their highest level since hitting a rate of 1.649 million in December of 2006. Meanwhile, the report said building permits tumbled by 3.9 percent to an annual rate of 1.416 million in December after climbing by 0.9 percent to a revised rate of 1.474 million in November. Building permits, an indicator of future housing demand, had been expected to slide by 0.9 percent to a rate of 1.468 million from the 1.482 million originally reported for the previous month. The material has been provided by…

UK Retail Sales Fall Unexpectedly During Festive Season

UK retail sales declined unexpectedly even in festive season in December signaling that weak consumer spending weighed on economic growth in the last quarter of 2019. Retail sales volume, including auto fuel, dropped 0.6 percent month-on-month, following a 0.8 percent decrease in November, data from the Office for National Statistics showed Friday. This was the fifth consecutive month of no growth. Economists had forecast a monthly growth of 0.6 percent. Excluding auto fuel, retail sales fell 0.8 percent, the same pace of decline as logged in November and in contrast to the expected growth of 0.8 percent. Food store sales fell 1.3 percent, which was the largest drop since December 2016. At the same time, non-food store sales slid 0.9 percent in December. Meanwhile, automotive fuel sales advanced 1.6 percent. Annual growth in retail sales volume, including auto fuel, improved marginally to 0.9 percent from 0.8 percent a month ago. However, this was much slower than the expected growth of 2.7 percent. Similarly, excluding auto fuel, retail sales volume increased 0.7 percent after rising 0.6 percent in November. Economists had forecast an annual growth of 3 percent. In the fourth quarter, retail sales declined 1 percent….

GBP/USD 01.17.2020 – Broken bearish flag on the daily time-frrame, watch for selling on rallies with main target at 1.2960

GBP has been trading downwards. The price tested and rejected of the level of 1.3120. I see further downside on the GBP and potential re-test of 1.2960 and 1.2910. The rejection of the Bollinger middle line is the early trigger for the downside. I also found potential for bearish outside candle. My advice is to watch for selling opportunities on the rallies using the hourly/4H time-frame.MACD oscillator is showing bearish stance and reading below the zeroMajor resistance is set at the price of 1.3120.Support levels and downward targets are set at the price of 1.2960 and 1.2910.The material has been provided by InstaForex Company – www.instaforex.com…

Trading recommendations for EUR/USD

Using complex analysis, we can see that the correction phase from the range of 1.1080 reached its local peak. This was located near the level of 1.1180. Since Wednesday, the correction has been under pressure, confirmed by a temporary lateral movement, and the structure of which there were impulses, locally reaching the area of the control level with shadows. The amount of the change in the correction was much larger than initially considered, which is more than 50% relative to the downward movement since the beginning of the year.
Because of this, traders are not losing faith in the resumption of the downward trend, snd considers the recent correction as a kind of a variable component that does not carry a fracture of earlier bars. In fact, if the quote manages to fix at least below 1.1115, this theory will sparkle with new colors and most traders will believe in a downward move.
In terms of volatility, we have extremely stable indicators that are close to the average daily value. Such statistics confirm a rather good emotional background of the market, where both speculators and intraday traders get along, which cannot be said about conservative market participants.
Analyzing the past…

*Nigeria Dec CPI +0.85% On Month Vs. 1.02% In November

Nigeria Dec CPI +0.85% On Month Vs. 1.02% In November The material has been provided by InstaForex Company – www.instaforex.com…

Fractal analysis for major currency pairs as of January 17

Hello, dear colleagues.
For the Euro/Dollar pair, we expect the continuation of the upward structure from January 10 after the breakdown of 1.1151. For the Pound/Dollar pair, we follow the formation of an upward structure from January 14 and the level of 1.2994 is the key support. For the Dollar/Franc pair, the price is in the correction of the downward structure from January 10 and the level of 0.9691 is the key support. For the Dollar/Yen pair, we expect the continuation of the downward cycle from January 8 after the breakdown of 110.40. For the Euro/Yen pair, we expect a resumption of the upward movement after the breakdown of 122.70 and the level of 121.80 is the key support. For the Pound/Yen pair, we expect the subsequent development of the upward cycle from January 3 after the breakdown of 144.53.
Forecast for January 17:
Analytical review of currency pairs on the H1 scale:

For the Euro/Dollar pair, the key levels on the H1 scale are 1.1204, 1.1177, 1.1151, 1.1115, 1.1087, and 1.1058. We follow the formation of the upward structure from January 10 as the main trend. We expect the upward movement to continue after the breakout of 1.1151. In this case, the goal is…

Technical analysis recommendations for EUR/USD and GBP/USD on January 17

Economic calendar (Universal time)
We are waiting for statistics from the eurozone in the morning. Among the important ones, it can be noted 9:30 (retail sales, UK) and 10:00 (consumer price index, EU). After lunch, the time will come for news from overseas (USA). The most significant indicators will be published at 13:30 (the number of issued building permits) and 15:00 (the number of open vacancies in the labor market).
EUR / USD
Yesterday, the players on the decline, having tested the resistance of the final level of the daily dead cross (1.1172), made an attempt to complete the rise again and move to an active decline. Today, we can expect a continued decline in the case of updating yesterday’s low (1.1128). At the same time, the main bearish landmarks remain in their places – 1.1110 (weekly levels) – 1.1065 (upper border of the daily cloud + weekly Kijun) – 1.1022 (lower border of the daily cloud + weekly Fibo Kijun). If the bears are unable to continue the pair, they will most likely remain within the zone of attraction in the near future, formed by the key levels of the daily dead cross (1.1141-53) and the monthly short-term…

Technical analysis of EUR/USD for January 17, 2020

Overview: The EUR/USD pair:Pivot: 1.1162.Time frame: sideways.The market showed signs of instability 3 day ago. Amid the previous proceedings, the price is still trading between the levels of 1.1162 and 1.1085. The daily resistance and support are seen at the levels of 1.1162 and 1.1085 respectively. In consequence, it is recommended to be cautious while placing orders in this area. Thus, we should wait until the sideways channel has completed. The price spot of 1.1162 remains a significant resistance zone. Therefore, there is a possibility that the EUR/USD pair will move to the downside and the fall structure does not look corrective. Resistance is seen at the level of 1.1162 today. So, sell below 1.1162 with the first target at 1.1085 to test last week’s bottom. In overall, we still prefer the bearish scenario as long as the price is below the level of 1.1162. Furthermore, if the EUR/USD pair is able to break out the bottom at 1.1085, the market will decline further to 1.1038. However, it would also be sage to consider where to place a stop loss; this should be set above the second resistance of 1.1206. we still prefer a bearish scenario at this period.The material…