Tag Archives: most popular currency pairs

Dollar Gains Against Rivals On Strong Economic Data

The U.S. dollar exhibited strength against most major currencies on Friday, riding on fairly encouraging economic data from China and the U.S. Chinese economy expanded in line with expectations in the fourth quarter. Data released today showed GDP was up 6% year-on-year in the fourth quarter, the same rate as seen in the third quarter. It was in line with expectations as well. The data also showed that industrial production in China rose 6.9% in December, compared to the year-ago quarter. Retails sales surged up 8% in the month, over the same month in the previous year. According to the data released by the Commerce Department Friday morning, U.S. housing starts skyrocketed by 16.9% to an annual rate of 1.608 million in December after jumping by 2.6% to a revised rate of 1.375 million in November. Economists had expected housing starts to rise by 0.7% to a rate of 1.375 million. Building permits tumbled by 3.9% in December, after climbing 0.9% in November. A report from the University of Michigan showed a slight deterioration in U.S. consumer sentiment in the month of January. Preliminary data showed the consumer sentiment index edged down to 99.1 in January from the…

*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…

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…

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…

Oil Prices Inch Up On Growth Optimism

Oil prices inched higher on Friday amid optimism that a more conciliatory approach on trade between the United States and China will help revive growth. A raft of Chinese economic data either met or beat analyst estimates, fueling hopes of an uptick in demand. Benchmark Brent crude edged up 0.3 percent to $64.81 per barrel, while U.S. crude futures were up 0.2 percent at $58.62. The formal signing of the Sino-U.S. trade agreement on Wednesday helped remove a degree of near-term uncertainty as U.S. President Donald Trump heads into a re-election campaign. Under the Phase 1 deal, China will purchase $50 billion worth of U.S. energy products over the next two years. In another development, the U.S. Senate on Thursday approved a revamp of the 26-year-old North American Free Trade Agreement that includes tougher rules on labor and automotive content. On the data front, China’s GDP data came in line with expectations and there was growth in industrial output and retail sales, suggesting the world’s second-biggest economy ended the year on a firmer note. In the whole year of 2019, China’s gross domestic product grew 6.1 percent, which was well within the target of 6-6.5 percent. The material…

Dollar takes revenge on euro

The greased weekend of January 17 does not upset the “bulls” of EUR/USD. For most of the five-day period, euro rose against dollar, thanks to traders’ faith in the signing of the trade agreement by Washington and Beijing, as well as the hopes for the “hawkish” rhetoric of the ECB. In reality though, it was worse than expected. Investors doubted whether China will be able to buy $200 billion goods and services from the States more than before. Moreso, the duties on $360 billion of Chinese imports remain in force, and, according to competent Bloomberg sources, Christine Lagarde and her colleagues from the governing council are not afraid of negative rates.In 2017, American exports to China amounted to $186 billion. According to the latest data for 2019, this figure fell to $160 Billion. Wall Street Journal estimates that in order to fulfill its obligations, China must increase purchases of goods and services from the United States to $262 billion in 2020, and to $309 billion in 2021. Theoretically, the colossal numbers should accelerate US GDP, but Wall Street Journal experts, on the contrary, expect it to slow from 2.3% to 1.9%, as business activity in the manufacturing sector continues to fall,…

Trading recommendations for GBP/USD – prospects for further movement

From the point of view of a comprehensive analysis, we see a continuing upward interest from the area of the psychological level of 1.3000, where the quotes had previously found a foothold. In fact, we continue to observe the development of the theory of the Zigzag-shaped model [03.12.19-14.01.20], where the subsequent measure almost reached the control value. The most remarkable situation is that for several weeks there has been a gradual compression of the quote amplitude, which is just expressed in the Zigzag-shaped model. That is, the first correction phase of the Zigzag-shaped model had a value of 609 points, the second phase was already 329 points. The third phase has not yet arrived, since the pulse cycle has not yet been completed, but the deceleration is already evident. Hence, many traders agree that the market is preparing a platform to greatly accelerate quotes, which may come in the near future.
In terms of volatility, we have a kind of confirmation of the previously spoken words, that is, there is a slowdown in average daily indicators [95; 79; 57.57 points] from the beginning of the week. From the point of view of the emotional component, we see a similar picture,…

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…

Simplified wave analysis of EUR/USD and GBP/JPY for January 17

EUR/USD
Analysis:
The price of the euro has been moving down since the end of last year. Judging by the wave level of the first part of the wave, a correction is formed for the entire previous trend section. In the wave structure, the middle part (B) is nearing completion.
Forecast:
Today, the formation of a reversal and the beginning of a price decline is expected. At the current session, an attempt to re-pressure the resistance is not excluded. You can wait for the start of an active downward move at the end of the day.
Potential reversal zones
Resistance:
– 1.1150/1.1180
Support:
– 1.1090/1.1060
Recommendations:
During the session, short-term purchases of euros are possible today. It is safer to refrain from trading while the rise is completed, and after confirming the reversal, look for signals to sell the pair.

GBP/JPY
Analysis:
A downward correction of the trend wave has been developing on the cross chart since mid-December. The movement structure is not complete. It is nearing the end of the middle part (B). The price is located at the upper edge of the large-scale reversal zone.
Forecast:
Over the next day, the pair’s upward trend is expected to be completed, the conditions for changing the course are formed, and the pair’s downward trend is expected to…