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Technical analysis recommendations for EUR/USD and GBP/USD on December 5

Economic calendar (Universal time)
Today, the economic calendar contains a variety of statistics, but publication of important indicators on December 5 is not expected.
Yesterday, none of the players managed to be as convincing as possible. As a result, the day has a long upper shadow, but the full-fledged rebound of the day candle is still not complete. Therefore, it is now highly likely that consolidation and uncertainty will develop. The current resistance is 1.1102 (the final boundary of the daily cross). The center of attraction is the area of 1.1082 (weekly Fibo Kijun + daily medium-term trend + upper boundary of the daily cloud). In this situation, support can be noted at 1.1060-50 (weekly Tenkan + daily levels) and 1.1030 (lower boundary of the daily cloud).
At the moment, the pair is deep enough in the downward correction zone. The players on the upside need to overcome 1.1086 (central Pivot level) and 1.1116 (maximum extreme), in order to regain their advantages and opportunities today. The positions of players to lower can be strengthened, having consolidated below the weekly long-term trend, which is now located at 1.1047. Due to the lack of clear priorities in…

European Economics Preview: Germany Factory Orders Data Due

Factory orders from Germany and revised quarterly national accounts from euro area are due on Thursday, headlining a light day for the European economic news. At 2.00 am ET, Destatis is scheduled to issue Germany’s factory orders for October. Economists forecast orders to grow 0.4 percent on month, slower than the 1.3 percent increase in September. At 3.00 am ET, Spain’s INE is slated to release industrial production for October. Economists expect production to drop 0.5 percent on month after falling 0.8 percent in September. In the meantime, retail sales from Hungary and GDP from Slovakia are due. At 3.30 am ET, IHS Markit releases Germany’s construction PMI data for November. At 5.00 am ET, Eurostat publishes revised GDP and retail sales data. The single-currency bloc is forecast to expand 0.2 percent sequentially as initially estimated in the third quarter. Economists forecast euro area retail sales to drop 0.3 percent on month in October, in contrast to a 0.1 percent rise in September. The material has been provided by InstaForex Company – www.instaforex.com…

Control zones of AUD/USD on 12/05/19

On the third day, the pair tests the zone of the average weekly move, which leads to a halt in growth and the formation of a local accumulation zone. The probability of consolidation above the average move by the end of this week is 30%, which makes purchases from current marks not profitable. In order to enter a long position, it will be necessary to lower the pair to yesterday’s low or to Weekly Control Zone 1/2 0.6804-0.6798.
Working in the flat implies the search for entry points at the boundaries of the range. The lower boundary is at a minimum of the last two days.
The upward movement remains a medium-term impulse, and thus, sales from the upper boundary of the accumulation zone should be focused on short profits. On the contrary, purchases from the lower boundary have an excellent perspective, since the main goal of growth is the weekly control zone 0.6875-0.6887.
Daily CZ – daily control zone. The zone formed by important data from the futures market that changes several times a year.
Weekly CZ – weekly control zone. The zone formed by the important marks of the futures market, which change several times a…

Forecast for USD/JPY on December 5, 2019

The information received yesterday from the headquarters of the US and Chinese negotiators on trade encouraged the markets – representatives of the parties allowed the conclusion of the first phase of the deal until December 15, before the date of the introduction of tariffs on Chinese goods. The US S&P 500 index gained 0.63%, Nikkei 225 is currently up 0.70% and China A50 grew 0.36%. The price turned from the achieved first bearish goal – from the enclosed line of the price channel, a little short of the MACD line. The signal line of the Marlin oscillator is still in the negative trend zone, growth could continue, but still within the correction.
The correction can continue to the range of 109.30/50 (highs of October 30 and November 7), going over the range will mean the correction will go into a trend growth, the target will be the line of the green price channel in the region of 109.95. Leaving prices at yesterday’s low opens the next bearish target at 107.57 – the intersection of the lines of the red and green price channels.
The material has been provided by InstaForex Company – www.instaforex.com…

U.S. Dollar Turning In Lackluster Performance

The U.S dollar turned in a relatively lackluster performance during trading on Wednesday as traders weighed upbeat news on the trade front against a disappointing batch of U.S. economic data. Currently, the dollar is trading at 108.87 yen compared to the 108.63 yen it fetched at the close of New York trading on Tuesday. Against the euro, the dollar is trading at $1.1078 compared to yesterday’s $1.1082. Optimism about trade resurfaced after a report from Bloomberg News indicated the U.S. and China are moving closer to agreeing on the amount of tariffs that would be rolled back in a phase one trade deal. Citing people familiar with the talks, Bloomberg said U.S. negotiators expect a phase one deal to be completed before U.S. tariffs are set to rise on December 15. The people told Bloomberg outstanding issues in the talks include how to guarantee China’s purchases of U.S. agricultural goods and exactly which tariffs to roll back. Bloomberg said the people downplayed President Donald Trump’s recent remarks suggesting he would like to delay completing an agreement until after the 2020 elections, noting the president was speaking off the cuff. Meanwhile, traders were also digesting some disappointing U.S. economic data, including…

EUR/USD. December 4. Results of the day. New US laws puts pressure on Beijing

4-hour timeframe
Amplitude of the last 5 days (high-low): 33p – 20p – 47p – 87p – 27p.
Average volatility over the past 5 days: 43p (low).
On December 4, the EUR/USD currency pair made another jump, however, if we look more closely at the European currency’s growth on Wednesday, it becomes clear that the entire leap is 30 points, and the volatility of the entire trading day is currently at 49 pips. Thus, from our point of view, nothing extraordinary happened except that the pair nevertheless updated the previous local high and, thus, showed its intention to form a more or less tangible upward trend. However, at the same time, we still believe that there are no good reasons for strengthening the European currency. Macroeconomic reports provide local support for the euro, but this joyful period for the EU currency can end very quickly, since in general the state of the EU economy remains much weaker than in the United States. Yes, inflation in the EU has shown positive dynamics in recent weeks, business activity indices in the services sector, but US data cannot be called a failure. Thus, the euro can still resume falling at any time.

U.S. Service Sector Growth Slows More Than Expected In November

A report released by the Institute for Supply Management on Wednesday showed the pace of growth in U.S. service sector activity slowed by more than anticipated in the month of November. The ISM said its non-manufacturing index dipped to 53.9 in November after climbing to 54.7 in October. While a reading above 50 still indicates service sector growth, economists had expected the index to edge down to 54.5. “The non-manufacturing sector had a slight pullback in November,” said Anthony Nieves, Chair of the ISM Non-Manufacturing Business Survey Committee. He added, “The respondents hope for a resolution on tariffs and continue to be hampered by constraints in labor resources.” The bigger than expected decrease by the headline index was partly due to a steep drop by the business activity index, which tumbled to 51.6 in November from 57.0 in October. Meanwhile, the new orders index rose to 57.1 in November from 55.6 in October and the employment index climbed to 55.5 from 53.7. The report said the prices index also increased to 58.5 in November from 56.6 in October, indicating a faster rate of price growth. On Monday, the ISM released a separate report showing U.S. manufacturing activity contracted for the…

December 4, 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.That’s why, two consecutive bearish pullbacks were executed towards 1.1025 and 1.0995 where two episodes of bullish rejection were demonstrated.Recent bullish pullback was demonstrated towards 1.1065-1.1085 where a cluster of supply levels were located (61.8% Fibo – 50% Fibo levels) that initiated a bearish movement towards 1.1000.On the other hand, recent price action suggested a high probability of bullish reversal around 1.1000 that brought the EURUSD pair again towards 1.1065-1.1085 as expected.Thus, the EUR/USD Pair has been trapped between the price levels of 1.1000 and 1.1085 until Today as a bullish spike is being demonstrated towards 1.1110.Initial bearish rejection should be anticipated around 1.1110 to bring bearish decline towards 1.1065.Moreover, a Head & Shoulders reversal pattern is being demonstrated with neckline located around 1.1065.Hence, a valid SELL entry can be offered upon bearish breakout below 1.1065. Initial bearish target would be…

*Bank Of Canada Maintains Overnight Rate Target At 1.75%

Bank Of Canada Maintains Overnight Rate Target At 1.75% The material has been provided by InstaForex Company – www.instaforex.com…