Ichimoku cloud indicator Daily analysis of EURUSD

Yesterday we mentioned the importance of the cloud break out in EURUSD. We also mentioned that a pull back and back test of the tenkan-sen and kijun-sen indicators would be a high probability. As we said yesterday, EURUSD could get back inside the Kumo…

EUR/USD: USD luring EUR into trap

The saga about the new stimulus bill is going on in the US. Deadlines have been delayed a few times, thus keeping the market in suspense. As a result, investors shift sentiment from risk aversion to appetite for riskier assets.

When the talks on …

USDCAD shows bullish divergence

USDCAD recently made a new lower low at 1.3115 and bounced back up from that level to 1.3150-1.3175 where it currently is now. The RSI did not follow the price and did not make a lower low giving us a bullish divergence. This is not a reversal signal b…

Gold price gets rejected at cloud resistance

Gold bulls were unable to break above $1,920 resistance and are now breaking below short-term support. Price got rejected at the cloud resistance we mentioned in our last analysis and Gold price is also breaking below the tenkan-sen and kijun-sen indic…

Evening review on EURUSD for October 22, 2020

EURUSD: The euro needs to stay below the level of 1.1765 if it wants to maintain growth.Employment in the U.S. increased by about 1 million in just a week.The USD managed to strengthen locally.You may keep buying the euro with a stop at 1.1700.You can …

Euro is falling, but purchases are still relevant

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The movement of the EUR / USD pair depends on the dollar and the stimulus for the US economy. The previous deadline proposed by Nancy Pelosi to conclude an agreement between the two parties was, as expected, rejected. Representatives of the US administration and the Democratic Party should continue to work on agreeing on the terms of state aid. The parties have not yet given any specifics as to whether the deal will be concluded before the November elections or not. However, White House chief of staff Mark Meadows told CNBC that a compromise could be reached before the weekend. In addition, incumbent President Donald Trump has recommended that Republicans consider approving more aid.

The euro is developing corrective dynamics after reaching a multi-week high. The EUR/USD pair was trading around 1.1820 during the European session. Despite the decline, market players remain confident that the local weakness of the euro will not last long. The dollar is still under fundamental pressure due to expectations of support measures for the country’s economy. Thus, the European currency maintains its growth target to 1.2000.

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Meanwhile, the pair has reached a serious resistance zone, and if the downward movement increases, then you should refrain from buying.

In addition to the news on incentives, traders pay attention to the weekly publication of data from the US labor market. More disappointing numbers will exacerbate dollar sales. In the run-up to elections, markets become particularly nervous, so a violent reaction is possible.

Moreover, the USD index fell to the lows since September 2 and almost completely played back the corrective pullback of last month. The indicator reached the support level of 92.5, which threatens to break out of the current range of 92.5–94.00.

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The USD/JPY pair fell to the level of 104.5, from where it moved to growth more than once over the past 4 years.

The dynamics of this currency pair are strongly linked to market sentiment. Its weakening indicates increased anxiety. This week, you need to carefully monitor its movement. If we see a rebound, it will be possible to push aside fears and tune in to restore optimism on trading platforms. If the yen rises, we should not rule out a stronger sell-off in the stock market.

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Investors are concerned about the constantly weakening dollar and are waiting for the results of the US election. However, it is still difficult to predict what will result in the victory of this or that candidate, whether that would be the failure of the dollar, or Vice versa – growth. It doesn’t matter who takes the position, but the succeeding US President will have to face all the same problems in the economy, including the huge national debt and the need to increase it in the face of a pandemic.

The material has been provided by InstaForex Company – www.instaforex.com

Analysis of Gold for October 22,.2020 – The breakout of ascending triangle pattern and potential for test of $1.955

UK government raises job support aid, cuts employers’ contributions

  • We are making job support scheme more generous
  • Employees only require to work 20% of hours, previously 33%
  • Firms only cover 5% of non-worked hours, previously 33%
  • Maximum grant will increase to £3,750 from £1,875 previously
  • Doubles grants for self-employed from 20% to 40%
  • Cash grants will be up to £2,100 per month for every month Tier 2 applies

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Further Development

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Analyzing the current trading chart of Gold, I found that the buyers are in control and there is the breakout of the ascending triangle in the background.

My first target was reached at the price of $1,930 and there is potential for the rally towards $1,955.

The short-mid term trend is still to the upside and my advice is to watch for buying opportunities on the dips with the target at $1,955

1-Day relative strength performance Finviz

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Based on the graph above I found that on the top of the list we got Ethanol and Sugar today and on the bottom Lumber and Orange Juice.

Key Levels:

Resistance: $1,931 and $1,955

Support level: $1,913

The material has been provided by InstaForex Company – www.instaforex.com

BITCOIN Flirting With New Highs

BTC/USD continued to increase as expected. I’ve told you in a previous analysis that Bitcoin should grow as long it stays above the uptrend line. The breakout above the temporary, minor downtrend line represented a great buying opportunity.The price ha…

EUR/USD Expected To Jump Higher

EUR/USD has slipped lower in the short term but the bias remains bullish. The rate has come back to test and retest a broken dynamic resistance before jumping higher. It could test and retest also the 1.18 psychological level trying to recapture more b…

Gold outlook – up, down, or range?

The gold market is experiencing a calm before the storm, but the current situation leaves a lot of questions that I will try to answer in this article. Strange as it may seem, but gold is not popular among some investors, being inferior in popularity t…