Tag: trade setup

Bullish Breakout in Gold – Potential Target 1,722! 

Gold prices were closed at 1702.04 after placing a high of 1710.96 and a low of 1693.74. Overall the movement of gold remained slightly bullish throughout the day. Gold prices rose and returned to the level of 1700 on Tuesday amid the fall of US CPI in April; however, it remained range-bound as the market ignored the CPI results in later sessions.  At 15:00 GMT, the NFIB Small Business Index for April exceeded the expectations of 86.7 and came in as 90.9 and supported the US dollar. At 17:30 GMT, the CPI for April was declined by 0.8% against the forecasted decline by 0.7% and weighed onus dollar. The closely watched Core CPI also declined in April to -0.4% against the forecasted -0.2% and weighed on the US dollar. At 23:00 GMT, the Federal Budget Balance from the US showed a deficit of -737.9B against the forecasted -729.7BB and supported the US dollar. Another reason for the Gold surge was the renewed call for negative interest rates by Trump on Tuesday. In his tweet, Donald Trump said that the US should accept the gift of negative interest rates. He renewed his calls for the Federal Reserve to push rates further down. Federal Reserve lowered its rates near zero to reduce the economic destruction caused by the coronavirus pandemic. Bank has said that it would use other tools to aid US markets and the economy instead of reducing rates to negative territory. Fig 1 – XAUUSD 120 min Chart XAUSD –

Read More

USD/CHF: Bearish engulfing candle driving the price towards the support

USD/CHF produced a bearish engulfing candle on the daily chart yesterday. The price upon finding its double top resistance produced two bearish candles consecutively followed by a bullish inside bar. Yesterday’s bearish candle has set a strong bearish tone; thus, the sellers may look to go short in the daily chart. Major intraday charts such as the H4 and the H1 look good for the bear as well. Let us now have a look at those three charts. Chart 1 USD/CHF Daily Chart The chart shows that the price had a rejection at 0.97605 twice. Upon producing a shooting star, the price headed towards the South with one more candle. It then produced a bullish inside bar followed by yesterday’s bearish engulfing candle. The sellers may go short below 0.96655. The price may find its next support around 0.95935. Chart 2 USD/CHF H4 Chart The chart shows that the price made a strong bearish move and breached the level of 0.97000. The pair is trading around the breakout level now. If the price produces a bearish reversal candle, the sellers may go short and drive the price towards the South. The price may find its next support around 0.96110. On the contrary, if the resistance is breached, the price may head towards the North and find its resistance around 0.97155. Chart 3 USD/CHF H1 Chart The H1 chart shows that the price made a strong bearish move and had a bounce at 0.96680. Upon producing a bullish engulfing candle, the

Read More

Daily F.X.Analysis, May 13 – UK GDP and Fed Chair Speak In Focus! 

The dollar is trading with a neutral bias as the US April Inflation data showed that it fell more than the expectations and made the U.S. dollar weaker against Euro currency. The forecasted value of CPI was -0.7%, which in actual came as -0.8%. The Core CPI came as -0.4% in the month of April against the forecasted -0.2%. Let’s wait for Fed Chair’s speech today. Economic Calendar          BTC/USD – Daily Analysis The BTC/USD prices continue to consolidate with in the same trading range of 9,000 – 8,600 level. The BTC/USD price prolongs restoration over $8,900 but declines below $9,000. Gains over $9,000 would open the way to barter with the resistance at $9,532. Bitcoin buyers are eventually rising from their hiding following a grisly four days.  The largest cryptocurrency has fought with improvement from the weekend lows at $8,100. Nevertheless, progress has been made towards $9,000 after the seller congestion zone at $8,900 was cleared. The BTC/USD is trading at $8,910, following a trivial improvement from a high of $8,979. The BTCUSD is particularly bullish while trading over the $8,700 mark, key resistance is located at the $9,400 and the $10,000 marks. If the BTCUSD pair trades beneath the $8,700, sellers may examine the $8,000 and $7,000 support marks. At the moment, the volatility in the leading cryptocurrency is notably high. Nevertheless, from a technical perspective, Bitcoin’s downside is maintained by the assembly created by the 61.8% Fibonacci level and the 200-day SMA. Today, a bearish

Read More

USD/CAD Slips to Form Three Black Crows – Quick Trade Idea!

During Tuesday’s Asian session, the USD/CAD currency pair erasing its early-day gains to 3-weeks high but still trading above the key 1.40 psychological mark. The currency pair extended its previous day’s strong intraday recovery move from the 1.3900 marks and rose above mid-1.4000 earlier in the morning. However, multiple factors like weaker U.S. dollar and rise in the oil prices kees the currency pair gains limited. At this particular time, the USD/CAD currency pair is currently trading at 1.4014 and consolidates in the range between the 1.4002 – 1.4064. The commodity-linked currency Loonie came under pressure after the WTI prices fell, and hence, USD/CAD started to move in an upward direction to post gains. Furthermore, adding in the upward movement of USD/CAD pair prices was the strength of the U.S. dollar across the board on Monday amid the increased U.S. Treasury Yields. The U.S. Dollar Index, which measures the value of the dollar against a basket of six currencies, rose 1.03% on that day and reached to 100.27. There was no economic data from USD or CAD side on Monday, so the movement of pair was attributed to the WTI crude oil prices or broad-based U.S. dollar strength. On News front, the Deputy PM of Canada, Chrystia Freeland, said that Canada and the U.S. were working on plans to deal with the increased cross-border traffic after both countries have eased down in restrictions. Canada almost reached near the death toll of 5000 by standing at 4871; the total cases of

Read More

EUR/NZD: Support pushing the price towards the upside

EUR/NZD produced a bullish engulfing candle yesterday. Thus, intraday buyers may keep their eyes on the pair to go long. The price has been choppy on the H1 chart so far. However, the price may have found its double bottom support. Thus, it may head towards the North and offer a long entry to the buyers. Chart 1 EUR/NZD H1 Chart The H1 chart shows that the price upon finding its support made a strong bullish move yesterday. It had a rejection at 1.78500 yesterday and today as well. On the other hand, the level of 1.77650 has been working as a level of support. As of writing, the level produced a bullish inside bar at its last bounce. If the price heads towards the North and makes a bullish breakout at the level of resistance, the buyers may go long above 1.78500. Trade Summary: Entry: Buy above 1.78500 Stop Loss: Below 1.77650 Take Profit 1: 1.79080 Take Profit 2: 1.79435 Take Profit 3: 1.80000

Read More

USD/CAD Is Ready for Retracement – Who’s Up for It?

The USD/CAD was closed at 1.39218 after placing a high of 1.39902 and a low of 1.39084. Overall the movement of USD/CAD remained bearish throughout the day. At 17:17 GMT, the Housing Starts in April increased to 171K against the expectations of 107K and supported Canadian Dollar. At 17:30 GMT, the Employment Change reported that during April, Canada lost 1993.8K jobs, which were expected to be 4000K. The Unemployment Rate from Canada increased to 13% against the expected increase to 18%. The Building Permits in March was reported to be 13.2% down, when the expected drop was 20.1%.  The number of houses that started construction in April increased, better than expected fall in the job loss during April and better than expected rise of unemployment rate along with the better than expected decline in the building permits from Canada during March, all helped CAD to gain strength against U.S. dollar on Friday. Strong CAD due to strong employment data dragged down the USD/CAD pair and extended the losses of the pair at the ending day of the week.  Furthermore, the recovery in Crude Oil prices on Friday due to risk-on market sentiment after the easing of lockdown measures and increased demand for oil also added in the strength of commodity-linked currency Loonie and further weighed on USD/CAD prices on Friday. Meanwhile, the USD was also supportive of its better than expected employment data on Friday. The Average Hourly Earnings from the United States recorded at 4.7% during April, whereas 0.5%

Read More

Daily F.X. Analysis, October 24 – Top Trade Setups In Forex – ECB Rate Decision Up Next

The Sterling and single currency Euro both gained momentum against the U.S. dollar on Wednesday as European Union administrators postponed a verdict on whether to grant Britain a three-month Brexit extension. UK’s PM Boris Johnson presented a proposal to rush the timeline to pass legislation for an orderly Brexit on Tuesday. But the deadline got rejected through voting in UK Parliament, which means that the Brexit process would not be completed in time for UK exiting EU on 31st October.  German 10-year Bond yields at 14:34 GMT, dropped to weekly lows near -0.42% and weighed on the single currency – Euro and caused a drop in EUR/USD in early trade session on Wednesday. At 18:15 GMT, the Consumer Confidence from Eurozone came in as -8 for the month of September against -7 expectations. The decline in confidence of consumers also weighed on EUR/USD on Wednesday. Economic Calendar – ECB Rate Decision Up Next     BTC/USD – Daily Analysis Facebook Inc CEO Mark Zuckerberg admitted on Wednesday that the company’s proposed digital currency Libra was a “risky project.” He merely tried to convince skeptical U.S. legislators that it could reduce the cost of electronic payments and extend the global financial system to more people. The value of BTC/USD, the world’s best-known virtual currency, plunged over 7% on Wednesday to $7,412. This is the lowest level since May mid. It was not instantly apparent why the price, which began its slide around 13:40 GMT, had dropped so sharply. Bitcoin’s price on

Read More
Top