• Gold price bounces but remains below key resistance trend line.
    on October 7, 2020 at 12:38 pm

    Gold price gave us a short-term bearish signal yesterday as it broke below $1,895 support and could not hold above $1,900. As we have said many times before, the $1,900 level is an important junction as it was once key support and is now key resistance. Bulls need to hold above this level. Red line -resistance trend lineRed rectangle - resistance area Gold price got rejected at the resistance trend line and the resistance area. Bulls need to form a higher low to gather strength and then attack and break above the resistance. Inability to break above the trend line resistance will increase selling pressure on the precious metal. Support is at $1,870 and if bulls fail to hold this level, then we should see Gold reach $1,850.The material has been provided by InstaForex Company - www.instaforex.com

  • EURUSD bounces challenging key resistance area.
    on October 7, 2020 at 12:34 pm

    EURUSD has formed a higher low yesterday at 1.1725 and is now bouncing towards key resistance area. As long as price is above 1.1725 bulls have hopes for a break above 1.18 and a move towards 1.19. Red rectangle - resistanceBlue line- short-term support trend line Green rectangle - higher lows EURUSD continues to make higher lows. We wait to see if it makes a higher high. Support is at 1.1725. Breaking below it will open the way for a move towards 1.1670-1.16. Resistance is at 1.1770-1.18. Breaking above this level will open the way for a move towards 1.19. Short-term trend remains bullish after the bottom at 1.1612 and as long as price makes higher lows.The material has been provided by InstaForex Company - www.instaforex.com

  • NZDUSD head and shoulders pattern
    on October 7, 2020 at 12:30 pm

    In yesterday's analysis on NZDUSD we mentioned the preferred scenario of the creation of a possible head and shoulders pattern. Price has turned lower from 0.6635 and is now below 0.66, in what we believe is the right hand shoulder of the bearish pattern. Red rectangle - resistance areaBlue line -neckline support Black lines - head and shoulders pattern NZDUSD is moving closer towards the neckline support. As long as price does not break below the neckline, the head and shoulders pattern is not confirmed and not activated. Major resistance remains at 0.67-0.6750. Bears want to see the neckline support at 0.65-0.6520 to fail to hold in order for price to continue lower towards 0.64-0.6350.The material has been provided by InstaForex Company - www.instaforex.com

  • Evening review on October 7, 2020
    on October 7, 2020 at 12:22 pm

    The euro has recovered from overnight losses and is trying to start a new rally. You may keep buying from 1.1685, but the stop has been moved almost to breakeven at 1.1694. Moreover, at point 1.1694, we completely reverse the position down to sell. You may also consider purchases in case of a breakdown at 1.1810.The material has been provided by InstaForex Company - www.instaforex.com

  • Trump vs. Pelosi: What will happen to the stimulus relief negotiations?
    on October 7, 2020 at 11:51 am

    Yesterday, Fed Chairman Jerome Powell made a strong call at the annual conference of the National Association of Business Economics to implement a package of measures to support the US economy in the near future. According to him, further economic recovery depends on urgent financial support, and the restrained reaction of the US President can cause irreparable damage. In addition, he emphasized that the economic recovery should not slow down; in view of this, the measures proposed by the Democratic party are designed to speed up the recovery process and finally move interest rates from the lower limits of the range. But apparently, such a completely understandable position does not resonate with US President Donald Trump – he did not support the proposal of House Speaker Nancy Pelosi to stimulate the economy by $ 2.4 trillion and postponed all negotiations regarding this until the presidential election is over. This has clearly affected the US market. Stock markets collapsed, with the S&P 500 down by 1.4% and the NASDAQ down by 1.6%. Trump's statement revived demand for defensive assets, while slightly lowering Treasury yields. The inconsistency of what is happening is that just the day before, D. Trump recognized the feasibility of introducing new incentives and was ready to implement the planned deal, as proven by his recent messages on Twitter. Following his tweet, the head of the US Treasury Department, Steven Mnuchin, and the Speaker of the House of Representatives, Nancy Pelosi, were actively negotiating by phone. It can be recalled that Nancy Pelosi is the third person in the US government after Donald Trump and Vice President Mike Pence. This woman is rightfully recognized as the most influential politician and at the same time, an ardent opponent of the current president. The confrontation between Trump and Pelosi has long become a kind of reality show. These two influential figures in the government rarely miss an opportunity to avoid exposing each other for illegal and defamatory actions. Trump called Pelosi an incompetent "third-rate politician," while Pelosi openly criticizes the laws passed by Trump. The famous incident was when Trump ignored Pelosi's outstretched hand at his speech in Congress. This time, D. Trump accused Pelosi that her proposal to support the US economy has nothing to do with COVID-19. The White House administration, or, in other words, the Republicans, are planning to spend $ 1.6 trillion on stimulating the economy, and the Democrats, in turn, propose to allocate $ 2.2 trillion, which led to disagreements. The Democrats led by Pelosi were ready to spend $ 1 trillion on this, and Trump did not see this spending as an actual help to contain the pandemic, pointing out that Pelosi just want to allocate these huge amounts from the budget for Democratic leaders of States, which he thinks are doing a bad job. As a result, Nancy Pelosi agreed to cut the previously proposed amount of spending in half, however, the White House still did not approve this. It is worth recognizing that, despite this unprecedented attack by all indicators of Trump, the market showed a decline, although not much. The yield on 2-year US Treasury notes was changed slightly yesterday at 0.147%. The yield on 10-year bonds fell by 1.9 pips to 0.741%, while the yield on 30-year bonds fell 2.8 pips to 1.537%. This is the most significant session drop in the indicator over the past month. Analyzing Trump's statement, many experts perceive it as a likely tactical course of negotiations, which aims to intimidate the other side, forcing it to make concessions.The material has been provided by InstaForex Company - www.instaforex.com

  • BTC analysis for October 07,.2020 -Contraction on the BTC. Watch for the breakout to confirm further direction
    on October 7, 2020 at 11:36 am

    Further Development Analyzing the current trading chart of BTC, I found that my idea from yesterday is still active. I see well developed symmetrical triangle and my advice is to watch for the breakout to confirm further direction... The upside breakout of resistance at the price of $10,800 might confirm test of $11,090 and $12,000 The downside breakout of support at the price of $10,370 might confirm further downside movement towards $9,815 and $8,975 Key Levels: Resistance: $10,800 Support level: $10,370The material has been provided by InstaForex Company - www.instaforex.com

  • Fed Chairman Powell calls for more stimulus, warning that the US economy still has a long way to go and could collapse at
    on October 7, 2020 at 11:33 am

    On Tuesday, Fed Chairman Jerome Powell warned that the US economy still has a long way to go before seeing a full recovery, and on top of that, it could collapse again at any moment. Because of this, he called for extra vigilance and, accordingly, assistance from the government. "If support is weak, recovery will be just as weak, which will create more difficulties. Fiscal policy and monetary policy must continue to work side by side to provide sustenance and support to the economy," he said. Powell also mentioned the programs that the Fed introduced last spring, however, none of them has been fully implemented yet. One example is the trillions of dollars that should have gone to firms and credit markets, which, until now, remains only a potential. Nonetheless, he remarked that the worst is over, because despite an incomplete recovery in demand, government loans and increased unemployment benefits have dampened the recession. However, growth in jobs have slowed down amid recovery in business investment, and, if it continues, another recession could be provoked. As of the moment. 22 million jobs have been lost since early March. The highest unemployment rate recorded in the United States was 11%.The material has been provided by InstaForex Company - www.instaforex.com

  • EUR/USD analysis for October 07 2020 - The bullish trend is still active and there is potential for re-test pf 1.1805
    on October 7, 2020 at 11:32 am

    Prior -4.8% Market index 804.7 vs 769.6 prior Purchase index 316.0 vs 320.9 prior Refinancing index 3,622.3 vs 3,346.9 prior 30-year mortgage rate 3.01% vs 3.05% prior The long-term mortgage rate slips to its lowest on record in the survey's history, and that is arguably spurring the increase in refinancing activity - which carried the jump last week. Purchasing activity slumped but remains at considerably high levels still. Further Development Analyzing the current trading chart of EUR, I found that sellers did try to change the trend yesterday but with no great success. The EUR is still in short-term upside trend and I see further upside movement towards 1,1805 and 1,1875 My advice is to watch for buying opportunities on the intraday dips with first target at 1,1805 1-Day relative strength performance Finviz Based on the graph above I found that on the top of the list we got Lean Hogs and Russell 2000 today and on the bottom Lumber and Gasoline. Key Levels: Resistance: 1,1805 Support level: 1,1732The material has been provided by InstaForex Company - www.instaforex.com

  • Analysis of Gold for October 07,.2020 - Bull flag pattern in creation and potential fot the rally towards the $1.897
    on October 7, 2020 at 11:25 am

    The key news overnight was that Trump put a halt to stimulus talks until after the election, and that sent risk assets shuddering with US indices closing over 1% lower. He did attempt to walk some of that back by tweeting out standalone parts of the bill and saying that he is ready to sign off on those at any time. Trump even agreed with Fed chair Powell for once, on the need for more fiscal aid. But let's face it, the Democrats aren't going to bite - not with the election coming up. So, this per-election deal or no deal debacle is finally starting to have more of an answer and it isn't something that equity investors will quite like. That may lead to some caution in the near-term but if the election promises to be a sweep on either side (for now Biden has the edge in that sense), then perhaps stocks and risk may not crumble entirely over the next few weeks. Further Development Analyzing the current trading chart of Gold, I found that sellers is trying to make the new 2-day low but there is still potential for the upside movment till end of the day. 1-Day relative strength performance Finviz Based on the graph above I found that on the top of the list we got Lean Hogs and Russell 2000 today and on the bottom Lumber and Gasoline. Key Levels: Resistance: $1,897 Support levels: $1,881 and $1,872The material has been provided by InstaForex Company - www.instaforex.com

  • Trading recommendations for the EUR/USD pair on October 7
    on October 7, 2020 at 10:58 am

    The EUR / USD currency pair, moving along the course of the correction that started from the local low of 1.1612, found a strong resistance in the area of the sideways channel 1.1700 // 1.1810 // 1.1910, so as result, a slowdown occurred, followed by a price reversal towards the level of 1.1800. For several times already, 1.1810 acted as a strong resistance as well as support, with which traders could prepare in advance for a stop and a possible rebound, so, because of this, the euro remained trading in a flat market, not rising nor declining sharply in the charts. Only a consolidation below 1.1690 / 1.1700 will trigger a full-fledged downward move, therefore, as long as the quote remains above this area, the movement will be classified as just a correction, not a bearish trend. On that account, if we analyze the M15 chart and look at the positions set up in the EUR / USD pair yesterday, we will see that activity arose at 19:45, during which the quote traded within the values 1.1770 / 1.1800. A rather high degree of speculation, as well as short positions were the main driver of this development. In terms of daily dynamics, a value of 76 points was recorded, which is practically the same as the average level of volatility. The highest rate of acceleration was recorded in the minute and hourly time frames. This is because traders, following the recommendations on the previous review , opened short positions after a consolidation below 1.1765, which would trigger a price rebound from the level of 1.1810. But if we look at the daily chart, we will see that the movement is only a correction, and this can complicate the work of short positions. In another note, the latest data on JOLTS was published yesterday, and it revealed a 204 thousand decrease in the statistics for August. The report showed that jobs only to 6.493 million, lower than the 6.697 million record the earlier month. In Europe, ECB board member Philip Lane presented his assessment of the macroeconomic prospects, commenting that low inflation for a long period of time can greatly harm the economy. In this situation, he said that it is necessary to use all kinds of regulator tools, subtly hinting that the scope of the quantitative easing program should be further expanded, and that the program should be extended until the end of 2020. Accordingly, ECB president Christine Lagarde said that the regulator has developed a new plan to rescue the economies of European countries and, if necessary, is ready to adopt new monetary incentives. Within the framework of the plan in question, key interest rate is presumed to be reduced. As for the US Federal Reserve, Chairman Jerome Powell spoke about the pace of economic recovery in the United States. "Economic recovery is progressing faster than generally expected. The most recent forecasts by the FOMC members at our meeting last September showed that recovery continues at a solid pace. However, there is a risk that a slowdown could occur, especially once the economy comes closer to full recovery. Although the unemployment rate fell to 7.9% in September from 14.7% at the peak of the pandemic, the labor market still has a long way to go, "he said. Today, the Federal Reserve will release its latest protocol, which will inevitably affect the rate of the US dollar in the market. 19:00 - FOMC Protocol Further development As we can see on the trading chart, the euro faced a strong resistance at the level of 1.1810, so as a result, price reversed and resumed trading downwards in the market. If the EUR / USD pair continues to trade above the level of 1.1700, the quote will remain in the long-standing sideways channel (1.1700 / 1.1810 / 1.1910), but if it consolidates below 1.1690 / 1.1700 (entry point 1.1685), a full -fledged decline will occur. Indicator analysis Indicators on the M15 time frame signal BUY due to the price rebound during the Asian and European sessions, while the hourly time frame emits a neutral signal due to the downward move yesterday. As for the daily time frame, it signals BUY since the quote remains within the long-standing sideways channel. Weekly volatility / Volatility measurement: Month; Quarter; Year Volatility is measured relative to the average daily fluctuations, which are calculated every Month / Quarter / Year. (The dynamics for today is calculated, all while taking into account the time this article is published) Volatility is currently at 42 points, which is 46% below the average daily level. Local acceleration is still possible in the EUR / USD pair, but only at the minute and hourly time frames. Key levels Resistance zones: 1.1755 / 1.1770 *; 1.1910 **; 1.2000 ***; 1.2100 *; 1.2450 **; 1.2550; 1.2825 Support Zones: 1.1700; 1.1650 *; 1,1500; 1.1350; 1.1250 *; 1.1180 **; 1.1080; 1.1000 ***. * Periodic level ** Range level *** Psychological level Also check trading recommendations for the GBP/USD pair here, or brief trading recommendations for the EUR/USD and GBP/USD pairs here. The material has been provided by InstaForex Company - www.instaforex.com