Daily Analyses

EUR/USD: technical analysis and trading recommendations_01/24/2022
Returning to the dynamics of the euro and the EUR/USD pair, it failed to develop an upward correction after the publication of the HIS Markit report, and continues to decline, remaining within the descending channels on the daily and weekly charts. Their lower borders are currently passing near the 1.1100 and 1.1000 marks, respectively. A break of support at 1.1285 (Fibonacci 23.6% of the upward correction in the pair's decline from 1.3870, which began in May 2014, to 1.0500) will take EUR/USD out of the range between 1.1285 and 1.1370 (EMA50 on the daily chart) and send a pair to the lower border of a wider range formed between the levels 1.1235 and 1.1370. After its breakdown, the road will be open towards the 1.1100 and 1.1000 marks.
EUR/USD: the general situation in the Eurozone economy is still far from stable
Composite index of business activity in the manufacturing sector (from Markit Economics) across the Eurozone, published this morning, did not reach the forecast value of 52.6, being worse than the previous December value of 53.3 and amounting to 52.4. A reading above 50 is positive for the EUR and indicates an acceleration in business activity. However, its relative decline and a worse-than-expected indicator usually have a negative impact on the quotes of the European currency.
Daily HFT Trade Setup – GBPUSD Enters HFT Buying Area
The activity of high frequency trading algorithms in the Fx market this morning shows that the GBPUSD pair could be close to a reversal point for today's session. Namely, GBPUSD has been moving down so far today, and this morning is entering the light HFT buying pressure zone, which is located at 1.3532 and below.
USD/CAD: trading recommendations and market expectations_01/21/2022
USD/CAD spent this week mainly trading in the range between the local support/resistance levels 1.2450/1.2565. Today it failed to overcome the important short-term resistance level 1.2540 (EMA200 on the 1-hour chart) and is falling again at the time of publication of this article. It is also worth paying attention to the monthly USD/CAD chart, where the price has come up against a strong support in the zone of long-term levels 1.2535, 1.2510 (200 and 144-period moving averages). Accordingly, from a technical point of view, a breakdown of the local support at 1.2450 and resistance at 1.2560 (weekly lows and highs) will indicate the direction of further USD/CAD dynamics.
USD/CAD: what is the further dynamics of the dollar?
Today, the demand for protective yen, franc and government bonds has risen sharply. At the same time, quotations of commodity currencies fell sharply, along with continued decline in futures for the world's major stock indices. Accordingly, the growth in demand for government bonds leads to a drop in their yield and dollar quotes as a national currency. Thus, the yield on US 10-year Treasuries at the time of publication of this article is 1.790%, below the maximum since February 2020, 1.902%. Such yields were observed on the eve of the March emergency Fed meetings, when the interest rate was sharply reduced from 1.75%, first to 1.25%, and then to the current 0.25%.
Daily HFT Trade Setup – CHFJPY Testing HFT Selling Pressure Zone
The activity of HFT algorithms in the Fx market this morning shows that the CHFJPY pair may be nearing a turning point, having now reached the light HFT selling pressure zone that is noted today at 124.93 and above.
Daily HFT Trade Setup – USDCHF Bullish Candle at HFT Buying Zone
We are analyzing the activity of HFT algorithms in the Fx market this morning and find that the USDCHF pair could provide an attractive trade setup from the long side. Namely, USDCHF has on two occasions already tested the light HFT buying pressure zone - located today at 0.9142 and below - , and both were rejected.
AUD/USD: technical analysis and trading recommendations_01/20/2022
In response to the publication of fresh data on the dynamics of the Australian labor market today, the AUD has strengthened, and the pair AUD / USD has grown, breaking through the important resistance level 0.7215 (EMA200 on the 1-hour and 4-hour charts, EMA50 on the daily chart). The potential for corrective growth remains to the key resistance levels 0.7280 (EMA144 on the weekly chart and the upper limit of the descending channel on the daily chart), 0.7310 (EMA144 on the daily chart), 0.7335 (EMA200 on the daily and weekly charts). However, AUD/USD remains in the global bearish trend zone, trading below the key resistance levels 0.7310, 0.7335.
AUD/USD: towards an increase in the RBA interest rate
Today, the Australian dollar was among the leaders of growth on the market. It strengthened in response to the publication of data on the Australian labor market at the beginning of today's Asian session. The Australian Bureau of Statistics (ABS) reported that unemployment in December fell to its lowest level since 2008 4.2%. This turned out to be significantly better than the forecast of 4.5% and the previous value of 4.6%. Unemployment in the country began to gradually decline from July 2020. Then it was 7.5%, and its growth accelerated against the backdrop of massive closures of enterprises in the country due to restrictive quarantine measures. Now we see that as the situation with coronavirus improves in the country, the situation in the labor market also improves.