FXTM information and reviews
FXTM
93%
IronFX information and reviews
IronFX
92%
Libertex information and reviews
Libertex
91%
FXCC information and reviews
FXCC
90%
Markets.com information and reviews
Markets.com
89%
FxPro information and reviews
FxPro
88%
EUR/USD
1.1728
BTC/USD
42 567.79
GBP/USD
1.3640
USD/JPY
109.4710
USD/CHF
0.9230
USD/CAD
1.2802
EUR/JPY
128.3820

Bears testing the strength of trend line


22 October 2019

The decline on the US dollar index has ended. Monday’s candlestick remained within Friday’s range. The DXY index still closed down, but not by much in comparison to last week.

We’re starting to see signs of an impending upwards correction. Since the dollar collapsed on the back of geopolitical developments, technical factors currently don’t wield much influence. Only trading robots are sticking to their algorithms and completely ignoring the fundamentals. If a sell signal is formed against the trend, a short position is opened. But who knows, maybe some people have disabled their Expert Advisors until the Brexit situation is resolved.

In the US session, the dollar got a boost from positive news about a US-China deal. US10Y bond yields jumped 2.7% to 1.8046. The euro dropped to 1.1139.

US economic advisor Larry Kudlow said that if the first stage of negotiations with China goes well, the tariffs planned for December may be cancelled. US President Donald Trump has said that negotiations with China are going well, adding that he hopes to sign a deal at the APEC Summit in Chile.

Expectations of a correction were met. The pair revisited Friday’s high and reversed downwards. It missed the projected target by a few pips.

The euro is trading at 1.1151. The Kiwi, Aussie, and pound are trading up against most of the majors, so today’s forecast will be similar to yesterday’s. The only difference is that we don’t expect a fresh high today. Before breaking through the trend line, there’s likely to be a bounce, which will help gather momentum for the breakout. The pair could retrace 76% of yesterday’s drop.

The EURGBP cross is in the red. This means that the euro crosses are under pressure. Today’s calendar is devoid of any significant events, although it’s still worth keeping an eye on UK data.

Another discussion will take place on the Brexit deal in the British parliament today, after which a vote will take place. There may be talk on Wednesday of a second referendum. The boat might also be rocked by talk of a snap election.

In conclusion, the bullish impulse is waning. However, before we get a downwards correction, a false upwards breakout is possible. Around 1.1126 and 1.1110 is a good area for a correction.


Related

Stock Futures Trade Sharply Lower
Stock Futures Trade Sharply Lower

Futures in the United States and in Europe are trading sharply lower as investors worry about the domino effect of Evergrande’s massive plunge on the Chinese property market..

21 Sep 2021

Oil market: the unbalanced demand and supply
Oil market: the unbalanced demand and supply

Oil prices climbed to higher grounds in the most recent daily sessions adding further to its upward momentum formed so far in September. The Oil market is running...

21 Sep 2021

US Markets lost major support, Asian Indices are melting
US Markets lost major support, Asian Indices are melting

Global markets closed last week on the back foot, and no significant positive factors emerged in Asian trading, increasing the flight to safety. The Hang Seng lost...

20 Sep 2021

US Retail sales and other data has supported Dollar
US Retail sales and other data has supported Dollar

The US Retail sales notably exceeded expectations, adding 0.7% in August vs an expected 0.7% decline. The increase to August last year is an impressive 14.9%...

17 Sep 2021

Geopolitics Fire Up Up and Cryptos Are Booming
Geopolitics Fire Up Up and Cryptos Are Booming

Futures in the United States and Europe are trading lower today as investors are worried about the new security agreement between the U.S., the U.K. and Australia...

16 Sep 2021

UK inflation surges, stocks struggle
UK inflation surges, stocks struggle

European markets flat at the open this morning as UK inflation surged to a record high in August and Chinese economic data was soft. China’s retail sales fell to...

15 Sep 2021


Editors' Picks

OctaFX information and reviews
OctaFX
86%
HotForex information and reviews
HotForex
85%
XM information and reviews
XM
80%
FXCM information and reviews
FXCM
79%
Vantage FX information and reviews
Vantage FX
78%
Moneta Markets information and reviews
Moneta Markets
77%

© 2006-2021 Forex-Ratings.com

The usage of this website constitutes acceptance of the following legal information.
Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website (reviews, brokers' news, comments, analysis, quotes, forecasts or other information materials provided by Forex Ratings, as well as information provided by the partners), including graphical information about the forex companies, brokers and dealing desks, is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Forex Ratings shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about the forex companies. The entire responsibility for the contents rests with the commentators. Reprint of the materials is available only with the permission of the editorial staff.
We use cookies to improve your experience and to make your stay with us more comfortable. By using Forex-Ratings.com website you agree to the cookies policy.