EUR/USD shows bullish trend forecast with BUY signal

Forex

Summary:

On November 12, 2024 at 8:20 PM, the EUR/USD currency pair was trading at 1.0625. After a sharp decline, the pair is showing signs of a slight recovery thanks to the support from the CCI indicator and the accumulation trend on the Bollinger Bands...

BUY EURUSD

Close Time

CLOSED

1.06252

Entry Price

1.06550

1.06000

1.05473 -0.00162 -0.15%

25.2

Pips

Loss

1.06000

1.05998

Exit Price

1.06252

Entry Price

1.06550

On November 12, 2024, EUR/USD was trading at 1.0625, with signs of consolidation around strong support. The recent decline in the EUR was mainly due to slower-than-expected economic growth in the Eurozone and pressure from the strengthening of the USD. However, the USD is now starting to come under pressure due to uncertainty in the US Federal Reserve's (Fed) policy and complex geopolitical factors, causing investors to consider switching to the EUR.

In addition, the European Central Bank (ECB) has signaled that it will maintain a stable monetary policy to support the economy, which helps to strengthen confidence in the EUR in the medium and long term. At the same time, the inflation index in Europe is gradually stabilizing, creating favorable conditions for businesses and investors. These factors have contributed to creating a positive sentiment towards the EUR, supporting the short-term BUY trend in the EUR/USD pair.

Market psychology

The current market sentiment is cautious for the USD as investors are concerned about the possibility that the Fed may slow down the pace of interest rate hikes due to signs of slowing US economic growth. Recent data on the US domestic employment situation and consumption have shown weakness, leading to expectations that the Fed will take a more cautious stance in the coming period. This has reduced the attractiveness of the USD and prompted investors to consider shifting capital to safer assets, including the EUR.

In addition, the unstable geopolitical situation in key regions of the world, especially in the Middle East, also contributed to the increased uncertainty in the market, adding momentum to the trend of turning to the EUR as a safe haven. Combined with the stable economic outlook in Europe, this created a favorable sentiment for the BUY trend in EUR/USD.

Technical analysis

The EUR/USD 15-minute chart shows positive signals for a short-term uptrend. The CCI is currently at 66.21, indicating bullish momentum as the CCI moves out of the oversold zone. If the CCI continues this trend, it will reinforce the BUY trend as buying pressure starts to return to the market.

The Bollinger Bands chart shows that EUR/USD is hovering near the middle band, with the upper and lower bands narrowing, signaling that the market is in a consolidation phase. If the price breaks above the middle band and is likely to reach the upper band, this will be a positive signal for the next rally. The narrowing Bollinger Bands are also an indicator that more volatility may be coming in the near future, and if the price can break above the resistance at 1.0650, the uptrend could be activated.

The Ichimoku indicator shows that the price is trying to break above the Kumo cloud, with the Tenkan-Sen line crossing above the Kijun-Sen line, a signal that the uptrend is forming. If EUR/USD can break above the cloud and stay above it, it will be a key signal supporting a short-term rally.

Trading Recommendations

Based on technical signals and economic factors, investors can consider the following trading strategies:

Entry: Buy at 1.0625 if price stays above the Bollinger Bands average.

Take Profit: Set target profit at 1.0655, near important resistance level.

Stop Loss: Place stop loss at 1.0600 to protect capital in case of market reversal.

Risk Warnings and Disclaimers

You understand and acknowledge that there is a high degree of risk involved in trading. Following any strategies or investment methods may lead to potential losses. The content on the site is provided by our contributors and analysts for information purposes only. You are solely responsible for determining whether any trading assets, securities, strategy, or any other product is suitable for investing based on your own investment objectives and financial situation.

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Adam

Forex

Summary:

On November 12, 2024 at 8:20 PM, the CAD/CHF currency pair was trading around 0.6317. The current development shows that the CAD is still maintaining its strength thanks to the support of positive economic data in Canada, despite the recent decline in oil prices...

BUY CADCHF

EXP

EXPIRED

0.63170

Entry Price

0.63350

0.63000

0.63335 +0.00056 +0.09%

Pips

EXPIRED

0.63000

0.63295

Exit Price

0.63170

Entry Price

0.63350

On November 12, 2024, the CAD/CHF pair was trading around 0.6317, reflecting the stable trend of the CAD despite the slight decline in crude oil prices. Currently, WTI oil prices are around $68/barrel, down about 5% from last week, but the CAD is still supported by the strength of the Canadian economy. As a major oil exporter, Canada has been under pressure from the decline in oil prices, but other economic data has helped to mitigate this negative impact. The recent report showed that Canada's third-quarter GDP growth reached 2.5%, which was lower than the expectation of 3%, but still showed that the country's economy is expanding in the current difficult conditions. In addition, the Canadian labor market continues to improve with the unemployment rate remaining stable at 5.6%, increasing investor confidence in the CAD.

Meanwhile, Switzerland is experiencing a period of economic stability with a conservative monetary policy from the Swiss National Bank (SNB). Although the Swiss economy is less volatile, the lack of a strong CHF indicates that investors are looking to markets with higher potential returns such as the CAD. These factors have created a positive environment for the CAD/CHF pair, increasing the expectation of a BUY trend.

Market psychology

Current market sentiment favors a BUY CAD/CHF trend as investors look forward to a strong economic recovery from Canada. Canadian macroeconomic indicators such as consumer confidence and business confidence have improved significantly in recent months, with the business confidence index reaching 58 points, up from the 6-month average of 52 points. This shows that businesses and investors are confident in the growth potential of the Canadian economy, despite the volatility in the energy market.

In addition, the decline in oil prices has affected the Canadian economy, but the impact has not been as severe as expected, thanks to the stability of domestic consumption and demand for non-oil exports. Meanwhile, the CHF tends to be negatively affected by the lack of monetary policy changes from the SNB. Investors are shifting capital flows to higher-yielding assets, while the CHF remains stable without strong growth momentum. This increases the demand for CAD/CHF, supporting the growth trend of this currency pair.

Technical analysis

On the 15-minute chart of CAD/CHF, technical indicators are all showing positive signals for the BUY trend. The Stochastic (5,3,3) indicator is currently at 80.71, near overbought levels, however the %K line is still above the %D line, indicating that the uptrend still has momentum and there are no signs of a strong reversal. If the %K line continues to stay above the %D line, this will reinforce the buy signal for this currency pair, with the possibility that the price may continue to move higher in the short term.

The Bollinger Bands chart on the M15 timeframe shows that the bands are showing signs of narrowing, reflecting the decrease in volatility after a bearish cycle. The current price is oscillating around the Bollinger Bands' average line, and if the price can break above the middle band, it is likely to continue towards the upper band, indicating a potential bullish trend. The narrowing Bollinger Bands are also a signal of increased volatility, if the price breaks above the important resistance level at 0.6330, a strong bullish trend is likely.

According to the Ichimoku indicator, the Tenkan-Sen line has crossed above the Kijun-Sen line and is moving upwards, a signal that the uptrend is forming and could continue. The Kumo cloud is currently showing green above, reinforcing the short-term uptrend. If the price can hold above the cloud, this will be a positive signal supporting the decision to buy CAD/CHF.

Trading Recommendations

With positive signals from technical analysis and support from the macroeconomic backdrop, a short-term trading strategy for CAD/CHF could include:

Entry: Buy at 0.6317 if price continues to hold above the moving average.

Take Profit: Set target profit at 0.6335, where there is an important short-term resistance level.

Stop Loss: Place stop loss at 0.6300 to protect capital in case of market reversal.

Risk Warnings and Disclaimers

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Eva Chen

Forex

Central Bank

Summary:

As at September, the unemployment rate in the UK surged to 4.3% over the past three months, while the growth rate of average earnings exceeded expectations. Following the release of disappointing employment data, the GBPUSD fell below 1.2800.

SELL GBPUSD

EXP

TRADING

1.28150

Entry Price

1.25700

1.30500

1.26832 -0.00244 -0.19%

0.0

Pips

Flat

1.25700

Exit Price

1.28150

Entry Price

1.30500

Fundamentals

The British pound weakened against major currencies on Tuesday. Data revealed that the unemployment rate in the UK rose beyond expectations, while wage growth slowed, albeit slightly below forecasts. Following the release of this data, the GBPUSD fell from 1.2831 to a three-month low of 1.2798.

Sub-indicators indicated a slight softening in the UK job market for October, with employment numbers decreasing by 5,000 month-on-month, reflecting a change of -0.0%, bringing the total to 30.4 million. Compared to the same period last year, employment figures showed an increase of 95,000, representing a growth rate of 0.3%. However, the number of unemployment benefit claims rose by 26,700 to 1.806 million, which was below the anticipated increase of 30,500.

In the three months as at September, the unemployment rate climbed from 4.0% to 4.3%, surpassing the expected rate of 4.1%. In terms of income, total average earnings, including bonuses, grew by 4.8%, exceeding the previous increase of 3.9% and market predictions. Excluding bonuses, average earnings also rose by 4.8%, slightly lower than the prior 4.9% increase, yet still above the expected 4.7%.

Kathleen Brooks, the research director at XTB, stated in a report, "The rise in unemployment rates may prompt the market to increase its pricing for a potential interest rate cut by the Bank of England (BOE) next month."

MARKET WATCH: BOE officials have been closely monitoring wage growth when making decisions about interest rates, as wage growth is a primary driver of inflationary pressures in the services sector. Compared to other G7 nations, the BOE's approach to monetary easing has been more gradual, largely due to the elevated inflation in the services sector.

It is noteworthy whether investors will ramp up their bets on a rate cut by the BOE due to a slowdown in the labor market, or if they will reduce their bets in the event that wage growth exceeds expectations. Currently, market participants are slightly leaning towards a further 25 basis point cut at the monetary policy meeting in December. Last week, the BOE also lowered its key lending rate by 25 basis points, while favoring a more gradual approach to policy easing.

Market Expectations for BOE Rate Cut Heat Up_1

Technical Analysis

The GBPUSD continues to decline as it fails to maintain the 200-day SMA. Currently, the GBPUSD has fallen below the 1.2800 threshold, reaching a nearly three-month low, which shifts the overall trend to a negative outlook and establishes a bearish reversal pattern.

As the Relative Strength Index breaks below the 40 level, it indicates that bearish momentum has commenced. A break of the 61.8% retracement level from 1.2298 to 1.3433 at 1.2732 will pave the way towards the critical support level at 1.2298. During this period, the August low of 1.2665 will serve as a significant buffer for the pound bulls.

On the upside, a breakout above the resistance level at 1.3008 will initially shift the intraday bias to neutral, followed by a potential consolidation phase.

Trading Recommendations

Trading Direction: Sell

Entry Price: 1.2850

Target Price: 1.2570

Stop Loss: 1.3050

Deadline: November 27, 2024 23:55:00

Support: 1.2776, 1.2665, 1.2613

Resistance: 1.2875, 1.3008, 1.3048

Risk Warnings and Disclaimers

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Alan

Cryptocurrency

Summary:

With Trump's victory in the U.S. elections, Bitcoin has entered a bull market, experiencing a significant surge over seven consecutive days, with an increase nearing US$20,000. This current bull run for Bitcoin is anticipated to continue until January next year when Trump assumes office, with the primary target set to surpass US$100,000.

BUY BTC-USDT

EXP

PENDING

80500.0

Entry Price

99000.0

75200.0

89958.1 -2567.5 -2.77%

Pips

PENDING

75200.0

Exit Price

80500.0

Entry Price

99000.0