The legend in the InstaSpot team!
Legend! You think that's bombastic rhetoric? But how should we call a man, who became the first Asian to win the junior world chess championship at 18 and who became the first Indian Grandmaster at 19? That was the start of a hard path to the World Champion title for Viswanathan Anand, the man who became a part of history of chess forever. Now one more legend in the InstaSpot team!
Borussia is one of the most titled football clubs in Germany, which has repeatedly proved to fans: the spirit of competition and leadership will certainly lead to success. Trade in the same way that sports professionals play the game: confidently and actively. Keep a "pass" from Borussia FC and be in the lead with InstaSpot!
The EUR/USD currency pair surprisingly showed significant growth throughout Thursday. The main thing is that this growth does not end in the 1.1750-1.1760 range. Let's recall that the pair has been in a sideways channel between 1.1400 and 1.1830 for seven consecutive months, and breaking out of it is the main task for the coming months. Why can this rise in the pair be considered surprising? In fact, there is nothing surprising because this week the pair broke above the descending trendline, making the growth entirely justified from a technical standpoint. However, yesterday, a strong third-quarter GDP report was released in the U.S., and Donald Trump canceled the trade tariffs on the European Union that were set to begin on February 1. Both of these events could have easily triggered a strengthening of the dollar if it weren't for one "but." They are absolutely irrelevant.
Traders are no longer paying attention to the growth of the U.S. economy because other key indicators reflecting industrial production and the standard of living are consistently coming in the "red zone." Therefore, the U.S. economy can grow by 10% per quarter, but this does not change anything. Cancellation of Trump's tariffs? In a couple of days, the U.S. president may announce their reinstatement. The market is already reacting not to new tariffs but rather to the inherent instability associated with the U.S. and Trump.
On the 5-minute timeframe, one buy signal was formed yesterday, but it was very difficult to identify. Throughout the European session, the pair moved sideways along the Senkou Span B line. By the end of the session, it had "unstuck" from this line, which could be used for long positions. During the American session, the 1.1750-1.1760 range was worked out, which served as the target.
The last COT report is dated January 13. The illustration above clearly shows that the net position of non-commercial traders remains "bullish." Since Trump took office as president of the United States for the second time, only the dollar has been falling. We cannot say that the decline of the American currency will continue with 100% probability, but the current developments in the world suggest this option. The red and blue lines are diverging, indicating strong superiority for the bulls.
We still do not see any fundamental factors for the strengthening of the European currency, while there are plenty of factors for the decline of the American currency. The global downward trend still persists, but what difference does it make where the price has moved in the last 17 years? For the past three years, only the European currency has been rising, and that is also a trend.
The positioning of the red and blue lines in the indicator continues to indicate the maintenance and strengthening of the "bullish" trend. During the last reporting week, the number of longs for the "Non-commercial" group decreased by 14,600, while the number of shorts increased by 15,500. Consequently, the net position decreased by 30,100 contracts over the week.
On the hourly timeframe, the EUR/USD pair continues to form a new upward trend and has returned to the 1.1750-1.1760 area. In the near future, the euro may also return to the upper line of the sideways channel at 1.1400-1.1830 and, hopefully, break out of the seven-month flat. The fundamental and macroeconomic backdrop continues to support not the dollar.
For January 23, we highlight the following trading levels—1.1234, 1.1274, 1.1362, 1.1426, 1.1542, 1.1604-1.1615, 1.1657-1.1666, 1.1750-1.1760, 1.1846-1.1857, 1.1922, 1.1971-1.1988, as well as the Senkou Span B line (1.1668) and Kijun-sen line (1.1673). The Ichimoku indicator lines may move throughout the day, which should be taken into account when determining trading signals. Do not forget to set a Stop Loss order to break even if the price moves in the correct direction by 15 pips. This will protect against potential losses if the signal turns out to be false.
On Friday, the first January Purchasing Managers' Index (PMI) assessments for the services and manufacturing sectors are scheduled for release in the Eurozone, Germany, and the U.S. As a bonus, in the U.S., the University of Michigan consumer sentiment index. These reports may have a slight impact on market sentiment. There will also be a speech by Christine Lagarde, which is currently of secondary importance.
On Friday, traders can trade from the area of 1.1750-1.1760. A rebound from this area will allow for new short positions with a target of 1.1673. A breakout above the 1.1750-1.1760 area will make longs targeting 1.1800-1.1830 relevant.
*এখানে পোস্ট করা মার্কেট বিশ্লেষণ আপনার সচেতনতা বৃদ্ধির জন্য প্রদান করা হয়, ট্রেড করার নির্দেশনা প্রদানের জন্য প্রদান করা হয় না।
ইন্সটাফরেক্স বিশ্লেষণমূলক পর্যালোচনাগুলো আপনাকে মার্কেট প্রবণতা সম্পর্কে পুরোপুরি সচেতন করবে! ইন্সটাফরেক্সের একজন গ্রাহক হওয়ায়, দক্ষ ট্রেডিং এর জন্য আপনাকে অনেক সেবা বিনামূল্যে প্রদান করা হয়।
