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Tuesday, 1 December 06:14 (GMT -05:00)



Foreign exchange market

Dollar Becomes Safe-Haven Asset Amid COVID-19 Pandemic


Even during the time when the entire global economy is paralyzed by the coronavirus pandemic, international financial markets keep functioning. Right before the start of the last trading week of March, NordFX came up with another set of consensus forecasts for forex and cryptocurrencies. Several expert opinions were taken into account during the process.
 
- EUR/USD. Amid the existing crisis, it's the U.S. Dollar that has become the key safe-haven asset for international investors. Even though its status and further strengthening is questionable, since the entire global financial system has been under pressure by the coronavirus and some other factors, apparently the future state of affairs will depend mainly in the global success in fighting COVID-19.
 
At the start of the trading week, all of the trending indicators and 85% of the oscillators on H4 and D1 are painted red. The remaining 15% are indicating an oversold market. The predictions are mixed and cannot make room for a clear picture this time. When switching to bigger-scale timeframes, the bulls are currently dominating among those participating in the consensus forecast.
 
To be more specific, around 60% of the experts think anticipate a EUR/USD rally within the next 4 weeks, with 75% of the experts leaning towards the same scenario within the next 12 weeks or so. They expect the pair to go back to the 1.1000-1.1240 range, and the closest level of resistance is 1.0800. The closest level of support is located at 1.0600. The next one is 100 points below. The key target for the bears is 1.0350. Upon breaking below that one, we may well see the common European currency reaching parity with the U.S. Dollar.
 
- GBP/USD. The British Pound has been moving along Pivot Point 1.1625 since last Wednesday, inside the 1.1450-1.1800 range. The width of 350 points may seem really big at first, but the volatility of some other majors is currently around 500-600 points.
 
65% of the experts don't expect anything special this week. They hope that the currency pair will continue moving within the same price range throughout the week. At the same time, 70-80% of the experts anticipate a move back to the 1.2725-1.3025 range within the next 2 months. Resistance levels – 1.1800, 1.1875, 1.2125, 1.2325,1.2625. Support levels -  1.1425, 1.1300, 1.1200. At the same time. we should keep in mind that the pound has dropped that low for the fist time in 230 years, which is why those levels are rather conventional.
 
- USD/JPY. The currency pair is now dependen mostly on the dollars on top of the COVID-19 pandemic. This week, 55% of the experts are predicting a trend reversal, with a move down to the 108.50-110.00 range. The percentage of bearish predictions grows up to 65% when moving to the Monthly timeframe. The next target area is between 107.00 and 107.70.
 
The bulls count on moving up to 112.25, with a possible move up by another 100 points, and maybe even 114.55, which is the high of 2018.
 
- Cryptocurrencies. In the cryptocurrency market, the index of greed and fear is at 9 points out of 100 possible. On the one hand, this indicates severe fear among international investors. On the other hand, when the indicator stays low at the same level for a relatively long time, this may signify that a rally is coming soon. Given the fact that international markets are jam-packed with dollar liquidity, and the Fed's interest rates are close to zero, the experts say that growth is a very likely scenario.
 

 

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VWAP Indicator. Usage Peculiarities.

In order to get a competitive edge over others and simplify the process of reaching the trading goals, many traders take advantage of a number of helper tools like trading strategies and indicators. Today, we are going to take a closer look at the indicator named Value-Weighted Average Price (VWAP). What are the benefits of using it and why do they recommend using it?

Publication date: 30 October 10:55 AM

Forex Consolidation. EUR/USD and GBP/USD

The stock market has been ambitious in its attempt to eliminate September's retracement and take the "blue wave" into account but the forex market has been more conservative recently in terms of restoring risky bets. However, when it comes to the stock market, each and every scenario out there eventually boils down to the smart money, which cannot but affect the international currency market. Still, there are many questions to be answered yet, which makes it really difficult to make more or less clear predictions.

Publication date: 12 October 10:58 PM

Tape Patterns Indicator

Traders often use various kinds of technical indicators these days. The list can be rather long, from popular ones like RIS, MACD etc. to less popular ones like Tape Patterns.
Publication date: 30 September 08:52 AM

Bitcoin's Getting Ready For a Strong Rally

While Bitcoin could have been more volatile over the recent weeks, the king of cryptocurrencies stoped in the range between 10K and 11K dollars per coin. Do BTC miners know in which way the coin is going in the near future?

Publication date: 30 September 04:07 AM

Bloomberg: Crypto Is Better Than Gold In 2020

According to the recent Bloomberg report, cryptocurrencies are way better than gold in terms of investments in 2020. Which is interesting, most cryptocurrencies have been growing much faster than gold this year. It's not a secret that gold is considered a safe-haven asset amid crises. Bloomberg Galaxy Crypto Index (BGCI) has gained 66% this year,while gold has gained only 20% over the same period.
Publication date: 29 September 01:07 PM

Gold Prices Drop Below $1860/oz, Seeing A Major Downtrend

On Thursday morning, the spot price of gold dropped roughly down to $1850/oz withing the scope of a strong downtrend started earlier this week, with a strong gap from the consolidation level. The key factors contributing to the price drop was the sudden strengthening of the U.S. Dollar.

Publication date: 25 September 07:39 AM

Texas Authorities Spot New Crypto Scams

The TSSB, which is the financial regulator of Texas, is reported to have revealed a couple of potential scams in the international market of cryptocurrencies. These are named Forex Birds and PEK Universe. From now on, both of these projects cannot work in Texas anymore. These projects were banned on September, 3rd.

Publication date: 18 September 01:07 PM

Cryptocurrencies On Sale: ChainLink and TRON Go Down, Bitcoin Is Stable

Wednesday's session is bringing a retracement in the market of digital assets, which is affecting the entire crypto market cap. Chainlink (LINK), TRON (TRX), and Tezos (XTZ) have been the biggest losers over the last 24 hours. They lost 9,7%, 8,7%, and 5,5% respectively. Bitcoins remains stable and one of the very few tokens among the top 20 that are still showing some gains, though modest ones.

Publication date: 16 September 12:04 PM

What's Next For Bitcoin?

Some analysts argue the future of Bitcoin, also known as the digital gold. Last week, the Winkelvoss brothers stated that the BTC price may skyrocket all the way up to 500.000 dollars per coin in the near future. This opinion is shared by Bloomberg analysts. But on the other hand, Bitcoin may see the opposite scenario, which is a major crash to make it as cheap as dirt.

Publication date: 10 September 03:00 AM

How To Get Ready For Bitcoin Boom 2020?

Cryptocurrencies keep on growing in value. If you are going to buy your first coins, this is what you should do first.
Publication date: 30 August 11:27 AM