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The best broker in Asia www.instaforex.com Daily analysts mail subscription Indicator analysis. Daily review for the EUR/USD currency pair on 20/01/2021 2021-01-20 Trend analysis (Fig. 1). Today, the market will try to continue moving up from the level of 1.2127 (the close of yesterday's daily candle) to reach the resistance level of 1.2176 (the blue bold line). Upon reaching this level, continue to work up with the target of 1.2234 which is the historical resistance level (blue dotted line). Figure 1 (daily chart). Comprehensive Analysis: Indicator Analysis – up Fibonacci Levels – up Volumes – up Candle Analysis – up Trend Analysis – up Bollinger Bands – up Weekly chart – up General Conclusion: Today, the price may continue to move up to reach the resistance level of 1.2176 (blue bold line). Upon reaching this level, continue to work up with the target of 1.2234 which is the historical resistance level (blue dotted line). Alternative scenario: After moving up and reaching the resistance level of 1.2176 (blue bold line), the market will work down with the target of 1.2063 which is a pullback level of 38.2% (red dotted line). Indicator analysis. Daily review for the GBP/USD currency pair on January 20, 2021 2021-01-20 Trend analysis (Fig. 1). Today, the market from the level of 1.3629 (closing of yesterday's daily candle) will try to continue moving up in order to reach the upper fractal of 1.3708 (red dotted line) - the daily candle from 01/14/2021. In case of testing this level, further upward movement is possible with the target of 1.3811 - the upper limit of the Bollinger Line indicator (black dotted line). Figure 1 (Daily Chart). Comprehensive analysis: Indicator analysis - up Fibonacci levels - up Volumes - up Candlestick analysis - up Trend analysis - up Bollinger bands - up Weekly chart - up General conclusion: Today, the price from the level of 1.3629 (closing of yesterday's daily candle) will try to continue moving up in order to reach the upper fractal of 1.3708 (red dotted line) - the daily candle from 1/14/2021. In case of testing this level, further upward movement is possible with the target of 1.3811 - the upper limit of the Bollinger Line indicator (black dotted line). Unlikely scenario: the price from the level of 1.3629 (closing of yesterday's daily candle) will try to continue moving up in order to reach the upper fractal of 1.3708 (red dotted line) - the daily candle from 1/14/2021. In case of testing this level, further downward movement is possible with the target of 1.3599 - 13 average EMA (yellow thin line). Simplified wave analysis and forecast for EUR/USD, AUD/USD, GBP/JPY on January 20 2021-01-20 EUR/USD Analysis: The upward wave that has dominated the euro market since March of last year has an impulse-like structure. The wave level of the movement exceeded the daily scale. The last section of the main wave counts down from November 4. In the structure, the counter correction section, in the form of a stretched plane, is close to completion. The upward movement of the last two days does not exceed the level of the pullback. Forecast: In the next trading session, the upward movement rate is expected to end. In the second half of the day, you can expect a reversal and a second decline to the support zone. When the exchange rate changes, an increase in volatility and a puncture of the upper limit of resistance are not excluded. Potential reversal zones Resistance: - 1.2160/1.2190 Support: - 1.2080/1.2050 Recommendations: There are no conditions for buying the euro today. In the area of the calculated resistance, it is recommended to track the signals for selling the instrument. AUD/USD Analysis: As a result of the rise in the Australian dollar, the price reached the lower limit of the strong resistance zone of a large TF. In the last 2 weeks, the quotes have been lying in a sideways drift along the lower border, forming an intermediate correction. Forecast: Today, the flat mood of the movement is expected to continue. A general upward vector is more likely. In the European session, a short-term decline in the support area is not excluded. Potential reversal zones Resistance: - 0.7750/0.7780 Support: - 0.7690/0.7660 Recommendations: Trading on the pair's market today is possible within the intraday with a reduced lot. Purchases of the instrument are more promising. GBP/JPY Analysis: The market for the pound'/yen currency pair is dominated by an upward trend. An incomplete wave of small scale originates on December 21. In the structure of the wave, the middle part (B) has ended. Two days ago, an ascending section with a reversal potential started. This may be the beginning of the final part (C). Forecast: In the first half of the day, the price is more likely to move sideways. A short-term decline to the support zone is not excluded. By the end of the day, it is expected to increase activity and increase the rate to the resistance zone. Potential reversal zones Resistance: - 142.20/142.50 Support: - 141.20/140.90 Recommendations: There are no conditions for selling the pair on the pair's market. It is recommended to monitor all emerging signals for the purchase of the instrument. Explanation: In the simplified wave analysis (UVA), waves consist of 3 parts (A-B-C). The last incomplete wave is analyzed. The solid background of the arrows shows the formed structure, and the dotted line shows the expected movements. Attention: The wave algorithm does not take into account the duration of the instrument movements in time! EUR/USD. Traders unsurprisingly ignored Yellen's speech 2021-01-20 The reaction of the US dollar to Janet Yellen's speech in the US Congress is quite calm. Her rhetoric was expected (the text of her speech was known in advance), with the exception of a few remarks, which will be discussed below. In general, the market made good use of these voiced theses in advance, while Yellen did not provide any reasons for volatility to surge. The Former Fed Chairman avoided specifics, and the format of the meeting itself did not involve discussing any specific issues. She presented herself to the senators in the role of the future finance minister, so she talked about key issues in general terms. The reaction of the currency market was naturally matching: the dollar index remained above the 90-point mark, and the configurations of the major dollar pairs almost did not change. Before Tuesday ended, the US dollar slightly plummeted throughout the market, but it is not due to Yellen's pressure, as she only did a small role here. But even if it didn't give impulse to the further growth of the USD (contrary to the expectations of some experts), it still didn't push it down with its rhetoric. In my opinion, the issue of the US dollar is different: dollar bulls cannot find a pivot point to develop the trend further. The $ 1.9 trillion "American Rescue Plan" unveiled last week is still pending to be considered by both houses of Congress. And although the Democrats control not only the House of Representatives, but also the Senate, it is still unlikely to talk about the adoption of this package as a done deal, since the Democratic Party has a low advantage in the Upper House. The balance of power there was divided into 50/50 – US Vice President Kamala Harris will get the decisive vote, who is a representative of the Democratic Party. In this case, the absolute and unconditional support of the Democratic senators is necessary. However, it is unclear whether the Democrats will show such a unification of views. It is also noteworthy that the dollar lost another support in the form of growth in Treasury yields. In particular, the yield on 10-year Treasuries peaked on January 11 (1.144%). The last time the profitability was recorded at such a high level was almost a year ago (February 2020). Unfortunately, it was not possible to develop a further rally, which resulted in a decline. If the downward trend continues, the indicator will return to the psychologically important 1% level this week. However, even if we look back at the dynamics of the past few days, we can come to a clear conclusion: the yield of treasuries is declining, dragging the US currency with it. At the same time, the US stock market continues to show signs of recovery after the well-known collapse in early January. In particular, the key indices such as Dow Jones Industrial Average, S&P 500 and Nasdaq Composite, increased again yesterday, reflecting investors' risk appetite. There is also another factor that plays a role here: the season of corporate reporting is approaching. However, it should still be noted that the safe dollar, which is in high demand during periods of uncertainty and surges in anti-risk sentiment in the market, has been left out. In the meantime, the opposite process is observed: traders are showing more interest in risky assets, while the demand for the US currency has noticeably fallen. The US dollar index, which is slowly sliding towards the base of the 90th figure, confirmed this. In turn, Janet Yellen could not fulfill the role of "infodriver'', but there are several that can be distinguished among her voiced rhetoric. First, she said that she would not seek to devalue the US dollar: in her opinion, the dollar should be determined by the market. The future finance minister also spoke out against the fact that other countries manipulated the exchange rate (devaluing it) in order to gain a certain competitive advantage. Yellen assured the senators that she would oppose such practices, together with President Biden. However, the market already knew the speech in advance, since American journalists published its content the day before the speech. Nevertheless, there were some slight surprises: Janet Yellen said that if her appointment is approved, she will review the US sanctions policy. According to her, she will instruct her deputy to conduct a comprehensive review of this issue so that the restrictions imposed are used for strategic purposes and appropriately. At the same time, she called China "an important strategic competitor" and to counter which, it is necessary to increase the competitiveness of the American economy. At the moment, it is difficult to draw any broad conclusions from these words, but at the same time, it can be stated that Yellen takes (so far) a softer position towards China, compared to Steven Mnuchin and even more so, compared to Donald Trump. In view of the dollar's weakened positions, we can consider long positions in the EUR/USD pair. It is quite risky to buy the pair until yesterday, since Yellen could strengthen the bearish mood. However, the dollar bulls did not receive a corresponding trump card. The euro, in turn, received support from macroeconomic reports: the December ZEW indices came out much better than forecasted (both the German and the European one). All this allows us to consider long positions to the first resistance level of 1.2205 (midline of the Bollinger Bands, which coincides with the Kijun-sen line on the daily time frame). If buyers of EUR/USD manage to break through this level, the price will be initially between the middle and upper lines of the Bollinger Bands indicator on D1. Secondly, the Ichimoku indicator will form a bullish signal "parade of lines", opening the path to the upper line of the Bollinger Bands, coinciding with the level of 1.2330. EUR/USD: plan for the European session on January 20. COT reports (analysis of deals). Bracing for inflation report and Biden's inauguration. Bulls hope to update 1.2174 2021-01-20 To open long positions on EUR/USD, you need: In yesterday's forecast, I mentioned that good data on business sentiment in Germany and the eurozone led to a breakout and consolidation above the resistance of 1.2102, and being able to test this level from top to bottom, which I highlighted on the chart, resulted in creating an excellent entry point in long positions for the purpose of rising towards the resistance area of 1.2142. This level was updated in the afternoon, and forming a false breakout there led to an excellent entry point into short positions, counting on a downward correction of 20-25 points, which happened. The technical picture has changed at the moment and focus is on the 1.2130 level, on which the pair's succeeding direction will depend. We are expecting the eurozone inflation report in the first half of the day, and if it turns out to be better than the forecasts of economists, then we can expect the euro to grow further. As long as trading is carried out above the 1.2130 area, the demand for the euro will also be at a fairly high level. In case EUR/USD falls, forming a false breakout in the 1.2130 area will be another proof of the presence of large buyers in the market. An equally important task for the bulls is to update resistance at 1.2174, where it will be possible to observe the next profit taking. A breakthrough of this range will only be possible in the afternoon, when Joe Biden is inaugurated. Testing the 1.2174 area from top to bottom creates a good signal to enter long positions in hopes of reaching the high of 1.2220, where I recommend taking profits. If the bulls are unable to do anything in the support area of 1.2130 in the first half of the day, it is best not to rush to buy, but wait for a downward correction towards a more powerful area of 1.2089, from where you can open long positions immediately on a rebound, counting on an upward movement of 20-25 points within the day. A breakout of this area will create a new bear market. To open short positions on EUR/USD, you need: Euro sellers will focus on being able to settle below the 1.2130 support. Weak reports on the eurozone economy and inflation will increase the pressure on the euro. A breakout and test of this level from the bottom up will create a new signal to open short positions and open a direct road to the 1.2089 level, where the moving averages pass, playing on the side of the bulls. The pair's succeeding growth depends on this range, so a breakout will result in removing a number of stop orders and to a larger movement of EUR/USD down to the area of 1.2055, where I recommend taking profits. In case the euro grows further, it is best not to rush to sell, but wait for an update of resistance at 1.2174, where forming a false breakout will be a signal to open short positions. I recommend selling EUR/USD immediately on a rebound from the 1.2220 level, counting on a downward correction of 20-30 points within the day. Much will depend on what Joe Biden says after his inauguration, which could significantly weigh on the US dollar. The Commitment of Traders (COT) report for January 12 recorded a sharp increase in long positions and a reduction in short ones. Buyers of risky assets continue to believe in a bullish trend, especially after such a large decline in the euro earlier this year, which made it possible for new large players to enter the market. Vaccination against the first strain of coronavirus continues in Europe, leading to new buyers for the euro. The likely approval of the next $1.9 trillion bailout plan for the US economy is likely to further erode the dollar. A limiting factor for the euro's growth is the risk of extending quarantine measures in February this year, both in Germany and in a number of other European countries. Thus, long non-commercial positions increased from 224,832 to 228,757, while short non-commercial positions fell from 81,841 to 72,867. Due to the sharp drop in short positions, the total non-commercial net position increased from 143,902 to 155,890 a week earlier. Indicator signals: Moving averages Trading is carried out above 30 and 50 moving averages, which indicates further growth for the euro. Note: The period and prices of moving averages are considered by the author on the H1 hourly chart and differs from the general definition of the classic daily moving averages on the daily D1 chart. Bollinger Bands A breakout of the upper border of the indicator in the 1.2145 area will lead to a new wave of euro growth. A break of the middle border in the 1.2130 area will increase the pressure on the pair. Description of indicators Moving average (moving average, determines the current trend by smoothing out volatility and noise). Period 50. It is marked in yellow on the chart. Moving average (moving average, determines the current trend by smoothing out volatility and noise). Period 30. It is marked in green on the chart. MACD indicator (Moving Average Convergence/Divergence — convergence/divergence of moving averages) Quick EMA period 12. Slow EMA period to 26. SMA period 9 Bollinger Bands (Bollinger Bands). Period 20 Non-commercial speculative traders, such as individual traders, hedge funds, and large institutions that use the futures market for speculative purposes and meet certain requirements. Long non-commercial positions represent the total long open position of non-commercial traders. Short non-commercial positions represent the total short open position of non-commercial traders. Total non-commercial net position is the difference between short and long positions of non-commercial traders. GBP/USD: plan for the European session on January 20. COT reports (analysis of deals). Bulls pushed pound to resistance at 1.3658, now aiming for a breakout 2021-01-20 To open long positions on GBP/USD, you need: Even in the first half of the day, the bulls actively defended the 1.3611 area several times, but, unfortunately, we could not wait for a false breakout there, as well as for a correct entry point to short positions. Then a signal to buy the pound was created, which I drew attention to in my forecast for the US session. I marked the long entry point on the 5 minute chart. However, in fairness, it was quite difficult to sit out this signal, since the pair fell below the 1.3611 level many times and a downward correction could appear at any moment. Whoever left this signal did the right thing, as the risk of the pound's decline was quite high. Those who still sat there, managed to wait for an update of the target value in the 1.3658 area and earn about 45 points of profit. Buyers of the pound are currently focused on resistance at 1.3658, as the pair's succeeding direction depends on it. Only a breakout and a test of this area from top to bottom, similar to the buy deal, which I mentioned above, will make it possible for us to expect the pound to rise to an annual high of 1.3701, where I recommend taking profits. A good UK inflation report, which may turn out to be better than economists' forecasts, will help in implementing this scenario. The breakout of 1.3701 will hit a number of buyers' stop orders and lead to a new strong bullish momentum, with an exit to the highs of 1.3750 and 1.3803, where I recommend taking profits. If we observe a downward correction of the pair in the first half of the day, then it is best not to rush to buy, but wait for an update of support at 1.3611 and open long positions when a false breakout is formed. Moving averages also pass there, playing on the side of the bulls. In the absence of activity at this level, or with very weak inflationary indicators, I recommend postponing long positions until the low of 1.3571 has been tested, where you can open longs immediately on a rebound, counting on an upward correction of 25-30 points within the day. To open short positions on GBP/USD, you need: Bears will defend resistance at 1.3658 in every possible way, since the pair's succeeding direction depends on it. Forming a false breakout there in the first half of the day will be a signal to open short positions for the purpose of a downward correction to the support area of 1.3611, surpassing it will certainly lead to a sharp sale of the pound towards a low of 1.3571, where I recommend taking profits. Moving averages pass at the 1.3611 level, so the bears need to try very hard. A weak UK inflation report will increase the pressure on the pound. If the bears ignore resistance at 1.3658, then it would be best to postpone short positions until this year's high at 1.3701 has been updated, from which one can expect a downward correction of 30-40 points within the day. The Commitment of Traders (COT) report for January 12 recorded an increase in both long and short positions, but there were more of the first ones, which caused the delta to increase. Long non-commercial positions increased from 35,526 to 47,935. At the same time, short non-commercial positions increased from 31,861 to 34,993. We can see that sellers turned out to be much less than new buyers. As a result, the non-commercial net position rose to 12,942 against 3,665 a week earlier. All this suggests that traders continue to bet on the strengthening of the pound, even in the face of the new Covid-19 strain, for which there is no vaccine yet. The demand for the pound is limited by quarantine measures in the UK, which will sooner or later be canceled after the infection situation stabilizes. The Bank of England's recent refusal to introduce negative interest rates and the pound's decline earlier this year have brought many large medium-term buyers back into the market, expecting a continuation of the bull market this spring. Indicator signals: Moving averages Trading is carried out above 30 and 50 moving averages, which indicates further growth for the pair. Note: The period and prices of moving averages are considered by the author on the H1 hourly chart and differs from the general definition of the classic daily moving averages on the daily D1 chart. Bollinger Bands A breakout of the upper border of the indicator around 1.3658 will lead to a new wave of growth. In the event of a decline, support will be provided by the lower border of the indicator at 1.3600. Description of indicators Moving average (moving average, determines the current trend by smoothing out volatility and noise). Period 50. It is marked in yellow on the chart. Moving average (moving average, determines the current trend by smoothing out volatility and noise). Period 30. It is marked in green on the chart. MACD indicator (Moving Average Convergence/Divergence — convergence/divergence of moving averages) Quick EMA period 12. Slow EMA period to 26. SMA period 9 Bollinger Bands (Bollinger Bands). Period 20 Non-commercial speculative traders, such as individual traders, hedge funds, and large institutions that use the futures market for speculative purposes and meet certain requirements. Long non-commercial positions represent the total long open position of non-commercial traders. Non-commercial short positions represent the total short open position of non-commercial traders. Total non-commercial net position is the difference between short and long positions of non-commercial traders. Technical Analysis of EUR/USD for January 20, 2021 2021-01-20 Technical Market Outlook: The EUR/USD pair has broken through the overbalance level located at 1.2141 and hit the key short-term supply zone at 1.2154. In order to move even higher, the bulls must continue to bounce towards the next levels: 1.2163 and 1.2177. If those level are violated, then the supply zone is gone and the next target is located at the level of 1.2212. On the other hand, any failure here will reverse the bounce and the market will continue the down move towards 1.2060 again. Weekly Pivot Points: WR3 - 1.2304 WR2 - 1.2263 WR1 - 1.2147 Weekly Pivot - 1.2111 WS1 - 1.2005 WS2 - 1.1985 WS3 - 1.1848 Trading Recommendations: Since the middle of March 2020 the main trend is on EUR/USD pair has been up. This means any local corrections should be used to buy the dips until the key technical support seen at the level of 1.1609 is broken. The key long-term technical resistance is seen at the level of 1.2555. The market made the Falling Wedge trend reversal pattern around the levels of 1.2200 - 1.2300 and now the corrective cycle might have started. Any violation of the level of 1.2154 supports the trend change/corrective cycle scenario. Trading recommendations for starters on GBP/USD and EUR/USD for January 20, 2021 2021-01-20 The position of the US dollar continued to weaken yesterday against its main competitors, but there was a low activity in the market. It was hard to analyze something in the economic calendar, since it is almost empty. Important statistics from Europe, UK and US were not published and thus, the market followed the last set movement. What happened on the trading chart? The EUR/USD pair went into a pullback stage after finding a pivot point in the form of December 9 local high (1.2059). As a result, the quote returned to the previously reached range of 1.2130/1.2170. The recovery phase of the euro relative to the corrective movement 1.2349 ---> 1.2053 is shown in the market, but it has an insignificant scale. Therefore, a decline is likely, where the range of 1.2130/1.2170 may act as a resistance. The GBP/USD pair is moving in an inertial upward trend from the pivot point of 1.3519, from which market participants are trying to re approach the area of the conditional high of the mid-term trend. In the market, this movement is considered as a recovery relative to the decline of 1.3708 to 1.3519. Trading recommendations on EUR/USD and GBP/USD for January 20, 2021 The data on UK inflation will be published today. Its level is expected to rise from 0.3% to 0.6%, which may positively affect the pound sterling's exchange rate. UK Inflation - 7:00 Universal time Next, traders will wait for Europe's inflation to be released, where its level is forecasted to remain unchanged (0.3%). In other words, deflation in Europe has been dragging for five consecutive months. It is obvious that this fact does not add optimism, which could lead to the euro's weakening. Europe Inflation - 10:00 Universal time If we analyze the current trading chart of EUR/USD, it can be seen that the quote is within the range of 1.2130/1.2170, where there is a low activity and the upper timeframe has not yet been touched. If the quote fails to consolidate above the level of 1.3170 in the H4 timeframe, sellers will have a chance to decline again in the direction of 1.2060. The range of 1.2130/1.2170 will serve as a resistance in the market. As for the current trading chart of the GBP/USD, it can be noticed that the inertial increase still takes place in the market, where it is possible to touch the resistance area of the medium-term uptrend of 1.3690/1.3710. In the case of a repetition of the natural basis of the past, the resistance area can lead to a reduction in the volume of long positions (buy positions), which can result in another price rebound. An alternative scenario of the market development will be considered if the price stays above 1.3710 for a four-hour period, which may lead to a resumption of the mid-term trend. Technical Analysis of GBP/USD for January 20, 2021 2021-01-20 Technical Market Outlook: The GBP/USD pair has broken above the local technical resistance seen at the level of 1.3624 (now intraday support) and is trading close to the level of 1.3667, which is a part of key short-term supply zone. Only a sustained breakout above this zone will trigger another wave up, so the bears must defend the range located between the levels of 1.3708 - 1.3667. The strong and positive momentum supports the short-term bullish outlook. Weekly Pivot Points: WR3 - 1.3982 WR2 - 1.3839 WR1 - 1.3718 Weekly Pivot - 1.3586 WS1 - 1.3464 WS2 - 1.3322 WS3 - 1.3204 Trading Recommendations: The GBP/USD pair keeps developing the up trend and the trigger for this trend was the breakout above the level or 1.3518 on the weekly time frame chart. The recent top was made at the level of 1.3702. All the local corrections should be used to open a buy orders as long as the level of 1.2674 is not broken. The long-term target for bulls is seen at the level of 1.4370. Trading plan for EUR/USD on January 20. Reversal in the euro and possible retreat of COVID-19. 2021-01-20 COVID-19 incidence declined again yesterday (both global and in the US), which suggests that the pandemic could be retreating already. The decrease was very noticeable relative to the all-time highs recorded during the second pandemic wave. In terms of vaccination, the pace is still very slow. Its effects are expected to appear only by February. EUR / USD: The decline of the euro has halted. There is a high chance that the quotes will turn up soon. Open short positions from 1.2050. Analytics and trading signals for beginners. How to trade EUR/USD on January 20? Plan for opening and closing deals on Wednesday 2021-01-20 Hourly chart of the EUR/USD pair The EUR/USD pair initially tried to start a downward correction last night, which was enough for the MACD indicator to turn down, but after that it resumed its upward movement and passed another 30 points. These movements were extremely difficult and even impossible to work out. First, they were nocturnal. Secondly, not a single signal was generated last night. Thus, in comparison with yesterday evening, the technical picture has not changed much. Novice traders are still encouraged to wait for the MACD indicator to discharge and create a new buy signal within a new upward trend, which appeared after breaking the upper border of the descending channel. In terms of foundation, Wednesday is an extremely important day. Today the long-awaited inauguration of Joe Biden will take place, and Donald Trump will leave his post as president of the United States. In fact, there is nothing special about the inauguration procedure. Joe Biden only has to take the oath of office, make a speech, and perform a few other extremely symbolic actions. Some fear that the "attack on the Capitol" will be repeated on this day. Although Trump has finally given up in his attempts to reverse the election results, do not forget that he has not left big politics, and the US Congress will still consider impeachment, which can be announced after Trump leaves office. Thus, there may be riots today in Washington, that is if Trump's supporters decide to act. But, this may not be the case. In the first case, the euro/dollar pair may be slightly tossed from side to side, in the second – the calm movement will continue. The European Union will also publish its inflation report today, which is unlikely to have any impact on the pair's movement. It is expected that inflation will be -0.3% in annual terms, that is, it will remain unchanged compared to the previous period. Therefore, there will be nothing to react to unless the consumer price index sharply accelerates or slows down even more. No more macroeconomic and political events planned for today. Possible scenarios on January 20: 1) Long positions became convenient since the price settled above the descending channel. However, the MACD indicator was already turning to the downside, and a new strong buy signal had not yet appeared. Thus, we advise you to wait for a downward correction, afterwards you can monitor the appearance of a new buy signal with targets at resistance levels 1.2157 and 1.2187. 2) Trading for a fall has been canceled. Thus, even if quotes begin to sharply fall now, we do not recommend working it out. Take note that the current fundamental background practically does not participate in pricing, therefore the only analysis tool is the technical one. Therefore, you need to trade strictly according to the system. On the chart: Support and Resistance Levels are the Levels that serve as targets when buying or selling the pair. You can place Take Profit near these levels. Red lines are the channels or trend lines that display the current trend and show in which direction it is better to trade now. Up/down arrows show where you should sell or buy after reaching or breaking through particular levels. The MACD indicator (14,22,3) consists of a histogram and a signal line. When they cross, this is a signal to enter the market. It is recommended to use this indicator in combination with trend lines (channels and trend lines). Important announcements and economic reports that you can always find in the news calendar can seriously influence the trajectory of a currency pair. Therefore, at the time of their release, we recommended trading as carefully as possible or exit the market in order to avoid a sharp price reversal. Analytics and trading signals for beginners. How to trade GBP/USD on January 20? Plan for opening and closing deals on Wednesday 2021-01-20 Hourly chart of the GBP/USD pair The upward movement continued for the GBP/USD pair last night. A little earlier, the pair's quotes settled above the descending channel, so the downward trend was once again canceled, and the upward one was formed. Therefore, at this time, novice traders are advised to consider trading up again. Beginners could open buy orders upon a signal to overcome the descending channel (circled in red in the chart). Moreover, from the moment it was created, the upward movement was not interrupted for a second, and the MACD indicator made miserable attempts to turn to the downside. Therefore, all this time it was possible to maintain long positions. At this point, the profit would be around 40 points. Moreover, the pound/dollar pair seems to be aiming for the 1.3700 level, which had already been reached three times earlier. Therefore, in some way now you can even try to move away from the usual scheme of opening/closing positions and Take Profit at the 1.3700 level. Of course, such a transaction must be constantly monitored in order to avoid unnecessary losses. But there is a very high probability of going to 1.3700. The UK will publish its inflation report today, and it will be released early in the morning, in the coming hours. The UK consumer price index is expected to accelerate from 0.3% y/y to 0.5%-0.6% y/y. If the forecast comes true, the pound may receive additional support from the market. Other reports from the UK are less significant. As we have said many times, the foundation and macroeconomics do not have too much influence on the market right now. Therefore, technical factors are more important. We advise you to keep a close eye on them. Especially since there will be around a 12-hour gap between the release of inflation report and the inauguration of Joe Biden. That is, at this time, nothing will affect the pair's movement. We would also like to draw your attention to the fact that the pair cannot constantly work out and bounce off the 1.3700 level. Sooner or later, this level will be overcome. And surpassing this level can indicate that the upward movement will continue. Although, from a fundamental point of view, this option is absolutely illogical and not obvious. Possible scenarios on January 20: 1) Buy orders became relevant when the pair settled above the descending channel. Thus, you can still buy while aiming for 1.3673 and 1.3700. However, in this case, you need to take precautions, since the price has already gone up about 130 points. Therefore, set Stop Loss. You are advised to open new buy orders based on a new buy signal from MACD, which must be discharged beforehand. 2) Selling has lost its relevance, as this time the pair managed to move away from the 2.5-year highs by only 185 points. Thus, in order to open short positions, you now need to wait for a rebound from the 1.3700 level or another signal of the end of the upward trend. This can take several days. On the chart: Support and Resistance Levels are the Levels that serve as targets when buying or selling the pair. You can place Take Profit near these levels. Red lines are the channels or trend lines that display the current trend and show in which direction it is better to trade now. Up/down arrows show where you should sell or buy after reaching or breaking through particular levels. The MACD indicator consists of a histogram and a signal line. When they cross, this is a signal to enter the market. It is recommended to use this indicator in combination with trend lines (channels and trend lines). Important announcements and economic reports that you can always find in the news calendar can seriously influence the trajectory of a currency pair. Therefore, at the time of their release, we recommended trading as carefully as possible or exit the market in order to avoid a sharp price reversal. Beginners on Forex should remember that not every single trade has to be profitable. The development of a clear strategy and money management are the key to success in trading over a long period of time. Elliott wave analysis of EUR/JPY for January 20, 2021 2021-01-20 EUR/JPY has traded sideways since the minor peak at 126.21. We do expect a bit more downside to the 125.40 - 125.50 support-area. It is possible that we only see a sub-normal correction to 125.75 before trading higher through minor resistance at 126.21 for a continuation to 127.46 and higher to 129.06. Upon a break above 127.46, a larger S/H/S bottom will be triggered with a target near 132.45. Key-support remains the 125.06 low. R3: 126.72 R2: 126.54 R1: 126.21 Pivot: 125.96 S1: 125.75 S2: 125.50 S3: 125.40 Trading recommendation: We are long EUR from 125.75 with our stop placed at 125.05 Forex forecast 01/20/2021 on GBP/USD, EUR/GBP and USD/CAD from Sebastian Seliga 2021-01-20 Let's take a look at the GBP/USD, EUR/GBP and USD/CAD technical analysis before the key economic data are released today. Elliott wave analysis of GBP/JPY for January 20, 2021 2021-01-20 GBP/JPY continues to push higher. It will likely meet a ceiling near 141.97 for a correction towards 141.29 and ideally closer to 141.06 before taking off again towards 142.72 and closer to the next major target at 147.96. Key-support is seen at 140.33. R3: 142.26 R2: 142.14 R1: 141.97 Pivot: 141.71 S1: 141.50 S2: 141.29 S3: 141.06 Trading recommendation: We are long GBP from 140.71 with our stop placed at 140.30 Make money Deposit funds Author's today's articles: Sergey Belyaev Born December 1, 1955. In 1993 graduated from Air Force Engineering Academy. In September 1999 started to study Forex markets. Since 2002 has been reading lectures on the technical analysis . Is fond of research work. Created a personal trading system based on the indicator analysis. Authored the book on technical analysis "Calculation of the next candlestick". At present the next book is being prepared for publishing "Indicator Analysis of Forex Market. Trading System Encyclopedia". Has created eleven courses on indicator analysis. Uses classical indicators. Works as a public lecturer. Held numerous seminars and workshops presented at international exhibitions of financial markets industry. Is known as one of the best specialists in the Russian Federation researching indicator analysis. Vyacheslav Ognev Vyacheslav was born on August 24, 1971. In 1993, he graduated from Urals State University of Economics in the Russian city of Ekaterinburg holding a degree in Commerce and Economics of Trade. In 2007, he started concentrating on the Russian stock market, trading stocks on the RTS Stock Exchange and futures contracts on FORTS. Since 2008 he has been engaged in analyzing Forex market and trading currencies. He is an author of a simplified wave analysis method. He has also developed a trading strategy. At present, Vyacheslav is a co-author of training materials on two web portals dedicated to Forex trading education. Interests: fitness, F1 "Experience is the best of schoolmasters, only the school fees are heavy." - Thomas Carlyle Irina Manzenko Irina Manzenko Maxim Magdalinin In 2005 graduated from the Academy of the Ministry of Internal Affairs of the Republic of Belarus, law faculty. Worked as a lawyer for three years in one of the biggest country's company. Besides the trading, he develops trading systems, writes articles and analytical reviews. Works at stock and commodity markets explorations. On Forex since 2006. Sebastian Seliga Sebastian Seliga was born on 13th Oсtober 1978 in Poland. He graduated in 2005 with MA in Social Psychology. He has worked for leading financial companies in Poland where he actively traded on NYSE, AMEX and NASDAQ exchanges. Sebastian started Forex trading in 2009 and mastered Elliott Wave Principle approach to the markets by developing and implementing his own trading strategies of Forex analysis.  Since 2012, he has been writing analitical reviews based on EWP for blogs and for Forex websites and forums. He has developed several on-line projects devoted to Forex trading and investments. He is interested in slow cooking, stand-up comedy, guitar playing, reading and swimming. "Every battle is won before it is ever fought", Sun Tzu Vladislav Tukhmenev Vladislav graduated from Moscow State University of Technologiy and Management. He entered the forex market in early 2008. Vladislav is a professional trader, analyst, and manager. He applies a whole gamut of analysis – technical, graphical, mathematical, fundamental, and candlestick analysis. Moreover, he forecasts the market movements using his own methods based on the chaos theory. Vladimir took part in development of trading systems devoted to fractal analysis. In his free time, Vladimir blogs about exchange markets. Hobbies: active leisure, sporting shooting, cars, design, and marketing. "I do not dream only of becoming the best in my field. I also dream about those who I will take with me along the way up." Mihail Makarov - Stanislav Polyanskiy Graduated from Odessa State Economic University. On Forex since 2006. Writes analytical reviews about international financial markets for more than 3 years. Worked as a currency analyst in different finance companies for a long time including the biggest companies of Russia and Ukraine. Torben Melsted Born in November 1962. Graduated from CBS, got Diploma in Finance. Began trading on Forex in 1986 and since that time held various positions such as advising clients, hedging client flows on FX and commodity markets. Also worked for major corporations as Financial Risk Manager. Uses Elliott wave analysis in combination with classic technical analysis, and has been using a Calmar Ratio of 5.0 for over 3 years. Has his own blog, where he uses Elliott wave and technical analysis on all financial markets. Subscription's options management Theme's: Fundamental analysis, Fractal analysis, Wave analysis, Technical analysis, Stock Markets Author's : A Zotova, Aleksey Almazov, Alexander Dneprovskiy, Alexandr Davidov, Alexandros Yfantis, Andrey Shevchenko, Arief Makmur, Dean Leo, Evgeny Klimov, Fedor Pavlov, Grigory Sokolov, I Belozerov, Igor Kovalyov, Irina Manzenko, Ivan Aleksandrov, l Kolesnikova, Maxim Magdalinin, Mihail Makarov, Mohamed Samy, Mourad El Keddani, Oleg Khmelevskiy, Oscar Ton, Pavel Vlasov, Petar Jacimovic, R Agafonov, S Doronina, Sebastian Seliga, Sergey Belyaev, Sergey Mityukov, Stanislav Polyanskiy, T Strelkova, Torben Melsted, V Isakov, Viktor Vasilevsky, Vladislav Tukhmenev, Vyacheslav Ognev, Yuriy Zaycev, Zhizhko Nadezhda Edit data of subscription settings Unsubscribe from the mailing list Sincerely, Analysts Service If you have any questions, you can make a phone call using one of the InstaForex Toll free numbers right now: 1 866 8000 719 0 8000 51 88 99 0 800 898 548 1 800 882 528 001 803 017 910 0 800 500 329 822 140 799 8 800 080 5553 Other countries +7 (499) 7042343, +7 (812) 4580351 E-mail: support@instaforex.com InstaForex Group is an international brand providing online trading services to the clients all over the world. 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