Best Trade Ideas for April
I know we've had quite an amazing run these past few month, with over 78% accuracy in our trade ideas and sentiments, and thousands of pips in profits monthly...
2020 year-end currency trends review
Information is not investment advice
EUR/USD: decade’s end
The year 2020 started with the EUR/USD touching the bottom of 1.08 as it was making the way for the downtrend through the entire 2019. After a fierce shock easily visible as heavy fluctuation in February-March, the pair reversed and started actively marching upwards. Eventually, the EUR appreciated against the USD as high as 1.20 by December, coming closer even to 1.22. By climbing this high, EUR/USD recovered all the losses of 2019 and came to the heights of January-April 2018.
On the monthly chart, breaking through 1.22 would challenge the decade-long downtrend EUR/USD has been in so far. However, technically, only beating 1.24 would confirm the possibility of this strategic reversal – that’s what may happen in 2021 if bulls keep pressing the EUR against the USD. Fundamentally, there needs to be a persistent weakness of the USD to allow that. Are there factors for the USD’s weakness? There are. The US Fed keeping the interest rates low and possibly maintaining quantitative easing line to keep the US economy marching, the general setting of the American global economic presence gradually giving room to the alternative global powers, and other tectonic movements. Will they be enough to push EUR/USD to 1.24? Very possibly.
EUR/GBP: symmetrical upside
This currency pair has spent most of the year 2020 oscillating between 0.89 and 0.91. There were a couple of spikes up to 0.93 but that was more of an exception – and every such spike was followed by a correction down to the same 0.89.
On a monthly chart, coming to the heights of 0.90 roughly completes the five-year-long recovery of EUR/GBP symmetrical to the descent to 0.70 it did during the years 2010-2015. If that assessment is correct, going to 0.93 and above is very likely for this pair in the coming year. Fundamentally, there may be ground for that: the British pound has hardly more factors on its side against those on the euros. The first quarter of 2021 will bring more clarity on that.
USD/JPY: testing the support
After a shockwave in January-February 2020, USD/JPY went into a downward trajectory that stretches from 110.00 to 103.00. Visibly, there is little technical evidence to suggest that this trend would see much change in the future.
From a strategic point of view, coming down from 110.00 to 100.00 is an organic continuation of the large downslope that started above 120.00 in 2015. In the meantime, the area around 100.00 has been providing support to the currency pair movement since before 2015 and after that year. Currently, USD/JPY is exactly at this support so beware: technically, a bounce upwards is very possible in the coming year.
Similar
CAD Might Weaken As Oil Market Plunges
Futures for Canada's main stock index rose on Monday, following positive global markets and gains in crude oil prices. First Citizens BancShares Inc's announcement of purchasing the loans and deposits of failed Silicon Valley Bank also boosted investor confidence in the global financial system...
Bitcoin & Gold - Safe Haven Amid Bank Crisis
Investor confidence in the global financial system has been shaken by the collapse of Silicon Valley Bank and Credit Suisse. As a result, many are turning to bearer assets, such as gold and bitcoin, to store value outside of the system without...
Popular
What Will Happen with the Euro? An Economic Perspective.
eurusd-is-falling-what-to-expect-from-the-future-price-movement
Will Australia's "Rampant Inflation" Prevail in May?
Greetings, fellow forex traders! Exciting news for those with an eye on the Australian market - the upcoming interest rate decision could be good news for Aussies looking to refinance or take out new loans. The Mortgage and Finance Association Australia CEO, Anja Pannek, has...
How Will BoJ Meeting Affect the Yen
Hold onto your hats, folks! The Japanese yen took a nosedive after the Bank of Japan (BOJ) left its ultra-loose policy settings unchanged, including its closely watched yield curve control (YCC) policy. But wait, there's more! The BOJ also removed its forward guidance, which had previously pledged to keep interest rates at current or lower levels. So, what's the scoop? Market expectations had been subdued going into the meeting, but some were still hoping for tweaks to the forward guidance to prepare for an eventual exit from the bank's massive stimulus
Choose your payment system
