EURCAD Slips Underneath 1.5400 Level As Loonie Stays Firm on the Oil Price Surge

Updated:

EURCAD Price Analysis – February 3

The EURCAD’s lower break of 1.5422 level by sellers now confirms the resumption of the whole decline from 1.5979 towards the mid 1.5300 level. The EURCAD pair had slipped underneath the 1.5400 early during the European session as Loonie stays firm on the oil price surge. However, the primary upward driver of the loonie is the BOC’s upgrade of its growth forecasts.

Key Levels
Resistance Levels: 1.5600, 1.5500, 1.5422
Support Levels: 1.5313, 1.5268, 1.5200

EURCAD Long term Trend: Ranging
The currency pair has plunged beneath the 1.5400 marks down to the lower boundary of the descending pattern at the 1.5364 level during European trading sessions. The technical indicators are endorsing the negative bias with the RSI holding below its midlines. If the prices decline further support could be found around the 1.5313 horizontal support zone.

In the long term, only a pullback below the ascending trendline support could switch the outlook into a negative one like under the support region. To the upside, if the pair manages to rebound and overcome the 1.5422 resistance level, the next level to be watched will be the 1.5500 level and also 1.5593 swings high level of Jan 28.

EURCAD Short term Trend: Bearish
In the short-term, the outlook remains negative since prices hold below the 1.5400 marks and the moving average 5. However, bearish traders could target the support cluster at the 1.5313 level. Also, the currency exchange rate might make a brief rebound towards the round figure pivot at the 1.5400 level in the shorter term.

If the ascending trendline pattern holds, bullish traders are likely to continue to pressure the price higher during the following trading sessions. Against this, the loss of support at the 1.5313 lows could pave the way for a deeper retracement to the 1.5268 neighborhood.

Note: Learn2.Trade is not a financial advisor. Do your research before investing your funds in any financial asset or presented product or event. We are not responsible for your investing results

  • Broker
  • Benefits
  • Min Deposit
  • Score
  • Visit Broker
  • Fund Moneta Markets account with a minimum of $250
  • Opt in using the form to claim your 50% deposit bonus
$250 Min Deposit
9
  • 20% welcome bonus of upto $10,000
  • Minimum deposit $100
  • Verify your account before the bonus is credited
$100 Min Deposit
9
  • The Lowest Trading Costs
  • 50% Welcome Bonus
  • Award-winning 24 Hour Support
$200 Min Deposit
9
  • Award-winning Cryptocurrency trading platform
  • 14 Cryptoassets available to invest in
  • FCA & Cysec regulated
$200 Min Deposit
9.8

Highly volatile unregulated investment products. No EU investor protection.

  • Over 100 different financial products
  • Invest from as little as $10
  • Same-day withdrawal is possible
$100 Min Deposit
9.8
  • Trade top Cryptos such as Bitcoin, Litecoin and Ethereum plus more
  • Zero commissions and no bank fees on transactions
  • Around the clock service with support in 14 languages
$100 Min Deposit
8.5
  • Award-winning Cryptocurrency trading platform
  • $100 minimum deposit,
  • FCA & Cysec regulated
$100 Min Deposit
9.8

Azeez Mustapha

Azeez Mustapha is a trading professional, currency analyst, signals strategist, and funds manager with over ten years of experience within the financial field. As a blogger and finance author, he helps investors understand complex financial concepts, improve their investing skills, and learn how to manage their money.

XRPUSD Price; Bulls are Preparing to Soar Higher

Updated:
XRP/USD Market February 02

If the bulls were able to increase their momentum and break up the $0.39 level, then, $0.49, $0.62 will be the next target. Should the resistance at $0.39 holds, the price may continue consolidating at the $0.39 level. However, below the current market price are $0.28, $0.21, and $0.17 support levels.

Key Levels:

Resistance levels: $0.39, $0.49, $0.62

Support levels: $0.28, $0.21, $0.17

XRP/USD Long-term Trend: Bullish

XRPUSD is bullish on the daily chart. When the November high ($0.73) was reached a few days ago, the bears could not accept defeat, they reacted against it with a sharp and sudden reduction in the price and the daily candle turned to the upper long-tailed candle. The price was placed below the former support level of $0.39 on February 01.  The bulls are trying to increase their momentum to push up the price.

XRPUSD daily chart, February 03

The fast-moving EMAs remain above the slow-moving EMAs well separated and the price is trading above the 9 periods EMA and 21 periods EMA as a symbol of a bullish market. If the bulls were able to increase their momentum and break up the $0.39 level, then, $0.49, $0.62 will be the next target. Should the resistance at $0.39 holds, the price may continue consolidating at the $0.39 level. However, below the current market price are $0.28, $0.21, and $0.17 support levels. The relative strength index period 14 is at 50 levels with the signal line pointing upside to indicate the buying market.

XRP/USD Medium-term Trend: Ranging

XRPUSD is ranging on the medium-term outlook. The bulls’ momentum and the bears’ momentum are equal on the 4-hour chart and that is the reason for price consolidation around the $0.39 price level. This scenario started shortly after the falling of the price from the high of $0.62. The bears pushed the price to break down the $0.39 level and lose momentum.

XRPUSD 4-hour chart, February 03

 

The two EMAs are close to each other and the price is trading below the 9 periods EMA and 21 periods EMA at a closer range. The relative strength index period 14 is parallel to the level at 50 to indicate that consolidation is in progress.

  • Broker
  • Benefits
  • Min Deposit
  • Score
  • Visit Broker
  • Fund Moneta Markets account with a minimum of $250
  • Opt in using the form to claim your 50% deposit bonus
$250 Min Deposit
9
  • 20% welcome bonus of upto $10,000
  • Minimum deposit $100
  • Verify your account before the bonus is credited
$100 Min Deposit
9
  • The Lowest Trading Costs
  • 50% Welcome Bonus
  • Award-winning 24 Hour Support
$200 Min Deposit
9
  • Award-winning Cryptocurrency trading platform
  • 14 Cryptoassets available to invest in
  • FCA & Cysec regulated
$200 Min Deposit
9.8

Highly volatile unregulated investment products. No EU investor protection.

  • Over 100 different financial products
  • Invest from as little as $10
  • Same-day withdrawal is possible
$100 Min Deposit
9.8
  • Trade top Cryptos such as Bitcoin, Litecoin and Ethereum plus more
  • Zero commissions and no bank fees on transactions
  • Around the clock service with support in 14 languages
$100 Min Deposit
8.5
  • Award-winning Cryptocurrency trading platform
  • $100 minimum deposit,
  • FCA & Cysec regulated
$100 Min Deposit
9.8

Azeez Mustapha

Azeez Mustapha is a trading professional, currency analyst, signals strategist, and funds manager with over ten years of experience within the financial field. As a blogger and finance author, he helps investors understand complex financial concepts, improve their investing skills, and learn how to manage their money.

Euro Plunges, Key Support Gives Way As Dollar Index (DXY) Registers 2 Months High

Updated:

Eurozone GDP contracted -0.7% QoQ in Q4, which is less than expected -1.8% QoQ. Over the year, GDP contracted -6.8% y/y. EU GDP contracted 0.5% QoQ. Over the year, EU GDP contracted by 6.4% y/y.

Among the EU member states for which data for the 4th quarter are available, the largest decrease compared to the previous quarter was recorded in Austria (-4.3%), followed by Italy (-2.0%) and France (-1.3 %), and Lithuania (+ 1.2%) and Latvia (+ 1.1%) recorded the highest growth. Year-on-year growth rates for all countries remained negative.

EUR/USD finally breaks the 1.2052 support after resuming the correction from 1.2348. The intraday bias returned to the downside due to channel support (now at 1.1970). The daily chart channel’s support line can provide enough support for the recovery.

A sustained break would indicate that the fall from 1.2348 is indeed correcting the entire uptrend from 1.0635. In this case, the nearest target is 1.1892. In the end, the correction will at least take 38.2% of the retracement from 1.0635 to 1.2348 at 1.1694 before completion.
Dollar Index (DXY) Registers 2 Months High
The strong growth of the dollar at the beginning of the week found an additional source of energy in a moderate correction of the fall of the EUR/USD pair, in turn, on rumors that the economic recovery in the Old Continent may lose momentum.

The Dollar Index (DXY), a trade-weighted basket of major US dollar exchange rates, hit a two-month high on Tuesday, peaking at 91.287 and surpassing the December 7 peak at 91.238. The US dollar was in the background for most of Tuesday’s session, slipping to 90.80 after failing to break the 91.00 level on Tuesday.

The index is currently trading in daily gains of about 25 points, or about 0.3%, and the US dollar is one of the best performing G10 currencies for the day.

Today’s upward extension (up 0.2% since open) indicates the next key barrier at 91.30, breaking of which will add signals to a stronger correction and draw attention to the daily cloud top (91.96) as well as 50% pullback to 94.78/ 9.15.

  • Broker
  • Benefits
  • Min Deposit
  • Score
  • Visit Broker
  • Fund Moneta Markets account with a minimum of $250
  • Opt in using the form to claim your 50% deposit bonus
$250 Min Deposit
9
  • 20% welcome bonus of upto $10,000
  • Minimum deposit $100
  • Verify your account before the bonus is credited
$100 Min Deposit
9
  • The Lowest Trading Costs
  • 50% Welcome Bonus
  • Award-winning 24 Hour Support
$200 Min Deposit
9
  • Award-winning Cryptocurrency trading platform
  • 14 Cryptoassets available to invest in
  • FCA & Cysec regulated
$200 Min Deposit
9.8

Highly volatile unregulated investment products. No EU investor protection.

  • Over 100 different financial products
  • Invest from as little as $10
  • Same-day withdrawal is possible
$100 Min Deposit
9.8
  • Trade top Cryptos such as Bitcoin, Litecoin and Ethereum plus more
  • Zero commissions and no bank fees on transactions
  • Around the clock service with support in 14 languages
$100 Min Deposit
8.5
  • Award-winning Cryptocurrency trading platform
  • $100 minimum deposit,
  • FCA & Cysec regulated
$100 Min Deposit
9.8

Azeez Mustapha

Azeez Mustapha is a trading professional, currency analyst, signals strategist, and funds manager with over ten years of experience within the financial field. As a blogger and finance author, he helps investors understand complex financial concepts, improve their investing skills, and learn how to manage their money.

Polkadot Price Analysis — February 2

Updated:

21Shares, one of the world’s largest cryptocurrency exchange-traded products (ETPs), is releasing the very first Polkadot (DOT) ETP. The company announced earlier that the new product might get listed on the Swiss SIX exchange on February 4, 2021.

The new ETP is coming just after Polkadot got added to 21Shares’ top ETP product Crypto Basket ETP (HODL) on January 29. HODL, which tracks five top cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH), has now removed Bitcoin Cash (BCH) from its listings and is replacing it with Polkadot as the second-largest constituent after Bitcoin.

According to a report from MVIS Indices, Polkadot now makes up 27% of all ETP, while BTC accounts for about 50% of the product.

According to a 21Shares spokesperson, the company has no say in the addition or removal of assets from the HODL ETP. The spokesperson noted that this responsibility is reserved for MV Index Solutions.

21Shares noted that the addition of Polkadot to its Crypto Basket ETP makes it the “perfect timing to add single asset ETP to the already wide range of crypto ETPs” offered.

CEO of the company, Hany Rashwan, asserted that the company remains devoted to fulfilling the demand seen from institutional investors.

DOT is a next-generation blockchain protocol, linking several specialized blockchains into one network. A few days ago, the cryptocurrency surpassed Ripple (XRP) as the fourth-largest crypto based on market cap. However, XRP has since reclaimed the spot.

At press time, DOT is trading up by about 80% in its year-to-date high.

DOT – 4-Hour Chart

Key DOT Levels to Watch — February 2

Polkadot has been range-bound for the past few days between the 17.66 resistance to the 15.70 support. The cryptocurrency attempted another go at the 17.66 resistance some hours ago but failed to break above, once again.

That said, DOT could continue on its range-bound momentum in the coming days, considering that volatility is beginning to fade. Nonetheless, a fall below 14.80 seems very unlikely in the meantime, indicating that Polkadot could remain in its 17-day range between 18.90 and 14.80.

Meanwhile, our key resistance levels are at $17.66, $18.42, and $18.90. While our key support levels are at $16.44, $15.70, and $14.80.

Total Market Capitalization: $1.06 trillion

Polkadot Market Capitalization: $2.49billion

Polkadot Dominance: 0.23%

Note: Learn2.Trade is not a financial advisor. Do your research before investing your funds in any financial asset or presented product or event. We are not responsible for your investing results.

  • Broker
  • Benefits
  • Min Deposit
  • Score
  • Visit Broker
  • Fund Moneta Markets account with a minimum of $250
  • Opt in using the form to claim your 50% deposit bonus
$250 Min Deposit
9
  • 20% welcome bonus of upto $10,000
  • Minimum deposit $100
  • Verify your account before the bonus is credited
$100 Min Deposit
9
  • The Lowest Trading Costs
  • 50% Welcome Bonus
  • Award-winning 24 Hour Support
$200 Min Deposit
9
  • Award-winning Cryptocurrency trading platform
  • 14 Cryptoassets available to invest in
  • FCA & Cysec regulated
$200 Min Deposit
9.8

Highly volatile unregulated investment products. No EU investor protection.

  • Over 100 different financial products
  • Invest from as little as $10
  • Same-day withdrawal is possible
$100 Min Deposit
9.8
  • Trade top Cryptos such as Bitcoin, Litecoin and Ethereum plus more
  • Zero commissions and no bank fees on transactions
  • Around the clock service with support in 14 languages
$100 Min Deposit
8.5
  • Award-winning Cryptocurrency trading platform
  • $100 minimum deposit,
  • FCA & Cysec regulated
$100 Min Deposit
9.8

Azeez Mustapha

Azeez Mustapha is a trading professional, currency analyst, signals strategist, and funds manager with over ten years of experience within the financial field. As a blogger and finance author, he helps investors understand complex financial concepts, improve their investing skills, and learn how to manage their money.

Italy 40 (ITA40) Makes Upward Move, May Retest Level 23000

Updated:

Key Resistance Zones: 24000, 25000, 26000
Key Support Zones: 22000, 21000, 20000

Italy 40 (ITA40) Long-term Trend: Bullish
Italy 40 is making an upward move after falling to the low of level 21500. After consolidating above level 21500 for four days, the index resumed upward. The price is likely to retest the level 23000 and break it. A breakout will ensure further upward movement of the index. Otherwise, the market will resume a sideways move.

ITA40 – Daily Chart

Daily Chart Indicators Reading:
The 21-day SMA and 50-day SMA are sloping upward. It indicates the current uptrend. The market has risen to level 49 of the Relative Strength Index. It indicates that there is a balance between supply and demand.

Italy 40 (ITA40) Medium-term Trend: Bullish
On the 4- hour chart, the index is in an upward move. On February 2 uptrend; a retraced candle body tested the 78.6% Fibonacci retracement level. The retracement indicates that the Index will fall to level 1.272 Fibonacci extension level or the high of 22348. The index is likely to reverse at the recent high.

4- Hour Chart Indicators Reading:
The 21-day SMA and 50-day SMA are sloping upward. The index is above the 80% range of the daily stochastic. It indicates that ITA40 is in a bullish momentum and is in the overbought region.

ITA40 – 4 Hour Chart

General Outlook for Italy 40 (ITA40)
Italy 40 is presently in an upward move to retest level 23000. The first uptrend was interrupted at level 23000. Italy 40 will continue with the upward move if the current resistance is breached.


Note: Learn2.Trade is not a financial advisor. Do your research before investing your funds in any financial asset or presented product or event. We are not responsible for your investing
Results

  • Broker
  • Benefits
  • Min Deposit
  • Score
  • Visit Broker
  • Fund Moneta Markets account with a minimum of $250
  • Opt in using the form to claim your 50% deposit bonus
$250 Min Deposit
9
  • 20% welcome bonus of upto $10,000
  • Minimum deposit $100
  • Verify your account before the bonus is credited
$100 Min Deposit
9
  • The Lowest Trading Costs
  • 50% Welcome Bonus
  • Award-winning 24 Hour Support
$200 Min Deposit
9
  • Award-winning Cryptocurrency trading platform
  • 14 Cryptoassets available to invest in
  • FCA & Cysec regulated
$200 Min Deposit
9.8

Highly volatile unregulated investment products. No EU investor protection.

  • Over 100 different financial products
  • Invest from as little as $10
  • Same-day withdrawal is possible
$100 Min Deposit
9.8
  • Trade top Cryptos such as Bitcoin, Litecoin and Ethereum plus more
  • Zero commissions and no bank fees on transactions
  • Around the clock service with support in 14 languages
$100 Min Deposit
8.5
  • Award-winning Cryptocurrency trading platform
  • $100 minimum deposit,
  • FCA & Cysec regulated
$100 Min Deposit
9.8

Azeez Mustapha

Azeez Mustapha is a trading professional, currency analyst, signals strategist, and funds manager with over ten years of experience within the financial field. As a blogger and finance author, he helps investors understand complex financial concepts, improve their investing skills, and learn how to manage their money.

USDCHF Proceed With a Surge Towards 0.9000 Level As the US Dollar Index Extends Rally

Updated:

USDCHF Price Analysis – February 2

The USDCHF for the 3rd day in a row continues to move with an upward surge toward the 0.9000 level. In doing so, the pair marked reversal from the sub 0.8900 zones as the US dollar index extends rally beyond 91.00 giving a boost for the USDCHF pair.

Key Levels
Resistance Levels: 0.9187, 0.9093, 0.8998
Support Levels: 0.8920, 0.8858, 0.8757
USDCHF Long term Trend: Ranging
The USDCHF is trading higher with the surge towards the 0.8998 resistance during the session. This has enacted an inverted head and shoulder pattern which should eventually target the 0.9093 level. Currently, the RSI is pointed higher and previous support will act as resistance at the 0.9000 marks.

Ay such plunge towards the 0.8900-20 level should offer strong support. Meanwhile, after the uptick, the overall daily trend stays in consolidation after the initial rebound for further advance. A strong breakout of the 0.8998 resistance level would be an early sign of a trend reversal and would draw attention to the key 0.9093 resistance level for a test.
USDCHF Short term Trend: Bullish
The intraday bias of USDCHF has changed to bullish with the current trend. A sustained advance is preferred until minor 0.9093 resistance is breached. On the other hand, a decisive break of the 0.8998 level could resume a larger downtrend.

On the other hand, a break above the minor resistance at 0.9093 could push the bias back up towards the 0.9187/9304 resistance zone. On the upside, a breach of 0.8998 near term resistance is required to indicate short term bottoming. Yet still, the near term trend stays mixed despite the recovery.

Note: Learn2.Trade is not a financial advisor. Do your research before investing your funds in any financial asset or presented product or event. We are not responsible for your investing results

  • Broker
  • Benefits
  • Min Deposit
  • Score
  • Visit Broker
  • Fund Moneta Markets account with a minimum of $250
  • Opt in using the form to claim your 50% deposit bonus
$250 Min Deposit
9
  • 20% welcome bonus of upto $10,000
  • Minimum deposit $100
  • Verify your account before the bonus is credited
$100 Min Deposit
9
  • The Lowest Trading Costs
  • 50% Welcome Bonus
  • Award-winning 24 Hour Support
$200 Min Deposit
9
  • Award-winning Cryptocurrency trading platform
  • 14 Cryptoassets available to invest in
  • FCA & Cysec regulated
$200 Min Deposit
9.8

Highly volatile unregulated investment products. No EU investor protection.

  • Over 100 different financial products
  • Invest from as little as $10
  • Same-day withdrawal is possible
$100 Min Deposit
9.8
  • Trade top Cryptos such as Bitcoin, Litecoin and Ethereum plus more
  • Zero commissions and no bank fees on transactions
  • Around the clock service with support in 14 languages
$100 Min Deposit
8.5
  • Award-winning Cryptocurrency trading platform
  • $100 minimum deposit,
  • FCA & Cysec regulated
$100 Min Deposit
9.8

Azeez Mustapha

Azeez Mustapha is a trading professional, currency analyst, signals strategist, and funds manager with over ten years of experience within the financial field. As a blogger and finance author, he helps investors understand complex financial concepts, improve their investing skills, and learn how to manage their money.

S&P 500 Upside Traction Prints Fresh Highs Past 3800 Levels Amid Surging Oil Prices

Updated:

S&P 500 Price Analysis – February 2

The S&P 500 holds past 3800 levels as upside traction prints fresh highs in the mid 3800 vicinities to maintain the immediate threat of a higher spike. The index had opened positively on Tuesday amid surging oil prices with Energy Index up nearly 2% after the opening bell.

Key Levels
Resistance Levels: 4000, 3900, 3868
Support Levels: 3800, 3735, 3691
S&P 500 Long term Trend: Ranging
The S&P 500 has recovered from the prior days low at the 3665 levels while trading past the 3800 levels earlier in the day. The uptrend may be expected to continue, while the market is trading above support level 3735, which will be followed by reaching resistance level 3868 level.

On the contrary, a downtrend may start as soon, as the market drops below support level 3735, which will be followed by moving down to support level 3691 and the ascending trendline support at recent lows of 3665.
S&P 500 Short term Trend: Ranging
The S&P 500 surged by 72 pips or 1.77% during the early Tuesday trading session. The index is trading above the moving average 5 at the upside channel pattern at the 3838 levels. Technical indicators demonstrate that the index is likely to edge higher during the following trading session. The potential target for bulls would be at the 3868 levels.

However, the horizontal resistance at 3840 could provide resistance for the currency index within this session and the next. On the other hand, if the S&P 500 returns lower, it is supported on dips by the 4 hours moving average of 13 around the 3765 levels where buyers may re-emerge.

NoteLearn2Trade.com is not a financial advisor. Do your research before investing your funds in any financial asset or presented product or event. We are not responsible for your investing results

 

  • Broker
  • Benefits
  • Min Deposit
  • Score
  • Visit Broker
  • Fund Moneta Markets account with a minimum of $250
  • Opt in using the form to claim your 50% deposit bonus
$250 Min Deposit
9
  • 20% welcome bonus of upto $10,000
  • Minimum deposit $100
  • Verify your account before the bonus is credited
$100 Min Deposit
9
  • The Lowest Trading Costs
  • 50% Welcome Bonus
  • Award-winning 24 Hour Support
$200 Min Deposit
9
  • Award-winning Cryptocurrency trading platform
  • 14 Cryptoassets available to invest in
  • FCA & Cysec regulated
$200 Min Deposit
9.8

Highly volatile unregulated investment products. No EU investor protection.

  • Over 100 different financial products
  • Invest from as little as $10
  • Same-day withdrawal is possible
$100 Min Deposit
9.8
  • Trade top Cryptos such as Bitcoin, Litecoin and Ethereum plus more
  • Zero commissions and no bank fees on transactions
  • Around the clock service with support in 14 languages
$100 Min Deposit
8.5
  • Award-winning Cryptocurrency trading platform
  • $100 minimum deposit,
  • FCA & Cysec regulated
$100 Min Deposit
9.8

Azeez Mustapha

Azeez Mustapha is a trading professional, currency analyst, signals strategist, and funds manager with over ten years of experience within the financial field. As a blogger and finance author, he helps investors understand complex financial concepts, improve their investing skills, and learn how to manage their money.

NZD/USD Fluctuates Between Levels 0.7100 and 0.7300, May Retest Level 0.7300

Updated:

Key Resistance Levels: 0.7000, 0.7200, 0.7400
Key Support Levels: 0.6200, 0.6000, 0.5800

NZD/USD Price Long-term Trend: Bullish
The Kiwi is fluctuating between levels 0.7100 and 0.7300. Following its rejection at level 0.7300, the pair has been fluctuating since January 6. The Kiwi will resume an uptrend if level 0.7300 is breached. Meanwhile, the market is consolidating above level 0.7100.

NZD/USD – Daily Chart

Daily Chart Indicators Reading:
The Kiwi has risen to level 49 of the Relative Strength Index period 14. It indicates that there is a balance between supply and demand. The 50-day SMA and 21-day SMA are sloping upwardly indicating the uptrend.

NZD/USD Medium-term Trend: Bearish
On the 4-hour chart, the NZD/USD pair has fallen and reached bearish exhaustion. On February downtrend; a retraced candle body tested 78.6% Fibonacci retracement level. The retracement indicates that the pair will rise to level1.272 Fibonacci extensions. That is a high of level 0.7144.

NZD/USD – 1 Hour Chart

4-hour Chart Indicators Reading
The 50-day and 21-day SMAs are sloping upward. The Kiwi is above the 20% range of the daily stochastic. It indicates that the market is a bullish momentum.

General Outlook for NZD/USD
The NZD/USD has fallen above level 0.7100. The pair is fluctuating between levels 0.7100 and 0.7300. The price action is characterized by indecisive candlesticks called Doji and Spinning tops.

Note: Learn2.Trade is not a financial advisor. Do your research before investing your funds in any financial asset or presented product or event. We are not responsible for your investing results

  • Broker
  • Benefits
  • Min Deposit
  • Score
  • Visit Broker
  • Fund Moneta Markets account with a minimum of $250
  • Opt in using the form to claim your 50% deposit bonus
$250 Min Deposit
9
  • 20% welcome bonus of upto $10,000
  • Minimum deposit $100
  • Verify your account before the bonus is credited
$100 Min Deposit
9
  • The Lowest Trading Costs
  • 50% Welcome Bonus
  • Award-winning 24 Hour Support
$200 Min Deposit
9
  • Award-winning Cryptocurrency trading platform
  • 14 Cryptoassets available to invest in
  • FCA & Cysec regulated
$200 Min Deposit
9.8

Highly volatile unregulated investment products. No EU investor protection.

  • Over 100 different financial products
  • Invest from as little as $10
  • Same-day withdrawal is possible
$100 Min Deposit
9.8
  • Trade top Cryptos such as Bitcoin, Litecoin and Ethereum plus more
  • Zero commissions and no bank fees on transactions
  • Around the clock service with support in 14 languages
$100 Min Deposit
8.5
  • Award-winning Cryptocurrency trading platform
  • $100 minimum deposit,
  • FCA & Cysec regulated
$100 Min Deposit
9.8

Azeez Mustapha

Azeez Mustapha is a trading professional, currency analyst, signals strategist, and funds manager with over ten years of experience within the financial field. As a blogger and finance author, he helps investors understand complex financial concepts, improve their investing skills, and learn how to manage their money.

USD/JPY Is in an Uptrend, Breaks Above Level 105.00

Updated:

Key Resistance Levels: 111.000, 112.000, 113.000
Key Support Levels: 104.000, 103.000, 102.000

USD/JPY Price Long-term Trend: Bullish
The USD/JPY has continued its rally. On January 11 uptrend; a retraced candle body tested the 50% Fibonacci retracement level. The retracement indicates the Yen is likely to rise to level 2.0 Fibonacci extensions. This is the high of level 106.16.

USD/JPY – Daily Chart

Daily Chart Indicators Reading:
Presently, the SMAs are sloping upward indicating the uptrend. The index is at level 67 of the Relative Strength Index period 14. This indicates that the pair has not enough room to rally on the upside.

USD/JPY Medium-term Trend: Bullish
On the 4-hour chart, the pair is in an upward move. On January 29 trend; a retraced candle body tested the 50% Fibonacci retracement level. The retracement indicates that the Yen will rise to level 2.0 Fibonacci extension or level 105.44.

USD/JPY – 4 Hour Chart

4-hour Chart Indicators Reading
The USD/JPY pair is currently above the 80% range of the daily stochastic. It indicates that the pair is in a bullish momentum. The Yen is trading now in the overbought region

General Outlook for USD/JPY
USD/JPY has been rising for the past three days. The pair is facing rejection at level 105.00. The Fibonacci tool has indicated an upward move of the coin as the price may rise to level 105.44.


Note: Learn2Trade.com is not a financial advisor. Do your research before investing your funds in any financial asset or presented product or event. We are not responsible for your investing results

  • Broker
  • Benefits
  • Min Deposit
  • Score
  • Visit Broker
  • Fund Moneta Markets account with a minimum of $250
  • Opt in using the form to claim your 50% deposit bonus
$250 Min Deposit
9
  • 20% welcome bonus of upto $10,000
  • Minimum deposit $100
  • Verify your account before the bonus is credited
$100 Min Deposit
9
  • The Lowest Trading Costs
  • 50% Welcome Bonus
  • Award-winning 24 Hour Support
$200 Min Deposit
9
  • Award-winning Cryptocurrency trading platform
  • 14 Cryptoassets available to invest in
  • FCA & Cysec regulated
$200 Min Deposit
9.8

Highly volatile unregulated investment products. No EU investor protection.

  • Over 100 different financial products
  • Invest from as little as $10
  • Same-day withdrawal is possible
$100 Min Deposit
9.8
  • Trade top Cryptos such as Bitcoin, Litecoin and Ethereum plus more
  • Zero commissions and no bank fees on transactions
  • Around the clock service with support in 14 languages
$100 Min Deposit
8.5
  • Award-winning Cryptocurrency trading platform
  • $100 minimum deposit,
  • FCA & Cysec regulated
$100 Min Deposit
9.8

Azeez Mustapha

Azeez Mustapha is a trading professional, currency analyst, signals strategist, and funds manager with over ten years of experience within the financial field. As a blogger and finance author, he helps investors understand complex financial concepts, improve their investing skills, and learn how to manage their money.

Lululemon a buy with sales set to rocket in Europe and Asia

Updated:

Lululemon Athletica (LULU) has taken North America by storm with its sports and casual wear.

The Canadian-based athletic apparel retailer has been a pandemic winner, as stay at home workers swap suits and dresses for sweatpants and leggings.

But its shares have been on the slide since the start of this year, after revised guidance for Q4 FY2020 (the period ended 31 January).

In an 11 January press release chief executive Calvin McDonald said: “We’re pleased with the momentum over the holiday period as our investments in Lululemon and Mirror allowed us to connect with guests both physically and digitally. We remain confident about our opportunities in 2021 and committed to our Power of Three growth plan.”

Investors shouldn’t be blinded by analyst disappointment on guidance

But that optimism was followed in the small print that reported “growth rate in net revenue to be at the high end of its mid-to-high teens expectation” and adjusted diluted EPS to come in at the high end of its mid-single digits expectations.

You would have thought that would please the market, but it wasn’t the usual beat that analysts have become accustomed to and the shares fell on the news.

Some analysts had been expecting LULU to bring forward new sales forecasts north of 20%.

LULU doesn’t release Q4 results until 31 March but if the third quarter results are a clue, then sales can be expected to be growing at a steady clip.

In 3Q LULU showed how it was able to keep growing despite the impact of lockdowns on store closures as it continued to expand its e-commerce footprint and maintained its store-opening schedule.

Third-quarter sales were an impressive $1.1 billion, which was up 22% on a year previously ,and an acceleration from the stuttering start to the year that saw a pull back in the shares in June after results laid bare the impact of the Covid pandemic in the first half.

While most bricks and mortar retailers’ performance has languished in the doldrums, if not seen them flirt with near-death experiences, LULU has gone from strength to strength. That’s in no small part due to the way it has positioned its business to capture the e-commerce opportunity.

With the share price a long way off its all-time high at $398 printed on 2 September and the nearer-term high of $367 recorded on 7 January, the current bearish channel may be weakening.

lulu price chart
Lululemon Athletica price chart 2 February 2021 (pre-market), 1-day candles. Courtesy TradingView

LULU was up 1.46% yesterday (Monday 1 February), closing at $333.

Expansion plans will drive revenue growth

Part of LULU’s growth plan, referenced by the McDonald includes stepped-up expansion in East Asia and Europe.

Clearly, with the pandemic forcing many countries into varying degrees of lockdown, it’s not a great environment to rollout store opening. But its stores – a bit like Apple’s – are not just another retail channel in and of themselves, but shop windows, if you will, on a wider brand offering that is a lifestyle play, hence the description of customers/shoppers as guests.

In 2020 it opened 30 to 35 stores and has plans to open a similar number this year. As well as building on its East Asia presence in Japan, China, South Korea and Australia, the company is focused on the UK and Germany as big growth opportunities. Lulu currently has 16 stores across the UK.

Only 14% of revenues in the third quarter came from outside North America, and chief executive McDonald wants to boost that to 50%.

Helping it in that journey was the acquisition of fitness equipment start-up Mirror last year.

The company is also looking to expand sales to men.

The European expansion plans will also be assisted greatly by the hiring of André Maestrini from Adidas – he joined Lululemon at the beginning of this year.

buy lululemon stock on etoro

eToro - Buy and Invest in Assets

Our Rating

  • Buy over 2,400 stocks at 0% commission
  • Trade thousands of CFDs
  • Deposit funds with a debit/credit card, Paypal, or bank transfer
  • Perfect for newbie traders and heavily regulated
  • Only real cryptos are available for US users
67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

What are the risks in buying Lululemon stock?

Lululemon risks, include the ease with which competitors could replicate its success (although none has done so yet) and the upmarket positioning of the brand, which means many consumers will baulk at its prices. Sweatpants sell for $120, which is probably more than 10x their cost at Primark.

However, with the K-shaped recession seeing a stark divide open up between winners and losers in the pandemic, there is undoubtedly a swelling well-heeled demographic that has been saving money and shifting spending patterns to precisely the goods that Lululemon is selling.

Optimum entry point for new investors in Lululemon

With the results upcoming at the end of March and vaccine rollouts expected to accelerate in its target markets, the current price presents an optimum entry point for new investors who wish to ride the new stay-at-home work-from-home wave that is set to become a permanent wave.

In his comments on 14 January McDonald emphasised that the company’s ‘guests’ were generating demand that Lululemon “wasn’t able to fully satisfy”, pointing to strengthening sales ahead, even as return to the office and more outdoor activity returns.

“Although online has done incredibly well, we know there are still a large number of guests that are physical store shoppers only. I have seen a shift in what guests want. I believe it is sustainable and we did not by any means satisfy the demand in 2020 that those shifts will create this opportunity,” said McDonald.

He continued: “And as people shift back to more outdoor, going back to the office – which will happen in 2021 – there is no doubt in my mind that the opportunity and demand for our product and for versatile apparel has a long opportunity of growth ahead of us, and that is what we are continuing to lead in. I do not believe that there is a pull forward. I think there is a demand that even Lululemon wasn’t able to fully satisfy.”

You can watch the video of McDonald’s comments here:

https://share.newscasts.refinitiv.com/link?entryId=1_sp9xhtec&referenceId=tag:reuters.com,2021:newsml_OVDV6MFYJ_930&pageId=RefinitivNewscasts

Our near-term price target is $367.

eToro - Buy and Invest in Assets

Our Rating

  • Buy over 2,400 stocks at 0% commission
  • Trade thousands of CFDs
  • Deposit funds with a debit/credit card, Paypal, or bank transfer
  • Perfect for newbie traders and heavily regulated
  • Only real cryptos are available for US users
67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
  • Broker
  • Benefits
  • Min Deposit
  • Score
  • Visit Broker
  • Fund Moneta Markets account with a minimum of $250
  • Opt in using the form to claim your 50% deposit bonus
$250 Min Deposit
9
  • 20% welcome bonus of upto $10,000
  • Minimum deposit $100
  • Verify your account before the bonus is credited
$100 Min Deposit
9
  • The Lowest Trading Costs
  • 50% Welcome Bonus
  • Award-winning 24 Hour Support
$200 Min Deposit
9
  • Award-winning Cryptocurrency trading platform
  • 14 Cryptoassets available to invest in
  • FCA & Cysec regulated
$200 Min Deposit
9.8

Highly volatile unregulated investment products. No EU investor protection.

  • Over 100 different financial products
  • Invest from as little as $10
  • Same-day withdrawal is possible
$100 Min Deposit
9.8
  • Trade top Cryptos such as Bitcoin, Litecoin and Ethereum plus more
  • Zero commissions and no bank fees on transactions
  • Around the clock service with support in 14 languages
$100 Min Deposit
8.5
  • Award-winning Cryptocurrency trading platform
  • $100 minimum deposit,
  • FCA & Cysec regulated
$100 Min Deposit
9.8

Gary McFarlane

The author is the financial editor at Finixio, the publisher of buyshares.co.uk, stockapps.com, learnbonds.com and insidebitcoins.com. Gary was the cryptocurrency analyst at the UK's second-largest investment platform, interactive investor, from 2017 to August 2020. Gary is the winner of the Best Cryptocurrency Writer 2018 ADVFN International Awards