In a Lackluster Momentum, GBPJPY Trends Within the Prior Day’s Range

GBPJPY Price Analysis – November 13

GBPJPY is trending within the prior day’s range after its unable to build on its gains recent gains as the sellers tried to take advantage and may end the day below its opening price but in a lackluster momentum.

Key Levels

Resistance Levels: 148.66, 146.57, 141.50

Support Levels: 135.49, 130.44, 126.54

GBPJPY Long term Trend: Bullish

In the daily picture, the consolidating structure from the level at 126.54 (low) remains in a formative stage with the advance from the level at 130.44 as the second stage. However, a further advance may be recorded back to the level at 146.57/148.66 resistance.

Meanwhile, for the current scenario, solid resistance from here expects to restrain the upward advance. Although, this may stay as the favored scenario for as long as the level at 135.45 resistance turned support remains.

GBPJPY Short term Trend: Ranging

On the flip side of the 4-hour time frame, the intraday bias of the FX pair stays neutral as the consolidation from the level at 141.50 is extending. Whereas a deeper plunge here may not be out of consideration.

Nevertheless, the downward momentum may be contained above the level at 135.49 resistance turned support to bring about another bounce upside where the break of the level at 141.50 may reactivate the advance from the level at 126.54 towards the 148.66 key resistance.

Instrument: GBPJPY
Order: Buy
Entry price: 135.49
Stop: 130.44
Target: 146.57

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

President Trump Fires Another Shot at China, Says to Increase Tariffs While Asian Markets Take a Plunge

The trade war between two macro economies, U.S and China which had lasted for 16 months in which both countries slapped tariffs on their respective goods seemed to make a headway last few weeks when reports came through that the two countries were nearing a preliminary phase of the trade deal and the tariffs on the goods will be reversed.

However, in a twist, an air of uncertainty hovered above the deal as many speculated that the U.S unwillingness to remove some certain tariffs which many seemed to draw that premise from U.S. white house spoke woman’s interview with a major news channel, which was later corroborated by President Trump himself.

Investors were taken aback as uncertainty rose as to when the preliminary deal will be signed. In recent news, U.S. President as quoted declared that the preliminary deal will happen soon while revealing that he may slap more tariffs on Chinese goods if the deal doesn’t pull through.

Asian Market Takes a Plunge
In the wake of this news, the Asian market took a plunge. The Shanghai Composite Index SHCOMP now stands at 0.31% to 2,908.63, Nikkei 225 NIK, standing now at -1.75% to 23,303.13 while Hang Seng HSI, previously -1.82% slipped by 1.9% to 26,549.
Kospi 180721,standing previously at -0.86% fell by 0.8% to 2,124.68 and Sydney’s S&P-ASX 200 XJO, standing previously at 0.81% took a retreat by 0.6% to 6,715.70. Taiwan Y9999 now stands at -0.46%, Singapore STI before -0.83% took a plunge.

Nissan 7201, standing previously at -0.50% retreated while yet to recover from last year 70% incomes and revenue drop. Fast Retailing 9983 and Inpex 1605, standing in negatives previously also fell. As well as LG Electronics and Foxconn.

Hong Kong’s real estate stocks like New World Development 17, Wharf Real Estate 199 and Sino Land Co. 83, were dealt a blow given the increased unrest in Hongkong.

On the other end, the news had a little impact on the U.S. markets as the USD paired with the Japanese yen which previously had a market gain of 0.09% held steady at 109.06 yen, a slight increase from Tuesday’s 109.01 yen.

In the last five weeks, the bulls tested the U.S. markets as the benchmark S&P 500 index of the Wall street SPX having a previous gain 0.16% topped a 3,100 level high but had a slight drop to end at 3,091.84.DJIA held steady at 27,691.49 while The Nasdaq COMP recorded a gain of 0.3% to stand at 8,486.09. The stocks took a bullish trend likewise. However Benchmark US Crude took a bearish turn likewise NewZealand NZ50GR.

Later this week, the U.S. will release October inflation figures while analysts predict a rise in retail sales for October. In view also is Powell’s testimony to U.S. Congress on Wednesday while hopes are held that Federal reserve will hold steady on its interest rates reduction.

Breaking Downwards, USDCHF Records Fresh Low Session

USDCHF Price Analysis – November 12

USDCHF is posting fresh session lows in today’s trading as sellers took control of the market while breaking downwards past the moving average 5 heading towards moving average 13. As it is, in the event of a further break downwards and the price momentum continues, it will open the market for CHF bids.

Key Levels

Resistance Levels: 1.0231, 1.0126, 1.0027

Support Levels: 0.9911, 0.9851, 0.9659

USDCHF Long term Trend: Bullish

Technically for the current session, the USDCHF plunged back under both resistance horizontal levels on the level at 0.9964 and 0.9929 respectively. However, in the medium term, the USDCHF outlook stays neutral as it remains within a range of the level at 0.9659/1.0231.

Meanwhile, the decisive break of the level at 1.0231 is required to display the resumption of an uptrend. Nevertheless, more consolidation and ranging may be recorded with the risk of another plunge. The FX pair’s trend is short-term downtrend, although likely a correction, as the long-term trends remain bullish.

USDCHF Short term Trend: Ranging

On the 4-hour time frame, it’s intraday bias stays neutral initially. A likely advance is expected as long as the level at 0.9911 minor support is intact. The ranging from the level at 1.0126 may have completed on the level at 0.9851 as at present.

Past the level at 0.9978 may target the resistance on the level at 1.0027 high. A break from there may re-activate the rally from the level at 0.9659. Below a break of the level at 0.9911 will turn bias back to the downside for a retest of the level at 0.9851.

Instrument: USDCHF
Order: Sell
Entry price: 0.9929
Stop: 0.9978
Target: 0.9851

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

UK Geopolitics: Sterling Climbs as Recent Brexit Party Affirmation Douses Tension

Earlier in the news, Brexit party leader had stated that every senatorial seat numbering more than 600 would be keenly contested for by his party. The majority had predicted a drop-down of support for UK Prime Minister, Boris Johnson given Brexit extension.

However events took a twist, as in a recent news release, Nigel Farage revealed his party will hands off every seat won by the conservative party in the last election and rather consolidate to win against the anti-Brexit stance.

Many see this as a prop up in support for Boris Johnson in the upcoming December 12 elections.

Effect on Major Currencies
The bulls had tested the market for sterling as it held steady having topped its May peak in its EURO pairing standing at 85.62 pence. At the time of the report, it traded at 85.79 pence. It rose significantly over a percent versus the USD within a 12-hour range after the news release. Before the news, Sterling traded above $1.28.

The Pound: the cable experienced a bounce as it traded at $1.2896 after the news release. Market analysts presume that Brexit may take a complicated twist as the chances of a hung parliament is lessened. A drop was later recorded as it traded at $1.2858 at the time of the report.

Other Currencies: the news had a muted impact on other currencies. For the Dollar, This may be because the U.S. market was not open fully in respect to Veterans Day. The euro/dollar pair last traded at $1.1033, holding steady, while the dollar edged higher at 109.15 yen.

Also impacting the USD is the recent uncertainty hovering around the trade talks between the U.S. and China. Investors are treading cautious grounds as they await the U.S. President’s speech to the Economic Club in NY. Hong Kong’s increased unrest is believed to have undermined the greenback.

The Chinese yuan held steady at 7.004 versus the dollar, as investors await new reports and market updates with Hong Kong politics in mind.

The New Zealand dollar fell as investors speculated an interest rate cut by the apex bank showing the recent inflation figures presented. It dropped by 0.6% to $0.6326 after the apex’s bank move. It last traded at $0.6333.the Aussie was also caught in the web as it slid to a low of $0.6832.

Gold Price: New Feelings of Trepidation of Trade Dispute; Violence in Hong Kong Spurs the Short Coverage Rally

Gold is by all accounts prepared for a short-covering rally after the substantial plunge a week ago. The present news might be sufficient to oust the absolute weakest short sellers from the market.

Gold prices are moving higher on Monday, supported by lower Treasury yields and lower demand for shares. Poor business conditions because of the U.S. bank vacation. They could likewise be affecting the price activity. Moreover, a lower U.S. dollar is likewise expanding demand for gold designated in dollars.

There is additional proof of the acquisition of haven with futures from the Treasury, the Japanese yen and the upward gold trade. This is being powered by the acceleration of violence in Hong Kong.

At 12:53 GMT, December Comex gold is trading at $ 1464.20, an increase of $ 1.30 or + 0.09%.

Gold experienced its greatest loss of single week in three years a week ago after the U.S. Treasury yields. They took shots at their most elevated levels since August 1. A decline in downturn fears was primarily the reason. Financial specialists sold Treasury securities, sent higher rates and moved their profit to higher-yielding shares.

Business Bargain Concerns
An impetus that offers help for gold is false news about trade relations between the United States and China after President Trump appeared to limit news of an unavoidable lifting of taxes in a drawn-out trade dispute between the two market forces.

Trump likewise said there had been fake news about the U.S. readiness to raise duties as a feature of a “phase one” agreement, the news on which had supported markets.

Citi experts said in a note: “We anticipate that a high level of vulnerability should be kept up regardless of whether a tax reversal is accomplished,” clarifying that investments and money related issues between the two biggest economies on the planet are probably going to proceed.

Unrest in Hong Kong Increases
The fights in Hong Kong took a fierce turn on Monday, heightening an effectively unpredictable circumstance days after a gathering of legislators for democracy was arrested in the city, as indicated in the news lately.

In an occurrence, a dissident from Hong Kong is in a serious situation after taking a bullet from the Police. In another occurrence, police stated that a gathering of nonconformists poured the combustible fluid over a man and set it ablaze.

The most recent mass protest happen after three legislators in support of democracy were detained on Saturday and news demonstrated that others were cautioned that they could before long be detained.

Shares in Hong Kong plunged on Monday, with the Hang Seng index crashing more than 2 percent. Firms in China’s main territory include roughly 50% of the organizations recorded on the stock exchange, as per the most recent figures from the CIA World Factbook.

Price Prediction
Gold is by all accounts settled for a short-covering rally after the substantial plunge a week ago. The present news might be sufficient to oust the absolute weakest short sellers from the market. Likewise, with the Treasury market shut today for U.S. Veterans Day. In the U.S., yields are crashing, which makes the U.S. dollar a less attractive asset, while expanding the demand for dollar-denominated gold.

Leading Metrics Used in Evaluation of Cryptocurrencies

Due to the reason that cryptocurrencies are in a different asset group than other securities and cannot be evaluated using methods like DCF or DDM, it was necessary to create separate valuation techniques to give investors fundamental tools to analyze cryptocurrencies.

Listed below are four prominent cryptocurrency valuation systems.

Store of Value Thesis
This is a method used in determining a cryptocurrency’s value by evaluating its ability to perform as a store of monetary value.

Let’s use gold as a safe-haven investment as an example. Gold is presently valued at $1,300 / ounce which puts the global gold bullion at $8 trillion. For Bitcoin to displace gold as a store of value, its gross value has to rise to $8 trillion. Considering that the total amount of coins is pegged at 21 million, one BTC will have to be valued at $380,000.
$8 trillion / 21 million BTC = $380,000 per one bitcoin.

Token Velocity
Token velocity is evaluated by dividing the gross amount of transactions of a coin by its average network value.
Token Velocity = Total Transaction Volume / Average Network Value.

Tokens with great velocity are prone to having small utility in their system. Consequently, this method helps investors in identifying platforms’ adoption rate and if it will help the system grow in value in the long haul.

Metcalfe’s Law
For this method, Daily Active Address is used to represent the number of daily connected users and the market cap represents the network’s value. Then, divide the market cap by the DAA² to get the Metcalfe’s Ratio.
MET Ratio = Market Cap/(Daily Active Address)².

This method is an efficient technique for evaluating the progress of a network by analyzing its daily user rate.

Network Value to Transactions Ratio
To evaluate the NVT Ratio for a token, get the market cap and divide by the most recent 24-hour trading volume. The result is what is known as the NVT Ratio. The result can then be utilized to grade one token against another.

NVT Ratio = Market Cap/Transaction Volumes. Consequently, a high NVT Ratio for a token translates into a high hypothetical value.

EURUSD Likely to Hold on to Its Support as Bearish Momentum Faints Slightly

EURUSD Price Analysis – November 11

In the European session, at GMT10:00 hrs, the pair is trading at 1.1032, with the EUR trading 0.13% higher against the USD from Friday’s close. And for the 24 hours to 23:00 GMT, the EUR plunged approximately 0.28% against the USD and closed at 1.1019 on Friday, amid the eurozone ongoing political uncertainty.

Key Levels

Resistance Levels: 1.1450, 1.1280, 1.1178

Support Levels: 1.0000, 1.0962, 1.0879

EURUSD Long term Trend: Bearish

The common European currency is expected to hold at support on the level at 1.1016, and a fall through could take it to the next support level of 1.1000. The pair is expected to find its first resistance on the level at 1.1055, and a rise through could take it to the next resistance level of 1.1073.

In the long term picture, the initial rebound from the level at 1.0879 is viewed as a corrective scenario. However, in the event of another advance, upside may be restricted by a retracement of the level at 1.1280 to 1.0879 at 1.1450. Although, a sustained break of the level at 1.1450 may alter this bearish pattern and bring more advancement of the correction.

EURUSD Short term Trend: Bearish

EURUSD intraday bias stays lightly on the downside in the present while it stays on its medium-term support on the level at 1.1016. A corrective rebound from the level at 1.0879 is expected to be over on the level at 1.1178 as of now. A further plunging may be seen to retest the level at 1.0879 low.

Meanwhile a break there may resume a larger downtrend from the level at 1.1178. Above its near term resistance on the level at 1.1092 may alter its intraday bias neutrality hence, the FX pair displays weakness in the short-term (as per its long term downtrend).

Instrument: EURUSD
Order: Sell
Entry price: 1.1055
Stop: 1.1092
Target: 1.0879

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

GBPUSD May Register Weakness at the Beginning of the Week by Pointing to the Most Recent Lows

GBPUSD Price Analysis – November 10

The pound sterling is currently registering a continuing weakness against the USD as observed in the previous session that ends the last week of trading down on Friday at the level at 1.2775 after losing 39 pips. The sellers took control of the FX pair, as it confirmed their breakthrough in the previous low session after trading up to 25 pips below the intraday.

Key levels

Resistance levels: 1.3301, 1.3185, 1.3012

Support levels: 1.2582, 1.2195, 1.1958

GBPUSD Long-term trend: Bullish

In the long-term picture, a medium-term base was structured at the 1.1958 level, before the base at the lowest low. Meanwhile, for this scenario, the advance from the level at 1.1958 is seen as a strong consolidation from the lowest low.

However, an additional advance towards the resistance level of 1.3185 can be recorded. However, this may remain the probable scenario while the level at 1.2582 resistance stays as intact support. Therefore, the firm break of the level at 1.2582 can again shift attention to the level at 1.1958 low.

GBPUSD Short-term trend: Bearish

GBPUSD had collapsed slightly last week in the 4-hour timeframe, as consolidation from the 1.3012 level extended down. The initial bias remains neutral first and the possibility of a sustained plunge is likely.

Although the downward move may be restricted above the level at 1.2582 resistance turned support to resume its advance. At the top, a break of the level at 1.3012 may resume the advance of the level at 1.1958 to 1.2582 at 1.2195 beyond the level at 1.3012.

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

An Inside Look on Market Expectations for the Upcoming Week

The week will undoubtedly be memorable for all trades. Let’s take a quick look at the expectations for the week.

Politics and Others
Making news will be the ongoing accusation saga in the White House that will be made public. Its impact has not yet been felt in the market, but it can be felt in the coming weeks.

On Friday, the U.S. announced its unwillingness to eliminate certain tariffs. With the uncertainty of a tariff reversal before the preliminary agreement, it seems that China is still unsure and, therefore, needs guarantees before signing the agreement.

Powell’s defense at Congress during the week, the long-awaited speech by the President of the United States at the Economic Club in New York will be in the news this week.

UK politics may also come into play given the upcoming elections, also the recent monetary stance of the Bank of England due to Brexit.

RBNZ can keep its rates stable as expected, while conversations for rate cuts can continue, the positivity hovers around the Kiwi dollar as there is a 50 percent chance of a 25 basis point rate cut.

Main Currencies
U.S. Dollar, the Canadian Dollar
The previous week had been positive for the dollar, as it closed at $98,353 with a market gain of 1.15%. Investors may need to relax until Wednesday to obtain statistics that influence the U.S. market since it is assumed that by then the inflation figures for October will be out.

While the impact on the USD is uncertain, it can remain stable to inflation and unemployment claims figures, but retail sales figures can deal a blow to the USD. Canadian dollar can also be affected by the expected speech of the BoC governor.

The dollar can recover, but events can take a turn.

The Canadian dollar closed at C $1.3228 at 0.65% per USD.

Euro, the Japanese Yen
The economic sentiment figures for Germany and the Eurozone will be published on Tuesday, which could face a negative blow to the EUR given the rise in unemployment in Germany and a drop in the ZEW economic sentiment index.

Industrial production figures and GDP figures on Wednesday and Thursday respectively can cause a change of trend for the EUR. The GDP figures that will be published as first and second estimates, while the final figures will come out on Friday can be shocking for the Japanese yen. Besides, the recent monetary stance of the BoJ comes into play.

The EUR and the Japanese yen can recover if the economy according to published figures improves and if inflation figures are low.

The previous week, the EURUSD closed at $1.1018 at 1.33% and the Japanese Yen at 0.99% at ¥109.26/USD.

The Cable, the Australian Dollar
Manufacturing figures for the third quarter of GDP and for September will impact, while commercial inventories and industrial production may have less impact on the cable.

Employment figures, October inflation, and retail sales figures to be published on Tuesday, Wednesday and Thursday will affect the cable, also the Australian dollar. GBPUSD closed at $1.2774 for 1.33%. The Australian dollar ended the week with a 0.59% drop to $0.6863.

Hong Kong Amps up CBDC Studies

The Hong Kong Monetary Authority just disclosed that it is carrying out studies on developing a CBDC. This announcement came on the 7th of November in a news report.

Partnership with the PBoC
HKMA also disclosed that it is partnering with the digital currency department of the People’s Bank of China. The PBoC is expected by many to pioneer the drop of the world’s first CBDC.

The operation is being carried out in conjunction with Hong Kong Interbank Clearing Ltd. and 3 other financial establishments, and blockchain consortium R3.

In the report, the senior executive director, Edmund Lau broke down the operation. He stated that the operation involves a proof-of-concept analysis on coin-based CBDC, studies on debt securities allocation through the utilization of blockchain, an examination on the probability of CBDC’s payment policies and investigation into a probable two-tier allocation prototype, which could create the possibility for corporate representatives to own and utilize CBDC coins as endorsed parties of their establishments.

HKMA is said to be concentrated on using the CBDC solely for financial establishments as opposed to retail activities. They are particularly interested in local interbank payments and wholesale payments. Edmund said that there is already a lot of access to digital mobile payments products.

HKMA has also approved a memo of agreement with the bank of Thailand to carry out a collective study program into the use of a CBDC for border-to-border payments and interbank payment-versus-payment services between the nations in May.

What to Expect
Joe Lubin, CEO of ConsenSys has commented that he doesn’t believe that the PBoC will execute the decentralized facets of blockchain in its coming CBDC. He went on to say that the security will probably be used to sustain administrations’ management of cash flow and that the PBoC will utilize some of the old methods of blockchain.

Regardless, the Deputy Director of the PBoC, Mu Changchun said in August that the CBDC is going to be constructed to be a centralized, two-level operation, seeing the PBoC at the cap level and the succeeding level will be handled by local banks.