We are analyzing the trading activity of HFT algorithms in the Forex market and have noticed that bearish trading opportunities may exist on the EURUSD currency pair today.
The pair has already reached the light HFT selling pressure zone that is noted at 1.1354 and above. The price reacted well here and the bullish attempts were already rejected. The candle of the last bullish attempt has not closed yet, but it's being strongly rejected with a tall upper shadow.
Trend indicators such as the Master MACD and the FxTR CCI are still showing the trend is bullish, but they will be quick to turn bearish if a top in EURUSD is indeed formed.
In that scenario, the light HFT buying pressure zone that is noted at 1.1314 and below will be in focus for placing profit targets.
At the beginning of the European session, the USD / CHF is trading near 1.0000, declining for the second week in a row.
The indicators OsMA and Stochastic on the 1-hour, 4-hour, daily chart turned to the short positions, signaling an increase in negative dynamics.
As the Swiss Federal Customs Administration reported on Tuesday morning, the country's positive foreign trade surplus increased by 81 million francs in February and amounted to 3.125 billion francs (according to forecasts, the foreign trade surplus was expected to decrease to 2.88 billion francs).
The surplus in the foreign trade balance increased in February mainly due to exports (to a record 19.815 billion francs). Export figures are an important indicator of the growth rate of the Swiss economy. Strong demand for exports from Switzerland leads to an increase in the trade surplus, which has a positive effect on CHF.
Analysis of the trading activity of HFT algorithms in the Fx market suggests that bullish trading opportunities on GBPUSD may be interesting today.
The pair has already reached and bounced from the light HFT buying pressure zone that is today noted at 1.3228 and below. Trend indicators are still showing the trend as bearish, however, and the bullish attempt was rejected at 1.3270 on the short-term charts today.
But, the past lows around the 1.3230 area provide further support near the light HFT buying pressure zone. If GBPUSD manages to take another leg higher, the light HFT selling pressure zone that is noted at 1.3325 and above will be an interesting area to look for targets.
At the end of January, the S&P500 broke through key resistance levels of 2676.0 (Fibonacci level 23.6% of the correction to the growth since February 2016), 2720.0 (ЕМА200 on the daily chart), having recovered significantly after falling in the 4th quarter of last year.
At the moment, the growth of US stock indexes and the S&P500 index continues. Investors are betting on further growth of indices against the background of a more stable position of the American economy in comparison with other major economies of the world.
US Dollar Fundamental Outlook – All eyes on Fed meeting and dot-plot
The US Dollar ended the past week in the red – reversing nearly all of the gains it made on the previous week. Most of the economic reports that were released over the last week were weaker than the expectations. Notably, CPI inflation and core durable goods orders were weaker while the retail sales data was stronger than the forecasts.
With inflation slowing even more than what the consensus expected, the markets are positioning for a dovish Fed this week and for further confirmation of the central bank readiness to stop quantitative tightening and even ease monetary policy if needed. This will be likely shown in the dot-plot (economic projections) where markets are expecting the Fed to lower the forecasted number of rate hikes for this year from two to one.
The Dollar is likely to weaken if the Fed delivers on the dovish expectations and could strengthen if the Fed maintains a neutral to a more hawkish stance.
According to data released on Friday, industrial production in the US increased by 0.1% in February against a decline of -0.4% in January (the forecast suggested an increase of + 0.4%). The Fed-New York manufacturing index in March fell to 3.7 (the forecast was 10.0) from 8.8 in February. The preliminary sentiment index according to the University of Michigan rose to 97.8 in March against 93.8 in February (the forecast was 95.6).
Investors found this data weak, and the dollar declined on Friday.
Following an all-time high of roughly $20,000 in December 2017, we have so far witnessed the most prolonged bear market in the history of Bitcoin. Should we be looking forward to a continuation of the bearish price decline beyond the most recent low within $3100.00? Come along as we take a look at the interesting events in the crypto markets as well as significant technical patterns from a multiple time frame perspective.
BTCUSD (Bitcoin) Technical and Fundamentals