World-Signals Forex Daily Analysis

[WorldSignals]

EURUSD levels below 1.20 are good for long positions.
The new business week started sluggish in the first part of Monday. There is not a clear direction and as overall the trading EURUSD is into neutral direction. The trading level (EURUSD) below 1.20 is a very good entry for many investors to buy Euros.
Until the end of the day and tomorrow (Tuesday) there are no important fundamental events in the United States and in Europe the most important event is Germany Trade Balance on Tuesday.
In the absence of fundamental events the market will focus over the politics of the new president Biden and the new economy stimulus. Also the news of the Corona-Virus may also push the trading in one of the directions. As overall in a time without key events the market may easily find a new direction as the chance for upward movement above 1.2100 is with higher chance. So we recommend staying in long positions in the first half of the week.

[WorldSignals]

Trading Strategy for EURUSD ahead of U.S. Holiday on Monday.
There remains little more than 24-hours to complete this week's trading. EURUSD in this second week of February is currently trading at about +90 pips from the start of the week. The lossing process of the Dollar continues. In the next trading hours EURUSD may make some recovery based on technical indicators from 1.2137 now to levels below 1.2100. You can find the bottom at 1.2100 or 1.2073. World-Signals.com recommend to use the level of 1.2073 as the possible bottom of trading and use this level of few pips below as a stop. So the trading strategy in the last day ahead of the U.S. Holiday on Monday (U.S. President's Day) is to try entry into a long position with stop below 1.2073 and wait for a new target up above 1.2150 that may happen in the rest Monday or during the Tuesday Asia session.

[WorldSignals]

The Dollar recovery may continue a couple of hours ahead.
EURUSD hit the top of 1.2169 as this level was a signal for the selling process. The Dollar recovered from the high of 1.2169 a level reached on January 26th 2021. The recovery is already generated of 70 pips. The tendency for continued recovery remains for the next couple of hours.
The fundamental focus comes for tomorrow the key data for the U.S. Retail Sales and FOMC Minutes. The investors predict a positive Retail Sales report that is already generated by the market.
The forex market is also moved by the last records in Bitcoin - ever time high over $50000 and also the record Oil price since December 2019.
All these events may continue to support the Dollar in the next couple of hours. The tendency for Dollar recovery may stop on Wednesday (Feb 17th 2021) when World-Signals.com plans to start into long positions with a new target of 50-80 pips above or close to today's pick at 1.2169.

[WorldSignals]

The Trading Strategy of EURUSD is to use long positions again.
EURUSD to test the record levels since the beginning of January 2021 at 1.2349. The test of the highest level this year and at all since April 2018 is on the way to happen next week.
Few hours earlier we saw very good economic news for the United States but nevertheless these news did not support the Dollar. The positive report for Durable Goods orders from 1.2% to 3.4% was not accepted by the investors and even the good decline of Initial Jobless Claims to 730K from 841K.
Till the end of the week we do not expect key fundamental reports. Next week on Friday we can see the key U.S. Non-farm report as the expectations are to see a report at 110K from 49K prior month.
The trading strategy of World-Signals.com is to trade into long positions. After a short correction down to 1.2150/60 we expect to see a test of 1.2349 and probably break above towards 1.24.

[WorldSignals]

The effect of U.S. Economy support and Dollar gains is about to end.
The Dollar already generated the news about the new stimulus for the U.S. Economy. The effect of the $1.9 trillions plan supports the Dollar wins and gains of about 330-380 pips against the Euro in the last 10-days.
EURUSD reached the lowest level of 1.1835 today that is the lowest level since November 23rd 2020. In the last couple of days the fundamental data did not take a mind in the trading so after the strong stimulus the investors may go back to the fundamentals.
One of the fundamental focuses is U.S. CPI (Consumer Price Index for February) expecting to raise to 0.4% from 0.3%.
Also the investors will focus on Europe and ECB Interest rates decisions and news about schedule for Thursday this week.
World-Signals.com trading strategy is to stop with short positions and turn into corrections up to 1.1960. If the downward movement continues we may see a tiny attack below the current lowest level of 1.1853 to level of 1.1805 and then correction up to expecting 1.1960.

[WorldSignals]

How U.S. citizens will use helicopter money and how they will lose these money?
Each American citizen is on the way to receive $1200. How will they spend the money?
The question of how it is planned to order the use of the money from the helicopter, 37% of the surveyed applications, is sought in order to collect shares on the stock market.
The inflation of the stock market will continue. We can see the Dow Jones Index over 35000 and at the same time S&P close to 4200. The new investors may see the light and continue with investments. But this scenario is well known to the big fish.
World-Signals.com warn these new and old investors that it is too risky.
These people are on the way to lose the money because all these predictions and plans are already in the stock market bubble. After the spending of these money many new investors will start to lose as the shares are on the way to collapse. Dow Jones is 100% sure that will go back below 28000 while S&P may lose down to 3300. If you invest in Stock Markets our idea is that it is too late to make a good profit. Don't waste these money in Stocks it is better to use another market like investment in Metals.

[WorldSignals]

Oil price down strongly in combination with 3 news
The positive news from Alaska for Oil (Alaska’s North Slope holds heavy oil of billions barrels shows 4-years study) is a very important news for oil industries in the long-term period.
At the same time the locomotive of the world economy - Asia started to weaken as the Chinese buyers orders went to lower levels.
At the same time we can see technical corrections of Oil prices based on a couple of indicators.
Combine all these news today and the result is Oil Price WTI (New York) dropped by more than $6 in a couple of hours. The Oil price dropped almost 10% within 8-hours. What will happen further? World-Signals.com trading strategy is to continue trade in a short position during the Asian session. Although the expected correction upward during the European session on Friday the trend of downward continued. The WTI price started the big fall from $64.70 to $58.24 and is on the way to down below $55 in the next 72-trading hours.

[WorldSignals]

EURUSD Trading strategy this week.
The strong data for U.S. ISM Services today for March of 63.7 very higher than the key border of 50.00 do not help the Dollar. ISM Services consensus expectation was 58.5 also higher than one month earlier of 55.3. The potential of the Dollar ends at levels below 1.17 and many investors open long positions with expectations to hold EURUSD long above 1.20.
Tomorrow (Tuesday 6th) is expecting EuroZone Unemployment Rate for February as the consensus and prior month report are equal to 8.1%.
EURUSD found very strong support at 1.1704 and 1.1748. World-Signals.com recommends to hold long positions and use the level below 1.1748 for stop. The target is a long-term of 1.20 and may happen in the mid of April 2021.

[WorldSignals]

EURUSD to test 1.20 in the next few days.
The Dollar is on the way to make temporary recovery against the Euro in the next couple of hours. The recovery is based on technical correction. *EURUSD trend in the mid-term period remains upward.
There are some key fundamental events that can move the market. The first one and most important is the U.S. Retail Sales for March. It is expecting a strong recovery up to 5.9% compared with -2.7% in the prior month. During the same time of Retail Sales release is expecting Initial Claims. The weekly number of people filing first-time claims for state unemployment insurance may drop to 700K compared to 744 prior month.
For tomorrow morning Germany's Harmonized Index of Consumer Prices is expecting at the same level of 2.0%.
All these factors are not enough to support the Dollar at the end of this week and beginning of the new week. World-Signals.com expects to see EURUSD to test 1.20 and above.
In a support level we recommend to use the level of 1.1915.

[WorldSignals]

Fed Interest Rates and GDP reports on focus to the end of the week.
The EURUSD trading found a good support line at 1.2055. Although EURUSD trading is possible down correction to 1.2038 where is the next support level the trend into upward direction starts again.
The most important coming events that will take effect over the trading crosses are Fed Interest Rate Decision, Fed's Monetary Policy Statement and FOMC Press Conference. The policy trading probably will remain unchanged with focus over the stimulus of the economy.
Tomorrow the most important events are Germany unemployment and the Harmonized Index of Consumer Prices. Do not forget that much more important is Gross Domestic Product Annualized for Q1 on Thursday 12:30 GMT where the consensus is for 6.5% growth compared to 4.3% in the prior period. On Friday GDP date will be released for Germany and the Euro Zone too.
World-Signals.com trading strategy is to use these two key support levels of 1.2038 and 1.2055 as stops and open long positions with targets above 1.2130 in the next two days or target 1.2150 in the next couple of days.

[WorldSignals]

Trading ideas for EURUSD this week.
EURUSD currently hit the highest level of 1.2266. This is the record high level for the last 5-months. The highest trading level of EURUSD in 2021 is 1.2349. The big questions is the potential of Euro to hit 1.2349 and the levels above this key resistance.
Since the beginning of April 2021 EURUSD is in upward trend.
In the last week of May is expected to show key news for U.S. Durable Goods report on Thursday and Initial Claims to confirm that the jobs market recovery is very slow.
World-Signals.com trading strategy this week is to use short positions with target at 1.2210. If it breaks below 1.2210 we can see levels of 1.2165. The move above 1.2266 is sure to happen but the move may stop at 1.2290/1.2300. The level of 1.2349 may not hit this month. So use the current levels to trade into both directions and if you use long positions try to open at 1.2170 up to 1.2210 and expect target 1.2260.

[WorldSignals]

EURUSD trading strategy ahead key events.
During the current European session the trend of EURUSD will change. The current downward trend started last Friday and is about to end today. The Dollar gained about 130-140 pips in this period of 4 days.
For today the key event is ISM Manufacturing PMI(May) at 14:00 GMT. But overall the key event that everyone is waiting for is Friday Non-farm payroll report. It is expecting a positive report that may support the dollar. The event is already generated by the market. But till the event World-Signals.com expects to see temporary recovery of the Euro as possible levels up to 1.1885.

[WorldSignals]

The higher U.S. consumer price may support the dollar in a short term period.
Inflation climbs for third straight month: U.S. consumer prices rose 5.4% in June from a year ago, again higher than expected.

The dollar became stronger after today's key report for U.S. inflation. The Dollar gained about 55 pips after the release of the news.
This year World-Signals.com expects to see the highest inflation in the last decade. As the dollar gains today by this news in a mid and long-term period the dollar may lose against the major currencies.
But the higher inflation is a signal that Fed policy to hike U.S. interest rates is close. The Fed last month announced that it will make two interest rate hikes with the minimum 0.25% but this high inflation may push the Fed to make higher than expected rates hike.

At the same time the inflation in the biggest European economy is 2.3% the same as expected and the same as in prior month of year base.
The Germany Consumer Price Index was released earlier today of 2.3% of year base and 0.4% for June the same as expected and prior month too.
For tomorrow (Wednesday July 14th) the most important event is Fed's Chair Powell testifying schedule or 16:00 GMT.

The news for U.S. Consumer prices may strengthen the Dollar in a short term period. Our prediction is to see EURUSD at levels of 1.1600.

[WorldSignals]

New Mexico news dropped the oil price today
The oil price quickly moved down after the release of the news that New Mexico broke oil production records.
"New Mexico broke an oil production record in May, pumping an average 1.22 million barrels daily as the Permian Basin returned to output growth again."
The Oil price dropped about 150 pips after one hour of the news release and is on the way to continue downward direction. The top level of oil price WTI New York was at $76.95 on 6th of July 2021 and since then the trend is down. The huge recovery since July 19th is impossible but temporary we may see levels close to $70 in a few days time.
World-Signals.com trading strategy is to bet into short positions. If you are not into short positions already at levels of $71.50-$72.00 and above you can enter now or wait this level to open short with a target close to $70.00.

[WorldSignals]

Russia's largest gold company is running out of gold
The discoveries of new gold deposits in Russia are much slower than mining, and as a result, the country may face the depletion of precious metal reserves.

Pavel Grachev, CEO of the largest Russian gold mining company Polyus, said this in an interview with RBC. According to him, a critical moment may come in the next few decades.

The current reserves of gold in the country are about 7.5-8 thousand tons, and the production of metal is kept at the level of 330 tons per year. “If this trend is not reversed, then on the horizon of 10-20 years the industry may face a structural shortage of the raw material base,” warned Grachev.

This will not immediately affect the price of gold, which is currently at $ 1761. But in the long run, Russia is an important player in both gold mining and sales. Until 3 years ago, Russia was the main buyer, after which it became one of the largest sellers of gold in the world.

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