Shanghai Composite posted weekly growth of 2.8%

Since the beginning of October the main Shanghai stock index – Shanghai Composite has increased with 2.8%. The lowest level ( - 0.74%) was posted on 17 October at 3041 while the highest value was marked on 25 October at 3132.

During the past week SSEC continued to move upwards and advanced with 0.4%. The first two days of the week the index was rising, while the next days brought slow decline.

The highest daily increase for the week SSEC marked on Monday (1.21%), while the biggest daily drop had on Wednesday (-0.5%). It is important to note that during the past week the People's Bank of China uploaded the financial markets with tens of milliard yuan via weekly repo transactions with commercial banks, which influenced in the direction of lowering the exchange rate of the yuan.

USD/JPY plummeted right after FBI reopenes Clinton’s mail case

Few hours before the end of the week markets tumbled. Only 10 days left to US elections and FBI reopened Clinton’s mail case. The news flashed into the market space and immediately affected the main currencies.

Since the beginning of October USD/JPY was moving higher and reached a 3 week high at 105.52. Last two days the pair is seen in consolidation phase around 105.00 level.

After the FBI story was posted, the pair plummeted and fell from 105.35 to 104.45 for just several minutes. Meanwhile the main indices at Wall Street and the equities also were significantly down. 

This story rocked the market mood, but 10 days is a lot of time. Outside the elections, next week promises to be interesting. High volatility is expected on Wednesday, when Fed and BoJ will declare their solutions on monetary policy.

EUR/USD lower

The freshly released macro data from the USA washed out the great expectations for the EUR/USD pair. The US durable goods orders are down with 1%, the initial jobless claims has fallen by 3000 and the pending home sales increased with only 1,5%.

Following those disappointing numbers, the pair stepped downwards, passed below 1.09 level and marked intraday low at 1.0882.

If we take a look on movement this week, we’ll see that the pair is stuck between 1.0950 and 1.0850 area. Meanwhile the pair is currently placed below the 10, 50 and 200-day moving averaged, which are acting as dynamic resistances. 

The stochastic is showing oversold market and is currently at 23% level.

From a short-term viewpoint supports are placed at 1.0874 (October 26 low), 1.0851 (Oct 25 low). Looking to the upside resistances are seen at 1.0946 (October 26 high) and the psychological level at 1.1000. 

GBP/USD back to 1.22 handle

During Tuesday’'s trading the British pound lost strength against the US dollar, could not meet the positive expectations and plummeted. The pair tested the support, located at 1.2079 and bears didn't’t step lower.

Even being still under pressure today the cable found enough power to recover and returned back to 1.22 mark.

However the bulls attempt to push higher remains fragile amid the shaky market conditions.

RSI is staying within neutral area around 50% and is showing lack of strength. Stochastic is indicating overbought market and is displaying bullish momentum.The pair  finds immediate resistance located at 1.2332 (October 18 and 20 highs) and 1.2471 (October 7 high). Support is placed now at 1.2150 (key level) and 1.2079 (October 11 and 25 lows).  

EUR/USD don't look good

Last week EUR/USD took a walk on mysterious roads, mainly marked by bearish signs. The pair broke below the key support at 1.0910 and bottomed at 1.0858. It was hardly pressured by the monetary policy divergence driven by ECB, while Fed most likely is paving the way for a December rate hike.

The short-term expectations remain bearish. The week started with trading even lower as the common currency nears a seven month low level of 1.0822.

It seems that the will continue falling and is going to test the support area 1.0825 - 00. A clear break and daily close below that area could lead the pair to neutral zone and possibly testing 1.0715 level. Immediate resistance is seen at 1.0910 and in case of clear break and daily close above it , most likely the pair will test the 1.1000 zone.

RSI is showing oversold conditions, the stochastic is placed within extreme values and both confirming bearish conditions.

ActivTrades Webinar: Trading Continuations with a Simple Pattern

Yet another exciting webinar was held yesterday on Trading continuations with a simple pattern, organized by the competitive online broker ActivTrades.

The webinar was led by the professional trader Paul Wallace who spoke on how to trade the continuation of a trend with one simple strategy and profit in the markets.

If you are interested in recognizing trend continuation and are willing to learn how to trade it, you may watch it here!

The forthcoming events promise to be even more exciting!

On 27 October Malte Kaub will talk about "Volatility Trading – Get ready for a bumpy ride".

On 3 November Paul Wallace will discuss the US election on a free webinar “US Elections: Which way will it go?”

And the most attractive, impressive and significant event is the ActivTrades Financial Trading Summit 2016, that will be held on 19 November. The Summit will present various financial experts who will equip you with essential strategies and the trading psychology that you need to start or enhance your trading abilities. You will also have the opportunity to have your technical questions answered and to network with other traders. 

To learn more, follow this link!

EUR/USD ahead of ECB meeting

In the early trading hours today the US dollar was performing slightly stronger against the major rivals, supported by Fed's Beige Book release that indicated clear and definite development for the US economy. In anticipation of the key event today, ECB meeting and Mario Draghi's speech, the EUR/USD is consolidating within a tight range.

It is expected that ECB will keep unchanged its key benchmark interest rates and bond purchase program. Anyway today’s meeting and the following presser will bring increased volatility on markets.

The pair is currently hovering around 1.0950 level, which is an immediate support. If bears strengthen their force, the pair will be sent lower towards next support at 1.0920. Looking to upwards, if the pair struggles to push higher above the current support mark, will face the first resistance located at 1.1065.