Forex analysis review
Forex analysis review |
- Forecast and trading signals for GBP/USD for September 7. Detailed analysis of the movement of the pair and trade deals.
- Forecast and trading signals for EUR/USD on September 7. Detailed analysis of the movement of the pair and trade deals. Another
- Overview of the EUR/USD pair. September 7. Two speeches by Christine Lagarde – the key events of the week
- EUR/USD pair continues its steady growth
- Bitcoin's unconventionally bullish September and key levels towards a historic high
- How to trade the GBP/USD currency pair on September 7? Simple tips for beginners
- Analysis of GBP/USD. September 6. Pound sluggishly declines and prepares for new growth
- Analysis of EUR/USD. September 6. Markets quickly coped with the shock from weak non-farms
- Bloomberg chief strategist Michael McGlone is more confident than ever in the renewal of historical highs by Bitcoin and
- September 6, 2021 : EUR/USD daily technical review and trading opportunities.
- September 6, 2021 : EUR/USD Intraday technical analysis and trading plan.
- September 6, 2021 : GBP/USD Intraday technical analysis and significant key-levels.
- Bitcoin's capitalization to equal gold
- Trading Signal for BITCOIN for September 06 - 07, 2021: Sell below $ 51,800 (61.8%)
- Asian stock indicators show mixed trading
- Market Update for September 06, 2021
- Sharp turn: gold broke the downtrend, jumped to 2-month peak and now is ready to reach $1,850
- USDCHF volatility expected to rise by mid October.
- Short-term technical analysis on Gold for September 6, 2021.
- EUR/JPY: Will the rally continue?
- EURUSD short-term technical analysis.
- Is Bitcoin preparing a major reversal?
- BTC analysis for September 06,.2021 - Agressive sellers and breakout of the consolidation to the downside
- Analysis of Gold for September 06,.2021 - Buying climax in the background and potential for the absorption
- UN: Natural disasters to intensify
| Posted: 06 Sep 2021 07:53 PM PDT GBP/USD 5M
The GBP/USD pair moved with a slight decrease on September 6. The volatility of the pair was about 50 points. For the pound, this is about the same as for the euro currency - 30 points. This is the least amount of volatility. We can say that the pair stood in one place all day. It is good that not a single line or level was worked out or overcome. Otherwise, traders could face scattered trading signals. And all of them would be false, which promised big losses. No single important event or publication in either the UK or the US on Monday, so there was nothing for traders to react to either. Thus, at this time, we can only draw the attention of traders to the fact that the upward trend persists in the long term, and the US dollar is still under pressure from fundamental and technical factors. Recall that NonFarm Payrolls and Federal Reserve Chairman Jerome Powell did not support the dollar, so now the probability of curtailing the QE program following the results of the September meeting of the Fed has greatly decreased. And for the dollar, this was almost the only chance for a new strengthening. Overview of the EUR/USD pair. Two speeches by Christine Lagarde are key events of the week. Review of the GBP/USD pair. Andrew Bailey's speech after a long pause may affect the pound rate. GBP/USD 1H
The GBP/USD pair, as we expected, dropped to the critical line as part of the correction against the upward trend on the hourly timeframe. The pair's quotes continue to be within the rising channel, so the trend has not been canceled. A price rebound from the lower border of the channel or the Kijun-sen line may provoke a resumption of the upward movement with targets at 1.3886 and 1.3921. Moving below the channel will lead to a change in the downward trend. We continue to draw the attention of traders to the most important levels: 1.3747, 1.3785 - 1.3794, 1.3886, 1.3948. Senkou Span B (1.3704) and Kijun-sen (1.3810) lines can also be signal sources. It is recommended to set the Stop Loss level at breakeven when the price passes 20 points in the right direction. The Ichimoku indicator lines can move during the day, which should be taken into account when looking for trading signals. Nothing interesting planned in the UK on September 7. There will be speeches by several members of the Bank of England Monetary Committee, but such events rarely trigger strong moves in the foreign exchange market. Even if Katherine Mann or Michael Saunders report something important, the reaction to it will be weak, and it is completely impossible to predict what Bank of England representatives may say now. Thus, most likely, weak volatile movements await us again today. Markets are likely to focus on the speech of BoE Governor Andrew Bailey, which is scheduled for tomorrow. It is not a fact that we might hear anything important there, but Bailey has not spoken for a long time and the markets have the right to expect important and new information from him. Especially on monetary policy and the possible collapse of QE. We also recommend that you familiarize yourself with the forecast and trading signals for the EUR/USD pair. COT report
The GBP/USD pair gained 35 points during the last reporting week (August 24-30). The most important group of non-commercial traders continues to reduce their net position, and their mood is becoming increasingly bearish. These changes are clearly visible on the indicators in the chart above. The first indicator clearly shows that the green line (net position of the "non-commercial" group) has already gone below the zero level. Simply put, the mood of the major players turned bearish at this point. You can also see that in the last six months the red and green lines (net positions of the "commercial" and "non-commercial" groups) only moved towards each other, which means the end of the current trend (in our case, an upward trend). However, in fact, we still cannot conclude that the upward trend is over, due to too weak a correction against this trend. It is the weakness of the correction over the past six months that does not allow us to conclude that this is the beginning of a new trend, and not just a correction. Thus, major players continue to sell off the pound, while the currency itself could not even go below the target area of 1.3600-1.3666 after three attempts. Therefore, we believe that in the first place in terms of importance remains the factor of infusion of hundreds of billions of dollars into the US economy by the Fed, which ensures the dollar's depreciation in the long run and does not allow it to strengthen too much in the short term. Non-commercial traders closed 2,500 buy contracts (longs) and almost 5,000 sell contracts (shorts) during the reporting week. Thus, the net position even slightly increased, but this does not change the essence of the matter. So far, the major players are bearish, but this does not help the pound/dollar pair to continue moving below 1.3600. Explanations for the chart: Support and Resistance Levels are the levels that serve as targets when buying or selling the pair. You can place Take Profit near these levels. Kijun-sen and Senkou Span B lines are lines of the Ichimoku indicator transferred to the hourly timeframe from the 4-hour one. Support and resistance areas are areas from which the price has repeatedly rebounded off. Yellow lines are trend lines, trend channels and any other technical patterns. Indicator 1 on the COT charts is the size of the net position of each category of traders. Indicator 2 on the COT charts is the size of the net position for the non-commercial group. The material has been provided by InstaForex Company - www.instaforex.com |
| Posted: 06 Sep 2021 07:53 PM PDT EUR/USD 5M
The EUR/USD pair traded extremely weakly during the first trading day of the new week. It passed around 30 points from the high to the low. This is absolutely minuscule and it is almost impossible to trade with such intraday movements. Thus, to our great regret, we can only wait for the movements to become stronger. Theoretically, macroeconomic reports and important fundamental events can help. But, as practice shows, even with an abundance of both the first and the second, a strong movement is by no means guaranteed (last Friday). Not a single important macroeconomic report was published, and no trading signal generated. Quotes did not even approach any extreme level. The movement had a minimum bias, but what to do with it, if the pair passed about 30 points in half? Thus, the upward trend continues for the EUR/USD pair and we expect the upward trend to resume. But at this rate, it will be formed for another six months. Overview of the EUR/USD pair. Two speeches by Christine Lagarde are key events of the week. Review of the GBP/USD pair. Andrew Bailey's speech after a long pause may affect the pound rate. EUR/USD 1H
The euro/dollar pair, as expected yesterday, dropped to the critical line and to the area of the lower border of the rising channel on the hourly timeframe. Thus, from a technical point of view, now is a great opportunity to resume the upward movement with the 1.1922 target. Unfortunately, the movements remain very weak, so it can take several days to achieve this goal. Consolidating below the channel will indicate a change in trend to a downward trend. On Tuesday, we continue to draw the attention of traders to important levels and lines - 1.1797, 1.1857, 1.1894, 1.1922, as well as the Senkou Span B (1.1754) and Kijun-sen (1.1851) lines. The Ichimoku indicator lines can change their position during the day, which should be taken into account when looking for trading signals. Signals can be rebounds or breakthroughs of these levels and lines. Do not forget about placing a Stop Loss order at breakeven if the price moves 15-20 points in the right direction. This will protect you against possible losses if the signal turns out to be false. Not a single important macroeconomic report scheduled in the European Union and the United States on September 7. The EU will publish its third quarter GDP report for the second quarter, but we do not believe there will be any market reaction to it. We still advise traders not to leave their computers when this report is published, but there is very little hope for a strong movement. The situation with the fundamental background will not change in any way on Wednesday, so the next two days the EUR/USD pair may continue to be in the weakest movement. Perhaps even sideways. We also recommend that you familiarize yourself with the forecast and trading signals for the GBP/USD pair. COT report
The EUR/USD pair increased by 50 points during the last reporting week (August 24-30). However, despite the fact that the European currency has been growing for two weeks now, the Commitment of Traders (COT) reports continue to signal a reduction in the net position of non-commercial traders, which can only indicate a weakening of the bullish sentiment. The net position of the "non-commercial" group has already dropped to almost zero, which means almost complete equality in the number of open contracts for longs (buying) and shorts (selling) of big players. If we draw the most banal conclusion, then the major players are now looking towards selling the euro. But, as we have already said many times, during such a serious weakening of the bullish sentiment, the EUR/USD pair dropped only 600 points. Recall that the entire upward trend is valued at 1,700 points. So for now, we can only draw the same conclusion as before: big players may be inclined to sell off the euro, but the cash infusions from the Federal Reserve, which have not yet stopped, continue to level the imbalance in supply and demand for the European currency. Simply put, the Fed continues to inject hundreds of billions of dollars into the economy, corny increasing the supply of the dollar in the foreign exchange market and provoking a rise in inflation. Therefore, commercial players can sell off the euro, but the money supply of the dollar is growing at about the same rate (or even more), which leads to a very modest fall of the euro against the dollar, which can end at any moment. The "non-commercial" group opened 11,000 new contacts for shorts during the reporting week, and the total number of Buy and Sell contracts is now in the ratio of 192.5 thousand - 180.5 thousand. Explanations for the chart: Support and Resistance Levels are the levels that serve as targets when buying or selling the pair. You can place Take Profit near these levels. Kijun-sen and Senkou Span B lines are lines of the Ichimoku indicator transferred to the hourly timeframe from the 4-hour one. Support and resistance areas are areas from which the price has repeatedly rebounded off. Yellow lines are trend lines, trend channels and any other technical patterns. Indicator 1 on the COT charts is the size of the net position of each category of traders. Indicator 2 on the COT charts is the size of the net position for the non-commercial group. The material has been provided by InstaForex Company - www.instaforex.com |
| Posted: 06 Sep 2021 07:50 PM PDT 4-hour timeframe
Technical details: Higher linear regression channel: direction - downward. Lower linear regression channel: direction - upward. Moving average (20; smoothed) - upward. CCI: 52.0788 The EUR/USD currency pair was trading more than calmly on Monday. However, there is absolutely nothing surprising since the pair has been in this rhythm for several months. The illustration below clearly shows that the lion's share of all trading days ends with a volatility of 50 or fewer points. Thus, in general, the current movement can only be called very weak. From a technical point of view, the pair's quotes continue to be located above the moving average line. Therefore, traders have the right to expect the continued strengthening of the European currency. We also remind you that the last two most important events – the speech of Jerome Powell in Jackson Hole and the publication of the Nonfarm Payrolls report – did not change anything in the fundamental background. Jerome Powell made it clear that he is not going to rush to curtail the QE program. The Nonfarm report showed that after two months of almost a million growth, there was a decline, which may also be associated with the spread of the "coronavirus" and its new strains, against which existing vaccines show much less effectiveness. Thus, in the coming months, the US economy may begin to slow down in its recovery. If so, there will be much less reason for the Fed to start curtailing incentives than now or a couple of weeks ago. In general, at this time, everything will depend on how serious the Fed's monetary committee members are about tightening monetary policy. And this, in turn, will depend on inflation, which will be published on September 14. If we assume that the consumer price index will continue to accelerate in the US and reach 30-year highs, this will again create pressure on the Fed. However, if inflation starts to slow down, it will mean that Jerome Powell was right when he said that a strong price increase is a temporary phenomenon. Thus, this factor will put less and less pressure on the Fed. Monetary injections into the American economy can be maintained to continue to stimulate the labor market's recovery. This week promises to be much more boring in macroeconomic terms than the previous one. However, several significant events are still planned. Let's go through them. The GDP indicator for the second quarter will be published today in the third assessment in the European Union. It is expected that the GDP value will not differ from the previous two estimates and will be 2.0% y/y. Therefore, there is no reason to assume that the markets will react strongly to this report. On Wednesday, the calendar of events in the European Union is empty. On Thursday, the results of the next ECB meeting will be summed up, which have recently turned out to be highly boring and "passing." The key rate will not be changed. The PEPP program is planned until the end of March 2022, and, given the low pace of recovery of the European economy, it is unlikely to be completed earlier than this date. So, by and large, all the attention is on the performance of Christine Lagarde, who has not performed in public for a very long time. We haven't heard her for more than a month, although she usually performs consistently once a week. All her recent comments indicated that the European economy is still far from full recovery, so now there can be no question of an early curtailment of the PEPP program, a reduction in its volumes, or an increase in rates. Thus, the rhetoric of the ECB and Christine Lagarde personally remains "ultra-deep," and the only question that the markets will have to answer this Thursday is whether Lagarde's rhetoric will not increase at least a little? The euro may gain an additional advantage over the dollar if this happens, although there are no prerequisites for this. Christine Lagarde is also scheduled to speak in the European Union on Friday. Thus, the last two days of the working week will be marked by these events. All the macroeconomic statistics of the week for the United States will be discussed in the article on the pound/dollar. It should also be noted here that the main thing now is not even the direction the euro/dollar pair is moving. The main thing now is the speed at which the movement continues. We have repeatedly stated that if the pair continues to pass from a minimum to a maximum of 30 to 50 points per day, then intraday trading and earning will not work. It will be necessary to increase the timing of each transaction significantly.
The volatility of the euro/dollar currency pair as of September 7 is 45 points and is characterized as "low." Thus, we expect the pair to move today between the levels of 1.1823 and 1.1913. The upward reversal of the Heiken Ashi indicator signals a possible resumption of the upward movement. Nearest support levels: S1 – 1.1841 S2 – 1.1810 S3 – 1.1780 Nearest resistance levels: R1 – 1.1871 R2 – 1.1902 R3 – 1.1932 Trading recommendations: The EUR/USD pair has started to adjust. Thus, today, we should consider new long positions with targets of 1.1902 and 1.1913 after the reversal of the Heiken Ashi indicator up. Sales of the pair will be possible if the pair is fixed back below the moving average line with targets of 1.1810 and 1.1780, and they should be kept open until the Heiken Ashi indicator turns up. The material has been provided by InstaForex Company - www.instaforex.com |
| EUR/USD pair continues its steady growth Posted: 06 Sep 2021 07:30 PM PDT The EUR/USD pair continues its upward movement. The closing of trading last week occurred near the August high. So, the probability of continuing the upward impulse has increased. Yesterday was a public holiday in the United States. This does not allow us to look at the closing level of trading as a determining one. Today will show the direction of trading for the current week. To continue the growth, it will be necessary that the closing level of trading is higher than yesterday's opening. This will allow us to keep the purchases opened yesterday. The test of Weekly Control Zone 1/4 1.1865-1.1861 made it possible to buy the instrument. The first target is the September high.
The upward movement will remain an impulse until the daily level absorption model is formed. Any decline can be considered as an opportunity to buy the EUR/USD pair. But if one is trying to look for sales in a growing market, then be prepared for multiple maximum updates and a significant increase in the risk of losses. The material has been provided by InstaForex Company - www.instaforex.com |
| Bitcoin's unconventionally bullish September and key levels towards a historic high Posted: 06 Sep 2021 05:00 PM PDT September is considered a bearish month in the cryptocurrency market. But, September started very well this year. The main cryptocurrency has consolidated above $ 50,000 per coin, which leaves a chance for continued growth. The Sunday afternoon candle broke through the upper limit of the side range of 46299.48 - 50513.53 and reached the next resistance zone of 52000.18 - 52929.55 today, which has not yet been broken through. Santiment's analysts note that one of the triggers of this price impulse could be an increase in interest in altcoins. Over the weekend, Ethereum rose to $ 4,000, while Litecoin soared to $ 230. If we compare the first and second cryptocurrencies, Bitcoin has added about 121% since the beginning of the year, while Ethereum has grown by 312%. The second reason for the continued growth of bitcoin is probably the decrease in the activity of short positions of crypto-whales. According to CryptoQuant, cryptocurrency whales on the Bitfinex exchange currently do not open a large number of short positions. The growth of shorts was observed during the period when bitcoin grew from $ 33,000 to $ 40,000. But now, when the main cryptocurrency has risen above $ 51,000, the number of downside transactions has remained small. Meanwhile, Mike McGlone, senior commodities strategist at Bloomberg, released a September cryptocurrency outlook report. He stated that crypto companies are managing to keep the market under control. At the same time, he sees the target for Bitcoin as $ 100,000 and revised the target for the second cryptocurrency from $ 4,000 to $ 5,000. McGlone believes that the cryptocurrency has already passed the period of hype and speculation. Now the market is growing because of the " revolution in money and finance, which occurs in the first days of the opening of prices." Assessing the prospects of the first and second cryptocurrencies, McGlone calls Bitcoin a "store of value" and Ethereum "the building block of DeFi." The strategist calls Bitcoin lagging behind Ethereum, so the main cryptocurrency is likely to be used as a global reserve asset. In his opinion, it is "no one's responsibility or a project", which probably means that it cannot be manipulated or destroyed due to the widespread use of the network. Therefore, McGlone predicts that Bitcoin, along with the US dollar, can become the world's reserve digital asset. In turn, Ethereum has a different perspective. The Bloomberg analyst refers to the recent network update, which helps to reduce the supply, thereby supporting the growth of the second cryptocurrency. Also, the growing popularity of NFC, which mainly uses the Ethereum blockchain, and DeFi will play into the hands of Ethereum. As we can see, the future looks optimistic. In this case, the local targets will be as follows:
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| How to trade the GBP/USD currency pair on September 7? Simple tips for beginners Posted: 06 Sep 2021 02:27 PM PDT Analysis of previous deals: 30M chart of the EUR/USD pair
The GBP/USD pair corrected within the upward trend on the 30-minute timeframe on Monday, which continues to be supported by the upward channel. Thus, a price rebound from the lower boundary of this channel or the level of 1.3796 may provoke a resumption of the upward movement. Unfortunately, the pair continues to move in a very weak manner, as in the case of the euro/dollar. Therefore, the traditionally more volatile pound/dollar pair is also very difficult to trade at this time. For example, today no trading signals were generated on either the 30-minute timeframe or the 5-minute timeframe. Moreover, this situation is repeated quite often. The problem is that, along with the fall in volatility, the number of generated signals has also greatly decreased. If six months ago, 3-4 strong signals were formed every day, which needed to be worked out absolutely accurately, now it is 1-2 signals a day. And even then not every day. 5M chart of the EUR/USD pair
The pair was correcting on the 5-minute timeframe, and not a single trading signal was formed during the day. Thus, by and large, there is nothing to analyze. The quotes approached the level of 1.3816 only by the end of the trading day, but never worked it out. And in any case, it is not recommended to open a position in the evening, since at night there is almost always a flat or very weak movement. At this time and during the day, either a flat or a weak movement is almost always observed. Therefore, you should not have opened any transaction during the day. How to trade on Tuesday: At this time, the pound/dollar pair is in an upward channel on the 30-minute timeframe,, so we advise beginners to look closely at buy signals from the MACD indicator. However, volatility is very weak even for the pound/dollar pair, so it is still better to wait for the movement to intensify before trading according to the MACD indicator signals. But a rebound from the level of 1.3796 or the lower channel line can be used as a buy signal, and overcoming these obstacles can be used as a sell signal. The important levels on the 5-minute timeframe are 1.3796, 1.3816, 1.3874, 1.3891. We recommend trading with them. The price can bounce off them or overcome them. As before, we set Take Profit at a distance of 40-50 points. At the 5M TF, you can use all the nearest levels as targets, but then you need to take profit, taking into account the strength of the movement. When passing 20 points in the right direction, we recommend setting Stop Loss to breakeven. There are no major publications or events scheduled for Tuesday in the UK and the US. Thus, volatility may remain very weak tomorrow. On the chart: Support and Resistance Levels are the Levels that serve as targets when buying or selling the pair. You can place Take Profit near these levels. Red lines are the channels or trend lines that display the current trend and show in which direction it is better to trade now. The MACD indicator consists of a histogram and a signal line. When they cross, this is a signal to enter the market. It is recommended to use this indicator in combination with trend lines (channels and trend lines). Important speeches and reports (always contained in the news calendar) can greatly influence the movement of a currency pair. Therefore, during their exit, it is recommended to trade as carefully as possible or exit the market in order to avoid a sharp price reversal against the previous movement. Beginners on Forex should remember that not every single trade has to be profitable. The development of a clear strategy and money management are the key to success in trading over a long period of time. The material has been provided by InstaForex Company - www.instaforex.com |
| Analysis of GBP/USD. September 6. Pound sluggishly declines and prepares for new growth Posted: 06 Sep 2021 02:26 PM PDT
For the pound/dollar instrument, the wave counting at this time still looks quite convincing and does not require any additions and adjustments. Supposed waves a, b and c of the supposed upward trend segment are quite extended. Nevertheless, the wave counting itself is beyond doubt. An unsuccessful attempt to break through the 1.3873 mark, which equates to 23.6% Fibonacci, indicates that the quotes could possibly leave the highs it reached, but it is unlikely to complete the construction of the wave c itself, which should take on a much longer form than it is now. If the current wave counting is correct, then the rise in quotes should continue to at least 1.3980 (peak of wave a). Thus, I am expecting a breakthrough of 1.3873 and a further rise in quotes in the direction of the January peaks. At this time, there is still no reason to assume the complication of the current wave counting. An upward trend can take on a three-wave or a five-wave form. It is precisely the nature of the waves that it already differs from several previous ones. All waves in it are much more extended. The pound/dollar instrument fell 35 basis points on Monday. I hardly need to specify that this is a very weak movement. Today the markets were devoid of interesting events. In the UK, only the PMI for the construction sector came out, which fell from 58.7 points to 55.2 in August. Thus, the pound could come under a little pressure because of this report. However, it started to fall at night and continued to do so throughout the day. The PMI report could only slightly affect this movement. Otherwise, there was nothing interesting during the day. Even the speech of Catherine L. Mann, a newly minted member of the Bank of England, who replaced Gertjan Vlieghe, did not give anything new to the markets. Mann and her colleague Michael Saunders will deliver another speech on Tuesday. Now it is important to understand how the balance of power among the members of the Bank of England's monetary committee will change. Let me remind you that at the last meetings, only one member of the committee voted in favor of reducing the program to stimulate the economy. And he has already left the committee. However, with the arrival of new board members, the number of economists who support the phasing out of asset purchases from the market may increase. Thus, as in the United States, the most acute issue now is the BoE's attitude and its members in relation to monetary policy. There is even a feeling that the markets are waiting for specifics from both central banks and until that time are not ready to trade actively as before. The wave pattern is now more or less clear. I still expect to build an upward wave, so at this time I propose to consider buying the instrument for each MACD signal "up" with targets located around 1.4000 (the first target). The instrument has supposedly completed the construction of the downward wave b and is ready to continue rising.
The upward part of the trend, which began its construction a couple of months ago, has taken on a rather ambiguous form and has already been completed. A new part of the trend may acquire an impulsive form, its first wave acquired a rather extended form and exceeded the peaks of waves b and d. The chances of another sharp increase in quotes are growing. If the news background does not interfere, then the quotes should continue to rise in the near future. The material has been provided by InstaForex Company - www.instaforex.com |
| Analysis of EUR/USD. September 6. Markets quickly coped with the shock from weak non-farms Posted: 06 Sep 2021 02:26 PM PDT
The wave counting for the euro/dollar instrument on the 4-hour chart remains unchanged. The instrument still passes no more than 50 points per day and moves, while in the last two non-wave counting of the 4-hour chart for the euro/dollar instrument remains unchanged. The instrument still passes no more than 50 points per day and in the last two weeks, it moves only in one direction - up. Over the past eleven days, the instrument has gained about 230 basis points, which gives strong grounds to assume the completion of the construction of the downward trend. Its internal wave counting looks quite convincing, which also allows for its completion. So, in my opinion, at this time, the construction of a new upward trend section of the trend has begun and continues, which can also turn out to be corrective, that is, three-wave. If this assumption is correct, then the first wave can turn out to be quite extended, and the final target of the entire structure will lie near the high of the previous uptrend section, that is, near the level of 1.2266. I do not consider the variant with the complication of the descending set of waves. Deal only in one direction - up. Over the past eleven days, the instrument has gained about 230 basis points, which gives strong grounds to assume the completion of the construction of the downward trend. Its internal wave counting looks quite convincing, which also allows for its completion. So, in my opinion, at this time, the construction of a new upward trend section of the trend has begun and continues, which can also turn out to be corrective, that is, three-wave. If this assumption is correct, then the first wave can turn out to be quite extended, and the final target of the entire structure will lie near the high of the previous uptrend section, that is, near the level of 1.2266. I am not considering the variant with the complication of the descending wave set. There was no news background for the euro/dollar instrument on Monday. Nothing interesting either in the United States or in the eurozone. The markets have absorbed this and broadcast it to the foreign exchange market. As a result, the euro/dollar instrument produced a magnitude of 15 basis points. However, such low activity from the markets has not been surprising for a long time. The tool has taught us in recent months that you can expect serious movement once a week, not more often. All other days, regardless of the news background, pass at a range of 15-20 basis points. This level of activity of the markets does not affect the wave picture in any way, however, the potential amounts of profit on transactions become much smaller. The dollar quickly digested the negative Nonfarm Payrolls report, which was released on Friday, and on Monday it was already growing in value. However, as I said, all price changes are really minimal. This week the European Union will host a meeting of the European Central Bank, as well as a speech by ECB President Christine Lagarde. These are the most important events of this week, so now the markets will be waiting for them. That is, it will be possible to expect an increase in market activity not earlier than Thursday. Nothing interesting in America this week. There are no preconditions for the beginning of the formation of a correctional wave b at this time. Everything is as quiet, calm and boring as possible. Based on the analysis carried out, I conclude that the construction of the descending section could have been completed around 1.1704, which equates to 100.0% Fibonacci. Therefore, now I am still waiting for the formation of an upward set of waves. There are no signs of the resumption and complication of the construction of the downward trend at the moment, so I still recommend buying the instrument with targets located near 1.1965 and 1.2027, which corresponds to 50.0% and 61.8% Fibonacci for each signal MACD is up. The unsuccessful attempt to break through the 1.1895 mark, which corresponds to 38.2% Fibonacci, indicates that the markets are ready for small short positions, building wave b. Therefore, I recommend renewing long positions above this mark.
Major scale wave counting looks quite convincing. We see three three wave sections of the trend, which are approximately the same in size. However, the last part of the trend quite unexpectedly took on a more complex form, but at the same time it ended in the same place as the previous three-wave part. The material has been provided by InstaForex Company - www.instaforex.com |
| Posted: 06 Sep 2021 02:26 PM PDT
Bloomberg senior commodity strategist Michael Mcglone released a September report the other day, in which he shared his views on cryptocurrencies and their regulation. McGlone looks very positively at the two main mastodons of the crypto market, namely bitcoin and ethereum. The report mentions that the growth of the main crypto assets is associated not just with some artificial speculation and artificial hype, but it was preceded by a revolution in finance and digital money, which can now be observed. Michael McGlone said: "Bitcoin is the main accumulative tool for saving your savings, and ethereum is the main building block of Defi." However, it can be observed that the chief strategist of Bloomberg is more sympathetic to ethereum than to bitcoin. He complains that an important proof-of-stake update will be released soon, which will contribute to the accelerated growth of ethereum, as well as demand from institutions. McGlone could not miss Defi, he mentions the defi revolution and that this sensitive issue was not mentioned in the recent US bill on infrastructure that is directly related to cryptocurrencies. The other day, there was a debate in the US Congress, where very important factors were not discussed, namely, the financial digital revolution, crypto assets that storm entire countries and contribute to improving the well-being of people. McGlone believes that bitcoin is technically lagging behind ethereum, however, according to him, digital gold can become a global reserve asset after the dollar for every country on this planet. It cannot be destroyed, it cannot be manipulated, and it certainly will have to be reckoned with by any power in this world. Also in the report, you can see notes that there will be a restructuring soon, in which the dollar will work directly with bitcoin. The material has been provided by InstaForex Company - www.instaforex.com |
| September 6, 2021 : EUR/USD daily technical review and trading opportunities. Posted: 06 Sep 2021 09:54 AM PDT
Recently, Persistence below the depicted price zone of 1.1990 indicated further downside movement towards 1.1840 and 1.1780 where a sideway consolidation range was established. During last week, the EURUSD pair has been trapped within a narrow consolidation range between the price levels of 1.1780 and 1.1840. A bullish breakout was executed above 1.1840 shortly after. Temporary Upside pullback was expected towards 1.1990. However, re-closure below the price level of 1.1840 has initiated another downside movement towards 1.1780 which failed to hold prices for a short period of time before significant upside movement was presented into market. Intraday traders were advised to wait for candlestick closure above 1.1780 - 1.1840 for another ascending swing to be initiated. This has just happened a few days ago. Currently, the price zone around 1.1840 remains a prominent demand-zone to be watched for BUYING pressure and a possible BUY Entry if any downsid pullback occurs. Initial targets are expected to be projected towards 1.1910 and 1.1990. The material has been provided by InstaForex Company - www.instaforex.com |
| September 6, 2021 : EUR/USD Intraday technical analysis and trading plan. Posted: 06 Sep 2021 09:52 AM PDT
Bearish persistence below the price zone of 1.2050-1.2000 allowed the current short-term downtrend to be established. Initial bearish targets were located around 1.1940 then 1.1800 which offered some bullish rejection for sometime before another bearish movement could take place towards 1.1770 and 1.1700. So, the EURUSD pair has been moving downwards within the depicted bearish channel while the price level of 1.1780 stood as a prominent demand level that prevented further bearish decline. The bullish pressure that originated around 1.1780 failed to push higher than the price level of 1.1900. That's why, another bearish pullback towards 1.1700 was being executed. Bullish signs were expected around the current price levels of 1.1700-1.1730 as it corresponded to the backside of the broken channel. A bullish reversal pattern similar to double-bottom seems to be in progress. That's why, Bullish breakout above 1.1830 (pattern neckline) was needed to enhance the bullish side of the market and enable further bullish advancement towards 1.1900 and 1.1970. Any upcoming bullish pullback towards 1.1985 should be considered for bearish rejection and a valid SELL Entry. The material has been provided by InstaForex Company - www.instaforex.com |
| September 6, 2021 : GBP/USD Intraday technical analysis and significant key-levels. Posted: 06 Sep 2021 09:51 AM PDT
Since March, the GBPUSD pair has been moving sideways within a wide consolidation range extending between 1.3670 up to 1.4250 which acted as a prominent SUPPLY that prevented further bullish advancement. On the other hand , the GBPUSD pair has been contained above the demand level of (1.3660) a few times while Bearish breakout below 1.3600 was needed to enhance further bearish decline. Recently, Failure to maintain bearish pressure below 1.3670 (100% Fibonacci Level) has enhanced another bullish movement for retesting of the price level of 1.3880. Further bullish advancement was to be expected towards 1.4025. On the other hand, the nearest SUPPLY level is located around 1.4025 where bearish rejection and a valid SELL Entry should be anticipated. That's why, the pair remained trapped between the mentioned key-levels (1.3800 and 1.4025) until recent temporary bearish breakout occurred last week. Bearish breakout below 1.3800 enabled temporary bearish decline towards 1.3600 while the price level of 1.3520 was expected to be reached if sufficient bearish pressure was maintained. Unfortunately, this seemed to be a bearish trap. The recent bullish rejection witnessed around 1.3600 as well as the Current bullish breakout above 1.3800 will indicate this bullish movement to bypass the price level of 1.3880 toward 1.4100. The material has been provided by InstaForex Company - www.instaforex.com |
| Bitcoin's capitalization to equal gold Posted: 06 Sep 2021 08:05 AM PDT
Bitcoin reached the $52,153 mark during Monday's trading. Thus, we can say with confidence that the next milestone has been taken, and the upward trend continues. In previous articles, we have already talked about the fact that bitcoin continues to grow, and there are already few who can now name the reasons for this growth. Bitcoin grows simply because it is being bought. Thus, it seems that despite all the expectations of many experts about a long correction and consolidation, bitcoin may well resume its upward trend and update its all-time highs this year. At least at this time, everything is going exactly to this. We still believe that bitcoin is growing because new tax legislation may be enacted in the United States soon, which will greatly reduce the attractiveness of bitcoin as an investment asset. However, this may have been the initial reason why bitcoin started to rise from the $30,000 level. Now it can continue to grow because the "hamsters" have returned to the cryptocurrency market, who again felt profit and easy money and joined the trend "buy bitcoin because it is growing." At the same time, billionaire Bill Miller's foundation published a report, which says that bitcoin is only in the initial stages of human adoption and implementation in all spheres of human life. Bitcoin will soon have to catch up with gold in terms of capitalization. The report said that bitcoin remains quite volatile, but its risk-reward ratio remains attractive to many investors. Also, the Miller Opportunity Trust believes that the bitcoin capitalization will grow to $11 trillion (this is how much all gold on Earth is estimated at this time). Earlier, Bill Miller stated that bitcoin is not a "bubble", but its high volatility is a payment for the benefits it gives to its owners. The head of Miller Opportunity Trust also noted that the supply of bitcoin is increasing by 2% per year, and the demand is growing much faster. which means a further increase in the value of bitcoin. Thus, in the long term, the growth of bitcoin is likely to continue, but in the short term, a new round of decline in value is absolutely possible. As a reminder, JP Morgan analysts warn their clients that bitcoin may fall soon. Note that to identify the beginning of the fall, you should wait for specific and clear technical signals. So far, there are none, so there is no point in trying to sell bitcoin when it is at local highs. The material has been provided by InstaForex Company - www.instaforex.com |
| Trading Signal for BITCOIN for September 06 - 07, 2021: Sell below $ 51,800 (61.8%) Posted: 06 Sep 2021 07:03 AM PDT
Bitcoin in daily charts is trading around 61.8% Fibonacci, a key level that could mean the beginning of a reversal and change in trend in the medium term. For this, the price should consolidate below this level. BTC has reached around 52,000 after having found strong support around the 200 EMA located at 45,900. It has twice tested this support and finally made a good technical bounce that brought it to these current trading levels. Bitcoin price started its uptrend after falling below the $ 30,000 barrier on July 20. Since then, BTC has risen approximately 78%. Now it is above the psychological level of $50,000. If it continues with the uptrend, it could reach the +2/8 level of murray located at 56,250 in the next few days. While the general trend remains bullish and unchanged, investors should take into account that BTC is entering an overbought level, as the murray indicator has indicated 53,125 and 56,250 as extreme overbought levels with an imminent technical correction. Because BTC is at the 61.8% Fibonacci level and above this level there is strong resistance, we believe we have a good selling opportunity below this level with targets at 47,150 (50.0%) and 43,500 (38.2%). Our outlook will be bearish as long as BTC trades below 52,000, all the way to the 6/8 murray level located at 43,750, as the current price could be a bubble and a sharp drop could occur, just like what happened on May 19 So, we must be very careful. The eagle indicator on daily charts is about to reach the overbought zone. Support and Resistance Levels for September 06 - 07, 2021 Resistance (3) 54,591 Resistance (2) 53,335 Resistance (1) 52,346 ---------------------------- Support (1) 49,878 Support (2) 48,621 Support (3) 47,856 *********************************************************** Trading tip for BTC for September 06 - 07, 2021 Sell below 51,800 (61.8%), with take profit at 47,830 and 43,750 (6/8), stop loss above 53,000 The material has been provided by InstaForex Company - www.instaforex.com |
| Asian stock indicators show mixed trading Posted: 06 Sep 2021 06:50 AM PDT
The APT analysis unveiled that on Monday, stock indices showed mixed trading. Some of the indices surged, whereas others dropped. Thus, Japan's Nikkei 225 added 1,85%, Shanghai Composite rose by 1.12%, Hang Seng Index increased by 0.92%, whereas South Korea's KOSPI and Australian S&P/ASX 200 lost 0.05% and 0.18% respectively. The positive investor' sentiment was caused by several factors. According to the report from the US Labor Department, in August, the number of jobs advanced by 235 thousand. At the same time, the unemployment level dropped to 5.2% from 5.4% in July. Notably, the labor market situation is the main indicator of the country's economy for the Fed to decide on the further stance of the monetary policy. Analysts suppose that the Fed may decide to start closing the stimulus programs a bit later. Analysts also suppose that the surge in the Japanese stock index could be triggered by the news about a new prime minister. It is assumed that the new prime minister will take incentive measures to restore the Japanese economy from the effects of the pandemic. Investors also hope that the high rates of vaccination will eventually reduce the existing restrictions in the country. Nippon Yusen K.K. and Kawasaki Kisen Kaisha Ltd. Showed the best performance in the Japanese stock market. The shares of the company advanced by 9.3% and 8.9% respectively. At the same time, the Chinese indices were boosted by the information that the People's Bank of China decided to support small and medium businesses allocating 300 billion yuan in banks. According to experts, the central bank will continue to stimulate the country's economy in various ways due to the low pace of economic recovery, among which there may be a decrease in the reserve rate. BYD Co. Ltd. (+5,2%) and Geely Automobile Holdings Ltd. (+1%), as well as Tencent Holdings Ltd. (+3,5%), Industrial & Commercial Bank of China Ltd. (+1,2%), and Bank of China Ltd. (+1,1%) were among the leaders. Despite the fact that the South Korean indicator showed a decline, shares of Samsung Electronics Co., one of the largest Korean companies, showed an increase of 0.5%, while the share price of the car manufacturer, Hyundai Motor, fell by 0.2%. At the same time, the decline in the Australian indicator could be explained by the fact that the number of job ads in the country decreased by 2.5% over the last month of the summer. Notably, analysts expect even a greater decline in employment, especially in the regions where there are restrictive measures against the spread of COVID-19. Experts suggest that the unemployment rate in Australia may rise to 5% or even higher. The shares of Australian Oil Search Ltd fell by 3.3%, whereas shares of mining companies BHP and Rio Tinto lost 3.3% and 1%, respectively. The material has been provided by InstaForex Company - www.instaforex.com |
| Market Update for September 06, 2021 Posted: 06 Sep 2021 06:40 AM PDT Watch for the reversion to the mean type of trades and change in direction relative to previous week... The material has been provided by InstaForex Company - www.instaforex.com |
| Sharp turn: gold broke the downtrend, jumped to 2-month peak and now is ready to reach $1,850 Posted: 06 Sep 2021 06:30 AM PDT
The precious metal traded sluggish and mainly bearish last week, but it closed the week with gains, rising sharply and breaking the resistance at $1,830. Gold rallied for the second Friday in a row. Gold quotations gained 1.4% on August 27 and 1.2% a week later. During the trading on September 3, the raise was worth $22.20. That resulted in the yellow metal passing $1,830 key level to its highest reading at $1,833.70 since June 16. The precious metal gained 0.8% over the week, marking its fourth weekly gain in a row. Though overall, the gold was sluggish over the period, except Friday. The metal price was held back by uncertainty. The market was expecting the release of the US non-farm payrolls data for August. The statistics were published at the end of the week. The report was weaker than supposed. Economists had expected the employment to jump by 720,000 jobs, while in reality the reading increased only by 235,000 jobs. Analysts explained the sharp drop in hiring rates by the increasing cases of COVID-19 delta variant and fears of a new coronavirus wave. Naeem Aslam, chief market analyst at AvaTrade noted that the US labor market had a long way to recover from the pandemic losses. This means that the US Fed had another good reason for postponing the process of winding down asset purchases. Investors took the negative statistics as a signal to keep the current monetary policy. As a result, the dollar index fell by 0.1% to its lowest level at 91.94 since August 4. The greenback ended the week down 0.6%. This factor increased the appeal of gold as a safe-haven asset, which had a positive effect on its pricing. On Friday quotations soared above the psychologically important level of $1,830. Analysts believe that reaching more than 2-month high opens new prospects for the metal. They think the support of the 200-day moving average at $1,809 retains the gold's bullish potential. Now that bullion has formed a solid base above $1,800, it will be approaching a new high. Experts emphasize that the next important target for gold is testing the $1,850 level. The Fed's dovish position may push up the asset. It will result in pressure on the dollar. Meanwhile, on Monday morning the gold slightly dropped from a 2-month peak as part of the correction. The yellow asset was trading below $1,830, while the US currency, on the other hand, was trying to rebound and the US 10-year bond yield rose to about 1.326%.
Notably, experts do not expect any higher volatility today, as the US and Canadian markets will be closed on the occasion of Labor Day. Moreover, specialists do not expect any significant volatility in the next few days as well. Everything will be decided again on Friday, when the next important statistics will be due. This time investors expect the US producer price index release for August. The material has been provided by InstaForex Company - www.instaforex.com |
| USDCHF volatility expected to rise by mid October. Posted: 06 Sep 2021 06:01 AM PDT USDCHF is trading sideways in a triangle pattern. Price is so far respecting the triangle boundaries. In the weekly chart we see that there is room for more sideways movement inside the triangle until mid October. This is the latest date we expect volatility to rise and thus provide a break out in USDCHF.
The weekly chart as shown above has formed a triangle pattern. The upper boundary is at 0.9215 while the lower boundary is at 0.9085. A weekly break out of these boundaries will provide a trading signal and will bring increase in volatility. Cautious traders would prefer to wait for price to make the break out before taking action. More aggressive traders would prefer to buy near the lower triangle boundary and go short near the upper boundary. The material has been provided by InstaForex Company - www.instaforex.com |
| Short-term technical analysis on Gold for September 6, 2021. Posted: 06 Sep 2021 05:55 AM PDT Gold price last week reached the major resistance at $1,833. Price got rejected and is pulling back. It is important for the longer-term trend for bulls to break above $1,833 as this would be a major bullish signal. Until then price remains vulnerable.
Blue line- horizontal resistance Gold price has stopped its advance at the horizontal resistance of $1,833. Bulls need to break above this horizontal resistance level in order to continue higher towards our $1,855-60 target area. Price continues making higher highs and higher lows. Failure to stay above $1,800 will be a sign of reversal. This is not something bulls want to see.
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| EUR/JPY: Will the rally continue? Posted: 06 Sep 2021 05:51 AM PDT Until recently, the Bank of Japan and the ECB were the last in line to normalize monetary policy. Few expected them to start curtailing monetary stimulus. However, the improvement in the epidemiological situation in the eurozone, the rapid recovery of its economy, and most importantly, the acceleration of inflation to maximum levels since 2011 allowed the officials of the European Central Bank to talk about a decrease in monthly asset purchases under the emergency program by €1.85 trillion. As a result, EUR/JPY quotes jumped to the very peak since mid-July. Will the rally continue? The answer to this question is largely up to Christine Lagarde. In any case, the pair deservedly claims to be the most interesting on Forex this week by September 10. There is indeed a lot in common between the eurozone and Japan. And it's not just about monetary policy. In autumn, parliamentary elections will be held in Germany and Japan. At the same time, the departure of Prime Ministers Angela Merkel and Yoshihide Suga from their posts further unites the regions. The victory of the German Greens, who are pushing for more fiscal stimulus, and reformist former Foreign Minister Taro Kono, could re-energize capital flows to Europe and Asia while strengthening the euro and the yen. By the way, the Japanese yen, along with the Norwegian krone, is the most undervalued G10 currency based on the real effective exchange rate. Deviation of G10 Currency Rates from Fair Value
Large banks look at the political factor differently. Bank of America believes that electoral uncertainty, growing mergers, and acquisitions, and the creation of a fund to fund university research on COVID-19, which will lead to a negative underlying balance of payments, will drive USD/JPY quotes towards 116. JP Morgan, by contrast, advocates the strengthening of the yen against the US dollar due to the reluctance of Japanese investors to place money outside the country and an increase in demand from non-residents for shares and bonds issued in Japan. Whatever it was, the further fate of EUR/JPY will be decided by the ECB and the American securities market. The growth of the euro for two weeks in a row is due to expectations of a decrease in the volume of monthly asset purchases within the framework of the PEPP, however, there is no talk of curtailing monetary incentives. And if Christine Lagarde emphasized this fact at a press conference following the results of the September meeting of the Governing Council, a sale of the pair may begin against the background of profit taking on longs. Ultimately, both the European Central Bank and the Bank of Japan remain ultra-soft. Dynamics of the balance sheet of the Bank of Japan
A weak report on US employment allowed the leading indicator from the Atlanta Federal Reserve to reduce the forecast of US GDP growth for the third quarter to less than 4%. The factor of strong corporate profits has already been played back, and if there are problems with the adoption of fiscal incentives from Joe Biden by Congress, the S&P 500 will finally go to correction. This will be good news for the yen. Technically, the EUR/JPY rebound from the resistances at 130.9 and 131.9 is a reason to sell the pair. EUR/JPY, Daily chart
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| EURUSD short-term technical analysis. Posted: 06 Sep 2021 05:40 AM PDT EURUSD reached our target of 1.19 by making a high at 1.1909. As we mentioned in our last EURUSD analysis, a pull back from current levels was justified. Price has pulled back towards 1.1855, without breaking out of the bullish channel.
Blue lines - Fibonacci retracements Black line- bullish channel EURUSD continues trading inside the bullish channel. Trend remains bullish. Price continues to respect the channel boundaries. Price got rejected at the 38% Fibonacci retracement which was our initial bounce target. Breaking below and out of the channel is justified in order to make a bigger pull back towards 1.18-1.1750. Breaking above the 38% Fibonacci retracement and staying above it, is key for price to continue higher towards 1.1965. The material has been provided by InstaForex Company - www.instaforex.com |
| Is Bitcoin preparing a major reversal? Posted: 06 Sep 2021 05:34 AM PDT Calling a move in Bitcoin that will eventually push price below $29,000 is a very bald call. But how probable is it? So far Bitcoin remains in a bullish up trend after a double bottom around $29,000 price level. Technically there is no reversal signal yet. However there are some signs that traders should not ignore.
Blue lines - bearish divergence As expected from our last Bitcoin analysis, price is moving closer towards the $52,000 price level. The RSI is not following price to new highs. The RSI has provided another bearish divergence. This is a warning that the up trend is weakening. Price is also trading around the 61.8% Fibonacci retracement of the entire decline. In Elliott wave terms there are increased chances of this upward move from $29,000 is a wave C of wave 2, in other words, the final part of a counter trend move and a new impulsive move down should start soon, that will eventually bring price below $29,000. This scenario should not be ignored as there are more than 30% chances of this happening. For now bulls remain in control of the trend. If price starts to turn around, we will have more information on how probable the bearish scenario will be. The material has been provided by InstaForex Company - www.instaforex.com |
| Posted: 06 Sep 2021 05:01 AM PDT Technical analysis:
BTC has been trading downside. There is the breakout of the contraction with aggressive sellers in the background. Trading recommendation: Watch for selling opportunities due to the breakout of the consolidation. Downside targets are set at the price of $4,670 and $48,500 Stochastic oscillator is showing bearish divergence and overbought condition, which is sign that downside movement is very possible.... The material has been provided by InstaForex Company - www.instaforex.com |
| Posted: 06 Sep 2021 04:53 AM PDT Technical analysis:
Buying climax in the background and potential for the bigger drop in the next period. Trading recommendation: Due to buying climax in the background, there is potential for the downside rotation and potential absorption. Watch for selling opportunities with the downside targets at $1,817, $1,814 and $1,805. Key resistance is set at the price of $1,832 The material has been provided by InstaForex Company - www.instaforex.com |
| UN: Natural disasters to intensify Posted: 06 Sep 2021 04:51 AM PDT
The UN Intergovernmental Panel on Climate Change (IPCC), in its report on climate change on Earth, argues that humanity has virtually no chance of avoiding the natural disasters that have recently hit various regions. The largest were the 1983 drought in Ethiopia, which killed 300,000 people, and Hurricane Katrina, the most devastating hurricane in history, which swept across the US in 2005. The most recent natural disasters include widespread flooding in Germany and Hurricane Ida in the United States. One cannot but mention the extensive fires that engulfed millions of hectares of forest in Russia, Turkey, the U.S., and Brazil this summer. It has become obvious that the average temperatures on Earth are rising very rapidly. The last five years have been the hottest in the history of weather monitoring. Such temperatures were last recorded back in 1850. It is widely accepted that the major problem of climate change lies in human activity. According to experts, transport, energy, and production industries emit about 40 billion tons of carbon dioxide into the atmosphere. These emissions and their aftermath reduce the efficiency of food chains in the world ocean. UN experts said that today the global average temperature is about 1.1 degrees Celsius higher than at the end of the XIX century, and this average will exceed 1.5 degrees Celsius in the next 20 years. Europe may also expect a bleak outlook. The Greenland glaciers, which are already actively melting, will never be able to return to their former state, so the destabilization of the European ice sheet is unavoidable. Scientifically speaking, our planet is approaching a slowing of the Atlantic meridional overturning circulation (AMOC), which brings extreme climate conditions for Europe. Winter storms, severe summer droughts, and abnormal heat waves are likely to occur with increasing frequency. Dozens of small island states may be submerged due to rising sea levels. For example, the state of Kiribati in the Pacific Ocean is in the most dangerous location. According to the IPCC report, a water rise of just 0.9 m will flood two-thirds of the country's territory by the end of this century. The UN also reported that the global average temperature has risen by 1.23 degrees Celsius over the last 170 years, which is the highest temperature in 125,000 years! Today, the situation is only getting worse and nobody is safe anymore. UN Environment Program Executive Director Inger Andersen has urged all governments to develop plans to achieve zero emissions. The Paris Agreement is proof that almost all countries in the world have recognized the climate threat and agreed to combat it. More than 200 states intend to reach a "zero carbon footprint" by 2050. However, only the EU has legally bound its intention with a document according to which by 2030 harmful emissions on its territory must be reduced by 55% (compared to 1990). For this purpose, the EU countries will soon introduce a carbon tax, a ban on the sale of cars with gasoline engines, and emissions taxes for airlines and maritime carriers. Such large countries as the US and China pollute the Earth the most. They emit half of the world's carbon dioxide. Under Donald Trump's presidency, the US withdrew from the Paris Agreement but returns under Joe Biden. The 46th President emphasizes environmental issues. According to his decree, by 2030 at least 50% of cars produced in the US must be equipped with electric power systems. The new White House administration intends to establish new standards for vehicle emissions in the country. Speaking of which, the US is going to spend $3.5 trillion to combat climate change. Russia and Japan to jointly combat climate change The 6th Eastern Economic Forum started on September 2 on Russky Island in Vladivostok. For the last three years, the event has become the largest international platform to foster cooperation and strengthen business relations between Russian Far East and Asia-Pacific business communities. The Forum discusses the prospects of the Russian labor market, the current state of small businesses in the Far East, and the tourism sector. The participants of the event also touched upon the burning issue of climate change in the light of recent natural disasters. The negotiations resulted in Russia and Japan deciding to join forces to curb global warming and to cooperate closely on alternative fuel production and the control of harmful substances. Russia and Japan are planning to produce environmentally friendly analogs of the familiar fuel, in particular hydrogen and "green" ammonia. Hydrogen is important in oil refining; ammonia will be used for fertilizers and industrial materials. These two substances, which are now the focus of attention, are to replace high-carbon energy sources. And Japan has already switched from natural gas to hydrogen and replaced coal with ammonia. The development of technologies that can help reduce carbon dioxide emissions, such as carbon capture and storage systems (CCS) and carbon capture and utilization units (CCU), is also seen as important. Japan has stated that it plans to stop emitting carbon dioxide by 2050. At the same time, the Japanese government intends to increase its demand for ammonia, namely up to 3 million tons per year by 2030. Currently, there is no ammonia capacity in the country. As for Russia, by 2030 it also intends to reduce its carbon dioxide emissions by 70% (compared to 1990). However, Russian representatives have not yet announced an updated plan to achieve these goals. At the same time, President Vladimir Putin pledged at the Forum that Russia will definitely outperform the European Union in reducing emissions and make the country climate-friendly in the next 20 years. The material has been provided by InstaForex Company - www.instaforex.com |
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