Forex analysis review |
- August 20, 2019 : EUR/USD Intraday technical analysis and trade recommendations.
- August 20, 2019 : GBP/USD Intraday technical analysis and trade recommendations.
- GBP/USD. August 20th. The results of the day. Boris Johnson gave the European Union a chance to solve Brexit amicably
- EUR/USD. August 20th. The results of the day. Donald Trump is preparing for a trade war with the European Union
- GBP/USD. Johnson and Tusk exchanged "courtesies", but the pound is still dangerous to sell
- BTC 08.20.2019 - potential long term bear cycle in the play
- Why is the dollar growing?
- Mirror of Bitcoin: in the short term – stagnation, in the long term – growth
- EUR/USD for August 20,2019 - Strong rejection of the support
- EUR/USD: the aggravation of contradictions between Germany and Italy may lead to the collapse of the eurozone
- Gold 08.20.2019 - Broken downward channel and new bullish momentum
- GBP/USD: plan for the American session on August 20. Bears keep the market under their control
- Overbought Swiss franc may face some losses
- Dollar index is eyeing 99.15 but with glaring weekly bearish divergence signs.
- Gold price inside trading range
- EUR / USD plan for the American session on August 20: German data did not help euro buyers and the goal remains the level
- Brent rejoices in the thaw
- Technical analysis of AUD/USD for August 20, 2019
- RBA mirrors the real monetary policy of the world Central Banks (We expect a local decrease in EUR/USD and GBP/USD pairs)
- Trading recommendations for the GBPUSD currency pair - placement of trade orders (August 20)
- Trading plan for EUR / USD and GBP / USD pairs on 08/20/2019
- Control zones for USD/CAD pair on 08/19/19
- EUR and GBP: The good news for the pound is over. Data on the eurozone clearly indicate lower interest rates by the ECB
- Warning signs as USD/JPY fails to break resistance
- Simplified wave analysis and forecast for GBP/USD and USD/JPY on August 20
| August 20, 2019 : EUR/USD Intraday technical analysis and trade recommendations. Posted: 20 Aug 2019 11:53 AM PDT
Back in June 24, the EURUSD looked overbought around 1.1400 facing a confluence of supply levels. In the period between 8 - 22 July, sideway consolidation-range was established between 1.1200 - 1.1275 until a triple-top reversal pattern was demonstrated around the upper limit. Shortly after, evident bearish momentum (bearish engulfing H4 candlestick) could bring the EURUSD back below 1.1175. This facilitated further bearish decline towards 1.1115 (Previous Weekly Low) where temporary bullish rejection was demonstrated before bearish breakdown could take place on July 31. On July 31, Temporary Bearish breakdown below 1.1115 allowed further bearish decline towards 1.1025 (lower limit of the depicted recent bearish channel) where significant signs of bullish recovery were demonstrated. Risky traders were advised to look for bullish persistence above 1.1050 as a bullish signal for Intraday BUY entry with bullish target projected towards 1.1115, 1.1175 and 1.1235. Two weeks ago, the depicted Key-Zone around 1.1235 has been standing as a prominent Supply Area where THREE Bearish Engulfing H4 candlesticks were demonstrated. Thus, the EUR/USD was trapped between 1.1235-1.1175 for a few trading sessions until bearish breakout below 1.1175 occurred on August 14. Bearish breakout below 1.1175 promoted further bearish decline towards 1.1075 where the backside of the broken bearish channel has been providing significant bullish demand so far (A Bullish Double-Bottom pattern is in progress). A quick bullish breakout above 1.1115 is needed to confirm the short-term trend reversal into bullish. This would enhance further bullish advancement towards 1.1175. Trade recommendations : Conservative traders were advised to have a valid BUY entry anywhere around 1.1070 (where the backside of the broken bearish channel is located). It's running in profits now. Initial T/P levels should be located around 1.1130, 1.1175 and 1.1200. S/L should be placed just below 1.1020. The material has been provided by InstaForex Company - www.instaforex.com |
| August 20, 2019 : GBP/USD Intraday technical analysis and trade recommendations. Posted: 20 Aug 2019 11:40 AM PDT Since May 17, the previous downside movement within the depicted bearish channel came to a pause allowing the recent sideway consolidation range to be established between 1.2750 - 1.2550. On July 5, a bearish range breakout was demonstrated below 1.2550 (the lower limit of the depicted consolidation range). Hence, quick bearish decline was demonstrated towards the price zone of 1.2430-1.2385 (the lower limit of the movement channel) which failed to provide consistent bullish demand for the GBP/USD. Moreover, Bearish breakdown below 1.2350 facilitated further bearish decline towards 1.2320, 1.2270 and 1.2100 which correspond to significant key-levels on the Weekly chart. The current price levels are quite risky/low for having new SELL entries. That's why, Previous SELLERS were advised to have their profits gathered. Two weeks ago, temporary signs of bullish recovery were demonstrated around 1.2100 before Friday when another bearish movement could be demonstrated towards 1.2025. Recent bullish recovery was demonstrated off the recent bottom (1.2025). This brought the GBP/USD pair back towards 1.2100 (recently-established SUPPLY Level). Further bullish advancement is expected to be demonstrated towards 1.2230 then 1.2320 if the current bullish momentum above 1.2100 is maintained on adaily basis. Trade Recommendations: Intraday traders were advised to look for early bullish breakout above 1.2100 then above 1.2230 for counter-trend BUY entries. Conservative traders should wait for bullish pullback to pursue towards 1.2320 - 1.2350 for new valid SELL entries. S/L should be placed above 1.2430. Initial T/P level to be placed around 1.2279 and 1.2130. The material has been provided by InstaForex Company - www.instaforex.com |
| Posted: 20 Aug 2019 08:11 AM PDT 4-hour timeframe The amplitude of the last 5 days (high-low): 56p – 56p – 100p – 100p – 68p. The average amplitude over the last 5 days: 76p (81p). Boris Johnson took a step towards the European Union, but he did not really propose any constructive measures. In a letter to Donald Tusk, President of the European Council, Johnson only focused on the impossibility of satisfying the EU's conditions on the rigid border between Northern Ireland and Ireland and offered to find an alternative to the so-called "backstop". Johnson did not put forward any proposals, and he did not say who should look for an alternative. So, we think Johnson tried to kill two birds with one stone with this move. Firstly, in the eyes of the media and the public, to once again become a leader who wants to come to an agreement with the EU amicably in order to avoid the "hard" Brexit. And secondly, it takes a step towards Brussels, hoping that the EU will nevertheless give up the weakness and be afraid of the "hard" Brexit, especially in the light of a possible trade war with the States (read "Donald Trump"). However, we believe that such a step will not have any positive effect, and the fate of Johnson and Brexit will be decided in early September when parliamentarians return from their vacations. That is when the question of a vote of no confidence in Johnson will be on the agenda, and then everything will depend on whether this vote will gain enough votes of support. If he does, Johnson will have to resign. If not, Johnson will remain at the helm, and the opponents of Brexit will need to look for other ways to prevent economic disaster. The pound sterling, meanwhile, made a breakthrough of 50 points up in the US trading session on Tuesday, but the bulls lost interest and the pound/dollar pair rolled back. In general, despite the fact that bears do not attack in the last week, there is no question of any upward trend. It seems that the forex market is just waiting for the next negative messages from the Kingdom to calmly resume the sale of the pound. Trading recommendations: The pound/dollar currency pair continues its upward correction. Thus, formally, the purchase of the GBP/USD pair with the target of 1.2196 is formally relevant now, but the volume of transactions should be minimal. We believe that there are still no fundamental factors for a strong pound appreciation. In addition to the technical picture, fundamental data and the time of their release should also be taken into account. Explanation of illustration: Ichimoku Indicator: Tenkan-Sen – red line. Kijun-Sen – blue line. Senkou Span A – light brown dotted line. Senkou Span B – light purple dotted line. Chinkou Span – green line. Bollinger Bands Indicator: 3 yellow lines. MACD Indicator: A red line and a histogram with white bars in the indicator window. The material has been provided by InstaForex Company - www.instaforex.com |
| Posted: 20 Aug 2019 08:11 AM PDT 4-hour timeframe The amplitude of the last 5 days(high-low): 59p – 60p – 68p – 47p – 38p. The average amplitude over the last 5 days: 54p (61p). On Tuesday, August 20, the EUR/USD pair failed to update the local lows, which is good news for the European currency. No important and significant macroeconomic reports in the European Union and the States have been published today. Thus, traders of the foreign exchange market were on a "starvation ration" today. However, even on the day when no macroeconomic publications were planned, the euro "caught" the negative. It's all about Donald Trump, who simply cannot safely conduct international trade. At first, China was accused of "unfair treatment of America", which resulted in a full-scale trade war for it. Then the same accusation was made against the European Union. It seems that it is quite difficult to fight on two fronts and Trump decided to postpone the introduction of duties on the products of the EU engineering industry until November. However, Trump said yesterday that the European Union is even worse than China, implying that Brussels has introduced too high taxes, duties, and tariffs on American imports while imports of European products to the United States exceed exports by 83 billion dollars. According to Trump, this is the injustice and it seems that in November, duties will be imposed against the European Union. If China's duties are an unpleasant event, but the economy of a huge country can freely wait out the period until the next election in America, hoping that the new president will not be Trump, then for the EU economy, Trump's duties can become a few nails in the coffin. The ECB is already thinking about lowering rates despite the fact that they are negative, as well as the resuscitation of the quantitative easing program. If there is a trade war with the States, all indicators, GDP, inflation, industrial production, will collapse down. Given the fact that these figures are still showing a negative trend, the situation may become much worse by November. Well, the euro can easily fall to parity with the US dollar under the new Trump's indignation that the European Union specifically lowers the euro, and Jerome Powell does not want to cut rates so that the US dollar does not go up. Trading recommendations: The EUR/USD pair continues to move down. Thus, it is recommended to continue trading on the fall of the euro/dollar pair with a target of 1.1027. The bearish mood in the market remains, but the reversal of the MACD indicator upward will indicate the turn of the corrective movement. Buying the euro is now impractical, there are no signs of completion of the downward trend. In addition to the technical picture, fundamental data and the time of their release should also be taken into account. Explanation of illustration: Ichimoku Indicator: Tenkan-Sen – red line. Kijun-Sen – blue line. Senkou Span A – light brown dotted line. Senkou Span B – light purple dotted line. Chinkou Span – green line. Bollinger Bands Indicator: 3 yellow lines. MACD Indicator: A red line and a histogram with white bars in the indicator window. The material has been provided by InstaForex Company - www.instaforex.com |
| GBP/USD. Johnson and Tusk exchanged "courtesies", but the pound is still dangerous to sell Posted: 20 Aug 2019 07:58 AM PDT The pound paired with the dollar "plunged" into the 20th figure today, responding to correspondence skirmish of Johnson and Tusk. The parties are, in fact, useless and knowingly losing dialogue that only annoys market participants. London and Brussels will not yield to each other in key issues, and the problem of Brexit at this stage cannot be solved "bloodlessly". By and large, there are only two scenarios: either the prolongation of the negotiation process or the withdrawal of Britain from the EU without any agreements. With the current British Prime Minister and the current composition of the British House of Commons, there are simply no other options. Theresa May's almost three-year attempts to find a common denominator in the triangle "Brussels-British Parliament-Cabinet of Ministers" were unsuccessful – and this fact serves as an additional confirmation of this assumption.
Today's increased volatility on the GBP/USD pair (after a completely phlegmatic Monday) was provoked by a letter from Boris Johnson to the President of the European Council Donald Tusk. In his written address, he proposed to Brussels to revise the provisions of the agreement already agreed between the European Union and the government of Theresa May – first of all, the part that concerns the issue of the border between Ireland and Northern Ireland. Johnson reiterated the repeatedly voiced position on backstop – in his opinion, this mechanism is "incompatible with the sovereignty of the United Kingdom as a state." After all, if London agrees to the terms of Brussels, then part of the territory of the UK, in fact, will comply with the rules of the European Customs Union. He also recalled that the British Parliament rejected the proposed deal three times, and the backstop was a key issue in this context. Summing up a fairly lengthy appeal, Johnson urged the Europeans to reconsider this point of the transaction and proposed to the end of the transition period to adopt "alternative agreements" (the essence of which he did not voice), which in the future may become part of the "great trade agreement" between the EU and Britain. At various stages of the negotiation process, Theresa May have repeatedly proposed similar ideas – but they were rejected, not only by Brussels but also by the British Parliament. Therefore, it is not surprising that the same reaction followed today – at least from the European Union. In particular, the President of the European Council Donald Tusk reiterated that the European Union will not revise the agreement today – including in terms of the backstop. Also, Reuters reporters were able to familiarize themselves with the full text of a written response from the European Council to Johnson. According to insider information, EU member states are "deeply concerned" by the fact that the British Prime Minister offers no concrete alternative as a replacement for the above-mentioned mechanism. Also, the Europeans once again reiterated their unchanged thesis that the EU countries consider the backstop mechanism to be "necessary and legally correct" decision. Although there was nothing new for the market in this correspondence, the pound reacted to this news with a slight decrease – paired with the dollar, it fell to the level of 1.2063. However, the correspondence skirmish of politicians had a weak impact on the traders of the GBP/USD pair. After a short decline, the pair returned to the borders of the 21st figure, actually freezing in the flat. The voiced idea of Johnson was too predictable, as well as Tusk's reaction – so the fundamental picture for the pound, in general, has not changed. It is obvious that the British Prime Minister makes rather formal proposals to Brussels: having received the same formal response (refusal), he can further defend the idea of "hard" Brexit in Parliament. All of Johnson's steps are preparatory actions for the main political confrontation, which will begin very soon – in September. That is why the traders of the pair are very skeptical about such letters, appeals, statements. The most important question of Brexit is whether the deputies of the House of Commons will allow Johnson to implement the "hard" scenario or block it, obliging the government to extend the negotiation process with Brussels? This is followed by plot branches (a vote of no confidence, the creation of a government of national unity, early elections, etc.), but initially, there are only two possible options. It is worth noting that the Labor leader today called on Jeremy Corbyn to support his supporters the idea of early termination of the parliamentary holidays to prevent the country from leaving the European Union without a deal. And although the political season in Britain officially begins very soon – on September 3 – this fact suggests that the opposition is set to fight Johnson very seriously. Moreover, many centrist conservatives (who have opposed and are opposed to "hard" Brexit) can support their political opponents in such circumstances. Thus, short positions on the GBP/USD pair look quite risky. Those factors that exerted strong pressure on the pound a few months ago, almost "do not work". Traders are waiting for the main political events of autumn, so they are not in a hurry to open large positions. Today's price dynamics serves as an additional proof of this. The material has been provided by InstaForex Company - www.instaforex.com |
| BTC 08.20.2019 - potential long term bear cycle in the play Posted: 20 Aug 2019 07:52 AM PDT Industry news: The Veritaseum blockchain platform and its founder Reggie Middleton have filed a response to the U.S. Securities and Exchange Commission (SEC) over the regulator's claim that its ICO was fraudulent and illegal, and that Middleton had later manipulated the VERI token's value. As a result, the SEC managed to get a New York court last week to temporarily freeze the assets of the project – which describes itself as a "gateway to peer-to-peer capital markets" Technical view:
From the weekly time-frame prospective, BTC is trading inside of the trading range between the price of $12,275(high) and $9,000 (low).The high from June at $14,000 is holding well for 9 weeks and it is a warning for the further upside. I see potential for more downside. Blue rectangles – Major resistance ($14,00) Purple horizontal line – Support 1 ($9,095) Green rectangle – Support 2 ($6,755) Blue lines – Pitchfork channels There is a successful test and reject of the Pitchfork upward channel and stagnation for 9weeks, which is for me sign of the potential more downside. My advice is to watch for shorting opportunity here with targets at $9,095 and $6,755 as long as the BTC is trading below the $14,000. The material has been provided by InstaForex Company - www.instaforex.com |
| Posted: 20 Aug 2019 07:46 AM PDT The US currency increases the profit as a rebound in the yield of treasuries. The dollar index is trading near three-week peaks. Since the markets are overly enthusiastic about the pace of the expected rate reduction of the US Federal Reserve, the "American" risks to rise even higher. This will happen if the speech of Jerome Powell at Jackson Hole on Friday will not be enough "dovish". The appreciation of the dollar is likely to exacerbate Donald Trump. The appetites of the owner of the White House are growing the day before he demanded the Fed rate cuts by 100 basis points. As you know, the US President blames the rebellious Fed that the national currency does not want to decline. Is that the case? Many global strategists have their point of view on this matter. Real profitability suggests that the dollar is supported by investors who fear a trade war. Thus, the US currency this year has risen in price against seven of the ten main competitors. The exchange rate growth occurred although the premium on the yield of Treasury securities adjusted for inflation compared to the debt markets of other countries has decreased since November. The estimated 10-year real yield in the US slipped from its November peak by more than a percentage point to 0.03%. This is due to the easing of the Fed's monetary policy amid restrained inflation expectations. Financial markets fully estimate a further 1% reduction in interest rates in America by the end of next year. Since the beginning of August, the dollar index has risen to the highest level in the last two years, as traders and investors tried to find shelter in the currencies of the "safe haven" and gold. Markets are extremely concerned about the fact that the endless US-China trade dispute could lead to a recession in the world economy. The dollar remains expensive, and this is quite normal, since Washington, in the person of Donald Trump, is waging a trade war with economies that have a surplus with the US, and make the "strong American economy even stronger," strategists write. Investors have high hopes for the symposium and the G-7 summit on Friday. Activities, in their opinion, should clarify the prospects for interest rates in the United States and the consequences of a trade war. What if markets don't get what they want? There are several signs that the Fed will take another dramatic step. For example, the head of the Fed of Boston, Eric Rosengren, who opposed the rate cut at the July meeting, made it clear that he was still not ready to support a freer monetary policy. The official also expressed confidence that the slowdown in global trade and the growth of the global economy will greatly harm the US economy. Since all the attention of the markets is now focused on the speeches of Central Bank officials, they are likely to have to speak about the inversion of the yield curve. Although officials may reject the importance of this event. Given that Washington accused Beijing of currency manipulation, representatives of the Central Bank should warn about the risks associated with the currency war. The currency war is undoubtedly a continuation of the trade war. However, there is a big risk that it will end with the growth of public debt and rapid inflation, as it was in the 1970s. The material has been provided by InstaForex Company - www.instaforex.com |
| Mirror of Bitcoin: in the short term – stagnation, in the long term – growth Posted: 20 Aug 2019 07:46 AM PDT
Most experts, predicting the dynamics of bitcoin in the long term, tend to continue the "bullish" trend. In the short term, the No. 1 cryptocurrency expects a small rise, but stagnation is more likely, analysts say. The beginning of this week "encouraged" the main digital asset: experts recorded another wave of growth. On Monday, August 19, the price of Bitcoin reached $10800, an increase of $1000. The catalyst for the rise was the announcement of the launch date of futures contracts of the platform Bakkt. Some analysts believe that in the near future, bitcoin will be able to gain a foothold in the market of institutional investors. However, other experts believe that the arrival of institutional investors does not mean increased pressure on the side of buyers. According to cryptocurrency strategist Ayash Jindal, BTC will rise to the level of $11000 in the near future. However, in case of falling below $10600, there will be risks of collapse to $10200 and to the next support levels – $10000 and $9800. A number of analysts assume that the current growth of bitcoin is a short-term phenomenon since technical indicators are not on the side of "bulls". However, according to crypto-enthusiast Alex Kruger, the long-term forecast for Bitcoin is "bullish", and the key support level is $ 9000. According to the analyst, a breakthrough at this level will lead to a rapid drop in BTC to $8500. "In 2020 or 2021, bitcoin will overcome the bar of $20,000. After that, it can quickly rise to $30,000, $40,000 and $50,000," A. Kruger sums up. Currently, investors are re-accumulating the No. 1 cryptocurrency, after major players took profits near the mark of $14000. According to Tom Lee, an expert of Fundstrat Global Advisors, bitcoin will significantly increase in price by the end of this year. The analyst does not exclude updates of the historical maximum. In the last few weeks, the digital asset has established itself as a "safe haven", says Tom Lee. He is sure that bitcoin can be called a safe asset, with which it is easy to survive the crisis in the world market. Some analysts believe that the dynamics of bitcoin resembles a mirror. On the one hand, it is visible growth, and on the other side – a constant balancing between the fall and rise. The material has been provided by InstaForex Company - www.instaforex.com |
| EUR/USD for August 20,2019 - Strong rejection of the support Posted: 20 Aug 2019 07:23 AM PDT Important news: German Chancellor Merkel On Backstop; Says We Will 'Think About Practical Solutions' - Britain Must Decide 'Which Way It Goes', We Have Made Our Offer To Work Closely Technical view:
EUR did fake breakout of the swing low at the price of 1.1066 and strong rejection, which is sign for me that there is high chance for further upside. EUR is trading inside of the trading range between the price of 1.066 (support) and 1.1117 (resistance). Blue rectangles – Range boundaries Yellow rectangle – Resistance Gold gave us a buy signal after the fake breakout of the support (1.1066).Now EUR is trying to back towards the top of the range (1.1117), which is the chance for us to position ourselves on the upside. There was a divergence on the MACD oscillator, which is one of the reasons of the upside momentum. As long as the EUR is trading above the 1.1066, watch for buying opportunities with the targets at 1.1114 and 1.1132. The material has been provided by InstaForex Company - www.instaforex.com |
| Posted: 20 Aug 2019 07:17 AM PDT
Perhaps, even in his wildest dreams, Donald Trump, who unleashed a trade war with China, could hardly imagine that it could provoke the collapse of the eurozone. The fact that the German economy, dependent on exports and external demand, was on the verge of a technical recession, forced German politicians to talk about the need to increase public spending. In particular, German Finance Minister Olaf Scholz said that the country can use a package of fiscal incentives in the amount of €50 billion, as was the case after the financial crisis of 2008. It is noteworthy that Italy feels no better than Germany, but it cannot afford to increase government spending due to the strict requirements of the EU to the budget deficit. Although there is no talk of leaving the eurozone of the third-largest economy of the currency bloc, it is unknown what can happen. In the second quarter, the German GDP lost 0.1%, and the Bundesbank expects that the rate of decline will remain modest, but it does not add optimism to investors. The reason for the recession in the German economy was a sharp decline in exports and industrial production. Despite the fact that in the second quarter, the negative impact of these factors partially offset the growth of household and state spending, the German Central Bank is not sure that the positive drivers of GDP will be sustainable. The decline in German exports illustrates the adverse effects of the US-China trade war, and the negative effects of the duties already imposed have yet to be fully manifested, with the risk of further escalation of the conflict remaining. Additional problems for the German economy are created by the deterioration of the situation in the automotive sector, and one of the key risks is the UK's disordered exit from the EU, which will be painful not only for the country but also for the entire Alliance. It is assumed that if Berlin does not change the course of its monetary policy, the ECB will have to introduce more extensive measures to stimulate the economy. Moreover, if the European regulator resumes the program of buying government bonds, the euro may suffer. Meanwhile, in Italy, the Five Star movement, which has broken the bonds of friendship with the North League, has almost agreed with the Democrats to create a new coalition. The country is preparing to issue a vote of no confidence in Prime Minister Giuseppe Conte and hold early elections, which will certainly raise issues of EU budget restrictions and tax cuts – extremely painful topics for the euro. As for the United States, it continues to reap the benefits of its own protectionism. The head of the White House blames the fact that greenback stubbornly does not want to weaken, the Fed, which has not expressed a desire to continue to lower interest rates. However, according to experts, the reasons for the strengthening of the US currency lie in the trade war unleashed by Trump between Washington and Beijing. In August, the USD index rose to its highest level in the last two years, as investors sought protection in safe-haven assets amid growing fears that the US and China trade dispute could lead to a global recession. "It is natural that the dollar remains strong. D. Trump is waging a trade war with the economies that have a surplus with the US and make the US economy even stronger," MUFJ strategists said. It is expected that the ECB will strengthen stimulus measures next month, and the data on business activity in the eurozone, which will be released this week, will be weak, so the risks for EUR/USD remain downward. If the pair falls below the support level of 1.1065, the chances of updating the August low may increase. The material has been provided by InstaForex Company - www.instaforex.com |
| Gold 08.20.2019 - Broken downward channel and new bullish momentum Posted: 20 Aug 2019 06:49 AM PDT Gold did break out downward channel and confirmed the new money from on the upside. The level of $1,503 is very important for the Gold and it is key intraday support. I expect further upside.
Red lines – broken downward channel Magneta rectangle – Key support Yellow rectangle – Resistance and target 1 Blue rectangle – Resistance and target 2 Gold gave us a buy signal after breaking above $1,503 and it is confirming the breakout by successful testing of 20SMA (middle Bollinger line). Now Gold could trade higher towards $1,515 and $1,526. ADX reading well above 30 level and increase of momentum on the MACD oscillator isvery strong sings for the underlying bullish condition. As long as the Gold is trading above $1,493, I would watch for buying positions on the pullbacks. The material has been provided by InstaForex Company - www.instaforex.com |
| GBP/USD: plan for the American session on August 20. Bears keep the market under their control Posted: 20 Aug 2019 06:16 AM PDT To open long positions on GBP/USD, you need: Buyers of the pound tried to stay above the support of 1.2085, which I paid attention to in my morning review, but it was broken after a repeated test. At the moment, the situation remains on the side of the sellers. Bulls need a breakthrough and consolidation above the resistance of 1.2116, which coincides with the moving averages. Only after this can we expect a second wave of growth to the maximum of 1.2153 and update the resistance of 1.2187, where I recommend taking the profit. If the GBP/USD pair continues to decline, it is best to look at the long positions on the rebound from the large support level of 1.2045. To open short positions on GBP/USD, you need: The situation with Brexit continues to put pressure on the British pound, and the planned meetings of the British Prime Minister with EU representatives this week are unlikely to be held in a "friendly" atmosphere. Sellers need to form a false breakdown in the resistance area of 1.2116, which was formed today in the first half of the day, and their main goal will be to update the large support level of 1.2044, above which the pair held out for the entire second half of last week. If the resistance of 1.2116 is broken, it is best to count on short positions on a rebound from a maximum of 1.2153. Indicator signals: Moving Averages Trading is below 30 and 50 moving averages, which indicates the bearish nature of the market. Bollinger Bands Short positions can be returned after updating the average border of the indicator in the area of 1.2125.
Description of indicators
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| Overbought Swiss franc may face some losses Posted: 20 Aug 2019 06:13 AM PDT
After falling to the low at 0.9670 on August 13, USD/CHF has rallied to the 0.9800 area on Tuesday with EUR/CHF finding support below 1.0850. Swiss sight deposits data released on Monday recorded a CHF3.8bn increase, the sharpest weekly rise since March 2017. The data indicated that the National Bank had been intervening to curb franc strength and probably stepped-up efforts as risk appetite deteriorated. The tendency of central banks to loosen monetary policy will help to underpin risk conditions and limit demand for defensive currencies. The Swiss franc will strengthen when global market fears intensify, especially if US-China trade relations worsen further. The ECB will also launch a fresh monetary-stimulus program in the September policy meeting. European political concerns, such as tensions around the Italian government and on-going Brexit stresses, will provide support for the Swiss currency. The National Bank is, however, expected to hold its own policy meeting a week after the ECB and is likely to repeat any ECB rate cut. The recent bond-market extremes indicate that risk assets have been oversold and may partially recover. President Trump took fright at the latest swoon on Wall Street, so his rhetoric is likely to be more supportive towards risk appetite in the short term. Overall, near-term Swiss franc demand is likely to fade slightly amid the global economic issues. The material has been provided by InstaForex Company - www.instaforex.com |
| Dollar index is eyeing 99.15 but with glaring weekly bearish divergence signs. Posted: 20 Aug 2019 06:11 AM PDT The Dollar index is moving to new highs and towards major resistance area. There are important bearish divergence warning signs for bulls.
Green rectangle - short-term target I believe upside potential is limited for the Dollar index. Price could continue higher towards 99-99.20 but I believe this upward move will be short-lived. The RSI is approaching the black resistance trend line. Each new high in price is not followed by new high in the RSI. This is not a bearish signal but just a warning to bulls in order to be cautious. That is why I expect price to move towards 99 and then reverse. The material has been provided by InstaForex Company - www.instaforex.com |
| Gold price inside trading range Posted: 20 Aug 2019 06:08 AM PDT Gold price continues to trade around the critical $1,500 price level with no clear direction or trend. Price is trapped inside a trading range.
Green rectangles - trading range boundaries Gold price is trading around the $1,500 level. Price is mostly moving sideways the last few days and inside the trading range of $1,533 and $1,480. Breaking either of the two boundaries will produce a new multi week trend in our opinion. Respecting $1,500 would be a bullish sign, if however price remains below it for too long, the chances of breaking $1,480 and moving at least towards $1,450 will be increased. The material has been provided by InstaForex Company - www.instaforex.com |
| Posted: 20 Aug 2019 06:03 AM PDT To open long positions on EUR/USD pair, you need: German producer prices rose slightly but were not much of a help for the European currency in the morning. However, in the afternoon, volatility will remain quite low due to the lack of important statistics. From a technical point of view, the situation has not changed much. Exit and consolidation above the resistance level of 1.1095 will strengthen the demand for the euro and will lead to the renewal of a larger maximum at 1.1121, where I recommend taking profits. However, the main target of the bulls will be the level of 1.1153, which will allow us to build a new uptrend in the euro. In the scenario of the EUR/USD decline in the afternoon, it is best to return to long positions to rebound from a minimum of 1.1059. To open short positions on EUR/USD pair, you need: Bears need to form a false breakdown in the resistance area of 1.1095, which will only strengthen the downtrend and lead to an update of the low of the last week, which was not done yesterday. However, the farther target of the sellers will be the support levels of 1.1028 and 1.0990, where I recommend taking profits. The lack of important news may allow the EUR/USD pair to get above the resistance of 1.1095 in the afternoon. In this scenario, it is best to open short positions on a rebound from the highs of 1.1121 and 1.1153. Signals of indicators: Moving averages Trade is conducted in the region of 30 and 50 moving average, which indicates the lateral nature of the market. Bollinger bands Volatility is reduced, which does not give signals on entering the market. Description of indicators MA (moving average) 50 days - yellow MA (moving average) 30 days - green MACD: Fast EMA 12, Slow EMA 26, SMA 9 Bollinger Bands 20 The material has been provided by InstaForex Company - www.instaforex.com |
| Posted: 20 Aug 2019 05:27 AM PDT The emergence of signs of a warming US-China relationship and rumors that central banks and governments will not allow the global economy to slide into recession forced the Brent and WTI bears to take profits. In the second half of the summer, they dominated the market due to concerns about declining global demand. The trade war led to the worst dynamics of industrial production in China over the past 17 years and put the German economy on the brink of a technical recession. Oil is hard to go up when the biggest consumers look so bad. However, everything changes in the market in a matter of moments, and those who previously dragged any asset to the bottom can very quickly give rise to its growth. The slowdown in the Chinese economy forced the People's Bank to lower its base rate and leave the door open to further weaken monetary policy. In Germany, the topic of increasing government spending is being actively discussed. According to the German Minister of Finance Olaf Scholz, the country needs a fiscal stimulus of at least € 50 billion. It is good news for black gold. But if Berlin launches tax reform or increases government spending, keep in mind how Rome will begin to demonstrate your discontent. Italians cannot afford the same thing because of an excessive budget deficit, which is contrary to EU standards. As a result, rumors about the country's exit from the eurozone may begin to circulate; Not the best news for the euro. The fall in EUR/USD quotes can launch a new wave of sales in the Brent and WTI markets. The dynamics of the US dollar and oil The theme of a strong US dollar could be another important driver for oil. According to Boston Federal Reserve President Eric Rosengren, the US does not need to lower the federal funds rate. The Fed should not look at other countries but should focus on its own economy. Indeed, the lowest unemployment over the past half-century, as well as acceleration of core inflation to 2.2% and GDP growth above 2% create the prerequisites not for easing, but for tightening monetary policy. The American economy is able to get a new impetus for growth. On the eve of the 2020 elections, the White House is considering the possibility of lowering taxes for the middle class, including payroll taxes. If this idea comes true, no matter how Donald Trump wants, the US dollar will strengthen. The President is well aware that the USD index is growing, including concerns on the trade war. Hence, he recently decided to take a step back. We are talking about changing the timing of the introduction of new tariffs, as well as prolonging the grace period for Huawei Technologies, which has a beneficial effect on oil. Technically, Brent could enter a state of short-term consolidation in the range of $57.45-61.35 per barrel. A break of the upper border activates the "Bat" pattern and will increase the risks of quotes growth to $66.3. On the contrary, a successful test of the lower border of the trading channel will allow the "bears" to count on the implementation of the target by 161.8%, according to the AB = CD model. Brent daily chart  |
| Technical analysis of AUD/USD for August 20, 2019 Posted: 20 Aug 2019 04:45 AM PDT The AUD/USD pair is still trading below the major resistance (0.6816) which coincides with the golden ratio in the H1 chart. It continued to move downwards from the level of 0.6815 to the bottom around 0.6764. Today, the first resistance level is seen at 0.6815 followed by 0.6852, while daily support 1 is seen at 0.6730. Furthermore, the moving average (100) starts signaling a downward trend; therefore, the market is indicating a bearish opportunity below 0.6815. So it will be good to sell at 0.6815 with the first target of 0.6730. It will also call for a downtrend in order to continue towards 0.6679 with a view to test the double bottom. In the H1 time frame, the pair will probably go down because the downtrend is still strong. Consequently, the market is likely to show signs of a bearish trend. Additionally, the RSI starts signaling a downward trend. As a result, if the AUD/USD pair is able to break out the first support at 0.6764, the market will decline further to objectives of 0.6730 and 0.6679. On the contrary, in case a reversal takes place and the AUD/USD pair breaks through the resistance level of 0.6852, then a The material has been provided by InstaForex Company - www.instaforex.com |
| Posted: 20 Aug 2019 04:32 AM PDT The published protocol of the last RBA meeting clearly demonstrates the complete dependence of the vast majority of the Central Banks of advanced economies on the actions of the American regulator. In the presented document, the theme of the direct dependence of the prospects of the monetary policy of the Reserve Bank of Australia on the actions of the Federal Reserve in relation to its monetary policy is a red thread. The Bank has made it clear that it will "consider further easing of monetary policy, if necessary." Moreover, this "if" is directly dependent on how the situation with the trade war between the US and China develops. Here, however, it should be noted that the Australian economy largely depends on the state of demand in China for export from the "green continent". In addition, it once again confirms the thesis that we voiced back in the spring of this year that trade confrontation could become the basis for rising inflation due to increased customs duties not only in the States or "under heaven", but also in countries more dependent on trade from the second. The RBA believes that there is a risk of higher inflation, which is equally combined with the thesis presented above. On the wave of the published protocol of the Australian Central Bank, the local currency received limited support. Although earlier, the topic of strengthening the prospects for lowering interest rates was actively discussed in the market. Hence, it can be argued that the Fed's monetary policy plans are the central reference point for almost all central banks, probably only with the exception of the ECB and the Central Bank of China. Given this state of affairs, we believe that before the performance of Jerome Powell at the Jackson Hole Symposium at the end of this week. Activity in the foreign exchange market will remain low, as investors will expect a signal about whether the regulator will continue to lower interest rates or accept the decision to take a wait and see attitude. Forecast of the day: The EUR/USD pair is trading in range amid pending publication of the Fed protocol, which will take place tomorrow and Powell's performance in Jackson Hole. But at the same time, there is a high probability of the resumption of a fall in prices if the pair overcomes the level of 1.1070. In this case, it may fall to 1.1025. The GBP/USD pair is trading above 1.2090 in the wake of Brexit's problems that leave Britain in no way. We believe that a decrease in the pair below the level of 1.2090 will cause its local decline by 1.2010 or even lower to 1.2000.  |
| Trading recommendations for the GBPUSD currency pair - placement of trade orders (August 20) Posted: 20 Aug 2019 01:27 AM PDT Over the past trading day, the pound / dollar currency pair showed a low volatility of 68 points, as a result of having a sluggish fluctuation, but in the direction we need. From the point of view of technical analysis, we see that the theory of displacement of accumulation boundaries within the range of 1.2000 / 1.2150 is in the active phase, presumably working out the upper limit. Of course, it is too early to say that this shift is caused by the oversaturation of short positions, and the quote is trying to get closer to the psychological control level of 1.2000, but there are reasons for this. As discussed in the previous review, traders continue to follow two tactics at once: work on accumulation ranges (aggressive method) and work on the breakdown of control values (conservative method). Each method has its own "highlight", and volatility, which is generally high, helps to implement these approaches in the work. Considering the trading chart in general terms (daily timeframe), we see that the 1.2150 level works on the principle of resistance, winding up the idea of how much the GBPUSD pair was not oversold. There are still more short positions, otherwise the "Correction" cycle did not keep us waiting so long. The global downward trend remains low, as well as the control point in the form of a psychological level of 1.2000 (+/- 30 p). The news background of the past day was boring, as the economic calendar was, frankly, empty in terms of parsing Britain and the United States. The information background was, on the contrary, more lively; Prime Minister Boris Johnson made his first public attempt to interact with Brussels regarding the revision of the agreement on the country's exit from the EU. Johnson sent a letter to the President of the European Council, Donald Tusk, which refers to the revision of the "back-stop" item. According to the head of government, it is this item that stops the agreement in parliament, since the formation of tight borders between the two countries contradict the terms of the Belfast Agreement. Meanwhile, Boris Johnson insists that both sides should look for other ways to keep the border free from inspections and must commit themselves to create such mechanisms as much as possible, before the end of the transition period, that is, possibly, by the end of 2020. In turn, US President Donald Trump during a telephone conversation with Boris Johnson discussed the Brexit process and trade issues. The specifics of the conversation are missing, the only thing Mr. Trump said was that the discussion was excellent, and he was looking forward to meeting Johnson at the G7 summit in France. Today, in terms of the economic calendar, the day is even more boring than yesterday, since there are no statistics for more than one country. Support to the market can be provided only by the information background and the upcoming minutes of the meeting of the US Federal Reserve Open Market Committee. Further development Analyzing the current trading chart, we see that the pressure from the side of short positions remains on the market and the quote has already returned to the area of 1.2080, where a periodic, mirror level of low importance was found earlier. Regarding the current fluctuation and development of the 1.2150 level, the theory of cluster boundary shift (1.2000 / 1.2150) is seen as a rather realistic scenario. Traders, in turn, steadily continue to follow the previously announced methods, where some ride on the current decline, considering the fixation of previously received profit in the values of 1.2080-1.2020. Others restrainedly wait for price fixing relative to the control points 1,2000 / 1,2200. It is likely to assume that special attention is now focused on the coordinates of 1.2080, since it can be, though temporary, but support in the market. But in the event of its breakdown, the movement towards the psychological level of 1.2000 (+/- 30 p.) looks like a real picture of development. Based on the above information, we derive trading recommendations: - It is better to consider buying positions in terms of working out the mirror level of 1.2080, since the level is still of low importance. However, if you go down to the limits of 1.2020-1.2000, it can play in terms of stopping and working out the psychological significance. Wait for at least some stop before entering the market. - Sell positions, if you already have, in terms of an aggressive approach to the value of 1.2080, partial exit with the stop loss moving to zero. The further movement is considered after fixing the price lower than 1.2075, with the prospect of a movement to 1.2020-1.2000. Conservative traders are out of the market, waiting for clear price fixation lower than 1.2000. Indicator analysis Analyzing a different sector of timeframes (TF), we see that indicators on all the main timeframes signal a further decline, which, in principle, reflects the current market background. If the temporary support is within 1.2080, indicators in the short term can temporarily jump, it is worth considering this point in the analysis. Volatility per week / Measurement of volatility: Month; Quarter; Year Measurement of volatility reflects the average daily fluctuation, calculated for the Month / Quarter / Year. (August 20 was built taking into account the time of publication of the article) The volatility of the current time is 55 points, which is pretty good for this time section. It is likely to assume that in the case of maintaining a downward mood and overcoming the level of 1.2080, we can see a temporary acceleration expressed in increasing volatility. Key levels Resistance zones: 1.2150 **; 1.2350 **; 1.2430; 1.2500; 1.2620; 1.2770 **; 1.2880 (1.2865-1.2880) *; 1.2920 * 1.3000 **; 1.3180 *; 1.3300 Support Areas: 1,2000; 1.1700; 1.1475 ** * Periodic level ** Range Level *** The article is built on the principle of conducting a transaction, with daily adjustment The material has been provided by InstaForex Company - www.instaforex.com |
| Trading plan for EUR / USD and GBP / USD pairs on 08/20/2019 Posted: 20 Aug 2019 01:26 AM PDT Of course, Europe was already expecting a slowdown in inflation but not so strong. It was predicted that it should slow down from 1.3% to 1.1%, but in fact, it turned out that it decreased to 1.0%. This brings us back to the situation more than two years ago since the last time inflation was at such a low level was just in November 2016. But do not forget that then she grew, and surely. Nevertheless, until inflation rose to 2.0%, the European Central Bank did not even think about the possibility of curtailing the quantitative easing program. Already talking about raising the refinancing rate ended at the stage of the thought process in this direction. Here, inflation goes down again and even descends to such low values. So, it becomes clear that the word of the European Central Bank to consider raising the refinancing rate in the middle of next year will remain promising. However, soon without Super Mario himself, it is as if the department of Mario Draghi would not have announced the resumption of the quantitative easing program in full. Moreover, in this light, it is not surprising that portraits of the dead presidents continue to grow in value. Chart of inflation in Europe: There are no serious macroeconomic data today, therefore, investors are left face to face with their fears about further actions of the European Central Bank amid a serious decline in inflation. It is also funny that all kinds of mass media of agitation and misinformation are actively discussing the topic of Jerome Powell's Friday speech, completely forgetting that the text of the minutes of the meeting of the Federal Committee on Open Market Operations will be published tomorrow. Moreover, it is unlikely that the essence of the speech of the head of the Federal Reserve System within the walls of Jackson-Hole will be fundamentally different from the content of the text of the minutes of the last meeting of the Federal Committee on Open Market Operations. If we recall that the decision to lower the refinancing rate was not unanimous, it is almost certain that in the text of the protocol we will see almost direct indications that more steps should be expected from the Federal Reserve System to mitigate monetary policy by the end of the current year. So in light of growing concerns about the possible actions of the European Central Bank, under the pressure of declining inflation, the dollar will continue to strengthen. After a short pullback, the Euro/Dollar currency pair found a resistance level in the region of 1.1100. After which, a gradual recovery process began. It is likely to assume a temporary fluctuation within the local Friday minimum of 1.1066 and the current level of 1.1100 in analyzing clear price fixations. The Pound/Dollar currency pair reached the level of 1.2150, where it formed a stagnation in forming a corrective movement. As a matter of fact, there is an attempt for a recovery move. It is likely to assume a temporary descent to the area of 1.2080, after which it is worth analyzing the behavior of the quote and the fixation point since stagnation is possible.  |
| Control zones for USD/CAD pair on 08/19/19 Posted: 20 Aug 2019 01:10 AM PDT Any decline in the pair will be corrective. This will enter the purchase again. Yesterday's purchases from 1/2 WCZ of 1.3250-1.3241 must be transferred to breakeven. The purpose of the upward model is a weekly control zone of 1.3378-1.3360. Testing this zone will allow you to record part of the purchases. Working at current levels will keep purchases and buying at the high of the week is not profitable. Therefore, the formation of a correctional model is necessary. An alternative model will be developed if the closure of today's American session occurs below the 1/4 WCZ of 1.3292-1.3288. This will entail the formation of an accumulation zone, where 1/2 WCZ of 1.3250-1.3241 will again come to the fore. Daily short circuit - daily control zone. An area formed by important data from the futures market that changes several times a year. Weekly short circuit - weekly control zone. The zone formed by the important marks of the futures market, which change several times a year. Monthly fault - monthly control zone. An area that reflects the average volatility over the past year. The material has been provided by InstaForex Company - www.instaforex.com |
| Posted: 20 Aug 2019 01:06 AM PDT Yesterday, the euro fell against the US dollar after weak reports on the eurozone economy, whose current account surplus has once again declined. The British pound also began to gradually decline in the pair with the dollar. Many traders and investors do not yet believe that the future meetings of the British Prime Minister with representatives of the EU on the topic of Brexit will bring success. According to the European Central Bank, the current account surplus of the eurozone balance of payments in June this year fell to 18 billion euros from 30 billion euros in May. The total positive balance for the 12 months to June this year amounted to 318 billion euros. This is about 2.7% of the eurozone GDP. It is worth noting that last year, over the same period, the total surplus amounted to 391 billion euros. US trade duties and protectionist policies are affecting such indicators, where the situation will only worsen in the future. Let me remind you that the current account of the balance of payments is a general indicator of the international financial situation of the country. Yesterday's data on consumer price inflation in the eurozone further strengthened traders' confidence that the European Central Bank will go to adjust interest rates in the autumn of this year, which will further weaken the position of the European currency. According to data, in July this year, inflation in the eurozone remains far from the target level set by the ECB. The report states that in July, compared with the same period last year, consumer prices rose by only 1%, while the first estimate showed an increase of 1.1%. Let me remind you that the annual inflation target is just below 2%. The decline was due to falling prices for industrial goods and energy. Another criticism of US President Donald Trump against Fed Chairman Jerome Powell was ignored by market participants. The US President has already made it a rule to criticize the Fed's work on the eve of the next expected speech of the head of the Central Bank. In his Twitter, Trump noted that the US economy is very strong, despite the lack of vision of the head of the Fed, but interest rates should be reduced by at least 1.0% in a fairly short period. The US President also noted that he expects a return to the quantitative easing program, which the European Central Bank can now resort to. Yesterday, the President of the Federal Reserve Bank of Boston Eric Rosengren also spoke, who expressed a different point of view on the current situation. Unlike the US President, Rosengren said that the state of the economy is still very good and the Fed should not soften policy too much in the absence of serious problems, as the lowering of rates has a price. However, he also pointed out that the committee should be aware of the risks to financial stability and pursue its policies regardless of the political situation. As for the current technical picture of the EURUSD pair, it seems that the sellers of the euro hurried yesterday to fix profits after the release of weak reports, but the situation remains on the side of the bears. The next goal will be to update the lows of the previous week with the test of support levels of 1.1060 and 1.1030. If the bulls attempt to build an upward correction in the pair, it is best to consider short positions in the trading instrument from the upper border of the side channel of 1.1120. A larger resistance level is the area of 1.1160. The British pound "digested" the next rumors about the possibility of a vote of no confidence in Prime Minister Boris Johnson and after a small upward correction again headed for a decline. Also, the further direction of the pound will be influenced by the result of meetings of Prime Minister Boris Johnson with EU leaders, which are scheduled for this week. A good result should not be expected, so any negative news for the pound will once again strengthen the bearish trend. From a technical point of view, the support breakthrough in the area of 1.2090 will increase the pressure on GBPUSD, which will open a real prospect for the return of the trading instrument to the area of lows 1.2040 and 1.1980. Also, a breakout of 1.2090 support will lead to a breakthrough of the lower limit of the current upward channel, which is a bad signal for buyers. The material has been provided by InstaForex Company - www.instaforex.com |
| Warning signs as USD/JPY fails to break resistance Posted: 20 Aug 2019 01:06 AM PDT
There were relatively hawkish comments from Boston Fed President Rosengren on Monday as he warned against agressive easing monetary policy amid the lack of significant problems. He was also concerned over the risks to financial stability and that it was better to sit back and wait for the data. The comments illustrated that that there will be important divisions within the Federal Reserve Open Market Committee at the September policy meeting. The dollar overall held a firm tone with the trade-weighted index posting 2-week highs. USD/JPY peaked at 106.70, but failed to secure a break of key resistance around 106.75 and drifted lower. USD/JPY also failed to make headway in Asia on Tuesday with a retreat to just below 106.50 in early Europe while EUR/JPY dipped back below 118.00. USD/JPY's inability to advance during a period of firmer risk appetite is a potentially important warning sign as US-China trade tensions continue to dent underlying sentiment. The markets are anticipating a speech by Fed Chair Powell at the annual symposium in Jackson Hole on Friday. Dovish rhetoric from Jerome Powell would support risk appetite, but would also undermine US yield support. In contrast, more hawkish rhetoric would cause a slide in asset prices which would trigger further defensive flows into the Japanese yen. The Hong Kong political situation will also be monitored closely. Any direct intervention by Chinese forces is likely to trigger a spike in yen demand. The material has been provided by InstaForex Company - www.instaforex.com |
| Simplified wave analysis and forecast for GBP/USD and USD/JPY on August 20 Posted: 20 Aug 2019 12:50 AM PDT GBP/USD Over the past 3 weeks, the price fluctuations of the British pound have been concentrated in a narrow side corridor. All this time, a bullish wave is forming a correction. The final part (C) is formed in the wave structure. Forecast: Today, consistent price movements are expected in a narrow price range. The current decline is likely to end in the morning. By the end of the day, you can expect to change the vector of movement, with the rise of prices to the resistance zone. The short-term puncture of the lower support border is not excluded. Recommendations: When selling a pair today, caution should be exercised due to the incompleteness of the current upward structure. In the area of the support zone, it is recommended to track reversal signals to find entry points to long positions. Resistance zone: - 1.2150/1.2180 Support zone: - 1.2080/1.2050
USD/JPY After the completed bullish correction wave since August 13, a new bearish wave has been developing on the yen chart. In recent days, the price forms the middle part (B), gaining the necessary wave level in the flat. Forecast: During the coming days, the completion of the bullish phase of the movement is expected. In the next session, a short-term decline is possible, which will then be replaced by an upward section. Recommendations: Until the full completion of the bullish structure, the price can dramatically change the rate, so the yen's sales are not promising today. For supporters of intraday, it is worth focusing on buying a pair. The rest are recommended to wait for the completion of the climb and to look for signals of sale of the instrument at its end. Resistance zone: - 106.70/107.00 Support zone: - 106.10/105.80
Explanations to the figures: Waves in the simplified wave analysis consist of 3 parts (A-B-C). The last unfinished wave is analyzed. Zones show areas with the highest probability of reversal. The arrows indicate the wave marking according to the method used by the author, the solid background is the formed structure, the dotted ones are the expected movements. Attention: The wave algorithm does not take into account the length of time the instrument moves. The material has been provided by InstaForex Company - www.instaforex.com |
US equities made significant headway on Monday with the S&P 500 index gaining 1.2% to trade above the 2,900 level. US Treasuries initially declined sharply on Monday with the 10-year yield pushing to the 1.625% area, but selling pressure eased during the day with the yield drifting back towards 1.60%.
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