InstaForex InstaForex
move up
move down
move to top
Top-10 articles per day
#1. Control zones EUR/USD 20.08.18
On Friday, the formation of a reversal pattern occurred, indicating an upward priority that determines the trade...
On Friday, the formation of a reversal pattern occurred, indicating an upward priority that determines the trade direction for today. The growth target is the weekly KZ 1.1503-1.1484. Last week, there was a test of the monthly KZ in August which determined the emergence of large demand. At the end of the week, a reversal pattern was formed after the close of the American session above the NKZ 1/2 1.1402-1.1393. This makes it possible to search for purchases with any reduction in the pair,...

On Friday, the formation of a reversal pattern occurred, indicating an upward priority that determines the trade direction for today. The growth target is the weekly KZ 1.1503-1.1484.

Last week, there was a test of the monthly KZ in August which determined the emergence of large demand. At the end of the week, a reversal pattern was formed after the close of the American session above the NKZ 1/2 1.1402-1.1393. This makes it possible to search for purchases with any reduction in the pair, which is corrective. The first support will be the NKZ 1/4 1.1399-1.1395. Testing this zone will enable traders to gain favorable prices for purchases and set a small stop on the possible take-profit, which will be located within the weekly KZ 1.1503-1.1484.

MSsD43IvpuzDzwPegMV9Bjvy--r7ZXQB0RG5W1BQ

It should be considered that the upward movement is still corrective from the mid-term point of view, therefore, purchases are required to be fixed during the weekly short-term test, which will act as the determining resistance.

The torus will remain unchanged from current marks. This will prevent players to gain favorable prices for buying, but for those who already hold a long position will quickly close the deal for take profit. Another option for purchases will be the decrease to the maximum possible correction zone for NKZ 1/2 1.1353-1.1344. If this happens, then the pair will test again the monthly control zone, which will make it possible to buy at the most favorable prices. The ratio of risk to profit of these transactions will exceed from 1 to 4, which will make them profitable.

32Mqp4AnxzrO-r15vNeDUEgDLbVUqMyRNg2GKaDA


Daytime CP is the daytime control zone. The zone formed by important data from the futures market, which change several times a year.

Weekly CP is the weekly control zone. The zone formed by important futures market marks, which change several times a year.

Monthly CP is the monthly control zone. The zone is a reflection of the average volatility over the past year.

* The presented market analysis is informative and does not constitute a guide to the transaction.

Forex analysis 20 Aug 2018, 04:34 UTC+00
Close Expand on this page Go to article
#2. Bitcoin analysis for 20/08/2018
Nvidia resigns from the production of chips for mining.
Nvidia, a graphics chip manufacturer, recorded huge increases at the end of 2017 and for most of 2018, when the demand for advanced graphics processors used to extract cryptocurrencies increased sharply. The recent drops in the market caused a drop in demand, which forced Nvidia to change its strategy. Nvidia's largest rival, Advanced Micro Devices (AMD), also reached record levels, gaining more than 100% in the last quarter. Nvidia was particularly good with the waves of the huge...

Nvidia, a graphics chip manufacturer, recorded huge increases at the end of 2017 and for most of 2018, when the demand for advanced graphics processors used to extract cryptocurrencies increased sharply. The recent drops in the market caused a drop in demand, which forced Nvidia to change its strategy.

Nvidia's largest rival, Advanced Micro Devices (AMD), also reached record levels, gaining more than 100% in the last quarter. Nvidia was particularly good with the waves of the huge cryptocurrency boom in November and December, when it reached an impressive 42% from November 2017 to a record level of $ 267 per share in June 2018.

Demand for top-class GeForce graphics processors grew sharply when Bitcoin's price rose from $ 5,800 to almost $ 20,000 in one month - creating a shopping spree for miners wanting to earn crypt-madness.

However, the recent slowdown in the market has left Nvidia a large amount of unsold equipment due to weakening interest rates and market sentiment. The company expected around $ 100 million in the second fiscal quarter from the sale of chips used for miners. Instead, sales in this period amounted to 18 million dollars, and in the future revenues will probably disappear completely. Nvidia's CEO, Jensen Huang, plans to exclude from the budget production directed at mining cryptocurrencies. Yesterday during a conference call Huang talked about entering new roads and focusing on the strengths of Nvidia: "Our basic platforms have exceeded our expectations, even when the crypto has largely disappeared. We do not plan to develop cryptographic mining " - he said.

Although the extraction of cryptocurrencies enabled Nvidia to increase revenue and market value in the short term, the company can no longer compete with gaming miners such as the Chinese company Bitmain. The company manufactures and uses ASIC excavators that are able to extract cryptocurrencies much more efficiently than the best Nvidia cards. Instead, Nvidia will focus on its strengths, especially in the computer games industry, artificial intelligence and data processing.

Let's now take a look at the Bitcoin technical picture at the H4 time frame. The market remains inside of the horizontal consolidation between the levels of $5,846 - $6,597. Currently, the price is just above the weekly pivot at the level of $6,359 and just above the internal trend line support marked in blue. The key level to the upside is seen at $6,597 and in a case of a breakout higher, the next target for bulls is seen at $6,752. On the other hand, the intraday supports are seen at the levels of $6,179, $6,134, $6,083 and $6,034.

analytics5b7a56155d04e.jpg

Forex analysis 20 Aug 2018, 03:48 UTC+00
Close Expand on this page Go to article
#3. Weekly review of the foreign exchange market as of August 20, 2018
The US actions cause more and more questions, and even concerns, primarily from NATO allies, and the annual meeting...
During the past week, the dollar failed to develop its success, although, at its very beginning, it continued to grow, but rather by inertia. It turned out that in the absence of serious political factors, the dollar did not have any reasons for growth, as the US statistics was rather weak, especially against the background of data from Europe. In particular, the growth rate of retail sales slowed from 6.6% to 6.4%, although industrial production accelerated from 4.0% to 4.2%. But the value...

During the past week, the dollar failed to develop its success, although, at its very beginning, it continued to grow, but rather by inertia. It turned out that in the absence of serious political factors, the dollar did not have any reasons for growth, as the US statistics was rather weak, especially against the background of data from Europe. In particular, the growth rate of retail sales slowed from 6.6% to 6.4%, although industrial production accelerated from 4.0% to 4.2%. But the value of retail sales is much greater, and given that the data came out simultaneously, few people paid attention to the growth of the industry. Yes, and what kind of industrial growth can be discussed, if commercial commodity stocks have been growing for six months in a row, and over the past month they have grown by another 0.1%. This clearly indicates that if sales do not start to rise again, then the industry will soon face a serious recession. True, the next day, quite good construction data came in, as the number of construction projects started increased from 1,158 thousand to 1,168 thousand, and issued construction permits from 1,292 thousand to 1,315 thousand. Together with them, data on applications for unemployment benefits, and it turned out that the number of primary applications decreased from 214 thousand to 212 thousand, but repeated from 1,760 thousand to 1,721 thousand.

But in Europe, the data came out much more interesting. If we talk about the euro area, then only industrial production can be recorded as negative data, the growth rates of which have slowed from 2.6% to 2.5%. However, the second GDP estimate for the second quarter showed that the pace of economic growth, although slowed, but not to 2.1%, as shown by the first estimate, but to 2.2%. In the first quarter, economic growth rates were 2.5%. Also, final data on inflation showed that it continues to grow and accelerated from 2.0% to 2.1%, and this, for the time being, removes any risks regarding the possibility of extending the ECB's quantitative easing program. In the UK, there were also a lot of interesting data, in particular, the unemployment rate fell from 4.2% to 4.0%. Although the growth rate of wages has slowed, this is perfectly normal in the face of a decline in unemployment. Inflation also continues to grow and has already reached the level of 2.5%, and if we recall the words of a number of representatives of the Bank of England about the possibility of resuming the action of the English quantitative easing program, then inflation growth makes this prospect illusory. Well, retail sales increased their growth rate from 2.9% to 3.5%. Yes, there to say, even Russia, which constantly imposes new sanctions, demonstrates quite a good dynamics. Yes, retail sales growth rates slowed from 3.0% to 2.5%, but this ends the negative. Moreover, in contrast to the United States or Europe, retail sales have less weight than industry, whose growth rates have accelerated from 2.2% to 3.9%. And the unemployment rate remained unchanged.

If you forget about the US actions in the international arena, the dollar should lose its positions, which was observed at the very end of the week. However, this trend was more moderate, since uncertainty plays just the benefit of the dollar, but in the short term. In the long run, US actions only undermine confidence in the dollar, which will inevitably bring a serious blow to the US economy.

This week two extremely important events will take place, and both of them will take place in the USA. First, the text of the minutes of the meeting of the Federal Commission for open market operations will be published, and it is expected to see confirmation that by the end of this year the Fed will double the refinancing rate twice more. Themselves these increases are already embedded in the price, so this will not lead to a serious increase in the dollar. But if investors have any doubts about the future actions of the Fed, the dollar will have to give up the won positions. The day after the publication of the text of the protocol, an annual meeting will begin in Jackson-Hole, and there is virtually no doubt that the White House's foreign trade initiatives will be the central theme. Even the NATO allies of the United States have more and more questions and doubts. Especially after the US imposed sanctions against Turkey, which has the second largest army among NATO countries. If the United States imposes sanctions even on its allies, then express surprise and indignation at the fact that in response its ally imposes restrictions on the import of goods from America, what else can we expect from the White House? Such unpredictability and assertiveness of the country emitting currency, in which almost all international trade is carried out, undermines confidence in this very currency. And it is a dollar. And after all, everyone sees that all sanctions, no matter to whom they are imposed, are purely economic in nature, to create additional advantages for American companies. If, in the American economy, everything is as good as statistics show, then why is this done? So, more and more questions arise about the real state of affairs in the American economy. And it is natural that this will not add confidence to the dollar. True, in the short term global uncertainty gives the dollar forces. And of course, and against the backdrop of such events, few will pay attention to macroeconomic statistics. In particular, home sales in the secondary market should grow from 5.38 million to 5.42 million, and new homes from 631 thousand to 650 thousand. At the same time, the number of applications for unemployment benefits is expected to increase, and the number of primary applications should An increase from 212 thousand to 216 thousand, and repeated from 1,721 thousand to 1,767 thousand. Preliminary data on business activity indices should show the invariability of the index in the service sector with a reduction in the production index from 55.3 to 55.2, and this against the backdrop of growth in industrial production. This is doubly strange, as orders for durable goods should increase by 0.8%. So it is likely that the production index will show growth.

In Europe, there have already been data on the rate of growth in the construction industry, which accelerated from 2.0% to 2.6%. Just like in the US, preliminary data on business activity indices are coming out, and they can show the growth of the service sector from 54.2 to 55.0, while the production index fell from 55.1 to 54.6. Given the greater weight of the service sector, the composite index can grow from 54.3 to 54.4. But one of the main events of the week will be the publication of the minutes of the ECB's meeting on the monetary policy. Investors hope to see in it the confirmation that after December the ECB will not extend the program of quantitative easing, which will give confidence to the single European currency. Given that inflation in Europe continues to grow, most likely the ECB will fulfill its promise, and already in the middle of next year, you can wait for the first time in many years to raise the refinancing rate. So, it is most likely that the euro will be able to grow to 1.1475. However, if what is happening in Jackson-Hole will be perceived with a positive for the dollar, and such a probability, although not great, then the euro will drop to 1.1350.

analytics5b7aaaeab6ad8.png

In the UK there is very little data, but the forecasts for them are extremely positive. In particular, public sector borrowing may shrink by £ 2.3bn, which will be received with enthusiasm and help the pound. Also, the number of approved mortgages should increase from 40,541 to 40,944, and given the huge importance of the UK property market, the pound will receive another reason for growth. So it is most likely that the pound will be able to grow to 1.2825. But as with the single European currency, much depends on the news that will come from Jackson Hole, and there is a small chance that at the very end of the week the pound will rush to the 1.2650 mark.

analytics5b7aaaf495253.png

With the ruble, everything is somewhat more interesting, since no data comes out, and they do not have such instant influence on the ruble. The ruble depends on geopolitical factors, and the introduction of new sanctions, which come into force on August 22, is one of them. True, the very decision to impose new sanctions has already affected the ruble, and the very fact of the beginning of their action will not lead to new consequences. Now, however, the theme of the fact that these sanctions will cause substantial damage to the Russian oil and gas industry and the entire economy is being discussed. True, such a position raises many questions, since as early as 2014 Russian oil and gas companies have practically lost the opportunity to receive loans from Western banks, as well as restrictions on the supply of equipment. But in the end, companies continue to work, and last year a record was set for oil production. Conversations about the fact that a ban on oil imports from Russia, as well as on the purchase of the Russian state stake, may be imposed, are fantasies since such measures will lead to disastrous consequences for the whole world economy. This is directly spoken by the American economists themselves and the respected media. So the ruble will gradually recover, and the dollar will fall to 66 rubles.

analytics5b7aaafe065cf.png

Forex analysis 20 Aug 2018, 12:30 UTC+00
Close Expand on this page Go to article
#4. Technical analysis of Gold for August 20, 2018
Gold price has broken short-term resistance and could give us a short-term bounce towards $1,190-$1,200 as long as...
Gold price has broken short-term resistance and could give us a short-term bounce towards $1,190-$1,200 as long as the price is above $1,170. Trend remains bearish as long as the price is below $1,210. Black lines - wedge pattern Gold price remains below the Ichimoku cloud and inside the wedge pattern. As long as both of these conditions hold, trend will remain bearish. Important trend resistance is at the upper wedge boundary and at the cloud resistance of the $1,195-$1,210 area. Gold...

Gold price has broken short-term resistance and could give us a short-term bounce towards $1,190-$1,200 as long as the price is above $1,170. Trend remains bearish as long as the price is below $1,210.

analytics5b7a6406be8f1.png

Black lines - wedge pattern

Gold price remains below the Ichimoku cloud and inside the wedge pattern. As long as both of these conditions hold, trend will remain bearish. Important trend resistance is at the upper wedge boundary and at the cloud resistance of the $1,195-$1,210 area. Gold price has started making higher highs and higher lows since last week's sell off and reversal we noted. Gold price is expected to continue its bounce towards $1,200. It is too early to tell if an important low is in, but we will have to keep a close eye on USD/CNY for more clues as the correlation between this pair and gold is very close the last few months.

Forex analysis 20 Aug 2018, 04:51 UTC+00
Close Expand on this page Go to article
#5. Control zones of GBP / USD pair 20.08.18
Last week, the pair tested the monthly control zone, like most major pairs, which led to the emergence of demand and...
Last week, the pair tested the monthly control zone, like most major pairs, which led to the emergence of demand and the formation of a local accumulation zone, where the main resistance becomes the 1/2 control zone at 1.2793-1.2781. The upward movement, in the second half of the month, becomes a priority, as the pair tested the monthly control zone of August. The probability of finding a price above this zone until the end of the current contract is 70%. This leaves an imprint on the...

Last week, the pair tested the monthly control zone, like most major pairs, which led to the emergence of demand and the formation of a local accumulation zone, where the main resistance becomes the 1/2 control zone at 1.2793-1.2781.

The upward movement, in the second half of the month, becomes a priority, as the pair tested the monthly control zone of August. The probability of finding a price above this zone until the end of the current contract is 70%. This leaves an imprint on the trading plans that will be built in the next two weeks. On Friday, the US session was closed above the 1/4 control zone at 1.2727-1.2721, which allows you to look for patterns to buy with a depreciation rate in today's sessions. The main purpose of growth is the 1/2 control zone of 1.2793-1.2781. The same zone will act as a determining resistance.

analytics5b7a4baeb4863.png

To continue the upward movement, it is necessary to close today's US session above the level of 1.2793. This will open the way for further growth to the higher control zone.

An alternative option will be a fall in the exchange rate, which will lead to the absorption of Friday's growth and the closing of trading below the opening. This will indicate a high probability of renewing the August low, which will in the future give more favorable prices for the purchase. This model has a sufficient probability for realization, however, it is better not to open sales, as the pair has already overcome the average monthly range and the probability of occurrence of large demand is increasing every day.

analytics5b7a4d834f5b4.png


The daytime CP is the daytime control zone. The zone formed by important data from the futures market that change several times a year.

The weekly CP is the weekly control zone. The zone formed by marks from important futures market which change several times a year.

The monthly CP is the monthly control zone. The zone is a reflection of the average volatility over the past year.

Forex analysis 20 Aug 2018, 05:36 UTC+00
Close Expand on this page Go to article
#6. Trading plan for 20/08/2018
A quiet beginning of the trading week.
Today's session should be rather calm because apart from the publication of the PPI index in Germany, the global investors will not get any important macroeconomic data. In the calendar, however, we will find scheduled speeches by several central bankers, but no president, so markets will hardly attach much importance to them. Nevertheless, speeches will come from BOC Senior Deputy Governor Carolyn Wilkins, FOMC Member Raphael W. Bostic, and ECB's Jens Weidmann. The latter gave an interview...

Today's session should be rather calm because apart from the publication of the PPI index in Germany, the global investors will not get any important macroeconomic data. In the calendar, however, we will find scheduled speeches by several central bankers, but no president, so markets will hardly attach much importance to them. Nevertheless, speeches will come from BOC Senior Deputy Governor Carolyn Wilkins, FOMC Member Raphael W. Bostic, and ECB's Jens Weidmann. The latter gave an interview at the weekend for the German newspaper Frankfurter Allgemeine Sonntagszeitung. In his opinion, the time of normalization of monetary policy is slowly coming. This process will be gradual and will probably last several years. He also spoke about Turkey. In his opinion, the current crisis has little impact on German banks. This is an example that the resilience of financial systems to local shocks has increased. Turkey is only in 16th place among German trading partners, and this country is responsible only for 1% of the global economy.

USD/TRY analysis for 20/08/2018:

Last week was marked by consolidation on currency markets. Both the yen and the dollar lost their growth momentum. Also, the Turkish lira is no longer important for investors. After declines from last Monday, the USDTRY price fell slightly and stabilized at around 6.00. The fear of additional sanctions on the part of the US still exists, which can be seen after the downgrade of ratings by major agencies.

The question of a trade war between the United States and China came to the fore. The parties agreed to resume negotiations. Deputy Minister of Commerce Wang Shouwen will meet with Secretary of International Relations David Malpas in Washington. Markets do not expect too much after these talks. First of all, both politicians do not have enough power to make any binding decisions. What's more, Malpass is on the side of Treasury Secretary Steven Mnuchin, who has recently been isolated from the issue of trade with China.

Let's now take a look at the USD/TRY technical picture at the H4 time frame. The price dropped towards the level of 5.43, but so far did not reach it and made a local low at the level of 5.68. The technical resistance at the level of 6.41 will now cap all the rallies to the upside, so it is an important level to keep the eyes on. The market conditions are now oversold, but the momentum remains neutral. As long as the price remains below the blue internal trend line, the bias is continuing to be bearish as the pull-back continues.

analytics5b7a591f7bb08.jpg

Forex analysis 20 Aug 2018, 04:01 UTC+00
Close Expand on this page Go to article
#7. Intraday technical levels and trading recommendations for EUR/USD for August 20, 2018
For further bearish decline to occur, the EUR/USD pair needs obvious bearish breakdown below 1.1375. Initial bearish...
Daily Outlook In April 2018, the EUR/USD pair outlook turned to become bearish when the pair pursued trading below the lower limit of the depicted consolidation range (1.2200). The price level of 1.1500 offered temporary bullish recovery towards 1.1830. The EUR/USD bulls failed to pursue towards higher bullish targets. Instead, a descending high was established around 1.1800. Currently, the EUR/USD pair is testing the price zone of 1.1450-1.1370 (demand zone) where the depicted trend...

analytics5b7a88269853e.png

Daily Outlook

In April 2018, the EUR/USD pair outlook turned to become bearish when the pair pursued trading below the lower limit of the depicted consolidation range (1.2200).

The price level of 1.1500 offered temporary bullish recovery towards 1.1830. The EUR/USD bulls failed to pursue towards higher bullish targets.

Instead, a descending high was established around 1.1800.

Currently, the EUR/USD pair is testing the price zone of 1.1450-1.1370 (demand zone) where the depicted trend lines are located on the depicted weekly chart.

As anticipated, bearish closure below 1.1400 was achieved. This allowed further bearish decline towards 1.1300.

For further bearish decline to occur, the EUR/USD pair needs obvious bearish breakdown below 1.1375. Initial bearish target would be located around 1.1275 then 1.1120 if enough bearish pressure is applied.

Hence, The EUR/USD short-term outlook remains bearish towards the mentioned levels unless bullish persistence above 1.1420 is achieved.

This would pause the ongoing bearish momentum allowing bullish pullback to take place towards 1.1520 initially.

Forex analysis 20 Aug 2018, 07:26 UTC+00
Close Expand on this page Go to article
#8. The US economy before the threat of deceleration
The US dollar updated the maximum against the euro and the pound last week, taking advantage of rising tensions in...
The US dollar updated the maximum against the euro and the pound last week, taking advantage of rising tensions in several regions. When will the rally be completed? Most of the factors that markets take into account are still in favor of the dollar. These include the normalization of the Fed's policy, turmoil in Turkey and Italy, which exert strong pressure on the euro, a trade war with China. While these factors are working, the dollar will remain out of the competition. At the same time,...

The US dollar updated the maximum against the euro and the pound last week, taking advantage of rising tensions in several regions. When will the rally be completed?

Most of the factors that markets take into account are still in favor of the dollar. These include the normalization of the Fed's policy, turmoil in Turkey and Italy, which exert strong pressure on the euro, a trade war with China. While these factors are working, the dollar will remain out of the competition. At the same time, a number of internal indicators indicate that the growth momentum is slowing down, for example, the PMI Philadelphia index fell in August to 11.9p against 25.7p a month earlier, this is a 21-month low, and the US industrial production index still will not reach the 2007 level.

analytics5b7a5c49ab975.png

The US GDP growth is above 2% for 5 consecutive quarters, the main driver of growth in private consumption. The dollar is growing based on the factors mentioned, but it should be borne in mind that part of its growth is based on expectations of positive US results from sanctions against the US, Turkey, Russia and the trade war with China. The markets assumed that a short period of indignation and bargaining would lead to Trump's being able to obtain favorable terms for the US on all the points indicated, since that was always the case before. However, recent events show that this time the result will not be so obvious since almost all the designated countries intend to go further than expected in defending their rights.

Concerning the trade war with China, the expectations are pessimistic. On Thursday, August 23, additional restrictive import measures amounting to $ 16 billion will come into force, and by September 5 public hearings regarding an additional 200 billion will come to an end. The likelihood of the introduction of new restrictive measures and a tough response from China is high, while China there are not so many opportunities for an adequate response, one of which is a reduction in transactions with the dollar in external economic calculations, which will lead to the beginning of sales by China of American Treasuries. Such a scenario, which until recently seemed unthinkable, begins to take on the real shape and will lead to the strongest problems in the US in the formation of the budget.

So, by autumn we should wait for the slowdown in the growth of the US economy. Inflationary expectations are falling, the dynamics of inflation-protected bonds are negative, their yields are in the region of 3-month lows and continue to fall. Forecasts for ISM are negative, it is expected that business activity will fall, which is facilitated not only by an increase in Fed rates but also cyclical activity.

analytics5b7a5c5bc7784.png

Thus, part of the drivers that supported the growth of the dollar in recent months, may be won back. Support for growth will have two factors - the policy of the Federal Reserve and general political tension. This may not be enough, so you need to proceed from the fact that the dollar index may begin to form the top and will gradually roll back from the peaks achieved. This conclusion is facilitated by the insider that the Fed may stop at a 2.5% rate in the increased cycle, rather than 3.0%, as previously planned.

On Wednesday, the minutes of the Fed meeting will be published on August 1, some hawkish rhetoric is expected to be tightened, but the market reaction is unlikely to be significant.

EUR / USD

Significant macroeconomic news on the euro is not, trade is largely determined by technical factors, which indicate an increased likelihood of a small corrective growth. The support level of 1.1390, during the day growth to 1.1470 is possible.

GBP / USD

The pound at the opening of the week does not have a noticeable direction, it is likely that the trade will be in the range with a slight downward trend. Support 1.2710, most likely, it will stand today, the growth is limited to the level of 1.2790.

Forex analysis 20 Aug 2018, 10:39 UTC+00
Close Expand on this page Go to article
#9. Trading plan for the European session of GBP / USD pair on August 20
A breakdown and consolidation above the resistance of 1.2773 signal for the opening of long positions in the pound,...
To open long positions for GBP / USD pair, you need: A breakdown and consolidation above the resistance of 1.2773 signal for the opening of long positions in the pound, which will lead to a larger upward wave with a test of new highs of 1.2823 and 1.2893, where fixing profits are recommended. In case of a pound drop, purchases can be considered for a rebound from 1.2697 and 1.2663. To open short positions for GBP / USD pair, you need: The formation of a false breakout at the resistance...

To open long positions for GBP / USD pair, you need:

A breakdown and consolidation above the resistance of 1.2773 signal for the opening of long positions in the pound, which will lead to a larger upward wave with a test of new highs of 1.2823 and 1.2893, where fixing profits are recommended. In case of a pound drop, purchases can be considered for a rebound from 1.2697 and 1.2663.

To open short positions for GBP / USD pair, you need:

The formation of a false breakout at the resistance of 1.2773 will be another signal to sell the pound with an exit to the lower border of the channel at 1.2697 and an update of 1.2663, where fixing profits are recommended. If the pound is above 1.2773 in the morning, it is best to look for short positions after the resistance test of 1.2823.

analytics5b7a652f28c6c.png

Description of indicators

  • MA (average sliding) 50 days - yellow
  • MA (average sliding) 30 days - green
  • MACD: fast EMA 12, slow EMA 26, SMA 9
  • Bollinger Bands 20
Forex analysis 20 Aug 2018, 11:22 UTC+00
Close Expand on this page Go to article
#10. EUR / USD. 20th of August. The trading system "Regression channels". The Euro-currency may start falling again
The EUR / USD currency pair continued to recover on August 17 after heavy losses and even managed to overcome the...
4-hour timeframe Technical data: The senior channel of linear regression: direction - down. The younger channel of linear regression: direction - down. Moving average (20; flattened) - sideways. СCI: 105.3381 The currency pair EUR / USD continued to recover on August 17 after heavy losses and even managed to overcome the moving average line. However, the joy of European clubs can not last long. First, in the near future, the States can introduce a new package of trade restrictions...

4-hour timeframe

analytics5b7a5ea40dd00.png

Technical data:

The senior channel of linear regression: direction - down.

The younger channel of linear regression: direction - down.

Moving average (20; flattened) - sideways.

СCI: 105.3381

The currency pair EUR / USD continued to recover on August 17 after heavy losses and even managed to overcome the moving average line. However, the joy of European clubs can not last long. First, in the near future, the States can introduce a new package of trade restrictions against Turkey due to the refusal of the latter to give out to the American side the pastor Andrew Brunson, who was arrested two years ago on suspicion of espionage. Secondly, a very small number of experts believe that the States and China at the forthcoming talks will be able to agree on the de-escalation of the trade conflict. And these two factors can cause a new strong demand for the US currency. In the issue with Turkey, America also indirectly exerts pressure on the European Union, since more loans to this country were issued by European banks. Thus, in the event of problems with servicing or repayment of the debt, liquidity problems will arise in EU banks. It should also be noted that Turkey follows in the footsteps of China and does not want to make concessions to America. Erdogan has already urged the Turkish people to get rid of the dollar and the euro, from buying American technology, hinting, first of all, on Apple products. However, it seems that this is only the very beginning of the trade war the US has unleashed and which has already seriously affected the PRC and Turkey.

Nearest support levels:

S1 - 1.1414

S2 - 1.153

S3 - 1,1292

Nearest resistance levels:

R1 = 1.1475

R2 = 1.1536

R3 = 1.1597

Trading recommendations:

The currency pair EUR / USD was fixed above the removals. Thus, on August 20, long positions with the target of 1.1475 are relevant, but with small lots, since both channels of linear regression are still directed downwards, I signal a downward trend.

It is recommended to open sell orders after traversing the moving average line with a target of 1,1353. In this case, the initiative on the instrument will return to the hands of the bears, and the downward trend will resume.

In addition to the technical picture, one should also take into account the fundamental data and the time of their release.

Explanations for illustrations:

The upper channel of linear regression is the blue lines of unidirectional motion.

The lowest linear regression channel is the violet lines of unidirectional motion.

CCI - the blue line in the indicator window.

Moving average (20; smoothed) - the blue line on the price chart.

Levels of Murray - multi-colored horizontal stripes.

Heikin Ashi is an indicator that color bars in blue or purple.

Forex analysis 20 Aug 2018, 11:24 UTC+00
Close Expand on this page Go to article
Popular forum posts per day
Traders' positions
Forex TV
Facebook
Start trading with
no risks and investments
With new Start-Up Bonus of $1000
Get bonus
55%
from InstaForex
on every deposit
Earn up to
$50000
for inviting friends to get StartUp Bonus from InstaForex
No investments required!