Forecast for AUD / USD pair on August 20, 2019

AUD / USD pair

The Australian dollar continues to spin up on the axis, expressed by the Fibonacci level of 23.6% of the July 19-August 7 fall. On the daily chart, the signal line of the Marlin oscillator continues to move straight up, the target 0.6822 - the correction level of 38.2% - remains relevant.

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On the four-hour chart, the price breaks above the balance line and if successful, the trend balance will shift upward. The signal line of the Marlin oscillator will go into the growth zone (above zero) around the same time into the zone of positive values. A signal for growth will be the release of prices above the August 16 high at 0.6797.

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Overview of GBP/USD on August 20th. Forecast according to the "Regression Channels". Boris Johnson offered Donald Tusk to

4-hour timeframe

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Technical data:

The upper linear regression channel: direction – down.

The lower linear regression channel: direction – down.

The moving average (20; smoothed) – sideways.

CCI: 64.6215

Boris Johnson in his first month as Prime Minister of Great Britain walks on a thin blade. With great fanfare and a wide margin, a victory was won overall rivals in the party, and then a month passed. The pound fell to historic lows, the British population began to prepare for Brexit, as for the Third World War, stocking up on food, medicines and other essentials, while a conspiracy is brewing in the British Parliament against Boris Johnson, who is led by Labor leader Jeremy Corbyn. The only reason for the conspiracy – to prevent "hard" Brexit. It turns out that the "hard" scenario of the "divorce" with the EU will shock most of the politicians, as it may drive the country into a hopeless crisis for many years, and also lead to the holding of referendums on independence in Northern Ireland and Scotland, the majority of which supports the option to "stay in the European Union." And the outcome of the referendum, no one can predict. The main complaint against Boris Johnson is that he does not try too hard to negotiate a new "deal" with the European Union. Theresa May went to Brussels for talks with EU leaders almost every two weeks. Johnson did not meet with Tusk, Juncker and the company during the month of the country's reign, however, he repeatedly suggested revising the terms of the "deal" in words. The European Union, of course, refused every time, since it did not receive any reasonable proposal. More precisely, he simply "did not receive any proposal." There are only Johnson's statements to the media, which create the appearance of a desperate desire to start new negotiations with the EU, to remove from the text of the agreement the paragraph on "backstop" and divorce amicably. However, what Britain would do in this case was not clear. Yesterday, Boris Johnson said that "he is confident that the European Union will change its mind and compromise in the end" and sent a letter to Donald Tusk, the head of the European Council, with a proposal to revise the terms of Brexit. In particular, Britain may waive the condition that Northern Ireland will remain part of the EU Customs Union during the transition period, but Johnson wants no rigid borders between Ireland and Northern Ireland. Most likely, Johnson's new attack will end, like all previous ones, with Brussels' refusal of any negotiations. That's the situation in the British Kingdom for a little more than 2 months before the next date X – October 31.

Nearest support levels:

S1 – 1.2115

S2 – 1.2085

S3 – 1.2054

Nearest resistance levels:

R1 – 1.2146

R2 – 1.2177

R3 – 1.2207

Trading recommendations:

The GBP/USD pair formally continues its upward movement, very weak. Thus, you can consider buying pound with the target of 1.2177 and 1.2207, but with minimum lots. It will be possible to sell the pound sterling after fixing the pair below the moving average, which will return the initiative to the bears in the market.

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

Explanation of illustrations:

The upper linear regression channel – the blue line of the unidirectional movement.

The lower linear regression channel – the purple line of the unidirectional movement.

CCI – the blue line in the indicator regression window.

The moving average (20; smoothed) – blue line on the price chart.

Murray levels – multi-colored horizontal stripes.

Haiken Ashi is an indicator that colors bars in blue or purple.

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Indicator analysis. Daily review on August 20, 2019 for the EUR / USD currency pair

Trend analysis (Fig. 1).

Today, the pair will try again to break down the support line 1.1065 (yellow dashed line), but this will most likely happen after lunch. Before lunch (9.00 Universal time), the price will move up, with the target of 1.1094 - a pullback level of 14.6% (yellow dashed line).

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Fig. 1 (daily chart).

Comprehensive analysis:

- indicator analysis - down;

- Fibonacci levels - up;

- volumes - up;

- candlestick analysis - up;

- trend analysis - up;

- Bollinger Lines - down;

- weekly schedule - down.

General conclusion: up.

The scenario with a low probability is an upward movement with the first target of 1.1115 - an upper fractal.

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EUR/USD: plan for the European session on August 20. A return to the level of 1.1095 will strengthen the position of buyers

To open long positions on EURUSD you need:

Yesterday, euro buyers managed to keep the pair below the lows of the previous week, which preserves the likelihood of building an upward correction. This will require good data on Germany and producer prices, as well as an exit and consolidation above the resistance of 1.1095, which will increase demand for the euro and lead to the renewal of a larger high of 1.1121, where I recommend taking profits. However, the main target of the bulls will be the 1.1153 level , which will allow us to build a new upward trend in the euro. In case the EUR/USD declines in the morning, it is best to return to long positions to rebound from a low of 1.1059.

To open short positions on EURUSD you need:

Bears need to form a false breakdown in the resistance area of 1.1095, which will only strengthen the downward trend 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 support levels of 1.1028 and 1.0990, where I recommend taking profits. The lack of important news, apart from the report on Germany, could make it possible for EUR/USD to go above the resistance of 1.1095 in the morning. 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

Trading is carried out in the region of 30 and 50 moving average, which indicates a slowdown in the downward trend.

Bollinger bands

A break of the lower border of the indicator in the region of 1.1070 will strengthen the bearish trend.

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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
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Technical analysis of ETH/USD for 20/08/2019:

Crypto Industry News:

The Japanese cryptocurrency exchange Rakuten Wallet began trading a year after acquiring Everybody's Bitcoin.

Rakuten Wallet, which is a subsidiary of the Japanese e-commerce giant Rakuten, said that spot trading with three cryptocurrencies - Bitcoin, Ethereum and Bitcoin Cash - has already entered into force. In the future, developers plan to release an application for iOS and Android, the use of which will be mandatory for deposits and withdrawals.

"Customers who already have a bank account with Rakuten Bank will be able to easily open an account with Rakuten Wallet simply by entering the required information in the online application form"- we read in a press release.

Rakuten acquired Everybody's Bitcoin in August 2018 for $ 2.4 million. The management originally announced the upcoming premiere in April this year, but progress seemed to stall. The stock market joins the rapidly growing ecosystem in the Japanese market, and many competitors are fighting for a piece of domestic cryptocurrency trading.

Last month, Tokyo announced it wanted to create a cryptocurrency-based counterpart to SWIFT, the global payment settlement network, as part of a G7-approved move.

Technical Market Overview:

The bulls on the ETH/USD market have managed to move the prices higher towards the level of $197.70, which is a 38% retracement of the previous swing down. So far the bulls did not have the strength to break through this level, but if they will, then the next target is seen at the level of $215.63. There are two more retracements to hit as well and they are located at the level of $205.68 and $213.45. The immediate technical support is now located at the level of $190.94.

Weekly Pivot Points:

WR3 - $257.46

WR2 - $236.43

WR1 - $213.67

Weekly Pivot - $193.41

WS1 - $171.74

WS2 - $150.23

WS3 - $128.88

Trading Recommendations:

The best strategy in the current market conditions is to trade with the larger timeframe trend, which is still up. All the shorter timeframe moves are being treated as a correction inside of the uptrend. The current cycle is wave 2 of the higher degree and it might have been completed, so the uptrend should resume soon. The global investors are waiting for a breakout above the level of $238.68 to confirm the resumption of the uptrend.

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