EUR / USD pair on July 19. The second speech of Powell supported Eurocurrency

4-hour timeframe

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Amplitude of the last 5 days (high-low): 46p - 74p - 49p - 96p - 63p.

The average amplitude for the last 5 days: 66p (71p).

On Wednesday morning of July 18, the EUR/USD currency pair continued to move down, but the second speech by the head of the Fed, Jerome Powell, caused a reduction in "dollar" positions in the afternoon. This time, Powell reported nothing negative. He only noted that the process of normalizing the balance of the Fed can take 3-4 years. Much or little, it's hard to say, given the fact that this balance has been accumulating for 10 years. Powell also said that the number of assets on the balance sheet of the Fed should return to the value "which should be", and expressed the hope that over time, only US Treasuries will remain on the balance sheet.

Also in the morning, the consumer price index was published in the Eurozone. In annual terms, this figure was 2.0%, which fully met the expectations of the market. In monthly terms, inflation slowed to 0.9%. In principle, this report turned out to be neutral and did not cause a stormy reaction of traders. Toward evening, the so-called "Beige Book" was published. Most economic districts noted moderate economic growth and wage growth. However, this information also did not cause a special reaction to the market. The volatility of the instrument declined, but the downward trend persisted. Further perspectives of the US dollar still look much more convincing than Euro-currencies.

However, the issue of the trade war remains on the agenda. This theme has come off the front pages in recent days, but we are only at the very beginning of this epic, which, like Brexit, can last for years and affect the currency and financial markets. Now everyone is wondering what will be the next step of Trump. Will he almost completely import all Chinese imports? As practice shows, Trump's serious steps in the international arena often cause the strengthening of the US dollar.

Trading recommendations:

On the EUR / USD pair, an upward correction began. Actual Buy-positions can be actual small intraday lots with Kijun-Sen line goals and the level of 1.1696 established based on the average volatility of the instrument.

It is recommended to open the sell orders after the correction is completed with the goal of the first level of support at 1.1602. The signal to open shorts can serve as a rebound from the critical line or turn the MACD indicator down.

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

Explanations to the illustration:

Ichimoku Indicator:

Tenkan-sen is a red line.

Kijun-sen is a blue line.

Senkou Span A is a light brown dotted line.

Senkou Span B - a light purple dotted line.

Chikou Span is a green line.

Bollinger Bands Indicator:

3 yellow lines.

MACD indicator:

Red line and histogram with white bars in the indicator window.The material has been provided by InstaForex Company - www.instaforex.com

Banking areas of EUR/USD 19.07.18

From the point of view of the location of the last three zones of bank compilation, a medium-term accumulation zone is formed on the pair. This indicates the need to fix any transactions on weekly and monthly extremes.

Yesterday, the next zone of bank compilation was formed, which makes it possible to determine the priority for the second half of the current week. Closure of trades occurred within the zone, which indicates the flat nature of the movement. Fastening above the zone will give an opportunity to buy. The purpose of purchases will be the compilation zone last week, within which there was an increase in supply.

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Working in the flat suggests partial fixation when reaching the level of 1.1722. The rest of the purchases should be transferred to breakeven and be closed in case of repeated occurrence of demand.

To continue the downward movement, today's closing of the American session is required below the zone of bank compilation. This will open the way for a fall to the June low. Sales from current marks are not profitable, since it is difficult to determine the location of the stop-loss, and the profit potential may be limited to the last week's minimum. In confirming the sales, we will have to wait for the closure of today's US session below the compilation zone.

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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.

The material has been provided by InstaForex Company - www.instaforex.com

NZD/USD Intraday technical levels and trading recommendations for July 19, 2018

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The NZD/USD pair had been trapped between the price levels of 0.7170 and 0.7350 until a bearish breakdown of 0.7200 occurred on April 23.

Breakdown of 0.7220-0.7170 (neckline zone) was needed to confirm the depicted reversal pattern. Bearish target levels around 0.7050 and 0.7000 have been achieved already.

The price level of 0.7050 was considered a key-level for the NZD/USD bears. That's why bearish persistence below 0.7050 allowed a further decline to occur towards the price levels around 0.6800.

As anticipated, the recent bullish pullback towards the price level of 0.7050 (Broken Demand-Level) offered a good opportunity for a valid SELL entry.

A quick decline took place towards 0.6800 where a false bearish breakdown occurred. This allowed a temporary bearish movement to occur towards 0.6680. However, the pair failed to maintain enough bearish momentum.

On July 7, evident bullish rejection pushed the NZD/USD pair above 0.6820 again. This was followed by a recent bullish reversal pattern (123 pattern) which enhances the bullish side of the market.

Currently, recent signs of bullish weakness are being manifested on the chart. The bulls are failing to maintain trading above 0.6820 which may endanger the bullish reversal scenario.

Trade Recommendations:

The price zone 0.6750-0.6800 still constitutes a demand zone to be considered for a valid BUY entry.

Bullish fixation above 0.6820 is needed to provide enough bullish momentum towards 0.6900-0.6980.

Please be cautious if the current bearish decline extends below 0.6680 as this invalidates the suggested bullish scenario.

The material has been provided by InstaForex Company - www.instaforex.com

GBP/USD analysis for July 19, 2018

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Recently, GBP/USD has been trading downwards. The price tested the level of 1.2982. Anyway, according to the M30 time - frame, I found 2-hour balance and a potential fake breakout of the support, which is a sign that selling at this stage looks risky. My advice is to watch for a potential breakout of the 1.3020 to confirm a further upward movement. The upward target is set at the price of 1.3080.

Resistance levels: R1: 1.3125R2: 1.3175 R3: 1.3230 Support levels: S1: 1.3020S2: 1.2960 S3: 1.2915

Trading recommendations for today: watch for potential buying opportunities.

The material has been provided by InstaForex Company - www.instaforex.com

EUR/AUD Approaching Support, Prepare For A Bounce!

EUR/AUD is approaching its support at 1.5651 (100% Fibonacci extension, 50% & 38.2% Fibonacci retracement, horizontal overlap support) where we expect price to rise to its resistance at 1.5773 (100% Fibonacci extension, horizontal pullback resistance).

Stochastic (55, 5, 3) bounced off its support at 4.8%. We have also identified a bullish divergence with price which contributes to our bullish divergence.

EUR/AUD is approaching its support where a bounce is expected.

Buy above 1.5651. Stop loss at 1.5598. Take profit at 1.5773.

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The material has been provided by InstaForex Company - www.instaforex.com