BITCOIN Analysis for October 5, 2017

Bitcoin has shown a good amount of impulsive buying after retracing towards the dynamic level of 20 EMA inside the strong Kumo Cloud support area. After two consecutive days of bearish retracement from the bounce off the resistance level of $4,386.80, the price is currently showing some bullish pressure. At present, the Bitcoin market is showing some mature market movement following Impulsive and Corrective sequence along the way. Though there are certain negative reports on the digital currency, Bitcoin has once again proved its strength by showing the gains after the recent bearish pressure. Currently the price is being supported by the dynamic level of 20 EMA and Tenkan Sen which is expected to help the price to break above the $4,386.80 resistance level with a recent target towards $4,500 and later towards $5,000 price level. As the price remains above $4,000 support area, the bullish bias is expected to continue further.

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Fundamental Analysis of EUR/AUD for October 5, 2017

EUR/AUD has been quite corrective and volatile in nature recently below the resistance level of 1.5070. EUR is currently quite steady with the gains, whereas AUD has failed to cope with downbeat economic reports. Today, Australia's Retail Sales report showed a decline to -0.6% from the previous value of -0.2% which was expected to show growth to 0.3% and Trade Balance report showed a proficit of 0.99B from the previous figure of 0.81B which was expected to be at 0.88B. On the EUR side, today Retail PMI report was published with an increase to 52.3 from the previous figure of 50.8 and ECB Monetary Policy Meeting Minutes were quite hawkish in nature which helped the single European currency to gain over AUD in the coming days. As for the current scenario, despite a positive Trade Balance report AUD could not gain ground against EUR today. This indicates that AUD is weaker in comparison to EUR whereas EUR is expected to have an upper hand over AUD leading to further gains on the upside breaking above the resistance of 1.5070.

Now let us look at the technical chart. The price is currently showing a squeeze towards the resistance level of 1.5070 which is expected to break in the coming days. The price has created higher lows inside the corrective volatile structure which indicates a pre-breakout structure. So, a breakout is quite imminent in the coming days. A daily close above 1.5070 will confirm a further bullish move in this pair with a target towards 1.5225. A daily close below 1.4800 will confirm a further bearish move towards 1.4450 support area. As the price remains above 1.4800 support level, which is also the trend line support area, the bullish bias is likely to continue further.

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Fundamental Analysis of AUD/JPY for October 5, 2017

AUD/JPY has been impulsively bearish in nature today in a non-volatile trend structure. AUD and JPY have been quite competitive with recent gains. JPY has shown the impulsive nature today in light of recent downbeat economic reports. Today, Australia presented the Retail Sales report with a decline to -0.6% from the previous drop of -0.2% which was expected to be positive at 0.3%. On the plus side, Trade Balance report was published with a significant proficit of 0.99B from the previous figure of 0.81B which was expected to be at 0.88B. On the other hand, today Japan does not have any economic reports or events to impact the market with. Tomorrow, Japan's Average Cash Earnings report is going to be published which is expected to show a positive result with an increase to 0.5% from the previous value of -0.6% and Leading Indicators is also expected to show an increase to 107.2% from the previous value of 105.2%. As for the current scenario, AUD fell immediately following the negative Retail Sales report from Australia that resulted in strong bearish pressure today. Despite lack of economic reports to drive JPY gains today, the Japanese currency has proved itself strong enough to advance further in the coming days against AUD.

Now let us look at the technical chart. The price has now been trading with an impulsive bearish momentum breaching below the dynamic level of 20 EMA. The daily candle has already engulfed the overall price action of the week which does signal that a daily close with the current structure today will lead to further bearish pressure towards 85.70 support area in the coming days. As the price remains below 89.10 resistance level, the bearish bias is expected to continue further.

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EUR/USD analysis for October 05, 2017

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Recently, the EUR/USD pair has been trading sideways at the price of 1.1740. According to the 30M time- frame, I found a double fake breakout in the background and successful breakout of upawrd trendline, which is a sign that buying looks risky. There is also a hidden bearish divergence on the moving average osiclator, which is another sign of weakness. My advice is to watch for potential selling opportunities. The downward targets are set at the price of 1.1700 and 1.1650.

Resistance levels:

R1: 1.1785

R2: 1.1800

R3: 1.1820

Support levels:

S1: 1.1760

S2: 1.1740

S3: 1.1725

Trading recommendations for today: watch for potential selling opportunities.

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GBP/USD analysis for October 05, 2017

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Recently, the GBP/USD has been trading downwards. As I expected, the price tested the level of 1.3164. According to the 15M time frame, I found a broken 3-day trading range, which is a sign that sellers are in control. I also found a weak demand in the reaction of bearish breakout, which is another sign of weakness. My advice is to watch for potential selling opportunities. The downward targets are set at the price of 1.3130 and 1.3085.

Resistance levels:

R1: 1.3235

R2: 1.3280

R3: 1.3310

Support levels:

S1: 1.3160

S2: 1.3130

S3: 1.3090

Trading recommendations for today: watch for potential selling opportunities.

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Bitcoin analysis for October 05, 2017

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The Bitcoin (BTC) has been trading downwards. As I expected, the price tested the level of $4,132. Last week, South Korean regulators said they would ban all initial coin offerings. They are imposing a "prohibition on all forms of ICOs." However, they have not implemented this ban yet. Now, startups in the area are pushing back against the impending ban. Techincal picture is still very bearish and buyers are weak.

Trading recommendations:

According to the 15M time frame, I found the resistance cluster at the price of $4,236 on the test. I also placed Fibonacci retracement to find potential resistance levels and I got FR 50% at the price of $4,236 and FR 61.8% at the price of $4,258. My advice is to watch for potential selling opportunities. The downward targets are set at the price of $4.126 and $4.016.

Support/Resistance

$4.238 – Intraday resistance (price action)

$4.257 – Fibonacci 61.8 % resistance (price action)

$4.126 – Intraday support (price action)

$4.016 – Objective target

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Technical analysis of USD/CHF for October 05, 2017

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Overview:

  • The USD/CHF pair faced strong resistance at the level of 0.9785 because the double top is set around the area of 0.9785 . So, the strong resistance has already formed at the level of 0.9785 and the pair is likely to try to approach it in order to test it again. However, if the pair fails to pass through the level of 0.9785, the market will indicate a bearish opportunity below the new strong resistance level of 0.9785 or 0.9845 (resistance 2). Moreover, the RSI starts signaling a downward trend, as the trend is still showing strength above the moving average (100) and (50). Thus, the market is indicating a bearish opportunity below the spot of 0.9785/0.9845 so it will be good to sell at 0.9785 with the first target at 0.9707. It will also call for a downtrend in order to continue towards 0.9846. The daily strong support is seen at 0.9603. On the contrary, the stop loss should always be taken into account, for that it will be reasonable to set your stop loss at the level of 0.9845 (major resistance).
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Technical analysis of NZD/USD for October 05, 2017

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Overview:

  • The NZD/USD pair has still traded around the zone support at the level of 0.7131 which represents a double bottom.
  • The strong resistance has been already faced at the level of 0.7131 and the pair is likely to try to approach it in order to test it again.
  • The level of 0.7131 represents a double bottom for that it is acting as minor support this week.
  • The NZD/USD pair is continuing to trade in a bullish trend from the new support level of 0.7131.
  • According to the previous events, we expect the NZD/USD pair to move between 0.7131 and 0.7167.
  • The RSI is still signaling that the trend is upward as it remains strong above the moving average (100). This suggests the pair will probably go up in coming hours.
  • The market is likely to show signs of a bullish trend. Buy orders are recommended above the area of 0.7167/ 0.7131 with the first target at the level of 0.7247. If the trend is able to break the first resistance at the level of 0.7247, then the market will continue rising towards the weekly resistance 2 at 0.7319 (note that the double top is set at 0.7435).
  • On the other hand, stop loss should be set at the level 0.7100 because the last bearish wave is seen at the price of 0.7131 (double bottom).
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Bulls are under the carpet

Eurozone

The business activity index from Markit in September increased to 56.7p, confirming for a stronger European economy in the 3rd quarter. The increase in production rose to a four-month high, primarily due to the expansion of new orders volume that reached a 6.5-year maximum, and also the rate of new jobs creation to the maximum for the entire period of research. Record growth in employment allows us to aim for a recovery in the consumer activity, which is supported by a rise in producer prices for the third month in a row, which has completed the period of a six-month reduction, apparently.

At the same time, one of the main indicators of the health of the economy, particularly the Retail sales, remains at a weak level. In August, sales fell by 0.5%, which is the second consecutive decline for the month, and the overall sales index of the euro area worsen than other EU countries as a whole, and the gap between the two indices are growing.

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The euro has significantly adjusted from the September highs, but as of this writing, the driver is in favor of the exhausted dollar. Investors are worried about the weak employment data in September which will be published on Friday. If the released data came in markedly better than the expectations, it will help reduce the euro to 1.16 below, but the possibility of this thing to happen is not high. The euro is expected to trade near the current levels. The possible growth is limited to the level of 1.1820, which will not be easy without a new strong driver.

United Kingdom

Macroeconomic data from the United Kingdom as a whole is quite negative for the pound. According to Markit, the business activity in the services sector amounted to 53.6p in September, which is close to the lows of the year. The growth activity in the manufacturing sector slowed down to 55.9p compared to 56.9p in August. The worst situation is in the construction sector because of the curtailment of its activity after the stagnation period.

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The pound is under pressure. It is possible that the support of 1.3220 will fail, hence, the pound will continue to decline. The nearest target is 1.2940 / 80.

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Global macro overview for 05/10/2017

Global macro overview for 05/10/2017:

The ADP Non-Farm Employment Change data has beaten market expectations. Global investors expected a decrease from 228k last month to 131k, but the score revealed was at the level of 135k. Moreover, the ISM Non-Manufacturing PMI has been beyond expectations as well, delivering a strong reading at the level of 59.8 points after a drop to 55.3 points a month ago (55.5 was the expected figure).

The latest trend update for private employment growth reflects a healthy advance, even if Hurricanes Harvey and Irma hurt the job market in September. The annual trend in the latest ADP figures support the positive outlook for the job market in the US. Despite the weakness in growth last month, private employment still managed to rise by nearly 2.0% for the year through September. That's at the low end of the year-over-year figures since May, but it's moderately above the range for the 12 months through this past April. Nevertheless, the ADP collects data from customers who only account for one-fifth of the workforce in the US economy.

In conclusion, data from the US are subject to hurricane impact and paradoxically statistical noise works both ways. Worse data will be underestimated as they will reflect hurricane damage and better than expected data are meant to be a sign of the restoration work started. The wait-and-see approach seems to be the best strategy for all macro traders at present.

Let's now take a look at the US Dollar Index technical picture on the H4 time frame. The market is trading in a narrow zone between the levels of 93.20 - 93.63, but the momentum indicator is still just above its fifty level. Nevertheless, the key level to the upside is still at the level of 94.14.

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Global macro overview for 05/10/2017

Global macro overview for 05/10/2017:

The Retail Sales data from Australia has surprised market participants. They expected a 0.3% increase on a monthly basis after a -0.2% drop last month, but the number delivered was at the level of -0.6%. The Retail Sales data are a good gauge for goods sold at retail outlets in the past month and are a leading indicator for the economy. Rising consumer spending fuels economic growth, confirms signals from consumer confidence, and may spark inflationary pressures.

The disappointing decline in sales in Australia has hit hard AUD and shows that the Reserve Bank of Australia will not get arguments to think of a rate hike anytime soon. The market has so far been more optimistic, so the re-evaluation will pull AUD downward.

In a situation where central banks have more and more signals of moving away from ultra-loose monetary policy, the RBA stance may be a ballast for the AUD. The Australian economic growth is still closely tied to the Chinese economy, which is being supported by increased spending on infrastructure and property construction, with the high level of debt continuing to present a medium-term risk. Any sign of problems in China will greatly influence the Australian economy and its currency.

Let's now take a look at AUD/USD technical picture on the H4 tiem frame. The price has tested the Rising Wedge upper line from below and currently, it bounced off it towards the technical resistance at the level of 0.7875 again. So far the momentum is not strong enough to sustain the bounce, but as long as the level of 0.7800 is not violated, the short-term outlook remains bullish.

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Elliott wave analysis of EUR/NZD for October 5, 2017

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Wave summary:

EUR/NZD is now breaking above minor resistance at 134.10 and a clear break above resistance at 1.6451 too, will add upside acceleration for a continuation to 1.6690 and 1.6875 as the next upside targets.

Short-term, minor support at 1.6410 ideally will be able to protect the downside, but only a break below support at 1.6344 will delay the expected rally, but the potential downside, seems very limited from here.

R3: 1.6533

R2: 1.6488

R1: 1.6451

Pivot: 1.6410

S1: 1.6344

S2: 1.6289

S3: 1.6236

Trading recommendation:

We are long EUR from 1.6365 with stop placed at 1.6250. If you are not long EUR yet, then buy near 1.6410 or upon a break above 1.6451 and place your stop at 1.6325.

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Elliott wave analysis of EUR/JPY for October 5, 2017

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Wave summary:

EUR/JPY is being locked inside a narrow trading-range between 132.16 - 132.89, this range-trading should ultimately resolve itself towards the downside and a break below 132.16 for a continuation towards 130.37 and likely even lower and wave (E) starts to gather downside momentum.

At this point, a short-term mini spike to just above 132.89 can not be excluded, but will likely turn out to be a mini bear-trap.

R3: 133 23

R2: 133.12

R1: 132.89

Pivot: 132.45

S1: 132.16

S2: 131.70

S3: 131.13

Trading recommendation:

We are short EUR from 133.00 with stop placed at 133.55. If you are not short EUR yet, then sell near 132.89 or upon a break below 132.16 and use the same stop at 133.55.

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NZD/USD Intraday technical levels and trading recommendations for October 5, 2017

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Daily Outlook

In February 2017, the depicted short-term downtrend was initiated around the depicted supply zone (0.7310-0.7380).

However, a recent bullish breakout above the downtrend line took place on May 22. Since then, the market has been bullish as depicted on the chart.

The price zone of 0.7150-0.7230 (Key-Zone) stood as a temporary resistance zone until a bullish breakout was expressed above 0.7230.

This resulted in a quick bullish advance towards the next supply zone around 0.7310-0.7380 which was temporarily breached to the upside.

Recent bearish pullback was executed towards the price zone of 0.7310-0.7380 (newly-established demand-zone) which failed to offer enough bullish support for the NZD/USD pair.

Re-consolidation below the price level of 0.7300 enhances the bearish side of the market. This brings the NZD/USD pair again towards 0.7230-0.7150 (Key-Zone) where recent weak bullish recovery was manifested earlier in September.

An atypical Head and Shoulders pattern is being expressed on the depicted chart indicating high probability of bearish reversal.

The current price levels of 0.7320-0.7350 can be watched for a valid SELL entry if enough bearish rejection is expressed.

Breakdown of the neckline 0.7150 confirms the reversal pattern. Expected bearish targets are located around 0.7050, 0.6925 and eventually 0.6800.

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Intraday technical levels and trading recommendations for EUR/USD for October 5, 2017

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Monthly Outlook

In January 2015, the EUR/USD pair moved below the major demand levels near 1.2050-1.2100 (multiple previous bottoms set in July 2012 and June 2010). Hence, a long-term bearish target was projected toward 0.9450.

In March 2015, EUR/USD bears challenged the monthly demand level around 1.0500, which had been previously reached in August 1997.

In the longer term, the level of 0.9450 remains a projected target if any monthly candlestick achieves bearish closure below the depicted monthly demand level of 1.0500.

However, the EUR/USD pair has been trapped within the depicted consolidation range (1.0500-1.1450) until the current bullish breakout was executed above 1.1450.

The current bullish breakout above 1.1450 allowed a quick bullish advance towards 1.2100 where recent evident of bearish rejection was expressed.

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Daily Outlook

In January 2017, the previous downtrend reversed when the Head and Shoulders pattern was established around 1.0500. Since then, evident bullish momentum has been expressed on the chart.

As anticipated, the ongoing bullish momentum allowed the EUR/USD pair to pursue further bullish advance towards 1.1415-1.1520 (Previous Daily Supply-Zone).

The daily supply zone failed to pause the ongoing bullish momentum. Instead, evident bullish breakout is being witnessed on the chart. The next Supply level to meet the pair is located around 1.2100 (Level of previous multiple bottoms) where bearish rejection and a valid SELL entry can be anticipated.

On the other hand, If the current bearish breakout persists below 1.1800 (the depicted uptrend line) and 1.1700, a quick bearish decline should be expected towards the price zone of 1.1415-1.1520 where BUY entries can be offered.

Trade Recommendations

Bullish pullback towards the price zone of 1.1835-1.1850 (the backside of the broken uptrend line) should be considered for a valid SELL entry.

S/L should be placed above 1.1950.

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Bitcoin analysis for 05/10/2017

Bitcoin analysis for 05/10/2017:

General Manager Larry Fink, the world's largest asset management company, sees huge opportunities in cryptocurrency and points out that they need to be explored before they are universally accepted.In a recent interview with Bloomberg TV, BlackRock boss said he is "a big believer" but the current market is focused mainly on speculation. He said: "I am a great supporter of the cryptocurrency potential. I see tremendous opportunities, but what we are talking about today is much more speculative". Although the speculative nature of digital currency is an important issue for Fink, he states that their most important problem is that they are used to money laundering. Nevertheless, Fink is convinced that now is a good time to be active in the cryptocurrency market, letting know that in the coming years, digital currencies will become everyday bread.

Let's now take a look at the Bitcoin technical picture at the H4 time frame. The market has broken below the technical support at the level of $4,211 but still, trades above the weekly pivot at the level of $4,143. The market conditions look oversold, so the support zone between the levels of $4,000 - $ 4,111 might be a reversal/bounce zone for the price. From the Elliott Wave Theory point of view, there is still unfinished wave to the downside, but it does not have to break below the wave A low at the level of $,2956.

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BITCOIN Analysis for October 4, 2017

Forex analysis review
BITCOIN Analysis for October 4, 2017

Trading plan for 05/10/2017

Trading plan for 05/10/2017:

An unexpected drop in retail sales in Australia was the only volatile moment of sleepy trading hours in Asia. The rest of forex pairs remained in narrowband fluctuations. The DXY Dollar Index is unmoved, the EUR/USD pair has found a stop at 1.1750, and USD/JPY cannot break through at 112.90. It was also quiet on the stock market. Crude Oil remains close to $50, and Gold holds at $1,275 level.

On Thursday 5th of October, the economic calendar is light in important news releases. Early in the morning, Switzerland will release Consumer Price Index data and ECB will release Monetary Policy Meeting Accounts data. During the US session, Canada will release Trade Balance data and the US will post Unemployment Claims and Factory Orders data. Some speeches are scheduled later today from FOMC members Jerome Powell, Patrick Harker, and John Williams.

EUR/USD analysis for 05/10/2017:

Financial market participants will be most interested in European Central Bank Policy Meeting Minutes that are scheduled for release at 11:30 am GMT. Usually, these post-meeting minutes have a rather low impact on markets, but today it might be different, given the heightened role of the currency and overall financial conditions in the ECB's policy reaction function. Moreover, the minute's report may hint the ECB Governing Council's QE taper preferences as well. Recently the official ECB point of view was wariness over additional EUR strength, but in the minutes there might be some discussions leaning towards acceptance of a strong EUR under certain economic conditions. This small shift in tone would be a giant leap forward for all EUR bulls. There is a low probability, that there'll be too much in the way of exact details on how the ECB might taper its asset purchases, but the current anticipation of a pace of the asset purchases is rather cautious, so any mentions that taper may be bigger (in size) and faster (in time) will definitely support the EUR across the board.

Let's now take a look at the EUR/USD technical picture on the H4 time frame. The key level to the upside is the technical resistance at the level of 1.1847, so as long as the market stays below this level the bias is bearish. The upside momentum is decreasing as the RSI indicator can barely move above its fifty level so far. The key technical support is at the level of 1.1614.

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Market Snapshot: EUR/GBP bouncing higher

The price of EUR/GBP has broken above the technical resistance at the level of 0.8901 and now is heading towards the 38%Fibo at the level of 0.8959. The market conditions are oversold on a daily time frame, but the momentum oscillator is still under its fifty level (but pointing north). The next technical resistance is seen at the level of 0.8980.

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Market Snapshot: GBP/USD breaks below the trend line

The price of GBP/USD has definitely broken below the trend line and now is trading close to the level of technical support at 1.31 54. Nevertheless, there is a clear, visible bullish divergence between the price and momentum oscillator, so some kind of a corrective counter-trend move is expected soon.

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Breaking Forecast 10.05.2017

Breaking Forecast 05.10.2017

The EURUSD rate in the last two days has sharply reduced activity - which is traditionally the case before a strong move.

There were strong news - but they were multi-directional. The US employment report from the ADP agency showed a strong decline in new jobs in September; showing a gain of 135, 000 against 228, 000 increase last month. However, the strong hurricane in the USA was taken into account.

On the contrary, the report on the ISM service index showed a growth above estimates at +59.8, the forecast is +55.5.

The market is nervous over the conflict between Spain and Catalonia. On Wednesday evening, the Catalan leader again stated that he would not retreat from the course of independence - but did not say when he plans to proclaim independence from Spain.

Catalonia called on Madrid to negotiate the recognition of independence. Madrid strongly rejected the proposal.

Earlier, the EU said that in case of a unilateral withdrawal of Catalonia from Spain - Catalonia can not become a member of the EU.

The market has stopped and is preparing for a strong move.

There are no important news on Thursday. On Friday, the important news will be nonfarm payrolls data.

Perhaps the market will wait for movement until Friday, but it is possible that it will go ahead with a direction.

Be prepared to take a position in the direction of movement, placing a breakout order, as shown in the figure below:

Buy above 1.1835

Sell below 1.1695

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Elliott wave analysis analysis of USDX for October 05, 2017

The Dollar index has broken out and below the bullish channel. The upside correction is most probably complete. However, in order to cancel any bullish wave count, price will need to overlap the high of wave A.

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Red lines - bullish channel

The Dollar index remains in a bullish trend. Price made a reversal lower the last couple of sessions. Is it enough? Price so far has been making higher highs and higher lows. A move below 92.95 will cancel that and will give bears the upper hand. The above wave count is my preferred one. However in order for this wave count to be confirmed, we will need price to move past and below the high of wave A.

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This way we will have canceled the possibility that the current pull back is wave 4 of the up trend. On a daily basis however, price remains inside the bearish channel. I expect price to get rejected at current levels and push to new lows. I believe the bounce off 91 is a wave 4 corrective wave and wave 5 down should follow.The material has been provided by InstaForex Company - www.instaforex.com

Technical analysis of gold for October 05, 2017

Gold price broke out of the downward sloping triangle pattern as we expected given the signs from the bullish divergence in the RSI. However the bounce was not as strong as we expected, mainly because of the strength in the Dollar and mainly in the USDJPY.

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Black line - resistance (broken)

Gold price is trading above the black resistance trend line but below the Kumo (cloud). Price remains in a bearish trend as we have not seen a sequence of higher highs and higher lows yet and the previous high at $1,290 remains intact. This is the most important short-term resistance now. Breaking above could push Gold towards $1,300 and higher. Support is at $1,268.

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Breaking below support will open the way for a push lower towards $1,260-50. On a daily basis as shown above, the RSI is diverging and our longer-term view remains bullish and we still consider this pullback as a buying opportunity for the next move above $1,400.The material has been provided by InstaForex Company - www.instaforex.com

Technical analysis of USD/JPY for October 05, 2017

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USD/JPY is expected to trade with a bullish bias above 112.50. The pair posted a rebound from 112.30 (the low of Oct. 4) and broke above its 20-period and 50-period moving averages. The relative strength index is above its neutrality level at 50 and lacks downward momentum.

To conclude, as long as 112.50 is not broken, look for a further rebound with targets at 113.20 and 113.50 in extension.

Alternatively, if the price moves in the opposite direction, a short position is recommended below 112.50 with a target at 112.30.

Chart Explanation: The black line shows the pivot point. The current price above the pivot point indicates a bullish position, while the price below the pivot point is a signal for a short position. The red lines show the support levels and the green line indicates the resistance level. These levels can be used to enter and exit trades.

Strategy: SELL, Stop Loss: 112.50, Take Profit: 113.20

Resistance levels: 113.20, 113.50 and 113.75 Support Levels: 112.30, 112.05, 111.75

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Technical analysis of USD/CHF for October 05, 2017

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USD/CHF is expected to trade with a bullish outlook. The pair made a rebound and broke above its 20-period and 50-period averages. In addition, the 50-period moving average is turning up. The relative strength index is bullish, calling for a further upside.

The U.S. dollar lacked momentum in either direction as investors are alert to U.S. President Donald Trump's nomination for the Federal Reserve chair in the coming weeks. They were also cautious ahead of the official September jobs report due Friday. The ICE Dollar Index edged down to 93.45 from 93.56 Tuesday.

To conclude, as long as above 0.9730 holds on the downside, look for a new advance with targets at 0.9785 and 0.9805 in extension.

Chart Explanation: The black line shows the pivot point. The present price above the pivot point indicates a bullish position, and the price below the pivot points indicates a short position. The red lines show the support levels and the green line indicates the resistance levels. These levels can be used to enter and exit trades.

Strategy: SELL, Stop Loss: 0.9745, Take Profit: 0.9700

Resistance levels: 0.9785, 0.9805, and 0.9845

Support levels: 0.9710, 0.9685, and 0.9625

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Technical analysis of GBP/JPY for October 05, 2017

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The pair is under pressure below the key resistance at 149.60. The relative strength index has been capped by a declining trend line since October 4. The British pound rebounded after a two-day decline, as the IHS Markit/CIPS Purchasing Managers' Index rose to 53.6 in September from 53.2 in August.

Therefore, as long as 149.60 is not broken, look for a further decline to 148.55. A break below this level would trigger another decline to 148.15.

Alternatively, if the price moves in the direction opposite to the forecast, a long position is recommended above 149.60 with the target at 149.90.

Strategy: SELL, Stop Loss: 149.60, Take Profit: 148.55

Chart Explanation: the black line shows the pivot point. The price above the pivot point indicates long positions; and when it is below the pivot points, it indicates short positions. The red lines show the support levels and the green line indicates the resistance levels. These levels can be used to enter and exit trades.

Resistance levels: 149.90, 150.25 and 151.00

Support levels: 148.55, 148.15, and 147.75

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Technical analysis of NZD/USD for October 05, 2017

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Our first target which we predicted in yesterday's analysis has been hit, capped by a downward trend line. The technical outlook of the pair is negative as the price has been capped by a bearish trend line since October 4. The 20-period moving average crossed below the 50-period one. The relative strength index is bearish and is calling for a further downside.

Therefore, below 0.7175, look for a new test with targets at 0.7125 and 0.7105 in extension.

The black line is showing the pivot point. Currently, the price is above the pivot point, which indicates long positions. If it remains below the pivot point, it will indicate short positions. The red lines are showing the support levels and the green line is indicating the resistance levels. These levels can be used to enter and exit trades.

Resistance levels: 0.7190, 0.7205, and 0.7245

Support levels: 0.7125, 0.7105, and 0.7070

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Technical analysis of EUR/USD for Oct 05, 2017

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When the European market opens, some Economic Data will be released, such as ECB Monetary Policy Meeting Accounts, French 10-y Bond Auction, Spanish 10-y Bond Auction, and Retail PMI. The US will release the Economic Data, too, such as Natural Gas Storage, Factory Orders m/m, Trade Balance, Unemployment Claims, and Challenger Job Cuts y/y, so, amid the reports, EUR/USD will move in a low to medium volatility during this day.

TODAY'S TECHNICAL LEVEL:

Breakout BUY Level: 1.1812.

Strong Resistance:1.1805.

Original Resistance: 1.1794.

Inner Sell Area: 1.1783.

Target Inner Area: 1.1755.

Inner Buy Area: 1.1727.

Original Support: 1.1716.

Strong Support: 1.1705.

Breakout SELL Level: 1.1698.

Disclaimer: Trading Forex (foreign exchange) on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

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BITCOIN Analysis for October 4, 2017

Bitcoin has been quite bearish recently after bouncing off the $4,386.80 resistance level. Recently, the US Federal Authorities collected almost $50 million in Bitcoin Seizing action, which is not only a bad news for the Bitcoin, but for all the digital currencies in the world. It is expected that all the digital currencies are used in illegal activities, which must be stopped very soon. After the news got viral, the Bitcoin market has seen some downturn after proceeding higher than $4,000 recently. The price is currently residing in the short-term correction retracing towards the dynamic level of 20 EMA within the Kumo Cloud, which does indicate that the price is more likely to proceed upwards with a break of the $4,386.80 resistance level. If the price breaks above the $4,386.80 resistance level with a daily close, then it is expected that the price will proceed higher towards $4,500 and later towards the $5,000 price level in the future. As the price remains above the $4,000 support level, the bullish bias is expected to continue further.

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Daily analysis of USDX for October 05, 2017

The index is looking to test the 200 SMA on H1 chart in an effort to gain momentum in the short term. With a break below that area, doors should be opened to reach the support level of 91.67 in coming days. Fractals have been formed in the recent lower swing and it should provide weakness across the board. MACD indicator remains flat, calling for sideways moves in USDX.

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H1 chart's resistance levels: 94.04 / 94.58

H1 chart's support levels: 93.00 / 91.67

Trading recommendations for today: Based on the H1 chart, place buy (long) orders only if the USD Index breaks with a bullish candlestick; the resistance level is at 94.04, take profit is at 94.58 and stop loss is at 93.50.

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Daily analysis of GBP/USD for October 05, 2017

The pair is looking for catalysts as it remains trapped in a consolidative phase. The 200 SMA is still guiding the path and one could expect more declines to take place. If that happens, GBP/USD should break below the support zone of 1.3209 in order to extend the bearish tone towards the 1.3121 level. MACD indicator is entering neutral territory.

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H1 chart's resistance levels: 1.3309 / 1.3446

H1 chart's support levels: 1.3209 / 1.3121

Trading recommendations for today: Based on the H1 chart, sell (short) orders only if the GBP/USD pair breaks a bearish candlestick; the support level is at 1.3209, take profit is at 1.3121 and stop loss is at 1.3294.

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Fundamental Analysis of USD/CAD for October 4, 2017

The liquidity in USD/CAD has been low this week with corrective and volatile price action all along. Recently, CAD has had a series of bad economic reports providing an opportunity to USD to gain ground. Ahead of the high impact economic reports on Friday, both currencies in this pair are currently residing in indecision phase. Today the ADP Non-Farm Employment Change report showed a decrease to 135k from the previous value of 228k which was expected to be at 131k. Besides, the Final Services PMI report showed a slight increase to 55.3 which was expected to be unchanged at 55.1. Furthermore, the ISM Non-Manufacturing PMI report was published with an increase to 59.8 from the previous figure of 55.3 which was expected to be at 55.5 and the Crude Oil Inventories report showed greater deficit to -6.0M from the previous figure of -1.8M which was expected to show less deficit at -0.5M. On the CAD side, there were no economic events or reports published but tomorrow the Trade Balance report is to be published which is expected to show less deficit to -2.6B from the previous figure of -3.0B. On Friday Canada will release the Employment Change report which is expected to show a decrease to 13.4k from the previous figure of 22.2k and the Unemployment report is expected to be unchanged at 6.2%. Though USD Non-Farm Employment Change, Average Hourly Earnings and Unemployment Rate reports are also going to be published on Friday with CAD high impact reports which is expected to create greater volatility in the market, thus providing directional bias for the upcoming move in the future.

Now let us look at the technical view. The price is currently residing above the support level of 1.2420 and expected to push higher towards 1.2660 resistance level in the coming days. As of the upcoming high impact economic reports, the pair is currently quite corrective and less liquid and after the weekly close it is expected that the price will disclose the upcoming directional bias of the market.

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Fundamental Analysis of EUR/JPY for October 4, 2017

EUR/JPY has been quite volatile recently after bouncing off the 134.40 resistance level. The bullish trend was quite impressive before the price countered with bearish intervention to push the price lower. Today, a series of economic reports was published in the eurozone which helped the currency to gain consistent momentum over JPY throughout the day. Today, Spanish Services PMI report was published with an increased figure at 56.7 from the previous figure of 56.0 which was expected to be at 55.5, Italian Services PMI report was published with a decrease to 53.2 from the previous figure of 55.1 which was expected to be at 54.8, French Final Services PMI was published with a slight decrease to 57.0 which was expected to be unchanged at 57.1, German Final Services PMI report was published as expected with an unchanged figure at 55.6, and the eurozone's Final Services PMI report was published with a slight increase to 55.8 which was expected to be unchanged at 55.6. Along with these economic reports, the eurozone's Retail Sales report was published with a greater deficit of -0.5% from the previous value of -0.3% which was expected to show a positive change to 0.3%. On the JPY side, recent economic reports were quite mixed in nature that did not quite help JPY to gain any momentum over EUR. This Friday, Japan's Average Cash Earnings report is going to be published which is expected to show a positive change to 0.5% from its negative previous value of -0.6% and Leading Indicators report is also expected to show a rise to 107.2% from the previous value of 105.2%. As for the current scenario, EUR is expected to have an upper hand over JPY and the bullish trend is expected to continue further in the coming days. As of Friday, Japan's economic reports are due. If we see any positive outcome of the reports, then the market is expected to be volatile and correct itself before showing any directional move.

Now let us look at the technical chart. The price is currently residing inside a tight corrective range which is expected to break higher towards 134.40 resistance level again. After the bearish impulsive pressure, the price seems to get some barriers to proceed much downward which is indicating that the strength of bears is not quite strong to push the price much lower. As the price remains above the dynamic level of 20 EMA and 131.40 support level, the bullish bias is expected to continue further.

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