Daily analysis of USDX for October 13, 2017

USDX continues to strengthen the bearish bias on a short-term basis, but still remains supported by the psychological level of 93.00. If that zone gives in to the bears' force, the index could look to extend the downside towards the 91.67 level. However, if it manages to rebound, focus should be shifted to the resistance zone of 94.04.

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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 13, 2017

GBP/USD has found a strong resistance in the 200 SMA vicinity and is looking forward to testing the October 6th lows in coming days. Following that pullback, the pair is forming a fractal around the 1.3150 level and possibly this is the move before resuming the bearish bias. To the upside, the moving average remains as a critical level.

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H1 chart's resistance levels: 1.3195 / 1.3309

H1 chart's support levels: 1.3037 / 1.2914

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 1.3037, take profit is at 1.2914 and stop loss is at 1.3161.

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Bitcoin analysis for October 13, 2017

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Bitcoin (BTC) has been trading upwards. As I expected, the price tested the level of $5.834 driven on the news from Russia. Vladimir Putin and Russian regulators announced that cryptocurrencies will officially be regulated in Russia. The central bank and the finance ministry will now work together to come up with one draft law to provide a basic regulatory framework for cryptocurrencies including bitcoin, which is expected by the year's end. The technical picture today looks bullish.

Trading recommendations:

According to the 30M time frame, I found that price is respecting 20EMA, which is a sign that buyers are in control. ADX incitcaor is trading above 30 period, which is another sign of strength. My advice is to watch for potential selling opportuntiies. The upward targets are set at the price of $5.834 AND $6.310.

Support/Resistance

$5.370 – Intraday support (price action)

$5.248 – Intraday low - support (price action)

$5.384 – Intraday resistance and first upward target (price action)

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Technical analysis of USD/JPY for October 13, 2017

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All our targets which we predicted in yesterday's analysis have been hit. USD/JPY is still under pressure and expected to trade in a lower range. The pair is capped by a bearish trend line since October 11, which confirmed a negative outlook. Both declining 20-period and 50-period moving averages are playing resistance roles. The relative strength index is also capped by a falling trend line since October 12.

Hence, below 112.30, look for a further decline with targets at 111.55 and 111.45 in extension.

Alternatively, if the price moves in the opposite direction, a long position is recommended above 112.60 with a target at 112.80.

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: 112.30, Take Profit: 111.55

Resistance levels: 112.60, 112.80 and 113.15 Support Levels: 111.55, 111.45, 111.00

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GBP/USD analysis for October 13, 2017

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Recently, the GBP/USD pair has been trading upwards. The price spiked at the level of 1.3320. Anyway, according to the 15M time - frame, I found strong resistance at the prirce of 1.3320, which is a sign that buying at this stage looks risky. There is a hidden bearish divergence on the moving average osiclator, which is another sign of weakness. My advice is to watch for potential selling opportuntiies. Downward targets are set at the price of 1.3250 and 1.3240.

Resistance levels:

R1: 1.3330

R2: 1.3390

R3: 1.3500

Support levels:

S1: 1.3160

S2: 1.3050

S3: 1.2990

Trading recommendations for today: watch for potential selling opportunities.

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Technical analysis of USD/CHF for October 13, 2017

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USD/CHF is expected to trade with a bearish outlook. The technical outlook of the pair turned bearish as the prices broke below the rising trend line. The 20-period moving average crossed below the 50-period one. The relative strength index lacks upward momentum.

To sum up, as long as 0.9765 is not surpassed, look for a new test to 0.9700 and even to 0.9680 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: 0.9765, Take Profit: 0.9700

Resistance levels: 0.9790, 0.9810, and 0.9845

Support levels: 0.9700, 0.9680, and 0.9640

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EUR/USD analysis for October 13, 2017

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Recently, the EUR/USD pair has been trading upwards. The price spike at the level of 1.1874. Anyway, according to the 30M time - frame, I found strong resistance around the prirce of 1.3870-1.3880, which is a sign that buying at this stage looks risky. My advice is to watch for potential selling opportuntiies. Downward targets are set at the price of 1.1850 and 1.1805.

Resistance levels:

R1: 1.1865

R2: 1.1900

R3: 1.1920

Support levels:

S1: 1.1810

S2: 1.1790

S3: 1.1755

Trading recommendations for today: watch for potential selling opportunities.

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Technical analysis of GBP/JPY for October 13, 2017

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GBP/JPY is expected to trade witha bullish outlook. The pair is rebounding from its support around 148.50 and is likely to challenge its key resistance at 149.50, representing an intraday horizontal level. The relative strength index is also turning up, and calls for further advance. In addition, the 20-period moving average has crossed above the 50-period one (another bullish signal).

To conclude, as long as 148.50 is not broken, likely advance to 149.50 and 149.85 in extension.

Alternatively, if the price moves in the direction opposite to the forecast, a short position is recommended below 148.50 with the target at 148.00.

Strategy: BUY, Stop Loss: 148.50, Take Profit: 149.50

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: 149.50, 149.85 and 150.35

Support levels: 148.00, 147.50, and 147.00

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Technical analysis of NZD/USD for October 13, 2017

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Our first target which we predicted in yesterday's analysis has been hit. NZD/USD still expected to trade with a bullish outlook. Despite the recent pullback from 0.7145 (the high of Oct. 12), the pair is still trading above the rising 50-period moving average. The relative strength index is above its neutrality level at 50. Even though a continuation of the consolidation cannot be ruled out, its extent should be limited.

Therefore, above 0.7105, look for another advance to 0.7165 and even to 0.7190 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: 0.7145, 0.7165, and 0.7190

Support levels: 0.7030, 0.7000, and 0.6955

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Global macro overview for 13/10/2017

Global macro overview for 13/10/2017:

Jean Claude Juncker, the President of European Commission, says the Brexit process will take longer than the UK expected. After another week of negotiations, the orginal Brexit deadline of April 2019 is still out of reach as both parties are still unable to find "a real compromise as far as the remaining financial commitments of the UK are concerned" - Juncker said in a speech at the University of Luxembourg. Moreover, he added: "The British are discovering, as we are, day after day new problems. That's the reason why this process will take longer than initially thought."

The UK chief of negotiations Michael Barnier, which finally proposed the possibility of applying a two-year transitional period, was not happy about the state of the negotiations deadlock as well. He said he would not recommend that Brexit talks move on to the second phase as the current state of affairs is not in the UK favour.

In conclusion, no great step forward after another week of EU-UK negotiations, suppose more progress could be made in time for the next European Council meeting before Christmas.

Let's now take a look at GBP/USD technical picture in the H4 time frame. At the beginning, the price dropped towards the dashed trend line support to test the level of 1.3111 and then bounced back after the Barnier comments. Currently, the market has broken out above the technical resistance zone between the levels of 1.3269 - 1.3293 and it is heading towards the level of 1.3342 in overbought market conditions.

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Global macro overview for 13/10/2017

Global macro overview for 13/10/2017:

According to economists, the candidates are: current Chairperson Janet Yellen, Vice President Jerome Powell, Chief Economic Officer Gary Cohn and Kevin Warsh. Not putting too much emphasis on the topic, among the four nominees, Janet Yellen is considered the most dovish about the future monetary policy.

At the beginning of the month, the number one candidate to replace Janet Yellen in the chair of the Fed became Kevin Warsh. It would be the best choice for the US Dollar as it is perceived as a fierce critic of quantitative loosening policies and a person concerned by excessively loose financial conditions in the economy. Jerome Powell (from the Fed's Board of Governors) is definitely ahead of the pack. The illusory probability is attributed to candidates Janet Yellen and Gary Cohn.

The verdict of Trump administration is to be announced even today and might cause an increased volatility in the currency market. If we add that the rotation of voting FOMC members next year is towards a more hawkish group, then all of this favors a further increase in US bond yields and ongoing support of USD rally.

Let's now take a look at the USD/CAD technical picture in the H4 time frame. The price has fallen out of the golden channel and now is trading inside of a narrow range between the levels of 1.2483 - 1.2416. To move lower, the bear would have to break through the support zone between the levels of 1.2416 - 1.2454. Then the next technical support would be seen at the level of 1.2338.

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The dollar is betting on the hawks

Bulls and bears in the EUR/USD decided to declare a truce. Each of the opponents tries to gain time. Euro buyers expect a solution to the conflict over Catalonia, where all the dogs, it seems, have decided to depend on to President Carles Puigdemont. Withdrawal from the shadow of political risks will return the attention of investors to the issues of normalization of the monetary policy of the ECB, which will allow to count on the recovery of the uptrend in the main currency pair. Fans of the dollar are betting on the passage of tax reform through the Congress and the choice of Donald Trump for the post of the chairman of the Fed. The acceleration of the US economy and increasing the likelihood of tightening the monetary policy of the Federal Reserve over the past few years have faithfully served the bulls at the USD index.

If in 2015-2016 the US dollar had no competitors among the G10 currencies, since the Fed was the only central bank that was tightening monetary policy, in 2017 the situation changed. The recovery of the economies of the monetary bloc countries and the defeat of Eurosceptics in the Netherlands and in France allowed the ECB to openly talk about the exit from the QE. According to reliable sources from Bloomberg, the European regulator is considering the possibility of reducing purchases from the current 60 to 30 billion euros per month from January 2018. Benoit Coeure argues that if the program lasts too long, the risks of financial instability will grow by leaps and bounds.

Thus, if a year or two ago the successes or failures of the dollar were connected with internal factors, primarily with the uncertainty or determination of the Fed, then this year its competitors made it an outsider. A part of the losses can be reversed by the implementation of the tax reform and reorganization in the Fed. If yesterday's hawk Kevin Warsh comes to power, the risks of aggressive monetary restriction will accelerate the current correction on the USD index. Experts of the Wall Street Journal prefer this particular candidate (probability 28% versus 21-22% for the main competitors), while bookmakers bet on Jerome Powell.

Dynamics of the probability of winning candidates for the post of head of the Fed

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Source: Zero Hedge.

In my view, it is not necessary to count especially on the fact that hawks will dominate the new FOMC structure. Donald Trump has repeatedly said that he is a fan of low interest rates and a weak dollar, besides GDP can accelerate to 3% much earlier, if the Federal Reserve postpone the normalization of the monetary policy. Thus, the potential for a possible correction in EUR/USD looks limited to 1.14-1.16.

In order to be able to talk about the recovery of the "bullish" trend in the main currency pair, political risks must disappear the eurozone, and adoption of a bill to amend the tax code should be delayed. For now, it's too early to discuss this, therefore, the most preferred option for the EUR/USD development is consolidation.

Technically, rebound from resistance by 50% and 61.8% from the wave of CD pattern 5-0 can be used for euro selling.

EUR/USD, daily chart

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Technical analysis of NZD/USD for October 13, 2017

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Overview:

  • The NZD/USD pair continues to rise from the level of 0.7128 in the long term. It should be noted that the support is established at the level of 0.7128 which represents the 38.2% Fibonacci retracement level on the H1 chart. The price is likely to form a double bottom in the same time frame. Accordingly, the NZD/USD pair is showing signs of strength following a breakout of the highest level of 0.7128. So, buy above the level of 0.7128 with the first target at 0.7171 in order to test the daily resistance 1 and further to 0.7203. Also, it might be noted that the level of 0.7242 is a good place to take profit because it will form a double top. On the other hand, in case a reversal takes place and the NZD/USD pair breaks through the support level of 0.7128/0.7087, a further decline to 0.7055 can occur which would indicate a bearish market.
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Technical analysis of USD/CHF for October 13, 2017

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Overview:

  • The USD/CHF pair is still set above the area of 0.9733. Besides, it should be noted that the pair broke resistance which turned to strong support at the level of 0.9708, which is expected to act as major support in coming two days. The RSI is considered overbought because it is above 30. The RSI is still signaling that the trend is upward as it is still strong above the moving average (100). This suggests the pair will probably go up in coming hours. Accordingly, the market is likely to show signs of a bullish trend. In other words, buy orders are recommended above 0.9708 with the first target at the level of 0.9772. From this point, the pair is likely to begin an ascending movement to the point of 0.9816 and further to the level of 0.9836. The level of 0.9816 will act as strong resistance and the double top is already set at the point of 0.9836. On the other hand, if a breakout happens at the support level of 0.9700, then this scenario may become invalidated.
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BITCOIN Analysis for October 13, 2017

Bitcoin has been impulsively bullish recently after breaking above the $5,000 price level with a daily close. After the Chinese ICO ban effect, the Cryptocurrency gained quite steadily earlier. After breaking the $5,000 level the market sentiment has driven the market impulsively leading to further gains on the upside with a target towards $6,000. The price is currently residing above the $5,600 level after taking over the psychological level of $5,500. Consolidation is expected to unfold in November because of the Bitcoin Split which may affect the growth of the Cryptocurrency with a significant impact. Currently, the Bitcoin price is likely to come back to the mean level of 20 EMA with some retracement before pushing up higher towards $6,000 resistance area. As the price remains above the $5,000 support area the bullish bias is expected to continue further.

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Fundamental Analysis of AUD/JPY for October 13, 2017

AUD/JPY has been quite corrective in nature showing some bullish gains recently towards the 88.00 resistance level. AUD has been quite positive with the economic reports recently which helped the currency to gain some momentum against JPY in last few days. JPY has also been very positive with the economic reports making the gains of AUD quite competitive. Today, Australia's RBA Financial Stability Review was held where the financial stability and future monetary policies were discussed which expressed the hawkish stance and helped the currency to extend gains against JPY. On the other hand, JPY M2 Money Stock report was published today with an increase to 4.1% from the previous value of 4.0% which was expected to be unchanged. To sum up, despite Japan's upbeat economic reports published recently it did not help the currency to gain good momentum against AUD today. This indicates that AUD is in a stronger position than JPY and further bullish pressure is expected in this pair in the future.

Now let us look at the technical chart. The price is currently being held by the dynamic level of 20 EMA and 88.00 level as resistance. If the price breaks above the dynamic level and 88.00 level with a daily close in the coming days, then we will consider buy positions in this pair with a target towards 89.10 resistance area. On the other hand, if the price rejects off the resistance area of 88.00 with a daily close, then we will plan sell positions with a target towards 85.50-70 support area.

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Fundamental Analysis of EUR/AUD for October 13, 2017

EUR/AUD recently broke above the 1.5050-75 support area which is being retested currently. EUR has been quite strong in light of economic reports that has led to further gains of EUR against AUD. Recently, amid positive results of Australia's economic reports some bearish impulsive pressure can be observed in the pair. Today, German Final CPI report was published unchanged as expected at 0.1% but it could not quite manage to provide any positive effect for the currency against AUD. Yesterday, ECB President Draghi spoke about short-term interest decisions and future monetary policies. His speech expressed the neutral rhetoric and resulted in shifting the market sentiment to further bearish. On the AUD side, today RBA Financial Stability Review was held where the stability of the Australian economy was discussed along with future monetary policies. The hawkish stance provided a push to gain further against EUR today. As for the current scenario, AUD has been quite stronger in comparison to EUR, the overall trend is still bullish and in favor of EUR. In the coming days, if EUR comes up with positive economic reports we might observe a further bullish movement in this pair.

Now let us look at the technical chart. The price is currently residing above the support area of 1.5050-75. The price has recently broken above the level as resistance and currently retesting it before pushing higher towards 1.5250 resistance area in the coming days. As the price remains above the support area of 1.5050-75 and dynamic level of 20 EMA with a daily close, the bullish bias is expected to continue further.

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Breaking forecast 10.13.2017

Breaking forecast 10.13.2017

EURUSD under pressure. Turn on caution.

On Friday morning, it was reported that the ECB decided to reduce the program of liquidity injections into the markets from January next year by two times: from 60 billion euros per month to 30 billion per month. This, on one hand, the tightening the monetary policy of the ECB - and the equivalent of raising the euro rate. But, on the other hand, this is bad news for the euro area economy - and a minus for the euro. In addition, the intrigue around the ECB meeting on October 26 disappeared. The information is unofficial, but there is no doubt that this is the preparation of markets by the ECB - quite consciously.

Anyway, the growth of the euro lasted a week, since October 6 - stopped, and the euro under pressure.

We "include caution" - buy from 1.1790 - put a stop-loss in breakeven.

Buying are now only from 1.1770. It is also possible to buy on the breakthrough maximum of 1.1880.

Selling for a breakthrough down 1.1668.

Today at 12.30 pm London time - important news on inflation in the US will be published. Economists expect a rise in inflation - if so, then a sharp decline in the euro will be seen.

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NZD/USD Intraday technical levels and trading recommendations for October 13, 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 enhanced the bearish side of the market. This brought the NZD/USD pair again towards 0.7230-0.7150 (Key-Zone) which failed to pause the ongoing bearish momentum.

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

Bearish persistence below the neckline 0.7150 confirms the reversal pattern. Next bearish targets are located around 0.7050, 0.6925 and eventually 0.6800.

On the other hand, the price level of 0.7050 should be watched for bullish pullbacks before further bearish decline can occur.

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Intraday technical levels and trading recommendations for EUR/USD for October 13, 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 evidence of bearish rejection was expressed (Note the previous Monthly candlestick of September).

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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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Trading plan 10/13/2017

Trading plan 10/13/2017

The overall picture: The pair EUR/USD is under pressure. We turn on caution.

On Friday morning, it became known that the ECB decided to reduce the program of liquidity injections into the markets from January next year by 2 times, from 60 billion euros per month to 30 billion per month. Thus, on the one hand, tightening the monetary policy of the ECB and the equivalent of raising the euro rate but, on the other hand, this is a bad news for the euro area economy and a minus for the euro. In addition, the intrigue around the ECB meeting on October 26 disappeared. The information is unofficial, but there is no doubt that this is the preparation of markets by the ECB, quite consciously.

Anyway, the growth of the euro lasted a week, since October 6 and stopped, the euro under pressure.

We "include caution", our purchases from 1.1790 put a stop-loss in breakeven.

Purchases are now only from 1.1770. It is also possible to purchase a breakthrough maximum of 1.1880.

Sales for a breakthrough down 1.1668.

Today at 13.30 London time, important news on inflation in the US. Expect a rise in inflation. If so, then a sharp decline in the euro.

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Bitcoin analysis for 13/10/2017

Bitcoin analysis for 13/10/2017:

The small island-state in the Pacific, the Republic of Vanuatu, has announced that applicants for citizenship will be able to pay for the application in Bitcoins. Foreigners can acquire Vanuatu citizenship for 43 Bitcoins, which is about $ 200,000, according to Newsweek magazine. This is the first country in the world to accept Bitcoins as a payment method for government services. Foreigners who apply for the Vanuatu nationality must do so through the Australian stock exchange. The Exchange will check whether the applicants meet the requirements set by the Australian Financial Regulations. In order to process the necessary data, the Vanuatu government has formed a partnership with Selfkey, a technology firm specializing in blockchain technology. The company will provide a platform where you will be able to apply along with the ability to pay a fee. It will also make it possible to verify the identity. Having a passport of this micronation has many advantages. Since the country is a member of the Commonwealth of Nations, its citizens can travel to 113 countries. You can travel without a visa to Russian Federation, the United Kingdom or the European Union.

Let's now take a look at the Bitcoin technical picture. The market rally has been extended above the projected target levels and the recent high was noted at the level of $,5841 before small correction happened. From the Elliott Wave Theory point of view, it might be the time for an internal corrective cycle to occur, possibly in a form of a triangle pattern. This wave will be labeled as the wave (iv) and when completed another higher high is expected for a top of the wave (v). The immediate support is seen at the level of $5,372.

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Trading plan for 13/10/2017

Trading plan for 13/10/2017:

A very quiet night on the financial markets, but like yesterday the US Dollar is losing ground to the other major currencies. The EUR/USD pair is trading around 1.1850. The British Pound is still strong: GBP/USD is close to 1.33. USD/JPY again descended to 112.00. On Wall Street, the sellers were slightly dominant yesterday - the SP500 futures are at the level of 2,500 points in the morning.

On Friday 13th of October, the event calendar is busy in important news releases. During the London session, Switzerland will post Producer and Import Prices data, Italy will post Consumer Price Index data and Germany will present Final Consumer Price Index data. During the US session, the US will present Consumer Price Index, Retail Sales and Preliminary UoM Consumer Sentiment data. Moreover, there are some speeches scheduled for later from FOMC officials Charles Evans, Robert Kaplan, and Jerome Powell.

EUR/USD analysis for 13/10/2017:

The Consumer Price Index data and Retail Sales from the US are scheduled for release at 12:30 pm GMT and market participants expect inflation to increase from 0.4% to 0.6% on the reported month. Retail Sales are expected to increase as well, from -0.2% last month to 1.7% this month. The impact of the recent hurricanes increases the uncertainty whether the expectations will be met. As the recovery continues in the Greater Houston area, we think the increased replacement purchases will boost retail sales in September. On the other hand, Hurricane Irma brought extensive power outages in Florida, which may have resulted in considerable loss of sales. Nevertheless, both natural disaster effects are transitory and they will unlikely to change the overall US economic outlook. The US labor market remains healthy and steady growth in personal income continues. High volatility is expected on the USD main pairs though.

Let's now take a look at the EUR/USD technical picture in the H4 time frame. The 61% Fibo at the level of 1.1876 acted as a proper resistance, so the price reversed and now is trading below the technical support at the level of 1.1829. The market conditions are overbought. So if the data meets the expectations, then a further move down is expected towards the level of 1.1790 and below.

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Market Snapshot: Strong reversal from 50% Fibo

The price of EUR/GBP reversed strongly from 50% Fibo at the level of 0.9034 and now is trading below the technical support at the level of 0.8005. The downward momentum is strong, so there is still a chance the price will keep moving towards the level of 0.8791 before the market conditions become oversold.

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Market Snapshot: GBP/JPY at the key resistance

The price of GBP/JPY is trading at the level of 148.93, just below the key trend line resistnace. The market conditions looks overbought, so the price might reverse here and fall towards the level of 147.66. On the other hand, a breakout higher opens the road towards the technical resistance at the level of 149.63.

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Ichimoku indicator analysis of USDX for October 13, 2017

The Dollar index has broken below 93 and this is a bearish sign. Price is now trading below the Ichimoku cloud. We could see a bounce to back test the lower boundary of the clouds, but I would expect price to get rejected.

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The Dollar index is trading below the 4-hour cloud. Price could bounce towards 93.30-93.40 where the 38% Fibonacci retracement is found. Short-term support is at 92.80. Resistance at 93.35.

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Black lines - bearish channel

The Dollar index remains inside the bearish channel and price has now broken below the tenkan-sen (Red line indicator). Next important support is at 92.60 where the lower cloud boundary is found together with the kijun-sen (yellow line indicator). Breaking below that level will confirm that we have started the next downward move to new lows.

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Ichimoku indicator analysis of gold for October 13, 2017

Gold price made a shallow pull back yesterday towards $1,289 and is now making fresh new highs. Gold price is breaking above the 38% Fibonacci retracement and this is a bullish continuation sign.

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The short-term RSI is overbought and diverging. This is just a small warning that we could see another short-term pull back towards $1,290 before higher, but necessary. Gold is in a bullish short-term trend after breaking above the 4-hour Kumo (cloud). Support is at $1,288 and next at $1,283.

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The weekly reversal off the kijun-sen (yellow line indicator) is progressing as expected and according to bulls plan. Trend remains bullish and with short-term trend changing to bullish again, we expect Gold price to move at least towards $1,320. The big test will come then.The material has been provided by InstaForex Company - www.instaforex.com

BITCOIN Analysis for October 12, 2017

Bitcoin has surged higher today breaking above the $5,000 level and creating record highs. Currently, the price is residing above the $5,300 level and is expected to reach the $5,500 psychological price area and later $6,000. As of the recent predictions by various cryptocurrency trading institutions, the price is expected to hit the $10,000 price level by the end of year 2017. After the setback for the China ICO ban issue, Bitcoin has not been impulsively bullish like this for last few weeks, whereas the break above $5,000 does declare that the Bitcoin is currently looking forward to new highs in the future. As the Bitcoin market has been quite mature with the movement, it is currently expected that the price will fall back towards the $5,000 support area in the coming days before proceeding higher towards $5,500 and later towards the $6,000 resistance area in the coming days. As the price remains above the $5,000 support area, the bullish bias is expected to continue further.

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Fundamental Analysis of AUDUSD for October 12, 2017

AUD/USD recently bounced off the 0.7750 support level and continued higher above 0.7815 with further bullish ambition towards 0.80. This week, AUD has been quite positive with the economic reports, whereas USD has been quite weak due to recent worse economic reports. Today, AUD MI Inflation Expectation showed an increase to 4.3% from the previous value of 3.8% and Home Loans report showed a decrease to 1.0%, up from expectations of 0.5% and below the previous value of 2.8%. The better-than-expected reports and increased inflation are strong indicators of the economic development helping the currency to gain further over USD today. On the USD side, today's PPI report was published with an increase as expected at 0.4% from the previous value of 0.2%. Unemployment Claims showed a positive change with a decrease to 243k from the previous figure of 258k, which was expected to be at 251k. The core PPI report showed an increase to 0.4% from the previous value of 0.1%, which was expected to be at 0.2%. The Crude Oil Inventories data were published -2.7M from the previous figure of -6.0M, which was expected to be at -1.9M. Additionally, FOMC Member Brainard and Powell spoke neutral about key interest rates and future monetary policies helping the currency to gain momentum against AUD today. As of the current scenario, AUD is quite strong with positive economic reports, where USD is still struggling to show any impact in the market as the interest rates decision is expected to hit the market in December and no highly ambitious efforts are being made by the FOMC members to signal any significant improvement in the future. AUD is expected to have an upper hand over USD in the coming days.

Now let us look at the technical view. The price is currently residing above the support area of 0.7750 – 0.7815, but the dynamic level is still above the price and can act as a resistance to push the price lower again. As of the current market scenario, the price is expected to proceed higher towards 0.80 in the coming days if it remains above the support area with a daily close. On the other hand, if the price breaks below the lowest support level of 0.7750 with a daily close, then the bias will change to bearish with a target towards 0.7350. The bullish bias is expected to continue as the price remains above the support area.

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Fundamental Analysis of USDCAD for October 12, 2017

USD/CAD has been quite bearish recently. The pair is currently residing above the dynamic support of 20 EMA and 1.2410 support level. USD has been weaker due to worse economic reports published recently, whereas CAD has been neutral. Recently, the CAD Employment Change report was published showing a decrease to 10.0K from the previous figure of 22.2k which was expected to be at 13.9k and Unemployment Rate was published unchanged at 6.2%, which was expected to increase to 6.3%. Today, the CAD NHPI report was published with a decrease to 0.1% from the previous value of 0.4%, which was expected to be at 0.3%. On the USD side, today's PPI report was published with an increase as expected at 0.4% from the previous value of 0.2%. Unemployment Claims showed a positive change with a decrease to 243k from the previous figure of 258k, which was expected to be at 251k. The Core PPI report showed an increase to 0.4% from the previous value of 0.1%, which was expected to be at 0.2%. The Crude Oil Inventories data were published at -2.7M in comparison with the previous figure of -6.0M, which was expected to be at -1.9M. Along with these economic reports, FOMC Member Brainard and Powell spoke today about the nation's key interest rates and future monetary policies, which had neutral bias. To sum up, USD has been quite positive backed by economic reports today, but still CAD is quite strong to be dominated. This indicates that the market is bearish for this pair and until USD comes with high-impact economic reports in the coming days, CAD is expected to gain further.

Now let us look at the technical view. The price is currently quite indecisive and residing above the dynamic level of 20 EMA and support level of 1.2410. In the coming days, if the price breaks below 1.2410 with a daily close, we will be looking forward to sell with a target towards the next support level at 1.2080. As the price remains below the 1.2640-50 resistance area, the bearish bias is expected to continue further.

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