Bitcoin analysis for October 20, 2017

analytics59e9f8769d135.png

The Bitcoin (BTC) has been trading sideways at the price of $5.635. President Donald Trump's Attorney General, Jeff Sessions, testified before the Senate Committee on the Judiciary. The committee is given rather broad powers concerning federal criminal law and internet privacy. During a quick exchange, hours into the hearing, Mr. Sessions was asked about the "dark web." His answers might foreshadow what's ahead for digital privacy and bitcoin users. The intraday picture looks bullish.

Trading recommendations:

According to the 15M time - frame, I found a fake breakout of the pivot point at the price of $5.630, which is a sign that selling looks risky. There is also a tweezer bottom in the background, which is another sign of strength. My advice is to watch for potential buying opportunities. The upward targets are set at the price of $5.780 (R1) and $5.880 (R2).

Support/Resistance

$5.630 – Pivot level

$5.780 – Pivot resistance 1

$5.880 – Pivot resistance 2

$5.534 – Pivot support 1

With InstaForex, you can earn on cryptocurrency's movements right now. Just open a deal in your MetaTrader4.

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

USD/JPY analysis for October 20, 2017

analytics59e9f33759876.png

Recently, the USD/JPY pair has been trading upwards. As I expected, the price tested the level of 113.46. According to the 15M time – frame, I found a broken pivot resistance 1 at the price of 113.03, which is a sign that buyers are in control. Stochastic is showing oversold condition on latest downward correction, which is sign that that bullish activity may resume. My advice is to watch for potential buying opportunities. The upward targets are set at the price of 113.50 (R2) and extreme target at the price of 113.85 (S3).

Resistance levels:

R1: 113.03

R2: 113.50

R3: 113.85

Support levels:

S1: 112.17

S2: 111.80

S3: 111.32

Trading recommendations for today: watch for potential buying opportunities.

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

GBP/USD analysis for October 20, 2017

analytics59e9f17195229.png

Recently, the GBP/USD has been trading sideways at the price of 1.3180. According to the 15M time - frame, I found that shooting star candle and few doji candles near the pivot level at the price of 1.3170, which is a sign that buying looks risky. The stochastic oscillator is in overbought zone, which is another sign of weakness. My advice is to watch for potential selling opportunities. The downward targets are set at the price of 1.3115 (S1) and 1.3085 (S2).

Resistance levels:

R1: 1.3215

R2: 1.3270

R3: 1.3315

Support levels:

S1: 1.3115

S2: 1.3070

S3: 1.3015

Trading recommendations for today: watch for potential selling opportunities.

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

Global macro overview for 20/10/2017

The headline reading, Retail Sales With Auto Fuel, was released at the level of -0.8% after 0.9% increase a month ago. The market consensus was at the level of -0.1.%. Moreover, the data indicated that the underlying pattern in the retail industry is one of growth; for the three-months on three-months measure, the quantity bought increased by 0.6%. Year-on-year, the quantity bought in the retail sector increased by 1.2% with non-food (household goods, clothing stores) and non-store retailing all providing growth. Store prices continue to rise across all store types and are at their highest year-on-year price growth since March 2012 at 3.3% (non-seasonally adjusted). Online sales values increased year-on-year by 14%, accounting for approximately 17% of all retail spending.

In conclusion, despite the weaker one-month data, there is a continuation of the underlying trend of steady growth in sales volumes following a weak start to the year, and a background of generally rising prices. These increased costs are reflected in the more rapid growth in the amount spent when compared with the quantity bought.

Earlier this week, Silvana Tenreyro, a new member of the BOE, said in her speech in the British Parliament that it is necessary to raise interest rates in the current economic climate. Tenreyro points out that the BOE is quite close to the point at which the scale of monetary stimulation should be reduced. In addition, it stresses the problem of a rather poor trajectory of economic growth, which in her opinion is a problem of temporary rank.

Let's now take a look at the GBP/USD technical picture on the H4 time frame. The market is trading below the dashed black short-term trend line in oversold conditions. A bounce from the level of 1.3087 might indicate a correction towards the level of 1.3155 where the dashed trend line will provide a dynamic resistance. As long as the level of 1.3342 is not clearly violated, the near-term outlook remais bearish.

analytics59e9e5849a8eb.jpg

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

Global macro overview for 20/10/2017

The recent comments from Bank of Japan Governor Kuroda did not cause any substantial reaction on financial markets. During his today's speech, he reiterated that weakness on the price front is going on and prices will rise towards 2%, so this was nothing new for market participants.

In late September, Japanese Prime Minister Shinzo Abe unexpectedly announced a snap parliamentary election slated for October 22. Despite the problems within the ruling party, the opposition is also shattered, as Abe wants to capitalize on the positive economic climate and growing threats from North Korea. The very good result of the 2014 elections is unlikely to be repeated, but Abe and his Liberal Democratic Party (LDP) should keep the majority and are poised to remain the biggest party by far and continue in the government after the general election. The support for the Abe party is understandable. Japan is out of economic stagnation and Prime Minister Abe's goal of increasing Japan's GDP by one fifth from 2012 to 2020 is achievable. Unemployment is the lowest in 30 years and the government has managed to stabilize public finances. In addition, the prime minister is favored by the conflict over North Korea, as it has highlighted Abe's leadership in the face of the threat of war.

The continuation of Abenomania implies the pressure to weaken the Yen in the medium term across the board.

Let's now take a look at EUR/JPY technical picture on the H4 time frame. After testing the support at the level of 131.70 three times, the market reversed and now is close to the recent highs at the level of 134.40 again. The market conditions are overbought, but there is no sign of any bearish divergence just yet. The nearest support is seen at the level of 133.50.

analytics59e9e557cda1e.jpg

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

BITCOIN Analysis for October 20, 2017

Bitcoin has been quite corrective after the recent impulsive bullish bounce off the $5,000 support area. The bullish trend is expected to push the price higher towards $6,000 price level but ahead of the upcoming November Bitcoin Split the price seemed to be correcting itself in the run to the upcoming volatility in the market. Bitcoin has been gaining more demand recently because of the recent positive bias in the market of the Cryptocurrency whereas countries like Russia and Canada are measuring its efficiency and CoinBase to allow people to buy Bitcoin from American banks as well. Every positive review and news about Bitcoin is bullish for the cryptocurrency, increasing the demand for Bitcoin which encouraged further bullish momentum for it.

As for the current situation, the price is still above the Kumo Cloud support area, currently being held as a support by dynamic level of 20 EMA and a recent cross of Tenkan and Kijun. The Chikou Span is now trying to break above the corrective candle structure whereas a break above this area will lead to further impulsive bullish momentum with a target towards $6,000 price level. As the price remains above the $5,500 and $5,000 support area, the bullish bias is expected to continue further.

analytics59e9e2e39bb2b.jpg

With InstaForex you can earn on cryptocurrency's movements right now. Just open a deal in your MetaTrader4.

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

Technical analysis of USD/JPY for October 20, 2017

USDJPYM30.png

USD/JPY is expected to continue the upside movement. The pair is trading above its rising 20-period and 50-period moving averages, which play support roles and maintain the upside bias. The relative strength index is above its neutrality level at 50 and lacks downward momentum.

To conclude, as long as 112.70 is not broken, look for a further upside to 113.80 and even to 114.05 in extension.

Alternatively, if the price moves in the opposite direction, a short position is recommended below 112.70 with a target at 113.80.

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: BUY, Stop Loss: 112.70, Take Profit: 113.80

Resistance levels: 113.80, 114.05 and 114.50 Support Levels: 112.30, 112.10, 111.85

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

Fundamental Analysis of USD/CHF for October 20, 2017

USD/CHF has been quite volatile with bullish gains and is currently trading inside the resistance area range between 0.9770 and 0.9860. USD has been quite positive amid economic reports recently which helped the US currency to gain over CHF and counter well. Recently, Switzerland's Trade Balance report was published with an increased figure of 2.92B from the previous figure of 2.20B which was expected to be at 2.47B, but with a positive trade balance report the currency could not gain over USD. On the USD side, recent economic reports were very positive which helped the US currency to gather a good momentum in the volatile and corrective market. Today, US Existing Home Sales report is going to be published which is expected to have a slight decrease to 5.30M from the previous figure of 5.35M. As for the current scenario, despite positive economic reports CHF is currently struggling to hold the gains that indicates USD is quite strong in sentiment and fundamental basis which is expected to push the price much higher in the coming days. To sum up, USD is expected to have an upper hand over CHF for the coming days until Swirzerland comes up with any impulsive bearish pressure with high impact events and economic reports.

Now let us look at the technical chart. The price is currently residing inside the resistance area between 0.9770 to 0.9860 but with a dynamic level of 20 EMA carrying the price as support which indicates the pre-breakout structure is in progress. In this case, we will consider buy positions with a target towards 1.01 resistance level in the coming days if the price breaks above 0.9860 resistance level with a daily close. As the price remains above 0.0.9770 support level, the bullish bias is expected to continue further.

analytics59e9da2baaf60.jpg

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

Technical analysis of USD/CHF for October 20, 2017

USDCHFM30.png

USD/CHF is expected to continue the upside movement. The pair posted a double bottom pattern and broke above its key resistance at 0.9770, which becomes the key support. The upward momentum is further reinforced by both rising 20-period and 50-period moving averages. The relative strength index lacks downward momentum.

To conclude, above 0.9770, look for a new challenge with targets at 0.9865 and 0.9900 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: BUY, Stop Loss: 0.9770, Take Profit: 0.9865

Resistance levels: 0.9865, 0.9900, and 0.9930

Support levels: 0.9735, 0.9705, and 0.966 0

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

Technical analysis of GBP/JPY for October 20, 2017

GBPJPYM30.png

GBP/JPY is expected to trade with a bullish outlook above 148.20. The pair keeps trading on the upside after locating a key support at 148.20. The ascending 20-period moving average, which stands on the 50-period one, is providing extra support. And the relative strength index stays firm, showing sustained upward momentum for the pair. As intraday bullishness persists, the pair is expected to rise toward the first upside target at 149.40 and in extension, 149.90.

Alternatively, if the price moves in the direction opposite to the forecast, a short position is recommended below 148.20 with the target at 149.40.

Strategy: BUY, Stop Loss: 148.20, Take Profit: 149.40

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: 149.40, 149.90 and 150.35

Support levels: 147.75, 147.25, and 146.80

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

NZD/USD Intraday technical levels and trading recommendations for October 20, 2017

analytics59e9c75344a6d.png

Daily Outlook

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.

This resulted in a quick bullish advance towards next price zones around 0.7150-0.7230 (Key-Zone) and 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.

As expected, the price level of 0.7050 offered temporary bullish support before bearish breakdown could take place. That's why, further bearish decline should be expected towards 0.6925 and eventually 0.6800 (Reversal pattern bearish targets).

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

Intraday technical levels and trading recommendations for EUR/USD for October 20, 2017

analytics59e9c74cd00f2.png

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).

analytics59e9c7595c3fd.png

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 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.

Initial T/P level should be placed at 1.1550. S/L should be placed above 1.1950.

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

Technical analysis of NZD/USD for October 20, 2017

NZDUSDM30.png

Our first target which we predicted in yesterday's analysis has been hit. NZD/USD is still uder pressure. The pair accelerated on the downside and is trading below its descending 50-period moving average. The relative strength index is below its neutrality level at 50.

To conclude, as long as 0.7060 holds on the upside, look for a return to 0.7060. A break below this level would trigger another drop to 0.6900.

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: 0.7115, 0.7150, and 0.7175

Support levels: 0.6930, 0.6900, and 0.6865

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

Technical analysis of USD/CHF for October 20, 2017

USDCHFH4.png

Overview:

  • The USD/CHF pair continues to move upwards from the level of 0.9744. Since the trend is above this level, the market is still in an uptrend. Furthermore, the trend is still strong above the moving average (100). The USD/CHF pair didn't make any significant movements yesterday. Hence, the market is indicating a bullish opportunity above the mentioned support levels. The bullish outlook remains valid as long as the 100 EMA is headed to the upside. Therefore, strong support will be found around the spot of 0.9744-0.9755 providing a clear signal to buy with a target seen at 0.9836. If the trend breaks the first resistance at 0.9836, the pair will move upwards continuing the bullish trend development to the level of 0.9920 in order to test the daily resistance 2. Also, it should be noted that the major resistance is seen at 0.9980 on the H4 chart. On the other hand, if the USD/CHF pair succeeds to break through the support level of 0.9617 today, the market will decline further to 0.9677. It is recommended to set your stop loss at 0.9677.
The material has been provided by InstaForex Company - www.instaforex.com

Technical analysis of NZD/USD for October 20, 2017

NZDUSDH4.png

Overview:

  • The NZD/USD pair has dropped sharply from the level of 0.7067 towards 0.6972. Now, the price is set at 0.6985 to act as a minor suport. It should be noted that volatility is very high for that the NZD/USD pair is still moving between 0.7020 and 0.6900 in coming hours. Furthermore, the price has been set below the strong resistance at the levels of 0.7020 and 0.7067, which coincides with the 23.6% Fibonacci retracement level. Additionally, the price is in a bearish channel now. Amid the previous events, the pair is still in a downtrend. From this point, the NZD/USD pair is continuing in a bearish trend from the new resistance of 0.7067. Thereupon, the price spot of 0.7067 remains a significant resistance zone. Therefore, a possibility that the NZD/USD pair will have downside momentum is rather convincing and the structure of a fall does not look corrective. In order to indicate a bearish opportunity below 0.7067, sell below 0.7067 or 0.7021 with the first targets at 0.6900 and 0.6849. However, the stop loss should be located above the level of 0.7070.
The material has been provided by InstaForex Company - www.instaforex.com

Bitcoin analysis for 20/10/2017

Bitcoin analysis for 20/10/2017:

On October 16, Ilan Goldfajn, president of the Central Bank of Brazil (Banco Central do Brasil), disregarded Bitcoin. He said: "Bitcoin is a financial asset without the ballast people buy because they believe it will grow. This is a typical bubble or pyramid." Many huge jumps in value made Goldfajna's unfavorable statements: "The central bank is not interested in bubbles or illegal payments. This is not something that the Brazilian Central Bank would like to encourage." Nevertheless, Goldfajn pointed out that technological innovation can be separated from unstable virtual currency. You can not blame the central bank for ignorance on this issue. In August 2017, the institution published results of a real-time gross settlement system study that tested blockchain platform prototypes, including BlockApps based on Ethereum and JP Morgan's Quorum.

Will the position of Brazil be unstoppable? Perhaps with time, Brazil will see the potential of cryptocurrency and blockchain technology.

Let's now take a look at the Bitcoin technical picture at the H4 time frame. The market is consolidating the recent gains near to the swing high at the level of $5,700. Any weekly candlestick closes above the weekly pivot point at the level of $5,342 will confirm the bullish scenario for Bitcoin, despite the overbought trading conditions. The key technical support level is still seen at $5,097.

analytics59e9b5f472ce6.jpg

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

Trading plan for 20/10/2017

Trading plan for 20/10/2017:

The US Senate approved the budget for 2018 yesterday. In the first reaction, EUR/USD fell from around 1.1850 to 1.18. USD/JPY shot up to 113.30 and GBP/USD went down at 1.31. US Dollar gains versus other majors without exception and in the Asian session, the weakest are JPY and NZD and CHF.

On Friday 20th of October, the event calendar is quite busy with important economic news releases, but mainly during the US session, when Canada will post Consumer Price Index and Retail Sales data and the US will reveal Existing Home Sales. Moreover, there is a scheduled speech from BOJ Governor Haruhiko Kuroda early in the morning.

EUR/USD analysis for 20/10/2017:

It is clear that in the absence of important macroeconomic publications and central bank meetings, politics has dominated the markets. The tensions over Catalonia and tough government positions in Madrid have not been able to weaken the euro (although on the black Monday the European stock markets were affected). At night, the US Dollar jumped after the Senate approved the 2018 budget. This is a big step towards a smooth implementation of the reform of the tax system. In this context, it is important to remember the collapse of the NZD after the formation of the government without the Conservative Party and the weekend elections in Japan. In this environment and ahead of the ECB meeting, expectations should narrow the range of fluctuations with a tendency to moderate appreciation of the US Dollar.

Let's now take a look at the EUR/USD technical picture on the H4 time frame. The market tried to rally to 61% Fibo at the level of 1.1876, but was again rejected even lower, at the level of 1.1860. Currently, the price is back under 1.1800 and the overbought market conditions indicate a possible slide further towards the next technical support at the level of 1.1766.

analytics59e9b3024c48f.jpg

Market Snapshot: USD/JPY at the key technical resistance

The price of USD/JPY is trading at the level of 113.43, which is the previous swing high and the key technical resistance. The market conditions are overbought, but in case of a sudden spike, the next technical resistance is seen at the level of 114.37.

analytics59e9b30d8ee7e.jpg

Market Snapshot: Gold get rejected at resistance

The price of Gold got rejected at the technical resistance at the level of $1,289 and currently is dropping towards the key technical support at the level of $1,276. The market conditions are still oversold, so the price might bounce form the support and keep trading sideways before any major breakout.

analytics59e9b315e7d8f.jpg

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

Burning forecast 10/20/2017

Burning forecast 10/20/2017

The crisis of Catalonia played against the pound - but the trend has not been reversed.

We continue to buy the GBPUSD pair.

On Thursday, the rate of the pound along with the euro came under selling pressure.

I believe that this is due not only because of the U.K.'s difficult negotiations with the EU regarding Brexit, but also to the crisis of Catalonia-Spain.

How can the crisis in Spain prevent the pound's growth, provided that Britain withdraws from the EU and particularly does not enter the euro area?

I think this is the case when it comes to banks of Britain - and in Spanish government bonds. In the event of a worst development of the crisis - the release of Catalonia from Spain without an agreement - a collapse is inevitable in the government bonds market of Spain - and the crisis of the world's largest banks. This weakened the euro and pound.

Nevertheless, we are buying the pound at a decline down to 1.3050.

Cancellation of purchases - a consolidation of the GBPUSD pair below 1.2980.

analytics59e99fc6e0b92.jpg

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

Trading plan 10/20/2017

Trading plan 10/20/2017

Euro cannot determine the direction, but the traffic is close.

The pair EUR/USD attempted to organize growth rate on Thursday, but for the third time in a week, it could not overcome the downward resistance line of the day order (the TD-line, or Tom DeMarck's line, is marked by a thick line in the chart below).

On Friday morning, the rate went again below the resistance.

We keep purchases from 1.1780 but the stop is moved to breakeven.

There are promising levels to break down and up the scale of H4 and daylight:

Sell for a breakout down from 1.1728 and from 1.1668.

We buy for a breakthrough upward from 1.1860 and from 1.1880.

The market expects a new round of the Catalonia-Madrid crisis: On Saturday, a decision is made to abolish the autonomy of Catalonia. In return, Catalonia's independence from Spain can be proclaimed. This could drastically reduce the euro at the opening on Monday.

analytics59e9a2397ef1a.jpg

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

Fundamental Analysis of EUR/CAD for October 20, 2017

EUR/CAD has been impulsively bullish recently, heading upwards. CAD has weakened amid recent economic reports that helped EUR to gain momentum against. Today, German PPI report was published with a positive figure, showing an increase to 0.3% from the previous value of 0.2% which was expected to decrease to 0.1%. Besides, Current Account report is yet to be published which is expected to show an increase to 26.2B from the previous figure of 25.1B. On the CAD side, today is a very important day for the currency as CPI report is going to be published today which is expected to increase to 0.3% from the previous value of 0.1%, Core Retail Sales are expected to increase to 0.3% from the previous value of 0.2%, Common CPI is expected to be strong from 1.5% previously, Median CPI is also expected to be upbeat as well which previously was at 1.7%, Retail Sales are expected to increase to 0.5% from the previous value of 0.4%, Trimmed CPI is expected to show an increase from the previous value of 1.4%, and Core CPI is also expected to show an increase from the previous value of 0.0%. There is a series of economic reports to be published on the CAD side that is expected to inject good amount of volatility in the pair. Most of forecasts for Canada's economic reports are quite strong, but any negative economic report will lead to further bullish pressure in the pair. To sum up, EUR is expected to gain momentum against CAD in the coming days.

Now let us look at the technical chart. The price is currently residing above the support area of 1.4685-1.4700. Amid the recent Bullish Engulfing candle taking over the last few days, the pair is currently expected to head up towards 1.5050 resistance area in the nearest days. The bullish trend is quite corrective and volatile and it might take several days to reach the target area. As the price remains above the 1.4685-1.4700 area, the bullish bias is expected to continue further.

analytics59e9a16371fd6.jpg

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

Ichimoku indicator analysis of USDX for October 20, 2017

The Dollar index reached the short-term 93 support level and bounces higher now. Price is in a short-term neutral trend as the index is mainly moving sideways between 94-93 levels.

analytics59e99f7a3dd70.png

Blue line - resistance trend line

Rectangle - support

The Dollar index has reached the upper boundary of the 4-hour Kumo (cloud). 93.50 is the boundary resistance and the rise has stopped right there. Support is at the black rectangle. Breaking below it will open the way for a move towards 90 as price will be making lower lows and lower highs.

analytics59e99fe7687e3.png

Black lines - bearish channel

Blue lines - bullish channel

Yesterday, the Dollar index tested the lower channel boundary of the bullish channel. Support held and price bounced but it remains inside the cloud and below the upper boundary of the long-term bearish channel. Important resistance is at 93.90 and important support at 93.10. Whichever level breaks first, a strong move is expected to follow.

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

Ichimoku indicator analysis of gold for October 20, 2017

Gold price stopped its recent rise from $1,277 support at the short-term resistance at $1,290. Price pulled back overnight towards $1,282 where the 61.8% Fibonacci retracement of the latest rise is found.

analytics59e99e2aae780.png

As can be seen in the 30min chart above, price has stopped the decline at the 61.8% Fibonacci retracement. Short-term support is at $1,282 and next at the recent lows of $1,277. Resistance is at yesterday's highs of $1,291. Gold bulls need to break above $1,291 in order for the up trend to resume.

analytics59e99e8e3f4dc.png

Blue line - resistance trend line

In the 4 hour chart price is trapped inside the Kumo (cloud). Trend is neutral in the short-term. For trend to change to bullish price must break above the $1,291 level. A 4 hour candle close below $1,282 will open the way for a move towards $1,270 at least.

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