The euro collapsed

The risks of the EUR / USD pair correction continues to increase. The EUR / USD pair fell to the lowest level for the last three months after the announcement of the results of the ECB meeting.

The EUR / USD pair fell to the lowest level in the last 3 months after the announcement of the results of the ECB meeting. A press conference by Mario Draghi and reports that the US House of Representatives, following the Senate, approved the draft law on the budget for the next financial year, which opens the way for implementation tax reform. The European Central Bank has decided to reduce the volume of purchases of assets under the quantitative easing program from 60 billion to 30 billion euros per month. The QE program will last at least until the end of September 2018 and it can be expanded if necessary. The Governing Council will decide with regarding inflation to prolong the program or not, which will slow from 1.5% to 1.4% next year according to his forecasts.

Mario Draghi managed to convince the markets that the verdict of the ECB for the month of October should be regarded as an act of monetary expansion. The Quantitative easing that started in early 2015 should end in December 2017. Its extension is an additional incentive rather than a withdrawal of the stimulus. Although the market expected that the scale of the asset purchase program would be reduced by 30 billion euros. Nevertheless, it was a question of starting the normalization. This process assumes the end of QE with a gradual transition to an increase in the refinancing rate and the deposit rate. Alas, but after the performance of Super Mario, we are not able to talk about the finiteness. This is why the futures market reduced the chances of the ECB monetary policy tightening in 2019.

Forecasts for ECB rates

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Source: Nordea Markets.

Despite the fact that Draghi was confident during the press conference, there was an actual lively discussion inside the Governing Council. Bloomberg and the Wall Street Journal referring to competent sources at the ECB have expressed their disagreement with the desire of the others to obscure the timing of the completion of QE. A little later, their names were leaked to the press. We are talking about the head of the Bundesbank Jens Weidmann, as well as Sabina Lautenschlager, Klaas Knot, and even Benoit Coeure.

Regardless of the discussion, decisions are made by a majority vote. The European Central Bank is dubious on the ability of inflation to reach a target of 2% before 2020. Hence, Draghi preferred to be reinsured and put the cap over the EUR / USD rally near 1.2. Certainly, political risks were taken into account to be connected, primarily with the events in Catalonia and with the upcoming spring 2018 Italian elections. Low-interest rates on debt obligations, weak euro and the growth of stock indices of the Old World to 5-month highs have improved financial conditions, which is a favorable factor for further economic growth. No wonder that the ECB raised its forecasts for the eurozone's GDP by 2017 from 1.9% to 2.2% and by 2018 from 1.8% to 1.9%.

Technically, the correction in the main currency pair risks continues in the direction of the target by 161.8% on the AB = CD pattern. It corresponds to 1.152. The nearest resistance levels should be found near 1.167 and 1.1695.

EUR / USD, daily chart

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Bitcoin analysis for October 27, 2017

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The Bitcoin (BTC) has been trading sideways at the price of $5.766. The central bank of Kazakhstan has submitted proposals to its government to restrict some cryptocurrency-related activities. However, the bank's chairman admitted that he does not fully understand what cryptocurrency is. Experts also weighed in on the feasibility of banning crypto mining in the country. Technical picture looks bearish today.

Trading recommendations:

According to the 30M time frame, I found that price broke pivot level ($5.812), which is a sign that sellers are in control today. I also found a hidden bearish divergence on the MACD oscillator, which is another sign of weakness. My advice is to watch for potential selling opportunities. The downward targets are set at the price of $5.645 (S1) and $5.465 (S2).

Support/Resistance

$5.812 – Pivot level

$5.645 – Pivot support 1

$5.464 – Pivot support 2

$5.994 – Pivot resistance 1

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Daily analysis of GBP/JPY for October 27, 2017

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Overview

Stochastic crawling below 80 level contradicted the GBPJPY pair's bullish attempts, to retest the initial support around 149.10, while the consolidation of this support around 50% Fibonacci correction level assists to reinforce the bullish bias domination and expect the attempt to gather new positive momentum to rally towards 151.60 level, while breaching this barrier will allow the price to record more targets that start at 152.80 followed by reaching 155.20. Note that breaking the current support will postpone the bullish rally on the intraday basis until testing the next support at 147.30, to keep its stability within the main bullish channel that appears on the chart. The expected trading range for today is between 149.10 and 152.85.

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Daily analysis of Gold for October 27, 2017

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Overview

The Gold price settled near our waited target at 1263.15, reminding you that this level represents 61.8% Fibonacci correction for the rise measured from 1204.81 to 1357.53, which means that breaking it will extend Gold price losses to reach 1240.85 direct, especially that the price moves within bearish channel supported by the EMA50. In general, we will continue to suggest the bearish trend in the upcoming sessions unless the price managed to breach 1281.20 level and hold above it, as this breach will push the price to start recovery attempts and regain the main bullish trend again, to start the positive targets at 1299.20 and extend to 1321.50. The expected trading range for today is between 1255.00 support and 1275.00 resistance.

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Daily analysis of Silver for October 27, 2017

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Overview

Silver price returns to decline calmly and approach from the key support 16.56, and as we mentioned in our recent reports, holding above this level is important to continue the overall positive scenario, as breaking it will push the price to visit 15.49 areas before any new attempt to rise. Stochastic shows clear oversold signals to support the rise expectations, which target 17.43 followed by 18.30 after breaching the previous level. The expected trading range for today is between 16.56 support and 17.00 resistance.

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Global macro overview for 27/10/2017

Stefan Ingves, CEO of Riksbank, expressed satisfaction with the condition of the Swedish economy. CPI inflation in the projection period should stabilize around the inflation target, he said, allowing a debate on the future of QE in the coming months. The forecasts made by Riksbank assume a rate hike in mid-next-year. The strength of the Swedish Krona, which weighs on the dynamics of the observed price pressure, remains a factor weighing on the decisions of the Swedish decision makers. Ingves' second term as governor expires at the end of the year. The appointment of a new governor has been seen by many as an opportunity for rate-setters to reassess a policy that is closely associated with him.

It is worth to remember, that Swedish Central Bank (Riksbank) has come in for widespread criticism in recent years, first for raising interest rates too fast after the financial crisis and more recently for keeping negative rates and an ultra-expansionary policy despite a surging economy and the threat of a housing bubble.

Let's now take a look at the EUR/SEK technical picture at the H4 time frame. Since Monday, EUR / SEK did not record one down session, which at the current trajectory of oscillators suggests the end of Friday quotations just below 161% of the external Fibonacci retracement at 9.7600. In the event of a break out above this level, the market should try to test the recent technical resistance from May and June in the range of 9.8043-9.8453. The closest support remains today's lows at 9,7036. If this level is violated, then the possibility of the golden trend line test from the upside will be very high.

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Global macro overview for 27/10/2017

The QE program has been changed as it was generally expected: the ECB will buy assets for EUR 30 billion a month until September 2018. The program was left without an end date, and at the conference, President Draghi stressed that no one is keen on sudden QE termination. In the coming months, the ECB may withdraw from this declaration or reduce the rate by 10 billion per month and end the QE in December 2018. The dovishness was clear in a matter of reinvestment of funds from maturing bonds, which is expected to last long after the end of the program. The ECB has also relinquished an open door to re-launching the program if problems arise for the economy. In general, Draghi and the company diverted all the points of the plan, which was to ensure that the market would not build expectations for an earlier rate hike. Yesterday before the decision, the market assumed the first rally on March 2019. Now he has to push back these expectations at least for June 2019. For many holiday weeks, the market has been building positions on the Euro, and now the strategy has come under strong question. However, in the long term, the fundamental base of the Euro's defense seems solid and will provide grounds for strengthening, so that by the end of the year the Euro will remain under pressure across the board.

Let's now take a look at the EUR/JPY technical picture at the H4 time frame. The bulls did not manage to break out above the 78% Fibo at the level of 134.31 and technical resistance at the level of 134.40, so the price reversed towards the next technical support at the level of 132.01.

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Analysis of Gold for October 27, 2017

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Recently, the Gold has been trading downwards. The price tested the level of $1,264.00. According to the 15M time – frame, I found that price is trading below the pivot level $1,271.00, which is a sign that sellers are in control today. There is also a hidden bearish divergence on the stochastic oscillator, which is another sign of weakness. My advice is to watch for potential selling opportunities. The downward targets are set at the price of $1,261.00 (S1) and $1,255.00 (S2).

Resistance levels:

R1: $1,277.83

R2: $1,288.60

R3: $1,294.65

Support levels:

S1: $1,261.00

S2: $1,255.00

S3: $1,244.00

Trading recommendations for today: watch for potential selling opportunities.

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USD/JPY analysis for October 27, 2017

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Recently, the USD/JPY has been trading upwards. The price tested the level of 114.31. According to the 15M time – frame, I found few doji candles and bullish breakout, which is a sign that buyers are in control. The price is trading above the pivot level (113.80), which is another sign of strength. My advice is to watch for potential buying opportunities. The upward targets are set at the price of 114.27 (R1), 114.50 (R2) and 115.00 (R3, extreme intraday target).

Resistance levels:

R1: 114.27

R2: 114.50

R3: 115.00

Support levels:

S1: 113.52

S2: 113.06

S3: 112.80

Trading recommendations for today: watch for potential buying opportunities.

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Trading plan 10/27/2017

Trading plan 10/27/2017

The overall picture: The EUR/USD rate flew down swiftly after the ECB.

Yes, it was. At the ECB's decision, the euro sharply turned down and broke through the important levels of 1.1720 and 1.1670 and fell to 1.1620 by Friday morning.

What was it? The ECB decided to cut the QE program twice from January, from 60 billion euros a month to 30 billion.

This was expected that the ECB allowed (intentionally, I believe) the merging of information in the media about this earlier.

Rates are saved (0% base and minus 0.4% deposits for banks). Also expected.

The ECB plans to keep the infusions until September 2018 and there "will see".

This does not explain the fall of the euro.

The crisis of Catalonia - Spain on Thursday reduced the tension. The authorities of Catalonia did not start to proclaim independence at the session of the parliament. It would seem that this is in favor of the euro.

I have two hypotheses. First, the strong data on the US economy, coming out recently, affected. Second, the major players decided that the euro has no potential above 1.2000.

Anyway, the euro went down and pulled the pound.

GBP/USD: The asset moved from growth to consolidation.

We play a way out of the range:

Purchases for a breakthrough 1.3280.

Sales for the breakthrough 1.3020.

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NZD/USD Intraday technical levels and trading recommendations for October 27, 2017

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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.

The 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 a 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 the further bearish decline should be expected towards 0.6925 and eventually 0.6800 (Reversal pattern bearish targets).

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Intraday technical levels and trading recommendations for EUR/USD for October 27, 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, an evident bullish breakout is being witnessed on the chart. The next Supply level to be watched is located around 1.2100 (Level of previous multiple bottoms) where bearish rejection and a Head and Shoulders reversal pattern was recently expressed.

On the other hand, If the recent bearish breakout persists below 1.1800 and 1.1700 (Neckline of the reversal pattern), a quick bearish decline should be expected towards the price zone of 1.1415-1.1520 (bearish targets of the depicted H&S pattern).

Price action should be watched around the price zone of 1.1415-1.1520 to determine the next destination of the EUR/USD pair.

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Bitcoin analysis for 27/10/2017

Bitcoin analysis for 27/10/2017:

More and more stock exchanges are being withdrawn from support for SegWit2x, but in the distance, there are already signs of the next fork. This time cryptocurrency market participants will be preparing for Bitcoin Silver. Bitcoin Silver developers have told Bitcointalk forum, that their plan is to make Bitcoin decentralized again. The purpose of Bitcoin Silver is to refer to the idealistic vision of Satoshi Nakamoto: "one unit, one voice", which has now been distorted. A small number of strong, institutional miners are able to exert pressure on the minorities or discriminate against them in different fields (eg: with access to technology). In order to return to full decentralization, developers plan to change the proof-of-work algorithm from SHA256 to Equihash. Due to this change, the SHA256 miners will be outdated.

BTSI will provide new opportunities for new users around the world to participate in the crypto-mining process, through the globally available hardware produced by mainstream corporations. The more decentralized, democratic mining infrastructure will be more coherent with the vision of Satoshi Nakamoto.

This will be implemented in December. Since mining the previously announced block, miners will start building blocks based on the new algorithm. This will lead to another Bitcoin fork. BTSI will share the transaction history with BTC until the division. Later he will separate himself from bitcoin and create a new cryptocurrency.

Let's now take a look at the Bitcoin technical picture at the H4 time frame. The top for the wave (b) might be in place at the level of $5,985, so there is only one more down the wave to be made to complete the wave 4 simple corrective cycle. The target is still projected at the level of $5,092, but the correction might terminate sooner than expected.

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Technical analysis of USD/CHF for October 27, 2017

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Overview:

  • The USD/CHF pair has broken resistance at the level of 0.9942, which acts as support now. So, the pair has already formed minor support at 0.9942. The strong support is seen at the level of 0.9898 because it represents the weekly pivot. In the H1 time frame, the RSI and the moving average (100) are still pointing to the upside. Therefore, the market indicates a bullish opportunity at the level of 0.9942. Buy above the minor support of 0.9942 with targets at the levels of 1.0050 and 1.0100. Also, it should be noted that if the trend is buoyant, then the currency pair strength will be defined as follows: USD is in an uptrend and CHF is in a downtrend. On the other hand, if the pair closes below the minor support (0.9942), the price will fall into the bearish market in order to go further towards the strong support at 0.9898.

Daily key levels:

  • Major resistance: 1.0100
  • Minor resistance: 1.0050
  • Intraday pivot point: 0.9942
  • Minor support: 0.9898
  • Major support: 0.9867
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Fundamental Analysis of EUR/CAD for October 27, 2017

EUR/CAD has been impulsively bullish recently resulting to surging up higher towards 1.5050-75 resistance area but yesterday due to dovish statements at ECB Press Conference and unchanged Minimum Bid Rate report EUR lost significant grounds against CAD. Recently CAD Overnight Rate report was published unchanged as expected at 1.00% which affected the growth of CAD against EUR and helped EUR to gain momentum. Today EUR German Import Prices report was published with an increase to 0.9% from the previous value of 0.0% which was expected to be at 0.5%. The positive economic report did not quite help the EUR to gain against CAD today which does signal that the market sentiment is currently against the EUR and CAD is expected to gain further momentum in the coming days. To sum up, EUR has lost significant ground against CAD recently which is expected to inject further bearish pressure in the pair before showing any bullish intervention in the coming days with some high impact economic reports.

Now let us look at the technical view, the price is currently residing below the resistance area of 1.5050-75 with a daily false break candle formation. The overall structure is still quite corrective and as the price remains inside the corrective range and below the resistance of 1.5050-75 area further bearish pressure is expected in this pair with the target towards 1.4700 support area.

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Trading plan for 27/10/2017

Yesterday's ECB decision to keep interest rates unchanged and extend the QE program for another nine months was a predictable choice, so EUR/USD dipped towards the 1.1662 and GBP/USD towards 1.3082. USD/JPY went as high as 114.37. On commodity market Gold made a new local low at $1,267. The German DAX made a new high at 13,244.

On Friday 27th of October, the event calendar is light in important data releases. During the US session, Preliminary GDP and Revised University of Michigan Consumer Sentiment data will be released. No speeches are planned either.

EUR/USD analysis for 27/10/2017:

Predictable choice and exceptionally boring conference - it can be described as the envelope around yesterday's ECB decision to keep interest rates unchanged at the level of 0.0% and extend the QE program for another nine months. As expected by the market participants, the purchase of assets will slow down to EUR 30 billion per month, starting from January 2018 at half the current rate of release. Traditionally, the ECB has left its door open not only to increase monetary stimulus but also to extend it.

The ECB's decision was euphorically accepted by stock market participants. Madrid's IBEX 35 (1.9%), which covered the rise of the Milan FTSE MIB (1.6%) and the Parisian CAC 40 (1.5%), topped the major indexes in Western Europe. German DAX made an advance higher as well (1.4%) and currently is at the new all-time highs at 13, 244.

Let's now take a look at the EUR/USD technical picture at the H4 time frame. The Head and Shoulder technical pattern seems to be working as the neckline around the level of 1.1662 was violated and the market is currently trading at the level of 1.1610. The trading conditions are starting to look oversold, but the downward momentum is still strong. The nearest technical resistance is seen at the level of 1.1662 and 1.1715.

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Market Snapshot: DAX at the new all-time highs

The price of German DAX index has broken up to the level of 13, 244 which is the new all-time high for this market. Nevertheless, the momentum is very weak on this up move and there is a clear, visible bearish multi-divergence between the price and the momentum oscillator, so a test to at least 13,143 points is possible.

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Market Snapshot: Gold dips to $1,267

The price of Gold has made another local low at the level of $1,267 and now trades very close to the technical support at the level of $1,260 Any attempt to rally is being sold and the RSI indicator cannot break out above its fifty level. The nearest resistance is seen at the level of $1,269.

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Technical analysis of NZD/USD for October 27, 2017

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Overview:

  • Pivot: 0.6860.
  • The NZD/USD pair didn't make any significant moves yesterday. There are no changes in my technical outlook. The bias remains bearish in nearest term testing 0.6760 or lower. The NZD/USD pair continues to move downwards from the zone of 0.6942 and 0.7880. Yesterday, the pair dropped from the level of 0.6942 to 0.6942 which coincides with a ratio of 23.6% Fibonacci on the H4 chart. Today, the resistance is seen at the levels of 0.6945 and 0.7033. So, we expect the price to set below the strong resistance at the levels of 0.6945 and 0.7033 because the price is in a bearish channel now. The RSI starts signaling a downward trend. Consequently, the market is likely to show signs of a bearish trend. So, it will be good to sell below the level of 0.6942/0.6900 with the first target at 0.6800. If the NZD/USD pair is able to break out the daily support at 0.6800, the market will decline further to 0.6760 in order to test the daily support two. However, the price spot of 0.6942 remains a significant resistance zone. Thus, the trend is still bearish as long as the level of 0.6940 is not breached.
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Analysis of Bitcoin for October 27, 2017

Bitcoin is currently struggling to break above $6,000 price resistance level which is expected to be broken above in the coming days. The price has created higher lows which indicates pre-breakout structure with a Triangle pattern in the chart which is more likely to break upwards. After appearance of Bitcoin Gold, Bitcoin has been quite impulsive with the bullish price action which indicates the positive impact of it on the Cryptocurrency. Bitcoin is currently expected to create record highs in the coming days by moving up higher above $6,000 price level with target towards $7,000 level. Currently the price is expected to retrace towards the trendline support level which is also the dynamic level of 20 EMA support as well and then push back higher with an objective to break above $6,000 price level. As the price remains above $5,000, the bullish bias is expected to continue further.

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Fundamental Analysis of USD/CHF for October 27, 2017

USD/CHF has been quite impulsive recently after breaking above the 0.9860 resistance area. USD has been quite positive with the economic reports recently which resulted to further bullish pressure against CHF. Recently CHF UBS Consumption Indicator report was published with an increased figure of 1.56 from the previous figure of 1.50 and Credit Suisse Economic expectations also showed an increase to 32.0 from the previous figure 28.0. The positive economic reports of CHF could not quite hold the price lower whereas USD was quite impulsive with the gains. On the USD side, recently the economic reports were quite favorable for the gains and today USD Advance GDP report is expected to decrease to 2.6% from the previous value of 3.1%, Advance GDP Price Index report is expected to increase to 1.7% from the previous value of 1.0%, Revised UoM Consumer Sentiment report is expected to decrease to 100.8 from the previous figure of 101.1 and Revised UoM Inflation Expectations is expected to be hawkish as well from the previous value of 2.3%. As of the current scenario, USD is expected to gain against CHF in the long term whereas currently it is expected to correct itself in the coming days before launching up higher.

Now let us look at the technical view, the price is currently residing above the dynamic level of 20 EMA and 0.9860 support level which is expected to be retested soon in the coming days before it launches up higher. As the price remains above the 0.9760 to 0.9860 support area the bullish bias is expected to continue further.

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Ichimoku indicator analysis of USDX for October 27, 2017

The Dollar index is breaking to new higher highs as it remains in a bullish short-term trend. We might see a pullback but I give little chances that the upward move from 93.50 will end soon.

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Red line - resistance

As we said yesterday, a break above recent double top at 94, would be a bullish sign and the index would first move towards 94.50 and next towards 95. The first target has been achieved. We also said yesterday that as long as the price is above 93.50 trend remains bullish in the short-term. Short-term support can also be found now at 94.10-94 area where the previously had our important resistance level.

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On a weekly basis, the Dollar index is now testing the important kijun-sen (yellow line indicator) resistance which coincides with the 38% Fibonacci retracement of the last leg down since 102.25. I believe the Dollar index remains in a longer-term bearish trend but has more room to the upside in the short-term.The material has been provided by InstaForex Company - www.instaforex.com

Ichimoku indicator analysis of gold for October 27, 2017

Gold price has broken to new lows. In our last analysis we said that a new rejection at $1,282-83 would be a bearish signal and that a new low would not be avoided. Trend remains bearish. Although the Wedge pattern was broken upwards, price was not strong enough to break above the short-term resistance.

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Blue line - resistance

Red line - support

Gold price is making lower lows and lower highs. Price got rejected at the kijun-sen (yellow line indicator). The trend remains bearish as long as the price is below $1,283. The new low has increased the importance of the $1,283 resistance.

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Blue line - long-term support

Magenta line - long-term resistance

Gold price remains below the weekly kijun-sen (yellow line indicator). Trend remains bullish and we still consider this as a pullback in a larger up trend. Price is heading towards the blue trend line and the weekly Kumo (cloud) support. This is the last line of defense for bulls.

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Breaking forecast 10/27/2017

Breaking forecast 10/27/2017

EURUSD: Strong signal downward. Trade selling.

On Thursday, on important news of the decision of the ECB, the EURUSD rate has made a strong turn down.

The news was positive for the euro - however, large investors chose the dollar side, as the data on the US economy is very strong.

The significant lows of 1.1723 and 1.1670 have been broken and the euro declined in the morning to 1.1625.

It is very likely the continuation of the downward movement is the first target of 1.1500.

Sell to upward rebound - sell at 1.1680.

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Fundamental Analysis of AUD/JPY for October 27, 2017

AUD/JPY has been quite bearish recently after bouncing off the 89.00 resistance area. AUD has been quite negative with the economic reports recently which helped JPY to gain momentum and push the price lower below 88.00. Recently published AUD CPI and Trimmed CPI was published with worse than expected result which directly affected the growth of AUD. Today AUD PPI report was published with decreased value to 0.2% from the previous value of 0.5% which was expected to be at 0.4%. On the other hand, today JPY National Core CPI report was published unchanged as expected at 0.7% and Tokyo Core CPI report was published with an increase to 0.6% which was expected to be unchanged at 0.5%. As of the current scenario, JPY was quite stable with the economic reports whereas AUD worse economic reports are making the currency lose more grounds in the pair. To sum up, JPY is expected to have an upper hand over AUD until AUD comes up with positive economic reports to push higher against JPY in the future.

Now let us look at the technical view, the price is currently residing below the 88.00 resistance area whereas dynamic level is also expected to attract the price towards the level before pushing down lower towards 85.50-70 support area in the coming days. As the price remains below 89.00 resistance area the bearish bias is expected to continue further.

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Daily analysis of major pairs for October 27, 2017

EUR/USD: Following the initial bullish effort that was seen earlier this week, the market plummeted on Thursday, losing 170 pips. Price remains under the resistance line at 1.1650, and it may go towards the support line at 1.1600. Any rallies here would be temporary as price journey further southwards. The bias on the market is now bearish.

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USD/CHF: The USD/CHF has gone upwards this week, gaining 130 pips. Price is now above the support level at 0.9950, aiming the resistance level at 1.0000. It is possible that USD would reach parity with CHF, for this ongoing bullish momentum could propel price towards another resistance level at 1.0050. But it should be noted that the resistance level at 1.0000 is a psychological area and it would not be easily breached to the upside.

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GBP/USD: In fact, the movement of the Cable has been erratic, with no directional movement. There have been short-term bearish and bullish swings in the market, which would continue until price crosses the distribution territory at 1.3300 to the upside, or until price crosses the accumulation territory at 1.3050 to the downside.

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USD/JPY: In spite of bears' machinations, the USD/JPY has continued making a relentless bullish effort (which has paid off). Price has successfully gone above the demand level at 114.00, creating a Bullish Confirmation Pattern in the market. Since USD is currently stronger than JPY, it may be possible for the supply level at 114.50 to be reached easily.

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EUR/JPY: In the first few days of this week, this currency trading instrument made attempt to rally, but the attempt was foiled as price tested the supply zone at 134.50. From there, the price plummeted by 180 pips, thus threatening the recent bullish bias. The demand zones at 132.50 and 132.00 could be tested, and by then, the EMA 11 would have crossed the EMA 56 to the downside.

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Elliott wave analysis of EUR/NZD for October 27, 2017

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Wave summary:

As long as minor support at 1.6958 is able to protect the downside, we will be looking for more upside towards 1.7454 and 1.7777 as the next upside targets. If, however, minor support at 1.6958 gives away, that shifts the preferred if favor of wave i completing the test of 1.7216 and a corrective decline in wave ii developing towards the 1.6165 - 1.6216 area before moving higher again in wave iii.

R3: 1.7273

R2: 1.7216

R1: 1.7073

Pivot: 1.6958

S1: 1.6877

S2: 1.6784

S3: 1.6710

Trading recommendation:

We are long EUR from 1.6840 with stop placed at 1.6950.

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Elliott wave analysis of EUR/JPY for October 27, 2017

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Wave summary:

As long as minor short-term important support at 131.64 is able to protect the downside, we will be looking for more upside towards 137.37 to complete wave (D) and set the stage for a final decline in wave (E) towards 123.43. If, however, a direct break below 131.64 is seen that will indicate that wave (D) already completed the test of 134.49 and wave (E) is developing.

R3: 134.49

R2: 133.65

R1: 133.22

Pivot: 132.45

S1: 132.00

S2: 131.64

S3: 131.05

Trading recommendation:

Our stop at 133.65 was hit for a small profit. We will buy EUR again at 132.30 with stop+reverse at 131.60

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AUD/JPY right on major support, remain bullish

The price is now testing our major support at 87.28 (Fibonacci extension, Elliott wave structure, swing low support, bullish divergence) and we expect to see a strong bounce above this level to push the price up to at least 87.75 resistance (Fibonacci retracement, breakout pullback resistance).

Stochastic (34,3,1) is seeing strong support above 2.2% and we expect to see a corresponding bounce above this level. We can also see bullish divergence vs price signaling that a bounce is impending.

Buy above 87.28. Stop loss is at 87.03. Take profit is at 87.75.

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GBP/USD profit target reached perfectly, prepare for another bounce

The price has dropped perfectly from our selling area and has reached our profit target. We are now seeing it at major support so the plan is to buy above 1.3112 (Fibonacci extension, horizontal swing low support) for a push up to at least 1.3229 resistance (Fibonacci retracement, horizontal overlap resistance).

Stochastic (21,3,1) is seeing major support above 4.4% where we expect a bounce from.

Buy above 1.3112. Stop loss is at 1.3017. Take profit is at 1.3229.

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Technical analysis of EUR/USD for Oct 27, 2017

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When the European market opens, some Economic Data will be released, such as German Import Prices m/m. The US will release the Economic Data, too, such as Revised UoM Inflation Expectations, Revised UoM Consumer Sentiment, Advance GDP Price Index q/q, and Advance GDP q/q, so, amid the reports, EUR/USD will move in a low to medium volatility during this day.

TODAY'S TECHNICAL LEVEL:

Breakout BUY Level: 1.1693.

Strong Resistance:1.1686.

Original Resistance: 1.1675.

Inner Sell Area: 1.1664.

Target Inner Area: 1.1636.

Inner Buy Area: 1.1608.

Original Support: 1.1597.

Strong Support: 1.1586.

Breakout SELL Level: 1.1579.

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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Technical analysis of USD/JPY for Oct 27, 2017

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In Asia, Japan will release the Tokyo Core CPI y/y and National Core CPI y/y data, and the US will release some Economic Data, such as Revised UoM Inflation Expectations, Revised UoM Consumer Sentiment, Advance GDP Price Index q/q, and Advance GDP q/q. So, there is a probability the USD/JPY will move with low to medium volatility during this day.

TODAY'S TECHNICAL LEVEL:

Resistance. 3: 114.77.

Resistance. 2: 114.54.

Resistance. 1: 114.32.

Support. 1: 114.05.

Support. 2: 113.82.

Support. 3: 113.60.

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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Daily analysis of USDX for October 27, 2017

USDX has been favored in the last few hours by a fresh momentum above the 200 SMA, which also has been acting as a dynamic support in the short-term. The focus now shifts towards the 94.56 level, which coincides with a key level for sellers to appear. To the downside, the strong support still lies at the psychological zone of 93.00.

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H1 chart's resistance levels: 94.04 / 94.56

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 94.56 and stop loss is at 93.52.

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Daily analysis of GBP/USD for October 27, 2017

GBP/USD is piercing once again below the 200 SMA, confirming that it's trapped in between a narrow range. That's why we're no clear in which is the dominant trend across the board, but still, we're expecting a breakout lower. If the support level offered by October 20th lows give up, then we might see a decline towards the 1.3037 level.

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H1 chart's resistance levels: 1.3309 / 1.3373

H1 chart's support levels: 1.3216 / 1.3037

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 1.3216, take profit is at 1.3037 and stop loss is at 1.3398.

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BITCOIN Analysis for October 26, 2017

Bitcoin has been quite bullish today after the bearish rejection off the dynamic level of 20 EMA yesterday. The price is currently residing at the edge of the $6,000 resistance area and if the price breaks above this level with a daily close in coming days, it is expected that the price will head towards the $,7000 price area very soon in the future. The birth of Bitcoin Gold had a positive impact on Bitcoin, which is really positive for the cryptocurrency and the November impact now seems quite in favor of Bitcoin. As we have seen how the price reacted in August, the same impulsive movement can be expected in November as well. So, if the price clears the $6,000 resistance area with a daily close and remains above the $5,000 price level with the support of the dynamic level like 20 EMA, Tenkan and Kijun, then further bullish move is expected in the coming days.

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