Technical analysis of USD/JPY for October 30, 2017

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USD/JPY is under pressure and is expected to trade in a lower range. The pair is trading below its declining 20-period and 50-period moving averages, which play resistance roles and maintain the downside bias. The relative strength index is bearish and calls for a further decline.

To sum up, as long as 114.00 is not surpassed, look for a new test with targets at 113.00 and 112.70 in extension.

Alternatively, if the price moves in the opposite direction, a long position is recommended above 114.00 with a target at 114.30.

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

Strategy: SELL, Stop Loss: 114.00, Take Profit: 113.00

Resistance levels: 114.30, 114.65 and 115.00 Support Levels: 113.00, 112.70, 112.40

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Technical analysis of USD/CHF for October 30, 2017

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USD/CHF is expected to trade with bullish bias above 0.9960. Although the pair posted a pullback, a support base at 0.9960 has formed and has allowed for a temporary stabilization. Even though a continuation of the consolidation cannot be ruled out, its extent should be limited.

The U.S. Commerce Department reported that grew the U.S. economy grew at an annualized rate of 3.0% in the third quarter, compared with +2.7% expected and +3.1% in the second quarter.

Hence, as long as 0.9960 holds on the downside, a further upside to 1.0035 and even to 1.0065 seems more likely to occur.

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: 0.9960, Take Profit: 0.9900

Resistance levels: 1.0035, 1.0035, and 1.0065

Support levels: 0.9930, 0.9900, and 0.9865

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NZD/USD Intraday technical levels and trading recommendations for October 30, 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 30, 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 (Initial targets for the depicted H&S pattern).

The bearish target for the depicted Head and Shoulders pattern extends towards 1.1350 if enough bearish pressure is applied against the mentioned zone (1.1415-1.1520).

Trade Recommendations

The current bearish movement towards the price zone of 1.1415-1.1520 can be considered for a valid BUY entry (provided that evident bullish recovery is manifested at retesting).

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Bitcoin analysis for October 30, 2017

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The Bitcoin (BTC) has been trading upwards. The price tested the level of $6.221. The Japanese Financial Services Agency (FSA) has issued a statement regarding initial coin offerings (ICOs). In addition to risk warnings, the agency detailed how two existing laws may apply to token sales. Technical picture looks bearish.

Trading recommendations:

According to the 1H time frame, I found a potential double top formation and confirmed resistance at the price of $6.621. There is also a doji candle in the background, which is a sign that buyers lost power and that Bitcoin may start a potential downward correction. My advice is to watch for potential selling opportunities. Downward targets are set at the price of $6.012, $5.947 and $5.888. All targets are based on Fibonacci levels.

Support/Resistance

$6.222 – Resistance (price action)

$6.012 – Fibonacci 38.2 % support

$5.947 – Fibonacci 50 % support

$5.888 – Fibonacci 61.8 % support

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

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Technical analysis of GBP/JPY for October 30, 2017

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GBP/JPY is expected to trade with bullish outlook above 148.95. The pair posted a rebound from 148.95. The 20-period moving average has crossed above the 50-period one, indicating a positive signal. The relative strength index calls for a bounce.

Therefore, as long as 148.95 holds on the upside, look for a new advance with targets at 150.40 and 150.90 in extension.

Alternatively, if the price moves in the direction opposite to the forecast, a short position is recommended below 148.95 with the target at 148.95.

Strategy: BUY, Stop Loss: 148.95, Take Profit: 1150.40

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: 150.40, 150.90 and 151.45

Support levels: 148.60, 147.90, and 147.35

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Analysis of Gold for October 30, 2017

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Recently, the Gold has been trading sideways at the price of $1,271.00. According to the 15M time - frame, I found broken intraday bearish flag formation, which is sign that buying looks risky. I also found broken pivot level at $1,270.36, which is another sign of weakness. My advice is to watch for potential selling opportunities. The downward targets are set at the price of $1,267.00 (pivot support 1) and at the price of $1,260.50 (pivot support 2).

Resistance levels:

R1: $1,277.00

R2: $1,280.45

R3: $1,287.00

Support levels:

S1: $1,267.00

S2: $1,260.50

S3: $1,256.85

Trading recommendations for today: watch for potential selling opportunities.

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Technical analysis of NZD/USD for October 30, 2017

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NZD/USD is expected to trade with bullish outlook above 0.6825. Although the pair broke below the 20-period moving average, it is still trading above its rising 50-period moving average, which plays a support role. 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 0.6825, look for a further rise to 0.6875 and even to 0.6900 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: 0.6875, 0.6900, and 0.6935

Support levels: 0.6800, 0.6765, and 0.6735

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Global macro overview for 30/10/2017

Global macro overview for 30/10/2017:

The reading from a month ago was at the level of 105.8 and this month reading was released at the level of 109.1.This is the second upward movement in succession. The upward tendency is mainly driven by the banking and manufacturing indicators. However, the prospects for exports and the accommodation and food service activities are also somewhat better than before. The indicators for domestic consumption are stagnating, and the indicators for the further development of the construction sector have declined somewhat. Regarding tot he manufacturing, the indicators for machinery, metal, electrical equipment, paper and other manufacturing industries are pointing upwards.

The Swiss economy is performing well and Autumn is welcoming it with a tailwind. The SNB is far from lifting borrowing rates and the current level of negative interest rates at -0.75% might stay here a little longer despite the recent European Central Bank announcement of a reduction of the monthly asset purchase of €30bn per month (which is clearly tightening, while at the same time sounding dovish).

Let's now take a look at the EUR/CHF technical picture at the H4 time frame. The further upside EUR/CHF is quite limited in the short-term as market participants are progressively adopting a more bearish bias on the pair. In addition, the Catalan crisis reminded everybody that the European Union is not as united as Brussels says. On the other hand, there is little incentive for investors to bet on a sharp reversal in EUR/CHF as monetary policy divergence is clearly in favor of Euro. The recent bounce from the level of 1.1557 might be short-lived if the Catalan tensions will escalate.

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EUR/USD analysis for October 30, 2017

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Recently, the EUR/USD has been trading upwards at the price of 1.1642. Anyway, according to the 15M time – frame, I found that price failed to test pivot resistance 1 at 1.1652, which is a sign that buying looks risky. I also found 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 1.1613 (pivot) and 1.1570 (pivot support 1).

Resistance levels:

R1: 1.1652

R2: 1.1696

R3: 1.1735

Support levels:

S1: 1.1570

S2: 1.1530

S3: 1.1485

Trading recommendations for today: watch for potential selling opportunities.

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Global macro overview for 30/10/2017

Global macro overview for 30/10/2017:

The independence of the Catalans is not a strong argument for the decline of the euro, as the events of the weekend suggest that the politicians' decisions are met with resentment among the Catalans themselves. On Friday the parliament of Catalonia announced the declaration of independence, and then as expected the Senate of Spain launched art. 155 and took control of the regional government. Later, the Catalan parliament was dissolved, and new elections were scheduled for December 21. But Barcelona's opposition to Madrid is no longer so unequivocal. On the contrary, on Sunday, 300 000 opponents of independence have shown that the perception of the population is different than that of politicians. A poll for the newspaper El Mundo showed that support for the party for and against secession was balanced: 42.5% vs 43.4%. Uncertainty about the future of Spain will probably remain until December, but it is now crucial that things do not go towards the tragic finale. For the euro, it may be good news and a chance for a moment of pause from falling, but one can not forget that the disappointment of the ECB decision has not disappeared and it will be primarily sentiment to maintain the pressure on the currency.

Let's now take a look at the EUR/JPY technical picture at the H4 time frame. The market has dropped towards the technical support at the level of 131.68 after a failure at the level of 134.40 resistance. Currently, the market conditions are oversold and the price is trying to bounce back towards the nearest technical resistance at the level of 132.57.

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Trading Plan for Gold and Silver for October 30, 2017

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Technical outlook:

The yellow metal seems to have dropped into 5 waves from $1,357.00 levels as labeled here until October 06, 2017. An impulse normally leads to a 3 wave correction and the rally between $1,260 through $1,306 seems to be the first corrective wave. The drop from $1,306 towards $1263 lows made on Friday last can be considered as the second corrective wave. If the wave counts till now holds to be true, the most probable push from here should be on the north side towards $1,320 levels going forward. Also, prices should broadly remain above $1260.50 levels for this count to be true. In conventional terms, the current setup is called a down Gartley if prices manage to reach $1,320 levels from here. Resistance should remain strong near $1,357 levels and the pull back rally should be well capped below $1,357 going forward.

Trading plan:

Aggressive traders would remain long with risk below $1260 targeting $1,320, while conservative traders would remain flat for now and look to sell higher.

Silver chart setups:

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Technical Outlook:

Silver wave counts are pretty clear and similar to that of the yellow metal. It dropped in a clear impulse from $18.20 through $16.30 levels earlier as labeled here. The lows made on October 06, 2017 is labelled as wave (1) or A. Furthermore, the rally through $17.45 levels can be defined as wave A of the corrective A-B-C, while the subsequent drop towards $16.60 levels (last Friday), can be defined as wave B. If the above wave counts hold to be true, the most probable push should be on the north side defined as wave C towards $17.60/80 levels. Resistance is at $18.20 levels and prices should remain well capped below the same for any counter-trend rallies ahead. An interim support is at $16.30 levels and hence prices should ideally remain above that to keep the above wave structure intact. Also, note that the Fibonacci resistance will be strong at $17.60 levels to keep rallies under check.

Trading plan:

Aggressive traders should remain long now with risk below $16.30 levels, targeting $17.60/80, while conservative traders should remain flat, looking to sell higher.

Fundamental outlook:

Please watch out for USD PCE Core and German Consumer Price Index between 0830 and 0900 AM EST today.

Good luck!

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Trading Plan for EUR/USD and US Dollar Index for October 30, 2017

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Technical outlook:

The EUR/USD pair seems to have completed 5 waves drop from 1.2090 levels as labeled here. It has either bottomed out at 1.1573 levels on Friday last or could print yet another low before confirming. If the above wave counts hold true, the next high probable move looks to be on the north side towards 1.1900 levels at least. Resistance should be strong at 1.2092 levels going forwards and prices should broadly remain below that point. The impulse drop could be still defined as wave (1), within 5 waves drop lower or as wave A, within a corrective A-B-C drop lower. In either case, a corrective rally should be due any moment and push prices higher towards 1.1900 levels, before pushing lower again.

Trading plan:

Aggressive traders may want to go long here with risk below 1.1500 with a target of 1.1900; while conservative players might want to remain flat and look to sell higher.

US Dollar Index chart setups:

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Technical outlook:

The US Dollar Index looks to have either completed a 5 waves impulsive rally towards 95.10/20 levels or should be looking to push through yet another high to complete the same. If the labeled wave counts hold to be true, the next high probable trade setup for the US Dollar Index should be lower from here, towards 92.60/80 levels at least. The current impulse could be counted as wave (1) of a 5 waves rally or wave A within a 3 wave A-B-C correction. The US Dollar Index is not too far from an interim high and aggressive traders might want to prepare shorts here with risk around 96.00 levels. Support should be strong around the 91.00 mark and all corrective drops should remain well capped above that level going forward.

Trading plan:

Aggressive traders might want to sell here with risk around 96.00 levels, while conservative traders would want to remain flat and buy lower around 92.60/80,

Fundamental outlook:

Watch out for USD PCE core and German Consumer Price Index between 0830 AM EST and 0900 AM EST.

Good luck!

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Technical analysis of NZD/USD for October 30, 2017

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Overview:

  • The price is till trade around the area of 0.6860 and 0.6800. The NZD/USD pair didn't make any significant moves since last week. 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. Last week, 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 0.6945 is not breached.
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Technical analysis of USD/CHF for October 30, 2017

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Overview:

  • Last week, 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.

Trading recommendations:

  • The minor support is seen at the level of 0.9942, it will be profitable to buy above the spot of 0.9940 with the targets of 0.9998, 1.0050 and 1.0100. However, the stop loss should be placed at the 0.9898 price.
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Bitcoin analysis for 30/10/2017

Bitcoin analysis for 30/10/2017:

On October 28, zb.com, which is the new platform for cryptocurrency transactions, announced that all commercial functions will be available from November 1st. Users can sign up for an account and now pay for it.The stock market claims that people all over the world, including in mainland China, can use this platform. It gives you the opportunity to speak Chinese and English. However, it is too early to say that the Bitcoin and other digital currencies regulation is completely invalid. Probably the Chinese government has given citizens permission to use zb.com, but it remains unofficial for that moment.

No one knows what will happen after 1st November. The good news is that Chinese traders will have the opportunity to buy and sell Bitcoin again. Since the closure of the stock exchange in China, people have started using Taobao, the Chinese version of eBay, belonging to the Alibaba Group, the Wechat newsgroup, and the QQ newsgroup. Offline transactions have become very popular among Chinese traders recently.

Let's now take a look at the Bitcoin technical picture at the H4 time frame. The price has broken above the technical resistance at the level of $6,168, but so far this is still a three wave move up, so it can be considered as a part of the wave (b). In turn, the current corrective structure of wave 4 might develop into an (a)(b)(c) irregular or run a flat correction. To do this, the price must now fall down in impulsive fashion to the level of $5,092. If the price will not fall but will make another higher high instead, then the low for the wave 4 is already in place at the level of $5,357.

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Trading plan for 30/10/2017

The beginning of the week brings a calm start, but it should not be boring with BoJ, Fed, BoE and NFP reports, and events in Spain. USD is kept in the middle of the rate with limited fluctuations in exchange rates. Only NZD loses more weight under its own weight.The stock market is flat. The Nikkei 225 remains at Friday's closing level, consolidating earlier gains to the 21-year highs. Hang Seng loses 0.1$.

On Monday 30th of October, the event calendar is light with important news releases, but the market participants will keep an eye on Retail Sales and Preliminary CPI data from Germany, KOF Economic Barometer data form Switzerland, Net Lending to Individuals data from the UK and Personal Spending data from the US.

EUR/USD analysis for 30/10/2017:

The German Retail Sales data were released in line with the expectations at the level of 0.5% on monthly basis and recorded a quarterly increase to 4.1% from 3.0%. The question remains whether the preliminary CPI data will meet the market participants expectations of 0.1% increase as well, but traders will find out later today.

On the other news that might influence EUR/USD rate today: Jerome Powell, a relatively dovish board member of the Fed, is a favorite in the race for the Fed chairman's chair. The above reports contribute to minimizing the probability of choosing the highly hawkish John Taylor, the creator of the quantitative instrumental method, through which respect for the optimal cost of money is evaluated.

Let's now take a look at the EUR/USD technical picture at the H4 time frame. The weekly support at the level of 1.1610 was violated, but there is no clear down move continuation so far. The nearest technical resistance is at the level of 1.1662, just below the 38% Fibo at the level of 1.1674. The market conditions look oversold, but there is no divergence yet.

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Market Snapshot: Crude Oil breakout

The price of Crude Oil has broken above the technical resistance at the level of $52.86 (now support) and now is trading around the level of $54.16. The next important technical resistance is seen at the level of $54.96. Due to the overbought trading conditions, the technical support at the level of $52.86 should be tested from above before new higher high will be made.

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Market Snapshot: AUD/USD makes bullish hammer

The price of AUD/USD has made a bullish hammer candlestick pattern with a low at the level of 0.7626 and now is bouncing up towards the level of 0.7713, the nearest technical resistance. It will be hard to break above the technical resistance zone between the levels of 0.7713 - 0.7742 and the market could reverse in this area.

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Trading plan 30.10 - 3.11.2017

Trading plan 30.10 - 3.11.2017

Important news of the week.

The overall picture: Last week, the EUR/USD pair ended with a strong fall in its rate due to the ECB's decision and the crisis on Catalonia-Spain.

On Monday morning, the Catalonia crisis seems to have receded. ECB's decisions as a whole were more likely to strengthen the euro, so the fall of the euro may not be very deep and long. But the 1.1500 rate is quite achievable, and can even reach up to 1.1300.

Important news of the week. On Monday, an important report on US consumer income/expenditures shows the market expects a fresh data on the RFE inflation index scheduled today at 12.30 London time.

Then, an important data on Wednesday is from the Fed.

In addition, on the same day, Wednesday, the report on US employment from ADP and the ISM manufacturing index, in general, is a day of big news and possible volatility.

On Friday - the report on employment in the US Nonfarm payrolls shows forecasts are very high, reaching up to +300K.

On GBPUSD: On Thursday, the decision of the Bank of England about the rate hike is highly expected by everyone.

The pound formed a hard range before deciding on rates.

We trade for a breakthrough:

We are buying from 1.3290.

Sell from 1.3020.

* The presented market analysis is informative and does not represent a transaction guide

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Ichimoku indicator analysis of USDX for October 30, 2017

The Dollar index as expected has pulled back after the strong breakout to new highs last week. Short-term trend remains bullish as long as the price is above 93.50.

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Red line - resistance (broken) now support

The Dollar index is trading above the 4-hour Kumo (cloud) support. Price has not even pulled back towards the 38% Fibonacci retracement of the latest rise. This confirms the strength of the uptrend. Short-term support is at 94.50 and next at 94.10 the previously broken resistance.

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On a weekly basis, the trend remains bearish as the price is below the weekly Kumo (cloud). The kijun-sen (yellow line indicator) resistance is at the same level with the weekly 38% Fibonacci retracement at 95.40. I expect this level to be tested and price to get rejected in order to resume the longer-term downward trend towards 88-90.The material has been provided by InstaForex Company - www.instaforex.com

Ichimoku indicator analysis of gold for October 30, 2017

The Gold price remains in a bearish trend at least in the short-term. Price continues to make lower lows and lower highs below the Kumo (cloud). A move towards $1,260-50 is not out of the question as long as we trade below $1,283.

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Blue line - resistance

Red line - support

The Gold price is trading below both the tenkan- and kijun-sen indicators inside a downward sloping wedge pattern. Resistance is at $1,275 and next and more important at $1,283. At $1,290 we have the resistance that if broken we have a confirmation of short-term trend change to bullish. Until then the trend is bearish.

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Blue line - long-term support

Magenta line - long-term resistance

Red line - expectation

Gold price is heading towards the weekly Kumo (cloud) and the blue trend line support. There are a lot of chances we go towards that area of support before resuming the uptrend. This scenario is valid as long as we trade below $1,283. If $1,283 is broken upwards then we could say that the decline is most probably over. Only above $1,315, we can be sure that we will not see a lower low.

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Last minute burning forecast 30.10.2017

EURUSD: We are waiting for a new wave of decline.

At the end of last week, the EURUSD pair showed a full downward turn. The movement is not complete.

A new wave of decline is possible on Monday, perhaps it will be on an important report on the consumer income/expenditures in the US at 11:30 London time - the report will provide new data on inflation. The market expects inflation in the US - the inflation forecast for the RFE index is only at 1.4% However, we expect the indicator to be higher than the forecast.

Since the market has already gone down a considerable distance, we sell with a rebound upwards:

Selling from 1.1660 to 1.1700. The minimum goal is to repeat the lows around 1.1580. The target is 1.1500.

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Elliott wave analysis of EUR/NZD for October 30, 2017

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Wave summary:

The break below support at 1.6958 told us that the top of red wave i was seen with the test of 1.7216 and red wave ii now is developing close to 1.6784. The correction in red wave ii has declined to a low of 1.6822, which could be correction enough for red wave iii to take over for the next impulsive rally towards 1.7772.

Short-term a break above minor resistance at 1.7054 will confirm that red wave ii has completed and red wave iii higher is developing.

R3: 1.7216

R2: 1.7120

R1; 1.7054

Pivot: 1.7000

S1: 1.6933

S2: 1.6893

S3: 1.6822

Trading recommendation: Our stop at 1.6950 was hit for a nice profit of 110 pips. We will be looking for a new buying opportunity 1.6890 with a stop placed at 1.6815 or upon a break above 1.7054.

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Elliott wave analysis of EUR/JPY for October 30, 2017

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Wave summary:

As long as important support at 131.60 is able to protect the downside, we still could see a final rally higher to 137.37 to complete wave (D). From near 137.37 or upon a break below support at 131.60 wave (E) lower to 123.43 is expected.

R3: 133.49

R2: 133.00

R1: 132.42

Pivot: 131.60

S1: 131.03

S2: 130.60

S3: 130.00

Trading recommendation:

We are long EUR from 132.30 with stop+revers at 131.60.

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Fundamental Analysis of USD/JPY for October 30, 2017

USD/JPY is currently residing below the resistance area of 114.30-50 which is expected to push the price lower towards 112.00-50 support area in the coming days. USD has been quite positive with the economic reports recently which pushed the price higher towards the resistance area of 114.30-50 before the price showed bearish intervention. This week is going to be very volatile for the USDJPY pair as FOMC Meeting, Federal Funds Rate, Non-Farm Payroll, Average Cash Earnings, and Unemployment Rate report is going to be published, which on average is expected to be quite positive in nature and on the JPY side, Monetary Policy Statement and BOJ Policy will be published which is expected to be unchanged at -0.10%. Today, JPY Retail Sales report was published which was published at 2.2% from the previous value of 1.8% which did not quite meet the expectation of 2.3%. The positive economic report did help the currency to sustain the gain over USD today which is expected to push price lower in the coming days. On the other side, today USD Core PCE Price Index is going to be published which is expected to be unchanged at 0.1%, Personal Spending report is expected to show a growth to 0.8% from the previous value of 0.1% and Personal Income report is also expected to increase to 0.4% from the previous value of 0.2%. As of the current situation, USD is expected to show some positive economic results in the coming days which is expected to add to the USD gain but JPY is equally quite stronger in comparison as well. A good amount of volatility is expected to hit the market this week and provide a directional indication for future by the end of the week.

Now let us look at the technical view, the price has been quite corrective recently rejecting off the resistance area of 114.30-50 for several times. The price is currently residing just below the resistance area of 114.30-50 where Bearish Regular Divergence can also be observed as well. As of the current scenario, the price is expected to push lower towards the support area of 112.00-50 before showing any upcoming bullish move in the pair. As the price remains below 114.30-50 resistance area the bearish bias is expected to continue further.

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Fundamental Analysis of EUR/USD for October 30, 2017

EUR/USD has been impulsively bearish yesterday after the ECB Press conference had postponed the tapering. After months of hawkish events of Euro, the currency has gained quite well against USD recently which is currently expected to lose some grounds in the coming days. Today EUR German Retail Sales report is expected show a growth to 0.5% from the previous negative value of -0.2%, German Prelim CPI is expected to show growth as well which previously was at 0.1%, Spanish Flash CPI report is expected to show slight decrease to 1.7% from the previous value of 1.8% and Spanish Flash GDP is also expected to publish with slight decrease to 0.8% from the previous value of 0.9%. On the USD side, today Core PCE Price Index report will be published which is expected to be unchanged at 0.1%, Personal Spending is expected to be published with significant growth to 0.8% from the previous value of 0.1% and Personal Income is also expected to show rise to 0.4% from the previous value of 0.2%. As of the current scenario, USD is expected to be quite positive with the economic reports where EUR is expected to be negative which is expected to push the price lower in the coming days. This week is going to be quite volatile as USD FOMC Statement, Federal Funds Rate report, Non-Farm Payroll, Average Cash Earnings, and Unemployment Rate reports are going to be published which are expected to show positive results on average. To sum up, USD is expected to gain momentum against EUR in the coming days which may lead to further bearish pressure in the pair taking the price much lower in future.

Now let us look at the technical view, price has been impulsively bearish recently which lead to break below the 1.1660 support level whereas dynamic level is quite downward sloping as well. As of the current situation, price is expected to show some bullish move towards 1.1660 or at most towards the dynamic level of 20 EMA before showing some bullish rejections and showing some bearish momentum with target towards 1.1550 in the coming days. As the price remains below 1.1850 resistance area the bearish bias is expected to continue further.

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Technical analysis of EUR/USD for Oct 30, 2017

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When the European market opens, some Economic Data will be released, such as Italian 10-y Bond Auction, Spanish Flash GDP q/q, Spanish Flash CPI y/y, German Prelim CPI m/m, and German Retail Sales m/m. The US will release the Economic Data, too, such as Loan Officer Survey, Personal Income m/m, Personal Spending m/m, and Core PCE Price Index m/m, so, amid the reports, EUR/USD will move in a low to medium volatility during this day.

TODAY'S TECHNICAL LEVEL:

Breakout BUY Level: 1.1663.

Strong Resistance:1.1656.

Original Resistance: 1.1645.

Inner Sell Area: 1.1634.

Target Inner Area: 1.1606.

Inner Buy Area: 1.1578.

Original Support: 1.1567.

Strong Support: 1.1556.

Breakout SELL Level: 1.1549.

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 30, 2017

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In Asia, Japan will release the Retail Sales y/y data, and the US will release some Economic Data, such as Loan Officer Survey, Personal Income m/m, Personal Spending m/m, and Core PCE Price Index m/m. So, there is a probability the USD/JPY will move with low to medium volatility during this day.

TODAY'S TECHNICAL LEVEL:

Resistance. 3: 114.26.

Resistance. 2: 114.03.

Resistance. 1: 113.81.

Support. 1: 113.55.

Support. 2: 113.32.

Support. 3: 113.10.

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.

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

EUR/JPY on major support, time to play a corrective bounce

The price has dropped strongly from last week and is now testing major support at 131.77 (Fibonacci extension, horizontal swing low support) and we expect to see a strong corrective bounce above this level to push the price up to at least 132.46 resistance (Fibonacci retracement, horizontal overlap resistance).

Stochastic (55,3,1) is seeing strong support above 2.1% where we expect a bounce from.

Buy above 131.77. Stop loss is at 131.52. Take profit is at 132.46.

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USD/JPY reversing perfectly, remain bearish for a further drop

The price has dropped absolutely perfectly from our selling area as expected and is fast approaching our profit target. We remain bearish below 114.00 resistance (Fibonacci retracement, horizontal overlap resistance, big figure, bearish divergence, ascending support break) as we expect a strong push down to at least 131.16 support (Fibonacci retracement, horizontal overlap support).

Stochastic (55,3,1) is seeing strong support broken opening a drop to the downside which has massive bearish potential.

Sell below 114.00. Stop loss is at 114.54. Take profit is at 113.16.

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Daily analysis of major pairs for October 30, 2017

EUR/USD: This currency trading instrument consolidated from October 23 to 25, and then dropped about 230 pips on October 26 and 27. The support lines at 1.1550, 1.1500 and 1.1450 could be reached this week, as price drops further. The outlook on the market is bearish for this week, but bullish for November (the outlook on EUR pairs). So the price would eventually rally to gain at least 300 pips in November.

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USD/CHF: The USD/CHF went upwards last week, gaining about 180 pips. Price went briefly above the strong resistance level at 1.0000 (as USD and CHF gained a momentary parity). The parity would be achieved again this week as the market goes towards the resistance levels at 1.0000, 1.0050 and 1.0100. However, the parity would be transient because an expected rise on EUR/USD would result in a selling pressure on the USD/CHF.

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GBP/USD: The GBP/USD has been caught in short-term upswings and downswings. Soon, there would be a rise in volatility, which would propel price above the distribution territory at 1.3300 or below the accumulation territory at 1.3000. GBP pairs would undergo very strong movements in November, which would be bullish in most cases.

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USD/JPY: This pair made a feint bullish effort last week, but it did not close above the supply level at 114.00. There is a lot of activity around that supply level, and the price would eventually close above it as it journeys further upwards this week because the outlook on certain JPY pairs is bullish for the week; plus USD is expected to retain some of the stamina in it.

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EUR/JPY: Most EUR pairs plummeted in the last few days of last week, and the EUR/JPY cross also was not spared. Price initially made some bullish effort on Monday to Wednesday, but the further bullish effort was rejected at the supply zone at 134.50 – a point from which price dropped 260 pips. While the demand zones at 131.50 and 131.00 could be tested before price rallies, the price could reach the stubborn supply zone at 134.50 again (which would be attained within the next few weeks).

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Daily analysis of USDX for October 30, 2017

The index is forming a higher high pattern below the resistance zone of 95.14 and looks forward to reaching new highs in the short-term. If a breakout happens over there, we can expect a rally towards the 95.85 level. To the downside, nearest support lies at 94.60 and if USDX retraces below it, then we should expect a testing of the 200 SMA at H1 chart.

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H1 chart's resistance levels: 95.14 / 95.85

H1 chart's support levels: 94.60 / 93.97

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 95.14, take profit is at 95.85 and stop loss is at 94.47.

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Daily analysis of GBP/USD for October 30, 2017

The pair has resumed the bearish path below the 200 SMA and it's currently forming a lower low pattern that could help to boost the bears in the short-term. With a break below the 1.3037 level, we can expect further declines toward the 1.2870 level, which should strengthen the bearish bias across the board. MACD indicator remains in the positive territory, favoring to a recovery.

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H1 chart's resistance levels: 1.3201 / 1.3309

H1 chart's support levels: 1.3037 / 1.2870

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 1.2870 and stop loss is at 1.3201.

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