Technical analysis of USD/JPY for November 07, 2017

USDJPYM30.png

All our targets which we predicted in yesterday's analysis have been hit. USD/JPY is still expected to trade with a bullish outlook. 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 supported by a rising trend line. To conclude, as long as 113.80 holds on the downside, a further rebound to 114.40 and even to 114.70 seems more likely to occur.

Alternatively, if the price moves in the opposite direction, a short position is recommended above 113.80 with a target at 113.65.

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: 113.60, Take Profit: 114.70

Resistance levels: 114.40, 114.70 and 115.05 Support Levels: 113.65, 11.30, 112.95

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

Technical analysis of USD/CHF for November 07, 2017

USDCHFM30.png

USD/CHF is under pressure. The pair confirmed an intraday bearish reversal after the downside breakout of its key horizontal level at 1.0040 (a psychological level). The 20-period and 50-period moving averages are now above the prices and should maintain the strong selling pressure. Besides, the relative strength index is negative, without showing any reversal signal.

In conclusion, below 1.0040, look for a new decline to 0.9965 and 0.9935 in extension.

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

Strategy: SELL, Stop Loss: 1.0040, Take Profit: 1.0070

Resistance levels: 1.0070, 1.0095, and 1.0145

Support levels: 0.9965, 0.9935, and 0.9900

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

Fundamental Analysis of EUR/JPY for November 7, 2017

EUR/JPY has been impulsively bearish recently after bouncing off 132.50 resistance area. The pair is still residing inside the corrective range between 131.70 to 134.40 area but currently having a bearish squeeze above the support area. Today ECB President Draghi spoke about the European Banking Supervision which has been quite successful as it has contributed well into the banking sector and on the monetary policy. Draghi has been quite hawkish with his speech today which helped the currency to gain some momentum against JPY but found not sufficient to sustain the gain. Along with the event, today Italian Retail Sales report was published with an increase to 0.9% from the negative value of -0.2% which was expected to be at 0.2%, Retail PMI report showed slight decrease to 51.1 from the previous figure of 52.3, Retail Sales report showed increase to 0.7% from the negative value of -0.1% which was expected to be at 0.6% and ECOFIN Meeting is still undergoing which covers the economic policies, decisions and Eurozone Economic health which is expected to be quite neutral in nature. On the JPY side, today Average Cash Earnings report was published with an increase at 0.9% from the previous value of 0.7% which was expected to decrease to 0.6%. As of the current scenario, JPY is stronger in comparison to EUR despite the hawkish results of EUR published today which does indicate that JPY has the possibility of better gains in the coming days over EUR.

Now let us look at the technical view, the price is currently showing some bearish pressure by rejecting the bulls off the mid-resistance area of 132.40-50 which is currently expected to show bearish pressure with the target towards 129.80-130.00 support area in the coming days. As the price remains below 132.40-50 resistance area with daily close the bearish bias is expected to continue further.

analytics5a01b727c6e77.jpg

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

Technical analysis of GBP/JPY for November 07, 2017

GBPJPYM30.png

NZD/USD is expected to trade with a bearish outlook. The pair recently extended its decline and rebounded around 148.75, and is likely to gain the support level at 149.40. The risk of a slide below this threshold remains high, as the 20-period and 50-period moving averages are heading downward, and should continue to push the prices lower. In addition, the relative strength index is below its neutrality area at 50. Therefore, even though a technical rebound cannot be ruled out at the current stage, its extent should be limited.

As long as 150.35 is not surpassed, look for a new pullback to 149.40 and 149 in extension.

Alternatively, if the price moves in the direction opposite to the forecast, a short position is recommended below 150.35 with the target at 151.60.

Strategy: SELL, Stop Loss: 150.35, 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: 150.60, 151.00 and 151.55

Support levels: 149.40, 149.00, and 148.35

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

Technical analysis of NZD/USD for November 07, 2017

NZDUSDM30.png

NZD/USD is expected to trade with a bullish outlook. The pair is expected to challenge its nearest key resistance at 0.6955, and is likely to break above it in the coming trading hours. The 20-period moving average has crossed above the 50-period one, and both of them are turning up, calling for further advance. The relative strength index is also bullish above its neutrality area at 50.

Hence, as long as 0.6880 is not broken, look for a new rise to 0.6955 and 0.6990 in extension.

The black line shows 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: 0.6955, 0.6990, and 0.7045

Support levels: 0.6850, 0.6830, and 0.6800

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

Global macro overview for 07/11/2017

The Australian Dollar found temporary support in the RBA announcement that no major changes in inflation and growth forecasts were made. Especially the latter was reassuring in the face of recent disappointing CPI data. But the bank maintained optimism about growth with signs of slowing consumption (a drop in retail sales of 0.6% since August) and low wage pressure. In the statement, RBA Governor Phillip Lowe said: "Conditions in the global economy are continuing to improve. Labour markets have tightened and further above-trend growth is expected in a number of advanced economies, although uncertainties remain. The Bank's forecasts for growth in the Australian economy are largely unchanged. The central forecast is for GDP growth to pick up and to average around 3.0% over the next few years. Business conditions are positive and capacity utilization has increased".

In conclusion, there was nothing new in the RBA statemnet as many of the remarks were reiterated. Nevertheless, despite a lack of a hike this time, tougher lending conditions have arguably had a similar effect as a lift in the cash rate, except the effect is more focused on slowing investment activity across the housing sector. Moreover, house price data for October showed Sydney home values continued to a slide in October, with the nation's biggest housing market recording its first quarterly fall in prices since May 2016.

Let's now take a look at the AUD/USD technical picture at the H4 time frame after the news was released. The market tried to rally higher after the data, but it was capped at the level of 0.7700. Only a good attitude of copper and iron ore (under the influence of oil rally) inhibits the decline of AUD, but the macro background supports the view of continuation of the downtrend. The next immediate support is seen at the level of 0.7625.

analytics5a01a4a986724.jpg

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

Global macro overview for 07/11/2017

Oil rises to $57, hitting the highest level since July 2015.

The rally in oil prices is partly driven by recent reports from the OPEC as the geopolitics continues to boost price surges. As an outgrowth of an anti-corruption campaign, Saudi Arabia's powerful crown prince led a massive purge over the weekend, removing around a dozen royal cousins in a bid to consolidate power. In the result, Crown Prince Mohammed bin Salman will now be the most powerful figure the country has seen in generations. Many analysts expect octogenarian King Salman to abdicate the throne in the coming months. Khatija Haque, head of Middle East research at Emirates NBD PJSC said: "The new leadership is committed to modernizing the economy and diversifying the economy and addressing the issue of over-reliance on oil". However, foreign investors might have a different point of view on the current situation.

Apart from the geopolitical risk, which could be helping to add a bit of bullish momentum to oil prices, the other important factor governing oil prices is the future of the OPEC oil cuts extension. With an OPEC and non-OPEC production cut extension seemingly a done deal and Nigeria indicating its support, the bullish momentum might continue its pace.

Let's now take a look at the Crude Oil technical picture at the daily time frame. The price has hit the level of $57.70 after breaking out of the bullish channel. The next technical resistance is seen on the weekly chart at the level of $62.44, but the extremely overbought market conditions might cause the price to deteriorate towards the technical support at the level of $55.26 first.

analytics5a01a43f48f3a.jpg

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

Bitcoin analysis for November 07, 2017

analytics5a01a17999851.png

The Bitcoin (BTC) has been trading sideways at the price of $7.183. As hedge funds rush to enter the cryptocurrency space, the landscape for retail cryptocurrency investors is fundamentally changing before our very eyes. Marcel Chuo from news.Bitcoin.com sits down with Guy Zyskind, CEO of Enigma to discuss how his team is helping hedge funds that utilize artificial intelligence and automated bot trading enter the crypto space. Guy breaks down the implications of this fundamental shift and we discuss how the community can prepare for the rise of AI in crypto trading. Technical picture looks neutral to bearish.

Trading recommendations:

According to the 15M time frame, I found broken intraday symmetrical trignale in the background, which is a sign that buying looks risky. I also found a hidden bearish divergence on the RSI oscillator, which is another sign of weakness. My advice is to watch for potential selling opportunities. The downward target is set at the price of $6.912.

Support/Resistance

$7.210 – Intraday resistance (price action)

$7.151. – Pivot level

$6.892 – Pivot support 1

$7.378 – Pivot resistance 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

Analysis of Gold for November 07, 2017

analytics5a019b9dbb9b9.png

Recently, Gold has been trading sideways at the price of $1,276.00. According to the 15M time – frame, I found a supply trendline, which is holding. It also indicates that sellers are in control today. There is also a breakout of the pivot level of $1,276.95, which is another sign that there is weakness in the background. My advice is to watch for potential selling opportunties. The downward tarrgets are set at the price of $1,271.10 (pivot support 1) and at the price of $1,265.50 (swing low).

Resistance levels:

R1: $1,287.83

R2: $1,293.80

R3: $1,304.70

Support levels:

S1: $1,270.97

S2: $2,260.10

S3: $1,254.11

Trading recommendations for today: watch for potential selling opportunities.

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

GBP/USD analysis for November 07, 2017

analytics5a01981bd8cf7.png

Recently, the GBP/USD pair has been trading upwards. The price tested the level of 1.3177. Anyway, according to the 15M time - frame, I found a broken upward channel and potential double top formation, which is a sign that buying looks risky. There is also 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 1.3096 (pivot support 1) and at the price of 1.3055 (swing low).

Resistance levels:

R1: 1.3212

R2: 1.3252

R3: 1.3330

Support levels:

S1: 1.3096

S2: 1.3055

S3: 1.3280

Trading recommendations for today: watch for potential selling opportunities.

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

Technical analysis of NZD/USD for November 07, 2017

NZDUSDH4.png

Overview:

  • The NZD/USD pair is still trading around the area of 0.6818 and 0.6968. Last week, the NZD/USD pair rebounded from the level of 0.6818 in the long term. It should be noted that the support is established at the level of 0.6818 which represents the daily support 1t on the H4 chart. The NZD/USD pair is showing signs of force following a breakout of the highest price of 0.6968. The price was in a bullish channel since this morning. This is confirmed by the RSI indicator signaling that we are still in a bullish trending market. The NZD/USD pair continues to move upwards from the level of 0.6818. As long as the trend is above the price of 0.6818, the market is still in an uptrend. In addition, the trend is still strong above the moving average (MA100). The NZD/USD pair didn't make any significant movements last two days. The market is indicating a bullish opportunity above the mentioned support levels. The bullish outlook remains valid as long as the 100 EMA heads for the upside. Therefore, strong support will be found around the spot of 0.6818 providing a clear signal to buy with a target seen at 0.6968. If the trend breaks the first resistance at 0.6968, the pair will move upwards continuing the bullish trend development to the level of 0.7207 in order to test the daily resistance 2. It should be noted that the major resistance is seen at 0.7207 today. On the other hand, it would also be wise to consider where to place a stop loss; this should be set below the level of 0.6703.
The material has been provided by InstaForex Company - www.instaforex.com

Technical analysis of USD/CHF for November 07, 2017

USDCHFH1.png

Overview:

  • The USD/CHF pair broke the resistance at the price of 0.9998 which acts as support since last week.The pair has already formed major support at 0.9942. The strong support is seen at the level of 0.9898. And the minor support is seen at 0.9998 now. On the H1 chart, 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. Moreover, 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. Briefly, 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. On the other hand, the stop loss should be placed at the 0.9900 level on the H1 chart. We are still looking for a strong bullish market in coming two days.

Obseravtions:

  • Pivot point is seen at the price of 0.9998.
  • Major support sets at the level of 0.9942.
  • It should be noted that if the trend is buoyant, then the strength in this currency pair will be defined as follows: USD is in an uptrend and CHF is in a downtrend.
The material has been provided by InstaForex Company - www.instaforex.com

Daily analysis of major pairs for November 7, 2017

EUR/USD: The EUR/USD pair is moving downwards gradually, while the overall bias on the market is bearish. Price is now below the resistance line at 1.1600, going towards the support line at 1.1550. USD is supposed to be strong this week, and that is what would put some bearish pressure on the EUR/USD pair.

1.png

USD/CHF: The USD/CHF pair did not move seriously on Monday, but it was able to maintain its bullishness. The targets for this week are located at the resistance levels of 1.0050, 1.0100, and 1.0150. The resistance level at 1.0150 would require a very strong buying pressure to be breached to the upside.

2.png

GBP/USD: The Cable is a kind of maniacal market right now, with large upswings and downswings. The short-term bias on the market is neither clearly bearish nor clearly bullish. A directional bias is expected to form soon, after price goes perpetually in one direction. Until then, one would do well to stay out of the market.

3.png

USD/JPY: A bullish signal has been generated on the USD/JPY pairs. Price is currently making bullish effort; and having gone above the demand level at 114.00, it is targeting the supply level at 114.500. Another target for the week is the supply level at 115.00.

4.png

EUR/JPY: There is a Bearish Confirmation Pattern on this cross, and rallies ought to be construed as opportunities to sell short. The demand zone at 132.00 has been tested and it would be tested again (it would be breached to the downside as price goes further south). Owing to a bearish outlook on EUR pairs this week, the market is supposed to go further southwards.

5.png

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

Elliott wave analysis of EUR/NZD for November 7, 2017

analytics5a017e70f3f53.png

Wave summary:

We continue to look for more downside pressure towards 1.6545 to complete wave ii and set the stage for a new impulsive rally in wave iii towards 1.7770. Short-term resistance is now seen at 1.6760, which ideally will cap the upside for the expected decline to 1.6545

R3: 1.6890

R2: 1.6800

R1: 1.6760

Pivot: 16695

S1: 1.6686

S2: 1.6636

S3: 1.6545

Trading recommendation:

We are short EUR from 1.6790 and we will move our stop lower to 1.6890. Take profit will be placed at 1.6565.

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

Elliott wave analysis of EUR/JPY for November 7, 2017

analytics5a017d61cb582.png

Wave summary:

Resistance at 133.15 should continue to cap the upside for a test of short-term important support near 131.60 and a clear break below here will confirm that wave (D) completed with the test of 134.49 and wave (E) towards 123.43 is developing.

Short-term minor resistance is seen at 132.86.

R3: 133.98

R2: 133.15

R1: 132.86

Pivot: 132.00

S1: 131.60

S2: 131.00

S3: 130.56

Trading recommendation:

We are short EUR from 132.59 with stop placed at 134.55.

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

NZD/USD Intraday technical levels and trading recommendations for November 7, 2017

analytics5a01794c32342.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 as long as bearish persistence below the neckline 0.7150 is maintained.

As expected, the price level of 0.7050 failed to offer enough bullish support for the NZD/USD pair. That's why, further bearish decline should be expected towards 0.6800 (Reversal pattern bearish target).

On the other hand, if the recent low (0.6817) remains defended by the bulls, a bullish pullback and a short-term BUY entry can be expected during this week's consolidations.

The next DEMAND level to meet the pair is located around 0.6710 that maybe visited if enough bearish pressure is applied below 0.6800.

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

Intraday technical levels and trading recommendations for EUR/USD for November 7, 2017

analytics5a01794601abd.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).

analytics5a01795992c14.png

Daily Outlook

In January 2017, the previous downtrend was reversed when the Inverted 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 was expressed towards the price level of 1.2100 where the depicted Head and Shoulders reversal pattern was expressed.

If the recent bearish breakout persists below 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).

Bearish target for the depicted Head and Shoulders pattern extends towards 1.1350. However, to pursue towards the mentioned target level, significant bearish pressure is needed to be applied against the mentioned zone (1.1415-1.1520).

Trade Recommendations

Price action should be watched around the price zone of 1.1415-1.1520 for evident bullish recovery and a possible short-term BUY entry.

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

Bitcoin analysis for 07/11/2017

One of the longest working members of the Bitcoin community, co-owner of Bitcoin.org and Bitcointalk, said that if 2x get enough support, opponents should gather to play the "broken" Bitcoin chain. He said: " If 2x wins, it does not mean that Bitcoin has been "changed", it means the Bitcoin was temporarily destroyed and we need to get to work to play it together. We will not give up and we will not compromise. The new hard fork will be released with the new PoW algorithm and will work normally. Markets and exchanges should be prepared to handle three different Bitcoin chains in November. Original chain, 2x chain and new Bitcoin chain with better PoW rating. As soon as new PoW hard binary files are released on Bitcoin.org, I am fully committed to supporting this chain and calling it "Bitcoin", even if the hash rate returns to the original chain at a later date".

Many companies and private entities are still trying to determine zero or full support for SegWit2x and this is currently the most discussed topic in the Bitcoin community. The community is divided in opinion whether another fork is needed and how it can improve the Bitcoin usage experience.

Let's now take a look at the Bitcoin technical picture at the H4 time frame. The price has made a three wave decline towards the level of $6,986 which might be labeled as the wave (iv) correction. This means there is still wave (v) left to be made in order to complete the bullish impulsive cycle. The projected target remains at the level of $8,356.

analytics5a0178a5e6638.jpg

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

Fundamental Analysis of GBP/USD for November 7, 2017

GBP/USD has been trading with a bearish bias in a volatile manner after the Bank of England raised interest rates last week. The bearish pressure was bit of a surprise for the market as GBP was expected to receive a boost from the increase of Official Bank Rate to 0.50% from the previous value of 0.25%. The MPC votes were also bullish for the currency but still GBP failed to gain the bullish momentum against USD last week. Today, The UK BRC Retail Sales Monitor report was published with a negative value of -1.0% which previously was positive at 1.9% and Halifax HPI report was also published with a decreased value of 0.3% from the previous value of 0.8% but slight better than expectation of 0.2%. The worse results of the economic reports added to the bearish pressure for GBP and signaled a further bearish trajectory. On the USD side, today IBD/TIPP Economic Optimism report is going to be published which is expected to increase to 51.2 from the previous figure of 50.3, JOLTS Job Opening report is expected to show a decrease to 5.98M from the previous figure of 6.08M, Consumer Credit report is expected to show significant growth to 18.4B from the previous figure of 13.1B. Besides, FOMC Member Quarles and Fed Chair Yellen are going to speak today about the nation's key interest rates and monetary policy. Both of them are expected to be hawkish. To sum up, USD is currently looking forward for the Rate Hike in December whereas weakness of GBP signals that USD is likely to gain further momentum in the future taking the price much lower.

Now let us look at the technical chart. The price is currently residing inside the resistance area of 1.3140-1.3270 area and below the dynamic level of 20 EMA which indicates that the price bears are still in control and further bearish pressure towards 1.2800 support area is expected in the coming days. As the price remains below 1.3270 resistance area with a daily close, the bearish pressure is set to continue further.

analytics5a0176f8a51a0.jpg

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

Trading plan for 07/11/2017

After quite an exciting Monday trading, the overnight Asian session passed in a quiet atmosphere. AUD found support for the RBA message and NZD did not suffer any revision of the RBNZ mandate. The work on tax law in the US is slow (but forward). Crude oil remains strong on hopes of OPEC and turmoil in Saudi Arabia. The stock market in Asia is pulling up improving the 10-year highs. Nikkei is up 1.7%, Hang Seng gains 1.3%.

On Tuesday 7th of November, the event calendar is light in important data releases, but the market participants will keep an eye on Halifax House Price Index data from the UK and JOLTs Job Openings data from the US. There are some speeches scheduled as well and they will start from ECB President Mario Draghi, then FOMC Member Randal K. Quarles will give a speech, then BOC Governor Stephen Poloz will speak and the last one will be the speech of Federal Reserve Chairperson Janet Yellen.

GBP/USD analysis for 07/11/2017:

The Halifax House Price Index data are scheduled for release at 08:30 am GMT and the market participants expect a drop in prices from 0.8% to 0.2% on monthly basis, but an overall increase from 4.0% to 4.5% on a quarterly basis. A resumptive index of house prices reflecting prices for new constructions and resale real estate markets. As all indices connected with the construction industry, it can be seasonally adjusted. The Halifax House Price Index is the UK's longest running monthly house price series with data covering the whole country going back to January 1983. According to the Global Real Estate Bubble Index releases at the end of September, London is the sixth and London property market is still firmly in "bubble-risk" territory. Still - it's not as bad as other European cities: Stockholm and Munich were both seen as more "bubbly" than London.

Let's now take a look at the GBP/USD technical picture at the H4 time frame. The market still cannot decide which way to go and remains in the relatively narrow horizontal zone between the levels of 1.3030 - 1.3230. As long as the market trades below the golden trend line, the outlook remains bearish.

analytics5a0175721a35e.jpg

Market Snapshot: EUR/GBP reversed almost all recent gains

The price of EUR/GBP had bounced impulsively from the support at the level of 0.8732 and was capped at the level of 0.8938 after a failure to make a higher high. Since then, the price has deteriorated towards the level of 0.8783 after the market conditions went overbought. Currently, the downtrend might continue and can even accelerate if the technical support at the level of 0.8732 is violated.

analytics5a01757be2442.jpg

Market Snapshot: USD/JPY about to collapse?

The price of USD/JPY has made a new local higher high at the level of 114.72, but since then is having a hard time to rally higher. The momentum is falling and the indicator has developed a clear bearish divergence. Any violation of the level of 112.94 will accelerate the losses towards the level of 112.27.

analytics5a01758708bc0.jpg

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

Fundamental Analysis of USD/JPY for November 7, 2017

USD/JPY has been trading in a volatile and corrective manner towards the resistance area of 114.25-50 from where the price is currently expected to show some bearish move. JPY has been quite impulsive with the recent gains which has led to a strong bullish rejection. Today Japan's Average Cash Earnings report was published with an increased value of 0.9% from the previous value of 0.7% which was expected to decrease to 0.6%. The positive economic report from Japan did not quite help the currency to keep the momentum but any weakness in the upcoming US economic report may lead to further bearish pressure in this pair. On the USD side, today IBD/TIPP Economic Optimism report is going to be published which is expected to increase to 51.2 from the previous figure of 50.3, JOLTS Job Opening report is expected to post a decrease to 5.98M from the previous figure of 6.08M, Consumer Credit report is expected to show significant growth to 18.4B from the previous figure of 13.1B. Besides, FOMC Member Quarles is going to speak today on interest rate plans and future monetary policy. His speech is expected to be hawkish for the currency as he has been in favor of stepping back from some banking regulations. If he holds to his point, USD is expected to gain momentum. Along with these economic reports and events, Fed Chair Janet Yellen is going to speak today about interest rates and monetary policy. She is likely to disclose her retirement on February 2018 from the pffice. As for the current scenario, USD is expected to gain momentum against JPY if the economic reports and events come positive today. Otherwise, we might see further JPY pressure in the pair if the upcoming economic reports this week may help the currency to push the price lower. The market situation is currently quite uncertain ahead of the upcoming Fed Rate Hike in December.

Now let us look at the technical chart. The price is currently residing below the 114.25-50 resistance area whereas the recent bearish move with strong bullish rejection indicates that JPY is currently trying to push the price lower. We can also see a Bearish Continuing Divergence developing throughout the volatile bullish gain which indeed indicates the lack of a bullish volume in the market and upcoming bearish pressure in the pair. As the price remains below 114.25-50 resistance area, the bearish bias is expected to continue with a target towards 111.60 support area.

analytics5a01729a2c121.jpg

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

Ichimoku indicator analysis of USDX for November 7, 2017

The Dollar index has broken out of the bullish channel but price remains above the Ichimoku cloud and has not broken below any previous low or important support. Price is mainly moving sideways.

analytics5a0165f0eeaaf.png

Blue lines - bullish channel

The Dollar index is above the 4-hour Kumo (cloud) support. Price has broken out of the bullish channel but no support level is broken. Trend remains bullish as long as price is above 94.10. Resistance is at 95.10. First support is at 94.40 and next and very important at 94.10.

analytics5a0166b598ea1.png

On a weekly basis, the Dollar index remains below the kijun-sen and the 38% Fibonacci retracement resistance. A rejection at current levels could push price lower towards the tenkan-sen at first at the 93.30 level. The Dollar index is in a corrective bounce phase. Once this is done, I expect the downtrend to resume towards 88.The material has been provided by InstaForex Company - www.instaforex.com

Last minute burning forecast 07.11.2017

Last minute burning forecast 07.11.2017

EURUSD: We earn on the break of the range.

Strong data on employment in the US, released on Friday, could not force the euro to continue its decline against the dollar. At the same time, the euro is around the bottom of the local range, which provides a chance to accelerate the decline.

On the other hand, overcoming the zone of 1.1650 - 1.1690 - provides a chance of a new wave of rate growth in the EURUSD pair.

We can make money by breaking through the limits of the range at 1.1574-1.1690.

Place orders for a breakthrough:

buy stop 1.1690

sell stop 1.1574

Immediately fix the stop-loss orders at a rate of 45 points and take-profit 100 points (points are written in 4 characters - example - from 1.1690 to 1.1790 - 100 points).

analytics5a015c49af710.jpg

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

Ichimoku indicator analysis of gold for November 7, 2017

Gold price has broken above the 4-hour Kumo (cloud). This is an initial bullish sign but we will need to see confirmation of this strength by breaking previous highs.

analytics5a01642a440b2.png

Red line - price support

Black line - RSI support

As we mentioned yesterday, the RSI was on top of support and we expected price to bounce as long as the support was not breaking. And this is exactly what happened. Support is at $1,266 and resistance at $1,290. Price has moved above the cloud but needs to stay there and start making higher highs and higher lows.

analytics5a0164ab47969.png

On a daily basis, Gold price has closed above the tenkan-sen (red line indicator) but below the kijun-sen (yellow line indicator) where it got rejected once again. A daily close above the kijun-sen will be a bullish sign and will push Gold price towards the Kumo at $1,295-$1,300. I remain longer-term bullish.The material has been provided by InstaForex Company - www.instaforex.com

Bank of England to pound: I dropped you, I'll raise you

The softness of the Bank of England has deprived the British pound of solid ground. Despite the first increase in the REPO rate over the last 10 years, the sterling has been marked by the worst daily dynamics since the referendum on the membership of the United Kingdom in the EU. The blame for all the decline can be attributed to the November meeting minutes of the MPC where it said that the tightening of the BoE's monetary policy can be faster than waiting for the futures market. If the Central Bank is satisfied with its testimony, the next increase in the REPO rate by 25 basis points will occur in November 2018.

For a long time, the hints of BoE representatives kept the sterling afloat. It initially seemed that the regulator is not going to give up the old practice. Unlike their colleagues from the ECB or the Bank of Japan, the BoE is pursuing the exact opposite goals. If Frankfurt and Tokyo are concerned about the inability of inflation to reach the target of 2%, then in the United Kingdom consumer prices not only exceeded it, but also climbed to the upper boundary of the predicted BoE range. The further growth of the indicator will undermine the already shaky confidence in the Central Bank so the strong pound is a kind of solution for a lot of their troubles. It leads to a reduction in the cost of imports and a reduction in the cost of production. In other words, it fulfills the role of a safety cushion in the process of CPI growth.

In this respect, the "hawkish" speech of Deputy Governor Ben Broadbent looks like a proof of the theory above. The MPC representative noted that the Bank of England is likely to have at least twice more to raise the REPO rate since the risks of overclocking inflation outweigh the danger of the economy slipping into a recession. However, Broadbent believes that GDP growth in the coming years will remain sluggish due to the fact that productivity is unlikely to recover to pre-crisis levels while employment growth will not be as fast as in recent years.

Thus, the fate of the pound depends on macroeconomic statistics and political risks. If the indicators signal an improvement in the health of the economy of the United Kingdom, the expectations of the futures market on the monetary restriction of BoE will begin to shift for the first half of 2018. This will support the bulls of the GBP / USD and vice versa. What's important will be the progress of the negotiations on Brexit. The next round of talks is scheduled for November 9. The first factor could be tested after the release of important statistics on business activity in Britain and the US labor market. While the US dollar was actively advancing on the G10 currencies, the sterling remained stable against the backdrop of growth in Britain's purchasing managers index for the services sector to the highest mark in the last six months. The dynamics of PMI gives us hope that GDP growth in the 4th quarter will be better than in the previous three.

Dynamics of business activity in Britain

analytics5a0063291dddf.png

Source: Trading Economics.

Technically, a breakthrough in the lower limit of the upward long-term trading channel will increase the risk of GBP / USD falling to 1.28 and 1.26. On the contrary, the return of sterling to the range of $ 1.31-1.332 will contribute to the development of consolidation.

GBP / USD, daily chart

analytics5a00633580217.png

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

Trading Plan for EUR/USD and US Dollar Index for November 07, 2017

analytics5a014cc2e408e.jpg

Technical outlook:

EUR/USD daily chart setup has been presented here with the most probable and alternate wave counts to help keep the bigger picture in mind. According to the most probable wave count, EURUSD has produced waves 1,2 and 3 of the same degree and wave 4 are just underway. It is expected to terminate around the 1.1500 levels before the rally resumes for the 5th wave, which could easily push through 1.2100 levels or even higher. As an alternate count though, the EURUSD pair might have already completed 5 waves impulse wave from 1.0300/40 levels earlier. In that case, a wave A could be in the making towards 1.1500 or 1.1400 levels, within the 3 wave A-B-C drop, which could extend all the way towards 1.1000 levels, pretty close to trend line support as shown here.

Trading plan:

Aggressive: Remain short with risk through 1.1700 levels, targeting 1.1500 at least.

Conservative: Remain flat for now and look to go long around 1.1500 levels.

US Dollar Index chart setups:

analytics5a014fb82d999.jpg

Technical outlook:

US Dollar Index daily chart view has been presented here with probable and alternate scenarios being labeled, clearly bringing the larger picture into view. A high probable wave count suggests that the US Dollar Index has completed waves 1,2 and 3 of the same degree between 103.80 and 91.00 levels respectively. Wave 4 of the same degree is underway, and it is expected to terminate around 95.30/50 levels. We should then expect one more low or at least a test of 91.00 levels before the index produces a meaningful pullback rally. The alternate count presents a scenario where the index might have already completed 5 waves lower to produce an impulse and that it is producing corrective waves A-B-C higher towards 98.00/99.00 levels respectively. In either case, a push towards 95.30 seems to be on cards.

Trading plan:

Please remain flat for now and look to sell around 95.30/50 levels.

Fundamental outlook:

Please watch out for Mr. Draghi's speech in Frankfurt today around 04:00 AM EST

Good luck!

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

Technical analysis of EUR/USD for Nov 07, 2017

EURUSD.jpg

When the European market opens, some Economic Data will be released, such as ECOFIN Meetings, Retail Sales m/m, Retail PMI, Italian Retail Sales m/m, French Gov Budget Balance, and German Industrial Production m/m. The US will release the Economic Data, too, such as Consumer Credit m/m, JOLTS Job Openings, IBD/TIPP Economic Optimism, and Mortgage Delinquencies, so, amid the reports, EUR/USD will move in a low to medium volatility during this day.

TODAY'S TECHNICAL LEVEL:

Breakout BUY Level: 1.1669.

Strong Resistance:1.1662.

Original Resistance: 1.1651.

Inner Sell Area: 1.1640.

Target Inner Area: 1.1612.

Inner Buy Area: 1.1584.

Original Support: 1.1573.

Strong Support: 1.1562.

Breakout SELL Level: 1.1555.

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

Technical analysis of USD/JPY for Nov 07, 2017

USDJPY.jpg

In Asia, Japan will release the Average Cash Earnings y/y data, and the US will release some Economic Data, such as Consumer Credit m/m, JOLTS Job Openings, IBD/TIPP Economic Optimism, and Mortgage Delinquencies. So, there is a probability the USD/JPY will move with low to medium volatility during this day.

TODAY'S TECHNICAL LEVEL:

Resistance. 3: 114.47.

Resistance. 2: 114.25.

Resistance. 1: 114.02.

Support. 1: 113.75.

Support. 2: 113.53.

Support. 3: 113.30.

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 major support broken, time to start selling

The price has broken major support and is on route to our profit target. We now look to sell on strength below major resistance at 132.30 (Fibonacci retracement, horizontal overlap support) for a strong push down to at least 131.52 support (Fibonacci extension, horizontal swing low support).

RSI (34) sees immediate support at 41% and only as the break of this level would confirm further downside movement.

Sell below 132.30. Stop loss is at 132.76. Take profit is at 131.52.

analytics5a010c6cb315d.png

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

NZD/USD profit target reached perfectly, prepare to sell

The price has continued to rise perfectly to our profit target. We now prepare to sell below major resistance at 0.6968 (Fibonacci retracement, Fibonacci extension, bearish divergence) and we expect to see a strong reaction from this level to push the price down to at least 0.6827 support (Fibonacci extension, horizontal swing low support).

Stochastic (55,3,1) is seeing strong resistance below 96% and also sees bearish divergence vs price signaling that a reversal is impending.

Sell below 0.6968. Stop loss is at 0.7043. Take profit is at 0.6827.

analytics5a010c29e57c1.png

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

Daily analysis of USDX for November 07, 2017

The index stays alive in the bullish bias held since last week above the 200 SMA at H1 chart. The nearest resistance is placed at the 95.14 level, where a break should expose the 95.85 level across the board. Currently, price action doesn't suggest further weakness in USDX, but a decline to test the 200 SMA is a possibility in coming hours.

USDXH1.png

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.

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

Daily analysis of GBP/USD for November 06, 2017

The pair has started the week with a consolidation above the support zone of 1.3037, at which could gather momentum in order to extend the recovery towards the 200 SMA at H1 chart. However, we're expecting that support zone of 1.3037 gives up to allow a leg lower to test the 1.2880 level. MACD indicator is entering the overbought territory.

GBPUSDH1.png

H1 chart's resistance levels: 1.3201 / 1.3309

H1 chart's support levels: 1.3037 / 1.2880

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 1.2880 and stop loss is at 1.3193.

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

Analysis of Bitcoin for November 6, 2017

The Bitcoin has been quite corrective and bearish after breaking above the $7,000 price level. The gain after the break above the $7,000 level was quite corrective and volatile which was quite as expected as the price has moved impulsively in a non-volatile manner recently which lead to certain retracement. As of the recent opening of cryptocurrency trading platform in China, the Bitcoin has gained good momentum which is expected to extend further in the future. The market sentiment is still quite in favor of the Bitcoin bullish momentum and as the price remains above $7,000 price level the non-volatile bullish structure is expected to continue further. Any deeper pullback towards $6,500 or $6,000 will not be a fact of worry as the bullish trend is expected to be intact until price remains above $6,000 support area. As the bullish bias continues the price is expected to reach $8,000 price level soon.

analytics5a007f3337cc8.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

Fundamental Analysis of EUR/USD for November 6, 2017

EUR/USD has been quite bearish in nature after the break and retest off the 1.1660. USD has been quite positive with the economic reports recently which helped the currency to gain some momentum against EUR. Recently US Non-Farm Payroll report was published with better than previous figure of 261k from the previous figure of 18k though it was not quite good as expected at 312k and Unemployment Rate report was published with better than expected value at 4.1% which was expected to be unchanged at 4.2%. Today FOMC Member Dudley is going to speak about the nation's key interest rates which is expected to be hiked in December. He will also expand on the future monetary policy. On the other hand, today German Factory Orders report was published with a decreased figure at 1.0% from the previous value of 4.1% which was better than expected value of -1.0%. The Spanish Services PMI report was published with worse figure at 54.6 from the previous figure of 56.7 which was expected to be at 55.7. Besides, the Italian Services PMI report was published with decreased figure of 52.1 from the previous figure of 53.2 which was expected to be at 53.1, while the French Final Services PMI was published with a slight decrease figure at 57.3 which was expected to be unchanged at 57.4. The German Final Services PMI report was published 54.7 which was expected to be unchanged at 55.2. The Final Services PMI report was published with a slight increase to 55.0 which was expected to be unchanged at 54.9. The Sentix Investor Confidence report was published with significant increase to 34.0 from the previous figure of 29.7 which was expected to be at 31.2 and PPI report was also published with an increase to 0.6% from the previous value of 0.3% which was expected to be at 0.4%. Along with these mixed economic reports today the Eurogroup Meeting is already in process which is expected to have neutral result for the currency. As of the current scenario, USD is expected to gain momentum further against EUR as of the mixed economic reports and neutral view of the upcoming policies of the Eurozone.

Now let us look at the technical view. The price is currently residing below the resistance level of 1.1660 whereas the dynamic level of 20 EMA is also showing downward slope indicating further downward move in the coming days. After the positive Employment and NFP report on Friday, USD has been quite strong with the momentum which engulfed the recent price action. As the price remains below 1.1660 with a daily close the bearish momentum is expected to continue further with target towards 1.13 support level.

analytics5a007a1ab3cd1.jpg

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