Technical analysis of USD/CHF for November 28, 2017

USDCHFM30.png

USD/CHF is expected to trade with a bullish outlook. The pair managed to break above its intraday falling trend line, and is now heading upward. The relative strength index is displaying strong bullish momentum. Both the 20-period and 50-period moving averages are turning up, and should call for further advance.

In which case, as long as the key support at 0.9795 holds on the downside, look for further advance to 0.9870 and 0.990 in extension.

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

Strategy: BUY, Stop Loss: 0.9795, Take Profit: 0.9870

Resistance levels: 0.9870, 0.9900, and 0.9900

Support levels: 0.9775, 0.9755, and 0.9700

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

Technical analysis of GBP/JPY for November 28, 2017

GBPJPYM30.png

Our first target which we predicted in yesterday's analysis has been hit. The pair is still under pressure. The pair has validated a bearish reversal after the recent downside breakout of its key level at 148.50. The falling 20-period and 50-period moving averages act as strong resistance roles, and should continue to push the prices lower. Last but not least, the relative strength index is bearish below its neutrality area at 50.

To sum up, as long as 148.50 holds on the upside, look for further decline to 147.25 and 146.85 in extension.

Alternatively, if the price moves in the direction opposite to the forecast, a long position is recommended above 148.50 with the target at 149.00.

Strategy: SELL, Stop Loss: 148.50, Take Profit: 147.25

Chart Explanation: the black line shows the pivot point. The price above the pivot point indicates long positions; and when it is below the pivot points, it indicates short positions. The red lines show the support levels and the green line indicates the resistance levels. These levels can be used to enter and exit trades.

Resistance levels: 149, 149.45, and 150.00

Support levels: 147.25, 146.85, and 146

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

Technical analysis of NZD/USD for November 28, 2017

NZDUSDM30.png

NZD/USD is expected to extend the upside movement. The pair broke above its declining trend line yesterday, and resumed its bullish trend. The relative strength index is also turning up, and is above its neutrality area at 50. Last but not least, the 20-period and 50-period moving averages are heading upward, which should confirm a positive outlook.

Therefore, as long as 0.6890 is not broken, likely advance to 0.6955 and 0.6975 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, 0.6975, and 0.7005

Support levels: 0.6870, 0.6805, and 0.6770

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

BITCOIN Analysis for November 28, 2017

Bitcoin has been non-volatile with the recent bullish trend after bouncing off the $8,000 price area and is currently residing above $9,800. The Bitcoin has been quite responsive with the dynamic levels of 20 EMA, Tenkan and Kijun line which acted as dynamic support to push the price higher after every retracement towards it. Recently, Bitcoin Mutual Fund was launched in Europe that helped the Cryptocurrency to gain good momentum and pushed higher with a target towards $10,000 price area. The target price of $10,000 is expected to inject a good amount of volatility in the market and may push the price down if the price is rejected off. As of the current scenario, Bitcoin is expected to reach $10,000 impulsively as the price remains above the dynamic levels of 20 EMA, Tenkan and Kijun line. As the price remains above $9,000 price area the bullish bias is expected to continue further.

analytics5a1d644800c37.jpg

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

Fundamental Analysis of GBP/USD for November 28, 2017

GBP/USD has been residing inside the price range between 1.3020 and 1.3340 for a good amount time by now whereas the price is currently showing some bullish rejection off the 1.3340 resistance area with some bearish pressure. GBP has been under pressure due to the political issues and the Brexit effect still remains in the country whereas recent US economic reports and events were also quite dovish which have led the price to be indecisive and corrective. Today, the Bank of England's Financial Stability Report was published along with FPC Statement and Bank Stress Test results which were dovish in nature forcing the British currency to lose some grounds against a weaker competitor like USD. On the other hand, FED Chair nominee Powell is going to speak today. He voiced some concern about the Rate Hike effecting the economy in the future. Moreover, FOMC officials Dudley and Harker are also going to speak today. They are expected to express some concern about stubbornly low inflation. On this condition, increasing the funds rate can be bit of a challenge for the economy. Additionally, US CB Consumer Confidence report is due later today with a decrease to 123.9 from the previous figure of 125.9, Goods Trade Balance report is expected to show a greater deficit at -65.0B from the previous figure of -64.1B, Prelim Wholesale Inventories report is expected to increase to 0.5% from the previous value of 0.3%, HPI report is expected to show decrease to 0.6% from the previous value of 0.7%, and S&P/CS Composite-20 HPI report is expected to increase to 6.0% from the previous value of 5.9%. As for the current scenario, FOMC members are worried about the upcoming rate hike which have already affected growth of USD against GBP recently. However, any positive outcome from today's high impact economic reports are expected to push the price lower in the coming days. As rate hike in December is quite imminent despite the outcome after the rate hike in low inflation-based economy, USD is expected to gain ground further against GBP in the future.

Now let us look at the technical chart. The price is currently being rejected off the 1.3340 resistance area with bearish pressure indicating a further bearish move with a target towards 1.3020 support area. The price is still likely to trade in range and go down towards the support area with a corrective price action. As the price remains below 1.3340 resistance area, the bearish bias is expected to continue further.

analytics5a1d60f4675e0.jpg

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

Global macro overview for 28/11/2017

Today, the tag of the day's event was pinned to Jerome Powell's hearing before the Senate Banking Committee of the US Congress. The new Fed Chairperson nominee will present his vision for the post, although he already announced text of his opening statement points to the defense of the status quo. Powell stresses the need to stabilize the labor market and bring inflation to the target. This implies a gradual increase in interest rates (hawkish) and a reduction in the balance sheet total( even more hawkish), but with a precarious future flexibility is mandated. This suggests that the transitional period after the change in the Fed should be mild. On the other hand, nothing is said about the shape of politics in the long run. For the market, the number of increases in 2018 and 2019 remains open regardless of what the FOMC forecasts say. The market will be interested in Powell questions, which may reveal more about how far he wants to drive interest rates.

Let's now take a look at the US Dollar Index technical picture at the H4 time frame. The market has bounced from the technical support at the level of 92.54 and currently is testing the nearest resistance at the level of 93.06. The oversold trading conditions and a clear bullish divergence support the temporary corrective pull-back scenario. In a case of a further breakout higher, the next resistance is seen at the level of 93.39.

analytics5a1d6000d39cc.jpg

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

Global macro overview for 28/11/2017

In Germany, the Chancellor Merkel's breakdown attempt to form a coalition with the Free Democrats party (FDP) and the Greens resulted in unusual political instability in the country. At the time of writing, the main opposition Social Democrats (SPD) is considering re-forming a 'grand coalition' with Mrs. Merkel's CDU/CSU, a move which had previously been ruled out. SPD leader Martin Schulz said that many rounds of talks will take place in the coming weeks and party members will vote on any final deal. The outcome of the talks remains uncertain.

Meanwhile, consumer and business confidence continued to rise in the Eurozone, reaffirming expectations that the economy is continuing to expand at a robust pace. Domestic inflationary pressures, however, remain subdued. A big surprise in the Eurozone October CPI figures was the fall in the 'core' measure, which excludes food and energy, to 0.9% from 1.1%, with services inflation falling to 1.2% from 1.5%. The November 'flash' CPI that is scheduled for release on Thursday will be closely watched to see whether last month's weakness was temporary. As usual, the Eurozone figures will be preceded by releases in Germany, Spain and France.

Let's now take a look at the EUR/JPY technical picture at the H4 time frame. The market did not manage to make a new local high above the dashed black trend line as the high was established at the level of 133.24. Currently, the price is trading in the middle of the range, testing the technical resistance at the level of 132.47. The key technical support zone is between the levels of 131.15 - 131.47.

analytics5a1d5de41af84.jpg

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

Bitcoin analysis for November 28, 2017

analytics5a1d5c8e95d9b.png

Bitcoin (BTC) has been trading upwards. The price tested the level of $9.900. The Nigerian Deposit Insurance Corporation (NDIC) has warned Nigerians that they will not be afforded consumer protections when trading virtual currencies. NDIC representatives also reaffirmed that the Nigeria's monetary regulators are unable to exert influence over the cryptocurrency markets. Technical picutre looks bullish.

Trading recommendations:

According to the 30M time frame, I found broken pivot reistance 1 ($9.828), which is a sign that buyers are in control. I also found a rising trendline and successful rejection, which is another sign of strength. My advice is to watch for potential buying opportunities. The intraday upward target is set at the price of $10 035.

Support/Resistance

$9.503 – Intraday pivot

$9.828 – Pivot resistance 1

$10 035 – Pivot resistance 2

$10 360 – Pivot resistance 3

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

Trading Plan for EURUSD and US Dollar Index for November 28, 2017

analytics5a1d55a916ab0.jpg

Technical outlook:

The EURUSD pair reversed just about from the desired resistance around 1.1950/70 levels discussed yesterday. We are getting more confidence in the continuation of bearish price action looking at the 4H and Daily charts now. Today, an evening star candlestick pattern could be in the making on the daily charts and a drop below 1.1840/50 levels would be encouraging to hold shorts further. As the wave counts suggest, an intermediary downtrend is formed after a potential leading diagonal setup between 1.2090 through 1.1550 levels, followed by a counter-trend rally unfolding into 3 waves a-b-c through 1.1960 levels yesterday. If this count holds to be true, the next high probable trade direction should be on the south side and a break below the counter trend line support would confirm that bears remain in control.

Trading plan:

Please remain short for now, stop above 1.2092, target is below 1.1500

US Dollar Index chart setups:

analytics5a1d57d61c1fa.jpg

Technical outlook:

The US Dollar Index is finally looking to have bottomed out at 92.50 levels yesterday. Please note that the index has bounced right around the Fibonacci 0.618 support as presented here. Moreover, it is also within the vicinity of the previous wave 4 and also past resistance turned support zone. All the above convergence points and the follow through rally yesterday, are indicating strongly for a continued push on the north side for the US Dollar Index. The wave count also suggests that a neat little up Gartley is formed with an impulse rally earlier, followed by a counter-trend drop a-b-c. If this count holds well, we should witness a good rally extending up to 98.00 levels going forward. Strong price support is seen at 91.00 levels, while resistance around 94.20 levels respectively.

Trading plan:

Please remain long now, stop below 91.00 target above 95.00 at least.

Fundamental outlook:

Watch out for USD Advanced Goods Trade Balance around 0830 AM EST.

Good luck!

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

EUR/USD analysis for November 28, 2017

analytics5a1d56d4ec11b.png

Recently, the EUR/USD has been trading downwards. The price tested the level of 1.1874. According to the 30M time - frame, I found rejection from the pivot support 1 at the price of 1.1875, which is a sign that selling looks risky.Also, I found hammer and doji candles together with an oversold condition on a stochastic oscillator, which is a sign of potential strength. My advice is to watch for buying opportunities. The upward targets are set at the price of 1.1917 (pivot level), 1.1940 (pivot resistance 1) and at the price of 1.1983 (pivot resistance 2).

Resistance levels:

R1: 1.1940

R2: 1.1983

R3: 1.2007

Support levels:

S1: 1.1875

S2: 1.1853

S3: 1.1810

Trading recommendations for today: watch for potential buying opportunities.

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

USD/JPY analysis for November 28, 2017

analytics5a1d506f2d814.png

Recently, the USD/JPY has been trading sideways at the price of 111.30. According to the 30M time - frame, I found that price is testing an upward trendline (resistance), which is a sign that buying looks risky.Also, I 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 111.73 (pivot support 1) and at the price of 110.36 (pivot support 2).

Resistance levels:

R1: 111.57

R2: 112.06

R3: 112.42

Support levels:

S1: 110.73

S2: 110.36

S3: 109.87

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 28, 2017

NZDUSDH4.png

Overview:

  • On the four-hour chart, the NZD/USD pair bullish trend from the support levels of 0.6830 and 0.6880. Currently, the price is in a bullish channel. This is confirmed by the RSI indicator signaling that we are still in a bullish trending market. As the price is still above the moving average (100), immediate support is seen at 0.6880, which coincides with a golden ratio (23.6% of Fibonacci). Consequently, the first support is set at the level of 0.6880. So, the market is likely to show signs of a bullish trend around the spot of 0.6880. In other words, buy orders are recommended above the golden ratio (0.6880) with the first target at the level of 0.6993. Furthermore, if the trend is able to breakout through the first resistance level of 0.6993. We should see the pair climbing towards the next resistance (0.7043) to test it. It would also be wise to consider where to place a stop loss; this should be set below the second support of 0.6830.
The material has been provided by InstaForex Company - www.instaforex.com

Fundamental Analysis of USD/JPY for November 28, 2017

USD/JPY has been quite bearish recently after bouncing off the 114.50 resistance area and is currently residing at support area of 110.80 to 111.70. Currently the price is quite indecisive inside the range showing no directional bias. Recently, JPY gained over USD despite a worse economic report of SPPI published with the value at 0.8% which was expected to be unchanged at 0.9%. The gain of JPY amid the weak economic report explains the weakness of USD ahead of the upcoming Rate Hike possibility in December. Recent dovish rhetoric in FOMC minutes shifted the market sentiment against USD that resulted in further weakness against JPY. On the USD side, today FOMC Members Dudley, Harker and FED Chair nominee Powell are going to speak about the upcoming key interest rates changes and monetary policies. Following their remarks, a possibility of the December Rate hike will be discussed. At present, the Fed officials are expected to be hawkish in nature as the December Rate hike was confirmed earlier. Additionally, CB Consumer Confidence report is going to be published which is expected to decrease to 123.9 from the previous figure of 125.9, Richmond Manufacturing Index report is expected to increase to 14 from the previous figure of 12. To sum up, today there are several high impact economic reports and events in the US yet to be published that are likely to provide a hint about upcoming moves in this pair. As the pair is quite indecisive now, any impulsive break above or below the range will lead to a further movement on the preferred direction.

Now let us look at the technical chart. The price is currently residing between the support area range of 110.80 to 111.70. As the pair is trading sideways, the consolidation and indecision is likely to unfold. As of the current situation, if the price breaks above 111.70 with a daily close, then we will consider buy positions with a target towards 114.50. Otherwise, if the price breaks below 110.80 with a daily close, then we consider sell positions with a target towards 108.50 support area.

analytics5a1d42993be59.jpg

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

Fundamental Analysis of EUR/USD for November 28, 2017

EUR/USD has been impulsively bullish recently after bouncing off from 1.1700 price area which led the price to climb higher above 1.1850 resistance area. Currently, the price is showing some bearish pressure in the bullish trend which is expected to push the price lower in the coming days. Due to the dovish rhetoric in the recent FOMC meeting, USD weakened which encouraged EUR to gain momentum despite having a weak status in the market currently. Today, German Import Prices report is going to be published which is expected to decrease to 0.4% from the previous value of 0.9%, M3 Money Supply is expected to be unchanged at 5.1%, Private Loans are expected to have a slight increase to 2.8% from the previous value of 2.7%, and German GfK Consumer Climate report is expected to have a slight increase to 10.8 from the previous figure of 10.7. The forecast of the eurozone's economic reports today is quite mixed whereas any negative result will result in further weakness and gains on the USD side. As for USD, today FOMC officials Dudley, Harker and FED Chair nominee Powell are going to speak about the nation's key interest rates and future monetary policy where December Rate hike possibility will be discussed. Currently, Fed officials are expected to make hawkish remarks as a December Rate hike was quite confirmed earlier. Additionally, CB Consumer Confidence report is going to be published which is expected to decrease to 123.9 from the previous figure of 125.9, Richmond Manufacturing Index report is expected to increase to 14 from the previous figure of 12. As of the current scenario, the economic events in the US are expected to have a benign impact on the market's upcoming directional movement where the expectations are quite positive, but any negative outcome may lead to further weakness of USD against EUR in the coming days.

Now let us look at the technical chart. The price was bearish yesterday having a good amount of bullish rejection along the way. The price is currently residing above 1.1850 price level which is expected to push below 1.1850 area towards the dynamic level of 20 EMA. As the price remains below 1.1960 price area, the bearish bias is expected to continue further.

analytics5a1d425f1bfd8.jpg

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

BITCOIN Analysis of November 27, 2017

Bitcoin very impulsive with the gains breaking above $9,000 and residing above the $9,600 price area. Price has been more impulsive than expected and $10,000 price area can be hit anytime sooner. Bitcoin has been quite volatile recently after the Bitcoin wallet hack but with some correction it has moved quite higher without any certain retracement. As of the current scenario, Bitcoin is expected to show some bearish pressure towards the dynamic levels of 20 EMA, Tenkan and Kijun line. The price is expected to consolidate for a certain period before it gets the impulsive push with target towards $10,000 price level in the coming days. As the price remains $9,000 price area, the bullish bias is expected to continue further.

analytics5a1d422904b7d.jpg

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

Technical analysis of USD/CHF for November 28, 2017

USDCHFH4.png

Overview:

  • Last week, the USD/CHF pair fell from the level of 0.9870 towards 0.9800. Today, the pivot point of the USD/CHF pair is seen at the price of 0.9831. It should be noted that the currently price is seen at the daily pivot. Volatility is very high for that the USD/CHF pair is still moving between 0.9831 and 0.9783 in coming hours. Furthermore, the price has been set below the strong resistance at the levels of 0.9831 and 0.9870, which coincides with the 38.2% and 50% Fibonacci retracement level respectively. Additionally, the price is in a bearish channel now. Amid the previous events, the pair is still in a downtrend. From this point, the USD/CHF pair is continuing in a bearish trend from the new resistance of 0.9831. Thereupon, the price spot of 0.9831 remains a significant resistance zone. Therefore, a possibility that the USD/CHF pair will have downside momentum is rather convincing and the structure of a fall does not look corrective. In order to indicate a bearish opportunity below 0.9831, sell below 0.9831 with the first targets at 0.9783 and 0.9743. However, the stop loss should be set above the level of 0.9910.
The material has been provided by InstaForex Company - www.instaforex.com

NZD/USD Intraday technical levels and trading recommendations for November 28, 2017

analytics5a1d3263ba8cc.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 was expected towards 0.6800 (Reversal pattern bearish target).

If the recent low (0.6817) remains defended by the bulls, a bullish pullback can be expected towards 0.7050 provided that bullish pullback persists above 0.6970 ( Intraday Key-level ).

Otherwise, further bearish decline would be expected towards 0.6680.

Trade recommendations:

If the recent bullish pullback persists towards 0.7050, a valid SELL entry can be offered around there.

S/L should be placed above 0.7100. T/P levels to be placed at 0.6970, 0.6900 and 0.6830.

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

Intraday technical levels and trading recommendations for EUR/USD for November 28, 2017

analytics5a1d32515a083.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).

analytics5a1d325ebe280.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).

However, recent price action around the price zone of 1.1520-1.1415 indicated evident bullish recovery. This hinders further bearish decline as long as the recent low around 1.1550 remains unbroken.

Trade Recommendations

The current price levels around 1.1900-1.1950 should be watched for a possible short-term SELL entry if signs of bearish rejection are maintained.

S/L should be placed above 1.2030. T/P levels to be located at 1.1850, 1.1700 and 1.1590.

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

Bitcoin analysis for 28/11/2017

Many investors believe that the upcoming stock market crash, the solution will be Bitcoin, which is bought by more and more people from all over the world. Analyst Mikhail Maschenko said that the interest of cryptocurrency will hit the global markets, leading to the understanding that this is not the end of the bull market:"The demand for Bitcoin is growing, as the cryptocurrency market is becoming less volatile and more and more professional investors see it as a hedge."

The current bull market is the second-longest in history, according to Fortune magazine, which has so far been up to 104 months. The longest uptrend in history ended in 2000 after an impressive run of 113 months. If he is right, Bitcoin will play a key role here. Bitcoin's denunciation by banks and bankers, and calling it a scam, no longer cause selling, but the contrary. Investors no longer take these words seriously and are eager to join the crypto world. When institutional investors begin to invest large amounts of capital in cryptocurrencies, some of the stunning forecasts made by so-called Bitcoin bulls can be realized. However, Mishchenko's forecasts were quite conservative, suggesting that by the end of 2017 Bitcoin, which reaches $10,000, will be driven mostly by market participants emotions.

Let's now take a look at the Bitcoin technical picture at the H4 time frame. The price projected target at the round level of $10,000 hasn't been hit yet, but the wave progression is still impulsive and so far there is no reason to think the target will not be hit. No sign of any divergence between the price and momentum either.

analytics5a1d1be026fad.jpg

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

Trading plan for 28/11/2017

Except for the NZD rally, the rest of the foreign exchange market almost did not show any sign of life on early Tuesday, which should be considered a nice change after yesterday's fluctuations. The disclosure of the speech of the nominee to the new chairman of the Fed's Powell brought no surprises. The stock market is lightly defensive, nervous about the oil market ahead of the OPEC summit

On Tuesday 28th of November, the event calendar is light in important data releases, but the market participants will keep an eye on Bank Stress Test Results data from the UK, M3 Money Supply data from the Eurozone, Goods Trade Balance, CB Consumer Confidence and Richmond Fed Manufacturing Index data from the US. There are some speeches scheduled from the FOMC Members William Dudley, Jerome Powell, and Patrick T. Harker. Bank of Canada Governor Stephen Poloz will give a speech later as well.

EUR/USD analysis for 28/11/2017:

The calendar does not contain any significant macroeconomic data, the most important event will be the speech of Jerome Powell, the future Chairperson of Fed. The text of the speech is already known, but there is still a question and answer session afterward. The most anticipated data release from the US is CB Consumer Confidence Index data (a monthly survey of about 5,000 US households regarding their opinion of the economy), which is expected to decrease slightly from 125.9 to 123.9 points. Otherwise, the day will be dominated by the end of the month flows on the currency market.

Let's now take a look at the EUR/USD technical picture in the H4 time frame. The market reversed at the level of 1.1960 and currently is trading close to the technical support at the level of 1.1880. This is the key support level for the bulls and if violated, then the next important support is seen at the level of 1.1725. The overbought market conditions and a clear bearish divergence between the price and the momentum oscillator support the downward bias.

analytics5a1d18b504c7d.jpg

Market Snapshot: USD/JPY at the key support

The price of USD/JPY fell below the key support at the level of 111.06 but bounced quickly back towards the level of 111.45. The bounce might get extended as the oversold market conditions and bullish divergence support the temporary recovery bias.

analytics5a1d18c019e29.jpg

Market Snapshot: Gold still in sideways zone

The price of Gold has made a new marginal local high at the level of $1,298 but quickly reversed back towards the black channel zone. The market remains in the consolidation mode since the late October and the key zone to the upside is the area between the levels of $1,298 - $1.305.

analytics5a1d18cc0c39e.jpg

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

Ichimoku indicator analysis of USDX for November 28, 2017

The Dollar index as expected is bouncing and reversing its course off the 61.8% Fibonacci retracement and the 92.50 level which was our target. I believe that we are now in the early stages of the next upward move towards 97. Worst case scenario for bulls would be a shallow bounce towards 94 and a rejection.

analytics5a1d169244c6a.png

Black lines - bearish channel

The Dollar index is in a bearish trend as long as the price is below the 4 hour Kumo and inside the bearish channel. Short-term resistance is at 93.25 and next at 93.85. Support is at 92.75. Since yesterday price is showing reversal signs. A minimum bounce towards 93.80 is expected. However, my primary scenario is a bigger bounce to new highs above 95.

analytics5a1d1707d7c6c.png

The Dollar index is reversing off the 61.8% Fibonacci retracement. I believe a major low is in place and we should expect Dollar strength to push the index above the October highs towards the weekly Kumo (cloud) resistance around 97. However, a rejection at the 94-94.50 area will be a very bearish sign. The longer-term trend remains bearish.The material has been provided by InstaForex Company - www.instaforex.com

Ichimoku indicator analysis of gold for November 28, 2017

Gold price continues to trade inside the upward sloping trading range but in an overlapping price formation. Price reached the upper channel boundaries yesterday and got rejected. Gold will eventually break lower. My short-term target is at $1,250.

analytics5a1d155704bb9.png

Blue lines - bullish channel

Gold price is trading above the 4-hour Kumo (cloud). Trend is bullish but very fragile as the rise is not impulsive. Price got rejected at the upper channel boundary at $1,298.50. Support is at $1,288 and next at $1,283. A close below the 4-hour Kumo (cloud) will be a bearish sign implying that the next leg down towards $1,250 has started.

analytics5a1d15c1c42f5.png

Gold price on a weekly basis is above the weekly Kumo (cloud). Price is expected to go towards the cloud support near $1,250-40 area. Support on a weekly basis is at $1,283. A weekly close below this level will confirm our view for $1,250. Longer-term I remain bullish but I believe a new major low should be expected.The material has been provided by InstaForex Company - www.instaforex.com

Last minute burning forecast 28.11.2017

Last minute burning forecast 28.11.2017

EURUSD: Growth is under pressure. Buying - only with a rollback.

New data on the US economy has been released. Sales of new homes rose above the forecast, to 685,000 per year.

The impulse received by the euro from resolving the political crisis in Germany has worn down.

In addition, an important event will take place on Tuesday - a speech before the US Senate Committee of the future head of the Federal Reserve, Powell. This can significantly strengthen the dollar.

Conclusion: The growth of the EURUSD pair is under pressure: To buy only with a pullback - from 1.1865 or lower.

analytics5a1d071509880.jpg

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

Technical analysis of EUR/USD for Nov 28, 2017

EURUSD.jpg

When the European market opens, some Economic Data will be released such as German GfK Consumer Climate, Private Loans y/y, M3 Money Supply y/y, and German Import Prices m/m. The US will release the Economic Data, too, such as Richmond Manufacturing Index, CB Consumer Confidence, S&P/CS Composite-20 HPI y/y, HPI m/m, Prelim Wholesale Inventories m/m, and Goods Trade Balance, so, amid the reports, EUR/USD will move in a low to medium volatility during this day.

TODAY'S TECHNICAL LEVEL:

Breakout BUY Level: 1.1962.

Strong Resistance:1.1955.

Original Resistance: 1.1944.

Inner Sell Area: 1.1933.

Target Inner Area: 1.1905.

Inner Buy Area: 1.1877.

Original Support: 1.1866.

Strong Support: 1.1855.

Breakout SELL Level: 1.1848.

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 28, 2017

USDJPY.jpg

In Asia, today Japan will not release any Economic Data but the US will release some Economic Data, such as Richmond Manufacturing Index, CB Consumer Confidence, S&P/CS Composite-20 HPI y/y, HPI m/m, Prelim Wholesale Inventories m/m, and Goods Trade Balance. So, there is a probability the USD/JPY will move with a low to medium volatility during this day.

TODAY'S TECHNICAL LEVEL:

Resistance. 3: 111.86.

Resistance. 2: 111.64.

Resistance. 1: 111.42.

Support. 1: 111.15.

Support. 2: 110.93.

Support. 3: 110.71.

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

GBP/USD reacting strongly from our selling area, remain bearish

The price has risen and tested our selling area before reacting off it strongly. We remain bearish looking to sell below major resistance at 1.3340 (Fibonacci retracement, horizontal overlap resistance, bearish divergence) and we expect to see a major drop from here towards 1.3050 support (Fibonacci extension, horizontal swing low support).

Stochastic (55,3,1) also sees major resistance at 96% and there's bearish divergence signaling that a reversal is impending.

Sell below 1.3340. Stop loss is at 1.3467. Take profit is at 1.3050.

analytics5a1cc7faca91c.png

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

AUD/USD dropping nicely from our selling area, remain bearish

The price has made a fake breakout before reversing strongly from our selling area. We remain bearish looking to sell on strength below major resistance at 0.7629 (Fibonacci retracement, horizontal overlap resistance, channel resistance, Fibonacci extension, bearish divergence) and we expect to see a strong drop from this level to push the price down to at least 0.7537 support (Fibonacci extension, horizontal swing low support).

Stochastic (55,3,1) is seeing strong resistance at 96% where we expect a corresponding reaction off. We can also see bearish divergence vs the price signaling that a strong drop is impending.

Sell below 0.7629. Stop loss is at 0.7670. Take profit is at 0.7537.

analytics5a1cc7c66c331.png

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

Daily analysis of major pairs for November 28, 2017

EUR/USD: After testing the resistance line at 1.1950, the EUR/USD retraced back a bit. That retracement could be seen as another opportunity to go long when things are slightly bearish and in the context of an uptrend. The price would still go upwards towards the resistance lines at 1.1950, and most importantly, 1.2000.

1511826941_1.png

USD/CHF: The USD/CHF did not do anything significant on Monday. This week, further downwards movement is possible, especially as long as the EUR/USD experiences buying pressure. Therefore, the support levels at 0.9750 and 0.9700 could be reached.

1511826962_2.png

GBP/USD: There remains a bullish bias on the GBP/USD market. The market can continue going upwards, reaching the distribution territories 1.3350 and 1.3400. The price could also end up trending downwards strongly, especially when volatility breaks out, for the outlook on GBP pairs is bearish for the week and the month.

1511826982_3.png

USD/JPY: The USD/JPY pair is bearish. Price went downwards by 100 pips last week, but it did not do anything noteworthy on November 27. There is a Bearish Confirmation Pattern in the market, and it is possible that the demand level at 111.00 would be tested again. However, a rally is expected before the end of this week.

1511827019_4.png

EUR/JPY: The EUR/JPY cross went south yesterday – which clearly shows that the market has been experiencing a series of upswings and downswings (in the short-term). It would be prudent to stay out of the market until there is a Bullish (or Bearish) Confirmation Pattern in the market, which would be brought about by a directional movement.

1511827041_5.png

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

Daily analysis of USDX for November 28, 2017

The bears are guiding the road in the USDX and it seems we can expect another leg lower to test the support zone of 91.85. The 200 SMA at the H1 chart is still offering a dynamic resistance across the board and if it manages to break below 91.85, then it's likely to see another fall to test the support level mentioned above.

1511808958_USDXH1.png

H1 chart's resistance levels: 93.60 / 93.98

H1 chart's support levels: 92.70 / 91.85

Trading recommendations for today: Based on the H1 chart, place sell (short) orders only if the USD Index breaks with a bearish candlestick; the support level is at 92.70, take profit is at 91.85 and stop loss is at 93.53.

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

Daily analysis of GBP/USD for November 28, 2017

GBP/USD remains alive in a bullish tone held since November 13th session and the 200 SMA at H1 is still guiding the path in the short-term. When the pair makes a breakout above the resistance level of 1.3360, we can expect a rally to test the 1.3440 level, while a pullback should make a re-test of the moving average. MACD indicator is supporting the bullish scenario.

1511808906_GBPUSDH1.png

H1 chart's resistance levels: 1.3360 / 1.3440

H1 chart's support levels: 1.3244 / 1.3143

Trading recommendations for today: Based on the H1 chart, buy (long) orders only if the GBP/USD pair breaks a bullish candlestick; the resistance level is at 1.3360, take profit is at 1.3440 and stop loss is at 1.3280.

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

The yen follows the path of the euro

While the focus of investors on foreign exchange is the policy, the most interesting currency of the week will be the Japanese yen. BoJ's strategy of targeting the yield curve made it more sensitive to the rates of the US debt market, with the increase in uncertainty leading to a decline in the USD/JPY quotes. However, this is by no means the only reason for the success of the "bears" in the analyzed pair.

One of the key drivers of the strengthening of the euro this year were Mario Draghi's hints on the normalization of the monetary policy of the ECB in June. Despite the readiness of the regulator to adhere to monetary expansion, he replaced the word "deflation" with "reflation," which signaled an attack by the bulls on the EUR/USD pair. Something similar occurred in November with the Japanese yen. Large banks have long argued that the BoJ buys fewer assets than it is provided for under the terms of the quantitative easing program. However, by the end of autumn, the central bank's representatives paid attention to it.

For example, Haruhiko Kuroda spent a lot of time talking about the shortcomings of the yield curve that targets policy, and the new member of the Board of Directors, Hitoshi Suzuki, said that monetary policy can be changed in 2018. At the same time, the permanent improvement of the health of the economy of Japan, an increase in GDP forecasts and a strong labor market are factors that make it possible to rely on accelerating inflation and the reduction of the real yield of bonds.

Dynamics of GDP forecasts for Japan

analytics5a1bf9028ae45.png

Source: Financial Times.

Dynamics of Japanese inflation

analytics5a1bf91062843.png

Source: Financial Times.

Thus, the yen enters the path that is trodden by the euro, to which, together with the uncertainty prevailing over financial markets, makes the current peak of the USD/JPY pair quite logical. Despite the growing likelihood of creating a strong coalition in Germany, this issue has not been entirely resolved. According to the results of the Bild survey, 52% of the 1,225 respondents believe that the country will receive a new government, but 39% are certain of the opposite.

At least as much as the uncertainty over the passage of the bill on tax reform through the US Congress. Reuters indicates around 2 to 6 that are dissatisfied with the contents of the document of Republican senators, while the distribution of seats in the Upper Chamber (52 to 48) suggests that each vote will be worth its weight in gold. Donald Trump even intends to give a dinner party, during which he will try to influence the dissidents.

In my opinion, if the fiscal stimulus plan does not pass through the Senate, and Angela Merkel fails to create a coalition, then the USD/JPY pair will continue to move upwards in the direction of 108. In this scenario, one should expect large-scale selling in the US and German stock markets associated with them, a deterioration in the global appetite for risk and the growth in demand for certain assets - "safe haven." On the contrary, the success of both events will increase the risks of returning the quotations of the analyzed pair towards 113.

Technically, the support breakthroughs at 111 and 109.95-110.1 will allow the "bears" to count on the implementation of the target by 88.6% on the "Shark" pattern.

USD/JPY, daily chart

analytics5a1bf91e33cbd.png

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

Daily analysis of GBP/JPY for November 27, 2017

GBPJPYH4.png

Overview

The GBP/JPY pair repeated the sideways trading recently by settling above the key support 147.35, affected by the continuous contradiction between the major indicators until this moment. We remind you that resuming the bullish attack urges gathering new bullish momentum to manage to reach the first target at 150.00 followed by the price movement extending towards 151.50 as expected previously. The above chart shows stochastic's attempt to form the new positive wave, expecting to rally above 50 level to get the required positive momentum to confirm the continuation of the waited positivity. The expected trading range for today is between 147.35 and 150.00

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

Daily analysis of USD/JPY for November 27, 2017

USDJPYH4.png

Overview

The USD/JPY pair begins to decline calmly affected by the negative overlapping signal that comes from the stochastic now, which supports continuation of our bearish trend expectations in the upcoming sessions. We wait for breaking 111.00 to open the way for heading to the next correction level at 110.15 as the next main station. The EMA50 keeps pushing negatively on the price to support the negative expectations, and its continuation conditioned by holding below 111.90 level. The expected trading range for today is between 110.50 support and 111.90 resistance.

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

Daily analysis of Gold for November 27, 2017

GOLDH4.png

Overview

Gold price keeps on trading higher, bouncing off 1,299.20 level. Traders are waiting until this level is breached to confirm the extension of gold gains to reach 1,321.50 on the near-term basis. In general, we will keep our positive expectations for today unless 1,281.17 level is broken and the price is holding below it. Breaking this level will push the price to test 1,263.15 before any new attempt to rise. The expected trading range for today is between 1,280.00 support and 1,305.00 resistance.

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

Daily analysis of Silver for November 27, 2017

SILVERH4.png

Overview

Silver price didn't show any strong move in the recent days. Silver is trading stable near 17.00. Therefore, the bullish scenario will remain valid as it is without any change for today. The scenario depends on the stability above 16.56 level. Let me remind you that breaching 17.43 level is required for opening the way towards 18.30 as the next main station. The expected trading range for today is between 16.95 support and 17.25 resistance.

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