Global macro overview for 14/12/2017

The Bank of England maintained the benchmark rate at 0.5% in line with expectations. The was no opposition vote (9-0), so the decision was made unanimously. The purpose of asset purchase was also maintained at GBP 435 billion. In the Monetary Policy Summary, BoE said, that Brexit remains the main challenge for the economy and the indicators for the fourth quarter are weaker than expected. In the context of interest rates, BoE believes that it is still too early to fully assess the impact of the November rise. A modest tightening is possible over the next few years, and possible hikes will be slow and gradual. The message has a slight dove interpretation, which translates into weakness in the British Pound.

Let's now take a look at the GBP/JPY technical picture at the H4 time frame. After hitting the technical resistance at the level of 151.91, the Pound is losing ground after the BoE interest rate decision. The price dropped to the level of 151.15 in oversold market conditions. The next technical support is seen at the level of 150.44.

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Bitcoin analysis for December 14, 2017

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Bitcoin (BTC) has been trading sideways at the price of $16,450. Following her next-to-last Federal Open Market Committee (FOMC) meeting, outgoing Federal Reserve (Fed) Chairwoman Janet Yellen gave a final scheduled press conference 13 December 2017 in Washington, DC. In a growing sign of its influence, once again bitcoin was introduced as a topic for consideration at the highest levels of finance. No fewer than three times did cryptocurrencies make their way into the discussion: regulatory policy, prospects of a Fed Coin, and bitcoin's threat to financial stability. Technical picture looks neutral.

Trading recommendations:

According to the 1H time – frame, I found a head and shoulders formation in the background, whic isa sign that buying looks risky. I also found a rounding top in the background, which is another sign of weakness. My advice is to watch for potential selling opportunities. The downward targets are set at the price of $15,605 and at the price of $14,300.

Support/Resistance

$17.110 – Resistance 1

$17.520 – Resistance 2

$15.605 – First downward target

$14.300 – Second downward target

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NZD/USD Intraday technical levels and trading recommendations for December 14, 2017

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Daily Outlook

A recent bullish breakout above the downtrend line took place on May 22. Since then, the market has been bullish as depicted on the chart.

This resulted in a quick bullish advance towards next price zones around 0.7150-0.7230 (Key-Zone) and 0.7310-0.7380 which was temporarily breached to the upside.

A 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 which initiated bearish reversal.

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).

Evident signs of bullish recovery was expressed around the recent low (0.6780). That's why, a bullish pullback is expected towards 0.7050.

Moreover, a further bullish advance should be expected towards 0.7150 if enough bullish momentum is expressed above the price level of 0.7050.

Trade Recommendations:

An inverted Head and Shoulders pattern is being established on the chart indicating high probability of bullish reversal.

That's why, the price zone of 0.6800-0.6830 could be considered for a short-term BUY entry.

S/L should be moved to 0.6870 to secure some profits. T/P level remains projected towards 0.7050.

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Intraday technical levels and trading recommendations for EUR/USD for December 14, 2017

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Monthly Outlook

In January 2015, the EUR/USD pair moved below the major demand levels near 1.2050-1.2100 (multiple previous bottoms set in July 2012 and June 2010). Hence, a long-term bearish target was projected toward 0.9450.

In March 2015, EUR/USD bears challenged the monthly demand level around 1.0500, which had been previously reached in August 1997.

In the longer term, the level of 0.9450 remains a projected target if any monthly candlestick achieves bearish closure below the depicted monthly demand level of 1.0500.

However, the EUR/USD pair has been trapped within the depicted consolidation range (1.0500-1.1450) until the current bullish breakout was executed above 1.1450.

The current bullish breakout above 1.1450 allowed a quick bullish advance towards 1.2100 where recent evidence of bearish rejection was expressed (Note the previous Monthly candlestick of September).

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Daily Outlook

In January 2017, the previous downtrend 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, in November, recent price action around the price zone of 1.1520-1.1415 indicated evident bullish recovery. This hindered a further decline which allowed the current bullish pullback to occur towards the price level of 1.1900.

Trade Recommendations

The price levels around 1.1900-1.1950 were suggested for a valid short-term SELL entry. It's already running in profits.

S/L should be lowered to 1.1870 to offset the associated risk. Remaining T/P levels to be located at 1.1700 and 1.1590.

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USD/JPY analysis for December 14, 2017

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Recently, the USD/JPY pair has been trading downwards. The price tested the level of 112.45. Anyway, according to the 30M time – frame, I found a selling climax from yesterday, which is a sign that selling looks risky. Watching the market profile histogram, I found that price is trading away from the point of control (113.33), which also indicates that selling looks risky. My advice is to watch for potential buying opportunities. The upward targets are set at the price of 113.10 and 113.30.

Resistance levels:

R1: 113.25

R2: 113.97

R3: 114.37

Support levels:

S1: 112.13

S2: 111.75

S3: 111.02

Trading recommendations for today: watch for potential buying opportunities.

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EUR/USD analysis for December 14, 2017

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Recently, the EUR/USD pair has been trading upwards. The price tested the level of 1.1843. Anyway, according to the 30M time – frame, I found a fake breakout of yesterday's high at the price of 1.1831, which is a sign that buying looks risky. Watching the market profile histogram, I found that yesterday's point of control is set at the price of 1.1755, which is a good sign for further lower prices. My advice is to watch for potential selling opportunities with the target at the price of 1.1755.

Resistance levels:

R1: 1.1862

R2: 1.1898

R3: 1.1965

Support levels:

S1: 1.1760

S2: 1.1695

S3: 1.1658

Trading recommendations for today: watch for potential selling opportunities.

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Trading Plan for EUR/USD and US Dollar Index for December 14, 2017

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Technical outlook:

The EUR/USD pair pushed higher through 1.1840 levels yesterday right after the FOMC, as it was expected. The pair seems to be trading very close to resistance at 1.1850/60 levels. It has either terminated into wave 2 within wave (3) or is expected to terminate at 1.1860 levels today. Looking at the wave structure, the rally has unfolded into 3 waves and hence corrective until now. It is safe to assume higher probability towards a wave 3 pushing prices lower into 1.1550 levels. Please also note that since the 3rd of 3rd wave should be underway, expect prices to drop very fast from current levels. Aggressive traders who took long positions yesterday should exit and look to sell at these levels. Resistance is strong at 1.1960 levels and EUR/USD should remain bearish until prices remain below that. The pair is beginning to show signs of a much deeper correction.

Trading plan:

Please take profits from long positions yesterday. Sell now and around 1.1850/60 levels, stop above 1.1960 levels, target below 1.1550 at least.

US Dollar Index chart setups:

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Technical outlook:

The US Dollar Index dropped lower almost exactly to 94.30/40 levels as expected and discussed yesterday, right after the FOMC. The wave structure is also indicative of a potential impulse rally ahead and the index seems to be already into its 3rd wave. Please note that a bottom is already formed at 94.30 or should form around 94.20 levels before the underlying rallies through new highs above 95.00 levels. Support is strong around 92.50 levels and the index should remain in control of bulls till prices stay above that. Also notice that the index is finding support right at the past resistance turned support region, not highlighted here though. Aggressive traders who went short yesterday should consider taking profits now and prepare to go long. The index seems to have quite enough room left on the north side.

Trading plan:

Please take profits and exit short positions now. Buy fresh stop below 92.50 and target 95.00 plus.

Fundamental outlook:

Watch out for ECB rate decision around 07:5 AM EST followed by US Retail Sales later today.

Good luck!

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Technical analysis of USD/CHF for December 14, 2017

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Overview:

  • Pivot point : 0.9921.
  • The USD/CHF pair didn't make any significant movements for that the price is still moving around the area of 0.9806 and 0.9921. Besides, it should be noted that the bias remains bullish in the nearest term testing 1.0037 or higher. The USD/CHF pair continues to move upwards from the level of 0.9806. Last week, the pair rose from the level of 0.9806 to the top around the area of 0.9921 (pivot). Today, the first resistance level is seen at 0.9972 followed by 1.0037, while daily support 1 is seen at 0.9886. According to the previous events, the USD/CHF pair is still moving between the levels of 0.9886 and 1.0037; for that, we expect a range of 150 pips. If the USD/CHF pair fails to break through the support level of 0.9886, the market will rise further to 0.9972. This would suggest a bullish market because the RSI indicator is still in a positive area and does not show any trend-reversal signs. The pair is expected to climb higher towards at least 1.0037 with a view to testing the double top. Briefly, the major support is seen at the price of 0.9806. So, it will be very useful to buy above the spot of 0.9806 with the targets of 0.9921 and 1.0037. On the other hand, if a breakout takes place at the support level of 0.9800, then this scenario may become invalidated.
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Technical analysis of NZD/USD for December 14, 2017

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Overview:

  • The NZD/USD pair will continue to rise from the level of 0.6948. The support is found at the level of 0.6948, which represents the 61.8% Fibonacci retracement level in the H1 time frame. The price is likely to form a double bottom. Today, the major support is seen at 0.6948, while immediate resistance is seen at 0.7026. Accordingly, the NZD/USD pair is showing signs of strength following a breakout of a high at 0.6948. So, buy above the level of 0.6948 with the first target at 0.7026 in order to test the daily resistance 1. Also, the level of 0.7026 is a good place to take profit because it will form a double top. Amid the previous events, the pair is still in an uptrend; for that we expect the NZDUSD pair to climb from 0.7026 to 0.7065 today. At the same time, in case a reversal takes place and the NZD/USD pair breaks through the support level of 0.6948, a further decline to 0.6822 can occur, which would indicate a bearish market.
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Global macro overview for 14/12/2017

The Bank of England interest rate decision is scheduled at 12:00 am GMT and market participants expect no change this month (rate should stay at the level of 0.50%). Moreover, the Asset Purchase Facility should remain unchanged as well at the level of 435bln Pound.

The November hike by 25 bp was commented as a dovish hike, which was to give the impression that BoE did not start a monetary tightening cycle. For this reason, the market participants can safely assume that now the interest rate will be left at 0.5%. The market does not discount anything for this meeting and only until the decision in May 2018 the market valuation of the increase approaches 40%. Data from recent weeks were close to expectations, which means, however, that economic growth is at a low level of 0.5%, but CPI at 3.1% y/y and core inflation at 2.7% they are at the most since 2012.

Although the potential risks stand out on the hawkish side, economists think that BoE will not care about shaking the market. A high concentration on the topic of Brexit should also be noticed by the central bank and in such a situation it is justified to maintain a neutral attitude in anticipation of the development of accidents. Also for GBP, politics and the EU summit starting on Thursday (where "sufficient progress" will be announced in Brexit's negotiations) should be more important than the BoE decision.

Let's now take a look at the GBP/USD technical picture at the H4 time frame. The market violated the technical support at the level of 1.3321, but bounced from the channel line support around the level of 1.3300. Despite the weakening of US Dollar across the board, the Pound bulls were not able to make a new local high. The local high was established at the level of 1.3452. The market conditions are neutral as the global investors await the BoE decision.

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Bitcoin analysis for 14/12/2017

Over the past month, Bitcoin's price has seen phenomenal increases, which was crowned by the Chicago Board Options Exchange (CBOE), which began trading Bitcoin futures on December 10th. At the same time, the price of gold fell. However, according to Jeffrey Currie, Head of Research for Goldman Sachs, the huge increase in Bitcoin prices did not have a major impact on the demand for gold. His comments in a recent Financial Times interview run counter to the analysis carried out last week by other financial experts.

In an interview, Currie added that these two assets have different investor pools. He also stated that Bitcoin's lack of regulation makes it difficult for traditional investors to enter the market. He claimed that Bitcoin and gold had a different characteristic, and their recent price movements result from the growing demand for assets. In addition, Currie added:"In our opinion, Bitcoin attracts more speculators than gold." An additional claim by Currie is that there is no clear evidence of mass deviation from gold. In confirmation of his words, he drew attention to the fact that the current portfolio of ETF funds is at the highest level for over four years. Currie also stated that while the lack of liquidity and the high volatility of Bitcoin may be beneficial to traders, the same features deter investors who prefer the benefits of gold diversification and security.

In addition to Currie, general manager of Goldman Sachs, Lloyd Blankfein, also recently commented on Bitcoin. At the beginning of November, he announced that although his bank still does not have Bitcoin-related products, he is still very interested in this leading cryptocurrency.

Let's now take a look at the Bitcoin technical picture at the H4 time frame. After establishing the local top at the level of $17,390, the market entered a corrective cycle and broke below the local support at the level of $15,952. The bulls have managed to close the H4 candle above the mentioned level, but the damage was done as the local low was now set at the level of $15,450. The next target for correction is the support at the level of $14,066.

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Trading plan for 14/12/2017

The details of the Fed's hike were interpreted as dovish and the investors' reluctance towards the US Dollar was dragged to the Asian part of the session. AUD is rallying after another strong report from the labor market. NZD is losing. The stock market is calm with small drops. Nikkei225 lost 0.3% and Hang Seng fell 0.4%. Gold benefited from USD weakness and increased to 1257 USD and Crude oil is stable at 56.7 USD.

On Thursday 14th of December, the event calendar is very busy with important economic released. The main event of the day is ECB interest rate decision and press conference and Bank of England interest rate decision, deposit facility rate decision and press conference. Moreover, the Swiss National Bank will make interest rate decision as well. Other important data are Unemployment rate from Australia, Industrial Production from China, Consumer Price Index from France, Flash Manufacturing, Services and Composite PMI from Germany and Eurozone, Retail Sales from the UK and Retail Sales from the US.

EUR/USD analysis for 14/12/2017:

The Fed raised interest rates by 25 bps, in line with expectations. There were two votes against (Kashkari, Evans), but none of them will have the right to vote in 2018. GDP growth forecasts have been slightly increased, inflation forecasts have been unchanged, the unemployment rate forecast has been lowered; The Fed is still expecting three hikes in 2018. The dove surprise was that, despite including the impact of the tax reform in the forecasts, it does not encourage FOMC members to increase their forecasts. The market reaction to the Fed decision was to depreciate the US Dollar across the board.

Let's now take a look at the EUR/USD technical picture at the H4 time frame. The market reversed from the technical support at the level of 1.1725 and broke above the technical resistance at the level of 1.1807.Currently, the nearest support is 1.1807 and the next target for bulls is seen at the level of 1.1864 and then at 1.1941.

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Market Snapshot: DAX testing the support

The price of German DAX index is testing the support at the level of 13,085 and if this support is violated, then the Head & Shoulders pattern might fully develop. The next target is the support at the level of 12,953 and 12,809.

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Market Snapshot: USD/CAD ready for a breakout?

The price of USD/CAD is still trading inside of the sideways zone between the levels of 1.2618 - 1.2919. Recently, the price tested the technical support at the level of 1.2800 and now it looks like is preparing for a test and a possible breakout above the level of 1.2919. So far none of the indications confirms this scenario yet.

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What did the Fed say on December 13, 2017

What did the Fed say on December 13, 2017?

The Fed raised the base interest rate by 25 basis points to the target range of 1.25% -1.50% while the Federal Open Market Committee of the US Federal Reserve commented on its decision and the current situation in the country.

The Fed notes a significant increase in economic activity, a continuing improvement in the labor market situation due to a moderate average growth in jobs taking into account deviations from past hurricanes and a consistent reduction in unemployment.

The Fed states that during the period between the commission meetings, family expenses showed moderate expansion and the growth of investments by business structures has increased significantly in recent quarters.

The Fed continues to assess long-term inflation expectations as stable. At the same time, the total inflation and basic inflation calculated on a 12-month basis, which does not take into account energy and food prices, decreased this year and remain below 2%. Compensatory data shows that the same impact on inflation from the market continues to be implemented to a small extent.

The Fed seeks, in accordance with its authority, to promote maximum employment and price stability. The damage and restoration work caused by hurricanes affected economic activity, employment, and inflation in recent months but did not significantly change the assessment of the prospects for the national economy. Therefore, the Fed still expects that the gradual regulation of monetary policy will promote the expansion of economic activity at a moderate pace and will maintain a strong labor market. Annual inflation is expected to remain slightly below 2% in the near future but should stabilize near the Fed's target of a 2% target level in the medium term. Short-term risks for the economic outlook look was fairly balanced but the Fed will continue to closely monitor inflation.

Taking into account the already achieved and expected parameters of the labor market and inflation, the Fed decided to raise the target interest rate range for federal funds to 1.25% -1.50%. The basic principles of monetary policy will remain flexible enough, thereby supporting the strengthening of the labor market and the steady return of inflation to a level of 2%.

In determining the timing and scope of future regulation of the target interest rate range for federal funds, the Fed will be guided by both achieved and expected progress in moving towards long-term goals of maximum employment and inflation at 2%. This approach will be based on a wide range of information, including parameters of labor market conditions and indicators of inflationary pressures and inflation expectations including financial and international events. The Fed will closely monitor the actual and expected inflationary processes in relation to its symmetric target of inflation rate. The Fed expects that economic conditions will evolve in such a way that they will ensure a smooth increase in the interest rate for federal funds and it will probably remain for some time below the levels that are expected to prevail over the long term. However, the actual interest rate trajectory for federal funds will depend on economic trends in accordance with the incoming data.

The current fundamentals of monetary policy were adopted by a majority of votes with a 7 vs. 2 result. The final decision was not supported by the president of the Federal Reserve Bank of Chicago, Charles Evans, and the president of the Federal Reserve Bank of Minneapolis, Neel Kashkari, who proposed to maintain the current target interest rate range for federal funds at 1.00% -1.25% at this meeting.

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Ichimoku indicator analysis of USDX December 14, 2017

The Dollar index has pulled back as expected by our latest analysis back towards 93.30 and cloud support. This is a very important short-term support area. Bears must be careful of a possible bounce higher.

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The Dollar index is testing the upper Kumo (cloud) boundary support. Between 93.40-93 we have very important support. If it holds, expect the Dollar index to move higher above 94. The 94 area remains important resistance as we also got rejected yesterday from that level. Important resistance that short-term Dollar bulls need to overcome is at 93.75-93.80.

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I have warned Dollar bulls several times in previous posts that the area of 93.90-94.40 is important resistance area and a rejection there is very possible, before the resumption of the upward move that started at the 92.50 low. A break above yesterday's highs will increase dramatically the chances of the index going towards 96-97. A break below 92.50 will increase the chances of a move towards 88-87.

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Ichimoku indicator analysis of gold for December 14, 2017

Gold price bounced as expected towards $1,260. We are currently being rejected by the Kumo (cloud) and this is what we initially expected. This could be a nice opportunity to sell Gold for a move down to $1,200.

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Gold price is trading below the 4-hour Kumo (cloud). Trend remains bearish. This bounce was expected and we also reached our target area. Maybe this is the time to go short Gold for a move towards $1,200. Support is at $1,250 and at $1,244. A break below these levels will confirm my bearish short-term view. Resistance is at $1,260.

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On a daily basis, Gold price has reached the daily tenkan-sen (Red line indicator) and is showing rejection signs. The bullish reversal candle we mentioned worked nicely and gave us a nice almost 20$ move to the upside. Gold is testing resistance now. Bulls need to be cautious because the rejection here will push price towards $1,200. At $1,200-$1,180 we might see a major low being formed.The material has been provided by InstaForex Company - www.instaforex.com

Burning Forecast 14/12/2017

Burning Forecast 14/12/2017

EURUSD: A strong buy signal.

On Wednesday, the Federal Reserve decided on the rates: The main rate on the dollar was raised +0.25% to the range of 1.00 - 1.50% (as everyone expected).

The forecast on US economic growth was raised. The forecast of the Fed - the rate in 2018 will increase no more than 3 times by +0.25%. What is important? Market reaction.

On these strong, as a whole, US data - the euro sharply turned to growth, breaking the highs of the current week at 1.1815.

This is a strong signal for growth.

Buy from 1.1815, the stop-loss is 1.1770. Objectives: 1.1915 - 1.1940 - 1.2080.

Take note: Today at 11.45 London time, the decision of the ECB on rates, at 16.30 - speech of the head of the ECB Draghi.

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New forecast of the US Federal Reserve on the US economy

The Fed updated the forecast for the main indicators of the US economy

- the forecast for GDP growth in 2017 is 2.4% - 2.5% (previously 2.2% - 2.5%)

- the forecast for GDP growth in 2018 is 2.2% - 2.6% (previously 2.0% - 2.3%)

- the forecast for GDP growth in 2019 is 1.9% - 2.3% (previously 1.7% - 2.1%)

- the forecast for the unemployment rate in 2017 is 4.1% (previously 4.2% - 4.3%)

- the forecast for The unemployment rate in 2018 is 3.7% - 4.0% (previously 4.0% - 4.2%)

- the forecast for the unemployment rate in 2019 is 3.6% - 4.0% (previously 3.9% - 4.4%)

- The inflation forecast for personal consumer spending in 2017 is 1.6% - 1.7% (previously 1.5% - 1.6%)

- The inflation forecast for personal consumer spending in 2018 is 1.7% - 1.9% (previously 1.8% - 2.0%)

- The inflation forecast for personal consumer spending in 2019 is 2.0% (previously 2.0%)

* The presented market analysis is informative and does not constitute a guide to the transaction.

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AUD/JPY approaching major resistance, remain bearish

The price continues to rise towards our major resistance area. We look to sell below 86.67 resistance (Fibonacci extension, Fibonacci retracement, horizontal pullback resistance) for a push down to at least 84.69 support (Fibonacci retracement, horizontal swing low support).

Stochastic (55,3,1) is seeing major resistance below 98% and we expect a corresponding reaction off this level.

Sell below 86.67. Stop loss is at 87.34. Take profit is at 84.69.

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AUD/USD approaching major resistance, prepare to sell

The price is approaching major resistance at 0.7698 (Fibonacci retracement, horizontal swing high resistance) and we expect to see a reaction off this level to push the price down to at least 0.7537 support (Fibonacci retracement, horizontal overlap support). Stop loss is at 0.7751 (Multiple Fibonacci retracements, horizontal pullback resistance).

Stochastic (34,3,1) is seeing major resistance below our 97% and we expect a strong reaction off this level.

Sell below 0.7698. Stop loss is at 0.7751. Take profit is at 0.7537.

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Fundamental Analysis of AUD/USD for December 14, 2017

AUD/USD has been quite impulsive with the bullish gains after bouncing off the support area of 0.75 recently. Despite the increase in Federal Funds Rate report the price has moved higher dominating the USD all the way. Today AUD MI Inflation Expectation report was published with an unchanged value of 3.7%, Employment Change report was published with a significant increase to 61.6k from the previous figure of 7.8k which was expected to be at 18.1 and Unemployment Rate remained unchanged at 5.4% as expected. The positive economic reports did help the currency to gain more against USD which is expected to last for the coming days. On the USD side, today Core Retail Sales report is going to be published with an increase to 0.6% from the previous value of 0.1%, Retail Sales is expected to increase to 0.3% from the previous value of 0.2%, Unemployment Claims is expected to have a slight increase to 237k from the previous figure of 236k and Import Prices is expected to increase to 0.7% from the previous value of 0.2%. The USD high impact economic reports have been quite optimistic today with the forecasts, if the economic reports publish better results then the USD is expected to regain its momentum over AUD which might lead to further bearish pressure in the pair. To sum up, AUD was quite ahead of USD after the Federal Funds Rate hike whereas the positive economic reports have added to the impulsiveness. Unless USD presents with better economic reports in the coming days AUD is expected to gain more momentum.

Now let us look at the technical view, the price is currently quite impulsive with the bullish momentum breaching above the dynamic level of 20 EMA resistance as well. The price has also breached the recent lower high which does indicate a change in trend as well where the price is currently expected to reach the resistance area of 0.7750-0.78 in the coming days. As the price remains above 0.75 support area the bullish bias is expected to continue further.

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Daily analysis of major pairs for December 14, 2017

EUR/USD: The EUR/USD rose upwards yesterday – in the context of a downtrend. The rise in the market has become a threat to the extant bearish bias, but it would not override it until the resistance line at 1.1900 is breached to the upside (which would require a heavy buying pressure).

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USD/CHF: The USD/CHF has generated a short-term "sell" signal, which is supposed to propel price further southwards. The market has lost about 80 pips this week, and it may reach the support levels at 0.9800 and 0.9750. However, this would require a heavy selling pressure.

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GBP/USD: The "sell" signal that was generated earlier has been rendered ineffectual by the bullish effort that was witnessed yesterday. A rise above the distribution territory at 1.3500 would result in a bullish bias, while a drop below the accumulation territory at 1.3250 would result in a bearish bias. Some fundamental figures are expected today and they would have an impact on the market.

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USD/JPY: This currency trading instrument consolidated on Monday and Tuesday and then began to trend downwards on Wednesday. When the EMA 11 finally crosses the EMA 56 to the downside, a Bearish Confirmation Pattern would have formed in the market, and the demand level at 112.00 would have been exceeded by then.

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EUR/JPY: This cross has assumed a strong directional movement this week, and it would be prudent to stay away from the market until a directional movement is perceived, thus creating a directional bias. The expectation would be fulfilled by the end of this week or early next week.

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Daily analysis of USDX for December 14, 2017

USDX remains capped by the resistance zone of 94.09 and looks forward to reaching the critical level of 94.85 once such barrier gives up to the bulls' force. The 200 SMA could provide dynamic support and if it manages to break below that area, then the next target lies at 93.29. MACD indicator continues to favor to the bears.

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H1 chart's resistance levels: 94.09 / 94.88

H1 chart's support levels: 93.71 / 93.29

Trading recommendations for today: Based on the H1 chart, place buy (long) orders only if the USD Index breaks with a bullish candlestick; the resistance level is at 94.09, take profit is at 94.89 and stop loss is at 93.32.

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Daily analysis of GBP/USD for December 14, 2017

GBP/USD has been looking to break lower below the 1.3303 level, as the 200 SMA continues to cap further gains in the pair across the board. If the pair manages to break below that support area, then the next target should be placed at 1.3227. To the upside, if the moving average gives up, then it's expected to rally towards the 1.3440 level.

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H1 chart's resistance levels: 1.3371 / 1.3440

H1 chart's support levels: 1.3303 / 1.3227

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 1.3303, take profit is at 1.3227 and stop loss is at 1.3374.

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BITCOIN Analysis for December 13, 2017

Bitcoin has been quite corrective recently after breaching above the $17,000 price area as expected. The consolidation is assumed to be an effect of introduction to Bitcoin Futures where the traders are taking some time to getting hold of the concept and upcoming holiday season is also taken into consideration. As of the current market situation, the price is expected to be quite slow with the gains in the coming days having most of the market players out of the market and a good amount of profit taking is being observed after Bitcoin reached such high price. Some insecurity among the investors has been also observed after a sudden impulsive hike of Bitcoin above $15,000 price area which was quite hard to digest for some investors as well. Currently, the price is residing above the Kumo Cloud and $16,500 support area from where the price is expected to move up again. As the price remains above the Kumo Cloud Senkou Span B, which is the lower line of the cloud, the bullish bias is expected to continue further with the target towards $18,000 price area.

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Daily analysis of USD/JPY for December 13, 2017

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Overview

The USDJPY pair opens trading today with a bearish bias to test the key support of 113.00. Please note that this level represents the meeting point of the EMA50 with the intraday bullish channel's support line besides 23.6% Fibonacci correction. It supports the strength of this level and hints that the chances are valid to continue the overall bullish trend. Therefore, we will keep our bullish overview on the intraday and short term-basis, conditioned by holding above 113.00. Breaking it will push the price to return to the correctional bearish track again, while our positive targets begin at 114.00 and further to 114.73. The expected trading range for today is between 112.50 support and 114.20 resistance.

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Daily analysis of GBP/JPY for December 13, 2017

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Overview

The GBP/JPY pair has been trading in the same manner of extra mixed trading due to the several closes below 152.85 barrier. The bullish rally has been delayed until this moment. The contradiction between the main indicators forces the price to settle between the initial support at 150.00 and the mentioned barrier until the required bullish momentum is gained. Then, positive targets could be achieved. Therefore, we recommend staying aside for today until the initial support is tested that allows the price to gather new bullish momentum. Then, we expect the beginning of a preferred bullish trading, so that we suggest upward targets at 152.85 and further at 154.45. The expected trading range for today is between 150.00 and 152.85

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Daily analysis of Gold for December 13, 2017

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Overview

Gold price has settled at the key support of $1,240.85 after attempting to break it yesterday. Please note that stochastic loses its bullish momentum clearly to approach the overbought areas while the EMA50 keeps pushing the price down. Therefore, these factors encourage us to confirm the outlook for the bearish trend in the upcoming sessions. Please note that breaking the mentioned support will open the way to target $1,204.81 on the short-term basis, while breaching $1,263.15 represents the first positive key to start recovery attempts and regain the main bullish trend again. The expected trading range for today is between $1,230.00 support and $1,255.00 resistance.

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Daily analysis of Silver for December 13, 2017

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Overview

Silver price keeps crawling downward to approach our main target at 15.49. As long as the price is below 16.56, our bearish overview will remain vaild.

Let me remind you that breaking 15.49 will enable the price to suffer more losses. The price is likely to reach 13.75 as the next target level. The expected decline will remain valid unless the price manages to breach 16.56 level and hold above it. The expected trading range for today is between 15.55 support and 15.85 resistance.

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