NZD/USD Intraday technical levels and trading recommendations for February 9, 2018

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Daily Outlook

In July 2017, an atypical Head and Shoulders pattern was expressed on the depicted chart which indicated upcoming 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 depicted low (0.6780). An inverted Head and Shoulders pattern was expressed around these price levels.

The price zone of 0.7140-0.7250 (prominent Supply-Zone) failed to pause the ongoing bullish momentum. Instead, a bullish breakout above 0.7250 was expressed on January 11.

That's why, the current bullish movement extended towards the price levels of 0.7320 and 0.7390.

A quick bullish movement was expected towards the depicted supply zone (0.7320-0.7390) where evident bearish rejection and a valid SELL entry is still expected.

On Friday, a bearish engulfing daily candlestick was expressed. This enhances the bearish scenario initially towards the price levels of 0.7230 - 0.7165 where price action should be watched for a possible bullish recovery.

Our suggested SELL position around 0.7390 is already running in profits. Bearish fixation below 0.7160 allows further bearish decline towards 0.7090 while S/L should be lowered to 0.7260 to secure some profits

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Intraday technical levels and trading recommendations for EUR/USD for February 9, 2018

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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 and recently above 1.2075.

Another bullish breakout above 1.2250 is being expressed on the chart. This hinders the bearish momentum allowing bullish advancement to occur towards 1.2750.

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Daily Outlook

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.

Bearish target for the depicted Head and Shoulders pattern extends towards 1.1350. However, the market failed to apply significant bearish pressure against the mentioned zone (1.1415-1.1520).

Instead, In November, evident bullish recovery was manifested around the price zone of 1.1520-1.1415.

This hindered further bearish decline which allowed the current bullish pullback to occur towards the price level of 1.2100 which failed to pause the ongoing bullish momentum as well.

Daily persistence above 1.2470-1.2500 is needed to confirm a recent bullish flag continuation pattern with projected targets towards 1.2750.

However, a recent bearish pullback is being expressed below the price level of 1.2350. This may extend towards 1.2070 if a bearish breakdown of the level of 1.2200 is achieved on a daily basis.

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Global macro overview for 09/02/2018

The stock market sell-off again starts in the same place - the VIX volatility index jumped over thirty points on Thursday, which became the catalyst for the next drop. On the currency market, we have a mix of abandoning the winnings of January's trade with the escape to safe havens. USD, JPY and CHF are holding good, but risky currencies are under pressure (mainly AUD, NZD, SEK, NOK). Yesterday, resistance was exhausted among investors in emerging markets who were patiently checking out the turmoil at the beginning of the week. This confirms analytic expectations that after the recent events the adjustment period will be longer than two sessions and there are still many positions on the market to reduce wherever positioning is extreme compared to historical standards.

The EUR/USD pair still defends the support level and did not extend the drops, but the capitulation of holders of long positions is still a threat. We are less than half of the growth correction since the beginning of the year and it may be naive to assume a perfect return at 1.20, this continuation of market perturbations will be for the course like an anchor - the rate might easily go down.

Let's now take a look at the Dow Jones Index technical picture at the H4 time frame. The price has broken through the nearest support at the level of 23,930 and now is heading towards the technical support at the level of 23,615 in extremely oversold market conditions. The RSI indicator is showing the strong downside momentum, but a bullish divergence starts to grow on this time frame.

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Global macro overview for 09/02/2018

The Bank of England has unanimously voted to keep rates on hold, but it caught markets off-guard with its surprisingly bullish outlook for the economy and interest rates. The statement indicated that interest rates may be raised earlier and faster than expected in November forecasts. BoE sees three hikes in the horizon of the forecast against two before, which meant the statement is very hawkish.

During the press conference, BoE Governor Mark Carney said, that BoE does not intend to "tie up its hands" with the promise of a specific interest rate path and remains open to responding to incoming data. In addition, Carney said at the very beginning, that his first words are a warning against inflationary pressure, which is getting stronger and CPI may still return over 3.0%. The price increase may support the acceleration of wages. To bring inflation to the 2.0% target. there may be a need for faster interest rate increases.

In the new forecasts, the Bank of England raised the projection of GDP growth in 2018 to 1.8% from 1.6%, and in 2019 to 1.8% from 1.7 %. The bank sees inflation above the 2.0% target, and in the long term - at 2.2% in the first quarter of 2020 and 2.1% in the first quarter of 2021. In the commentary, the bank states that spare capacity in the economy is limited and the economy requires a continued reduction of the monetary stimulus.

In conclusion, very hawkish comments and statements from BoE even without the direct interest rate hike. The "somewhat earlier" term used by BoE might suggest, the next interest rate hike will be made as soon as in May 2018.

Let's now take a look at the GBP/USD technical picture at the H4 time frame. The initial reaction on the BoE decision was bullish, but the rally was quickly capped at the level of 1.4081 and since then the price is falling lower towards the level of 1.3818, which is the nearest support. The momentum is still weak and below its fifty level, so the test of the support might happen very soon.

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Daily analysis of major pairs for February 9, 2018

EUR/USD: There is a clean bearish signal on the EUR/USD pair. The recent bearish attempt has paid off and price is now below the resistance line at 1.2250. The market is supposed to go further downwards at it is poised to reach the support lines at 1.2200 and 1.2150. The EMA 11 is below the EMA 56.

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USD/CHF: The bullish signal here is currently being challenged seriously after the resistance level at 0.9450 has been tested. As soon as price goes below the support level at 0.9300, the bias on the market would turn completely bearish. However, a bullish movement from here would save the recent bullish signal.

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GBP/USD: Owing to the current weakness on GBP pairs, GBP/USD has continued going southward. Price has shed 430 pips since last Friday, and the pair is currently testing the accumulation territory at 1.3800, which will soon be breached to the downside as price goes towards another accumulation territory at 1.3750.

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USD/JPY: The USD/JPY pair is currently choppy, and the situation has not changed yet. The market is generally trading sideways, but when there is a breakout in the market, it would most probably be in favor of bulls. A breakout is expected before the end of this week, or early next week.

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EUR/JPY: The EUR/JPY pair has gone southwards by almost 400 pips this week, resulting in a huge Bearish Confirmation Pattern in the 4-hour chart. The demand zone at 133.00 has been tested several times, and it would soon be breached to the downside, as price targets another demand zone at 132.50.

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Trading plan 09/02/2018

Trading plan 09.02.2018

The general picture: Markets comprehend the collapse of the US market.

On Thursday, the US market showed the second strongest drop for the week. It shows Major indices to have minus 4% and the volumes were above the average by 30-50%. The market closed at its lowest rate.

No doubt: Large institutions have merged large volumes.

What are the causes? These include the reassessment of the prospects for the stock market after data on accelerating the growth of wages and increasing inflation expectations, as well as, the rate of the Fed on raising rates.

However, despite the impressive drop of -10% of the highs in the market, this is just a correction (for now). Correction has ripened a very long time and the market has grown non-stop.

So far, there is no reason to expect weakening in the real sector.

We expect the decline to stop and start a new growth, including the euro.

British pound:

We are buying from level of 1.3860.

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Bitcoin analysis for February 09, 2018

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The Bitcoin (BTC) has been trading sideways at the price of $8.150. Accusations, rumors, and fears of manipulation in the cryptocurrency market have been around for a long while now. The most recent one involves Tether supposedly artificially propping up the price of bitcoin by printing USDT. Now one regulator demands that companies in its jurisdiction will take action against such possible risks. Technical picture looks neutral to bearish.

Trading recommendations:

According to the 30M time - frame, I found bearish head and shoulders pattern in creation, which is a sign that buying looks risky. My advice is to watch for potential selling opportunities if you see valid breakout level of the neckline. The downward targets will be set at the price of $6.755 and at the price of $5.960.

Support/Resistance

$8.422 – Intraday resistance

$7.680 – Intraday support

$6.755 – Objective target 1

$5.960 – Objective target 2

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BITCOIN Analysis for February 9, 2018

Bitcoin has been quite stable with the gains recently which is indeed quite positive for the Crypto currency itself. Recently the market is being observed settling down a bit, with no more regulators trying to regulate the Bitcoin and pressurizing it as well. As of the current scenario, the investors are now trying to settle down which has resulted in low volatility and sustainable growth. The price is currently residing above $7500 price area with some bearish rejection from where the price is expected to push higher towards $10,000 price area in the coming days. The consolidation is expected to continue further until price breaks above $10,000 price area with a daily close for an impulsive bullish pressure like before. As the price remains above $7,500 with a daily close, further bullish momentum is expected to push the price higher in the coming days.

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Analysis of Gold for February 09, 2018

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Recently, the Gold has been trading sideways at the price of $1,316.00. According to the 30M time - frame, I found confirmed head and shoulders pattern (bearish) in the background, which is a sign that seller is in control today. The price also respects a pivot level at the $1,316.00 which is another sign of weakness. My advice is to watch for potential selling opportunities. The downward targets are set at the price of $1,310.00 and at the price of $1,301.00.

Resistance levels:

R1: $1,324.98

R2: $1.331.12

R3: $1,340.07

Support levels:

S1: $1.310.00

S2: $1,301.00

S3: $1,294.77

Trading recommendations for today: watch for potential selling opportunities.

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Fundamental analysis of AUD/JPY for February 9, 2018

AUD/JPY has been quite impulsive with the bearish gains recently, after breaking below 87.50 price area with a daily close. JPY has been the dominant currency in the pair this week as AUD had some downbeat economic reports. Australia published a series of worse economic reports this week which lead the currency to lose some grounds against JPY which in its turn had mixed economic reports. Today the RBA Monetary Statement was released where the bank forecasted the GDP growth of 3% on an average, an increase in Inflation of 3% by December 2018, and the unemployment rate was forecasted to decrease rapidly in the coming months. Along with it, today the Australian Home Loans report was published with a deficit of -2.3% decreasing from the previous value of 1.6% which was expected to be at -1.1%. Despite having worse economic report on Home Loans, AUD has been quite strong today due to positive forecast from the RBA provided in the Monetary Policy Statement. As for the news from Japan, today the M2 Money Supply report was published with a decrease to 3.4% which was expected to be unchanged at 3.6%. It has already hich fueled gains on the AUD side. As of the current scenario, AUD is expected to rise further in the coming days to recover some of the grounds against JPY. Until JPY comes up with positive economic reports to sustain its gains, AUD is expected to push the price higher.

Now let us look at the technical view. The price is currently showing some impulsive bullish pressure off the 84.50 support area which is expected to help the price move higher towards 87.50 and dynamic level of 20 EMA in the coming days. The impulsive bullish pressure after the bounce from an important support level is indeed quite remarkable and as the price remains above 84.50 with a daily close, further bullish pressure is expected in the market in the coming days.

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EUR/USD analysis for February 09, 2018

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Recently, the EUR/USD pair has been trading sideways at the price of 1.2268. According to the 30M time - frame, I found that the price did successful rejection of pivot resistance 1, which is a sign that buying looks risky. I also found an upward trendline and my advice is to watch for potential breakout to confirrm further downward movement. The downward targets are set at the price of 1.2208 and at the price of 1.2170. Anyway, if the price breaks the level of 1.2290, price might visit level of 1.2335.

Resistance levels:

R1: 1.2290

R2: 1.2340

R3: 1.2375

Support levels:

S1: 1.2208

S2: 1.2170

S3: 1.2125

Trading recommendations for today: watch for potential selling opportunities.

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Fundamental Analysis of USD/CHF for February 9, 2018

USD/CHF has recently retested the 0.9450 price area with a daily close which is expected to push the price much lower in the coming days. The recent retracement was due to the positive USD Employment Change report published this month which resulted to an impulsive bullish pressure after getting dominated by bears for a certain period of time. The weakness of CHF can also be the result of decreasing Foreign Currency Reserve to 731B from the previous figure of 744B. Today, CHF Unemployment Rate report was published with an unchanged value, as expected, at 3.0% which did not quite supported the CHF gains over USD by now. On the other hand, USD has been quite positive with the Unemployment Claims report which was published with a decrease to 221k from the previous figure of 230k. The decrease in Unemployment Claims was quite as expected as of the recent increase in Non-Farm Employment Change figure. Today, USD Final Wholesale Inventories report is going to be published which is expected to be unchanged at 0.2% and to have a minimal impact on the gains of USD for the coming days. As of the current scenario, USD is currently quite strong fundamentally than CHF which did reflect the market pretty well by now. Decrease in Foreign Reserve was a big hit for CHF this week, whereas USD was already strong due to the recent Employment Change. Until CHF comes up with positive economic report results in the coming days, USD is expected to sustain its gains and may lead to further bullish pressure in the future.

Now let us look at the technical view. The price has recently retested the 0.9450 price area and dynamic level of 20 EMA as a resistance. The price is currently expected to proceed lower towards the 0.9250 area if the price manages to remains below 0.9450 with a daily close in the coming days. As the price remains below 0.9450, the bearish bias is expected to continue further.

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Technical analysis of NZD/USD for February 09, 2018

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Overview:

  • The NZD/USD pair has faced strong resistances at the level of 0.7268 because support has become resistance since yesterday. So, the strong resistance has already formed at the level of 0.7268, and the pair is likely to try to approach it in order to test it again. However, if the pair fails to pass through the level of 0.7268, the market will indicate a bearish opportunity below the new strong resistance level of 0.7268 (the level of 0.7268 coincides with a ratio of 38.2% Fibonacci). Moreover, the RSI starts signaling a downward trend, as the trend is still showing strength above the moving average (100). Hence, the market is indicating a bearish opportunity below 0.7268, so it will be good to sell at 0.7268 with the first target of 0.7175 (double bottom). It will also call for a downtrend in order to continue towards 0.7140. The daily strong support is seen at 0.7140. On the other hand, the stop loss should always be taken into account, for that it will be reasonable to set your stop loss at the level of 0.7300.
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Technical analysis of USD/CHF for February 09, 2018

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Overview:

  • The USD/CHF pair continued to move upwards from the level of 0.9344/0.9399. The pair rose from the level of 0.9399, but it rebounded from the price of 0.9399 to the top around 0.9460. In consequence, the USD/CHF pair broke resistance at 0.9444, which turned into strong support at the level of 0.9444. In the H1 time frame, the level of 0.9444 is expected to act as major support today. Currently, the price is moving in a bullish channel.
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  • This is confirmed by the RSI indicator signaling that we are still in a bullish market. The price is still above the moving average (100). From this point, we expect the USD/CHF pair to continue moving in the bullish trend from the new support level of 0.9444 towards the target level of 0.9489. If the pair succeeds in passing through the level of 0.9489, the market will indicate the bullish opportunity above the level of 0.9489 so as to reach the second target at 0.9552. At the same time, if the USD/CHF pair is able to break out the level of 0.9399, the market will decline further to 0.9300.
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Bitcoin analysis for 09/02/2018:

The blockchain regulations in Germany will obtain a comprehensive strategy and legal support from the government. The consultation report with the participation of legislators and the lobbying group Blockchain Bundesverband underlines the positive future of technology. The group reports that the government welcomes the blockchain industry. "The lack of a legal framework for ICO and other token entry systems is still a serious barrier to many startups in Germany. Only if it is quickly repaired at German and EU level, this technology can gain a solid grounding in Europe "- declares Bundesverband.

In Germany, a significant and decisive approach to the emerging blockchain phenomenon developed slowly, in contrast to neighboring Switzerland. The Bundesverband was developed as a direct solution to the lack of progress, defining its mission as promoting decentralized infrastructure. In addition to highlighting the areas in which the government is currently interested in regulation, the report also notes what still needs to appear in order for blockchain to become a success in the German economy

Let's now take a look at the bitcoin technical picture at the H4 time frame. The market bounced right from the weekly pivot support at the level of $5,912, just a little below the grey rectangle target zone of $6,314 - $6,742. Currently, the price is trying to bounce higher towards the level of $9,118 and then possibly towards the level of $9,515. Those two levels are the key to future gains.

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Trading plan for 09/02/2018

During the American session, VIX came again over around thirty, thus moving away from the long-term average located ten points lower. A clear outflow of capital is also observed in Tokyo, where Nikkei, losing 2.3%, records the worst week for exactly two years. The same situation is being observed in China, where Shanghai Composite had lost 5.2% overnight.

On Friday, February 9th, the event calendar is not so busy in important data releases, but the market participants should keep an eye on Industrial Production and Manufacturing Production data from the UK, Unemployment Rate data form Switzerland, and Unemployment Rate and Employment Change from Canada.

EUR/USD analysis for 09/02/2018:

The market is still trying to find a balance point after a volatility jump at the beginning of the week and one of those days when panic is taking its toll. Wall Street has another session with a fall of 4.0%, and it carries the Asian market behind. The currency market is a bit calmer, although the fear finally reached the emerging markets.

Let's now take a look at the EUR/USD technical picture at the H4 time frame. EUR/USD slowed the discount around 200-period moving average at 1.2210, however, the upward move should be treated only as a correction. The resistance is the neckline of the double top formation at 1.2335. The base scenario is the continuation of the discount towards 1.2130, where the 50% Fibo retracement is the range resulting from a double top. Moreover, we have the end of the week, which usually encourages closing the position.

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Market Snapshot: SPY drops again

The price of SPY (SP500 ETF) has dropped to the previous support at the level of 258.47 and broken it. The momentum is still pointing to the downside, and the next technical support is seen at the level of 254.50. The nearest important technical resistance is seen at the level of 260.79.

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Market Snapshot: DAX made a new local low as well

The price of German DAX index has reversed from the trendline resistance around the level of 12,648, has broken the technical support at the level of 12,242 and now is heading lower towards the level of 12,061. The nearest resistnace is seen at the level of 12,503.

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Ichimoku cloud indicator analysis of USDX for February 9, 2018

The Dollar index has stopped its ascension at the kijun-sen resistance. Bulls need to be very cautious because this is also the 38% Fibonacci retracement of the decline from 94.25. We might see one more new lower low towards 87 in the Dollar index before a bigger bounce. This scenario will be confirmed on a break below 89.60.

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The Dollar index has broken out of the Ichimoku cloud and is trading above it. This is good news for bulls. We could see a pull back to back test the broken cloud. This back test could pull back price towards 89.60-89.30 which is now support. Bulls must defend this level if prices turn lower.

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On a daily basis the Dollar index has stopped its rise at the kijun-sen (yellow line indicator) and at the same time the 38% Fibonacci retracement. This confirms the importance of the resistance level at 90.60. Support is at the tenkan-sen (Red line indicator). Breaking below it will be a bad sign for bulls. Bulls need to break above 90.60 in order to have hopes for a bigger bounce in the index.The material has been provided by InstaForex Company - www.instaforex.com

Ichimoku cloud indicator analysis of gold for February 9, 2018

Gold price is in a bearish short-term trend as price is below both the tenkan- and kijun-sen indicators. Gold is making lower lows and lower highs and is expected to move towards $1,300-$1,280 area once we break below $1,307.

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Blue lines - horizontal support

Despite the risk off sentiment in equity markets and the weak Dollar, Gold looks like it has made an important top at the $1,365 level. The rejection at the long-term resistance was not a good sign. Gold price has turned short-term trend to bearish and will remain bearish as long as price is below the 4 hour Kumo. Resistance is at $1,338-47. Gold is trading around the 38% Fibonacci retracement of the entire rise since December lows. At $1,307 we also find the horizontal support at $1,307. If price makes a new lower low, I would expect Gold to move even lower towards $1,300-$1,280.

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Red line - long-term resistance

On a weekly basis, Gold got rejected at the resistance trend line and is going to test the weekly Kijun-sen at $1,300. A weekly close below $1,300 will open the way for a move towards the cloud support at $1,270 and even lower.

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USD/CAD right on our selling area, time to sell

The price is now testing our major resistance area at 1.2582 (Fibonacci retracement, Fibonacci extension, impulsive Elliott wave structure, horizontal swing high resistance) and we expect a strong reaction from this level to drive the price down to 1.2407 support (Fibonacci retracement, horizontal overlap support). It's important to note the intermediate support level at 2.2458 (Fibonacci retracement, breakout level). We can also see a new element formed which is the bearish divergence on price vs RSI, this is always a good signal that a reversal is impending and on the horizon.

RSI (34) sees major resistance at 61% where we expect a corresponding reaction from. We can also see bearish divergence vs price signaling that a reversal is impending.

Sell below 1.2582. Stop loss at 1.2702. Take profit at 1.2407.

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The euro is losing ground

The return of market volatility reminded investors about the advantages of the US dollar, which they have recently stubbornly ignored. The rapid growth in Treasury yields, the increase in the likelihood of four federal fund rate increases and the potential overclocking of US GDP to 3% under the influence of fiscal stimulus can not be combined with the fall of the USD index to the level of three-year lows. At the same time, the reduction of political risks after resolving the issue with the ceiling of the national debt became the catalyst for the collapse of EUR/USD to its lowest mark in a couple of weeks.

On Forex, conversations are growing stronger that the euro has gone very far upward. While the Federal Reserve spokespersons talked about possibility of 3-4 moves to tighten monetary policy, their ECB colleagues remain committed to ultra-soft policies and express dissatisfaction with the excessively rapid strengthening of the single European currency. According to the monthly statement of the European Central Bank, the risks of a slowdown in the euro area's GDP are related to external factors, including foreign exchange markets. The regulator believes that, based on the oil market conditions, consumer prices in the coming months will continue to slow down, and core inflation will remain subdued. In January, CPI grew by a modest 1.3%, what kind of normalization can we talk about?

Yes, one of the largest German unions IG Metall agreed to raise wages by 3.8-3.9% in 2018-2019, which allowed the head of the Bundesbank, Jens Weidmann, to state that this deal will contribute to the growth of inflationary expectations, but in fact, it is not so simple. In the eurozone as a whole, the average salary grew by 1.6% by the end of 2017. The indicator did not exceed 2% since 2012. The labor market has many vulnerabilities. In particular, the ECB study states that the improvement of its situation is connected with pension reforms that allowed older people to return to work, as well as an influx of migrants and women. In the medium term this can help to reduce the supply of labor.

The dynamics of the labor market indicators of the euro area

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Source: Bloomberg.

Thus, it is not necessary to speak about a steady growth of European inflation in the direction of the targeted 2%, and hence the statement about the imminent termination of QE is not worthy of attention. This is despite the "hawk" of the Governing Board as Weidman talking about a phasing out of the asset purchase program after September. At the same time, the Fed will continue to raise rates, expanding the yield differential of US and German bonds. And if this factor at the turn of 2017-2018 did not work, as soon as it starts to do it, the correction of EUR/USD will accelerate. Probably some of the speculators, which have accumulated record-breaking net euros in the futures market, understand this and are gradually cashing in profits. Especially since before the Italian parliamentary elections on March 4, there is less and less time.

Technically, the EUR/USD quotes outside the current downward trading channel will increase the risks of implementing the target by 161.8% on the "Crab" pattern.

EUR/USD, daily chart

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Daily analysis of gold for February 08, 2018

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Overview

Gold price crawls downwards gradually on its way towards our expected target at $1,301.20. As long as the price is below $1,316.48, the bearish trend scenario will remain active for today. Note that breaking the target level will extend losses and bring gold prices to the level of $1,285.90 as a next station. Breaching $1,316.48 represents the first key to attempt to stop the current correctional bearish pressure and return to the main bullish trend. The expected trading range for today is between $1,300.00 support and $1,320.00 resistance.

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Daily analysis of silver for February 08, 2018

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Overview

Silver price keeps trading in the negative zone, moving away from 16.56 level. It supports continuation of our bearish overview. Our long-awaited target is located at 15.49, while holding below 16.56 represents the most important condition to continue the suggested decline. The expected trading range for today is between 16.00 support and 16.50 resistance.

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Technical analysis of USD/JPY for February 8, 2018

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Our first target which we predicted in the previous analysis has been hit. USD/JPY is expected to trade with a bullish outlook. Currently, the pair is trading at levels around the ascending 20-period moving average, which has just crossed above the 50-period one. And the relative strength index has managed to stay above the neutrality level of 50, indicating a lack of downward momentum for the pair. As long as intraday bullishness is maintained, the pair should revisit 109.90 on the upside.

Alternatively, if the price moves in the opposite direction, a Short position is recommended to be below 109.10 with a target of 108.90.

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 at 108.80, take profit at 109.75.

Resistance levels: 109.70, 110.75, and 111.00

Support levels: 108.40, 108.10, and 107.75.

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

Technical analysis of USD/CHF for February 8, 2018

USDCHFM30.png

All our upside targets which we predicted in yesterday's analysis have been hit. USD/CHF is expected to trade with bullish outlook. The pair recorded higher tops and higher bottoms since February 1, which confirmed a positive outlook. The rising 50-period moving average acts as a support. The relative strength index is above its neutrality level at 50.

To sum up, while the price is above 0.9365, look for a further advance with targets at 0.9460 and 0.9500 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 point 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 at 0.9365, take profit at 0.9460.

Resistance levels: 0.9460, 0.9500, and 0.9550

Support levels: 0.9330, 0.9300, and 0.9270.

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