Fundamental analysis of USD/CHF for April 26, 2018

USD/CHF has been non-volatile and impulsive with the bullish gains recently after breaking above and retesting the 0.9450 area. USD has been quite positive with the economic reports recently which helped the currency to gain and sustain its bullish momentum against CHF. The Core Durable Goods Orders report was published today with a decrease to 0.0% from the previous value of 1.0% and versus the expected rise of 0.5%. Despite that, USD managed to maintain the bullish pressure in the market today. Along with the Core Durable Goods Orders report, the Durable Goods Orders report was published which showed a decrease to 2.6% from the previous value of 3.0% which was expected to decrease to 1.6%. The Unemployment Claims had positive result of decrease to 209k from the previous figure of 233k which was expected to be at 230k. Additionally, the Goods Trade Balance report was published with less deficit at -68.0B from the previous figure of -75.9B which was expected to be at -74.8B. Finally, the Prelim Wholesale Inventories had positive result of decrease to 0.5% from the previous value of 1.0% which was expected to be at 0.6%. On the other hand, this week the Swiss Trade Balance report was published with a significant decrease to 1.77B from the previous figure of 3.08B which was expected to increase to 3.23B. Moreover, the Credit Suisse Economic Expectation report was published with decrease to 7.2 from the previous figure of 16.7. As of the current scenario, CHF was held back against the USD momentum for the weak economic reports published recently. On the other hand, USD is currently quite stronger at its peak and expected to gain momentum in the coming days.

Now let us look at the techncal view. The price is currently residing above the price area of 0.9850 from where it is expected to push towards 0.9950-1.00 resistance area in the coming days. Currently Hidden Divergence is being build up in the intraday 4 hourly chart whereas the price is expected to push lower from the 0.9950-1.00 resistance area with certain strong momentum.

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Technical analysis of USD/JPY for April 26, 2018

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USD/JPY is expected to trade with bullish outlook. The pair is rebounding from 108.50 (the low of April 24) and is challenging both 20-period and 50-period moving averages. The relative strength index broke above the neutrality level at 50, calling for continuation of the bounce. Hence, as long as 108.85 is not broken, look for re-test of 109.60. A break above this level would trigger a new rise to 109.80.

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 108.85, take profit at 109.60.

Resistance levels: 109.60, 109.80, and 110.05

Support levels: 108.50, 108.15, and 107.50.

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Technical analysis of USD/CHF for April 26, 2018

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USD/CHF is still trading on upside and expected to continue the upside movement. The pair stands firmly above its horizontal support at 0.9800, which should limit any downside room. The relative strength index is mixed to bullish above its neutrality area at 50. Last but not least, the process of higher highs and lows remains intact, which should confirm a positive outlook. To conclude, as long as 0.980 is not broken, it's likely to advance to 0.9880 and 0.9915 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 0.9800, take profit at 0.9880.

Resistance levels: 0.9880, 0.9915, and 0.9960

Support levels: 0.9770, 0.9745, and 0.9700.

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Technical analysis of GBP/JPY for April 26, 2018

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GBP/JPY is expected to trade with bullish outlook. The pair has pulled back on its horizontal support at 151.65, and is likely to post a new rebound. The relative strength index is also turning up, which should confirm a positive outlook. In addition, both the 20-period and 50-period moving averages are heading upward. Therefore, as long as 152.05 holds on the downside, look for a new rise to 153.00 and 153.40 in extension.

Fundamentally:

The British pound marked a day-low of US$1.3916, its lowest intraday level since March 19, before rebounding to close at US$1.3975, up 0.3% on the day and snapping a five-session losing streak. The currency was boosted by a revised 44 billion-pound bid by Japan's Takeda Pharmaceutical for London-listed drugmaker Shire.

Chart Explanation: The black line shows the pivot point. Currently, the price is above the pivot point which is a signal for long positions. If it remains below the pivot point, it will indicate short positions. The red lines show the support levels, while the green line indicates the resistance levels. These levels can be used to enter and exit trades.

Resistance levels: 153.00, 153.40, and 154

Support levels: 151.65, 151.30, and 152.

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Technical analysis of NZD/USD for April 26, 2018

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Our first downside target which we predicted in the previous analysis has been hit. NZD/USD is still expected to trade with bearish outlook. The pair remains in a downward trend, and is likely to post a new decline. The falling 50-period moving average acts as a resistance role. In addition, the relative strength index lacks upward momentum. To conclude, as long as 0.7110 is not surpassed, it's likely to advance to 0.7045 and 0.7020 in extension.

Chart Explanation: The black line shows the pivot point. Currently, the price is above the pivot point, which is a signal for long positions. If it remains below the pivot point, it will indicate short positions. The red lines show the support levels, while the green line indicates the resistance levels. These levels can be used to enter and exit trades.

Resistance levels: 0.7130, 0.7155, and 0.7185

Support levels: 0.7045, 0.7020, and 0.700.

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Global macro overview for 26/04/2018

The Swedish Riksbank maintained the repo rate at the level of -0.5% as widely expected. In the projection of the interest rate path, the bank dismissed the moment of beginning normalization closer to the end of the year, although the first full hike was included in the forecasts only closer to February 2019. Like in February, the Council member Ohlsson wanted a rate increase of 25 bp. The message to the decision is quite dovish. Although the bak notes the depreciation of the SEK, which argues for higher inflation, "continuation of monetary support is necessary to keep inflation close to the target."

The last wave of SEK sales was associated with a negative revision of expectations with regard to monetary policy and doves, and the tone of the meeting may already be largely discounted. The realized depreciation of the crown may also be an important factor for the Riksbank, as the weaker currency raises inflation and improves the competitiveness of exports, so in the longer horizon, it will help in making a decision on the normalization of monetary policy. But too weak a currency is not profitable for the economy. nevertheless, the Riksbank did not even attempt to verbally support the currency.Let's now take a look at the EUR/SEK technical picture in the H4 time frame. Generally speaking, the Riksbank was more dovish than the market expected, which restores EUR/SEK rally towards the level of 10.47. So far the rally stopped at this level and there is even a possibility of a Double Top technical pattern to be formed as the market conditions are overbought and the RSI indicator is showing a clear bearish divergence between the price and momentum. The nearest technical support is seen at the level of 10.34.

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Technical analysis of NZD/USD for April 26, 2018

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Overview:

Yesterday, the NZD/USD pair opened below the weekly pivot point (0.7110). The major resistance is seen at the point of 0.7110. It continued to move downwards from the level of 0.7110 to the bottom around 0.7072. Today, the first resistance level is seen at 0.7148 followed by 0.7195, while daily support 1 is seen at 0.7072. Furthermore, the moving average (100) starts signaling a downward trend; therefore, the market is indicating a bearish opportunity below 0.7110. So it will be good to sell at 0.7110 with the first target of 0.7072. It will also call for a downtrend in order to continue towards 0.7026. According to the previous events, we expect the NZD/USD pair to trade between 0.7110 and 0.7026 in coming hours. The price area of 0.7148 remains a significant resistance zone. Thus, the trend is still bearish as long as the level of 0.7148 is not broken. On the other hand, in case a reversal takes place and the NZD/USD pair breaks through the resistance level of 0.7148, then a stop loss should be placed at 0.7195.

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Technical analysis of USD/CHF for April 26, 2018

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Overview:

Pivot: 0.9796.

The USD/CHF pair broke the resistance that turned into strong support at the level of 0.9772 yesterday. The level of 0.9772 coincides with the ratio of 78.6% Fibonacci, which is expected to act as a major support on the H1 chart today. Consequently, the first support is set at the level of 0.9772. Moreover, the RSI starts signaling an upward trend, and the trend is still showing strength above the moving average (100). Hence, the market is indicating a bullish opportunity above the area of 0.9772. So, the market is likely to show signs of a bullish trend around 0.9772 - 0.9750. In other words, buy orders are recommended above the ratio of 78.6% Fibonacci (0.9772) with the first target at the level of 0.9857 in order to test a double top in the same time frame. If the pair succeeds to pass through the level of 0.9857, the market will probably continue towards the next objective at 0.9898. The daily strong support is seen at 0.9730. Thus, if a breakout happens at the support level of 0.9730, then this scenario may be invalidated.

Daily key levels:

  • Major resistance: 0.9898
  • Minor resistance: 0.9357
  • Intraday pivot point: 0.9796
  • Minor support: 0.9772
  • Major support: 0.9730
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Global macro overview for 26/04/2018

The last series of data from the Eurozone economy was below expectations, which would rather stop the bank from tightening the monetary policy. In that case the bank is likely to wait until June. The weakness of the EUR in recent days suggests that the market may focus on the dovish tone of the decision. On the other hand, if the decision is hawkish, it may bring a rebound.

In recent weeks, signals from the central bank have mostly suggested that the ECB should remain "patient and diligent" in policy implementation. In the minutes of the March meeting of the ECB, the emphasis was on a cautious tone and an indication of the risks for the economic outlook. Among the members of the Governing Council, there is a "broad agreement" that there is not enough strong evidence of stabilizing inflation trends, and global economic risks outweigh the negative side, including those related to the risk of trade conflicts. It was noted that the removal of the dovish attitude from forward guidance regarding the asset purchase program "should not be misunderstood" and the Council still leaves the option of reacting to potential shocks.

This message coincided with a series of disappointing data from the Eurozone economy. However, during this period, members of the Governing Council refrained from expressing concerns about decelerating growth, and if they did, they were convinced that the slower growth rate would not hinder inflation in returning to the target. In this context, it is unlikely that on Thursday ECB President Draghi would significantly emphasize doubts about the strength of recovery. It is more likely that the ECB will refrain from assessing the economic situation until it is familiarized with the new set of macroeconomic forecasts available at the next meeting in June.

For the same reason, there is very little chance that this week the Council would decide on the future of the asset purchase program, which also excluded last week's leaks to sources related to the ECB. We can hear from Draghi that the discussion on QE reduction has started and there are many options for what will happen to the program after September, but nothing has been decided yet. Similarly, Draghi should maintain unspecified forward guidance for the date of the first rate hike. The ECB President may be asked for a recent comment from the ECB member Nowotny on the increase in the deposit rate by 20 basis points. We expect Draghi to comment on this as an expression of Nowotny's individual views, and the Council has not discussed this issue yet.

The European Central Bank will publish its decision and statement today at 12:45 pm GMT. Global investors do not expect any changes in the parameters of the monetary policy (the reference rate: 0.0 percent, deposit rate: -0.40 percent, asset purchase amount: EUR 30 billion per month). At 01:30 pm GMT a press conference of the ECB President Mario Draghi is scheduled.

Let's now take a look at the EUR/USD technical picture on the H4 time frame. In the last days the EUR weakened which reflects investors' positioning on the dovish tone of the ECB's decision. Recently, the lack of EUR/USD strength in the exit attempts was the top of consolidation, which suggests that investors were reluctant to buy EUR for fear that the bad run in macroeconomic data would bring about a change in the central bank's bias. Therefore, even if Draghi draws attention to negative risks for growth prospects, it is already discounted in EUR. However, the expected neutral message similar to that of the March conference will mean that dovish positioning is not justified and it may bring a rebound in EUR after the recent depreciation. The key important technical levels are: 1.2154 - 1.2163 (technical support) and 1.2238 - 1.2244 (technical resistance).

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Bitcoin analysis for April 26, 2018

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The Bitcoin (BTC) has been trading downwards. As I expected, the price tested the level of $8.617 and reached the yesterday's first target. Typically, when people think of bitcoin mining operations, they look to countries like Iceland and mainland China. However, most people do not know that the small country of Georgia, a region of Eurasia, is ranked the second most profitable area in the world for cryptocurrency mining, just below China. Technical picture looks bearish.

Trading recommendations:

According to the H4 time - frame, I found that the price broke upward channel in the background, which is a sign that sellers are in control. I also found a bearis cross on the ADX indicator, which is another sign of weakness. My advice is to watch for potential selling opportunities. The downward target is set at the price of $7.742.

Support/Resistance

$8.940 – Intraday resistance

$8.617– Intraday support

$7.742 – Objective target

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

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GBP/USD analysis for April 26, 2018

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Recently, the GBP/USD pair has been trading downwards. The price tested the level of 1.3894. Anyway, according to the M30 time-frame, I found a potential selling climax in the background, which is a sign that selling looks risky. I also found ADX readings below the 30 level, which is another sign that supply is weak. My advice is to watch potential breakout of 1.3925 (rally high) to confirm further upward direction. The upward targets are set at the price of 1.3949, 1.3965, and 1.3995.

Resistance levels:

R1: 1.3977

R2: 1.4025

R3: 1.4050

Support levels:

S1: 1.3905

S2: 1.3877

S3: 1.3830

Trading recommendations for today: watch for potential buying opportunities.

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Analysis of Gold for April 26, 2018

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Recently, the Gold has been trading sideways at the price of $1,322.00. Anyway, according to the H4 time-frame, I found strong supply in the background and weak buyers, which is a sign that buying looks risky. ADX indicator decreased on the rallies, which is a sign that buyers are weak. I also found a successful rejection of 20 EMA in the backgorund, which is another sign of weakness. My advice is to watch for potential selling opportunities. The downward target is set at the price of $1,307.00.

Resistance levels:

R1: $1,330.64

R2: $1,337.99

R3: $1,343.90

Support levels:

S1: $1,317.38

S2: $1,311.47

S3: $1,304.12

Trading recommendations for today: watch for potential selling opportunities.

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US-China trade talks are the main driver of dollar growth

The US dollar continues to grow strongly against the backdrop of fairly average macroeconomic data. Regional reports indicate a slowdown in manufacturing activity. The Federal Reserve Bank of Chicago reported on the decline in the index of business activity in April to 0.10p against 0.98p in February. The index of the Federal Reserve Bank of Richmond did go to negative territory to -3p against 15p in March.

Auctions for the placement of US debt securities are taking place against a background of a sharp drop in demand. The yields of 10-year US government bonds reached a maximum in 4 years for the first time since 2014, exceeding the 3% mark. This is a significant event for the financial markets and it indicates that the maintenance of the growing national debt for the US government is becoming increasingly expensive. Meanwhile, the placement of new loans is more problematic.

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The yields of the two-year securities finally reached the level of 2008 which indicates problems with customers. US stock markets set a maximum in January, after which the rollback began. This means there is an excessive demand for financial assets in this market.

Thus, both the debt market and the stock are in the sale phase with buyers being cached. The financial flows are clearly not in favor of the dollar but in practice, we will observe exactly the opposite effect: the dollar is growing steadily against most of the competitors.

What's the matter? Who is the buyer of the American currency and how stable is this process?

This week, an impressive team of negotiators was sent to China, whose goal is to prevent a full-scale trade war between the countries. The delegation includes Treasury Secretary Steven Mnuchin, US Trade Representative Robert Lighthizer, and the director of the National Economic Council of the White House, Larry Kudlow.

It is likely that we see an attempt to implement the next scenario. As you know, China owes the US a debt of $ 1.2 trillion, being the largest creditor of the US government in the world. The trade war declared by Trump has provoked China's response, which partially restricted the access of American products to its market. However, if the US realizes the threat of limiting imports by another $ 100 billion, China will not be able to respond symmetrically. There is simply no suitable import from the US. Accordingly, China begins to limit investments in Treasury, which in the current conditions for the US government is equivalent to bankruptcy.

A representative delegation will most likely try to conclude a deal. Trade restrictions against China will not be introduced and China, in turn, will continue to buy into the US national debt. In the current conditions, the deal can be arranged by all parties. It is possible that we are seeing the purchase of US dollars in these seemingly unfavorable conditions with the most informed market participants who are preparing for the planned results of the deal. The influx of Chinese capital into the US debt market will cause a sharp drop in yields and a rise in the value of bonds, which will provoke strong demand for the dollar.

Thus, the growth of the dollar may be due to political rather than economic reasons. On Friday, preliminary data on US GDP in Q1 will be published. A slowdown is expected in Q4. The GDPNow model from the Federal Reserve Bank of Atlanta insists on a 2% growth.

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At the same time, a significant decrease in the index of spending on personal consumption is expected. This is a key indicator of consumer demand, which determines, among other things, the level of tax collection. Trends indicate a deterioration, which will lead to a decrease in budget revenues and an increase in the deficit, as we discussed in detail in the previous review. These factors should put pressure on the dollar. However, as we see, it ignores macroeconomic factors, completely focusing on geopolitical factors.

The first results of the talks will be known on Saturday and therefore until the end of the week, the demand for the dollar will increase. Against the yen, the dollar will test the resistance level at 110.48. For the euro, it is the key support level of 1.2150 which will most likely not stand. Meanwhile, gold may fall below the level of 1320 per ounce.

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Burning forecast 04/26/2018

Burning forecast 04/26/2018

EURUSD: The decisive day for the euro - the European Central Bank.

Today will be the ECB meeting. The decision will be made public at 111:45 AM London time, the press conference of the head of the ECB Draghi at 3:30 PM London time

Changes are not expected. However, the ECB is on a campaign that it is impossible to completely exclude surprises - for example, they can raise the deposit rate from the current minus 0.4%. Or call the completion date of QE. Or something else. In this case, a sharp sharp jump in the euro against the down trend is possible.

Our positions:

Sell from 1.2240-1.2260, stop at 45 points, the profit is 1.2200.

The complete cancellation of the trend is 1.2300.

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Ichimoku cloud indicator analysis of USDX for April 26, 2018

The Dollar index is making higher highs. The price remains in a bullish trend above the Ichimoku cloud. There is a warning bearish divergence sign by the RSI. A deeper pullback maybe towards 90 could come very soon. Bulls need to be cautious.

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Black lines - triangle pattern

Blue lines - bearish divergence

The Dollar index is way above the Ichimoku cloud. The trend is bullish in the short-term as long as the price is at 90. This is also my line in the sand for the bullish scenario. Short-term support is at 91 by the 4-hour tankan-sen. Next support is at 90.60 by the kijun-sen. We can still make a higher high towards 91.70 which is our target for so long, but bulls need to be very careful especially if the RSI doesn't confirm the new highs. Dollar bulls should start thinking of decreasing exposure as a deeper pullback towards 90 is now highly probable.

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Ichimoku cloud indicator analysis of Gold for April 26, 2018

Gold price, as expected, made a new lower low yesterday. The price remains in a bearish trend as it is still below the 4 hour and Daily cloud. However, we have some bullish divergence signs. This implies that maybe it is time for bears to take some profits. Gold has pulled back towards the upper boundary of our target area and could start a new upward move soon.

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Red lines - trading range

Blue lines - bullish divergence

Despite the new low, the RSI did not confirm it. This is a first bullish divergence. A bounce towards $1,328-30 could be seen today. Resistance is at $1,331. A break above it could open the way for a bigger bounce towards $1,340. It is important to see if a new lower low will provide with a third divergence in the RSI. If this happens, we are looking very actively for opening long positions.

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Bitcoin analysis for 26/04/2018

The National Audit Office of the People's Republic of China is considering blocking the problem of its current infrastructure described as an "endless cycle of data storage and management," reads the announcement published on the official website. This office is responsible for the control of all government-related financial transactions and the management of a centralized data center that stores the data of each subordinate audit office in the country, at provincial and municipal level. The difficulties that need to be faced in this situation are the "infinite expansion of the required hardware and software for the data center" in order to manage a huge amount of centralized data, as well as a complex and demanding staff system.The article proposes a solution using Blockchain that uses "distributed node consensus algorithms to generate and update data and encryption and decryption algorithms to secure data and access", which would significantly reduce the government's workload. Each subordinate audit office would be assigned as a single node with equal rights and obligations in the collection, maintenance, and management of data. The main data center would only save time stamps and supervise the confidentiality and legality of data operations of subordinate auditors. The article also draws attention to the possibility of using intelligent contracts to automate data management processes.

Let's now take a look at the Bitcoin technical picture at the H4 time frame. The Dark Cloud Cover pattern that emerged after the price has hit the level of 61% Fibo at $9,607 resulted in a drop towards the local low at the level of weekly pivot at $8,617. In the current situation, it is worth to keep an eye on the level of $8,355, which is an invalidation level for the main impulsive count. In a case of a clear breakout below this level, the recent move up will be labeled as a three wave corrective pattern and this indicates another slide towards the lower support levels at $,7442 and below.

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Trading plan for 26/04/2018

The strength of USD remains the main trading theme of this week, even if overnight trading session brings modest rebound. EUR/USD remains well below 1.2180, USD/JPY stopped at 109.30. NZD continues to be the weakest, falling to 0.7060. Yields of 10-year US bonds this morning are at 3.0240 percent.In addition, the market participants still have several hours of calm trade waiting for the ECB decision.

On Thursday 26th of April, the main event of the day is the European Central Bank interest rate decision which is scheduled at 01:30 pm GMT. The other important data are Durable Goods Orders and Unemployment Claims from the US and Trade Balance data from New Zealand.

Crude Oil analysis for 26/04/2018:

Crude oil inventories grew last week by 2.17m bbl, or two times more than reported in the API report yesterday (1.1m bbl). Analysts' forecasts, whose median showed a drop of 1.27 million barrels, turned out to be completely wrong. Petrol inventories increased by 884k barrels, while stocks of distillates dropped by 2.61m barrels. Today's oil prices are rising again as speculation intensifies that the US will bring back Iran's sanctions. Evidence of strong demand and declines in extraction in Venezuela are factors that help in growth. WTI oil grows by 0.5 percent. over 68.3 USD.

Let's now take a look at the Crude Oil technical picture at the H4 time frame. The market is still trading close to the recent swing high at the level of 69.55. Nevertheless, the intraday technical resistance at the level of 68.46 has not been violated yet, so the rally might be capped around this level and consolidate further. The nearest support is seen at the level of 67.11, 67.11 (50% Fibo) and 66.86. The momentum is still hovering around its fifty level, indicating neutral market conditions.

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Gold fell under the crossfire

After the unsuccessful attempt to breakthrough the upper border of the medium-term trading range of $ 1300-1360 per ounce, the gold collapsed downwards on an unfavorable external background. The topic of the trade war in the context of rapid negotiations between Washington and Beijing no longer provides support for safe havens, while the shift in investors' interest in tightening monetary policy of the Federal Reserve extended a helping hand to the rates of the debt market and the US dollar. Precious metals reacts sensitively to the behavior of these assets: the strengthening of the US currency makes imports in the largest consumer countries of the physical asset more expensive. At the same time, non-yielding gold is not able to adequately compete with treasury bonds in the event of an increase in yield.

Dynamics of the yield of US and gold bonds

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The growth of rates in the 10-year American debts above the psychologically important level of 3% to the maximum level since the beginning of 2014 has become a real catastrophe for the "bulls" of XAU/USD. Moreover, increasing the attractiveness of bonds leads to the diversification of investment portfolios in their favor, so the cost of servicing ETF products is even more expensive. But in April, according to Commerzbank, the reserves of specialized funds increased by 53 tons, which is equivalent to all inflows for the first quarter. Uncertainty about the US-China trade conflict, geopolitical problems in the Middle East and the reluctance of the US dollar to strengthen in response to the Fed's "hawkish" rhetoric have inflated the demand for these assets, but at the end of April the external background has radically changed. This can lead to loss of the ETF.

In general, it seems that 2015-2016 has returned, when rumors about the normalization of the monetary policy of the Fed pushed up the USD index. In April, the chances of four federal funds rate increases in 2018 increased from less than 30% to almost 50%, which is one of the main drivers of growth in Treasury yields. The second is the increase in inflation expectations under the influence of the Brent rally to $75 per barrel.

Not the least role in the correction of the USD index is the weakness of the euro on the eve of the meeting of the Governing Council. The ECB is concerned about the impact of the revaluation of the single European currency and trade conflicts on the eurozone economy. The latter lost steam in the first quarter, however, its gradual recovery during the rest of the year will return to the market rumors about the normalization of the ECB monetary policy and will help restore the EUR/USD position. Gold will be able to benefit from this fact due to its high correlation with the US dollar.

Technically there is a retest of the lower border of the upward trading channel. If the "bulls" manage to return gold quotes into it and consolidate above the resistance at $1336 per ounce, the risks of recovery of the upward trend will increase. On the contrary, if the buyers do not succeed, the peak of the precious metal in the direction of targeting by 88.6% in the pattern of the "Shark" is likely to continue.

Gold, daily chart

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Trading plan 04/25/2016

Trading plan 04/25/2016

General picture: Markets are being rebuilt towards the dollar.

Gradually formed a general movement in favor of the US dollar.

The reasons: An increase in the rate of the Fed and the growth of yields on US securities causes the inflow of capital into the United States.

The dollar is rising to yen, pound, Australian, and euro.

On Wednesday, a stoppage day is possible. The important news will be released on Thursday (ECB and news on the US economy).

More likely the dollar continues to grow.

GBP / USD:

Sell for the breakthrough of 1.3920 with a target of 1.3700.

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Burning forecast 04/25/2018

Burning forecast 04/25/2018

EURUSD: We are waiting for the continuation of the decline.

On Tuesday, the euro organized a small correction and looks ready to continue the trend down.

Perhaps Wednesday will be the "stand still" day - because the important news tomorrow is April 26 (ECB).

Sell from 1.2260 or a breakthrough 1.2180 down. Stop 45 points, profit 1.2000.

The signal of canceling the downward trend is an increase of 1.2300 and higher.

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Technical analysis of USD/JPY for April 25, 2018

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USD/JPY is expected to trade with bullish outlook. The pair is rebounding from 108.50 (the low of April 24) and is challenging both 20-period and 50-period moving averages. The relative strength index broke above the neutrality level at 50, calling for continuation of the bounce. Hence, as long as 108.75 is not broken, look for a re-test of 109.80. A break above this level would trigger a new rise to 110.

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 108.75, take profit at 109.80.

Resistance levels: 109.80, 110.00, and 110.35

Support levels: 108.50, 108.15, and 107.50.

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Technical analysis of USD/CHF for April 25, 2018

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Our first target which we predicted in previous analysis has been hit. USD/CHF is still trading on upside and expected to continue the movement. The pair is likely to trade with bullish bias above 0.9790. The pair stands firmly above its horizontal support at 0.9790, which should limit any downside room. The relative strength index is mixed to bullish above its neutrality area at 50. Last but not least, the process of higher highs and lows remains intact, which should confirm a positive outlook. To conclude, as long as 0.9790 is not broken, an advance to 0.9880 and 0.9915 in extension is likely .

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 0.9790, take profit at 0.9880.

Resistance levels: 0.9880, 0.9915, and 0.9960

Support levels: 0.9770, 0.9745, and 0.9700.

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Intraday technical levels and trading recommendations for NZD/USD for April 25, 2018

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The price zone of 0.7320-0.7390 stood as a significant supply zone during the recent bullish pullback. The bulls failed to execute a successful bullish breakout above 0.7400 during the previous week's consolidations.

The NZD/USD pair had been trapped between the price levels of 0.7170 and 0.7350 until a bearish breakdown of 0.7200 occurred yesterday.

Since April 13, significant bearish pressure has been applied. This probably turns the short-term outlook for the NZD/USD pair into bearish giving significance to the multiple-top reversal pattern.

That's why, a bearish breakdown of 0.7220-0.7170 (neckline zone) was needed to confirm the depicted reversal pattern. Bearish projection target would be located around 0.7050 and 0.7000.

The bearish scenario needs an obvious bearish breakdown below 0.7050 to maintain significant bearish momentum towards 0.7000 and 0.6890.

On the other hand, the price zone of 0.7220-0.7170 (neckline zone) stands as a significant supply zone to be watched for a valid SELL entry if any bullish pullback occurs.

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Intraday technical levels and trading recommendations for EUR/USD for April 25, 2018

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Daily Outlook

The EUR/USD pair remains trapped between the price levels of 1.2200 and 1.2500 until a breakout occurs in either directions.

Daily persistence above 1.2470-1.2500 was needed to confirm the recent bullish flag continuation pattern with projected targets around the price level of 1.2750.

However, significant signs of bearish reversal were manifested around the price levels of 1.2400.This was manifested in the bearish engulfing daily candlestick of April 20.

The short-term outlook turns to become bearish as long as the depicted uptrend remains broken to the downside.

The depicted Multiple-Top pattern needs a bearish breakdown of the level of 1.2200 to be achieved on a daily basis. The Bearish Projection target would be located around 1.2070-1.1990.

Trade Recommendations:

Short-term traders can wait for a pullback towards (1.2315) to have a SELL trade. S/L should be placed just above Friday's high (1.2365). T/P levels to be located around 1.2195 and 1.2080.

Risky traders can wait for bearish closure below 1.2190 as a valid SELL signal. T/P levels should be located around 1.2070-1.1990.

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