Fundamental Analysis of AUD/JPY for May 11, 2018

AUD/JPY has been quite impulsive with the bullish gains since it bounced off the support area of 80.50-81.80. There has been certain volatility in this pair as both currencies in this pair has been struggling for gains amid mixed economic reports.

Today, Australia's Home Loans report was published with a greater deficit to -2.2% from the previous value of -0.2% which was expected to be at -1.9%. The worse economic report did not quite impact the gains of AUD against JPY while JPY has found support from economic reports today.

On the JPY side, today M2 Money Stock report was published with an increase to 3.3% from the previous value of 3.1% which was expected to be at 3.2%. Despite the positive economic report, JPY failed to gain momentum over AUD gains which indicates a change in the current market sentiment on the pair.

As for the current market scenario, AUD is expected to gain further against JPY in the coming days until Australia comes up with better economic reports before the AUD Employment Change and Unemployment Rate reports to be published in the coming days.

Now let us look at the technical view. The price is following a bullish trajectory with the gains which has surpassed the dynamic level of 20 EMA with a daily close. As for the current volatility in the market, the price is expected to push higher against the dominant bearish trend of the market and proceed higher towards 84.50 resistance area in the coming days. As the price remains above 80.50 with a daily close, further bullish pressure is expected in this pair.

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Euro buyers are waiting for a new wave of growth

The European currency managed to strengthen its positions against the US dollar and the British pound, which led to the formation of a small upward correction. The absence of important fundamental statistics on the American economy forces traders to refrain from new long positions in the US dollar after the large growth that has been observed over the past three weeks.

From the data released yesterday afternoon, we can only note the increase in tax revenues to the U.S. government. This happened due to an increase in income tax for individuals.

According to the report of the US Treasury, US government revenues increased by 12% in April 2018, to 55 billion US dollars compared to the same period last year.

The positive balance of the budget in April was $ 214.3 billion, but this is not enough, even to cover the current budget deficit, which from October 2017 to April 2018 amounted to $ 385.4 billion. There was an increase of 12% compared with the same period last year.

As for the technical picture of the EURUSD, the buyers of the European currency coped with the task set for this week and managed to return to the resistance level 1.1890, which is now forming. While the trading of risk assets is above this range, one can expect to maintain an upward correction potential at 1.1980 and 1.2020. 1.1980, the pressure on the euro may again increase significantly at the beginning of the next week, which will lead to new monthly lows of 1.1760 and 1.1700.

Yesterday, the Australian dollar also managed to regain a number of positions against the US dollar. A good news for the Reserve Bank of Australia was the report on the number of approved housing loans.

According to the Australian Bureau of Statistics, the number of approved housing loans in Australia fell by 2.2% in March this year compared with February. This happened because of the reduction in the issuance of loans to investors. Economists had expected a drop in the number of loans by 1.8% compared to the previous month.

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It should be recalled that the housing market in Australia is under the scrutiny of the regulator, as in the rapid price increase of the Australian households.

In total, the volume of approved housing loans related to investment fell by 9.0% compared to February.

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Trading plan for the European session of GBP / USD pair on May 11

To open long positions for GBP / USD pair, you need:

It is best to consider the new long positions in the pound after breaking through and fastening at the level of 1.3537, which will lead to a second return to the upper channel boundary area of 1.3613, where fixing profits are recommended. In the case of a drop in the morning, it is best to go back to purchases after updating the support level of 1.3422 or on a rebound of 1.3366.

To open short positions for GBP / USD pair, you need:

While the trade is below the resistance level of 1.3537, the pressure on the pound will be maintained. After which, it will lead to a sale to the area of yesterday's low at 1.3464 with its renewal of the area of 1.3422, where fixing profits are recommended. In the case of growth above 1.3537 in the morning, it allows selling the pound on the rebound from 1.3613.

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Description of indicators

  • MA (average sliding) 50 days - yellow
  • MA (average sliding) 30 days - green
  • MACD: fast EMA 12, slow EMA 26, SMA 9
  • Bollinger Bands 20
The material has been provided by InstaForex Company - www.instaforex.com

Wave analysis of the EUR / USD currency pair for May 11, 2018

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Analysis of wave counting:

In the course of yesterday's trading, the EUR/USD pair continued the development of the upward movement that began on the eve and added almost 100 pp in price, reaching the level of 1.1945 in the afternoon. Thus, the emerging wave situation and the spent ratio (1.618 Fibo) between the dimensions of waves a and c, in B, in (C) suggest that the currency pair made another attempt to go into the stage of formation in generating the first wave in the future wave d, in B, in (C). At the same time, the currency pair retained the potential of further complicating the internal wave structure of the wave c, in B, in (C). At the same time, the currency pair retained the potential for further complicating the internal wave structure of the wave c, in B, in (C) and the resumption of a decline in quotations at least to the level of the 18th figure.

Goals for sales:

1.1828 - 161.8% by Fibonacci

1.1807 - 685.4% by Fibonacci

Goals for shopping:

1.1931 - 523.6% Fibonacci retracement

1.2000

General conclusions and trading recommendations:

The assumed wave c, in B, in (C) has completed its construction. Thus, it is now preferable to purchase within the limits of the wave d, in B, in (C) with targets located about 20 figures. I recommend going back to sales after a successful attempt of a breakout on the mark of 11828, as this will mean the complication of the wave s, in B, in (C) with targets of about 17 figures. The material has been provided by InstaForex Company - www.instaforex.com

Trading plan for the European session of EUR / USD pair on May 11

To open long positions for EUR / USD pair, you need:

A more acceptable level for purchases of the European currency today is located in the support range 1.1870-1.1876. The formation of a false breakout in that range will be a good signal in the opening of long positions in the euro in terms of a breakout and consolidation above the resistance of 1.1927, from which one can expect to update the new highs in the areas of 1.19175 and 1.2019, where fixing profits are recommended.

To open short positions for EUR / USD pair, you need:

Failure to consolidate and return to the level of 1.1927 will be a good signal in the opening of new short positions in the euro in terms of declining and testing a new support level 1.1876, from which one can expect to update the new highs in the areas of 1.19175 and 1.2019, where fixing profits are recommended.

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Description of indicators

  • MA (average sliding) 50 days - yellow
  • MA (average sliding) 30 days - green
  • MACD: fast EMA 12, slow EMA 26, SMA 9
  • Bollinger Bands 20
The material has been provided by InstaForex Company - www.instaforex.com

Daily analysis of EUR/JPY for May 11, 2018

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Overview

The EUR/JPY pair failed to touch the first positive target at 131.00 yesterday. The price made a new negative move as appears on the chart. The price stability above the key support of 129.30 reinforces our bullish overview for the short term. We are waiting until the price breaches 131.00 level to open the way for more upward targets that start at 132.20. We notice a stochastic's rally above 50 level to decrease the negative pressures on the price and provide the price with a new chance to gather the positive momentum until the required breach is fulfilled. The expected trading range for today is between 129.80 and 131.00

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Daily analysis of Gold for May 11, 2018

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Overview

The Gold price resumes its positive trading to move away from 1316.48 level which supports the continuation of our bullish overview efficiently in the upcoming sessions, waiting to target 1335.40 level initially, reminding you that it is important to hold above 1316.48 to continue the expected rise. The expected trading range for today is between 1310.00 support and 1335.00 resistance.

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Daily analysis of Silver for May 11, 2018

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Overview

The Silver price provided negative trading yesterday to approach the sideways range resistance at 16.80, and the price still confined inside this range that its support line located at 16.15, noting that stochastic negativity might push the price to test the mentioned support in the upcoming sessions. In general, the sideways range will remain dominant on the intraday trading until the price manages to breach one of the above-mentioned levels, noting that the details of the expected targets after the breach are explained in our last report. The expected trading range for today is between 16.45 support and 16.90 resistance.

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NZD/USD Intraday technical levels and trading recommendations for for May 11, 2018

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The price zone of 0.7320-0.7390 stood as a significant supply zone during a 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 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 considerable 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 target levels around 0.7050 and 0.7000 have been achieved already.

The bearish scenario needs obvious bearish persistence below 0.7050 to maintain significant bearish momentum towards 0.6860 and 0.6820. That's why, the price level of 0.7050 is currently considered a key-level for the NZD/USD bears.

Any bullish breakout above the price level of 0.7050 hinders a further decline, allowing a bullish pullback to occur towards 0.7170-0.7220.

On the other hand, conservative traders can wait for a bullish pullback towards the price zone of 0.7220-0.7170 (a neckline zone and significant supply zone) for a valid SELL entry. S/L should be placed above 0.7260.

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Intraday technical levels and trading recommendations for EUR/USD for May 11, 2018

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Daily Outlook

The EUR/USD pair had been trapped between the price levels of 1.2200 and 1.2500 until bearish breakout occured recently.

Significant signs of a 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 become bearish as long as the EUR/USD pair keeps trading below the broken uptrend as well as the lower limit of the depicted consolidation range remains broken.

Bearish persistence below the price level of 1.2200 allowed further bearish decline towards the price levels of 1.1990 and 1.1880.

As mentioned, the price zone (1.1850-1.1750) offered significant bullish rejection and a short-term bullish pullback for intraday traders. Target levels should be located around 1.2100 and 1.2160.

Conservative traders should wait for a bullish pullback towards 1.2190-1.2200 for a valid low-risk SELL entry.

However, if bearish momentum dominates, bearish persistence below 1.1700-1.1750 (zone of previous daily lows) will be needed to enhance further bearish decline towards 1.1400 (the previously mentioned monthly key-level).

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Fundamental Analysis of NZD/USD for May 11, 2018

NZD/USD has been in non-volatile impulsive bearish pressure recently which was intervened with an impulsive bullish pressure yesterday, leading to certain bearish rejection in the daily candle. The recent weak USD economic reports lead to certain impulsive bullish pressure in the pair, whereas today's positive NZD economic reports helped the currency to extend the lead.

Today, NZD Business NZ Manufacturing Index report has been published with an increase to 58.9 from the previous figure of 53.1 and FPI report has been published with a decrease to 0.1% from the previous value of 1.0%. Though the results were mixed in nature, but a significant increase in Business NZ Manufacturing Index helped the currency to sustain the recent bullish momentum.

On the USD side, after the worse CPI economic reports published recently, today, Import Prices report is going to be published which is expected to increase to 0.5% from the previous value of 0.0%, Prelim UoM Consumer Sentiment report is expected to decrease to 98.4 from the previous figure of 98.8, and Prelim UoM Expectation is expected to increase from the previous value of 2.7%.

As of the current scenario, NZD is expected to gain some momentum over USD, following the recent positive economic reports which is expected to extend its gains in the coming days. Until USD fails to provide better economic report to continue its bearish momentum, NZD is expected to gain further momentum in future.

Now let us look at the technical view. The price has been quite impulsive with the break below 0.7150 which is currently expected to retest in the coming days, before continuing the bearish trend with target towards the 0.68 support area. The bearish bias is currently quite dominant, but as per yesterday's bearish rejection in the daily candle, certain bullish intervention is expected in this pair. As the price remains below 0.7150 with a daily close, the bearish bias is expected to continue in this pair.

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Analysis of Silver for May 11, 2018

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Recently, Silver has been trading upwards. As I expected, the price tested the level of $16.74. According to the H4 time - frame, I found a successful breakout of the bullish flag in the background, which is a sign that buyers are in control. I also found a hidden bullish divergence on the RSI oscillator, which is another sign of strength. My advice is to watch for potential buying opportunities. The upward targets are set at the price of $17.10 and at the price of $17.30.

Resistance levels: R1: $16.81R2: $16.92R3: $17.10 Support levels: S1: $16.54S2: $16.35 S3: $16.28

Trading recommendations for today: watch for potential buying opportunities.

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EUR/USD analysis for May 11, 2018

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Recently, EUR/USD has been trading upwards. The price tested the level of 1.1946. According to the H1 time - frame, I found a broken short-term downward channel, which is a sign that selling looks risky. I also found a potetnial leading diagonal in creation and hidden bullish divergence on the RSI oscillator in the background, which is a sign of strength. My advice is to watch for potential buying opportunities. The upward target is set at the price of 1.2000.

Resistance levels: R1: 1.1960R2: 1.2006R3: 1.2065 Support levels: S1: 1.1857S2: 1.1798 S3: 1.1753

Trading recommendations for today: watch for potential buying opportunities.

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Fundamental Analysis of AUD/USD for May 11, 2018

AUD/USD has been quite impulsive with the bullish gains recently. As a result, the price is hovering above 0.75 after breaking below it with a daily close. The pair is trading with volatility after being dominated by USD since the price broke below 0.7750 area with a daily close.

AUD has been struggling for gains amid recent economic reports which made AUD to give in to stronger USD. Today, Australia's Home Loans report was published with a greater deficit to -2.2% from the previous value of -0.2% which was expected to be at -1.9%. Despite the worse-than-expected economic report published today, AUD has managed to gain momentum over USD because of the recent disappointing CPI report from the US. The market sentiment seems to be in favor of AUD in this case that is expected to extend further in the coming days.

On the USD side, today Import Prices report is going to be published which is expected to increase to 0.5% from the previous value of 0.0%, Prelim UoM Consumer Sentiment report is expected to decrease to 98.4 from the previous figure of 98.8, and Prelim UoM Expectation is expected to increase from the previous value of 2.7%.

As for the current scenario, the forecasts for the USD economic reports are quite mixed in nature which might lead to certain indecision and volatility upon release today. As for the current gains on the AUD side today, further bullish momentum is expected in this pair until the US comes up with better economic readings to support USD.

Now let us look at the technical view. The price is currently quite impulsive with the bullish gains trying to push above 0.7550. Certain Bullish Divergence is being spotted in the process which is expected to lead to further bullish momentum in this pair with a target towards 0.7700-50 area from where the price may retreat back lower in the future. Though the dynamic level of 20 EMA may work as a strong resistance for the price but against the impulsive bullish pressure it had already evolved, further bullish pressure is expected as the price remains above 0.7500 with a daily close.

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Technical analysis of USD/JPY for May 11, 2018

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USD/JPY is expected to post some further upside targets. The pair is under pressure below its key resistance at 109.60, which should limit the upside potential. The 20-period moving average turned downward and crossed below the 50-period one. The relative strength index is below its neutrality level at 50 and lacks upward momentum. Therefore, as long as 109.60 is not surpassed, look for a return with targets at 109.15 and 108.95 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: SELL, stop loss at 109.60, take profit at 109.15.

Resistance levels: 109.60, 110.00, and 110.35

Support levels: 109.15, 108.95, and 108.50.

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Technical analysis of USD/CHF for May 11, 2018

USD/CHF is expected to trade with a bearish outlook. The pair remains weak below its nearest horizontal resistance at 1.0040. Both the 20-period and 50-period moving averages are turning down, and call for a further decline. Additionally, the relative strength index is negative below its neutrality area at 50. Therefore, as long as 1.0040 is not surpassed, likely decline to 0.9975 at first. A break below 0.9975 would trigger a drop towards 0.9950

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: SELL, stop loss at 1.0040, take profit at 0.9975.

Resistance levels: 1.0060, 1.0090, and 1.0120

Support levels: 0.9975, 0.9950, and 0.9900

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Bitcoin analysis for May 11, 2018

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The Bitcoin (BTC) has been trading downwards. As I expected, the price tested the level of $8.640 and met my yesterday's target. In less than a week on May 15, the Bitcoin Cash (BCH) network will be upgrading the base block size from 8MB to 32MB, as well as re-enabling and adding some OP_Codes to the codebase. With just days left there are a few things BCH holders and full node operators should know before the upgrade takes place this coming Tuesday. Technical picture on Bitcoin looks bearish. Trading recommendations: According to the H1 time-frame, I found a broken bearish flag in the background, which is a sign that sellers are in control. In my opinion wave C is still in creation and my advice is to watch for selling opportunities. The downward targets are set at the price of $8.600 and at the price of $8.390.

Support/Resistance

$8.793– Intraday resistance $8.600– Intraday support $8.600 – Objective target 1$8.390 - Objective target 2

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

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Technical analysis of NZD/USD for May 11, 2018

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NZD/USD is expected to trade with a bullish outlook. The pair has rebounded on its horizontal support at 0.6935, which should limit any downward attempts. The RSI has just landed on its neutrality area at 50% and is turning up. Last but not least, the rising 50-period moving average acts as a strong support role. To conclude, as long as 0.6935 is not broken, likely advance to 0.7000 and 0.7025 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: 0.7000, 0.7025, and 0.7075.

Support levels: 0.6900, 0.6870, and 0.6835.

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Technical analysis of GBP/JPY for May 11, 2018

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GBP/JPY is under pressure. The pair remains weak below its nearest horizontal resistance at 148.55. Both the 20-period and 50-period moving averages are turning down, and call for further decline. Additionally, the relative strength index is negative below its neutrality area at 50. Therefore, as long as 148.55 is not surpassed, likely decline to 147.40 at first. A break below 147.40 would trigger a drop towards 1.47.00.

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: 149.25,149.65, and 150.20

Support levels: 147.40, 147.00, and 146.20

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Indicator analysis. Daily review of GBP / USD pair on May 11, 2018

On Friday, there is no expected strong calendar news and the market will work on technical analysis.

Trend analysis (Figure 1).

On Thursday, the price continued to move downward, testing the retracement level of 38.2%. On Friday, an upward movement is possible. A complex analysis will more accurately determine where the price will go next.

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Fig. 2 (daily chart).

Complex analysis:

- Indicator analysis - up;

- Fibonacci levels - up;

- volumes - upwards;

- candlestick analysis - up;

- trend analysis - down;

- Bollinger lines - down;

- Weekly schedule - down.

General conclusion:

On Friday, it is possible to move upward with the first target of 1.3616 on the upper fractal.

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Indicator analysis. Daily review of EUR / USD pair on May 11, 2018

On Friday, the following strong calendar news comes out: 13.15 London time. UR, speech by the head of the ECB Draghi.

Trend analysis (Figure 1).

On Thursday, the price made a backward movement going upward, a considerable role to this was added by the news. On Friday, the upward movement may continue. The first target of 1.1996 is the slope level of 23.6%. A complex analysis will more accurately determine where the price will go next.

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Fig. 2 (daily chart).

Complex analysis:

- Indicator analysis - up;

- Fibonacci levels - down;

- volumes - upwards;

- candlestick analysis - up;

- trend analysis - down;

- Bollinger lines - up;

- Weekly schedule - down.

General conclusion.

On Friday, the upward movement may continue with the first target of 1.1996 and the recession rate of 23.6%.

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Trading plan 11/05/2018

Trading plan 11/05/2018

The general picture: A lull in the market.

There is a local pause in the markets. The news on Iran's withdrawal from the nuclear deal with the US has somewhat receded - the solidary refusal of the US allies to support Trump on this issue has cooled the topic. On the other hand, the exchange of blows between Iran and Israel keeps everyone in suspense, but for now, it is on a pause.

News on the US economy also does not give impetus. There is no reason to expect an acceleration in the rate increase of the dollar.

It is likely that we will see a shift from a trend of dollar strengthening to a consolidation.

GBP / USD pair: Expect a range.

We are buying this pair from the level of 1.3460.

We are selling this pair from the level of 1.3770.

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The dollar declined, but for how long?

Published on Thursday, data on consumer inflation in the US proved to be a good reason for fixing the previously received profits. However, it should be noted that they did state the fact of the presence of inflationary pressure, which remained in annual terms.

According to the presented data, the CPI, in annual terms, rose by 2.5%, which was in line with the growth forecast of 2.5% against the increase of 2.4% a year earlier. The monthly indicator for the month of April added only 0.2%, while an increase of 0.3% was expected. In March, the decrease was 0.1%. The base value of the consumer price index (CPI) kept the growth dynamics at 2.1% year by year, while it was assumed that the index will grow by 2.2%. Last month, the indicator slowed down its growth rate and added 0.1%, while the increase was expected to be the same as in March, by 0.2%.

After the publication of data on the currency markets, the dollar began to decline. Most noticeably, it fell against the commodity currencies including the Russian ruble, the Canadian dollar, and the Norwegian krone, which is primarily explained by the strong growth in crude oil prices on the wave of the US withdrawal from the nuclear deal with Iran. This became a harbinger of the restoration of old economic and political sanctions in relation to this country and the declaration of new ones.

Prices for crude oil rose to the highs in 2014, and if the escalation of tension continues, then we can expect a probable continuation of the price increase. However, their further growth can be restrained by the promises of Saudi Arabia to fill the shortage of Iranian oil in the world market. In addition, at the OPEC + summit, which is expected to take place this month, it may be decided either to end the pact aimed at reducing oil production, or to start a smooth increase in production.

Back to the dollar, despite the fact that he it was under pressure on Thursday, we believe that after a corrective decline in this position will improve and it will resume growth, since the probability of another rate hike in June is extremely high.

Forecast of the day:

The EURUSD pair is consolidating below the level of 1.1940 after local growth on profit taking. It is likely that today it will remain in the range, if not overcome the mark of 1.1940, then it is possible to continue local growth.

The USDCAD pair also consolidates above the 1.2750 mark. In the focus of the market is the dynamics of oil prices. If they start to adjust, we should expect the pair to rebound to 1.2815. However, the resumption of growth will lead to a drop in price to 1.2690 after overcoming the level of 1.2750.

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Euro completed correction

EUR / USD

On Thursday, the expected correction of the euro on profit-taking by sellers occurred alongside the publication of Italy's positive indicators. Later this day, the slightly weaker forecasts of US inflation data will be release, which intensified this trend. In March, Italian Industrial Production added 1.2% (3.5% YoY vs. 2.5% YoY in February). In the US, the April CPI increased by 0.2% against the forecast of 0.3%, but retained an annual growth of 2.5%. The base CPI added 0.1% against the forecast of 0.2%, which maintained the index at its previous value on an annualized basis (2.1% YoY). The Core CPI is expected to grow by 2.2% YoY. The weekly report on the number of applications for US unemployment benefits showed 211 thousand against 219 thousand, and the released figure maintained a record low since 1969. The report on the federal budget execution for April showed a surplus of 214.3 billion dollars against the forecast of 201.2 billion dollars. Even the projected figure was the highest in the history of the United States, the published indicator exceeded this optimistic forecast. The US administration is scheduled to launch a media campaign on the success of Trump's reforms, even if the result was mainly from taxes for the past year.

Today, the euro area data does not come out. At 2:15 London time, ECB President Mario Draghi will speak on the topic of "The state of the Union: the 8th edition." Monetary policy (more precisely, its forecasts), probably will not be affected. In the US, the import prices for April will be issued, showing a forecast of 0.5% versus 0.0% in March. The US consumer confidence index from the University of Michigan in May is expected to drop slightly from 98.8 to 98.4.

We are expecting for the decline of the single European currency to 1.1780.

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

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Fractal analysis of the main currency pairs for May 11

Dear colleagues.

For the EUR / USD pair, we follow the formation of the initial conditions for the top of May 9. For the GBP / USD pair, we expect a correction to take place after the breakdown at 1.3614. For the of USD / CHF pair, we follow the formation of the downward structure from May 10. The potential for the top is limited by the level of 1.0056. For the USD / JPY pair, the continuation of the upward movement is expected after the breakdown of 109.96. For the EUR / JPY pair, the price is in correction and forms the potential for the top of May 8. For the GBP / JPY pair, the price forms the potential for the top of May 8.

The forecast for May 11:

Analytical review of currency pairs in the scale of H1:

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For the EUR / USD pair, the key levels on the scale of H1 are: 1.2060, 1.2031, 1.1985, 1.1947, 1.1894, 1.1867 and 1.1822. Here, the price forms the potential initial conditions for the top of May 9. The continuation of the upward movement is expected after the breakdown of 1.1947. In this case, the target is 1.1985. Near this level is the consolidation of the price. The breakdown at the level of 1.1985 should be accompanied by a pronounced movement towards the level of 1.2031. Upon the reaching this level, we expect the consolidation of the price. The potential value for the top is the level of 1.2060.

Short-term downward movement is possible in the area of 1.1894-1.1867. The breakdown of the last value will lead to the development of the the downward structure. In this case, the target is 1.1822.

The main trend is the formation of the upward potential of May 9.

Trading recommendations:

Buy: 1.1947 Take profit: 1.1983

Buy 1.1987 Take profit: 1.2030

Sell: 1.1892 Take profit: 1.1870

Sell: 1.1864 Take profit: 1.1825

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For the GBP / USD pair, the key levels on the scale of H1 are 1.3847, 1.3752, 1.3684, 1.3614, 1.3614 and 1.3482. Here, we expect a move towards correction. The upward movement is expected after the breakdown of 1.3614. In this case, the target is 1.3684. Short-term upward movement is possible in the area of 1.3684 - 1.3752. The breakdown of the last value will lead to movement. Here, the target is 1.3847. Upon reaching this level, the design of potential initial conditions for the top is possible.

For the downward movement, we have not yet determined the subsequent goals.

The main trend is a downward structure from April 17. We expect a correction.

Trading recommendations:

Buy: 1.3616 Take profit: 1.3682

Buy: 1.3684 Take profit: 1.3750

Sell: Take profit:

Sell: Take profit:

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For the USD / CHF pair, the key levels on the scale of H1 are: 1.0056, 1.0039, 0.9991, 0.9972, 0.9949 and 0.9933. Here, we follow the formation of a downward structure from May 10. The continuation of the downward movement is expected after the breakdown of 0.9991. In this case, the target is 0.9972. Near this level is the consolidation of the price. The breakdown at the level of 0.9972 should be accompanied by a pronounced movement towards the level of 0.9949. The potential value for the bottom is the level of 0.9933. Upon reaching this level, we expect a rollback to the top.

Short-term upward movement is possible in the area of 1.0039 - 1.0056. Further objectives for the top are not yet considered.

The main trend is the formation of a downward structure from May 10.

Trading recommendations:

Buy: 1.0040 Take profit: 1.0053

Buy: Take profit:

Sell: 0.9990 Take profit: 0.9974

Sell: 0.9968 Take profit: 0.9950

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For the USD / JPY pair, the key levels on a scale are: 110.82, 110.66, 110.20, 109.96, 109.56, 109.35, 108.99 and 108.70. Here, we follow the formation of the upward structure of May 4. The continuation of the upward movement is expected after the breakdown of 109.96. In this case, the target is 110.20. Near this level is the consolidation of the price. The breakdown at the level of 110.20 should be accompanied by a pronounced movement towards the level of 110.66. The potential value for the top is the level of 110.82. Upon reaching this level, we expect a pullback downwards.

Consolidated traffic is possible in the area of 109.56 - 109.35. The breakdown of the last value will lead to in-depth correction. Here, the target is 108.99. This level is the key support for the top of May 4.

The main trend is the formation of the upward structure of May 4.

Trading recommendations:

Buy: 109.96 Take profit: 110.20

Buy: 110.24 Take profit: 110.64

Sell: 109.30 Take profit: 109.05

Sell: 108.96 Take profit: 108.74

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For the CAD / USD pair, the key levels on the H1 scale are: 1.2886, 1.2863, 1.2815, 1.2787, 1.2751, 1.2701, 1.2660 and 1.2603. Here, we follow the development of the downward structure of May 8. The continuation of the movement downwards is expected after the breakdown of 1.2750. In this case, the target is 1.2701. The breakdown of this level will allow us to count on the movement towards the level of 1.2660. Near this level is the consolidation of the price. The potential value for the bottom is the level of 1.2603. From this level, we expect a rollback to the top.

Short-term upward movement is possible in the area of 1.2787 - 1.2815. The breakdown of the last value will lead to in-depth correction. Here, the target is 1.2863. The range of 1.2863 - 1.2886 is the key support for the downward structure from May 8.

The main trend is the downward structure of May 8.

Trading recommendations:

Buy: 1.2787 Take profit: 1.2813

Buy: 1.2817 Take profit: 1.2860

Sell: 1.2748 Take profit: 1.2705

Sell: 1.2698 Take profit: 1.2660

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For the AUD / USD pair, the key H1 scale levels are: 0.7635, 0.7587, 0.7569, 0.7547, 0.7507, 0.7488 and 0.7459. Here, we follow the formation of the upward structure of May 9. The continuation of the upward movement is expected after the breakdown of 0.7547. In this case, the target is 0.7569. In the area of 0.7569 - 0.7587 is the consolidation of the price. The potential value for the top is the level of 0.7635. The movement towards this level is expected after the breakdown of 0.7587.

Short-term downward movement is possible in the area of 0.7507 - 0.7488. The breakdown of the last value will lead to in-depth correction. Here, the target is 0.7460. This level is the key support for the upward structure.

The main trend is the formation of the upward structure of May 9.

Trading recommendations:

Buy: 0.7547 Take profit: 0.7569

Buy: 0.7590 Take profit: 0.7635

Sell: 0.7507 Take profit: 0.7488

Sell: 0.7485 Take profit: 0.7461

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For the of EUR / JPY pair, the key levels on the scale of H1 are: 131.64, 131.16, 130.62, 130.32, 129.70, 129.37, 128.91 and 128.62. Here, we follow the downward structure from April 24. At the moment, the price is in correction and forms the potential for the top of May 8. Short-term downward movement is possible in the area of 129.70 - 129.37. The breakdown of the last value should be accompanied by a pronounced movement towards the level of 128.91. In the area of 128.91 - 128.62 is the consolidation of the price and from here, we expect a rollback towards correction.

Short-term upward movement is possible in the area of 130.32 - 130.62. The breakdown of the last value will lead to in-depth correction. Here, the target is 131.16. This level is the key support for the downward structure. Its breakdown will lead to the formation of an upward structure. Here, the potential target is 131.64.

The main trend is the downward structure from April 24, the correction stage.

Trading recommendations:

Buy: 130.32 Take profit: 130.60

Buy: 130.66 Take profit: 131.16

Sell: 129.70 Take profit: 129.40

Sell: 129.33 Take profit: 128.95

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For the GBP / JPY pair, the key levels on the scale of H1 are: 149.81, 149.18, 148.67, 147.63, 146.88, 147.75 and 145.12. Here, we follow the local downward structure of April 26. At the moment, the price is in correction and forms the potential for the upward movement of May 8. The continuation of the downward movement is expected after the breakdown of 147.63. In this case, the target is 146.88. Near this level is the consolidation of the price. The breakdown of 146.85 should be accompanied by a pronounced downward movement. Here, the target is 145.75. The potential value for the bottom is the level 145.12. From this level, we expect a rollback towards correction.

Short-term upward movement is possible in the area of 148.67 - 149.18. The breakdown of the last value will lead to in-depth correction. Here, the target is 149.81.

The main trend is a local downward structure from April 26, the correction stage.

Trading recommendations:

Buy: 148.67 Take profit: 149.15

Buy: 149.22 Take profit: 149.75

Sell: 147.60 Take profit: 146.95

Sell: 146.85 Take profit: 145.90

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Technical analysis on USDX for May 11, 2018

The Dollar index as a very interesting but bearish candlestick pattern in the daily chart. An evening Doji star candlestick pattern has been formed in the daily chart, and with yesterday's red candlestick we have confirmation of the reversal. This reversal came as no surprise to us as we were prepared.

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The Dollar index is expected to move lower at least towards the 38% Fibonacci retracement at 91.80. So far, the price has made higher highs and higher lows while trading above the tankan-sen (red line indicator) of the Ichimoku cloud system. This support is at 92.60. This level was also mentioned in the previous analysis as a point when broken that selling will accelerate lower. I remain bearish the Dollar index.

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Everything in UK is in bad condition

GBP / USD

As expected in the previous forecast, the Bank of England showed excessive conservatism and deprived investors with the prospects for a rate hike in the coming months. The balance of votes for the rate increase remained unchanged since the last meeting by 2-7. Many expected for a shift towards 3-6. Economic indicators also came out worse than forecasts. Industrial production in March added 0.1%, as expected. But on an annual basis, the industrial production increased by 2.9% YoY against expectations of 3.1% YoY due to the downward revision of data for the previous months. The production volume in the construction sector lost 2.3% in the month against the forecast of -2.1%. In the manufacturing industry, compression was recorded at 0.1%. The commodity trade balance for March showed an expansion of the negative balance from -10.4 billion pounds (revised from -10.2 billion) to -12.3 billion pounds, while the forecast assumed a deterioration to -11.2 billion. As a result, the pound declined by 29 points. From a greater decline, the British pound saved the dollar, after the day fell 0.42%.

There are no expected economic news from the UK today. According to the United States, the import price index will be published (an increase of 0.5% is assumed) and the consumer confidence index from the University of Michigan in Mays shows a forecast at 98.4 against 98.8 earlier.

We are expecting the British pound at 1.3330 for several days.

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

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

Technical analysis on Gold for May 11, 2018

Gold price broke above the short-term resistance of $1,319-20. Gold is bouncing as expected. Any pullback towards $1,310 is a buying opportunity targeting $1,330 next. Trend has changed to bullish.

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Blue line -long-term resistance

Red line - long-term support

Black line - short-term resistance

Gold price is pulling back as a back test of the broken short-term resistance. Support is at $1,318 and next at $1,312. Resistance is at $1,322.50 and next at $1,332 which is our next target. Gold could be in the making of a longer-term low here, so I prefer to be bullish.

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The yen consolidates before growth

USD / JPY

The Japanese yen concentrates efforts in the technical range of 108.65-110.05 before further growth in the range of 110.85-111.10. Yesterday, the yen was declined by 32 points under the influence of the dollar, although stock indices showed growth and even the balance of payments. That is, there is a preparation for forces in the future. The US stock index S & P500 increased by 0.94%. The balance of payments takes into account the trillion yen to 1.77 trillion yen. The balance of payments excluding seasonal fluctuations increased from 2,076 trillion yen to 3,122 trillion. The forecast was 3.009 trillion.

Today, the money supply data showed an increase in the M2 aggregate by 3.3% YoY against the forecast of 3.2% YoY. The Japanese index Nikkei 225 gained 1.08%. During the Asian session We are looking forward to the yen's growth in the range of 110.85-111.10, but it is likely that the exit from this consolidation range will only occur on Tuesday. On Monday, the prices for Japanese corporate goods in the April assessment may drop to 2.0% from 2.1%, and in Tuesday, US retail sales are expected to grow by 0.4% in April.

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

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

Burning forecast 05/11/2018

Burning forecast 05/11/2018

EURUSD: Trade out of the range.

On Thursday, data on inflation in the US came out: inflation is growing, but very moderately. The euro rose on news, giving a signal to stop the downward trend.

Formed a local range within the boundaries of 1.1820 - 1.1950.

Potential breakthrough of 1.1950 upward with the target of 1.2050.

Buy the euro from 1.1950, stop at 1.1905, profit at 1.2050.

Alternative: Sell from 1.1820, stop at 1.1865, profit at 1.1720.

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Technical analysis of USD/JPY for May 10, 2018

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USD/JPY is expected to post some further upside targets. The pair broke above the upper boundary of Bollinger Bands, indicating the potential of upward acceleration. The upside momentum is further reinforced by the rising 50-period moving average. The relative strength index is locating at 60s, calling for a new upleg. Hence, as long as 109.30 holds on the downside, look for a new challenge with targets at 110.00 and 110.25 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 109.30, take profit at 110.

Resistance levels: 110, 110.25, and 110.55

Support levels: 109.15, 108.85, and 108.30.

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Technical analysis of USD/CHF for May 10, 2018

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USD/CHF is expected to trade with a bullish outlook. The pair resumed its upside momentum, and is now challenging its nearest resistance at 1.0060. Both the ascending 20-period and 50-period moving averages are below the prices, and should continue to push them higher. Last but not least, the relative strength index stands firmly above its neutrality area at 50. To sum up, as long as 1.000 is not broken, look for further advance to 1.0060 and 1.0090 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 1.0000, take profit at 1.0060.

Resistance levels: 1.0060, 1.0090, and 1.0120

Support levels: 0.9975, 0.9950, and 0.9900

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