Technical analysis of NZD/USD for May 22, 2018

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NZD/USD is expected to trade with a bearish outlook. The pair accelerated on the downside and is trading below its declining 20-period and 50-period moving averages. The relative strength index broke below its oversold level of 30, but has not displayed any reversal signal. To conclude, as long as 0.6975 is not surpassed, look for a drop to 0.6920 . A break below this level would trigger a further downside to 0.6900.

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 0.7050

Support levels: 0.6920, 0.6900, and 0.6850

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Wave analysis of EUR / USD for May 22. The Euro currency gets a chance to recover

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Analysis of wave counting:

The five-wave structure in the composition of wave c, 2, looks complete now. The pair yesterday, ideally having fulfilled a mark of 161.8%, has departed from the reached minimum by 80 percentage points. Thus, there were grounds to assume that the downward structure completed its construction. Nevertheless, the pair retains very high chances of complicating the internal wave structure of the wave 5, c, 2 with targets of about 1.1650 and about 16 figures. At the same time, the further development of the upward movement will lead to the conclusion that the tool is ready to construct an ascending set of waves.

The objectives for the option with sales:

1.1715 - 161.8% of Fibonacci

1.1649 - 200.0% of Fibonacci

1.1636 - 261.8% of the Fibonacci of the highest order

The objectives for the option with purchases:

1.1835 - 200.0% of the Fibonacci of the highest order

General conclusions and trading recommendations:

The assumed wave 5, c, 2 either completed its construction, or is close to completion. Therefore, I now recommend that in small volumes to form purchases within the framework of the future first wave in the extended 3 uptrend sections of the trend. A break of 1.1715 will lead to a more complicated wave 5, c, 2 and a resumption of sales with targets near the marks of 1.1649 and 1.1636, which corresponds to 200.0% and 261.8% of Fibonacci.

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Euro has a chance for growth

In view of yesterday's lack of important fundamental statistics, US dollar buyers failed to cope with the main task of breaking down and fixing below the key support levels in the area of monthly highs, and fixing profits led to the formation of an upward correction in risky assets.

The speech of the US Treasury Secretary Mnuchin on CNBC investors and traders took a positive view.

Mnuchin said that the US will cancel duties on Chinese goods for a total of $ 150 billion, but the US president can always return duties. The finance minister also believes that trade disagreements with China have never been a trade war, but the White House is still focused on the new North American Free Trade Agreement, which will be considered in the Congress.

From yesterday's data, we can only note the indicator of national activity calculated by the Federal Reserve Bank of Chicago, which grew in April this year compared with March. Growth was created by increasing production and employment. So, the index of national activity in April rose to +0.34 points against +0.32 points in March.

The representative of the Federal Reserve Bank of Bosnia, in general, was ignored by the market. Bostik noted that the Fed is very close to fulfilling its mandate regarding employment. He also noted the increase in inflation to a target level of 2%, which will probably exceed it for some time.

According to the representative of the Fed, the overall increase in wages remains moderate, but US GDP this year will grow by 2.5%.

The representative of the FRS, Harker, believes that the policy should not be included in the list of topics discussed at the meetings of the Committee on open market operations since the main task of the Federal Reserve is to create conditions for economic growth. He also said he supports two more rate hikes this year, but maybe three more. Doing this, according to Harker, should be done with caution.

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As for the technical picture of the EUR / USD pair, the key support level is in the range of 1.1750, and if the buyers manage to keep it in the next few days, then there is a possibility of a larger corrective growth in the resistance area 1.1820 and 1.1850.

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Overview of USD / JPY for the week of May 22 on simplified wave analysis

Wave picture of the chart D1:

The direction of the trend since December 2016 forms a bearish wave. The wave proportions have reached the minimum permissible level of elongation, but no completion signals have been observed so far.

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The wave pattern of the graph H1:

From the middle of February, the vector of price movement was replaced by an upward trend. Given the type of structure and the wave level of motion, the current wave in a larger model will take the place of correction.

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The wave pattern of the M15 chart:

Within the trend wave in recent weeks there has been a hidden bearish correction. It lacks the final part.

Recommended trading strategy:

Trading large periods of the schedule while it is better to refrain from transactions. Short-term employees have a good reason to make purchases at the end of the coming rollback.

Resistance zones:

- 113.30 / 113.80

Support zones:

- 110.20 / 109.70

Explanations to the figures: Simplified wave analysis uses a simple waveform, in the form of a 3-part zigzag (ABC). At each TF the last incomplete wave is analyzed. Zones show the calculated areas with the greatest probability of a turn.

Arrows indicate the wave counting according to the technique used by the author. The solid background shows the generated structure, dotted - the expected wave motion.

Attention: The wave algorithm does not take into account the duration of the tool movements in time. To conduct a trade transaction, you need confirmation signals from your trading systems!

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

Wave analysis of GBP / USD for May 22. The pound sterling continues to fall into the abyss.

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Analysis of wave counting:

During the yesterday's trading, the British pound continued its decline. However, from the point of view of wave analysis, the pair continues to build a downward wave, presumably wave a, 1, a new downward trend segment. Settlement targets are about 33 figures, from which the pair can start a withdrawal of quotations within the framework of constructing a correctional wave b, 2.

The objectives for the option with purchases:

1.3528 - 127.2% of the Fibonacci of the highest order

1.3555 - 200.0% of Fibonacci

The objectives for the option with sales:

1.3300 - 161.8% of the Fibonacci of the highest order

1.3300 - 261.8% of Fibonacci

General conclusions and trading recommendations:

The tool continues to complicate the internal wave structure of the assumed wave a, 1, of a new downtrend section of the trend. Therefore, I recommend selling the pair with a target located near the estimated mark of 1.3300, which corresponds to 161.8% and 261.8% of Fibonacci. An unsuccessful breakthrough attempt of the 33 figure will warn of the instrument's readiness to build the upward wave b and will serve as a good signal for closing sales and forming small purchases with targets of 1.3528 and 1.3555.

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The Governor of the Bank of England sees good prospects

The European currency rose in the first half of the day against the US dollar, but then the upward momentum slowed down in the region of large resistance levels, which I spoke about in more detail in my morning forecast.

Given the absence of an important fundamental statistic, it seems that the growth of the euro was due to the reaction of traders and investors to the fact that the new prime minister of Italy could be a person still far from politics, and without the populist views that many are so afraid of.

As it became known, the leading parties "Movement of Five Stars" and "League" put forward for the post of Prime Minister Giuseppe Conte. Conte is known as a scientist and a lawyer and has virtually no political experience. However, it is too early to say that he will become prime minister since the appointment of the president of Italy is required for his appointment.

As for the technical picture of the EUR / USD pair, the main task of the buyers of the European currency remains the breakthrough of resistance level 1.1820, above which it will be possible to speak with more confidence about the continuation of the upward correction in risky assets, with the renewal of the highs of 1.1850 and 1.1890.

The British pound rose strongly against the US dollar after a representative of the Bank of England said interest rates would gradually increase over the next few years, even though at a May meeting, committee members had predicted that interest rates would rise slightly later. The representative of Bank of England is confident that you can wait a few more months without further problems before further tightening monetary policy.

With this approach, and the head of the Bank of England, Mark Carney. In his opinion, it is necessary to wait for a little for the restoration of momentum before raising the rates. Signs of recovery of momentum may occur within a few months, which will correspond to the benchmarks of the Bank of England and will allow making certain conclusions in the direction of further increases in rates.

Data released on public sector borrowings in April this year, slightly affected the British pound, although slightly slowed his upward momentum.

According to the report of the statistics agency, net borrowing of the UK public sector in April this year fell by 1.1 billion pounds against the growth of 1.3 billion pounds for the same period in 2017. The net public sector demand for cash in the UK increased by only 3.7 billion pounds in April against 30.6 billion pounds a year ago.

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Everything can slow down the economic growth that the regulator so expects in the near future.

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Brent resets ballast

Quotations for futures for Brent once again approached the psychologically important mark of $ 80 per barrel, after Washington intimidated Iran with unprecedented economic sanctions in the history. The states are going to get full access to Tehran's nuclear program, and if this does not happen, strangle the country with various kinds of restrictions. For example, to impose a ban on the purchase of public debt or on other types of investments, the need for which for the Iranian oil industry is estimated by experts of the Financial Times at $ 100 billion. Sanctions risk decreasing the production of the second-largest producer in OPEC (2.4 million b / s) by 400 -1000 thousand b / s.

If, after the US withdrew from the nuclear agreement with Tehran in 2015, some speculators considered this factor to be backed up and rushed out of long positions, but now the market looks at the volume of actual supplies cuts that have already led to a fall in global black gold reserves to the lowest levels for the last 3.5 years. At the end of the five-day period, by May 15, the net-hedge funds of the North Sea variety decreased by 3.7%, to 548,555 contracts. The indicator falls for the fifth consecutive week.

Dynamics of speculative positions and quotations Brent

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In addition to Iran, Venezuela is experiencing problems, where Nicholas Maduro was able to hold the power in his hands. The West acknowledged the election results illegitimate, and the States imposed a ban on the purchase of the country's national debt. The money raised in this way was used to modernize the oil industry, and if they do not exist, then production from the current level of 1.42 million b / s is likely to decrease substantially.

At the expense of Iran and Venezuela, other OPEC countries may, on the contrary, expand production, but the key question remains whether they are prepared to extend the Vienna agreement, which led to the market's entry into balance. Any kind of information on this subject on the eve of the June 22 cartel summit may be worth the weight of gold. The readiness of manufacturers for further cooperation will increase the risks of continuing the rally Brent and WTI. Many investors say that at a price of $ 100 per barrel they are hardly likely to surprise. As a confirmation of their hypothesis is the forward dynamics of futures contracts for the North Sea variety over its value in the spot market. Over the past month, the forward price has increased by 11%, the prices of the cash market - only by 6.8%. But after all, during the last at least three years, the indicators moved almost synchronously.

Trade conflicts between the US and China threatened global economic growth and forced the Ministry of Energy Information to lower the forecast for the increase in world oil demand in 2018 from 1.5 million to 1.4 million b / s. Nevertheless, Washington's decision to cancel $ 150 billion of import duties has returned optimism to the market.

Technically, Brent quotes reached a target of 200% on the AB = CD pattern, which increases the risks of a pullback. Nevertheless, the update of the May maximum will open the way for the "bulls" to the north towards the target benchmark by 224%.

Brent, the daily chart

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Overview of USD / CHF for the week of May 22 on simplified wave analysis

Wave picture of the chart D1:

The last section of the graph on the H4 / D1 TF forms the beginning of the final part (C) in the larger ascending wave formation W1. Previous parts (A-B) were formed over 3 years.

The wave pattern of the graph H1:

The bullish wave of February 16 has a high wave level. The character of the movement has a pronounced impulse form, with minimal counter correction areas. The lower boundary of the preliminary target zone is in 3 price figures from the current values of the pair.

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The wave pattern of the M15 chart:

From May 7, the price is adjusted, forming an intermediate correction. The price is close to the upper boundary of the calculated completion zone.

Recommended trading strategy:

For all types of trade, only purchases are recommended. In the area of settlement support, it is possible to deposit or enter the market with minimal risk.

Resistance zones:

- 1.0050 / 1.0100

Support zones:

- 0.9940 / 0.9890

Explanations to the figures: Simplified wave analysis uses a simple waveform, in the form of a 3-part zigzag (ABC). At each TF the last incomplete wave is analyzed. Zones show the calculated areas with the greatest probability of a turn.

Arrows indicate the wave counting according to the technique used by the author. The solid background shows the generated structure, dotted - the expected wave motion.

Attention: The wave algorithm does not take into account the duration of the tool movements in time. To conduct a trade transaction, you need confirmation signals from your trading systems!

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

Overview of AUD / JPY for the week of May 22 by simplified wave analysis

Wave picture of the chart D1:

The wave pattern of the largest scale of the cross plot shows a bullish zigzag, which started in June 2016. The structure of the motion on D1 shows that in the wave the first part (A) is fully formed and the middle part (B) is nearing completion. Correction proportions are fully met, but there are no signals for changing the motion vector yet on the graph.

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The wave pattern of the graph H1:

The bullish wave counts from March 23. The wave is not complete, but the current potential is not enough to start a new uptrend.

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The wave pattern of the M15 chart:

The last bullish section of May 9 forms the final part of the wave zigzag of a larger wave. The price has closely approached to the lower boundary of the settlement completion zone.

Recommended trading strategy:

Purchases of the instrument will be relevant after the current bearish wave is completely over. Supporters of short-term trading in the area of the resistance zone, it makes sense to look at the signals of the sale.

Resistance zones:

- 84.60 / 85.10

Support zones:

- 81.20 / 80.70

Explanations to the figures: Simplified wave analysis uses a simple waveform, in the form of a 3-part zigzag (ABC). At each TF the last incomplete wave is analyzed. Zones show the calculated areas with the greatest probability of a turn.

Arrows indicate the wave counting according to the technique used by the author. The solid background shows the generated structure, dotted - the expected wave motion.

Attention: The wave algorithm does not take into account the duration of the tool movements in time. To conduct a trade transaction, you need confirmation signals from your trading systems!

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

The daily review of the currency pair of GBP / JPY for May 22, 2018. Ichimoku Indicator

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GBP / JPY

The pair continues to be in the zone of influence and attraction of the resistances of the day (149.58) and week (149.40) Fibo Kijun. Maintain a certain advantage on the side of the players on the rise now allow to support short-term trends of the day (148.71) and month (148.88) timeframes. The breakdown of the supports and reliable fastening below will change the mood and may help to complete the climb. The main task for bears, in this case, is still testing the upper boundary of the weekly cloud (147.66), with the aim of breakdown. If the players are now on the increase will maintain its advantage, the development of the bullish sentiment in the region will result in a couple of important resistance 150.43-78 (weekly cloud cross daytime + + + daily Kijun goal H4). From the junior timeframes to this area, the goal is to break the H4 cloud (150.83), the capacity of which is still preserved. The breakdown of the current supports and the H4 cloud (148.16) will change the existing balance of forces, cancel the current goal and form downward benchmarks.

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Indicator parameters:

All time intervals 9 - 26 - 52

The color of indicator lines:

Tenkan (short-term trend) - red,

Kijun (medium-term trend) - green,

Fibo Kijun is a green dotted line,

Chinkou is gray,

Clouds: Senkou Span B (SSB, long-term trend) - blue,

Senkou Span A (SSA) - pink.

The color of additional lines:

Support and resistance MN - blue, W1 - green, D1 - red, H4 - pink, H1 - gray,

Horizontal levels (not Ichimoku) - brown,

Trend lines - purple.

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

Control zones of EUR / USD

The downward movement is a medium-term momentum, which indicates the need to search for profitable selling prices when forming a correctional model. It should be noted that yesterday, the pair tested the monthly short-term fault of May 1.17.25-1.1686. This allowed to fix all short positions, opened in May. The main target correction zone is the weekly fault of 1.1901-1.1885. While the pair is trading below this zone, the continuation of the downward movement and the probability of renewing the May low are still close to 70%. It is important to understand that the monthly short-term test in most cases means the end of a certain phase and allows either the formation of a flat (correctional) range or the formation of an opposite pulse.

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To end the current medium-term impulse, one of the American sessions above the weekly shortcut will be required to close. This will provide an opportunity in the future to look for purchases with long-range goals. To date, the pair is testing the NCP 1/2 1.1809-1.1801, which will allow us to consider both the reversal model and the continuation pattern of the downward dynamics. To continue the fall, it will be necessary to close today's American session below this zone. A change in priority will occur if today's session on the Chicago Stock Exchange trades above 1.1809 to the very end. In this case, tomorrow you will be able to look for opportunities to purchase a tool, the purpose of which will be the weekly short-term fault of 1.1901-1.1885.

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The daily review of GOLD for May 22, 2018. Ichimoku Indicator

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GOLD

The gold twice tried to go beyond the ascending goals to break the weekly cloud, but to no avail. To date, another decline has been made, which allowed gold to descend to the final boundary of the weekly gold cross while working out a daily downside target for the breakdown of the cloud (1284.90). The daily goal is now strengthened by the support of several timeframes - a week (Fibo Kijun 1285.57 + Senkou Span A 1283.84) and a monthly one (Fibo Kijun 1278.55). This zone (1284.90 - 1278.55) is the most important, its overcoming opens up new prospects for players to fall. The next landmark, in case of breakdown, will be the joint support zone, currently located at 1239.95 - 1248.78 (the lower boundary of the weekly cloud + the monthly Kijun). But it should be noted that the strength of the supported supports (1284.90 - 1278.55) and daytime inhibition in the current situation make the development of day-to-day upward correction quite a priority. In the course of the ascent, gold can be executed by a retest of the levels of the week-long golden cross passed the day before. The main upward direction and resistance are now located in the area of 1300.86 (monthly Tenkan + weekly Kijun + day Tenkan) and 1316.15 - 1323.22 (weekly Tenkan + weekly Fibo Kijun + daily Kijun).

Indicator parameters:

All time intervals 9 - 26 - 52

The color of indicator lines:

Tenkan (short-term trend) - red,

Kijun (medium-term trend) - green,

Fibo Kijun is a green dotted line,

Chinkou is gray,

Clouds: Senkou Span B (SSB, long-term trend) - blue,

Senkou Span A (SSA) - pink.

The color of additional lines:

Support and resistance MN - blue, W1 - green, D1 - red, H4 - pink, H1 - gray,

Horizontal levels (not Ichimoku) - brown,

Trend lines - purple.

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

Technical analysis of GBP/JPY for May 22, 2018

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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: 149.70,150.15, and 150.75

Support levels: 148.40, 148.20, and 147.60

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

Indicator analysis. The daily review of the currency pair GBP / USD for May 22, 2018

Trend analysis (Figure 1).

On Monday, the price worked down. On Tuesday, the market can continue to move down, with the first goal of 1.3299, the bottom fractal (red dotted line). The complex analysis will more accurately tell where the price will go.

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Fig. 2 (daily chart).

Complex analysis:

- Indicator analysis - down;

- Fibonacci levels - down;

- Volumes - down;

- Candle analysis - neutral;

- Trend analysis - down;

- Bollinger lines - up;

- Weekly schedule - down.

General conclusion:

On Tuesday, on the GBP / USD pair, the downward movement with the first target of 1.3299 is the bottom fractal (red dotted line).

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Global macro overview for 22/05/2018

The American currency is still being supported by incoming information: the agreement between the Washington - Beijing is pushing away the possibility of trade wars, the chaos on the Italian political scene is not conducive to the euro mainly through the debt market issues. This is being conducted in two ways: by spreading the profitability of Italian and German papers and fueling the demand for the debt of the Federal Republic of Germany with the established trend of sell off US bonds. The political impasse is a permanent element of the Italian political scene and this factor has been inflated by the markets, but it is well proved by the pro-dollar sentiment, in which every pretext to sell other currencies will be used to the limits.

Such a picture of the market in recent days was also due to another factor: the change of speculative positioning. Extremely negative attitude to the dollar has been erased. Similarly: the largest optimism in the history of the euro prospects. In order to sustain the dollar rally and convince investors to build a long position in this currency, something more will be needed.In a similar situation less than a year ago was the euro: after the elections in France, short positions were reduced due to the evaporation of political risk, but for further appreciation, an ECB stimulus was needed (memorable Draghi June's speech in Sintra) and a strong recovery of the economic situation. The dollar probably can not count on a similar scenario, and certainly not in the coming days. Anyway, recent comments from FOMC members reveal a large dose of caution and there are also the first currency pairs, in which there is an attempt to reverse the weakness against the dollar, like AUD, EUR and NZD.

Let's now take a look at the US Dollar Index technical picture at the H4 time frame. The market continues to trade inside of the rising channel and the price had made another higher high at the level of 94.07 before a corrective pull-back towards the level of 93.42 occurred. The bulls are still in control of the market and the next target is seen at the level of 94.22. Only a sustained breakout below the level of 92.85 would change the bias from bullish to bearish.

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Global macro overview for 22/05/2018

At the beginning of the week volatility in the oil market remains limited and WTI prices is still hovering ahead of several-year highs. The factors that support demand are, among others election results in Venezuela. President Maduro announced his victory in the vote, which was a farce in the eyes of the opposition and international organizations. Such a development of events is not a surprise but threatens with new sanctions from the US, which would remove some of the country's exports from the global market. Estimates by Bloomberg say that the extraction is currently only just over 1.5 million barrels per day. For comparison: in September about 0.5 million barrels more were mined. It was the lack of access to raw material from this country that was largely responsible for the tightening of the situation on the raw material market. There is also a growing geopolitical risk in the Middle East. The US Secretary of State once again sharpened the rhetoric towards Iran. Investors will certainly be waiting for API and Department reports on inventory changes in the last week. Previous information was very inconsistent and the oil rally was caused especially by the industry's slightly undermined information on the record-breaking 2.5 million barrels of US oil exports.

Let's now take a look at the Crude Oil technical picture at the H4 time frame. In the current situation, there is not much justification for the strong oil rises - most factors are already priced in by the markets. At the same time, the market undoubtedly remains in the mode of buying corrections and the sequence of higher highs and higher lows are still continuing. The market has managed to make another high at the level of 72.70, but there is no follow up in the momentum, in contrary, the momentum is diverging from the price more and more. The immediate support is seen at the level of 72.27 and 71.91, but only a sustained violation of the level of 70.24 would signal a more deeper pull-back in progress.

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Daily analysis of EUR/JPY for May 22, 2018

EUR/JPY

The situation on the EUR/JPY pair remains clearly unchanged as price did not do anything serious on May 21. The bias on this cross is bearish, but it is a precarious bias. What the market did last week was a zigzag movement without a clear directional propensity.

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Last week, price moved upwards, downwards, and upwards again, within the supply zone at 131.50 and the demand zone at 129.50. A 200 –pip movement to the upside or to the downside would easily change the bias to bullish or bearish, and that is exactly what is expected this week.A breakout can happen this week.

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Daily analysis of USD/JPY for May 22, 2018

USD/JPY

The market got corrected lower on Monday, in the context of an uptrend. The correction may be an opportunity to enter the market at better prices, for price could still go further upwards, thus saving the extant bullishness in the market. Only a large pullback could threaten the current bias on the market.

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There is a Bullish Confirmation Pattern in the market, which makes short trades not yet advisable, unless the bias on the market turns bearish. This week, there is a high probability that the market would continue going upwards, reaching the supply levels at 111.00, 111.50 and 112.00.

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Daily analysis of USD/CHF for May 22, 2018

USD/CHF

A short-term bearish signal has been generated on the USD/CHF pair. The recent 2-week consolidation has threatened the last bullish bias, and the price has started going downwards, thus sendaing a "sell" signal. The price is expected to go further and further southwards, reaching the demand levels at 0.9950 and 0.9900.

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There is a Bearish Confirmation Pattern on the 4-hour chart, and that has sent a short-term bearish signal. Further bearish movement can eventually invalidate the long-term bullishness in the market.

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NZD/USD Intraday technical levels and trading recommendations for for May 22, 2018

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The price zone of 0.7320-0.7390 stood as a significant supply zone during 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.

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, 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 further bearish decline allowing bullish pullback to occur towards 0.7170-0.7220.

This will probably allow conservative trend traders to wait for a bullish pullback towards the price zone of 0.7220-0.7170 (neckline zone) (significant supply zone) for a valid SELL entry. S/L should be placed above 0.7260.

On the other hand, if bearish momentum persists, the price zone of 0.6820-0.6780 will be the next destination for the NZD/USD pair. It should be watched for bullish rejection and a possible valid BUY entry.

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Intraday technical levels and trading recommendations for EUR/USD for May 22, 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 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 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.

However, a recent descending high was established around the price level of 1.1990 as the EUR/USD bulls failed to pursue towards higher bullish targets. This enhances the bearish scenario of the market.

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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Buy dollar on correction

Strengthening of the dollar on Monday stopped on the wave and probably a partial fixation of profits. And here is the question of some people: Has the dollar not run out of steam after a noticeable rally or does it still have gunpowder in the flasks?

The recent appreciation of the US currency happened, as indicated earlier, by three important reasons. The first is the expectation of the continuation of the process of raising the Fed's interest rates. The second is the growth in the yield of US Treasury government bonds, and the third is the weakness of EM currencies. Meanwhile, the main currencies are due to a fall in expectations that the Central Bank of those countries to whom they belong will actively follow the Fed and raise the cost of borrowing.

If the process of raising interest rates is clear. The Fed based its actions on the desire to gradually cool economic growth and not allow excessive overheating of the economy. Also, restraining the likely rise of inflationary pressures, the dollar's growth is primarily supported by an increase in the yield of US government bonds that are significantly higher than the yields of government bonds of other economically developed countries. This is one of the most important reasons for the demand of dollars. In addition, the slowdown in economic growth in some countries whose currencies are traded on Forex against the "American", referring to the main ones, as well as, reducing inflationary pressures, actually bury the idea of a year ago. For example, the euro or yen or even the Canadian dollar will grow on a wave of rate hikes. But this does not happen, therefore those market players.

Well, now pay attention to the probable prospects for the dollar. In our opinion, the Fed will announce the continuation of the cycle of raising interest rates, and the profitability of the benchmark of 10-year Treasuries will be kept above the 3.0% level. the major currencies traded against it will remain "weak" while the dollar will grow. The reasons for these are due to the fundamental nature. Meanwhile, we consider it necessary to purchase the US dollar on local declines.

Forecast of the day:

The EUR/USD pair remains in the short-term downtrend. It trades below the level of 1.1795. Preserving the outlook for growth in the yield of US government bonds will put pressure on the pair. Against this backdrop, the pair may still fall to 1.1660, unless it rises above 1.1795-1.1800.

The GBP/USD pair is consolidating below the level of 1.3470, which implies a high probability of continuing its fall to 1.3300.

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The US-China trade war is over, but it's only beginning with Europe

EUR / USD pair

On Monday, the markets of key exchange countries were closed due to the holiday, and the economic calendar was empty. But investors will not necessarily lose interest as the Italian parties agreed on a new prime minister, Giuseppe Conte, who became a member of the 5-star party, a student and a graduate student of seven European universities specializing in jurisprudence and culture. The Italian press informs him that Conti has no "concept of politics." Truly, the situation is complicated by the fact that the "League of the North", like the "5 stars", intends to increase government spending. Another important event was the end of the tariff war between the U.S. and China. Instead of a war of war, the parties agreed to expand trade. Of course, first of all, China pledged to increase purchases of American goods. As a result, the euro grew by 20 points, and the stock market (S&P500) grew by 0.74%.

Today the situation promises to be stable. At 10.00 London time, the monthly economic report of the German Central Bank will be published, which is unlikely to seriously interest investors; At 14.00 London time the index of business activity in the manufacturing sector of Richmond for May with the forecast of 9 points against -3 in April. The EU's confrontation with the US on the issue of sanctions against Iran comes to the fore. The EU is prepared to apply a blocking law of 1996, which prohibits European companies from complying with U.S. sanctions to protect their economic interests.

We are waiting for further reduction of the euro to 1.1670 and further to 1.1600.

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Review of AUD / USD pair for the week of May 22 via simplified wave analysis

Wave picture of the D1 chart:

The bullish wave of the major "Aussie" currency pair from January 2016 sets the main direction of smaller trends. On a larger scale, this plot takes the place of correction.

The wave pattern of the H1 graph:

The main course of the inter-week trend is directed by the bearish wave of January 26. In a wave of a larger scale at H4 chart, the final part (C) forms. The upper limit of the calculated target zone is about 3 figures below the current rate.

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The wave pattern of the M15 chart:

Since May 9, the price of the pair is moving upward. The potential for the move is close to completion.

Recommended trading strategy:

It is better for traders trading on large scale of timeframe to wait for the completion of the entire bearish wave. For supporters of shorter periods of trade signals, selling should be sought in the area of the resistance zone.

Resistance zones:

- 0.7600 / 0.7650

Support zones:

- 0.7460 / 0.7410

- 0.7320 / 0.7270

Explanations to the figures:

A simplified wave analysis uses a simple waveform, in the form of a 3-part zigzag (ABC). The last incomplete wave for every timeframe is analyzed. Zones show the calculated areas with the greatest probability of a turn.

Arrows indicate the counting of wave according to the technique used by the author. The solid background shows the generated structure and the dotted exhibits the expected wave motion.

Attention: The wave algorithm does not take into account the duration of the tool movements in time. To conduct a trade transaction, you need to confirm the signals used by your trading systems.

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Analysis of Gold for May 22, 2018

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Recently, Gold has been trading upwards. The price tested the level of $1,295.00. According to the H1 time – frame, I found a valid breakout of downward channel (ending diagonal), which is a sign that selling looks risky. I also found a hidden bullish divergence on the MACD oscillator, which is another sign of strength. My advice is to watch for a potential bullish flag and then watch for buying. The upward targets are set at the price of $1,299.10 and at the price of $1,306.00.

Resistance levels:

R1: $1,296.15

R2: $1,300.40

R3: $1,307.85

Support levels:

S1: $1,284.45

S2: $1,277.00

S3: $1,272.00

Trading recommendations for today: watch for potential buying opportunities.

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EUR/USD analysis for May 22, 2018

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Recently, the EUR/USD pair has been trading upwards. The price tested the level of 1.1829. According to the H1 time – frame, I found a valid breakout of the downward channel (ending diagonal), which is a sign that selling looks risky. I also found a hidden bullish divergence on the MACD oscillator, which is another sign of strength. My advice is to watch for potential buying opportunities. The upward target is set at the price of 1.1995.

Resistance levels:

R1: 1.1820

R2: 1.1850

R3: 1.1900

Support levels:

S1: 1.1740

S2: 1.1690

S3: 1.1660

Trading recommendations for today: watch for potential buying opportunities.

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Bitcoin analysis for May 22, 2018

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The Bitcoin (BTC) has been trading downwards. As I expected, the price tested the level of $8.201. On Monday, the blockchain research and development firm, Nchain, announced the acquisition of a majority stake in the Bitcoin Cash-centric startup Handcash. The Handcash platform allows users to send BCH in a contactless manner using near field communication (NFC) technology. The technical picture on Bitcoin looks bearish.

Trading recommendations:

According to the H1 time - frame, I found that price broke the support trendline in the background, which is a sign that sellers are in control. I also found a breakout of intraday bearish flag, which is another sign of weakness. Watch for selling opportunities. The downward target is set at the price of $7.903.

Support/Resistance

$8.320 – Intraday resistance

$8.136– Intraday support

$7.900– Objective target

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

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Trading plan for GBP / USD pair as of May 22, 2013

Today, there is not much that can pay attention to since there is no serious data either in Europe with the United Kingdom or in the United States. However, there is a small variety on the government borrowings data in the U.K., which should increase by 7.1 billion pounds. The growth of borrowing did not have any positive effect on the pound, so it may still be a little cheaper, especially considering an absolutely empty macroeconomic calendar.

The GBP/USD currency pair managed to break the flat movement on the lower border of the 1.3440 / 1.3610, where it gradually went lower, but by the end of the day it formed a pullback. Probably, we can assume swaying in the values of 1.3400/1.3440 , with the alignment of trading forces. Positions for sale should be considered only after a clear fixation below the current breakdown of 1.3390. However, a small variety can make data on government borrowings in the U.K.

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EUR / USD pair for the week of May 22 for simplified wave analysis

Wave picture of the D1 chart:

Over the past three years, the quotations of the pairs have formed an ascending stretched plane on the chart. The wave entered the final phase of the formation of the last part (C) but the wave structure does not show completeness.

The wave pattern of the H1 graph:

Since January of this year, the price movement is guided by a downward wave. Judging by the type of its structure and wave potential, the wave will take the place of correction oN the last section of the main trend. Quotations are near the upper boundary of the calculated target zone.

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The wave pattern of the M15 chart:

As part of a larger construction, the last wave is bearish with a starting point on May 14. In the structure of the movement, an upward correction is expected in the coming days.

Recommended trading strategy:

Trading large sections of the schedule, you must wait for the completion of the entire bearish wave. Short-term purchases are possible within the framework of the intersession and the inter-style style.

Resistance zones:

- 1.1880 / 1.1930

Support zones:

- 1.1720 / 1.1670

Explanations to the figures:

A simplified wave analysis uses a simple waveform, in the form of a 3-part zigzag (ABC). The last incomplete wave for every time frame is analyzed. Zones show the calculated areas with the greatest probability of a turn.

Arrows indicate the counting of wave according to the technique used by the author. The solid background shows the generated structure and the dotted exhibits the expected wave motion.

Attention: The wave algorithm does not take into account the duration of the tool movements in time. To conduct a trade transaction, you need to confirm the signals used by your trading systems.

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

Fractal analysis: GOLD on May 22

Forecast for May 22:

Analytical review on the H1 scale:

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For Gold, the key levels on the H1 scale are 304.79, 1302.97, 1298.88, 1295.70, 1285.30, 1279.32 and 1274.05. Here we follow the local top-down structure of May 11 and consider it as a potential initial condition for a downward trend. The continuation of the downward movement is expected after the breakdown of 1285.30, in this case the target is 1279.32. The potential value for the bottom is still the level of 1274.05, which is near where we expect consolidation.

A short-term upward movement is possible in the corridor 1295.70 - 1298.88, breakdown of the last value will lead to in-depth movement. Here, the target is 1302.97 and expect noise in the range of 1302.97 - 1304.79. Prior to it, we expect the initial conditions for the upward cycle to be formalized.

The main trend is a local structure for the bottom of May 11.

Trading recommendations:

Buy: 1297.70 Take profit: 1298.80

Buy 1296.00 Take profit: 1298.00

Sell: 1285.10 Take profit: 1279.60

Sell: 1279.30 Take profit: 1274.25

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Fundamental Analysis of GBP/USD for May 22, 2018

GBP/USD has been quite volatile and corrective recently after impulsive bearish pressure breaking below 1.37 with a daily close. Today, the pair is likely to trade with higher volatility as the UK Inflation report hearing is scheduled for Tuesday. This market-moving event is expected to favor further GBP gains in the coming days.

Citing the recent BOE Governor Carney's speech, inflation rate is expected to increase by 0.5% for the month and expected to continue growth in the coming months as well. Such increase in inflation is expected to be a strength for the upcoming obstacles in the UK economy. Along with the inflation report, today the UK Public Sector Net Borrowing report is due which is expected to increase to 7.2B from the previous negative figure of -0.3B and CBI Industrial Order Expectation is expected to decrease to 2 from the previous figure of 4.

On the other hand, today USD Richmond Manufacturing Index report is going to be published which is expected to increase to 9 from the previous figure of -3. This week, the FOMC is holding a policy meeting, which is expected to strengthen the USD gains in the future.

As for the current scenario, certain volatility and corrective price action is expected in this pair as macroeconomic reports and events are slated for this week, including the UK Second Revised GDP report on Friday, Governor Carney's speech, FOMC Meeting on Wednesday and after that FED Chair Jerome Powell will speak about monetary policy decisions. This week, the pair is set to be very volatile and corrective. GBP is expected to have an upper hand over USD in the nearst days.

Now let us look at the technical view. The price is currently showing some bullish pressure in the market ahead of the macroeconomic reports. Though the Bullish Divergence is currently being observed in the market, certain bearish pressure is expected to push the price a bit lower before the price starts to inject bullish impulsiveness in the pair. As the price remains above 1.33 with a daily close, the bullish bias is expected to continue with target towards 1.37 in the coming days.

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Bitcoin analysis for 22/05/2018

A group of regulators in Canada and the United States launched an "international suppression" of cryptocurrency frauds. The "Operation Cryptosweep " was presented during a Monday event organized by the North American Securities Administrators Association (NASAA). Its existence was first reported by the financial media, and details were later presented in the Tennessee Department of Commerce and Insurance (TDCI) and the Texas State Securities Board (TSSB).

Cryptosweep, according to statements, includes "almost 70 investigations and 35 pending or completed enforcement actions since the beginning of the month". It is said that this number is expected to increase, although it is not clear when any related enforcement activities will be presented. The activity gained momentum when a task force composed of NASAA members was convened to initiate a coordinated series of ICO investigations and investment products related to cryptocurrencies. The NASAA representative refused to comment on the matter, but other participants in the operation presented a picture of extensive efforts to eliminate fraud. The latest example of state regulatory action was publicizing false support from celebrities such as actress Jennifer Aniston. "The activities announced today are just the tip of the iceberg." - said in the statement deputy commissioner of TDCI, Frank Borger-Gilligan. Joseph Rotunda, director of the TSSB Enforcement Department, has a similar opinion: "The investment market in cryptocurrencies is saturated with common scams, and our work only reveals the tip of the iceberg." - he said.

It looks like more countries are joining forces to prevent the frauds in the crypto-enthusiasts community, which means, the cryptocurrencies, tokens and ICO are now on a good way to being perceived as a serious branch of the economy by the general public.

Let's now take a look at the Bitcoin technical picture at the H4 time frame. After a failure to break higher above the level of $8,570 the market is now sliding down towards the trend line support at the level of $8,132. There are still two scenarios available. So, it is still possible the last breakout was a fake one. In order to confirm the strength, the bulls would have to impulsively move towards the level of $8,900 without making a new low below the level of $7,887. Otherwise, the alternative scenario is still valid and indicates a possible drop towards the 61% Fibo at $7,712.

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Trading plan for 22/05/2018

In the overnight trading session changes in the value of individual currencies are rather symbolic, but the strengthening of the US dollar is not so much visible. It is worth paying attention to the new wave of charges against the Prime Minister of Japan Abe, which push USD / JPY at 111.00 and persistence by AUD / USD over the important resistances yesterday. In the Asian session, none of the currencies changes the value by more than 0.2%. EUR / USD the day will start at 1.1780, GBP / USD is at the 55-week average at 1.34. The Wall Street indexes recorded fairly solid increases, but the scale was limited in the second part of the day, futures on the SP500 are stable at 2732 points. USA 10Y yields moved back a few bps from recent highs and now stands at 3.05%. Oil is still more expensive - the WTI barrel is paying USD 72.5, an ounce of gold is valued at USD 1290.

On Tuesday, 22nd of May the main event of the day is Inflation Report Hearings in the UK, together with Public Sector Net Borrowing data release and speeches from various MPC members including Mark Carney. Later during the day there are other data releases from Germany (Bundesbank Monthly Report), Canada (Wholesale Sales) and the US (Richmond Fed Manufacturing Index).

GBP/USD analysis for 22/05/2018:

In the UK, public sector borrowing data along with CBI selling prices survey will be released soon and in addition, another round of Brexit negotiations is also due to start in Brussels. Nevertheless, the main stage is still held for Governor Carney who will testify before the parliament's Treasury Committee. After February statements of "monetary policy would need to be tightened somewhat earlier and by a somewhat greater extent" some questions on the Bank's communications strategy are likely, but ahead of a week that contains key data on UK CPI inflation and retail sales, the market will be watching for any signs that strengthen the case for an August rate rise (hawkish tone or remarks)

Let's take a look at the GBP/USD technical picture at the H4 time frame. The market has made a new swing low at the level of 1.3391 in extremely oversold conditions. Currently, the price is trying to test the nearest technical resistance at the level of 1.3451 and 1.3483. Any successful breakout through this level would indicate a rally towards the next resistance at the level of 1.3617. The growing bullish divergence supports the upward bias.

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Oil is a combustible asset

Against the backdrop of worsening relations between the US and Iran, the stubborn and unshakeable conviction that Trump, as a true Republican, will defend the interests of oil companies with all his might and maintain high oil prices, continue to disperse bullish sentiments. But all this fundamentally speculative basis is shaky and temporary.

Just yesterday, the White House said that the United States is ready to invest and develop Iran if it agrees to conclude a new all-encompassing nuclear program, which consists in eliminating all nuclear production technologies, stopping the development of ballistic missiles, withdrawing troops from Syria, etc. Otherwise, Iran will fall under "unprecedented pressure pressure." Iran is thinking over an ultimatum.

Trump's Republican affiliation does not guarantee such a straightforward relationship of the entire US political system to the same factor as the price of oil. The splicing up of republican and democratic monopolies and the largest banks in the past 10 years has pointed very precisely to the rapprochement for political purposes. We wrote about this during the election of President Trump nominations for the post of Fed chairman.

Considering the technical aspect of the outlook development of oil prices. First of all, the striking divergence in the eye of the oscillator Marlin which is not a reversal signal, but a warning. The primary signal of the trend reversal will be the transition of the signal line to the zero line.

To date, the price has punctured the level of the Fibonacci reaction of 361.8%, built on the first section of the trade on June 26, 2017 - August 1, 2017 (green grid). Also, the price has been moving for several days under the upper trend line of the price channel. There may be a false exit of the price from this channel, as it happened in early January this year (white oval), and the price returned to the channel only after a month. But now, the general picture is different and the movement can be stopped by the Fibonacci level 161.8% pink (73.25), built from the first growth line in February 2016 (min 26.05) - January 2017, which will bring the price back to the channel quite quickly.

Thus, we are expecting the oil price to turn from its current levels with the prospect of moving to 62.00, where the two levels of the different Fibonacci grids are the same: 238.2% and 123.6%.

In the long term, a deeper decline to 55.40 is also possible to happen in its own time.

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

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Indicator analysis. Daily review for May 22, 2018 for the EUR/USD pair

Rendering analysis (Figure 1).

On Monday, traders continued to work in the side channel. On Tuesday, the market, with a high probability, can continue to move down. The line of support of the rising channel (1.671) is very close and the market will strive there. Complex analysis will more accurately tell where the price will go.

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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 Tuesday, the market will move down, with the first target of 1.1671 - the support line (white line).

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Burning forecast 05/22/2018

Burning forecast 05/22/2018

EURUSD: Preparing for an upward breakthrough.

There are no important news that can cause a new trend in the markets. In addition to oil growth, Brent crude almost reached the level of $80 per barrel, for the first time since 2014. The reasons are aggravation of US-Iran relations (and the possibility of imposing a ban on the purchase of Iranian oil) - plus possible US sanctions against Venezuela (related to the elections in Venezuela).

Otherwise, the market is quiet - perhaps the driver will be the Fed's minutes, which will be released on May 23.

The Euro is preparing for a further breakthrough of the range.

Buy the euro from 1.1850 stop at 1.1805 target 1.2000

Alternative: Sell euro from 1.1715 stop 1.1760 target 1.1615

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"The Australian" moved forward and dug in

AUD / USD

Yesterday, the Australian dollar showed the best correction which was already expected, even though the AUD failed to achieve the target goal of 0.7610 / 20, due to lack of support from other currencies,the growth was 70 points. Oil rose to 1.2%, but iron ore (-0.32%), non-ferrous metals (copper-0.35%, aluminum -1.0%) also kept the growth of the "Australian". In fact, the market was confused because of the decision of the US and China to abandon the tariff war.

According to Australia, important economic data will not be available until the end of the week. If the expected strengthening of the dollar continues, the main scenario is the return of AUD / USD to 0.7440.

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

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Technical analysis on USD/JPY for May 22, 2018

The USD/JPY pair remains in a bullish trend. Price continues to make higher highs and higher lows. As long as price is above 110.80, short-term trend remains bullish. Medium-term trend remains bullish as long as price is above 110.

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Blue line -medium-term support

Red line - short-term support

The USD/JPY pair is showing bearish divergence signs on the 4-hour chart. A break below 110.80 could signal that start of a bigger reversal. Confirmation of a reversal will come only with the break below 110. Until then, short- and medium-term trend remains bullish.

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"Briton" - the most unfortunate on the market

GBP / USD

The British pound stayed in a downward trend amid the growing geopolitical tensions around Iran, North Korea and Ukraine. Investors also remain in the dark about the immediate plans of "Brexit" and wait for the next major economic data with a pessimistic forecasts. Today, the data on public sector borrowing in April will be publish, with a forecast of 7.2 billion pounds against -0.3 billion in March. The balance of production orders from CBI for the current month is expected to decrease from 4 to 2. The day will be parliamentary hearings on inflation. Usually, these hearings do not significantly affect the markets but now the situation is special, investors need to "remove the reaction" of the parliament to reduce inflation. Actually, inflation indices are coming out tomorrow and expected to be mixed. Base CPI in April is projected to 2.2% YoY vs. 2.3% YoY in March, while the overall CPI is expected to remain unchanged at 2.5% YoY. The retail price index could rise from 3.3% YoY to 3.4% YoY.

We are expecting the pound to fall to 1.3330.

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

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Technical analysis on USD/CAD for May 22, 2018

I warned yesterday that a break back inside the cloud and below 1.2830 will open the way for a move towards 1.2770-1.2730. The USD/CAD got rejected by the trend line resistance and reversed below the 4-hour Ichimoku cloud. Price is now again above crucial support.

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Blue line - resistance trend line

Yellow rectangle - support area

The USD/CAD pair has short-term resistance at 1.2830 and next and most importantly the 1.2890 level. Support is at 1.2770-1.2730. A break below this support will open the way for a push lower towards 1.26-1.25. Any bounce is considered as a selling opportunity. I'm bearish as long as price is below 1.2930.

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Technical analysis on Gold for May 22, 2018

Gold price bounced from the long-term support of $1,282 and is challenging short-term resistance as we expected. Gold price is expected to continue higher this week and I expect a weekly close above $1,300 to signal a bigger upward reversal and the start of a bigger bounce.

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Blue line (RSI) - bullish divergence

Red line - short-term resistance

Green lines -targets

Yellow line- medium-term resistance

Gold price remains in a down trend. As long as price is below the red trend line resistance I will be waiting for new lows. However I see this as the less likely scenario, we have to see signs of strength in order to be more confident of our bullish scenario. Such signs will be initially the break above the red line resistance. Yesterday we tested that resistance and got rejected. A higher low today and a higher high will be a bullish sign for the next couple of weeks.

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Daily analysis of USD/JPY for May 21, 2018

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Overview

The USDJPY pair provided slight negative trading on last Friday but it begins today with a bullish gap that puts the price near 111.00 barrier, noticing that stochastic gets rid of its negativity clearly and gain the positive momentum on the four hours' time frame, forming positive motive that we are waiting to assist to push the price to resume the bullish trend. Therefore, our bullish overview will remain valid conditioned by the price stability above 110.04, reminding you that our next main target is located at 111.32. The expected trading range for today is between 110.00 support and 111.60 resistance.

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Daily analysis of GBP/JPY for May 21, 2018

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Overview

The moving average 55 is forming a strong barrier at 149.85, but the stability of GBPJPY within the bullish channel's levels will increase the chances to gather positive momentum in the near period. This increases the chances to make the required breach, aiming for the main upward targets during its rally to 150.80 and 152.00. As Stochastic surpasses the overbought level, this might force the price to extend sideways trading, but that will increase the chances to gain new bullish momentum in the near period. The expected trading range for today is between 149.00 and 150.80.

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Daily analysis of Gold for May 21, 2018

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Overview

Gold price is trading lower at around $1,285.90. The price aims to break it and is struggling to hold below it now. This supports the continuation of our bearish outlook efficiently for the upcoming period. The price is affected by the negative signal provided by stochastic now. Let me reminding you that our next target is located at $1,267.00. The EMA50 is still supporting the suggested bearish wave, provided that is holding below $1,301.20. The expected trading range for today is between $1,270.00 support and $1,305.00 resistance.

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