AUD/USD Approaching Support, Prepare For A Bounce!

AUD/USD is approaching its support at 0.7366 (61.8% Fibonacci extension, 61.8% Fibonacci retracement, horizontal swing low support) where it could potentially bounce and rise to its resistance at 0.7413 (61.8% Fibonacci extension, 61.8% Fibonacci retracement, horizontal pullback resistance).

Stochastic (55, 5, 3) is approaching its support at 2.2% where a corresponding bounce could occur.

AUD/USD is approaching its support where a bounce is expected.

Buy above 0.7366. Stop loss at 0.7345. Take profit at 0.7413.

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#theforexarmy #forexsigns #forexsignals #forexfamily #forexgroup #forexhelp #forexcourse #forextrade #forexdaily #forexmoney #forexentourage #forextrading #forex #forexhelptrading #forexscalping #babypips #forexfactory #forexlife #forextrader #financialfreedom #daytrader #scalper #swingtrader #fx #currency #pips #technicalanalysis #forexmarketThe material has been provided by InstaForex Company - www.instaforex.com

EUR/USD Approaching Support, Prepare For A Bounce!

EURUSD is approaching its support at 1.1635 (61.8% Fibonacci extension, 61.8% Fibonacci retracement x2, horizontal swing low support) where it could rise to its resistance at 1.1745 (76.4% Fibonacci retracement, horizontal swing high resistance). Stochastic (55, 5, 3) is approaching its support at 2.7% where a corresponding bounce could occur.

EURUSD is approaching its support where a bounce is expected.

Buy above 1.1635. Stop loss 1.1567. Take profit at 1.1745.

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#theforexarmy #forexsigns #forexsignals #forexfamily #forexgroup #forexhelp #forexcourse #forextrade #forexdaily #forexmoney #forexentourage #forextrading #forex #forexhelptrading #forexscalping #babypips #forexfactory #forexlife #forextrader #financialfreedom #daytrader #scalper #swingtrader #fx #currency #pips #technicalanalysis #forexmarketThe material has been provided by InstaForex Company - www.instaforex.com

Technical analysis of AUD/USD for July 18, 2018

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Overview:

In the long term, the major resistance is seen at the level of 0.7474. The AUD/USD pair fell from the level of 0.7474 towards 0.7348. But, the price rebounded from the bottom of 0.7348 to trade around the spot of 0.7474 again. The resistance is seen at the levels of 0.7474, 0.7513 and 0.7554. Moreover, the price area of 0.7474/0.7513 remains a significant resistance zone. Therefore, there is a possibility that the AUD/USD pair will move downside and the structure of a fall does not look corrective. The trend is still below the 100 EMA for that the bearish outlook remains the same as long as the 100 EMA is headed to the downside. Thus, amid the previous events, the price is still moving between the levels of 0.7474 and 0.7257. If the AUD/USD pair fails to break through the resistance level of 0.7474, the market will decline further to 0.7302 as the first target. This would suggest the bearish market because the RSI indicator is still in a negative spot and does not show any trend-reversal signs. The pair is expected to drop lower towards at least 0.7257 so as to test the daily support 3. On the contrary, if a breakout takes place at the resistance level of 0.7554, then this scenario may become invalidated.

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Technical analysis of USD/CAD for July 18, 2018

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Overview:

The USD/CAD pair will probbaly continue to rise from the level of 1.3139 in the long term. It should be noted that the support is established at the level of 1.3139 which represents the 61.8% Fibonacci retracement level on the H4 chart. The price is likely to form a double bottom in the same time frame. Accordingly, the USD/CAD pair is showing signs of strength following a breakout of the highest level of 1.3247. So, buy above the level of 1.3247 with the first target at 1.3309 in order to test the daily resistance 1 and further to 1.3385. Also, it might be noted that the level of 1.3385 is a good place to take profit because it will form a double top. On the other hand, in case a reversal takes place and the USD/CAD pair breaks through the support level of 1.3064, a further decline to 1.2988 can occur which would indicate a bearish market.

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GBP / USD. 18 July. Trading system "Regression channels". All attention to inflation in the UK

4-hour timeframe

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Technical data:

Senior channel of linear regression: direction - down.

The younger channel of linear regression: the direction is sideways.

Moving average (20, smoothed) - down.

CCI: -183.5053

The advantage in the GBP / USD pair on Tuesday, July 17, was entirely on the side of the US currency. Chairman of the Fed Jerome Powell pleased traders with a strong position and said that the key rate will continue to grow, and the US economic growth has excellent prospects. In turn, Mark Carney expressed concern about the uncertainty in the Brexit scenario, and is also concerned about its consequences for the economy. Thus, every speech was supported by the US dollar. Today, July 18, should pay attention to the publication of inflation in Britain. According to experts' forecasts, the indicator may grow up to 2.6%, however, after yesterday's speech by Karni, market participants can easily ignore this publication. Even further acceleration of inflation does not give grounds to assume tightening of the monetary policy of the Bank of England in the near future. All attention is now focused on the political crisis in the Parliament, the actions of Theresa May and Brexit. After dinner, Jerome Powell's second speech will take place, which, like yesterday, may trigger new purchases of the US dollar, despite the Fed's concerns about the possible consequences of the trade war.

Nearest support levels:

S1 = 1.3062

S2 - 1,3000

S3 - 1.2939

Nearest resistance levels:

R1 = 1.3123

R2 = 1.3184

R3 = 1.3245

Trading recommendations:

For GBP / USD, the price continues strong downward movement with no signs of a correction beginning. The goals for shorts now are the levels of 1.3062 and 1.3000. A strong overbought CCI warns of a possible correction, but has not yet been confirmed by a signal from Heikin Ashi.

The purchase orders will become relevant only after the traders have overcome the moving average line with a target of 1.3306. However, this is unlikely to happen today, since at the moment the price is far enough from the moving-house.

In addition to the technical picture, one should also take into account the fundamental data and the time of their release.

Explanations for illustrations:

The upper channel of linear regression is the blue lines of unidirectional motion.

The junior channel is linear-violet lines of unidirectional motion.

CCI - the blue line in the regression window of the indicator.

Moving average (20; smoothed) - the blue line on the price chart.

Levels of Murray - multi-colored horizontal stripes.

Heikin Ashi is an indicator that color bars in blue or purple.

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Control zones of GBP / JPY as of July 18, 2018

July's growth is a strong medium-term impulse, which allows you to look for purchases in any downward movement that does not exceed the corrective control zone. This week, a local accumulation zone is being formed.

Since the beginning of this week, a downward correction model has been formed, the purpose of which is to test the NCP 1/2 147.39-147.20, where it will be possible to obtain the most favorable prices for the purchase of the instrument. The ratio of risk to profit with a purchase from NCP 1/2 will exceed 1 to 3, which makes it profitable in the medium term, since the objective is the NCP 1/2 of 150.01-149.82.

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Growth from current marks is less likely because yesterday's daily absorption pattern was formed, which increases the likelihood of today's decline and update of yesterday's low.

To form a reversal pattern, closing today's trades lower than the NCP 1/2 147.39-147.20 will be required. This will allow you to cancel purchases and close the balances of the previous long position. Sales will be possible tomorrow after the opening of trading below the level of 147.39. The probability of forming a reversal model is 30%, which makes sales from current marks less profitable. In case of confirmation of the downward movement, the target of the fall will be weekly short-term fault 145.49-145.11.

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The daily short-term fault is the daytime control zone. The zone formed by important data from the futures market, which change several times a year.

The weekly short-term fault is the weekly control zone. The zone formed by important futures market marks, which change several times a year.

The monthly short-term fault is the monthly control zone. The zone, which is a reflection of the average volatility over the past year.

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Analysis of EUR / USD Divergences on July 18. Jerome Powell helped the US dollar

4h

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The pair EUR / USD on the 4-hour chart, after the formation of just two bearish divergences from the CCI indicator, executed a turn in favor of the US currency and a drop to the correction level of 38.2% - 1.1639. Quit on July 18 from the Fibo level of 38.2% will allow traders to count on a reversal in favor of the EU currency and some growth in the direction of the corrective level of 50.0% - 1.1680. Brewing divergences are not observed today. Fixing the pair at the Fibo level of 38.2% will increase the likelihood of further fall in the direction of the next correction level of 23.6% - 1.1590.

The Fibo grid is built on the extremes of June 14, 2018, and June 21, 2018.

Daily

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On the 24-hour chart, the pair executed a reversal in favor of the US currency and resumed the decline to the corrective level of 100.0% - 1.1553. The pair's retreat from the Fibo level of 100.0% will allow traders to expect a turn in favor of the euro and some growth in the direction of the correction level of 76.4% - 1.1789. Fixing quotes below the Fibo level of 100.0% will increase the probability of continuing the fall towards the next correction level of 127.2% - 1.1285.

The Fibo grid is built on extremes from November 7, 2017, and February 16, 2018.

Recommendations for traders:

Buy EUR / USD on July 18 will be possible with a target of 1,1680 with a Stop Loss level under the correction level of 38.2% if there is a retreat from the Fibo level of 1.1639.

To sell the EUR / USD pair will be possible with the target of 1,1590, if the closing is carried out under the correction level of 38.2%, with a Stop Loss order above the level of 1.1639.

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Fractal analysis of GOLD on July 18

Forecast for July 18:

Analytical review on the scale of H1:

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For Gold, the key levels on the scale of H1 are: 1245.49, 1239.59, 1235.48, 1231.68, 1225.90, 1220.41, 1216.18 and 1208.01. Here we follow the downward structure of July 9th. Continued downward movement is expected after the breakdown of 1225.90, in this case the target is 1220.41, in the corridor 1220.41-1216.18 short-term downward movement, and also consolidation. The potential value for the bottom is the level of 1208.01 (the probable date of reaching 18-19 July), upon reaching this level, we expect a rollback to correction.

Short-term upward movement is possible in the corridor 1231.68 - 1235.45, the breakdown of the last value will lead to an in-depth correction, here the target is 1239.59, this level is the key support for the downward movement.

The main trend is the downward structure of July 9.

Trading recommendations:

Buy: 1231.68 Take profit: 1235.45

Buy: 1235.52 Take profit: 1239.55

Sell: 1225.70 Take profit: 1220.60

Sell: 1216.10 Take profit: 1208.30

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GBP / USD. July 17th. UK leaves the Customs Union and the EU Single Market

4-hour timeframe

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Amplitude of the last 5 days (high-low): 78p - 86p - 64p - 135p - 76p.

The average for the last 5 days is 88p (107p).

The calendar of macroeconomic events of Great Britain yesterday was absolutely empty, however, interesting information came from Prime Minister Theresa May. First, the prime minister was welcomed by the meeting between Trump and Putin and said that at his meeting with the US leader he had agreed on a dialogue with the United States. That is, Britain wants to establish relations with Russia in the long term. This time, Mei was different from her tough stance on Moscow. Secondly, in her Facebook account, May reported that the country was leaving the Customs Union and the EU Single Market in accordance with the Brexit procedure. That is, the Kingdom will conduct its own trade policy and conclude trade agreements with any countries. May also be noted that there will be a new free trade zone between the EU and Britain, and she will not tolerate the establishment of borders between Northern Ireland and Ireland or between Britain and Northern Ireland. After these news, the pound sterling fell in, slightly in value, from the indicator Ichimoku. According to many British politicians, Theresa May is retreating, and her new "soft" version of Brexit no longer matches. Many also wonder if Theresa May be able to keep her post, since after the resignations of Boris Johnson and David Davis, who disagreed with Brexit's plan, the chair under the premiere began to sway more strongly. In general, despite the slight strengthening of the British currency on Friday, July 13, the position of the pound sterling is still very uncertain. Thus, the downward movement can resume at any time.

Trading recommendations:

The GBP / USD currency pair began a downward correction against the new "golden cross". Thus, intraday can be considered soap lots of shorts.

The purchase orders will be available for the MACD indicator turns upwards with the target level of 1.3307, which is calculated based on the average volatility of the instrument. In this case, the bulls will try to form another round of ascending movement.

In addition to the technical picture, one should also take into account the fundamental data and the time of their release.

Explanations to the illustration:

Ichimoku Indicator:

Tenkan-sen is a red line.

Kijun-sen is a blue line.

Senkou Span A is a light brown dotted line.

Senkou Span B - a light purple dotted line.

Chinkou Span is a green line.

Bollinger Bands Indicator:

3 yellow lines.

MACD indicator:

Red line and histogram with white bars in the indicator window.

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

Review of EUR / USD pair as of July 18, 2013

The dollar continued its growth, and the first push gave data on the labor market in the UK, which, frankly, were extremely weak. So the pound, through the dollar index, pulled along a single European currency. But it did not stop there, and the dollar went up all day. Growth in the dollar was supported by data on industrial production, the growth rate of which accelerated from 3.2% to 3.8%. The contribution to the strengthening of the dollar introduced the head of the Fed, whose statements were quite curious.

After the press conference, Mr. Powell was questioned about customs duties and trade agreements, to which the head of the Federal Reserve said he did not agree with the policy of the White House. In his opinion, it is necessary to strive for the complete removal of all trade barriers in international trade. He also added, that while there is no way to calculate the consequences of the trade war, which in fact has already begun. However, unlike the ECB and the Bank of England, which mention trade disputes in the context of the refusal to tighten monetary policy, the Fed does not intend to revise its plans at the refinancing rate. Once again, the head of the US Central Bank confirmed that the refinancing rate will be raised once more by the end of the year. Such a confident position of the Fed gives the dollar strength that until the end of the year the refinancing rate will be increased one more time.

Today in Europe, the final inflation data is coming out, which should confirm the preliminary estimate, which showed an increase in inflation from 1.9% to 2.0%. Given that the growth of inflation in Europe is already taken into account by the market, and also the fact that the ECB has changed rhetoric, now, the inflation is not a criterion for changing the policy of the European regulator. The final inflation data will not have a significant impact on the market. American statistics are expected to be multidirectional, as the number of construction projects to be reduced by 2.2%, but the number of issued building permits may increase by 6.0%.

Given the strong overbought dollar, as well as the multi-directionality of US statistics, the probability of the growth of the single European currency to 1.1675 is high. If the data on the construction sector are better than expected, the euro may get stuck at the level of 1.1600.

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Trading plan for the European session of EUR / USD pair on July 18

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

It is better not to hurry in purchasing the euro and advised to look at long positions in the first half of the day after updating support in the area of 1.1614 with the formation of a false breakdown there or on a rebound from the new low at 1.1592. The main task of the buyers is to return and consolidation above 1.1652, which will lead to a larger upward correction to the area of 1.1690, where fixing profits are recommended.

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

While the trade is below 1.1652, the pressure on the euro will continue, which will lead to the renewal of support 1.1614 and, quite possibly, to a new low at 1.1592, where fixing profits are recommended. In the case of growth above 1.1652, selling EUR / USD can be rebounded from the resistance of 1.1690.

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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

Bitcoin analysis for July 18, 2018

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Trading recommendations: Recently, Bitcoin has been trading upwards. As I expected, the price tested the level of $7.509. According to the H1 time - frame, I found strong demand (upward momentum) on the market and potential running flat correction, which is a sign of strength. My advice is to watch for potential buying opportunities. The upward target and key resistance is set at the price of $7.731.

$7.509 - Intraday resistance; $7.233 – Intraday support; $7.731 – Objective target;

With InstaForex, you can earn on cryptocurrency's movements right now. Just open a deal in your MetaTrader4. *The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.

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

USD/CAD analysis for July 18, 2018

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Recently, USD/CAD has been trading upwards. The price tested the level of 1.3250. According to the H4 time - frame, I found a potential end of the bearish corrctive phase (flat abc), which is a sign that selling looks risky. MACD oscillator is rising and that is another sign of strength. My advice is to watch for potential buying opportunities. The upward target is set at the price of 1.3370.

Resistance levels: R1: 1.3244R2: 1.3285 R3: 1.3351

Support levels: S1: 1.3137 S2: 1.3070 S3: 1.3030

Trading recommendations for today: watch for potential buying opportunities.

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

GBP/USD analysis for July 18, 2018

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Recently, GBP/USD has been trading downwards. The price tested the level of 1.3009. According to the H1 time - frame, I found strong supply on the market. My advice is to watch for selling opportunities on the rallies. Watch for a potential bearish flag before you sell. The projected downward targets are set at the price of 1.2950 and at the price of 1.2900.

Resistance levels: R1: 1.3226R2: 1.3347 R3: 1.3425

Support levels: S1: 1.3027 S2: 1.2950 S3: 1.2828

Trading recommendations for today: watch for potential selling opportunities.

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

Intraday technical levels and trading recommendations for EUR/USD for July 18, 2018

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Daily Outlook

In April 2018, the EUR/USD pair outlook turned to become bearish when the pair pursued trading below the broken uptrend as well as the lower limit of the depicted consolidation range.

Shortly after, the price zone (1.1850-1.1750) offered temporary bullish rejection towards 1.1990. The EUR/USD bulls failed to pursue towards higher bullish targets. Instead, a descending high was established around 1.1990.

This was followed by bearish breakdown below the price zone of 1.1850-1.1750. This price zone has been standing as a significant Supply zone since June 2018.

On the other hand, the price zone of 1.1520-1.1420 was considered a prominent demand zone where a valid bullish BUY entry was offered during previous weeks' consolidations.

On July 10, signs of bearish rejection were manifested around 1.1750. That's why, a bearish movement was expected to occur towards 1.1650.

Lack of enough bearish momentum allowed another bullish pullback to occur towards 1.1750 (the lower limit of the depicted supply zone).

The EUR/USD pair remains trapped inside a consolidation range between the depicted key-levels 1.1520 and 1.1750 until breakout occurs in either direction.

Please note that any bullish breakout above 1.1750 will probably enhance bullish advancement towards 1.1850 (the upper limit of the depicted supply zone).

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NZD/USD Intraday technical levels and trading recommendations for July 18, 2018

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The NZD/USD pair had been trapped between the price levels of 0.7170 and 0.7350 until bearish breakdown of 0.7200 occurred on April 23.

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 price level of 0.7050 was considered a key-level for the NZD/USD bears That's why, bearish persistence below 0.7050 allowed further bearish decline to occur towards the price levels around 0.6800.

As anticipated, the recent bullish pullback towards the price level of 0.7050 (Broken Demand-Level) offered a good opportunity for a valid SELL entry.

Quick bearish decline took place towards 0.6800 where a false bearish breakdown occurred. This allowed temporary bearish movement to occur towards 0.6680. However, the pair failed to maintain enough bearish momentum.

On July 7, evident bullish rejection pushed the NZD/USD pair above 0.6820 again. This was followed by a recent bullish reversal pattern (123 pattern) which enhances the bullish side of the market.

Recent signs of bullish weakness are being manifested on the chart. The bulls are failing to maintain trading above 0.6820 which endangers the bullish reversal scenario.

Trade Recommendations:

The price zone 0.6750-0.6800 still constitutes a demand zone to be considered for a valid BUY entry.

Bullish fixation above 0.6820 should be maintained to provide enough bullish momentum towards 0.6900-0.6980.

Please be cautious if bearish decline extends below 0.6680 as this invalidates the suggested bullish scenario.

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Review of GBP/USD for the week of July 18 via simplified wave analysis

Wave picture of the H4 chart:

On the chart of the main pair of pound, a bearish zigzag is formed from January 25. For some time, the wave will move to a larger scale movement.

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The wave pattern of the H1 graph:

The level of the descending wave of April 17 is already prepared to move to a larger scale of the movement. In early July, a hidden correction (B) was completed at the minimum levels.

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The wave pattern of the M15 chart:

Since July 9, a new wave has started in the main direction of the pair's movement. After a possible rollback up, the price in the coming days is waiting for a new round of decline.

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Recommended trading strategy:

Proponents of long-term strategy before the opening of long positions should wait for the completion of the bearish correction. Trading on intraday fluctuations should focus on selling the pair.

Resistance zones:

- 1.3280 / 1.3330

Support zones:

- 1.2880 / 1.2830

Explanations to the figures: In a simplified wave analysis, waves consisting of 3 parts (A-B-C) are used. For analysis, 3 main TFs are used on each one, 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, the dotted - the expected movements.

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 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

Global macro overview for 18/07/2018

XAUUSD quotes marked a 1.0% sell-off on and were at the lowest level for a year. The reasons behind this drop were found in the strengthening of the US Dollar and the speech of the chairman of the Federal Reserve.

Testifying before the Senate Committee, Jerome Powell said that "with the right monetary policy, the labor market will remain strong and inflation will remain close to the 2% target in the next few years." In principle, it was difficult to expect the Fed's chief to say something else. But his comments were considered "hawks" any more and subsequent "gradual" interest rate increases are on the way.

The Fed "believes that - at least for now - the best way to proceed is to maintain a gradual increase in the federal funds rate," Powell said, reserving not to raise rates too fast and too high.

In fact, all this has already been said (or written) after the June increase in the federal funds rate. In the opinion of economists, the Fed will raise rates twice this year - by 25bp. higher than expected at the beginning of the year. And yet after Powell's speech, the dollar started strengthening against the euro - the EUR/USD rate fell by 0.4%.

The combination of rising interest rates in the US and dollar appreciation is doubly unfavorable for gold prices. First, because the alternative cost of holding cash in gold is increasing - by which it does not earn almost 3%. annually on US Treasury bonds. Secondly, because the increase in the dollar prices is traditionally correlated with lower prices of gold - yellow metal is getting more expensive for investors from outside the US.

Let's now take a look at the XAUSUD technical picture at the daily time frame. The effects of Powell speech were very bad for gold prices. The royal metal rate dropped by more than 1.0%, going down to USD 1227.80 per ounce. For the last time, such low gold prices were seen exactly a year ago - on July 17, 2017. After breaking the support in the form of a December low (around 1240 USD / oz), the next target for bears may be seen around the level of USD 1,200, where declines in March and July stopped in 2017.

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Fractal analysis for major currency pairs as of July 18

Dear colleagues.

For the EUR / USD pair, the price forms the potential for the top of July 13. The dynamics increase can be expected after 15:00. For the GBP / USD pair, the price forms the potential for the top of July 13. The development of this structure can be expected at 10:00 - 12:00. The breakdown at the level of 1.3248 is required. For the USD / CHF pair, the price is in correction from the upward trend. For the USD / JPY pair, the continuation of the development of the upward structure from July 9 is expected after passing the price of the noise range at 112.73 - 112.93. For the EUR / JPY pair, we follow the local upward structure of July 11. The level of 130.85 is the key support. For the GBP / JPY pair, the development of the local upward structure is possible after the breakdown of 149.45.

Forecast for July 18:

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: 1.1769, 1.1750, 1.1719, 1.1669, 1.1650, 1.1613 and 1.1586. Here, the price is close to the lifting of the upward structure from July 13, which requires passing the level of 1.1650. In this case, the first target is 1.1613. The potential value for the bottom is still the level of 1.1586. The continuation of the upward movement is expected after the breakdown of 1.1719. In this case, the target is 1.1750. We still consider the level of 1.1769 to be a potential value for the top. After reaching this level, we expect the consolidation of the price.

The main trend is the formation of the potential for the top of July 13, the stage of deep correction.

Trading recommendations:

Buy: 1.1720 Take profit: 1.1750

Buy 1.1752 Take profit: 1.1767

Sell: 1.1648 Take profit: 1.1615

Sell: 1.1611 Take profit: 1.1588

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For the GBP / USD pair, the key levels on the scale of H1 are 1.3289, 1.3216, 1.3178, 1.3155, 1.3088, 1.3051, 1.3031 and 1.2993. Here, the price has canceled the development of the upward trend and we are following the local structure for the bottom of July 16. The continuation of the downward movement is expected after the breakdown of 1.3088. In this case, the target is 1.3051. In the area of 1.3051 - 1.3031 is the consolidation of the price. The potential value for the bottom is the level of 1.2993. Reaching this level can be expected on July 19 - 20.

Short-term upward movement is possible in the area of 1.3155 - 1.3178. The breakdown of the last value will lead to in-depth correction. Here, the target is 1.3216. The breakdown of this level will lead to the development of the upward structure. Here, the target is 1.3289.

The main trend is the formation of a local downward structure from July 16.

Trading recommendations:

Buy: 1.3155 Take profit: 1.3176

Buy: 1.3180 Take profit: 1.3214

Sell: 1.3086 Take profit: 1.3055

Sell: 1.3028 Take profit: 1.2995

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For the USD / CHF pair, the key levels on the scale of H1 are: 1.0029, 1.0002, 0.9987, 0.9957, 0.9935, 0.9921, 0.9879 and 0.9852. Here, we follow the formation of a downward structure from July 13. At the moment, the price is in a deep correction. The continuation of the downward movement is expected after the breakdown of 0.9957. In this case, the target is 0.9935. Near this level is the consolidation of the price. Passing the price of the noise range of 0.9935 - 0.9921 should be accompanied by a pronounced movement towards the level of 0.9879. The potential value for the bottom is the level of 0.9852. The probable date of reaching it is July 18 - 19. Upon reaching this level, we expect a rollback upward.

Short-term upward movement is possible in the range of 1.0002 - 1.0029 hence, we expect a key down turn. The breakdown at the level of 1.0030 will lead to an upward tendency, the target here is 1.0068.

The main trend is the formation of a downward structure from July 13.

Trading recommendations:

Buy: 1.0002 Take profit: 1.0030

Buy: 1.0032 Take profit: 1.0065

Sell: 0.9955 Take profit: 0.9937

Sell: 0.9918 Take profit: 0.9882

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For the USD / JPY pair, the key levels on a scale are: 114.16, 113.78, 113.40, 112.68, 112.36, 112.09 and 111.71. Here, we expect the movement towards 113.40. In the area of 113.40 - 113.78 is short-term upward movement. The potential value for the top is level 114.16. Upon reaching this level, we expect a pullback downwards.

Departure towards correction is possible after the breakdown of 112.65. Here, the first target is 112.36. Short-term downward movement is possible in the area of 112.36 - 112.09. The breakdown of the last value will lead to the development of the downward structure. In this case, the potential target is 111.71.

The main trend is the upward structure of July 9.

Trading recommendations:

Buy: 113.42 Take profit: 113.76

Buy: 113.80 Take profit: 114.14

Sell: 112.65 Take profit: 112.38

Sell: 112.05 Take profit: 111.75

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For the CAD / USD pair, the key levels on the H1 scale are: 1.3384, 1.3247, 1.3193, 1.3071, 1.3025 and 1.2938. Here, the situation is still in an equilibrium state. Short-term upward movement is expected in the area of 1.3193 - 1.3247. The breakdown of the last value should lead to the formation of initial conditions for the upward cycle. Here, the potential target is 1.3384.

Short-term downward movement is possible in the area of 1.3071 - 1.3025. The breakdown of the latter value will lead to the formation of a potential for the downward movement. Here, the target is 1.2938.

The main trend is the equilibrium situation.

Trading recommendations:

Buy: 1.3250 Take profit: 1.3380

Buy: Take profit:

Sell: 1.3025 Take profit: 1.2940

Sell: Take profit:

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For the AUD / USD pair, the key levels on the scale of H1 are: 0.7434, 0.7410, 0.7355, 0.7341, 0.7318 and 0.7281. Here, we follow a small downward cycle from July 9. At the moment, the price is in correction. A more dynamic development of the situation can be expected after 15:00. The continuation of the downward movement is expected after passing through the noise range of 0.7355 - 0.7341. In this case, the target is 0.7318. The potential value for the top is the level of 0.7281 (the probable date of reaching July 13)

Short-term upward movement is possible in the area of 0.7410 - 0.7434. The breakdown of the last value will lead to the development of an upward structure. Here, the potential target is 0.7483.

The main trend is the downward cycle from July 9, the correction stage.

Trading recommendations:

Buy: 0.7436 Take profit: 0.7465

Buy: 0.7411 Take profit: 0.7432

Sell: 0.7340 Take profit: 0.7320

Sell: 0.7316 Take profit: 0.7284

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For the of EUR / JPY pair, the key levels on the scale of H1 are: 133.11, 132.38, 132.01, 131.73, 131.20, 130.85 and 130.42. Here, we follow the local upward structure of July 11. Mainly, we expect the departure towards correction. Short-term upward movement is expected in the area of 131.73 - 132.01. The breakdown of the last value will allow us to count on the movement towards the level of 132.38. Near this level is the consolidation of the price and hence, there is a high probability of leaving towards correction. For the potential value for the top, consider the level of 133.11. The probable date of reaching this level is July 17 - 18. Upon reaching this level, we expect a pullback downwards.

Short-term downward movement is possible in the area of 131.20 - 130.85. The breakdown of the last value will lead to in-depth correction. Here, the target is 130.42. This level is the key support for the upward structure of July 11.

The main trend is a local structure for the top of 11 July.

Trading recommendations:

Buy: 131.73 Take profit: 131.00

Buy: 132.05 Take profit: 132.35

Sell: 131.15 Take profit: 130.90

Sell: 130.80 Take profit: 130.45

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For the GBP / JPY pair, the key levels on the scale of H1 are: 151.26, 150.47, 150.11, 149.44, 149.01, 148.10, 147.58 and 147.04. Here, we follow the formation of the local upward structure from July 9. Mainly, we expect the departure towards correction. The continuation of the development of the upward structure of July 9 is expected after the breakdown of 149.01. The target is 149.44. From this area, there is a high probability of going down. The break at the level of 149.45 should be accompanied by a pronounced upward movement. Here, the target is 150.11. In the area of 150.11 - 150.47 is the consolidation of the price and from here, we expect a key turn down. The potential value for the top is the level of 151.26. The probable date of achievement is July 17 - 18.

Short-term downward movement is possible in the area of 148.10 - 147.58. The breakdown of the last value will lead to in-depth correction. Here, the target is 147.04. This level is the key support for the upward structure.

The main trend is a local structure for the top of July 9.

Trading recommendations:

Buy: 149.01 Take profit: 149.40

Buy: 149.48 Take profit: 150.10

Sell: 148.10 Take profit: 147.60

Sell: 147.55 Take profit: 147.07

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

Global macro overview for 18/07/2018

Yesterday's session in Europe was better than expected at the beginning of the day. Admittedly, the indexes opened on small cons, but in the last two hours, they started a systematic upward move, which allowed DAX to close 0.8% more than yesterday. The other exchanges gained from symbolic + 0.03% (IBEX) to + 0.7% (FTSE Mib). Such results are typical for days when the euro loses against the dollar. Indeed, the exchange rate of the single currency, which yesterday had peaked at 1.1745, now fluctuates around 1.163. A negative impulse for other currencies, above all the euro, was given by the British pound, which weakened by over 150 pips. In the United Kingdom, the topic of monetary policy normalization seems to lie outside the area of investors' interest, who look primarily at the desperate struggle of Prime Minister T. May to stay in power and to get the majority of votes for his own Brexit solutions in the parliament. Her last remarks which were an attempt to calm the Eurosceptic factions of the Conservatives by promising to write a new Brexit plan caused aggressive resistance to her solutions from the opposite wing. Although within the Tories themselves it seems obviously weaker but is not afraid of cooperation with the Labor Party. The first demonstration of strength was won by this wing of the opposition to May voting on how to remain under the regulatory regime of the Union regarding medicines. The attempt to win the option of remaining in the customs union with the EU after Brexit was repelled allegedly only thanks to the threat of the prime minister that her loss in the vote would mean accelerated elections (after which the eurosceptic wing would surely have come to power in the party).

In conclusion, the political future of Great Britain seems to hang in the balance, but the impact of the pound on the behavior of the rest of the currencies should gradually decrease.

Let's now take a look at the GBP/USD technical picture at the H4 time frame. The market is closer and closer to the technical support at the level of 1.3067 as the bears are still pushing the prices lower. The lower range of the support is the level of 1.3049 and if this level is violated, then the price next target is seen at the level of 1.3024 and then 1.3000. The level of 1.3094 will now act as an intraday resistance for bulls.

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USD / JPY: The yen resignedly follows the external fundamental background

The dollar-yen pair today resumed growth, updating the semi-annual price maximum. The Japanese currency is losing its positions again, resignedly following the greenback and the external fundamental background. There are no new arguments for the yen's growth. Moreover, the "dovish" position of the Bank of Japan renders background pressure on the national currency. Therefore, the southern pullback of the USD/JPY price can occur for two reasons: either because of the decline in the dollar index, or because of the aggravation of the trade war between the US and China (and / or the EU).

The trade conflict between the states and China is gradually losing the signs of a "classical" war in the conventional sense. Having exchanged the first economic blows, the parties began to behave asymmetrically. If Washington continued to prepare for the next "volley" in the form of new 10-percent duties on the six-thousand list of Chinese goods ($ 200 billion), then China took a somewhat passive position.

In its response, Beijing said that such actions by Americans harm not only the Chinese, but also the world economy, that is, indirectly, the States themselves. Then, representatives of the People's Republic of China filed another complaint to the WTO, publishing a short statement on this on the official website of the Ministry of Commerce. And that's all. This time, China did not "swing the sword" and threaten the opposing party with symmetrical actions or other measures of a reciprocal nature. This fact puzzled many market participants and among the traders there were rumors about the Chinese "capitulation".

Such a fundamental background allowed the bulls of the USD/JPY pair to finally gain a foothold above the key level of 110.00 and continue to grow. Then, the market began to discuss other information including the alleged attempt of China to create with the European Union a so-called "anti-American economic union" in order to jointly counteract the tariff policy of the White House. Information about such intentions appeared at the end of last week and allowed the yen to restore its position a little. The USD/JPY pair sank to the 112th figure's base.

However, this southern price retracement is even hard to call a correction, since at the beginning of this week, the growth of the USD/JPY pair again began to gain momentum. Most experts agreed that the "anti-American bloc", China-EU has no future, even if it will be created. Firstly, in this issue, it will be difficult to consolidate all the countries of the European Union. Secondly, Europe is not losing hope in someday agreeing with Donald Trump. The head of the European Commission Jean-Claude Juncker will visit Washington in late July, and he will hold talks with the head of the White House. If the findings of the profile committee on the impact of imports of European cars in the US will be in favor of Europe (announcement of the results of the investigation are expected next week), the results of Juncker's visit to the White House will be completed effectively. Therefore, Brussels is now not interested in escalating the situation and will not conclude any alliances with Washington against Beijing.

Thus, instead of developing a trade war, we see a slightly different scenario. The European Union has high hopes for Juncker's visit, and China has taken a somewhat passive and vague position in response to the White House's new intentions. It is too early to talk about Trump's "victory" or anyone's surrender. In our case, it is more important to know how the current situation is interpreted by the market. We see that the demand for protective assets has significantly decreased, including the yen. The dollar also reoriented its priorities somewhat, focusing on the prospects for the monetary policy of the Fed.

Here, it is worth recalling that this week (today and tomorrow), Jerome Powell will speak in the US Congress with a semi-annual report on monetary policy. At the moment, while he continues to speak, the information is only a fragment and incomplete. However, on the whole, it is already clear that Powell is still a supporter of a gradual rate hike, but at the same time he positively assesses the prospects for the American economy.

A combination of these factors pushes the USD/JPY pair up to new price highs. If tomorrow Jerome Powell continues his speech in the same vein as today, the probability of a fourfold increase in the rate this year will increase again and the US dollar will get an excuse for its strengthening.

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The technical picture of the USD/JPY pair also speaks in favor of a move towards the north. The pair is above the Kumo cloud of the Ichimoku Kinko Hyo indicator and above all its lines. The bullish "Line Parade" signal indicates the potential for further price growth. In addition, the pair is located on the top line of the Bollinger Bands indicator. This also indicates the bullish sentiment of traders.

As the immediate goal of the upward movement, you can consider the mark 113.20 as the upper line of the indicator Bollinger Bands on the timeframe W1. Stop-loss can be located in the support level. This is the line Tenkan-sen on the daily chart (price 111.60).

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Ichimoku cloud indicator analysis on EUR/USD for July 18, 2018

Yesterday I warned EUR/USD bulls that the price was challenging important cloud resistance at 1.1730-1.1760. A rejection at that level could push the price below 1.17 towards the lower triangle boundary around 1.1620. This is exactly what happened.

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Red lines - triangle pattern

Blue line - important support

The EUR/USD got rejected at the lower cloud boundary and pulled back towards the lower triangle boundary which is short-term support. A break below this level will open the way for a move towards 1.15 with very high chances of breaking below 1.15. As we previously said, as long as EUR/USD is below 1.1760 we remain bearish.

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Technical analysis of Gold for July 18, 2018

The Gold price is making new 2018 lows. The price is visiting levels last seen in the summer of 2017. The long-term trend line support we showed yesterday has been broken for the time being. Only a weekly close above $1,240 would give Gold bulls hope of a reversal.

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Blue lines - the bullish divergence remains

Red line - RSI support/bullish divergence

The Gold price broke below $1,237-35 support area and has visited $1,220 area as expected. Despite the new low the RSI did not make a new lower low. The RSI is at a higher level even since the low made on July 3rd near $1,236. Cloud resistance is found at $1,247 and bulls need to break this level to change short-term trend to bullish again. The RSI is also diverging on a daily basis and is very oversold on a weekly basis as well. This is not the time be chasing a short trade in Gold. At least a bounce towards $1,240-45 will come soon.

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Trading plan for 18/07/2018

The currency market is dominated by narrow ranges of the price fluctuations, but the dollar definitely holds power. On the stock exchanges, modest increases, after data and inventories, oil erases recovery and gold remains on long-term lows.

USD/JPY breaks through 113.00, EUR/USD falls under 1.1650. GBP/USD goes down at 1.31. NZD/USD completely erased the yesterday's inflation-based exchange rate and returned to 0.6760 while AUD/USD keeps close to 0.7370.

The stock markets have moderate optimism. Wall Street indexes have seen modest increases, SP500 has recovered 2,800 points. The weaker yen helps to lift the Nikkei 225, which grows for the fourth session in a row (today by 0.6%) and from the last Wednesday's hole is already about 5.0%. Chinese indices revolve around the line. The yield on US 10Y bonds is currently 2.867%.

On Wednesday the 18th of July, the main event of the day is Consumer Price Index data release from the UK, together with PPI Input and PPI Output data. Moreover, there will be Consumer Price Index data released from the Eurozone and Building Permits data release from the US. There is a scheduled speech from Federal Reserve Chairman Jerome Powell just at the beginning of the US session as well.

EUR/USD analysis for 18/07/2018:

Today, the Fed president will testify before the Senate Bank Committee. Although he may say something interesting, it should not cause a storm in the markets. The Fed very clear in its messages, the interest rate path is known in the near future, there are two more hikes this year. Recent macroeconomic data support expectations, the labor market looks solid and inflation is improving. Powell will probably repeat the message from the Fed minutes from 13 June meeting.

Let's now take a look at the EUR/USD technical picture at the H4 time frame. The current market conditions are rather calm as the price is trading inside of the range between the levels of 1.1615 (61% Fibo) and 1.1790 (swing high). The recent developments have pushed the price closer to the level of 1.1615 and the momentum is now starting to move south, away from its fifty level. This might suggest the bears are preparing for a test of the 61% Figo again and a possible breakout lower towards the levels 1.1590. Please notice the price is currently at the golden trend line dynamic support as well, so it is worth to keep an eye on it.

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Technical analysis of GBP/USD for July 18, 2018

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At the 4 hour chart we see that the cable is still moving with the bearish bias but we also see the divergence between the price and the Stochastic. Therefore, there is a possibility that the GBP/USD pair will correct its movements in a few days ahead to the upside at 1.3172. Overall, the bias in the GBP/USD pair is still bearish.

(Disclaimer)

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

Technical analysis of crude oil for July 18, 2018

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As seen on the daily chart, crude oil is still moving in the upward sloping channel, but now it has a correction to test the level 66.64. Unless the price breaks out and closes bellow 61.90, there is higher probability for #CL to go up again at least to the MA 21.

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Technical analysis: Intraday Level For EUR/USD, July 18, 2018

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When the European market opens, some Economic Data will be released such as German 30-y Bond Auction, Final Core CPI y/y, and Final CPI y/y. The US will release the Economic Data too, such as Beige Book, Crude Oil Inventories, Housing Starts, and Building Permits, so, amid the reports, EUR/USD will move in a low to medium volatility during this day.

TODAY'S TECHNICAL LEVEL:

Breakout BUY Level: 1.1711.

Strong Resistance:1.1704.

Original Resistance: 1.1693.

Inner Sell Area: 1.1682.

Target Inner Area: 1.1654.

Inner Buy Area: 1.1626.

Original Support: 1.1615.

Strong Support: 1.1604.

Breakout SELL Level: 1.1597.

Disclaimer: Trading Forex (foreign exchange) on margin carries a high level of risk, and may not be suitable for all Traders or Investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

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

Technical analysis: Intraday level for USD/JPY, July 18, 2018

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In Asia, Japan today will not release any Economic Data, but the US will release some Economic Data such as Beige Book, Crude Oil Inventories, Housing Starts, and Building Permits. So, there is a probability the USD/JPY will move with a low to medium volatility during this day.

TODAY'S TECHNICAL LEVEL:

Resistance. 3: 113.54.

Resistance. 2: 113.32.

Resistance. 1: 113.10.

Support. 1: 112.82.

Support. 2: 112.60.

Support. 3: 112.38.

Disclaimer: Trading Forex (foreign exchange) on margin carries a high level of risk, and may not be suitable for all Traders or Investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

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

Wave analysis of EUR / USD pair for July 17. Meeting of leaders of the US and Russia did not affect the pair

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Analysis of wave counting:

During the Monday session, the EUR/USD pair gained about 20 bp, counting the close of the day. Thus, the pair remains within the framework of the proposed wave 5 of the downward trend section. If this is the case, then the construction of an internal correction wave in the future has begun. On this basis, the decline in quotations should resume in the near future. The absence of breakdown of the maximum wave 4, in 3, the maximum wave a, in 4 indicates the preservation of the downward sentiment in the foreign exchange market. A successful attempt to break through the high of July 9 will require us in refining the wave count.

Goals for sales:

1.1510 - 100.0% by Fibonacci

1.1433 - 127.2% Fibonacci retracement

Goals for shopping:

1.1866 - 100.0% Fibonacci retracements

1.2072 - 127.2% by Fibonacci

General conclusions and trading recommendations:

There is every reason to assume completion of the wave construction at 4th in c. Thus, it is recommended to continue selling the pair with the first targets near the estimated marks of 1.1510 and 1.1433, which corresponds to 100.0% and 127.2% of Fibonacci. Moreover, I recommend buying the pair only after a successful attempt to break the maximum of the assumed wave c at 4th. Then the pair can proceed to a more extensive formation of the ascending set of waves. The material has been provided by InstaForex Company - www.instaforex.com

Bitcoin analysis for 18/07/2018

In the latest report, the USA, Switzerland, and Singapore were in the top three of the most favorable countries in terms of conducting initial monetary offers (ICO).

Analysts associated with the Crypto Finance Conference developed studies based on publicly available data on 100 ICO projects and compiled them according to countries in terms of funds raised and the number of projects launched.

The report underlines that the United States is the most favorable country for ICO. In total, 30 companies have started operations in this field. The second country is Switzerland, which is responsible for half of this number of projects, and Singapore ranks third, with 11 projects.

The report also includes Russia, Estonia and the United Kingdom as one of the most promising countries for financing cryptographic projects. The best months for ICO investment took place only four months ago, and 2018 overall has changed considerably since last year. ICO volumes have reached new records in the first half of 2018, amounting to twice as much as in 2017.

Let's now take a look at the Bitcoin technical picture at the H4 time frame. The bulls have broken above the technical resistance at the level of $6,809 on higher volume and strong momentum. They broke through the level of $6,993 and made a local high at the level of $7,500 at the time of writing. Nevertheless, the impulsive cycle does not look completed as the target for the wave 3/C is projected at the level of $7,752 - $7,890. The immediate support is seen at the level of $7,225 and the key support is now at the level of $6,993.

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Fractal analysis of major currency pairs for July 17

Dear colleagues.

For the Euro/Dollar pair, the price forms the potential top of July 13, the dynamics are expected to increase after 15:00. For the Pound/Dollar pair, the price forms the potential top of July 13, while the development of the structure can be expected at 10:00 - 12:00 and the breakdown at the 1.3248 level is required. For the Dollar/Franc pair, the price is in the correction from the upward trend. For the Dollar/Yen pair, the continuation of the development of the upward structure from July 9 is expected after the passage at the noise range price of 112.73 - 112.93. For the Euro/Yen pair, we follow the local upward structure of July 11 at the 130.85 key support level. For the Pound/Yen pair, the development of the local upward structure is possible after the breakdown of 149.45.

The forecast for July 17:

Analytical review of currency pairs in the H1 scale:

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For the EUR/USD pair, the key levels on the H1 scale are: 1.1769, 1.1750, 1.1719, 1.1696, 1.1669, 1.1650, 1.1613 and 1.1586. Here, the price is in correction from the descending structure and forms the potential top of July 13. Consolidated traffic is expected in the corridor 1.1696-1.1719, while the breakdown of the last value should be accompanied by a pronounced upward movement with the target at 1.1750, in the corridor 1.1750 - 1.1769 consolidation.

Short-term downward movement is possible in the corridor 1.1669 - 1.1650, while the breakdown of the last value is projected to develop a downward structure with the target at 1.1613. We consider the 1.1586 level to be the potential value for the bottom as we expect a rollback to the top.

The main trend is the formation of the potential for the top of July 13.

Trading recommendations:

Buy: 1.1696 Take profit: 1.1716

Buy 1.1722 Take profit: 1.1750

Sell: 1.1667 Take profit: 1.1652

Sell: 1.1648 Take profit: 1.1615

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For the Pound/Dollar pair, the key levels on the H1 scale are 1.3379, 1.3341, 1.3289, 1.3248, 1.3206, 1.3184 and 1.3155. Here, the price forms the potential upward movement of July 13. The continuation of the upward movement is expected after the breakdown of 1.3248, in this case the target is 1.3289 near consolidation level of the price. A break of 1.3290 should be accompanied by a pronounced upward movement with the target at 1.3341. The potential value for the top is the 1.3379 level, we expect a downward pullback upon reaching this region.

Short-term downward movement is possible in the corridor 1.3206 - 1.3184, the breakdown of the last value will lead to an in-depth correction with the target at 1.3155. The breakdown of this level will continue the downward structure, however, the downward structure from July 9 is no longer relevant when the price leaves the 13th zone.

The main trend is the formation of the potential for the top of July 13.

Trading recommendations:

Buy: 1.3250 Take profit: 1.3287

Buy: 1.3292 Take profit: 1.3335

Sell: 1.3206 Take profit: 1.3186

Sell: 1.3182 Take profit: 1.3157

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For the Dollar/Franc pair, the key levels on the H1 scale are: 1.0029, 1.0002, 0.9987, 0.9957, 0.9935, 0.9921, 0.9879 and 0.9852. Here, we follow the formation of the downward structure from July 13. The downward movement is expected to continue after the breakdown of 0.9957, in this case the target is 0.9935 near the consolidation level. Passage at the price of the noise range 0.9935 - 0.9921 should be accompanied by a determined movement to the 0.9879 level. The potential value for the bottom is the 0.9852 level, the probable date of reaching that area is July 18-19 and we expect an upward rollback upon reaching this level.

Short-term upward movement is possible in the range of 0.9987 - 1.0002, breakdown of the last value will lead to an in-depth correction with the target at 1.0029, this level is the key support for the downward structure.

The main trend is the formation of a downward structure from July 13.

Trading recommendations:

Buy: 0.9987 Take profit: 1.0000

Buy: 1.0004 Take profit: 1.0025

Sell: 0.9955 Take profit: 0.9937

Sell: 0.9918 Take profit: 0.9882

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For the Dollar/Yen pair, the key levels on the scale are: 113.78, 113.40, 112.93, 112.73, 112.36, 112.09 and 111.71. Here, we follow the upward structure of July 9th. The continuation of the upward movement is expected after the passage at the noise range price of 112.73 - 112.93, in this case the target is 113.40 near the consolidation level. The potential value for the top is the level 113.78 (the probable date of reaching is July 16 - 18), hence, we expect a downward pullback upon reaching this level.

Short-term downward movement is possible in the corridor 112.36 - 112.09, the breakdown of the last value will lead to an in-depth correction and the target is 111.71, this level is the key support for the top.

The main trend: the upward structure of July 9.

Trading recommendations:

Buy: 112.95 Take profit: 113.40

Buy: 113.42 Take profit: 113.76

Sell: 112.34 Take profit: 112.12

Sell: 112.05 Take profit: 111.75

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For the Canadian Dollar/US Dollar pair, the key levels on the H1 scale are: 1.3384, 1.3247, 1.3193, 1.3071, 1.3025 and 1.2938. Here, the situation remains in an equilibrium state. Short-term upward movement is expected in the corridor 1.3193 - 1.3247, the breakdown of the last value is expected to lead the formation of initial conditions to the upward cycle. Here, the potential target is 1.3384.

Short-term downward movement is possible in the corridor 1.3071 - 1.3025, the breakdown of the latter value will lead to the formation of a potential downward movement with the target at 1.2938.

The main trend is the equilibrium situation.

Trading recommendations:

Buy: 1.3250 Take profit: 1.3380

Buy: Take profit:

Sell: 1.3025 Take profit: 1.2940

Sell: Take profit:

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For the Australian Dollar/US Dollar pair, the key levels on the H1 scale are: 0.7434, 0.7410, 0.7355, 0.7341, 0.7318 and 0.7281. Here, we follow a small downward cycle from July 9, as the price is currently in correction. More dynamic development of the situation can be expected after 15:00. The downward movement is expected to continue after passing through the noise range of 0.7355 - 0.7341, and in this case the target is 0.7318. The potential value for the top is the 0.7281 level (the probable date of reaching is July 13).

Short-term upward movement is possible in the corridor 0.7410 - 0.7434, the breakdown of the last value will develop an ascending structure with the potential target at 0.7483.

The main trend is the downward cycle from July 9, the correction stage.

Trading recommendations:

Buy: 0.7436 Take profit: 0.7465

Buy: 0.7411 Take profit: 0.7432

Sell: 0.7340 Take profit: 0.7320

Sell: 0.7316 Take profit: 0.7284

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For the Euro/Yen pair, the key levels on the H1 scale are: 133.11, 132.38, 132.01, 131.73, 131.20, 130.85 and 130.42. Here, we follow the local upward structure of July 11. Short-term upward movement is expected in the corridor 131.73 - 132.01, the breakdown of the last value is expected to move to the 132.38 level, which is near the consolidation level. Hence, there is a high probability of withdrawal into correction. The potential value for the top is the 133.11 level and expected to reach on July 17 - 18, upon reaching this level we expect a downward pullback.

Short-term downward movement is possible in the corridor 131.20 - 130.85, the breakdown of the last value will lead to an in-depth correction with the target at 130.42, this level is the key support for the upward structure of July 11.

The main trend is a local structure for the top of 11 July.

Trading recommendations:

Buy: 131.73 Take profit: 131.00

Buy: 132.05 Take profit: 132.35

Sell: 131.15 Take profit: 130.90

Sell: 130.80 Take profit: 130.45

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For the Pound/Yen pair, the key levels on the H1 scale are: 151.26, 150.47, 150.11, 149.44, 149.01, 148.10, 147.58 and 147.04. Here, we follow the formation of the local upward structure of July 9. The development of the upward structure of July 9 is expected to continue after the breakdown of 149.01, with the target at 149.44. There is a high probability to leave down from this corridor. A break at the 149.45 level should be accompanied by a determined movement upward with the target at 150.11, in the corridor 150.11 - 150.47 consolidation and a key turn down is expected from here. The potential value for the top is the 151.26 level and could possibly achieve on July 17 - 18.

Short-term downward movement is possible in the corridor 148.10 - 147.58, the breakdown of the last value will lead to an in-depth correction with the target at 147.04, this level is the key support for the upward structure.

The main trend is a local structure for the top of July 9.

Trading recommendations:

Buy: 149.01 Take profit: 149.40

Buy: 149.48 Take profit: 150.10

Sell: 148.10 Take profit: 147.60

Sell: 147.55 Take profit: 147.07

* 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

Jerome Powell Testimony

Jerome Powell Testimony

On Tuesday, the new head of the Federal Reserve, Jerome Powell, made a regular semi-annual report to the US Congress. This is his second appearance as Fed Chairman. The report or testimony of the head of the Fed on the state of the economy and monetary policy will come out within two days with the second statement slated to be reported on Wednesday, July 18.

What did the head of the Fed say? He said that the US economy is in strong shape and GDP growth for the second quarter is expected with a significant increase compared to the first quarter (data will be released at the end of July).

The main success of the Federal Reserve is a strong labor market. Unemployment is about 4%, the lowest level since 1999, unemployment in the generally problematic population groups: young people, African Americans, and Hispanics has significantly decreased.

Inflation reached an important milestone of 2% per annum. The total inflation fluctuates 2.3-2.9%, without gasoline at 2%.

The Fed is gradually turning the aim of the policy of rates on controlling inflation.

The Fed sees the best behavior for itself to continue to gradually raise the rate, but slowly and not faster than recent hikes, so as not to lower the growth rate.

The Fed notes the possible risks from the "trade wars", but is not ready to predict the consequences, and is closely monitoring the situation.

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

Fundamental Analysis of EUR/AUD for July 18, 2018

EUR/AUD has been extremely corrective and volatile above 1.5750 area recently which is expected to push a bit lower before pushing higher with the trend in the coming days. Though EUR has been the dominant currency in the pair but recent worse economic reports and event increased the struggle to sustain the momentum in the process.

AUD has been quite positive and optimistic about the upcoming economic developments which may lead to certain gain on the AUD side in the coming days. The Employment sector has grown quite well along with the Business sector whereas Unemployment Rate is at the lowest. Moreover, the Trade War tension has not quite impacted the economic growth of the country as well. Today AUD MI Leading Index report was published with an increase to 0.0% from the previous value of -0.2% which did help AUD to sustain its momentum against the EUR gains and expected to push much lower in the coming days.

On the EUR side, today EURO Final CPI report is going to be published which is expected to be unchanged at 2.0% and Final Core CPI is expected to be unchanged at 1.0%.

As of the current scenario, the EURO is currently quite indecisive with the forecasts whereas AUD is proving to be quite promising with the upcoming developments. Though EUR has been struggling with the recent gains but still capable of pushing higher in the coming days if it manages to perform better than expected in the coming economic reports and events.

Now let us look at the technical view. The price is currently quite volatile and corrective having an indecision daily candle yesterday. Currently, it is expected to push lower towards 1.5750 where the Kumo Cloud support and Dynamic level of 20 EMA support are expected to hold the price and push higher towards 1.60 area in the coming days. As the price remains above 1.57 with a daily close, the bullish bias is expected to continue.

NEAR TERM SUPPORT: 1.5750

RESISTANCE: 1.60

BIAS: BULLISH

MOMENTUM: VOLATILE AND CORRECTIVE

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