Fractal analysis for major currency pairs as of July 20

Dear colleagues.

For the EUR / USD pair, there is a high probability of canceling the downward structure from July 17, for which a breakdown of 1.1688 is necessary. For the GBP / USD pair, the continuation of the development of the downward structure from July 16 is expected after the breakdown of 1.2990. For the USD / CHF pair, the situation is in an equilibrium state. We expect its decoupling after 14:00. For the USD / JPY pair, the price is in correction. In order to resume an upward trend, local initial conditions are necessary. For the EUR / JPY pair, we follow the downward structure of July 17. For the GBP / JPY pair, we follow the downward structure from July 16. In the morning we expect the move to correction mainly.

The forecast for July 20:

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: 1.1744, 1.1709, 1.1688, 1.1669, 1.1613, 1.1578, 1.1550 and 1.1517. Here, the price is close to the cancellation of the downward structure from July 17, as it is in the final 8th zone and has formed a small potential for the top. The continuation of the downward movement is expected after the breakdown of 1.1613. In this case, the target is 1.1578. In the area of 1.1578 - 1.1550 the short-term downward movement, as well as is the consolidation of the price. The potential value for the bottom is the level of 1.1517, upon reaching which we expect a pullback upward.

Short-term upward movement is possible in the area of 1.1669 - 1.1688. The breakdown of the last value will lead to in-depth correction. Here, the target is 1.1709. This level is the key support for the downward structure.

The main trend is a downward structure from July 17, a deep correction.

Trading recommendations:

Buy: 1.1670 Take profit: 1.1686

Buy 1.1690 Take profit: 1.1707

Sell: 1.1611 Take profit: 1.1580

Sell: 1.1576 Take profit: 1.1555

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For the GBP / USD pair, the key levels on the H1 scale are 1.3155, 1.3114, 1.3088, 1.3031, 1.2993, 1.2935 and 1.2902. Here, we continue to follow the downward structure of July 16. Short-term downtrend is expected in the area of 1.3031 - 1.2993. The breakdown of the last value should be accompanied by a pronounced movement towards the level of 1.2935, the potential value for the bottom is the level of 1.2902, upon which we expect is the consolidation of the price.

Short-term uptrend is possible in the area of 1.3088 - 1.3114. The breakdown of the last value will lead to in-depth correction. Here, the target is 1.3155. This level is the key support for the bottom.

The main trend is the downward structure of July 16.

Trading recommendations:

Buy: 1.3088 Take profit: 1.3112

Buy: 1.3116 Take profit: 1.3150

Sell: 1.3030 Take profit: 1.2995

Sell: 1.2990 Take profit: 1.2937

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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, the situation has entered the equilibrium state: the downward structure of July 13 and the designed potential for the top of July 17. Decoupling of this situation is expected after 14:00, level 1.0029 is the key resistance for the top, and the level is 0.9957 for the bottom. 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 is the consolidation of the price. Passing the price of the noise range 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 turn to the bottom. The breakdown at 1.0030 will lead an upward tendency, the target here is 1.0068.

The main trend is the equilibrium situation.

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, the key levels on a scale are: 114.16, 113.78, 113.40, 112.68, 112.36, 112.09 and 111.71. Here, for the continuation of the upward movement, we expect the design of the local structure, while the price has entered the corrective zone and forms the potential for a downward movement from July 18. Continuation of the upward trend is possible after the breakdown of 113.01. Here, the first target is 113.40. In the area of 113.40 - 113.78 the short-term upward movement. The potential value for the top is level 114.16, upon reaching which we expect a pullback downwards.

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: the upward structure of July 9, the correction stage.

Trading recommendations:

Buy: 113.01 Take profit: 113.40

Buy: 113.45 Take profit: 113.75

Sell: 112.05 Take profit: 111.75

Sell: Take profit:

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For the CAD / USD pair, the key levels on the H1 scale are: 1.3395, 1.3370, 1.3330, 1.3303, 1.3246, 1.3218 and 1.3188. Here, we follow the small upward cycle of July 17, which today is already completed its development and on July 21 we expect a correction. Short-term upward movement is possible in the area of 1.3303 - 1.3330. The breakdown of the last value should be accompanied by a pronounced movement towards the level of 1.3370, the potential value for the top is the level of 1.3395, upon reaching which, we expect a pullback downwards.

Short-term downward movement is possible in the area of 1.3246 - 1.3218. The breakdown of the last value will lead to in-depth correction. Here, the target is 1.3188. This level is the key support for the top.

The main trend is the upward cycle from July 17.

Trading recommendations:

Buy: 1.3303 Take profit: 1.3330

Buy: 1.3333 Take profit: 1.3370

Sell: 1.3246 Take profit: 1.3220

Sell: 1.3216 Take profit: 1.3190

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For the AUD / USD pair, the key levels on the H1 scale are: 0.7434, 0.7410, 0.7380, 0.7355, 0.7318, 0.7287, 0.7243, 0.7218 and 0.7179. Here, we determined the subsequent objectives from the local downward structure on July 19. The continuation of the downward movement is expected after passing the price of the noise range 0.7318 - 0.7287. In this case, the target is 0.7243. In the area of 0.7243 - 0.7218 is the consolidation of the price. The potential value for the bottom is the level of 0.7179, upon reaching this level, we expect a rollback to the top.

Short-term upward movement is possible in the area of 0.7355 - 0.7380. The breakdown of the last value will lead to in-depth correction. Here, the target is 0.7410. This level is the key support for the bottom.

The main trend is the local structure of July 19.

Trading recommendations:

Buy: 0.7380 Take profit: 0.7408

Buy: Take profit:

Sell: 0.7285 Take profit: 0.7245

Sell: 0.7216 Take profit: 0.7180

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For the EUR / JPY, the key levels on the scale of H1 are: 131.92, 131.44, 131.20, 130.47, 130.08, 129.77 and 129.39. Here, we follow the development of the downward movement of July 17. The continuation of the movement downwards is expected after the breakdown of 130.47. In this case, the target is 130.08. In the area of 130.08 - 129.77 the consolidation of the price. We consider the level of 129.39 to be a potential value for the downward movement, after which we expect a pullback to the top.

Short-term upward movement is possible in the area of 131.20 - 131.44. The breakdown of the last value will lead to form a local upward structure. In this case, the potential target is 131.92.

The main trend is the downward structure of July 17.

Trading recommendations:

Buy: 131.20 Take profit: 131.40

Buy: 131.46 Take profit: 131.90

Sell: 130.45 Take profit: 130.15

Sell: 130.05 Take profit: 129.80

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For the GBP / JPY pair, the key levels on the scale of H1 are: 148.11, 147.37, 146.89, 145.91, 145.01, 144.33 and 143.46. Here, we continue to follow the downward structure of July 16. The continuation of the downward movement is expected after the breakdown of 145.91. In this case, the target is 145.01. In the area of 145.01 - 144.33 short-term downward movement, as well as is the consolidation of the price. The potential value for the bottom is the level of 143.46, the probable date of reaching it on July 21 and beyond.

Short-term upward movement is possible in the area of 146.90 - 147.37. The breakdown of the last value will lead to in-depth correction. Here, the target is 148.10. This level is the key support for the downward structure.

The main trend is the downward structure of July 16.

Trading recommendations:

Buy: 146.90 Take profit: 147.35

Buy: 147.45 Take profit: 148.10

Sell: 145.90 Take profit: 145.10

Sell: 145.00 Take profit: 144.40

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Control zones GBPUSD 20.07.18

The previous day's decline in the rate did not allow it to reach the target zone of NKZ 1/2 1.2953-1.2941, which increases the probability of resuming the downward movement and updating the July low.

Yesterday's closing of the US session occurred below the first resistance of the NKZ 1/4 1.3027-1.3021. If the pair continues to trade below the specified zone, then it will be necessary to search for a pattern for selling, since the probability of a recurrence of the fall is 70%. In case of a breakdown and consolidation of the above mentioned zone, the next growth target will be the NKZ 1/2 1.2097-1.3085, where the fate of the current stage of the bearish momentum will be determined. Closing of the current week's trades below the specified zone will allow to consider selling in order to update the July low.

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It is important to note that the downward movement remains a medium-term momentum, so you should not hurry with purchases. Reversal models imply a way out of the position of a large number of bears and only the second phase is an impulse in the opposite direction, which allows you to search for favorable prices after confirmation.

The formation of the reversal model will require today's closing of the US session to be above the level of 1.3097. This will cancel the option with the update of the July low and will allow you to search for purchases at the beginning of next week. The growth target will be the weekly short-term target of 1.3239-1.3213, the achievement of which will bring the movement into the flat phase. The first signs of demand are already there, but for profitable purchases from the current levels this is not enough. Sales from the current levels look more attractive, but it requires the formation of a pattern in order to be able to set a stop, which will be less than the potential profit by three times.

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Daytime CP is the day control area. The zone formed by important data from the futures market, which change several times a year.

Weekly CP is the weekly control zone. The zone formed by the important marks of the futures market, which change several times a year.

Monthly CP is the monthly control zone. The zone, which is a reflection of the average volatility over the last year.

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Intraday technical levels and trading recommendations for EUR/USD for July 20, 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) where bearish pressure was expressed on Tuesday.

That's why, the EUR/USD pair remains trapped inside the 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 liberate a quick bullish movement 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 20, 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.

A quick 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.

Currently, recent signs of bullish weakness are being manifested on the chart. The bulls are failing to maintain enough bullish momentum above 0.6820 which may endanger 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 is needed to provide enough bullish momentum towards 0.6900-0.6980.

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

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Wave analysis of EUR / USD for July 20. Euro bounced up, but keeps the prospects of decline to 15 figure

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Analysis of wave counting:

During the trades on Thursday, the currency pair EUR / USD gained about 70 percentage points from the day's low. Thus, the assumed wave 3, 5, assumes a slightly more complicated form than was originally intended, nevertheless continues its construction. The wave 4 of the trend's downward part can theoretically take the 5-wave form of the convergent triangle. However, after completion of the construction of even 5 internal waves, a downward wave 5 should be built. Thus, based on the current wave counting, in the perspective of the next month or two, the euro has only one option, a further decline either directly from the current position or after the wave e, 4, is constructed if the transformation does happen.

The objectives for the option with sales:

1.1510 - 100.0% of Fibonacci

1.1433 - 127.2% of Fibonacci

The objectives for the option with purchases:

1.1866 - 100.0% of Fibonacci

1.2072 - 127.2% of Fibonacci

General conclusions and trading recommendations:

Ascending correction wave 2, 5, completed its construction. If this is the case, then the pair will resume in the coming days the decline in quotes with targets located near the estimated marks of 1.1510 and 1.1433, which is equivalent to 100.0% and 127.2% of Fibonacci. Therefore, I recommend selling a pair with these goals. Even if wave 4 takes a more complex look, it is unlikely to be able to update the maximum from July 9, below which a good opportunity for sales remains.

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Trump will not be able to influence the actions of the Fed

Unexpected yesterday's statements by D. Trump in the media that he is not satisfied with the strengthening of the dollar, led to a local decline in national currencies, and the question arises: should we expect to continue its decline?

In our view, although Trump's words were emotional, they contained an important aspect of the success of the post-crisis growth of the American economy, which was built and is still based on the fact that the availability of cheap loans helped the economy recover, and the current real interest rates are still at historically low levels positions. But at the same time, we must recognize that in the economy at the moment, there are processes of increasing inflationary pressures, which can not be overlooked. This means that if the Fed goes over the president's account and stops raising interest rates, inflation may get out of control, and the economy can over-heat quickly over time, which will unequivocally lead to its stalling into a new recession.

In our opinion, the words of the American president should be taken as his opinion and as a verbal intervention. He himself actually initiated the process of strengthening the growth of the dollar with a new tax reform, as well as significant budgetary allocations to support the national commodity producer. Trade wars and against this background the actual creation of greenhouse conditions for the local commodity producer will support inflation. And if in this case the Fed goes on the occasion and stops raising the cost of borrowing, then the US economy in the future will have significant problems that will unambiguously due to its influence in the world spread to the world economy. Therefore, we believe that the regulator will not change its plans, and therefore we should not expect a radical change in the monetary policy.

As for today's dynamics of the foreign exchange market, then, most likely, the overall lateral trend will continue. We continue to believe that it is possible to buy the US currency against the main currency at its local decline.

Forecast of the day:

The currency pair EUR / USD is trading below the level of 1.1685. Probably, today it will remain in the range of 1.1580-1.1685. We consider the sales of the pair on growth from the upper boundary to the target level 1.1580 to be a priority. Although it is possible and a simple price reduction to this level.

The currency pair GBP / USD is trading below the 1.3035 level. There is a possibility of its fall to 1.2900 on the wave of lower expectations that the Bank of England will raise interest rates until the fall of this year.

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Analysis of EUR / USD Divergences on July 20. Bull divergence helped the euro

4h

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The EUR / USD pair on the 4-hour chart reversed in favor of the European currency after the rebound from the correction level of 23.6% to 1.1590 and the fixation over the Fibo level of 38.2% to 1.1639. As a result, the growth process on July 20 can be continued in the direction of the next correction level of 50.0% - 1.1680. The consolidation of the pair's rate under the Fibo level of 38.2% will work in favor of the US dollar and the resumption of the fall towards the corrective level of 23.6% - 1.1590. Quit of quotes from the Fibo level of 50.0% likewise will allow some expectation to fall.

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 drop in quotations continues in the direction of the corrective level of 100.0% - 1.1553. The bullish divergence of the CCI indicator is maturing: the last low of quotations may turn out to be higher than the previous one and does not correspond to the low of the indicator. The bullish divergence will allow us to count on a reversal in favor of the EU currency and some growth towards the Fibo level of 76.4% - 1.1789. Quit of quotations from the correction level of 100.0% will similarly work in favor of the euro. Fixing the pair under the Fibo level of 100.0% will increase the probability of further falling in the direction of 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 20 with a target of 1,1680 with a Stop Loss level under the correction level of 38.2%, as there was a close above the 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 Fibo level of 1.1639.

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Analysis of GBP / USD Divergences for July 20. Correction signals received

4h

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The pair GBP / USD on the 4-hour chart complied with the correction level of 200.0% - 1.3047. Bullish divergence in the CCI indicator allows the pair to perform some growth. Fixing the quotes of the pair above the Fibo level of 200.0% will allow to expect the continuation of growth in the direction of the correction level of 161.8% - 1.3301. The pair's exit from the Fibo level of 200.0% will work in favor of the US currency and the resumption of a fall towards the corrective level of 261.8% - 1.2638. On July 20, there are no new brewing divergences.

The Fibo grid is built on extremes from March 1, 2018 and April 17, 2018.

1h

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On the hourly chart, the pair executed a reversal in favor of the British currency after the formation of bullish divergence in the MACD indicator and the rebound from the corrective level of 127.2% to 1.2963. As a result, the pair growth process can be continued in the direction of the correction level of 100.0% - 1.3049. Quit of quotations from the Fibo level of 100.0% will allow traders to count on a reversal in favor of the US currency and a return to the correction level of 127.2% - 1.2963. Fixing the quotes above the Fibo level of 100.0% will increase the chances for further growth in the direction of the next correction level of 76.4% - 1.3122.

The Fibo grid is built on the extremes of June 22, 2018, and June 28, 2018.

Recommendations for traders:

Purchases of the GBP / USD pair can now be kept open with a target of 1.3049 and a Stop Loss order under the correction level of 127.2%, since there has been a retreat from the Fibo level of 1.2963 (hourly chart). Closing above the correction level of 100.0% will help to keep purchases with the target of 1.3122.

Sell GBP / USD pair will be possible with the target of 1.2963 and a Stop Loss order above the correction level of 100.0% if there is a retreat from the Fibo level 1.3049.

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Control zones of the currency pair AUD / USD as of July 19, 2018

Today, there was a test NCP 1/2 0.7412-0.7406, which allows you to consider sales, the purpose of which will be yesterday's low. The downward model will remain a priority as long as US sessions close below the control zone.

At the test zone of resistance zone NCP 1/2 0.7412-0.7406 there was a sufficiently large take-off, which indicates the need to search for a pattern for sale. Yesterday's US session closed below the zone. This speaks in favor of a depreciation at the end of this week. The first goal of the fall will be a weekly short-term fault of 0.7360-0.7348, where partial fixation is required. The main goal is the NCP 1/2 0.7286-0.7280, which is already a medium-term goal and will become active at the close of the American session below the level of 0.7348.

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It is important to note that in the middle of June a complex flat model is formed, where the main levels of support / resistance are monthly extremes, when approaching to which it is required to withdraw part of the position from the market.

To form a reversal model, you need to close today's US session above the level of 0.7412. This will open the way for growth to the weekly short-term fault of 0.7481-0.7469, which will act as a determining resistance for medium-term growth. In the conditions of a protracted flatten, it is necessary to consider the possibilities of getting out of it and fixing it with further movement in the direction of breakdown. The downward movement still remains a priority, which makes the probability of updating the monthly minimum equal to 70%.

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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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Technical analysis of NZD/USD for July 20, 2018

analytics5b51ae3bd1b33.pngThe NZD/USD pair continues to move downwards from the level of 0.6807. The pair has dropped from the level of 0.6807 to trade around the 0.6775 level. This level of 0.6807 coincides with the major resistance today. Today, the first resistance level is seen at 0.6807 followed by 0.6880, while daily support 1 is found at 0.6742. Also, the level of 0.6775 represents a key price today for that it is acting as major resistance/support this week. Amid the previous events, the pair is still in a downtrend, because the NZD/USD pair is trading in a bearish trend from the new resistance line of 0.6807 towards the first support level at 0.6742 in order to test it. If the pair succeeds to pass through the level of 0.6742, the market will indicate a bearish opportunity below the level of 0.6742. Then, resell again at the price of 0.6742 with the targets of 0.6716 and 0.6697. On the other hand, if a breakout happens at the resistance level of 0.6840, then this scenario may be invalidated.

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Technical analysis of USD/CAD for July 20, 2018

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Overview:

The pivot point is seen at the price of 1.3247, for that the trend is still trade around it since yesterday. The USD/CAD pair will probably continue to rise from the level of 1.3139. 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 1.2990 can occur which would indicate a bearish market.

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BITCOIN Analysis for July 20, 2018

Bitcoin is still able to sustain the bullish momentum it had since it had broken above $6,500 area with a daily close earlier. Though the price has been expected earlier to hit the $5,000 area before showing any impulsive bullish pressure, the price bouncing above $6,000 area inspired some optimism about a further price move of Bitcoin. Its price is currently getting closer to $8,000 resistance area. At present, there has been a lot of speculations going on about Bitcoin but the price is quite bullish despite the recent correction in the intraday charts. As the price remains above $6,500 area with a daily close, despite being inside the Kumo Cloud resistance, the price is expected to push higher towards $8,000-8,500 area in the coming days.

SUPPORT: 6500

RESISTANCE: 8000-8500

BIAS: BULLISH

MOMENTUM: CORRECTIVE

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USD/JPY analysis for July 20, 2018

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Recently, USD/JPY has been trading downwards. The price tested the level of 112.05. Anyway, acording to the H1 time - frame, I found a potential upward correction in progress (abc flat). My advice is to watch for potential downward opportunities. The strong resistance is found at the price of 112.65. The downward target is set at the price of 112.06.

Resistance levels: R1: 113.00R2: 113.60 R3: 114.00

Support levels: S1: 111.90S2: 111.47S3: 100.85

Trading recommendations for today: watch for potential selling opportunities.

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Bitcoin analysis for July 20, 2018

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Trading recommendations:

Recently, Bitcoin has been trading sideways at the price of $7,426. Anyway, according to the H1 time frame, I found a potential end of the downward correction (expanded flat), which is a sign that selling looks risky. I also found a broken intraday supply trendline, which is another sign of the strength. My advice is to watch for potential buying opportunities. The upward targets are set at the price of $7.548 and at the price of $7.725.

$7,525 - Intraday resistance; $7,305 – Intraday support; $7,548 – Objective target 1; $7,725 - Objective target 2;

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

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The euro and the pound will continue to decline

Eurozone

The euro continues to trade in a range while the markets cannot find a reason to leave it. The latest macroeconomic data comes in line with expectations, suggesting that the preparation of markets for the ECDC meeting to be held next week will also take place without shocks.

For the first time since February 2017, consumer inflation in the eurozone has reached the level of 2%, which is quite consistent with the objectives of the ECB. At the same time, there is a danger that this indicator is at a limit beyond which inflation will no longer rise, as it was largely due to the increase in energy prices (annual growth of 8%) and food products (annual growth of 2.7%), the root inflation rate without accounting for these parameters was only 0.9%, and not reaching to the forecast 1.0%.

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Markets are very neutral about the upcoming ECB meeting and do not expect any revelations from it. The plan for an exit from a soft monetary policy was determined at the June meeting, and it is unlikely that any significant adjustments will be made to it.

The purchase of assets should be completed by the end of this year. There is no reason to assume that changes will be made to this plan. In any case, no public comments on the asset repurchase from the bank's management sounded. It may be explained how to interpret the phrase that rates will remain stable "at least until the summer of 2019". This may introduce some nervousness into the current euro quotes, but in general, there is no reason to expect strong moves, as the macroeconomic prospects remain stable.

On Monday, the European Commission will publish a preliminary consumer confidence index for July. On Tuesday, Markit will provide preliminary data on the PMI in the euro area. Taking into account some deceleration of activity, PMI indexes may fall, which may lead to weakening of the EUR/USD pair by 20 / 40p. Today, the euro is likely to decline. The support for 1.1575 and its achievement at the end of the day is expected.

United Kingdom

The pound is once again under serious pressure with a number of fundamental reasons contributing to the renewal of the 10-month minimum the GBP/USD pair. It is unclear what could prevent further decline.

Most published macroeconomic indicators show a slowdown in activity. The retail sales unexpectedly declined by 0.5% in June, while the growth was expected to be at 0.4%. Producer prices also showed noticeably worse expectations, consumer price growth remained stable at 2.4%, but it is largely driven by rising energy prices, while the growth of the base index slowed from 2.1% to 1.9%.

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Of course, the current level of inflation is consistent with the Bank of England's target but the dynamics are negative and therefore, the probability of an increase in the rate at a meeting in August is again under question.

Before the release of the UK from the EU, there were only 8 months but still satisfied with all parties, the plan is still there. There are growing fears that the output will be tough, which now requires the preparation of appropriate insurance mechanisms. The EU countries, according to Reuters, can lose up to 250 billion euros and a million jobs. There is still no consensus on the losses of the UK, which is reflected in the lack of consensus within the ruling party.

Today, NIESR will present an estimate of GDP growth in June, but it is unlikely to add a positive to the pound. The GBPUSD pair will remain under pressure, following the results of the week. Another update of the low and a decline to 1.2940 is not ruled out.

Oil

Oil prices remain stable after the report of the OPEC + monitoring committee on the fulfillment of the terms of the deal in June by 12%. The overall assessment of the prospects of the agreement is positive. The participating countries are not going to go beyond the agreements, which will eventually stabilize prices and keep them from falling. In the absence of significant news, oil will continue to trade in the range. An attempt to grow to 74.15 dollars per barrel is not ruled out for Brent.

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EUR/USD analysis for July 20, 2018

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Recently, EUR/USD has been trading upwards. As I expected, the price tested the level of 1.1678. Acording to the H1 time - frame, I found rejection from the support trendline in the background, which is a sign that selling looks risky. I also found a potential end of the downward correction (abc flat) and hidden bullish divergence on the MACD oscillator in the background. My advice is to watch for potential buying opportunities. The upward target is set at the price of 1.1740.

Resistance levels: R1: 1.1697R2: 1.1740 R3: 1.1800 Support levels: S1: 1.1594S2: 1.1533 S3: 1.1490

Trading recommendations for today: watch for potential buying opportunities.

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Fundamental Analysis of USDCHF for July 20, 2018

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USD/CHF has been quite volatile and corrective at the edge of 1.0050 area from where the price is currently showing impulsive bearish pressure. As 1.0050 has been quite successful to push the price lower earlier, this time it is expected to inject some bearish pressure in the pair as well.

Despite positive economic data, USD is struggling to sustain its momentum it had over CHF in the earlier days. Today the economic calendar does not contain economic data or events from the US which might impact the market semtiment on USD. However, some the US presented upbeat data recently. Unemployment Claims to decreased by 207k from the previous figure of 215k and Philly FED Manufacturing Index rose to 25.7 from the previous figure of 19.9. Ahead of the flash GDP report to be published next week, USD could not sustain the momentum.

On the CHF side, yesterday Switzerland's Trade Balance report was published with a decrease to 2.59B from the previous figure of 2.81B which was expected to increase to 3.22B. Despite downbeat readings, CHF managed to gain momentum over USD which indicates which is the weaker currency in the pair at the moment.

At present, amid the lack of economic reports from Switzerland, CHF is expected to gain certain momentum over USD in the coming days which might lead to impulsive downward move in the process which might counter in the coming days.

Now let us look at the technical view. The price has recently formed Bearish Divergence while rejecting off the 1.0050 area earlier from where it is currently expected to push lower towards 0.9800 support area in the coming days. Though certain volatility can be observed right now in the market but as the price remains below 1.0050 area with a daily close, the bearish bias is expected to continue in this pair.

RESISTANCE: 1.0050

SUPPORT: 0.9800

BIAS: BEARISH

MOMENTUM: VOLATILE AND COUNTER IMPULSIVE

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Fundamental Analysis of USD/CAD for July 20, 2018

USD/CAD has been quite impulsive amid bullish pressure under the corrective upward momentum. The price is expected to climb higher towards 1.34 before showing any further bearish pressure in the pair.

Today, a series of macroconomic reports are due in Canada. Exepectations are going to inject extra volatility in the market. Today, Canada's CPI report is going to be published which is expected to be unchanged at 0.1%, Core Retail Sales report is expected to increase to 0.6% from the previous value of -0.1%, Common CPI, Trimmed CPI and Median CPI was previously at 1.9% which might see a certain rise today, and Retail Sales report is expected to increase to 1.0% from the previous negative value of -1.2%.

On the other hand, today the economic calendar does not contain economic data or events from the US which might impact the market semtiment on USD. However, some the US presented upbeat data recently. Unemployment Claims to decreased by 207k from the previous figure of 215k and Philly FED Manufacturing Index rose to 25.7 from the previous figure of 19.9. Ahead of the flash GDP report to be published next week, USD could not sustain the momentum.

At present, the market has positive expectations for Canada's macroeconomic data. This may lead to certain gain on the CAD side. Nevertheless, USD still has the upper hand over CAD ahead of the impactful news today. Though CAD could put pressure on USD birefly, USD is expected to regain its momentum quickly in the coming days, leading the price towards 1.34 resistance area.

Now let us look at the technical view. The price is currently quite bearish after yesterday's impulsive bullish momentum, which might lead to certain bearish pressure towards the dynamic level of 20 EMA before pushing higher towards 1.34 area in the future. Though the bullish trend is still in play, but 1.34 was quite successful earlier to push the price lower which might do it again in the coming days as the price rejects off the 1.34 area with a daily close and bearish pressure. As the price remains above 1.3050 area, the bullish bias is expected to continue further in this pair.

RESISTANCE: 1.3400

SUPPORT: 1.3050

BIAS: BULLISH

MOMENTUM: VOLATILE

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Global macro overview for 20/07/2018

The Crude Oil prices are bouncing strongly after the comment from the Saudi Arabia Ministry of Energy. According to the ministry, in the second half of the year, there may be significant losses in domestic inventories due to the growing demand. The Ministry also informs that oil exports in July will be close to June levels, and in August it will shrink by 100,000 barrels per day. The latter information is surprising, as Saudi Arabia was expected to increase production significantly. It has been added that the country intends to "export only as much oil as it was ordered, and does not plan to provide anything above the customers' needs". This last sentence can be seen as an informal response to the appeal of President Trump, who wanted to increase exports to lower prices.

Saudi Arabia is one of the world's biggest oil producer and exporter, so any information regarding oil might impact the global markets. This is why any comments from the Saudi Arabian ministry or other important officials should always be treated seriously.

Let's now take a look at the Crude Oil technical picture at the H4 time frame. After the comments, the market has made a local high at the level of 70.16 before the price started to consolidate. The next target for bulls is projected at the level of 71.69 and if this level is violated, then the sequence of lower lows and lower highs will be interrupted. This means the larger time frame uptrend might resume and the bulls will try to push the prices even higher towards the recent swing top at the level of 75.30.

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Global macro overview for 20/07/2018

An increase in the number of jobs by approximately 50,000 it's the best result for many months. In addition, this is mainly due to changes in the field of full-time employment, which is additionally accompanied by an increase in the participation rate. Good information from this sphere of the economy is not surprising, but today's report can be called simply sensational. Building on it a more constructive look at the prospects of the Australian currency would be a mistake. First of all, it does not contribute much in the context of the future RBA policy, the market does not value even 50%. the probability of making a raise before the end of next year. The bank in the weekend report presented last week sounded rather dovish and did not announce anything that its communication with the market in the coming months would be more advantageous for the currency. At the same time, the external environment is definitely negative for AUD. The Australian economy is on the frontline of currency wars. In the group of the major currencies, there is no other, which can rebound so strongly by the exacerbation of the situation on the US-China line. At lowering industrial metals like copper, the downward pressure on AUD should be maintained. In addition, the risky currencies are not supported by the USD/CNY exchange rate rising steadily for several days. It also does not help the moods on the closely watched Shanghai stock exchange, where the main index after the first clear rebound from the July bottom, again starts to slip and erase correctional increases. In such an environment, the global investors should remain negative towards AUD, not only against the USD but also, for example, CAD, which should be supported by the rebound of the oil price.

Let's now take a look at the AUD/USD technical picture at the H4 time frame. The market is trading very close to the level of 0.7311 that is a technical support for the price. The bulls are still defending this support, which resulted in a larger Pin Bar that closed around its own highs. Nevertheless, the price is still not bouncing strongly higher, so it seems the market will now consolidate around this levels. In a case of a stronger bounce, the next target is seen at the level of 0.7445. In a case of a breakout lower, the next target for bears is seen at the level of 0.7160.

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Technical analysis of EUR/USD for July 20, 2018

The EUR/USD was in the process of breaking below the triangle pattern and below 1.16 support when the comments by POTUS weakened the Dollar as he questions the policy Fed follows. The EUR/USD has bounced strongly towards cloud resistance.

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Red lines - triangle pattern

Blue line -critical support

Black lines - bullish divergence

In the 4-hour chart, as shown above, we have a bullish RSI divergence as the RSI did not make new lows together with the price. The price has bounced strongly towards cloud resistance. Bulls need to break above 1.1680-1.17 to change short-term trend to bullish again. A break back below 1.16 combined with a new RSI lower low would be a bearish signal for EUR/USD that could lead towards 1.15 and lower. Major resistance remains at 1.1750-1.1760.

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Technical review on EUR/USD as of July 20, 2018

EUR / USD

On Thursday, the strengthening of the dollar stopped due to the statement of Donald Trump about the undesirability of raising base rates and the trend for strengthening the national currency. As a result, the euro grew by 60 points from the minimum of the day and closed near the opening level. But in an interview with Trump, we did not see any correlation of interest rates but more on the the dollar's rate with the US economy. He simply expressed his long-held positive view of a cheap loan (although two years ago he spoke out sharply against the policy of low rates). Similar statements were made by Bush Jr., but they did not affect the Fed policy. Until the United States can safely serve the public debt (21.201 trillion dollars on July 18), changes in monetary policy can not be feared. Historically, the statements of the presidents about monetary policy and the dollar exchange rate served only to entangle a broad stratum of investors.

Against the backdrop of yesterday's statements by Trump, investors lost sight of the possibly main event of the day, as the number of applications for unemployment benefits reached a historical minimum (at least since January 1970) - 207 thousand. Also, the business activity index in the manufacturing sector of Philadelphia in July Increased from 19.9 to 25.7 with an expectation of 21.6.

Today, the euro zone's balance of payments for May will be published with a negative outlook: EUR 27.2 billion versus USD 28.4 billion in April.

On the technical side, the situation yesterday did not change. The price remained above the balance sheet and trend lines. While the Marlin Indicator is in a neutral position.

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On the H4 chart, the price is also below the balance and trend indicator lines, but Marlin warned of some increase in growing sentiment. But also its convergence with the price can be considered completed. We are waiting for the price to return to yesterday's low and further decline in the range of 1.1475-1.1508.

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

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

Technical analysis of Gold for July 20, 2018

The Gold price made a new low yesterday, but prices reversed strongly after comments by the President of the U.S. regarding Fed policy, affecting the Dollar and in result Gold prices as well. Technically Gold has made a reversal pattern and the price continues to trade inside a downward sloping wedge pattern.

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Red lines - bullish divergence

Black line - resistance trend line

The Gold price remains in a bearish trend. Bulls need to break the wedge pattern to the upside if they want to change trend to bullish. Resistance is at $1,235-45. A weekly close inside or above this area will be a bullish signal as a weekly bullish hammer would have shaped. Short-term support is at $1.215 and next at $1,200.

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Technical analysis of USD/CAD For July 20, 2018

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At the 4 hour chart, the loonie looks like moving in an upward sloping channel and above the moving average with 50 period. It means USD/CAD is still moving in a bullish bias. However, this pair may get a correction to re-enter the resistance which become the support zone between 1.3045 - 1.3168 levels before it continues the previous bullish trend.

(Disclaimer)

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Control zones EURUSD 20.07.18

For the second day in a row, the pair is testing a weekly short-range of 1.1.606-1.1588, which invariably leads to an increase in demand and keeping the price above the support. Today, the determining resistance is nkz 1/2 1.1675-1.1666.

Yesterday, there was another weekly short-term test, which indicates the presence of large limit orders within it. The closing of the US session occurred above the NCC 1/4 1.1626-1.1621. This gives the opportunity to consider the continuation of growth. The main resistance to the strengthening of the euro will be the NCC 1/2 1.1675-1.1666. If the pair continues to trade below the specified zone, the downward movement will continue, and the July low will be updated in the medium term. For those who hold sales made on July 16 or 17, it is necessary to take care of the transfer of the position to breakeven and prepare for profit taking in case of a breakdown of the resistance zone.

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For the downward movement, the weekly short-term is still insurmountable, and the formation of daily candles indicates the emergence of demand during the trading period of the US exchange. It can be assumed that the European session give favorable prices for the purchase, which is used by Americans, buying off the futures of the euro. It is necessary to have a major proposal at the next US session in order to change the dynamics.

The reversal model will be developed if the pair can gain a foothold above the level of 1.1675 at today's US session. This will open the way for growth to the weekly KZ 1.1777-1.1759, which will indicate the continuation of the formation of a long-term accumulation zone. A little higher than the short-term weekly target is the July peak, the test of which will increase the probability of a major proposal. This indicates the need to lock in a long position next week.

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Daytime CP is the day control area. The zone formed by important data from the futures market, which change several times a year.

Weekly CP is the weekly control zone. The zone formed by the important marks of the futures market, which change several times a year.

Monthly CP is the monthly control zone. The zone, which is a reflection of the average volatility over the last year.

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Bitcoin analysis for 20/07/2018

China will lead an international research group dealing with the Internet of Things standardization (IoT) and Blockchain technology, according to the local Science and Technology Daily press magazine.

The Joint Technical Committee of the International Organization for Standardization (ISO) and the International Electrotechnical Commission (IEC) after several months of discussion of committee members accepted the proposal to create this international research group.

The daily Science and Technology Daily, the official newspaper of the Ministry of Science and Technology of China, writes that the creation of this group means that China has acquired the "power of discourse" in the integration of technology: "for related Chinese industries, it is of great importance to lead global development and promote the integration of Fiat and the digital economy" - reports the paper.

The international research group, headed by Dr. Shen Jie, will promote the integration of fiat-crypto, providing many scenarios for industrial applications and establishing a working mechanism to promote international standardization of IoT and Blockchain technologies.

The new research group will include experts from over ten countries, including the United States, Great Britain, Germany, and France.

China has recently taken steps to adopt Blockchain technology. Last month, the Digital Currency Research Laboratory at the People's Bank of China (PBoC) filed a patent for a digital currency wallet that allowed users to follow the transaction history.

Earlier this week, the financial media announced that the deputy director of China's Ministry of Industry and Information Technology (MIIT) encouraged the country to unite its forces to support Blockchain as a core technology for the new digital economy.

Let's now take a look at the Bitcoin technical picture at the H4 time frame. The market is still consolidating the gains in a narrow range between the levels of $7,225 - $7,555, but the overall impulsive cycle hasn't been finished yet. It will be worth to keep an eye especially on the technical support at $7,225 because any violation of this level will likely lead to the slide towards the next target at $6,993 or even $6,809.

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Technical analysis of $INDU for July 20, 2018

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If we look at the daily chart, the INDU is now moving in a triangle pattern. It means the volatility for this index will decrease approximately on July 26-27, 2018 and the index will hit the lowest level between the August 2-3, 2018 or August 9-10, 2018.

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Trading plan for 20/07/2018

After surprising Trump's words, in which he criticized rising Fed rates and too strong dollar against the CNY, the earlier strengthening of the US currency was reversed, and the demand for USD still did not appear on Friday's Asian session. USD/JPY was at 112.30, EUR/USD increased to 1.1670. GBP/USD returns above 1.30.

The Wall Street plummet about 0.5% and today the SP500 futures returned under 2800 points. In Tokyo similar sentiment, but Hang Seng grows 0.5 and Shanghai Composite 1.5 percent. This is due to the fact that USD/CNY erases previous increases and the Chinese currency makes up for losses. Profitability of US 10Y bonds after yesterday's Trump shot fell and is at 2.85%.

Positive moods on commodity markets. The WTI barrel is priced at just under USD 70 (August contract). An ounce of gold costs USD 1220 - in this case, the bounce after the words of Trump has been clearly corrected.

On Friday, the 20th of July, the event calendar is light in important data releases, and the event of the day will be the Canadian inflation data in form of Consumer Price Index, Consumer Price Index Core, and Retail Sales. No speech is scheduled for today.

EUR/USD analysis for 20/07/2018:

Not much data will be published today that would eventually shake the calm trading conditions on this market at the end of the week. The German PPI data (measures changes in the selling prices producers charge for goods and services, and well as tracks how prices feed through the production process. Because producers tend to pass on higher costs to consumers as higher retail prices, the PPI is valuable as an early indicator of inflation) were released in line with expectations at the level of 0.3% on monthly basis and 3.0% on the yearly basis, so no surprises here.

Let's now take a look at the EUR/USD technical picture at the H4 time frame. The breakout below the 61% Fibo at the level of 1.1615 was only temporary and the price has bounced from the technical support at the level of 1.1590 and currently is trading around the level of 1.1660, just in the middle of the range. The price is still in a form of a broad horizontal consolidation between the levels of 1.1507 and 1.1790, so the next market direction will be more clear when one of this level is violated. Until then, the price might fluctuate in the range until the trigger fundamental event causes the breakout.

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Daily review of GBP / USD on 19.07.18. Ichimoku Indicator

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GBP / USD

The pair continued its decline. Now, the main task for players on the decline is to try breaking the lower boundary of the weekly cloud (Senkou Span B 1.3025). A reliable overcoming will form a downward target on the breakdown of a weekly cloud. The key resistance is currently focused in the area of 1.3140 - 1.3240 (daytime cross + week Tenkan + monthly Fibo Kijun). The consolidation above this zone will significantly affect the balance of power, which can permanently cancel the bearish plans and will require a new assessment of the situation to clarify the bullish prospects.

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At present, the lower boundary of the weekly cloud (1.3025) increase the target for the breakdown of the H4 cloud. The benchmarks were already achieved and as a result, we observe some barrier. A reliable consolidation below will allow considering new downward benchmarks. The nearest and intermediate resistance is currently located at 1.3050 (Tenkan N4 + Senkou Span A N1). Furthermore, it should be noted that the lower time frame supports the higher ones, the importance is given to the zone 1.3140 - 1.3240.

Indicator parameters:

all time intervals 9 - 26 - 52

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.

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 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

EUR / USD: the dollar "spread its wings," the euro is waiting for the ECB

The US currency once again "spread its wings". Today, the dollar index came to the borders of the annual maximum, demonstrating the dominance of the greenback throughout the market. The head of the Federal Reserve has dispelled many doubts and fears that have dominated the dollar over the past few weeks.

The European currency, in turn, does not have any weighty arguments to counter the quoted currency. The EUR/USD pair returns to the lows of this year, to the bottom of the 15th figure. However, even at these low prices, the price has been repeatedly over it the past six months. For a break below the bears, the pair needs a stronger reason than optimism about the Fed's further actions. Therefore, when reaching the original southern target of 1.1510, the sales of the pair should be treated with particular caution.

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In general, the strengthening of the dollar looks reasonable. Powell has smoothed out all the uneven angles that have accumulated lately. There's the contradictory protocol of the June meeting of the Fed, an unexpected (albeit small) increase in unemployment, indistinct figures of US inflation, and a weak increase in the average hourly pay. Each listed fundamental factor did not pose a threat to the dollar but in aggregate, they created a somewhat nervous atmosphere especially on the background of the uneasy trade relations between the US and China.

Jerome Powell could increase pressure on the greenback. He could well focus his attention on the problematic aspects of the American economy, leaving the most powerful sides in the shadow. Officials of rank and Powell are very good at setting the right accents, shading and tactfully ignoring the necessary and unnecessary moments. The market, in turn, evaluates the performance in general, and in particular, analyzes the overall "aftertaste" of the speech. For example, last year, Janet Yellen's report in the Congress was diverse: if on the first day she supported the dollar with her rhetoric, then during the second part of her speech, the greenback suspended growth, as Yellen voiced a more cautious stance regarding the prospects for monetary policy.

However, Jerome Powell was consistent in his rhetoric, both on the first and second day of his speech in Congress. He expressed his confidence in the reduction of unemployment (thus eliminating the reaction to its growth to 4%), acknowledged the acceleration of growth in wages (though, comparing with last year's dynamics) and welcomed the growth of the US economy in the second quarter. However, a special impression on the market was made by his remark that large-scale fiscal incentives can "compensate" the consequences of the trade war. This is not a verbatim quote but the message was voiced precisely in this context. Although Powell expressed concern about the development of trade conflicts at the same time, these words remained in the shadow of the main message: the Fed will continue to tighten monetary policy, despite the foreign trade policy of the White House.

The result of the Fed's optimistic speech in the Congress can be expressed in figures: at the moment, the probability of raising the rate to 2.25% at the September meeting is 85% while the probability of raising the rate to 2.5% at the December meeting is almost 60%. Such a result became the main driver of the growth of the US currency, including the euro. The market did not pay attention to certain signals that could potentially threaten the large-scale strengthening of the dollar.

It's about a neutral interest rate level. As Jerome Powell himself admitted, the regulator is now looking for an answer to the question, exactly where is the given level at which the rate will not not serve as a stimulating character but will not limit economic growth. According to a number of experts, this issue will become more relevant next year. At the moment, the neutral level is in the "about three percent" area, that is, at 2.9%. However, this issue is the subject of discussion and the nearer the rate will approach the above-mentioned target, the stronger the dispute will be on this issue among members of the Fed. Depending on the rhetoric of the majority of the members of the Federal Reserve, the dynamics of the US currency will be determined.

However, all these are events are concerned with a distant future and certainly not today. Today, the dollar is "on horseback," in almost complete certainty that the rate this year will be raised to 2.5%. This is the reason for the growth of the dollar throughout the market. The European currency, in turn, lost all its points, especially against the background of the revised consumer price index. Core inflation in the euro area was reduced to 0.9%, although the initial estimate was more optimistic at 1%. In addition, after a series of "hawkish" rumors, fears returned to the market that the ECB will take a fairly "soft" position next week, in the light of the trade conflict between Washington and Brussels.

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Such a fundamental background indicates that the EUR/USD pair has the potential to decline to the nearest support level of 1.1570 which is the bottom line of the Bollinger Bands indicator on the daily chart. Having broken this level, the bears will go to the annual lows in the area of 1.1510 but the further decline looks unlikely until at least the July meeting of the European Central Bank.

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

Technical analysis: Intraday Level For EUR/USD, July 20, 2018

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When the European market opens, some Economic Data will be released such as Current Account and German PPI m/m. The US today will not release any Economic Data, 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: 1.1625.

Original Support: 1.1615.

Strong Support: 1.1601.

Breakout SELL Level: 1.1594.

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 20, 2018

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In Asia, Japan will release the All Industries Activity m/m and National Core CPI y/y data, and the US today will not release any Economic Data. 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: 113.04.

Resistance. 2: 112.82.

Resistance. 1: 112.60.

Support. 1: 112.32.

Support. 2: 112.10.

Support. 3: 111.88.

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

Elliott wave analysis of EUR/NZD for July 20, 2018

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We have seen a strong impulsive rally from 1.7116, which took out resistance at 1.7236 as nothing was there. This break indicated that a premature low had been seen and wave iii/ higher towards 1.7668 already had begun.

The very short-term structure shows, that a minor five wave rally has been seen from 1.7116 to 1.7305 indicating that a small correction towards 1.7188 - 1.7233 area should be seen now before the next impulsive rally higher to 1.7668 begins.

R3: 1.7345

R2: 1.7327

R1: 1.7305

Pivot: 1.7255

S1: 1.7233

S2: 1.7211

S3: 1.7188

Trading recommendation:

We bought EUR at 1.7237. We will take half profit here at 1.7275 and re-buy EUR at 1.7215. We have placed our stop at 1.7110.

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