Trading plan for the US session on August 13 GBP / USD

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

The buyers made a false break in the morning and returned to the support level of 1.2739, and while the trade is above this level, one can expect an upward correction in the resistance area of 1.2789 and a maximum update in the area of 1.2847, where I recommend fixing the profits. If the pound drops below the support area of 1.2739, in the afternoon, long positions are best considered after the upgrade of the large level of 1.2677.

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

The formation of a false breakout at the resistance level of 1.2789 will be another signal to sell the pound. The main task for the second half of the day remains the consolidation below the support level of 1.2739, which will lead to another large wave of sales in GBP / USD currency pair, in the expectation of renewing the area of 1.2677 and 1.2594, where I recommend fixing the profits. In the case of a pound's rise above 1.2789, short positions are best sought after the resistance test of 1.2847 and 1.2893.

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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

Bollinger Bands 20

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

EUR / USD. On the horizon, the mark of 1.1250

The Turkish "crisis epic" continues to gain momentum. For many weeks, this problem was of a local nature and did not affect the currency market on the scale that affects now. But with the "light hand" of the American press, traders gave in to panic, as the market had a reasonable idea that the metastases of the Turkish crisis would pose not only the European economy, but, possibly, the world economy. Now, the central theme of the financial markets is Turkey.

From 4.9 to 6.9, so rapidly the Turkish lira depreciated against the dollar during the two weeks of August. Today, the decline in the Turkish currency has slowed down, only at the expense of the statement made by the Central Bank of the country. The regulator promised to support the banking sector in the form of providing liquidity and "other support measures". However, in the opinion of an overwhelming number of experts, such rhetoric will keep the growth of the pair USD / TRY only for a while, the sounded measures look too soft relative to the current situation. According to many economists, the Turkish Central Bank needs to immediately raise the rate by 500-600 points at once, only such "shock therapy" could stop the economic crisis.

However, according to other experts, the Turkish economy will not help and the aggressive rate hike. The collapsed lira provoked a number of problems, inflation jumped to almost 16%, unemployment, by 12%, and the budget deficit is 48 billion lira. Such a rapidly changing situation affected the ability of the Turks to pay, the number of people who did not pay off their debts on credit cards, has grown by almost half a million for six months, and in general, the debts on loans already have almost 3.5 million people. The volume of the Central Bank's net reserves declined to $ 20 billion, while the external debt is more than three hundred billion dollars. The current account deficit (almost $ 60 billion) suggests that the country earns less than it spends. And given the dynamics of economic indicators, this trend can be catastrophic.

The only panacea is external assistance, but here, Turkey can face big problems. Experts believe that Ankara will have to apply to the IMF for a loan. According to various estimates, the Turks will need an amount exceeding $ 200 billion. And here, it should be noted that the US share in the International Monetary Fund is 17%, and in the World Bank, 20%. This circumstance will allow blocking the IMF decision on assistance to the Turks. According to the regulations of the Fund, a positive solution is provided "at least 85 percent of the vote," while only 15 percent are required for blocking. Therefore, there is no need to build illusions, the US has long been using the IMF as an instrument of foreign policy, and this case will not be an exception.

By the way, not so long ago, members of the US Senate have already introduced a bill that involves restricting Turkey to loans from international financial institutions. Therefore, if Ankara appeals to the IMF, it will encounter strong resistance. Based on this fact, the probability of refusing assistance is very high.

And Washington, in its turn, just started to "tighten the screws" to Ankara. The personal sanctions against the two Turkish ministers turned out to be "flowers", while "berries" are still ahead. At the end of last week, the US president approved an increase in the customs duty on steel and aluminum from Turkey in half, now the duty on aluminum has increased by 20%, and steel, by 50%. And, according to available information, this step is also not the last from the Americans. The White House is considering the option of eliminating tax benefits that apply to Turkey's products for a total of $ 1.6 billion. A spokesman for US Trade Representative Robert Lighthizer confirmed this information, saying "a revision of the duty-free import of Turkish products to the US market".

The search for a compromise in this situation was not crowned with success. Actually, the demands of the American side are unambiguous and not subject to discussion: The states demand to release their citizen from prison, without meeting any counter demands. This step by Turkey will lead to normalization of relations between the countries, however, Turkish President Erdogan takes a principled position in this issue. According to rumors, Washington gave the time to Ankara until Wednesday, that is, until August 15. If until this moment the demands of the States are not met, the flywheel of the sanctioning pressure will be unleashed with renewed vigor.

The European currency has become a hostage to this situation. If the Turkish crisis continues to gain momentum, the largest banks in Europe will suffer, which will affect the overall financial stability in the euro area. In addition, if the situation worsens by the end of the year, the ECB can extend the incentive program, automatically postponing consideration of the issue of raising the rate for an indefinite period. Such prospects put strong pressure on the euro, not only in tandem with the dollar, and throughout the market.

Therefore, the immediate prospects for the euro depending on the resolution of the Turkish problem. If Ankara makes concessions, traders will be optimistic about this signal. Otherwise, the EUR / USD dive will continue.

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The technical picture of USD / JPY testifies to the unequivocal priority of the downward movement. About it say almost all the "older" timeframes - H4, D1, and W1. So, on the weekly chart, the pair is on the bottom line of the Bollinger Bands indicator and under the cloud Kumo, and the indicator Ichimoku Kinko Hyo formed a bearish signal "Line Parade". The resistance level is 1.1525, this is the lower boundary of the cloud Kumo (on W1), which coincides with the line Tenkan-sen. But the support level is the price of 1.1250, this is the bottom line of Bollinger Bands on the weekly chart. It is the 1.1250 mark that is the main southern target of the downward movement.

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The daily review of EUR / JPY as of August 13, 2018. Ichimoku Indicator

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EUR / JPY

The players on the fall could not close the past week below the support levels of 126.18-46 (monthly Senkou Span A + week Senkou Span B). Today, they went on the trick and still turned support into resistance by doing it with the help of a good descending gap, executed at the opening of the market. The fastening on the current positions will allow to continue the decline, the nearest reference point of which now serves the area of 124.00-79 (day target for breakdown of clouds + monthly Kijun + minimum extremum).

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At lower time intervals, the downtrend now enjoys the support of all elements of the Ichimoku indicator. The benchmarks are the levels of the senior periods, led by the daily target of 124.00-79. The most important resistance, in the case of development of correction, today, is the area of 126.18-46. Here, the levels of various times are concentrated, fixing above will change the current balance of forces and will allow to consider the possibilities for forming a full-scale upward correction.

Indicator parameters:

All time intervals 9 - 26 - 52

The color of indicator lines:

Tenkan (short-term trend) - red,

Kijun (medium-term trend) - green,

Fibo Kijun is a green dotted line,

Chinkou is gray,

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

Senkou Span A (SSA) - pink.

The color of additional lines:

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

Horizontal levels (not Ichimoku) - brown,

Trend lines - purple.

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

Wave analysis of GBP / USD for August 13. The fifth wave is still continuing its construction

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Analysis of wave counting:

In the course of trading on August 10, the GBP / USD currency pair fell by 60 percentage points. Thus, there is a reason to believe that wave 5, 3, a, has not yet completed its construction. A successful attempt to break through the spent mark of 1.2758 will allow the pair to continue the decline with targets located near the mark of 1.2636. Given a rather strong downward impulse, wave 5 may take a more extended form than was originally intended. An unsuccessful attempt to break one of the target marks may lead to the completion of the construction of wave 3, a.

The objectives for the option with purchases:

1.3301 - 161.8% of Fibonacci (the oldest Fibonacci grid)

The objectives for the option with sales:

1.2758 - 261.8% of Fibonacci

1.2636 - 261.8% of Fibonacci (the oldest Fibonacci grid)

General conclusions and trading recommendations:

The GBP / USD currency pair remains in the framework of the construction of the downward trend section. Today, I recommend that you continue to remain in sales in the expectation of a breakthrough mark of 1.2758, which corresponds to 261.8% of Fibonacci, with targets located near the estimated mark of 1.2636, which is equivalent to 261.8% in the senior Fibonacci grid. An unsuccessful breakthrough attempt at 1.2758 could lead to the completion of wave 5, and in the case of this option, I recommend closing sales, since it is possible to build wave 4, a.

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Pound and the euro will continue to decline

The growth of consumer prices in June in the US amounted to 0.2%, this result was 1 point higher than the June value and coincided with the forecasts. Inflation growth at an annualized rate of 2.94%, at first glance, such a trend should be considered positive amid expectations of an increase in the Fed rate at a meeting on September 26. At the moment, the probability of an increase, according to the CME futures market data, is 91%, that is, the markets do not doubt the next step, however, according to inflation expectations, the picture is not so rosy.

Yield of the bonds Tips continues to decline, as of August 9, it fell to April values, and therefore there is every reason to expect that the data for August will be noticeably worse than the July data.

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The second alarming parameter is the dynamics of labor remuneration. The growth of the average wage can be considered sufficient only without taking inflation into account, but if we correct the inflation, it will turn out that the average wage has decreased by 0.2% year-on-year, which casts doubt on the budget's fillability and the success of the entire tax reform as a whole.

The threat of failing on the eve of the congressional elections makes Trump act more aggressively, and the sharp drop in a number of currencies against the dollar by the end of the week is largely political, not economic.

The weekly CFTC report showed that the dollar continues to be the leader of the currency market, and, most likely, will continue to strengthen.

On Tuesday, the index of business optimism from NFIB will be published, on Wednesday an important report on the dynamics of retail sales in July, which could affect inflation expectations.

Eurozone

The sharp decline in the euro on Friday was due to the announcement of the ECB about the growing risks for the euro area associated with the fall of the Turkish lira, since it is the European banks that are the main creditors of the Turkish economy. The problems for the banks provoked conversations that the ECB could extend the asset repurchase program, which was the direct cause of the euro's decline. Since an immediate refutation by the ECB leadership was not followed, it can be assumed that the regulator does not intend to prevent the euro from weakening.

This conclusion is supported by the general mood of the economic bulletin published last week, in which the ECB expresses concern over the slowdown in world trade. For the first time since 2016, the volume of imports shows a slowdown, export orders noticeably decrease, in these conditions, a decline in the euro for the euro area is a positive factor.

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On Tuesday, the second estimate of GDP growth in the euro area in the second quarter, as well as a report on industrial production in June, will be published. There are reasons to believe that it will be worse than the previous one, which will increase pressure on the euro.

At the moment, EUR / USD remains under pressure, support for 1.1450 has not resisted, and now the main resistance has shifted to this level. The nearest target is 1.1260 / 80, a little further support is 1.1185 / 95, which is likely to be the target of the bears for the next week.

United Kingdom

Friday for the pound was rich for news. Macroeconomic reports in general looked quite positive - GDP growth in 2 square meters. confirmed at 1.3%, production in June remained stable, the dynamics of the trade balance was unexpectedly positive.

However, a pound of positive news does not help much. Risks of the tough Brexit have risen markedly after comments by Bank of England Governor Mark Carney and Commerce Minister Liam Fox, and the call for a new referendum is also picking up. Such a development of events presents a certain complexity for the Bank of England, as it casts doubt on the progressive completion of a period of soft monetary policy.

On Tuesday, a report on the labor market will be published, on Wednesday, consumer inflation. Even positive news will not help the pound to begin recovery, the GBP / USD rate will remain under the influence of political factors. In the next 24 hours, the pound is likely to fall below 1.27, resistance is supported by the recent support of 1.2917.

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

Trump's actions could lead to financial crisis in Turkey

The US dollar continued to strengthen its positions against the euro and other risky assets amid the new statements made by US President Donald Trump regarding Turkey, as well as the actions of the European Central Bank.

Inflation data in the US, which grew in July this year, had a positive effect on the US dollar, and now many investors expect at least two increases in interest rates in the US this year.

According to the report of the US Department of Labor, the consumer price index rose by 0.2% compared to the previous month. Core inflation, which does not take into account the volatile categories of goods, also showed a monthly growth of 0.2%. All the data fully coincided with the forecasts of economists. Compared to the same period of the previous year CPI index grew by 2.9%, and the base index showed an annual growth of 2.4%.

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The US budget deficit for the 10 months of the fiscal year has grown because of a significant increase in government spending.

As noted in the report of the US Treasury, during the period from October 2017 to July 2018, the government's budget deficit amounted to $ 683.97 billion, while the deficit for the same period last fiscal year amounted to 566.02 billion dollars. The growth was 21%.

Statements made by US President Donald Trump on Friday put pressure on risky assets.

Trump expressed a desire to double the tariffs on imports of goods from Turkey, saying that relations with Ankara can not be called good. The administration of the White House expects that duties on aluminum imports from Turkey will be 20%, and on steel 50%.

At the same time, President Recep Erdogan urged his citizens to sell their savings in foreign currency and gold and buy lira. In his opinion, this will be an effective response to the West for new measures proposed by the US president.

The news that the European Central Bank will no longer accept Greek government bonds as security for loans has also exerted pressure on the euro. The regulator said that after the completion of the Greek financial assistance program, Greek bonds with a "junk" rating will no longer be accepted, which will significantly impede access to new, cheap loans for Greek banks and substantially worsen the economic prospects of Greece.

The Canadian dollar continued to decline against the US dollar, even despite data that showed that employment in Canada in July this year rose and exceeded the forecasts of economists.

So, according to the National Bureau of Statistics of Canada, in July of this year, 54,100 jobs were created, while economists expected job growth of 17,000. Unemployment in the country was 5.8% compared to 6% a month earlier, whereas experts expected it at 5.9%.

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

The daily review of the GBP / JPY as of August 13, 2018. Ichimoku Indicator

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GBP / JPY

To the bearish sentiment of last week, there was an added descending gap, formed at the opening of the market. At the moment, the players on the slide met the support of the monthly Kijun (140.69). Overcoming the level will open the way to important landmarks. The value will have the goal for the breakdown of the weekly cloud (137.59 - 135.48) and the monthly Fibo Kijun (136.94). All levels of resistance of the older time intervals are now far behind and today, they are unlikely to be relevant.

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Indicator Ichimoku in the current situation, all elements support the players to fall. The downward trend is now a priority. As a result of the fact that the pair met the support of the monthly level (140.69), the current braking may drag on or get development. In the case of the formation of an upward correction, the lower junior levels will be the first to enter the work. Today, the resistance can be noted at 140.85 (Tenkan H1) - 141.46 (Tenkan N4 + final borders of the cross N1) - 142.40 (Kijun N4 + cloud H1). The return of these levels to the side of the players on the increase will change the current balance of power, form new upward guidance points and will return relevance to the levels of resistance of the senior half.

Indicator parameters:

All time intervals 9 - 26 - 52

The color of indicator lines:

Tenkan (short-term trend) - red,

Kijun (medium-term trend) - green,

Fibo Kijun is a green dotted line,

Chinkou is gray,

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

Senkou Span A (SSA) - pink.

The color of additional lines:

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

Horizontal levels (not Ichimoku) - brown,

Trend lines - purple.

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

Analysis of EUR / USD Divergences on August 13. Euro-currency continues to get cheaper

4h

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The currency pair EUR / USD on the 4-hour chart continues falling quotations and performed fixing under the correction level of 127.2% - 1.1431. As a result, on August 13, the process of falling can be continued in the direction of the next level of Fibo 161.8% - 1.1333. Today, there are no visible divergence in any indicator. The end of the quotations from the correction level of 161.8% will allow traders to expect a turn in favor of the euro and some growth in the direction of the Fibo level of 127.2% - 1.1431. The consolidation of the exchange rate under the correction level of 161.8% will increase the chances of further falling towards the next corrective level of 200.0% - 1.1227.

The Fibo grid is built on extremes from June 21, 2018 and July 9, 2018.

Daily

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On the 24-hour chart, the pair performed a fixation below the Fibo level of 100.0% - 1.1553. Thus, the drop in quotations continues in the direction of the next correction level of 127.2% - 1.1285. The pair's retracement from the Fibo level of 127.2% will work in favor of the EU currency and the beginning of growth towards the corrective level of 100.0% - 1.1553. There are no maturing divergences today. Fixing the quotes below the Fibo level of 127.2% will increase the chances of continuing the fall towards the next correction level of 161.8% - 1.0941.

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

Recommendations for traders:

Purchases of the EUR / USD pair will be possible with the goal of 1.1431 with a stop loss order under the Fibo level of 161.8% if the pair retires from the correction level of 1.1333.

Sales of the EUR / USD pair can be held at 1.1333, as the pair completed the close under the Fibo level of 127.2%, with the Stop Loss order above 1.1431.

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

NZD/USD Intraday technical levels and trading recommendations for August 13, 2018

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Breakdown of 0.7220-0.7170 (neckline zone) was needed for a bearish breakout of the depicted consolidation range (0.7170 and 0.7350).

The quick bearish decline took place towards 0.6700-0.6800 where narrow ranged consolidation range was established.

On July 7, evident bullish rejection pushed the NZD/USD pair above 0.6820 temporarily. However, lack of bullish momentum allowed evident bearish decline to occur.

The bulls have failed to maintain enough bullish momentum above 0.6700. This allowed the current bearish decline to occur towards 0.6570.

The NZD/USD pair outlook turned to be bearish. Bearish targets are projected towards the price levels of 0.6520 and 0.6480.

On the other hand, conservative traders can wait for bullish pullback towards 0.6700-0.6720 for a low-risk SELL entry.

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

Intraday technical levels and trading recommendations for EUR/USD for August 13, 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 lower limit of the depicted consolidation range (1.2200).

The price level of 1.1500 offered temporary bullish recovery towards 1.1830. The EUR/USD bulls failed to pursue towards higher bullish targets.

Instead, a descending high was established around 1.1800.

Currently, the EUR/USD pair is testing the price zone of 1.1450-1.1370 (demand zone) where bullish rejection may be anticipated. This zone corresponds to the depicted trend lines.

For further bearish decline to occur. The pair needs obvious bearish breakdown below 1.1400. Initial bearish target would be located around 1.1275 then 1.1120 if enough bearish pressure is applied.

Hence, The EUR/USD short-term outlook remains bearish towards the mentioned levels unless a bullish breakout above 1.1520 is achieved. This would bring the bullish scenario into consideration.

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

Bitcoin analysis for August 13, 2018

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Trading recommendations:

According to the 30M time frame, I found that price failed to go through resistance 1 at the price of $6,463, which is sign that buying looks risky. I also found a low close doji (LCD) pattern, which is a sign of weakness. My advice is to watch for potential selling opportunities. The downward targets are set at the price of $6,284 ( daily pivot) and at the price of $6,100.

Support/Resistance

$6,463 – Intraday resistance

$6,284– Intraday support

$6,284 – Objective target 1

$6,100 – 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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Analysis of Gold for August 13, 2018

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Recently, Gold has been trading downwards. The price tested the level of $1,198.90. According to the H1 time – frame, I found a breakout of the 3-day consolidation in the background, which is a sign that sellers are in control. The short-mid term trend is bearish and my advice is to watch for potential selling opportunities. The downward targets are set at the price of $1,193.87(S3) and at the price of $1,180.80.

Resistance levels:

R1: $1,216.60

R2: $1,222.25

R3: $1,227.90

Support levels:

S1: $1,205.27

S2: $1,199.65

S3: $1,193.95

Trading recommendations for today: watch for potential selling opportunities.

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

GBP/USD analysis for August 13, 2018

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Recently, the GBP/USD pair has been trading sideways at the price of 1.2750. According to the M30 time – frame, I found that price is trading inside of the trading range between the price of 1.2790 (resistance) and the price of 1.2722 (support). I also found that price is trading below the pivot level and that GBP/USD is following a downward trajectory, which is a sign that you should watch for selling opportunities if you see a valid breakout of support. The downward targets are set at the price of 1.2666 and at the price of 1.2605.

Resistance levels:

R1: 1.2830

R2: 1.2890

R3: 1.2945

Support levels:

S1: 1.2715

S2: 1.2662

S3: 1.2605

Trading recommendations for today: watch for potential selling opportunities.

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

Trading plan for the European session of EUR / USD pair on August 13

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

Buyers try to stop the fall, but it does not work very well. It is best to return to long positions after the formation of a false breakdown at 1.1365 or to rebound from the new support level of 1.1324. The main task for the first half of the day will be fastening above resistance 1.1410, from which one can expect an upward correction to the area of 1.1445, where fixing profit is recommended.

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

The downtrend continues. n the morning, it is best to look for short positions in conditions such as after a correction the from the level of 1.1410, on a false breakout, or to sell the euro for a rebound from 1.1445. The main target will be a breakdown and consolidation below 1.1365, which will lead to an immediate sell-off of EUR/USD pair to the area of new lows at 1.1324 and 1.1251.

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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

Analysis of GBP / USD Divergences on August 13. Pound sterling may start a pullback

H4

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On the 4-hour chart, quotations of the GBP / USD pair continue the decline in the direction of the correction level of 261.8% at 1.2638. The bullish divergence of the CCI indicator was formed today, which allows us to count on a reversal in favor of the British currency and some growth in the direction of the corrective level of 200.0% at 1.3047. Passage by the pair on the last low divergence will work in favor of resuming the fall in the direction of the correction level of 261.8%. The pair's retracement from the Fibo level of 261.8% will allow for some growth.

The Fibo grid was established on the boundaries from March 1, 2018 and April 17, 2018.

H1

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On the hourly chart, the pair completed the fixation at the correction level of 161.8% at 1.2800. As a result, the process of falling can be continued in the direction of the next correction level of 200.0% at 1.2702. Brewing divergences are not observed today. The pair's retracement from the Fibo level of 200.0% will allow us to count on a reversal in favor of the currency of England and a slight increase in the direction of the correction level of 161.8%. Fixing the quotes below the Fibo level of 200.0% will increase the likelihood of a further decline in the direction of the next correction level of 261.8% at 1.2548.

The Fibo grid was established on the boundaries from July 19, 2018 and July 26, 2018.

Recommendations for traders:

Purchases of the GBP / USD pair will be possible with a target of 1.2800 and a stop loss order under the correction level of 200.0% if the Fibo 1.2702 (hourly chart) breaks out.

New sales of the GBP / USD pair will be possible with the goal of 1.2548 and a Stop Loss order above the correction level of 200.0% if there is a close under the Fibo level 1.2702.

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

GBP / USD pair for August 13. Trading system "Regression channels". Macroeconomic reports on Friday did not affect the course

4-hour timeframe

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Technical data:

Senior channel of linear regression: direction - down.

The younger channel of linear regression: direction - down.

Moving average (20, smoothed) - down.

CCI: -123.8624

The GBP / USD currency pair also continued to confidently move downwards without a single sign of correction on August 10. The preliminary value of UK GDP data for the second quarter published on Friday did not surprise traders, as it corresponded to the forecast of 1.3%. They are slightly pleased with industrial production, showing an increase in June of 1.1% y/y. However, this one report clearly could not save the pound sterling from new sales. Traders still do not receive any positive signals from the United Kingdom, so there is no reason to buy English currency. Inflation in the United States did not meet the forecasts of 2.9% y/y against the forecast of 3.0%. However, this report had no impact on the US currency. Thus, we can state the fact that macroeconomic reports now have almost no effect on the movement of the pair and market participants need to fully focus once again on the foreign policy of Donald Trump. It is this theme that worries the most the markets and the public. In the meantime, the dollar continues to grow on favorable expectations of traders about the future state of the economy and the US trade balance.

Nearest support levels:

S1 - 1.2695

S2 - 1,2573

S3 - 1.2451

Nearest resistance levels:

R1 = 1.2817

R2 = 1.2939

R3 = 1.3062

Trading recommendations:

The GBP / USD pair continues its downward movement, as evidenced by the blue bars. Thus, on August 13, it is recommended to trade on a decline with the first target at 1.2695, and in case of a breakout on the target of 1.2573 before the indicator turn of Heiken Ashi to the top.

Purchase orders will become relevant only after the traders have overcome the moving average line with a target of 1.3062. In this case, the pair can start a short-term uptrend, but there are no fundamental reasons for this now.

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.

Heiken Ashi is an indicator that color bars in blue or purple.The material has been provided by InstaForex Company - www.instaforex.com

Technical analysis of GBP/USD for August 13, 2018

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Overview:

The GBP/USD pair hit the weekly support 1 last week. So, it dropped down in order to bottom at the point of 1.2780. Today, the pair is trading below its pivot point (1.2780). It is likely to trade in a higher range as long as it remains below the level of 1.2780. Hence, the minor resistance was already set at the level of 1.2780. Moreover, the weekly resistance is also coinciding around the major support around the area of 1.2837. Additionally, the RSI is still calling for a strong bearish market as well as the current price is also below the moving average 100. Therefore, it will be advantageous to sell below the current level of 1.2780 with the first target at 1.2700. From this point, if the pair closes below the dily support of 1.2700 on the H1 chart, the GBP/USD pair may resume its movement to 1.2670 in order to retest the weekly support 2. However, stop loss should always be taken into account, accordingly, it will be beneficial to set the stop loss below the last bullish wave at 1.2837.

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Technical analysis of #HSI For Aug 13, 2018

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If we look at the daily chart, the Hangsheng Index has formed a divergence between the price and the Stochastic Oscillator. So, on the grounds of this fact, there will be a small upward correction at least until the end of the Mercury Retrograde motion on August 18-19, 2018.

(Disclaimer)

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Technical analysis of #INDU for Aug 13, 2018

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Last week, the Dow Jones index made a gap during the crisis in Turkey because too many investor want to distribute their funds into safe heaven assets such the USD$. If we look at the daily chart, the index seems to have made a Head And Shoulders Pattern. Just watch the 24,970.20 level. If this level can be breached, the odds are that the Dow Jones will change its current trend into the bearish bias.

(Disclaimer)

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Trading plan for the European session on August 13 GBP/USD

To open long positions for GBP/USD, it is required:

A false breakout and a return to 1.2739 will be the first signal to buy the pound in order to restore to the resistance area of 1.2789 and update the high in the area of 1.2847, where I recommend profit taking. If the pound drops below the support area of 1.2739, it is best to count on long positions after updating a large level of 1.2677.

To open short positions for GBP/USD, it is required:

The downward trend is maintained. The formation of a false breakout at the resistance of 1.2789 will be another signal for selling. The main task for the first half of the day will be to consolidate below the support of 1.2739, which will lead to another major wave of sales in the GBP/USD pair in the expectation of updating the area of 1.2677 and 1.2594, where I recommend to lock in the profit. In the event of a growth in the pound above 1.2789, it is best to consider short positions after hitting resistance at 1.2847 and 1.2893.

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Indicator description

  • Moving Average (average sliding) 50 days - yellow
  • Moving Average (average sliding) 30 days - green
  • MACD: fast EMA 12, slow EMA 26, SMA 9
  • Bollinger Bands 20
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Technical analysis of EUR/USD for August 13, 2018

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Overview:

The EUR/USD pair continues moving in a bearish trend from the resistance level of 1.1553 to 1.1368.

Currently, the price is in a bearish channel. This is confirmed by the RSI indicator signaling that we are still in a bullish trending market.

The bias remains bearish in the nearest term testing 1.1300 and 1.1283. Immediate resistance is seen around 1.1425 levels, which coincides with the weekly pivot.

Moreover, the moving average (100) starts signaling a downward trend; therefore, the market is indicating a bearish opportunity below 1.1425. So it will be good to sell at 1.1425 with the first target of 1.1300. It will also call for a downtrend in order to continue towards 1.1283. The strong weekly support is seen at 1.1283.

However, if a breakout happens at the resistance level of 1.1425, then this scenario may be invalidated.

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The dollar has every chance to continue the rally

The results of last week showed the correctness of our view of the developing events around the trade wars and their positive impact on the US dollar rate.

Earlier, we repeatedly pointed out that keeping the Fed rate for the continuation of the cycle of raising interest rates and, in fact, the absence of such a rate from other major world banks will stimulate the strengthening of the dollar, which, in fact, is observed until the latest moment. At the beginning of the year, this pressure on world currencies was first restrained by the policy of uncertainty of D. Trump, which caused its local weakening and many investors in the markets believed that the ECB, the Bank of England, and even what "scary" to imagine, the Central Bank of Japan, the American counterpart, will also change the course of their monetary policy towards tightening.

However, with the increase in tension due to the trade wars that America has unleashed, as well as the apparent reluctance of the above-listed central banks and many others whose currencies are traded against the dollar on Forex, we follow the Fed on the path of raising rates. The dollar began to gradually strengthen its positions. Here, additional support is provided by the revived traditional function of the currency safehaven, which became even more visible during the aggravation of the trade war between the US and China.

Last week showed that the dollar rally is increasing, along with the whole front. The fear of investors over the probability of a new recession pushes them to buy protective assets. This is already the dollar as mentioned above, as well as the Japanese yen, which is the only currency growing in relation to it. Besides them, of course, such a function is performed by the Swiss franc and government bonds of economically strong countries - the USA, Germany and others. Thus, the profitability of the benchmark of 10-year T-Note has fallen from a maximum of 3.016% to 2.853% since the beginning of the month, which indicates increased purchases of bonds.

Observing the picture on the world markets, we note that, most likely, the further strengthening of the dollar will continue, as the main negative - the escalation of the trade conflict between Washington and Beijing - will not disappear anytime soon and the entry into force on August 23 of new US customs duties for "China "are unlikely to contribute to the normalization of the situation.

Forecast of the day:

The EURUSD pair is growing on the wave of profit taking. Perhaps it will recover to 1.1430 or even higher, to 1.1450. However, it is most likely that it will continue its fall after the rebound. We consider it necessary to sell the pair on growth from 1.1430 and 1.1450 with a probable local target of 1.1300.

The AUDUSD pair is also restored at the close of some short positions. If it fixates above the 0.7285 mark, there is a probability of its local growth to 0.7325. We consider it possible to sell it both on growth from 0.7325, and on the fall below the level of 0.7265 with the target of 0.7240.

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Forecast for EUR/USD as of August 13, 2018

EUR/USD

Last Friday, the markets could not resist the crisis in emerging markets and the euro fell by 115 points - investors massively bought the dollar and as an additional insurance left their stock market - the S&P 500 fell by 0.71%. It is interesting to see President Trump's emotional assessment of this situation: "I just ordered double the tariffs for steel and aluminum against Turkey. Their currency, the Turkish lira, is falling rapidly compared to our strong dollar! " This means that the previous statements of Trump about the excessive strength of the dollar, the unprofitability of the exchange rate, and so on were in fact disorienting messages, as we have repeatedly said. However, there is strong concern in the European banking sector, as its integration with Turkey is strong enough, and this has an impact on the euro. Also of concern is the political situation in Italy, where there is a threat of the resignation of the pro-European finance minister Giovanni Tria.

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Now the nearest target of the single currency is the price level of 1.1300 - the peak of November 9, 2016. The second goal may be to support the downward line of the price channel of the weekly scale of 1.1205.

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On the four-hour chart, there is nothing to prevent a strong decline in the euro - the Marlin oscillator does not show signs of a reversal, the balance indicator line of the price (red) is only gaining momentum. Tomorrow, the eurozone will have important economic indicators: GDP, industrial production, ZEW indices, but the forecasts for them are mixed.

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Forecast for GBP / USD pair as of August 13, 2018

GBP / USD pair

On Friday, the British pound broke through the support of the trendy embedded line of a large price channel against the backdrop of the overall strengthening of the dollar. And now, the main purpose is to open prior to the next support in the area of 1.2275. But before that, it will be necessary to overcome the support range of 1.2548 - 12588, formed by a minimum of June 21, 2017 and a minimum of December 8, 2016. A local correction is possible from this range since the signal line of the Marlin oscillator has gone deep enough downward. The next stage of negotiations on Brexit will take place in September, and until this time the pound has no strong support.

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Fractal analysis for major currency pairs as of August 13

Dear colleagues.

For the of EUR / USD pair, the continuation of the movement down is expected after passing the price of the noise range of 1.1360 - 1.1335. For the GBP / USD pair. the continuation of the movement downwards is expected after the breakdown of 1.2727. We consider the upward movement as a correction. For the USD / CHF pair, we follow the formation of the upward structure of August 9. The level of 0.9915 is the key support. For the USD / JPY pair, we expect to move to the level of 110.31. For the EUR / JPY pair, we expect the correction from the downward cycle on August 1. For the GBP / JPY pair, we also expect a movement upward from the downward structure on August 1.

Forecast for August 13:

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: 1.1539, 1.1471, 1.1433, 1.1403, 1.1360, 1.1335 and 1.1282. Here, we follow the downward structure of August 8. The continuation of the movement downwards is possible after passing the price of the noise range of 1.1360 - 1.1335. In this case, the potential target is 1.1282. From this level, we expect a rollback upward.

Short-term upward movement is possible in the area of 1.1403 - 1.1433. The breakdown of the last value will lead to in-depth correction. Here, the target is 1.1471. This level is the key support for the downward structure. Its breakdown will lead to the development of an upward movement. In this case, the target is 1.1539.

The main trend is the local downward structure of August 8.

Trading recommendations:

Buy: 1.1403 Take profit: 1.1431

Buy 1.1435 Take profit: 1.1470

Sell: 1.1333 Take profit: 1.1284

Sell: Take profit:

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For the GBP / USD pair, the key levels on the H1 scale are 1.2913, 1.2845, 1.2802, 1.2727, 1.2684 and 1.2655. Here, we determined the subsequent goals from the local downward structure of August 7. The continuation of the movement downwards is expected after the breakdown of 1.2727. In this case, the target is 1.2684. In the area of 1.2684 - 1.2655, we expect the consolidation of the price. From this range, we also expect a pullback upward.

Short-term upward movement is possible in the area of 1.2802 - 1.2845. The breakdown of the last value will lead to in-depth correction. Here, the target is 1.2913. This level is the key support for the bottom. Passing the price will lead to the formation of the initial conditions for the top.

The main trend is the local downward structure of August 7.

Trading recommendations:

Buy: 1.2802 Take profit: 1.2843

Buy: 1.2847 Take profit: 1.2910

Sell: 1.2727 Take profit: 1.2685

Sell: Take profit:

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For the USD / CHF pair, the key levels on the scale of H1 are: 1.0030, 1.0001, 0.9991, 0.9972, 0.9956, 0.9927, 0.9915, 0.9897 and 0.9878. Here, we follow the formation of the upward structure of August 9. The continuation of the upward movement is expected after the breakdown of 0.9956. In this case, the target is 0.9972. The breakdown of which, in turn, should be accompanied by a pronounced upward movement towards the level of 0.9991. In the area of 0.9991 - 1.0001 is the consolidation of the price. The potential value for the top is the level of 1.0030. From this level, we expect a pullback downwards.

Short-term downward movement is possible in the area of 0.9927 - 0.9917. The breakdown of the last value will lead to the development of a downward structure. Here, the target is 0.9897. The potential value for the bottom is the level of 0.9878.

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

Trading recommendations:

Buy: 0.9956 Take profit: 0.9970

Buy: 0.9974 Take profit: 0.9990

Sell: 0.9925 Take profit: 0.9915

Sell: 0.9913 Take profit: 0.9898

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For the USD / JPY pair, the key levels on a scale are: 111.55, 111.27, 111.10, 110.69, 110.31, 110.03 and 109.63. Here, we follow the development of the medium-term downward structure of August 1. At the moment, we expect the movement towards the level of 110.31. In the area of 110.31 - 110.03 is short-term downward movement, as well as the consolidation of the price. The potential value for the bottom is the level of 109.63. Upon reaching this level, we expect a rollback upward.

Short-term upward movement is possible in the range of 111.10 - 111.27. The breakdown of the last value will lead to in-depth correction. Here, the target is 111.55. This level is the key support for the downward structure.

The main trend is the downward structure of August 1.

Trading recommendations:

Buy: 111.10 Take profit: 111.25

Buy: 111.30 Take profit: 111.55

Sell: 110.65 Take profit: 110.34

Sell: 110.28 Take profit: 110.05

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For the CAD / USD pair, the key levels on the H1 scale are: 1.3258, 1.3232, 1.3190, 1.3160, 1.3117, 1.3098 and 1.3072. Here, we follow the development of the upward cycle of August 7. Short-term upward movement is possible in the area of 1.3160 - 1.3190. The breakdown of the last value should be accompanied by a pronounced movement towards the level of 1.3232. Near this level is the consolidation of the price. The potential value for the top is the level of 1.3258. Upon reaching this level, we expect a pullback downwards.

Short-term downward movement is possible in the area of 1.3117 - 1.3098. The breakdown of the last value will lead to in-depth correction. Here, the target is 1.3072. This level is the key support for the top.

The main trend is the upward cycle of August 7.

Trading recommendations:

Buy: 1.3160 Take profit: 1.3188

Buy: 1.3192 Take profit: 1.3230

Sell: 1.3117 Take profit: 1.3100

Sell: 1.3096 Take profit: 1.3072

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For the AUD / USD pair, the key H1 scale levels are: 0.7373, 0.7338, 0.7310, 0.7260, 0.7236, 0.7173 and 0.7132. Here, we follow the formation of the downward structure of August 9. The continuation of the downward movement is expected after passing the price of the noise range of 0.7260 - 0.7236. In this case, the target is 0.7173. The potential value for the downward movement is, for the time being, the level of 0.7132. After reaching this level, we expect a pullback to the top.

Short-term upward movement is possible in the area of 0.7310 - 0.7338. The breakdown of the last value will lead to in-depth correction. Here, the target is 0.7373. This level is the key support for the downward structure.

The main trend is the formation of a downward structure from August 9.

Trading recommendations:

Buy: 0.7310 Take profit: 0.7336

Buy: 0.7339 Take profit: 0.7370

Sell: 0.7236 Take profit: 0.7175

Sell: 0.7170Take profit: 0.7134

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For the EUR / JPY pair, the key levels on the scale of H1 are: 128.04, 127.35, 126.69, 126.28, 125.48 and 124.82. Here, mainly, we expect a movement into correction from the downward structure on August 1. A breakdown at the level of 125.48 will lead to a short-term downward movement. In this case, the potential target is 124.82. From this level, there is a high probability of a turn up. The short-term upward movement is possible in the area of 126.28 - 126.69. The breakdown of the last value will lead to in-depth movement. Here, the target is 127.35. This level is the key support for the downward structure from August 1. Passing it will lead to the formation of the initial conditions for the upward cycle. In this case, the target is 128.04.

The main trend is a downward structure from August 1. We expect a correction.

Trading recommendations:

Buy: 126.28 Take profit: 126.67

Buy: 126.71 Take profit: 127.33

Sell: 125.46 Take profit: 124.87

Sell: Take profit:

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For the GBP / JPY pair, the key levels on the H1 scale are: 143.33, 142.81, 141.98, 141.49, 140.52 and 139.78. Here, mainly, we expect a departure towards correction from the downward structure on August 1. Short-term downward movement is possible in the area of 140.52 - 139.78. From the level of 139.78, we expect a key upward turn. The short-term upward movement is possible in the area of 141.49 - 141.98. The breakdown of the last value will lead to in-depth correction. Here, the target is 142.81. The range of 142.81 - 143.33 is the key support for the downward cycle. Before reaching it, we expect the initial conditions for the top to be formalized.

The main trend is the downward trend from August 1. We expect a correction.

Trading recommendations:

Buy: 141.50 Take profit: 141.95

Buy: 142.00 Take profit: 142.80

Sell: 140.50 Take profit: 139.85

Sell: Take profit:

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Fractal analysis for GOLD on August 13

Forecast for August 13:

Analytical review on the scale of H1:

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For Gold, the key levels on the scale of H1 are: 1224.43, 1219.21, 1214.61, 1211.58, 1206.05, 1202.29, 1197.59 and 1194.35. Here, the situation is in an equilibrium state. The continuation of the movement downwards is expected after the breakdown of 1206.05. In this case, the target is 1202.29. Near this level is the consolidation of the price. The breakdown of the level of 1202.00 should be accompanied by a pronounced downward movement. Here, the target is 1197.59. In the area of 1197.59 - 1194.34 is consolidation and hence, the probability of a turn towards correction is high.

Short-term upward movement is possible in the area of 1211.58 - 1214.61. The breakdown of the latter value will lead to in-depth correction. Here, the target is 1219.21. This level is the key resistance for the subsequent development of the upward trend.

The main trend is the equilibrium situation.

Trading recommendations:

Buy: 1211.60 Take profit: 1214.20

Buy: 1215.00 Take profit: 1219.00

Sell: 1206.00 Take profit: 1203.00

Sell: 1202.00Take profit: 1198.00

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Trading plan for 13/08/2018

On Monday, the 13th of August 2018, the event calendar is light in important data releases, only Gross Domestic Product data form Italy is to be posted. No scheduled speeches as well. Holiday season at its peak.

USD/TRY analysis for 13/08/2018:

The crisis in Turkey is a bad sign for the entire global economy because there is a real risk of contagion. This is a phenomenon that occurs during crises. It consists in the fact that the collapse of one market moves to other, even if there are not enough reasons for it, and the economy is not correlated.

The reaction is already visible in the currencies of developing countries. The PLN and CZK have been weakening since Thursday, the USD has gone up by 10 cents. The South African Rand lost about 10% of the value. In South Africa, there are many factors that can cause rapid declines, but it is the situation in Turkey that has become an igniter.

The International Monetary Fund has for some time warned that there is a global risk for EM countries. The main blame for this is the trade war between the US and China and the rising dollar. Now, these pessimistic expectations may have come true. In the meantime, the People's Bank of China raised the USD/CNY reference rate to 6.8629, the highest level since May 2017.

Let's now take a look at the USD/TRY technical picture at

Since Thursday, the Turkish lira weakened against the dollar by over 30%. USDTRY was still around 5.25 on Wednesday, which meant a zone of historical highs. The market is still skyrocketing towards the level of 7.000 and the current rate is around 6.8661. The nearest technical support is seen at the levels of 6.70, 6,41 and 5.43. The most important is still seen down below at the level of 4,97 - 5.00. Nevertheless, with this kind of price movements, all technical supports might not be enough to stop the price from falling as the bias is still to the upside. Without the direct Central Bank of Turkey interwention, the sky is the limit now.

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Forecast for USD/JPY as of August 13, 2018

USD/JPY

On Friday, the yen reached a support for the downward trend line on the panic in emerging markets and this morning with a price gap passed under this support and rushed to the next at 109.90. Breaking through this support will open the way to the next one, with the goal of 109.04.

We do not think that the current situation can provoke a wider crisis, especially since the events that are taking place now show a powerful speculative component. We expect the relief of fears and the transition of markets ito a calm growth of the dollar across all segments. Currently the Nikkei 225 is losing 1.85 percent, the Shanghai Composite -1,68 percent, the S&P/ASX 200 -0,51 percent. The negative scenario - the collapse of markets - is possible if, until the end of August, the US and China do not agree on easing the tariff war and the United States will not cancel the planned increase on September 6 for duties of $200 billion.

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BITCOIN Analysis for August 13, 2018

Bitcoin has been ranging between $6,000 to $6,500 area for a few days now while being quite volatile inside the area as well. The bearish pressure has been quite impulsive earlier which took the price to the ZERO point from where the earlier bullish move took place to push the price higher. The price has been a bit bullish for last 2 days which does not indicate any further bullish momentum ahead but a daily close above $6,500 is expected to inject further bullish momentum in the pair with a target towards $8,000 area. As the price remains above $6000 area with a daily close, the bullish bias is expected to continue further in the coming days.

SUPPORT: 6,000

RESISTANCE: 6,500, 8,000, 10,000

BIAS: BEARISH

MOMENTUM: VOLATILE

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Fundamental Analysis of USD/JPY for August 13, 2018

USD/JPY has been quite impulsive with the bearish momentum recently which lead the price to open below 110.50 today. As the break below 110.50 was with a gap, the breakout cannot be taken as optimum for further bearish pressure in the pair.

This week JPY Trade Balance report is going to be published on Thursday, which is expected to decrease to 0.02T from the previous figure of 0.07T. The pessimist forecast of the JPY's only impactful news this week may lead to certain weakness on the JPY side this week against USD in the process.

On the other hand, having no economic report or event today to impact the market on the USD as well, this week on Wednesday, Retail Sales report is going to be published which is expected to decrease to 0.2% from the previous value of 0.5% and Core Retail Sales report is expected to be unchanged at 0.4%. Moreover, on Thursday, USD Building Permits report is going to be published which is expected to have a slight increase to 1.31M from the previous figure of 1.29M in the process.

As of the current scenario, though JPY has been leading with certain gains recently, the bearish momentum is expected to fade away if USD performs better than expected in the upcoming economic reports to be published this week which is more likely to take place.

Now let us look at the technical view. The price is currently residing below 110.50 and also at the edge of Kumo Cloud support whereas a daily close above 110.50 is expected to lead the price towards 112.00 resistance area in the coming days. As the price remains above 108.50-109.20 area, the bullish bias is expected to continue further.

SUPPORT: 108.50-109.20

RESISTANCE: 112.00

BIAS: BULLISH

MOMENTUM: VOLATILE

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Bitcoin analysis for 13/08/2018

The Chilean Crypto stock exchange Crypto MKT recently announced that its citizens can now buy products and services for cryptocurrencies from more than 5,000 traders thanks to the new integration with the cryptographic payment processor.

According to the announcement, the partnership between Crypto MKT and Flow.cl online payment platform has enabled sellers to add cryptocurrency payment options via a platform called CryptoCompra.com.

The CryptoCompra platform is available in Chile, Argentina, Brazil and Europe and allows customers to pay companies using cryptocurrencies while allowing merchants to receive payments in pesos, national fiat money. In addition, there is a fund at Crypto MKT that guarantees that payments made in cryptography are not affected by significant fluctuations in prices. The announcement reads: "There is a guarantee fund that allows payments to not depend on large increases or decreases in Bitcoin, Ethereum, and Stellar prices. It gives peace and security to the customer because he will not have surprises in payments."

He further states that accepting cryptocurrencies allows companies to accept payments from around the world and gives them a chance to be recognized as an avant-garde company that can enjoy quick and secure payments.

Development is noticeable because Chile is a country where the cryptocurrency, Orionx, Buda and Crypto MKT markets have abolished what was considered a total ban for the crypto industry when local banks closed their clients.

The president of the Central Bank in Chile, Mario Marcel, earlier this year revealed that he was considering implementing cryptocurrency laws that would provide financial institutions with the information necessary to "monitor the associated risks".

Let's now take a look at the Bitcoin technical picture at the H4 time frame. The market remains locked in a horizontal consolidation area between the levels of $6,600 - $5,951. Moreover, there is now a weekly pivot just in the middle of this zone at the level of $6,424, so traders might conclude the current trading conditions are neutral. In a case of a breakout to the upside, the next resistance is seen at the level of $6,782 and in a case of a downside breakout the next technical support is seen at the level of $5,728 and it is very important.

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Fundamental Analysis of EUR/USD for August 13, 2018

EUR/USD has recently broken below the important price area of 1.15 with a strong daily close which does indicate further bearish momentum in the pair for the coming days. While EURO struggling with the recent economic, political, trade war and Brexit tensions, USD has been meeting expectations which lead to certain impulsive gains in the process.

Though today EURO do not have any impactful economic reports to be published this week EURO Flash GDP report is going to be published on Tuesday which is expected to be unchanged at 0.3% and on Friday EURO Final CPI is going to be published which is also expected to be unchanged at 2.1%. ECB being silent for the time being about the economy does inject more weakness for the currency in the market against other majors as well.

On the other hand, having no economic report or event today to impact the market on the USD as well, this week on Wednesday, Retail Sales report is going to be published which is expected to decrease to 0.2% from the previous value of 0.5% and Core Retail Sales report is expected to be unchanged at 0.4%. Moreover, on Thursday, USD Building Permits report is going to be published which is expected to have a slight increase to 1.31M from the previous figure of 1.29M in the process.

As of the current scenario, EUR is expected to struggle further to sustain its gain against USD in the process whereas USD is expected to dominate further in the coming days. Despite the upcoming economic reports results, the market sentiment is currently biased towards USD in comparison to the EURO at this moment.

Now let us look at the technical view. The price started the week with a gap lower than the previous close, which is currently expected to retrace towards 1.1450-1.1500 area before pushing lower again with the target towards 1.1300 to 1.1100 area with a daily close. As the price remains below 1.15 with a daily close, the bearish bias is expected to continue further.

SUPPORT: 1.1300, 1.1100

RESISTANCE: 1.1450-1.1500

BIAS: BEARISH

MOMENTUM: VOLATILE

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GBP/AUD Approaching Resistance, Prepare For Reversal!

GPD/AUD is approaching its resistance at 1.7666 (61.8% Fibonacci extension, 50% & 23.6% Fibonacci retracement, horizontal pullback resistance) where a reversal to its support at 1.7303 (61.8% Fibonacci extension, 50% Fibonacci retracement, horizontal swing low support) is expected. Stochastic (89, 5, 3) is approaching its resistance at 94% where a corresponding drop is expected.

GBP/AUD is approaching its resistance where we expect to see a reversal.

Sell below 1.7666. Stop loss at 1.7810. Take profit at 1.7303.

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USD/CAD Approaching Resistance, Prepare For Reversal!

USD/CAD is approaching its resistance at 1.3162 (100% Fibonacci extension, 61.8% Fibonacci retracement, horizontal overlap resistance) where it is expected to reverse down to its support at 1.3053 (100% Fibonacci extension, 76.4% Fibonacci retracement, horizontal overlap support). Stochastic (89, 5, 3) is approaching its resistance at 96% where a corresponding reversal is expected.

USD/CAD is approaching its resistance where we expect to see a reversal.

Sell below 1.3162. Stop loss at 1.3219. Take profit at 1.3053.

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Technical analysis: Intraday Level For EUR/USD, Aug 13, 2018

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When the European market opens, there will be no Economic Data released, but the US will release the Economic Data such as Mortgage Delinquencies, so, amid the reports, EUR/USD will move in a low to medium volatility during this day.

TODAY'S TECHNICAL LEVEL:

Breakout BUY Level: 1.1451.

Strong Resistance:1.1444.

Original Resistance: 1.1433.

Inner Sell Area: 1.1422.

Target Inner Area: 1.1395.

Inner Buy Area: 1.1368.

Original Support: 1.1357.

Strong Support: 1.1346.

Breakout SELL Level: 1.1339.

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, Aug 13, 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 Mortgage Delinquencies. 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: 110.91.

Resistance. 2: 110.69.

Resistance. 1: 110.47.

Support. 1: 110.21.

Support. 2: 109.99.

Support. 3: 109.27.

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 August 13, 2018

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It's a bit disappointing that the correction from 1.7487 has been as deep as it has. That said, only a break below support at 1.7117 will invalidate our bullish count.

Short-term, we do expect a little more downside pressure towards 1.7230 from where we expect the next bullish rally to take place to above 1.7487 on the way higher to 1.7924 and 1.8369 as the next important upside target.

Our long-term target remains seen at 1.9848.

R3: 1.7487

R2: 1.7417

R1: 1.7355

Pivot: 1.7322

S1: 1.7267

S2: 1.7230

S3: 1.7187

Trading recommendation:

Our stop at 1.7275 was hit for a 49 pips profit. We will look to re-buy EUR at 1.7245 or upon a break above 1.7405.

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

Elliott wave analysis of EUR/JPY for August 13, 2018

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The decline in wave c of ii has exceeded the expected target of 126.01 and it looks like more downside pressure will be needed after a correction towards 127.30. We do not expect this final decline to move much below 125.20 and it must stay above the start of wave i at 124.59. If this low is broken that will invalidate our bullish count and a re-count will then be needed.

Short-term a break above 126.23 will confirm that wave iii/ of c has completed and a corrective rally to 127.30 is developing in wave iv/ of c before the final dip to just below 125.20 to complete wave v/ of c and the expanded flat correction in wave ii.

R3: 127.30

R2: 126.81

R1: 126.23

Pivot: 125.75

S1: 125.22

S2: 124.97

S3: 124.59

Trading recommendation:

We bought EUR at 126.26 and we will start by placing our stop at 124.50.

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