Inflation in the eurozone slows, and US consumer confidence resumed growth

Weak data on the euro area and a good report on the growth of consumer confidence in the US supported the US dollar on Friday, keeping an upward trend behind it.

According to the report, the consumer price index in the euro area fell in August this year, being worse than economists' forecasts, which could lead to a revision of the policy of the European Central Bank regarding the further rate of interest rates. However, the current slight decrease in the level of inflation is not yet an excuse for unrest.

So, the annual consumer price index of the eurozone was 2.0% in August against 2.1% in July. Economists had expected inflation to remain unchanged.

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The data in the second half of the day provided support to the US dollar.

The trust of households in the US in August 2018 increased. According to the report of the University of Michigan, the final index of consumer sentiment was 96.2 points against 95.3 points. Economists predicted the value of the index at 95.4 points.

As noted in the report, consumers are confident in their prospects in terms of income and employment, which allows us to count on further growth in the index.

Traders missed the information that the index of supply managers PMI Chicago in August this year fell.

According to the data, the index fell to 63.6 points against 65.5 points in July, while economists predicted that the index will be 63 points. Let me remind you that the index values above 50 indicate an increase in activity.

As for the technical picture of the EUR / USD pair, the pressure on the euro will continue. A breakthrough in support at 1.1590 will lead to a new wave of decline in risky assets with a test of lows of 1.1535 and 1.1490.

The Canadian dollar fell against the US dollar on Friday after it became known that the US and Canada did not reach a trade agreement.

As the Canadian foreign minister noted, Canada has not yet joined the NAFTA agreement. Freeland said that it requires a good agreement, not anyone since Canada primarily defends its national interests. The US trade representative called the negotiations with Canada constructive and noted progress. A new stage of negotiations will be held this Wednesday, September 5.

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Wave analysis of EUR / USD for September 3. The pair is adjusted, maintaining the upside potential

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Analysis of wave counting:

During the trades on Friday, the currency pair EUR / USD lost about 70 percentage points and, in this way, went over to the construction of wave 2, a. If the current wave counting is correct, then the decline in quotations will continue with targets located near the levels of 38.2% and 50.0% on the Fibonacci grid, constructed in wave 1, a. After the completion of the construction of this wave, it is expected to resume the increase in quotations within the wave 3, a, and with the goals that are above the 17 figure. An unsuccessful attempt to break the mark of 1.1567 will indicate the readiness of the pair to complete the corrective wave.

The objectives for the option with sales:

1.1567 - 38.2% of Fibonacci

1.1517 - 50.0% of Fibonacci

The objectives for the option with purchases:

1.1747 - 100.0% of Fibonacci

1.1868 - 127.2% of Fibonacci

General conclusions and trading recommendations:

The pair is in the stage of building wave 2, a. Thus, I recommend today to monitor the marks of 1.1567 and 1.1517, which corresponds to 38.2% and 50.0% of Fibonacci, near which the construction of this wave may be completed. An unsuccessful attempt to break one of these marks may mean the pair's transition to the construction of wave 3, a. And in this case, I recommend that you resume the pair purchases with targets above 17 figures.

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The trend on the dollar is questioned

The CFTC report, published on Friday, showed that large players are beginning to cautiously cut long positions in the US dollar. Slightly in demand are currencies of commodity countries, slightly smaller, the franc and the yen. But in general, the trend is clearly seen, the peak demand for the dollar, which fell in mid-August, may have already passed.

There are several reasons, but the main one is the uncertainty about the future plans of the Fed. Directly the wave of dollar sales was provoked by the head of the Federal Reserve Service Powell in his speech in Jackson-Hole, but his speech only summed up a number of signs indicating a weakening rather than served as their cause. At the same time, macroeconomic indicators are increasingly evident, which indicate that further dollar growth is being questioned.

On Tuesday, the ISM index for production will be published in August, negative forecasts, the index is expected to decrease from 58.1p to 57.7p, but an even slowdown is expected on the specific inflation acceleration index, which estimates production, orders, supplies and reserves forecasts - 70.2p against 73.2p a month earlier.

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The probable reduction of the ISM along with the fall in the consumer confidence index of the Michigan Consumer Sentiment Index to 96.2p against 97.9p a month earlier indicates an increase in concerns about the ability of the US economy to safely withstand the cycle of rate hikes planned by the Fed. As you know, the period of growth rates was always accompanied in the subsequent recession and a new cycle of decline, but between the end of the period of growth rates and a new recession usually took several years.

The financial environment of the United States is growing fears that this time the recession can come much faster. Inflationary pressure is noticeably lower than forecasted, the yields of the Tips bonds are at semi-annual lows, and there are no signs of renewed growth. This means that the business sees the risks of reducing inflation in the short term. Along with these fears, there is a danger of slowing the growth of the labor market due to the risk of escalating trade wars.

On Wednesday, the public hearings on the second round of tariffs for Chinese exports amounting to $ 200 billion expire. The market has no doubt that Trump will announce the introduction of a new package shortly after the hearing, as China, unlike the more compliant EU or Mexico, it is not going to make unilateral concessions. As long as China stands the trade war without much damage to itself - the levels of business activity in the manufacturing and servant industries, published on Friday, showed a slight increase in August, remaining above 50p, indicating continuation of the expansion. The PMI Caixin Index, released on Monday morning, declined slightly from 50.8p to 50.6p, the volume of export orders recovered.

On Monday, in connection with the government holiday, banks in the US are closed, which will reduce volatility. The basic movements need to wait no earlier than Tuesday.

EUR / USD

Significant macroeconomic news from the eurozone this week is not expected, on Monday the PMI index in the industrial sector will be published, neutral expectations, on Tuesday - producer price index in July. Inflationary expectations in the euro area remain stable, so the euro is likely to be traded in a narrow range and expect news from the US labor market at the end of the week.

Euro during the day with a high probability remains above support 1.1584, the possible growth is limited by resistance 1.1685.

GBP / USD

The Brexit theme again begins to dominate as the pound's main driver. Today, after a long break, the House of Commons returns to work, we should wait for a lively discussion between the parliament and the May government. Pound, most likely, will look insecure, because, from the point of view of macroeconomics, it does not have much to rely on.

On Monday, the PMI index for the manufacturing sector will be published, on Tuesday a hearing of the inflation report will be held in the parliament, comments of the representatives of the Bank of England may increase volatility. Pound during the day will be traded in the lateral range, the probability of staying above support 1.29 high, but in the thin market in the second half of the day surprises are possible.

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EUR / USD. September 3. The trading system "Regression channels". 5 components of the strengthening of the US dollar

4-hour timeframe

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Technical data:

The senior channel of linear regression: direction - down.

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

Moving average (20; flattened) - sideways.

–°CI: -146.2685

The currency pair EUR / USD was fixed on August 31 below the moving average line and fulfilled the level of Murray "6/8". It seems that traders have completed the procedure for fixing profits on dollar positions. Thus, the current appreciation of the US currency can be regarded as a new round of medium-term dollar purchases. From a technical point of view, this is exactly the conclusion. The trend for the instrument has changed to a downward trend, so short positions have now become relevant. On Friday, no important macroeconomic reports were published in Europe and the US (the preliminary value of inflation in the EU is not counted). Also, there were no high-profile messages from the White House. Thus, if Trump does not make any new application in the near future, or if there is no encouraging information from Europe, the US dollar is likely to continue its strengthening. Market participants are not confused by the high US public debt, problems with its servicing due to the high dollar rate, and the absence of a reduction in the trade deficit, despite the introduction of trade duties by the States and against the States. Traders are interested in the stability of the economy, the profitability of American enterprises, the profitability of American securities and the state of the stock market. And all four of these components give grounds for buying US currency. If we add here also the FRS's tough mood for tightening monetary policy, the further strengthening of the US dollar becomes even more probable.

Nearest support levels:

S1 - 1.1597

S2 - 1.1536

S3 - 1.1475

Nearest resistance levels:

R1 = 1.1658

R2 = 1.1719

R3 = 1.1780

Trading recommendations:

The currency pair EUR / USD overcame removals. Thus, it is now recommended to consider shorts with a target of 1.1536. Signal to manual closing of orders for sale will be the color of 1-2 bars indicator Heikin Ashi in purple.

Buy-positions can be considered only after the reverse fixing of the price above the moving average line (and at the same time the Murray level "7/8"). In this case, the initiative will go back to the bulls, and the first target will be the level of 1,1719.

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 lowest linear regression channel is the violet lines of unidirectional motion.

CCI - the blue line in the indicator window.

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

Levels of Murray - multi-colored horizontal stripes.

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

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GBP / USD. September 3. The trading system "Regression channels". The pound is also losing ground against the dollar

4-hour timeframe

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Technical data:

The senior channel of linear regression: direction - down.

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

Moving average (20; flattened) - sideways.

CCI: -31.1977

The currency pair GBP / USD sank to the moving middle line and today it can overcome it. If this happens, the trend on the instrument will change to a descending order and sell orders will become actual. As for the fundamental component, nothing new can be noted here. No new data on Brexit, no new message on the topic of trade wars. No new messages from Donald Trump or Theresa May. It should be noted that in general, the pound sterling did not adjust very much against the US currency. The daily chart clearly shows that the price neatly worked from below moving and could not confidently overcome it. And the total correction is no more than 15% of the downtrend, which began on April 17. Thus, we make an almost unambiguous conclusion: traders still do not believe in the English currency and are ready to continue investing in the American currency. Any negative or disappointing message from the UK will lower the pound all the lower and lower. Any message from Trump about tightening trade duties against any of the partners or imposing new trade sanctions will again raise demand for the US dollar, especially in tandem with the British pound. On the first trading day of the week, only the index of business activity in the manufacturing sector of Markit in the UK can be distinguished from macroeconomic reports.

Nearest support levels:

S1 = 1.2817

S2 - 1.2695

S3 - 1,2573

Nearest resistance levels:

R1 = 1.2939

R2 = 1.3062

R3 = 1.3184

Trading recommendations:

The pair GBP / USD can overcome the moving today. In this case, it is recommended to open the sell-positions with the target of 1,2817, as the bears will seize the initiative in the market.

Orders for a purchase can be considered only in case of a rebound of the price from the moving and reversal to the top of the indicator of Heikin Ashi. Then the advantage will remain with the bulls, and the goal for the upward movement will be the level of 1.3062.

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

Explanations for illustrations:

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

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

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

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

Levels of Murray - multi-colored horizontal stripes.

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

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AUD / USD pair rate: 0.70

Today, the Australian dollar collapsed to almost two-year lows. The last time the pair tested the 71st figure was in November-December 2016. In general, the AUD/USD pair is in the framework of a pronounced southern trend, which begins in February this year. The monthly timeframe clearly demonstrates a descending movement, starting from the height of the 80th figure. Within six months the pair lost their positions on a monthly basis, losing almost a thousand points as a result. Having renewed the annual minimum, the pair has stalled its decline, but tomorrow, the southern trend can get a new impetus.

Let me remind you that in the beginning of August, the "next neighbor" of the Australian - the New Zealand Dollar, reacting to the rhetoric of the Reserve Bank of New Zealand. The regulator has shifted the timeframe for a possible rate hike for 2020, while permitting a softening of monetary policy conditions. Now, traders fear that the Central Bank of Australia will follow the example of its colleagues and will also take a "dovish" position in this matter.

However, the rhetoric of the RBA in recent years was not "hawkish" nature, although the regulator members admitted that the rate will be increased rather than vice versa. Only the question - when. By the general market expectation, the Australian Central Bank will consider this issue in the second half of next year, but recent events of a fundamental nature allow doubting this. Therefore, if tomorrow the RBA at its September meeting allows a variant of deviation from this scenario, the Australian dollar will continue to drive down the entire market.

If we talk about the immediate causes of the weakening of the "Aussie" at the beginning of the trading week, then it is all about the macroeconomic statistics. Data on the volume of retail sales is worse than forecasted, although experts predicted growth to 0.3%. This indicator fell on many months' lows, disappointing traders, especially on the eve of the RBA meeting. In addition, the volume of the operating profit of Australian companies also declined to 2% after growth to 6.5%. This indicator, in general, is very minor, but also contributed to the atmosphere of nervousness.

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In other words, the Australian statistics released today served as a catalyst for the decline of the AUD/USD pair. The main reason is the fears of traders regarding the softening of RBA rhetoric at the September meeting. After all, apart from weak retail sales, there are other bigger large-scale problems, which the regulator can pay attention to. It is about reducing the commodity market and the development of the US-China trade conflict.

Actually, these problems are directly connected with each other. As soon as there was information that Donald Trump could introduce new duties on Chinese imports (now worth $ 200 billion), the commodity market tipped down. In particular, the cost of copper for the first time this year fell below six thousand dollars per ton (to date - $ 5,886). The cost of zinc, lead and aluminum are also reduced. The most important raw material for the Australian economy, iron ore, follows the general trend and fell to $65 per ton.

Here it is worth noting that the reason for the weakening of the commodity. There were no official statements of the White House on this matter. Although Beijing reacted to unconfirmed information quite harshly. According to a representative of the Middle Kingdom, a new package of trade-related duties will be equal to an aggressive act against China. Such rhetoric of Beijing surprised traders, as Trump's intentions were voiced only in the American press, with who allegedly became aware of this information. It can not be said that the commodity market has been reacted to, not even to the insider from the White House, but to the reaction of official China.

In any case, the events of recent days show that before the "truce" between the US and China is still far away and even if non-public talks on resolving the conflict are ongoing. Their results leave much to be desired. By the way, according to some analysts, China will not take any practical steps to rapprochement with Washington before the elections to the US Congress. which will be held on November 6, after which the political configuration in the United States can significantly change. It is likely that Trump is precisely for this reason trying to force events, putting pressure on the Chinese.

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However, for members of the Reserve Bank of Australia, the subtext of current events is not so important as the degree of their negative impact. Given a rather pessimistic fundamental background, the Australian regulator can indeed soften his rhetoric. In this case, the Australian dollar will finally consolidate within the 71st figure, with the subsequent intention to test the basic level of support for the pair at 0.70.

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Daily review of EUR / USD pair on 03.09.18. Ichimoku Indicator

EUR / USD pair

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The pair returned to the weekly cloud, into a zone of uncertainty and the main counteraction. Overcoming the resistance in the area of 1.1680 area (daytime Senkou Span B) and 1.1750 (weekly Fibo Kijun) will allow formation of a new upward guidance points. In this case, the closest resistance at 1.1890-1.1930 (weekly Kijun + month Tenkan), then the interest of players on the rise will be directed in testing the upper boundary of the weekly cloud nd the fulfillment of the target on the breakdown of the day's cloud. Key support in the current situation is currently concentrated in the area of 1.1545-72 (the lower boundary of the weekly cloud + the weekly Tenkan + day cross). Fastening below can significantly delay the development of the situation, call into question the working capacity of the new day's golden cross.

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During the last movements, the levels of support and resistance had an increase from the goals of the breakdown of the clouds of lower timeframe. The Ichimoku indicator is currently on the lower timeframe, which has rebuilt and outlined the advantages for players to fall. If now the decline is not limited to the support of the H4 cloud and the target for the breakdown of the H1 cloud, as well as the key zone of higher time intervals (1.1545-72). The main task for the bears will be the breakdown of the H4 cloud and the emergence of new downward targets and benchmarks. If the forces of the existing support are sufficient to complete the reduction, the main priorities will be shifted towards players to rise. The recovery of bullish positions and advantages lies today through 1.1632 - 1.1680 - 1.1708 - 1.1750.

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,

Chikou 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.

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Bitcoin analysis for August 03, 2018

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Trading recommendations:

According to the H4 time - frame, I found few doji candles near the level of $7.263, which is a sign that buyers got exhausted and that buying looks risky. The price broken the Tenkan-sen line, which is a sign that Bitcoin might visit next support level at $7.030 (Kijun-sen). My advice is to watch for selling opportunities. The downward targets are set at the price of $7.030 and at the price of $6.883.

Support/Resistance

Resistance - $7.296

Target 1 (Kijun-sen) - $7.030

Target 2 (Top of the cloud) - $6.883

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

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Intraday technical levels and trading recommendations for EUR/USD for September 3, 2018

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NZD/USD Intraday technical levels and trading recommendations for September 3, 2018

In April, bearish breakdown of 0.7220-0.7170 (lower limit of the consolidation range) allowed quick bearish decline 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 made the bulls fail to maintain enough bullish momentum above 0.6700.

On August 9, bearish breakout below the depicted consolidation range (0.6700-0.6840) was executed. This allowed the recent bearish decline to occur towards 0.6600-0.6570.

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

Recently, early signs of bullish recovery were manifested around the recent low around 0.6550. This allowed the recent bullish pullback towards 0.6700 to be demonstrated.

Trade Recommendations:

Conservative traders should wait for a deeper bullish pullback towards 0.6750 for a SELL entry with optimal risk/reward ratio. S/L would be placed above 0.6850 while T/P levels should be located at 0.6620 and 0.6550.

However, risky traders can wait for bearish decline below 0.6600. This will probably indicate a high-risk SELL entry. Initial T/P should be placed around 0.6560.

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Fundamental Analysis of EUR/USD for September 3, 2018

EUR/USD has been quite impulsive amid the bearish momentum recently which led the price to reside below 1.1650 area with a daily close recently. Ahead of the macroeconomic reports on the USD side this week, certain volatility and corrections may be observed in the market throughout the week.

Because of the observance of Labor Day in the US, no impactful news or event on the USD side is due today. Tomorrow US ISM Manufacturing PMI report is going to be published which is expected to decrease to 57.6 from the previous figure of 58.1. Though the expectation is quite soft, a better reading is sure to make changes. On Friday, US Average Hourly Earnings report is going to be published which is expected to be unchanged at 0.3%, Non-Farm Employment Change is expected to increase to 191k from the previous figure of 157k and Unemployment Rate is also expected to be unchanged at 3.9%.

On the other hand, today Spanish Manufacturing PMI report was published with an increase to 53.0 from the previous figure of 52.9 which was expected to decrease to 52.5, Italian Manufacturing PMI decreased to 50.1 from the previous figure of 51.5 which was expected to be at 51.2, German Manufacturing PMI decrease to 55.9 which was expected to be unchanged at 56.1, and Final Manufacturing PMI report was published unchanged as expected at 54.6.

Meanhwile, despite the lack of economic reports with mixed figures, EUR failed to gain certain momentum over USD but managed to stop the impulsive bearish momentum for a while. As the US Economic reports publish this week, certain volatility and gain on the USD side is expected if USD manages to produce better results throughout the week to favor the upcoming gains.

Now let us look at the technical view. The price is currently residing below the trend line resistance at 1.1650 while also residing above the dynamic support of 20 EMA. As for the previous impulsive bearish pressure and the trend continuation structure, the price is expected to push lower towards 1.15 and later towards 1.13 area in the coming days. As the price remains below 1.1750 with a daily close, the bearish bias is expected to continue.

SUPPORT: 1.1500, 1.1300

RESISTANCE: 1.1650, 1.1750

BIAS: BEARISH

MOMENTUM: VOLATILE

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BITCOIN Analysis for September 03, 2018

BITCOIN has been quite impressive with the recent bullish momentum which has proved quite strong without any deeper pullback along the way. Though the price is currently a bit bearish but having certain non-volatile bullish pressure in place, any bearish pullback will be labelled as a retracement throughout the process. As for the current scenario, the price is residing above $7,000 area with a daily close, just at the edge of Kumo Cloud resistance from where a certain pullback towards the dynamic level of 20 EMA, Tenkan and Kijun line is expected before the price starts to push higher towards $8,000 area. As the price remains above $6,000 area with a daily close, the bullish bias is expected to continue.

SUPPORT: 6,000, 6,500

RESISTANCE: 7,500, 8,000, 10,000

BIAS: BULLISH

MOMENTUM: NON-VOLATILE

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GBP/USD analysis for September 03, 2018

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Recently, the GBP/USD pair has been trading downwards. As I expected, the price tested the level of 1.2876 and reached my first target. According to the Daily time – frame, I found that key support level (kijun-sen + tenkan sen) at the price of 1.2918 got broken, which is sign that sellers are in control. Watch for selling opportunities. The next downward target is set at the price of 1.2810 (Fibonacci retracement 61.8%).

Downward target – 1.2810

Trading recommendations for today: watch for potential selling opportunities.

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Indicator analysis. The daily review of the EUR / USD currency pair as of September 3, 2018

On Friday, the price was never able to overcome the resistance line of the descending channel (red bold line), went down, almost reaching 21 average EMA - 1.1591 (black thin line). Today, the market can move upwards, having repulsed from 21 average EMA. The first target when moving upwards is the resistance line (red bold line) - 1.1688.

Trend analysis (Figure 1).

On Monday, the price may start moving up with the first target resistance line - 1.1688. In the US, the output, the market after 12.00 Moscow time will be narrow.

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Fig. 1 (daily chart).

Complex analysis:

- Indicator analysis - up;

- Fibonacci levels - up;

- Volumes - upwards;

- Candle analysis - neutral;

- Trend analysis - down;

- Bollinger lines - up;

- Weekly schedule - up.

General conclusion:

On Monday, the market is expected to move up with the first target resistance line - 1.1688.

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Analysis of EUR / USD Divergences on September 3. The euro is falling again

4h

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The EUR / USD currency pair on the 4-hour chart complied with the correction level of 61.8% - 1.1605. As a result, September 3, the process of falling quotations can be continued in the direction of the next Fibo level of 50.0% - 1.1546. Today there are no visible divergence in any indicator. The consolidation of quotations above the level of correction of 61.8% can be interpreted as a reversal of the pair in favor of the European currency and expect some growth in the direction of the correctional level of 76.4% - 1.1675.

The Fibo grid is built on extremes from July 9, 2018, and August 15, 2018.

Daily

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On the 24-hour chart, the pair executed a reversal in favor of the US currency and began the process of falling towards the corrective level of 100.0% - 1.1553, after the bearish divergence of the CCI indicator. The fall of the pair's rate from the Fibo level of 100.0% will allow us to count on a reversal in favor of the EU currency and some growth in the direction of the correction level of 76.4% - 1.1789. Fixing the pair at 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:

Purchases of the EUR / USD pair will be possible with the target of 1.1675 with a Stop Loss order under the Fibo level of 61.8% if the pair completes the closing above the correction level of 1,1605.

Sales of the EUR / USD pair can now be carried out with the target of 1.1546, as the pair completed the closing at the Fibo level of 61.8%, with the Stop Loss order above the level of 1.1605.

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Analysis of GBP / USD Divergences on September 3. Bullish divergence can help the British pound

4h

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The currency pair GBP / USD on the 4-hour chart reversed in favor of the US dollar, after the bearish divergence of the MACD indicator, and the decline towards the Fibo level was 261.8% - 1.2637. On September 3, a bullish divergence was formed at the CCI indicator, which allows traders to expect a turn in favor of the British currency and resumption of growth in the direction of the correction level of 200.0% - 1.3047. The consolidation of the pair's rate above the Fibo level of 200.0% will work in favor of continuing growth towards the next correction level of 161.8% - 1.3301.

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 performed fixing under the correction level of 50.0% - 1.2937. However, there was also a bullish divergence in the MACD indicator, which allows you to count on the pair's turn in favor of the British currency and some growth. Fixing the quotes above the Fibo level of 50.0% will increase the pair's chances of growth in the direction of the correction level of 61.8% - 1.3002. Passing the quotes of the last divergent low will work in favor of the US currency and the resumption of a fall towards the corrective level of 38.2% - 1.2872.

The Fibo grid is built on extremes from July 26, 2018, and August 15, 2018.

Recommendations for traders:

Purchases of the GBP / USD pair will be possible with the target of 1,3002 and a stop loss order under the correction level of 50.0% if a close above the Fibo level is 1,2937 (hourly chart).

Sales of the GBP / USD pair will be possible with the target of 1,2872 and a Stop Loss order above the correction level of 50.0% if the pair passes the last low of the bullish divergence.

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We consider it possible to buy the dollar at its decline

The lack of agreement by the US with Canada on free North American trade (NAFTA) showed that the northern neighbor of America is not ready to agree to any agreement, which indicates that the existing contradictions have not been overcome, and whether they will be overcome in the near future, remains under question.

On Friday, the US dollar gained appreciable support in relation to the major currencies on the wave, on the one hand, the failure of expectations for the soonest conclusion of the NAFTA agreement between the States and Canada, and on the other - the return of the understanding that the trade relations between America and China will not be soon overcome. Therefore, the preservation of the global braking risk factor will still prevail over the markets.

Yes, the US managed to "pin down" Europe, force it to go for favorable trading conditions for them. But, as we said earlier, this number will not pass with "the Celestial", and therefore we continue to believe that the threat factor for the prospects for the growth of the world economy will remain at least in the near future, so the demand for protective assets will take place alternating with periods of hope that, nevertheless, this problem will be solved.

Assessing such prospects, we believe that the US dollar will continue to move in the sideways range against major currencies. It will be supported by the continuation of the flow of capital to the US from emerging markets, an increase in the interest rates of the Fed, the closest of which will be held at a meeting of the regulator at the end of this month, as well as its function as a safe haven, which investors resort to during periods of instability and a fall in demand for risky assets, as well as shares of companies and assets of commodity and raw materials market. That the lack of agreement between Canada and the US again frightens the markets is clearly manifested not only in the growth of demand for the dollar but also in government bonds of the US Treasury with the Japanese yen and the Swiss franc.

Today in the US and Canada, a day off is a holiday of labor. Local markets will be closed, so investors' activity will also be noticeably lower. We expect that on this wave the dollar may adjust slightly against the major currencies. We consider it necessary to use this in order to buy it again on a decline.

From the important economic data, let us single out the publication of the values of the index of business activity in the manufacturing sector of Great Britain, Germany and the eurozone. We should also pay attention to the outcome of the meeting of OPEC members and the speech of the head of the Bundesbank Weidmann and a member of the FRSM Evans.

Forecast of the day:

The EUR / USD currency pair is trading above 1.1590 on a wave of partial profit taking amid a weekend in the States. If the data of the index of business activity in the manufacturing sector of Germany and the euro area are above expectations - this could push the pair up to 1.1640. We consider it possible to sell it from this level with the goal of 1.1535 or after crossing the price level 1.1590 with the same target mark.

The GBP / USD currency pair is trading above 1.2910. We consider it possible to sell it if the price does not rise above 1.2935 and fall below the level of 1.12910 with the target of 1.2860.

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Forecast for GBP / USD as of September 3, 2018

GBP / USD

On Friday, the British pound was down to 46 points against the background of the overall strengthening of the dollar. The delay occurred on the nested trend line of the price channel. To further reduce the price, it is first necessary to overcome the magnetic point 1.2898 on the four-hour chart, in which the lower line of the price channel and the Krusenstern trend line converge. Below the channel is the level of 1.2844 - the low of August 29 and, more importantly, the support of the Kruzenshtern trend line of the daytime, because its penetration opens the way for the price in the range of 1.2548 / 88.

But the market opened with a falling gap, which is already a sign of the market's intention to go down, but today we are waiting for it to close and consolidate above the lower border of the price channel on a four-hour chart.

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Indicator analysis. Monthly review for September 2018 for a pair of GBP / USD

Trend analysis (Figure 1).

The price in August was moving down, but after testing the support line (red thick line), it went up. In September, it is possible to continue moving upwards, the first goal is the recoil level of 23.6% - 1.3065 (yellow dotted line).

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Fig. 2 (monthly chart).

Complex analysis:

- Indicator analysis - down;

- Fibonacci levels - up;

- Volumes - upwards;

- Candlestick analysis - up;

- Trend analysis - up;

- Bollinger lines - down;

Conclusion on complex analysis is possible upward.

The total result of calculating the candle of the GBP / USD currency pair on a monthly chart: the price is most likely to have an upward trend with the presence of the first lower shadow (the first week of the month is black) in the monthly white candle and the presence of the second upper shadow (last week is black).

The upper target is 1.3065 and the retracement level is 23.6% (yellow dotted line).

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Indicator analysis. Monthly review for September 2018 for the EUR / USD pair

In the market, there is a downward channel from January 2008. The price, having tested the resistance line of this channel (orange fat line), since January moves downwards. When moving down the market could not overcome from the first time the area consisting of the support line 1.1302 (red bold line) and the recessionary 50% level - 1.1447 (yellow dotted line). As a result, the price went up in a rollback, by 300 points, reaching a recession level of 23.6% - 1.1602 (blue dotted line). It remains to determine the indicator analysis and draw a general conclusion, where the price will go. Two factors play upward here, the rollback usually ends at 38.2% (1.1780 - the blue dotted line) and the fourth point of the support line's line (red bold line). According to the classics, the contact of the price for the fourth time of the support line gives the probability of a top job of 70%.

Trend analysis (Figure 1).

The price in September will try once again to break through the support line 1.1302 (red bold line), so the nearest goal when moving down and will be this level.eurusd-mn1-instaforex-companies-group-2.

Fig. 2 (monthly chart).

Complex analysis:

- Indicator analysis - down;

- Fibonacci levels - up;

- Volumes - upwards;

- Candlestick analysis - up;

- Trend analysis - up;

- Bollinger lines - down;

Conclusion on complex analysis - most likely, the top job.

The total result of the calculation of the candle of the EUR / USD currency pair on a monthly chart: the price is most likely to have an upward trend with the presence of the first lower shadow (the first week of the month - the lower one) of the monthly white candle and the presence of the second upper shadow (last week is black).

The first top target is the retracement level of 38.2% 1.1780 (blue dotted line).

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EUR/USD analysis for September 03, 2018

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Recently, the EUR/USD pair has been trading sideways at the price of 1.1610. According to the M15 time – frame, I found that price rejected from the today's pivot level (1.1625), which is a sign that buying looks risky. I also found a hidden bearish divergence on the stochastic oscillator, which is another sign of weakness. Watch for selling opportunities. The downward targets are set at the price of 1.1585, 1.1560 and at the price of 1.1520.

Resistance levels:

R1: 1.1665

R2: 1.1730

R3: 1.1770

Support levels:

S1: 1.1560

S2: 1.1520

S3: 1.1455

Trading recommendations for today: watch for potential selling opportunities.

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Weekly review from 3 to 8 September 2018 on the EUR/USD pair

Trend analysis (Figure 1).

On the weekly chart, the price closed above the recession level of 23.6% (blue dotted line), which means that the market can continue to move up with the nearest target. 1.1735 - the upper fractal. Perhaps, the market will overcome this level. Candlestick analysis also gives the upper work. Let's turn to the indicator analysis.

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Fig. 2 (weekly chart).

Complex analysis:

- Indicator analysis - up;

- Fibonacci levels - up (blue dotted line);

- volumes - upwards;

- candlestick analysis - up;

- trend analysis - up;

- Bollinger lines - up;

- monthly chart - down.

Conclusion on complex analysis - up.

Calculation of the first shadow of the week (Monday) on a weekly chart.

The middle lines of the EMA 1/5/8 are the lower signal.

The "three lines" indicator (the direction of the CCI indicator lines (5), RSI (5), stochastic with a period of 3/3/4) on the last run is the upper signal.

Calculation of the system of RSI indicators for the first tail - up.

The bottom line: a weekly candlestick calculation for indicator analysis showed that the price may have an upward trend on Monday, which should be confirmed by the daily chart.

Calculation of the second shadow of the week (Friday).

Calculation of the MACD histogram - showed an upward trend (100 points up)

The bottom line: the calculation of the last day of the week on technical analysis showed that the price may have an upward trend on Friday, which should be confirmed by the daily chart.

The overall result of the calculation of the candle currency pair EUR/USD on a weekly chart indicates that the weekly price would likely have an upward trend with the absence of the first lower shadow of a weekly white candle and the absence of a second upper shadow.

The nearest upper target is 1.1735 - the upper fractal.

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

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Technical analysis of USD/CAD for September 03, 2018

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Overview:

The USD/CAD pair continues to move downwards from the level of 1.3094. The pair dropped from the level of 1.3094 to the bottom around 1.2893 then set around the spot of 1.3048. Today, the first resistance level is seen at 1.3094 followed by 1.3132, while daily support 1 is seen at 1.2974. According to the previous events, the USD/CAD pair is still moving between the levels of 1.3094 and 1.2974; for that, we expect a range of 120 pips (1.3094 - 1.2974). If the USD/CAD pair fails to break through the minor resistance level of 1.3094 , the market will decline further to 1.3048. This would suggest a bearish market because the RSI indicator is still in a positive area and does not show any trend-reversal signs. The pair is expected to drop lower towards at least 1.2974 with a view to testing the daily major support. However, if a breakout takes place at the resistance level of 1.3130, then this scenario may become invalidated.

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Forecast for EUR/USD as of September 3, 2018

EUR / USD

On Friday, the euro moved toward the main scenario - a decline. On the daily chart, the price under the balance indicator line went down, than the market stabilize, respectively, shifted to the bearish side. On the 4-hour chart the price was fixed both under the balance line and under the blue moving average line. The MACD line (the blue indicator line) is the trend line - the price withdrawal below and a reversal indicates a trend change.

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On 4-hour chart, before touching the signal line of the Marlin oscillator of the lower channel boundary, there is a distance of 70 points which corresponds to a price movement of about 140 points. And, this measured move coincides exactly with the support of the MACD trend line on the daytime timeframe. That is, at this point a qualitative bifurcation will ripen - either a market reversal for a breaking again the range 1.1750-1.1822, or maintaining below the line with the target to break 1.1300 and go even lower into the medium-term decline. It is believe that the price break down is the main scenario, we also hope that Friday's non farm data will not fail, the forecast for August is 191 thousand against 157 thousand a month earlier. Today was a holiday in the United States. On the euro area, the final evaluation of business activity in the manufacturing sector for August shows an unchanged forecast - 54.6 points. But investors are more focused on Canada's reluctance to sign the NAFTA agreement, in which disputes are supposed to be settled under US law. President Trump remains adamant, the continuation of negotiations is scheduled on Wednesday. So, the target levels are: 1.1530 - the support line for the price channel on daily, coinciding with the local minimums marked with crosses on 4-hour timeframe at 1.1450, - support for the MACD line on daily, 1.1300 - minimum from August 15.

* 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 EUR/USD for September 03, 2018

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Overview:

Pivot : 1.1612.

The EUR/USD pair will continue to rise from the level of 1.1612. The support is found at the level of 1.1612, which represents the 78.6% Fibonacci retracement level in the H1 time frame. The price is likely to form a double bottom. Today, the major support is seen at 1.1612, while immediate resistance is seen at 1.1697. Accordingly, the EUR/USD pair is showing signs of strength following a breakout of a high at 1.1697. So, buy at the level of 1.1697 with the first target at 1.1782 in order to test the daily resistance 1 and move further to 1.1865. Also, the level of 1.1865 is a good place to take profit because it will form a new double top. Amid the previous events, the pair is still in an uptrend; for that we expect the EUR/USD pair to climb from 1.1697 to 1.1865 today. At the same time, in case a reversal takes place and the EUR/USD pair breaks through the support level of 1.1612, a further decline to 1.1500 can occur, which would indicate a bearish market.

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Trading plan for 03/09/2018

On Monday, the 3rd of September, the event calendar is light in important data releases. The main data releases will occur form the Eurozone and the UK in form of PMI Manufacturing. Two speeches are scheduled for today form ECB's Jens Weidmann and FOMC Member Charles Evans.

On Monday's session, the markets will lack traders from two important markets - the United States and Canada. All because of the labor holidays celebrated in both countries.

EUR/USD analysis for 03/09/2018:

The PMI Manufacturing data will be the most important event today. Because the manufacturing sector represents nearly a quarter of the total Eurozone GDP, the Eurozone Manufacturing PMI is both a significant and timely indicator of business conditions and the general health of the economy.

All of the PMI's are still above the fifty level, which indicates the expansion of the economy is continuing.

Let's now take a look at the EUR/USD technical picture at the H4 time frame. The price has fallen out of the dashed violet channel and currently is trading way below the support at the level of 1.1655. Moreover, the other channel was broken as well, which is not a good sign of bullish strength. The nearest intraday support is located at the level of 1.1594, but if this level will be violated, then the next support is seen at 1.1529. On the other hand, the nearest resistance is now seen at the level of 1.1627. Please notice the momentum indicator is below its fifty level, which suggest another possible wave down to come soon.

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Global macro overview for 03/09/2018

This week there will be key data in the discussion surrounding the future of trade wars. The new round of tariffs imposed by the US on Chinese goods may worsen sentiment in the markets. In addition, PMI / ISM indicators will be used to assess the condition of the global economy. Traditionally, at the beginning of the month, we have a report on the US labor market. Meetings will be held by central banks in Australia, Poland, Canada and Sweden.

The US is starting a week with a delay due to Labor Day on Monday. In the foreground, there may be a discussion about the chances of implementing new import duties for goods from China. We believe that the list of goods will serve as a card at the negotiating table rather quickly, although the risk of its implementation may be a factor spoiling the market sentiment pushing capital towards USD and other safe havens (JPY, CHF). From the data side we have ISM (Tues, Thurs) and NFP (Fri). ISM indicators may indicate deterioration in relation to the previous month, but readings at 56-57 still inform about the strong condition of the economy. The labor market should again show strong values with high employment growth (180 thousand thresholds) and a decline in the unemployment rate to 3.8 percent. The wage increase close to the trend is 0.2-0.3%. will seal the Fed's interest rate hike in September.

In the Eurozone, the revision of PMI (Mon, Wed) will rather go unnoticed, confirming that the period of a slowdown has already passed, but there are no strong signs of rebound. As business activity research translates into hard data, you can say more in German industrial production (Fri). Good data seems to be a prerequisite for breaking EUR higher, otherwise we will continue to observe boring consolidation.

In the United Kingdom, only the PMI indices are worth noting (Mon-Wed). July data indicated a deterioration of the economic situation, although readings of nearly 54 are not bad. The preliminary indications from Euroland published already do not give grounds for optimism for the industry index, but the service sector can already count on growth. Since the latter is more important for the UK, the data can ultimately support GBP. This will be possible, however, if the information envelope surrounding Brexit negotiations remains positive. Any mention raising the risk of disagreement with the EU will eliminate attempts to recover the last weakness.

In Australia, the focus will be on the RBA meeting (Tue) and GDP data. Over the past month, Australia has faced political turmoil (change of the prime minister) and increased concerns about the condition of the real estate sector and private debt in the era of credit cost increases. As a result, the RBA message will be analyzed for the increased dovishness that may hit AUD. After the GDP reading for the second quarter, values close to 3% are expected, but the terrible data on CAPEX this week raise the risk of a lower result. With anxious worries about commercial wars, AUD can be an easy boy to beat.

The Canadian Bank (Wednesday) will probably keep the overnight interest rate unchanged. The GDP reading for the second quarter in the past week was weaker than expected, which cuts the speculations about the hike and the market will continue to wait for October. As the chances are high (75%), even confirmation of hawkish expectations by the bank will not be a big surprise. On Friday, the publication of the labor market report is planned, where the risks are symmetrical, and until then the future of CAD will depend on how (and if) the NAFTA negotiations will end today.

Let's now take a look at the USD/CAD technical picture at the H4 time frame. The market has broken above the level of 61% Fibo and above the blue trend line resistance and made a local high at the level of 1.3088. Currently, the price is in a corrective cycle, but still stays above the trend line. The nearest support is seen at the level of 1.3000 and the nearest resistnace is seen at the level of 1.3113. The larger time frmae trend remains down.

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Ichimoku cloud indicator analysis of EUR/USD for September 3, 2018

EUR/USD has pulled back towards 1.16 and lower as we expected. Price is now challenging important short-term cloud support. This pull back could already be over and we could see another leg higher starting in EUR/USD. For this to be true price will need to break above the cloud and stay above it.

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EUR/USD has short-term support the recent lows at 1.1588. A break below this level will push price towards the lower cloud boundary at 1.1540. Short-term resistance is at 1.1630 and at 1.1660 by the kijun-sen (yellow line indicator). As long as the 4-hour chart shows prices closing below the kijun-sen, we should be expecting another leg down. EUR/USD could make a base at current levels and bounce off the cloud support. However, the longer price stays inside the Kumo (cloud) the chances of another leg down increase.The material has been provided by InstaForex Company - www.instaforex.com

Ethereum analysis for 03/09/2018

Ethereum's developers, during a regular YouTube meeting, decided to delay the "Difficulty Bomb" by agreeing to incorporate the code of this change into the upcoming Constantinople.

One of the main goals of the Ethereum Foundation is the adoption of a new consensus algorithm - Proof of Stake (PoS). In order to implement it, the developers have developed a solution called "Difficulty Bomb", which makes the production of new blocks more complex and unprofitable. Constantinople was designed to streamline the transition from the Proof of Work (PoW) consensus algorithm to PoS.

Last week, developers proposed three possible scenarios for the impact of Difficulty Bomb on the reduction and maintenance of block awards. According to the developers, EIP-858 would reduce block rewards to 1 ETH per block, EIP-1234 would reduce the block reward to 2 ETH, while EIP-1295 would retain the ETH 3 level, but would affect other factors such as the PoW incentive structure.

According to the post on GitHub, the developers decided to accept the scenario EIP-1234. It was proposed to delay the Difficulty Bomb by about 12 months so that in the winter of 2019 the chain returned to 30-second blocking times and reduced the block prize at hard forks Constantinople.

Let's now take a look at the Ethereum technical picture at the H4 time frame. There is a trend continuation pattern made at this time frame in a form of a Triangle Pattern, which means the downturn might be continued. The nearest technical support is seen at the level of 278.90 and then 268.92, but the key technical support is seen at the level of 246.61. On the other hand, the nearest technical resistance is seen at the level of 301.35.

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Technical analysis of Gold for September 3, 2018

Gold price remains in a short-term trend reversal phase having made an important low at $1,159. Price is making higher highs and higher lows. Gold has still potential to reach $1,220-30 as long as it holds above $1,195.

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Black lines -wedge pattern

Blue line -short-term support

Red line - short-term resistance

Gold price has short-term support at $1,200-$1,195. Resistance is at $1,208-11 area. If Gold price breaks above resistance I will be expecting Gold price to continue towards $1,220-30 area. If price breaks below support, I will be expecting Gold price to reach and back test the upper wedge boundary around $1,180. If price breaks below $1,180 we should be expecting Gold price to make new lows towards $1,140.

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Bitcoin analysis for 03/09/2018

According to an official patent document, the American trading giant Walmart filed a request to the US Patent Office (USPTO) for patenting the Blockchain system for deliveries. The new patent aims to provide a technology enabling the "authentication of autonomous electronic devices in the field" to ensure safe deliveries.

"For example, two independent electronic devices, such as delivery drones or stand-alone home robots, can authenticate one another using the security procedures described here " - we can read in the document.

The patent has the title "Systems, devices and methods for authenticating autonomous robots in the field" and was submitted in January 2018 by Wal-Mart Stores Inc. based in Arkansas. The document describes a system of handling many robots or drones that deliver parcels throughout the entire supply chain. Machines operate on the basis of wireless signals that allow secure authentication of electronic devices identity by Blockchain.

According to the patent application, the implementation of Blockchain will be useful in the process of registering signals and credentials, which are considered the main target of a hacker attack.

Last year, Walmart filed a number of applications for patents related to Blockchain technology in the US. According to Investopedia, the Blockchain improvement is used by the network mainly to keep pace with rivals such as Amazon.

Let's now take a look at the Bitcoin technical picture at the H4 time frame. The market has broken through the technical resistance at the level of $7,087 and made a new local high at the level of $7,300. Currently, the price is moving inside of the channel (marked in black) just above the weekly pivot at the level of $7,090. Please notice the bearish divergence between the price and the momentum indicator. It might suggest a temporary pull-back towards the level of $6,900 again.

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Forecast for USD/JPY as of September 3, 2018

USD/JPY

On Friday, the yen was recovering from a significant drop on Thursday, but today in the Asian session it sharply went down on a new round of intrigues between the US and Canada. Apparently, the conclusion of the signing of NAFTA is postponed for a month, and this is only in the best case. At worst, NAFTA may not take place at all, there will only be a US trade agreement with Mexico, and Canada will suffer the fate of the European Union. Japanese stock index Nikkei 225 loses 0.58%. Even worse is the situation on the stock markets of China, as Trump once again threatens to raise tariffs on Chinese goods in the amount of 200 billion dollars – China A50 loses -0.78%, Shanghai Composite -0.94%.

This turn of events forces us to abandon the mood to raise the yen. Now the immediate goal is to support the trend line of the falling price channel of 110.43, then the low of August 21 at 109.79, coinciding with the next support of the price channel. On the daily chart, the price develops under the red indicator balance line, the signal line of the oscillator Marlin hurries to go deeper down.

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On the scale of H4, the price was also kept from trying to grow by the balance line, now there was a consolidation under the Kruzenshtern indicator trend line.

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EUR/JPY Approaching Support, Prepare For Bounce

EUR/JPY is approaching its support at 128.56 (100% Fibonacci extension, 38.2% Fibonacci retracement, horizontal overlap support) where it could potentially bounce to its resistance at 129.81 (50% Fibonacci retracement, horizontal overlap resistance).

Stochastic (55, 5, 3) is approaching its support at 1.7% where a corresponding bounce could occur.

EUR/JPY is approaching its support where we expect to see a bounce.

Buy above 128.56. Stop loss at 127.86. Take profit at 129.81.

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AUD/JPY Approaching Support, Prepare For Bounce

AUD/JPY is approaching its support at 79.18 (61.8% Fibonacci extension, 61.8% Fibonacci retracement, horizontal overlap support) where it could potentially bounce to its resistance at 80.60 (61.8% Fibonacci retracement, horizontal pullback resistance).

Stochastic (55, 5, 3) is approaching its support at 3.7% where a corresponding bounce could occur.

AUD/JPY is approaching its support where we expect to see a bounce.

Buy above 79.18. Stop loss at 78.28. Take profit at 80.60.

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Technical analysis: Intraday Level For EUR/USD, Sept 03, 2018

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When the European market opens, some Economic Data will be released such as Final Manufacturing PMI, German Final Manufacturing PMI, French Final Manufacturing PMI, Italian Manufacturing PMI, and Spanish Manufacturing PMI. The US will not release any Economic Data today, so amid the reports, EUR/USD will move in a low to medium volatility during this day.

TODAY'S TECHNICAL LEVEL: Breakout BUY Level: 1.1653. Strong Resistance:1.1646. Original Resistance: 1.1635. Inner Sell Area: 1.1624. Target Inner Area: 1.1597. Inner Buy Area: 1.1570. Original Support: 1.1559. Strong Support: 1.1548. Breakout SELL Level: 1.1541.

Disclaimer: Trading Forex (foreign exchange) on margin carries a highlevel 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 carefullyconsider your investment objectives, level of experience, and riskappetite. The possibility exists that you could sustain a loss of someor all of your initial investment and therefore you should not investmoney that you cannot afford to lose. You should be aware of all therisks associated with foreign exchange trading, and seek advice froman 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, Sept 03, 2018

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In Asia, Japan will release Final Manufacturing PMI, and Capital Spending q/y, but the US will not release any Economic Data today. So there is a probability the USD/JPY pair will move with low to medium volatility during this day.

TODAY'S TECHNICAL LEVEL:

Resistance. 3: 111.56.

Resistance. 2: 111.34.

Resistance. 1: 111.12.

Support. 1: 110.86.

Support. 2: 110.64.

Support. 3: 110.42.

Disclaimer: Trading Forex (foreign exchange) on margin carries a highlevel 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 carefullyconsider your investment objectives, level of experience, and riskappetite. The possibility exists that you could sustain a loss of someor all of your initial investment and therefore you should not investmoney that you cannot afford to lose. You should be aware of all therisks associated with foreign exchange trading, and seek advice froman 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 September 3, 2018

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We continue to look for a continuation of the new established uptrend towards 1.7812 and higher towards 1.8369 after the break above 1.7484.

In the short-term, we could see more sideways consolidation just above the former resistance at 1.7484, which now acts as support. It should just be a matter of time before this sideways consolidation is complete and the uptrend can continue towards 1.7812 and beyond.

Support is seen at 1.7484 and 1.7459.

R3: 1.7714

R2: 1.7668

R1: 1.7597

Pivot: 1.7484

S1: 1.7459

S2: 1.7414

S3: 1.7384

Trading recommendation:

We are long EUR from 1.7330 with our stop placed at 1.7410. If you are not long EUR yet, buy near 1.7484 or upon a break above 1.7597 and use the same stop at 1.7410.

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Elliott wave analysis of EUR/JPY for September 3, 2018

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EUR/JPY has declined nicely and is now hovering just below our 128.78 - 129.00 target zone. We are looking for a recovery towards 129.85 next and from there it will be decided, whether more corrective downside pressure is needed or not.

In the short-term, a break above resistance at 129.14 will confirm the expected rally towards 129.85 and maybe even a continuation towards 130.87 and beyond.

If support at 128.54 gives away first, then a minor dip to support at 128.30 should be expected before a recovery is seen, but the potential downside should be limited for now.

R3: 129.85

R2: 129.32

R1: 129.14

Pivot: 128.83

S1: 128.54

S2: 128.30

S3: 127.94

Trading recommendation:

We took profit on our short position at 129.10 for a nice little profit of 58 pips and at the same time bought EUR. We have placed our stop at 128.10.

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