The daily review of EUR / USD as of September 7, 2018. Ichimoku Indicator

EUR / USD

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The euro, thanks to the support of 1.1545-72 (the lower boundary of the weekly cloud + the weekly Tenkan + day cross), this week keeps its location in the weekly cloud, thereby increasing the chances of continuing the weekly upward correction. The main resistance line in this way is concentrated now in the area of 1.1680 (daytime cloud) - 1.1708-50 (week and month Fibo Kijuny).

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Levels of support and resistance today retained their location. In addition, it retains its performance goal for the breakdown of the cloud H1. As a result, the main conclusions and expectations also remain the same. The goal and guidelines for the development of the upward movement are 1.1680 - 1.1708 - 1.1750. The center of attraction and preservation of bullish advantages is the area of 1.1620-30 (crosses and clouds of lower periods + day Tenkan). The bulk of the supports still unite in the zone 1.1518-72.

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.

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The dollar approached the danger line

If the "bears" for EUR / USD do not show special zeal on a favorable background, is the market ready to continue selling the main currency pair? Despite the increase in the likelihood of four increases in the federal funds rate by 12 pp. within a month, the "hawkish" rhetoric of FOMC representatives and the threat of Donald Trump to introduce additional import duties against China, the dollar is in no hurry to take advantage of its trump cards. Investors are not at all sure of the continuation of the rally in the USD index, because the US economy does not have to grow as fast as in the second quarter. The fiscal stimulus is by no means a long-lasting factor, and if so, it is dangerous to buy an "American".

According to the president of the Federal Reserve Bank of New York, John Williams, the Fed must make decisions based on where the economy is now, and where it goes. And if you have to push the yield curve to the red zone, the Central Bank should not worry about it. Yes, the indicator predicted all 7 recessions in the last 50 years, but the authoritative politician does not want to apply past experience purely mechanically. Conditions have changed. The same thing was said by Fed Chairman Ben Bernanke on the eve of the global crisis of 2008 ... However, it is one thing when a moderately hawkish rhetoric marks a supporter of a monetary restriction, the other, if the same is done by the "dove" of the FOMC. President of the Federal Reserve Bank of Chicago Charles Evans believes that the Central Bank will have to raise the rate on federal funds above the neutral level, which it defines as 2.75%. "Bear" signal for EUR / USD, which the sellers did not hurry to take advantage of.

The dynamics of the probability of an increase in the Fed rate in December

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In general, the mood inside the Fed is quite understandable, at the end of September the rate will rise to 2.25%, the Central Bank does not seem to be slowing down and reacting to criticism of Donald Trump. Nevertheless, the factor of the normalization of monetary policy is already largely taken into account in the quotations of dollar pairs. But the escalation of trade wars can inspire "bears" in EUR / USD for new exploits. The expansion of import duties by $ 200 billion will be aroused by the further slowing of China's economy and sales of assets in developing countries. The Celestial Empire produces about 30% of global GDP growth, and its problems go sideways to the global economy. The differential of its growth with the American analog increases in favor of the latter, which leads to the strengthening of the US dollar. It turns out that the culprit of the revaluation is Donald Trump, although he himself does not recognize this, nodding on the manipulation of China and the eurozone own currencies.

As for the euro, this money unit is not yet rushing to use investors' doubts in the bright future of the US dollar and is reacting to the change in the political landscape in Italy. After the eurosceptics hinted that the draft budget of the republic would comply with EU norms, the yield of local 10-year bonds fell from 3.2% to 2.9%, and the bulls in EUR / USD went on the next attack.

Technically there is consolidation in the range 1.15-1.18. Breakthrough of its upper limit will increase the risks of implementing the target by 88.6% according to the pattern of the "Shark". On the contrary, a successful support test at 1.15 will open the way to the "bears" for EUR / USD.

EUR / USD, the daily chart

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The growth of panic moods is inevitable

On the eve of the main event of the week, the report on employment in the US for August, the statistics coming from overseas remain quite contradictory.

The growth of business activity in the sector, according to IHS Markit, slowed in August to a minimum for 5 months, the index was 54.8p against 55.2p a month earlier. Procurement prices in the service sector continued to grow, but the growth rate was minimal for 5 months, employment growth was reduced to a minimum in 7 months.

Employment in the private sector, according to the ADP Research Institute, showed a minimal increase in 10 months in August, the result was significantly worse than forecasts.

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Two weak releases did not have a noticeable impact on the dollar since all the negative was more than offset by the ISM report on activity in the services sector, which again proved significantly better than the similar study from Markit. In August, the index rose from 55.7p to 58.5p, which significantly exceeded all forecasts, the index of new orders at 60.4p, which indicates the expansion of the US economy and good forecasts for GDP growth in the 3rd quarter.

US stock markets are traded in the red zone, investors are increasingly worried that stock indexes have already formed the top and go into a deep correction.

One of the main reasons for the fear is the escalation of the US trade wars with the main partners. It is expected that in the near future Donald Trump can announce the introduction of additional duties on Chinese imports amounting to 200 billion dollars, all the necessary formal steps have already been passed. Concerning the future agreement, NAFTA also is not present while any clearness, Canada does not wish to agree on offered to it conditions which fairly considers as predatory.

The first information appeared that the next one in Japan, which is included in the list of the largest US trade partners. Trump's efforts to fill the budget have not yet led to success, the trade deficit is growing, the situation will begin to worsen as oil production in the United States begins an inevitable decline on the background of depletion of shale deposits. The yen has responded with strengthening, the world is actually preparing for a new wave of escape from risk.

Today at 13.30 London time, a report on the labor market for August will be published, optimistic forecasts, especially against the backdrop of the Fed's recent calculations of a decline in the rate of growth of jobs in full-time employment to 60-80 thousand per month. The focus will be on the growth rate of average wages as a key factor in inflation expectations in the Fed's calculations (the so-called "Phillips rule").

EUR / USD

Today, we will publish a report on GDP growth for the second quarter, but it is unlikely that it will have any noticeable impact on the market. Next week, the ECB will hold a meeting on monetary policy, which is expected to announce a decrease in the volume of monthly purchases to 15 billion, any surprises are unlikely.

The situation in the euro area is calm, the economy is growing at a moderate pace, some inflation surge is explained by rising energy prices, which is confirmed by the stability of the root inflation, the forecasts do not imply serious changes.

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Today, the euro will continue to trade in the lateral range in anticipation of new benchmarks, growth is limited to 1.1665, support 1.1585, out of range is possible in case of a noticeable difference between the labor report and forecasts.

Oil and ruble

The ruble has updated at least since April 2016 against the backdrop of political aggression against Russia on the part of the UK, the Conservatives are looking for a way to hold power against the backdrop of the frankly failed results of the Brexit talks, as well as in anticipation of a new portion of sanctions from the US. Correction of oil prices and a general increase in panic sentiment in emerging markets also contributed to the decline in the Russian currency.

The hurricane in the Gulf of Mexico was noticeably weaker than the market feared, so attention will again be shifted to the latest API report, which looks positive, oil will be traded today with a slight decrease.

Despite the fact that there are no internal reasons for weakening the ruble, there is no reason to expect a return to the range of 60-65. The stock market should leave foreign speculative capital, stabilization is possible only after the introduction of additional measures by the government, as Russian Finance Minister Siluanov said yesterday.

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Trump, duties, China - the decisive moment.

Trump, duties, China - the decisive moment.

Today, the markets are waiting for the US announcement of new duties against China.

At the end of last week Trump said that he would introduce new duties against China "already next week". That is, one day remains, Friday, September 7.

As of 0.00 hours for New York, there was no announcement of duties (in China it was already noon).

The amount of duties, as previously announced, could amount to a huge amount of $ 200 billion (the amount of goods liable to taxation). This will affect virtually all sectors of imports from China and, undoubtedly, will lead to an increase in prices for a huge list of goods in US stores.

US businesses dealing with retail and importing from the US have made a final effort to convince Trump not to impose new duties. In fact, consumers and US companies will have to pay these fees out of their own pocket.

The issue has a clear and significant political price. In November, by-elections to the Congress, and new duties (if introduced) will become one of the main issues in the already actively running election campaign. In the case of a negative effect, Trump can get an opposition majority in Congress. In this case, he will become a weak President, 2 years before the new elections.

Our opinion is that it would be advantageous for Trump to postpone the imposition of duties, and to conduct another talks with China, and then to introduce duties if it cannot be agreed.

How will the markets react to new duties? Probably, in favor of the US dollar in case of introduction, and the weakening of the dollar in case of postponing the issue but at the same time, the growth of the stock market.

In the case of imposing duties, the euro is likely to turn down and try to break through 1.1525 down.analytics5b922cca5049b.jpg

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Demand for the euro will continue

The euro remained in a narrow lateral channel paired with the US dollar after the release of a number of fundamental statistics, evidence in favor of strengthening the US economy.

Data on Germany disappoint investors.

According to the report, orders in the manufacturing sector of Germany fell again, which is a bad sign for industrial production. According to the Federal Bureau of Statistics, orders in the manufacturing sector in Germany in July 2018 decreased by 0.9% compared to the previous month. In June, orders were reduced by 3.9%.

A good report from the Institute of Economic Studies Ifo allows you to count on the further growth of the German economy. It says that thanks to a strong labor market and increased private consumption, Germany's economy may grow by 1.9% this year. However, this is lower than in 2017, when growth was 2.5%. Ifo also noticed that low-interest rates stimulate investment.

Data on the US did not lead to significant changes in the market.

According to the report of the US Department of Labor, the number of initial applications for unemployment benefits for the week from 26 August to 1 September decreased by 10,000 and amounted to 203,000. Economists had expected the number of applications to be 211,000.

Labor productivity in the US continued to grow.

According to the report of the Ministry of Labor, labor productivity outside of US agriculture in the second quarter of 2018 increased by 2.9% compared with the previous quarter. The data fully coincided with the forecast of economists and therefore did not lead to the strengthening of the US dollar. In comparison with the same period of the previous year, productivity grew only by 1.3%

Meanwhile, unit labor costs for the period from April to June decreased by 1.0% compared with the first quarter. Economists predicted that the figure will decrease by 0.9%.

According to the report of the US Department of Commerce, orders for manufactured goods in July 2018 decreased by 0.8% compared to the previous month, to 497.75 billion US dollars. Economists had expected a decrease in orders of 0.6%. In general, the decrease was due to a sharp drop in orders for civil aircraft and defense products, while orders for short-term goods rose 0.2% in July.

As for the technical picture of the EUR / USD pair, the potential for growth of risky assets remains. The breakthrough of resistance 1.1650 will be a good signal for the growth of long positions in the euro, which will lead to the renewal of the highs around 1.1690 and 1.1730. Despite the positive signals for buyers, the situation can quickly change after the report on the number of employees in the non-agricultural sector. Weak indicators on the US labor market may put even more pressure on the US dollar.

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Analysis of GBP / USD Divergences for September 7. Two rebounds from the level of 1.2952 work in favor of the US currency

4h

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The GBP / USD currency pair on the 4-hour chart reversed in favor of the British currency after the bullish divergence of the CCI indicator. As a result, the pair began the growth process in the direction of the corrective level of 200.0% - 1.3047. There are no new brewing divergences on September 7. The fall of the pair's rate from the Fibo level of 200.0% will allow traders to expect a reversal in favor of the US dollar and a slight drop towards the correction level of 261.8% - 1.2637. Fixing the quotes above the Fibo level of 200.0% will work in favor of continuing the growth of the pair.

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 retreated from the correction level of 23.6% to 1.2952 and began to fall in the direction of the corrective level of 38.2% to 1.2897. There are no maturing divergences on the current chart. Quit of quotes from the level of Fibo 38.2% will work already in favor of the pound sterling and resumption of growth in the direction of correction level of 23.6%. Fixing the pair's rate above the Fibo level of 23.6% will similarly work in favor of continuing growth in the direction of the correction level of 0.0% - 1.3043.

The Fibo grid is built on extremes from August 15, 2018, and August 30, 2018.

Recommendations for traders:

Purchases of the GBP / USD pair can be carried out for the purpose of 1.2952 and a stop loss order under the correction level of 38.2% if there is a retreat from the correction level 1,2897 (hourly chart).

Sales of the GBP / USD pair can now be carried out with the target of 1.2897 and Stop Loss order above the correction level of 23.6%, since the pair has completed the rebound from the level of 1.2952.

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Fractal analysis of the main currency pairs on September 7

Dear colleagues.

For the currency pair Euro / Dollar, we continue to monitor the formation of the potential for the top of September 4 and the upward movement is expected after the breakdown of 1.1675. For the Pound / Dollar currency pair, we follow the formation of the upward structure from September 5 and we continue to wait for the continuation of the upward movement after the breakdown of 1.2983. For the Dollar / Franc currency pair, we follow the local downward cycle from September 4. For the currency pair Dollar / Yen, the subsequent targets were determined from the medium-term downward structure of August 29. For the currency pair Euro / Yen, we follow the development of the downward structure of August 29. For the Pound / Yen currency pair, the downward structure of August 30 is considered as medium-term initial conditions.

Forecast for September 7:

Analytical review of currency pairs in the scale of H1:

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For the EUR / USD currency pair, the key levels on the scale of H1 are: 1.1740, 1.1713, 1.1675, 1.1661, 1.1614, 1.1590, 1.1538, 1.1517 and 1.1485. Here, we continue to monitor the formation of the potential for the top of September 4. The continuation of the development of the upward structure is expected after the passage at the price of the noise range of 1.1661 - 1.1675. In this case, the target is 1.1713. The potential value for the top is the level of 1.1740, after which we expect consolidation, as well as a pullback to the bottom.

The short-term downward movement is possible in the corridor of 1.1614-1.1590 and the breakdown of the last value will have to form a local downward structure. Here, the first target is 1.1538 and in the corridor of 1.1538 - 1.1517 is the consolidation. The potential value for the bottom is the level of 1.1485.

The main trend is the formation of the potential for the top of September 4.

Trading recommendations:

Buy 1.1675 Take profit: 1.1710

Buy 1.1714 Take profit: 1.1740

Sell: 1.1614 Take profit: 1.1592

Sell: 1.1587 Take profit: 1.1540

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For the Pound / Dollar currency pair, the key levels on the H1 scale are 1.3161, 1.3110, 1.3040, 1.3014, 1.2983, 1.2880, 1.2855, 1.2820 and 1.2786. Here, the price forms the potential for the top of September 5. The continued upward movement is expected after the breakdown of 1.2983. In this case, the target is 1.3014 and in the corridor of 1.3014 - 1.3040 is the consolidation. The break of level 1.3040 should be accompanied by a pronounced upward movement. Here, the target is 1.3110. The potential value for the upstream structure is the level of 1.3161.

The short-term downward movement is possible in the corridor of 1.2880 - 1.2855 and the breakdown of the last value will lead to an in-depth correction. Here, the target is 1.2820 and this level is the key support for the top. Its breakdown will have a downward movement. Here, the target is 1.2786.

The main trend is the formation of the potential for the top of September 5.

Trading recommendations:

Buy: 1.2983 Take profit: 1.3014

Buy: 1.3042 Take profit: 1.3110

Sell: 1.2880 Take profit: 1.2857

Sell: 1.2853 Take profit: 1.2820

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For the currency pair Dollar / Franc, the key levels on the scale of H1 are: 0.9718, 0.9688, 0.9667, 0.9639, 0.9622, 0.9596 and 0.9581. Here, we follow the development of the local downward structure of September 4. The short-term downward movement is possible in the corridor of 0.9639 - 0.9622 and the breakdown of the last value will lead to the development of a pronounced movement. Here, the target is 0.9596 and the potential value for the bottom is the level of 0.9581, upon reaching which we expect consolidation in the corridor of 0.9581 - 0.9596, and also a rollback upward.

The short-term upward movement is possible in the corridor of 0.9667 - 0.9688 and the breakdown of the last value will lead to an in-depth correction. Here, the target is 0.9718 and this level is the key support for the downward structure from September 4.

The main trend is the downward structure of September 4.

Trading recommendations:

Buy: 0.9667 Take profit: 0.9686

Buy: 0.9690 Take profit: 0.9717

Sell: 0.9638 Take profit: 0.9624

Sell: 0.9620 Take profit: 0.9596analytics5b91cee645165.png

For the currency pair Dollar / Yen, the key levels on the scale of H1 are: 111.23, 110.98, 110.78, 110.47, 110.28, 109.88, 109.62 and 109.18. Here, we determined the subsequent goals from the medium-term downward structure on August 28. The continued downward movement is expected after the passage at the price of the noise range of 110.47 - 110.28. In this case, the target is 109.88 and in the corridor of 109.88 - 109.62 is the consolidation. The potential value for the bottom is the level of 109.18 and the movement to which we expect after the breakdown of 109.60.

The short-term upward movement is possible in the corridor of 110.78 - 110.98 and the breakdown of the last value will lead to an in-depth correction. Here, the target is 111.23 and this level is the key support for the downward structure.

The main trend is the medium-term downward structure of August 28.

Trading recommendations:

Buy: 110.78 Take profit: 110.96

Buy: 111.00 Take profit: 111.23

Sell: 110.26 Take profit: 109.90

Sell: 109.86 Take profit: 109.64

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For the Canadian Dollar / Dollar currency pair, the key levels on the H1 scale are: 1.3271, 1.3235, 1.3200, 1.3156, 1.3133 and 1.3097. Here, we follow the upward cycle from August 30, currently, the price is in the correction area. The continuation of the main trend is expected after the breakdown of the level of 1.3200. In this case, the target is 1.3235, from this level, the probability of leaving for correction is high. As a potential move for the top, consider the level of 1.3271, upon reaching which we expect a pullback downwards.

The short-term downward movement is possible in the corridor of 1.3156 - 1.3133 and the breakdown of the last value will lead to an in-depth correction. In this case, the target is 1.3097 and this level is the key support for the upward structure.

The main trend is the ascending structure of August 30.

Trading recommendations:

Buy: 1.3200 Take profit: 1.3233

Buy: 1.3237 Take profit: 1.3270

Sell: 1.3155 Take profit: 1.3135

Sell: 1.3130 Take profit: 1.3097

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For the Australian Dollar / Dollar currency pair, the key levels on the scale of H1 are: 0.7273, 0.7241, 0.7216, 0.7152, 0.7131, 0.7094 and 0.7062. Here, we follow the downward structure of August 28. The continued downward movement is expected after the passage at the price of the noise range of 0.7152 - 0.7131. In this case, the target is 0.7094. The potential value for the bottom is the level of 0.7062, after which we expect the consolidated movement in the range 0.7062 - 0.7094.

The short-term upward movement is possible in the corridor of 0.7216 - 0.7241 and the breakdown of the last value will lead to an in-depth correction. Here, the target is 0.7273 and this level is the key support for the bottom.

The main trend is the downward structure of August 28.

Trading recommendations:

Buy: 0.7216 Take profit: 0.7240

Buy: 0.7243 Take profit: 0.7273

Sell: 0.7130 Take profit: 0.7095

Sell: 0.7092 Take profit: 0.7062

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For the Euro / Yen currency pair, the key levels on the scale of H1 are: 130.92, 130.06, 129.55, 128.43, 127.98, 127.47 and 127.18. Here, we follow the development of the downward structure of August 29.

The short-term downward movement is possible in the corridor of 128.43 - 127.98 and the breakdown of the last value will lead to a pronounced movement. Here, the target is 127.47. The range of 127.47 - 127.18, before it we expect the initial conditions for the descending cycle to be formalized.

The short-term upward movement is possible in the range of 129.55 - 130.06 and the breakdown of the last value will lead to the formation of initial conditions for the upward cycle. Here, the target is 130.92.

The main trend is the downward structure of August 29.

Trading recommendations:

Buy: 129.57 Take profit: 130.00

Buy: 130.10 Take profit: 130.90

Sell: 128.40 Take profit: 128.00

Sell: 127.95 Take profit: 127.50

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For the Pound / Yen currency pair, the key levels on the scale of H1 are: 144.46, 143.70, 143.30, 142.39, 141.86, 141.38, 140.66 and 140.23. Here, the descending structure of August 30 is considered as medium-term initial conditions. The continued downward movement is expected after the breakdown at 142.39. In this case, the target is 141.86 and in the corridor of 141.86 - 141.38 is the consolidation. The level breakdown at 141.38 should be accompanied by a pronounced downward movement. Here, the target is 140.66 and the potential value for the bottom is the level of 140.23, after which we expect consolidation, and also a rollback to the top.

The short-term upward movement is possible in the corridor of 143.30 - 143.70 and the breakdown of the last value will lead to an in-depth correction. Here, the target is 144.46 and this level is the key support for the bottom.

The main trend is the medium-term downward structure of August 30.

Trading recommendations:

Buy: 143.70 Take profit: 144.40

Buy: 144.50 Take profit: 145.65

Sell: 142.35 Take profit: 141.86

Sell: 141.80 Take profit: 141.40

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Bitcoin analysis for September 07, 2018

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Trading recommendations:

According to the H1 time - frame, I found strong downward momentum in the background and the price tested the level of $6.615. As I expected, the price broke the bearish flag pattern in the background, which is a sign for further downward continuation. Watch for a breakout of the most recent intraday bearish flag to confirm further downward continuation. The downward target is set at the price of $5.838.

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

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The daily review of EUR / USD as of September 6, 2018. Ichimoku Indicator

EUR / USD

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Yesterday, the zone of accumulation of important supports (1.1545-72 the lower boundary of the weekly cloud + the weekly Tenkan + day cross) confirmed its strength and significance again. The players on the downside cannot continue to decline, while rivals insist on the development of an upward movement. In the event of a victory in the confrontation, the main task for the players will be to break the day cloud (Senkou Span B 1.1680) and overcome the resistance of the monthly and weekly halves in the zone of 1.1708-50.

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The wide support zone for the high-level levels (1.1545-72) and the H4 clouds did their job. The braking was delayed, while the players on the upgrade even managed to restore some of their advantages. In the case of strengthening of bullish sentiments, interests will be shifted to important levels of resistance of the high seasons (1.1680 - 1.1708 and targets for the breakdown of the H1 cloud (1.1688 - 1.1705).The support force (1.1545-72) and the cloud of H4 can now hold back the development of events.The lack of new bullish achievements and the duration of braking will increase the chances of returning bearish sentiment and a new test of the support zone (1.1518-72).

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

Trading plan for the European session of GBP / USD pair on September 7

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

While the trade is above 1.2921, demand for the pound will remain, which will lead to the renewal of the week's highs around 1.2968 and 1.3004, where fixing profits are recommended. In case of reduction of the pound in the first half of the day below the support level of 1.2921, traders can return purchasing the pair on the rebound from 1.2876.

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

Sellers need a return to support level of 1.2921. Only after that, it will be possible to count on the resumption of pressure on the pair with a view of reducing to the area of 1.2876, where fixing profits are recommended. In case of further growth, you can immediately return to GBP / USD sales on a false breakdown from resistance of 1.2968 or to a rebound from 1.3004.

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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
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GBP/USD analysis for September 07, 2018

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Recently, the GBP/USD pair has been trading upwards. The price tested the level of 1.2975. According to the H1 time – frame, I found that GBP/USD finished the downward correction in the background (expanded flat), which is a sign that selling looks risky. I also found strong demand in the background and hidden bullish divergence on the RSI oscillator, which is a sign that buyers are in control. Watch for buying opportunities. The level of 1.2980 provided good level of support for buying positions. The upward targets are set at the price of 1.3068 and at the price of 1.3150.

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

Daily review of the GBP / USD pair on 07.09.18. Ichimoku Indicator

GBP / USD pair

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The strength and attraction of support levels at 1.2904 - 1.2820 (Fib month + Kijun historical level) continue to hold the pair, not allowing players to continue its decline to the weekly goals for the breakdown of the cloud at 1.2302 - 1.2072. The prolonged inhibition, as well as to the side of the players to rise of the weekly short-term trend (1.3012), will contribute to the development of ascending correction.

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At lower time intervals, it is clear that the support that holds back the development of the situation. Overcoming and reliable consolidation below 1.2904 area and 1.2820-08 allow consideration of the resumption of bearish sentiment and upgrade the minimal peak of 1.2661, which will restore the global downtrend. Saving the players to rise is at the insignificant moment. Benefits can contribute to the rise of the resistance at 1.3012 and the overcoming of which will lead to a resumption of the upward movement.

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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EUR/USD analysis for September 07, 2018

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Recently, the EUR/USD pair has been trading downwards. The price tested the level of 1.1600. Anyway, according to the M15 time – frame, I fund potential fifth point of the wolfe wave bullish pattern, which means that selling looks very risky. The level of 1.1600 provided very solid support and it is also a Fibonacci expansion 100% from the most recent activity. I also found that RSI oscillator is in the oversold zone, which is another sign of potential strength. Watch for buying opportunities. Take profit level is set at the price of 1.1657.

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The risk of braking the world economy is very high

The situation of uncertainty has overwhelmed emerging markets. Sale on the stock markets increased on Thursday, which is already characterized by analysts as the worst since 2008 and surpassing them.

Investors selling risky assets make it clear that their fears associated with the prospects for the growth of the global economy have already reached a critical point. The fall in the stock indices of emerging markets does not seem to be a panic, but it has already spread to Europe where there is a noticeable decline in major stock indexes. In the United States, the same dynamics were observed in the shares of companies in the technology sector. It seems that we are witnessing the collapse of "soapy" financial bubbles that was inflated by incentive programs that are known as quantitative easing and have been active in the States since 2009, as well as in Europe. It seems that investors perceive the situation with trade wars as long-playing and negative for world economic growth in the future.

Markets are still reacting to the falling exchange rates of emerging economies. European currencies, as well as the currency-refuge of the Japanese yen, do not react to this. It receives the support of the Swiss franc against all major currencies without exception, which indicates a high degree of concern among market participants. For the time being in Europe, they are closely following the negotiation process between Germany and Great Britain on Brexit. Apparently, they believe that the unfolding storm in emerging markets will not affect them. Commodity and commodity currencies remain under pressure. If New Zealand and Australian dollars are somehow kept in pairs with the "American" in the outset, the Canadian dollar and the ruble declined noticeably not only because of internal reasons but also under the influence of fears.

In general, watching the general picture in the markets, we believe that the demand for the dollar will not grow in the near future.

Forecast of the day:

The AUD/USD pair is trading below the 0.7165 mark. The fears associated with the prospects for the world economy put pressure on it. The decline and consolidation below the level of 0.7165 could lead to a drop in the price to 0.7100.

The GBP/USD pair is trading below 1.2930. The subject with arrangements for Brexit between Britain and Germany is won back. Failure of the pair to grow higher may lead to its reversal and decrease again to 1.2800.

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Trading plan for the US session of EUR / USD pair on September 6

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

Buyers were unable to get above resistance 1.1646 in the morning. Now you can count only on the formation of a false breakout in the area of 1.1610, which will signal a purchase of the euro for the purpose of re-growth and consolidation above resistance of 1.1646. Then, this could lead to a larger upward wave to 1.1686, where fixing profits are recommended. If the euro falls below the support level of 1.1610, you can go back immediately to the rebound from 1.1574.

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

Sellers did not let the euro rise above 1.1646, which is a good signal for a downward correction, but the bear needs a return to support 1.1610. Only after that, it will be possible to talk about the formation of a major downward wave with the renewal of the week's lows around 1.1574 and 1.1531, where fixing profits are recommended. If EUR / USD rises in the second half of the day, sales are best returned to a rebound of 1.1686.

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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
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Forecast for EUR / USD pair as of September 7, 2018

EUR / USD pair

On Thursday, European investors were disappointed with data on Germany, where the volume of industrial orders fell by -0.9% in July against expectations for growth of 1.8%. This was the initial impetus for the euro to fall. In the US, the change in the number of jobs in the private sector from ADP showed an increase of 163,000 in August against the expectations of 195,000. However, this indicator in recent years has been weakly correlated with "non-pharma" and jobs outside the agricultural sector are more dependent on weekly applications for Unemployment benefits. Yesterday they were historically low as 203,000 (since 1970). The index of business activity in the non-manufacturing sector from ISM increased sharply from 55.7 to 58.5 for August while the forecast was 56.8. He summed up only the volume of factory orders, which fell by -0.8% in August against the forecast of -0.5%.

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In the case of really good data on Non-Farm Employment Change and the forecast of 191,000 against 157 thousand in July, we are waiting for the price to be overcome at the level of 1.1575 (July 19 minimum) and we are waiting for a decrease to support the trend line to 1.1524.

We consider this as the main scenario, but the probability of an upward price increase is increasing. First of all, the role of the US-Canada talks on NAFTA is growing. President Trump expected the achievement of some agreements today. Yesterday the negotiators worked all night, but it may very well be that no agreements will be reached. Also, even with good non-businesses, the euro can go up. According to the indicators, the current situation is increasing. Even at H4, even if the price is below the balance lines and MACD line the Marlin oscillator is still in the growth zone and there is no convergence with the price.

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So, the market keeps intrigue and uncertainty where it will either decline to 1.1524 or grow in the range of 1.1750-1.1822.

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Fundamental Analysis of NZD/USD for September 7, 2018

NZD/USD has been impulsive amid the bearish momentum recently which lead the price to reside at the edge of 0.6550 support area currently. USD has been the dominant currency in the pair while NZD has been struggling in light of the soft economic data earlier, which is expected to change for good in the coming days.

This week NZD Overseas Trade Index report was published with an increase to 0.6% from the previous value of -2.0% which unfortunately did not meet the forecasted value of 1.1% and ANZ Commodity Prices report showed an increase to -1.1% from the previous value of -3.3%. Today RBNZ Governor Orr spoke about the long-term planning for the development rather than any short-term temporary solutions and he also outlined the current priorities for the change which includes regulated financial institutions and movement of the money in the economy.

On the USD side, today's economic reports are going to provide definite insight for the upcoming momentum of the currency. Today USD Average Hourly Earnings report is going to be published which is expected to decrease to 0.2% from the previous value of 0.3%, Non-Farm Employment Change is expected to increase to 191k from the previous figure of 157k and Unemployment Rate is expected to decrease to 3.8% from the previous value of 3.9%.

Meanhwile, NZD has been performing quite well amid the recent economic reports whereas USD is forecasted to have mixed outcome of the high impact economic reports to be published. Though certain volatility is expected in the pair throughout the process, definite momentum on NZD side is expected to last for a certain period in the coming days.

Now let us look at the technical view. The price is currently quite volatile and corrective while rejecting the bulls with a daily close below the dynamic level of 20 EMA recently. The price has formed Bullish Divergence for a certain period which is expected to push the price higher towards 0.6720 area before pushing further lower with the trend in the coming days. As the price remains below 0.6850 area, the bearish bias is expected to continue.

SUPPORT: 0.6550, 0.6500, 0.6400

RESISTANCE: 0.6720, 0.6850

BIAS: BEARISH

MOMENTUM: VOLATILE

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Intraday technical levels and trading recommendations for EUR/USD for September 7, 2018

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The EUR/USD pair is currently trapped between the depicted technical levels (1.1750 - 1.1500). Breakout movement should be anticipated.

Bearish breakdown of 1.1520 is needed allow further bearish decline towards 1.1420. Next bearish target would be located around 1.1275.

For the major reversal pattern to be confirmed, a quick bearish breakdown below 1.1420 will be needed to gain enough bearish momentum.

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Fundamental Analysis of NZD/JPY for September 7, 2018

NZD/JPY has been impulsive and non-volatile inside the recent bearish bias which created a double bottom pattern at 72.50 area with a daily close from where the price is expected to climb higher in the coming days. Despite positive economic reports from New Zealand this week, JPY has been quite dominant with the gains.

This week New Zealand Overseas Trade Index report was published with an increase to 0.6% from the previous value of -2.0% which unfortunately did not meet the forecast value of 1.1% and ANZ Commodity Prices report showed an increase to -1.1% from the previous value of -3.3%. Today RBNZ Governor Orr spoke about the long-term planning for the development rather than any short-term temporary solutions and he also outlined the current priorities for the change which includes regulated financial institutions and movement of the money in the economy.

On the JPY side, JPY managed to meet the expectations and also provided better than expected readings that encouraged JPY to push the price lower against NZD in the process. Today Japan's Household Spending report was published with an increase to 0.1% from the previous value of -1.2% which was expected to be at -0.9% and Average Cash Earnings decreased to 1.5% from the previous value of 3.3% which was expected to be at 2.4%.

Meanwhile, JPY has been quite mixed amid the macroeconomic data today which made NZD gain certain momentum in the process which is expected to result in certain bullish pressure in the nearest days. Though JPY is still quite strong fundamentally, a certain counter-move is expected for a while with impulsive NZD gains. On the otjert hand, JPY weakness can be observed in light of the figures from recently published economic reports.

Now let us look at the technical view. The price is currently residing at the edge of 72.50 support area from where it is expected to push higher towards 74.00 and later towards 75.50 area in the coming days. While price formed a Double Bottom pattern in the chart, it also gave birth to a Bullish Regular Divergence which is expected to result to certain bullish pressure in the pair. As the price remains above 0.7250 with a daily close, the bullish bias is expected to continue.

SUPPORT: 72.50, 72.00

RESISTANCE: 74.00, 75.50

BIAS: BEARISH

MOMENTUM: VOLATILE

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NZD/USD Intraday technical levels and trading recommendations for September 7, 2018

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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 (0.6840-0.6700) 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, signs of bullish recovery were manifested around the previous weekly/monthly low around 0.6550. This allowed the recent bullish pullback towards 0.6700 to be demonstrated.

Evident bearish rejection was demonstrated around 0.6700 (broken demand-zone and backside of the broken-trend) where the current bearish decline was initiated.

Currently, the price level of 0.6550 stands as a prominent demand-level which needs to be broken-down before further bearish decline can occur towards 0.6420.

Trade Recommendations: Risky traders can wait for bearish decline below 0.6550 (key-level). This offers a high-risk SELL position. Initial T/P should be placed around 0.6420 (Fibonacci Expansion 100%).

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BITCOIN Analysis for September 7, 2018

Bitcoin has been struggling to create new highs with a target towards $8,000 area, while pushing lower aggressively towards $6,000-6,500 support area in the process. Tthere are certain optimistic statements about Bitcoin having a bright future with new highs as it is being mined impulsively till now. Meanwhile, the price is residing inside the support area of $6,000-6,500 area from where certain volatile and corrective pressures may be observed. However, with a daily close above $7,500 the price is expected to push higher towards $8,000.

SUPPORT: 6000

RESISTANCE: 6500, 7500, 8000

BIAS: BEARISH

MOMENTUM: VOLATILE

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Technical analysis of EUR/USD for September 07, 2018

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Overview:

The EUR/USD pair will continue to rise from the spot of 1.1612. The support is found at the level of 1.1612, which represents the 50% 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 1.1546, a further decline to 1.1500 can occur, which would indicate a bearish market.

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Technical analysis of GBP/USD for September 07, 2018

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Overview:

Pivot: 1.3012.

The GBP/USD pair bullish trend from the support level of 1.2826 on the one-hour chart. Currently, the price is in a bullish channel. This is confirmed by the RSI indicator signaling that we are still in a bullish trending market. As the price is still above the moving average (100), immediate support is seen at 1.2826, which coincides with a major ratio (23.6% of Fibonacci). Consequently, the first support is set at the level of 1.2826. So, the market is likely to show signs of a bullish trend around the spot of 1.2826. In other words, buy orders are recommended above the major support of (1.2826) with the first target at the level of 1.3094. Furthermore, if the trend is able to breakout through the first resistance level of 1.3094. We should see the pair climbing towards the double top (1.3212) to test it. It would also be wise to consider where to place a stop loss; this should be set below the second support of 1.2830.

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Fundamental Analysis of USD/CHF for September 7, 2018

USD/CHF has been quite volatile and corrective at the edge of 0.9700 area from where it has recently pushed lower impulsively as a daily close. USD has been quite impulsive with the recent bearish momentum ahead of the NFP report, whereas USD trading lower as expected might allow CHF to dominate in the process.

Though USD has been quite trading mixed amid the recent economic reports, today's economic reports are going to provide definite insight for further momentum of the currency. Today US Average Hourly Earnings report is going to be published which is expected to decrease to 0.2% from the previous value of 0.3%, Non-Farm Employment Change is expected to increase to 191k from the previous figure of 157k and Unemployment Rate is expected to decrease to 3.8% from the previous value of 3.9%.

On the CHF side, this week has been quite positive with the economic reports including GDP report with the better-than-expected result of 0.7%, though decreasing from the previous value of 1.0% but better than the forecast of 0.5%.CPI report was published with an increase to 0.0% as expected from the previous negative value of -0.2%. Today Unemployment Rate report is going to be published which is expected to be unchanged at 2.6% and Foreign Currency Reserves is expected to show an increase from the previous figure of 750B.

Meanwhile, CHF has been performing quite well amid the recent economic reports which are also reflected in the market through impulsive gains against USD in the process. Ahead of the upcoming macroeconomic reports to be published today on the both currencies of the pair, certain volatility is expected to hit the market. CHF is expected to have the upper hand because of downbeat forecasts for US reports today.

Now let us look at the technical view. The price has been quite impulsive with the bearish gains after breaking below 0.9700 area with a daily close. The bearish trend is still quite non-volatile and expected to push lower towards 0.9550 support area in the coming days. As the price remains below 0.9850 area with a daily close, the bearish bias is expected to continue further.

SUPPORT: 0.9550

RESISTANCE: 0.9700, 0.9850

BIAS: BEARISH

MOMENTUM: IMPULSIVE and NON-VOLATILE

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Ichimoku cloud indicator analysis of Gold for September 7, 2018

Gold price tried to make a breakout yesterday above $1,208 but price got rejected and pushed back towards $1,200. Gold price after making a high last week at $1,214 continues to make lower highs defining a clear downward sloping trend line resistance. For $1,220 to be achieved Gold bulls will need to break above this level which is currently at $1,206.

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Blue line - resistance

Gold price is below the Daily Kumo (cloud). Trend is clearly bearish. Gold price is trying to break the blue resistance trend line and the tenkan-sen (Red line indicator). The current move in Gold looks more like a consolidation before another leg down rather than the start of a new up trend. Even if Gold reaches $1,220 which is our bounce target, bulls need to be very cautious as we might need another final leg down to complete the entire decline from $1,365.

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Ichimoku cloud indicator analysis of EUR/USD for September 7, 2018

EUR/USD is trading near its weekly highs but below the major resistance at 1.1660-1.1690. Bulls will need to break above this level in order to unlock the powers to the upside and towards 1.19-1.121.

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Blue line - resistance (neckline)

EUR/USD is trading below the Ichimoku cloud. Daily trend is bearish as long as price is below 1.1690-1.1710. A possible inverted head and shoulders pattern with a neck line at 1.1710 has been formed. The confluence of resistance indicators between 1.1690-1.1710 confirms the importance of this area. Break it and the EUR/USD will have some room to run to the upside. A rejection at this area will confirm the power of the sellers and will most probably bring EUR/USD below 1.15. I remain bearish as long as we trade below the cloud resistance.

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Trading plan for 07/09/2018

On Friday, the 7th of September, the main event is the NFP-Payrolls data release at 12:30 pm GMT and the other data associated with this event: Unemployment Rate, Average Hourly Earnings and Participation Rate. This is not the only important publication, the global investors are also waiting for, among other things, GDP in the Eurozone and a change in employment and PMI in Canada. Talks on the NAFTA agreement are still ongoing, sources familiar with the topic say that the consensus is unlikely this week.

USD/JPY analysis for 07/09.2018:

In July, the number of employees in the US increased by 157,000 which was a slight disappointment. In August, markets expect stronger figures. The average of forecasts by analysts of the largest financial institutions is 191,000 people. It is believed that some short-term factors affecting the weak July result have already been leveled and the latest data will show an improvement in the situation. I am talking primarily about the Toys R Us bankruptcy, which strongly affected employment.

According to RBC, the employment growth trend oscillates around 200,000 people. It consists of several factors - a good ADP result, a record low value of initial applications for unemployment benefits and a high number of new jobs. Goldman Sachs is slightly less optimistic, believes that NFP will amount to 175,000. people due to the negative impact of seasonal work fall.

In addition to the NFP, the global investors will also learn about the US unemployment rate. Here, analysts expect a slight decline of 0.1 p.p. from 3.9% to 3.8%. As Fedic told FED on Wednesday, the US economy is already in full employment, so not much room for the improvement left.

Let's now take a look at the USD/JPY technical picture at the H4 time frame. The market dropped towards the level of 110.54, which was a technical support for the price. Currently, the price is hovering around this level, but the local low was made already at the level of 110.37. The next support is seen at the level of 110.20, 110.10 and 110.00, so this looks like a pretty solid zone of support. Om the other hand, the nearest technical resistance is seen at the level of 110.68. Please notice the negative and weak momentum indicator reading that support the short-term bearish bias.

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Elliott wave analysis of EUR/NZD for September 7, 2018

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EUR/NZD traded within a very narrow 80 pips band yesterday. We continue to look for more upside towards 1.7820 on the way higher to 1.8369 and beyond.

Short-term support is seen at 1.7603 and again at 1.7538. Ideally support at 1.7603 will be able to protect the downside for the next rally higher towards the sub-target at 1.7820.

R3: 1.7820

R2: 1.7750

R1: 1.7714

Pivot: 1.7679

S1: 1.7647

S2: 1.7603

S3: 1.7538

Trading recommendation:

We are long EUR from 1.7330 with our stop placed at 1.7565. If you are not long EUR yet, then buy near 1.7603 and use the same stop at 1.7565.

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Elliott wave analysis of EUR/JPY for September 7, 2018

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By breaking below support at 128.60 and more complex correction is developing in EUR/JPY. Because of the deep decline in, what is now counted as red wave (w) we switch our count to call for a complete red wave (2) with the test of 128.30, but the break below 128.60 told us that the correction in red wave (2) still was ongoing and should move closer to the 127.44 - 127.60 area, with the possibility of a dip even lower to 126.96 before completing red wave (2).

From 127.60 or upon a break above short-term important resistance at 129.98 and new impulsive rally will be expected in red wave (3) towards 137.50, where red wave (3) will be a 161.8% extension of red wave (1).

R3: 129.98

R2: 129.27

R1: 128.98

Pivot: 128.68

S1: 128.19

S2: 127.59

S3: 126.96

Trading recommendation: Our stop at 128.50 was hit for a 60 pip loss. We will re-buy EUR at 127.75 or upon a break above 129.98.

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BITCOIN Analysis for September 6, 2018

Bitcoin has been quite impulsive inside the bearish bias recently which lead the price towards the support area of $6,000-6,500 from where certain bullish momentum is expected in the process. There has been certain correction and indecision in Bitcoin which has lead to the drastic fall in the price which resulted in a downward move by $1,000 in 48 hours, which engulfed a series of bullish daily candles in the process. Meanwhile, price remains above $6,000-6,500 area with a daily close, whereas the Chikou Span also got support from the Price Line. So, the price is expected to push higher towards $7,500 and later towards $8,000 area in the coming days.

SUPPORT: 6000, 6500

RESISTANCE: 7500, 8000, 10000

BIAS: BULLISH

MOMENTUM: VOLATILE

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Global macro overview for 07/09/2018

The weekly number of applications for unemployment benefits in the United States fell to the lowest level in 49 years. It does not mean, however, that there is a boom in the US labor market. Only 203,000 applications for benefits filled the Americans in the last week of August - reported the Department of Labor (this data seasonally adjusted). Even the oldest statisticians cannot remember such a low reading. For the last time, such a situation occurred in December 1969. Because the weekly statistics of newly registered unemployed are quite variable, economists like to look at the 4-week average. And this dropped to 209 500 and it was also at its lowest level since December 1969. It is worth adding a correction to the population here. Half a century ago, the US was inhabited by about 202 million people. Currently, the population of the United States is estimated at approx. 328 million.

Based on partial data, economists expect a solid Friday NFP report. The market consensus assumes that in August, 190,000 came in non-agricultural sectors jobs. Data for July were disappointing (only + 1577,000 against expected 190,000). Statistics for August will be traditionally known on the first Friday of the month at 12.30 pm GMT time (today).

Meanwhile, on Thursday, the ADP report disappointed the change in employment only in the private sector. ADP data showed an increase in the number of full-time jobs by 163,000 against forecasts of 190,000 and 217,000 (after revision) recorded in July.

It is worth remembering, however, that the statistics of the unemployed and employed do not say everything about the condition of the labor market. You can even say that they mask his real condition. According to the latest available NFP data (ie for July) in the United States the most frequently reported unemployment rate (the so-called U-3 aggregate) amounted to only 3.9%. But that's only half the truth, because if you add people discouraged from looking for a job who can not find full-time employment or are loosely connected with the labor market, the unemployment rate in the US would be 7.5% (the so-called U-6 aggregate).

Let's now take a look at the EUR/USD technical picture at the H4 time frame before the US labor data are published. The market is now back in the black channel after a bounce from the technical support at the level of 1.1529. Nevertheless, the technical resistance at the level of 1.1655 is still too strong for bulls and the price is now trading below it, just hovering around the level of 1.1627. Until the NFP-Payrolls data is published, the market will be trading inside of this range and then in a case of a better than expected data, the EUR/USD will likely spike up (risk on) and in a case of a worse than expected data, the EUR/USD rate will likely spike down (sell the USD). Please keep an eye on the mentioned levels for an erratic market behaviour during the data release time (12:30 pm GMT).

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Global macro overview for 07/09/2018

The Canadian Dollar (CAD) did not find support in yesterday's statement of the Bank of Canada. In line with expectations, the bank kept the overnight interest rate unchanged at the level of 1.50%, but also refrained from suggesting whether a hike could be expected in October. Some have picked it up as a dovish signal, but the global investors should not be surprised by BoC, for whom the final of the NAFTA negotiations will mean much. And here the issue remains open, even if yesterday's comments from President Trump and Minister of Foreign Affairs of Canada Freeland sounded optimistic and suggested the end of negotiations by the end of the week. As a reminder, in the middle of last week we also heard that the talks are to end on (last) Friday. CAD may include a rally of concession if there is an agreement, but no one dares to jump into the trade without the details ready.

Let's now take a look at the USD/CAD technical picture at the H4 time frame. The market dropped towards the level of 1.3113 and bounced slightly. The momentum is below its fifty level and the market conditions are clearly overbought, so the downside correction might extend lower. In that case, the next target for bears would be at the level of 1.3102 and 1.3089, but if the falls will extend, the other technical support is seen at the level of 1.3000.

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Bitcoin analysis for 07/09/2018

In the last 24 hours, the entire market has decreased many coins have lost at least 10%, and some twice as much. Even stablecoins did not save themselves from falls. The crypto community is trying to explain this phenomenon.

There are several major theories in the community: the first is that the bust has occurred because of the news that Goldman Sachs is abandoning crypto plans. Second, that Bitcoin was sold at dumped prices by several cryptocurrencies, in particular, BitMEX. The third and most common is that it is a simple market manipulation. Others wonder if this could be a bull-trap or a false signal that the downward trend in asset prices has reversed and is going up when in reality the price will continue to fall. Manipulation theory has come up with some interesting ideas: Twitter user @bechokoy_betts says "that's why decentralized markets do not work in a way." Others argue that volatility has nothing to do with decentralization and that it will eliminate any possibility of approving a bitcoin ETF fund. The crypto community is somewhat concerned about the upcoming decision regarding Bitcoin ETFs, and here the Goldman Sachs decision theory appears: many believe that a steep decline in the market is a reaction to this decision and that Wall Street is giving up the crypto. CNBC television talked to experts about the next Bitcoin catalyst and whether the Bitcoin ETF still has a chance to exist. The biggest problem for Goldman is that it would be difficult for them to obtain institutional investors in integration with cryptography. The hopes of retail investors for greater institutional presence were motivated by Goldman Sachs plans. If those plans are now abandoned this is a negative sign when it comes to liquidity on markets. The second theory on the subject of crypto that Bitcoin is being dumped is one that connects to the previous two: no matter which causes initially lowered prices, dumping was probably due to panicky sales, the community believes.

Regardless of what the caused the market sell-off, crypto enthusiasts would like to know when the falls will end and whether better days can be expected. So, let's take a look at the Bitcoin technical picture at the H4 time frame. The market fell from the level of $7,376 to the level of $6,216 and currently is in the internal corrective cycle. The nearest target for the correction is seen at the level of $6,514, which will act as a resistance. In a case of n extension of the correction, the next technical resistance is seen at the level of $6,752. On the other hand, the next technical supports are located at: $6,179, $6,083 and $6,034. The key technical supports is still seen at the swing low at the level of $5,848.

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AUD/JPY Testing Support, Prepare For Bounce

AUD/JPY is approaching its support at 79.18 (61.8% Fibonacci extension x2, 61.8% Fibonacci retracement, horizontal overlap support) where the price is expected to bounce up to its resistance at 80.68 (61.8% Fibonacci retracement, horizontal pullback resistance).

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

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

Buy above 79.18. Stop loss at 78.45. Take profit at 80.68.

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EUR/JPY Testing Support, Prepare For A Bounce

EUR/JPY is approaching its support at 127.94 (61.8% Fibonacci extension, 50% Fibonacci retracement, horizontal pullback support) where the price is expected to bounce up to its resistance at 129.69 (61.8% Fibonacci retracement, horizontal swing high resistance).

Stochastic (55, 5, 3) is approaching its support at 2% where a corresponding bounce is expected.

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

Buy above 127.94. Stop loss at 127.01. Take profit at 129.69.

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