Intraday technical levels and trading recommendations for GBP/USD for October 26, 2018

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On September 13, the depicted daily downtrend line which came to meet the pair around 1.3025-1.3090 failed to offer enough bearish pressure on the pair. Since then, the GBP/USD pair has been demonstrating a successful bullish breakout so far.

On September 21, the GBP/USD failed to demonstrate sufficient bullish momentum above 1.3296. The short-term outlook turned to become bearish within the depicted H4 bearish channel to test the backside of the broken uptrend.

Bearish persistence below the price level of 1.2970 (50% Fibo level) enhanced further bearish decline towards 1.2790 where the lower limit of the movement channel and 79.8% Fibonacci Level are located.

On H4 chart, the GBP/USD pair looks oversold around the current price levels (1.2800). BUY entries are preferred at the current situation.

As for the bullish breakout scenario to remain valid, bullish persistence above 1.2790 and an early breakout t above 1.3000 (50% Fibo level) are mandatory to maintain sufficient bullish momentum towards 1.3200.

Conservative traders can have a valid BUY entry around the current price levels 1.2790-1.2800. S/L should be located below 1.2730. T/P to be located around 1.2900 and 1.3000.

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Gold rises in price on weak reporting by American companies

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On Friday, November 26, the gold rate against the US dollar rose to a maximum since mid-July after the publication of weak quarterly reports of US companies this week, which had a strong negative pressure on the stock markets of the United States, Asia, and Europe.

During yesterday's trading, the index of the largest American companies S & P 500 fell to 2.651, the lowest level in the last six months.

At the same time, data on US GDP growth for the third quarter of this year turned out to be better than analysts' forecasts, which may again force investors to pay attention to the US dollar, which was abandoned in favor of defensive assets.

The weak financial reports of large corporations Alphabet and Amazon have caused a wave of sales of shares of companies, but today, the value of the securities has returned to its original values and gives signals for further growth.

Uncertainty in US stock markets may further increase the demand for precious metals.

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GBP / USD: plan for the American session on October 26. Pound goes to new lows

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

Pound buyers failed to get above the resistance level of 1.2829, which I paid attention to in the morning forecast, which led to further selling of the pound. Now, a serious divergence is forming on the MACD indicator, so it is possible to consider purchases after forming a false breakdown at the support level of 1.2782, but it is important to wait for the release of the report on the American economy, which will set the direction for the pair in the afternoon. In the case of a break of 1.2782, it is best to return to long positions to rebound from the lows of 1.2733 and 1.2697.

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

Bears formed a false breakdown in the resistance area of 1.2829, which led to the further sale of the pound. The breakthrough of support at 1.2782, amid good statistics on US GDP, will lead to a new downward wave in GBP / USD with an update of the lows of 1.2733 and 1.2697, where I recommend fixing the profits. In the case of growth above 1.2829 in the second half of the day, it is possible to count on short positions after updating the larger resistance of 1.2866. However, before selling a pound below 1.2782, make sure that the divergence on the MACD indicator is broken.

Indicator signals:

Moving Averages

Trade is conducted under the 30- and 50-day average, which indicates the formation of a downtrend on the pound.

Bollinger bands

The upper limit of the Bollinger Bands indicator around 1.2829 limits the upward potential, and the breakdown of the lower border around 1.2782 will increase the pressure on the pound.

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Description of indicators

  • MA (moving average) 50 days - yellow
  • MA (moving average) 30 days - green
  • MACD: fast EMA 12, slow EMA 26, SMA 9
  • Bollinger Bands 20
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EUR / USD: plan for the US session on October 26. Data on the US economy may limit the fall of the euro

To open long positions on EUR / USD, you need:

Euro buyers failed to return to the important resistance level of 1.1387, which I paid attention to in the morning review, which led to a further sale. Currently, the emphasis is on support level of 1.1337. The formation of a false breakdown in this range, after the release of data on the US economy, with confirmation of the divergence on the MACD indicator, will lead to an increase in EUR / USD in the second half of the day and return the pair to the resistance area of 1.1387, where I recommend fixing the profits. In the case of the euro falling below the support level of 1.1337, it is best to return to long positions from new lows to rebound around 1.1300 and 1.1251.

To open short positions on EUR / USD, you need:

Sellers formed a false breakdown in the morning resistance area of 1.1387, which led to a further decline in the euro. At the moment, the target is the support area of 1.1337, the breakdown of which will open a direct road to the August lows area to the levels of 1.1300 and 1.1251, where I recommend fixing the profits. In the case of weak data on the growth of the US economy, and the formation of a false breakdown at 1.1337, the euro is best sold to rebound from resistance of 1.1387 and 1.1429.

Indicator signals:

Moving Averages

Trade is conducted under the 30- and 50-day average, which indicates the formation of a downward trend in the euro.

Bollinger bands

The lower limit of the Bollinger Bands indicator is located in the area of 1.1337 and can support the euro. Its breakdown will lead to a larger sale of EUR / USD. The upper limit around 1.1387 limits the upside potential of the euro.

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Description of indicators

  • MA (moving average) 50 days - yellow
  • MA (moving average) 30 days - green
  • MACD: fast EMA 12, slow EMA 26, SMA 9
  • Bollinger Bands 20
The material has been provided by InstaForex Company - www.instaforex.com

The UK refused to issue tokens secured by gold

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On Friday, October 26, it became known that the Royal Mint of Great Britain would not issue tokens secured with gold. Previously, it was assumed that this will happen in partnership with the Chicago Mercantile Exchange (CME).

The initiative of the Royal Mint did not endorse the British government, which is cautious about any innovations with digital assets. Earlier, in 2016, representatives of the Royal Mint planned to bring Royal Mint Gold (RMG) gold-backed tokens to the Chicago Mercantile Exchange. In this case, the total supply of tokens would be $ 1 billion.

The launch of RMG tokens was scheduled for fall 2017, but CME suddenly refused to cooperate. As a result, the project was left without a trading platform. The final collapse of the project occurred after the refusal of the Ministry of Finance of the United Kingdom, who considered that this venture was very risky. According to the developers, the RMG token had to radically change the view of market participants about trading and making deals with precious metals.

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AUD / USD. Devaluation of the yuan pulls the Aussie to the bottom

During the Asian session, the Australian dollar again tested the 70th figure after an unsuccessful attempt in early October. However, today "Aussie" failed to enter the 69th figure, but the general mood for the pair remains bearish. The Aussie came under strong pressure after a decline in the commodity market and an unexpected weakening of the yuan, which paired up with the dollar again began to approach the historical highs, trading now in the 6.96 area.

China is the main trading partner of Australia, so the problems of the Chinese economy are automatically reflected in the quotations of the pair AUD / USD. The latest releases indicate a slowdown in the key economic indicators of the Middle Kingdom. Thus, China's GDP in the third quarter slowed to 6.7%, returning to the 2016 level. The growth rate of industrial production sank more strongly. The release turned out to be worse than expected, as the figure dropped to the lows of 2009 (5.8%). For the first time in 9 years, the indicator fell below the 6% mark.

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The slowdown in economic growth in general, and industrial production in particular, forces Beijing to ease monetary policy conditions and devalue the national currency. The People's Bank of China recently announced that mandatory reserve requirements for banks will be reduced. In addition, the yuan exchange rate paired with the dollar "slowly but surely" creeps up, approaching the key mark of 7.00.

The devaluation of the yuan is the anger of the White House, although literally at the end of last week, the Premier of the State Council of China assured that Beijing would not resort to a competitive devaluation of the national currency. It is difficult to say how his words correspond to reality. On the one hand, some American politicians declare that the PRC deliberately reduces the price of the national currency in order to level (as far as possible) the effect of new duties. On the other hand, Washington represented by the Ministry of Finance did not brand China with the status of a "currency manipulator" in the relevant report. According to Steven Mnuchin, the devaluation of the Chinese currency is also explained by objective factors, including a slowdown in the country's economy. As a result, the Ministry of Finance left the PRC in the list of those countries that require "most attention" in the context of monitoring, but did not aggravate the situation.

However, this fact does not solve the problem of the fall of the yuan. A further devaluation of the Chinese currency may lead to an outflow of capital from the country, with all the ensuing consequences. The Australian dollar is forced to respond to current events not only because of its strong dependence on the Chinese economy, but also against the background of flight from risky assets.

Another factor that puts pressure on the Aussie is the decline in copper prices. The cost of a ton of this raw material dropped to a six-month minimum. The cheaper yuan rendered a "disservice" to the commodity market, while copper reacts also to a decline in stock markets. If yesterday's trading on the US stock exchanges ended with growth, there was mainly negative dynamics on trading in Asia. Predictably declined Chinese indices, which lost about one percent, while the Japanese Nikkei 225 fell by 0.4%. Traders are concerned about a possible slowdown in the global economy, as warned by IMF economists and other specialists.

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In particular, last week, the results of a survey of more than 500 economists were published. Most of whom predicted a slowdown in the growth of the global economy next year. Whereas at the beginning of this year, almost all of them had the opposite opinion. The escalation of the trade war between the United States and China, as well as the growth in the yield of government bonds, changed the common position.

Thus, the Australian dollar is under pressure from a whole complex of fundamental factors that are somehow connected with China. Therefore, any more or less large-scale growth of AUD / USD should be considered as a reason for opening long positions. Even in the period of the weakening of the American currency, "Aussie" in recent months did not rise above the 72nd figure, then showing a rather rapid decline.

Technically, the picture is fully consistent with the foundation. On the daily chart, the price is between the middle and lower lines of the Bollinger Bands indicator (which in turn is in the extended channel) and under the Kumo cloud.

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In addition, the Ichimoku Kinko Hyo indicator has formed a "Parade of Lines" bearish signal, and the MACD oscillator shows a strong oversold condition. All of the above clearly indicates the priority of the southern movement with a price target of 0.7005, this is the bottom line of the Bollinger Bands indicator. In turn, the nearest resistance level (where you can place a stop) is the mark of 0.7090 (this is the Tenkan-sen line), and then the mark of 0.7105 (this is the middle line of the Bollinger Bands indicator).

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China refused to buy Iranian oil on the eve of US sanctions

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According to The Wall Street Journal, major Chinese oil companies such as China National Petroleum Corp. (CNPC) and China Petrochemical Corp. will not buy Iranian oil next month.

Recall, usually the Middle Kingdom imports about 600,000 barrels of Iranian oil per day. However, this month, the Chinese Bank of Kunlun, which specializes in conducting operations between China and Iran, has told Iranian oil producers that operations with them will be suspended. All transactions will be completed by November 4, emphasize in the financial institution. Previously, all payments for oil transactions passed through the Bank of Kunlun between Beijing and Tehran.

The position of the White House on this issue turned out to be somewhat detached. Washington stated that the issue of stopping oil purchases from Iran was discussed with the authorities of the PRC. Recall that in May this year, US President Donald Trump announced Washington's withdrawal from the Joint Comprehensive Action Plan (DFID). This transaction was concluded in 2015. It limited Iran's nuclear development in exchange for the lifting of sanctions from the UN Security Council, the United States, and the European Union.

The American leader promised to introduce a new tranche of restrictions against Tehran. At the same time, the US State Department announced its intention to nullify Iran's revenues from the export of black gold. It is expected that the next sanctions will be renewed on November 4, 2018.

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Experts: Do not rush to sell gold

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The last two quarters were very hard for gold due to the strengthening of the US dollar position, the growth of the stock market and the increase in the real yield of government bonds.

This week, the value of gold reached its maximum for the first time in three months amid turbulence in global stock markets. The precious metal was once again considered by investors as a defensive asset.

"The budget crisis in Italy, the situation around Saudi Arabia, as well as the growing trade wars and increasing customs duties, put pressure on the stock market, while gold is supported for growth," analysts said.

"In addition, over the past few weeks, it was possible to observe a positive correlation between the dollar index and the price of the precious metal. This indicates that the gold exchange rate has become more stable to the strengthening of the American currency. If the dollar index starts to decline, it will further increase the value of gold," they added.

According to them, geopolitical tensions in the world will also act as a supporting factor for the price of precious metals, as investors need risk-free assets in order to survive unstable times.

"Now is not the best time to sell gold. On the contrary, investors should increase the share of precious metals in their portfolio and keep in it from 5% to 10% of their own assets. Gold is insurance in case the correction in the stock markets drags on," experts say.

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Overview of the currency market on October 26, 2018

The dollar continues its steady ascent, and yesterday, it was helped not only by statistics, which turned out to be better than forecasts, but also by the results of the meeting of the European Central Bank. First, the statistics, as orders for durable goods did not decrease by 0.9%, as expected, but increased by 0.8%, which is somewhat encouraging, as it allows us to count on an increase in consumer activity, and with it inflation. So, fears that the Fed may revise the rate of increase in the refinancing rate may not be justified. In turn, the ECB left the parameters of monetary policy unchanged, as expected, and that did not affect the foreign exchange market. The press conference of Mario Draghi severely knocked down the position of the single European currency, and after it the pound. The head of the ECB referred to the multiple risks, including the debt problems of the eurozone countries. Although he did not argue that the curtailment of the quantitative easing program was again postponed. The reservation about debt problems clearly indicates that the ECB will once again extend the program of quantitative easing.

As always, the ruble looked apart, which opened with a strong decline, but then began to skyrocket. The initial decline in the ruble was caused by the completion of the tax period, and, having lost support, the ruble began to fall in price due to fears due to external factors. However, already in the second half of the day, information was received that the United States did not intend to impose new sanctions, as they intend to evaluate the effect already on the existing ones.

Today, the first estimate of US GDP for the third quarter will be published, and there are good reasons to believe that the economic growth rate has slowed down drastically, which will have an extremely negative impact on the dollar. Recently, it has strengthened so much that the market needs any reason for correction, and the fact of a slowdown in economic growth is excellent for this. In Europe, no data is released, but Mario Draghi will speak. Given the place and reason, he will talk about how much good the single currency has brought to Europe. Perhaps, there will be some hints at statements by individual politicians that some countries would be worth giving up the single European currency. But not more. So do not wait for any reaction of the market to the speech of the head of the ECB. Given the negative expectations for US statistics, it is worth waiting for the growth of the single European currency to 1.1425.

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The pound will follow the dynamics of the single currency, and it is worth waiting for its growth to 1.2850.

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On the one hand, the optimism caused by the US intention to delay the expansion of sanctions against Russia has already been developed by the market, but there are no real reasons for strengthening the ruble. Nevertheless, today, a meeting of the Board of the Bank of Russia on monetary policy will take place, and, most likely, the key rate will remain unchanged. Considering that quite recently, Ksenia Yudaeva hinted at the possibility of reducing the key rate, market participants are somewhat excited. So, maintaining the parameters of monetary policy will give investors confidence that they will support the ruble. Thus, the dollar will remain in the area of 65 rubles.

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Wave analysis of GBP / USD for October 26. The downward movement is preserved

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Wave counting analysis:

During the October 25 trading session, the GBP / USD currency pair lost another 65 basis points and continued to build the proposed wave c within the three waves downward structure. A successful attempt to break through the level of 127.2% according to Fibonacci suggests that the pair is ready for a further decline with targets located near the 161.8% level. The news background remains on the side of the US dollar, so the wave c can take a very long look.

The objectives for the option with purchases:

1.3258 - 0.0% according to Fibonacci

1.3300 - 161.8% of Fibonacci

The objectives for the option with sales:

1.2718 - 161.8% of Fibonacci

1.2638 - 261.8% of Fibonacci (senior grid)

General conclusions and trading recommendations:

The currency pair GBP / USD keeps the downward mood. As before, the new sales of the pair are now quite risky, despite the fact that the wave c can continue its construction. However, already open sales can be kept open with targets located near the estimated mark of 1.2718, which corresponds to 161.8% of Fibonacci. An unsuccessful attempt to break through this mark may lead to the completion of the construction of the downward wave.

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Wave analysis of EUR / USD for October 26. Work option continues to be valid

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Wave counting analysis:

In the course of trading on Thursday, the EUR / USD currency pair lost another 20 basis points more and thus remained within the framework of the construction of the supposed wave 3, c. If this is indeed the case, the decline in quotations will continue with targets that are near the level of 127.2% on the Fibonacci grid, built according to the size of the estimated wave b. An unsuccessful attempt to break through the mark of 127.2% can lead to a departure of quotes from the lows reached and even to the completion of the construction of wave 3, c.

The objectives for the option with sales:

1.1327 - 127.2% of Fibonacci

1.1194 - 161.8% of Fibonacci

The objectives for the option with purchases:

1.1522 - 76.4% of Fibonacci

General conclusions and trading recommendations:

The currency pair continues to build wave 3, c. Thus, now I recommend to continue selling the pair with targets located near the estimated mark of 1.1327, which equates to 127.2% of Fibonacci. Wave c can take a fairly long view, but an unsuccessful attempt to break through the mark of 1.1327 can lead to the beginning of wave 4 construction.

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Trading Plan 10/26/2018

Trading Plan 10/26/2018

The ECB did not provide any support for the euro.

On Thursday, the most important event of the week took place, the ECB's decision on interest rates. As expected, the ECB did not make any changes to the current policy, pumping the market with liquidity in the reduced to 17 billion euros per month will last until December. Everyone was waiting for a change in Draghi's speech but the changes were not in favor of the euro. Unlike the last meeting, the question of starting a rate hike, which was supposed to start in September 2019, will be silent.

As a result, the EUR / USD rate broke down the key support of 1.1430 and fixed below 1.1400, a technically strong signal down.

The pound also broke through important support of 1.2920.

The franc ahead up (up on USD / CHF) is an important level of 1.0070.

Today, an important report on the US economy, the first reading of GDP for the 3rd quarter at 13.30 Moscow time.

Pound: we hold sales from 1.2920, but stop at 1.2920.

Alternative: buy from 1.3260.

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GBP / USD. October 26th. The trading system "Regression Channels". Only technical necessity of correction can stop the fall.

4-hour timeframe

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Technical details:

The senior linear regression channel: direction - up.

The younger linear regression channel: direction - down.

Moving average (20; smoothed) - down.

CCI: -129.4734

The currency pair GBP / USD yesterday during the day collapsed with a new force. The ECB meeting and the comments of Mario Draghi to the UK and the pound did not apply. Nevertheless, at the same time as the euro, the British pound went to the next downward rally. That is why we believe that the reason for the fall of the euro was not in the reports of the ECB, and not in Italy. The main reason, which continues to put pressure on the euro and the pound, remains Brexit. With a pound sterling, everything is clear. The whole range of political and economic problems, the possible resignation of Theresa May and the lack of progress in the Brexit negotiations do not give traders any reason to buy British currency. Thus, it remains to be content with only corrections. The most interesting thing is just ahead. First, it is unclear how the whole story will end with the resignation of Theresa May. If this happens, the pound may even grow on the expectations that the next prime minister will be more productive in negotiations with the EU. Secondly, one way or another, the Kingdom will leave the EU on March 29, 2019, with or without a "deal". Even with a "deal" there will be economic consequences of a negative nature, and without a "deal" everything will be even worse. Thus, it is already possible to assume that if this whole situation does not change drastically in the coming months, then the prospects for the pound sterling for the next year will not be very bright.

Nearest support levels:

S1 - 1,2817

S2 - 1.2756

S3 - 1.2695

Nearest resistance levels:

R1 - 1.2878

R2 - 1.2939

R3 - 1.3000

Trading recommendations:

The currency pair GBP / USD has completed the level of 1.2817, from which it can rebound and begin a correction. If overcoming the target occurs, the short positions will remain relevant for the purpose of 1.2756.

Long positions can be considered after the bulls overcome the moving averages, which is unlikely to happen in the near future, as the price is far enough away from it. Tool corrections are now too weak, they are not recommended to work out.

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

Explanations for illustrations:

The senior linear regression channel is the blue lines of the unidirectional movement.

The junior linear channel is the purple lines of unidirectional movement.

CCI is the blue line in the indicator regression window.

The moving average (20; smoothed) is the blue line on the price chart.

Murray levels - multi-colored horizontal stripes.

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

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

EUR / USD. October 26th. The trading system "Regression Channels". ECB meeting: traders have not received any positive signals

4-hour timeframe

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Technical details:

The senior linear regression channel: direction - sideways.

The younger linear regression channel: direction - down.

Moving average (20; smoothed) - down.

CCI: -117.8720

The EUR / USD instrument on Friday, October 26th, continues its downward movement after the minimal upward correction. As we expected, no important decisions and statements were made during the announcement of the results of the ECB meeting. Mario Draghi is already familiar to everyone and noted that economic growth remains stable, and risks balanced. Salaries are rising, and inflation, despite a decline in the previous month, should still remain near the target level. He also touched on the topics of the budget problem with Italy. However, in our opinion, this was not the reason for the next fall of the European currency. Despite the fact that the problem with the budget of Italy remains, it can hardly have such a devastating effect on the euro. Moreover, both the euro and the pound sterling are falling, and the fall did not start because of problems with Italy. Thus, we believe that traders simply did not receive any positive signal from the EU regulator and, accordingly, did not change their trading strategy, which means selling the euro and buying the dollar. Even a report on durable goods orders in the United States could have a greater impact on the pair than the ECB report. This figure unexpectedly turned out to be significantly higher than the forecast value (+ 0.8% versus -0.9%) and, most likely, also caused another strengthening of the American currency.

Nearest support levels:

S1 - 1.1353

S2 - 1,1292

S3 - 1.1230

Nearest resistance levels:

R1 - 1,1414

R2 - 1.1475

R3 - 1.1536

Trading recommendations:

The EUR / USD currency pair continues to move down. If the bears manage to overcome the level of 1.1353, which has already been almost worked out, then short positions can be increased with the goal of 1.1292.

Buy positions will become relevant no earlier than price fixing above the moving average line with the first target of 1.1536. However, this requires a change in market sentiment, and there are still no fundamental reasons for this.

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

Explanations for illustrations:

The senior linear regression channel is the blue lines of the unidirectional movement.

The junior linear regression channel is the purple lines of the unidirectional movement.

CCI - blue line in the indicator window.

The moving average (20; smoothed) is the blue line on the price chart.

Murray levels - multi-colored horizontal stripes.

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

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

EUR / USD: plan for the European session on October 26. Take your time selling euros

To open long positions on EUR / USD, you need:

The euro has come a long way down this week, and today, it's best to look for long positions in the hope of a correction after the major support of 1.1337 has been updated, where profit taking on short positions may occur. The main task of the buyers of EUR / USD will be the return and consolidation above the resistance level of 1.1387, growth from which may continue after the release of a weak report on US GDP growth in the 3rd quarter of this year. In this case, we can expect the update of the resistance level of 1.1429, where I recommend fixing the profit. In the case of a decline in the euro under the level of 1.1337, you can immediately buy to rebound from the August minimum of this year in the region of 1.1300.

To open short positions on EUR / USD, you need:

Sellers need to form a false breakdown at the resistance level of 1.1387, which will be a signal to open short positions in the euro in order to update the lows of this month in the support area of 1.1337. The breakthrough of this range will also increase the pressure on the euro, which will lead to a test of August lows of this year around 1.1300, where I recommend fixing the profits. In the case of growth above the resistance level of 1.1387, after the release of a weak report on the growth of the American economy, short positions can be returned to the rebound from the level of 1.1429.

Indicator signals:

Moving Averages

Trade is conducted under the 30- and 50-day average, which indicates the bearish nature of the market.

Bollinger bands

The upper limit of the Bollinger Bands indicator in the area of 1.1410 limits the upward potential, but the lower limit in the area of 1.1344 may prevent further downward EUR / USD.

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Description of indicators

  • MA (moving average) 50 days - yellow
  • MA (moving average) 30 days - green
  • MACD: fast EMA 12, slow EMA 26, SMA 9
  • Bollinger Bands 20
The material has been provided by InstaForex Company - www.instaforex.com

Analysis of the divergence of EUR / USD on October 26. Bullish divergence can help the euro a little

4h

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On the 4-hour chart, the EUR / USD quotes rebounded from the correction level of 76.4% - 1.1422 and resumed the process of falling in the direction of the correctional level of 100.0% - 1.1303. On October 26, a bullish divergence is on the CCI indicator. Its education will allow traders to expect a turn in favor of the European currency and a return to the Fibo level of 76.4%. Reversal of quotes from the correction level of 100.0% will similarly work in favor of the beginning of the pair's growth.

The Fibo grid was built on extremes from August 15, 2018, and September 24, 2018.

Daily

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On the 24-hour chart, the pair continues to fall in the direction of the correction level of 127.2% - 1.1285. The quotations from the Fibo level of 127.2% will make it possible to count on a reversal in favor of the EU currency and some growth in the direction of the correction level of 100.0% - 1.1553. Fixing the pair below the Fibo level of 127.2% will increase the chances of continuing falling towards the next correctional level of 161.8% - 1.0941.

The Fib net is built on extremes from November 7, 2017, and February 16, 2018.

Recommendations to traders:

You can make purchases of the EUR / USD currency pair with a target of 1.1422 and a Stop Loss order below the Fibo level of 100.0% if the pair bounces the correction level of 1.1424 or if a bullish divergence with Stop Loss is formed under the last low of this divergence.

The EUR / USD currency pair can be sold now with a target of 1.1303 with a Stop Loss order above the Fibo level of 76.4%, as the pair closed below the correction level of 1.1424 and keep them until a bullish divergence is formed.

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

Analysis of GBP / USD Divergences for October 26th. The pound has a chance for a short break.

4h

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On the 4-hour chart, the GBP / USD currency pair quotes were first consolidated below the correction level of 61.8% - 1.2905, and then rebound from it. As a result, the pair completed a fall to the Fibo level of 76.4% - 1.2813. On October 26, a bullish divergence emerged near the CCI indicator, which allows us to expect a reversal in favor of the British currency and some growth towards the correctional level of 61.8%. Rebounding quotes from the Fibo level of 76.4% will similarly work in favor of the beginning of the pair's growth Fixing the rate under the Fibo level of 76.4% will increase the chances for a further fall in the direction of the correction level of 100.0% - 1.2662.

The Fibo grid was built according to extremums from August 15, 2018, and September 20, 2018.

1h

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On the hourly chart, the pair fixed under the correctional level of 127.2% - 1.2833. Thus, the process of falling can be continued in the direction of the next correctional level of 161.8% - 1.2718. Bullish divergence in the MACD indicator allows you to count on some growth of the pair. After its formation, enough time had passed, and the pair could not even close above the Fibo level of 127.2%. Fixing quotations above the correction level of 127.2% will still work in favor of the euro currency and the start of growth in the direction of the correction level of 100.0% - 1.2924.

The Fibo grid was built on extremes from October 4, 2018, and October 12, 2018.

Recommendations to traders:

Purchases of the GBP / USD currency pair can be made with a target of 1.2924 and a Stop Loss order under the correction level of 127.2% if the pair closes above 1.2833 (hourly chart).

Selling of the currency pair GBP / USD will be possible with the target at 1.2718 and a Stop Loss order above the level of 127.2% if the pair closes under the last low divergence (hourly chart).

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The fall in US GDP growth will be a negative signal to the markets

At the end of Thursday, the US dollar received significant support against major currencies. Moreover, even the safe haven currency decreased in relation to the "American".

Strengthening the dollar continues to be systematic. We have repeatedly pointed out earlier that there are too many objective reasons that support investor interest in the US currency. First of all, the Fed's persistent position in the desire to actively raise interest rates, which is signaled more clearly or less prominently by representatives of the American regulator, relates to them. The second reason is the trade war between the United States and China, which is becoming "heavier" and the growth of geopolitical tensions. And, of course, against this background, it is difficult for the world's largest central banks to decide on the transition to a cycle of raising interest rates. In this case, the Fed is the only global central bank that has been following the normalization of monetary policy for years.

The markets are increasingly growing fears that the risks of a slowdown in the global economy will also affect the United States, which in the future, paired with the process of increasing borrowing costs, will lead to a cooling of the economy, and this will be a strong reason for a downward reversal of US stock indexes increase in the yield of local government treasury bonds. Naturally, in this case, in our opinion, the dollar will be in demand both as an asset with high returns and as a tool for ensuring risk in the face of an impending new crisis.

Today, the attention of market players will be drawn to the publication of data on US GDP for the third quarter. According to the presented forecasts, the value of the indicator may drop significantly when it is revised to 3.3% from 4.2%, the indicator deflator can drop to 2.1% from 3.3%. If the data confirms the expectations, then it can strike the US stock indexes, and oddly enough, the dollar, on the contrary, can be supported precisely because of its function of the shelter currency.

Forecast of the day:

The currency pair EUR / USD is trading below the level of 1.1380. It is under pressure from the outcome of the ECB meeting, which showed that the bank will be extremely cautious in its actions in monetary policy, which indicates a tendency towards its "soft" variant. Pressure on the pair is also exerted by the strengthening of the dollar's position as a safe haven currency. Given this, we believe that the pair may continue to decline to 1.1380, if it holds below the level of 1.1300.

The currency pair AUD / USD is trading below the level of 0.7050. It still remains under pressure in the wake of the US-Chinese trade war factor, with which Australia has close trade relations. We consider it possible to sell the pair on its local increase from 0.7050 with a probable target of 0.6965.

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Forecast for GBP / USD on October 26, 2018

GBP / USD

The British pound on Thursday fell by 63 points, entrenched under the nested trend line of the downward price channel, and now, its goal is 1.2622, supported by the subsequent line of the price channel. To push the pound to a further decline today, data on US GDP for the 3rd quarter may be, the forecast of 3.3% is a very optimistic figure. On the four-hour chart, the leading indicator Marlin does not give reversal signs. We are waiting for the continuation of decline.

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The forecast for AUD / USD on October 26, 2018

AUD / USD

On Thursday, the Australian dollar against the common market ended the day with an increase, and even closed on the daily chart above the trend line of the price channel. Growth was halted by a four-hour balance line. This morning, the price could not stand this far from the right moment of growth and sharply collapsed down, breaking the support of the lows of the first decade of October.

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Apparently, the fall is only gaining momentum. Oil and other commodities are falling. In the evening, an optimistic estimate of US GDP for the 3rd quarter is expected, with a forecast of 3.3%. The nearest technical support for the trend nested line of the price channel at 0.7018 is about to be overcome and a new target will open at 0.6922.

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Fractal analysis of major currency pairs on October 26

Dear colleagues.

For the Euro / Dollar currency pair, we expect the continuation of the downward movement after the breakdown of 1.1344 and we consider the movement upwards as a correction. For the currency pair Pound / Dollar, we still expect a turn into a correction from the level of 1.2802. For the currency pair Dollar / Franc, the potential target for the top is the level of 1.0038 and the level of 0.9963 is the key support. For the currency pair Dollar / Yen, the descending structure of October 22 is still relevant for setting goals and the level of 112.66 is the key support. For the currency pair Euro / Yen, we expect the movement to the level of 127.40. For the Pound / Yen currency pair, we expect the downward movement after the breakdown of 143.84 and we consider the upward movement as a correction.

Forecast for October 26:

Analytical review of H1-scale currency pairs:

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For the Euro / Dollar currency pair, the key levels on the H1 scale are: 1.1472, 1.1433, 1.1380, 1.1346, and 1.1299. Here, we continue to follow the development of the downward cycle of October 16. The short-term downward movement, as well as consolidation, we expect in the range of 1.1380 - 1.1346. The potential value for the bottom is considered the level of 1.1299, to which we expect movement after the breakdown of 1.1346.

The short-term upward movement is possible in the range of 1.1410 - 1.1433 and the breakdown of the latter will lead to the development of a protracted correction. Here, the target is 1.1472 and this level is the key support for the bottom.

The main trend is the downward structure of October 16.

Trading recommendations:

Buy 1.1410 Take profit: 1.1430

Buy 1.1435 Take profit: 1.1470

Sell: 1.1379 Take profit: 1.1348

Sell: 1.1344 Take profit: 1.1305

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For the Pound / Dollar currency pair, the key levels on the H1 scale are: 1.3044, 1.2979, 1.2909, 1.2866, 1.2802 and 1.2719. Here, we are following the development of the downward structure of October 12. The downward movement is expected after the breakdown of 1.2802. In this case, the potential target is 1.2719, after reaching this level, we expect a departure to the correction.

The short-term uptrend is possible in the range of 1.2866 - 1.2909 and the breakdown of the last value will lead to a prolonged correction. Here, the goal is 1.2979 and this level is the key support for the downward structure. Its price passage will have to form the initial conditions for the top. In this case, the potential goal is 1.3044.

The main trend is the downward cycle of October 12.

Trading recommendations:

Buy: 1.2866 Take profit: 1.2906

Buy: 1.2912 Take profit: 1.2970

Sell: Take profit:

Sell: 1.2800 Take profit: 1.2725

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For the Dollar / Franc currency pair, the key levels on the H1 scale are: 1.0131, 1.0108, 1.0066, 1.0038, 0.9982, 0.9963, 0.9936 and 0.9914. Here, we continue to monitor the ascending structure of October 15. At the moment, we expect the movement to the level of 1.0038 and in the range of 1.0038 - 1.0066 is the short-term upward movement, as well as consolidation. The breakdown of the level of 1.0066 should be accompanied by a pronounced upward movement. Here, the target is 1.0108. The potential value for the top is considered the level of 1.0131, upon reaching which we expect a rollback downwards.

The short-term downward movement is possible in the range of 0.9982 - 0.9963 and the breakdown of the last value will lead to a prolonged correction. Here, the target is 0.9936 and the range of 0.9936 -0.9914 is the key support for the upward structure. From the level of 0.9914, we expect the initial conditions for the downward cycle.

The main trend is the upward structure of October 15.

Trading recommendations:

Buy: 1.0040 Take profit: 1.0066

Buy: 1.0070 Take profit: 1.0108

Sell: 0.9980 Take profit: 0.9964

Sell: 0.9960 Take profit: 0.9938

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For the Dollar / Yen currency pair, the key levels on the scale of H1 are: 112.88, 112.66, 112.24, 112.01, 111.71, 111.38, 111.14 and 110.84. Here, we are following the downward structure of October 22. The short-term downward movement is expected in the range of 112.24 - 112.01 and the breakdown of the latter value will lead to movement to the level of 111.71. The breakdown of which should be accompanied by a pronounced downward movement to the level of 111.38 and in the range of 111.38 - 111.14 is the short-term downward movement, as well as consolidation. The potential value for the bottom is considered the level of 110.84, after reaching which we expect a rollback to the top.

The level of 112.66 is the key support for the downward structure. Its breakdown will lead to its cancellation, and in this case, the first potential target is 112.88.

The main trend is the downward structure of October 22.

Trading recommendations:

Buy: 112.66 Take profit: 112.88

Buy: Take profit:

Sell: 112.24 Take profit: 112.02

Sell: 111.98 Take profit: 111.40

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For the Canadian dollar / Dollar currency pair, the key levels on the H1 scale are: 1.3250, 1.3199, 1.3161, 1.3127, 1.3085, 1.3060, 1.2965 and 1.2913. Here, we continue to monitor the ascending structure of October 16, and the price also forms a local structure for the top of October 24. The movement upwards is expected after the price passes the range of 1.3060 - 1.3085. In this case, the first target is 1.3137 and in the range of 1.3161 - 1.3199 is the short-term upward movement, as well as consolidation. The potential value for the top is considered the level of 1.3250, after reaching which we expect a departure to a correction.

The main trend is the ascending structure of October 16, the local structure of October 24.

Trading recommendations:

Buy: 1.3085 Take profit: 1.3135

Buy: 1.3163 Take profit: 1.3197

Sell: 1.2965 Take profit: 1.2915

Sell: Take profit:

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For the currency pair Australian dollar / Dollar, the key levels on the H1 scale are: 0.7130, 0.7105, 0.7088, 0.7059, 0.7034, 0.7017 and 0.6992. Here, we are following the development of the downward structure of October 17. The continuation of the downward movement is expected after the breakdown of 0.7059. In this case, the goal is 0.7034 and in the range of 0.7034 - 0.7017 is the price consolidation. The potential value for the bottom is considered the level of 0.6992, upon reaching which we expect a rollback to the top.

The short-term uptrend is possible in the range of 0.7088 - 0.7105 and the breakdown of the latter value will lead to a prolonged correction. Here, the target is 0.7130 and this level is the key support for the downward structure.

The main trend is the downward structure of October 17.

Trading recommendations:

Buy: 0.7088 Take profit: 0.7105

Buy: 0.7107 Take profit: 0.7130

Sell: 0.7056 Take profit: 0.7034

Sell: 0.7016 Take profit: 0.6992

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For the Euro / Yen currency pair, the key levels on the H1 scale are: 128.74, 128.44, 128.08, 127.84, 127.40, 127.17, 126.82 and 126.43. Here, we continue to monitor the downward structure of October 22. The short-term downward movement is possible in the range of 127.40 - 127.17 and the breakdown of the latter value will lead to the movement to the level of 126.82. From this level, there is a high probability of recoil upwards. The potential value for the bottom is considered the level of 126.43, after reaching which we expect a rollback to the top.

The short-term uptrend is possible in the range of 127.84 - 128.08 and the breakdown of the last value will lead to a prolonged correction. Here, the goal is 128.44 and this level is the key support for the downward structure of October 22. Its breakdown will have to form an upward structure. In this case, the goal is 128.74

The main trend is the downward structure of October 22.

Trading recommendations:

Buy: 127.84 Take profit: 128.06

Buy: 128.15 Take profit: 128.44

Sell: 127.40 Take profit: 127.20

Sell: 127.15 Take profit: 126.84

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For the Pound / Yen currency pair, the key levels on the H1 scale are: 146.39, 146.03, 145.28, 144.76, 143.84, 143.19 and 142.24. Here, we are following the downward structure of October 16. The short-term downward movement is possible in the range of 143.84 - 143.19 and the breakdown of the latter value will lead to movement to the potential target of 142.24, upon reaching this level, we expect a rollback to the top.

The short-term uptrend is possible in the range of 144.76 - 145.28 and the breakdown of the last value will lead to a prolonged correction. Here, the target is 146.03 and the range of 146.03 - 146.39 is the key support for the downward structure. We are waiting for the initial conditions for the top to reach it.

The main trend is the downward structure of October 16.

Trading recommendations:

Buy: 144.76 Take profit: 145.26

Buy: 145.32 Take profit: 146.03

Sell: 143.84 Take profit: 143.22

Sell: 143.16 Take profit: 142.30

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Intraday technical levels and trading recommendations for EUR/USD for October 26, 2018

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On the weekly chart, the EUR/USD pair is demonstrating a high-probability Head and Shoulders reversal pattern where the right shoulder is currently in progress.

On September 10, the price level of 1.1500 offered temporary bullish recovery. Quick bullish movement was demonstrated towards the upper limit of the price range (1.1750). However, the EUR/USD bulls failed to pursue towards higher bullish targets.

Instead, evident bearish momentum was being demonstrated on the daily chart.

On October 10, recent bearish decline below 1.1520 found its way towards the price level of 1.1420.

However, Temporary bullish recovery around 1.1430 pushed the EUR/USD pair above 1.1520 until bearish breakdown of 1.1520 occurred again on October 17.

Hence, a descending high was established around 1.1600 enhancing the bearish side of the market.

As for the bearish side of the market to remain dominant, the EUR/USD pair should pursue trading below the price level of 1.1400.

Next demand level would be located around 1.1275 and possibly 1.1100 if sufficient bearish pressure is demonstrated.

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EUR/USD: Euro may have a chance for a correction

Data released on the US economy in the second half of the day led to an increase in the US dollar against risky assets, including against the pound and the European currency. Considering that the European Central Bank expressed concern yesterday about the future rates of economic growth but did not reconsider its attitude toward monetary policy. The upward trend in the US dollar is likely to continue but it is subject to positive reports today, assessing US GDP growth for the 3rd quarter.

Economists expect GDP in the 3rd quarter to grow by 3.4% per annum but some experts predict that in the 4th quarter. The GDP growth will slow to levels below 3%.

Basic data

According to a report by the US Department of Labor, the number of Americans who have filed new applications for unemployment benefits has increased. Hence, for the week from October 14 to October 20, the number of Americans who first applied for unemployment benefits increased by 5,000 and reached 215,000. Economists expected the number of applications to be 214,000. influenced the number of applications.

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A good report on the growth of demand for durable goods in the United States supported the US dollar. The demand was caused by a sharp increase in orders for military aircraft.

According to the US Department of Commerce, total orders for durable goods increased by 0.8% in September this year compared with the previous month. The demand was caused by a sharp increase in orders for military aircraft.

As I noted above, the main increase was orders of military aircraft and spare parts, where the increase was 119.1% compared with the previous month. There was a decrease of 0.6%, excluding defense orders, while orders excluding transport equipment rose by 0.1%.

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The number of signed contracts for the sale of housing increased in September compared with the previous month. However, this still does not indicate an improvement in the situation in the US housing market, where there is a very serious fall due to the rising cost of borrowing and high prices.

According to the National Association of Realtors, the index of signed contracts for the sale of housing in September rose by 0.5% compared with the previous month and amounted to 104.6 points. Economists had expected sales to remain unchanged. Compared to the same period of the previous year, the index in September fell by 1.0%.

Production activity in the area of responsibility of the Fed-Kansas City has decreased. According to the data, the composite manufacturing index of the Fed-Kansas City was 8 points in October against 13 points in September.

As for the technical picture of the EUR/USD pair, a lot will depend on the report on the growth rate of the US economy today. If the data coincide with economists' forecasts or turn out to be worse, the pressure on the dollar will increase, which will lead to an upward correction in the trading instrument. The breakthrough of the resistance at 1.1390 will hit a series of stop orders of euro sellers and will allow you to return to yesterday's highs around 1.1430, where the week may close. If the pressure on the euro increases, all hope will be on the support level in the area of 1.1335. A breakthrough of which will collapse the trading pair already to the lows of August this year in the range of 1.1300.

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The pound was hit hard

Eurozone

The meeting of the ECB ended predictably, as they kept its forecasts almost unchanged, despite a decline in business activity, and as expected, the asset repurchase program will be curtailed by the end of the year.

The ECB believes that some cooling in the economy is a temporary phenomenon, and the main concern is related to the fall in stock markets and the formation of the Italian budget. Meanwhile, the spread between the 10-year bonds of Italy and Germany continues to grow, which gives the right to consider the prospects for the euro to be rather weak.

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The EUR/USD pair will remain under pressure and the probability of a decline to 1.1301 remains high. This support is a key level, hence, a struggle for the initiative will take place near this area.

Great Britain

The Brexit question is gradually becoming more and more difficult. As the media recently reported, the Queen of Great Britain commented for the first time publicly on the forthcoming British withdrawal from the EU. Despite reformatting relations, she considers "a long-term union lasting", she explained.

Journalists have a short memory - they don't remember that it was Elizabeth II in a throne speech before the country's parliament that declared on May 27, 2015, that the UK would hold a referendum on leaving the European Union in 2017. The decision on withdrawal was made at the highest level long before the referendum. This political decision is being implemented and discussions in society and the referendum itself were needed only to give the process legitimacy.

Brexit is needed in order to relinquish certain obligations within the EU while retaining trade privileges. As practice shows, such a plan is risky. Russia officially blocked the UK attempt to retain all the conditions of membership in the WTO, which were provided to it as a member of the EU. In fact, we are talking about the need to revise all trade relations with third countries, which is equivalent to several years of intense negotiations.

This situation significantly undermines the position of the UK complicating the task of negotiating with the EU and ultimately will not allow the pound to recover.

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The current account of UK is confidently insufficient. Some positive dynamics in the last two years is associated with a strong weakening of the pound, which has improved the trade balance but now there is every reason to assume that the dynamics will again become negative. The Bank of England in the last report on inflation assumed that trade will make a positive contribution to GDP growth in the coming quarters, however, it seems that the process may be reversed.

The Bank of England's forecast makes a crack, which reduces the likelihood of completion of the asset repurchase program, and the regulator will not be able to follow the Fed to begin to reduce the balance sheet.

The GBP/USD pair is just one step away from 1.2780 support. It is quite possible that it will be broken today with the next target of 1.2660. The chances of a reversal look ghostly, there are no fundamental reasons for growth.

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Bitcoin analysis for October 26, 2018

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Trading recommendations: According to the H4 time - frame, I found that BTC is still trading inside of the tranding range between the price of $6.456 (resistance) and the price of $6.319 (support). My advice is to watch for a breakout of support or resistance to confirm a further direction. If you see a breakout of resistance, watch for an upward target at $6.710. Alternatively, if you see a breakout of support, watch for a downward target at $6.162.

Support/Resistance

$6.710 – Bullish objective target

$6.162 – Bearish objective target

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

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Technical analysis for US Dollar Index for October 26, 2018

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Technical outlook:

The US Dollar Index has unfolded into an impulse wave from 88.30 lows as depicted on the daily chart here. The most probable formation after an impulse should be a 3-wave corrective drop in the form of a flat or expanded flat or a combination. Looking at the structure till now, the drop from 97 through 94 unfolded into 3 waves; hence we have labeled as (A). A subsequent rally from 94.00 through current price at 96.76 has also unfolded into 3 waves, hence labeled as wave (B) on the chart here. If prices remain below 97.00 levels going forward, a standard flat can unfold into wave (C) lower towards 93.00 levels at least. Only a push ahead of 97.00 could be an obstacle for bears.

Trading recommendations:

Aggressive traders go short now against 97.10 while conservative traders stay aside for further confirmation.

Good luck!

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Technical analysis for EUR/USD for October 26, 2018

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Technical outlook:

The EUR/USD has been dropping from 1.2500/600 levels, completing an impulse, 5 waves at 1.1300 levels earlier. Furthermore, the price has rallied through 1.1820/30 levels into 3 waves labelled as (A), around the fibonacci 0.382 resistance of the previous drop. The subsequent drop from 1.1830 until now has been transformed into 3 waves, thus it can be (B) depicted on the daily chart view here. Kindly note that 1.1300 remains as a critical support level for bulls to stay in control and unfold Wave (C) higher towards at least 1.1850 levels in the next few weeks time. A break below 1.1300 levels would delay matters further and could continue dropping lower or produce an expanded flat.

Trade recommendations:

Aggressive traders can initiate long positions against 1.1300 levels while conservative traders should stay aside for now.

Good luck!

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Fundamental Analysis of AUD/USD for October 26, 2018

AUD/USD has been quite volatile, judging by the recent price action. However, the pair managed to push lower below 0.7050 area currently with impulsive momentum. Despite the recent economic headwinds faced by US after the recent rate hike, AUD failed to gain momentum over USD which indicates weakness of the currency in the process.

Though AUD has been quite successful with the gains against other currencies in the market, it is making efforts to gain over USD. After the mixed economic data on employment last week, AUD somehow managed to gain some momentum in the process but failed to sustain it. This week RBA Assistant Governor Debelle and Bullock spoke about the economic developments and expressed the hawkish view on the current economic structure which is expected to encourage growth in the future.

On the USD side, recently a series of macroeconomic data like Core Durable Goods Orders, Durable Goods Orders, and Trade Balance report was published with mixed scores. As a result, the US currency is trading with indecision. However, the borad-based strength of USD is ensured by the strong likelihood of another rate hike at the December policy meeting. Today US Advance GDP report is going to be published which is expected to decrease to 3.3% from the previous value of 4.2%, Advance GDP Price Index is expected to decrease to 2.1% from the previous value of 3.0%, and Revised UoM Consumer Sentiment is also expected to decrease to 98.9 from the previous figure of 99.0.

Meanwhile, upcoming US economic reports are expected to be quite downbeat, whereas AUD has been quite hawkish fundamentally. As per current bearish pressure in the market, certain negative readings on the USD side is expected to lead to certain weakness, thus propping up AUD gains the coming days. Ahead of macroeconomic reports from Australia and the US to be published next week, certain volatility may be observed in this pair.

Now let us look at the technical view. The price is currently residing below 0.7050 which has not been confirmed yet to have a daily close below it ahead of a series of macroeconomic reports of today. The price recently formed a Bullish Divergence in the price which decreases the probability of further bearish momentum in the pair. As per current price formation, the price is expected to push up higher towards 0.7150-0.7200 area before continuing with the bearish trend in the future whereas a daily close above 0.7050 is required for better probability.

SUPPORT: 0.6850

RESISTANCE: 0.7050, 0.7150, 0.7200

BIAS: BEARISH

MOMENTUM: VOLATILE

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EUR./USD analysis for October 26, 2018

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Recently, the EUR/USD pair has been trading downwards. The price tested the level of 1.1349. Anyway, according to the M15 time – frame, I have found the fake breakout of yesterday's low at the price of 1.1355, which is a sign that selling looks risky. I also found trading range between the price of 1.1355 and the price of 1.1383. My advice is to watch for buying opportunities with the target at the price of 1.1383.

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BITCOIN Analysis for October 26, 2018

Bitcoin recently pushed higher quite impulsively towards $6,500 area but could not sustain the momentum resulting to rejection off the area with certain bearish pressure. The price having certain correction along the way formed Bullish Divergence which led the price to break above the dynamic levels like 20 EMA, Tenkan, Kijun, and Kumo Cloud as well. Though the price rejected off the $6,500 area, it is currently residing at the edge of Kumo Cloud support which is expected to lead to further bullish pressure with a target towards $6,500. Later if a daily close is observed above the area it may also extend a rally towards $7,500 in the future. As the price remains above $6,000 area, the bullish bias is expected to continue.

SUPPORT: 6,000

RESISTANCE: 6,500, 7,500

BIAS: BULLISH

MOMENTUM: VOLATILE

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Analysis of Gold for October 26, 2018

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Recently, Gold has been trading sideways at the price of $1,236.90. According to the H4 time – frame, I have found that Gold is in consolidation phase and my advice is to watch potential breakout of the resistance $1,239.50 to confirm further upward continuation. I have placed Fibonacci expansion to find potential upward target and I Got Fibonacci expansion 161.8% at the price of $1,266.80. Watch for buying opportunities above the level of $1,239.50.

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

Technical analysis of GBP/USD for October 26, 2018

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Overview:

The GBP/USD pair fell from the level of 1.2979 towards 1.2902 then it set around 1.2829. Now, the price is set at 1.2913. It should be noted that volatility is very high for that the GBP/USD pair is still moving between 1.2979 and 1.2902 in coming hours. Furthermore, the price has been set below the strong resistance at the levels of 1.2979 and 1.3029, which coincides with the 23.6% and 38.2% Fibonacci retracement level respectively. Additionally, the price is in a bearish channel now. Amid the previous events, the pair is still in a downtrend. From this point, the GBP/USD pair is continuing in a bearish trend from the new resistance of 1.2979. Thereupon, the price spot of 1.2979 remains a significant resistance zone. Therefore, a possibility that the GBP/USD pair will have downside momentum is rather convincing and the structure of a fall does not look corrective. In order to indicate a bearish opportunity below 1.2979, sell below1.2979 with the first targets at 1.2829 1.2759 and 1.2695. However, the stop loss should be located above the level of 1.2979.

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