Fundamental Analysis of EUR/JPY for October 29, 2018

EUR/JPY has come under impulsive bearish pressure, leading the price below 128.00 area earlier. The price is currently climbing higher for a retracement towards 128.50-129.50 area before continuing with the trend. Despite the recent weakness of EUR, it managed to put impulsive pressure over JPY today which indicates that JPY has given in under the current market conditions.

EUR is struggling for gains in the context of Italy's budget deficit which made EUR lose ground against JPY for last few days. In light of the recent speech by ECB President Draghi, the monetary policy was unchanged despite a slowdown in the economic growth which could lead to certain economic distress. Throughout the week, the economic calenday contains a series of macroeconomic reports. Tomorrow French Flash GDP is expected to increase to 0.4% from the previous value of 0.2% and German Prelim CPI is expected to decrease to 0.1% from the previous value of 0.4%.

On the other hand, today Japan's Retail Sales report was published with a decrease to 2.1% as expected from the previous value of 2.7% which caused weakness in JPY, leading to heavy losses. Moreover, BOJ seems quite comfortable, leaving its policies unchanged. The BOJ Policy Rate report slated for Wednesday is expected to maintain the key policy rate unchanged at -0.10%.

Meanwhile, JPY is expected to extend weakness against EUR until BOJ comes up with better forecasts on the the domestic economy. Otherwise, EUR gains may sustain longer which might lead to stronger counter trend momentum in the future leading to more volatility and indecisiveness.

Now let us look at the technical view. The price is currently pushing higher towards 128.50-129.50 area while staying away from the dynamic level mean of 20 EMA. Additionally, price forming Bullish Divergence along the way also indicates certain retracement for a while. Though the bias is still bearish as the price remains below 129.50 area, certain bullish retracement is expected before the price continues with the trend in the future.

SUPPORT: 125.50

RESISTANCE: 128.50, 129.50

BIAS: BEARISH

MOMENTUM: VOLATILE

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The Netherlands is preparing to become the new financial center of the EU after Brexit

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The regulator of the Dutch financial markets (AFM) stated that it is preparing for a 20-fold increase in financial operations occurring on its infrastructure if Britain leaves the European Union in March without any agreements.

AFM noted that, although banks are moving their operations to Frankfurt and Paris, and asset managers to Luxembourg and Dublin, trading houses have unanimously chosen the Netherlands as an alternative to London after the UK left the EU.

"While the focus is on border and customs negotiations, there is already a fairly serious shift in European capital markets. AFM is in talks with more than 150 parties interested in a (Dutch trade) license," the statement said.

AFM Chairman Merel van Vroonhoven expects that 30-40% of European trading in various financial instruments will be located in the Netherlands and the country will become the center of EU financial trading.

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Merkel resigns from the post she has occupied since 2000.

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German Chancellor Angela Merkel will not run for the post of head of the Christian Democratic Union (CDU), which she has led since April 2000. She stated this today at a meeting of the Presidium of a political organization in Berlin. This message is transmitted by the n-tv and Welt TV channels, referring to high-ranking officials in the CDU.

Merkel, at the same time, intends to retain the post of German Chancellor, German media say.

The news of the departure of the Chancellor from the post of chairman of the CDU came as a surprise to the market, since it was assumed that Merkel's candidacy would be put forward again. Voting should take place in December during a party conference.

Such a decision contributed to the failure of the party in elections in the federal state of Hesse, held on October 28, informs Welt. Merkel made the appropriate conclusions, according to the channel. At the elections, the party became a leader, while it significantly lost in support.

The CDU receives only 27% of the vote, and the SPD - 19.8%, according to preliminary DW data. In the last election five years ago, similar indicators were at the level of 38.3% and 30.7%, respectively.

It is also reported that the Greens gained 19.8%, while the Alternative for Germany had a 13.1% vote.

Party Merkel is losing its popularity. If the elections to the Bundestag were held now, only 26% of voters would have voted for it, the results of the October poll showed. This is the worst result ever.

Merkel's statement forced the euro to falter in the Forex market.

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Political passions are running high, because of the loss of the Christian Democratic Union in Hesse, the ruling coalition may lose most of the seats in the Diet necessary to create a government. In this case, as Deutsche Welle notes, the composition of the future government of Hesse will change. These changes can also affect the fate of the central government.

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BITCOIN Analysis for October 29, 2018

After indecisive correction and a few days of volatility, the price pushed lower impulsively today towards $6,200 area. The impulsive bearish pressure was a bit of a shock for the Bitcoin bulls while certain Bullish Divergence failed to push the price higher. The price has formed an extreme low in MACD Histograms, resulting in Extreme Divergence which is expected to lead to certain Bullish retracement towards $6,400 area where the Kumo Cloud rests. Then, price moved lower again with a target towards $6,000. Despite the recent bearish momentum, the bullish bias still remains intact as the price is holding above $6,000 area with a daily close.

SUPPORT: 6,000

RESISTANCE: 6,500, 7,500

BIAS: BULLISH

MOMENTUM: VOLATILE

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The dollar may be cheaper by the end of the week

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The US currency is trading at fairly strong levels, and it probably has no decent competitor among the Big Ten, with the exception of the Japanese yen. The euro bears a lot of problems in the form of political risks, weak economic growth, and inflation. Therefore, as long as the euro / dollar rate does not exceed 1.143 and 1.15, the bears will continue to control the main pair.

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In the first half of this week, the dollar is likely to continue to hold strong positions, aided by a number of technical factors.

On Monday, October 29, is the last day when companies can repatriate profits to the States in October. After Trump's tax reform took effect this year, this factor constantly supports the US currency two working days before the end of the month. The demand for dollars at this time rises substantially.

In addition, on Wednesday, the next reduction of the balance of the Central Bank of the USA is expected. On state bonds, the maturity date is $ 22.9 billion. In other words, the Ministry of Finance will return the appropriate amount to the Fed, which will not be reinvested in new assets. There will be a decrease in the volume of dollar liquidity in the system, at least this was the case in previous months. On such days, the dollar has always appreciated.

In the second half of the week, the US currency may lose some potential for growth due to the expected important macroeconomic statistics from the eurozone. October inflation in the region, according to market forecasts, will accelerate to 1.2% y/y after September's 0.9%. The highest rate of inflation is always supported by euro quotes, as investors' expectations of rising interest rates in Europe increase.

The market can be disappointed by a leading indicator of economic activity ISM, which is likely to shrink after the tightening of financial conditions in America. Release publication is scheduled for Thursday.

In this scenario, in the first part of this week, the US dollar will be in high spirits under the influence of technical factors. Then a turn in favor of the euro currency is possible.

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GBP / USD: plan for the American session on October 29. Pound refrained from falling

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

Buyers managed to form a false breakdown in the support area of 1.2825, which has now moved slightly below, to the area of 1.2804. As long as trading is conducted above this range, demand for GBP / USD will remain, which may hit a number of stop orders of sellers and form a larger upward correction to the highs of 1.2866 and 1.2905, where I recommend fixing the profits. In the event of a decrease in the pound under the support of 1.2804 in the second half of the day, it is best to count on long positions on a rebound from the new monthly minimum around 1.2733.

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

The bears failed to consolidate below the support of 1.2823 in the morning. The main task now is to breakdown and consolidate below today's low near 1.2804, which will serve as a signal to open short positions in the pound with the aim of reducing to the new monthly minimums in the areas of 1.2733 and 1.2697, where I recommend fixing the profits. In the case of GBP / USD growth in the second half of the day, you can count on short positions after the update of the large resistance of 1.2866 or on the rebound from 1.2905.

Indicator signals:

Moving Averages

Trade is conducted in the 30- and 50-day average, which indicates the formation of the lateral nature of the market.

Bollinger bands

Bollinger Bands indicator volatility is very low, which does not give signals on market entry.

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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 29. Angela Merkel's statement put only temporary pressure on the euro

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

In the first half of the day, buyers coped with the support level of 1.1367, which I drew attention to in my morning forecast, and resumed purchases from it after the decline of the euro, which was due to German Chancellor Angela Merkel's statement that she would not be re-elected chairman of his party. The next target of the bulls is in the resistance area of 1.1431, where profit taking will be visible today. However, fixing above this range will allow us to count on new highs in the region of 1.1474 and 1.1516, where I recommend fixing the profits.

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

Euro sellers need to form a false breakdown at 1.1431, as it was in the first half of the day with a range of 1.1408, from which the euro quickly collapsed down to the area of 1.1367. If there is no rapid downward movement at the maximum of 1.1431, then I recommend to postpone short positions until the new resistance of 1.1474 is updated. The main task for the second half of the day will be the support test of 1.1367, which will lead to a breakthrough of this area with reaching the minimums of 1.1337 and 1.1300, where I recommend fixing the profits.

Indicator signals:

Moving Averages

Trade has moved above the 30-day and 50-day average, which indicates the continuation of the formation of the upward correction in the euro.

Bollinger bands

The upper limit of the indicator in the region of 1.1410 has limited the upside potential of the euro in the first half of the day, but a repeated test of this level will lead to a larger increase in 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
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Pound seeking protection from the Bank of England

The British pound was marked by the worst weekly dynamics against the US dollar over the past few months amid growing fears about the inability to make a deal between Foggy Albion and the EU. President of the European Council Donald Tusk said that there are no guarantees that the hard borders with Ireland could have been avoided, and Bloomberg, citing competent sources, said that negotiations on Brexit were suspended due to the lack of options to reach a compromise on the part of Prime Minister Theresa May and her team. While the political factor will put pressure on the sterling, it is difficult to expect that it will return above $ 1.3.

British pound weekly dynamics

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At any other time, the presentation of the budget draft by the Chancellor Philip Hammond before March 2019 and the meeting of the Bank of England should have forced investors to follow the pound with heightened vigilance. Moreover, there are rumors around the market that London will move away from the principles of fiscal consolidation and expand the expenditure side of the budget in order to stimulate economic growth.

It makes sense for Mark Carney and the company to expect "hawkish" rhetoric, because the devaluation of sterling increases the risk of inflation returning to 3%, which will force the Bank of England to continue the monetary policy normalization cycle. For the time being, the derivatives market believes that this will happen only in 2020, and if expectations after the meeting of the Monetary Policy Committee are shifted to an earlier period, this can provide support to the bulls on GBP / USD. However, who can now say with confidence that it will be in the medium term? While the policy of the sword of Damocles hangs over the pound, it does not make sense to count on its serious strengthening.

On the other hand, the closure of speculative long positions on the US dollar may be enough for the fans of the analyzed pair to cheer up. After one of the best six months for US GDP in the past ten years, there are rumors in the market that the States have reached a ceiling. Therefore, both stock indices and the USD index risk entering a deep correction. According to the S & P 500, it started in early October, and during this period, the stock market lost about 8%, noting the worst monthly dynamics since 2009. But it was the strong positions that distinguished the United States from other countries, contributing to the flow of capital and the strengthening of the US dollar.

At the same time, the rollback on the S & P 500 worsens financial conditions and increases the risks of slowing down the Fed's monetary policy normalization cycle. CME derivatives have already reduced the likelihood of December monetary restriction from 80% to 69%, now investors are focused on comments from FOMC representatives.

Technically, the "bears" at GBP / USD at arm's length approached the target by 88.6% using the "Bat" pattern. In the case of a return of quotes above 1.285-1.286 (50% of an upward long-term wave), bulls can take over the initiative. To continue the peak, "bears" need to update the August minimum.

GBP / USD, the daily graph

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Intraday technical levels and trading recommendations for EUR/USD for October 29, 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.

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.

The current bearish breakout has initial targets around 1.1275 and probably 1.1100 if sufficient bearish pressure is demonstrated.

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Intraday technical levels and trading recommendations for GBP/USD for October 29, 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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Prices on the world oil market depend on Iran and the USA - opinion

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According to a number of experts, at the moment, the cost of oil in the global market will depend on the strategy chosen by the United States and Iran.

On Monday, October 29, oil quotes of reference varieties remain within the level fixed last Friday. However, despite the growth of Friday's trading, at the moment, black gold has fallen in price. The value of the Brent brand has fallen by 2.7%, and the value of WTI by 2.4%.

Foreign investors are very attentive to such factors as the likelihood of an increase in oil production from Saudi Arabia and other countries included in the OPEC + transaction. It is expected that these states will be able to compensate for the possible shortage of Iranian oil on the world market after the introduction of the next US sanctions.

Brent crude futures for December delivery on the ICE Futures exchange in London fell 0.04% to $ 77.59. Last Friday, this contract increased by 0.95%, to $ 77.62. Futures for light crude oil WTI for December delivery rose in price by 0.01%, to $ 67.6. According to the results of previous trades, this variety went up by 0.39%, reaching a figure of $ 67.59.

According to experts of the American oilfield services corporation Baker Hughes, the number of existing drilling rigs in the United States increased by two units over the week, reaching 875. Experts note that this is the maximum figure since 2015. Recall that since the beginning of 2018, the number of functioning drilling rigs in the United States has increased by about 100 units.

According to analysts, the main intrigue of the world market for black gold was the expectation of action by China in the context of a trade conflict with the United States. In the case of purchases of Iranian oil by the Chinese authorities and their disregard for sanctions, oil quotes will continue to decline, experts believe.

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Japan: Slowdown in retail sales growth as a threat to GDP growth

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Retail sales rose in September for the 11th consecutive month, but the growth rate slowed down compared to the previous month, which suggests that private consumption may not be strong enough to avoid a slowdown in economic growth.

The data also showed an unexpected decline in exports in September, which led to a noticeable slowdown in economic growth in July-September compared with the previous quarter. Analysts expect this slowdown to be temporary and caused by natural disasters, which in recent months have negatively affected business and consumer activity. However, the recession heightened concerns about the ability of the Central Bank to achieve inflation targets. The Bank of Japan is waiting for a new piece of data, including production and unemployment, to update its growth and inflation forecasts.

In the third quarter, GDP probably fell by 0.1 percent. Most likely, the Central Bank will slightly lower its growth and inflation forecasts for the current fiscal year. Private consumption, which accounts for about 60 percent of economic activity, is the key to accelerating inflation to a target of 2 percent. However, the head of the Bank of Japan said that it would take more time than originally expected to achieve this goal. Annual basic consumer inflation in Japan in September increased by 1 percent, which is the highest figure in the last seven months.

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EUR / USD. Weak PCE summed up the dollar

The data published on Friday about the growth of the American economy left more questions than answers. The dollar's reaction was also ambiguous. After a sharp increase, the greenback weakened its position, which affected almost all dollar pairs. This fact saved the pair EUR / USD from slipping to annual minimums, and the price was able to return to the borders of the 14th figure. Today, the bulls tried to continue the "offensive", but the unresolved Italian issue stopped the northern dynamics.

Data on US GDP growth were very controversial. Most of the surveyed analysts expected a slowdown in the country's economy to 3.3% due to the effects of the trade war between the States and China. Exports really showed negative dynamics (decreased by 3.5% with an increase in imports by 9.1%), the tariff policy did not pass without a trace. But nevertheless, the growth of the economy turned out to be stronger than expectations. According to initial estimates, the figure rose to 3.5%.

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This is lower than the results of the second quarter (4.2%), but higher than many previous quarters. The decline in exports was offset by an increase in consumer spending (and a significant increase, the maximum in the last four years) and an increase in investment. In general, according to experts, the annual growth of US GDP is likely to be the strongest over the past 14 years.

These figures could not go unnoticed, so the dollar index jumped to the level of 96.45 points, reaching the annual maximum. But then, the market turned to the inflation component of GDP, the basic price index of personal consumption expenditures. It is believed that this indicator is monitored by the Fed "with a special passion", so its negative dynamics in many ways leveled the positive from the Friday release. The indicator came out at the level of 1.6%, although experts expected growth to two percent from the previous level of 2.1%.

It is worth recalling that the overall inflation rate also disappointed traders, consumer prices in September fell to 0.1% after a weak growth of 0.2% in August. On an annualized basis, the consumer price index of only 2.3% is the weakest growth rate in the past six months. And although annual inflation is still at fairly high levels, a negative trend may alert the members of the regulator.

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After the Friday release on the market, it was even said that the December rate hike might also be in question. At least, Fed members have reason to soften their rhetoric by emphasizing weak PCE and negative consumer price dynamics. This is an unlikely scenario, but even the minimal likelihood of its implementation makes market participants nervous, which is reflected in the positions of the US currency.

Another cause for concern is the situation in the stock market. On Friday, US stock indices fell by 1.5-2.1% due to weak financial reports, the likelihood of a slowdown in the global economy, and prospects for the Fed to raise interest rates further. This circumstance may also affect the determination of members of the Federal Reserve, especially against the backdrop of criticism of the American president. In addition, the Fed's Beige Book was published last week, where members of the regulator voiced concerns about the pace of foreign trade, and also noted a shortage of qualified personnel.

Such a fundamental background in the context of the euro-dollar pair does not yet allow the price to update the annual minimum. One should be especially careful with long positions when approaching EUR / USD to the bottom of the 13th figure. However, the pair of bulls cannot seize the initiative, as the Italian question is still not resolved. Therefore, the southern dynamics in the near future may be continued, but the decline is limited to 1.1301, this is the price minimum of the year.

In addition, the current trading week is full of events. NonFarm will be published, data on the growth of inflation in the euro area, the unemployment rate in the EU and the American consumer confidence indicator. Also expected to be representatives of the ECB and the Fed. Such a "bunch" of fundamental factors will provoke increased volatility in a pair, determining the vector of further price movement.

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Technically, the pair is also ready to go towards the south. The price is located under all the lines of the Ichimoku Kinko Hyo indicator, which indicates the strength of the bearish pressure. It is also necessary to take into account that the pair is between the middle and lower lines of the Bollinger Bands indicator, also hinting about the advantage of the south. The immediate goal of the decline is the mark of 1.1350 (corresponding to the bottom line of the Bollinger Bands). Breaking through this support will open the way to the base of the 13th figure. The resistance level is the price of 1.1450, the Tenkan-sen line of the Ichimoku Kinko Hyo indicator.

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Experts noted the high demand for gold last week

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According to experts, last week, there was an increased interest in gold among investors. It was caused by panic among the participants of the American stock market due to the massive sale of shares. The yellow metal has become a safe haven for market players, in which it is easy to save capital in conditions of instability.

Last week, the cost of precious metals reached $ 1,235 for 1 troy ounce. Later, it consolidated above the long-term resistance level. Analysts believe that the current situation has opened the way for gold to reach $ 1,250.

Yellow metal can reach price peaks, experts believe. In the case of the resumption of sales on world stock markets, market participants will resume buying gold, and it will rise again. Only the strengthening of the American currency and the actions of the Federal Reserve System (FRS) in raising interest rates can prevent this. However, this can happen no earlier than 2019, analysts sum up.

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Wave analysis of GBP / USD for October 29. The pound does not prevent anything from falling

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Wave counting analysis:

In the course of trading on October 26, the GBP / USD currency pair added just a few points. Thus, the pair presumably remains at the stage of constructing wave c as part of the three wave correction structure. As before, the news background will have a great influence on the market behavior. Still an unresolved question on Brexit may for a long time force the market to sell the pound sterling, which can lead to a complication of the downward trend. Brexit news may come unexpectedly.

The objectives for the option with purchases:

1.3258 - 0.0% of Fibonacci (formal goal)

1.3300 - 161.8% of Fibonacci (formal goal)

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 news background is supported by the US dollar. Between the levels of 127.2% and 161.8%, the wave c can complete its construction. Thus, now I do not recommend new sales of the pair, but the purchases are not justified now, since there is no confirmation of the completion of wave c.

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Wave analysis of EUR / USD for October 29. The downward trend is not yet complete

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Wave counting analysis:

In the course of trading on Friday, the EUR / USD currency pair gained about 30 basis points, thus, there were reasons to assume the completion of the construction of wave 3, c. If this is true, then the increase in quotations will continue with targets located slightly above the Fibonacci level of 100.0%, after which resumption of quotations decline is expected within wave 5, c, with targets located near the estimated mark of 1.1194.

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

1.1432 - 100.0% of Fibonacci

General conclusions and trading recommendations:

The currency pair allegedly completed the construction of wave 3, c. Thus, now I recommend closing or reducing the sales opened earlier. Based on the current wave marking, it is expected to build another, at least downward wave with minimal targets located near the estimated level of 1.1327. A successful attempt to break through this mark will lead to a new decrease in the pair with targets near the mark of 1.1194.

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Weekly review for the GBP / USD currency pair from October 29 to November 3, 2018

Trend analysis (Fig. 1).

On the weekly chart, the price will move down with the target of 1.2746, the support line (red thick line).

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Fig. 2 (weekly schedule).

Comprehensive analysis:

- Indicator analysis - down;

- Fibonacci levels - neutral;

- Volumes - up;

- Candlestick analysis - down;

- Trend analysis - down;

- Bollinger lines - down;

- Monthly schedule - down.

The conclusion of the complex analysis - downward movement.

The total result of the calculation of the candle of the GBP / USD currency pair on a weekly schedule: the price of the week is likely to have a downward trend with the absence of the first upper shadow of the weekly black candle and the absence of the second lower shadow.

The lower target is 1.2746, support line (red thick line).

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Trading Plan 10/29/2018

Trading Plan 10/29/2018

The big picture: Focus on US data.

Ahead is a week of important news on the US economy. As early as Monday at 13.30 London time, the inflation report on the RFE index, on Wednesday and Friday, employment reports for October. At the same time, the market keeps in mind the approach of the Fed meeting on November 7 and evaluates the data from this perspective.

European currencies last week showed a decline, but so far a strong trend has not developed.

Pound: We keep selling from 1.2920.

Purchase, not earlier than 1.3260.

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Weekly review for the EUR / USD currency pair from October 29 to November 3, 2018

Trend analysis (Fig. 1).

To continue the downward trend, the price should overcome 1.1269, the support line (orange thick line), and then the path to the rolling back level of 61.8% opens, 1.1168 (yellow dashed line)

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Fig. 2 (weekly schedule).

Comprehensive analysis:

- Indicator analysis - down;

- Fibonacci levels - down (yellow dotted line);

- Volumes - down;

- Candlestick analysis - up;

- Trend analysis - up;

- Bollinger lines - down;

- Monthly schedule - down.

Conclusion on complex analysis - down.

The calculation of the first shadow of the week (Monday) on a weekly schedule.

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

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

The calculation of the RSI indicator system for the first tail is down.

The result: the calculation of the weekly candlestick according to the indicator analysis showed that on Monday the price may have a downward trend, which should be confirmed by the daily chart.

The calculation of the second shadow of the week (Friday).

The calculation by MACD linear part gave a downward trend (100 points down).

The calculation of the MACD histogram gave a downward trend (100 points down).

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

The total result of the calculation of the EUR / USD currency pair candle on a weekly schedule: the price of the week is likely to have a downward trend with the absence of the first upper shadow from the weekly black candle (Monday - down) and the absence of the second lower shadow (Friday - down).

The nearest lower target, the target is 1.1269, the support line (thick orange line).

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

Simplified Wave Analysis. USD / JPY review for the week of October 29

Wave pattern of the H4 chart:

From mid-July, a downward stretched plane has been developed on the price chart. It is corrects the bullish wave of the daily scale.

Wave pattern of the H1 chart:

The wave of the wave of October 3. The first two parts (AB) are fully formed in the wave structure.

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Wave pattern of the M15 chart:

From October 22, the price went down, forming a downward wave. In the coming days, a short-term pullback is not excluded.

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Recommended trading strategy:

Sales of the pair can be justified when trading on lower timeframes. It is recommended that you follow the pattern.

Resistance zones:

- 112.70 / 113.20

Support areas:

- 110.70 / 110.20

Explanations to the figures:

The simplified wave analysis uses 3 parts (A-B-C). For the analysis, three main TFs are used. On every last part, the incomplete wave is analyzed. Zones show calculated areas with highest probability of reversal.

The arrows indicate the wave marking by the method used by the author. The solid background shows the formed structure while the dotted shows the expected movement.

Note: The wave algorithm doesn't take into account the duration of tool movements over time. To trade a trade transaction, you need to confirm your trading systems!

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

Bitcoin analysis for October 29, 2018

analytics5bd6ee23a9b19.png

Trading recommendations:

According to the Daily time - frame, I found that BTC finally managed to get out of the 12-day balance and confirm further downward movement. My advice is to watch for selling opportunities due to strong momentum on the downside. The downward target is set at the price of $6.318.

Support/Resistance

$6.138 – Objective target

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

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

Simplified Wave Analysis. EUR / USD review for the week of October 29

Wave pattern of the H4 chart:

On the graph of H4 timeframe, the ascending section beginning in August is on track. The wave has the potential to grow into a full correction of the previous trend section.

Wave pattern of the H1 chart:

The downward wave of September 21 forms a distinct zigzag on the hourly chart. In the larger model, the plot took the place of the middle part (B).

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Wave pattern of the M15 chart:

From October 16, a new wave is forming which completes the larger H1 model. Within its framework, an intermediate correction of irregular shape is formed. In the coming days, a short-term price increase is likely to happen.

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Recommended trading strategy:

The conditions for changing the short-term trend direction are formed on the chart. Signals entering long positions are not yet observed. In the coming week, an expected "outback" and the trade in which is highly risky.

Resistance zones:

- 1.1480 / 1.1530

Support areas:

- 1.1340 / 1.1290

Explanations to the figures:

The simplified wave analysis uses waves consisting of 3 parts (A – B – C). For the analysis, three main TFs are used. On every last part, the incomplete wave is analyzed. Zones show calculated areas with the highest probability of reversal.

The arrows indicate the wave marking by the method used by the author. The solid background shows the formed structure while the dotted shows the expected movement.

Note: The wave algorithm doesn't take into account the duration of tool movements over time. To conduct a trade transaction, you need confirmation signals from the trading systems you use! The material has been provided by InstaForex Company - www.instaforex.com

Analysis of Gold for October 29, 2018

analytics5bd6e8d427c60.png

Recently, Gold has been trading sideways at the price of $1,229.05. Anyway, according to the daily time – frame, I have found many signs of a potential trend reversal. I have found doji, spinning top, and shooting star candles, which all suggest exhausted buyers and a potential response from sellers. I have also found the rejection from the upper band – resistance (Bollinger band) and hidden bearish divergence on the RSI oscillator, which is another sign of weakness. My advice is to watch for selling opportunities. The downward target and key short- term support is set at the price of $1,215.00.

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

GBP/USD analysis for October 29, 2018

analytics5bd6e244b175a.png

Recently, the GBP/USD pair has been trading sideways at the price of 1.2836. Anyway, according to the daily time – frame, I have found a hammer candle (bullish) and rejection from the lower band (Bollinger band), which is a sign that selling looks risky. I have also found today that that higher high and higher low is building, which is a sign that buyers taking control. My advice is to watch for buying opportunities. The key resistance and take profit level is set at the price of 1.2920 (previous swing low).

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

Technical analysis of USD/CAD for October 29, 2018

analytics5bd6de8423654.png

Overview:

The USD/CAD pair has broken resistance at the level of 1.3000, which acts as support now. So, the pair has already formed minor support at 1.3000. The strong support is seen at the level of 1.2945 because it represents the weekly support. In the H1 time frame, the RSI and the moving average (100) are still pointing to the upside. Therefore, the market indicates a bullish opportunity at the level of 1.3000. Buy above the minor support of 1.3000 with a target at 1.3089 (this price is coinciding with the ratio of 100% Fibonacci). On the other hand, if the pair closes below the minor support (1.3000), the price will fall into the bearish market in order to go further towards the strong support at 1.2945. Also, the double bottom is seen at the level of 1.2865 on the H1 chart.

Technical levels:

  • Resistance 3: 1.3185
  • Resistance 2: 1.3140
  • Resistance 1: 1.3089
  • Pivot point: 1.3045
  • Support 1: 1.3000
  • Support 2: 1.2945
  • Support 3: 1.2856
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Technical analysis of AUD/USD for October 29, 2018

analytics5bd6d7a5f373f.png

Overview:

The AUD/USD pair faced resistance at the level of 0.7146, while minor resistance is seen at 0.7107 (Pivot point). Support is found at the levels of 0.7043 and 0.6980. Also, it should be noted that a daily pivot point has already set at the level of 0.7107. Equally important, the AUD/USD pair is still moving around the key level at 0.7107, which represents a daily pivot in the H1 time frame at the moment. The AUD/USD pair continued to move upwards from the level of 0.7043. The pair rose from the level of 0.7043 (this level of 0.7043 coincides with the double bottom) to the top around 0.7146. In consequence, the AUD/USD pair broke resistance, which turned strong support at the level of 0.7146. The level of 0.7043 is expected to act as major support today. From this point, we expect the AUD/USD pair to continue moving in the bullish trend from the support level of 0.7043 towards the target level of 0.7146. If the pair succeeds in passing through the level of 0.7146, the market will indicate the bullish opportunity above the level of 0.7146 in order to reach the second target at 0.7179. However, if a breakout happens at the support level of 0.7043, then this scenario may be invalidated.

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

GBP / USD. 29th of October. The trading system. "Regression Channels". The British are signing a petition on the repeated

4-hour timeframe

analytics5bd6c3334164c.png

Technical details:

The senior linear regression channel: direction - up.

The younger linear regression channel: direction - down.

Moving average (20; smoothed) - down.

CCI: -74.9031

The currency pair GBP / USD has started a new trading week with a minimal correction. The five purple-colored bars of the Heikin Ashi indicator are quite small in overall size. Thus, at the moment, it can be concluded that the pair remains in a downtrend with minimal corrections. Today, important macroeconomic reports from the UK are not expected. However, this does not mean that the pound again does not fall under sales. Of course, to determine the completion of the correction, it is recommended to wait until the correction is completed and Heikin Ashi is turned down. Meanwhile, more than a million people have signed a petition to hold a new referendum on secession from the EU. Last weekend, there was a rally against the exit from the EU on the terms of Theresa May. Thus, the situation with Brexit continues to heat up, and Britain, in addition to the political crisis, may be overwhelmed by a wave of social crisis. Now, we are waiting for the new comments from Theresa May, although she had previously stated that there would be no new referendum. We state the fact that with each passing day, there are more and more uncertainties on this topic, and in such conditions, it will be very difficult for a pound to show more or less strong growth.

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 and has begun to be adjusted. Thus, it is not recommended to open new sell-positions until the completion of the correction. Turning the Heikin Ashi indicator down will signal the opening of short positions with a target of 1.2756.

Long positions can be considered after fixing the pair above the moving average line with the first target of 1.3000. However, as before, this will most likely require fundamental reasons, which are not currently available.

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 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. 29th of October. The trading system. "Regression Channels". Positions of US currency remain indestructible

4-hour timeframe

analytics5bd6b3c8e8231.png

Technical details:

The senior linear regression channel: direction - sideways.

The younger linear regression channel: direction - down.

Moving average (20; smoothed) - down.

CCI: -48.1691

The EUR / USD currency pair on Monday, October 29, launched a new round of the corrective movement, having failed to overcome Murray's level of "2/8" - 1.1353. The purple bars of the Heikin Ashi indicator continue to signal a correction. The MA has not yet been worked out, so the correction may continue. On the first trading day of the week in the European Union, no important macroeconomic publications are planned. Form across the ocean today, there will be data on changes in personal spending and incomes of the American population. The forecasts for these reports are neutral, so there is no significant surge in volatility at the time of their release. In general, the technical picture remains the same as last week. The US dollar remains in the lead due to a variety of factors, and the European currency can be adjusted to the maximum of the moving average line. Thus, to break a downtrend will require the fulfillment of one of two conditions. Either it is necessary to wait for the players to get fed up with dollar purchases, or to wait for strong fundamental events in favor of the euro currency. Moreover, it is more likely that such data may come from the United States, and not from the European Union. By the way, Donald Trump did not speak for a long time with "loud" statements.

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 is currently being adjusted. Thus, to open new short positions with a view to the level of 1.1353, it is recommended to wait for the Heikin Ashi indicator to turn down or the price rebound from the moving average line.

Buy-positions will become relevant no earlier than price fixing above the moving with the first target of 1.1475. However, fundamental reasons are still needed for this. Overcoming the MA will change the tendency of the instrument to ascending.

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

GBP / USD: plan for the European session on October 29. Traders took a brea

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

The main task of the buyers of the pound last Friday managed, which led to the breakdown and consolidation above the resistance level of 1.2823. As long as trading is conducted above this range, the demand for GBP / USD will remain, which may hit a number of sellers stop-orders and form a larger upward correction to the highs of 1.2866 and 1.2905, where I recommend fixing the profits. In the event of a decrease in the pound under the support of 1.2823, it is best to count on long positions for a rebound from the new monthly minimum around 1.2733.

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

A return below the level of 1.2823 will be a signal to open short positions in the pound in order to reduce to the support of 1.2777, the breakdown of which will lead to a new downward wave with the update of the lows of 1.2733 and 1.2697, where I recommend fixing the profits. In the case of GBP / USD growth in the first half of the day, you can count on short positions after updating a larger resistance at 1.2866, or a rebound from 1.2905.

Indicator signals:

Moving Averages

Trade is conducted between the 30-day and 50-day average, which indicates further uncertainty in the market direction.

Bollinger bands

The upper limit of the Bollinger Bands indicator around 1.2850 limits the upward potential, but its breakdown will be a signal to buy a pound. The lower limit around 1.2791 may also provide support for GBP / 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

Technical analysis of Gold for October 29, 2018

Gold price continues to trade below the 38% Fibonacci retracement resistance at $1,240. Price is mostly moving sideways in the last few sessions without a clear break out to the upside and at the same time respecting support. Gold could continue higher towards $1,260 and I favor this scenario as long as we hold above $1,215-20.

analytics5bd6b9a6ca882.png

Magenta rectangle - support area

Gold price has stopped its rise right at the 38% Fibonacci retracement resistance. Breaking and closing above $1,240 will be a bullish sign and would most probably push prices towards $1,260. Support is at $1,230 and next at $1,220-15 area. Gold might need one more pull back towards $1,225 before moving higher and breaking above resistance for the final target of $1,260. Breaking below $1,220-15 would make me cancel my bullish short-term view and turn bearish.

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Technical analysis of EUR/USD for October 29, 2018

EUR/USD is challenging short-term resistance at 1.1420-1.1430. Price fell as low as 1.1335 last week and bounced back towards the 1.14 area. Trend remains bearish on a daily basis and we continue to see this upward move as a corrective bounce in a larger down trend.

analytics5bd6b8c517091.png

Black dots - medium strength short-term resistance

Red dots - maximum strength short-term resistance

EUR/USD has resistance at 1.1420 and next at 1.1460. Support is at 1.1385 and next at 1.1335. Trend remains clearly bearish as price is making lower lows and lower highs. I continue to consider this bounce as part of a larger down trend that will eventually bring EUR/USD closer to 1.12. I favor this scenario as long as we trade below 1.1570-1.16.

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

Analysis of the divergence of EUR / USD for October 29. Bearish divergence allows the pair to move to a new fall

4h

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The bullish divergence formed by the CCI indicator allowed the pair to turn in favor of the euro and return to the correction level of 76.4% - 1.1422. The end of the quotes from this Fibo level and the formation of a bearish divergence at the CCI indicator worked in favor of the American currency and the resumption of the fall in the direction of the corrective level of 100.0% - 1.1303. A pair of the last divergence peak or a close above the Fibo level of 76.4% will allow you to count on the resumption of growth of quotations in the direction of the correction level of 61.8% - 1.1497.

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 correctional level of 127.2% - 1.1285. Rebounding the pair from the Fibo level of 127.2% will allow traders to expect a reversal in favor of the European currency and some growth towards the correction level of 100.0% - 1.1553. Fixing quotes under the correction level of 127.2% will increase the likelihood of the pair falling further in the direction of the next correction level of 161.8% - 1.0941.

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

Recommendations to traders:

You can make purchases of the EUR / USD currency pair with a target of 1.1497 and a Stop Loss order below the Fibo level of 76.4% if the pair closes above the 1.1422 correction level.

Sales of the EUR / USD currency pair can be carried out now with the goal of 1.1303 with a Stop Loss order above the Fibo level of 76.4%, since the pair completed the rebound from the correction level of 1.1422 and a bearish divergence has formed.

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Analysis of the GBP / USD Divergences for October 29. Another small respite for the pound

4h

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On the 4-hour chart, the quotes of the GBP / USD currency pair fell to the correction level of 76.4% - 1.2813. Bullish divergence and inaccurate release of the pair from the Fibo level of 76.4% allow traders to expect a reversal in favor of the British currency and some growth in the direction of the correctional level of 61.8% - 1.2905. New emerging divergences on October 29 is not observed in any indicator. Fixing the rate of the pair below the Fibo level of 76.4% will work in favor of resuming the fall in the direction of the next correction level of 100.0% - 1.2662.

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

1h

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On the hourly chart, the pair reversed in favor of the British currency, after the formation of the bullish divergence of the MACD indicator, and the return to the correction level of 127.2% - 1.2833. Rebounding the pair's quotations from the Fibo level of 127.2% will allow traders to expect a reversal in favor of the American currency and a resumption of decline in the direction of the correction level of 161.8% - 1.2718. Closing the course of the pair above the Fibo level of 127.2% will increase the chances for further growth in the direction of the next level of correction 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 GBP / USD currency pair will be possible with the target of 1.2718 and a Stop Loss order above the level of 127.2% if the pair rebounds the correction level of 1.2833 (hourly chart).

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

EUR / USD: plan for the European session on October 29. US GDP data led to a fall in the US dollar

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

Euro buyers managed to return a number of positions after a weak report on US GDP growth in the 3rd quarter of this year. At the moment, the main task of the bulls is a breakthrough and consolidation above the resistance level of 1.1405, which will lead to the continuation of the upward correction with the update of the highs around 1.1438 and 1.1474, where I recommend fixing the profits. In the event of a decline in the euro in the first half of the day, long positions can be seen on the rebound from the support level of 1.1367, where the lower limit of the new ascending channel can be formed. Otherwise, you can buy EUR / USD for a rebound from 1.1337.

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

Sellers need to form a false breakdown at the resistance level of 1.1405 or keep the pair below the upper limit of the downward channel, which is slightly higher, which will lead to the formation of new pressure on the euro, with the update of support for 1.1367 and 1.1337, where I recommend fixing the profits. In the case of growth above the resistance of 1.1405 in the first half of the day, short positions can be returned to the rebound from the level of 1.1438.

Indicator signals:

Moving Averages

Trade has moved above the 30-day and 50-day average, which indicates the continuation of the formation of the upward correction in the euro.

Bollinger bands

The upper limit of the Bollinger Bands indicator in the 1.1430 area limits the upward potential. Open long positions in the event of a decline in the euro can be on the rebound from the lower boundary of the indicator, which is now located in the area of 1.1340.

analytics5bd6acdc73acf.png

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

Fractal analysis of major currency pairs on October 29

Dear colleagues.

For the currency pair Euro / Dollar, the price is in the correction of the downward structure on October 16. 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 price is still in a correction from the upward trend. For the currency pair Dollar / Yen, we should continue the downward movement on October 22 after the breakdown of 111.63. For the Euro / Yen currency pair, we expect further downward movement after the breakdown of 127.17. For the currency pair Pound / Yen, there is a high probability of turning into a correction from the range of 143.84 - 143.19 and the formation of potential for the top.

Forecast for October 29:

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. At the moment, the price is in the correction. 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, the stage of correction.

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 rising structure of October 15. At the moment, the price is in correction. The short-term upward movement is expected in the range of 1.0038 - 1.0066, as well as consolidation. The breakdown of the level 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, to the level of 0.9914. We expect the initial conditions for the downward cycle.

The main trend is the rising structure of October 15, the stage of correction.

Trading recommendations:

Buy: 1.0040 Take profit: 1.0066

Buy: 1.0070 Take profit: 1.0108

Sell: 0.9960 Take profit: 0.9938

Sell: 0.9934 Take profit: 0.9916

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For the Dollar / Yen currency pair, the key levels on the scale of H1 are: 112.88, 112.53, 112.21, 112.02, 111.63, 111.27, 111.02 and 110.70. Here, we are following the downward structure of October 22. The continuation of the downward movement is expected after the breakdown of 111.63. In this case, the goal is 111.27 and in the range of 111.27 - 111.02 is the consolidation. We consider the level of 110.70 as a potential value for the bottom, after reaching which we expect a rollback to the top.

The short-term upward movement is possible in the range of 112.02 - 112.21 and the breakdown of the latter value will lead to a prolonged correction. Here, the goal is 112.53 and this level is the key support for the downward structure.

The main trend is the downward structure of October 22.

Trading recommendations:

Buy: 112.03 Take profit: 112.20

Buy: 112.54 Take profit: 112.86

Sell: 112.60 Take profit: 111.28

Sell: 111.26 Take profit: 111.04

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For the Canadian dollar / Dollar currency pair, the key levels on the H1 scale are: 1.3269, 1.3222, 1.3191, 1.3168, 1.3122, 1.3060, 1.3029 and 1.2996. Here, we are following the local structure for the top of October 24th. The upward movement is expected after the breakdown of the level of 1.3122. In this case, the target is 1.3168 and in the range of 1.3168 - 1.3191 is the consolidation. The breakdown of the level of 1.3191 will lead to the movement to the level of 1.3222, near this level is the consolidation. The potential value for the top is considered the level of 1.3269, after reaching which we expect a rollback to the correction.

The short-term downward movement is possible in the range of 1.3060 - 1.3029, hence a high probability of a reversal upwards. The breakdown of the level of 1.3029 will lead to a prolonged correction. Here, the target is 1.2996.

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

Trading recommendations:

Buy: 1.3122 Take profit: 1.3166

Buy: 1.3192 Take profit: 1.3220

Sell: 1.3060 Take profit: 1.3033

Sell: 1.3027 Take profit: 1.2998

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For the currency pair Australian dollar / Dollar, the key levels on the H1 scale are: 0.7189, 0.7167, 0.7136, 0.7110, 0.7082, 0.7062, 0.7040 and 0.7017. Here, the price forms the potential for the top of October 26. The short-term upward movement is possible in the range of 0.7110 - 0.7136 and the breakdown of the latter value will lead to a pronounced movement. Here, the target is 0.7167. The potential value for the top is considered to be the level of 0.7189, after reaching which we expect consolidation.

The short-term uptrend is possible in the range of 0.7082 - 0.7062 and the breakdown of the last value will lead to a prolonged correction. Here, the goal is 0.7040 and this level is the key support for the upward structure.

The main trend is the formation of potential for the top of October 26.

Trading recommendations:

Buy: 0.7110 Take profit: 0.7134

Buy: 0.7138 Take profit: 0.7165

Sell: 0.7080 Take profit: 0.7063

Sell: 0.7060 Take profit: 0.7040

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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. At the moment, the price is in the correction. 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, the stage of correction.

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, as well as consolidation, are possible in the range of 143.84 - 143.19. The breakdown of the latter value will lead to the 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

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