The dollar is preparing for elections

The report on the US labor market in October came out confidently strong, giving additional arguments to the Federal Reserve in raising interest rates at least to a neutral level. Two hundred and fifty thousand new jobs were created, which significantly exceeded the forecast of 190 thousand. The level of labor force participation rose to 62.9% against 62.7% a month earlier while the average workweek grew from 34.4 to 34.5 hours. The average hourly wage increased by 0.2 %, which is lower than the growth of 0.3% in September, but in annual terms, the growth was 3.1%.

The latter indicator is especially important because it allows you to predict expectations for inflation. The higher the wage growth equates to a higher consumer demand. Then, the higher the prices will lead to more confident the expectations at the Fed rate. The growth of 3.1% is the maximum in the last 10 years, but it will need confirmation in the coming months since it is largely due to low rates a year ago. Without confirmation that wages are rising with acceleration, the threat of overheating of the US economy will remain just re-election rhetoric.

RBVuUO9lNLcxsaphcBh-qA6HfuLI8JxWFp7tbJST

The dollar reacted to the release of growth report, but the movement was rather sluggish since overall the results coincided with forecasts. Besides, the attention of the markets was largely focused on the upcoming elections to the US Congress.

For Trump, there is a real risk of losing control of the financial markets. Constituting 435 seats in the Senate are at stake. Polls indicate that at least one vote will be received. Democrats oppose Trump's tax reform and intend to cancel it. In the case of their victory, will be raised in the very near future. It can be a question. But in any case for Trump.

Understanding that part of his decisions was unpopular as Trump partially won back. He announced his readiness to hold talks with China and introduced relief for happy countries on Iranian sanctions. Also, pressure from Turkey was removed but these efforts may not be enough to keep control of Congress. If the Democrats get a majority in both chambers, a strong dollar decline will be possible, since the trend to strengthen it was set just by Trump, tax reform and geopolitical decisions. In this case, Trump will lose the opportunity to expand tax reform, which will increase the likelihood of impeachment or at least reduce the likelihood of winning the next presidential election. The CFTC report, published on Friday, showed that the preponderance of the bulls began to decline. Speculators are preparing for a possible reversal of the dollar.

Eurozone

For the euro today, important news is not expected, the Sentix group will publish an indicator of investor confidence, which is expected to show a decline after similar research from Ifo and Gfk. The euro looks uncertain but will trade in the range of 1.1335 to 1.1455 in anticipation of news from the US.

Great Britain

For the pound, the start of the week promises to be quite rich. On Monday, the PMI Markit index on the service sector will be published. The expectations are negative and Lloyd's business barometer published a little earlier indicates a likely fall.

XZgQNMiQ6g0jHYc22x1n8CexnLqd7m6A_Hy65Q3Z

On Friday, the first estimate of GDP growth rates in Q3 will be published. It will most likely be weak, which will lead to an increase in pressure on the pound by the end of the week.

As for Brexit, there are no events scheduled this week, however, the likelihood of another EU summit in mid-November is growing. On Sunday, there was news with reference to Theresa May that the agreement is already 95% ready, which is currently the main driver for the pound.

The GBP / USD pair will try to update the recent high of 1.3035 and the overall decrease in tension will push the pound up at least until the end of the week.

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

EUR/USD analysis for November 05, 2018

analytics5be02dfe8097a.png

Recently, the EUR/USD pair has been trading downwards. The price tested the level of 1.1367. According to the H1 time – frame, I have found the potential end of the upward correction (expanded flat abc) in the background, which is a sign that buying looks risky. Most recently. I found the breakout of the intraday symmetrical triangle, which is a sign of weakness. My advice is to watch for selling opportunities. The downward target is set a the price of 1.1303.

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

Technical analysis of USD/CHF for November 05, 2018

analytics5be025178b77c.png

Overview:

Pivot: 0.9951.

The USD/CHF pair continues to move upwards from the level of 0.9951. Today, the first support level is currently seen at 0.9951, the price is moving in a bullish channel now. Furthermore, the price has been set above the strong support at the level of 0.9951, which coincides with the daily pivot point. This support has been rejected three times confirming the veracity of an uptrend. According to the previous events, we expect the USD/CHF pair to trade between 0.9951 and 1.0058. So, the support stands at 0.9951, while daily resistance is found at 1.0058. Therefore, the market is likely to show signs of a bullish trend around the spot of 1.0058. In other words, buy orders are recommended above the spot of 1.0058/0.9951with the first target at the level of 1.0142; and continue towards 1.0216. However, if the USD/CHF pair fails to break through the resistance level of 1.0058 today, the market will decline further to 0.9860.

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

Technical analysis of USD/CAD for November 05, 2018

analytics5be023614df08.png

Overview:

Pivot point: 1.3053.

The USD/CAD pair continues to move upwards from the level of 1.3053. Last week, the pair rose from the level of 1.3053 (the level of 1.3053 coincides with a ratio of 61.8% Fibonacci retracement) to a top around 1.3140. Today, the first support level is seen at 1.3053 followed by 1.3003, while daily resistance 1 is seen at 1.3140. According to the previous events, the USD/CAD pair is still moving between the levels of 1.3053 and 1.3140; for that we expect a range of 87 pips (1.3140 - 1.3053). On the four-hour chart, immediate resistance is seen at 1.3140, which coincides with last bearish wave. Currently, the price is moving in a bullish channel. This is confirmed by the RSI indicator signaling that we are still in a bullish trending market. The price is still above the moving average (100). Therefore, if the trend is able to break out through the first resistance level of 1.3140, we should see the pair climbing towards the daily resistance at 1.3224 to test it. It would also be wise to consider where to place stop loss; this should be set below the second support of 1.3003.

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

AUD/USD analysis for November 05, 2018

analytics5be01f11a2ca6.png

Recently, the AUD/USD pair has been trading sideways at the price of 0.7195. Anyway, according to the M15 time – frame, I have found a potential end of the upward correction (regular flat abc), which is a sign that buying looks risky. The short- term trend is bearish and my advice is to watch for selling opportunities. The downward targets are set at the price of 0.7182 and at the price of 0.7122.

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

Bitcoin analysis for November 05, 2018

analytics5be0159a0f9cb.png

Trading recommendations:

According to the H1 time - frame, I found a potential end of the downward correction (expanded flat abc), which is a sign that selling looks risky. The level of $6.346 is the key short – term support and my advice is to watch for buying opportunities around this level. The upward target is set at the price of $6.436/

Support/Resistance

$6.436 – Intraday resistance

$6.346– Intraday support

$6.436 – 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

Analysis of GBP / USD Divergences for November 5. Thinking of the Pound sterling

4h

P7YkKhqVHmHsmXXoks_phI_ZwufVN-aRA37oJ17W

On the 4-hour chart, the Monday trading session began above the correction level of 50.0% at 1.2995. A fixation below the Fibo level of 50.0% will allow traders to rely on the reversal of the pair in favor of the US currency and a slight decline in the direction of the correctional level of 38.2% at 1.2925. No emerging divergence on November 5th was observed. The absence of closing below the Fibo level of 50.0% will work in favor of resuming growth in the direction of the correction level of 61.8% at 1.3066.

The net Fib was built on boundaries from September 20, 2018 and October 30, 2018.

1h

Kx9RpgqRWy9FiZxvhcHkhLtPLd4hnBUDaPQ3y518

On the hourly chart, the pair closed above the Fibo level of 50.0% at 1.2978 and began the process of returning to this level. Rejection of quotes from the correction level of 50.0% will work in favor of the British currency and the resumption of growth in the direction of the correctional level of 61.8% at 1.3044. There are no emerging divergences today. Fixing the rate of the pair below the Fibo level of 50.0% will work in favor of the US dollar and a slight decline in the direction of the correction level of 38.2% - 1.2912.

The net Fib was built on boundaries from October 12, 2018 and October 30, 2018.

Recommendations to traders:

Purchases of the GBP / USD pair can be carried out with targets at 1.3044 and 1.3125 and a Stop Loss order under the correction level of 50.0% if the pair bounces off at 1.2978 (hourly chart).

Selling the GBP / USD pair will be possible with a target of 1.2912 and a Stop Loss order above the 50.0% level if the pair closes below the correction level of 1.2978 (hourly chart).

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

Trading plan

Trading Plan 05/11/2018

The overall picture:

Since November 5, the United States resumed sanctions against Iran. However, it has been the case for sanctions for the agreement with Iran.

It will make it possible to decide whether or not to go for it. to overcome the resistance of the opposition.

The main thing about the meeting on the Wednesday, November 7th. Markets are up to date.

For brexit. It is a strong outcome.

Pound: We buy from the rollback not higher than 1.2935.

Alternative - we sell from 1.2690.

analytics5bdffbe5671b3.jpg

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

Simplified Wave Analysis. USD / JPY review for the week of November 5

Wave pattern graphics H 4:

On the beginning of June 19, in the daytime wave, this section has become a correction (B).

Wave pattern graphics H1:

Wave design from October 3 forms a downward zigzag. The wave lacks the final part (C).

analytics5bdfe2de3b4b1.jpg

Wave pattern graphics M15:

The rising wave of October 26 completes the larger bullish pattern, which has formed the "expanding triangle" figure on the chart.

analytics5bdfe2eb27a1f.jpg

Recommended trading strategy:

The price for the decline in the near future. For the completion of the current waveform.

Resistance zones:

- 113.30 / 113.80

Support areas:

- 110.70 / 110.20

Explanations to the figures: The simplified waveform analysis (A - B - C). For the analysis, the main TFs are used. Zones show calculated areas with the highest probability of reversal.

The arrows indicate the number of wave markings used by the author. The solid background shows the formed structure.

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

Forecast for GBP / USD pair on November 5, 2018

GBP / USD pair

There are no data points for the US employment rate of 44 points. The intersection point of the correlation of the correlation of the curve with the indicator. It can be deepened to the Fibonacci level of 38.2% at 1.2910. The correction may decline to the support of the MACD line on the four-hour chart at 1.2863.

Today, the forecast for the index of business activity in the UK service sector is 53.4 in October against 53.9 a month earlier. This can also be a factor in favor of the downward movement in the near future. On Wednesday morning, the results of the elections to the US Congress will be known. They will be the cause of the expected strong speculative movements in the market. At the same time, Friday is expected to yield positive economic data for the UK. The GDP for the third quarter is expected to increase by 0.6% versus 0.4% in the 2nd quarter. The manufacturing production may show an increase of 0.1% in September after a decline ofem-0.2% in August. That is, if major players want to play strongly against the dollar, they will have a lot of formal justifications in reserve. The first goal in the growth scenarios is the resistance of the embedded trend line in the price channel around 1.3178.

0LPSXS5ynfd2OQITZAz3aAX8icCDeEs8ZVAX-LhU

The downward movement sets the next target for the players at 1.2820, which is the area of coincidence of the Fibonacci level with the support of the graphic trend line for the daily support in the underlying trend line at 1.2602.

YRHt87iIm3XkZXLetk56LZoYTKoo6fLgVysZ7nDQ

With such heated political struggle in the United States, it is almost impossible to predict the reaction of the market to the election results, whatever they may be. In general, it is believed that if the Democrats win with a slight advantage, although a victory with a big advantage is not predicted for any wing then the dollar will weaken. But this is contrary to the discussions two years ago during the presidential elections, it was believed that the victory of Democrat Clinton would strengthen the dollar.

In general, we believe that after the completion of the growing speculative growth in the results of the elections, that is if this growth takes place. The markets will return to the strengthening the dollar on all fronts. Only in the history of the pound of great importance are negotiations on Brexit.

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

Forecast for EUR/USD for November 5, 2018

EUR/USD

Last Friday, the US labor market data was excellent; 250 thousand new jobs were created in the non-agricultural sector in October, the share of the economically active population increased from 62.7% to 62.9%, the average wage increased by 0.2%. At the end of the day, the euro fell by 18 points, but without the speculative movements that we expected in both directions. This may indicate that the offers in the level of 1.1450 are strong enough and such speculation on strong data loses its meaning. If so, then you can wait for the price to return to the original positions at 1.1300. The price of 12 pips did not reach the downward line of the price channel, but this is not a prerequisite for the trend reversal.

woDOJoLZ0MV5qKkZgAnHCIdiUPHAqzXEo-VdKHop

On the other hand, the stock market prevented the strengthening of the dollar. Despite the good data, the S&P 500 lost 0.63%, the Nasdaq even -1.04%. On the debt market, the 5-year US government bonds added to the yield from 2.965% to 3.042%. The market even dismissed the prospects of a high-quality US trade agreement with China, which is planned to be concluded on December 1 at the G-20 summit. Such a reaction implies an increase in the cash cache of investors and the potential for a repeated attack of the range of 1.1450-1.1500 in more suitable conditions. With this option, it is likely that the market will be delayed at the Krusenstern line on the daily chart (1.1520) and further growth to the high of October - 1.1622.

In the current situation, we do not see the binding of movements in the market to the elections to the US Congress, which will be on the 6th. But the actual election results can be the reason for strong speculative attacks. Perhaps for this reason they were not on Friday - the action received a delay.

N8aA9-OBSFY0xVvYtlJFFuiUw6Fjn-hcGQo5Y1N7

On the four-hour chart, the bullish sentiment remains - the price is above all indicator lines, and the Marlin oscillator has a growth pattern.

On the daily chart, the situation is formally decreasing, but the hidden convergence of the price with the Marlin indicator fits into the scenario of continued growth. The situation is not trading, we are waiting for developments.

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

Forecast for AUD/USD for November 5, 2018

AUD/USD

In the past two days, the Australian dollar added more than 180 points. The price came out of the 10-month price channel that is moving down, and now it has acquired a new look:

yQXoh4ElUu9D25RPjg9XwFyBnSX-K053-Q8KoMlv

Apparently, the "aussie" decided to take part in a big financial game on the occasion of the elections to the US Congress. The goals of this game are unclear. We do not think that a small change in the qualitative composition of Congress will change the policy of the Federal Reserve or other state and supranational institutions. If there is a price surge up, which will be definitely corrective, since even without an election, a 10-month trend would require detente at any other important event (Brexit), and upon its completion a downtrend will return, we see the following immediate targets: 0.7251, 0.7316 . If there is no price surge, the goals can be defined as follows: 0.7097 - support for the nearest nested trend line in the price channel, 0.6930 - support for another, downstream trend line. On the way to 0.7097 in front of the price, there is an intermediate support in the form of a Krusenstern trend line on the daily chart.

mjc6gl2Bgvua0mf9Iu2VK0GkoXPLvqeJdKtOElhT

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

GBP/USD: Plan for the European session on November 5. The movement of the pound will depend on the PMI data of the service

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

Today, all the movement of the pound will be formed by the data on the PMI index for the service sector, which will set the direction at the beginning of this week. Buyers of the GBP/USD need a breakout and consolidation above the resistance of 1.3020, which will lead to a further upward wave in the area of the highs of 1.3085 and 1.3145, where I recommend to take profit. In case the pound declines on the data, buying can be seen after the formation of a false breakdown in the support area of 1.2969 or a rebound from the low of 1.2907, where it will be possible to build a lower boundary of the new upward channel.

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

Sellers of the pound will try to form a false breakout at the level of 1.3020, which will lead to profit taking on long positions and to a decrease in the support area of 1.2969. Consolidation under this level, after weak data on the PMI index for the service sector, will push the GBP/USD to the lows of 1.2907 and 1.2844, where I recommend taking profits. In case of growth above 1.3020 in the first half of the day, short positions can be returned to a rebound from the highs of 1.3085 and 1.3145.

Indicator signals:

Moving averages

Trade is conducted in the region of the 30-day and 50-day average, which indicates a decrease in market volatility in front of important data.

Bollinger bands

A break of the upper border of the Bollinger Bands indicator around 1.3030 will be a signal to buy the pound, while a break of the lower border around 1.2948 will lead to a new wave of selling the GBP/USD.

LlFtmSCSQkCH_TLLwtzgT3nUptXor7dNV-M82J_G

Indicator description

Moving Average (average sliding) 50 days - yellow

Moving Average (average sliding) 30 days - green

MACD: fast EMA 12, slow EMA 26, SMA 9

Bollinger Bands 20

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

Indicator analysis. Daily review on November 5, 2018 for the pair EUR / USD.

Trend analysis (Fig. 1).

On Monday, an upward trend is expected with the first target of 1.1449 - 21 average EMA (black thin line).

eurusd-d1-instaforex-companies-group.png

Fig. 1 (daily schedule).

Comprehensive analysis:

- indicator analysis - up;

- Fibonacci levels - up;

- volumes - down;

- candlestick analysis - down;

- trend analysis - up;

- Bollinger lines - up;

- weekly schedule - up.

General conclusion:

On Monday, an upward trend is expected with the first target of 1.1449 - 21 average EMA (black thin line).

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

EUR/USD: Plan for the European session on 5 November. The report on the US labor market helped the dollar to regain its

To open long positions for EURUSD, it is required:

Euro buyers quickly left the market after the release of more than a good report on the US labor market, which continues to show phenomenal performance. At the moment, buyers of the EUR/USD need to return with a consolidation above the resistance of 1.1408, from which the demand for the euro will return, which will allow a renewal of the upward correction, which gradually develops into a new trend. The goal will be to update the high of last week in the area of 1.1453 with an exit to the resistance of 1.1516, where I recommend to take profit. In case the euro declines in the first half of the day, it is best to return to long positions on a false breakout from 1.1373 or a rebound from 1.1340.

To open short positions for EURUSD, it is required:

Sellers need to form a false breakout at the resistance level of 1.1408, and then return and gain a foothold below the important support level of 1.1373. This will allow you to resume the downtrend and break the lower limit of the new upward channel, which will lead to updating the lows of last week 1.1340 and 1.1304, where I recommend taking profits. If the euro rises above the resistance of 1.1408 in the first half of the day, sales can be returned to the rebound from 1.1453.

Indicator signals:

Moving averages

Trading has returned below the 30-day and 50-day average, and the unfortunate consolidation above the moving will be a signal to open short positions in the euro.

Bollinger bands

In case the euro declines, support will be provided by the lower line of the Bollinger Bands indicator, which is located in the area of 1.1360, from which you can buy on a rebound. With the growth of the EUR/USD above 1.1408, the upward potential will be limited to the upper boundary of the channel in the region of 1.1440, from which you can sell for a rebound.

d77ZSF3sm9hj3EkDEgVD-k6zDgeWkwxETuq3VPLz

Indicator description

Moving Average (average sliding) 50 days - yellow

Moving Average (average sliding) 30 days - green

MACD: fast EMA 12, slow EMA 26, SMA 9

Bollinger Bands 20

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

Control zones AUDUSD 05.11.18

At the end of last week, there was a strong growth of the pair which led to the implementation of the priority upward model. Any decrease at the beginning of the current week is corrective which allows you to search for favorable prices for the purchase of an instrument.

Today, the pair is trading within the NKZ 1/2 0.795-0.7189, which is an important support. It is a long-term impulse. If you are a woman of the week, it will be transferred to break even. Favorable prices for the purchase are within the NKZ 1/2. Stop must be made at least Friday. In this case, the ratio of risk to return will be greater than 1: 3.

analytics5bdfe432444d7.png

It is important to note that it is not a problem. This is a reduction to a weekly short circuit.

The American session below shows the NKZ 1/2 0.7195-0.7189. If this happens, the goal will be the CP 0.7133-0.7120, where it will be determined. Weekly short circuit. It is a short-term profit.

analytics5bdfe52b2bd95.png


Daily CZ - daily control zone. The area formed by the market, which change several times a year.

Weekly fault - weekly control zone. The zone is formed by the market of the futures market, which change several times a year.

Monthly fault - monthly control zone. The zone, which is a volatility over the past year.

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

Fractal analysis of major currency pairs for November 5

Dear colleagues.

On the Euro / Dollar pair, the upward structure of October 31 is expected to develop after the breakdown of 1.1424. The pair Pound / Dollar is expected to continue moving up after the breakdown of 1.3020. The pair Dollar / Franc price is still in the zone of initial conditions for the downward movement of October 31, level 1.0057 key support. On the pair Dollar / Yen, the development of the main trend is expected after the breakdown of 113.46. For the Euro / Yen pair, we expect movement to the level of 129.50, we consider the downward movement as a correction. For the pair Pound / Yen, we have expanded the potential for the upward cycle to the level of 148.40.

Forecast for November 5:

Analytical review of H1-scale currency pairs:

analytics5bdf92fdd652d.png

For the Euro / Dollar pair, the key levels on the H1 scale are: 1.1538, 1.1508, 1.1463, 1.1424, 1.1389, 1.1371, 1.1344 and 1.1299. Here, the price forms the potential for the top of October 31. Upward movement is expected after the breakdown of 1.1424, in this case, the target is 1.1463, price consolidation near this level. The breakdown of the level 1.1465 should be accompanied by a pronounced upward movement, here the target is 1.1508. The potential value for the top is considered the level of 1.1538, upon reaching which we expect consolidation, as well as a rollback to the correction.

Short-term downward movement is possible in the corridor 1.1389 - 1.1371, the breakdown of the latter will lead to the development of a prolonged correction, here the target is 1.1344, this level is a key support for the upward structure.

The main trend - the formation of potential for the top of October 31.

Trading recommendations:

Buy 1.1424 Take profit: 1.1460

Buy 1.1465 Take profit: 1.1508

Sell: 1.1370 Take profit: 1.1346

Sell: 1.1342 Take profit: 1.1308

analytics5bdf933088c6b.png

For the Pound / Dollar pair, the key levels on the H1 scale are 1.3233, 1.3154, 1.3090, 1.3019, 1.2974, 1.2932 and 1.2866. Here we are following the ascending structure of October 30. Upward movement is expected after breakdown of 1.3019, in this case the target is 1.3090, consolidation near this level, its breakdown will lead to movement up to 1.3154. The potential value for the top is considered the level of 1.3233, from which we expect the development of a prolonged correction.

Short-term downward movement is possible in the corridor 1.2974 - 1.2932, the breakdown of the latter value will lead to a prolonged correction, here the target is 1.2866, this level is a key support for the top.

The main trend is the ascending structure from October 30.

Trading recommendations:

Buy: 1.3020 Take profit: 1.3090

Buy: 1.3093 Take profit: 1.3152

Sell: 1.2974 Take profit: 1.2935

Sell: 1.2930 Take profit: 1.2870

analytics5bdf936b7f4dd.png

For the Dollar / Frank pair, the key levels on the H1 scale are: 1.0093, 1.0057, 1.0037, 0.9994, 0.9964, 0.9944 and 0.9918. Here, the price forms the potential for downward movement of October 31. Continuation of the downward movement is expected after the breakdown of 0.9994, in this case the target is 0.9964, in the corridor 0.9964 - 0.9944 price consolidation. The potential value for the bottom is considered the level of 0.9918, after reaching which we expect a rollback to the top.

Short-term upward movement is possible in the corridor 1.0037 - 1.0057, the breakdown of the latter value will have to form an ascending structure, in this case the goal is 1.0093.

The main trend - the formation of a downward structure of October 31.

Trading recommendations:

Buy: 1.0037 Take profit: 1.0055

Buy : 1.0063 Take profit: 1.0090

Sell: 0.9994 Take profit: 0.9967

Sell: 0.9962 Take profit: 0.9948

analytics5bdf93babee88.png

For the Dollar / Yen pair, the key levels on a scale are 114.48, 114.21, 113.77, 113.46, 113.13, 112.44 and 112.13. Here we are following the development of the ascending cycle of October 26. Upward movement is expected after breakdown of 113.13, in this case the first target is 113.46. Short-term upward movement is possible in the corridor 113.46 - 113.77, the breakdown of the last value should be accompanied by a pronounced upward movement, here the goal is 114.21. The potential value for the top is considered the level of 114.48, after reaching which we expect a rollback downwards.

The range 112.44 - 112.13 is a key support for the upward structure, in it we expect a short-term downward movement, as well as a key upward reversal. Breakdown of the level of 112.13 will lead to the formation of the initial conditions for the downward cycle.

The main trend: the ascending cycle of October 26, the stage of correction.

Trading recommendations:

Buy: 113.13 Take profit: 113.44

Buy: 113.48 Take profit: 113.75

Sell: 112.44 Take profit: 112.20

Sell: Take profit:

analytics5bdf93fd76b11.png

For the Canadian dollar / Dollar pair, the key levels on the H1 scale are: 1.3269, 1.3222, 1.3191, 1.3168, 1.3089, 1.3060 and 1.3021. Here we are following the local structure for the top of October 24, at the moment the price is in a protracted correction. Upward movement is expected after the price passes the noise range of 1.3168 - 1.3191, in this case the first target is 1.3222, consolidation near this level. The potential value for the top is considered the level of 1.3269, after reaching which we expect a rollback to the correction.

Short-term downward movement is possible in the corridor 1.3089 - 1.3060, hence a high probability of a reversal upwards, a breakdown of the level 1.3060 will lead to a prolonged correction, here the target is 1.3021.

The main trend is the local structure of October 24, the stage of deep correction.

Trading recommendations:

Buy: 1.3191 Take profit: 1.3220

Buy: 1.3224 Take profit: 1.3269

Sell : 1.3089 Take profit: 1.3062

Sell: 1.3058 Take profit : 1.3024

analytics5bdf9416e7a48.png

For the Australian dollar / dollar pair, the key levels on the H1 scale are : 0.7189, 0.7167, 0.7136, 0.7110, 0.7062, 0.7040 and 0.7017. Here we are following the rising structure of October 26, at the moment the price is in the correction. Short-term upward movement is possible in the corridor 0.7218 - 0.7237, the breakdown of the latter value will allow to expect movement towards a potential target - 0.7276, upon reaching this level we expect a rollback downwards.

Short-term downward movement is possible in the corridor 0.7189 - 0.7167, breaking the last value will lead to a prolonged correction, here the target is 0.7136, this level is a key support for the top.

The main trend is the upward cycle of October 26, the stage of correction.

Trading recommendations:

Buy: 0.7218 Take profit: 0.7235

Buy: 0.7240 Take profit: 0.7274

Sell : 0.7187 Take profit : 0.7170

Sell: 0.7165 Take profit: 0.7143

analytics5bdf9451eab20.png

For the Euro / Yen pair, the key levels on the H1 scale are: 130.55, 129.93, 129.50, 128.58, 128.29 and 127.82. Here we are following the rising structure of October 26. Short-term upward movement is expected in the corridor 129.50 - 129.93, the breakdown of the last value will lead to the movement to the potential target - 130.55, after reaching which we expect a rollback to the correction.

Short-term downward movement is possible in the corridor 128.58 - 128.29, the breakdown of the last value will lead to a prolonged correction, here the goal is 127.82, this level is a key support for the top.

The main trend is the upward structure of October 26.

Trading recommendations:

Buy: 129.50 Take profit: 129.90

Buy: 130.00 Take profit: 130.50

Sell: 128.55 Take profit: 128.33

Sell: 128.25 Take profit: 127.90

analytics5bdf949273431.png

For the Pound / Yen pair, the key levels on the H1 scale are: 148.40, 147.78, 147.29, 146.53, 146.10 and 145.40. Here we are following the ascending cycle of October 26th. Short-term upward movement is possible in the corridor 147.29 - 147.78, the breakdown of the latter value will lead to movement to the potential target - 148.40, upon reaching this level we expect a rollback downwards.

Short-term downward movement is possible in the corridor 146.53 - 146.10, the breakdown of the latter value will lead to a prolonged correction, here the target is 145.40, this level is a key support for the upward structure.

The main trend is the upward cycle of October 26.

Trading recommendations:

Buy: 147.30 Take profit: 147.74

Buy: 147.85 Take profit: 148.40

Sell: 146.50 Take profit: 146.15

Sell: 146.05 Take profit: 145.50

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

Indicator analysis. Daily review on November 5, 2018 for the pair GBP / USD

On Monday, the price will move up, with the first goal of 1.3066 - the rolling level of 23.6% (yellow dotted line).

gbpusd-d1-instaforex-companies-group-2.p

Fig. 1 (daily schedule).

Comprehensive analysis:

- indicator analysis - up;

- Fibonacci levels - up;

- volumes - up;

- candlestick analysis is neutral;

- trend analysis - up;

- Bollinger lines - up;

- weekly schedule - up.

General conclusion:

On Monday, the price will move up, with the first goal of 1.3066 - a rolling level of 23.6% (yellow dotted line).

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

Trading plan for 05/11/2018

On Monday, the Asian stock market shines red, but the currency market is calm. The pound is the strongest on the foreign exchange market. The UK media reports that Prime Minister May has a secret plan that will ensure an agreement on Brexit and will be approved by the parliament. GBP / USD initially jumped to 1.3050 after the report, but then it started to move back and is now at 1,3005. The rest of the market is relatively stable. EUR / USD is staying just under 1.14, where it hit on Friday on press speculation that the ECB is preparing another round of cheap liquidity loans for commercial banks. Since then, however, three sources have told Reuters that nothing like that is planned in the near future.

On Monday, the 5h of November, the event calendar is light in important data releases, but the global investors should pay attention to PMI Services and PMI Composite data from the UK and ISM Non-Manufacturing data from the US. There is a speech from BOC Governor Stephen Poloz scheduled later in the day.

EUR/USD analysis for 05/11/2018:

According to the MNI agency, the European Central Bank is considering implementing a fresh round of TargetedLlonger-Term Refinancing Operation, TLTRO. The prospect of a new loosening of monetary policy hits EUR across the board, but there is no official confirmation from the ECB. Nevertheless, if the information was confirmed, it would be an important turn in the ECB's strategy, especially in the face of EC budget dispute with Italy and the implications for European banks involved in investing in Italian debt.

Let's now take a look at the EUR/USD technical picture at the H4 time frame. The market has briefly broken out above the technical resistance at the level of 1.1444, but then it reversed quickly and currently is trading around the level of 1.1370. The nearest support is seen at the level of 1.1360 and 1.1345, so if the momentum will change from neutral to negative, those two levels will be tested. If, however, the bulls will get back the control over the market and break through the resistance at the level of 1.1444, then the next target for them is seen at the level of 1.1497 and even 1.1533.

analytics5bdfee4d7132a.jpg

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

Global macro overview for 05/11/2018

The Governor of the Bank of Japan had his speech overnight. Kuroda said the market situation has improved somewhat since the last monetary policy adjustment that took place in July. The central bank is aware that a very loose policy affects the stability of the financial market. Commercial banks take on more risk than usual, which may be problems in the future.

As yet, the risk of financial destabilization is small, but the Bank of Japan monitors its development on an ongoing basis. Currently, the biggest risk factor is external factors, primarily economic protectionism of large economies. The tightening of monetary policy will start only after reaching the inflation target of 2.0%.

Let's now take a look at the USD/JPY technical [picture at the H4 time frame. The market is still trading below the technical resistance at the level of 113.28 - 113.38 zone, but the market conditions are still positive and indicate a possible move upward. The local support is seen at the level of 112.88 and 112.55, so as long as the price is trading above those levels the outlook remains bullish.

analytics5bdfe36a166bb.jpg

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

Global macro overview for 05/11/2018

The British newspapers report that the British Prime Minister has succeeded in negotiating with representatives of the European Union. The United Kingdom is to remain in the customs union. Information, for now, comes from an undisclosed source.

Northern Ireland will not be treated in any special way. This probably solves the problem of the hard Irish border and paves the way for an agreement on Brexit. At the same time, May is on the way to a political agreement on the future of the economic partnership. Such a move would allow free trade with the EU.

Last week there were reports that the agreement could be reached by Tuesday. The outcome of the negotiations - if the news is true - is so favorable for the United Kingdom that it should be approved by the government and the parliament. Probably Theresa May will be able to secure his position on the prime minister's chair.

Let's now take a look at the GBP/USD technical picture at the H4 time frame. The pair reacted positively to the published information. The price in the new week opened with a gap up of around 60 pips. Since then, increases have already been slightly negated and the cable has returned below the round level of 1.30. The level of 61% Fibo at 1.3029 is still preventing any bullish rallies, just as the technical resistance at the level of 1.3041. Please notice, the market conditions are now overbought and the momentum is weaker than on the way upward, so a short-term pullback might occur any time soon. The nearest technical support is seen at the level of 1.2940-1.2920.

analytics5bdfe1a0cba33.jpg

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

Bitcoin analysis for 05/11/2018

In an official statement, the Ukrainian government confirmed its plans to establish a legal framework for the legalization of cryptocurrencies. As part of an initiative to recognize crypts as a promising emerging technology, the Ministry of Economic Development and Trade in Ukraine has published a new state policy to supervise various sectors related to cryptocurrencies.

In 2018 and 2019, the Ukrainian government will introduce a regulatory framework to strictly govern the local cryptocurrency exchange market. Cryptocurrency trading platforms will have to implement KYC and AML systems to help local authorities monitor the market. By 2020, the government plans to delve into the mining industry, smart contracts and taxation, which will be the second part of the initiative.

Researcher Denis Zarytsky says that the official document issued by the Ukrainian government sets a 5-percent tax reserved for entities and persons holding shares in cryptocurrencies - a rate much lower than in other regions, such as France and the United Kingdom, which have more than 10% tax on cryptocurrency."Their goal is to establish guidelines for the classification of tokens. In addition, they will address issues related to smart contracts and the extraction of cryptocurrencies. For this reason, these works will be in progress. There will be two separate stages of implementation of the new state policy. We hope that this policy will be fully effective until 2021. In addition to the new state policy, the government has filed a new draft tax bill. It presents a new 5% tax, which is paid by entities and persons with cryptocurrency assets " - Zarytsky said.

In October, Yuriy Derevyanko, a member of the anti-corruption Movement of New Forces and the legislature of Ukraine, called for the abolition of taxes from the crypto until the end of 2020. Derevyanko firmly stated that the crypto has the potential to become one of the main Ukrainian markets and the driving force of the country's economy: "I believe that we need to impose a moratorium on the taxation of the area [krypto] for the next 10 years. We must regulate and legalize this segment, which will become the driving force of the new economy "- he said.

Currently, both the opposition party and ruling Ukraine remain positive on the long-term development of the cryptocurrency and Blockchain technology, which may lead to the acceleration of the process of adapting the policy developed by the government.

Let's now take a look at the Bitcoin technical picture at the H4 time frame. The market has clearly broken through both of the technical resistance zones and made a local high at the level of $6,343 before pulling back towards the level of $6,310 again. The level of $6,297 and $6,286 will now act as a support for the price, but the short-term key support level is seen at $6,173. The next target for bulls is seen at $6,367 (weekly pivot) and $6,383 (technical resistnace).

analytics5bdfdec444b93.jpg

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

Elliott wave analysis of EUR/NZD for November 5, 2018

analytics5bdfd97239e1c.png

We are still looking for a final dip closer to the 1.7010 target from where a corrective rally towards 1.7560 before the next downside pressure sets in for the next decline towards 1.6653.

Short-term minor resistance is seen at 1.7175. This minor resistance will ideally be able to cap the upside for the final dip towards 1.7010 to complete the first five wave decline from the 1.7929 peak.

Only a direct break above minor resistance at 1.7322 will tell us that the impulsive decline from 1.7929 completed prematurely and the expected correction towards 1.7560 is already developing.

R3: 1.7322

R2: 1.7296

R1: 1.7238

Pivot: 1.7175

S1: 1.7140

S2: 1.7101

S3: 1.7010

Trading recommendation:

We will buy EUR at 1.7025 and place our stop at 1.6950

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

Elliott wave analysis of EUR/JPY for November 5, 2018

analytics5bdfd6adc5340.png

EUR/JPY continues to follow the expected path higher towards 130.20 and possibly even closer to the 61.8% corrective target near 130.65.

Support is now seen at 128.57, which ideally will protect the downside for a break above minor resistance at 129.33 for the next rally towards the 130.20 target. However, it will take a break below support at 128.34 to indicate the correction in wave B has completed prematurely and that wave C lower is already developing.

R3: 130.20

R2: 129.54

R1; 129.33

Pivot: 128.77

S1: 128.57

S2: 128.34

S3: 128.22

Trading recommendation:

We are long on EUR from 127.75 with our stop placed at 128.25. We will raise our stop to 128.50 upon a break above resistance at 129.33. We will take half profit at 130.10.

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

Technical analysis: intraday levels for EUR/USD for Nov 5,2018

analytics5bdfbb17dc141.jpg

When the European market opens, some economic data will be released such as the Sentix Investor Confidence and the Spanish Unemployment Change. The US will also release economic

reports such as Loan Officer Survey, ISM Non-Manufacturing PMI, and Final Services PMI. So, amid the reports, EUR/USD will move in a low to medium volatility during this day.

TODAY'S TECHNICAL LEVELS:

Breakout BUY Level: 1.1451

Strong Resistance:1.1444

Original Resistance: 1.1433

Inner Sell Area: 1.1422

Target Inner Area: 1.1395

Inner Buy Area: 1.1368

Original Support: 1.1357

Strong Support: 1.1346

Breakout SELL Level: 1.1339

Disclaimer: Trading Forex (foreign exchange) on margin carries a highlevel of risk, and may not be suitable for all Traders or Investors.The high degree of leverage can work against you as well as for you.Before deciding to invest in foreign exchange you should carefullyconsider your investment objectives, level of experience, and riskappetite. The possibility exists that you could sustain a loss of someor all of your initial investment and therefore you should not investmoney that you cannot afford to lose. You should be aware of all therisks associated with foreign exchange trading, and seek advice froman independent financial advisor if you have any doubts.

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

Technical analysis: Intraday levels for USD/JPY, Nov 05,2018

analytics5bdfbac7d7d87.jpg

In Asia, Japan will release the BOJ Monetary Policy Meeting Minutes. At the same time, the US will also release some economic data such as Loan Officer Survey, ISM Non-Manufacturing PMI, and Final Services PMI. So, there is a probability the USD/JPY pair will move with low to medium volatility duringthis day.

TODAY'S TECHNICAL LEVEL:

Resistance. 3: 113.77

Resistance. 2: 113.52

Resistance. 1: 113.32

Support. 1: 113.05

Support. 2: 112.83

Support. 3: 112.61

Disclaimer: Trading Forex (foreign exchange) on margin carries a highlevel of risk, and may not be suitable for all Traders or Investors.The high degree of leverage can work against you as well as for you.Before deciding to invest in foreign exchange you should carefullyconsider your investment objectives, level of experience, and riskappetite. The possibility exists that you could sustain a loss of someor all of your initial investment and therefore you should not investmoney that you cannot afford to lose. You should be aware of all therisks associated with foreign exchange trading, and seek advice froman independent financial advisor if you have any doubts.

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

CAD/JPY approaching resistance, prepare for a reversal

CADJPY is approaching its resistance at 86.67 (61.8% Fibonacci extension, 61.8% Fibonacci retracement, horizontal swing high resistance) where it is expected to reverse down to the support at 85.76 (50% Fibonacci retracement, horizontal swing low support).

Stochastic (55, 5, 3) is approaching its resistance at 98% where a corresponding reversal is expected.

CADJPY is approaching its resistance where we expect to see a reversal.

Sell below 86.67. Stop loss is located at 87.49 and take profit is at 85.76.

analytics5bdfb0862b938.png

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

GBP/AUD approaching resistance, prepare for a reversal

GBPAUD is approaching its resistance at 1.8194 (100% Fibonacci extension, 38.2% Fibonacci retracement, horizontal overlap resistance) where it is expected to reverse down to its support at 1.7947 (76.4% Fibonacci retracement, horizontal swing low support).

Stochastic (89, 5, 3) is approaching its resistance at 98% where a corresponding reversal is expected.

GBPAUD is approaching its resistance where we expect to see a reversal.

Sell below 1.8194. Stop loss is found at 1.8311, and take profit is at 1.7947.

analytics5bdfb046d58da.png

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

Technical analysis of gold for November 5, 2018

Gold price seems ready to continue its uptrend higher towards $1,260. However a short-term pullback at the start of the week towards $1,224-26 is highly probable. I expect prices to pull back and make a higher low without breaking below $1,212.

analytics5bdec4ffb5e44.png

Magenta rectangle - medium-term critical support

Blue rectangle - short-term support and target for pull back

Green lines depict the expected price path.

I'm a buyer on a pullback in gold and bullish as long as we hold above last week's lows. Breaking above $1,240 would confirm this bullish view. My next upside target in gold is at $1,260. Support is at $1,225 that coincides with the 38% Fibonacci retracement. Next short-term support is at the 61.8% Fibonacci retracement.

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

Technical analysis for EURUSD for November 5, 2018

EURUSD has reached the important daily resistance in 1.1420-1.1430 area and got rejected on Friday. If prices form a higher low around 1.1360-1.1380 (previous resistance) and manage to break above 1.1430, we should expect the pair to move towards 1.15-1.1550.

analytics5bdec3c9d5744.png

Black dots - medium strength resistance

Red dots - maximum strength resistance

EURUSD is challenging the important daily resistance at 1.1430. The first attempt has failed. A second attempt has more chances of breaking resistance. If this happens, then we should expect prices to move towards the red dots resistance area of 1.1560. Support is at 1.1360-1.1380 and breaking below it would be a bearish sign. Breaking this support would push prices to 1.1320 which is the next support level. If that level is broken as well, I would expect price to move towards 1.1250.

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

Intraday technical levels and trading recommendations for GBP/USD for November 5, 2018

analytics5bdda3afb14e7.png

Since September 13, the GBP/USD pair has been demonstrating a successful bullish breakout above the depicted daily downtrend line which came to meet the pair around 1.3025-1.3090.

On September 21, 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 a further decline towards 1.2790 where the lower limit of the movement channel and 79.8% Fibonacci Level were located.

On H4 chart, the GBP/USD pair looked oversold around the price levels of 1.2700. BUY entries were suggested around the lower limit of the depicted H4 channel (1.2690).

For the bullish daily breakout scenario to remain valid, bullish persistence above 1.2790 (the depicted channel upper limit) and an early breakout above 1.3000 (50% Fibo level) are needed to maintain sufficient bullish momentum.

That's why, bullish persistence above the price zone of 1.2970-1.3000 (50% Fibonacci zone) is mandatory for a further rise towards 1.3130 and 1.3200.

On the other hand, bearish breakout below 1.2970 (50% Fibo level) allows further decline towards 1.2790 and 1.2660.

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

Intraday technical levels and trading recommendations for EUR/USD for November 5, 2018

analytics5bdda1b66fe35.png

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 where temporary bullish pressure was pushing 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.

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

However, by the end of last week's consolidations, the recent bullish recovery was demonstrated around 1.1307. Another bullish breakout above 1.1400 was temporarily demonstrated again.

The next bullish destination would be located around 1.1520 (upper limit of the depicted congestion zone) if sufficient bullish momentum is maintained above 1.1400-1.1420.

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