The pound will continue to try to gain a foothold, and the dollar is waiting for the Fed report

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The pound will continue to attempt to strengthen its position after fears of the "problematic" Brexit have declined, and the dollar will weaken on the eve of the Fed meeting.

Last week, the pound reached $ 1.3218, the highest since mid-October, in the hope that London will be able to make a deal with the EU. The deadline set for Brexit, March 29, is likely to be extended, and the main question for the pound is when and how the renewal decision will be made. As for the dollar, the focus is now shifting back to key events that threaten the dollar with more serious consequences, such as the FOMC (Federal Open Market Committee) meeting, US-China trade negotiations, and the US jobs report. The Fed is expected to leave interest rates unchanged.

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Markets are waiting for signals about the future of the Fed's policy after recent official comments made it clear that rates of rate hikes this year will be reduced amid growing uncertainty about the state of the US economy, the global economy and fragile financial markets. Experts estimate the likelihood of a rate hike in 2019 as very low, although some still expect two approaches in the second and fourth quarters. The dollar may face pressure if the Fed decides to highlight the negative effects of the closure of the US government in its report.

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

What to expect from the Fed?

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Already this evening, the results of the first meeting of the Federal Reserve System (FRS) of the United States this year will be announced. How the market will react to them will depend on three factors: a shift in the timing of monetary tightening, risk assessment and a rebalancing.

Increases in interest rates this time are hard to be expected, given the slowdown in the growth of the American economy and the recent "shutdown", which may resume in mid-February. However, this does not mean that this year the regulator will not increase the cost of lending.

According to most economists surveyed recently by Bloomberg, in 2019, the Fed will raise the interest rate twice, but it will be in June and December, and not in March and September, as was previously expected.

Meanwhile, the derivatives market is laid on the fact that until the end of the year the Central Bank will not change the cost of borrowing at all.

"Today, investors clearly expect Jerome Powell "pigeon" rhetoric. To avoid a repeat of last year's mistakes, the Fed chief is likely to be forced to balance between signals about a still strong economy, which allows us to expect an increase in interest rates later this year, and statements about a patient position," the experts noted.

"It is assumed that the regulator will retain the risk assessment as generally balanced and will make a choice in favor of a more vague wording about the need for a further gradual increase in the rate or replace it with a phrase about a patient approach. In addition, the US Central Bank seems to be thinking about suspending a reduction in its balance sheet. The minutes of the meeting will probably not talk about this, but the recent speeches of the FOMC representatives clearly hint at this. The main question is this: Has the market already priced these hints? If yes, then the strategy "buy on rumors, sell on facts" can work, and the dollar will grow. If not (and the head of the Fed will confirm the intention to curtail the program ahead of time), then comments on this topic may put pressure on the greenback," they added.

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

Oil continues to rise on fears of supply disruptions from Venezuela

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The cost of oil has gone up against the backdrop of concerns about interruptions in the supply of raw materials from Venezuela, which may arise as a result of the introduction of US sanctions against Venezuelan oil company PDVSA.

According to the auction, the price of Brent crude rose to $ 61.90 a barrel. The cost of WTI crude oil rose to $ 53.90 a barrel.

The oil prices are supported by the tense situation around Venezuela, which may adversely affect the export of raw materials. On January 28, the United States announced new sanctions measures against the South American country, in particular against the energy sector of the economy, including it in the "blacklist" of the Ministry of Finance (SND-list). According to the rules, the assets of all sanction companies fall under blockade in the United States.

In addition, market participants are waiting for the publication of data from the US Department of Energy (on Thursday). According to forecasts, crude oil reserves in the country are expected to grow by 3.1 million barrels after increasing reserves by 7.97 million barrels recorded last week.

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

Gold exploded off the bat

Jerome Powell's pigeon rhetoric at the press conference following the FOMC's January meeting, rumors of a pause in the process of collapsing the Fed's balance sheet and fears about the fate of the global economy pushed gold futures to May. The precious metal is preparing to close in the green zone for the fourth month in a row and gradually licks the wounds received in 2018. Then the aggressive monetary restriction of the Federal Reserve, the acceleration of US GDP and a strong dollar seriously spoiled the mood for the bulls at XAU / USD. In 2019, the situation has seriously changed.

Gold dynamics

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The Fed chairman realized the mistake he made in December when, after raising the federal funds rate from 2.25% to 2.5%, he declared that the US economy was in good health, which meant continuing the cycle of monetary policy tightening at the same rate (4 rate increases for year). Stock indexes collapsed, and investors had to reassure statements about the flexibility and patience of the Central Bank. Judging by the survey of experts from Bloomberg, he is unlikely to resort to the next act of monetary restriction before June. As a result, the chances of gold to continue the rally increase. According to 36 Reuters economists, its average price in 2019 and 2020 will be $ 1305 and $ 1350 per ounce.

Along with the expectations of a long pause in the process of normalizing the monetary policy of the Fed, support for the bulls at XAU / USD has concerns about the fate of the global economy and the associated improvement in demand for a physical asset. Leading indicators show that China's GDP after the saddest dynamics over the past three decades last year continues to slow down in the first quarter, which boosts Asians 'interest in gold. In particular, Switzerland reports an increase in deliveries of the analyzed asset to the Middle Kingdom in 2018 to 431 tons, which is 38% more than in 2017. The stocks of specialized exchange funds from the October bottom increased by 4 million ounces (+ 7.6%).

The slowdown in the global economy is forcing central banks to either pause in the process of normalization or follow an ultra-soft monetary policy. In particular, the Fed is not set to raise the rate for more than two years in 2019, the ECB is unlikely to increase the refinancing rate before 2020, the Bank of Japan will continue the quantitative easing program, and the People's Bank of China will increase its monetary stimulus. In such conditions, the global debt market rates will be under pressure. If they were to grow on expectations of a tightening of monetary policy, prices for non-interest-bearing gold risked falling.

In the short term, the precious metal can be characterized by mixed dynamics. It grows on the expectations of Jerome Powell's pigeon's rhetoric, but if the market does not wait for it, speculators will begin to take profits. Accelerate sales will contribute to a strong report on the US labor market in January.

Technically, the rally of gold continues. "Bulls" activated the AB = CD pattern and are seriously determined to fulfill its target by 261.8%. It corresponds to the mark of $ 1337 per ounce.

Gold, the daily chart

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Bitcoin analysis for January 30, 2019

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Bitcoin has been trading sideways at the price of $3.420. Our view from yesterday is still active. Since the key support cluster at $3.420 is broken and successfully retested, we expect downward continuation. I also found a successful breakout of the mini upward Pitchfork channel, which is another sign of underlying weakness.The short-mid term trend is bearish and you should go with the direction of the overall trend.

R1: $3.442

R2: $3.489

R3: $3.538

Pivot: $3.392

S1: $3.345

S2: $3.295

S3: $3.248

Trading recommendation: We are still short BTC/USD from $3.392 and with the target at $3.107. Protective stop is placed at the price of $3.550

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

GBP/USD analysis for January 30, 2019

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Trading recommendation: We are bullish about GBP/USD from 1.3090 with expectation that price would reach the POC in the background at 1.3152 or a weekly high at 1.3210. The protective stop is placed at 1.3050.

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

Analysis of Gold for January 30, 2019

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Gold continues to rally as expected. It respects the Pitchfork upward channel nicely and it is doing a good job towards the median line ($1.340.00) of the larger channel. According to the daily chart, Gold is making higher highs and higher lows which is a sign that buyers are in total control. There are no signs of a reversal yet and you should only watch for the upside.

R1: $1,312.55

R2: $1,316.60

R3: $1,321.75

Pivot: $1,307.00

S1: $1,303.45

S2: $1,298.00

S3: $1,294.70

Trading recommendation: We are still long Gold from $1,285 and $1,300.00 (added position yesterday). We are moving our stop loss order on both positions at $1,309.00, thereby securing even larger profit comparing to yesterday. Our main target is $1,340.00 (median line).

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

Fundamental Analysis of EUR/AUD for January 30, 2019

EUR/AUD is currently trading below 1.5900 area amid the impulsive bearish momentum today after several corrections and higher volatility. Teh eurozone's economy is facing some headwinds like trade tensions and downbeat economic reports which made EUR lose momentum against AUD which is winning favor with investors.

Mario Draghi has recently confirmed that no rate hike will be announced before he retires as ECB President on October 2019. The ECB is currently quite silent about any kind of major changes, including an interest rate hike or monetary policy changes. Mario Draghi said at the press conference that the euro area's growth outlook has been downgraded due to downside risks because of persistent geopolitical factors and threat of protectionism, vulnerability in emerging markets, and financial market volatility. The statement had a great impact on the overall EUR momentum that caps its gains. Moreover, according to Germany's BGA trade body, "Germany is heading towards a huge disaster" which is expected to impact the overall eurozone in the future.

On the other hand, Australian consumer inflation edged up in annual terms in Q4 2018. It confirms that the interest rate will not be changed in the near future. Today Australia released a CPI report where consumer inflation edged up to 0.5% in Q4 on a quarterly basis which was expected to be unchanged at 0.4% and Trimmed Mean CPI remained flat at 0.4% as expected. Ahead of the election in Australia this year, the domestic economy could regain momentum unless external pressure deals a blow to it.

Meanwhile, EUR is on the verge of high pressure which is expected to impact its gains in the long run, so that EUR could lose steam against AUD. As Australia continues with positive economic data, AUD is going to extend strength versus EURO in the coming days.

Now let us look at the technical view. The price is currently engulfing the recent bullish momentum with a daily candle. If the price can sustain throughout the day and close below 1.5850 area with a daily close, then the pair will retain bearish momentum towards 1.5500 and later towards 1.5350 support area. As the price remains below 1.60 area with a daily close, the bearish bias is expected to continue further.

SUPPORT: 1.5350, 1.5500

RESISTANCE: 1.5900, 1.6000

BIAS: BEARISH

MOMENTUM: VOLATILE

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Simplified wave analysis of EUR / CHF for January 30

Large-scale graphics:

The last, incomplete, so far large-scale wave model is the ascending segment of September 10 of last year. Since the beginning of this year, changes have occurred in the structure of the wave. Confirmation of completion of the middle part (B) yet.

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Medium scale graphics:

With a high degree of probability, the bullish traffic segment of January 3 gave rise to the final part (C) in a larger structure.

Small-scale graphics:

The rising wave from January 25 reached the lower boundary of the preliminary completion zone. Signals change course is not observed.

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Forecast and recommendations:

The wave structure of the cross develops according to a complex algorithm that makes identification difficult. Most likely, in the next week, the price of the pair is waiting for a flat lull period in a narrow corridor, after which the price will again attempt to break up.

Resistance zones:

- 1.1370 / 1.1420

Support areas:

- 1.1290 / 1.1240

Explanatory notes for the figures: The simplified wave analysis uses waves consisting of 3 parts (A – B – C). The analysis uses 3 consecutive scale graph. Each of them analyzes the last, incomplete wave. 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, the dotted - the expected movement.

Note: The wave algorithm does not 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

GBP / USD. January 30. The pound fell after the parliament immediately adopted 3 amendments to the Brexit bill

4-hour timeframe

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Technical details:

The senior linear regression channel: direction - sideways.

The younger linear regression channel: direction - up.

Moving average (20; smoothed) - up.

CCI: -32.8224

The currency pair GBP / USD on Wednesday, January 30, adjusted to the moving average, but the upward trend in the instrument remains. Yesterday evening was quite important, albeit somewhat formal for the UK. Voting on the Brexit project was postponed to February 13, but yesterday, they voted for several amendments to the draft agreement on withdrawal from the EU. And the first amendment, which was adopted, states that without an agreement with the EU, Brexit is prohibited. The second amendment removes the concept of "backstop" from the agreement. Third, it orders the British government to change the EU's position on the Northern Ireland border. What does it mean in fact? Nothing. All these amendments do not mean at all that the EU leaders will make new concessions and negotiations, but they mean exactly that. Now Theresa May needs to inform the EU leaders that the parliament is ready to pass the Brexit bill only on the conditions described above. That is, May will now pass the move to the European Union. Will the EU go to new negotiations, which doesn't need a tough Brexit too? In addition to the expected response from the EU, macroeconomic reports on changes in the level of employment in the private sector, US GDP, as well as the announcement of the results of the Fed meeting and the press conference is scheduled for today.

Nearest support levels:

S1 - 1.3062

S2 - 1.3000

S3 - 1.2939

Nearest resistance levels:

R1 - 1.3123

R2 - 1.3184

R3 - 1.3245

Trading recommendations:

The currency pair GBP / USD has started a new correction. Heikin Ashi's upward reversal will signal the opening of new long positions with targets at 1.3184 and 1.3245. Tonight, you will need to be ready for increased volatility in possible sharp reversals.

Sell positions are recommended to open if the pair manages to overcome the moving. In this case, the initiative will go into the hands of bears, and the first target for short positions will be the level of 1.3000.

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

Explanations for illustrations:

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

The junior linear channel is the purple lines of the 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

Simplified wave analysis of GBP / USD for January 30

Large-scale graphics:

The price of a pound major since April last year has a steady downward trend. The upper limit of the powerful support zone, from which the counter correction is formed, has been reached.

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Medium scale graphics:

The bullish wave of December 12th, in the development process, exceeded the level of rollback of the last part of the trend (C), taking the place of the final segment in a larger upward wave model.

Small-scale graphics:

The bearish wave, which began on January 25, has a small wave level, insufficient for changing course. The price reached the lower limit of the potential reversal zone.

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Forecast and recommendations:

The preliminary goal of the price rise has been achieved, but there are no signals of a quick change in direction on the chart. Before making a decision to enter the market, you must wait until the current correction is fully completed.

Resistance zones:

- 1.3180 / 1.3230

Support areas:

- 1.2770 / 1.2720

Explanatory notes for the figures: The simplified wave analysis uses waves consisting of 3 parts (A – B – C). The analysis uses 3 consecutive scale graph. Each of them analyzes the last, incomplete wave. 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, the dotted - the expected movement.

Note: The wave algorithm does not 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

EUR / USD. January 30. The trading system. "Regression Channels". What will be the rhetoric of the Fed in January 2019?

4-hour timeframe

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Technical details:

The senior linear regression channel: direction - up.

The junior linear regression channel: direction - down.

Moving average (20; smoothed) - up.

CCI: 92.6950

The third trading day of the week promises to be interesting for the EUR / USD currency pair due to the whole package of macroeconomic information expected from the States. First, the ADP report on employment changes in the private sector will be released today. Secondly, preliminary data on GDP for the fourth quarter will be released. Thirdly, the results of the Fed meeting, the first meeting in 2019, the press conference of the Federal Open Market Committee will be announced late in the evening, and the accompanying Fed statement will be announced. In general, there is plenty of news for today, so in the second half of the day, we expect an increase in volatility. The US dollar in recent days against the euro is cheaper. Perhaps the fact that the Fed will not raise rates in January, as well as reduced GDP for the 4th quarter, thanks to Trump's "shutdown", are already taken into account in the current US dollar exchange rate. However, no one knows what exactly will be said at the press conference. Thus, the press conference is of more interest. Jerome Powell's mood is likely to remain "soft," if not frankly, "pigeon." At the moment, the chances that the dollar will continue to decline against the euro are much greater.

Nearest support levels:

S1 - 1.1414

S2 - 1.1353

S3 - 1.1292

Nearest resistance levels:

R1 - 1.1475

R2 - 1.1536

R3 - 1.1597

Trading recommendations:

The currency pair EUR / USD continues to move up. Thus, purchase orders with a target of 1.1475 remain relevant today. A color of 1-2 bars in blue will signal the manual closing of long positions.

It is recommended to open sell positions if traders overcome a moving average line with a target of 1.1353. For this option today, you will need "hawk" information from the Fed and strong macroeconomic reports.

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 younger 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

Analysis of EUR / USD Divergences for January 30th. The pair was hiding before the Fed meeting

4h

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The currency pair EUR / USD completed growth to the correction level of 38.2% - 1.1446, and nothing has changed over the past 24 hours. The rebirth from this Fibo level will allow us to count on a reversal in favor of the American currency and a slight drop in the direction of the correctional level of 23.6% - 1.1358. Also, on January 30, the bearish divergence of the CCI indicator continues to mature, the formation of which will increase the chances of a clear quote from the Fibo level of 38.2%. Fixing the pair above the level of 38.2% will work in favor of continuing growth in the direction of the next correction level of 50.0% - 1.1517.

The Fibo grid is built on extremes from September 24, 2018, and November 12, 2018.

Daily

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On the 24-hour chart, the currency pair continues the growth process in the direction of the correctional level of 100.0% - 1.1553. Maturing divergences in the current chart are still not observed in any indicator. Rebounding the pair from the Fibo level of 100.0% will allow traders to expect a reversal in favor of the US currency and the beginning of a fall in the direction of the correction level of 127.2%. Closing quotes above the Fibo level of 100.0% will increase the likelihood of continued growth in the direction of the correction level of 76.4% - 1.1789.

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

Recommendations to traders:

New purchases of the currency pair EUR / USD will be possible with the goal of 1.1517 if the pair closes above the level of 38.2%, and a Stop Loss order under 1.1446.

Sales of the currency pair EUR / USD can be carried out with the target of 1.1358 with a Stop Loss order above the Fibo level of 38.2% if the pair bounces off the level of 1.1446, especially in combination with the formation of a bearish divergence.

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

Analysis of GBP / USD Divergences for January 30th. Bullish divergence predicts a new growth for the pound

4h

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The currency pair GBP / USD on the 4-hour chart completed closing below the correction level of 76.4% - 1.3094. The formation of bullish divergence on January 30th allows traders to rely on a turnaround in favor of the British currency and the resumption of growth in quotations. Closing the pair above the Fibo level of 76.4% will increase the chances of the pair to resume growth in the direction of the correction level of 100.0% - 1.3300. The breakthrough of the last low divergence will work in favor of continuing to fall in the direction of the Fibo level of 61.8% - 1.2969.

The Fibo grid is built on extremums from September 20, 2018, and January 3, 2019.

1h

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On the hourly chart, the currency pair performed a drop to the Fibo level of 161.8% - 1.3045. The end of the pair quotes from this level will allow us to expect a reversal in favor of the pound sterling and the resumption of growth in the direction of the correction level of 200.0% - 1.3187. There are no ripening divergences today. Closing quotes below the Fibo level of 161.8% will work in favor of continuing to fall in the direction of the next correction level of 127.2% - 1.2916.

The Fibo grid is built on extremes from December 31, 2018, and January 3, 2019.

Recommendations to traders:

Purchases of the currency pair GBP / USD can be made with the target of 1.3187 and a Stop Loss order below the level of 76.4% if the pair closes above the level of 1.3094 (4-hour chart).

Sales of the currency pair GBP / USD can be made with a target of 1.2916 and a Stop Loss order above the level of 161.8% if the pair closes below the level of 1.3045 (hourly chart).

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

Today, the focus of the market from the US news

Today, market attention will be paid to the publication of preliminary data on US employment from ADP, as well as to the final decision of the Fed on monetary policy.

Global markets continue to be reeling in the wake of high expectations of a slowdown in the global economy, which is spurred on by the situation around Brexit, until the end of an obscure picture regarding the prospects for tightening the monetary policy of the Fed and the trade wars between the States and their trading partners, to which China.

On Tuesday, the British Parliament once again rejected the plan of T. May, which threatens the very possibility of a controlled exit of the United Kingdom from the EU. Until the beginning of this process, exactly two months remain, and if no agreement is reached, then we should expect serious negative consequences both for Britain and for large continental Europe.

Yesterday, a delegation from China arrived in the States for trade talks. Investors are still optimistic about the coming probable agreement between the countries, which may already be signed tomorrow.

Today, the focus will be on data on the number of new jobs in the US non-farm sector from ADP. They traditionally anticipate the publication of official figures from the Ministry of Labor, which will be released on Friday. According to the forecast, the American economy is expected to receive 170,000 new jobs in January versus growth of 271,000 in December. It can be assumed that if the value is noticeably below expectations, this will put pressure on the dollar and cause a negative trend in the US stock market. At the same time, a noticeably higher value will support the dollar and help the local stock market to grow in the wake of continuing optimism about the prospects for positive growth in the US economy.

The most important event on Wednesday will be the result of the Fed meeting on monetary policy. Markets do not expect changes in interest rates, but they will be extremely interested in the performance of J. Powell with his estimated opinion on the prospects for further growth in rates and the country's economy as a whole. If he again emphasizes the fact of a cautious approach in the process of raising interest rates or makes it clear that they can be raised only in certain economic conditions, this will put pressure on the dollar and support the demand for risky assets in the markets. If he does not clarify the picture in this regard, then it may hit the demand for shares of companies and support the rate of the US currency.

Forecast of the day:

The currency pair AUD / USD is below the level of 0.7200, the intersection of which against the background of Powell's soft rhetoric regarding the prospects for the Fed's monetary policy may lead to a local price increase to 0.7250.

The currency pair GBP / SD is above the level of 1.3075. An indistinct situation around the exit of Britain from the EU may lead to a fall in prices to 1.3000 after it crosses the level of 1.3075.

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GV6zH8-BfXf1sdgwscO4Psg7em8XLY4O_W3cMqfw

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

Indicator analysis. Daily review on January 30, 2019 for the pair EUR / USD

On Wednesday, before the release of the news (16.15 Moscow time), the price will move down. The first lower target of 1.1413 is the rolling level of 23.6% (blue dashed line).

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Fig. 1 (daily schedule).

Comprehensive analysis:

- indicator analysis - down;

- Fibonacci levels - down;

- volumes - down;

- candlestick analysis - down;

- trend analysis - down;

- Bollinger lines - up;

- weekly schedule - up.

General conclusion:

On Wednesday, before the release of the news (16.15 Moscow time), the price will move down.

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

Technical analysis for Gold for January 30, 2019

Gold price has reached my $1,315 target and we could see a small move higher towards $1,320 as well. However this is not the time to be greedy. Bulls should either take their profits or protect them with tight stops. Price has reached the upper channel boundary. Although we could see a throw off top, there are more chances of seeing a top than a continued upward move.

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Green rectangles - support areas

Red lines - bullish channel

Gold price has reached our second target area after giving us a bullish signal by breaking above $1,292. I now expect Gold price to make a top around $1,320 and reverse at least back towards $1,300 if now lower. Key trend support is at $1,285 area and a trend reversal will be confirmed only if $1,278 fails to hold. For now trend remains bullish but we expect some weakness over the coming days to be seen.

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

Technical analysis for EUR/USD for January 30, 2019

EUR/USD has stopped its rise right below the 61.8% Fibonacci retracement level. This is important short-term resistance area. I believe the odds are that we see a rejection here since bulls were unable until now to break the resistance. If we see a rejection, this will be a bearish sign and will put the major support at 1.1320-1.13 in danger.

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Green rectangle - major resistance area

EUR/USD shows signs of slowing down and weakness near the 61.8% Fibonacci retracement. Support is found at 1.1410 and next at 1.1390. Breaking below these two levels will open the way for a retest of the major support area at 1.1320-1.13. A lower high is so far in place and this is a very bearish sign. The bearish scenario expects to see a new downward move starting soon and breaking below 1.13 and moving towards 1.11-1.10. Bulls in order to avoid this scenario will have to hold above 1.1320 and eventually break above 1.15. So far it looks like bears remain in control although as long as price respects support at 1.13 everything is open as we continue to trade inside a trading range for the last three months.

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

Fractal analysis of major currency pairs on January 30

Dear colleagues.

For the currency pair Euro / Dollar, we should continue moving upwards after the breakdown of 1.1464 and the level of 1.1392 is the key support. For the currency pair Pound / Dollar, the price is in the correction of the upward structure and the level of 1.2981 is the key support. For the currency pair Dollar / Franc, we will continue moving upwards after the breakdown of 0.9985 and the level of 0.9906 is the key support. For the currency pair Dollar / Yen, we are following the formation of the downward structure from January 25 and the development of which is expected after the breakdown of 108.98. For the currency pair Euro / Yen, we expect further uptrend after the breakdown 125.15. For the currency pair Pound / Yen, the price is in the correction and the range of 142.69 - 142.12 is the key support for the top.

Forecast for January 30:

Analytical review of H1-scale currency pairs:

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For the currency pair Euro / Dollar, the key levels on the H1 scale are 1.1548, 1.1514, 1.1464, 1.1415, 1.1392, 1.1366 and 1.1337. Here, we continue to monitor the formation of the ascending structure of January 24. The continuation of the development of the upward movement is expected after the breakdown of 1.1464. In this case, the target is 1.1514. The potential value for the top is considered the level of 1.1548, upon reaching which we expect a rollback downwards.

The short-term downward movement is possible in the range of 1.1415 - 1.1392 and the breakdown of the last value will lead to a prolonged correction. Here, the target is 1.1366 and this level is the key support for the top. Its breakdown will lead to the formation of initial conditions for the downward cycle. In this case, the target is 1.1337.

The main trend is the formation of the ascending structure of January 24.

Trading recommendations:

Buy 1.1466 Take profit: 1.1512

Buy 1.1515 Take profit: 1.1546

Sell: 1.1415 Take profit: 1.1392

Sell: 1.1390 Take profit: 1.1366

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For the currency pair Pound / Dollar, the key levels on the H1 scale are 1.3431, 1.3350, 1.3245, 1.3197, 1.3118, 1.3058 and 1.2981. Here, we continue to monitor the rising structure of January 15. At the moment, the price is in correction. An upward movement is expected after the price passes the range of 1.3197 - 1.3245. In this case, the target is 1.3350, and consolidation is near this level. The potential value for the top is considered the level of 1.3431, upon reaching which we expect a rollback downwards.

The consolidated movement is expected in the range of 1.3118 - 1.3058 and the breakdown of the latter value will lead to a deep correction. Here, the target is 1.2981 and this level is the key support for the upward structure.

The main trend is the local structure for the top of January 15, the stage of correction.

Trading recommendations:

Buy: 1.3245 Take profit: 1.3350

Buy: 1.3353 Take profit: 1.3430

Sell: 1.3118 Take profit: 1.3060

Sell: 1.3055 Take profit: 1.2984

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For the currency pair Dollar / Franc, the key levels on the H1 scale are 1.0065, 1.0034, 0.9984, 0.9930, 0.9906, 0.9874 and 0.9847. Here, we continue to follow the development of the ascending cycle of January 10. An upward movement is expected after the breakdown of 0.9984. In this case, the target is 1.0034. The potential value for the top is considered the level of 1.0065, after reaching which we expect consolidation, as well as a rollback to the top.

The short-term downward movement, as well as consolidation, are possible in the range of 0.9930 - 0.9906. The breakdown of the latter value will lead to a prolonged correction. Here, the goal is 0.9874 and this level is the key support for the ascending structure. Its breakdown will lead to the movement to 0.9847.

The main trend is the ascending structure of January 10, the stage of correction.

Trading recommendations:

Buy: 0.9986 Take profit: 1.0032

Buy: 1.0035 Take profit: 1.0065

Sell: 0.9904 Take profit: 0.9880

Sell: 0.9872 Take profit: 0.9848

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For the currency pair Dollar / Yen, the key levels on the scale of H1 are 110.33, 110.07, 109.92, 109.66, 109.50, 108.98, 108.75, 108.58 and 108.32. Here, we are following the formation of the downward structure from January 25th. We expect the downward movement to continue after the breakdown of 108.98. Here, the target is 108.75 and in the range of 108.75 - 108.58 is the price consolidation. The potential value for the bottom is considered the level of 108.32, after reaching which we expect a rollback to the top.

The short-term upward movement is possible in the range of 109.50. - 109.66 and the breakdown of the last value will have to develop the ascending structure. Here, the goal is 109.92 and the range of 109.92 - 110.07. Its price passage will allow us to count on the movement to the level of 110.33.

The main trend: the formation of a downward structure of January 25.

Trading recommendations:

Buy: 109.67 Take profit: 109.92

Buy: 110.08 Take profit: 110.30

Sell: 108.98 Take profit: 108.75

Sell: 108.58 Take profit: 108.32

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For the currency pair Canadian dollar / Dollar, the key levels on the H1 scale are 1.3370, 1.3349, 1.3316, 1.3290, 1.3242, 1.3232, 1.3219 and 1.3197. Here, we follow the formation of the initial conditions for the top of January 28. The continuation of the upward movement is expected after the breakdown of 1.3290. In this case, the goal is 1.3316, and consolidation is near this level. The breakdown of the level of 1.3316 should be accompanied by a pronounced upward movement. Here, the goal is 1.3349. The potential value for the top is considered the level of 1.3370, upon reaching which we expect a rollback downwards.

The short-term downward movement is possible in the range of 1.3242 - 1.3232 and the breakdown of the latter value will lead to an in-depth correction. Here, the target is 1.3219 and this level is the key support for the downward structure. Its breakdown will make it possible to count on the movement towards a potential target of 1.3197.

The main trend is the formation of potential for the top of January 28.

Trading recommendations:

Buy: 1.3290 Take profit: 1.3314

Buy: 1.3318 Take profit: 1.3349

Sell: 1.3232 Take profit: 1.3220

Sell: 1.3217 Take profit: 1.3197

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For the currency pair Australian dollar / Dollar, the key levels on the H1 scale are 0.7296, 0.7267, 0.7225, 0.7208, 0.7160, 0.7143 and 0.7119. Here, the price forms a pronounced ascending structure of January 25. The short-term upward movement is expected in the range of 0.7208 - 0.7225 and the breakdown of the last value should be accompanied by a pronounced upward movement. Here, the target is 0.7267. The potential value for the bottom is considered the level of 0.7296, from which we expect a rollback downwards.

The short-term downward movement is possible in the range of 0.7160 - 0.7143 and the breakdown of the latter value will lead to an in-depth correction. Here, the target is 0.7119 and this level is the key support for the upward structure.

The main trend is the formation of initial conditions for the top of January 25.

Trading recommendations:

Buy: 0.7208 Take profit: 0.7225

Buy: 0.7227 Take profit: 0.7265

Sell: 0.7160 Take profit: 0.7145

Sell: 0.7140 Take profit: 0.7122

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For the currency pair Euro / Yen, the key levels on the H1 scale are 127.22, 126.70, 125.79, 125.15, 124.54, 124.23, 123.74 and 123.23. Here, we are following the formation of the local ascending structure from January 24th. An upward movement is expected after the breakdown of 125.15. In this case, the target is 125.79 and price consolidation is near this level. The breakdown of 125.80 should be accompanied by a pronounced upward movement. Here, the goal is 126.70. The potential value for the top is considered the level of 127.22, after reaching which we expect a consolidated movement, as well as a rollback to the top.

The short-term downward movement is possible in the range of 124.54 - 124.23 and the breakdown of the latter value will have to form a downward structure. In this case, the potential target is 123.74 and the breakdown of which will allow us to expect a movement to the level of 123.23, up to this level, we expect the initial conditions for the downward cycle.

The main trend is the local ascending structure of January 24.

Trading recommendations:

Buy: 125.15 Take profit: 125.76

Buy: 125.82 Take profit: 126.70

Sell: 124.54 Take profit: 124.25

Sell: 124.20 Take profit: 123.85

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For the currency pair Pound / Yen, the key levels on the H1 scale are 146.68, 145.74, 144.86, 144.00, 142.69, 142.12 and 141.37. Here, we are following the development of the ascending structure from January 15. At the moment, the price is in correction. The continuation of the upward movement is expected after the breakdown of 144.00. In this case, the first target is 144.86 and the breakdown of which will allow us to count on the movement to the level of 145.74. The potential value for the top is considered the level of 146.68, upon reaching which we expect consolidation, as well as a rollback to the top.

The short-term downward movement is possible in the range of 142.69 - 142.12 and the breakdown of the last value will lead to an in-depth correction. Here, the target is 141.37 and this level is the key support for the top.

The main trend is the local ascending structure of January 15.

Trading recommendations:

Buy: 144.00 Take profit: 144.80

Buy: 144.88 Take profit: 145.74

Sell: 142.69 Take profit: 142.14

Sell: 142.10 Take profit: 141.40

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Forecast for USD / JPY on January 30, 2019

The Japanese yen very calmly met the news about the reluctance of the magnificent British parliament in order to mitigate the delay on the consequences of the Brexit. Movement occurred between the level of 109.212 - January 16 maximum - and the Krusenstern line on a four-hour scale. On the daily chart, the resistance was at the line of the price channel, under which the yen consolidates the third day. The growing main indicators of Marlin on the graphs of both scales indicate the intention of the market to continue the upward trend. We are waiting for the price to rise to the resistance of the falling price channel line at 110.47 daily, which almost coincides with the resistance of the Krusenstern line on the same chart. Overcoming the level will allow the price to accelerate growth through intermediate resistance 111.38 to 112.92.

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Forecast for EUR / USD on January 30, 2019

On Tuesday, the British parliament voted against the postponement of the Brexit date to a later date in the event of the non-acceptance of an agreement with the EU. Meanwhile, the United States imposed a ban on working with the Venezuelan oil producer PDVSA. As a result, the pound sterling lost 92 points, but the euro remained at the local maximum due to the growth of oil by 2.15%.

Today, the focus will be on the FOMC monetary policy decision. The rate, of course, is expected to remain unchanged, but the focus has been shifted to the pace of the balance reduction of the Fed. Empirically, the current rate of reduction corresponds to a quarter-point rate increase, and a slowdown can result in a weaker dollar. But even if the regulator has such an intention, it would be understandable to decide to postpone any actions due to the finally unsatisfied shatdaun and wait for economic results for the 4th quarter, as well as for January-February, that is, to make a decision already in March meeting.

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On the four-hour chart, price divergence with the Marlin oscillator has already been formed. If our expectations regarding today's FOMC meeting are met, the price will drop to the Krusenstern line on H4, which practically coincides with the support of the price channel line on a daily scale (1.1380 / 85).

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If the Fed decides to "twist the bolt", it can even be understood as a measure of the latent crisis due to trade wars with China. In this case, we expect the growth of the euro to 1.1500. But we will define such a scenario with a probability of 30%.

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Trading Plan 01/30/2019

Overall picture:

1. Shutdown in the US is postponed at least until February 15 - and most likely, until February 15, they will find some kind of compromise, so that the controversy surrounding the cost of building a wall with Mexico does not block government funding.

2. Britain-EU agreement on life after Brexit: British Parliament agreed to Prime Minister May to try to get more pleasant conditions from the EU — May plans to negotiate in Brussels — but the EU leaders are firmly set that they see no reason to make concessions. As you can see, the pound almost does not react to this - the markets seem to be immune to Brexit.

3. The main thing today is the Fed 's decision at 22.00 Moscow time. We study the text of the statement.

4. At 4:15 PM there will be a report on employment in the USA for January from ADP.

Euro: We keep purchases from 1.1395.

Alternative: Sell from 1.1285.

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GBP / USD Forecast for January 30, 2019

GBP / USD

Yesterday, the British Parliament voted against the transfer of the Brexit date, if an agreement with the EU is not reached. The deadline for this transaction is February 26th. The price reduction stopped at the support at the point where the Krusenstern lines coincide with the balance on the four-hour scale.To further reduce the price, it is necessary to overcome this support and drop below the trend line of the price channel on the daily chart (1.3014), that is, to decline further by more than 90 points from the current level. In general, uncertainty persists. Return of the price to 1.3174-1.3216 is possible. Today, new talks between Prime Minister May and Brussels begin. The arrival of optimistic news is possible and a stronger growth.

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The technical range 1.3093 (current level) -1.3014 can also be viewed as investor freedom of action in the event of the Fed's decision today to keep current monetary policy unchanged. The case primarily concerns the rate of reduction of the Fed balance. Perhaps, the financial policies because of the shutdown which will sustain some kind of pause.

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Wave analysis of EUR / USD for January 30. Who will help the Fed today?

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Wave counting analysis:

On Tuesday, January 29, bidding ended with a minimal increase for the pair EUR / USD. Thus, the wave marking has not changed and still assumes the construction of wave 2 as part of a new downtrend of the trend. An unsuccessful attempt to break through the level of 38.2% on the older grid or the reserve level of 61.8% on the youngest will induce the instrument to be ready for the completion of the correction wave. In the performance of this option, we are waiting for a new decrease in the instrument. Tonight, the Fed will announce its decisions during its meeting, and we'll figure out if this information can significantly affect the movement of the instrument. In accordance with the current wave counting, the US dollar is in great need of support from the Fed, otherwise wave 2 may become more complicated.

Sales targets:

1,1289 - 0.0% Fibonacci

1.1215 - 0.0% Fibonacci

Shopping goals:

1.1444 - 38.2% Fibonacci

1.1462 - 61.8% Fibonacci

General conclusions and trading recommendations:

The pair remains in the stage of building a correctional wave 2. Thus, its completion should lead to a resumption of the instrument's decline with targets located near the marks of 1,1289 and 1.1215, which equates to 0.0% and 0.0% Fibonacci. Now I recommend cautious sales of a pair with orders limiting losses above the levels of 38.2% and 61.8%.

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GBP/USD: plan for the European session on January 30. The British Parliament approved the amendments proposed by Theresa

To open long positions on GBP/USD you need:

The British pound fell after the British Parliament approved the amendments of Theresa May and ruled out the scenario of a disorderly exit. Many traders do not believe that now May will be able to persuade the EU to these amendments. It is best to look at long positions on the pound after updating the next weekly low in the area of 1.3013, and it is best to open long positions on a rebound from the low of 1.2950. The main task of buyers will be to return and consolidate above the resistance of 1.3129, which will keep the uptrend and lead to an update of the highs of 1.3200 and 1.3257, where I recommend to take profit.

To open short positions on GBP/USD you need:

The uptrend on the British pound is broken. The repeated support test of 1.3068 could lead to a further fall of the British pound with the exit to the lows of 1.3013 and 1.2950, where I recommend taking profit. A more interesting entry into selling GBP/USD will be the update of the resistance of 1.3129, with the formation of a false breakdown there, or sell immediately at a rebound from the resistance of 1.3200.

Indicator signals:

Moving averages

Trading is conducted below 30-day and 50-day moving averages, which indicates the formation of a downward movement in the British pound.

Bollinger Bands

In case of a further fall, the lower limit of the Bollinger Bands indicator in the area of 1.3032 may provide support. The upward correction will be limited by the upper limit of the indicator around 1.3170, from where you can sell the pound immediately on the rebound.

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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 European session on January 30. Buyers of the euro want to break through to new highs

To open long positions on EURUSD you need:

The lack of fundamental data yesterday made it possible for buyers of the euro to maintain their position to build the next uptrend. At the moment, it is necessary to break the resistance of 1.1450, which will lead to a new growth of EUR/USD in the area of highs of 1.1490 and 1.1526, where I recommend to take profit. In case the euro declines in the first half of the day, you can look at long positions on a false breakout from the support level of 1.1413 or on a rebound from the low of 1.1379. However, the main movement will depend on today's decision on interest rates from Federal Reserve.

To open short positions on EURUSD you need:

Another unsuccessful consolidation in the first half of the day above the resistance of 1.1450 may lead to a re-decrease in EUR/USD in the area of the lower boundary of the side channel of 1.1413, the breakthrough of which will lead to a larger sell-off with the test of the lows of 1.1379 and 1.1342, where the main downward movement of course will depend on what the Fed members says during the press conference. In case the EUR/USD grows above the resistance of 1.1450, I recommend to look at the long positions on the rebound from the highs of 1.1490 and 1.1526.

Indicator signals:

Moving averages

Trading is conducted in the area of 30-day and 50-day moving averages, which indicates the formation of the lateral nature of the market with a likely change in the upward trend.

Bollinger Bands

The volatility of the Bollinger Bands indicator decreases, which does not give signals on entering the market and is another evidence of the withdrawal of large euro buyers from the market.

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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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Trading plan for NZD/USD for January 30, 2019

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Technical outlook:

An hourly chart has been presented for NZD/USD to have a short-term outlook for probable trade direction. The NZD/USD pair has been making higher highs and higher lows since 0.6700 levels as depicted here. Prices clearly stay above the trend line support, well into its buy zone. Since hitting highs at 0.6870 levels, the kiwi has been consolidating within a potential contracting triangle structure. Besides, please note that interim price support comes in at 0.6820, followed by 0.6750 levels, while interim resistance is seen at 0.6870 levels respectively. Looking into the current wave structure, the NZD/USD pair is expected to rally through 0.6870 levels, until prices stay above 0.6820 levels. The potential upside target could be close to 0.6900 levels. A potential bearish setup is then expected which could retrace the entire rally between 0.6700 and 0.6900 levels respectively.

Trading plan:

Long around 0.6830/40, stop below 0.6820, target 0.6900

Good luck!

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USD / JPY: the case when the outcome of the Fed meeting should be ignored

The dollar/yen pair has been trading in the framework of the 109th figure for more than a week without leaving this price area. After falling in early January to a multi-month low of 104.48, the pair regained its position and was stuck in a fairly wide-range flat, waiting for new drivers. But recent events are controversial, so the Japanese currency does not have sufficient arguments for its growth. Moreover, after the January meeting of the Bank of Japan, the yen can only rely on an external fundamental background, whereas internal factors play only against the currency.

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Let me remind you that at the first meeting this year, the Japanese regulator lowered forecasts for inflation. According to the Central Bank, core inflation in the next fiscal year (which begins in April) will grow by only 0.9%. These figures are clearly more modest than earlier forecasts. For example, in October, the regulator expected inflation to grow by 1.4%. This suggests that traders should not expect monetary tightening in Japan until the end of 2020. And although the market has not harbored "hawkish" illusions about the intentions of Haruhiko Kuroda for a long time, now we can finally put an end to this issue. Over the next two years, the Bank of Japan may change the parameters of monetary policy, except in the direction of easing, which is also a cautious rumor.

This fact has somewhat weakened the yen across the entire market, including paired with the dollar. However, the growth of USD / JPY was quite formal. The pair only "exchanged" 108 figure for 109. Dollar bulls were unable to take further steps, due to the softening of the Fed's rhetoric. As a result, we can observe the confrontation of two currencies, which are in a weakening stage. The end of this story will follow very soon. It is likely that by the end of this week.

The contradictory nature of the currency pair USD / JPY is that both the dollar and the yen are considered safe assets, so the influence of the external fundamental background can be interpreted by traders differently, depending on the combination of numerous nuances. For example, if we are talking about the escalation of the US-China trade war, in this case, the favor will be the US currency. The Japanese economy is too tied to the Chinese. For example, the IMF called the global trade conflict the main "culprit" in slowing down the main parameters of the island state. But the dollar, as a rule, "skims off" in the period of exacerbation of relations between Beijing and Washington (despite the fact that the conflict ricochets the US economy).

Today, a very unique situation has arisen. On the one hand, China and the United States resume trade negotiations, on the other hand, these negotiations will take place against the background of a growing scandal around Huawei and charges of violating anti-Iran sanctions. According to some experts, the "spy scandal" (we are talking about the theft of intellectual property) is deliberately inflated by Americans in the context of the upcoming talks. This factor will allegedly strengthen Washington's negotiating positions.

Nevertheless, both the American side and the Chinese pin great hopes on the upcoming visit of the delegation from the PRC. The meeting will be held at a "high" level, the host will include, inter alia, Finance Minister Steven Mnuchin, trade representative Robert Lighthizer and adviser to the American president on trade and industrial policy Peter Navarro. Then the Chinese delegation should accept Donald Trump, although this will depend on the outcome of the preliminary talks.

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Almost all experts are confident that this week (negotiations begin on Wednesday) a key stage of the negotiation process will take place. The outcome of a broad trade deal between the US and China depends on its outcome. And it would seem that such prerequisites should strengthen the risk sentiment in the market. But, alas, there is another side to the coin. So, the States earlier this week sent a request to Canada for the extradition of the financial director of Huawei Meng Wanzhou. In response, the Chinese Foreign Ministry expressed a protest to the United States and Canada, demanding that they abandon such intentions. In addition, Beijing "to pieces and dust" criticized the recently adopted law to strengthen official contacts and military ties between the United States and Taiwan. In addition, the Chinese were unhappy that the States unilaterally imposed sanctions against Venezuela (Washington blocked the assets of Venezuelan oil company PDVSA for $ 7 billion).

In other words, the news background is clearly not conducive to a "warm friendly conversation". Negotiations will not be easy and it is almost impossible to predict their outcome. On the other hand, the dollar is under additional pressure from the Fed's pigeon attitude. If tomorrow Jerome Powell announces a decrease in the rate of collapse of the Fed's balance sheet (or at least hints about it), then greenback will increase its decline throughout the market, and a pair of USD / JPY will not be an exception here.

Thus, the currency pair dollar/yen is entangled in a tangle of fundamental factors that sometimes contradict each other in the context of the expected reaction of traders. In this situation, we can recommend not to hurry with short positions on the pair USD / JPY, if tomorrow's Fed meeting ends not in favor of the dollar. Nevertheless, for the traders of this pair, the outcome of the US-China negotiations, which we will learn closer to the end of the week, will be of greater importance.

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Control zones USDCAD 01/30/19

In January, a downward medium-term momentum is clearly visible on the pair. This makes it possible to search for favorable prices for selling. The main resistance is NKZ 1/2 1.3313-1.3302. As long as the pair is trading below this zone, the downward movement remains an impulse. Favorable prices for selling are within the zone, however, the probability of returning within the limits of the monthly CP of January is 90%. This does not make it possible to enter into selling until the end of the current month.

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The model of continuing the decline has a low probability, and closing the month below below the zone of the average course in 90% of cases will lead to the formation of an upward correction model.

An alternative model is already being formed. Its goal is to update the weekly low. It is not profitable to work within the framework of this model, since the development of such situations fluctuates around 10%. To display such a trade advantage, it will require a preponderance in relation to risk to profit more than 1 to 10. After the end of the current month, the probability will increase to 70%.

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Day short - daily control zone. The zone formed by important data from the futures market, which change several times a year.

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

Monthly KZ - monthly control zone. The zone, which is a reflection of the average volatility over the past year.

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Technical analysis of EUR/USD for 30/01/2019

Technical analysis of EUR/USD for 30/01/2019:

The uptrend momentum is decreasing, will 61% Fibo be hit?

Technical market overview:

The bulls were too weak to break through the local technical resistance at the level of 1.1449 and the price was pushed lower towards the level of 1.1425 again. Currently, the market is consolidating the latest gains in this local range (1.1449 - 1.1425), but it looks like the upward momentum is decreasing. Moreover, the market conditions are now overbought and there is a visible bearish divergence between the price and momentum, so any move towards the 61% Fibonacci retracement at the level of 1.1462 would be a spike up only (12 pips breakout only) and the market should start to develop a deeper pull-back.

Weekly Pivot Points:

WR2 - 1.1506

WR1 - 1.1469

Weekly Pivot - 1.1377

WS1 - 1.1339

WS2 - 1.1268

Trading recommendations:

All buy orders from the lows of the level 1.1300 should be now set to trailing stop as the target for them is seen at the level of 1.1462. A strong price reaction is expected at the level, so it will be better to close the buy orders there. The traders who accept more risk might consider opening the sell orders directly from the level of 1.1462.

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Control zones NZDUSD 1/30/19

Once again, there is an exit beyond the monthly short-term of January. This does not make it possible to search for favorable purchase prices. A corrective decline to the broken zone comes to the fore. A sell pattern can be formed when the weekly high is updated. It is important to understand that a new countdown will start on Friday when building monthly short circuits. This will give the opportunity to work towards continued growth, and the barrier in the form of the January zone will become history.

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Now the pair is trading within the local accumulation zone that was formed this week. All conditions have been created for continued growth. NKZ 1/2 0.6799-0.6792 remained support, and Friday's movement is the momentum from which growth continues.

An alternative model will be continued movement in the flat. This requires the appearance of an offer and keeping the price below the high of the week. If this happens, the purpose of the decrease will again be NKZ 1/2. The best prices for the purchase are within this zone. The continuation of the growth will be confirmed if the closure of today's daily candle is above the Monday high.

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Day short - daily control zone. The zone formed by important data from the futures market, which change several times a year.

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

Monthly KZ - monthly control zone. The zone, which is a reflection of the average volatility over the past year.

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