Analysis of EUR/USD divergence for March 19: pair is ready to continue growth

4h

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As seen on the 24-hour chart, the pair consolidated above the retracement level of 127.2% (1.1285). Thus, the growth is expected to continue towards the retracement level of 100.0% (1.1553). Today, no indicators signal emerging divergence on any charts. If the pair closes below the level of 127.2%, it can be a sign of an upward USD reversal and resumption of a fall towards the retracement level of 161.8% (1.0941).

The Fibo grid is based on extremes of November 7, 2017 and February 16, 2018.

Trading recommendations:

Buy deals on the EUR/USD pair can be opened with the target at 1.1374, as the pair closed above the level of 1.1328. The stop loss order should be placed under the retracement level of 38.2%.

Sell deals on the EUR/USD pair can be carried out with the target at 1.1269 if the pair holds below the level of 1.1328. The stop loss order should be placed above the Fibo level of 38.2%.

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Analysis of GBP / USD divergence for March 19. A bullish divergence and rebound interrupted dollar growth

4h

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As seen on the hourly chart, the pair made the fourth drop from the Fibo level of 38.2% (1.3220) and climbed to the level of 23.6% (1.3228). Rejecting the price from this level will enable traders to expect a reversal in favor of the US dollar and a slight decline in the direction of the retracement level of 38.2%. Divergence which was forming on March 19 failed to develop. Closing the pair above the Fibo level of 23.6% will increase the chances of further growth towards the next retracement level of 0.0% (1.3380).

The Fibo grid is built on the grounds of the extremums from March 11, 2019, and March 13, 2019.

Trading advice:

Buy deals on GBP / USD pair can be opened with the target at 1.3380 and a stop-loss order below the level of 23.6% if the pair closes above 1.3281 (hourly chart).

Sell deals on GBP / USD pair can be opened with the target at 1.3220 and a stop-loss order above the level of 23.6% if the pair bounces off of the retracement level of 1.3228 (hourly chart).

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Technical analysis of NZD/USD for March 19, 2019

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Overview:

The NZD/USD pair breached resistance which had turned into strong support at the level of 0.6705. The pair is still moving around the daily pivot point of 0.6882. The level of 0.6705 coincides with a golden ratio, which is expected to act as major support today. The RSI is considered to be overbought, because it is above 70. The RSI is still signaling that the trend is upward as it is still strong above the moving average (100). Besides, note that the pivot point is seen at 0.6882. This suggests that the pair will probably go up in the coming hours. Accordingly, the market is likely to show signs of a bullish trend. In other words, buy orders are recommended to be placed above 0.6800 with the first target at the level of 0.6882. From this point, the pair is likely to begin an ascending movement to 0.6882 and further to 0.6984. The level of 0.6984 will act as strong resistance. On the other hand, if there is a breakout at the support level of 0.6705, this scenario may become invalidated.

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Technical analysis of USD/CAD for March 19, 2019

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Overview: The USD/CAD pair continues to move upwards from the level of 1.3228. Today, the first support level is currently seen at 1.3228. The price is moving in a bullish channel now. Furthermore, the price has set above the strong support at the level of 1.3228, which coincides with the 61.8% Fibonacci retracement level. This support has been rejected three times confirming the veracity of an uptrend. According to the previous events, we expect the USD/CAD pair to trade between 1.3228 and 1.3328. So, the support stands at 1.3228, while daily resistance is found at 1.3328. Therefore, the market is likely to show signs of a bullish trend around the spot of 1.3228. In other words, buy orders are recommended above 1.3228 with the first target at the level of 1.3328 and continue towards 1.3295. However, if the USD/CAD pair fails to break through the resistance level of 1.3328 today, the market will decline further to 1.3166 -1.3200.The material has been provided by InstaForex Company - www.instaforex.com

Latest Forecast March 19, 2019

As we wrote in the previous reviews, Brexit would be postponed for a long time. On Tuesday morning, the UK British Parliament's speaker announced that the House of Commons would not vote on the agreement with the EU once again. Looking back, the House has defeated this deal twice already with a significant majority of votes, about 400 against 200.

Thus, Britain's exit from the EU currently scheduled for March 29 will be postponed until 2020 or further.

The key event of this week is the Fed's decision on rates with its accompanying statement that are scheduled for Wednesday.

It might support the euro and the pound for an uptrend against the US dollar.

We are ready to buy the euro from 1.1360.

Alternative: we sell from 1.1175.

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Fundamental Analysis of USD/CAD for March 19, 2019

After a strong bullish momentum, the price is currently trading at the edge of 1.33 with certain indecision and volatility. Canada provided mixed economic reports, so CAD managed to sustain momentum over USD.

A positive employment report with a flat unemployment rate encouraged certain gains on the CAD side over USD. Canada is also facing the escalating debt effect which is derailing the economic growth and making the economy more vulnerable to financial instability. After 5 rate hikes since 2017, the Bank of Canada recently kept the ON target rate unchanged at 1.75% citing concerns over the global economic slowdown.

Recently Canada's Foreign Securities Purchases showed a significant increase to 28.40B from the previous negative figure of -20.49B which was expected to be at 15.03B. Ahead of Canadian CPI and Retail Sales report to be published on Friday, the pair is going to trade with higher volatility, though CAD could make some gains.

On the USD side, the Federal Reserve advocates for a cautious approach towards monetary policy that means a pause in the cycle of monetary tigthening in 2019. However, in 2020 if the US economy does not develop as planned, the regulator could resort even to rate cuts. Previously, some FED officials signaled that the key interest rate could increase to 3.00% to 3.50% with at least 2 rate hikes this year. However, under current economic conditions, the domestic economy is not ready for higher interest rates. The US economy is showing mixed economic results, for example, soft employment growth with rising wages. Recently US NAHB Housing Market Index report was published unchanged at 62 which was expected to increase to 63. Today US Factory Orders are expected to increase to 0.3% from the previous value of 0.1%.

Meanwhile, both the BOC and the FED express the dovish rhetoric with an effort to deal with the global crisis and lackluster economic data. So, the pair is set to trade with higher volatility in the coming days. A FOMC Statement will clear up whether the central bank shifts its tone from dovish to hawkish. If the rhetoric remains dovish, USD will lose momentum. On the other hand, CAD will have an opportunity to assert its strength to push the price much lower.

Now let us look at the technical view. The price formed an outside indecisive daily bar at the edge of 1.33 area after impulsive bearish momentum after rejecting off 1.3450 with a daily close. The price is still bearish. A break below 1.33 with MACD moving averages crossing over indicate further bearish momentum with a target towards 1.3150 and later towards 1.30 support area. As the price remains below 1.35 with a daily close, this price move will invite bears.

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Fundamental Analysis of GBP/USD for March 19, 2019

GBP/USD recently turned extremely volatile and corrective while pushing towards 1.3400-1.3500 resistance area amid an impulsive bullish trend. Ahead of BREXIT, the market sentiment on GBP is indecisive and confused, while USD is also struggling to maintain momentum.

After two and half years of negotiations with the European Union, the BREXIT scenario is still uncertain. There are different options like a delay, a departure from the EU with Prime Minister Theresa May's deal, a disorderly exit without any deal or another scenario. Prime Minister May called on BREXIT supporters to validate her deal by a European Council Summit. Otherwise, BREXIT may face a delay beyond June 30, 2019. As the recent vote passed on behalf of May, traders are gaining confidence with GBP.

Today UK Average Earning Index report is going to be published which is expected to decrease to 3.2% from the previous value of 3.4%, Unemployment Rate is expected to be unchanged at 4.0%, and Claimant Count Change is expected to have a positive result with a decline to 13.1k from the previous figure of 14.2k. Ahead of CPI data tomorrow which is expected to be unchanged at 1.8%, GBP is expected to maintain momentum.

On the USD side, the currency has lost ground versus GBP which is leading the price higher in a volatile manner. USD is likely to trade with higher volatility ahead of the FOMC policy update. The US central bank is widely expected to leave the official funds rate unchanged at 2.50%.

Currently the Federal Reserve advocates for a cautious approach towards monetary policy that means a pause in the cycle of monetary tigthening in 2019. However, in 2020 if the US economy does not develop as planned, the regulator could resort even to rate cuts. Previously, some FED officials signaled that the key interest rate could increase to 3.00% to 3.50% with at least 2 rate hikes this year. However, under current economic conditions, the domestic economy is not ready for higher interest rates. The US economy is showing mixed economic results, for example, soft employment growth with rising wages. Recently US NAHB Housing Market Index report was published unchanged at 62 which was expected to increase to 63. Today US Factory Orders are expected to increase to 0.3% from the previous value of 0.1%.

Meanwhile, GBP is expected to gain further momentum over USD ahead of BREXIT. However, the UK departure from the EU is expected to lead to severe GBP weakness despite USD waning momentum.

Now let us look at the technical view. The price is currently heading towards 1.3400-1.3500 resistance area while forming a Bearish Divergence along the way and signaling upcoming bearish momentum from a strong price area. The price showed a bearish rejection yesterday with a daily close residing inside the bullish mother bar which broke above 1.3100 area with a daily close. Currently the price is expected to climb towards 1.3400-1.3500 area from where the price could reject bulls under bearish pressure during a BREXIT decision week. As the price remains below 1.3500 area, this price move could invite bears.

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Fundamental analysis of USD/JPY for March 19, 2019

USD/JPY has been quite volatile after rejecting off the 112.00 area recently which lead the price to reside below 111.50. It is set to move further downward in the process. Japan posted upbeat economic results while the BOJ kept the interest rate unchanged. Amid that, JPY is expected to gain ground against USD in the process.

Japan's government aims to keep the economy growth at a moderate pace but drawbacks like worse economic reports and external trade war pressures dent the economic development. Japan's exports and factory output weakened due to a slowdown in the global growth. What is more, the US-China trade war is still unsettled. The Bank of Japan kept its rate unchanged last week but if needed the rates and monetary policy can be changed to keep the economy progress moderate.

Recently, the trade balance report was published with an increase to 0.12T from the previous figure of -0.29T which was expected to be at 0.09T. Besides, the revised industrial production also increased to -3.4% which was expected to be unchanged at -3.7%. Ahead of the Monetary Policy Meeting Minutes tomorrow, JPY gains are expected to be a bit volatile and corrective over USD in the process.

On the other hand, ahead of FOMC statement and Federal Funds Rate report which is expected to be unchanged at 2.50%, USD is expected to be quite volatile with the upcoming gains. Currently, the Fed is in the wait and see approach, so the interest rate is unlikely to be changed in 2019. Moreover, rate cuts may be observed in 2020 if the economy does not develop as planned. The US economy is currently dealing with mixed economic results along with a slowdown in jobs growth and rising wages. It is expected to affect the economy significantly.

Recently, the US NAHB Housing Market Index report was published unchanged at 62 which was expected to increase to 63. Today the US Factory Orders is expected to increase to 0.3% from the previous value of 0.1%.

As of the current scenario, USD, being affected be an economic slowdown and worse economic reports, is expected to lose momentum against JPY. Though Japan's economy is still quite vulnerable but being on the hawkish expectation, the Federal Reserve is indecisive. The current economic projection is expected to lead to certain USD weakness against JPY in the process.

Now let us take a look at the technical view. The price is currently residing below 111.50 area with a daily close but it is also held by the dynamic level of 20 EMA as support. The preceding non-volatile bullish trend has been carrying the price towards 112.00 area with strong momentum. However, a daily close below 111.50 indicates further downward momentum with a target towards 110.00-50 support area in the coming days. As the price remains below 112.00 area with a daily close, the bearish bias is expected to continue.

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Technical analysis of EUR/USD for 19/03/2019

Technical market overview:

The EUR/USD pair has hit the technical resistance at the level of 1.1353, but there is no sign of a reversal yet. The market conditions are now overbought and there is a bearish divergence forming in this time frame between the price and the momentum indicator. Please notice, that the recent move up from the level of 1.1176 is considered to be a corrective bounce in a downtrend, so the down move can resume any time now.

Weekly Pivot Points:

WR3 - 1.1502

WR2 - 1.1422

WR1 - 1.1372

Weekly Pivot - 1.1287

WS1 - 1.1251

WS2 - 1.1168

WS3 - 1.1131

Trading recommendations:

The bias is still to the downside and only sell orders should be opened. The entry level should be as close as possible to the level of 1.1353 with a tight protective stop loss and the first take profit level is seen at 1.1249.

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BITCOIN Analysis for March 19, 2019

Bitcoin is trading at the edge of $4,000. The price has been quite volatile and corrective since it broke above it with an impulsive daily close earlier. The price is moving lower with strong bearish momentum currently. Tenkan and Kijun line cross indicates further bearish momentum in the coming days.

The price recently broke below the Kumo Cloud support area as it turned quite thin and weak to hold the price higher above $4,000. The Chikou span is also residing below the price line while being held by the Kumo Cloud support. Amid the lack of positive fundamentals recently, BTC depends entirely on market sentiment. Though the price broke above $4,000 with a daily close, a break below the area with a daily close will define the earlier break as false. So, the price is set to move impulsively lower in the coming days. If the price remains above $3,800-80 support area, BTC price will have a chance to climb higher again in the coming days.

SUPPORT: 3,500-600, 3,800-80, 4,000

RESISTANCE: 4,250, 4,500

BIAS: BULLISH

MOMENTUM: VOLATILE

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Technical analysis of GBP/USD for 19/03/2019

Technical market overview:

Despite the lower low made at the level of 1.3183 not much has happened at the market. The GBP/USD pair is still moving inside of the narrow zone located between the levels of 1.3207 - 1.3304 as the horizontal correction continues after a wide swing we witnessed last week. There is no important price or candlestick pattern present currently in this market that would indicate a possible breakout in either direction. The momentum is now neutral but can pick up if the volatility will increase. The longer time frame trend remains bullish, so the bias is still to the upside and the main technical resistance is seen at the levels of 1.3362 and 1.3379.

Weekly Pivot Points:

WR3 - 1.3917

WR2 - 1.3636

WR1 - 1.3473

Weekly Pivot - 1.3224

WS1 - 1.3055

WS2 - 1.2794

WS3 - 1.2638

Trading recommendations:

The market is still in a consolidation phase, so it will be better to wait for a trading setup after the consolidation terminates. The best one would be a breakout in either direction, but due to the fact that the trend is still up, traders should prefer to buy in the local corrections and wait for the market to resume the up move. Only a sustained breakout below the level of 1.2959 would invalidate the short-term bullish bias and deepen the correction.

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Technical analysis for Gold for March 19, 2019

Gold price so far has held support at $1,292 and has also recaptured $1,300. As long as price is above $1,300-$1,292 support area we could see a move higher towards $1,322 and the next Fibonacci target.

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Red rectangle - short-term resistance

Blue rectangle - target if red rectangle is broken

Blue lines - support trend lines

Red line - support trend line (broken)

Gold price continues to trade above $1,300 and as Dollar is weakening we could see another try to move towards $1,320 or higher. The 61.8% Fibonacci retracement is a possible target as long as price and the RSI hold above their blue support trend lines. Resistance is found at $1,312 and if broken we have confirmation we are heading towards $1,322. So far price respects support and bulls remain in control of the short-term trend. Bears need to break at least below $1,300 in order to hope for more downside.

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Technical analysis for EUR/USD for March 19, 2019

EUR/USD continues to hold above the 1.13 support area and slowly but steadily has reached our next bounce target area of 1.1350-1.1380. The bearish divergence signs in the 4 hour chart remain and so our bearish medium-term view as long as we trade below 1.14.

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Blue line - bearish divergence

Red rectangle - bounce target and resistance

Red line - major resistance trend line

Green line- support

Orange rectangle - short-term support

EUR/USD is trading above 1.1330 and continues to make higher highs and higher lows. Support remains important at 1.13 and crucial for the short-term trend. As we noted in our past analysis, short-term trend will change to bearish on a break below 1.13. Medium-term trend remains bearish as long as we trade below 1.14 and below the red trend line resistance. The higher highs are not followed by confirmed new highs in the RSI. This implies that at least a pullback will be seen soon and most probably will bring price below 1.13.

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Elliott Wave analysis of Bitcoin for 19/03/2019

Technical market overview:

The BTC/USD pair has been trading in a horizontal zone between the levels of $4,000 - $4,080 for some time now, but the bias remains to the downside. The Bearish Engulfing candlestick pattern is the reason behind the bearish bias and the unfinished down cycles of the wave (a), (b) and (c). If the level of $3,891 is violated then the low for the wave (a) will be completed and the market will start the local wave (b) and (c). When those two waves are done, the whole corrective cycle in wave 2 will be completed.

Weekly Pivot Points:

WR3 - $4,456

WR2 - $4,282

WR1 - $4,180

Weekly Pivot - $4,000

WS1 - $3,897

WS2 - $3,712

WS3 - $3,614

Trading recommendations:

Due to the unfinished corrective cycle in the wave (a) (b) and (c) the sell orders should be placed as close as possible to the level of $4,076 with a protective stop loss above the level of $4,112.

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Elliott Wave analysis of Ethereum for 19/03/2019

Technical market overview:

Since the top of the wave (b) at the level of 143.51, the ETH/USD pair is slowly dropping lower making lower lows on its way. The first technical support at the level of 134.68 has already been tested, but this is not the end of the down move as the wave (c) is still being made. The next target is seen at the level of 127.85 and this bearish bias is valid as long as the orange trendline is not violated.

Weekly Pivot Points:

WR3 - 162.50

WR2 - 153.11

WR1 - 146.18

Weekly Pivot - 134.66

WS1 - 129.36

WS2 - 120.05

WS3 - 112.99

Trading recommendations:

The bearish wave progression to the downside has still not been completed, so only sell orders should be placed as close as possible to the level of 140.89 with a target seen at the level of 134.89 and if this level is violated - at 127.85. Please notice , the trendline (marked in orange) cannot be violated, otherwise, the scenario will be updated.

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Elliott wave analysis of GBP/JPY for March 19, 2019

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With the break below short-term important support at 147.36 it was confirmed, that a B-wave triangle had developed and more downside pressure towards 146.25 should be expected before the next impulsive rally will be ready to take over for a break above 148.03 on the way higher to 151.50.

R3: 148.39

R2: 148.03

R1: 147.79

Pivot: 147.45

S1: 147.00

S2: 146.70

S3: 146.25

Trading recommendation:

Our stop at 147.35 was hit for a 255 pips profit. We will re-buy GBP upon a break above 147.79.

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Elliott wave analysis of EUR/JPY for March 19, 2019

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We remain bullish expecting EUR/JPY to continue higher towards 127.50 as the next target. Only a break below support at 126.00 will delay the expected rally for a dip closer to 125.69 before the next rally higher.

Only an unexpected break below key support at 125.43 will question our bullish outlook.

R3: 126.93

R2: 126.57

R1: 126.25

Pivot: 126.08

S1: 126.00

S2: 125.69

S3: 125,43

Trading recommendation:

We are long EUR from 124.80 and will will raise our stop to 125.65.

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EUR/USD analysis for March 18, 2019

EUR/USD has been testing the 3-day resistance at the price of 1.1340 but there are still no larger buyers.

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According to the daily time-frame, we found bullish divergence active on the stochastic oscillator, which is a sign that the dominant cycle is for the upside. Today, price went higher and it failed to sustain a move above the 3-day high 1.1340, which caused the downward correction. The trend is still bullish and there are not signs of any reversal yet. Key short-term resistance is set at 1.1345 and key support at 1.1277.

Trading recommendation: We plan to buy EUR on the potential break of 1.1340 with a target at 1.1400 and protective stop at 1.1277.

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Trading plan for EUR/USD for March 19, 2019

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Technical outlook:

The 4H chart presented here indicates that the EUR/USD pair is clearly showing quite a bit of resilience and the bulls are determined to break through the initial resistance seen at the 1.1420 levels. As we have been discussing since last week, the EUR/USD pair seems to have bottomed at the 1.1175 levels on March 07, 2019. It has been drawing higher highs and higher lows since then and at lower degrees, one can count a potential impulse wave probably into its last wave higher. If the above count is complete, the EUR/USD pair is set to complete the wave 1 around the 1.1400/20 levels as highlighted here. It is more likely to take out resistance at 1.1420 than drop lower to the 1.1240 levels. Interim support can be taken at the 1.1175 levels for now, and till it remains in place, we will have a meaningful bottom. Look towards higher levels in the nearest future.

Trading plan:

Aggressive traders, remain long with a stop loss order at 1.1240 and a target above 1.1420.

Conservative traders, remain flat.

Good luck!

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Technical analysis: Intraday Levels For EUR/USD, Mar 19, 2019

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When the European market opens, some economic data will be released such as ZEW Economic Sentiment, German ZEW Economic Sentiment, and Italian Trade Balance. The US will also publish the economic data such as Factory Orders m/m, so amid the reports, the EUR/USD pair will move with low to medium volatility during this day. TODAY'S TECHNICAL LEVELS: Breakout BUY Level: 1.1394. Strong Resistance: 1.1387. Original Resistance: 1.1376. Inner Sell Area: 1.1365. Target Inner Area: 1.1338. Inner Buy Area: 1.1311. Original Support: 1.1300. Strong Support: 1.1289. Breakout SELL Level: 1.1282. (Disclaimer)

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Technical analysis: Intraday levels for USD/JPY, Mar 19, 2019

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In Asia, Japan will not release any economic data today, while the US will publish some economic data such as Factory Orders m/m. So there is a probability the USD/JPY pair will move with low to medium volatility during this day. TODAY'S TECHNICAL LEVELS: Resistance. 3: 112.83. Resistance. 2: 111.59. Resistance. 1: 111.37. Support. 1: 111.12. Support. 2: 110.90. Support. 3: 110.67. (Disclaimer)

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EUR/USD approaching resistance, potential drop!

EUR/USD is approaching our first resistance at 1.1362 (horizontal pullback resistance, 76.4% Fibonacci retracement, 100% Fibonacci extension) where a strong drop might occur below this level pushing the price down to our major support at 1.1318 (horizontal swing low support, 23.6% Fibonacci retracement). Stochastic (34,5,3) is also nearing our first resistance where we might see a corresponding drop in price. Trading CFDs on margin carries high risk. Losses can exceed the initial investment, so please ensure you fully understand the risks.

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NZD/USD approaching resistance, potential drop!

NZD/USD is approaching our first resistance at 0.6895 (horizontal swing high resistance, 78.6% Fibonacci retracement, 61.8% Fibonacci extension) where a strong drop might occur below this level pushing the price down to our major support at 0.6842 (horizontal swing low support, 61.8% Fibonacci retracement). Stochastic (34,5,3) is also nearing our first resistance where we might see a corresponding drop in price. Trading CFDs on margin carries high risk. Losses can exceed the initial investment, so please ensure you fully understand the risks.

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Analysis of Gold for March 18, 2019

Gold has been trading sideways at the price of $1.302.00. Potential double top formation is in creation.

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According to the H4 timeframe, we have found potential end of the upward correction (abc flat) in the background. It signals the opportunity for the bearish trend to continue. There is also a potential double top formed at the price of $1.306.00 and the doji candle on the test suggesting no demand for the Gold. We expect the price to test the swing low at $1.292.30 and $1.281.30. The key short-term resistance is at the price of $1.310.00.

Trading recommendation: we are bearish on the gold from $1.302.00 with the targets at $1.292.30 and $1.281.30. A stop loss order is to be placed at $1.311.00.

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Bitcoin analysis for March 18, 2019

Bitcoin has been trading sideways at the price of $3.956. Our first target is reached at $3.929, and we expect the second target to be hit as well.

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BTC is in consolidation phase (potential bullish flag pattern), and we anticipate the upward trend to continue. Stochastic oscillator is ready for an upswing. This is a good sign of an ongoing trend. Short-term resistance is seen at the price of $4.020 and $4.170. Key intraday support is seen at the price of $3.928.

Trading recommendation: We are bullish on BTC from 3.870, and we plan to add new position on the breakout of $4.000. Stop loss order is to be placed at $3.770, and take profit order is to be set at $4.170.

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Trading Plan for 03/18/2019

Overall: focus on the Fed.

The Brexit issue temporarily leaves the headlines since Britain's exit from the EU will be postponed for quite a while.

The top event of the new week is the Fed's decision on its monetary policy scheduled for Wednesday.

Everyone expects a soft statement by the Fed supporting the European currencies to grow.

We buy euros from 1.1350 with the targets up to 1.2000.

Alternative option: sell from 1.1175.

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Market activity slows down before FOMC meeting

The key event of this week, the US Federal Reserve's meeting on Wednesday, is not likely to bring any significant news to the market. The economic background looks unsustainable, while the data from the labor market turned out ot be mixed. Thus, there is no reason to expect the optimistic sentiment under current conditions.

On Friday, the US Treasury published a regular report on the inflow of foreign capital for the period including January. The overall balance is at a minimum of July 2016. Notably, the outflow began once Trump's administration initiated a trade war with China. There is a massive exit of foreign investors from the US stock market while the indices are maintained close to the highs at the expense of domestic reserves. However, one serious event is enough to question the stability of the entire pyramid.

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The euro has a weak bullish trend on Monday. It is still not strong enough to predict the price to go above 1.1360-65. The pair is likely to trade within the range with the support at 1.1290/1300. Market players are not expected to make any serious moves before the new data is out. Currently, they are waiting for the FOMC meeting.

GBPUSD

Theresa May's proposal to extend the deadline for Brexit to June 30, 2019, may ultimately favor all interested parties. This postponement will allow the elections to the European Parliament to be held under usual conditions, while the likelyhood of a no-deal Brexit will be lowered, so the investments stop reducing. Uncertainty remains, yet its negative impact on the pound will lower allowing it to make an attempt for further increase.

The pound can take advantage of lesser tension with a high likelihood of testing the recent high of 1.3350. At the same time, strong movements are unlikely until March 20. The pair will be trading sideways until any news regarding the US dollar appears.

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

March 18, 2019 : EUR/USD Bearish opportunity around upper border of trend channel.

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On January 10th, the market initiated the depicted bearish channel around 1.1570.

The bearish channel's upper limit managed to push price towards 1.1290 then 1.1235 before the EUR/USD pair could come again to meet the channel's upper limit around 1.1420.

Bullish fixation above 1.1430 was needed to enhance a further bullish movement towards 1.1520.

However, the market has been demonstrated obvious bearish rejection around 1.1430

That's why, the recent bearish movement was demonstrated towards 1.1175 (channel's lower limit) where significant bullish recovery was demonstrated on March 7th.

Bullish persistence above 1.1270 (Fibonacci 38.2%) enhanced further bullish advancement towards 1.1290-1.1315 (the depicted supply zone) where temporary bearish rejection was demonstrated.

Last week, the EUR/USD pair demonstrated a temporary bullish breakout above 1.1315 which was followed by a period of indecision/hesitation that brought the pair again within the depicted supply zone.

This week, another bullish breakout attempt is being executed above 1.1327 (61.8% Fibonacci level).

This probably enhance a further bullish movement towards 1.1370 and 1.1390 where the upper limit of the depicted movement channel is located.

On the other hand, bearish breakout below the price level of 1.1270 (38.2% Fibonacci) will probably liberate a quick bearish retraction towards 1.1160 again where the lower limit of the movement channel can be tested again.

Trade recommendations :

Conservative traders should wait for the current bullish pullback to pursue towards 1.1390-1.1400 for a valid SELL signal.

T/P levels to be located around 1.1330, 1.1290 and 1.1220. S/L to be located above 1.1450.

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

Analysis of EUR/USD divergence for March 18: pair is ready to continue moderate growth

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As seen on the 24-hour chart, the pair closed above the retracement level of 127.2% (1.1285). Thus, growth is expected to continue towards the retracement level of 100.0% (1.1553). Currently, there is no emerging divergence on the chart. If the pair closes below the Fibo level of 127.2%, it can be a sign of a reversal in favor of the American currency. Therefore, we can expect resumption of the downward trend towards the retracement level of 161.8% (1.0941).

The Fibo grid is based on extremes of November 7, 2017 and February 16, 2018.

Trading recommendations:

Buy deals on the EUR/USD pair can be opened with the target at 1.1394 if the pair closes above 1.1351. The stop loss should be placed below the retracement level of 61.8%.

Sell deals on the EUR/USD pair can be carried out with the target of 1.1299 if the pair rebounds from the level of 1.1351. The stop loss should be placed above the Fibo level of 61.8%.

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