The Central Bank of Australia signals a decrease in rates in June

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The Central Bank of Australia will consider lowering interest rates next month to support the economy, head of the Central Bank Philip Lowe said, calling on the recently re-elected government to make its contribution by reducing income taxes and increasing spending. "The lower rate will promote employment growth and bring closer the time when inflation will meet the goal. Given these factors, at our meeting in two weeks, we will consider the issue of lowering interest rates," said Lowe. The reduction will be the first after the Reserve Bank of Australia (RBA) in August 2016 lowered rates to a record low of 1.50%.

Investors and analysts welcomed this move, saying that it could help revitalize the housing market in the country. The main result of the changes should be a significant increase in the maximum volume of loans for the purchase of real estate. Australian economic growth has slowed to 0.8% year on year, and there are signs that the recession will continue. Inflation also remains below the RBA target range of 2-3%, while the unemployment rate has risen to an eight-month high of 5.2%. Lowe pointed to the slowdown in household consumption as the main cause of the economic downturn. The head of the Central Bank called on the government to help accelerate economic growth, including through additional fiscal support, infrastructure spending and changes in government policies to increase business investment.

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The dollar will continue to rise, the euro and the "Aussie" under pressure

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The dollar does not plan to leave the recently occupied 2-week maximum in the near future, support for the currency provides the status of a safe haven amid growing concerns that trade tensions between the US and China may escalate after Washington's statements about Huawei. The dollar has established itself as a safe haven, it is in high demand when stocks fall and market volatility increases. In addition, a rebound in the yield of US Treasury bonds is another factor supporting the dollar. Given that the Fed did not give clear hints of a rate cut this year, the recovery in yield may continue for some time.

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Recall, Fed Chairman Jerome Powell said that it is too early to talk about the impact of trade conflicts on monetary policy. The yield on 10-year Treasury bonds rose to an eight-day high of 2.428%, while a few days ago the yield fell to 2.354%, its lowest level since March 28. Currently, among industrialized countries, only Italy has a higher rate than the United States. In such conditions, traders have almost no other choice but to turn to the dollar.

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The euro fell to $1.1165 and is likely to feel downward pressure until the end of the European parliamentary elections scheduled for May 23-26. The Australian dollar fell by 0.25% to $0.6891, its growth was stopped by a statement from the head of the Reserve Bank of Australia, Philip Lowe, that the Central Bank will consider reducing interest rates at its policy meeting in June. The decline will be the first since August 2016. The Australian added almost 0.6% a day earlier after the unexpected victory of the country's conservative government in elections. Investors evaluated the economic policies of the opposition Labor Party as less favorable to business, and the unexpected defeat of the Labor Party led to a rally in Australian markets.

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Technical analysis of GBP/USD for May 21, 2019

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Overview:

The GBP/USD pair continues to move downwards from the level of 1.2905. This week, the pair rose from the level of 1.2905 to a top around 1.2800 and it set around the spot of 1.2800. The first resistance level is seen at 1.2905 followed by 1.2963 , while daily support 1 is seen at 1.2798 (38.2% Fibonacci retracement). According to the previous events, the GBP/USD pair is still moving between the levels of 1.2700 and 1.2610; so we expect a range of 90 pips in coming hours. Furthermore, if the trend is able to break out through the first support level at 1.2662, we should see the pair climbing towards the double bottom (1.2436) to test it later. Therefore, sell below the level of 1.2800 with the first target at 1.2610 in order to test the daily resistance 1 and further to 1.2436. Also, it might be noted that the level of 1.2436 is a good place to take profit because it will form a double bottom. On the other hand, in case a reversal takes place and the GBP/USD pair breaks through the resistance level of 1.2905, then the stop loss should be placet at 1.2930.

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Overview of GBP/USD on May 21. The forecast for the "Regression Channels". The collapse of the pound will continue this week

4-hour timeframe

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Technical data:

The upper linear regression channel: direction – down.

The lower linear regression channel: direction – down.

The moving average (20; smoothed) – down.

CCI: -110.1798

The pound spent the first trading day of the week in absolute calm, and the bulls did not have enough strength even to start the correction against the background of a complete lack of macroeconomic events. Thus, the conclusion suggests itself, there are currently no bulls in the Forex market for the pair GBP/USD. Unfortunately, there are no new data on the topic of Brexit now either. Theresa May announced a "new and bold" proposal to Parliament, however it is unknown when it will be announced. It is only known that a new vote on the "deal" should take place in early June, that is, in two weeks. Meanwhile, the pound continues to depreciate, because the patience of traders banal ended. Three years after the referendum, Theresa May has been actively negotiating with the EU for the last year, but she hasn't been able to agree on a "deal". Local elections in the UK have shown that Theresa May and her party believe less and less of the electorate. And if earlier, the pound often grew on the expectations that the government of Theresa May will still be able to settle all the differences between the Parliament and the European Union, now there is almost no hope. But on the horizon looms the "wonderful" prospect of a second referendum, which the Parliament itself can initiate, if, for example, the fourth attempt to accept Theresa May's agreement fails.

Nearest support levels:

S1 – 1.2695

S2 – 1.2634

S3 – 1.2573

Nearest resistance levels:

R1 – 1.2756

R2 – 1.2817

R3 – 1.2878

Trading recommendations:

The pair GBP/USD continues its downward movement. Thus, short positions with targets at 1.2695 and 1.2634 are now relevant, before Heiken Ashi's indicator turns to the top, which will indicate a turn of upward correction.

It is recommended to consider long positions after consolidation of the pair above the moving average with the targets at 1.3000 and 1.3062. However, at the moment, there are almost no bulls on the market.

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

Explanation of illustrations:

The upper linear regression channel – the blue line of the unidirectional movement.

The lower linear regression channel – the purple line of the unidirectional movement.

CCI – 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.

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

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Overview of EUR/USD on May 21. The forecast for the "Regression Channels". The calendar is empty but the US dollar still

4-hour timeframe

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Technical data:

The upper linear regression channel: direction – down.

The lower linear regression channel: direction – up.

The moving average (20; smoothed) – down.

CCI: -99.2453

The minimum correction of the EUR/USD pair ended near the Murray level of "-1/8" - 1.1169. It can already be noted that the indicator Heiken Ashi has turned down, which means the bears are ready for new sales of the euro. Thus, the short-term trend on the 4-hour timeframe is not too strong yet, and the euro, as we noted earlier, is likely to fall to the Murray level of "-2/8" - 1.1108. In fundamental terms, the currency market is now completely calm. In principle, this is noticeable even at the minimum volatility of the euro/dollar pair in recent days. Today, neither the European Union nor America will again have an important macroeconomic publication. Thus, traders can only rely on technical factors that clearly point down when making trading decisions. Donald Trump, who was recently the main newsmaker, turned his attention to Iran, so there is no new information on the topic of trade wars at the moment either. The bottom line is that we have a confident and moderate increase in the US dollar, which Trump most likely wants to influence exclusively through the Fed's monetary policy, on which he has no influence. Accordingly, there will be new attempts to put pressure on Jerome Powell to reduce the key rate.

Nearest support levels:

S1 – 1.1108

Nearest resistance levels:

R1 – 1.1169

R2 – 1.1230

R3 – 1.1292

Trading recommendations:

The EUR/USD currency pair continues to move down and overcome the level of 1.1169. Thus, the sell orders remain relevant with the target of 1.1108 until the new reversal of the Heiken Ashi indicator to the top.

It is recommended to consider short positions on the euro/dollar pair very carefully and with small lots not earlier than fixing the price above the moving average line with the first target of 1.1230.

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

Explanation of illustrations:

The upper linear regression channel – the blue line of the unidirectional movement.

The lower linear regression channel – the purple line of the unidirectional movement.

CCI – the 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.

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

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Technical analysis of USD/CHF for May 21, 2019

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Overview:

The USD/CHF pair continues moving in a bullish trend from the support levels of 1.0123 and 1.0177. Currently, the price is in an upward channel. This is confirmed by the RSI indicator signaling that the pair is still in a bullish trend. As the price is still above the moving average (100), immediate support is seen at 1.0177. Consequently, the first support is set at the level of 1.0177. So, the market is likely to show signs of a bullish trend around 1.0177. In other words, buy orders are recommended above the level of 1.0177 with the first target at the level of 1.0265. Furthermore, if the trend is able to breakout through the first resistance level of 1.0265, we should see the pair climbing towards the point of 1.0314. However, it would also be wise to consider where to place a stop loss; this should be set below the second support of 1.0123.

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Simplified wave analysis and forecast for GBP/USD and USD/JPY on May 21

GBP/USD

The direction of the price movement of the pound from May 3 is set by a bearish wave. The site completes the larger downward wave model from March 13. The price came close to the upper boundary of the wide zone of the potential reversal of the older TF.

Forecast:

The overall flat mood of the pair price fluctuations is expected today. In the morning, the most likely decline. By the end of the day, the chance of a reversal and the beginning of a counter price rise increases.

Recommendations:

Trading the British currency today is recommended only within the framework of intraday. It is proposed to link the direction of trade transactions with the described sequence. At the same time, it is wiser to reduce the trading lot.

Resistance zones:

- 1.2770 / 1.2800

Support zones:

- 1.2690 / 1.2660

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USD/JPY

On the weekly scale of the Japanese yen chart, an upward zigzag wave is formed. The last section was bearish, completing the correctional phase of the wave. The price rise from May 13 has a reversal potential. The structure of the bull wave looks complete. The price reached the resistance zone of the older TF.

Forecast:

To form a full-fledged reversal structure, a downward correction is needed. Today, the upward trend is expected to continue until its full completion in the calculated resistance zone. Change of course should wait at the end of the day or tomorrow.

Recommendations:

Purchases of the pair have limited potential and only possible in the form of short-term "pipsing". By the end of the day, there will be an opportunity to earn on short trades. Supporters of multi-day trading are advised to wait for the lean formation of a downward pullback and to look for entry signals in long positions at its end.

Resistance zones:

- 110.30 / 110.60

Support zones:

- 109.70 / 109.40

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Explanations to the figures: Waves in the simplified wave analysis consist of 3 parts (A – B – C). The last unfinished wave is analyzed. Zones show areas with the highest probability of reversal. The arrows indicate the wave marking according to the method used by the author, the solid background is the formed structure, the dotted ones are the expected movements.

Note: The wave algorithm does not take into account the duration of tool movements over time.

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EUR and GBP: A strong labor market is not a reason for rising inflation. Problems in pound can be added

As an order, yesterday, a number of Fed representatives discussed the topic of the labor market and the level of inflation, which, apparently, do not depend on the US anymore. The lack of important fundamental statistics prompted investors to take a wait-and-see position before important reports, as well as elections to the European Parliament. The absence of a deal between Labor and the Conservatives of Great Britain also pushes away the supporters of the British pound from purchases.

During yesterday's speech, Federal Reserve Chairman Richard Clarida said that the US labor market cannot go beyond full employment, even if the unemployment rate is below 3.6%. Therefore, you should not worry about the risk of growth of potential inflation. According to Clarida, inflation has become less sensitive to labor shortages.

A similar statement was made by the President of the FRS-New York, John Williams, who yesterday spoke about the views of the Central Bank leaders on low unemployment, which, most likely, will not provoke inflation. Williams said that the economy can have a strong labor market in the absence of rising inflation. Let me remind you that at present, inflation in the United States remains below the target level of the Fed, which is about 2%. All this happens at the moment of a strong labor market, where wage growth continues and a shortage of qualified personnel continues to increase. A number of experts note that precisely because of the low level of unemployment, the leaders of the Federal Reserve System abandoned plans to further increase interest rates, as this could lead to an even greater slowdown in the growth of the inflationary background.

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As for the current technical picture of the EURUSD pair, it remains unchanged, and did not make major changes yesterday. Further movement will depend on parliamentary elections. There is support in the area of 1.1135, below which it will be difficult for the bears to break through from the first rose. As for the upward correction, it will be limited by the resistance of 1.1205, where you can count on a return to the market of sellers of the European currency.

The British pound, meanwhile, remains under pressure, but the pause in the downward movement is directly related to today's hearings in Parliament on inflation, as well as the speech made by the Governor of the Bank of England Mark Carney on this topic. If Carney does not report problems with rising inflation and exceeding its target level, then, apparently, the pressure on the pound will return, as a breakthrough in negotiations between the two main parties in the UK increased the risk of leaving the EU without a deal. To all this, there was talk that the risks of Britain's exit from the EU without an agreement can grow even more if the British Prime Minister Theresa May was replaced by a Brexit supporter as the leader of her party. Given the fact of how quickly May loses her leadership position, the scenario of a hard break in relations is not excluded.

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Brent is preparing for war

Donald Trump scares Iran with "enormous power." When there are groups that drive the market in multiple directions. As a rule, the price of an asset regularly slips into consolidation. Oil is no exception. Since the beginning of the year, its main varieties have grown by about 40% on expectations that the end of the trade war will increase global demand, and a reduction in production by OPEC and other producing countries, including Russia, will balance the market. BofA Merrill Lynch is sure that this will happen already in 2019, and black gold will face a deficit in 2020. The resumption of the trade conflict between the United States and China made adjustments to this coherent theory and it would seem that they should have forced speculators to take profits on long positions if Iran had not intervened.

For the time being, Tehran's loud statements to close the Strait of Hormuz through which about 16.8 million b/s passes or about one-third of all deliveries in the world using sea and ocean tankers, seemed to be idle shots into the air. However, the attacks of four ships and two of which belonged to Saudi Arabia, which forced investors to reconsider their views. In response to the bombings in Baghdad, Iran could have applied, according to the White House. Donald Trump began to threaten the latter with "enormous force".

Dynamics of oil transportation

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Growth of Brent and WTI was promoted by the information on the desire of OPEC led by Saudi Arabia to prolong the agreement on the reduction of production to the end of 2019. Riyadh asks not to be deceived about the current price increase and to continue the implementation of the plan to balance the market. There is information that with current oil prices that suit Russia. Moscow will insist on reducing the cut from 1.2 million b/s to 201 million b/s as specified in 2018, but the Saudis call this idea not the best solution.

At the same time, it is necessary to understand that the "bulls" in Brent and WTI deprived an important Trump card in the form of expectations of growth in global demand for black gold after the end of the trade war. Donald Trump said he would not allow China to overtake the United States while he was in office. If Hillary Clinton won in 2016, the castling took place during her tenure in power. The policy of protectionism causes a serious blow to the GDP of the Middle Kingdom, which already this year can slow down to less than 6%. The last time such figures occurred three decades ago.

Despite the fact that oil is not yet an object on which tariffs are charged, China has reduced its imports from the United States. About 24% of US exports went to the Middle Kingdom In March 2018 and then, the figure dropped to 4% in March 2019. Donald Trump said he would not allow China to overtake the United States while he was in office. If Hillary Clinton won in 2016, the castling took place during her tenure in power. The policy of protectionism causes a serious blow to the GDP of the Middle Kingdom, which already can slow down to less than 6% this year. The last time such figures occurred was three decades ago.

Technically, Brent continues to form a consolidation range of $ 68.6-74.5 per barrel in the Splash and Shelf pattern on the daily chart. Breaking through its upper boundary will create prerequisites for the realization of target by 161.8% on AB = CD. On the contrary, a successful assault of $68.6 support will open to the bears the way to a decline in the direction of the target by 88.6% based on the Bat model.

Brent daily chart

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Control zones for EUR/JPY pair on 21.05.19

Today's testing of 1/4 WCZ of 122.95-122.87 provides an opportunity to enter the sale. The first goal is a decline at least last week and a test of which will allow closing the part of the position. If sales are already open, it is necessary to keep them until the pair consolidates above the level of 122.95, which will allow changing the direction of work.

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Today we can expect a decline in the framework of the average daily rate and the achievement of which will oblige to transfer the position to breakeven in the event of large demand.

An alternative model will be developed in case the pair can consolidate above the level of 122.95 in today's US session. It will oblige to close all sales and consider further growth to the next 1/2 WCZ of 123.85-123.69 at the resistance zone, where the fate of the downward bearish momentum will be determined.

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Daily CZ - daily control zone. The area formed by important data from the futures market, which changes several times a year.

Weekly CZ - weekly control zone. The area formed by marks from the important futures market, which changes several times a year.

Monthly CZ - monthly control zone. The area is a reflection of the average volatility over the past year.

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Control zones of AUD / USD pair on 05/21/19

Today's movement in the Asian session has already exceeded the average daily rate, which indicates a high probability of a fall to stop. It is important to understand that any growth will be corrective. Therefore, it is necessary to look again for favorable prices for the sale of the instrument. The first goal of the fall is a weekly minimum, testing of which will require partial fixation of a short position.

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The next reduction target will be the 1/2 WCZ of 0.6844-0.6837, formed from the previous control zone. Achieving this zone will allow you to completely close sales and expect further developments.

An alternative model will be developed if the closure of today's US session occurs above the Asian maximum. This will indicate the appearance of a large buyer and a possible trend change to an upward one. The probability of implementing this model is 30%, which makes it auxiliary. Purchases from the current rates are not profitable.

Daily CZ - daily control zone. The area formed by important data from the futures market, which changes several times a year.

Weekly CZ - weekly control zone. The area formed by marks from the important futures market, which changes several times a year.

Monthly CZ - monthly control zone. The area is a reflection of the average volatility over the past year.

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Italian behind-the-scenes games can be the main driving force for the euro

The EUR/USD pair quickly lost the points scored yesterday with the target at the area of 1.1150.

It is assumed that if the pair drops below the level of 1.1100, this will mark the breakthrough of an important support level and cause more intense pressure on the bears.

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According to experts, the EUR/USD pair is stronger this week than all the others threatened by a surge in volatility.

Tomorrow, the European Central Bank President Mario Draghi will give a speech. It is possible that investors will look in the words of the head of the ECB for hints on the specific parameters of the next program of long-term lending to banks and on possible incentives.

On Thursday, there will be releases of eurozone business activity indicators, which will help to form an updated assessment of the state of the currency block economy.

In addition, elections will be held in the European Parliament (from 23rd to 26th May) this week. At the moment, there is a tense struggle between supporters and opponents of the EU and the main issue remains the degree of support that populists enjoy. If euro skeptics succeed in taking a significant number of seats in parliament, they can stop any progress for the next 5 years.

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According to Citi experts, after May 26, when the results of the elections to the European Parliament will be made public, backstage games of Italian politics can become the main driving force for the euro.

"The European elections will determine the balance of power within the Italian coalition. The results in favor of the right wing are likely to mean further confrontation with the EU. Moreover, the confident victory of the right-wing candidates may result in new elections in the country, "said Citi representatives.

Analysts believe that the threat of a change of power in Italy, along with the uncertain situation around Brexit and weak macroeconomic indicators in the EU, will hamper the strengthening of the euro.

In particular, Deutsche Bank revised downward forecast for EUR/USD pair from 1.25 to 1.13 for 2019.

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Trading plan for EUR / USD and GBP / USD pairs on 05/21/2019

The market has stopped and it is not clear whether everyone was stunned by how quickly the dollar has strengthened in recent days or they decided to take a short break. Although the fact is rather that they simply could not find any reasons for purchases or sales because yesterday was completely empty from the point of view of any information that could help in making a decision. No statistics were published and all hope was only for the speech of Jerome Powell, who spoke on the risks to the American financial system. However, the head of the Federal Reserve did not say anything new. For several months in a row, all the representatives of the Federal Reserve System deal only with what they say about the rather unfortunate consequences for the economy that the trade conflict between the United States and China entails. However, they constantly indicate that all these risks are only in the future and can still be avoided.

Moreover, Mr. Powell did not say anything about the refinancing rate and the possibility of reducing it. Although his colleagues in the Federal Commission on operations on the open market deal only with those who claim that they see no reason for such steps. British politicians also did not bring anything new, deciding to wait with yet another loud statements regarding Brexit. Hence, investors had to sit and wait for the weather by the sea as they see no reason for such steps. British politicians also did not bring anything new, deciding to wait with yet another loud statements regarding Brexit. Hence, investors had to sit and wait for the weather by the sea.

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Today, the situation is not much better since only data on home sales in the secondary market of the United States, which can grow by 2.6%, is released from macroeconomic statistics. The data is not that important, so there will be no special effect. Moreover, the lull in the market is largely due to the upcoming publication of the text of the minutes of the meeting of the Federal Commission on Open Market Operations, in which they hope to find answers to questions regarding further actions by the regulator, especially in terms of the refinancing rate. For the reason that the market participants themselves are not particularly tuned to sudden movements. It is better to be safe and remain cautious until there is any specificity.

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The euro/dollar currency pair, similarly to a fellow, showed a movement standing in one place, where a bearish interest remains in the market after all. Probably, it suggests a further decline towards 1.1135, which was the local minimum on May 3.

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The pound/dollar currency pair has dramatically slowed the movement for the last trading day, remaining all the time in the same place, to say the least. It is likely that against the general background. The downward movement will continue, lowering us towards 1.2665.

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Forecast for EUR/USD and GBP/USD on May 21. The dollar retained its advantage over the euro and the pound on a boring Monday

EUR/USD – 4H.

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Quotes of the euro/dollar pair performed consolidation under the retracement level of 100.0% (1.1177), return to this level, rebound from it, and all this happened on Monday, when the Forex market, by and large, was asleep all day. Since no news came out yesterday, traders had nothing to analyze. Thus, the weak desire of traders to trade is understandable. The consolidation of the euro/dollar exchange rate above the retracement level of 100.0% will allow traders to expect a reversal in favor of the European currency and some growth in the direction of the retracement level of 76.4% (1.1241). However, the release quotes from the level of 100.0% increase the chance for a decline of the pair towards the Fibo level of 127.2% (1.1102). Tuesday will be as empty as Monday in terms of news. Europe and the US continue to "rest" today. Possible messages from Donald Trump, who likes to excite the public through his Twitter. Otherwise, nothing interesting is expected today. The euro has already shown a weakness of the desire to restore growth, so it is likely to continue a slow decline.

The Fibo grid was built on the extremums from March 7, 2019, March 20, 2019.

Forecast for EUR/USD and trading recommendations:

The EUR/USD pair continues to show a desire to continue the process of falling towards the level of 1.1102. Thus, I recommend selling the euro for this purpose, with a protective order above the Fibo level of 100.0%. I recommend buying the pair after the close above the retracement level of 100.0% to the Fibo level of 1.1241.

GBP/USD – 4H.

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As seen on the 4-hour chart, the pound/dollar quotes will continue the process of falling in the direction of the retracement level of 23.6% (1.2639). After several days of maturing, a bullish divergence has finally formed in the CCI indicator, which allows traders to expect a reversal in favor of the pound and some growth of the pair. Closing the pound/dollar quotes above the Fibo level of 38.2% (1.2765) will significantly increase the chances of continued growth in the direction of the retracement level of 50.0% (1.2867). But at the moment, we see only the lack of any desire in the market to buy English currency. Despite the strong divergence, traders did not start buying the pound on Monday. Maybe the news will help the pound today? It is also unlikely, since there are no news scheduled for today, moreover, traders have recently paid no attention to news from Britain, even if they are positive.

The Fibo grid is built according to the extremes of September 20, 2018, and January 3, 2019.

GBP/USD – 1H.

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The hourly chart for GBP/USD shows an almost identical picture to the 4-hour chart. For a long time, the bullish divergence was brewing, after which all the low quotes and the indicator were mixed up and the divergence was canceled. But there was a bearish divergence in the CCI indicator, which is much more likely to be worked out by Forex. The pound is still not favored by traders, thus, on May 21, the process of falling may continue towards the retracement level of 161.8% (1.2673). The rebound of the pair from this level will allow traders to count on a reversal in favor of the pound and some growth in the direction of the Fibo level of 127.2% (1.2782).

The Fibo grid is built on the extremes of April 25, 2019, and May 3, 2019.

Forecast for GBP/USD and trading recommendations:

The GBP/USD pair continues the process of falling, so I recommend selling the pair with a target of 1.2673 with a stop loss order above the bearish divergence peak. I recommend buying the pair in very small volumes at the rebound from the Fibo level of 161.8% (hourly chart) with a target of 1.2782 and a protective order at the level of 161.8%. But it is best to abandon the purchase of the pound sterling.

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Bitcoin. Bitcoin is preparing a new wave of growth

The Bitcoin exchange rate is preparing for a new wave of growth, and it must be done in the near future, otherwise, the risk of a larger downward correction will increase significantly.

Signal to buy Bitcoin (BTC):

Bitcoin buyers face a level of 8100, the breakthrough of which will provide good demand and lead to new annual highs in the area of 8440 and 8700, where I recommend fixing the profit. Of course, the main goal will be the test of the psychological mark of 9000 USD. In the down scenario, there is a support level of 7650, but it is best to open long positions immediately on a rebound from a minimum of 7250.

Signal to sell Bitcoin (BTC):

Bears should wait for the formation of a false breakdown in the resistance area of 8150, and it is best to try to return Bitcoin to the support level of 7650, from where the demolition of a number of stop orders will collapse the cryptocurrency rate to the area of minimums 7260 and 6820, where I recommend fixing the profit.

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Trading recommendations for the EURUSD currency pair - placement of trading orders (May 21)

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Key levels

Zones of resistance: 1.1180; 1.1180; 1,1300 **; 1.1440; 1.1550; 1.1650 *; 1.1720 **; 1.1850 **; 1.2100

Support areas: 1.1112; 1.1080 *; 1.1000 ***; 1,0850 **

* Periodic level

** Range Level

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Indicator analysis. Daily review for May 21, 2019 for EUR / USD and GBP / USD currency pairs

On Monday, the market in both currencies moved to the side channels. The GBP / USD pair opened with a gap upwards, and then they tried to close it all day. On the other hand, the EUR / USD pair remained in a standby mode. Traders could not decide in any way where to go further, or what to break through - either the line of support or resistance. On Tuesday, strong calendar news comes out at 8.30 and 14.00 Universal time.

Trend analysis (Fig. 1).

Today, the price can continue to move downwards with the target of 1.1147 - the support line (blue bold line) and further movement downwards with the target of 1.1112 - the lower fractal.

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Fig. 2 (daily schedule).

Comprehensive analysis:

- indicator analysis - down;

- Fibonacci levels - down;

- volumes - down;

- candlestick analysis - up;

- trend analysis - down;

- Bollinger lines - down;

- weekly schedule - down.

General conclusion:

On Tuesday we are waiting for the continuation of the downward movement. The first lower target of 1.2662 is the pullback level of 76.4% (blue dashed line).

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Wave analysis of EUR / USD and GBP / USD for May 21. China accuses America of disrupting trade agreement negotiations.

EUR / USD

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On Monday, May 20, trading on the Forex market ended for the pair EUR / USD with a rise of several base points. However, the wave pattern remains the same and implies the construction of a downward wave of 3, 3, 3 as part of a downward trend section with targets located below the 11th figure. On Monday, the markets did not receive any interesting news and reports from world leaders. Only China said that negotiations with Trump on trade conditions were really deadlocked, and the American side was blamed for this. Allegedly, the States do not show sincerity and increase pressure, using various tricks to disrupt the negotiations. In fact, this only means that countries are unlikely to be able to agree in the near future. The US dollar, which continues to rise against the euro, may respond to this event with a new increase.

Sales targets:

1.1097 - 161.8% Fibonacci

1.1045 - 200.0% Fibonacci

Purchase goals:

1.1324 - 0.0% Fibonacci

General conclusions and trading recommendations:

The euro / dollar is still in the process of building a downward trend. Now, I recommend the bears to remain on the instrument with targets of 1.1097 and 1.1045, which corresponds to 161.8% and 200.0% in Fibonacci and a restrictive order above the level of 50.0% in Fibonacci, which can be gradually carried down.

GBP / USD

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On May 20, the GBP / USD pair lost another 10 basis points and continues to build the estimated wave. Monday was marked by extremely low activity in the foreign exchange market. Nevertheless, wave c still looks very simple, but there are no signs of completion for its construction right now. An unsuccessful attempt to break the Fibonacci mark of 161.8% can lead to a departure of quotes from the lows reached. News background remains negative for the pound sterling. There are no positive news and messages from the UK. Accordingly, the markets find no reason to refuse selling the pound sterling. As a result, the decline in the pair GBP / USD will continue. Markets are waiting for the fourth vote in agreement with the European Union. And if the parliament again refuses to accept this agreement, then, at this moment Theresa May will surely resign.

Sales targets:

1.2675 - 161.8% Fibonacci

1.2554 - 200.0% Fibonacci

Purchase goals:

1.3175 - 0.0% Fibonacci

General conclusions and trading recommendations:

The wave pattern of the pound / dollar instrument implies a continuation of the instrument decline within the wave c. Thus, now, I recommend sales with targets located near the estimated marks of 1.2675 and 1.2554, which corresponds to 161.8% and 200.0% in Fibonacci. An unsuccessful attempt to break through the 161.8% mark may lead to a departure of quotes from the lows reached.

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Trading recommendations for the currency pair GBPUSD - placement of trading orders (May 21)

For the last trading day, the currency pair pound / dollar showed an extremely low volatility of 42 points, remaining, to put it in a strictly speaking manner, in one place. From the point of view of technical analysis, we see a rather sharp slowdown after the quotation has gone down to the value of 1.2711. The narrow stagnation-pullback that we observed clearly reflects a large number of short positions. You just analyze the last trading week, how rapid the downward movement was. Bearish positions are overheated - of course, but they are held, and this is a fact, otherwise they would have seen a rapid correction. For the information and the news background, the next meeting of British Prime Minister Theresa May with her cabinets, where she is trying to find support in order to push the divorce agreement with the European Union once again. Theresa is currently discussing proposals to make the agreement more attractive to the opposition Labor Party, potentially including tighter customs relations with the bloc. Let me remind you that last week, the pound collapsed by more than 2%, since Theresa May announced that she would set a timetable for her departure, and it looks like her receiver will seek a hard exit from the EU if the deadlines are tight. Returning to the news background, we see that no statistics were released yesterday, and the only thing that can be singled out is the presentation by Fed Chairman Jerome Powell on the subject of the growing threats to the stability of the financial system of the United States, which we saw on the night of May 20 to 21 (11:00 UTC+00.) As much as speculators wanted to ride on this show, as a result, we didn't see anything like that. Why? Jerome Powell didn't say anything new in his words. Yes, there is a threat to the economy of the United States from the trade war with China, but the Fed takes a waiting position, analyzing everything that happens. At the same time, the head of the Federal Reserve Bank of Atlanta, Raphael Bostic, said yesterday that he did not expect an early reduction in interest rates.

"I would say that I don't expect a quick reduction in rates, especially by September. Something must happen to make this happen," said Bostic.

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Today, in terms of the economic calendar, there are a number of statements from the UK regarding inflation: the head of the Bank of England Carney; BoE MPC member Saunders; Bank of England Representative Tenreyro; Member of the Broadbent Monetary Policy Committee. Whether it will affect the dynamics of the pound in any way, I doubt, since during this time in Britain, there is only one hot topic - Brexit. In the afternoon, we are waiting for statistics on sales in the secondary housing market for April in the United States, where they are waiting for an increase from 5.21M to 5.35M. The news is positive for the US currency, but traders are still waiting for the main news regarding the publication of the FOMC protocol tomorrow at 18:00 UTC+00.

Further development

Analyzing the current trading schedule, we see that the bearish interest is gaining new momentum, overcoming at least yesterday. It is likely to assume that the general Brexit background puts pressure on the English currency, and in this scenario, the dollar looks just fine. For this reason, we do not see the long-awaited correction, continuing to overheat short positions. Now, traders are considering a further decline towards the level of 1.2620, then we will see later.

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Based on the available data, it is possible to decompose a number of variations. Let's consider them:

- Positions to buy will be considered, in the event of any slowdown in working out near the level of 1.2620.

- Sell positions continue towards the level of 1.2620. Further deals are considered in the case of a clear fixation lower than 1.2600.

Indicator Analysis

Analyzing a different sector of timeframes (TF), we see that the short-term perspective did not stay long in the neutral phase and returned to the downside due to non-terminating short positions. Meanwhile, intraday and mid-term retains a downward interest on the general background of the market.

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Weekly volatility / Measurement of volatility: Month; Quarter; Year

Measurement of volatility reflects the average daily fluctuation, based on monthly / quarterly / year.

(May 21 was based on the time of publication of the article)

The current time volatility is 44 points. If the inertial move persists, amid the breakdown of yesterday's stagnation, volatility may start to grow towards the daily average.

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Key levels

Zones of resistance: 1.2770 **; 1.2880 (1.2865-1.2880) *; 1.2920 * 1.3000 **; 1.3180 *; 1,3300 **; 1.3440; 1.3580 *; 1.3700.

Support areas: 1.2620; 1,2500 *; 1.2350 **.

* Periodic level

** Range Level

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Burning forecast EURUSD 21.05.2019

There is a lull in the news field. No big events. A new wave around Brexit is sluggishly developing. Until June, the issue of the US-China trade war remains uncertain.

EURUSD

The rate of the euro is very slow, but it is declining under pressure from sellers.

The euro came close to the lower limit of the long-term range of 1.1110-1.1130

A breakdown in this zone can trigger a downward trend in the euro.

In the case of a full turn upwards, the key levels will be 1.1225 and further 1.1270

We are ready to sell from 1.1130

We are ready to buy from 1.1225

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BITCOIN still to shoot up above $8,000? May 21, 2019

Recently, Bitcoin has been trading at the edge of the $8,000 area. It managed to regain momentum after the previous fall.

Crypto markets have held on to their weekend gains as Bitcoin remains buoyant. The correction that never was ended in early Sunday trading when BTC surged back towards $8,000. BTC sharply pulled back to just above $7,900 after hitting resistance but has since regained composure and climbed back up to $8,000.

Bitcoin is consolidating inside the range between $7,500 and $8,500, our buy trigger line. Notably, Bitcoin's upward momentum remains and it is likely to continue.

Currently, the price is below $8,000 and moving lower. MACD does not show any definite trend in the market as the MACD lines and Histograms are at the 0 line now. Despite the bullish bias, certain correction and retreat towards the $7,500 area are expected before Bitcoin continues its bullish run towards the $8,500 area in the coming days. As far as the price remains above the $7,500 area, the bullish bias is likely to continue, while a breakout above $8,500 with a daily close will indicate further upward movement towards $10,000.

SUPPORT: 7,000 / 7,250 / 7,500

RESISTANCE: 8,000 / 8,400 / 8,500

BIAS: BULLISH

MOMENTUM: VOLATILE

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Investors are waiting for clarity from the monetary policies of the world central banks: We expect AUD/USD and NZD/USD pairs

The deterioration of relations between the United States and China in the wake of growing pressure from Washington, which is claiming Beijing about American intellectual property, has a strong negative impact on the demand for risky assets, primarily for the shares of companies. Against this background, the local high-tech sector in the United States fell on Tuesday, pulling the rest of the stock market along with it.

Investors are frightened that the escalation of tensions between the United States and China, due to Huawei, can only increase the barrier to achieving a trade agreement between countries, which is already stalled and may not be concluded in the near foreseeable future.

In general, there is currently no coordinated dynamics in the markets, as has usually happened in recent years. Rising fears tend to increase the demand for defensive assets including government bonds of economically developed countries, gold, the Japanese yen, the Swiss franc, and the US dollar. However, we did not observe this on Tuesday, which can only be explained by the market expectation on the significant from the Fed and the ECB on monetary policy prospects, as well as the publication of the May meeting minutes in which market participants will be careful to look for signals to the Fed about the prospective reduction in interest rates. For the ECB, the option of long-term preservation of a soft monetary rate.

On Tuesday, the market can recover, that is if the head of the Federal Reserve, Jerome Powell, will report something new on the economic conference. But we doubt that this will happen, since a high degree of uncertainty in world markets, particularly the negotiation process between the Chinese and the Americans and the lingering risks for the American economy will restrain the activity of the regulator.

With regard to the currency market, we note that radical changes are hardly expected. Major currencies will most likely continue to trade lower against the US dollar, as the market is increasingly dominated by the view that the Fed may delay its pause in the decision to change something in monetary policy. In turn, competing currencies will remain under pressure, as there is no reason to expect changes in the direction of tightening by the Central Bank, which represent them.

As we have previously indicated, most likely, we should expect the option of continuing the pause for an indefinite time on the part of the Fed, which will support the rate of the US currency.

Forecast of the day:

The AUD/USD pair is trading below 0.6935 amid a signal from the RAB about the likelihood of lower interest rates at the June meeting. The pair has the potential of a local decline to 0.6825.

The NZD/USD pair also declines under the pressure of the AUD/USD pair. It is likely that it will continue to decline to 0.6485 after overcoming the level of 0.6510.

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USDJPY: Japan to sustain the growth over USD? May 21, 2019

USDJPY managed to regain certain momentum since the bounce off the 109.00 area while being in a preceding bearish trend. JPY struggled to maintain momentum after the release of weak economic data which undermined the market sentiment against USD.

The US economy is slightly affected by the Trade War. Mixed economic reports showed a certain weakness yesterday. Recently, the Fed officials stated that US economic policymakers have changed their view regarding low unemployment rate. Notably, this data did not influence an inflation rate. The Fed official estimated the long-run U.S. unemployment rate at 4.3%. That figure is lower both than their 4.7% estimate two years prior and the actual unemployment rate now, which has edged down to 3.6%.

Federal Reserve Chairman Jeromy Powell recently dismissed the comparison between rising of business debt to record levels in recent years and the condition in US mortgage markets which preceded 2007 to 2009 crisis. Powell pointed to the lack of transparency about the funding sources and ultimate holders of corporate debt, and to risks that any economic downturn could worsen if indebted borrowers begin to fail as reasons for caution. Though growth in corporate debt has slowed lately but another sharp increase could lead to unstable economic situations in the process. That concern is another reason why the Fed may be reluctant to cut interest rates since lower borrowing costs could prompt firms to take on more debt.

This week Core Durable Goods Orders report is going to be published which is expected to decrease to 0.1% from the previous value of 0.3% and Durable Goods Orders report is expected to decrease significantly to -2.0% from the previous value of 2.6%. Today FOMC members Evans and Rosengren are going to speak regarding monetary policy and interest rate decision which might turn out to be neutral with the impact.

On the other hand, today JPY Prelim GDP Price Index report was published with an increase to 0.2% as expected from the previous value of -0.3%, Prelim GDP remained unchanged at 0.5% which was expected to decrease to -0.1% and Revised Industrial Production report also showed an increase to -0.6% which was expected to be unchanged at -0.9%.

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GBP/USD: plan for the European session on May 21. The pound is preparing for a new wave of decline

To open long positions on GBP/USD you need:

The speech of the governor of the Bank of England can return the pressure on the British pound in the first half of the day, as it will be a question of interest rates and inflation. At present, it is best to return to long positions only on a false breakdown in the support area of 1.2714 or on a rebound from a larger level of 1.2672. Today, the bulls' goal will be the resistance of 1.2757, consolidating on which will lead to the formation of a large upward correction with the update of highs of 1.2802 and 1.2858, where I recommend to lock in the profit.

To open short positions on GBP/USD you need:

Breakthrough and consolidation below a support of 1.2714, which the bears tried to do yesterday throughout the day, will lead to a new wave of short positions in GBP/USD with access to the lows of 1.2672 and 1.2614, where I recommend taking profits. In case the pound grows, after the Parliamentary hearings on inflation, a more optimal scenario would be selling from a resistance of 1.2757, provided a false breakdown occurs, or to rebound from a high of 1.2802.

Indicator signals:

Moving averages

Trading is below 30 and 50 moving averages, which indicates the bearish nature of the market.

Bollinger bands

Volatility is very low, which does not provide signals for entering 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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EUR/USD: plan for the European session on May 21. The euro stays in the channel with a slight advantage for sellers

To open long positions on EURUSD you need:

The pair's situation is uncertain. It is best to return to long positions after updating a large support level at 1.1138, from where you can expect an upward correction to return to a high of 1.1180, above which you can reach the resistance of 1.1205, where I recommend taking profits. If there is no fast upward movement in the area of 1.1138, it is best to wait for the test of a 1.1112 low and open long positions in EUR/USD there. The formation of a false breakdown in the support area of 1.1153 will also be a signal to open long positions.

To open short positions on EURUSD you need:

Volatility is very low. Sellers are required to return to a support of 1.1153, which will be the first signal to open short positions in EUR/USD based on maintaining the downward momentum and updating major support levels in the 1.1138 and 1.1112 areas, where I recommend taking profits. If the euro rises in the first half of the day and consolidates above the resistance of 1.1180, it's best to return to short positions after updating the high of 1.1205 and 1.1237.

Indicator signals:

Moving averages

Trade is conducted in the region of 30 and 50 moving averages, which indicates market equilibrium.

Bollinger bands

Volatility is very low, which does not provide signals for entering 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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Technical analysis: Important intraday level for USD/JPY, May 21,2019

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In Asia, Japan today will not provide any Economic Data. However, the US will releas such Economic Data as the Existing Home Sales. So, there is a probability that the USD/JPY pair will move with low to medium volatility during this day.TODAY'S TECHNICAL LEVEL:Resistance. 3 : 110.76.Resistance. 2: 110.54.Resistance. 1: 110.32.Support. 1: 110.06.Support. 2: 109.85.Support. 3: 109.63.(Disclaimer)

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Trading plan for EURUSD for May 21, 2019

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Technical outlook:

The EUR/USD pair bottomed out close to 1.1150 levels yesterday before pushing ahead. It is seen to be trading around 1.1160 levels at this moment. The rally of the pair is expected through 1.1320 levels. A minimum push above 1.1180/85 levels would indicate that a meaningful bottom is in place and that higher highs and higher lows are on cards. The wave structure still remains constructive for bulls until prices remain above 1.1111 levels. A corrective rally A-B-C has been underway since 1.1111 earlier, of which waves A and B are in place already as labelled on chart here. If this structure holds, we can expect a Wave C rally towards 1.1320 levels, which is also converging with fibonacci 0.618 resistance of the drop between 1.1450 and 1.1111 levels respectively. A bearish reaction there would lower EURUSD to print below 1.1111 levels going forward.

Trading plan:

Remain long with stop at 1.1110 target 1.1320.

Good luck!

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Elliott wave analysis of GBP/JPY for May 21 - 2019

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We are looking for a break above minor resistance at 140.51 and more importantly a break above resistance at 141.12 to confirm, that wave 2 has completed and wave 3 higher to 151.50 is developing.

Short-term, we seen support at 139.67 and again at 139.53. Ideally support at 139.67 will be able to protect the downside for the expected break above 140.51 confirming that a new impulsive rally is developing.

R3: 142.21

R2: 141.71

R1: 141.12

Pivot: 140.51

S1: 140.15

S2: 139.67

S2: 139.53

Trading recommendation:

We are long GBP at 139.80 with our stop placed at 139.45.

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Elliott wave analysis of EUR/JPY for May 21 - 2019

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We continue to look for a break above minor resistance to indicate, that wave ii has completed and wave iii towards 129.35 is developing.

Short-term we seen support at 122.80 and again at 122.26. We expect that support at 122.80 will be able to protect the downside for a solid break above 123.25 confirming a new impulsive rally is developing.

R3: 124.15

R2: 123.60

R1: 123.25

Pivot: 123.00

S1: 122.80

S2: 122.26

S3: 122.06

Trading recommendation:

We are long EUR from 122.25 with our stop at break-even at 122.25.

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Technical analysis: Important intraday Level For EUR/USD, May 21,2019

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When the European market opens today, some Economic Data such as Consumer Confidence will be released. The US will also release the Economic Data such as Existing Home Sales. Amid the reports, the EUR/USD pair will move in a low to medium volatility during this day.TODAY'S TECHNICAL LEVEL:Breakout BUY Level: 1.1221.Strong Resistance:1.1215.Original Resistance: 1.1204.Inner Sell Area: 1.1193.Target Inner Area: 1.1167.Inner Buy Area: 1.1141.Original Support: 1.1130.Strong Support: 1.1119.Breakout SELL Level: 1.1113.(Disclaimer)The material has been provided by InstaForex Company - www.instaforex.com

Technical analysis of EUR/USD for 21.05.2019

Technical Market Overview:

After making the local low at the level of 1.1150, the EUR/USD pair has tried to bounce or even rally higher, but this attempt was capped at the technical resistance zone located between the levels of 1.1167 - 1.1173 and the price reversed. The short-term outlook remains bearish and there is no signs or any trend reversal for now. The next target for bears is seen at the level of 1.1111.

Weekly Pivot Points:

WR3 - 1.1317

WR2- 1.1287

WR1 - 1.1208

Weekly Pivot - 1.1178

WS1 - 1.1099

WS2 - 1.1069

WS3 - 1.0986

Trading Recommendations:

The best trading strategy in the current market conditions is to sell the local pull-backs with a tight protective stop loss. Due to the oversold market conditions please pay attention to the candlestick trend reversal patterns and market trend reversal patterns. The next important technical support is located at the level of 1.1111 and this is the next target for bears.

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Technical analysis of GBP/USD for 21.05.2019

Technical Market Overview:

The GBP/USD pair is still trading close to the technical support at the level of 1.2705, but no breakout was made yes as the market conditions are extremely oversold. Moreover, the price is still out of the channel zone and does not look like the bulls have enough power to get back to the channel. This behavior might indicate their weakness and inability to bounce higher. The bears will take advantage of this situation by trying to push the prices lower towards the level of 1.2668 soon.

Weekly Pivot Points:

WR3 - 1.3212

WR2- 1.3121

WR1 - 1.2880

Weekly Pivot - 1.2790

WS1 - 1.2532

WS2 - 1.2453

WS3 - 1.2198

Trading Recommendations:

The best trading strategy in the current market conditions is to sell the local pull-backs with a tight protective stop loss. Due to the oversold market conditions please pay attention to the candlestick trend reversal patterns and market trend reversal patterns. The next target for bears is seen at the level of 1.2668.

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Technical analysis of Ethereum for 21.05.2019

Crypto Industry News:

The European Central Bank (ECB) said that cryptocurrencies are not currently a threat to financial stability in the Eurozone.

In his last article on the subject, the ECB said that the total value of cryptocurrencies is small compared to the financial system, and the links with the financial sector are still limited. In addition, it seems that banks in the EU do not have "systemically significant" cryptocurrencies.

The ECB also said that cryptocurrencies do not function as money. The "very low" number of merchants now allows you to buy goods and services using Bitcoins and there is no "tangible impact on the real economy" or monetary policy.

"High volatility of cryptocurrency prices, lack of central bank support and limited acceptance among sellers currently make it impossible to use cryptocurrencies as substitutes for cash and deposits, and also make it difficult for cryptocurrencies to meet monetary assets in the near future" - the bank states.

Regarding the stablecoin concept, the ECB claims that the crypto may become less volatile if it is secured by central bank reserves. However, this may bring new problems: "Such collateral may cause additional demand for central bank reserves, which may affect monetary policy and its implementation".

Technical Market Overview:

The ETH/USD pair continues to unfold wave 4 correction and the most likely pattern is a Triangle pattern, which is very typical for this corrective cycle. After the corrective cycle in wave 4 is completed, there is still one more wave up missing in order to complete the impulsive wave. The local technical resistance is located at the level of $265.35 and the local technical support is seen at the level of $245.00. Please keep an eye on the short-term trend line dynamic support as any violation of this support might lead to sooner than expected down move towards the level of $226.17

Weekly Pivot Points:

WR3 - $10,110

WR2- $9,180

WR1 - $8,627

Weekly Pivot - $7,705

WS1 - $7,135

WS2 - $6,315

WS3 - $5,743

Trading Recommendations:

The best trading strategy in the current market conditions is to buy the local pull-back as wave 4 is in progress in anticipation of the wave 5 to the upside. It might take some time for the wave 4 to complete, so it does not have to be a day-trading strategy. Please pay attention to the technical support at the level of $226.17 as any violation of this level will accelerate the sell-off towards the next technical support at the level of $212.12.

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Technical analysis of Bitcoin for 21.05.2019

Crypto Industry News:

Co-founder of Fundstrat Global Advisors, Tom Lee, claimed in a tweet that the crypto-winter came to an end.

In the news, Lee said that last week's Consensus conference in New York was the latest of 13 signs indicating that the industry is recovering after a difficult few months. Its schedule of events documenting key events dates back to November 2018, when the Bitcoin Cash hard-shell battle exhausted the supply of Bitcoins maintained by two competitive mining pools.

Other significant milestones listed by Lee include January 23 this year, when network transactions turned out to be positive year-on-year for the first time in 12 months. He also pointed out how on March 27 in the Bitcoin Misery Index of the Fundstrat increased above 67 - a level that has not been reached since August 2015. Then in April, there was a sharp increase in over-the-counter and chain activity.

In early May, Lee said the cryptographic industry proved its resilience when there was a stable market reaction to the controversy around Bitfinex and Tether after the New York Attorney General accused the crypt of the stock exchange for losing $ 850 million and using funds from a related stablecoin operator secretly concealing the shortage.

Technical Market Overview:

The BTC/USD pair has been trading inside of a tight narrow range located between the levels of $7,617 - $8,155 as the market participants await the breakout. From the Elliott Wave Principle point of view, the market is now in the wave B of the overall corrective cycle after the bottom of the wave A was made at the level of $6,986. It means, there is still wave C to the downside missing in order to complete the corrective cycle in wave 2.

Weekly Pivot Points:

WR3 - $10,110

WR2- $9,180

WR1 - $8,627

Weekly Pivot - $7,705

WS1 - $7,135

WS2 - $6,315

WS3 - $5,743

Trading Recommendations:

The best trading strategy in the current market conditions is to sell the local pull-backs with a tight protective stop loss just above the high at the level of $8,309 in anticipation of the wave C of the overall corrective structure. Please pay attention to the technical support at the level of $7,584 as any violation of this level will accelerate the sell-off towards the next technical support at the level of $7,032.

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