Technical analysis for the EUR/USD currency pair for the week from June 3 to 8, 2019

EUR/USD pair

Trend analysis (Figure 1)

In the coming week, the price will move up with the first target of 1.1235 – resistance line (white bold line), and then work up with the target of 1.1265 – 21 average EMA (black thin line). The probability of this event is 60%.

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Fig. 1 (weekly chart).

Comprehensive analysis:

- Indicator analysis – up;

- Fibonacci levels – down;

- Volumes – down;

- Candle analysis – neutral;

- Trend analysis – up;

- Bollinger bands – down;

- Monthly chart – up.

The conclusion from the complex analysis – upward movement.

The overall result of the calculation of the EUR/USD currency pair candle on the weekly chart: the price in the week is likely to have an upward trend with the absence of the first lower shadow of the weekly white candle (Monday – up) and the absence of the second upper shadow (Friday – up)

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EURUSD to dip to 1.1200? June 3, 2019

The euro managed to keep up its positive dynamic while the greenback dropped after the release of weak economic reports and escalation of trade war tensions. Despite the US dollar has been the dominant currency in the pair for a few days, certain correction and volatility is expected.

Now investors are worried about the possibility of a global recession due to the modern political situation. Trump unexpectedly announced new tariffs on Mexico goods on Friday and tariffs on $200 billion of Chinese imports rose on Saturday to 25% from 10%. Bond markets are flashing a warning with three-month U.S. yields now well above 10-year rates, the so-called curve inversion that's foretold most 20th century U.S. recessions.

President Mario Draghi will give the Euro Zone economy a bit of a boost on Thursday in the form of generous loans to banks so they keep lending to businesses, while also leaving the door wide open to even more stimulus. The outlook for the euro area economy has turned quite dovish. The global trade war is showing no signs of dissipation, Italy is once again in conflict with the European Commission, German industry is continuing to post dismal figures, stocks are tumbling, inflation expectations are falling and the threat of a hard Brexit looms large

The European Commission wrote to Italy last week asking it to explain why its public debt rose in 2018 instead of falling as required, a move that set the stage for a possible legal clash with the ruling eurosceptic coalition in Rome. In his response to Brussels, Economy Minister Giovanni Tria blamed an economic downturn for the rising debt and vowed to respect the EU's fiscal rules in the next budget.

Ahead of US Non-Farm Employment Change, Average Hourly Earnings and Unemployment reports, Jeromy Powell, the Fed Chairman, is going to speak about the US economy weakening and the Fed's policy.

Presently, it's hard to determine the movements of the US dollar because of the rapidly changing political environment. The euro has recently weakened. However, it may gain if Draghi' speech improves market sentiment.

Now let us look at the technical view. The price is currently rejecting off the dynamic level of 20 EMA after pushing higher towards 1.1200 area. As the preceding trend is bearish, the price has a greater probability to push lower following the trend if the dynamic level resistance manages to hold the price as strong resistance while also residing below the 1.1200 area. The target area for downward pressure would be 1.1000-50 area from where certain bounce can lead the price higher again towards 1.1200 area in the future.

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Technical analysis for the GBP/USD currency pair for the month of June 2019

Trend analysis.

In June, it is possible to move up with the first target of 1.3086 – 21 average EMA (black thin line).

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Fig. 1 (monthly chart).

Indicator analysis:

- Indicator analysis – up;

- Fibonacci levels – neutral;

- Volumes – up;

- Candle analysis – up;

- Trend analysis – up;

- Bollinger bands – down;

Conclusion on the complex analysis - the top is possible.

The overall result of the calculation of the GBP/USD currency pair candle on the monthly chart: the price is likely to have an upward trend with the absence of the first lower shadow (the first week of the month is white) of the monthly white candle and the absence of the second upper shadow (the last week is white).

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Indicator analysis. Daily review for June 3, 2019 for the EUR / USD currency pair

On Friday, the market rallied up, and economic news played a significant role in this. The pair, while moving up, tested the pullback level of 61.8% - 1.1134 (blue dotted line) and closed below. On Monday, strong calendar news come out at 7.55 (euro) and 14.00 (dollar) Universal time.

Trend analysis (Fig. 1).

On Monday, the price may continue to move up with the first target of 1.1191 - the pullback level of 76.4% (blue dashed line), together with the resistance line. It will be difficult for the price to overcome this area for the first time.

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Fig. 1 (daily schedule).

Comprehensive analysis:

- indicator analysis - up;

- Fibonacci levels - up;

- volumes - up;

- candlestick analysis - up;

- trend analysis - up;

- Bollinger lines - up;

- weekly schedule - up.

General conclusion:

On Monday, the price may continue to move up with the first target of 1.1191 - the pullback level of 76.4% (blue dashed line), together with the resistance line. After testing this level, a rollback is possible.

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Technical analysis for the EUR/USD currency pair for the month of June 2019

Trend analysis

June may begin with an upward movement, with the first target of 1.1188 – the resistance line (red bold line). Control point – 1.1188, after which it will be clear where the market will go. This question will be answered by a comprehensive analysis.

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Fig. 1 (monthly chart).

Indicator analysis:

- Indicator analysis – up;

- Fibonacci levels – up;

- Volumes – up;

- Candle analysis – up;

- Trend analysis – neutral;

- Bollinger bands – down;

The conclusion from the complex analysis is most likely the top work.

The overall result of the calculation of the EUR/USD currency pair candle on the monthly chart: the price is likely to have an upward trend with the absence of the first lower shadow (the first week of the month – the top) of the monthly white candle and the absence of the second upper shadow (the last week is white).

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Trading plan for EURUSD for June 03, 2019

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Technical outlook:

The EUR/USD pair set a rally last Friday as expected after bouncing back from 1.1115/20 levels. The aggressive long trades if they've been taken, should be now closed with profits and prepare to go short. The overall wave structure since printing highs at 1.1260 levels earlier, looks to be a sideways consolidation. The resistance has been decreasing since 1.1260 levels, while support has remained more or less constant around 1.1100/10 levels respectively. Please note that prices are seen to be reversing from the Fibonacci 0.618 resistance of recent downswing between 1.1220 and 1.1120 levels. If a bearish reversal here is confirmed, the next potential move could be lower, breaking 1.1100 interim support and pushing lower towards 1.0900 levels respectively. As an alternate scenario, only a definite push above 1.1260 levels would be considered as a bullish reversal.The risk remains just above 1.1220 or 1.1260 levels so kindly adjust your stops accordingly.

Trading plan:

Take profits on longs taken last Thursday. Now, go short with a stop at 1.1260 targeting below 1.1100

Good luck!

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Control zones for EUR / USD pair on 03.06.19

After the test of 1/2 WCZ at 1.1136 - 1.1128, the upward movement continued. It is important to note that growth was a priority two weeks ago. The first target of the bullish momentum is the high of last week. Achievement of this mark will allow fixing a part of purchases and transfer the rest to breakeven as the pair may remain within the medium-term accumulation zone.

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Since the upward movement is an impulse, any reduction should be used to search for favorable purchase prices. The reduction in the average daytime running is an excellent range for entering a long position.

An alternative model will be developed if today's closure of the American session occurs within the 1/2 WCZ or lower. This will speak about the emergence of interest in the weakening of the euro and the change of dynamics in the near future. Until this happens, the probability to test is 30% at least last week. Hence, the bear model is auxiliary and sales 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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Burning forecast EURUSD 06/03/2019

The focus is on Trump's trade wars primarily against China. (Also, there is still a war against Mexico and a possible war against the EU).

Over the weekend, Morgan Stanley made a forecast that in the event of another wave of increase in the US duties against China and the response of China - the US would fall into recession in the next 9 months. China threatens to retaliate against the United States - especially after the United States has persecuted Huawei company.

EURUSD: Possible upward reversal.

We are ready to buy the euro from 1.1220

We are also ready to sell the euro from 1.1105

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Forecast for EUR / USD pair on June 3, 2019

EUR / USD pair

Last Friday, the euro grew by 40 points. It adds another 18 points in today's Asian session, which is probably related to the expectations of the appointment of the head of the Central Bank of Germany Jens Weidmann, a supporter of hawkish policy for the post of ECB head. It was assumed that the former head of the Finnish Central Bank Erkki Liikanen will be selected for this post at the EU summit last week, featuring a balanced approach to monetary policy. However, he is already 68 years old and Germany has entered into a more decisive argument. he final choice will take place at the EU summit on June 20. As a result, the ECB meeting is expected to be neutral on Thursday.

Also on Friday, US President Trump unexpectedly imposed import duties of 5% on Mexican goods, which was a shock to the markets. Investors lost the sense of the dollar as a safe haven currency, which became the same as trade and technology war with China.

At the moment, the price on the daily scale chart is breaking through the resistance of the MACD line while the Marlin oscillator signal line has entered the growth zone. The immediate goal of the euro is the Fibonacci level of 100.0% at a price of 1.1216, which also corresponds to the top on May 27. Overcoming the level will allow the price to grow even higher towards the line of the price channel in the area of 1.1253 and it is possible that the price may go even higher towards the maximum of April 17 at the level of 1.1324.

On the four-hour chart, the price went above the line of balance and the MACD. The Marlin oscillator indicates an energetic growth of the current and the nearest few bars on the trend.

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Technical analysis of Ethereum for 03.06.2019

Crypto Industry News:

The Australian Securities and Investment Commission (ASIC) published the new official guidelines for the initial coins offer (ICO) and cryptocurrencies on 30th May.

The regulator specified the preconditions that a cryptocurrency company must meet to comply with both Australian regulations and ASICs, but did not include provisions enforced by other national institutions. In particular, the guidelines indicated that if a cryptographic component is a financial product, then the issuer and the companies that deal with it must have an Australian license for financial services.

The regulator also noted that entities and their advisers must take into account all the rights and characteristics of ICO (regardless of how it is named and sold) in determining whether a cryptographic component is a financial product or a financial product. The report also stipulates that stock exchanges managing such assets will also have to have a license.

Finally, ASIC also noted that the Know Your Client and Anti-Money Laundering standards apply to cryptographic assets, as is Australian consumer law, including cases where assets are issued or managed from abroad.

Technical Market Overview:

The ETH/USD pair has been trading inside of a narrow consolidation zone located between the levels of $259.44 - $275.25 since the end of May and have not moved higher or lower yet. This price behavior might be a part of wave 4, which is still in progress as there is only one wave down made (most possibly wave (A) of the overall corrective cycle). Any breakout below the technical support at $259.44 will accelerate the sell-off towards the level of $239.03.

Weekly Pivot Points:

WR3 - $337.31

WR2 - $312.54

WR1 - $290.33

Weekly Pivot - $263.28

WS1 - $241.64

WS2 - $214.59

WS3 - $190.10

Trading Recommendations:

The best strategy in the current market conditions is to trade in the direction of the main trend, which is still up. All the local bounces and correction should be treated as another opportunity to open the buy orders for a better price. Please notice, the larger time frame trend is up and there are no signs of any trend reversal.

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Control zones AUDUSD 03.06.19

Last week, the pair tested the WCZ 1/2 0.6940-0.6933. This allowed to consider sales in the direction of the medium-term downward momentum. Today, you can observe the breakdown and attempt to consolidate above this zone. If this happens, the strengthening of the Australian dollar will be the main one for trading of the whole week.

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Purchases from current levels are not profitable, however, any decline after the close of Asian trading above the WCZ 1/2 will provide opportunities to enter a long position.

An alternative model will be developed if the closing of today's trading will occur below the level of 0.6940. This will allow to work again within the framework of the accumulated accumulation zone. The first goal will be at least last week. After the close of Asian trading above the level of 0.6940, the probability of decline will decrease to 30%.

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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 zone formed by important marks of the futures market, which changes several times a year.

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

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Technical analysis of Bitcoin for 03.06.2019

Crypto Industry News:

The Japan House of Representatives officially approved a new bill to amend national laws regulating the cryptographic industry.

The draft law - prepared by the Japanese Financial Services Agency (FSA) and approved by the House in mid-March this year - was adopted by a majority of votes at the plenary session of the Chamber of Councilors, in accordance with the current update of the FSA on the official website.

The project is aimed at introducing changes to two national laws regarding cryptographic assets - the act on settlement of funds and the law on financial instruments and exchange. Now that the bill has been adopted, the amended acts are expected to enter into force in April 2020.

The proposed changes to Japanese financial instruments and payment services will ostentatiously tighten the regulation of cryptocurrencies to promote user protection, more stringent regulation of trading in cryptographic instruments, mitigate industry risk, such as stock market busts, and the broad establishment of a more transparent legal framework for new asset classes.

According to earlier reports, the bill also introduces a legal change in the name of cryptocurrencies as "cryptographic assets", previously marked in the country as "virtual currencies". The draft also provides for stricter rules regarding trading in margins, limiting the leverage to double and four times the initial deposit.

Technical Market Overview:

The BTC/USD pair has bounced from the level of $7,978, broke above the 61% Fibonacci retracement of the last wave down and made a local high at the level of $8,786. The volatility is limited as the price movements are not that big, the market is trading around the weekly pivot level, which is quite typical for the wave 4 correction in progress. The nearest technical resistance is seen at the level of $8,925 and the nearest technical support is seen at the level of $8,306. According to the Elliott Wave theory, there is still one more wave down missing to terminate the ABC correction in wave 4.

Weekly Pivot Points:

WR3 - $10,284

WR2 - $9,622

WR1 - $9,121

Weekly Pivot - $8.545

WS1 - $8,037

WS2 - $7,438

WS3 - $6,960

Trading Recommendations:

The best strategy in the current market conditions is to trade in the direction of the main trend, which is still up. All the local bounces and correction should be treated as another opportunity to open the buy orders for a better price. Please notice, the larger time frame trend is up and there are no signs of any trend reversal.

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Forecast for GBP / USD pair on June 3, 2019

GBP / USD pair

On Friday, the sterling pound did not reach the bearish target of 1.2530 and sharply turned up, forming a convergence with the Marlin oscillator on the daily scale this morning. At the moment, the price is trying to move above the recent support of 1.2660 in order to try to grow even higher towards the resistance line of the price channel at 1.2756, which also corresponds to the maximum on May 20.

On the four-hour chart, the price is fixed above the MACD indicator line and the Marlin oscillator is in the growth zone. Considering indicators on both of the graphs, the pound's desire for further growth can be determined.

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Elliott wave analysis of GBP/JPY for June 3, 2019

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GBP/JPY keeps pushing lower towards the 70.7% corrective target seen at 135.94. We are looking for a low at this corrective target and the completion of the corrective decline in the wave 2 for a new impulsive rally in the wave 3 above 148.87.

The first solid evidence that wave 2 has completed is seen upon a breakout above minor resistance at 137.48, while a breakout above resistance at 138.74 is needed to confirm that the wave 3 is developing.

R3: 138.74

R2: 137.79

S1: 137.48

Pivot: 137.01

S1: 136.63

S2: 136.25

S3: 135.93

Trading recommendation:

We are looking for a GBP buying opportunity at 136.15 or upon a breakout above minor resistance at 137.48.

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Elliott wave analysis of EUR/JPY for June 3, 2019

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EUR/JPY continues to push lower. Now it is hovering just above the 78.6% corrective target seen at 120.68. We still consider the decline from 127.50 as corrective and we are looking for evidence that this correction has completed. The first solid evidence will be a breakout above minor resistance at 121.49, while a breakout above resistance at 122.26 will confirm that the wave 2 has completed and the wave 3 is developing above 127.50.

R3: 122.26

R2: 121.75

S1: 121.49

Pivot: 121.13

S1: 120.80

S2: 120.68

S3: 120.33

Trading recommendation:

We will buy EUR at 120.75 or upon a breakout above minor resistance at 121.49

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Technical analysis of GBP/USD for 03.06.2019

Technical Market Overview:

The GBP/USD pair has made another lower low at the level of 1.2559 as the downtrend continues. After the low was made, the price bounced and the Bullish Engulfing candlestick pattern was made, which might indicate a stronger bounce this time. Nevertheless, to move higher, the bulls will have to break through the technical resistance located at the levels of 1.2647 and 1.2683 before the price will hit the main technical resistance level of 1.2755. Another failure to move higher will make the bears even stronger, so more downwards price action would be expected then.

Weekly Pivot Points:

WR3 - 1.2903

WR2 - 1.2819

WR1 - 1.2711

Weekly Pivot - 1.2636

WS1 - 1.2534

WS2 - 1.2447

WS3 - 1.2331

Trading Recommendations:

The best strategy in the current market conditions is to trade in the direction of the main trend, which is still down. All the local bounces and correction should be treated as another opportunity to open the sell orders for a better price. Please notice, the larger time frame trend is down and there are no signs of any trend reversal.

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Technical analysis of EUR/USD for 03.06.2019

Technical Market Overview:

The EUR/USD has bounced again from the technical support at the level of 1.1118 after the Pin Bar candlestick was made. The oversold market conditions helped the bulls to move the price above the local resistance at the level of 1.1176 and the local high was made at the level of 1.1190. Anyway, the market is still moving inside the trading range between the levels of 1.1118 - 1.1215, but the momentum has picked up recently, which might indicate stronger than usual bounce towards the level of 1.1265. As long as the price is trading inside of the consolidation zone, the outlook remains neutral. The larger time frame trend is still down.

Weekly Pivot Points:

WR3 - 1.1310

WR2 - 1.1261

WR1 - 1.1211

Weekly Pivot - 1.1159

WS1 - 1.1114

WS2 - 1.1061

WS3 - 1.1012

Trading Recommendations:

The best strategy in the current market conditions is to trade in the overbought and oversold market conditions as long as the price is moving inside of the consolidation zone. Any breakout in either direction (the larger time frame trend is down) will eventually give the direction for the short-term trend move and this is when the strategy for a breakout will be applicable.

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Forecast for AUD / USD pair on June 3, 2019

AUD / USD pair

The May Australian manufacturing activity index (AIG Manufacturing) fell from 54.8 to 52.7 in May, but in spite of this, the Australian dollar continues its Friday growth. This was driven by Donald Trump following the unexpected increase in import duties on Mexican goods by 5%, which allegedly due to the migration crisis. In the future, it is planned to gradually increase duties to 25%. The price fixed above the nearest nested line of the price channel and the signal line of the Marlin oscillator has entered the zone of positive values, which is the trend growth zone.

On the four-hour chart, an unconditional growth was observed. The price has fixed above the balance lines and MACD while the Marlin oscillator in the growth zone shows no signs of a downward trend.

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Bitcoin control zones 03.06.19

The current position of the instrument indicates the formation of a local zone of accumulation. The main support for the last decline was a significant level of $ 8000. The immediate goal of growth remains to be the maximum of last week. The probability of its retest is 70%. This suggests the need to hold purchases that were opened last week or earlier.

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It is important to understand that the medium-term impulse is strong enough. This makes sales at significant levels only an opportunity to partially fix a long position. For the reversal of the instrument, it will be necessary to form a model about the false breakdown and absorption.

An alternative model of the decline will be a movement into the frame of an already formed accumulation zone. The lower boundary of this zone is at the mark of $ 8000, while the upper boundary is located at around $ 9000. Work in this range involves finding favorable prices for the purchase, with partial fixation upon reaching the upper limit. Sales can only be opened if there is already an open long position.

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

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

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

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EUR/GBP reversed off resistance, big drop upcoming!

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Price reversed off our first resistance level where we might see a further drop

Entry : 0.8856

Why it's good : Horizontal swing high resistance, 61.8% Fibonacci retracement

Stop Loss : 0.8907

Why it's good : 100% Fibonacci extension

Take Profit : 0.8773

Why it's good : 23.6% Fibonacci retracement, horizontal overlap support

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AUD/USD approaching resistance, potential reversal!

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Price is approaching its resistance supported by USD weakness and positive China's Caixin PMI results. We do expect it to rise to its resistance before reversing down especially since we expect AUD weakness due to a highly possible rate cut this week by the RBA.Entry : 0.6965

Why it's good : 50% Fibonacci retracement, 100% Fibonacci extension, horizontal pullback resistance

Stop Loss : 0.6992

Why it's good : 61.8% Fibonacci retracement

Take Profit : 0.6937

Why it's good : Horizontal pullback support, 38.2% Fibonacci retracement

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EUR/JPY reversed off key resistance, a drop is possible!

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EURJPY reversed off key resistance, a drop to first support is possible

Entry: 120.89

Why it's good : 61.8% Fibonacci extension, 61.8% Fibonacci retracement, horizontal swing low resistance

Stop Loss : 120.56

Why it's good :100% Fibonacci extension,76.4% Fibonacci retracement

Take Profit : 121.58

Why it's good: 23.6% Fibonacci retracement, horizontal pullback resistance

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Fractal analysis of major currency pairs for June 3

Forecast for June 3:

Analytical review of H1-scale currency pairs:

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For the euro / dollar pair, the key levels on the H1 scale are: 1.1227, 1.1218, 1.1194, 1.1181, 1.1157, 1.1146, 1.1129, 1.1115, 1.1099, 1.1080 and 1.1067. Here, the price has issued the potential for upward movement of May 30 in the correction zone of the downward structure. Short-term movement to the top is expected in the range of 1.1181 - 1.1194. The breakdown of the last value will begin the development of the upward trend. In this case, the potential target is 1.1227. Upon reaching this level, we expect a consolidation in the range of 1.1227 - 1.1218.

Corrective downward movement is possible in the range of 1.1157 - 1.1146. The breakdown of the latter value will lead to in-depth correction. Here, the goal is 1.1129. The breakdown of which will continue the development of the main downward trend of May 27. In this case, the first target is the level of 1.1115. The breakdown of the level of 1.1115 will lead to a movement to the level - 1.1099, wherein near this level is a price consolidation. The breakdown of the level of 1.1099 will lead to the movement to the level of 1.1080. For the potential value for the bottom, we consider the level of 1.1067. After reaching which, we expect a consolidation in the range of 1.1080 - 1.1067.

The main trend is the downward structure of May 27, the stage of deep correction.

Trading recommendations:

Buy 1.1181 Take profit: 1.1192

Buy 1.1196 Take profit: 1.1216

Sell: 1.1156 Take profit: 1.1147

Sell: 1.1144 Take profit: 1.1130

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For the pound / dollar pair, the key levels on the H1 scale are: 1.2715, 1.2667, 1.2637, 1.2553, 1.2478 and 1.2428. Here, the price is still in the correction zone from the downward structure on May 21. Continuation of the movement to the bottom is expected after the breakdown of the level of 1.2553. In this case, the target is 1.2478. We consider the level of 1.2428 to be a potential value for the bottom. After reaching which, we expect consolidation in the range of 1.2478 - 1.2428, as well as a departure to a correction.

Short-term upward trend is possible in the range of 1.2637 - 1.2667. The breakdown of the latter value will lead to a prolonged correction. Here, the goal is 1.2715. This level is a key support for the downward structure. Its price passage will have to form the initial conditions for the upward cycle.

The main trend is the downward structure of May 21, the stage of correction.

Trading recommendations:

Buy: 1.2637 Take profit: 1.2666

Buy: 1.2668 Take profit: 1.2715

Sell: 1.2550 Take profit: 1.2480

Sell: 1.2476 Take profit: 1.2428

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For the dollar / franc pair, the key levels on the H1 scale are: 1.0037, 1.0021, 1.0009, 0.9982, 0.9971 and 0.9949. Here, we are following the development of the downward structure of May 30. Short-term downward movement is expected in the range of 0.9982 - 0.9971. The breakdown of the last value will lead to the movement to the potential target - 0.9949. From this level, we expect a rollback to the top.

Short-term upward movement is possible in the range of 1.0009 - 1.0021. The breakdown of the latter value will lead to a prolonged correction. Here, the goal is 1.0037. This level is a key support for the downward structure of May 30.

The main trend is the downward cycle of May 30.

Trading recommendations:

Buy : 1.0010 Take profit: 1.0020

Buy : 1.0023 Take profit: 1.0036

Sell: 0.9982 Take profit: 0.9972

Sell: 0.9969 Take profit: 0.9950

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For the dollar / yen pair, the key levels on the scale are : 109.00, 108.63, 108.43, 108.18, 107.76, 107.44 and 106.99. Here, the next targets for the downward movement is determined from the local structure on May 30th. Continuation of the movement to the bottom is expected after the breakdown of the level of 108.18. In this case, the goal is 107.76. Meanwhile, in the range of 107.76 - 107.44, there is a short-term downward movement, as well as consolidation. We consider the level of 106.99 as a potential value for the bottom. After reaching this level, we expect a rollback to the top.

Short-term upward movement is possible in the range of 108.43 - 108.63. The breakdown of the latter value will lead to in-depth correction. Here, the goal is 109.00. This level is a key support for the downward cycle.

The main trend: the local structure for the bottom of May 30.

Trading recommendations:

Buy: 108.43 Take profit: 108.63

Buy: 108.66 Take profit: 109.00

Sell: 108.15 Take profit: 107.76

Sell: 107.74 Take profit: 107.46

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For the Canadian dollar / US dollar pair, the key levels on the H1 scale are: 1.3651, 1.3611, 1.3556, 1.3491, 1.3464 and 1.3428. Here, we continue to follow the development of the ascending structure of May 22. Short-term upward movement is expected in the range of 1.3534 - 1.3556. The breakdown of the last value should be accompanied by a pronounced upward movement. In this case, the target is 1.3611. For the potential value for the top, we consider the level of 1.3651. After reaching which, we expect a departure to the correction.

Short-term downward movement is possible in the range of 1.3491 - 1.3464. The breakdown of the latter value will lead to a prolonged correction. Here, the target is 1.3428. This level is a key support for the top.

The main trend is the upward cycle of May 22.

Trading recommendations:

Buy: 1.3534 Take profit: 1.3555

Buy : 1.3558 Take profit: 1.3610

Sell: 1.3490 Take profit: 1.3466

Sell: 1.3462 Take profit: 1.3433

analytics5cf46e22e0d07.png

For the Australian dollar / US dollar pair, the key levels on the H1 scale are : 0.7013, 0.6994, 0.6965, 0.6955, 0.6941, 0.6910, 0.6897, 0.6882 and 0.6863. Here, we are following the ascending structure of May 23. Continuation of the movement to the top is expected after the breakdown of the level of 0.6941. Here, the first goal is 0.6955, wherein near this level is a price consolidation. The price passage of the noise range of 0.6955 - 0.6965 should be accompanied by a pronounced upward movement. In this case, the target is 0.6994. For the potential value for the top, we consider the level of 0.7013. After reaching which, we expect a rollback to the bottom.

Short-term downward movement is possible in the range of 0.6910 - 0.6897. The breakdown of the latter value will lead to a prolonged movement. Here, the target is 0.6882. This level is a key support for the upward structure.

The main trend is the formation of initial conditions for the top of May 23

Trading recommendations:

Buy: 0.6941 Take profit: 0.6955

Buy: 0.6967 Take profit: 0.6992

Sell : 0.6910 Take profit : 0.6898

Sell: 0.6895 Take profit: 0.6884

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For the euro / yen pair, the key levels on the H1 scale are: 121.76, 121.54, 121.20, 120.78, 120.56 and 119.98. Here, we are following the development of the mid-term downward structure of May 21. Short-term downward movement is expected in the range of 120.78 - 120.56. The breakdown of the last value should be accompanied by a pronounced downward movement to the potential target - 119.98. Upon reaching this level, we expect a rollback to the top.

The breakdown of 121.20 will lead to the development of a corrective upward movement. In this case, the target is 121.54. Meanwhile, the noise range of 121.54 - 121.76 is expected to form the top of the initial conditions for the ascending cycle.

The main trend is a mid-term downward structure of May 21.

Trading recommendations:

Buy: 121.20 Take profit: 121.50

Buy: 121.50 Take profit: 121.74

Sell: 120.78 Take profit: 120.60

Sell: 120.50 Take profit: 120.00

analytics5cf46e655f1c2.png

For the pound / yen pair, the key levels on the H1 scale are : 138.39, 137.83, 137.49, 136.52, 135.98, 135.48 and 134.82. Here, we continue the development of the downward trend of May 21, after the breakdown of the level of 136.52. In this case, the target is 135.98. The breakdown of which, in turn, will allow us to expect a movement to the level of 135.48, wherein consolidation is near this value, and hence, the probability of a reversal in correction. For the potential value for the bottom, we consider the level of 134.82.

Short-term upward movement is expected in the range of 137.49 - 137.83. The breakdown of the last value will lead to a prolonged correction. Here, the target is 138.39 while the noise range is 138.39 - 138.76.

The main trend is a local downward structure of May 21.

Trading recommendations:

Buy: 136.50 Take profit: 136.00

Buy: 135.94 Take profit: 135.50

Sell: 137.46 Take profit: 136.90

Sell: 135.44 Take profit: 134.84

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

Another failed attempt of the Dollar index capture the 98 price level.

The Dollar index ended last week on a mixed to bearish note as price recaptured the critical resistance at the 98 price level only to lose it with a big decline on the last trading day of the week.

analytics5cf44dfde8c7b.png

Red rectangle - major resistance

Green rectangle - major support

The Dollar index made new highs on May 23rd but price reversed and did not close above 98. On May 29th and 30th we saw new higher highs but on a closing basis above the major resistance area depicted with a red rectangle. However on the last trading day we saw another reversal. The inability to break above 98 and stay above it, is a worrying sign for bulls. However as long as price is trading above the green rectangle, bulls remain in control of the trend. The many failed attempts point to a bigger reversal in trend, taking into consideration how much time has the index around 98 which is the 61.8% Fibonacci retracement of the entire decline from 103.75 to 88.

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

Weekly analysis on Gold

Gold price has given us bullish signals the last couple of trading days of the past week. First short-term resistance at $1,288 was broken and now we have price back above $1,300 breaking important trend lines resistance. Holding above $1,300 and specially $1,290 is key for the bullish scenario.

analytics5cf44cadc0060.png

Green line - major support trend line

Blue horizontal line -neckline support

Black line - important resistance trend line

Blue downward sloping line - major resistance trend line

Gold price although initially broke below the Green support trend line, it did not close below it. This was the first bullish sign implying bulls continue to support Gold at $1,270-80 area. Bears were not strong enough to break through. Resistance at $1,290-$1,300 was tested several times and last week we saw Gold price close above $1,300. It is important for bulls to continue to see price above $1,300. This will lead to a move to $1,350. Another failure to hold $1,300-$1,290 would be a bearish sign.

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