Indicator analysis. Daily review for June 7, 2019 for the GBP / USD currency pair

Trend analysis (Fig. 1).

On Friday, we are waiting for the continuation of the upward movement with the first target of 1.2744 - the upper fractal. Much will depend on the news that comes out at 12.30 Universal time.

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Fig. 1 (daily schedule).

Comprehensive analysis:

- indicator analysis - up;

- Fibonacci levels - up;

- volumes - up;

- candlestick analysis - down;

- trend analysis - up;

- Bollinger lines - down;

- weekly schedule - up.

General conclusion:

On Friday, we are waiting for the continuation of the upward movement with the first target of 1.2744 - the upper fractal. Much will depend on the news that comes out at 12.30 Universal time.

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Indicator analysis. Daily review for June 7, 2019 for the EUR / USD currency pair

Trend analysis (Fig. 1).

On Friday, before the news, the price will move down to the side channel. After working out the news - (according to the forecast - upward movement), the downward trend will continue with the first target of 1.1233 - a pullback level of 38.2% (yellow dashed line). Much will depend on the news that comes out at 12.30 Universal time.

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Fig. 1 (daily schedule).

Comprehensive analysis:

- indicator analysis - down;

- Fibonacci levels - down;

- volumes - up;

- candlestick analysis - down;

- trend analysis - up;

- Bollinger lines - up;

- weekly schedule - up.

General conclusion:

On Friday, before the news, the price will move down to the side channel. After working out the news - (according to the forecast - upward movement), the downward trend will continue with the first target of 1.1233 - a pullback level of 38.2% (yellow dashed line). Much will depend on the news that comes out at 12.30 Universal time.

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Forecast AUD / USD pair for June 7, 2019

AUD / USD pair

For the last three days, the Australian has been struggling with three strong resistances: the MACD indicator line (blue), the balance line (indicator red), the price channel line. All resistance on the day timeframe. As a result, they won since the signal line of the Marlin oscillator today moved to the zone of negative numbers on the lower scale (H4). To confirm the signal price needs to go below the MACD line of 0.6952, which in this case, the target opens to the support of the embedded line of the price channel at 0.6907 on the daily.

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Trading plan for EURUSD for June 07, 2019

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Technical outlook:

The EURUSD pair retested the recent swing highs at the 1.1300 level yesterday before pulling back again. The pair might be still in favor of bears with the risk of the 1.1320 resistance being tested. In case 1.1320 is broken, the bias may shift towards bulls and buying on dips would be considered safe. Currently, we would hold short positions with a stop above the 1.1320 level, since the wave structure still indicates one more drop below 1.1107 before a notable rally can resume. Immediate price resistance stays at 1.1320, while support is at 1.1200. Please note that the Fibonacci 0.618 resistance of the entire range between 1.1450 and 1.1107 is seen close to the 1.1320 level. Therefore, a reaction could be expected around those levels. The event risk today might be providing the necessary trigger to define a direction for the rest of the month.

Trading plan:

Remain short for now, place stop order above the 1.1320 level, our target is below the 1.1107 level.

Good luck!

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GBP/USD: plan for the European session on June 7. The bulls again failed to go beyond the highs of the week, but the chance

To open long positions on GBP/USD you need:

Yesterday, pound buyers made another attempt to grow above the resistance of 1.2739, which was again unsuccessful. Today, in the first half of the day, attention will be shifted to the report on inflation expectations, which can help the pound to get above the resistance of 1.2705, which will increase demand for it and lead to the third test of a week high of 1.2739, where I recommend taking profits. A breakdown of 1.2739 can occur only after the release of a weak report on the US labor market, which is expected in the afternoon. With the GBP/USD decline scenario, the support will be the area of 1.2668, however, opening long positions immediately to the rebound is best for the low of 1.2644.

To open short positions on GBP/USD you need:

Pound sellers will expect the formation of a false breakdown in the resistance area of 1.2705. Only in such a scenario can we expect the pound to further decline to the support area of 1.2668 and an update of the low of 1.2644, where I recommend taking profits. If the bulls manage to return to a resistance of 1.2705 in the first half of the day, it is best to open short positions to rebound from a resistance of 1.2739.

Indicator signals:

Moving averages

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

Bollinger bands

Volatility is reduced, which does not provide signals to enter 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 June 7. Mario Draghi could not stop the growth of the euro, even with his statements

To open long positions on EURUSD you need:

The euro continued to rise despite the statements of the ECB president about a possible interest rate reduction. Currently, buyers need to climb to the resistance level of 1.1273, which will lead EUR/USD to the highs of 1.1304 and 1.1336, where I recommend taking profits. However, the entire emphasis will be shifted to the second half of the day, reports on the US labor market will be released, which may further strengthen the position of the European currency. With the euro decline scenario in the first half of the day, it is best to return to long positions in the euro on a false breakdown from the support of 1.1241, or to rebound from a low of 1.1200.

To open short positions on EURUSD you need:

An unsuccessful breakthrough and a return below the level of 1.1273 will be the first signal to open short positions in the euro, the purpose of which will be the support of 1.1241 and 1.1200, where I recommend that you lock in the profit. However, only good data on the US labor market will strengthen bearish sentiment in the euro, which will lead to an update of a low of 1.1163. With the scenario of further growth of EUR/USD above 1.1273 in the first half of the day, you can take a closer look at short positions from a resistance of 1.1304, or sell the euro to rebound from a high of 1.1336.

Indicator signals:

Moving averages

Trade is conducted just above 30 and 50 moving averages, however, the whole struggle for the trend is still ahead.

Bollinger bands

In case the euro declines, support will be provided by the lower boundary of the indicator in the area of 1.1245, while the upper limit in the area of 1.1300 will act as resistance with growth.

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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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Bitcoin control zones of 07.06.19

The downward movement of the current week allowed to reach the lower limit of the monthly range of June, which led to the emergence of large demand. If the level of $7500 will be held, then the upward movement will continue and the first target will be the May low of $9000. This is also where the last stop of growth occurred. It is important to understand that the upward impulse is a strong medium-term structure. Breaking of which will require the formation of a false breakdown of the older period.

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The first resistance in the way of growth will be the level of $8000. If this mark Bitcoin overcomes and consolidates higher in one of the trading sessions, the absorption of the last fall will be a matter of time.

An alternative model will be developed if the course fails to consolidate above $8,000 and starts to decline. In this case, the formation of the accumulation zone will continue. The lower limit is now at $7500. Fixation below this mark will indicate the end of the upward impulse and the transition to the bearish phase, where there will be most likely be a return to $3500.

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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 USD / JPY pair 07.06.19

For the week, the USD/JPY pair is trading outside the monthly control zone of May, which indicates a 90% probability of a return to the range. Purchases that are open from the June low must be kept.

The upward movement to the 1/2 WCZ of 108.79-108.70 is a priority since this zone is within the monthly May range. Closing of last month's bidding occurred below the average move, which increases the likelihood of a return upward to 90%. Testing of 1/2 WCZ will indicate further priority. As long as the pair is trading below this zone, the downward movement remains a medium-term impulse.

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Purchases opened this week should be partially fixed with testing the a WCZ, while the rest should be transferred to breakeven in case there is a consolidation above the level of 108.79.

An alternative model will be formed if the closing of the auction occurs above the level of 108.79. This will allow you to look for purchases early next week. It is important to understand that the probability of implementing this model is 30%, which makes the model auxiliary. Today, the option contract will occur expire, which may increase daily volatility.

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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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Burning forecast 06.07.2019 EURUSD

On Thursday, the main event of the week for the euro was held - the ECB meeting.

The ECB did almost everything to prevent the euro from rising: the ECB left rates at record lows. The head of the ECB said that the rate increase was postponed at least until mid-2020. In addition, members of the ECB discussed the option of lowering rates in the event of a deteriorating economy.

However, an attempt to reduce the euro at the ECB was immediately interrupted, and the euro closed the day at 1.1274

EURUSD maintains growth.

We keep buying from 1.1190 and from 1.1220

Possible purchases from 1.1240

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Technical analysis of GBP/USD for 07.06.2019

Technical Market Overview:

The GBP/USD bulls tried again the break through the technical resistance at the level of 1.2747 but were capped just a little below this level at 1.2740. The pull-back is still shallow and another attempt could be made, but the momentum is barely above its fifty levels, so the up move is not expected as the price might return to the downtrend any time now. The next technical support is located at the level of 1.2647.

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.

analytics5cf9f3246d4af.jpg

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Technical analysis of EUR/USD for 07.06.2019

Technical Market Overview:

The EUR/USD has bulls has made another rally attempt overnight and made a marginally higher high at the level of 1.1307, but the rally did not last long and it was faded quickly. The price hit the technical support at the level of 1.1224 again as the battle between bulls and bears continues. Currently, the price is trading around the level of 1.1264 in overbought market conditions with positive but not that strong momentum. The level of 1.1206 is the key technical support for the bulls and any violation of this level will open the road towards the support at 1.1118.

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.

analytics5cf9f19c4359d.jpg

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Elliott wave analysis of GBP/JPY for June 7, 2019

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The correction from 137.79 has been completed just below our anticipated target at 137.05 (the low was seen at 136.96). GBP/JPY is testing short-term important resistance at 137.79 again. A breakout above here will confirm that the wave 2 has culminated with the test of 136.53 and the wave 3 is developing. The wave 3 is expected to eventually break above the 148.87 peak from mid-March for a continued movement towards 156.61.

R3: 139.68

R2: 138.73

R1: 137.17

Pivot: 137.79

S1: 137.38

S2: 136.69

S3: 136.53

Trading recommendation:

We are long GBP from 137.50 with our stop loss order placed at 136.50.

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Technical analysis of Bitcoin for 07.06.2019

Crypto Industry News:

Japanese companies did not report crypto gains of $ 93 million over the past few years until March 2019, according to local media.

According to them, about 30 enterprises related to cryptography and 50 people have not declared their revenues from cryptocurrencies since March, allegedly due to the high tax on this type of income.

Until now, the Japanese tax authorities believed that revenues related to cryptography are other income taxed at 55%.

In order to combat tax evasion in industry, the Japanese government is preparing a new system that will authorize the National Tax Agency (NTA) to request information about revenues from cryptographic exchanges, including names and addresses. The new law, to be introduced in April 2020, will allow NTA to request data primarily from users whose cryptography earnings totaled over 10 million yen ($ 88,700).

The new system will be launched in January 2020 and will authorize the Japanese government to punish these exchanges or cryptographic operators who will not disclose the necessary information.

Technical Market Overview:

The BTC/USD pair is trading inside of a narrow zone between the levels of $7,484 - $7, 896, but a Hammer candlestick pattern was made at the bottom of the range, so there is a chance for a bigger rebound. The nearest technical resistance is seen at the level of $7,978 and only is this level is clearly violated, then the short-term outlook can change from bearish to bullish. Otherwise, the horizontal movement will continue until the breakout.

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. The level of $7,487 might be the bottom for wave 4.

analytics5cf9efbd13a01.jpg

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Elliott wave analysis of EUR/JPY for June 7, 2019

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EUR/JPY has hit a low of 121.22 before turning higher again and is now testing important resistance at 122.26. We need a clear breakout above this resistance to confirm that the wave ii has completed with the test of 120.75 and the wave iii is developing above 127.50.

Minor support at 121.67 is expected to protect the downside for a clear breakout above 122.26 confirming that the wave iii is unfolding and, at the same time, triggering the S/H/S bottom.

R3: 123.75

R2: 123.43

R1; 122.80

Pivot: 122.26

S1: 121.95

S2: 121.67

S3: 121.22

Trading recommendation:

We are long EUR from 120.75 with our stop loss order placed at 120.70.

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Technical analysis of Ethereum for 07.06.2019

Crypto Industry News:

The European Union has informed Malta that it needs to improve its resources to fight potential financial crimes as a result of the popularity of cryptocurrencies, according to the local Malta Today press.

In a letter to Member States advising on how to spend EU funds, the European Commission pointed out that the growing cryptocurrency sector in Malta is a potential weak link in the fight against financial crime.The financial media summarized the growing cryptocurrency sector in Malta as a potential weak link in the fight against financial crime.

We read that, in addition, there should be dealt with possible conflicts of interest in the government with regard to corruption, and tax obligations should also be re-assessed.

Malta continues its path to creating a marina for cryptocurrency and Blockchain. Some of the largest positions in the industry, including the Binance exchange, have made the country their home under the government plans for the "Blockchain Island".

At the same time, the authorities are trying to master the sector, creating both verification structures and providing information to consumers, such as the risk associated with investing in cryptocurrencies.

Technical Market Overview:

The ETH/USD pair is still being locked inside of the narrow horizontal range, but recently the bulls have started to challenge the local short-term trendline. If the breakout above the trendline is successful, then the next target is seen at the level of $259.66. The whole wave down labeled as 4/(a) might terminate around the level of $228.89 and then it will be labeled as three waves correction ABC or it can continue to evolve into an ABCDE Triangle pattern. Please notice, the price is still trading below the short-term descending trend line resistance as well.

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.

analytics5cf9ee171873e.jpg

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Forecast for EUR/USD for June 7, 2019

EUR/USD

The results of yesterday's meeting of the ECB turned out to be quite expected: the TLTRO-III program will be launched in September with a credit rate of about zero, the first rate increase will be no earlier than the middle of next year, the economy's prospects are reduced - from 2020 to 1.6 %, inflation forecast for the next year is 1.6%. This may mean that the ECB hints that the rate will not actually be raised in the coming year either. But Mario Draghi obviously gave the speech's tone, once again stating "all the means available to= the regulator" in the "case of what" ... The euro made the move of the previous day, but this time it did not reach the goal of 1.1324.

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In fact, the ECB announced a new program of quantitative easing, there is no reason for the euro to increase. Perhaps, preventive measures are introduced under the future head of the ECB in order to make it difficult for him to change anything.

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The price divergence with the Marlin oscillator on the four-hour chart has become pronounced, there is a good technical reason for the reversal, but there are two strong points against it: high purchase volumes and a high probability of double or broken divergence, which can lead to an increase to 1.1324 and even to 1.1356 - the level Fibonacci 76.4% on the daily chart. Also, in both graphs, the indicators are rising - the price is above the indicator lines, Marlin signal lines in the growth zone. But all growth factors have a stronger fall - today's data on labor in the United States. The forecast for Nonfarms is 180 thousand and an increase of hourly wages is 0.3%.

For the development of a downward trend, it is necessary to reduce the price below the MACD line on the four-hour chart (1.1205), which is near the previous day's low. Growth can begin at any time, especially if the US data are disappointing, and continue for several more days.

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Sell EUR/GBP with a target of 0.8692

EUR/GBP

On Tuesday, June 4, the price turned down from the level of 0.8901, which is the high on July 9, and which on August 14 the price was able to overcome from above, turning to 195-point growth. The observed reversal occurred with the formation of a divergence with the Marlin oscillator on the daily chart.

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On the four-hour chart, the price is below the MACD line and is preparing to break through the balance line around 0.8864. Simultaneously with this breakout, the signal line of the Marlin oscillator will already be in the zone of negative numbers. Overcoming 0.8864 will be a signal to open positions.

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So, if this is really a reversal, then we are waiting for the price at the Fibonacci level of 50% - half of the total growth from May 6. In the same area (0.8692) there is an embedded line of the price channel, the MACD line of the daily TF also tends to it.

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Forecast for GBP/USD for June 7, 2019

GBP/USD

On Thursday, under the influence of activity on the euro in connection with the ECB meeting, the pound sterling grew by more than 50 points, but as a result, closed the day with an increase of only 7 points. Growth stopped near the highs of June 5 and May 27. At this price surge, a divergence with the Marlin oscillator was formed on the four-hour chart - this is a pattern for further price reduction. But over the past two days, the consolidation of two candles formed on the daily chart, and this may be a sign of further price growth - resistance at 1.2745 can be overcome and the price will reach the balance line on the daily chart around 1.2820. Overcoming the signal level 1.2660 opens the way to the support of the MACD line on H4 1.2603, also corresponding to the low on May 23 Thus, the range of 1.2660-1.2745 for the British pound is the uncertain zone, the range of free wandering.

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EUR/GBP approaching resistance, potential drop!

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Price is approaching our first resistance where we might see a drop below this level.

Entry : 0.8900

Why it's good : Horizontal swing high resistance, 100% Fibonacci extension

Stop Loss : 0.8930

Why it's good : horizontal pullback resistance

Take Profit : 0.8805

Why it's good : 23.6% Fibonacci retracement, Horizontal swing low support

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NZD/USD approaching support, potential bounce!

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Price is approaching support where it is expected to bounce to its resistance. We are expected some NZD strength later today due to risk-on sentiment back in the market..

Entry : 0.6603

Why it's good : 38.2% Fibonacci retracement, 100% Fibonacci extension, horizontal pullback resistance

Stop Loss : 0.6561

Why it's good : 61.8% Fibonacci retracement, horizontal pullback support

Take Profit : 0.6667

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

analytics5cf9c9119c171.png

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EUR/JPY near key resistance, a drop is possible!

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EURJPY near key resistance, a drop to 1st support is possible

Entry: 122.24

Why it's good : 61.8% Fibonacci extension, 50% Fibonacci retracement, horizontal overlap resistance

Stop Loss : 122.76

Why it's good :61.8% Fibonacci retracement, 100% Fibonacci extension, horizontal swing high resistance

Take Profit : 121.32

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

analytics5cf9c8735319c.png

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Fractal analysis of major currency pairs for June 7

Forecast for June 7:

Analytical review of H1-scale currency pairs:

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For the euro/dollar pair, the key levels on the H1 scale are: 1.1363, 1.1331, 1.1305, 1.1259, 1.1238, 1.1214 and 1.1198. Here, the price has issued a local structure from June 5 to continue the movement to the top. The subsequent development of the upward movement is expected after the breakdown of the level of 1.1305. Here, the target is 1.1331, wherein consolidation is near this level. For the potential value for the top, we consider the level of 1.1363, after reaching which, we expect a rollback to the bottom.

Short-term downward movement is possible in the range of 1.1259 - 1.1238. The breakdown of the latter value will have the formation of a downward structure. Here, the goal is 1.1214. The noise range is 1.1214 - 1.1198.

The main trend is the formation of a local structure for the top of June 5.

Trading recommendations:

Buy 1.1305 Take profit: 1.1330

Buy 1.1333 Take profit: 1.1362

Sell: 1.1258 Take profit: 1.1240

Sell: 1.1236 Take profit: 1.1216

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For the pound/dollar pair, the key levels on the H1 scale are: 1.2808, 1.2789, 1.2754, 1.2727, 1.2687, 1.2667 and 1.2633. Here, we continue to monitor the development of the upward cycle of May 31. At the moment, the price is in the correction area. Continuation of the movement to the top is expected after the breakdown of the level of 1.2727. In this case, the goal is 1.2754, wherein near this level, there is a price consolidation. The breakdown of the level of 1.2755 should be accompanied by a pronounced upward movement. Here, the goal is 1.2808. Meanwhile, in the range of 1.2789 - 1.2808, there is a price consolidation. From here, we expect a rollback to the bottom.

Short-term downward movement is possible in the range of 1.2687 - 1.2667. The breakdown of the latter value will lead to a prolonged correction. Here, the target is 1.2633. This level is a key support for the ascending structure.

The main trend is the upward cycle of May 31, the stage of correction.

Trading recommendations:

Buy: 1.2728 Take profit: 1.2752

Buy: 1.2755 Take profit: 1.2787

Sell: 1.2686 Take profit: 1.2668

Sell: 1.2664 Take profit: 1.2638

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For the dollar/franc pair, the key levels on the H1 scale are: 1.0048, 1.0024, 0.9987, 0.9970, 0.9954, 0.9925, 0.9903, 0.9876 and 0.9840. Here, the price forms the potential for upward movement from June 5th. Continuation of the movement to the top is expected after the breakdown of the level of 0.9954. In this case, the target is 0.9970, wherein consolidation is near this level. The passage of the price range of 0.9970 - 0.9987 will lead to the development of a pronounced upward movement. In this case, the target is 1.0024. We consider the level of 1.0048 as a potential value for the top. Upon reaching this level, we expect consolidation, as well as a rollback to the bottom.

Consolidated movement is possible in the range of 0.9925 - 0.9903. The breakdown of the last value will lead to a prolonged correction. Here, the goal is 0.9876. This level is a key support for the top, while its price passage will lead to the subsequent development of the main trend. Here, the potential goal is 0.9840.

The main trend is the downward cycle of May 30, the formation of potential for the top of June 5.

Trading recommendations:

Buy : 0.9955 Take profit: 0.9970

Buy : 0.9988 Take profit: 1.0024

Sell: 0.9901 Take profit: 0.9878

Sell: 0.9874 Take profit: 0.9840

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For the dollar/yen pair, the key levels on the scale are : 108.84, 108.43, 107.76, 107.44 and 106.99. Here, we continue to monitor the downward structure of May 30. Short-term downward movement is expected in the range of 107.76 - 107.44. The breakdown of the last value will lead to the movement to the potential target - 106.99. Upon reaching this level, we expect a rollback to the top.

Short-term upward movement, as well as consolidation, are possible in the range of 108.45 - 108.84. The level of 108.84 is a key support for the downward structure. Its price passage will lead to the formation of the initial conditions for the upward cycle.

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

Trading recommendations:

Buy: 108.45 Take profit: 108.82

Buy: Take profit:

Sell: 107.74 Take profit: 107.45

Sell: 107.42 Take profit: 107.00

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For the Canadian dollar/US Dollar pair, the key levels on the H1 scale are: 1.3432, 1.3403, 1.3379, 1.3339, 1.3299 and 1.3250. Here, we are following the development of the downward structure of May 31. The continuation of the development of the main trend is expected after the breakdown of the level of 1.3339. In this case, the goal is 1.3299, wherein price consolidation is near this level. For the potential value for the bottom, we consider the level of 1.3250. After reaching which, we expect a rollback to the top.

Short-term upward movement is possible in the range of 1.3379 - 1.3403. The breakdown of the latter value will lead to a prolonged correction. Here, the target is 1.3432. This level is a key support for the bottom.

The main trend is the downward structure of May 31.

Trading recommendations:

Buy: 1.3379 Take profit: 1.3403

Buy : 1.3404 Take profit: 1.3432

Sell: 1.3339 Take profit: 1.3300

Sell: 1.3297 Take profit: 1.3250

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For the pair Australian dollar/US Dollar, the key levels on the H1 scale are : 0.7058, 0.7042, 0.7013, 0.7003, 0.6987, 0.6953, 0.6941 and 0.6924. Here, we are following the ascending structure of May 23. At the moment, the price is in deep correction. Continuation of the movement to the top is expected after the breakdown of the level of 0.6987. Here, the first target is 0.7003. The passage of the price of the noise range 0.7003 - 0.7013 will lead to the development of a pronounced movement. In this case, the goal is 0.7042. For the potential value for the top, we consider the level of 0.7058. After reaching which, we expect a consolidation, as well as rollback to the bottom.

The range of 0.6953 - 0.6941 is a key support for the top. Its price passage will lead to the formation of the initial conditions for the downward cycle. In this case, the potential target is 0.6924.

The main trend is the ascending structure of May 23, the stage of deep correction.

Trading recommendations:

Buy: 0.6988 Take profit: 0.7003

Buy: 0.7014 Take profit: 0.7040

Sell : 0.6953 Take profit : 0.6943

Sell: 0.6939 Take profit: 0.6925

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For the euro/yen pair, the key levels on the H1 scale are: 123.47, 123.06, 122.87, 122.54, 122.31, 121.98, 121.71 and 121.37. Here, we continue to monitor the ascending structure of June 3. Continuation of the movement to the top is expected after the price passes the noise range of 122.31 - 122.54. In this case, the goal is 122.87. Meanwhile, in the range of 122.87 - 123.06, there is a price consolidation. For the potential value for the top, we consider the level of 123.47. After reaching which, we expect to go into a correction.

Short-term downward movement is expected in the range of 121.98 - 121.71. The breakdown of the last value will lead to a prolonged correction. Here, the goal is 121.37. This level is a key support for the top.

The main trend is the ascending cycle of June 3.

Trading recommendations:

Buy: 122.55 Take profit: 122.87

Buy: 123.06 Take profit: 123.47

Sell: 121.98 Take profit: 121.73

Sell: 121.69 Take profit: 121.40

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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, the price is still in the correction zone from the downward trend and forms a small potential for the top of June 4. Continuation of the development of the downward trend of May 21 is expected after the breakdown of the level of 136.50. In this case, the target is 135.98. The breakdown of which, in turn, will allow us to expect to move to the level of 135.48, wherein consolidation is near this value, and also from here, there is a high probability of a reversal in the 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. The noise range is 138.39 - 138.76.

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

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

The market for a long time so much did not believe in the dollar's fall

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The slightest hint of a possible interest rate cut by the Fed was enough for the greenback to go down.

Judging by the rate of decline in the yield of dollar-denominated assets in the past few days, forex, probably following the derivatives market, began to lay in the Fed's dovish quotes.

It is assumed that the narrowing of the differential in interest rates will undermine the position of the US currency.

In such conditions, it's time to think about changing the upward trend in the USD to a downward one.

At least the options market signals that investors have now formed the strongest bearish sentiment for the dollar since January last year.

"We do not know when problems related to trade and other issues will be resolved. However, we are closely following the consequences of these events for the US economy and are ready to take appropriate measures to support economic growth, the labor market and inflation in the country," said Fed Head Jerome Powell last Tuesday.

He also noted that the reduction in interest rates to almost zero, which the Fed, the ECB and other central banks issuing reserve currencies "treated" the crisis of 2008, will definitely be required in one form or another in the future.

"The Fed may have slightly opened the door for a potential interest rate reduction (once or twice), which the market has already considered this year," believes Chris Rapci from MUFG Union Bank.

"Investors are increasingly convinced that the US central bank will lower the rate, the only question is when and how much," said Mark Cabana, a strategist at Bank of America.

The market for futures on the Fed rate is already laying in quotes for three declines - in September, December 2019 and March next year.

Meanwhile, some experts believe investors' expectations regarding the rate cut are excessively too much.

"I think that the market overestimated the scale of interest rate cuts," said Axel Weber, chairman of the board of directors of the Swiss bank UBS.

"There are no clear indications of an immediate rate cut in the recent statements by the Fed. There is only a possibility that in case of further deterioration of data in the second half of the year, the central bank may consider the possibility of taking corrective actions, "he added.

John Waldron, president and chief operating officer of Goldman Sachs, takes a similar view.

"The market lays a fairly significant set of steps on the part of the Fed in the price. I believe that the market is too optimistic about how much and how soon the regulator will change the rate, "he said.

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