Overview of GBP/USD on July 22 The forecast for the "Regression Channels". The fate of Britain is in the hands of Queen Elizabeth

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) – sideways.

CCI: 36.9803

The British currency returned to the moving average line, having failed to update the previous local maximum, and tends to resume the downward trend again. We remind you that tomorrow, it will be known who won the elections in the UK, Boris Johnson or Jeremy Hunt. Meanwhile, we have already written that the British Parliament hedged in case Johnson wins and wants to suspend the work of Parliament to carry out Brexit "without a deal" without the participation of Parliament. Since there is no consensus among parliamentarians on the question "how to leave the EU?" (and this is three years after the decision on the "divorce" was made), then to address this issue, we can connect Elizabeth II, who for 67 years of her reign has never solved political issues. Members of the Conservative Party fear that Boris Johnson will nevertheless turn Brexit "without a deal", which will be destructive to the country's economy, so they want to give the Queen the right to make political decisions. Thus, interested Tories will appeal to the Queen with a request to discuss with the European Union another Brexit deferment, which Brussels is ready to provide. This unprecedented case can put a fat cross on Boris Johnson's desires to leave the EU on October 31. By the way, Johnson is not yet the Prime Minister of Great Britain. Technically, the pound threatens to go below the moving again. It is impossible to predict what the market reaction will be to the election results, therefore, greater caution is recommended today and tomorrow, as it is possible to increase volatility and sharp price reversals.

Nearest support levels:

S1 – 1.2482

S2 – 1.2451

S3 – 1.2421

Nearest resistance levels:

R1 – 1.2512

R2 – 1.2543

R3 – 1.2573

Trading recommendations:

The GBP/USD pair has adjusted to the moving average. Thus, now, it is recommended to wait for the rebound from the moving and buy the pair again, but in very small lots, since both channels are directed downwards, with the goals of 1.2543 and 1.2573.

It will be possible to sell the pound/dollar pair with the goals of 1.2451 and 1.2421 not earlier than fixing the price below the moving average line. In this case, the bears will take the initiative again.

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 July 22. The forecast for the "Regression Channels". Traders are waiting for the results of the ECB

4-hour timeframe

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Technical data:

The upper channel of linear regression: direction – up.

The lower channel of linear regression: direction – down.

The moving average (20; smoothed) – sideways.

CCI: -74.1840

The new trading week for the EUR/USD currency pair starts calmly. To date, July 22, no important macroeconomic publications have been planned, so traders will not respond to anything during the day. There are, of course, unexpected news or messages from Donald Trump, but you cannot predict them in advance. As we once again realized last week, the forces of the euro are extremely small, despite the seemingly prosperous time to strengthen. However, we have already written that not everything is as clear as it seems. In our view, the dollar remains stronger and the US economy more powerful. Another overcoming of the MA and makes it more promising to continue the downward trend from a technical point of view. Mario Draghi's rhetoric at the ECB press conference with a probability of 99% will be "dovish". The only question is whether Draghi will announce only a rate cut or also a restart of the QE program, a revision of the inflation target levels? By the way, there have been no surprises from central banks for a long time. For example, everyone expects a decline from the European regulator at the next meeting, and monetary easing may occur as early as Thursday. Thus, we believe that the fall of the euro will continue this week.

Nearest support levels:

S1 – 1.1169

S2 – 1.1108

S3 – 1.1047

Nearest resistance levels:

R1 – 1.1230

R2 – 1.1292

R3 – 1.1353

Trading recommendations:

The EUR/USD currency pair is fixed below the moving average. Now, therefore, it is recommended to sell the euro/dollar pair with a target of 1.1169 before the reversal of the Heiken Ashi indicator to the top.

It is recommended to buy the euro in small lots if the bulls manage to return the pair above the moving average line, which will change the trend to the upward one, and the target, in this case, will be the level of 1.1292.

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.

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

Technical analysis of ETH/USD for 22.07.2019

Crypto Industry News:

Jeremy Allaire, CEO of Circle, will take part in lunch with the director-general of Berkshire Hathaway, Warren Buffett, chief executive of Tron, Justin Sun and creator of Litecoin, Charlie Lee.

On July 19, Allaire accepted Sun's invitation on Twitter to join the $ 4.6 million lunchtime expectation with the famous Bitcoin skeptic to discuss issues in the cryptography industry.

Three minutes after Sun published the invitation, Allaire wrote on Twitter that he had the honor to join, adding that the meeting would be a great opportunity for both Buffett and the cryptographic community so that they could learn from each other.

Lunch, first announced in early June after CEO Tron won the charity auction, is to be held on July 25 at Quince, a restaurant awarded with three Michelin stars in San Francisco. Allaire will be one of seven friends who will be able to accompany Sun during lunch with Buffett.

Allaire, co-founder, and general manager of Goldman Sachs, recently hoped that the Libra Facebook cryptographic project would trigger the development of a national approach to digital asset regulation. He previously insisted that the cryptographic space would require regulatory certainty, adding that the existing definition of cryptocurrencies is too broad.

Technical Market Overview:

The ETH/USD pair has tested the 50% Fibonacci retracement yet another time, but still, bulls were not strong enough to break through this level. The move-up looks quite strong, but to confirm the bottom for the wave Z and the termination of the whole corrective cycle, the bulls must break through the rest of the Fibonacci levels and head higher towards the key technical resistance seen at the level of $259.81.

Weekly Pivot Points:

WR3 - $294.64

WR2 - $266.38

WR1 - $246.13

Weekly Pivot - $217.90

WS1 - $196.02

WS2 - $167.35

WS3 - $146.40

Trading Recommendations:

The best strategy in the current market conditions is to trade with the larger timeframe trend, which is still up. All the shorter timeframe moves are being treated as a correction inside of the uptrend. The current cycle is wave 2 of the higher degree and it might have been completed, so the uptrend should resume soon.

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Control zones for GBPUSD on 07/22/19

Friday's test of the WCZ 1/2 1.2565-1.2549 gave the opportunity to go on sale. The pair is trading within the local accumulation zone, so the main goal of the fall is the minimum of the previous week. It is necessary to be careful when testing the WCZ 1/4 1.2473-1.2465, as there is a possibility of resuming growth, which will lead to a re-test of the WCZ 1/2.

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Purchases will require the formation of a pattern of "false breakout" of the Friday's minimum. If this happens, you need to close the sale and enter a long position. Estimated profit 90pp.

In order to continue to fall in GBPUSD, a breakdown with consolidation below the level of 1.2465 in the American session is required. This will keep sales to last week's minimum. This model is advantageous, and since there was no violation of the downward medium-term momentum, the probability of updating the monthly minimum is 70%.

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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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Technical analysis of BTC/USD for 22.07.2019

Crypto Industry News:

Bitcoin gained the legal recognition of the second Chinese court, which in turn strengthened the cryptocurrency in one of the most difficult environments.

The Hangzhou online court formally recognized Bitcoin as virtual property. The second such case, when the court attributed to Bitcoin the status of ownership, was a ruling being part of a dispute between the now-defunct stock exchange and one of its users who lost funds.

The case is a major breakthrough for Bitcoin in China, where a general ban on trade has been in force since September 2017. The pair BTC / USD grew sharply on Friday thanks to positive comments from US lawmakers, but China probably also influenced recovery.

China has long been interested in Bitcoin, despite the state-imposed moratorium on its use. As Bitcoin returned to its feet in 2019, evidence began to emerge that consumers found alternative means of access to traditional exchanges, such as the purchase of Tether via off-exchange transactions.

Technical Market Overview:

The BTC/USD pair has made a new top at the level of $11,059 and then reversed slightly. The top has been labeled as the top of the wave B and this is the last chance for the bears to regain control of the market because any other bullish rally above the wave B top will invalidate the current Elliott wave scenario. There is a short-term trendline that will act as dynamic support around the level of $9,913, so it is worth to keep an eye on this level as well.

Weekly Pivot Points:

WR3 - $13,488

WR2 - $12,221

WR1 - $11,392

Weekly Pivot - $10,218

WS1 - $9,394

WS2 - $8,128

WS3 - $7,356

Trading Recommendations:

The best strategy in the current market conditions is to trade with the larger timeframe trend, which is still up. All the shorter timeframe moves are being treated as a correction inside of the uptrend. The larger degree WXY correction might have been completed and the market might be ready for another impulsive wave up.

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Elliott wave analysis of EUR/JPY for July 22 - 2019

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EUR/JPY has re-tested the 120.76 low. This low is slightly above our ideal target 120.62. This could be enough to fulfill our target and set the stage for a new impulsive rally in wave III. To confirm that wave II has completed and wave III is developing. we need a break above minor resistance at 121.53 and more importantly we need to see a break above resistance at 122.32 that will confirm a new impulsive rally to 123.06 peak.

R3: 122.32

R2: 121.84

R1: 121.53

Pivot: 121.15

S1: 120.76

S2: 120.62

S3: 120.30

Trading recommendation:

We are long EUR from 120.85.

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Technical analysis: Important intraday Level For EUR/USD, July 22,2019

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when the European and US market opens, no economic data will be released. So, amid such news, the EUR/USD pair will move in a low to medium volatility during this day. TODAY'S TECHNICAL LEVEL: Breakout BUY Level: 1.1271. Strong Resistance: 1.1265.Original Resistance: 1.1254. Inner Sell Area: 1.1243. Target Inner Area: 1.1217. Inner Buy Area: 1.1191. Original Support: 1.1180. Strong Support: 1.1169. Breakout SELL Level: 1.1163. (Disclaimer)

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Technical analysis: Important intraday level for USD/JPY, July 22,2019

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Japan and the US will not publish any economic reports.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.3:108.07.Resistance. 2:107.86.Resistance. 1:107.65.Support. 1:107.38.Support. 2:107.17. Support. 3:106.96. (Disclaimer)The material has been provided by InstaForex Company - www.instaforex.com

Technical analysis of GBP/USD for 22.07.2019

Technical Market Overview:

The GBP/USD pair has broken above the short-term trendline dynamic resistance around the level of 1.2525, made a local high at the level of 1.2556 and then quickly reversed down towards the technical support at the level of 1.2480. It looks like a false breakout as the bulls are clearly not strong enough to continue the breakout higher: the momentum indicator is back to the neutral level of fifty. Any violation of the level of 1.2480 will open the road towards the next technical support at the level of 1.2432. The downtrend continues.

Weekly Pivot Points:

WR3 - 1.2789

WR2 - 1.2679

WR1 - 1.2588

Weekly Pivot - 1.2485

WS1 - 1.2394

WS2 - 1.2201

WS3 - 1.1089

Trading Recommendations:

The best strategy for the current market conditions is to follow the larger timeframe trend. The larger time frame trend is still down and there are no signs of any trend reversal. The key long-term technical support at the level of 1.2420 has been violated and the next target for bears is seen at the level of 1.1983.

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Elliott wave analysis of GBP/JPY for July 22 - 2019

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GBP/JPY continues to display upside pressure. In the short-term, we expect another dip to 134.35 before the next upward movement towards 136.26 which needs to be broken to confirm that wave 2 has completed with the test of 133.90 and a new impulsive rally in wave 3 is developing.

Only an unexpected break back below 133.90 will confirm that wave 2 still is in motion, but the potential downside is likely to be limited.

R3: 136.28

R2: 136.02

R1: 135.28

Pivot: 135.05

S1: 134.64

S2: 134.65

S3: 133.90

Trading recommendation:

We are long GBP from 134.75

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Technical analysis of EUR/USD for 22.07.2019

Technical Market Overview:

The EUR/USD pair has reversed again from the level of 1.1284 despite the positive momentum and a lack of overbought market conditions. It means the level of 1.1284 is now the key technical resistance and only if violated, the bulls are in control of the market. Otherwise, the price will likely continue to move lower towards the level of 1.1206 and below as the downtrend will continue. The short-term key technical support is the level of 1.1181 and the long-term key technical support is seen at the level of 1.1101.

Weekly Pivot Points:

WR3 - 1.1340

WR2 - 1.1310

WR1 - 1.1257

Weekly Pivot - 1.1229

WS1 - 1.1171

WS2 - 1.1143

WS3 - 1.1089

Trading Recommendations:

The best strategy for the current market conditions is to buy the corrections in anticipation of the uptrend to resume. This strategy is valid as long as the level of 1.1181 is clearly violated. The larget time frame trend is still down, but there are signs of the trend reversal and the Ending Diagonal breakout to the upside.

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Control zones for EURUSD on 07/22/19

Last week, the pair tested the WCZ 1/2 1.1281-1.1273 once again. This allowed us to enter into a short position. The potential reduction is 88 points to the first goal, which is the minimum of last week. The further decrease will depend on the reaction to the weekly extremum.

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The main goal after passing the weekly minimum will be the WCZ 1/2 1.1155-1.1148, formed from the previous week's CZ.

To continue the work within the medium-term flat, demand will be required after the retest of last week's minimum. This will allow you to buy the tool to return to the top of the WCZ 1/2. Work within flat means partial commit when reaching the range limits and break-even the rest 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/USD approaching support, potential bounce!

analytics5d354293933d3.jpgEURUSD approaching our first support where we are expecting a bounce above this level.

Entry: 1.1195

Why it's good : horizontal swing low support, 100% Fibonacci extesion

Stop Loss : 1.1178

Why it's good : 76.4% Fibonacci retracement, Horizontal swing low support

Take Profit : 1.1245

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

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AUD/USD testing intermediate support, potential break-out!

analytics5d35420c1422c.jpgPrice is currently testing its intermediate support where if broken, will confirm a further move down to its 1st support.

Entry: 0.7041

Why it's good : 50% Fibonacci retracement, 100% Fibonacci extension, horizontal overlap support

Stop Loss : 0.7078

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

Take Profit : 0.6998

Why it's good: 61.8% Fibonacci extension, 50% Fibonacci retracement, horizontal swing low support

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USD/JPY approaching resistance, potential drop!

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USDJPY approaching 1st resistance at 108.1 where a reversal could occur.

Entry :108.10

Why it's good : horizontal swing high resistance, 61.8% Fibonacci extension, 50% & 76.4% Fibonacci retracement

Take Profit : 107.80

Why it's good : 38.2% Fibonacci retracement, horizontal overlap support

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Control zones for AUDUSD on 07/22/19

Work in the framework of the upward impulse involves finding favorable prices for the purchase. The main support is WCZ 1/2 0.7016-0.7009. As long as the pair is trading above the specified zone, the bullish movement will remain an impulse. The WCZ 1/2 test will give the opportunity to buy a pair at competitive prices in case of demand.

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It is important to note that the WCZ 1/2 test will coincide with a significant level of demand, which was formed last week. This adds value to the specified marks.

The reversal model will be developed if the closure of today's US session is below 0.7009. This will allow you to look for sales already in tomorrow's Asian session. The upward medium-term cycle will be completed.

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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

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

Forecast for EUR / USD pair on July 22, 2019

EUR / USD pair

On Friday, the euro fell by 56 points, which cuts off the growth of the previous day. At the moment, the price on the daily scale chart is trying to break through to the support zone (there was a break in the lower shadow), which was expressed by the price channel line and the Fibonacci level of 100.0%. The price returned safely under the balance line and MACD and the signal line of the oscillator marlin did not go over to the growth zone.

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On the four-hour chart, the price is fixed below the MACD line and the Marlin oscillator indicates a downward trend. We believe that this time, the signal level will be on 1.1193 will not stand, which opens the way to a medium-term decline. The first target level is 1.1155 and then 1.1116 up to 1.1074 will be reached.

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Forecast for GBP / USD pair on July 22, 2019

GBP / USD pair

The outstanding growth of the British pound on Thursday was halted by the daily balance line. On Friday, the price touched her timidly and rolled back down once again. The Marlin oscillator signal line turned down from the border with the territory of growth. All indicators for the daily trend remains declining. In order to overcome the signal level of 1.2578, the probability of the resumption of growth is 9-12%, which opens the way from the first target of 1.2648 (the line of the price channel and the MACD line).

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On the four-hour chart, the price remains above the balance line and the MACD line, as well as the m arlin oscillator in the growth zone. Overcoming the support of the MACD line at 1.2458 creates a full-fledged signal to further reduce the price to the nearest target 1.2290, which is the nested line of the day TF price channel. At the same time, Marlin can move to the zone of negative numbers.

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Forecast for USD / JPY pair on July 22, 2019

USD / JPY pair

The technical picture of our last review (July 18) was fully realized. The price worked out the range 107.35 / 87 indicated with a gray rectangle on the four-hour chart. The signal line of the Marlin oscillator on the same scale has once again touched the generator line of convergence. This creates a double convergence, after which it returned above the signal level 107.87.

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On the daily chart, the departure of the signal line is under the border with the territory of decline. Also, according to our forecast, it turned out to be false. At the moment, Marlin's daily is already in the growth zone. The price is higher than the indicator line of balance, which indicates a shift in the price balance to the upside over the past 90 days based on the calculations by the indicator. Its immediate goal is the area of the MACD line and the price channel line of 108.70. The price yield above the resistance opens up the prospect of growth to the upper line of the channel at 109.70.

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Forecast for USD / CAD pair on July 22, 2019

USD / CAD pair

On the daily scale of the Marlin oscillator, a triple convergence has formed. The signal line of the oscillator itself is close to moving into the growth zone. The bottom in decrease from May 31 is likely to be found with the immediate goal of growth at the embedded line of the price channel of the older scale 1.3143. This level corresponds to the peaks of July 10 and July 1.

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On the four-hour chart, the price is higher than the MACD and balance indicator lines.The Marlin oscillator is in the zone of positive numbers in the zone of growth trends.

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Fractal analysis of major currency pairs on July 22

Forecast for July 22:

Analytical review of H1-scale currency pairs:

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For the euro / dollar pair, the key levels on the H1 scale are: 1.1342, 1.1299, 1.1286, 1.1249, 1.1217, 1.1197 and 1.1169. Here, the price is in equilibrium. The resumption of the movement to the top is expected after the breakdown of 1.1249. In this case, the goal is 1.1286. Price consolidation is in the corridor 1.1286 - 1.1299. The breakdown of the level of 1.1300 should be accompanied by a pronounced upward movement. Here, the potential target is 1.1342, and upon reaching this level, we expect a rollback to the bottom.

Short-term downward movement is possible in the corridor 1.1217 - 1.1197. The breakdown of the latter value will have to be the development of a downward structure, and in this case, the potential target is 1.1169.

The main trend is the equilibrium situation.

Trading recommendations:

Buy 1.1250 Take profit: 1.1284

Buy 1.1301 Take profit: 1.1340

Sell: 1.1212 Take profit: 1.1198

Sell: 1.1195 Take profit: 1.1172

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For the pound / dollar pair, the key levels on the H1 scale are: 1.2691, 1.2623, 1.2598, 1.2568, 1.2515, 1.2492 and 1.2447. Here, we consider the ascending structure of July 17 as a large initial condition. Continuation of the movement to the top is expected after the breakdown at 1.2568. In this case, the goal is 1.2598. Short-term upward movement, as well as consolidation, is in the corridor 1.2598 - 1.2623. The breakdown of the level 1.2623 should be accompanied by a pronounced upward movement. Here, the potential target is 1.2691. From this level, we expect a rollback to the bottom.

Consolidated movement is expected in the corridor 1.2515 - 1.2492. The breakdown of the last value will lead to a prolonged correction. Here, the target is 1.2447. This level is a key support for the upward structure of July 12.

The main trend - the formation of the ascending structure of July 17.

Trading recommendations:

Buy: 1.2568 Take profit: 1.2598

Buy: 1.2600 Take profit: 1.2622

Sell: 1.2490 Take profit: 1.2450

Sell: 1.2442 Take profit: 1.2390

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For the dollar / franc pair, the key levels on the H1 scale are: 0.9902, 0.9881, 0.9858, 0.9841, 0.9798, 0.9779, 0.9745 and 0.9731. Here, we are following the formation of the downward structure of July 17th. Short-term downward movement is expected in the corridor 0.9798 - 0.9779. The breakdown of the last value should be accompanied by a pronounced downward movement. Here, the goal is 0.9745. For the potential value to the bottom, we consider the level of 0.9731, after reaching which, we expect consolidation, as well as rollback to the top.

Short-term upward movement is possible in the corridor 0.9841 - 0.9858. The breakdown of the latter value will lead to in-depth correction. Here, the goal is 0.9881. This level is a key support for the downward structure.

The main trend is the local downward structure of July 17.

Trading recommendations:

Buy : 0.9841 Take profit: 0.9856

Buy : 0.9860 Take profit: 0.9880

Sell: 0.9798 Take profit: 0.9780

Sell: 0.9776 Take profit: 0.9747

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For the dollar / yen pair, the key levels on the scale are : 108.42, 108.12, 107.84, 107.43, 106.98, 106.68, 106.27 and 106.01. Here, we continue to monitor the downward structure of July 10. At the moment, the price is in the correction. The resumption of the movement to the bottom is expected after the breakdown of 107.43. In this case, the first target is 106.98. Short-term downward movement is possible in the corridor 106.98 - 106.68. The breakdown of the latter value should be accompanied by a pronounced downward movement. In this case, the goal is 106.27. For the potential value at the bottom, we consider the level of 106.01, and after reaching which, we expect a rollback to the top.

Short-term upward movement is possible in the corridor 107.84 - 108.12. The breakdown of the last value will lead to a prolonged correction. Here, the goal is 108.42. This level is a key support for the bottom.

The main trend: the downward structure of July 10, the stage of correction.

Trading recommendations:

Buy: 108.13 Take profit: 108.40

Sell: 107.40 Take profit: 107.00

Sell: 107.96 Take profit: 106.70

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For the Canadian dollar / US dollar pair, the key levels on the H1 scale are: 1.3141, 1.3105, 1.3070, 1.3050, 1.3016, 1.3001, 1.2964 and 1.2937. Here, the situation is in equilibrium. Continuation of the movement to the bottom is expected after the price passes the noise range of 1.3016 - 1.3001. In this case, the target is 1.2964. For the potential value at the bottom, we consider the level of 1.2937, and after reaching which, we expect a rollback to the top.

Short-term upward movement is possible in the corridor 1.3050 - 1.3070. The breakdown of the latter value will lead to a prolonged correction. Here, the target is 1.3105. This level is a key support for the bottom.

The main trend is the equilibrium state.

Trading recommendations:

Buy: 1.3050 Take profit: 1.3070

Buy : 1.3072 Take profit: 1.3105

Sell: 1.3000 Take profit: 1.2965

Sell: 1.2962 Take profit: 1.2938

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For the Australian dollar / US dollar pair, the key levels on the H1 scale are : 0.7145, 0.7111, 0.7101, 0.7066, 0.7085, 0.7050, 0.7036, 0.7015 and 0.6995. Here, we are following the formation of the ascending structure of July 17. At the moment, the price is in the correction zone. Continuation of the movement to the top is expected after the breakdown of 0.7066. In this case, the first goal is 0.7085. The breakdown of which, in turn, will lead to the movement to the level of 0.7101, near this level is the price consolidation. Passing through the noise range of 0.7101 - 0.7111 will lead to a pronounced movement. Here, the potential target is 0.7145. From this level, we expect a rollback to the bottom.

Consolidated movement is possible in the corridor of 0.7050 - 0.7036. The breakdown of the latter value will lead to a prolonged correction. Here, the target is 0.7015. This level is a key support for the upward structure of July 17.

The main trend is the ascending structure of July 10, the local structure for the top of July 17.

Trading recommendations:

Buy: 0.7066 Take profit: 0.7085

Buy: 0.7085 Take profit: 0.7101

Sell : 0.7034 Take profit : 0.7017

Sell: 0.7013 Take profit: 0.6995

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For the euro / yen pair, the key levels on the H1 scale are: 121.66, 121.35, 121.18, 120.92, 120.62, 120.48, 120.14 and 119.91. Here, we continue to monitor the downward structure of July 10. Continuation of the movement to the bottom is expected after the breakdown of 120.90. In this case, the target is 120.62. Price consolidation is in the corridor 120.62 - 120.48. The breakdown of the level of 120.46 should be accompanied by a pronounced downward movement, and here the goal is, 120.14. For the potential value at the bottom, we consider the level of 119.91, and after reaching which, we expect a rollback to the top.

Short-term upward movement is possible in the corridor 121.18 - 121.35. The breakdown of the latter value will lead to a prolonged correction, and here the goal is, 121.66. This level is a key support for the downward structure.

The main trend - the downward structure of July 10.

Trading recommendations:

Buy: 121.18 Take profit: 121.33

Buy: 121.37 Take profit: 121.66

Sell: 120.90 Take profit: 120.62

Sell: 120.46 Take profit: 120.14

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For the pound / yen pair, the key levels on the H1 scale are : 135.96, 135.63, 135.40, 135.04, 134.79, 134.38, 134.15, 133.81 and 133.44. Here, the price forms the expressed initial conditions for the top of July 18. Short-term movement to the top is expected in the corridor 134.79 - 135.04. The breakdown of the last value should be accompanied by a pronounced upward movement. Here, the target is 135.40. Short-term upward movement, as well as consolidation is in the corridor 135.40 - 135.63. We consider the level of 135.96 as a potential value the top, after reaching which we expect consolidation, as well as a pullback to the bottom.

Short-term downward movement, is perhaps in the range of 134.38 - 134.15. The breakdown of the latter value will have to develop a downward trend, and here the goal is, 133.81. Potential value for the bottom is expected at the level of 133.44.

The main trend is the downward cycle of July 9, the formation of potential for the top of July 18.

Trading recommendations:

Buy: 135.06 Take profit: 135.40

Buy: 135.42 Take profit: 135.62

Sell: 134.38 Take profit: 134.17

Sell: 134.12 Take profit: 133.81

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

GBP / USD. July 21. Results of the week. Jeremy Hunt can unexpectedly win the election.

4 hour timeframe

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The amplitude of the last 5 days (high-low): 60p - 67p - 125p - 75p - 134p.

Average amplitude for the last 5 days: 92p (80p).

The British pound sterling, although it strengthened last week quite strongly, on Friday, July 19, began to correct itself and fell to the Kijun-sen line. The previous local maximum failed to overcome or reach by the pair of pound / dollar. Thus, according to the technical analysis, everything goes to the fact that the downward trend will resume. Next week, the whole world will know who will become the new leader of the Conservative Party and British Prime Minister, which is either Jeremy Hunt or Boris Johnson. According to the results of exit polls, Johnson leads, however, the balance of power between candidates may change after the events of last week, when the British Parliament passed an amendment to the Irish Parliament Act, which does not allow a country to leave the EU without a "deal" without the approval of Parliament itself. Thus, Johnson may unexpectedly lose the election, since he regularly insisted that the country should in any case leave the EU on October 31, even if there were no agreements with Brussels. It was he who was ready to suspend the work of Parliament in order to implement the "tough" Brexit on its own. Now, it turns out that this option is unlikely. A softer and loyal Jeremy Hunt, who allows Brexit to postpone to a later date, which does not persist with the date of October 31, which is ready for dialogue, may suddenly receive the support of the majority of members of the Conservative Party. At least from our point of view, this option cannot be ruled out. Anyway, on July 23, we will find out the name of the new prime minister. The fate of the pound sterling for the coming weeks, at least, will depend on it. Since at the moment, the British currency is inclined to decline again. Bears continue to dominate the market, and there are no good reasons to buy the pound.

Trading recommendations:

The currency pair pound / dollar began a downward correction. Formally, long positions with targets at levels 1.2591 and 1.2621 remain relevant, after the end of the current round of correction. However, longs are now associated with increased risks.

We can buy the US dollar after the pair make a reversal below the line Kijun-sen, which will lead to a change in the downward trend. The first goal is 1.2407.

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

Explanation of the illustration:

Ichimoku indicator:

Tenkan-sen - the red line.

Kijun-sen - the blue line.

Senkou Span A - light brown dotted line.

Senkou Span B - light purple dotted line.

Chinkou Span - green line.

Bollinger Bands indicator:

3 yellow lines.

MACD Indicator:

Red line and histogram with white bars in the indicator window.

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

EUR / USD. July 21. Results of the week. Euro ends the week again on a minor note.

4 hour timeframe

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The amplitude of the last 5 days (high-low): 37p - 31p - 62p - 34p - 75p.

Average amplitude for the last 5 days: 48p (41p).

We have repeatedly noted that the pound sterling simply has no reason to grow now. Indeed, the strengthening of a particular currency is due to the balance of supply and demand. Since the supply does not change much, the main factor affecting the exchange rate is demand. And in the case of the pound sterling, this demand is absent. However, in the case of the euro currency, the situation is no better. On July 11, 15 and 19, the euro / dollar pair tried to overcome the level of 1.1280 three times, which is not too far from the pair's lows, which does not make it strong, and all three times were unsuccessfully. The euro rejoiced very briefly as that the Fed is preparing to soften monetary policy. After all, the forex market either remembered or drew attention to information relating to the ECB, which in the same way could lower the key rate in the coming months. The only difference is that the Fed will take this step in July, and the ECB, most likely, in September. However, surprises are possible here. The fact remains that nothing has changed in the confrontation of monetary policy. Moreover, in the European Union, they can reanimate the QE economic stimulus program and the TLTRO banking sector support program, which again will put the euro in a more disadvantageous position. And what is the result? As a result, even a reduction in the Fed's key rate is unlikely to support the euro and generate demand for this currency. On Friday, there were no important macroeconomic publications in the US and the EU, and next week the attention of traders will be focused on the ECB meeting. From a technical point of view, the pair is ready to resume the downward trend.

Trading recommendations:

The EUR / USD pair completed the next round of upward correction. Thus, it is now recommended again to sell the Eurocurrency with targets at levels 1.1170 and 1.1157, since the pair has broken the critical line.

We recommend buying the euro / dollar not earlier than fixing the price above the Kijun-sen line with the first target of 1.1306; but with minimal lots, since the bulls remain extremely weak.

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

Explanation of the illustration:

Ichimoku indicator:

Tenkan-sen - the red line.

Kijun-sen - the blue line.

Senkou Span A - light brown dotted line.

Senkou Span B - light purple dotted line.

Chinkou Span - green line.

Bollinger Bands indicator:

3 yellow lines.

MACD Indicator:

Red line and histogram with white bars in the indicator window.

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