AUD/USD drop in progress

analytics5d6388ad453a4.jpg

Price coming close to resistance below which a fresh drop is expected..

Entry: 0.67420

Why it's good : 50% Fibonacci retracement, graphical price gap

Stop Loss : 0.67554

Why it's good : 78.6% Fibonacci retracement

Take Profit : 0.6666

Why it's good: 100% Fibonacci extension

analytics5d638882cc3c8.png

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

USD/JPY approaching resistance, possible reversal!

analytics5d638805ca566.jpg

USDJPY is approaching 1st resistance at 105.59, potential reversal could occur!

Entry :105.587

Why it's good : horizontal pullback resistance

100% Fibonacci extension

50% Fibonacci retracement

Take Profit : 104.397

Why it's good :Horizontal swing low support

analytics5d6387e9b3fd1.png

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

Trump is now enemy of US dollar

China announced retaliation against US companies on Friday with the US Administration, in turn, announcing a further increase in tariffs on Chinese exports after the market close.

Fears over the US economy increased sharply with the impact of tariffs amplified by Trump's rhetoric in ordering US companies to pull out of China.

Trump also launched another attack on the Federal Reserve in general with Chair Powell a particular target. The dollar fell sharply late on Friday and losses extended at Monday's Asian open with USD/JPY posting 2019 lows close to 104.50.

US Treasuries rallied sharply with the 10-year yield sliding to fresh 3-year lows below 1.45% while the 2 and 10-year bonds yield curve inverted once again.

There was an element of moderation in language in Asia on Monday with Trump indicating that he did not want US companies to pull out of China while Beijing attempted to ease tensions with hopes for dialogue.

USD/JPY then rallied sharply to above 105.80 after Trump stated that China wants to return to the negotiating table and that a deal is possible.

Overall confidence will remain extremely fragile in the short term. Trump's increasingly erratic rhetoric will deter longer-term fund managers from taking positions which will increase the influence of speculative players. There will also be very quick moves to liquidate positions.

This effect will be amplified by a seasonal lack of volatility during the peak European and US holiday season.

Trump will see lower interest rates as vital to support the economy and attacks on the Fed will continue. The yuan slide will also draw strong criticism from the White House and the possibility of direct intervention to weaken the US currency.

The potential use of emergency powers to stop US companies operating in China will also have an important negative US economic impact and undermine the dollar. A key tipping point is likely to have been reached with Trump causing long-term damage.

Rhetoric from Trump and Chinese officials will be watched closely, although it will be equally important to watch any comments from key moderate Administration officials such as Treasury Secretary Mnuchin.

The response from US congressional leaders will also be important, especially key Republican officials, and there is a much greater risk of moves to remove Trump from office.

analytics5d6385e6574c0.jpg

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

Technical analysis of ETH/USD for 26/08/2019:

Crypto Industry News:

Jeremy Allaire, CEO of Blockchain's remittance company, Circle, said the company has long maintained that major fiat currencies will eventually be tokenized.

In an online podcast, Allaire said that Circle has for years believed that sovereign currencies will eventually be digitized.

"When we started with Circle in 2013, I think we believed that there would be significant non-state digital currencies that would grow in use and be attractive to people for many different reasons, and Bitcoin is obviously the most noteworthy. But we also believed that the world's main reserve currencies, the world's major trading currencies, would become digital currencies" - he said.

Allaire also believes that the world is moving towards a system of cheap, instant cash transactions with traditional fiat currencies - no matter which countries introduce fiat digital currencies. In addition, he believes that this will be a radical change in the operation of payment systems, monetary system and economic interaction in general.

Allaire explained that he did not believe that digital currencies were simply tokenized using Blockchain and did the same as they do now. Instead, it predicts that global money tokens, supported by reserve currency baskets, will appear and become the preferred monetary model.

Technical Market Overview:

The ETH/USD pair keep trading in a consolidation zone that gets even tighter. Currently, the market is trading between the technical support located at the level of $178.81 and technical resistance located at the level of $196.76. Despite the fact, that the whole WXYXZ corrective cycle might have been completed at the level of $172.82 on 15th of August, there is still no bullish momentum present on the market. The global investors should then await the breakout in either direction.

Weekly Pivot Points:

WR3 - $218.26

WR2 - $210.07

WR1 - $196.01

Weekly Pivot Pont - $185.93

WS1 - $171.02

WS2 - $161.63

WS3 - $146.97

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. The global investors are waiting for a breakout above the level of $238.68 to confirm the resumption of the uptrend.

analytics5d63830d540e0.jpg

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

Technical analysis of BTC/USD for 26/08/2019:

Crypto Industry News:

At least three early Facebook supporters in connection with the planned launch of stablecoin Libra is considering withdrawing from the project due to strong regulatory pressure.

Financial Media states that the two founding partners of the Facebook Libra Association talked about what their right steps should be. Another - again unnamed - supporter is allegedly concerned that their public support for Libra will result in unwanted regulatory control of their own independent companies.

The Libra Association is a newly created, independent management consortium for Libra. It has 28 founding members - including Visa, Mastercard, PayPal, and Uber and Spotify - each of whom was required to invest $ 10 million in the project.

"I think that partners who want to be seen as compatible [with their own regulatory bodies] will find it difficult to support Libra," one partner noted in an interview with the media.

The tension supposedly increases on both sides. One partner admitted that Facebook itself was tired of being the only one to turn his neck. Both Facebook and the Libra Association reportedly declined to comment.

The antitrust authorities of the European Commission are the last to join the regulatory rounds of Libra since the project was presented in June. Objections from regulators, governments and central bankers around the world have reached such a high level that at the end of July Facebook was asked to warn its investors that stablecoin may never be released.

Technical Market Overview:

The BTC/USD pair has bounced from the level of $9,704 but is still trading inside the descending channel, despite the recent rally towards the upper channel boundary located at the level of $10,371. The high of this rally was made at the level of $10,599, just above the 38% of the Fibonacci retracement, but no follow-through has occurred yet as the price got back to the channel again.

Weekly Pivot Points:

WR3 - $11,710

WR2 - $11,306

WR1 - $10,534

Weekly Pivot Pont - $10,091

WS1 - $9,320

WS2 - $8,854

WS3 - $8,140

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 of a higher degree. Any violation of the level of $9,049 invalidates the bullish impulsive scenario.

analytics5d63807262e5e.jpg

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

Trading plan for EUR/USD for August 26, 2019

analytics5d6376f3293a6.jpg

Technical outlook:

A daily chart potential wave counts are presented here, The EUR/USD pair seems to be carving Wave C of A-B-C drop from 1.2555 levels from 2018. Wave A was in 5 waves, Wave B could be a triangle as shown above and Wave C is a potential ending diagonal into its last Wave 5 being carved out. Please note that Wave 4 within the ending diagonal might have terminated at 1.1250 levels or it could push and terminate through 1.1260. A wave 5 is then expected to carve yet another low below 1.1020, going forward. If the above count holds true, prices should remain below 1.1412, which is also immediate price resistance as depicted above. Overall trading strategy would be to remain short with a protective stop above 1.1412 levels for now. On the flip side, if prices break above 1.1412, then the projected bearish count would turn invalid and also that Wave C already terminated at 1.1020 levels.

Trading plan:

Remain short for now, stop at 1.1412, target below 1.1020

Good luck!

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

Technical analysis for the GBP/USD currency pair for the week from August 26 to 31, 2019

Trend analysis.

This week, the price will move up from the first target of 1.2358 – a pullback level of 14.6% (yellow dotted line) and there is a resistance line – 1.2331 (red bold line). Breaking up this cloud is unlikely. From this cloud (1.2358 – 1.2331), you can work down.

analytics5d636c7097b63.png

Fig. 1 (weekly chart).

Comprehensive analysis:

- Indicator analysis – up;

- Fibonacci levels – up;

- Volume – up;

- Candlestick analysis – up;

- Trend analysis – up;

- Bollinger Bands – up;

- Monthly chart – up.

The conclusion of the comprehensive analysis is an upward movement.

The overall result of calculating the candle of the GBP / USD currency pair according to the weekly chart: the price for weeks is more likely to have an upward trend with the absence of the first lower shadow of the weekly white candlestick (Monday – up) and having a second upper shadow (Friday – down).

This week, the price will move down from the first target of 1.2331 – resistance line (red bold line). From this line, you can work down.

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

Technical analysis for the EUR/USD currency pair for the week from August 26 to 31, 2019

Last week, the pair made an upward movement, breaking off the support line of 1.1095 (blue bold line). The price tested a pullback level of 50% - 1.1150 (yellow dotted line). This week, there is a high probability of continuing the upward movement.

analytics5d63697973fb8.png

Trend analysis.

This week, the price will move up with the first target of 1.1173 – a retracement level of 61.8% (yellow dotted line), when it reaches further a retracement level of 76.4% - 1.1199 (yellow dotted line).

Fig. 1 (weekly chart).

Comprehensive analysis:

- Indicator analysis – down;

- Fibonacci levels – up;

- Volume – up;

- Candlestick analysis – up;

- Trend analysis – up;

- Bollinger Bands – down;

- Monthly chart – up.

The conclusion of the comprehensive analysis is an upward movement.

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

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

Technical analysis of GBP/USD for 26/08/2019:

Technical Market Overview:

The GBP/USD pair has broken above the technical resistance located at the level of 1.2248 and made a new local high at the level of 1.2292. The bulls are temporary in control of the market and the next target for them is located at the level of 1.2381. This is the short-term key resistance level and if violated, the correction might evolve into more trending move higher. Nevertheless, the whole move up is still a part of the correction, because it does not look like the beginning of a new, impulsive trend.

Weekly Pivot Points:

WR3 - 1.2616

WR2 - 1.2455

WR1 - 1.2395

Weekly Pivot Pont - 1.2226

WS1 - 1.2161

WS2 - 1.2001

WS3 - 1.1935

Trading Recommendations:

The best strategy for current market conditions is to trade with the larger timeframe trend, which is down. All upward moves will be treated as local corrections in the downtrend. In order to reverse the trend from down to up, the key level for bulls is seen at 1.2429 and it must be clearly violated. As long as the price is trading below this level, the downtrend continues.

analytics5d637e62bcab6.jpg

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

Technical analysis of EUR/USD for 26/08/2019:

Technical Market Overview:

The EUR/USD has bounced significantly from the technical support located at the level of 1.1063 after a marginal low was made at the level of 1.1053. The big candlestick is a signal that the bulls are still defending the lower price levels and are not ready to throw the towel yet. The market is about to test the key short-term technical resistance located at the level of 1.1167. The strong and positive momentum is supporting the short-term bullish bias.

Weekly Pivot Points:

WR3 - 1.1293

WR2 - 1.1218

WR1 - 1.1193

Weekly Pivot Pont - 1.1119

WS1 - 1.1089

WS2 - 1.1014

WS3 - 1.0984

Trading Recommendations:

The best strategy for current market conditions is to trade with the larger timeframe trend, which is down. All upward moves will be treated as local corrections in the downtrend. The downtrend is valid as long as it is terminated or the level of 1.1445 clearly violated. There is an Ending Diagonal price pattern visible on the larget timeframes that indicate a possible downtrend termination soon. The key short-term levels are technical support at the level of 1.1027 and the technical resistance at the level of 1.1250.

analytics5d637ca5cc559.jpg

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

GBP/USD: plan for the European session on August 26. The pound is gaining strength, but real growth needs real solutions,

To open long positions on GBP/USD, you need:

Last week, the British Prime Minister agreed with EU leaders on the preparation of an agreement on the border with Ireland, which will help to solve the problem of Brexit, after which the pound strengthened against the US dollar. At the moment, buyers are faced with the task of breaking and consolidating above the resistance of 1.2283, which will provide the market with new support from major players and further growth in the area of highs of 1.2334 and 1.2387, where I recommend taking the profits. If the bulls fail to cope with the resistance of 1.2283, and there are few agreements to seriously strengthen the pound, then we can consider new long positions in the short term, from the support of 1.2216, subject to a false breakdown, or rebound from a larger level of 1.2173.

To open short positions on GBP/USD, you need:

The bears will try to keep the level of 1.2283, and only the next formation of a false breakdown will allow playing the scenario of returning to the level of 1.2216, which will then lead to a decrease in GBP/USD to the area of the low of 1.2173, where I recommend taking the profit. If the pound continues to grow along with the trend above the maximum of 1.2283, it is best to open short positions after updating the resistance of 1.2334 or to rebound from a larger area of 1.2387. Any negative news on the Irish border can quickly return large GBP/USD sellers to the market.

Signals of indicators:

Moving Averages

Trading is above 30 and 50 moving averages, indicating a likely continuation of the pound's growth.

Bollinger Bands

In the case of the pound growth, the upper limit of the indicator in the area of 1.2310 will limit the upward potential. You can open long positions immediately for a rebound after the test of the lower limit of the indicator in the area of 1.2220.

analytics5d63740081d46.png

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

EUR/USD: plan for the European session on August 26. The breakthrough of the level of 1.1159 will provide new growth for

To open long positions on EURUSD, you need:

The speech of the head of the Fed led to a sharp drop in the US dollar, and now the buyers of the euro are aimed at the resistance of 1.1159, above which it was not possible to get out at the Asian session today. Good reports from the IFO for Germany can lead to a breakdown and consolidation above this level, which will open the possibility of updating the new highs in the area of 1.1189 and 1.1226, where I recommend taking the profits. If there is a downward correction in the euro, the emphasis should be shifted to the support level of 1.1119 and the formation of a false breakdown there. And if you break through this range, you can safely buy EUR/USD to rebound from a minimum of 1.1088.

To open short positions on EURUSD, you need:

Today, the G7 summit begins, so the pressure on the US dollar can be maintained further. Sellers need to prove their strength by forming a false breakdown in the resistance area of 1.1159, which will lead to a downward correction in the support area of 1.119, where I recommend taking the profits. However, the main goal of the bears will be a breakthrough of this range, which can seriously affect the plans of buyers of the euro and lead to an update of a minimum of 1.1088. If the demand for EUR/USD continues in the first half of the day after good reports from the IFO, it is best to look for short positions after updating the maximum of 1.1189, or a rebound from a larger resistance of 1.1226.

Signals of indicators:

Moving Averages

Trading is conducted above 30 and 50 moving averages, which indicates the return of euro buyers to the market.

Bollinger Bands

The growth in the first half of the day will be limited by the upper level of the indicator around 1.1189. And in the case of a major decline in the euro, you can buy a rebound from the lower border in the area of 1.1060.

analytics5d63723cabcce.png

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

GBPUSD ready to decline

analytics5d637651ca050.jpg

The pair is consolidating along with +1/8 Murrey Math level above the Super Trend Line. Previously, 8/8 MM Level has acted as support, which pushed the price higher. Also, Super Trend Lines are under a 'Bullish Cross', which has been formed after the price bounced from 6/8 MM Level. Considering that the market hasn't fixated above +1/8 MM Level, we should focus on 8/8 MM Level as a potential intraday target.

If a pullback from this level happens little later on, there'll be a moment for another advance in the direction of +1/8 MM Level. However, if the price breaks 8/8 MM Level, there'll be a green light for a deeper bearish correction, possibly towards 7/8 or even 6/8 MM Level. If Super Trend Lines develops a 'Bearish Cross', there'll be more evidence that the market has topped. In contract, lacking to fixate under Super Trend Lines will show that bulls are still in play.

The bottom line is that GBP/USD is likely topped, so we should watch 8/8 MM Level as a barometer for further price action. The price fixating below Super Trend Liens could lead to a massive decline.

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

Overview of GBP/USD on August 26th. Forecast according to the "Regression Channels". From words to deeds: blackmail the European

4-hour timeframe

analytics5d63680f3f086.png

Technical data:

The upper channel of linear regression: direction – down.

The lower channel of linear regression: direction – sideways.

The moving average (20; smoothed) – up.

CCI: 123.5659

Last week, it became clear that London and Brussels will not be able to agree amicably. The "generous" offer of Boris Johnson to the European Union to cancel any attempts to create a physical border between Ireland and Northern Ireland was expected to be rejected by Donald Tusk. And the leaders of Germany and France did not give any signals to traders that there is at least some real hope for rapprochement in the issue of orderly Brexit. Only Angela Merkel gave a ghostly hope for Brexit with the "deal", saying that the parties can still agree. However, few of the market participants took her words seriously. The fact that "the parties can agree" is clear to everyone for a long time, only they cannot agree on the fact as of August 26, 2019. Based on this, Boris Johnson, who is actively preparing for a "hard" scenario, decided to resort to the last weapon against the Alliance – blackmail. The UK may refuse to pay £39 billion, which is due to the European Union for Brexit if the "deal" is not concluded. Thus, the Kingdom will save almost $50 billion, which can be used to support the economy in the transition period. It is difficult to say whether the European Union is afraid of losing the money and whether Johnson's statement that "the UK has the right to refuse payment" is legitimate. We have not heard any comments from EU officials on this matter. But it seems that Johnson has no more trump cards against the EU, so the Brexit locomotive still carries "No deal" at full speed.

The pound rose last week against the US currency, but this growth is corrective, due only to the need for bears to rest a little. No currency can fall constantly, the pound is no exception. However, given the fact that there were no changes in the Brexit procedure, there is no reason to assume the completion of the downward trend.

Nearest support levels:

S1 – 1.2207

S2 – 1.2146

S3 – 1.2085

Resistance levels:

R1 – 1.2268

R2 – 1.2329

Trading recommendations:

The GBP/USD pair continues the not too strong upward movement. Thus, today, it is recommended to trade to increase the pair pound/dollar with targets at 1.2268 and 1.2329, in small lots, as the downward trend may resume any moment.

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

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) – 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

Overview of EUR/USD on August 26th. Forecast according to the "Regression Channels". Is the downward trend complete?

4-hour timeframe

analytics5d63648359b47.png

Technical data:

The upper channel of linear regression: direction – down.

The lower channel of linear regression: downward direction.

The moving average (20; smoothed) – sideways.

CCI: 219.4245

On August 26, the EUR/USD currency pair is above the moving average line, which gives hope for the formation of an upward trend. Friday's neutral performance of Jerome Powell in Jackson Hole caused a strong reaction from traders. Whether market participants have seen something dangerous to the US dollar, or they simply lost their nerves at the bears, or there are no more sellers below the level of 1.1050 and the euro/dollar pair broke large pending buy orders. In any case, we would like to note one important fact: if we take the period from May 27, 2018, to the present moment, that is, 15 months, then the euro fell for it by only 5 cents. That is, the loss of the euro is not so big and secondly, the euro, though cheaper, does not fall under the strong and long-term sales. The advantage of the US dollar is not so undeniable because the strengthening of the euro by 5 cents for 15 months occurred at a time when the Fed rate increased, and the US economy felt great. Now, when the Fed intends to reduce the rate in the long term, the downward trend should either weaken even more or even complete. The fulcrum can now be considered 1.1027 – the minimum of August 1. Thus, the main thing is that the fundamental background does not interfere with the planned strengthening of the euro. Because if macroeconomic statistics from overseas gain strength again, and things get worse in Europe, it will return the bears to the market. In the current situation, we would say that the probability of an upward trend beginning is 60/40.

On Monday, August 26, important reports on durable goods orders will be released in America. The technical picture involves the purchase of the euro currency until the pair returns to the area below the moving.

Nearest support levels:

S1 – 1.1108

S2 – 1.1047

S3 – 1.0986

Resistance levels:

R1 – 1.1169

R2 – 1.1230

R3 – 1.1292

Trading recommendations:

The euro/dollar pair is fixed above the moving average. Thus, we can consider the purchase of euro currency with the targets of the Murray levels of 1.1169 and 1.1230. Local adjustments – by turning the Heiken Ashi indicator down. It is recommended to return to sales not earlier than the reverse consolidation of the price below the moving average line.

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

Explanation of illustrations:

The upper linear regression channel – blue line unidirectional movement.

The lower linear regression channel – purple line unidirectional movement.

CCI – the blue line in the indicator window.

The moving average (20; smoothed) – 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

Forecast for EUR/USD on August 26, 2019

EUR/USD

After Friday's speech by Fed Chairman Jerome Powell at a symposium in Jackson Hole, President Trump said: "As usual, the Fed has done nothing." Further, Trump, relying on the law on emergency economic powers, ordered US companies to leave China. The same speech Powell's speech was verified, different in style and content from previous speeches, its essence was to ensure that the Fed is ready to act anytime, ready to answer any outside calls, but does not promise to lower the rate in September, and most importantly, it does not promise to start the cycle of lowering the rate. Our Friday forecast regarding the tone of Powell's speech turned out to be correct, he said exactly as it should be said to maintain optimistic sentiments on the dollar. But investors heard what they wanted to hear – the rate will be lowered in September and will be reduced every subsequent meeting or investors just fulfilled the planned operations. We repeat – Trump, as the spokesman for the policy not only of the White House administration, but also of the Republican Party, and the economic establishment, cannot change his attitude to the national currency almost every month – today, he needs a strong dollar, tomorrow is weak, and the day after tomorrow is strong again. Moreover, the change in the value of the dollar relative to the euro will not help the US in the trade war with China. We believe that the Republican Party is waging a war for influence in the Fed itself, which is particularly confirmed by the White House's intention to change the rotation rules of the Fed's leadership. But in the forex market, the main players are democratic banks, which is a stumbling block for Donald Trump.

Let's turn to the monthly chart. The maximum of the current month is at the level of 1.1250 – the price touched the balance line on the 6th, after which it collapsed to a minimum of Friday to 1.1052. And for the development of medium-term price growth, it is necessary to overcome this balance line – shift it towards bullish sentiment.

analytics5d635ccf86587.png

On the way to this level, there are two more obstacles in front of the price – the line of the price channel on the daily chart in the area of 1.1172 and the MACD line near the Fibo level of 100.0% in the area of 1.1210. To make such a decision, investors should have stronger foundations than the neutral speech of the Fed chairman, for example, the failed data on GDP, consumer spending and durable goods orders, which will be released this week. Today, we publish the data for durable goods orders – orders for durable goods for July – the forecast is good: 1.1%.

analytics5d635cfa08c41.png

On the daily chart, the Marlin oscillator breaks into the zone of positive values, which indicates the intention of the market to compete with technical resistance. At the moment, the situation is neutral.

analytics5d635d1a3a793.png

On the four-hour chart, the price fixed above the balance and MACD lines, Marlin in the growth zone. Well, we are waiting for the price to cope with the challenge thrown to itself.

To resume the decline in price, you need to return to the starting positions and gain a foothold at the Fibonacci level of 123.6% (1.1074).

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

Forecast for GBP/USD on August 26, 2019

GBP/USD

After overcoming the Fibonacci level of 223.6% on Thursday, the British pound continued to grow on Friday, approaching the MACD line on the daily scale chart. Today, in the Asian session, the price is slightly reduced and with it, the Marlin oscillator gave the first sign of a reversal. In the case of the price overcoming the MACD line (1.2302), growth is possible in the range of 1.2350/81 formed by the Fibonacci level of 200.0% and the low of July 17. Fixing above the range opens the way to more significant growth, to the Fibonacci level of 161.8%, it tends to the red line of the price channel (~ 1.2560).

analytics5d635ba713b27.png

On the four-hour chart, a slight divergence has formed on the Marlin oscillator, which indicates a possible delay before the probable growth in the range of 1.2350/81.

analytics5d635bd43072b.png

The first sign of a price reversal will be its departure at yesterday's low (1.2193), but for a full-fledged signal in the medium-term decline, it is necessary to fix the price under the MACD line at H4. Such a signal is likely in the area of the Fibonacci level of 238.2% on the daily chart (1.2154), to which this line tends.

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

Forecast for AUD/USD on August 26, 2019

AUD/USD

The Australian dollar did not succumb to Friday's excitement in the markets, closed the day at the opening level and today, on the failed data on the trade balance of New Zealand, it lost 65 points at the moment. The fears of the "Australian" are understandable because Australia is the closest trading partner of China, with which the US trade war has received a new intensification. The New Zealand trade balance for July amounted to -685 million dollars against the forecast of -250 million and 331 million in the previous month (revised down from 365 million).

analytics5d635abb2fa7a.png

On the daily chart, the price pierced the support of the embedded line of the red price channel (0.6720) and returned above it with the growing Marlin oscillator. This is a sign of a false movement, after which it is likely to increase to the first target of 0.6833 – the Fibonacci retracement level of 38.2%, coinciding with the low of June 18.

analytics5d635ad151de4.png

On the four-hour chart, the price fixed below the balance and MACD lines, Marlin oscillator in the declining zone. If the price manages to gain a foothold over these indicator lines, the growing potential will begin to be realized. Leaving the price below 0.6720 will show that the movement this morning was false, and the price will tend to the blue line of the price channel on the daily at 0.6657.

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

Technical analysis: Important Intraday Levels For EUR/USD, August 26, 2019

analytics5d6350949db03.jpg

When the European market opens, some economic data will be released such as German Ifo Business Climate. The US will also publish the economic data such as Durable Goods Orders m/m and Core Durable Goods Orders m/m, so amid the reports, the EUR/USD pair will move with low to medium volatility during this day. TODAY'S TECHNICAL LEVELS: Breakout BUY Level: 1.1197. Strong Resistance: 1.1191. Original Resistance: 1.1180. Inner Sell Area: 1.1169. Target Inner Area: 1.1143. Inner Buy Area: 1.1117. Original Support: 1.1106. Strong Support: 1.1095. Breakout SELL Level: 1.1089. (Disclaimer)The material has been provided by InstaForex Company - www.instaforex.com

Technical analysis: Important Intraday Levels for USD/JPY, August 26, 2019

analytics5d63501a331ac.jpg

In Asia, Japan will not release any economic data today, but the US will publish some economic data such as Durable Goods Orders m/m and Core Durable Goods Orders m/m. So there is a probability the USD/JPY pair will move with low to medium volatility during this day. TODAY'S TECHNICAL LEVELS: Resistance.3: 105.80. Resistance. 2: 105.59. Resistance. 1: 105.39. Support. 1: 105.13. Support. 2: 104.92. Support. 3: 104.72. (Disclaimer)

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

Control zones EURUSD 08/26/19

Any pair's decline will be corrective regarding Friday's growth that will allow you to search for purchase on areas of the support. The first support will be WCZ 1/4 1.1113-1.1109. The test of this zone with the formation of the "absorption" pattern on the lower timeframe will allow entering the position. The main growth target is the weekly CZ of 1.1227-1.1211.

analytics5d6369e74cbed.png

Work in the upward direction makes it possible to transfer positions to the average period, as the average course of the week is slightly above the monthly maximum.

An alternative model for the formation of the flat will be developed if the closure of the US session occurs below the WCZ 1/4. This will allow you to look for more favorable purchase prices and consider sales in order to reduce to the monthly short-term August.

analytics5d636a01ca27c.png

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

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

Monthly CZ - monthly control zone. An area that reflects the average volatility over the past year.

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

Control zones AUDUSD 08/26/19

The movement of the Asian session led to the formation of the pattern of "absorption" of the daily level. This makes it possible to consider purchases at the next volatile sessions. The defining resistance area stands WCZ 1/2 0.6764-0.6757. While the pair is trading below it, the downward momentum will remain a priority.

analytics5d6367a6ef869.png

It is important to understand that the absorption pattern was already formed at the beginning of this month below the current levels. If this model is repeated, the probability of strong growth will increase to 70%.

The alternative reversal pattern will develop if the closure of today's US session is above the level of 0.6764. This will allow us to consider medium-term purchases at tomorrow's Asian session.

analytics5d6367bfcc937.png

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

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

Monthly CZ - monthly control zone. An area that reflects the average volatility over the past year.

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

Fractal analysis of major currency pairs as of August 26

Hello, dear colleagues.

For the Euro/Dollar pair, the price forms a pronounced upward structure from August 23 and the continuation of the upward movement is expected after the breakdown of 1.1170. For the Pound/Dollar pair, we continue to monitor the development of the local upward structure from August 20 and the level of 1.2201 is the key support. For the Dollar/Franc pair, the price forms a pronounced downward structure from August 23 and the subsequent development of which is expected after the breakdown of 0.9704. For the Dollar/Yen pair, the price has issued the potential for a downward cycle of August 23 and the continuation of the downward movement is expected after the breakdown of 104.30. For the Euro/Yen pair, the continuation of the downward trend is expected after the passage of the range of 116.54 – 116.08. For the Pound/Yen pair, the range of 129.00 – 128.12 is the key support for the upward structure from August 12.

Forecast for August 26:

Analytical review of currency pairs on H1 scale:

analytics5d633805a2d25.png

For the Euro/Dollar pair, the key levels in the H1 scale are: 1.1249, 1.1205, 1.1189, 1.1170, 1.1124, 1.1107, 1.1077 and 1.1050. The price forms a pronounced structure for the top of August 23. The continuation of the upward movement is expected after the breakdown of 1.1170. In this case, the target is 1.1189 and consolidation is near this level. The passage at the price of the range of 1.1189 – 1.1205 must be accompanied by a strong upward movement. The target – 1.1249 and we expect a pullback from this level.

The short-term downward movement is possible in the area of 1.1124 – 1.1107 and the breakdown of the last value will lead to a protracted correction. The target is 1.1077 and this level is the key support for the top.

The main trend is the upward structure of August 23.

Trading recommendations:

Buy 1.1170 Take profit: 1.1189

Buy 1.1205 Take profit: 1.1245

Sell: 1.1124 Take profit: 1.1108

Sell: 1.1105 Take profit: 1.1080

analytics5d63381fe157b.png

For the Pound/Dollar pair, the key levels in the H1 scale are: 1.2362, 1.2338, 1.2293, 1.2265, 1.2224, 1.2201 and 1.2167. We continue to monitor the local upward structure from August 20. The short-term upward movement is expected in the area of 1.2265 – 1.2293 and the breakdown of the last value should be accompanied by a pronounced upward movement. The target is 1.2338. We consider the level of 1.2362 as a potential value for the top, upon reaching which, we expect consolidation, as well as a pullback to the bottom.

The short-term downward movement is expected in the range of 1.2224 – 1.2201 and the breakdown of the last value will lead to an in-depth movement. The target is 1.2167 and this level is the key support for the top.

The main trend is the local structure for the top of August 20.

Trading recommendations:

Buy: 1.2265 Take profit: 1.2290

Buy: 1.2295 Take profit: 1.2336

Sell: 1.2224 Take profit: 1.2201

Sell: 1.2198 Take profit: 1.2168

analytics5d63383e56ebe.png

For the Dollar/Franc pair, the key levels in the H1 scale are: 0.9815, 0.9777, 0.9756, 0.9704, 0.9673, 0.9650 and 0.9586. The price forms a pronounced downward structure from August 23. The continuation of the downward movement is expected after the breakdown of 0.9704. In this case, the target is 0.9673 and in the area of 0.9673 – 0.9650 is the short-term downward movement, as well as consolidation. The breakdown of the level of 0.9650 should be accompanied by a pronounced downward movement. The target – 0.9586 and we expect a pullback to the top from this level.

The short-term upward movement is possible in the area of 0.9756 – 0.9777 and the breakdown of the last value will lead to an in-depth correction. The target is 0.9815 and this level is the key support for the bottom.

The main trend is the downward structure from August 23.

Trading recommendations:

Buy: 0.9756 Take profit: 0.9775

Buy: 0.9778 Take profit: 0.9815

Sell: 0.9704 Take profit: 0.9675

Sell: 0.9672 Take profit: 0.9650

analytics5d633861e76ea.png

For the Dollar/Yen pair, the key levels in the H1 scale are: 106.75, 105.87, 105.37, 104.30, 103.87, 103.57, 102.67 and 102.04. The price forms a downward structure from August 23. The continuation of the downward movement is expected after the breakdown of 104.30. In this case, the target is 103.87 and near this level is the price consolidation. The price pass of the range of 103.87 – 103.57 will lead to a pronounced movement. The target – 102.67. We consider the level of 102.04 as a potential value for the bottom, upon reaching which, we expect consolidation, as well as a rollback to the top.

The short-term upward movement is possible in the area of 105.37 – 105.87 and the breakdown of the last value will lead to the formation of the upward structure. The potential target – 106.75.

The main trend: the formation of the downward structure of August 23.

Trading recommendations:

Buy: 105.37 Take profit: 105.85

Buy: 105.90 Take profit: 106.75

Sell: 104.30 Take profit: 103.87

Sell: 103.55 Take profit: 102.70

analytics5d63387c3a990.png

For the Canadian dollar/Dollar pair, the key levels in the H1 scale are: 1.3345, 1.3319, 1.3300, 1.3246, 1.3217, 1.3182 and 1.3158. The price forms the potential for a downward movement from August 20. The continuation of the downward movement is expected after the breakdown of 1.3246. In this case, the target is 1.3217 and near this level is the price consolidation. The breakdown of the level of 1.3217 should be accompanied by a pronounced downward movement. The target is 1.3182. We consider the level of 1.3158 as a potential value for the bottom, upon reaching which, we expect consolidation, as well as a rollback to the top.

The short-term upward movement is possible in the area of 1.3300 – 1.3319 and the breakdown of the last value will lead to the formation of the upward structure. The target – 1.3345.

The main trend is the formation of capacity for the bottom of August 20.

Trading recommendations:

Buy: 1.3300 Take profit: 1.3316

Buy: 1.3321 Take profit: 1.3345

Sell: 1.3246 Take profit: 1.3219

Sell: 1.3215 Take profit: 1.3182

analytics5d63389e243c4.png

For the Australian dollar/Dollar pair, the key levels in H1 scale are: 0.6754, 0.6737, 0.6725, 0.6699, 0.6690, 0.6671 and 0.6657. The continuation of the development of the downward movement of August 21 is expected after the price passage of the range of 0.6699 – 0.6690. In this case, the target is 0.6671. We consider the level of 0.6657 as a potential value for the bottom, upon reaching which, we expect consolidation, as well as a rollback to the top.

The short-term upward movement is possible in the area of 0.6725 – 0.6737 and the breakdown of the last value will lead to a protracted correction. The target is 0.6754 and this level is the key support for the downward structure.

The main trend is the downward structure of August 21.

Trading recommendations:

Buy: 0.6725 Take profit: 0.6735

Buy: 0.6738 Take profit: 0.6752

Sell: 0.6690 Take profit: 0.6671

Sell: 0.6669 Take profit: 0.6671

analytics5d6338be28e6d.png

For the Euro/Yen pair, the key levels in the H1 scale are: 118.13, 117.58, 117.16, 116.54, 116.08, 115.44 and 115.09. The continuation of the development of the downward structure from August 13 is expected after the breakdown of 116.54. In this case, the target is 116.08 and consolidation is near this level. The breakdown of the level of 116.04 will lead to a movement to the level of 115.44, upon reaching which, we expect a consolidated movement in the area of 115.44 – 115.09.

The short-term upward movement is expected in the area of 117.16 – 117.58 and the breakdown of the last value will lead to an in-depth correction. The target is 118.13 and this level is the key support for the downward structure.

The main trend is the downward cycle of August 13.

Trading recommendations:

Buy: 117.58 Take profit: 118.11

Buy: 118.16 Take profit: 118.70

Sell: 116.54 Take profit: 116.10

Sell: 116.04 Take profit: 115.45

analytics5d6338e0591d3.png

For the Pound/Yen pair, the key levels in the H1 scale are: 133.74, 132.73, 132.17, 131.23, 130.57, 129.00 and 128.12. We follow the development of the upward structure from August 12. The short-term upward movement is expected in the range of 130.57 – 131.23 and breakdown of the last value will lead to a pronounced upward movement. The target – 132.17 and in the area of 132.17 – 132.73 is the short-term upward movement and consolidation. We consider the level of 133.74 as a potential value for the top, upon reaching which, we expect consolidation, as well as a pullback to the bottom.

The range of 129.00 – 128.12 is the key support for the upward structure from August 12 and the breakdown of the level of 128.12 will have to develop downward movement. In this case, the first potential target – 126.48.

The main trend is the upward structure of August 12.

Trading recommendations:

Buy: 130.58 Take profit: 131.23

Buy: 131.26 Take profit: 132.17

Sell: 128.96 Take profit: 128.12

Sell: 128.10 Take profit: 126.55

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