Indicator analysis. Daily review on October 15, 2019 for the EUR / USD currency pair

Trend analysis (Fig. 1).

On Tuesday, the main upper target is breaking through the upper fractal - 1.1064 (yellow dashed line). News coming out at 10.00 London time may affect this situation, but in any case, after working out the news, the upward movement will continue. In case of luck, it is possible to continue moving up with the target 1.1111 - the upper fractal (blue dashed line).

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Fig. 1 (daily chart).

Comprehensive analysis:

- indicator analysis - up;

- Fibonacci levels - up;

- volumes - up;

- candlestick analysis - down;

- trend analysis - up;

- Bollinger Lines - up;

- weekly schedule - up.

General conclusion:

On Tuesday, an upward movement is possible.

The first upper target of 1.1064 is the upper fractal (yellow dashed line).

In case of breaking up, the next target of 1.1111 is the upper fractal (blue dashed line).

An unlikely scenario is lower work with the target of 1.0994 - a pullback level of 38.2% (yellow dashed line).

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GBP/USD: plan for the European session on October 15. The pound rose on rumors that a number of opponents of the Brexit deal

To open long positions on GBP/USD you need:

After yesterday's downward correction to the area of major support at 1.2533, to which I repeatedly paid attention and from which I recommended to open long positions, the pound resumed its growth. The strengthening was also helped by the news that some members of the Conservative party of Great Britain, especially opponents of Brexit, can change their decision if the plan proposed by Boris Johnson takes into account the interests of all parties. Pound buyers now need to stay above the support of 1.2585, and the formation of a false breakdown there will be an additional signal to open long positions. A more important goal of the bulls will be the resistance of 1.2639, a break which will provide GBP/USD with new purchases, which will lead the pair to the area of highs 1.2673 and 1.2705, where I recommend profit taking. With a downward correction to the level of 1.2585, you can also return to long positions to rebound from the lows of 1.2533 and 1.2480.

To open short positions on GBP/USD you need:

Opening short positions in the pound in the current conditions would not be the right decision, as any Brexit news could trigger a new wave of growth. Only unsuccessful consolidation and the formation of a false breakout in the morning in the resistance area of 1.2673 will be a signal to sell GBP/USD with the short-term goal of decreasing to the support area of 1.2585, where I recommend profit taking. When breaking through the high of last week, it is best to consider new short positions for a rebound from the resistance of 1.2741 and 1.2781. If the bears manage to return to the support of 1.2585, after the release of weak reports on the UK labor market, the possibility of pulling down GBP/USD to yesterday's major support in the area of 1.2533 is not ruled out.

Signals of indicators:

Moving averages

Trading is above 30 and 50 moving averages, which indicates the maintenance of a bullish trend.

Bollinger bands

In case the pound declines, support will be provided by the lower boundary of the indicator in the area of 1.2533. Growth will be limited by the upper level at 1.2639.

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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 October 15. Buyers need to urgently return 1.1035, otherwise the pressure on the

To open long positions on EURUSD you need:

Market volatility was very low yesterday due to Columbus Day. Therefore, no changes have occurred from a technical point of view. Today, the calculation will be on the data on the index of moods in the business environment of Germany and the eurozone from the ZEW Institute. In case of weak reports, it is best to open long positions in EUR/USD after a downward correction to support at 1.1008, or immediately to rebound from a larger low of 1.0975. However, the main task of the bulls will be to return to the resistance of 1.1035, above which the pair will try to update last week's highs in the area of 1.1061, where I recommend profit taking.

To open short positions on EURUSD you need:

The main objective of the bears will be the return of EUR/USD to the support of 1.1008, and the breakdown of this level will put new pressure on the euro, which will push the pair to a low of 1.0975, where I recommend profit taking. However, everything will depend on fundamental data for Germany and the eurozone. Failure to consolidate above the resistance level of 1.1035, as it was yesterday in the morning after the release of reports, will also be a kind of signal to sell EUR/USD. Short positions can be opened immediately on the rebound from a high of 1.1061, however, the direction in the pair will depend on further negotiations between the United States and China.

Signals of indicators:

Moving averages

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

Bollinger bands

Volatility is very low, which does not provide signals on entering the market.

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Description of indicators

  • MA (moving average) 50 days - yellow
  • MA (moving average) 30 days - green
  • MACD: Fast EMA 12, Slow EMA 26, SMA 9
  • Bollinger Bands 20
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Elliott wave analysis of GBP/JPY for October 15 - 2019

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We have seen the expected correction lower, but only to a low of 135.47 (just above our ideal target at 135.15). The dip to 135.47 could be enough and GBP/JPY could be ready to engage in the next rally higher towards 137.83 on the way to 139.15.

Support is now seen at 136.21 and then at 135.47 before 135.15.

R3: 138.79

R2: 138.38

R1: 137.83

Pivot: 137.22

S1: 136.21

S2: 135.47

S3: 135.15

Trading recommendation:

We are long GBP from 131.25 with our stop placed at 133.55

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Elliott wave analysis of EUR/JPY for October 15 - 2019

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After a dip to 119.17 (just above our ideal target at 119.01) EUR/JPY could be ready to engage in the next part of this impulsive rally higher towards 121.93. On the way higher we will see resistance at 120.55 and then 121.14 before the ideal target at 121.93.

Short-term support is seen at 119.17 and then at 119.01.

R3: 121.93

R2: 121.14

R1: 120.55

Pivot: 120.00

S1: 119.45

S2: 119.17

S3: 119.01

Trading recommendation:

We are long EUR from 117.25 with our stop placed at 118.00

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Technical analysis: Important intraday Level For EUR/USD, October 15,2019

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When the European market opens, such economic data as ZEW Economic Sentiment, German ZEW Economic Sentiment, and French Final CPI m/m will be released. The US will publish such economic data as Federal Budget Balance and Empire State Manufacturing Index.So, amid the reports, EUR/USD will move in a low to medium volatility during this day. TODAY'S TECHNICAL LEVEL: Breakout BUY Level: 1.1080. Strong Resistance:1.1074. Original Resistance: 1.1063. Inner Sell Area: 1.1052. Target Inner Area: 1.1026. Inner Buy Area: 1.1000. Original Support: 1.0989. Strong Support: 1.0978. Breakout SELL Level: 1.0972. (Disclaimer)The material has been provided by InstaForex Company - www.instaforex.com

Technical analysis: Important intraday level for USD/JPY, October 15,2019

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Today Japan will release such economic data as the Tertiary Industry Activity m/m and Revised Industrial Production m/m while the US will publish some such economic data as Federal Budget Balance and Empire State Manufacturing Index. 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. 3:108.97. Resistance. 2:108.76. Resistance. 1:108.55. Support. 1:108.28. Support. 2:108.07. Support. 3:107.86. (Disclaimer)

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Technical analysis of ETH/USD for 15/10/2019

Crypto Industry News:

The G7 Group has released a report in which it states that "global stablecoins" pose a threat to the global financial system. The drafts G7 report presented various types of risk associated with digital currencies. It was also stated that even if companies belonging to the Libra Association that manage regulatory issues may not obtain the consent of the necessary regulatory bodies, stating:

"The G7 group believes that no stablecoin project should start operations until legal, regulatory and supervisory challenges and risks are properly addressed. [...] The solution to such threats does not necessarily guarantee that the regulatory authority will accept the adaptation of stablecoin".

G7 also states that global stablecoins with fast scaling potential can stifle competition and threaten financial stability if users lose confidence in the coin. The report will supposedly be presented to finance ministers at the annual meeting of the International Monetary Fund this week.

Technical market overview:

The ETH/USD pair is still trading inside of the parallel ascending channel. On its way down, the bulls have bounced three times from the technical support located at the level of $176.98 which was very close to the short-term trendline support as well. So far the bounce was rather shallow, but the bounce itself is a clue that the bulls are still defending the lower prices and are willing to push the market higher. The key technical resistance is still located at the level of $196.61 and only a clear and dynamic breakout higher will open the road towards the next target at $202.70 and $215.73.

Weekly Pivot Points:

WR3 - $223.04

WR2 - $209.75

WR1 - $194.13

Weekly Pivot - $180.64

WS1 - $164.92

WS2 - $151.12

WS3 - $135.26

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 still being treated as a counter-trend correction inside of the uptrend. When the wave 2 corrective cycles are completed, the market might will ready for another impulsive wave up of a higher degree and uptrend continuation.

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Technical analysis of BTC/USD for 15/10/2019

Crypto Industry News:

Recent data from the GlassNode portal clearly show that the number of Bitcoin (BTC) addresses with balances of over 1000 BTC (USD 8.3 million) is increasing at the same pace this year as before 2014.

The growing balance of bitcoin wallets indicates a repetition of history, when the growth rate in this area, in the early BTC years, showed a similar impetus, and fresh appetite for rich bitcoin balances at much higher prices than five years ago speaks to richer people who boldly enter into cryptocurrency space.

It turns out that people who could then generate wallets with a capacity of not less than 1000 BTC just out of curiosity, today they do it solely for financial reasons, so we are probably experiencing a new bitcoin renaissance, this time fueled by the inflow of capital from investors with high net worth, while the first was from technology enthusiasts who were charging the network.

The desire to have BTC increased when altcoins did not succeed in 2019, essentially maintaining an uninterrupted bear market from the peak in 2017. At the same time, BTC had to become more promising for investors and breeders, achieving an increase of over 200% from the beginning of the year.

1000 BTC is currently worth over 8.3 million dollars. At the same time, we observe a smaller desire to have a comprehensive BTC unit. People are starting to enjoy bitcoin divisibility, also collecting larger or smaller parts of it.

Technical market overview:

The BTC/USD pair has reversed towards the technical support located at the level of $8,048 and it has been hovering around this level for some time now. This level is around the middle of the horizontal trading range located between the levels of $8,760 - $7,700, so the price in now back to the range again. The momentum is flat and so is the price action at the beginning of the new trading week as the global investors await a clear breakout in either direction. Please notice the larger timeframe trend remains bullish.

Weekly Pivot Points:

WR3 - $9,781

WR2 - $9,248

WR1 - $8,711

Weekly Pivot - $8,198

WS1 - $7,675

WS2 - $7,127

WS3 - $6,590

Trading recommendations:

Due to the short-term impulsive scenario invalidation, 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 still being treated as a counter-trend correction inside of the uptrend. When the wave 2 corrective cycles are completed, the market might will ready for another impulsive wave up of a higher degree and uptrend continuation.

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Technical analysis of GBP/USD for 15/10/2019

Technical market overview:

After a recent 500 pips rally to the level of 1.2705, the GBP/USD market is now in the corrective pull-back cycle and the bears are testing the level of technical resistance at 1.2649 in the overbought market conditions. Nevertheless, the immediate technical support is seen at the level of 1.2580 - 1.2561 zone, so as long as the price is trading above this zone, the chances for another leg up are high. The momentum remains strong and positive, but to reverse the higher timeframe trend the bulls must break through the level of 1.2907.

Weekly Pivot Points:

WR3 - 1.3395

WR2 - 1.3032

WR1 - 1.2877

Weekly Pivot - 1.2532

WS1 - 1.2380

WS2 - 1.2032

WS3 - 1.1859

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 1.2907 and it must be clearly violated. The key long-term technical support is seen at the level of 1.2231 - 1.2224 and the key long-term technical resistance is located at the level of 1.3509. As long as the price is trading below this level, the downtrend continues towards the level of 1.1957 and below.

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Technical analysis of EUR/USD for 15/10/2019

Technical market overview:

After making the new local high at the level of 1.1062, the EUR/USD pair pulled back to the nearest technical support located at the level of 1.1013 and is currently consolidating around it. Despite the overbought market conditions, the momentum is still strong and positive, so there is still a chance for another upwards move towards the next key technical resistance zone located between the levels of 1.1075 - 1. 1091 and even a possibility of an attack on the swing high at 1.1109. The immediate support is located at the level of 1.0999. Please remember, that the higher timeframe trend is still bearish.

Weekly Pivot Points:

WR3 - 1.1211

WR2 - 1.1133

WR1 - 1.1093

Weekly Pivot - 1.1014

WS1 - 1.0971

WS2 - 1.0893

WS3 - 1.0849

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 1.0926 and the technical resistance at the level of 1.1267.

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Forecast for EUR/USD on October 15, 2019

EUR/USD

Trading on the market was calm on Monday, as oil set the tone, having fallen in price by 2.55% (WTI) and also slightly pressured counter-dollar currencies. The euro declined by 11 points - on the daily chart, the MACD indicator line exerted pressure, and the balance line supported from below. The Marlin oscillator in a growing trend zone.

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On the four-hour chart, the divergence on the oscillator is formed, but the price stably stays above the balance line, which creates the likelihood of a double divergence, and if it forms, then the chance of a price reversal will increase. Euro growth is possible by 1.1074 - the Fibonacci level of 123.6% on daily, and if the divergence takes the classically correct form, the price output above the MACD line on the daily scale may turn out to be false.

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Departure of the price under the range of 1.0985-1.1000 can immediately develop a downward movement. The first target will be the low of September 12 and 3, 1.0926.

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USD/CAD. Loonie in anticipation of an important test

The Canadian dollar paired with the US currency significantly appreciated last week, gaining nearly 200 points - the USD/CAD pair tumbled two days from the middle of the 33rd almost to the bottom of the 31st figure. This week there was a price pullback, but overall, the pair still retains bearish potential. Tomorrow, October 16, the loonie can resume its downward impulse - it all depends on the dynamics of September inflation in Canada.

The reason for the rise in the Canadian dollar last week was not only the results of US-Chinese trade negotiations. Data on the labor market of Canada, which was surprisingly strong, became a catalyst for the loonie's fall. Contrary to neutral forecasts, the unemployment rate fell to 5.5%. The increase in the number of employees was also pleasantly surprising: this indicator exceeded the forecast values five times (!), reaching 53 thousand, instead of the forecasted 11 thousand.

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Although this dynamics was largely achieved due to the relatively unstable sector of our own businesses (self-employment) and public service, this increase was mainly due to the increase in the number of full-time employees (+70 thousand), while partial employment decreased by 16 thousand . This is certainly a positive signal, including for inflation indicators, since regular positions require a higher level of salaries and a level of social protection. By the way, the growth rate of wages accelerated to 4.3% against the previous value of 3.8%, signaling a strengthening of the wage scale: the average hourly rate increased by 2.6% from $27.66 to $28.13.

This was an important release for the Canadian dollar, which has recently been under pressure from the downward dynamics of the oil market, amid a slowdown in the growth of the national economy. Canada's GDP growth data, which was published in early October, again returned concerns about further actions by the Canadian central bank. The indicator came out in the "red zone", not justifying the forecasts of most analysts: on a monthly basis, the indicator was at zero level (with a weak forecast of growth to 0.1%), while in annual terms it dropped to 1.3% (with the forecast growth up to 1.4%). Such weak dynamics discouraged USD/CAD traders, as the previous macro indicators showed a contradictory result, and the Bank of Canada maintained a wait-and-see position.

Only two meetings of the Canadian regulator remained before the end of the year: one of them will be held on October 30, the last on December 4. According to some analysts, at the October meeting, the central bank may take a softer position, up to the announcement of a rate cut in December. Strong data on the labor market offset concern about this, but this scenario cannot be ruled out. That is why tomorrow's data on inflation in Canada play such a big role for the loonie: against the backdrop of uncertainty about the prospects for a trade war, as well as amid conflicting statistics, these figures will help tip the scales in one direction or another.

Judging by preliminary forecasts, tomorrow we will not see any distinct and confident breakthrough. The general consumer price index (in monthly terms) may go deeper into the negative area: after falling to -0.1% in August, analysts expect it at -0.3% in September. In annual terms, the indicator, on the contrary, can demonstrate positive dynamics, rising to the level of 2.1% (after the first time since May this year it fell below the 2% target). As for core inflation, a mixed picture is also expected here: on a monthly basis, the core CPI should grow from -0.1% to zero, and in annual terms, remain at the level of August, that is, at around 1.9%.

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As you can see, the forecast is rather weak. For USD/CAD bears, it is important that the real numbers turn out to be better than expectations in all respects: only in this case will the Canadian dollar be able to resume its path to the 30th figure. Otherwise, the price will return to the range of 1.3270-1.3350, in which the pair traded for almost two weeks, in early October.

Also, do not forget that the Canadian dollar is guided by the dynamics of the oil market. At the end of last week, the price of December futures for Brent brand rose to $60 per barrel, and WTI by - to $54 per barrel. This dynamic was driven by an attack on an Iranian tanker, just 60 miles off the coast of Saudi Arabia. Today we are seeing a price pullback - oil quotes show a downward trend, and this fact has an indirect negative effect on the Canadian dollar.

But in general, the USD/CAD pair will soon be guided by macroeconomic reports - both the United States and Canada. In this context, tomorrow's data on the growth of Canadian inflation occupies a leading role.

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Forecast for GBP/USD on October 15, 2019

GBP/USD

Yesterday, the British pound was down 136 points at the moment, but 161.8% (1.2548) reflected from the Fibonacci level upwards and tried again to touch the Fibonacci level of 138.2%. The attempt failed, but today it can be repeated due to the inertia of the market. Possible continued growth to the level of 123.6% at the price of 1.2744.

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There are still no technical prerequisites for growth at the current moment - on the daily and four-hour scales, the signal line of the Marlin oscillator is decreasing (even on the hourly chart this line is in the negative zone). There is a risk of a price reversal as another attempt to consolidate at 1.2548 with the development of 1.2478 - supporting the embedded price channel line on a daily basis. But there are no preliminary signals for moving down.

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Forecast for AUD/USD on October 15, 2019

AUD/USD

So, as it has now become clear, the Australian dollar in the fight against the strong resistance zone on the daily chart, only touched the red line of the price channel and fell to the current moment under all available technical lines. Now for the price, they have again become resistances. The Marlin oscillator on the daily chart almost lies on the boundary with the territory of the "bears", fixing the line in this negative zone will develop a downward movement to support the red price channel in the area of 0.6633.

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On the H4 chart, the Marlin line was already embedded in the negative zone yesterday, while a more confident attempt can be made today. The purpose of the movement is the MACD line at around 0.6735. A correction is possible from it. By fixing the price under this line, we are waiting for the development of a full-fledged decline to this specific goal.

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Fractal analysis of the main currency pairs for October 15

Forecast for October 5:

Analytical review of currency pairs on the scale of H1:

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For the euro / dollar pair, the key levels on the H1 scale are: 1.1091, 1.1069, 1.1058, 1.1039, 1.1000, 1.0986, 1.0966 and 1.0939. Here, we continue to consider the local ascending structure of October 8 as a reference. The continuation of the movement to the top is expected after the breakdown of the level of 1.1039. In this case, the target is 1.1058. Price consolidation is in the range of 1.1058 - 1.1069. We consider the level of 1.1091 to be a potential value for the top; upon reaching this level, we expect a pullback to the bottom.

Short-term downward movement is possibly in the range 1.1000 - 1.0986. The breakdown of the last value will lead to a long correction. Here, the target is 1.0966. This level is a key support for the top. Its passage at the price will lead to the development of a downward movement. In this case, the target is 1.0939.

The main trend is the medium-term upward structure from October 1, the local structure from October 8.

Trading recommendations:

Buy: 1.1040 Take profit: 1.1058

Buy 1.1070 Take profit: 1.1090

Sell: 1.1000 Take profit: 1.0987

Sell: 1.0984 Take profit: 1.0966

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For the pound / dollar pair, the key levels on the H1 scale are: 1.2906, 1.2850, 1.2748, 1.2678, 1.2573, 1.2525 and 1.2447. Here, we are following the development of the upward cycle of October 9. The continuation of the movement to the top is expected after the breakdown of the level of 1.2678. In this case, the target is 1.2748. Price consolidation is near this level. The breakdown of the level of 1.2750 should be accompanied by a pronounced upward movement to the level of 1.2850. For the potential value for the top, we consider the level of 1.2906. Upon reaching which, we expect consolidation, as well as a pullback to the bottom.

Short-term downward movement is expected in the range of 1.2573 - 1.2525. The breakdown of the last value will lead to an in-depth correction. Here, the target is 1.2447. This level is a key support for the top.

The main trend is the upward structure of October 9.

Trading recommendations:

Buy: 1.2678 Take profit: 1.2744

Buy: 1.2750 Take profit: 1.2850

Sell: 1.2573 Take profit: 1.2527

Sell: 1.2523 Take profit: 1.2450

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For the dollar / franc pair, the key levels on the H1 scale are: 1.0054, 1.0033, 1.0018, 0.9999, 0.9950, 0.9934, 0.9892 and 0.9872. Here, the price registered a small potential for the top of October 10. The development of this structure is expected after the breakdown of the level of 0.9999. In this case, the target is -1.0018. Price consolidation is in the range of 1.0018 - 1.0033. For the potential value for the top, we consider the level of 1.0054. Upon reaching which, we expect a pullback to the bottom.

Short-term downward movement, as well as consolidation, are possible in the range of 0.9950 - 0.9934. The breakdown of the latter value will favor the development of a downward structure from October 3. In this case, the first goal is 0.9892.

The main trend is the descending structure of October 3, the formation of potential for the top of October 10.

Trading recommendations:

Buy : 0.9999 Take profit: 1.0018

Buy : 1.0035 Take profit: 1.0054

Sell: 0.9950 Take profit: 0.9936

Sell: 0.9931 Take profit: 0.9894

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For the dollar / yen pair, the key levels on the scale are : 109.66, 109.33, 108.90, 108.72, 108.24, 108.02 and 107.67. Here, we are following the development of the upward cycle of October 4. Short-term upward movement is expected in the range 108.72 - 108.90. The breakdown of the latter value will lead to a movement to the level of 109.33. Price consolidation is near this level. For the potential value for the top, we consider the level of 109.66. Upon reaching this level, we expect a consolidated movement, as well as a pullback to the bottom.

Short-term downward movement is expected in the range of 108.24 - 108.02. The breakdown of the last value will lead to an in-depth correction. Here, the goal is 107.67. This level is a key support for the top.

The main trend: the upward cycle of October 4.

Trading recommendations:

Buy: 108.90 Take profit: 109.30

Buy : 109.34 Take profit: 109.65

Sell: 108.24 Take profit: 108.03

Sell: 108.00 Take profit: 107.70

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For the Canadian dollar / US dollar pair, the key levels on the H1 scale are: 1.3251, 1.3223, 1.3209, 1.3177, 1.3158, 1.3142 and 1.3107. Here, we are following the development of the downward cycle of October 10. The continuation of movement to the bottom is expected after the breakdown of the level of 1.3177. In this case, the target is 1.3158. Price consolidation is in the range of 1.3158 - 1.3142. For the potential value for the bottom, we consider the level of 1.3107. The movement to which is expected after the breakdown of the level of 1.3140.

Short-term upward movement is possibly in the range of 1.3209 - 1.3223. The breakdown of the latter value will lead to the formation of initial conditions for the upward cycle. In this case, the first potential target is 1.3279.

The main trend is the downward cycle of October 10.

Trading recommendations:

Buy: 1.3226 Take profit: 1.3250

Buy : 1.3253 Take profit: 1.3276

Sell: 1.3177 Take profit: 1.3158

Sell: 1.3140 Take profit: 1.3110

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For the Australian dollar / US dollar pair, the key levels on the H1 scale are : 0.6890, 0.6868, 0.6838, 0.6815, 0.6782, 0.6772 and 0.6751. Here, we are following the development of the upward cycle of October 2. The continuation of the movement to the top is expected after the breakdown of the level of 0.6815. In this case, the target is 0.6838. Price consolidation is near this level. The breakdown of the level of 0.6840 should be accompanied by a pronounced upward movement. Here, the target is 0.6868. Price consolidation is near this level. For the potential value for the top, we consider the level of 0.6890. Upon reaching which, we expect a pullback to the bottom.

Consolidated movement is possibly in the range of 0.6772 - 0.6751. The breakdown of the latter value will lead to the development of a downward potential of October 11. In this case, the first target is 0.6710. Price consolidation is near this level.

The main trend is the upward structure of October 2, the formation of potential for the downward movement of October 11.

Trading recommendations:

Buy: 0.6815 Take profit: 0.6836

Buy: 0.6840 Take profit: 0.6866

Sell : Take profit :

Sell: 0.6746 Take profit: 0.6710

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For the euro / yen pair, the key levels on the H1 scale are: 120.80, 120.22, 119.93, 119.43, 119.16, 118.75 and 118.54. Here, we are following the development of the upward cycle of October 4. At the moment, the price is near the limit values and, mainly, we expect the movement to correction. Short-term upward movement is possibly in the range of 119.93 - 120.22. The breakdown of the latter value will allow you to count on the movement to a potential target - 120.80, but we consider the movement to this level as unstable.

Short-term downward movement is possibly in the range of 119.43 - 119.16. The breakdown of the last value will lead to an in-depth correction. Here, the target is 118.75. The range 118.75 - 118.54 is a key support for the top.

Trading recommendations:

Buy: 119.95 Take profit: 120.20

Buy: 120.25 Take profit: 120.80

Sell: 119.40 Take profit: 119.16

Sell: 119.14 Take profit: 118.80

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For the Pound / Yen pair, the key levels on the H1 scale are : 141.05, 140.17, 138.71, 137.79, 136.20, 135.47 and 134.55. Here, we are following the development of the upward cycle of October 8. The continuation of the movement to the top is expected after the breakdown of the level of 137.80. In this case, the target is 138.71. Price consolidation is near this level. The breakdown of the level of 138.71 will lead to the development of pronounced movement. In this case, the goal is 140.17. For the potential value for the top, we consider the level of 141.05. Upon reaching which, we expect consolidation, as well as a pullback to the bottom.

Short-term downward movement is possibly in the range of 136.20 - 135.47. The breakdown of the last value will lead to a long correction. Here, the target is 134.55. This level is a key support for the top.

The main trend is the medium-term upward structure of October 8.

Trading recommendations:

Buy: 137.80 Take profit: 138.70

Buy: 138.75 Take profit: 140.10

Sell: 136.20 Take profit: 135.50

Sell: 135.45 Take profit: 134.55

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

#USDX vs EUR / USD vs GBP / USD vs USD / JPY - H4. Comprehensive analysis of movement options from October 15, 2019 APLs

Waking in a dream and in reality - what will happen next to the development of the movement of currency instruments in #USDX, EUR / USD, GBP / USD and USD / JPY (H4) from October 15, 2019? - A comprehensive analysis of movement options.

Minuette (H4 time frame)

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US dollar Index

The movement of #USDX from October 15, 2019 will continue to be determined by the development and the direction of the breakdown of the boundaries of the equilibrium zone (98.45 - 98.65 - 98.85) of the Minuette operational scale fork. The details are shown in the animated chart.

The breakdown of the upper boundary of ISL38.2 (resistance level 98.85) of the Minuette operational scale fork will determine the development of the movement of the dollar index in the 1/2 channel Median Line (98.85 - 99.00 - 99.20) of the Minuette operational scale fork with the prospect of reaching the 1/2 Median Line Minuette channel (99.35 - 99.52 - 99.67).

On the contrary, if the lower boundary of ISL61.8 (support level 98.45) is broken down, the equilibrium zone of the Minuette operational scale fork is the option of continuing the downward movement #USDX to the equilibrium zone (98.30 - 98.00 - 97.65) of the Minuette operational scale.

The details of the movement of #USDX are presented in the animated chart.

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Euro vs US dollar

The single European currency will continue to develop movement within the 1/2 Median Line channel (1.1075 - 1.1035 - 1.0990) of the Minuette operational scale fork. The breakdown direction of which will determine the further development of the EUR / USD movement from October 15, 2019. The markup of movement inside the 1/2 Median Line channel are shown in the animated chart.

The breakdown of the lower boundary of the 1/2 Median Line channel (support level 1.0990) of the Minuette operational scale fork - the development of the downward movement of the single European currency can be continued towards the goals - to the boundaries of the 1/2 Median Line channel (1.0980 - 1.0955 - 1.0930)of the Minuette operational scale fork with the prospect of reaching a minimum of 1.0879.

On the contrary, the breakdown of the upper boundary of the 1/2 Median Line channel (resistance level 1.1075) of the Minuette operational scale fork will make it relevant to continue the development of the upward movement of EUR / USD to the targets - the upper boundary of the ISL61.8 (1.1110 - local maximum) equilibrium zone of the Minuette operational scale fork - the lower boundary of the ISL38.2 (1.1175) equilibrium zone of the Minuette operational scale fork.

The movement details of EUR / USD are shown in the animated chart.

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Great Britain Pound vs US Dollar

The movement of Her Majesty's GBP / USD currency from October 15, 2019 will depend on the development and direction of the breakdown of the boundaries of the equilibrium zone (1.2550 - 1.2620 - 1.2705) of the Minuette operational scale fork. Look at the animated chart for details. .

The breakdown of the lower boundary ISL38.2 (support level 1.2550) of the equilibrium zone of the Minuette operational scale fork - further development of the GBP / USD movement will begin to occur in the 1/2 Median Line Minuette channel (1.2550 - 1.2490 - 1.2430), and with a combined breakdown the lower boundary (1.2430) of this channel and the lower boundary of the ISL38.2 (1.2400) equilibrium zone of the Minuette operational scale fork - the downward movement of this currency instrument will be directed to the targets - the initial line SSL Minuette (1.2310) - the control line LTL Minuette (1.2245) with the prospect of reaching the 1/2 Median Line Minuette channel (1.2330 - 1.2140 - 1.2060).

On the contrary, the breakdown of the upper boundary of ISL61.8 (resistance level 1.2750) of the equilibrium zone of the Minuette operational scale fork, followed by breakdown of the final Schiff Line Minuette (1.2745) determine the option of continuing the upward movement of Her Majesty's currency to the final line of the FSL Minuette (1.2985).

The details of the GBP / USD movement can be seen in the animated chart.

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US dollar vs Japanese yen

As in the previous case, the movement of the USD / JPY currency of the country of the rising sun from October 15, 2019 will depend on the development and direction of the breakdown of the boundaries of the equilibrium zone (108.00 - 108.25 - 108.50) of the Minuette operational scale. The details are shown in the animated chart.

The breakdown of the upper boundary of ISL61.8 (resistance level 108.50) of the equilibrium zone of the Minuette operational scale fork with the subsequent update of the local maximum (108.64) - continuation of the development of the upward movement USD / JPY to the final line of the FSL Minuette (109.40) and FSL Minuette (109.50) operational scale fork.

On the contrary, the breakdown of the support level of 108.00 on the lower boundary of the equilibrium zone of the Minuette operational scale fork - the downward movement of the currency of the country of the rising sun can continue to the final Schiff Line Minuette (107.80) and the boundaries of the equilibrium zone (107.60 - 107.05 - 106.45) of the Minuette operating scale.

We look at the details of the USD / JPY movement in the animated chart.

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The review is made without taking into account the news background. Thus, the opening of trading sessions of the main financial centers does not serve as a guide to action (placing orders "sell" or "buy").

The formula for calculating the dollar index :

USDX = 50.14348112 * USDEUR0.576 * USDJPY0.136 * USDGBP0.119 * USDCAD0.091 * USDSEK0.042 * USDCHF0.036.

where the power coefficients correspond to the weights of the currencies in the basket:

Euro - 57.6% ;

Yen - 13.6% ;

Pound Sterling - 11.9% ;

Canadian dollar - 9.1%;

Swedish Krona - 4.2%;

Swiss franc - 3.6%.

The first coefficient in the formula leads the index to 100 at the start date of the countdown - March 1973, when the main currencies began to be freely quoted relative to each other.

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

USD/CAD - Heading downwards

Greetings, dear traders. This time, I will show you a long-term recommendation on an instrument such as USD / CAD.

What is interesting in this instrument now? First of all, the data on unemployment from Canada came out last Friday. Typically, these reports come out simultaneously with American Non-farm (NFP), but this time, the publication was separate. With this impulse, the Canadian dollar strengthened strongly against the US dollar, completely absorbing the abnormal growth a week earlier. At the moment, this indicates a very strong seller in the market.

Since the plan is long-term, its implementation can take from several days to several weeks. Thus, it makes sense to wait for a rollback and consider selling on smaller TFs.

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It's important to understand that a lot of data will be released on Wednesday, such as the base index of retail sales for the American dollar and inflation for the Canadian one. Moreover, regular oil reserves will also affect the Canadian dollar. What is more reasonable here would be to expect the continuation of decline precisely after the release of all these news on Wednesday.

I wish you success in trading and big profits!

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

GBP/USD. Steep turns: the pound is too sensitive to rumors around Brexit

The pound continues to show fighting abilities: despite a significant decrease at the opening of the trading week, the sterling was able not only to regain lost positions, but also to update the daily high, returning to the framework of the 26th figure. The GBP/USD pair demonstrates strong volatility for the third day in a row, which is due to a contradictory fundamental background regarding the prospects of the "divorce proceedings" of Britain and the EU. Today's price fluctuations have served as an additional confirmation of one obvious fact: Brexit can instantly raise the British currency to multi-month highs and return it to the levels of multi-year lows with the same speed. Every day, the volatility of the pair will only increase: after all, in just a few days, a summit of the European Union countries will be held in Brussels, at which the fate of the historical transaction will be decided.

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In general, today's GBP/USD price fluctuations should be seen in the context of the events of the past week. Following talks between Boris Johnson and Leo Varadkar, the parties issued an unexpectedly optimistic statement. The Irish prime minister said that his British counterpart made him a "quite interesting proposal" that could lead to a deal before October 31. According to the British press, Johnson suggested that Varadkar conclude a truncated free trade deal, which, firstly, avoids the "hard" Brexit, and secondly, will become the basis for a wider agreement that can be concluded later, before the end of the transition period . At the moment, there are not enough details of the truncated deal. It is known that the proposed free trade agreement between Britain and the EU is likely to cancel all tariffs on imported and exported goods. At the same time, Johnson still insists on introducing a regime of "translucent" border in any of its execution (in particular, we are talking about customs checks). But apparently, these points of the deal belong to the category of to be discussed and adjusted.

In other words, Johnson and Vardakar took a serious step towards resolving the main Brexit problem. For the first time in the entire negotiation process, the British initiative was supported by the Irish prime minister. If he becomes an ally of London at the EU summit, then the chances of concluding a deal (even if in a truncated version) will increase in many ways. But in any case, now the prospects of Brexit depend on the position of the leadership of the European Union and in the future - on the position of deputies of the British Parliament. After the first emotions came to naught, traders had quite reasonable doubts that these puzzles would eventually form a single picture.

In particular, today Irish Foreign Minister Simon Coveney stated that, despite certain positive shifts, "the parties are still far from concluding a deal." Then there was information that the EU representatives had tightened their position in the negotiations: according to them, the EU now expects "more concessions along the Irish border," adding that the deal is unlikely to take place this week (the EU summit starts on October 17) . In addition, according to an insider from the Reuters news agency, the EU leadership doubts that Johnson is able to conduct a coordinated (updated) deal through the millstones of the House of Commons - at least in its current composition, where the prime minister does not have "his" majority.

Actually, some members of the British Parliament have already expressed their skepticism regarding the prospects for approving the deal. In particular, the leader of the Democratic Unionist Party, Arlene Foster, said that her political force would not support proposals that would actually "trap" Northern Ireland into the trap of the European Union. According to her, Belfast should not remain within the framework of a single market or the customs union while the rest of the country leaves the regulatory orbit of the EU. In other words, the unionists, who in this composition of the British Parliament are temporary allies of the Conservatives, have already declared their negative position regarding the Johnson's deal. Representatives of several other political forces expressed a similar opinion - however, they expressed their personal opinion, and not the position of the represented parties.

What, then, is the secret to the "stress resistance" of the British currency, if Johnson, in fact, can follow the path of Theresa May? In my opinion, this is due to several reasons.

Firstly, the likelihood of the implementation of a hard Brexit has in any case decreased: even if deputies in the House of Commons fail the Johnson-proposed deal, the prime minister will most likely ask Brussels to postpone Brexit until the beginning of the year (whereas the EU has already expressed their willingness to postpone it until next summer ) Given the current ratings of Conservatives, Johnson may initiate early parliamentary elections by trying to form an independent majority in Parliament. In this case, the agreed draft deal will be agreed in the House of Commons without any problems. Theresa May once took a similar step, but was defeated: she not only did not strengthen her position in Parliament, but also lost the majority (after which the Conservatives entered into a forced alliance with the DUP). After the arrival of Johnson, Tory ratings went up, so the current prime minister can take advantage of this.

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In addition, the throne speech of Queen Elizabeth II provided some support for the pound. Opening a new session of Parliament today, she stated that the British government's priority is the implementation of Brexit by October 31 this year - "based on new partnerships based on the principles of free trade and good neighborly cooperation." Although the Cabinet of Ministers is preparing this speech, rhetoric in favor of "good neighborliness" provided additional support for the British currency.

Thus, in the near future, the pound will be subject to increased volatility throughout the market, including paired with the dollar. It is difficult to predict the direction of price movement: everything will depend on the rhetoric of key political players in Britain. If the likelihood of a "soft" Brexit or prolongation of the negotiation process grows, the GBP/USD pair may jump to the next resistance level - 1.2850 (the upper line of the Bollinger Bands indicator on the weekly chart). Otherwise, the pair will return to the area of the 24th figure.

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

Gold is unlikely to "sit out" in a narrow range, hiding behind the safe haven status

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As a rule, yellow precious metals rapidly rise in price during periods of increased market volatility. One such case occurred last week, when a 1.5% drop in US stock indices was accompanied by a 1% jump in gold. However, the cost of precious metals often returns to about the same levels from where it began to grow, as soon as the markets begin to discharge after periods of heightened fears.

The status of a defensive asset implies the use of gold as a safe haven where investors can wait out the storm in the financial markets. At the same time, the precious metal reacts to the incoming information, sharply adding to the price on the same news about the escalation of trade tension and decreasing in response to an increase in the chances of a US-China trade deal.

Gold is now trading near $1,500 per ounce, that is, quotes, having clearly lost their craving for growth, returned to where they were two months ago. According to analysts, this partly deprives gold of the status of a safe haven asset, completely giving it to the power of market storms. However, precious metals have significantly increased in price since the beginning of the year, and this is only partially due to trade conflicts. Gold is also aided in growing by the change in the direction of the monetary policy of leading central banks, and this relationship already puts precious metals on one side with the stock markets.

Gold and the S&P 500 received an impressive boost for growth in June, when the Federal Reserve saw a reduction in interest rates. The easing of monetary policy increases the attractiveness of precious metals and stocks as opposed to debt markets, where rates in the summer reached multi-year lows.

Another source of long-term growth for gold is the acceleration of inflation, which is a consequence of the policy of lowering interest rates. Inflation is undermining the purchasing power of the US dollar, which plays in favor of precious metals and stocks.

It should be recalled that the large-scale rally of gold in recent years was associated not so much with the collapse of the markets of 2007–2008 as with the period of the end of 2008–2011. Then it became clear that the global financial system had survived, and the central banks managed to flood the "fire" with massive injections of liquidity. Precious metal has tripled in price over this time (to levels above $1,920). In the case of a repeat of this scenario, gold may well rise in price to $3,000 per ounce. However, the reverse side of this connection is the fact that precious metals are vulnerable to decline if global politicians are able to regain confidence in the markets. Then the issue of normalizing monetary policy may return to the agenda, and this could already result in a drop in quotations to the $1,300 area by the end of the first quarter of 2020.

Thus, gold is unlikely to be able to "sit out" in a narrow trading range, hiding behind the status of a safe haven asset.

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

QE program - a mine for the dollar and a chance for the euro?

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At the end of last week, the market was excited by the decision of the US Federal Reserve. According to the regulator, from October 15, that is, from tomorrow, it will begin to buy short-term Treasury bonds worth $ 60 billion per month. Many experts believe that the implementation of this strategy will lead to a weakening of the US currency.

The urgency of the situation is given by the statement of the Federal Reserve that this measure is not a quantitative easing program (QE). A number of analysts do not agree with this, since all signs point to the opposite. It is expected that operations will last until the end of the second quarter of 2020, and their total volume will be $ 510 billion. At the same time, the Fed intends to reinvest in treasury bonds the proceeds from mortgage-backed securities that it keeps on its balance sheet. According to experts, this will add an additional $ 20 billion per month to purchases.

As a result, the following picture emerges: the regulator will monthly "pump" the market with liquidity of $ 80 billion, of which $ 60 billion is a direct cash issue. Experts call this process "patching the holes" liquidity. They are sure that the essence of this strategy is the launch of a printing press, since the market constantly needs a dollar supply. On the other hand, currency experts at Goldman Sachs, the largest bank, believe that in connection with the gigantic US government debt placements worth about a trillion dollars, an extension of QE should be expected annually. The repurchase of bonds may continue until at least the end of 2022, the bank said.

According to experts, the actions of the Federal Reserve were aimed at weakening the American currency. Some analysts believe that the de facto regulator follows the wishes of U.S. President Donald Trump, who called on the Fed to devalue the national currency and lower interest rates to zero back in May 2019.

Most currency strategists are confident that the Fed's current policy, which is similar to QE and is not considered to be such, carries significant risks for the US currency. Such a "non-QE" may become a time bomb for the US dollar, and the blast waves from this process will hurt the US economy, experts say. Although, there is an opposite opinion that the new QE can beneficially affect all financial assets.

However, a strong dollar also carries risks for the global economy. First, in addition to the protracted US trade conflict with China, it threatens the development of a currency war with other states. Secondly, the further strengthening of the American currency provokes harsh criticism of the Fed from the administration of Donald Trump and undermines the confidence of the markets in the Central Bank. Thirdly, a strong dollar can destabilize emerging markets with large differences in exchange rates. After analyzing the current state of affairs, the Fed decided to take a course on the weakening of the national currency, analysts summarize.

Many market participants are confident that the fall of the dollar will inevitably lead to the strengthening of other world currencies. Experts warn against this error, urging to carefully analyze the situation in the financial market. When considering the EUR / USD pair, it turns out that the weakening of the American currency does not always lead to a strengthening of the European one. For example, to further strengthen the euro, sustained growth in the European economy and a strong regulator position are required. However, a month ago, the ECB lowered the rate to a new historic low (-0.5%), while launching a quantitative easing program worth 20 billion euros per month. The problems of Europe are complicated by geopolitics, in particular the issue of the "hard" Brexit, which is becoming more and more real. This could hit both the British pound and the euro, analysts emphasize.

Currently, experts recorded the strengthening of the "European" to a three-week high in the pair EUR / USD. This was facilitated by an increase in appetite for risky assets. At the moment, the pair is trading in the range of 1.1034–1.1036. An hour earlier, the values did not exceed 1.1020–1.1023. Experts are sure that the key level for the EUR / USD pair will be the value of 1.1050. The breakdown of this level suggests a further increase to 1.1160. Taking into account current factors, experts expect the EUR / USD pair to recover, where the euro plays the role of the "first violin". Another short-term goal after taking the level of 1.1160 may be a record level of 1.1300, analysts summarize.

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The market is waiting for change, but so far has little faith in it

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The market was enthusiastic about reports that the next round of trade negotiations between Washington and Beijing was a positive one and culminated in an interim agreement. However, soon euphoria gave way to cautious optimism, since the parties are still far from concluding a final agreement.

China pledged to increase purchases of agricultural products from the United States to $50 billion. This is almost 2.5 times more than before the trade conflict between the two largest economies in the world. In turn, the White House has not yet begun to raise tariffs from 25% to 30% on Chinese goods worth $250 billion.

Although Donald Trump failed to accelerate the US economy to the promised 3%, he is quite capable of improving the state of US foreign trade. The country's deficit in trade with China is gradually decreasing, and the growth of agricultural exports from the United States to China will only contribute to this. At the same time, about $360 billion of Chinese imports are still under US duties. Washington does not say anything about the cancellation of the planned increase in tariffs for goods from China worth $160 billion planned for December 15, as well as about the extension of the grace period for American sellers of components for the Chinese technological giant Huawei.

However, Beijing managed to gain time. It will take at least several weeks to bring to mind the interim agreement signed in October. Focus will then shift to the meeting between Donald Trump and Xi Jinping on the sidelines of the APEC summit in Chile (November 16-17). And there and before the presidential elections of 2020 in the United States at hand. If they are won by a representative of the Democrats, then China's position could seriously change.

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Considering that Washington and Beijing concluded a truce in the trade war, there have been some shifts in the negotiations between Britain and the EU regarding Brexit, and the Fed announced the purchase of treasury bills by $60 billion per month until the end of the second quarter of next year to increase the balance, it would seem bulls on EUR/USD had to easily overcome the resistance levels at 1.1045 and 1.1065. However, this did not happen, which primarily indicates the internal weakness of the single European currency. Tomorrow, the IMF may publish disappointing forecasts for global GDP, and at the end of the week, China with upset weak data on the country's economic growth in the third quarter. In this case, the demand for defensive assets will increase, which will create serious difficulties for the continuation of the main currency pair's upward movement. Support for the "bulls" on EUR/USD can have positive news on Brexit and the disappointing release on US retail sales for September.

GBP/USD was unable to develop last week's active growth and plunged to 1.2550 from the highest levels reached on Friday since late June.

As it turned out, it's too early to rejoice at the successful completion of Brexit. Even if the UK Prime Minister Boris Johnson manages to agree on the conditions for the country to leave the alliance with the EU, the deal will still have to be approved by the local Parliament. Recall that the last four times rejected the "divorce" agreement proposed by the previous head of the British Cabinet Theresa May. Negotiations between Great Britain and Ireland have not yet ended. In addition, a summit of the European Council on Brexit will be held this week on Thursday and Friday. Each of these steps can slow down the process of concluding an agreement between London and Brussels or even become an insurmountable obstacle in its path. In this case, the EU can provide the UK with a new deferral of Brexit until the summer of 2020.

While some analysts believe that the above difficulties can cause the pound to fall to $1.22, others expect it to strengthen to $1.28, believing that a major breakthrough in the Brexit negotiations, not to mention the signing of the agreement, will lead to pushing the British currency to cosmic heights.

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

GBP/USD. October 14. Results of the day. Queen of Great Britain confirms desire to leave the EU on October 31

4-hour timeframe

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Amplitude of the last 5 days (high-low): 49p - 107p - 93p - 264p - 298p.

Average volatility over the past 5 days: 162p (high).

If you do not know the fact that Queen Elizabeth II of Great Britain is very far from politics, as well as from the real approval or rejection of any political decisions of her government, then you might think that the fate of Brexit has already been decided. After all, the Queen of Great Britain herself at her 65th throne speech at the opening of the next session of the Parliament said that the priority is to leave the EU on October 31. However, during Boris Johnson's reign of the UK, traders have already figured out many political nuances and now many people already know that the Queen usually fulfills all the requests of her prime minister. It was at the request of the prime minister that the Queen approved the prorogation of the work of Parliament, which was later declared illegal by the Supreme Court. Thus, the fact that Queen Elizabeth II declared the priority of leaving the EU on October 31, in fact, does not mean anything. In addition, Elizabeth II noted that her government wants to build a new system of relations with the European Union, built on the principles of mutually beneficial cooperation and free trade. No new information regarding Brexit was received on Monday, October 14th. And this is alarming. Either the parties are working tirelessly on drafting a new deal and they do not have time to distribute interviews, or negotiations are no longer being conducted (or are being conducted for show), as the parties understand that in 4 days they will come to an agreement to which they could not reach in a few years, unrealistic. One way or another, but the EU summit will still be held on October 17-18, and in theory we are waiting for Boris Johnson to ask Brussels for another postponement. It is difficult to say how such a step would affect his political career. We have repeatedly listed all the defeats of Johnson as prime minister, but the list of his victories is short. Now, if Johnson asks to postpone Brexit, it will mean that his words "it is better to die in a ditch than to ask for a Brexit delay" were just words, and the prime minister does not value his own word too much. We also recall that in addition to colorful and artistic phrases and epithets, the prime minister has repeatedly stated that he will not ask the European Union to postpone Brexit.

In the meantime, the pound began to adjust against a two-day rally up, during which it managed to rise by almost 5 cents. From our point of view, this growth was completely unjustified, but it already has a place to be, so now we are waiting for a downward correction to the Kijun-sen line, but we assume that under certain circumstances the pound may even continue to grow. These circumstances are very simple: the deal with the European Union until October 19, Parliament gives the go-ahead on October 19 and the UK leaves the EU according to a "soft" scenario on October 31. What is the probability of the execution of this option, you decide, dear traders.

By the way, tomorrow, in the UK, quite important macroeconomic data on the average wage for August, as well as on the unemployment rate, will be published. However, we believe that traders will ignore these reports, as they are now completely and completely absorbed in the Brexit theme.

Trading recommendations:

The GBP/USD currency pair has started a downward correction. Thus, we recommend now to wait until the correction is completed in order to be able to resume trading on the rise, however, we warn that this week high pound/dollar volatility is possible, as well as sharp and frequent reversals.

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

Explanation of the illustration:

Ichimoku indicator:

Tenkan-sen is the red line.

Kijun-sen is the blue line.

Senkou Span A - light brown dotted line.

Senkou Span B - light purple dashed line.

Chikou Span - green line.

Bollinger Bands Indicator:

3 yellow lines.

MACD indicator:

Red line and bar graph with white bars in the indicator window.

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