Technical analysis recommendations for EUR / USD and GBP / USD on October 28

EUR / USD

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Over the weeks, there has been a rebound from the important resistance zone of this section 1.1146 (weekly Kijun) and 1.1185 - 1.1206 (monthly levels). In the coming days, we will close the month. It is important for the traders downside to form prerequisites for a rebound here. If the monthly candlestick has a slight upper shadow, then its bullish optimism will return the pair to the task of breaking through the encountered resistance with renewed force. On the other hand, the support and the bearish reference points now are the daily levels 1.1065 - 1.1030 - 1.0994, strengthened by the weekly short-term trend (1.1030). The attraction, in turn, is 1.1082 (weekly Fibo Kijun) and 1.1105 (upper border of the daily cloud + daily Tenkan).

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The strength of the met support in the region of 1.1082 in the current situation forms a correctional rise. The significant stages in the development of the correction are now 1.1092 (central Pivot level) and 1.1125 (weekly long-term trend). Consolidating above will change the current balance of power in the lower halves and will allow us to consider the formation of rebound from the support of the higher halves. If correction is completed, the intra-day support will be performed by the classic pivot levels 1.1061 - 1.1042 - 1.1011.

GBP / USD

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The meeting with strong resistance (1.2882 monthly Fibo Kijun + 1.3014 lower border of the weekly cloud) led to the breaking and development of the daily downward correction. At the moment, the pair met with a daily short-term trend (1.2834), which is able to provide attraction and support. Meanwhile, the transition of the short-term trend to the side of the bears will lead to continued decline, with the closest bearish reference being 1.2669 - 1.2712 (weekly Fibo Kijun + monthly Tenkan + daily Fibo Kijun).

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In the lower halves, the advantage belongs to the traders downside. If the minimum (1.2788) is updated, then the decline will continue, most likely, beyond the borders that were formed today by the classic pivot levels (1.2740 S3). Thus, we can observe the development of the upward correction after successive traders taking to increase the important resistance 1.2831 (central pivot level) and 1.2892 (weekly long-term trend). Consolidating above will allow you to consider options for exiting the daily correction zone (1.3012) and the continuation of rise to reference points of the higher halves.

Divergences of EUR / USD and GBP / USD (daily timeframe)

There are no new divergences.

Ichimoku Kinko Hyo (9.26.52), Pivot Points (classic), Moving Average (120)

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USD/JPY and its crosses - prospects for the end of October

USD / JPY

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At the oldest time intervals, the yen has been trying to stay above the lows of 2018 (104.65) and January 2019 (104.48) for the last couple of months. Consolidating below will allow you to consider quite impressive prospects for traders on the downside. For example, a bearish target for breaking through the monthly cloud (92.30). At the same time, the closest bearish reference in this case will be the accumulation of historical support in the region of 100-101, where the pair has already found a reliable support in 2016.

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Among the main goals of the traders is to increase. At the moment, it is possible to note a reliable consolidation above the monthly short-term trend (108.44), elimination of the weekly dead cross, and also 100% fulfillment of the daily target for the breakdown of the cloud (109.32). Before the traders, a fairly wide resistance zone, formed by the accumulation of strong levels of different time intervals 109.34-60 - 109.80 - 110.21 - 110.80, hangs over the increase in the current conditions. Therefore, a possible continuation of the rise is unlikely to be active and large-scale. The support that will help traders to improve their prospects and opportunities for the coming week are 108.43 (monthly Tenkan + daily Tenkan) - 107.64-74 (daily Kijun + weekly cross) - 106.90 (lower border of the daily cloud).

GBP / JPY

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The active development of the upward correction has led the pair to important lines of resistance. The breakdown of the weekly cloud (140.34 - 143.25) and the elimination of the monthly dead cross will allow us to consider new large-scale upward prospects. To maintain the benefits and opportunities for the traders to increase next week, it is advisable to optimistically close October, holding current positions or forming a minimum upper shadow. In addition, it should be noted that at the moment, disparate levels of different time intervals form a fairly wide resistance zone. This circumstance makes it difficult for traders to actively increase in the zone, and can prevent the bears from returning, because the resistance levels that was passed by will act as support.

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For the next working week, the most significant support levels can be seen at the lines of 137.82-138.01 (monthly short-term trend) and 135.30 (weekly cross + final levels of the daily gold cross). To preserve the advantages and prospects for the traders to increase, it is advisable not to go down to these levels.

EUR / JPY

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In the month of October, at the oldest time intervals, the euro / yen was mainly engaged in the development of an upward correction, which led it to important resistance lines 121.66-121.31 (monthly short-term trend + final boundaries of the weekly cross). Consolidating above will allow you to consider new opportunities and prospects - an increase in the resistance of the Ichimoku clouds (123.97 - 125.50) for weeks and a month. In addition to the upward prospects can now be attributed to the goal of a breakdown of the daily cloud (122.58 - 123.33).

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The most significant supports for the upcoming working week are the area of 120 (weekly levels + daily short-term trend) and 118.65 (weekly Tenkan + daily cloud). Consolidating below will delay the implementation of traders' plans to increase and will contribute to the formation of rebound from the resistance met in the most senior times.

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Technical analysis for the GBP/USD currency pair for the week from October 28 to November 2

Trend analysis.

This week, the price will move up with the first target of 1.3011 – the upper fractal (red dotted line). If achieved, the next target is the resistance line of 1.3114 (black bold line).

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Fig. 1 (weekly chart).

Complex analysis:

- Indicator analysis – up;

- Fibonacci levels – up;

- Volumes – up;

- Candlestick analysis – down;

- Trend analysis – up;

- Bollinger bands – up;

- Monthly chart – up.

The conclusion of the complex analysis – an upward movement.

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

The upper target of 1.3011 is the upper fractal (red dotted line). If achieved, the next target is the resistance line of 1.3114 (black bold line).

An unlikely scenario is a downward movement with a target of 1.2605 – a retracement level of 38.2% (red dotted line).

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Technical analysis for the EUR/USD currency pair for the week from October 28 to November 2

Trend analysis.

This week, the price will move up with a target of 1.121 – resistance line (red bold line). Breaking this level up will depend on the strong news that comes out on Wednesday (US interest rates) and the market will most likely try to move up from the level of 1.1077, with the first goal of 1.1179 – the upper fractal (red dotted line).

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Fig. 1 (weekly chart).

Complex analysis:

- Indicator analysis – up;

- Fibonacci levels – up;

- Volumes – up;

- Candlestick analysis – down;

- Trend analysis – up;

- Bollinger bands – up;

- Monthly chart – up.

The conclusion of the complex analysis – 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 (up to US interest rates) with the absence of the first lower shadow of the weekly white candlestick (Monday – up) and the absence of the second upper shadow (Friday – up).

The first upper target of 1.1121 is the resistance line (red bold line).

From this level, it is possible to continue the upward movement with the goal of 1.1179 – the upper fractal (red dotted line).

A possible news scenario is a downward movement with a target of 1.1063 – a pullback level of 38.2% (red dotted line).

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Trading recommendations for the GBPUSD currency pair - placement of trade orders (October 28)

At the end of the last trading week, the pound / dollar currency pair showed extremely low volatility of 53 points, which leads to a decrease in the amplitude and caution of traders. Now, we will analyze in the current article.

From the point of view of technical analysis [TA], we see that after a surge of short positions on Thursday [October 24], the market, frankly, froze, showing a low amplitude of fluctuation, but still holding a restoring interest in the market. In fact, we saw a stepwise decrease, followed by a focus within 1.2810 / 1.2840, which reflects caution and support from a near range level of 1.2770. In terms of the emotional mood of market participants, we see a clear improvement, the market ceased to concentrate on the inertial movement alone, deliberate tacts and a feeling of high overbought appeared. In turn, the market volatility is not to say that it has subsided, there are still surges, but upon a detailed examination of the last five trading days, we will see that the effect of the characteristic steps, as described above, is present, and it is expressed in a progressive movement, which is very good in terms of recovery.

Analyzing the hourly chart on Friday, we see that there were no pulses at the root, but a narrow amplitude was formed [1.2810 / 1.2840] during the American trading session.

As discussed in the previous review, speculators will fix the previously available short positions and go into the waiting stage, focusing the take-out on the primary slowdown of 1.2834 / 1.2864, with the hope of a subsequent impulse. The tactics, in this case, were according to the "Breakdown of Borders" method, where positions were open, but not all conditions coincided. They were expecting not just a breakdown of the border, but with the support of inertia, which did not happen, but as a result, they got an extension of the amplitude from 1.2834 / 1.2864 to 1.2810 / 1.2864. Moreover, positions continue to be active, having a small profit, followed by a shift in stop loss to the upper boundary zone.

Considering the trading chart in general terms [the daily period], we see that there are no cardinal changes, but there are prerequisites for recovery with respect to the inertia. However, discussion about recovery is not yet actively conducted among traders, but as soon as the quotation is fixed below the range level of 1.2770, everyone will actively talk about the process of returning short positions.

Friday's news background did not have statistics for Britain and the United States, thereby actively monitoring the news feed.

Thus, what was in terms of information flow? - expectations of clarification of the current situation, but the result is more intrigue than facts, for this reason we saw a sluggish stagnation in the trading chart.

Concretize the available information:

The EU countries have agreed to another extension of the Brexit term, but there has not yet been an official announcement of the verdict and the deadlines. It was previously planned that a decision would be made on Friday [October 25], but later the deadline was postponed to Monday. Let me remind you that earlier the opinion of the EU countries regarding the delay period differed, and it seems like France was against the delay of three months.

On the part of the United Kingdom, Prime Minister Boris Johnson's proposal for an early parliamentary election on December 12 was actively discussed, but there was criticism here as well. So, the leaders of the opposition forces of the Scottish National Party (SNP) and the Liberal Democratic Party (LD) are ready to support Johnson's plan for early parliamentary elections, provided that Brexit will be postponed until January 31, 2020.

Comments

"The SNP is ready to support the bill providing for early general elections on Monday, December 9, after the extension of Brexit's term until January 31, 2020 is ensured," the party noted.

On Sunday, the leader of the Liberal Party [Jeremy Corbyn] said that he would not support the government's bid for early elections on December 12, unless tough elections were completely ruled out and this would require not just an extension of the term of three months, but more significant guarantees.

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Today, in terms of the economic calendar, we do not have relevant statistics for the UK and the United States, thereby all the attention of market participants will be drawn to the information background. So, today [9:00 Universal time] EU diplomats will meet in Brussels to discuss a proposal for a postponement. At the same time, it is planned to vote in the British Parliament today on account of the early elections.

Further development

Analyzing the current trading chart, we see a bright slowdown with the characteristic Doji candles [H4], where the quote literally froze under an array of uncertainty and the upcoming stream of information background.

Detailing the constantly fluctuating movement, we see that the motion is invariably horizontal, with floating borders, where I would take the coordinates 1.2810 / 1.2840 relative to the current points. The full width of the swing is 1.2803 / 1.2864.

In terms of the emotional state of the market, we see that the characteristic restraint on short positions is still retained in the market, but perhaps this kind of stop will only benefit future volatility.

In turn, some speculators already have short positions at the time of Friday's pass at 1.2820. Currently, these transactions are being conducted with the movement of the Stop Loss restrictive order to the upper border zone of 1.2864. The rest of the speculators carefully analyze the existing 1.2810 / 1.2840 boundaries for local surges and further refills in existing deals.

It is possible to assume that the prolonged horizontal stagnation will already fall today, and the process of accumulation in the size of one and a half days will resume the growth of volatility. The tactic now is this: the main task is to identify the impulse, if we already have short positions, good, do not forget to place a Stop Loss restrictive order and consider alternative positions in case of an upward breakdown. If we don't have even better positions, we work both up and down, where entry points are calculated relative to Friday accumulations and the beginning of Monday.

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Based on the above information, we derive trading recommendations:

- We consider buying positions in case of price fixing higher than 1.2865. If you do not have an encumbrance in the form of having positions, then you can consider a surge of 1.2840 ---> 1.2860, after which 1.2865 fixation is higher.

- We consider selling positions in case of fixing the price lower than 1.2800 with the first point 1.2770. Further progress is considered after a clear fixation of the price lower than 1.2770.

Indicator analysis

Analyzing a different sector of timeframes (TF), we see that the indicators are multidirectional in themselves. Thus, the short-term period works exclusively at the borders of the existing accumulation, constantly changing indicators. Intraday gaps, in turn, are trying to work towards restoring a relatively early inertia while the medium term continues to work at a high inertial rate.

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Volatility per week / Measurement of volatility: Month; Quarter; Year

Measurement of volatility reflects the average daily fluctuation, calculated for the Month / Quarter / Year.

(October 28 was built taking into account the time of publication of the article)

The volatility of the current time is 39 points, which is a low indicator for this time section. It is likely to assume that the stagnation that we have under the onslaught of the information background will nevertheless fall and we will see acceleration of volatility.

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Key levels

Resistance Zones: 1.3000; 1.3170 **; 1.3300 **.

Support areas: 1.2770 **; 1.2700 *; 1.2620; 1.2580 *; 1.2500 **; 1.2350 **; 1.2205 (+/- 10p.) *; 1.2150 **; 1,2000 ***; 1.1700; 1.1475 **.

* Periodic level

** Range Level

*** The article is built on the principle of conducting a transaction, with daily adjustment

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USD / CAD - prospects for the following week

USD / CAD

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Throughout October, the Canadian currency seeks to maintain its position in the monthly cloud of Ichimoku, while the pair overcame the attraction of the weekly cloud and consolidated in the bearish zone of the relative resistance. At the moment, support for the monthly Fibo Kijun (1.3052) has been met. Overcoming the support and maintaining the current mood in the last week of October will allow us to expect a further decline. The benchmarks of which are the following monthly support 1.2864 (Kijun) - 1.2674 (Fibo Kijun) and a weekly target for the breakdown of the cloud (1.2824 - 1.2731).

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On the daily timeframe, a monthly support meeting (1.3052) led to the formation of breaking. In the case of an upward correction, the nearest benchmark will be the resistance of the daily short-term trend, which is now located at 1.3146. At the same time, it is advisable for downgrade players to limit themselves to this level to maintain their advantages and plans since consolidating above will affect the current balance of forces and will focus on the next strengthened and most significant resistance zone, concentrated in the region of 1.3200 - 1.3240-50 (daily cloud + final daytime dead cross + weekly levels).

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Analysis of EUR / USD and GBP / USD for October 26. New speech by Mario Draghi. Will it be important?

EUR / USD

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Friday, October 26, ended for the EUR / USD pair with a decline of another 25 basis points. Thus, the construction of the proposed wave b as part of a rising set of waves, originating on October 1, continues. If this is true, then the quotation of the instrument will continue to decline, however, an unsuccessful attempt to break through the 38.2% mark may lead to the completion of the construction of the proposed wave b. After that, I will expect an increase in quotes with goals located above the 12th figure.

Fundamental component:

The news background for the EUR / USD pair became absent again after Thursday last week. The consumer confidence index from the University of Michigan came out on Friday in America, which showed a slight decrease compared to September (95.5 - 96). However, this event did not have a particular impact on the activity of the currency exchange market and its dynamics. More so, nothing more interesting happened on Friday and about the same applies to Monday, October 28. Throughout the day - not a single economic report was released, only a speech by Mario Draghi late in the evening, who said a lot at the ECB press conference last week. At least, the markets clearly realized the mood of the head of the Central Bank of Europe for the three days that he had to spend at his post. Thus, it is unlikely that Draghi will make "loud" statements today.

Purchase goals:

1.1208 - 61.8% Fibonacci

1.1286 - 76.4% Fibonacci

Sales goals:

1.0879 - 0.0% Fibonacci

General conclusions and recommendations:

The euro-dollar pair continues to build a new upward set of waves and completed the construction of wave a. I recommend buying the instrument after the completion of building wave b with targets located about 12 figures and above. An unsuccessful attempt to break through the level of 1.1082 may indicate the readiness of the markets for a new increase.

GBP / USD

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On October 25, the GBP / USD pair lost about 30 basis points and fell to the level of 100.0% Fibonacci. Wave 3 or C is currently considered complete. If this is true, then the instrument will continue to decline from its current positions within either wave 4 or a new downward trend section. One way or another, we are waiting for the decline of the pound. An alternative option involves the complication of the alleged wave 3 or C, which can be identified by a successful attempt to break through the 127.2% Fibonacci level, which equates to 1.2986.

Fundamental component:

There will be an early parliamentary elections. At least, this is what the British Prime Minister Boris Johnson believes, which once again does not take too much into account the opinion of the majority of MPs who have already twice rejected his proposal for dissolution and re-election. In addition, according to Johnson, it is the deputies who are to blame for the fact that Britain will not leave the EU before October 31 and, most likely, it is unlikely to do so. The EU is discussing with might and main the terms for which Brexit will be extended, that is, it will be extended anyway. Boris Johnson proposes to hold elections on December 12, which has already puzzled by the Labor Party, who, it seems, are not against re-elections, but are clearly not in a hurry to approve this initiative. Thus, perplexity lies in the proximity to Christmas and New Year's holidays. Labor leader Jeremy Corbyn believes that the Prime Minister himself "got into a puddle" with his policy, which led to the next postponement of Brexit, and is also not going to support the idea of re-election, while the tough Brexit can still be implemented. Corbyn and his party members will be ready to discuss the re-election only after Brussels officially approves the postponement

Sales goals:

1.2191 - 0.0% Fibonacci

Purchase goals:

1.2986 - 127.2% Fibonacci

1.3202 - 161.8% Fibonacci

General conclusions and recommendations:

The pound / dollar instrument supposedly completed the construction of the upward trend section. An unsuccessful attempt to break the level of 1.2986 indicates that the instrument is ready to decline. Thus, only a successful attempt to break through the level of 1.2986 can be regarded as a complication of the alleged wave 3 or C and become the basis for new purchases of the instrument. Thus, now, I recommend looking in the direction of sales.

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Hot forecast for EUR/USD on 10/28/2019 and trading recommendation

The obvious desire of the European Central Bank to further mitigate monetary policy, a clear slowdown in economic growth in Europe, as well as the continuing uncertainty around Brexit, put pressure on the single European currency. In addition, certain forecasts are triggered by projections regarding the upcoming meeting of the Federal Open Market Committee, which are increasingly insistent that the Federal Reserve System may once again lower the refinancing rate. This time from 2.00% to 1.75%. Moreover, it was on Friday that everyone finally revised their forecasts and began to give a unanimous opinion on the outcome of the upcoming meeting. And as usual, everyone began to play on the contrary. That is, if we are waiting for a negative decision, then it is worth playing for the time being.

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Nevertheless, so far all these are just rumors and assumptions. The single European currency has good prospects for growth partly due to this. Let and limited. After all, emotions will gradually fade into the background, and rumors are already embedded in the cost of the single European currency. Moreover, data on consumer lending in Europe are published today, which should show an acceleration in the growth rate from 3.4% to 3.5%. Well, this, anyway, is a sign of growth in consumer activity, which entails the growth of retail sales along with the profits of companies. More importantly, it points to the possibility of rising inflation, which is why the European Central Bank may delay the reduction of the refinancing rate.

Consumer lending growth (Europe):

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The EUR/USD pair still did not stop and managed to hurt the key level of 1.1080, for a given period of time, where it immediately felt a foothold and entered the pullback phase. In fact, we have a recovery process from the previously worked out mirror level of 1.1180, where the quote felt resistance at the inertial movement phase and as a fact turned around. In terms of a general review of the trading chart, we no longer see just a stop, but the incipient recovery process with respect to the inertial move, but a full conversation about the return of short positions to the market will only happen after the price has consolidated below 1.1160.

It is likely to assume that having a support in the face of 1.1180 can change the status to a range level, where initially we will see a rebound in the direction of 1,1100-1,1110. After that, it is worthwhile to carefully analyze the behavior of market participants and consolidation points relative to the values of 1.1080/1.1110.

We concretize all of the above into trading signals:

- We consider long positions in the form of a local rebound towards 1.1100-1.1110. A deeper move is considered after consolidating the price higher than 1.1110.

- We consider short positions only in terms of a full-fledged move, thereby consolidating is advised when lower than 1.1160.

From the point of view of a comprehensive indicator analysis, we see that in terms of minute intervals there is a rebound, which signals purchases. Hours, working in the recovery phase, signaling sales. The medium-term outlook [daytime periods] invariably signals an upward trend due to an earlier inertial course.

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Technical analysis of ETH/USD for 28/10/2019

Crypto Industry News:

On October 26, the Standing Committee of the 13th National People's Congress in China adopted a new law governing cryptography that will come into force on January 1, 2020, according to a local CCTV news service.

According to the report, the new legal framework aims to set standards for the use of cryptography and password management. They define the role of the central cryptographic agency that is to conduct public cryptographic work, creating guidelines and policies for the industry.

The bill was published on May 7 by a Chinese news site. The text largely focuses on centralized password management by the government and does not explicitly mention cryptocurrencies, although it focuses on cryptography, a key ingredient underlying cryptocurrencies such as Bitcoin.

"The key to success is that - the development of new cryptography, hash algorithm, and even the use of technology - will be in the official legal sphere. This means that you must comply with the CCP standard for all" encrypted "behaviors that can be VERY wide, from mining for block propagation "- we read.

Technical Market Overview:

The ETH/USD pair has broken through the descending trendline and rallied through all the technical resistance levels located at $163.11, 4176.75 and $185.08. Finally, the bullish rally was capped at the level of $196.61 and a big Shooting Star candlestick pattern was made. The market has entedt a corrective cycle and as long as it trades above the level of $163.11 there is still a chance for another impulsive wave up.

Weekly Pivot Points:

WR3 - $249.74

WR2 - $225.62

WR1 - $207.85

Weekly Pivot - $177.85

WS1 - $161.54

WS2 - $131.99

WS3 - $115.01

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 28/10/2019

Crypto Industry News:

One of the popular answers to recent BItcoin increases is the official support of blockchain technology by the most influential man in the world. Chairman, Secretary-General of the Communist Party of China, Xi Jinping gave a prominent speech at 18 research on blockchain technology and its future.

During the Thursday meeting of the Politburo of the Central Committee of the Communist Party in Beijing, Xi said blockchain could contribute to the dynamic development of the Chinese Republic. Both in economic and social terms.

Xi laid out the use of blockchain in various sectors of the state, on supply chains, IoT, collective transport or poverty reduction.

"We must treat blockchain as an important breakthrough in the independent innovation of basic technologies, [...] We must clearly define the path we will follow, increase investment, focus on several key technologies and accelerate the development of blockchain technology and industrial innovation."

The president also spoke about the initiative, the "Blockchain +" platform, which is designed to actively promote the application of blockchain technology in personal life. From education, through employment, pensions, medical assistance, to safe food, social security, etc.

It should be remembered, however, that although the Secretary-General of the ruling party in China praises blockchain, cryptocurrencies have been banned there since 2017. However, the People's Bank of China, as we know, creates a digital yuan (renminbi), which we will probably see soon.

In addition, the middle state creates its own Central Bank Digital Currency (CBDC) which can be a competitor along with the digital yuan for Libra.

Technical Market Overview:

The BTC/USD pair has rallied 27% over the weekend and hit the level of $10, 278 again. The impressive rally might be the anticipated wave 1 of the new impulsive cycle to the upside. Currently, the market is in the local corrective cycle and is struggling to break through the technical resistance located at the level of $9,796. The next target for bears is seen at the level of $8,760 or even $8,474 before a new wave up will be made.

Weekly Pivot Points:

WR3 - $14,033

WR2 - $12,095

WR1 - $10,995

Weekly Pivot - $9,057

WS1 - $8,029

WS2 - $6,062

WS3 - $4,932

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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US-China trade negotiations inspired the markets again (we expect the resumption of the decline in EUR/USD and AUD/USD pairs)

The growth of positive sentiment on world markets on Friday provided significant support to the US dollar, including the general demand for risky assets and the increase in the yield of American treasuries.

The reason for such a rosy mood was the news about the progress of the "first phase" of the negotiation process between Washington and Beijing. Moreover, this was confirmed by both parties. The American trade representative described this step in the negotiations as making progress on specific issues. He also stressed that another meeting is expected in the near future.

In the wake of this news, trading on stock markets in the United States and in Europe ended in the green zone as a whole. These positive sentiments were also supported by trading in China during the Asian trading session. Therefore, investors' hopes that a new trade agreement could be signed next month led to an increase in the dollar exchange rate on the currency market to a basket of major currencies. In addition, yields on US government bonds also turned up, but the gold price jumped up on Friday morning and almost lost its entire profit-taking growth.

In general, if we pay attention to the dynamics of the yellow metal, the two-day growth in quotations was more similar to the local purchases of individual market players, since its sharp increase was not supported by a weakening of the yield of American treasuries, or a general increase in the demand for protective assets, including the Japanese yen and Swiss franc, as well as, importantly, noticeable volumes. Of course, the dynamics of gold at the moment completely depends on the general expectations of the progress market in the negotiations between the US and China, as well as the position of the Fed regarding the future level of interest rates. Thus, we believe that if some negative factor doesn't collapse again, gold quotes can smoothly adjust to the lower boundary of a wide range of 1476.80-1510.00, but for this to happen, they should technically decline below the psychological level of 1500.00.

We highlight the Fed meeting on monetary policy as one of the most important events this week. The key interest rate is supposed to be lowered by 0.25%, but at the same time, the regulator, represented by its leader J. Powell, can make it clear that there will be a pause in the further reduction in rates. Against this background, we can expect a local strengthening of the position of the US dollar.

Forecast of the day:

The EUR/USD pair is slightly correcting upwards after a noticeable fall on Friday. The price may increase to the level of 1.1100. If it does not overcome it, there is a possibility for the price to turn down to 1.1060.

The AUD/USD pair remains under pressure amid expectations of a decline in RBA interest rates. It can be assumed that if the pair falls below the level of 0.6810, it will continue to fall to 0.6800, and then to 0.6775.

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Technical analysis of GBP/USD for 28/10/2019

Technical Market Overview:

The GBP/USD pair is being locked in a narrow horizontal range located between the levels of 1.2783 - 1.2865. The volatility gets very limited and market prticipants await a breakout in any direction. Despite the neutral momentum, the bears are getting more active and try to push the prices lower towards the next technical support located at the level of 1.2783. The key technical support is still located at the level of 1.2561. The larger timeframe trend remains bearish.

Weekly Pivot Points:

WR3 - 1.3149

WR2 - 1.3068

WR1 - 1.2923

Weekly Pivot - 1.2842

WS1 - 1.2710

WS2 - 1.2624

WS3 - 1.2478

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 1.3000 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 28/10/2019

Technical Market Overview:

The EUR/USD pair is currently testing the lower ascending channel boundary located around the level of 1.1075. This level is the technical support for the bulls as well, so any violation of this level will open the road towards the next technical support locates at the level of 1.1024. The volatility has slightly increased and the bearish activity is more visible. The market is still trading inside of the channel, the momentum is now slightly negative, but there is still a chance for another leg up after the correction is completed.

Weekly Pivot Points:

WR3 - 1.1242

WR2 - 1.1207

WR1 - 1.1134

Weekly Pivot - 1.1103

WS1 - 1.1028

WS2 - 1.0992

WS3 - 1.0922

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 1.0999 and the technical resistance at the level of 1.1267.

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Elliott wave analysis of GBP/JPY for October 28 - 2019

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GBP/JPY has been trading in a very narrow range between 139.26 - 139.53. It is likely gathering energy for a break below short-term important support at 138.68. If it happens, it confirms that a dip closer to our ideal corrective target at 135.67 is developing and the next impulsive rally towards 144.98 and much higher is expected.

Only a direct break above minor resistance at 140.74 will indicate that a new corrective low has been seen and the next impulsive rally is developing.

R3: 141.51

R2: 141.12

R1: 140.74

Pivot: 140.21

S1: 139.26

S2: 139.07

S3: 138.60

Trading recommendation:

We will buy GBP at 135.75 or upon a break above 140.74

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Elliott wave analysis of EUR/JPY for October 28 - 2019

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EUR/JPY has barely been moving since the last trading day. It is trapped in a very narrow trading-rage between 120.31 - 120.59. However, we think that it is likely to move for a final dip to our ideal target seen at 119.87 from where EUR/JPY can turn back up as a new impulsive rally towards 124.64 and 129.50 as the next targets.

A direct break above minor resistance at 120.80 will indicate that the early correction has completed and the next impulsive rally is already developing.

R3: 121.47

R2: 121.30

R1: 120.80

Pivot: 120.60

S1: 120.36

S2: 119.87

S3: 119.53

Trading recommendation:

We are long EUR from 117.25 with our stop placed at 119.00. If you are not long EUR yet, Then buy near 119.87 or upon a break above 120.80.

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GBP/USD: plan for the European session on October 28. The pound is waiting for important news on the grant of deferment of

To open long positions on GBP/USD you need:

The main delay will be granted until January 2020, but with the condition that the UK may leave the EU earlier if it approves the exit deal. This is very good news for pound buyers, as it increases the chance of signing an agreement in the House of Commons. Bulls still need to return to a resistance of 1.2860 today, which will be a signal to open long positions capable of updating highs 1.2943 and 1.3012, where I recommend profit taking. If pressure on the pound remains in the first half of the day, then only the formation of a false breakout in the support area of 1.2807 will be a signal to open long positions. Otherwise, it is best to buy GBP/USD for a rebound from a low of 1.2757 or even lower, in the area of 1.2664.

To open short positions on GBP/USD you need:

So far, France is the only one against the provision of such a double delay, but I think they will be able to agree with it. The pound could sharply rise with positive news, so I do not recommend rushing to short positions in the pair. The formation of a false breakout in the resistance area of 1.2860 will be the first signal to open short positions with the aim of breaking the support of 1.2807, which was formed last Friday. However, a further goal will be the level of 1.2757, and the main task of sellers will be to return to a low of 1.2664, where I recommend profit taking. In the event of positive news from the EU, and a breakthrough of resistance at 1.2860, it is best to consider short positions in GBP/USD from larger highs around 1.2943 and 1.3012.

Signals of indicators:

Moving averages

Trading is carried out below 30 and 50 moving averages, which indicates a possible continuation of the downward correction.

Bollinger bands

Volatility has greatly decreased, which so far does not provide signals for 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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EUR/USD: plan for the European session on October 28. The euro will remain in the channel until Mario Draghi's speech. Bulls

To open long positions on EURUSD you need:

Despite Friday's weak fundamental data on the US economy, there are clearly more problems in the eurozone than it seemed before. Against this background, the euro continues to decline against the US dollar. Today, the bulls can count on a breakthrough and consolidation above the resistance level of 1.1095, and only under this condition will the pair be able to return to the high of 1.1120, where I recommend profit taking. If the data on lending in the eurozone disappoint traders, only the formation of a false breakout in the support area of 1.1066 will be a signal for purchases. Otherwise, it is best to open long positions on a rebound from a low of 1.1026. Today, the EU will vote on the postponement of the UK, which may also provide good support for EUR/USD in the short term.

To open short positions on EURUSD you need:

Euro sellers will concentrate on the evening speech of the European Central Bank President, Mario Draghi, and only on his comments will they return to the market. A false breakout in the resistance area of 1.1095 will be the first signal to open short positions in EUR/USD, the aim of which will be to support 1.1066. However, only consolidation below this level will it be possible for the bears to more confidently continue their downward correction to a low of 1.1026, where I recommend profit taking. With good news from the EU on granting a reprieve to the UK, bulls could break above the resistance of 1.1095. In this case, it is best to return to short positions on the rebound from the larger highs of 1.1120 and 1.1149.

Signals of indicators:

Moving averages

Trading is carried out below 30 and 50 moving average, which indicates the preservation of the bearish momentum.

Bollinger bands

If the euro rises in the morning, the upper boundary of the indicator in the area of 1.1110 will act as resistance. A break of the lower boundary at 1.1066 will put new pressure on the pair.

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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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Technical analysis: Important Intraday Levels For EUR/USD, October 28, 2019

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When the European market opens, some economic data will be released such as Private Loans y/y, M3 Money Supply y/y, and German Import Prices m/m. The US will also publish the economic data such as Prelim Wholesale Inventories m/m and Goods Trade Balance, 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: 1.1135. Strong Resistance: 1.1129. Original Resistance: 1.1118. Inner Sell Area: 1.1107. Target Inner Area: 1.1181. Inner Buy Area: 1.1055. Original Support: 1.1044. Strong Support: 1.1033. Breakout SELL Level: 1.1027. (Disclaimer)The material has been provided by InstaForex Company - www.instaforex.com

Technical analysis: Important Intraday Levels for USD/JPY, October 28, 2019

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In Asia, Japan will release the SPPI y/y and the US will also publish some economic data such as Prelim Wholesale Inventories m/m and Goods Trade Balance. 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: 109.34. Resistance. 2: 109.13. Resistance. 1: 108.91. Support. 1: 108.66. Support. 2: 108.45. Support. 3: 108.23. (Disclaimer)The material has been provided by InstaForex Company - www.instaforex.com

Forecast for EUR/USD on October 28, 2019

EUR/USD

The euro fell by 24 points last Friday, finding the resistance of the price channel at the peak of the day quite strong. The downward movement stopped exactly at the Fibonacci level of 123.6%. Now the immediate goal of the euro is to support the MACD line at around 1.1025. The Marlin oscillator is dropping steeply enough to form a reversal peak.

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On the four-hour chart, Friday's top coincided with the MACD line, which further strengthened the resistance. Leaving the price under the first target level opens the second target of 1.0985 - the Fibonacci level of 138.2%.

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Forecast for GBP/USD on October 28, 2019

GBP/USD

On Friday, the British pound stopped in a decline at the Fibonacci level of 110.0%, probably accumulating strength to achieve lower goals - the signal line of the Marlin oscillator is declining quite confidently. Today, Parliament votes on early elections on December 12. Parliament's decision will depend on Boris Johnson's agreements with Labor leader Jeremy Corbyn on the condition that he doesn't leave the EU without a deal. We expect a downward reaction from the markets in case of positive changes, as all optimism has been thrown out a week before today.

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On a four-hour chart, the price has consolidated below the indicator lines, the Marlin oscillator is in the decline zone. We are waiting for the price to consolidate below the Fibonacci level of 123.6% (1.2744).

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Forecast for USD/JPY on October 28, 2019

USD/JPY

The situation for the yen has not changed over the past Friday, as quotes were in a narrow range of the previous day. This morning, the price came even closer to the resistance of the price channel (108.86), overcoming which, raises the chances that the dollar will reach 109.70, even without looking at the divergence on the Marlin oscillator that has not yet been broken.

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On a four-hour chart, the price went above the blue indicator line of MACD, the signal line of the Marlin oscillator consolidated in the positive trend zone. We are waiting for the dollar to rise to 109.76.

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Fractal analysis of the main currency pairs for October 28

Forecast for October 28:

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: 1.1138, 1.1119, 1.1103, 1.1083, 1.1068, 1.1049, 1.1038 and 1.1013. Here, the continuation of the development of the downward cycle of October 21 is expected after the breakdown of the level of 1.1068. In this case, the goal is 1.1049. Price consolidation is in the range of 1.1049 - 1.1038 . For the potential value for the bottom, we consider the level of 1.1013. Upon reaching which, we expect a pullback to the top.

Short-term upward movement is expected in the range 1.1103 - 1.1119. The breakdown of the last value will lead to an in-depth correction. Here, the goal is 1.1138. This level is a key support for the downward structure.

The main trend is the descending structure of October 21.

Trading recommendations:

Buy: 1.1104 Take profit: 1.1117

Buy: 1.1120 Take profit: 1.1137

Sell: 1.1068 Take profit: 1.1050

Sell: 1.1037 Take profit: 1.1014

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For the pound / dollar pair, the key levels on the H1 scale are: 1.3215, 1.3141, 1.3033, 1.2939, 1.2810, 1.2734 and 1.2625. Here, we are following the development of the upward cycle of October 9. At the moment, the price has expressed a pronounced potential for the downward movement of October 21. The continuation of the movement to the top is expected after the breakdown of the level of 1.2959. In this case, the first target is 1.3035. The breakdown of the level of 1.3035 will lead to a pronounced upward movement. Here, the potential target is 1.3141. Price consolidation is in the range of 1.3141 - 1.3215.

We expect consolidated movement in the range of 1.2877 - 1.2810. The breakdown of the last value will lead to an in-depth correction. Here, the target is 1.2715. This level is a key support for the top. Its breakdown will lead to the formation of potential for the downward cycle. Here, the goal is 1.2625.

The main trend is the ascending structure of October 9, the formation of the descending structure of October 21.

Trading recommendations:

Buy: 1.2960 Take profit: 1.3031

Buy: 1.3035 Take profit: 1.3140

Sell: 1.2808 Take profit: 1.2717

Sell: 1.2713 Take profit: 1.2627

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For the dollar / franc pair, the key levels on the H1 scale are: 0.9999, 0.9976, 0.9963, 0.9940, 0.9929 and 0.9909. Here, we are following the development of the ascending structure of October 18. Short-term upward movement, we expect in the range 0.9963 - 0.9976. The breakdown of the last value will lead to a pronounced movement. Here, the target is a potential target - 0.9999, when this value is reached, we expect a pullback to the bottom.

Short-term downward movement is possibly in the range of 0.9940 - 0.9929. The breakdown of the last value will lead to an in-depth correction. Here, the goal is 0.9909. This level is a key support for the upward structure.

The main trend is the upward structure of October 18.

Trading recommendations:

Buy : 0.9963 Take profit: 0.9974

Buy : 0.9978 Take profit: 0.9999

Sell: 0.9940 Take profit: 0.9931

Sell: 0.9927 Take profit: 0.9912

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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.

Main trend: local structure for the top of October 23.

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: 1.3160, 1.3128, 1.3101, 1.3036 and 1.2989. Here, we are following the development of the downward trend of October 10. The continuation of movement to the bottom is expected after the breakdown of the level of 1.3036. In this case, the target is the potential target 1.2989. Upon reaching this level, we expect a pullback to the top.

Short-term upward movement is possibly in the range of 1.3101 - 1.3128. The breakdown of the latter value will lead to an in-depth correction. Here, the target is 1.3160. This level is a key support for the downward structure.

The main trend is the downward cycle of October 10.

Trading recommendations:

Buy: 1.3101 Take profit: 1.3126

Buy : 1.3130 Take profit: 1.3160

Sell: Take profit:

Sell: 1.3034 Take profit: 1.3000

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For the Australian dollar / US dollar pair, the key levels on the H1 scale are : 0.6933, 0.6901, 0.6886, 0.6856, 0.6836, 0.6794, 0.6781, 0.6752 and 0.6722. Here, we are following the descending structure of October 22. At the moment, we expect to reach the level of 0.6794. Price consolidation is in the range of 0.6794 - 0.6781. The breakdown of the level of 0.6780 will lead to a pronounced movement. Here, the target is 0.6752. Price consolidation is near this level, and there is also a high probability of a rollback to the top. For the potential value for the bottom, we consider the level of 0.6722. Upon reaching which, we expect a departure in the correction.

Short-term upward movement is possibly in the range of 0.6836 - 0.6856. The breakdown of the latter value will favor the formation of an ascending structure. Here, the potential target is 0.6886.

The main trend is the descending structure of October 22.

Trading recommendations:

Buy: 0.6836 Take profit: 0.6854

Buy: 0.6858 Take profit: 0.6886

Sell : 0.6780 Take profit : 0.6752

Sell: 0.6750 Take profit: 0.6724

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For the euro / yen pair, the key levels on the H1 scale are: 121.95, 121.79, 121.34, 121.03, 120.61, 120.28, 119.92 and 119.64. Here, the price has entered an equilibrium state and forms the potential for the downward movement of October 21. Short-term upward movement is expected in the range 121.03 - 121.34. The breakdown of the level of 121.35 should be accompanied by a pronounced upward movement. Here, the target is 121.79. Price consolidation is in the range of 121.79 - 121.95. From here, we expect a correction.

We expect consolidated movement in the range of 120.61 - 120.28. The breakdown of the last value will lead to an in-depth correction. Here, the goal is 119.92. This level is a key support for the top. Its passage at the price will lead to the formation of initial conditions for the downward cycle. In this case, the first goal is 119.64.

The main trend is the upward structure of October 15 and the formation of potential for the bottom of October 21.

Trading recommendations:

Buy: 121.05 Take profit: 121.34

Buy: 121.36 Take profit: 121.76

Sell: 120.25 Take profit: 119.94

Sell: 119.90 Take profit: 119.66

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For the pound / yen pair, the key levels on the H1 scale are : 142.82, 141.23, 139.53, 138.70, 137.79 and 137.08. Here, the price has entered an equilibrium state and currently forms a potential for the bottom of October 21. The continuation of movement to the top is expected after the breakdown of the level of 141.23. In this case, the potential target is 142.82. Upon reaching which, we expect consolidation, as well as a pullback to the bottom.

Short-term downward movement, as well as consolidation, are possible in the range of 139.53 - 138.70. The breakdown of the last value will lead to a long correction. Here, the target is 137.79. The range of 137.79 - 137.08 is the key support for the top.

The main trend is the medium-term upward structure of October 8, the formation of potential for the downward movement of October 21.

Trading recommendations:

Buy: Take profit:

Buy: 141.25 Take profit: 142.80

Sell: 139.50 Take profit: 138.75

Sell: 138.65 Take profit: 137.80

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