GBP/USD: plan for the European session on April 28. COT reports indicate clear advantage for pound sellers. Bears are counting

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

The British pound made another attempt at growth yesterday as a continuation of Friday's upward correction, but faced problems in the resistance area of 1.2451. The Commitment of Traders (COT) reports for April 21 showed that there are clear changes that indicate the bears return to take control of the market, or at least an attempt to do so. There are fewer people willing to buy the pound, even at current prices. According to the data, during the reporting week, there was an increase in short non-commercial positions from the level of 27,055 to the level of 30,907, while long non-commercial positions decreased from the level of 30,287 to 29,527. As a result, the non-commercial net position turned negative and crossed the zero line, from the level of 3,232 to -1380, which indicates a tipping point and a real resumption of the downward trend for the pound in the short term. As for the intraday situation, the inability of buyers to continue growing above the resistance of 1.2451 yesterday could lead to a larger sell-off of the pound today. The bulls need to keep the pair above the support of 1.2399, and forming a false breakout there will be a signal to open long positions while expecting a repeated return to the resistance of 1.2451. A breakout and consolidation at this level will open a direct path to the highs of 1.2512 and 1.2573, where I recommend taking profits. In case GBP/USD declines in the first half of the day, it is best to look at long positions only after testing the 1.2348 area, or buy immediately for a rebound from the low of 1.2300 in the calculation of a correction of 30-40 points within the day.

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

Sellers have an equally difficult task, they need a breakout to resume the downward trend and then consolidate below the 1.2399 support, on which a lot depends. However, as I noted above, the market is on the side of sellers, so we can expect them to regain control and the pound will decline further. A break of 1.2399 will lead to a rapid decline in the GBP/USD pair to the support area of 1.2348, and sellers will further aim for a low of 1.2300, where I recommend taking profits. Poor data on the state of the US economy, namely the consumer confidence index, will only increase the pressure on the pair. Under the growth scenario in the first half of the day, you can return to short positions on a false breakout from yesterday's resistance of 1.2451, but it is best to sell the pound immediately on a rebound from the high of 1.2512 in the calculation of a correction of 30-40 points within the day.

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Signals of indicators:

Moving averages

Trade is carried out in the region of 30 and 50 moving average, which indicates an attempt to return control to the bears.

Note: The period and prices of moving averages are considered by the author on the hourly chart H1 and differs from the general definition of the classic daily moving averages on the daily chart D1.

Bollinger bands

A break of the lower border of the indicator in the area of 1.2399 will increase pressure on the pound. Growth above the upper border of the indicator in the area of 1.2440 will lead to a larger upward correction.

Description of indicators

  • Moving average (moving average determines the current trend by smoothing out volatility and noise). Period 50. The graph is marked in yellow.
  • Moving average (moving average determines the current trend by smoothing out volatility and noise). Period 30. The graph is marked in green.
  • MACD indicator (Moving Average Convergence / Divergence - Moving Average Convergence / Divergence). Fast EMA period 12. Slow EMA period 26. SMA period 9.
  • Bollinger Bands (Bollinger Bands). Period 20.
  • Non-profit traders are speculators, such as individual traders, hedge funds and large institutions that use the futures market for speculative purposes and meet certain requirements.
  • Long nonprofit positions represent the total long open position of nonprofit traders.
  • Short nonprofit positions represent the total short open position of nonprofit traders.
  • The total non-profit net position is the difference between short and long positions of non-profit traders.
The material has been provided by InstaForex Company - www.instaforex.com

Trading plan for EUR/USD and GBP/USD on 04/28/2020

Yesterday, the market observed almost exemplary standing in place. And of course, I want to write off all this to the initial absence of any significant macroeconomic data. Nevertheless, there was plenty of news even without this. What does it cost to exceed the mark of 3 million confirmed cases of coronavirus infection? The United States will most likely overcome the mark of 1 million cases of infection today. However, we can say that markets are gradually getting tired of the news regarding the coronavirus epidemic. Moreover, they are talking more and more about the gradual lifting of restrictive measures. However, most of them talk about this in Europe, sometimes supporting these words with real steps to soften the self-isolation regimes. Therefore, the main issue now is not the spread of the epidemic, but the economic collapse, whose scale is still difficult to assess. Well, the most important question is how long the world will get out of this hole. And although we have not yet fallen into it to the end, the world is still in a state of free fall. Many hope that the end of the epidemic and the lifting of restrictive measures will be the end of this very fall. At the same time, do not forget about the upcoming meetings of the Federal Committee on Open Market Operations and the European Central Bank this week. The market does not know what to expect from their results. It is highly likely that it will be announced the possibility of introducing additional incentive measures. Perhaps a reservation will be made about a further reduction in interest rates. Nevertheless, market participants clearly do not intend to take risks.

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However, despite the absence of any pan-European or American statistics, investors have received yet another confirmation that the global economic downward turn will be much more significant than everyone could imagine. In France, a historical record was set for the number of applications for unemployment benefits, which increased by 243 thousand. They predicted growth by 150 thousand, which in itself is almost double the record set in 2009. So the assumption was confirmed that if there is an unprecedented increase in unemployment in the United States, then exactly the same thing will happen in the rest of the world. The worst thing about all this is not even that unemployment is growing at a record pace, but that it will inevitably lead to a prolonged crisis, from which the world economy will have to get out of for many years.

Change in the number of applications for unemployment benefits (France):

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It has been repeatedly stated that everything that is happening now is accompanied by a mass flight of capital to the United States. It is strange for the simple reason that the largest mass of investment capital in the world is controlled by American funds and banks. WWell, in the conditions of global confusion and global crisis, large investors are beginning to look for ways to save their capital. And in such circumstances, anyone will decide to store funds where they think it is most secure. And when everything is bad and terrible everywhere, the safest place is your home. Here are the capitals and flee to the United States. Moreover, almost no one doubts that the global economic recovery will begin with the United States. So it is better to place money in advance where it will grow faster. But this process is still ongoing. For instance, the yield on 2-year government bonds decreased from 0.398% to 0.229%. However, earlier there was a strong decrease in the yield of short-term securities. This indicated that investors were counting on a relatively quick end to the global crisis. Now, we got to the relatively long ones. In particular, the yield on 5-year government bonds fell from 0.535% to 0.394%. And this looks pretty daunting, as it suggests that investors are already starting to assume that the crisis will be somewhat longer and we will go out of it for several years.

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Today, in fact, only American statistics can somehow influence the market. There is simply no other. However, we are not talking about the February S & P / CaseShiller data on housing prices, the growth rate of which should remain unchanged. This is the data for February, not March. But the data on wholesale stocks are of much greater interest, since they are just March. They can show a 1.0% increase in inventory. Of course, this is not a record growth. It is not even so impressive. However, against the background of the current situation on the labor market and the catastrophic drop in consumer demand, overstocking of warehouses suggests that industry will begin to recover with a strong delay .And this will have a negative impact on the entire process of restoring the American and, along with it, the world economy. In other words, the crisis will clearly be prolonged.

Wholesale Stocks (United States):

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The euro/dollar currency pair returned to the level of 1.0850 during the correction, where the quote slowed down and formed a slight stagnation, with a variable range of fluctuation of 1.0815 / 1.01860. It can be assumed that the movement within the given boundaries will continue in the market, where the main tactic will be considered a breakdown of one or another of the range of 1.0815/1.01860.

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The pound/dollar currency pair managed to concentrate on the values of 1.2400 / 1.2450 after the local upward jump, where the activity declined significantly, and the quote switched to sideways movement. It can be assumed that the existing fluctuation within 1.2400 / 1.2450 will remain in the market, where the best tactic will be considered a breakdown of the specified framework: 1.2400 ---> 1.2350; 1.2450 ---> 1.2500.

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

Instaforex Daily Analysis - 28th April 2020

Today we take a look at EURJPY and see how we are going to play the bounce!

We use Fibonacci retracements, extensions, support/resistance, momentum and trend lines to identify trading opportunities in this exciting pair today!

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

USD/CHF Upside Confirmed!

USD/CHF is expected to increase further if the USDX manages to start another bullish momentum. The pair has escaped from an important chart pattern signaling a broader upside movement.

The dollar remains strong despite the USDX's last drop, USD/CHF maintains a bullish outlook and it could approach and reach fresh new highs soon. USD/CHF edges higher, but it remains to see how it will react after the US Consumer Confidence will be released today. The indicator is expected at 88.3, a deeper drop caused by the COVID-19 could stop the USD's rally.

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The pair has found strong resistance at the R1 (0.9799) level, it has come back to retest the Pivot Point (0.9727) level and the 23.6% and now it seems determined to break above the R1 level.

Technically, USD/CHF is expected to approach and reach the 0.9899 high after the failure to approach and reach the median line (ml) of the descending pitchfork. I've said in my previous analysis that a valid breakout above the 23.6% level and above the PP (0.9727) will validate a significant increase.

  • TRADING RECOMMENDATIONS

USD/CHF has validated the breakout above the PP (0.9727) and above the 23.6% Fibonacci level and now is expected to make another higher high and to resume the upside movement. A valid breakout above the R1 (0.9799) level will give us a chance to buy this pair again, the next targets are seen at the R2 (0.9874) level, at the 0.9899 - 0.9900 area, and higher at the R3 (0.9947).

A further increase could be invalidated only if the price decreases and if it closes and stabilizes below the PP level. USD/CHF is bullish, a valid breakout above the 0.9900 psychological level will confirm a larger increase in the medium to the long term.

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

Indicator analysis. Daily review on GBP / USD for April 28, 2020

Trend analysis (Fig. 1).

Today, the upward trend may continue from 1.2399 - a 38.2% retracement level (presented in a red dashed line). In case of breaking through this level, the price may continue to move upward with the target of 1.2552 - a 76.4% retracement level (presented in a red 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:

Today, the price may continue to move upward with the target of 1.2552 - a 76.4% retracement level (presented in a red dashed line).

Another possible scenario is a bearish trend from the level of 1.2432 (closing of yesterday's candle) with the target of 1.2357 - a 23.6% retracement level (presented in a blue dashed line). If this level is broken down, the price may continue to move downward with the target at the lower fractal 1.2247 (presented in a red dotted line).

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

Indicator analysis. Daily review on EUR / USD for April 28, 2020

Trend analysis (Fig. 1).

Today, the upward trend may continue from 1.0824 - a 76.4% pullback level (presented in a red dashed line) with the first target of 1.0861 - a 50.0% pullback level (presented in a blue dashed line). When this level is broken up, the price may continue to move upward with the target of 1.0892 - a 61.8% retracement level (presented in a blue dashed line). From this level, it is likely that the price will roll back down.

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Fig. 1 (daily chart).

Comprehensive analysis:

- Indicator analysis - up;

- Fibonacci levels - up;

- Volumes - up;

- Candlestick analysis - up;

- Trend analysis - down;

- Bollinger lines - down;

- Weekly schedule - up.

General conclusion:

Today, the price may continue to move upward with the target at 1.0892 - a 61.8% retracement level (presented in a blue dashed line).

Another possible scenario is a bearish trend from 1.0830 - a 38.2% pullback level (presented in a blue dashed line) with a target at the lower fractal 1.0728 (presented in a blue dashed line).

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

Trading plan for April 28, 2020. EUR/USD. The US market, central banks, and the coronavirus.

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The US market arose despite negative economic reports.

According to data, US unemployment is approaching 20 million, and the US economy is expected to decline by -6.5% of GDP at the end of this year (-4% in the global economy). Fed's injection of liquidity influenced the growth, but it is only temporary, so a turndown is expected soon.

WTI oil, meanwhile, continues to plummet due to oversupply:

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EUR/USD - awaiting movement:

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Volatility is expected to rise ahead of Fed and ECB meetings on Wednesday and Thursday.

Keep purchases from 1.0850, but be ready to sell from 1.0725 with a full turn down.

Coronavirus update:

Western Europe is steadily emerging from the pandemic:

Daily deaths in Italy and Spain is now below 350.

In Britain, from above 800, daily deaths fell below 400.

Europe's infection rate is no longer higher than 2% per day. Britain's is about 3% per day.

USA: Infection rate fell to 2% per day. Daily deaths fell below 1,500.

A steady decrease in the number of active cases must be seen in the US.

New data on Russia will be released after 8:30 London time. Read it on "Trader's Diary" today.

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

EUR/USD: plan for the European session on April 28. COT reports. Buyers and sellers are actively building up their positions.

To open long positions on EURUSD, you need:

Buyers of the European currency could not build a larger upward correction yesterday due to the absence of important fundamental statistics, and so the bears returned the market under their control in the second half of the day, completely winning back all the growth. The Commitment of Traders (COT) reports for April 21 recorded an increase in not only long positions, but also short ones, which indicates an active confrontation between buyers and sellers, with a slight advantage of the former. However, a gradual and equal increase in positions in both directions can cause the pair to be suspended in the side channel. Short non-commercial positions increased from 78,461 to 83,160, while long non-commercial positions jumped from 165,078 to 170,378. As a result, the positive non-commercial net position continued to increase its value and reached 87,128, against 86,617, which indicates a slightly greater interest in buying risky assets at attractive low prices, after the pair's decline. As for the intraday strategy, the bulls' unsuccessful attempt to continue the upward correction yesterday could turn into a serious problem. Today's focus will shift to the important support level of 1.0816 in the first half of the day, where forming a false breakout will be a signal to open long positions while expecting the euro to continue growing. An equally important task for the bulls will be to break through and consolidate above the resistance of 1.0856, since this scenario will maintain a corrective trend in the pair that can reach the highs of 1.0882 and 1.0908, where I recommend taking profits. If we do not see active purchases in the support area of 1.0816, it is best to postpone long positions until the test of the larger area of 1.0787, or buy immediately on the rebound from the low of 1.0755, where larger bulls will try to build the lower border of the new ascending channel.

To open short positions on EURUSD you need:

Sellers face one important task - a breakout and consolidation below the support of 1.0816, since this scenario will lead to a more powerful movement of the euro by expecting an update of a low of 1.0787. However, the long-term goal for short positions in the middle of the week will be the areas of 1.0755 and 1.0728, where I recommend taking profits. The release of a weak result on the US consumer index by the second half of the day could result in a sharper decline from EUR/USD. If the bulls manage to keep the 1.0816 area, then I recommend returning to short positions only after forming a false breakout in the 1.0856 resistance area, or sell the euro immediately on a rebound from a high of 1.0882.

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Signals of indicators:

Moving averages

Trade is carried out in the region of 30 and 50 moving average, which indicates sellers' attempt to return to the market.

Note: The period and prices of moving averages are considered by the author on the hourly chart H1 and differs from the general definition of the classic daily moving averages on the daily chart D1.

Bollinger bands

A breakthrough of the lower border of the indicator in the region of 1.0816 raised the pressure on the European currency. In case of an upward correction, the upper border of the indicator in the area of 1.0856 will act as resistance.

Description of indicators

  • Moving average (moving average determines the current trend by smoothing out volatility and noise). Period 50. The graph is marked in yellow.
  • Moving average (moving average determines the current trend by smoothing out volatility and noise). Period 30. The graph is marked in green.
  • MACD indicator (Moving Average Convergence / Divergence - Moving Average Convergence / Divergence). Fast EMA period 12. Slow EMA period 26. SMA period 9.
  • Bollinger Bands (Bollinger Bands). Period 20.
  • Non-profit speculator traders, such as individual traders, hedge funds and large institutions that use the futures market for speculative purposes and meet certain requirements.
  • Long nonprofit positions represent the total long open position of nonprofit traders.
  • Short nonprofit positions represent the total short open position of nonprofit traders.
  • The total non-profit net position is the difference between short and long positions of non-profit traders.
The material has been provided by InstaForex Company - www.instaforex.com

Control zones for EURUSD on 04/28/20

Trading closed within the WCZ 1/2 1.0827-1.0818 yesterday. This compels us to consider options for working, both in buying and selling. Today, the first support is WCZ 1/4 1.0816-1.0811. If testing this zone results in forming an absorption pattern, then purchases will come to the fore. The main goal of growth will be the weekly control zone of 1.0927-1.0909.

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Work in the upward direction could become the main one this week, so the volume must be calculated with the prospect of partial consolidation and moving to the average period.

An alternative model will develop if trade occurs below the WCZ 1/4 when the European session opens. This will allow us to consider selling, the goal of which will be last week's low. It is important to understand that the decline has an average momentum, so the probability of updating the annual low is still high.

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

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

Monthly CZ - monthly control zone. The zone, which is a reflection of the average volatility over the past year.

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

Control zones for AUDUSD on 04/28/20

Today's trading takes place within the weekly control zone of 0.6453-0.6435. This will make it possible for you to consider two options when trading. The first and main option is to return the price to the upper limit of the monthly control zone of April at 0.6322. The probability of this event is 90%. Before the decline, forming a false breakout pattern of yesterday's high may be required.

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Work between the weekly control zone and WCZ 1/2 could become the main one in the first half of the week. It is important to remember that the probability of returning to a monthly control zone does not allow you to consider buying from current marks.

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

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

Monthly CZ - monthly control zone. The zone, which is a reflection of the average volatility over the past year.

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

#CL will fill the Liquidity Void after they break bellow the 10.27 level For April 28, 2020

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On the 4 hour chart, we can see the nearest liquidity pool at 10.27 level will be broken soon. if so, the pair will fill reach liquidity void at BIVI (Buyside Imbalance Volume Imbalance) on the left side. At least it will test the main threshold at the 5.47 level as long as this asset does not retrace above the 18.25 level.

(Disclaimer)

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

Euro and pound unlikely to gain ground further. Forex forecast for April 28

Signals for the EUR/USD pair:

If the pair breaks through the level of 1.0856, the euro is likely to advance to the area of 1.0882 and 1.0908.

If the pair breaks through the level of 11.0816, the euro is likely to decline to the area of 1.0787 and 1.0760.

Signals for the GBP/USD pair:

If the pair breaks through the level of 1.2451, the pound is likely to gain ground towards the area of 1.2512 and 1.2573.

If the pair breaks through the level of 1.2399, the pound is likely to go down to the area of 1.2348 and 1.2300.

Fundamental data:

US Goods Trade Balance

US Consumer Confidence

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

Technical Analysis of ETH/USD for 28/04/2020:

Crypto Industry News:

EthereumPrice.org has released a new tool to calculate how much ETH can be earned by stacking coins under the new network consensus model. The Ethereum 2.0 calculator has many configurable settings that simulate different conditions and stacking variables. Users can customize many network (variable) settings that have a big impact on how the reward is calculated.

For example, a change in the size of ETHs stacked in the network from 1% to 10% means a difference in earnings between 5% or 15% (each year). Another factor that will affect the award on an annual basis is, for example, the lifetime of the node (validator) itself.

The tool calculates potential profits from 10 years of ETH stacking as well as each year. It will also calculate ROI (return on investment) in a given time. To view the value of their bid, users can choose from many fiat functional currencies, ETH in USD, EUR, GBP, JPY and others.

The calculator is currently in public beta. The current interface should be treated more as an educational device than a means for practical calculations. However, this gives an idea of how important staking will become part of the 'new Ethereum' ecosystem.

Technical Market Outlook:

The ETH/USD bears has pushed the price out of the Falling Wedge pattern and Ethereum made a new local low at the level of $188.86. There is a clear bearish divergence between the price and momentum indicator that supports the short-term bearish outlook, so the level of $188.86 might not be the target level and the ETH/USD rate can drop even further towards the next target at $178.25. The key short-term technical resistance is still located at the level of $198.72 and only a clear breakout above this level will open the road towards the $209.09 target.

Weekly Pivot Points:

WR3 - $243.80

WR2 - $220.39

WR1 - $211.16

Weekly Pivot - $187.55

WS1 - $172.98

WS2 - $155.34

WS3 - $144.09

Trading Recommendations:

The fear of the coronavirus consequences is very strong among the global investors and it rules on the financial markets. So far the global investors are not so keen to invest in cryptocurrency, because they are being perceived as risky assets. The larger time frame trend on Ethereum remains down and as long as the level of $214.67 is not violated, all rallies will be treated as a counter-trend corrective moves. This is why the short positions are now more preferred.

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

Technical Analysis of BTC/USD for 28/04/2020:

Crypto Industry News:

Silk Road founder and prisoner Ross Ulbricht sees long-term opportunities for the cryptocurrency price to stay well above $ 20,000.Writing on his personal Medium account in the American prison Tucson, Ulbricht developed his comments from the beginning of this month, in which he predicted the decline of Bitcoin to $ 3,200 as a clear possibility. Although he admitted that his prediction was the likely second wave scenario, the founder of Silk Road wants the cryptographic community to know that "it is still bullish in the long run."

Seeing both the short-term and long-term growth potential of cryptocurrency, Ulbricht attributes any possible bear behavior between two successive waves as nothing more than "slight fluctuations."

Although he admits that his access to information is limited from prison, Ulbricht continues to provide Bitcoin market analysis on his Medium blog. He is currently serving two life sentences without parole after being found guilty of money laundering, computer hacking and drug trafficking conspiracy with the Silk Road market on Darknet.

Technical Market Outlook:

The BTC/USD pair has moved higher again and has been testing the recent swing high located at the level of $7,707 for all day yesterday and is currently hovering around this level. In a case of a further breakout, the next target is seen at the level of $7,897, but there is a clear bearish divergence between the price and momentum oscillator at current levels. If bears will push the prices lower, they can hit the next technical support located at the level of $7,385 and below.

Weekly Pivot Points:

WR3 - $9,046

WR2 - $8,348

WR1 - $8,040

Weekly Pivot - $7,352

WS1 - $7,064

WS2 - $6,356

WS3 - $6,047

Trading Recommendations:

The fear of the coronavirus consequences is very strong among the global investors and it rules on the financial markets. So far the global investors are not so keen to invest in Bitcoin and treat BTC as a digital gold. The larger time frame trend remains down and as long as the level of $10,791 is not violated, all rallies will be treated as a counter-trend corrective moves. This is why the short positions are now more preferred.

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

Elliott wave analysis of EUR/GBP for April 28 - 2020

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EUR/GBP is tarding within a very narrow range between 0.8706 - 0.8737. We see a clear loss of downside momentum, but to indicate a bottom being in place, we need a break above minor resistance at 0.8737 and more importantly a break above resistance at 0.8769 that will lead to a new impulsive rally above 0.9499.

Only an unexpected break below 0.8675 will change the 0.8621 target but this seems unlikely.

R3: 0.8863

R2: 0.8769

R1: 0.8737

Pivot: 0.8724

S1: 0.8709

S2: 0.8675

S3: 0.8621

Trading recommendation:

We are long EUR from 0.8765 with our stop placed at 0.8670

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

Elliott wave analysis of GBP/JPY for April 28 - 2020

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GBP/JPY is barely moving and is trading in a very narrow range between 132.93 - 133.59. We are looking for a break below minor support at 132.36 and more importantly a break below support at 131.88 that may accelerate the downside pressure to the level below 123.99. Once this final decline has broken below 123.99 all requirements to the decline from 147.96 will have been fulfilled and a long-term low should be expected anytime.

R3: 134.95

R2: 134.12

R1: 133.68

Pivot: 133.28

S1: 13236

S2: 131.88

S3: 131.34

Trading recommendation:

We are short GBP from 134.35 with our stop placed at 135.00. Upon a break below 131.88 we will lower our stop to 134.00

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

Technical Analysis of EUR/USD for 28/04/2020:

Technical Market Outlook:

After the bounce from the level of 1.0727 the EUR/USD pair is climbing higher step by step towards the key short-term resistance located at the level of 1.0878. So far the bulls were able to make a new local high at the level of 1.0849 and they are under the bearish pressure again. Before the bulls hit the 1.0878 resistance, there is a local technical resistance level located at 1.0846 that must be violated first. The momentum is still strong and positive and market conditions are not overbought yet, so the odds for another wave up are high.

Weekly Pivot Points:

WR3 - 1.1057

WR2 - 1.0976

WR1 - 1.0895

Weekly Pivot - 1.0809

WS1 - 1.0731

WS2 - 1.0641

WS3 - 1.0563

Trading Recommendations:

The fear of the coronavirus consequences is very strong among the global investors and it rules on the financial markets. ON the EUR/USD pair the main trend is down, but the reversal is possible when the coronavirus pandemic will be tamed. The key long-term technical support is seen at the level of 1.0336 and the key long-term technical resistance is seen at the level of 1.1540. Only if one of this levels is clearly violated, the main trend might reverse (1.1540) or accelerate (1.0336).

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

Technical Analysis of GBP/USD for 28/04/2020:

Technical Market Outlook:

The GBP/USD pair has not been able to break throught the 50% of the Fibonacci retracement of the last wave down. The bears has pushed the price towards the short-term trend line support around the level of 1.2400 again. The level of 1.2446 might be a key short-term level for both bulls and bears as any violation of this retracement level will lead to another sub-wave up with a target at the levels of 1.2466, 1.2485 and 1.2493. Nevertheless, in order to continue the larger time frame up trend, the bulls must violate the swing high located at 1.2645 otherwise the current move up will be considered as a counter-trend correcive wave that will not last for long.

Weekly Pivot Points:

WR3 - 1.2379

WR2 - 1.2609

WR1 - 1.2480

Weekly Pivot - 1.2357

WS1 - 1.2228

WS2 - 1.2104

WS3 - 1.1970

Trading Recommendations:

The fear of the coronavirus consequences is very strong among the global investors and it rules on the financial markets. On the GBP/USD pair the main trend is down, but the reversal is possible when the coronavirus pandemic will be tamed. The key long-term technical support has been recently violated (1.1983) and the new one is seen at the level of 1.1404. The key long-term technical resistance is seen at the level of 1.3518. Only if one of this levels is clearly violated, the main trend might reverse (1.3518) or accelerate (1.1404).

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Forecast for EUR/USD on April 28, 2020

EUR/USD

The euro traded in a range of 50 points at the end of the first day of the week, ending it with a growth of six points. Therefore, the price began to wander freely in the range of 1.0810/90, as we expected in yesterday's review. Today, the price increases the ambiguity in both scenarios by rising and falling.

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The signal line of the Marlin oscillator formed its own wedge on the daily chart, going beyond it will allow the price to work out the convergence point of the trend line with the MACD indicator line in the area of 1.0940 and even continue to grow beyond the target level. To grow further is difficult and unpredictable. there are many strong record levels on the way to the price channel line (1.1165).

In the event of a breakout of the Marlin triangle down (turning from its upper line), the movement looks more understandable, here we are waiting for the price to support the price channel in the region of 1.0605. A breakout of the indicator down is likely at the moment when the price overcomes the signal level 1.0768, which is the April 6 low.

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The price is between the balance and MACD lines on the H4 chart, in the consolidation range. Moving up is possible when the price reaches the MACD line (1.0890), and the nearest target is 1.0940. A descending scenario opens with a breakout of the signal level of 1.0768. At this point, the Marlin on H4 will already be in the negative trend zone.

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Forecast for AUD/USD on April 28, 2020

AUD/USD

The Australian dollar gained 70 points on Monday, on the way to the target mark of 0.6526, but the price suddenly fell today during the Asian session. At the moment, the decline is not critical, but if it continues, a divergence will form on the Marlin oscillator, which could be the first condition for a medium-term decline in the Australian currency.

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The price shows the intention to return under the MACD line on the four-hour chart. The Marlin oscillator fuels the decline's pace. Its transition to the zone of negative values will create a condition for pulling down the price in the short term for 1-2 days. A direct signal to this will be when the price drops to the level of 0.6406 (high of April 23).

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So, when the price overcomes the signal level 0.6406, it is then possible to open short positions while aiming for 0.6280 (MACD line on daily). Stop loss above 0.6435.

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Forecast for USD/JPY on April 28, 2020

USD/JPY

The USD/JPY pair lost 23 points yesterday, which was a notable event amid low volatility last week. The signal line of the Marlin oscillator on the daily chart is still within the boundaries of its own wedge, but its intention to leave the wedge down has become stronger. A target will open on the lower line at 102.40 when the price goes below the embedded line of the price channel at 106.70.

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The price is developing above the MACD line on the four-hour chart, which hinders forming a sell signal in time. When the price leaves the area above 108.20, above the MACD line of the daily scope, this will reveal an alternative upward scenario with the aim of moving to 111.62.

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You are advised to open sales when the price overcomes the 106.70 level, stop loss above 107.00.

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USDCAD coming close to descending trendline resistance. Limited drop inbound!

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Trading Recommendation

Entry: 1.40758

Reason for Entry: Descending trendline resistance, moving average resistance, 61.8% Fibonacci retracement

Take Profit : 1.40115

Reason for Take Profit: Graphical swing low, 61.8% Fibonacci retracement

Stop Loss: 1.41198

Reason for Stop loss: Graphical swing high

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USD/CHF approaching resistance, potential reversal!

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Trading Recommendation

Entry: 0.97945

Reason for Entry: Horizontal swing high resistance, 61.8% fibonacci retracement and 61.8% fibonacci extension

Take Profit : 0.96747

Reason for Take Profit: Horizontal swing low support, 61.8% fibonacci retracement

Stop Loss: 0.98440

Reason for Stop loss: Horizontal swing high resistance

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