Fractal analysis of the main currency pairs on May 11

Forecast for May 11:

Analytical review of currency pairs on the scale of H1:

analytics5eb8ee0cf277f.jpg

For the euro / dollar pair, the key levels on the H1 scale are: 1.0945, 1.0922, 1.0886, 1.0859, 1.0824, 1.0798, 1.0766 and 1.0728. Here, the price forms the potential for the upward movement of May 7. Short-term upward movement is expected in the range of 1.0859 - 1.0886. The breakdown of the last level will lead to a pronounced movement. In this case, the target is 1.0922. For the potential value for the top, we consider the level of 1.0945. Upon reaching which, we expect consolidation, as well as a downward pullback.

A short-term downward movement is possible in the range of 1.0824 - 1.0798. The breakdown of the last level will favor the development of a downward trend from May 1. In this case, the first target is 1.0766. For the potential value for the bottom, we consider the level of 1.0728.

The main trend is the downward cycle of May 1, the formation of potential for the top

Trading recommendations:

Buy: 1.0860 Take profit: 1.0884

Buy: 1.0887 Take profit: 1.0920

Sell: 1.0824 Take profit: 1.0800

Sell: 1.0796 Take profit: 1.0766

analytics5eb8ee217d37b.jpg

For the pound / dollar pair, the key levels on the H1 scale are: 1.2612, 1.2557, 1.2519, 1.2463, 1.2420, 1.2352, 1.2312, 1.2264, 1.2226 and 1.2153. Here, the price forms the potential for the top of May 7 in the correction from the downward structure. We expect short-term upward movement, as well as consolidation, in the range of 1.2420 - 1.2463. The breakdown of the last level will lead to a movement to the level of 1.2519. A short-term upward movement is in the range of 1.2519 - 1.2557. For the potential value for the upward trend, we consider the level of 1.2612, from which we expect a downward pullback.

A short-term downward movement is possible in the range of 1.2352 - 1.2312. The breakdown of the last level will lead to the development of a downward trend. In this case, the first target is 1.2264. A short-term downward movement, as well as consolidation is in the range of 1.2264 - 1.2226. For the potential value for the bottom, we consider the level of 1.2153. Upon reaching which, we expect an upward pullback.

The main trend is the downward cycle of April 30, the formation of potential for the top of May 7

Trading recommendations:

Buy: 1.2420 Take profit: 1.2460

Buy: 1.2464 Take profit: 1.2519

Sell: 1.2350 Take profit: 1.2314

Sell: 1.2310 Take profit: 1.2265

analytics5eb8ee36576f5.jpg

For the dollar / franc pair, the key levels on the H1 scale are: 0.9819, 0.9785, 0.9758, 0.9741, 0.9709, 0.9687, 0.9660 and 0.9642. Here, the price is in the correction zone from the upward structure on May 1. Short-term downward movement is expected in the range of 0.9709 - 0.9687. Price consolidation is in this range and from here, we expect a key reversal upwards. The breakdown of the level of 0.9687 should be accompanied by the development of pronounced movement to the bottom. Here, the target is 0.9660. For the potential value for the downward trend, we consider the level of 0.9642.

A short-term upward movement is possible in the range of 0.9741 - 0.9758. The breakdown of the last level will have the subsequent development of an upward trend. Here, the first target is 0.9785. For the potential value for the top, we consider the level of 0.9819.

The main trend is the upward cycle from May 1, the correction stage

Trading recommendations:

Buy : 0.9741 Take profit: 0.9756

Buy : 0.9760 Take profit: 0.9785

Sell: 0.9709 Take profit: 0.9688

Sell: 0.9685 Take profit: 0.9662

analytics5eb8ee53861b8.jpg

For the dollar / yen pair, the key levels on the scale are : 107.73, 107.58, 107.33, 107.11, 106.80, 106.61 and 106.39. Here, we are following the development of the ascending structure of May 6. The continuation of the upward movement is expected after the breakdown of the level of 107.11. In this case, the target is 107.33. Price consolidation is near this level. The breakdown of the level of 107.35 will lead to a pronounced movement. In this case, the target is 107.58. For the potential value for the top, we consider the level of 107.73. Upon reaching this level, we expect consolidation, as well as a downward pullback.

A short-term downward movement is possible in the range of 106.80 - 106.61. The breakdown of the last level will lead to an in-depth correction. Here, the target is 106.39. This level is a key support for the upward structure.

Main trend: upward cycle of May 6

Trading recommendations:

Buy: 107.11 Take profit: 107.31

Buy : 107.35 Take profit: 107.58

Sell: 106.80 Take profit: 106.62

Sell: 106.59 Take profit: 106.40

analytics5eb8ee8b5c2b8.jpg

For the Canadian dollar / US dollar pair, the key levels on the H1 scale are: 1.4061, 1.4009, 1.3971, 1.3917, 1.3867, 1.3786 and 1.3729. Here, the development of the upward trend has been canceled and at the moment, we are following the formation of the downward structure of May 7. Short-term downward movement is expected after the breakdown of the level of 1.3917. In this case, the target is 1.3867. Price consolidation is near this level. The breakdown of the level of 1.3865 will lead to the development of a pronounced downward movement. In this case, the target is 1.3786. We consider the level of 1.3729 to be a potential value for the downward trend. Upon reaching which, we expect consolidation, as well as a pullback to correction.

A short-term upward movement is possible in the range of 1.3971 - 1.4009. The breakdown of the last level will lead to an in-depth correction. In this case, the target is 1.4061.

The main trend is the descending structure of May 7

Trading recommendations:

Buy: 1.3971 Take profit: 1.4006

Buy : 1.4012 Take profit: 1.4060

Sell: 1.3915 Take profit: 1.3870

Sell: 1.3865 Take profit: 1.3790

analytics5eb8eeb269273.jpg

For the Australian dollar / US dollar pair, the key levels on the H1 scale are : 0.6671, 0.6628, 0.6608, 0.6571, 0.6547, 0.6508, 0.6477 and 0.6435. Here, we are following the development of the ascending structure of May 7. Short-term upward movement is expected in the range of 0.6547 - 0.657. The breakdown of the last level should be accompanied by a pronounced upward movement. In this case, the target is 0.6608. Price consolidation is in the range of 0.6608 - 0.6628. For the potential value for the top, we consider the level of 0.6671. Upon reaching which, we expect a downward pullback.

A short-term downward movement is expected in the range of 0.6508 - 0.6477. The breakdown of the last level will lead to an in-depth correction. In this case, the potential target is 0. 6435. This level is a key support for the top.

The main trend is the upward structure of May 7

Trading recommendations:

Buy: 0.6547 Take profit: 0.6570

Buy: 0.6574 Take profit: 0.6608

Sell : 0.6508 Take profit : 0.6480

Sell: 0.6475 Take profit: 0.6440

analytics5eb8eece44df4.jpg

For the euro / yen pair, the key levels on the H1 scale are: 117.00, 116.79, 116.42, 116.18, 115.70, 115.42, 115.06 and 114.43. Here, we are following the development of the ascending structure of May 6. Short-term upward movement is expected in the range of 116.18 - 116.42. The breakdown of the last level will allow us to expect movement to a potential target - 117.00, after which, we expect consolidation in the range of 116.79 - 117.00.

A short-term downward movement is possible in the range of 115.70 - 115.42. The breakdown of the last level will lead to an in-depth correction. Here, the goal is 115.06. This level is a key support for the top and the price passing this level will lead to the development of a downward structure. Here, the potential goal is 114.43.

The main trend is the upward structure of May 6

Trading recommendations:

Buy: 116.18 Take profit: 116.40

Buy: 116.43 Take profit: 116.76

Sell: 115.70 Take profit: 115.44

Sell: 115.40 Take profit: 115.08

analytics5eb8eeefa6acb.jpg

For the pound / yen pair, the key levels on the H1 scale are : 134.76, 134.25, 133.46, 133.16, 132.48 and 131.54. Here, we are following the formation of the ascending structure of May 7. The continuation of the upward movement is expected after the price passes the noise range of 133.16 - 133.46. In this case, the target is 134.25. For the potential value for the top, we consider the level of 134.76. Upon reaching which, we expect consolidation, as well as a downward pullback.

A short-term downward movement is expected after the breakdown of the last level in the range of 132.48 - 132.08 to lead to an in-depth correction. Here, the goal is 131.54. This level is a key support for the top.

The main trend is the formation of the ascending structure of May 7.

Trading recommendations:

Buy: 133.46 Take profit: 134.25

Buy: 134.27 Take profit: 134.74

Sell: 132.48 Take profit: 132.10

Sell: 132.06 Take profit: 131.55

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

CADJPY showing a trendline breakout! Further push up expected!

analytics5eb8f69075c6e.jpg

Trading Recommendation

Entry: 76.364

Reason for Entry: descending trendline support, 23.6% Fibonacci retracement

Take Profit : 77.417

Reason for Take Profit: -27.2% Fibonacci retracement

Stop Loss: 75.579

Reason for Stop loss: 61.8% Fibonacci retracement

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

XAUUSD pulling back to trendline , potential bounce !

analytics5eb8f641cddda.jpg

Trading Recommendation

Entry: 1703.89

Reason for Entry: Horizontal overlap support , trendline pullback

Take Profit :1735.87

Reason for Take Profit: 78.6% fibonacci extension

Stop Loss: 1683.59

Reason for Stop loss: Horizontal swing low

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

EUR/USD approaching resistance, potential drop!

analytics5eb8f5ca45f7f.jpg

Trading Recommendation

Entry: 1.08941

Reason for Entry: Horizontal overlap resistance, 50% fibonacci retracement, and 61.8% fibonacci extension

Take Profit : 1.07749

Reason for Take Profit: Horizontal swing low support

Stop Loss: 1.09318

Reason for Stop loss: Horizontal swing high resistance, 61.8% fibonacci retracement

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

EUR/USD. Positional struggle in anticipation of US inflation

The positional struggle between bulls and bears continues – buyers are trying to gain a foothold above the 1.0850 mark, sellers refuse to give up and hope to return the price to the area of the seventh figure. April Nonfarm extinguished the downward momentum, which was caused by negative fundamental factors relative to the euro. The pessimistic report of the European Commission, the similar rhetoric of the head of the European Central Bank, the resonant decision of the German constitutional court, the disastrous figures of the PMI indices - all these circumstances put significant pressure on the single currency, as a result of which the EUR/USD pair declined without much effort on the part of dollar bulls.

But when the dollar stumbled on Nonfarms, buyers of the pair were able to seize the initiative, developing a corrective movement. However, bulls are content with only a correction so far – to change the situation, they should at least go above $1,0870 (middle line of Bollinger Bands, which coincides with the Kijun-sen on the daily chart) and gain a foothold above 1,0880 (Tenkan-sen at the same timeframe) – in this case, it will open the way to the ninth figure, where the pair can attract more buyers. And until this "minimum program" is completed, there is a risk of falling back to the bottom of the eighth figure, and below. Tomorrow's release may push the pair above or below the designated target levels.

analytics5eb8f34f302e3.jpg

Take note that the economic calendar is almost empty today – no macroeconomic reports are scheduled for Monday, but the representatives of regulators are expected to speak. So, during the European session, the head of the central bank of Luxembourg and at the same time a member of the ECB Board Yves Mersch will speak, and we will learn more about the opinions of Federal Reserve representatives Raphael Bostic and Charles Evans during the US session. The latter do not have voting rights this year, so their position will have a weak impact on the market. But Yves Mersch can provoke volatility in the pair, especially in light of the recent decision of the German court. If it allows the option of excluding the Bundesbank from the QE program, then the euro will be under extreme pressure. But this scenario is unlikely, given Mersh's caution in his statements.

And if Monday is likely to be wasted for the pair, then price turbulence is expected on Tuesday. The most important release for the dollar will be published on May 12. We are talking about the publication of data on the growth of US inflation for April. In March, US inflation figures already reflected the presence of coronavirus in the US – on a monthly basis, the overall CPI index fell into negative territory (-0.4%), and in annual terms – fell to one and a half percent. In April, the negative trend is likely to continue. According to preliminary forecasts, the overall consumer price index should go deeper into the negative area and reach -0.7% (m/m). In annual terms, the indicator should fall to 0.4%.

Core inflation, excluding food and energy prices, showed relative stability in March, especially on an annualized basis (-0.1% m/m 2.1% y/y). But April figures are unlikely to please dollar bulls - according to most experts, in monthly terms the indicator will drop to -0.3%, in annual terms - to 1.7%. If real numbers fall below forecast values, the dollar may fall under a sell-off. Weak inflation will affect Fed members, who are forced to reckon not only with the dynamics of the labor market, but also with inflation dynamics, especially in light of Powell's rhetoric following the results of the last meeting of the Fed. Therefore, the disappointing CPI report will in any case put downward pressure on the US currency.

Important Chinese data will have a significant influence on the pair, which will also be published on Tuesday. We are talking about inflation indicators - we will learn the dynamics of the consumer price index and producer price index. Chinese inflation dropped to 4.3% in March (for comparison - the indicator was at the level of 5.6% in January), and negative dynamics is also forecast in April - a decline to 3.7%. The same goes for the producer price index, which is an early signal of changes in inflationary trends - it could collapse to -2.6% (many years of anti-record). These macroeconomic reports will have an indirect effect on the pair, in the context of growth or decline in anti-risk sentiment. If the indicators come out in the green zone, the overall risk appetite may increase, and accordingly the pair will get an additional reason for their growth. Otherwise, demand for the dollar may increase (as a safe asset), after which it will be more difficult for the bulls to resist the bears.

analytics5eb8f361e8f9d.jpg

Thus, at the moment the situation for the pair is uncertain. Long positions can be considered if buyers can gain a foothold above target 1.0880 (Tenkan-sen line on the daily chart) - the next resistance level is located at 1.0970 (the lower border of the Kumo cloud, which coincides with the upper line of the Bollinger Bands on that same timeframe). If the bulls cannot overcome 1.0880, then the probability of a downward pullback with the main target of 1.0750 (the lower line of the Bollinger Bands indicator) will increase.

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

Technical Analysis of GBP/USD for 11/05/2020:

Technical Market Outlook:

The GBP/USD pair has returned to the middle of the trading range after the local low at the level of 1.2265 had been made. The 50% Fibonacci retracement has been tested on the way up, but so far the bulls were rejected from this level and are hovering around 1.2425 in neutral market conditions. The momentum remains neutral as well, but due to the fact, that the price is trading below the short-term trend line resistance, the odds for another wave down might be higher. The nearest technical resistance is seen at the level of 1.2466 and the nearest technical support is located at the level of 1.2297.

Weekly Pivot Points:

WR3 - 1.2730

WR2 - 1.2608

WR1 - 1.2508

Weekly Pivot - 1.2380

WS1 - 1.2283

WS2 - 1.2157

WS3 - 1.2054

Trading Recommendations:

The fear of the coronavirus consequences has decreased among the global investors on the financial markets. On the GBP/USD pair the main trend is down, but the reversal is possible when the corona virus 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). The market might have done a Double Top pattern at the level of 1.2645, so the price might move lower in the longer-term.

analytics5eb8e87772530.jpg

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

Technical Analysis of EUR/USD for 11/05/2020:

Technical Market Outlook:

The EUR/USD has bounced towards the nearest technical resistance located at the level of 1.0846 after a Pin Bar candlestick was made during the sell-off. The bulls hasn't made a new local high yet, so the next target for them is seen at the level of 38% Fibonacci retracement at 1.0862 and 1.0878. This level must be clearly violated in order to rally towards higher levels. The momentum remains neutral, but might turn positive any time now.

Weekly Pivot Points:

WR3 - 1.1136

WR2 - 1.1058

WR1 - 1.0936

Weekly Pivot - 1.0853

WS1 - 1.0718

WS2 - 1.0627

WS3 - 1.0520

Trading Recommendations:

The fear of the coronavirus consequences has decreased among the global investors on the financial markets. On the EUR/USD pair the main long term 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).

analytics5eb8e6b15d5dd.jpg

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

Technical Analysis of ETH/USD for 11/05/2020:

Crypto Industry News:

Vitalik Buterin believes that Ethereum can play a role in the future global crisis as a glue that helps unite nations.

Ethereum co-founder was interviewed at Ethereal Summit 2020. Describing the current global crisis as more than financial, Buterin said that levels of political discord and distrust between countries highlighted the need for a network like Ethereum.

"I strongly believe that the role of Blockchain chains - in particular Ethereum - is to play the role of a neutral global player for systems, currencies and applications for interaction. I think that anything created and maintained by nation states cannot play this role" - he said

Describing the current situation as financial only "one-third", co-founder Ethereum also discussed the current situation compared to the global financial crisis in 2008 and whether the event could help fuel a new wave of cryptocurrency. Buterin said that cryptocurrencies like Ethereum could grow this time, solving "non-financial problems" in the world.

Technical Market Outlook:

The ETH/USD pair has dropped significantly towards the level of $177.50, which is a 61% Fibonacci retracement for the price and is currently hovering around this level. The momentum remains weak and negative, so the next target for bears is seen at the level of $164.45. The immediate technical resistance is seen at the level of $188.86 and $193.78. Please bear in mind, that there is only 13 hours left to the halving, which is highly anticipated event for all cryptoenthusiasts.

Weekly Pivot Points:

WR3 - $241.59

WR2 - $228.78

WR1 - $204.66

Weekly Pivot - $191.03

WS1 - $168.45

WS2 - $154.83

WS3 - $130.49

Trading Recommendations:

The fear of the coronavirus consequences has decreased among the global investors on the financial markets, nevertheless 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 $288 is not violated, all rallies will be treated as a counter-trend corrective moves. This is why the short positions are now more preferred.

analytics5eb8e51c91aed.jpg

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

Technical Analysis of BTC/USD for 11/05/2020:

Crypto Industry News:

Global losses from cryptocurrency fraud and theft increased sharply in 2019, doubling compared to 2018. Despite many efforts to combat cryptocurrency fraud programs, countries like Belgium continued to suffer heavy losses.

According to a report, the Belgian Economic Inspectorate reported EUR 2.94 million in losses due to cryptocurrency fraud in 2019. Recent figures show that the number of cryptocurrency scams in Belgium has been increasing in recent years. In 2018, the Belgian Federal Public Service, known as FPS Economy, reported $ 2.5 million in losses related to cryptographic fraud in the country. Furthermore, these growing numbers are apparently "just the tip of the iceberg" because most fraud cases remain unreported.

Nathalie Muylle, Belgian Minister of Economy and Consumer Affairs, said real losses were higher than USD 3.2 million. According to her, Belgium primarily used a preventative approach to combat cryptographic fraud, while criminal law measures are still uncertain. In 2019, the economic inspection sent a prosecutor's request for fraud and is still awaiting a decision.

The Belgian authorities have indeed taken many preventive measures to solve this problem in recent years. In February 2020, the Belgian Office for Financial Services and Markets (FSMA) blacklisted several fake cryptography websites. Earlier, FPS Economy launched a website to increase awareness of the risks associated with crypto investments.

Technical Market Outlook:

The BTC/USD pair has lost about 15% of its value over the weekend and is currently trading around the level of $8,600 after a low was made at the level of $8,046. Still the key level of support is still seen at $7,943, but the nearest technical support is currently seen at the level of $8,464. Any violation of this level will deepen the correction towards the level of $7,934 which is a key short-term technical support for bulls. Weak and negative momentum supports the short-term bearish outlook about 13 hours before halving.

Weekly Pivot Points:

WR3 - $11,485

WR2 - $10,709

WR1 - $9,512

Weekly Pivot - $8,760

WS1 - $7,652

WS2 - $6,835

WS3 - $5,708

Trading Recommendations:

The recent rally in Bitcoin was made in anticipation of Bitcoin halving and it is a classic pump and dump scheme. 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 until the level of $10,791 is clearly violated.

analytics5eb8e2e3cb71d.jpg

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

Elliott wave analysis of EUR/GBP for May 11 - 2020

analytics5eb8e0674efa2.jpg

EUR/GBP is currently lagging the power to attack key-resistance at 0.8866, but eventually, this key-resistance will come under fire. It is highly likely that this level will be broken and a new impulsive rally through the former top at 0.9499 can occur.

Support is seen in the 0.8689 - 0.8700 area. It is expected to continue to protect the downside for a firm test of key resistance at 0.8866. A break above minor resistance at 0.8788 will be the first strong indication of a test of key-resistance coming.

R3: 0.8866

R2: 0.8814

R1: 0.8788

Pivot: 0.8758

S1: 0.8725

S2: 0.8689

S3: 0.8670

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 May 11 - 2020

analytics5eb8deb481c6d.jpg

The correction from 130.63 has extended through resistance at 131.92 for a test of the 50% corrective target of the decline from 135.45. We should see solid resistance in the 133.00 - 133.18 area which ideally will be able to cap the upside for a break below support at 132.07 indicating renewed downside pressure towards 130.63 and below towards 123.99. It will complete the long-term decline from 147.95. Once we have seen the final dip below 123.99 a new impulsive rally should be expected.

R3: 133.59

R2: 133.18

R1: 133.00

Pivot: 132.64

S1: 132.07

S2: 131.49

S3: 131.11

Trading recommendation:

We where stopped out at 132.50 and we will re-sell GBP upon a break below 132.07

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

GBP/USD: plan for the European session on May 11. Pound is ready to continue to grow, but an urgent breakout of 1.2463 is

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

Last week, I paid attention to purchases in the support area of 1.2356, which enabled me to take more than 100 points from the market after the release of a report indicating a reduction in US jobs by more than 20 million. The data turned out to be better than economists' forecasts, which did not lead to a serious sell-off of GBP/USD and retained optimism in the market, which may affect the further strengthening of the pound. If you look at the 5-minute chart, you can see that after purchases in the 1.2356 area, growth slowed down in the 1.2445 area, from where I recommended to open short positions, which also led to a downward correction of the pair by around 40 points at the end of the day. Currently, pound buyers have a chance to continue the upward correction, however, it is necessary to use the 1.2463 level. Consolidating on this range will be a signal to open long positions, counting on updating larger highs in the areas of 1.2508 and 1.2557, where I recommend taking profits. Also, a good entry would be forming a false breakdown in the support area of 1.2401, just below which the moving averages also pass. However, if there is no activity on the part of the bulls, it is best to postpone purchases until the test low of 1.2358, or open long positions immediately on the rebound from support 1.2305, counting on an upward correction of 30-40 points within the day.

analytics5eb8ee0e65629.jpg

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

Sellers will protect the resistance at 1.2463, by analogy, as it was last Friday with the 1.2445 level. Forming a false breakdown at this level in the morning will be a signal to open short positions in order to fall to the support of 1.2401. It is worth paying attention to the quick movement down from the 1.2463 level, since in the absence of activity on the part of the bears, GBP/USD may continue to grow. In this case, it is best to return to short positions after testing the highs of 1.2508 and 1.2557, counting on a downward correction of 30-40 points within a day. An equally important task for sellers will be to break through and consolidate below 1.2401 support, around which the moving averages also pass. This will increase the pressure on the pair and lead to the renewal of last week's lows in the areas of 1.2305 and 1.2266, where I recommend taking profits.

analytics5eb8ee22ed810.jpg

Signals of indicators:

Moving averages

Trading is conducted above 30 and 50 moving average, which indicates the likelihood of forming an upward correction.

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 upper border of the indicator at 1.2455 will result in a new bullish momentum. In case the pair falls, you can buy from its lower border indicator in the region of 1.2360.

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

EUR/USD: plan for the European session on May 11. Bulls brace to continue pushing the euro, but breakout of 1.0873 is necessary

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

The latest Non-Farm Employment Change report turned out to be better than economists' forecasts, which held back the pair from another sell-off and resulted in a slight strengthening of the euro. However, in general, the situation has not changed, and trading has remained in the side channel. Forming a false breakout in the support area of 1.0824 was a good signal to open long positions, but we did not reach the goal of 1.0882, as a result, the bullish momentum faded. At the moment, all attention will be focused on the 1.0873 resistance and the behavior of buyers at this level. If in the first half of the day it is possible to gain a foothold above this range, a new wave of growth to the highs of 1.0923 and 1.0972 is not excluded, where I recommend taking profits. Today, there is also no important fundamental statistics, which can serve as a reason to increase long positions in the euro. An equally interesting signal to buy the euro is forming a false breakout in the support area of 1.0819. If there is no bullish activity, it is best to postpone long positions in EUR/USD until the update of the larger low of last week in the area of 1.0771.

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

The bears failed to emerge last Friday, and did not even try to return to the market after data on a sharp increase in the US unemployment rate, which was quite expected. In the first half of the day, sellers will most likely make an attempt to return EUR/USD to the 1.0819 level, but I recommend opening short positions from it only after consolidating below this range in the hope of falling to a larger low of 1.0771 last week, where I recommend taking profits. If the bulls continue to push the market up, it is best to return to short positions only after the forming a false breakout in the resistance area of 1.0872, but you can sell EUR/USD immediately on the rebound from a larger high of 1.0923 while expecting a decrease of 30-35 points within the day.

analytics5eb8e9d73a5a7.jpg

Signals of indicators:

Moving averages

Trading is carried out a little 30 and 50 moving average, but this only speaks of equal opposition between buyers and sellers.

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 upper border of the indicator at 1.0865 may lead to a sharp increase in the euro. A break of the lower border at 1.0819 will lead to a more serious decline in the pair.

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

EUR/USD: plan for the European session on May 11. Bulls brace to continue pushing the euro, but breakout of 1.0873 is necessary

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

The latest Non-Farm Employment Change report turned out to be better than economists' forecasts, which held back the pair from another sell-off and resulted in a slight strengthening of the euro. However, in general, the situation has not changed, and trading has remained in the side channel. Forming a false breakout in the support area of 1.0824 was a good signal to open long positions, but we did not reach the goal of 1.0882, as a result, the bullish momentum faded. At the moment, all attention will be focused on the 1.0873 resistance and the behavior of buyers at this level. If in the first half of the day it is possible to gain a foothold above this range, a new wave of growth to the highs of 1.0923 and 1.0972 is not excluded, where I recommend taking profits. Today, there is also no important fundamental statistics, which can serve as a reason to increase long positions in the euro. An equally interesting signal to buy the euro is forming a false breakout in the support area of 1.0819. If there is no bullish activity, it is best to postpone long positions in EUR/USD until the update of the larger low of last week in the area of 1.0771.

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

The bears failed to emerge last Friday, and did not even try to return to the market after data on a sharp increase in the US unemployment rate, which was quite expected. In the first half of the day, sellers will most likely make an attempt to return EUR/USD to the 1.0819 level, but I recommend opening short positions from it only after consolidating below this range in the hope of falling to a larger low of 1.0771 last week, where I recommend taking profits. If the bulls continue to push the market up, it is best to return to short positions only after the forming a false breakout in the resistance area of 1.0872, but you can sell EUR/USD immediately on the rebound from a larger high of 1.0923 while expecting a decrease of 30-35 points within the day.

analytics5eb8e9d73a5a7.jpg

Signals of indicators:

Moving averages

Trading is carried out a little 30 and 50 moving average, but this only speaks of equal opposition between buyers and sellers.

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 upper border of the indicator at 1.0865 may lead to a sharp increase in the euro. A break of the lower border at 1.0819 will lead to a more serious decline in the pair.

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

GBP/USD Intraday Projection High and Low Of The Day For MAY 11, 2020

analytics5eb8d990caff6.jpg

The intraday high and low from the Central Bank Dealer Range (CBDR) usually form at STDV 2-STDV 4 in the normal condition market but sometimes can reach the STDV 5-STDV 6. Here are today's levels:

STDV 10 - 1.2673.

STDV 9 - 1.2648.

STDV 8 - 1.2623.

STDV 7 - 1.2598.

STDV 6 - 1.2573.

STDV 5 - 1.2548.

STDV 4 - 1.2523.

STDV 3 - 1.2498.

STDV 2 - 1.2473.

STDV 1 - 1.2448.

CBDR - 1.2423.

==================

CBDR - 1.2398.

STDV 1 - 1.2373.

STDV 2 - 1.2348.

STDV 3 - 1.2323.

STDV 4 - 1.2298.

STDV 5 - 1.2273.

STDV 6 - 1.2248.

STDV 7 - 1.2223.

STDV 8 - 1.2198.

STDV 9 - 1.2173.

STDV 10 - 1.2148.

Pay attention to the level between today's & yesterday range at 1.2598, 1.2148 & the previous day high 1.2466 with the previous day low 1.2352.

(Disclaimer)

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

Control zones for USDCHF on 05/11/20

Work within the accumulation zone formed last month is the main one. Favorable prices for selling the instrument were received at the end of last week, so holding a short position and new entries in the sale will be the main ones in the first half of this week. The decline target is last week's low.

analytics5eb8e4cfb5d1f.jpg

Work within the accumulation zone involves consolidating sales at the lower boundary and finding favorable prices for the purchase in case of large demand.

Selling from current marks is still profitable, as it enables you to enter a position with a favorable risk-to-profit ratio. Cancellation of the downward model will occur if today's trading closes above the 0.9773 level. This will open the way for the pair to grow in the monthly control zone of May. The probability of a reversal model is 25%, which makes it secondary/support.

analytics5eb8e4e2907f8.jpg

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

Forecast for EUR/USD on May 11, 2020

EUR/USD

Friday's release of US employment data did not provoke a strong market reaction, as it did on Wednesday with data from ADP. Unemployment rose from 4.4% to 14.7% in April, but it was below the forecasted 16.0%, in the non-agricultural sector there was a decrease of 20.5 million jobs, but this indicator was better than the forecast of 22.0 million, which was accepted by investors as good situational data. On the contrary, in Germany the data turned out to be worse than the forecast: the trade balance for March fell from 21.4 billion euros to 12.8 billion while expecting 19.0 billion euros. As a result, the euro traded in a moderate range of 60 points and closed the day with a symbolic increase of 6 points.

The price is still below the red balance indicator line on the daily chart, the price reached this line last Friday. The Marlin oscillator reached the boundary of the growth territory, a downward reversal of the signal line is possible from the zero line.

analytics5eb8c7be1f10a.jpg

The upper shadow of the Friday extreme candle only touched the resistance of the indicator balance line on the four-hour chart, copying the pattern of the daily timeframe.

analytics5eb8c7d12b0d8.jpg

This is a condition for maintaining a declining trend. In any case, until the near future, there is no news that can overcome the Friday release from the Ministry of Labor. Today, we can expect news in the form of data on the volume of industrial production in Italy in March, the forecast for it is -20.0% after -1.2% in February. Industrial production of the entire euro area will be released on Wednesday, economists forecast -12.0%, a report on industrial production in the US will be released on Friday - a forecast of -11.3%. Although not by much, the situation in the US is better.

The signal line of the Marlin oscillator is slightly higher than the neutral line, while the market remains neutral. A full condition for the price to fall further is to overcome the Thursday low of 1.0767. The goal remains the same - 1.0595.

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

Forecast for AUD/USD on May 11, 2020

AUD/USD

The Australian dollar grew by 36 points. The aussie can continue to grow to the 0.6665 level (the September 2019 low, December 2018 low), and then a double divergence will form on the daily chart on the Marlin oscillator, which will soon turn the price down.

analytics5eb8c522bfaf9.jpg

If the price returns to the nearest support of the embedded line of the price channel at around 0.6508, the option with the price increase is canceled, the price will go to support at around 0.6358. Below this level is the second target and strong support on the MACD line at around 0.6258. Overcoming this level turns the trend into a medium-term decline.

analytics5eb8c535cbe91.jpg

The price is above both indicator lines, the Marlin oscillator in the zone of positive values is an upward trend on the four-hour chart. Carefully observe this growth and look forward to a price reversal in the region of 0.6665.

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

Forecast for USD/JPY on May 11, 2020

USD/JPY

So, the market reversed the starting position of the USD/JPY pair to a May 6 fall. The price turned up in the following days, and it went to the key level of 107.50 this morning, overcoming which opens up the prospect of growth to 111.50 - to the upper border of the price channel, built on a weekly timeframe.

analytics5eb8c32a25431.jpg

The signal line of the Marlin oscillator is already close to moving into the growing trend zone But before the expected signal, more than 70 points. At the same time, the risk of a price return under the immediate support of the price channel 106.53 remains, which is also today's low. Consolidation under the level again opens the target of 105.10.

analytics5eb8c33cc12b9.jpg

The price is completely in an upward trend on the four-hour chart, which slightly raises the chances of growth. We are waiting for the development of events in the uncertainty range of 106.53-107.50.

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

Overview of the EUR/USD pair. May 11. In America, lawsuits are filed against China for trillions of dollars. Legally, they

4-hour timeframe

analytics5eb8b295dbe28.jpg

Technical details:

Higher linear regression channel: direction - downward.

Lower linear regression channel: direction - downward.

Moving average (20; smoothed) - sideways.

CCI: -18.1735

On Monday, May 11, the EUR/USD currency pair starts with an upward correction against a downward trend. However, this is only a formality. In fact, the quotes of the euro/dollar pair pushed off from the lower border of the side channel, limited by the levels of 1.0750 and 1.1000, and began an upward movement, respectively, to the upper line of the channel. Thus, based on this scenario, we believe that in the first days of the new week, the moving average line will be overcome, which will change the trend in the short term to an upward one. It will be possible to count on the formation of a new trend only when the pair leaves the current channel.

There are few macroeconomic publications scheduled for the first trading day. Thus, volatility on this day may be weak. Market participants will only have to track various fundamental information, which is very interesting in itself but does not have any effect on the movement of the pair. For example, this is a continuous stream of data from the White House or personally from Donald Trump. We have repeatedly noticed that if you read Trump's comments in a row, without temporary breaks, you can assume that they were given by completely different people who do not even live in the same state. They are so different from each other, and sometimes they just contradict each other. Moreover, it often happens that the US President comments on something and after some time his words are refuted by more competent representatives of this sphere. Recently, the most important topic is "coronavirus". And all of Trump's comments about the disease were broken down and criticized by all US medical professionals. Only the country's chief epidemiologist, Anthony Fauci, has repeatedly refuted the words of Donald Trump, putting the US leader in a very awkward position. In the end, Fauci abruptly went into self-isolation, saying that he had been in contact with an infected White House employee. As far as this can be true, judge for yourself.

Meanwhile, Americans who are very fond of suing are starting to do their favorite thing about China. It is noted that several lawsuits have already been filed against the Chinese authorities in American courts, each of which offers Beijing to compensate for the losses of certain individuals, companies, states or the entire country from the "coronavirus" epidemic, which, according to the plaintiffs, is China's fault. It is exciting, especially given the principle of sovereign immunity, which is enshrined in international law and involves the disobedience of any country to the courts of other countries. However, in the state of Florida, 2 lawsuits were filed against the Chinese province of Hubei and the city of Wuhan, as well as the Chinese government, by the law companies Lucas-Compton and Berman Law, which is associated with Donald Trump and Joe Biden. The total amount of claims is 6 trillion dollars. A $ 20 trillion lawsuit has been filed in a Texas district court by a private lawyer who believes that the Chinese military created the COVID-2019 virus as a biological weapon. Thus, according to Larry Kleiman, China has committed an act of international terrorism and used weapons of mass destruction. Similar lawsuits have been filed in other states. We have already said that Donald Trump urgently needs to find fault for his own mistakes and frivolous attitude to the "coronavirus", thanks to which the quarantine was introduced too late. We are not defending China, but the US President has elections and possible re-elections at stake, and at this time, his position is not the most favorable. Joe Biden's ratings are higher, which could cost Trump a victory. Thus, the US President needs to "whitewash", and this can only be done in one way: the Americans must believe that China is to blame, and at the same time that Joe Biden is a friend of China. Thus, it is China that can become the savior of Donald Trump, but the propaganda wheel must work extremely effectively. It is possible that the lawsuits filed are part of this very propaganda, creating the impression that it is the American population that believes China is guilty. However, according to international law, no state in the world can claim damages from China. This is obvious and clearly spelled out in international charters. Thus, all claims filed in the United States will remain without compensation in any case. And we get a situation similar to the situation with the impeachment of Donald Trump. It was clear to the Democrats from the very beginning, like everyone else, that Trump could not be removed from his post since most of the members of the Senate are Republicans who would not remove their party members from their posts. However, the whole thing was intended (by the Democrats) to lower Trump's reputation. The same will now happen with China. The more lawsuits are filed against him, which will not have any effect, the more countries speak out against China, the higher the chances that the number of Americans who believe in China's guilt will be enough for the elections in November 2020. And the most important thing! Washington certainly has certain levers of pressure on China, but they will entail not compensation for damage from the "coronavirus", but a new aggravation of relations between Beijing and Washington. The United States can, for example, under the pretext of China's "proven" guilt in the global epidemic, confiscate Chinese property on US territory. However, China can respond in kind. Given that a huge amount of American companies' production capacity is concentrated in China, it is still unknown who will benefit from this step. Further, Washington may impose new trade sanctions against China, but Beijing will respond immediately with mirror measures. Thus, absolutely any transition from words to deeds will only lead to a new round of conflict between America and the PRC. The majority of world experts, political scientists, and economists share this opinion, They say with one voice that the chances of all filed claims are zero, and "pressure" on China will only be possible collectively if a large number of countries express claims to Beijing.

Thus, a new round of conflict has not yet begun, but it is unlikely that Washington and Donald Trump personally will leave everything as it is. It is possible that in the near future we will see a new conflict between the US and China, which will also negatively affect the world economy, which will already suffer from the pandemic in any case. From a technical point of view, both channels of linear regression are directed downward, so the trend is now downward. However, the side channel remains a priority.

analytics5eb8b2ac31196.jpg

The average volatility of the euro/dollar currency pair as of May 11 is 75 points. Thus, the indicator has decreased slightly and now its value is characterized as "average". Today, we expect quotes to move between the levels of 1.0763 and 1.0913. Turning the Heiken Ashi indicator down may signal the end of the upward correction cycle.

Nearest support levels:

S1 – 1.0742

S2 – 1.0620

S3 – 1.0498

Nearest resistance levels:

R1 – 1.0864

R2 – 1.0986

R3 – 1.1108

Trading recommendations:

The EUR/USD pair continues to be adjusted. Thus, sales of the pair with targets in the area of 1.0750-1.0740 remain relevant now, if there is a rebound from the moving average line. It is recommended to consider buying the euro/dollar pair not before the price is re-anchored above the moving average line with the goals of 1.0913 and 1.0986.

Explanation of the illustrations:

The highest linear regression channel is the blue unidirectional lines.

The lowest linear regression channel is the purple unidirectional lines.

CCI - blue line in the indicator window.

Moving average (20; smoothed) - blue line on the price chart.

Murray levels - multi-colored horizontal stripes.

Heiken Ashi is an indicator that colors bars in blue or purple.

Possible variants of the price movement:

Red and green arrows.

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

Control zones for USDJPY on 05/11/20

The downward medium-term model remained unfinished last week. Today the pair is testing the first resistance zone, which can cause the downward movement to resume. To sell the instrument from WCZ 1/4 107.00-106.91, it is necessary to form an Absorption pattern at the hourly level or higher. If this happens, then the target of the downward movement will again be the weekly control zone 105.69-105.33.

analytics5eb8be17718a9.jpg

Work in a downward direction remains a priority, so any growth should be considered for forming a pattern to sell.

An alternative model will develop if today's trading closes above the WCZ 1/4. This will pave the way for a deeper correction model. The growth target will be WCZ 1/2 108.02-107.83, where the most favorable prices for selling the instrument are located.

analytics5eb8be2a08d05.jpg

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 USDCAD on 05/11/20

The downward movement on the pair is a priority. Any growth must be used to find favorable selling prices. The first resistance will be WCZ 1/4 1.3990-1.3982. When testing this zone, it will be possible to enter a short position. The target of the downward movement is still the weekly control zone 1.3867-1.3839, you can consolidate a part of the profit when this is achieved.

analytics5eb8bfede73c9.jpg

Work in the downward direction may become the main one in the first half of the week, however, it must be taken into account that the monthly control zone in May is below the April low, which could become an obstacle for further decline.

An alternative model for forming an accumulation zone will develop if today's trading closes above the WCZ 1/4. This will result in forming an accumulation zone, however, the bearish pattern will not be canceled yet. It is important to understand that any growth up to the WCZ 1/2 1.4074-1.4059 will be corrective and will also enable you to enter the sale.

analytics5eb8c00095d00.jpg

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

EUR/USD. Preview of the week. America opens 43 of the 50 states and is preparing to restart the economy. European Union will

analytics5eb8ab7f1a94b.jpg

A new trading week begins, during which a lot of important macroeconomic information will be published. Unfortunately, traders continue to ignore most of it, so we still do not expect a strong reaction to the reports. We also continue to believe that technical factors play a key role in pricing the euro/dollar pair. We remind traders that quotes are now stuck between levels 1.0750 - 1.1000, which form a side channel with a width of 250 points. Thus, in the coming days, the pair may continue to move to the upper boundary of this channel, that is, to the 1.1000 level.

What awaits us in the new week in fundamental terms? There will be no macroeconomic publications either in the European Union or in the United States on Monday. Thus, on the first trading day of the week, nothing should interfere with the pair's movement along a given route and for a given purpose. At the same time, volatility can be extremely low on this day. The second trading day of the week will be a little more interesting, as the consumer price index for April will be published in the United States. In normal times, this figure would trigger a 100% market reaction. However, now this is far from the most primary indicator. Thus, almost any inflation value in the United States (and judging by forecasts, it should slow down to 0.8% in annual terms and lose 0.7% in monthly terms) is unlikely to provoke an increase in movement or a reversal in the market.

The third trading day of the week will be even more interesting, as the indicator of industrial production in the European Union for March will be published. That is, for the month when the epidemic was only gaining momentum, and the index of business activity in the manufacturing sector had already collapsed, but not as much as the service sector. According to expert forecasts, in monthly and annual terms, industrial production will decrease by 12%. And in April, this figure may decline even more. Thus, together with the previously published GDP for the first quarter, we can finally determine the approximate extent of the decline in production and the economy as a whole. 12% is a gigantic figure, but traders are already accustomed to the fact that both economies, European and American, continue to break the record. Actually, there is nothing surprising in this. The most important thing is to understand how much both economies will contract, and which of them will suffer big losses. This information can help determine the long-term prospects for the euro and the dollar.

Germany will publish its consumer price index on Thursday, and, for obvious reasons, traders will brush it off. The next report on applications for unemployment benefits in the United States will also be released on the same day, which predicts an increase in the total number of initial applications by another 2.5 million, and the total number of secondary can grow to 25.65 million.

Data on GDP in Germany and the European Union for the first quarter will be released on Friday, preliminary values of which were published several weeks ago, so negative values will not come as a surprise to traders. In the United States - retail sales, industrial production. The first indicator risks losing about 12% in monthly terms, the second - 12.3% in monthly terms. The industrial production indicators of the EU and the US can be compared this week. In monthly terms, state production fell by 5.4% in March, and a reduction of more than 12% is expected in the European Union. In annual terms, the US indicator lost 5.5%, while the European one may decrease by 13.6%. Thus, if the forecasts for the European indicator come true, it will be safe to say that in Europe the reduction will be two and a half times higher than in the United States. But the unemployment rate in the United States is incommensurably higher...

Most states will open in America (43 out of 50) in the upcoming week. "Opening" means the complete or partial removal of quarantine measures, the resumption of business and companies. Thus, despite the epidemic, which continues to run amok in the United States, President Donald Trump can be said to have achieved his goal. The total number of infections in the US is already 1.3 million. 200 thousand people recovered, 79 thousand died. According to various experts, the US economy and Donald Trump simply can no longer afford to be in quarantine. Thus, despite the high risks of the second wave of the epidemic, the US economy will begin to restart. And what will come of this in terms of the growth rate of the spread of the COVID-2019 virus and in terms of the rate of economic recovery, we will be able to find out in the coming weeks. At the same time, US chief epidemiologist Anthony Fauci, who, one might say, became famous in recent months due to the fact that he regularly refutes Donald Trump's statements, goes into self-isolation after having contact with a coronavirus infected White House employee . Fauci will continue to work from home and take daily tests for the coronavirus. Recent tests have shown that he is not infected.

analytics5eb8ab9218670.jpg

The technical picture of the EUR/USD pair shows that the upward movement can continue with the target level of 1.0990 (1.10), which is the upper border of the side channel. Thus, we expect overcoming the Senkou Span B and Kijun-sen lines with the subsequent upward movement in the coming days. At the same time, a rebound from the critical line may trigger a resumption of the downward movement with the target of 1.0750. And overcoming the 1.0750 level will form a new downtrend.

Trading recommendations for the EUR/USD pair:

We believe that the influence of the fundamental background may be present next week, however, there are no concrete grounds for such a hypothesis. Trading is still recommended on a 4-hour timeframe. Overcoming Senkou Span B and Kijun-sen lines will enable opening long positions with the target of 1.0990.

Explanations for illustrations:

Ichimoku indicator:

Tenkan-sen is the red line.

Kijun-sen is the blue line.

Senkou Span A - light brown dotted line.

Senkou Span B - light purple dashed line.

Chikou Span - green line.

Bollinger Bands Indicator - 3 yellow lines.

The MACD indicator is a red line and a histogram with white bars in the indicators window.

Classic support / resistance levels - red and gray dashed lines with price symbols.

Pivot level - yellow solid line.

Volatility levels are red solid lines.

Possible price movement options:

Red and green arrows.

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