AUDJPY approaching upside confirmation, possible bounce!

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Trading Recommendation

Entry: 75.92

Reason for Entry: 61.8% fib retracement

Take Profit :76.75

Reason for Take Profit: Horizontal swing high

Stop Loss:74.88

Reason for Stop loss: Horizontal swing low

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Fractal analysis of major currency pairs on August 5

For the euro/dollar pair, the main development of the downward structure from July 21 is expected after the breakdown of the level of 1.1678. The level of 1.1842 is the key support. For the pound/dollar pair, we expect the continuation of the downward movement after the breakdown of the level of 1.3044. The level of 1.3136 is the key support. For the dollar/franc pair, the price is in the correction from the ascending structure. The level of 0.9112 is the key support. For the dollar/yen pair, the price is forming a pronounced potential for the top of July 31. The level of 106.20 is the key resistance, while the level of 105.33 is the key support. For the euro/yen pair, we are following the ascending structure from July 24. The main movement is expected after the breakdown of the level of 125.11. The level of 123.82 is the key support. For the pound/yen pair, we expect the continuation of the upward movement after the breakdown of the level of 138.95. The level of 137.73 is the key support.

Forecast for August 5:

Analytical overview of currency pairs on the H1 scale:

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The key levels for the euro / dollar pair on the H1 scale are: 1.1911, 1.1842, 1.1805, 1.1733, 1.1678, 1.1613 and 1.1568. Here, the price forms the potential for the downward movement from July 31st. CThe continuation of the downward movement is expected after the breakdown of the level of 1.1733. In this case, the target is 1.1678. There is consolidation near this level. The breakdown of the level of 1.1678 will lead to a pronounced downward movement. Here, the target is 1.1613. For the potential value for the bottom, we consider the level of 1.1568. Upon reaching which, we expect consolidation, as well as an upward pullback.

A short-term upward movement is possible in the range of 1.1805 - 1.1842. The breakdown of the last level will encourage the formation of an upward structure. Here, the potential target is 1.1911.

The main trend is the formation of a potential for a downward movement from July 31

Trading recommendations:

Buy: 1.1805 Take profit: 1.1840

Buy: 1.1844 Take profit: 1.1910

Sell: 1.1733 Take profit: 1.1680

Sell: 1.1676 Take profit: 1.1615

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The key levels for the pound / dollar pair on the H1 scale are: 1.3175, 1.3136, 1.3110, 1.3044, 1.2996, 1.2943, 1.2876 and 1.2832. Here, the price is in a correction and forms a potential for a downward cycle from July 31. The downward movement is expected to continue after the breakdown of the level of 1.3044. In this case, the target is 1.2996. The breakdown of which will lead to the development of a downward cycle. Here, the first target is 1.2943. Overcoming the level of 1.2943 should be accompanied by a pronounced downward movement to the level 1.2876. We consider the level of 1.2832 as a potential value for the bottom. Upon reaching which, we expect consolidation, as well as an upward pullback.

The range of 1.3110 - 1.3136 is the key support for the downward structure and the price passing this range will lead to the formation of a local upward structure. In this case, the potential target is 1.3175.

The main trend is the upward cycle from July 14, the stage of correction

Trading recommendations:

Buy: 1.3110 Take profit: 1.3134

Buy: 1.3137 Take profit: 1.3175

Sell: 1.3044 Take profit: 1.2996

Sell: 1.2994 Take profit: 1.2944

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The key levels for the dollar / franc pair on the H1 scale are: 0.9340, 0.9297, 0.9275, 0.9240, 0.9187, 0.9146 and 0.9112. Here, we are following the ascending structure from July 31. At the moment, the price is in correction. We expect the upward movement to resume after the breakdown of the level of 0.9187. In this case, the first target is 0.9240. The breakdown of which will allow us to count on the movement to 0.9275. Price consolidation is in the range of 0.9275 - 0.9297. For the potential value for the top, we consider the level of 0.9340. Upon reaching which, we expect consolidation, as well as a downward pullback.

A short-term downward movement is possible in the range of 0.9146 - 0.9112, hence we expect a key upward reversal. The breakdown of the level of 0.9112 will lead to the cancellation of the upward structure. In this case, the potential target is 0.9055.

The main trend is the upward structure of July 31

Trading recommendations:

Buy : 0.9188 Take profit: 0.9240

Buy : 0.9242 Take profit: 0.9275

Sell: 0.9110 Take profit: 0.9055

Sell: Take profit:

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The key levels for the dollar / yen pair on the scale are : 107.99, 107.51, 106.78, 106.19, 105.61, 105.33, 104.91 and 104.21. Here, the price is forming a potential for the July 31 upward cycle. The continuation of the upward movement is expected after the breakdown of the level of 106.19. In this case, the target is 106.78. There is consolidation near this level. The breakdown of the level of 106.80 will lead to the development of a pronounced upward movement. In this case, the target is 107.51. We consider the level of 107.99 as a potential value for the top. Upon reaching which, we expect consolidation, as well as a downward pullback.

A short-term downward movement is possible in the range of 105.61 - 105.33. The breakdown of the last value will lead to a deep correction. Here, the target is 104.91. Upon reaching which, we expect consolidation and its breakdown will lead to the cancellation of the upward structure from July 31.

The key trend: building capacity for the top from July 31

Trading recommendations:

Buy: 106.20 Take profit: 106.74

Buy : 106.80 Take profit: 107.50

Sell: 105.60 Take profit: 105.35

Sell: 105.30 Take profit: 104.94

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The key levels for the Canadian dollar / US dollar pair on the H1 scale are: 1.3374, 1.3338, 1.3315, 1.3280, 1.3248, 1.3230 and 1.3189. Here, we are following the development of the downward structure from July 30. The continuation of the downward movement is expected after the breakdown of the level of 1.3280. In this case, the target is 1.3248. Price consolidation in the range of 1.3248 - 1.3230. We consider the level of 1.3189 as a potential value for the bottom. Upon reaching which, we expect an upward pullback.

A short-term upward movement is possible in the range of 1.3315 - 1.3338. The breakdown of the last value will lead to a deep correction. Here, the target is 1.3374. This is the key support level for the downward structure.

The main trend is the downward cycle from July 30

Trading recommendations:

Buy: 1.3315 Take profit: 1.3338

Buy : 1.3340 Take profit: 1.3374

Sell: 1.3280 Take profit: 1.3248

Sell: 1.3230 Take profit: 1.3190

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The key levels for the Australian dollar / dollar pair on the H1 scale are : 0.7231, 0.7206, 0.7147, 0.7113, 0.7081. 0.7037 and 0.7007. Here, the price forms a potential for a downward movement from July 31. At the moment, the price is close to the cancellation of this structure, for which a breakdown of the level of 0.7206 is required. In this case, the first potential target is 0.7231. The downward movement is expected. A short-term downward movement is expected in the range of 0.7113 - 0.7081. The breakdown of the last level will lead to a pronounced downward movement. Here, the target is 0.7037. We consider the level of 0.7007 as a potential value for the bottom. Upon reaching which, we expect consolidation, as well as an upward pullback.

The main trend is the formation of potential for the low of July 31, deep correction

Trading recommendations:

Buy: 0.7206 Take profit: 0.7230

Buy: Take profit:

Sell : 0.7145 Take profit : 0.7115

Sell: 0.7110 Take profit: 0.7085

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The key levels for the euro / yen pair on the H1 scale are: 126.32, 125.80, 125.54, 125.11, 124.81, 124.37 and 123.82. Here, we are following the July 24 upward structure. A short-term upward movement is expected in the range of 124.81 - 125.11. The breakdown of the last value will lead to a pronounced upward movement. Here, the target is 125.54. There is consolidation in the range of 125.54 - 125.80. We consider the level of 126.32 as a potential value for the top. Upon reaching which, we expect a downward pullback.

A short-term downward movement is expected in the range of 124.37 - 123.82. The latter being the key support for the upside.

The main trend is the upward structure from July 24

Trading recommendations:

Buy: 124.81 Take profit: 125.10

Buy: 125.14 Take profit: 125.54

Sell: 124.30 Take profit: 123.85

Sell: Take profit:

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The key levels for the pound / yen pair on the H1 scale are : 140.25, 139.65, 138.95, 138.15, 137.73 and 137.29. Here, we are following the July 17 upward structure. The continuation of the upward movement is expected after the breakdown of the level of 138.95. In this case, the potential target is 139.65. There is consolidation near this level. For the potential value for the top, we consider the level of 140.25. Upon reaching which, we expect consolidation, as well as a downward pullback.

A short-term downward movement is possible in the range of 138.15 - 137.73. The breakdown of the last value will lead to a deep correction. Here, the target is 137.29. This is a key support level for the top.

The main trend is the upward structure from July 17

Trading recommendations:

Buy: 138.95 Take profit: 139.60

Buy: 139.70 Take profit: 140.25

Sell: 138.15 Take profit: 137.80

Sell: 137.70 Take profit: 137.30

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Analysis and trading recommendations for the EUR/USD and GBP/USD pairs on August 5

Trading recommendations for the EUR / USD pair on August 5

Analysis of transactions

The test of the price level 1.1785 led to a 20-pip rise in the euro, after which it slowed down due to sales and then moved towards the level of 1.1748. The pair passed about 20 points, and then reversed again afterwards.

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Good data on eurozone PPI helped the euro halt its decline against the US dollar, which weakened again due to poor performance on orders in the US manufacturing sector. Thus, the EUR / USD pair rose in the market in the afternoon.

  • Open buy positions when the quote reaches the level of 1.1823 (green line on the chart), aiming for a rise towards the level of 1.1863. Good data on the eurozone services sector will help increase the European currency today, especially if they turn out better than the forecasts. Take profit when the quote reaches a price level of 1.1863.
  • Open sell positions after the quote reaches the level of 1.1799 (red line on the chart), aiming for a drop to the level of 1.1752. However, before selling, wait for the report on the eurozone services sector, because negative data, that is, figures worse than economist forecasts, will be a factor for the euro's decline on the market. Take profit at a level of 1.1752.

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Trading recommendations for the GBP / USD pair on August 5

Analysis of transactions

The buy signal for the pound from the level of 1.3095 turned out to be unprofitable, but the sales that were formed after the quote tested the support level of 1.3059 gave over 50 pips of profit, as the pair fell to the target level of 1.3005.

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The most important report for today is the data on the UK services sector, which makes up a large part of the economy. Any growth and activity on the indicators will lead to a rise in the pound against the US dollar.

  • Open buy transactions when the quote reaches the level of 1.3104 (green line on the chart), targeting a rise to the level of 1.3142 (thicker green line on the chart). Any good data on the UK economy will support the pound to rise in the market. Take profit at a price level of 1.3142.
  • Open sell transactions after the quote reaches a price level of 1.3072 (red line on the chart), as a breakout of which will lead to a rapid decline in the daily TF. However, a larger decline in the pound needs a weak performance in the UK services sector, that is, the indicator should be worse than economists' forecasts. The target for the decline will be the price level of 1.3022, where take-profit should be placed.

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Currency market as a reflection of everything that exists (we expect EUR/USD pair to consolidate and USD/CAD pair to decline)

It is no secret that all segments of the global financial market are interconnected. If something happens, for example, some noticeable general dynamics in the stock market under the influence of events of a fundamental nature, then this will definitely affect the dynamics of the currency market, the precious metals market and further along the chain. And the change in the yield of government bonds, for example, in the States of 2-year or 10-year, and, as often happens, all together, forces the exchange rate of the US dollar to change. Moreover, all historical analogies or previously working patterns of technical analysis break down.

And now, huge stimulus measures from the Fed and the US Treasury are simply "killing" the dollar, turning it from a solid safe-haven currency into a funding currency. Extremely low interest rates, truly huge financial volumes, thrown into stimulation, will kill the dollar, making its rate lower and lower, primarily against major currencies. Moreover, there is a struggle in Congress for the future of the new measures to support ordinary Americans and business proposed by D. Trump. They are estimated to be around $ 1 trillion and whether this program is accepted or not will not help the dollar. His main verdict is the abrupt drop in Treasury yields, which has not been noted for many decades, which indicates the ongoing process of their purchases.

The fact that the dollar exchange rate depends on the Treasury dynamics has long been known, and it was fully proven once again on Monday. Positive data on manufacturing indicators in the United States led to bond sales and, as a result, to higher yields. This immediately affected the dollar rate, which began to receive support, although it did not last long. The monetary policies of the Federal Reserve and the Ministry of Finance, aimed at pumping a huge amount of liquidity into the system, smooth out all the "attempts" of the dollar to increase.

Another blow to the dollar's performance is the growing hopes for a vigorous recovery in the American, European and Chinese economies around the world. If we continue to observe generally positive figures for the economies of these countries and the euro region, and this will certainly be, then the dollar will be under another factor of influence - the demand for risky assets. To simply put it, investors will increasingly buy stocks and commodities. Against this background, the single currency will definitely enjoy increased interest and strengthen its growth against the US currency. A similar picture will be observed in other major currency pairs, however, the currencies of emerging economies will not be easy. Capital outflow from their market is likely to continue, as the assets of advanced economies in a situation like the current one are always more attractive.

In this situation, the currency market very clearly demonstrates everything that happens in the markets, accumulating these processes. The dollar acts as a clear marker of emerging trends, so its behavior is important not only in determining the future dynamics of currencies traded against it, but also as a trend in other segments of the global financial market.

Assessing the current dynamics, we believe that the global weakening of the dollar will continue after the publication of data on employment in America.

Forecast of the day:

The EUR/USD pair is likely to consolidate in the range of 1.1700-1.1900 by the end of this week in anticipation of the release of US employment data.

The USD/CAD pair declined below the support level of 1.3330 on a wave of positive manufacturing data from China, the US and Europe, supporting oil prices. This pair is expected to continue to decline to the level 1.3200.

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Analysis and trading signals for beginners. How to trade the GBP/USD pair on August 5? Plan for opening and closing deals

Hourly chart of the GBP/USD pair

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The technical picture for the GBP/USD pair is starting to get confusing. Sellers seem to have clearly indicated their desire to trade for a fall, however, the price moves down somehow not too willingly. And if the previous high of 1.3107 is updated today, then further downward movement will be questioned. In this case, one can expect either the resumption of the upward trend or flat (sideways movement, as a rule, in a narrow price range). We still hope that sellers will pull themselves together and continue being cautious of selling the pair. However, this will require a new signal for these same sales. In our case, the MACD indicator turns down. You are not recommended to sell the pair without it. At the same time, the upward trend may resume, and in order to try to work with this movement, a signal will also be required, for example, a breakout of some important level.

There was not much news in the UK on Tuesday. Thus, novice traders could trade solely based on technical factors and signals. The index of business activity in Britain's services sector will be released today, but we recommend paying attention to the US report on ADP, which will be released in the afternoon. Exceeding the forecast for it (+1.5 million) could cause the dollar to rise (that is, a fall in the euro/dollar and pound/dollar pairs). We would also like to draw attention to a long term factor that may start to support the US currency. The coronavirus, but not in America, but in the European Union. According to some reports, there are signs of a second wave in Europe. Of course, let's hope that this is not the case, since we are talking about the life and health of people. However, if a new wave of the epidemic begins in Europe, this could put an end to further growth in the euro and pound sterling. So far, there have been only minor spikes in disease in Germany, Spain and Switzerland.

The following scenarios are possible on August 5:

1) A buy signal formed yesterday (the MACD indicator turned up), but we are not very interested in buying right now. We believe that the upward trend is over, and if this is not the case, we recommend buying the pair only if the 1.3123 level is overcome, which is located just above the two previous local highs. But even in this case, we recommend closing purchases around the 1.3178 level.

2) Selling, from our point of view, can be considered after the MACD indicator reverses downward, which may occur somewhere near the upward trend line, which the price successfully crossed yesterday. In this case, we recommend trading the pair down with the target of 1.2996, which makes it possible to earn about 80 points.

What's on the chart:

Support and Resistance Price Levels - Levels that are targets when buying or selling. You can place Take Profit levels near them.

Red lines - channels or trend lines that display the current trend and show which direction it is preferable to trade now.

Arrows up/down - indicate when you reach or overcome which obstacles you should trade up or down.

MACD indicator is a histogram and a signal line, the crossing of which is a signal to enter the market. It is recommended to use in combination with trend lines (channels, trend lines).

Important speeches and reports (always contained in the news calendar) can greatly influence the movement of a currency pair. Therefore, during their exit, it is recommended to trade as carefully as possible or exit the market in order to avoid a sharp price reversal against the previous movement.

Beginners in the forex market should remember that every trade cannot be profitable. The development of a clear strategy and money management are the key to success in trading over a long period of time.

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

Analysis and trading signals for beginners. How to trade the EUR/USD pair on August 5? Plan for opening and closing deals

Hourly chart of the EUR/USD pair

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The EUR/USD pair made another, absolutely unsuccessful attempt to continue moving down on Tuesday. However, having gone down only 70 points and not even reaching the first target from yesterday, sellers retreated and the US dollar began to fall again. Thus, from our point of view, the downward movement is still more promising. For several reasons. Among the technical reasons, we still highlight the need for correction. In total, the euro/dollar pair went down 209 points at the moment, and before that up - 700. That is, the current size of the correction is frankly small. At the same time, we assume that the sellers allowed the pair to pull back and today they will start selling it with renewed vigor. To do this, we have built a grid of Fibonacci levels, which shows that the current retracement size is 61.8%. Around this level, or about 76.4%, we expect the pair to reverse down and fall to at least 1.1747. Potential rebound and reversal locations are marked with circles.

Novice traders could not safely open the calendar of economic events on Tuesday, as it was empty. The situation will be much more interesting today. First, there will be PMIs in the service sectors in European countries and the European Union as a whole, later - retail sales in the EU, and PMIs in the US services sector and the ADP report on changes in the number of employees in the private sector in the afternoon. We advise traders to focus on only two reports. The first is the change in retail sales in the EU. This indicator is important because it shows how consumer spending has changed (increased or decreased during the reporting period). If they grow, it is good for the economy; if not, it is bad. The forecast speaks of a reduction of 0.5% in June, which can hardly be considered a positive moment. The second is the ADP report, which will show how the number of workers in America has changed. The forecast is +1.5 million, which at first glance seems to be a pretty good value. However, after the number of employees dropped by 23 million in May and June, the +1.5 million does not look solid. Therefore, we believe that the macroeconomic background will be neutral today.

The following scenarios are possible on August 5:

1) Purchases are no longer relevant since the price has left the ascending channel. Thus, in order to trade the EUR/USD pair upward, new technical constructions are now needed (trend lines, channels, triangles, and others). There are none now, so novice traders can trade the pair up at their own peril and risk. The last upward reversal of the MACD indicator gave a signal with the 1.1832 target, and at the moment the pair went up about 40 points after it formed.

2) Selling the currency pair is much more promising now, so we recommend waiting for the MACD indicator to turn down around the levels of 1.1827 (61.8%) and 1.1858 (76.4% Fibonacci), and then open new sales with a target of 1.1747. If a rebound from the indicated levels does not happen and they are overcome, then the option of selling the pair is canceled for today.

What's on the chart:

Support and Resistance Price Levels - Levels that are targets when buying or selling. You can place Take Profit levels near them.

Red lines - channels or trend lines that display the current trend and show which direction it is preferable to trade now.

Arrows up/down - indicate when you reach or overcome which obstacles you should trade up or down.

MACD indicator is a histogram and a signal line, the crossing of which is a signal to enter the market. It is recommended to use in combination with trend lines (channels, trend lines).

Important speeches and reports (always contained in the news calendar) can greatly influence the movement of a currency pair. Therefore, during their exit, it is recommended to trade as carefully as possible or exit the market in order to avoid a sharp price reversal against the previous movement.

Beginners in the forex market should remember that every trade cannot be profitable. The development of a clear strategy and money management are the key to success in trading over a long period of time.

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

Brief trading recommendations for EUR/USD on 08/5/20

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The EUR/USD currency pair follows the borders of the blue channel with surgical precision, where the role of resistance and support is played by the trend lines numbered 1 and 2, consistently producing a rebound.

Following the paths of the specified borders consistently brings profit, and this strategy is relevant until the trend lines are broken.

Based on the analysis of price behavior relative to trend lines, it can be assumed that the existing convergence with line number 1 (area of 1.1820/1.1830) can play the role of resistance, reversing the quote in the direction of trend line number 2 (1.1755/1.1765).

We considered one of the possible scenarios for the development of the market, but with the help of technical analysis, a trader can create options for alternative development in advance, which will help in any situation to be on the clock of the market.

Break of the trend line # 1 / # 2

There is nothing eternal in the market just like in life. Trends change sooner or later and price levels break through. Trend line number one (#1) may not play the role of resistance, and the slope of the ascending channel may change, as it happened in the history of the yellow channel.

Based on the above judgment, the alternative scenario with trend line #1 considers its breakdown if the price consolidates above 1.1840/1.1850. This development does not exclude an update of the local maximum on July 31 - 1.1900.

On the other hand, trend line # 2 is the middle part of the ascending channel (1 + 2 + 3), and its breakdown is a typical structure of the price movement from border 1 towards the lower frame 3.

Based on the logic of the behavior of market participants in the price channel, it can be assumed that if the quote is consolidated below 1.1745 / 1.1750, a full-fledged price movement from frame 1 to frame 3 (1.1700 / 1.1710) may well come.

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Technical Analysis of GBP/USD for August 5, 2020:

Technical Market Outlook:

The up trend on GBP/USD pair is developing despite some local pull-backs as the bulls has broken through the short-term trend line resistance located around the level of 1.3080. The local high was made at the level of 1.3098 so far, but the market is bouncing from the oversold conditions, so the bulls might try to attack the recent swing high located at the level of 1.3169 soon. Only a sustained breakout below the level of 1.2980 would change the short-term market sentiment and deepen the correction towards the level of 1.2869.

Weekly Pivot Points:

WR3 - 1.3655

WR2 - 1.3405

WR1 - 1.3252

Weekly Pivot - 1.2996

WS1 - 1.2877

WS2 - 1.2627

WS3 - 1.2492

Trading Recommendations:

On the GBP/USD pair the main trend is down, which can be confirmed by the down candles on the weekly time frame chart. The key long-term technical support 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 these levels is clearly violated, the main trend might reverse (1.3518) or accelerate (1.1404).

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Technical Analysis of EUR/USD for August 5, 2020:

Technical Market Outlook:

The EUR/USD pair has started to bounce towards the technical resistance zone located between the levels of 1.1790 - 1.1822 (61% Fibonacci retracement on weekly), but did not manage to break through yet. The momentum is neutral, but the market is coming off the oversold conditions, so the local up trend might be continues soon. The key technical support is still seen at the level of 1.1655 - 1.1648 and the last swing high is located at the level of 1.1908.

Weekly Pivot Points:

WR3 - 1.2175

WR2 - 1.2036

WR1 - 1.1886

Weekly Pivot - 1.1756

WS1 - 1.1625

WS2 - 1.1507

WS3 - 1.1369

Trading Recommendations:

The EUR/USD pair confirmed the up trend, so all pull-backs and corrections should be used to accumulate the EUR. The next targets in the long-term are seen at the levels of 1.2000 - 1.2089. There is no indication of any bigger correction to come, so all the dips should be bought until the level of 1.1347 is clearly violated.

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Technical Analysis of BTC/USD for August 5, 2020:

Crypto Industry Outlook:

Among the uptrend in the cryptocurrency markets, Bitcoin's market capitalization has surpassed some large publicly traded companies such as Intel and Coca-Cola.

In the wake of the market boom in late July 2020, Bitcoin's market capitalization increased significantly, exceeding the $ 200 billion threshold. The market capitalization of the largest cryptocurrency is currently over $ 211 billion.

Consequently, Bitcoin is currently worth more than the stocks of the world's largest companies such as Intel and Coca-Cola in terms of market capitalization. On July 31, Intel and Coca-Cola shares hit market capitalization of $ 203 billion and $ 202 billion, respectively, according to Macro Trends.

Intel has experienced a significant drop in market share in recent days. After the company released disappointing third-quarter earnings forecasts on July 22, the company's market capitalization fell below $ 259bn and then lost as much as $ 45bn by July 24, Macro Trends said.

Faced with uncertainty caused by the coronavirus, the Coca-Cola beverage giant suffered a major sell-off earlier this year. In March 2020, Coca-Cola lost more than $ 90 billion in market capitalization in a month as a result of a global pandemic. The decline ultimately led to the largest decline in the company's quarterly revenue in at least 30 years. In contrast, Bitcoin has seen multiple gains this year of over $ 80 billion, or around 40%, in market capitalization from January 1, 2020.

Technical Market Outlook:

The BTC/USD market sentiment is clearly bullish, but currently, the price trades around the level of $11,000 in a narrow zone located between the levels of $10,895 - $11,317. Any violation of either of those levels will indicated a possible direction for the nearest future. The volatility is now subdued, but it might increase again once any important technical level is tested and broken. Please notice the neutral momentum that support the sideways view for the market for some time.

Weekly Pivot Points:

WR3 - $14,325

WR2 - $13,003

WR1 - $12,116

Weekly Pivot - $10,976

WS1 - $9,784

WS2 - $8,681

WS3 - $7,717

Trading Recommendations:

Due to the level of $12,000 violation, the Bitcoin is now in the up trend on the long-term time frame. The next target for bulls is seen at the level of $13,712 and $15,000. The key long-term technical support is located at the level of $7,897, but the zone around $9,500 - $10,500 is an important technical support as well.

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Technical Analysis of ETH/USD for August 5, 2020:

Crypto Industry Outlook:

Chinese tech giant Tencent has unveiled its plan to create a Blockchain-based wine traceability platform in partnership with Changyu, China's largest and oldest wine producer, local news reports.

According to Changyu, the platform is designed to track every step of the wine production and sale process, including planting, brewing, distribution and management. It issues a unique certificate, traceable to each wine bottle produced.

The entire process will be registered on the Blockchain network. The company's scannable QR codes for bottles would allow consumers to verify the authenticity of the wine. The QR code will also contain a whole set of data, such as plantation information, grape types, origin, rainfall, temperature information.

The Blockchain network is said to help distributors and retailers catch counterfeit bottles and identify bottles that have not passed quality control testing.

Technical Market Outlook:

The ETH/USD pair volatility has decreased as the pair had been seen trading in a narrow range located between the levels of $379.59 - $392.79. This is a good range for the intraday traders, so any level violation might indicate a possible direction for the future. For now the price is trading close to the recent ATH, around the level of $388 and the up trend is still being continued. The next target for bulls is seen at the level of $500. The key short-term support is seen at the level of $300. The momentum is still strong and positive, which supports the short-term bullish outlook.

Weekly Pivot Points:

WR3 - $532.98

WR2 - $470.84

WR1 - $423.16

Weekly Pivot - $365.99

WS1 - $312.04

WS2 - $255.55

WS3 - $208.47

Trading Recommendations:

Due to the violation of the level of $351, Ethereum is now in the up trend on the long-term time frame. The next target for bulls is seen at the level of $500. The key long-term technical support is located at the level of $86.10, but the zone around $300 - $308 is an important technical support as well.

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Elliott wave analysis of GBP/JPY for August 5, 2020

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We continue to look for a final push higher to 140.35 to complete blue wave iii and set the stage for a temporary sideways correction in blue wave iv towards 137.92 before the pair will rise to 141.86 and possibly even closer to 144.29 as the next major upside target.

Support is seen at 137.92 and then at 137.74.

R3: 140.35

R2: 139.80

R1: 139.20

Pivot: 138.75

S1: 138.34

S2: 137.74

S3: 137.14

Trading recommendation:

We are long GBP from 135.48 and we have our stop placed at 137.00. We will take profit on 50% of our long position at 140.25

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

Elliott wave analysis of EUR/JPY for August 5, 2020

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We are still looking for one more push higher towards resistance in the 125.58 - 125.82 area to complete wave iii and set the stage for a temporary sideways correction. Once this wave iv correction is completed more upside pressure should be expected towards at least 127.25 and likely even closer to 129.26.

Support is seen in the 124.33 - 124.57 area

R3: 125.82

R2: 125.58

R1: 125.06

Pivot: 124.57

S1: 124.33

S2: 124.23

S3: 123.78

Trading recommendation:

We are long EUR from 123.35 with our stop placed at 124.00. We will take profit on 50% of our long position at 125.50

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

Crude oil price movement, August 05, 2020.

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The crude oil is now in a narrow range while CL is likely to decline to the 41.26 and 41.00 levels. Then, oil prices may test the 42.20 level. This scenario is unlikely to occur if oil prices drop to 40.31 level. CL will continue to dip and test the 39.89 level as its first target and the 39.11 level as its secondary target.

(Disclaimer)

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

Gold Price Movement On August 05, 2010.

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As we can see, gold price is moving in a bullish bias on the 4-hour chart. We can clearly see that the price is moving in line with an up slope channel. It is confirmed by the price movement above the Moving Average. However, gold has already broken and passed 1982.49. Now, this asset needs a downward retracement as a part of the healthy uptrend. There is a possibility that Gold will go down to 1999.07 and 1991.63 before it moves up again. Since the retracement is not significant, gold may close below the 1967.56 level.

The overall trend for Gold is Bullish.

(Disclaimer)

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

Forecast for EUR/USD on August 5, 2020

EUR/USD

The euro made an attempt to rise yesterday by attacking the target level of 1.1806. But the growth occurred with the declining Marlin oscillator on the daily chart, which indicates an imminent price reversal. In fact, we can speak with relative firmness about a reversal with a movement to the lower target level of 1.1620 after the price consolidates below 1.1806.

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A price consolidation above this level may become the first sign of an alternative scenario unfolding with an increase in the target range of 1.2040/55. The signal level for such development of events is the July 31 high at the price of 1.1909. The target range may not be reached, but here the main reference point will be the Marlin oscillator, which will form a double divergence with the price.

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The price broke above both indicator lines on the four-hour chart - the red balance line and the blue MACD line. The Marlin oscillator has slightly penetrated the zone of positive values, but in conjunction with the price behavior, an increasing mood is created. It is possible for the euro to grow without breaking the main downtrend scenario to the reference level of 1.1909. At the moment, we are still waiting for the price to move below the indicator lines and the restoration of the downward movement with the first target at 1.1620.

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

Forecast for AUD/USD on August 5, 2020

AUD/USD

The Australian dollar gained 36 points yesterday thanks to the general weakening of the greenback - the US dollar index lost 0.28%. The price approached the lower border of the target range of 0.7190-0.7225 this morning.

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The signal line of the Marlin oscillator has turned up, but not so much as to stimulate the price to create a fourfold divergence. The reversal scenario for the Australian currency will remain in effect until the price leaves the target range of 0.7190-0.7225 up, followed by a medium-term decline.

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The price is trying to gain a foothold above the MACD indicator line with the support of the Marlin oscillator on the four-hour chart, which has already moved into the positive zone. It will be very difficult for the price within the target range even if it continues to rise above the 0.7225 level. Opening long positions in it is associated with increased risk. The first signal for the downward trend recovery will be the price consolidation below 0.7150.

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

Forecast for USD/JPY on August 5, 2020

USD/JPY

The dollar-yen pair dropped 24 points on Tuesday, which we regard as a technical correction after the previous growth of 230 points in two days. At the moment, the price is supported by the embedded line of the price channel. Pinning it below will open the 104.60 target again. The Marlin oscillator is moving sideways under the border of the growth territory, which can be a kind of consolidation of the indicator before the price increases. The pair's growth is still related to the main scenario.

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The price is near the support of the MACD line (105.40) on the four-hour chart, which, together with the trend line of the daily timeframe, supports the growing scenario as prevalent. Consolidating the price below 105.40 may trigger a downward scenario with the above target at 104.60. But until this consolidation has taken place, we expect growth to the 106.80 target.

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Hot forecast and trading signals for the GBP/USD pair on August 5. COT report. All factors are now on the side of the US

GBP/USD 1H

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The GBP/USD pair continued to adjust on Tuesday and managed to overcome the upward trend line as a result. Thus, we can state that buyers have taken a pause for some time and now the hour of bears has come. However, after overcoming the upward trend line, sellers almost immediately lost their positions and an upward pullback began. Despite the fact that a downward movement is now more preferable both from a technical point of view and from a fundamental point of view, the bears do not seem to have sufficient forces to move down. However, given the proximity of local highs and the fact that the bulls have also loosened their grip, we do not recommend trading higher now. After all, the pound sterling has already grown quite sharply, after which there was not even a normal correction in size.

GBP/USD 15M

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Both linear regression channels are directed downward on the 15-minute timeframe, signaling that traders are no longer considering long positions and are ready for a downward movement. The latest Commitments of Traders (COT) report for the British pound was even more suspicious than the previous one. The penultimate COT report for July 15-21 showed that non-commercial traders opened more Sell-contracts than Buy-contracts, however, the British pound continued to grow during this period. Friday's COT report showed roughly the same pattern. The non-commercial category of traders, which is considered the "engine" of the market, opened 2,700 Sell-contracts and closed (!) 8,700 thousand Buy-contracts. Thus, the net position for this category of traders has fallen even further, which means that the bearish mood has increased. The British currency has started to fall in recent days, that is, in days that are not covered by the latest COT report. It turns out that professional traders have been getting rid of Buy-contracts for two weeks, and the pound began to fall only a couple of days ago. We believe that this certain behavior from non-commercial traders indicates that the market is preparing for a new and prolonged fall in the British currency. Of course, this is just a hypothesis now, but nevertheless.

The fundamental background for the GBP/USD pair did not change much on Tuesday, August 4, as no important macroeconomic reports were released during the day. There was no news on Brexit talks. There was no fundamentally new information from the United States about the coronavirus epidemic, the riots caused by the racist scandal, or about the negotiations between Republicans and Democrats on a new stimulus package for the US economy. Thus, market participants are already fed up with information about the high rates of spread of COVID-2019 in the United States, as well as about the inaction of the American government. Traders are also tired of the controversial statements by US President Donald Trump, who believes that "a vaccine is about to be created" and "the coronavirus is beginning to recede." Buyers are no longer willing to buy the pound and sell the dollar based on this information. Accordingly, new disappointing information from overseas is required to resume the upward trend. But in order for the downward movement to continue, the current technical factors and the overbought British currency are enough. In addition, the Bank of England will hold a meeting on Thursday, which can potentially become a source of a new portion of negativity, and the GDP for the second quarter in Britain will be released at the beginning of next week, which may contract by 20% and also put pressure on the positions of the British currency.

There are two main scenarios as of August 5:

1) Buyers let the initiative out of their hands when they put quotes below the upward trend line. Thus, there are no technical structures that would support the bulls now. The proximity of local highs makes us consider purchases with great caution. We advise you to refrain from new purchases for the time being, as consolidating the price above the Kijun-sen line is not a strong signal right now.

2) You are advised to open new short positions on the pound/dollar pair while aiming for the Senkou Span B line (1.2908) and the support level of 1.2850 in the event of a price rebound from the Kijun-sen line (1.3060). However, the price rebound from this line should be eloquent. The potential Take Profit in this case is from 110 to 160 points.

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

EURCAD facing bearish pressure, potential for further drop

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Trading Recommendation

Entry: 1.57291

Reason for Entry: Horizontal overlap resistance, 38.2% fibonacci retracement, 61.8% fibonacci extension

Take Profit: 1.56199

Reason for Take Profit: 161.8% fibonacci extension

Stop Loss: 1.58053

Reason for Stop Loss: Horizontal swing high resistance, 38.2% fibonacci retracement

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

Hot forecast and trading signals for the EUR/USD pair on August 5. COT report. An important ADP report could bring the pair

EUR/USD 1H

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The euro/dollar pair, after an unsuccessful attempt to overcome the support area of 1.1702-1.1727, rebounded off it, rose to the Kijun-sen line, rebounded from it and resumed its downward movement, returning to the 1.1702-1.1727 on the hourly timeframe on August 4. However, the second attempt to overcome the indicated support area was unsuccessful, and at the moment the pair rebounded off it again. Thus, we believe that the bears are now continuing to exert moderate pressure on the pair, but this pressure is not yet enough for the dollar to continue to rise in price. We are still leaning towards the option in which the dollar would continue to grow, however, until overcoming 1.1702, this option remains hypothetical.

EUR/USD 15M

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The lower linear regression channel managed to turn up on the 15-minute timeframe due to the pair's growth from yesterday afternoon. However, we do not believe that this implies the birth of a new upward trend. The latest Commitments of Traders (COT) report showed a significant increase in bullish sentiment among major traders. The category of non-commercial traders opened 36,000 new Buy-contracts during the reporting week (July 22-28). This category has opened only 3,700 Sell-contracts. Thus, the net position (the difference between purchases and sales) immediately increased by 32,000, which indicates a sharp strengthening of the bullish mood. However, this was obvious even without the COT report, as the euro continued to grow non-stop over the past four weeks. As for other categories of traders, their actions in the currency market do not matter much now. The most interesting thing now is what will be the actions of professional traders according to a new report that will be released this Friday. After all, the euro began to decline, respectively, the number of open new Buy-contracts should decrease, and the number of Sell-contracts should increase. This will be a sign that major traders are preparing for a new downward trend.

The fundamental background for the EUR/USD pair remained practically unchanged on Tuesday. Neither economic nor political news came from the European Union and America throughout the day. Therefore, traders had nothing to react to, which, in fact, they did, continuing to trade the pair according to the corrective scenario. On Wednesday, the situation on the foreign exchange market should be more interesting, since there will be several rather important macroeconomic reports in both Europe and America. We are now betting that both the euro and the pound should continue to fall. This means that you should work with any macroeconomic data that will be in favor of the US dollar, and the rest of the data should be ignored. Unfortunately, there is little hope that market participants will seriously work out business activity indices in the EU and US service sectors. Just like retail sales in the European Union. The only thing that can cause a rather tangible reaction is the ADP report on changes in the number of employees in the US private sector. And here we should rather expect a weaker than the forecast value, rather than vice versa. If this is the case in reality and traders again begin to get rid of the US currency, this will mean that all is not lost for the pair's buyers and the upward trend may still resume. But the sellers are not showing their best so far and are frankly weak.

Based on all of the above, we have two trading ideas for August 5:

1) Buyers gave the bears an opportunity to start implementing their ideas. However, so far, sellers do not take too many chances. Buy orders remain relevant for the target resistance level of 1.1911, but now the bulls need to return to the area above the Kijun-sen line (1.1803), which will mean a possible resumption of the upward trend. The potential Take Profit in this case is about 90 points.

2) Bears have made a good first step towards a new downtrend, which, from our point of view, is still very likely. Now it is vital for them to overcome the support area of 1.1702-1.1727 and continue to open short positions while aiming for the support level of 1.1644, Senkou Span B line (1.1606) and support level of 1.1509. The potential Take Profit in this case is from 40 to 160 points.

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

Overview of the GBP/USD pair. August 5. Britons are leaving the UK after the Brexit vote. Relations between China and America

4-hour timeframe

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Technical details:

Higher linear regression channel: direction - upward.

Lower linear regression channel: direction - upward.

Moving average (20; smoothed) - upward.

CCI: 31.5276

The British pound, as well as the euro, continued to fall on Tuesday, August 4. In fact, this is exactly the scenario we predicted for the pair, since in the case of the euro, or in the case of the pound, the growth of these currencies was not supported by anything. The blame was the US dollar, which came under massive pressure from market participants. However, we have repeatedly noted that if the euro at least had reasons to strengthen, even 11-12 cents in three months is still too much. The pound sterling did not have them at all. We have repeatedly said that with the set of problems that the UK has accumulated over the past 4 years, the pound could only show not too strong corrective growth, but not a noticeable upward trend. Now, given the fact that with a high probability, traders have already played all the "4 American crisis" and now they simply need a rest. The pound has no other way but to continue falling.

During the second trading day of the week, no important macroeconomic reports were published in the UK and the United States. Therefore, in fact, traders were deprived of any news feed. There was no important, high-profile news on this day. Thus, no one prevented traders from continuing to get rid of the British currency, or rather to reduce previously opened long positions.

Meanwhile, the next "black" news came from Britain. According to a study by the Berlin Center for Social Research, after the 2016 referendum, the number of Britons who moved to the European Union increased by 30%. The number of Britons who received EU citizenship increased by 500%, and Germany - by 2000%. Scientists also note a potential "brain drain" from the UK to the EU and the US.

At the same time, Washington officially refused to extend visas to Chinese journalists located in the United States. Thus, in the coming months, all Chinese journalists can leave the United States. Naturally, Beijing immediately issued a response in which it warned that if Chinese journalists were forced to leave the United States, then all American journalists, including those in Hong Kong, would be deported from China.

Relations between China and the UK are also deteriorating. We have already written that the most affected party in the "Hong Kong issue" can be considered the United Kingdom, with which an agreement was signed in 1984 that Hong Kong should remain an independent autonomy, at least until 2047. This agreement, according to most countries of the world, was violated by Beijing, which adopted the law "on national security in Hong Kong", effectively depriving that autonomous status, since now the Chinese government can control this district through special, newly created authorities. London, in turn, decided to refuse to supply ammunition and weapons to Hong Kong. This was stated by British Foreign Minister Dominic Raab. In addition, London is going to simplify the possibility of obtaining British visas for residents of Hong Kong from 2021. China, in turn, promised to cancel all British passports for Hong Kong residents. Thus, the conflict continues to grow not only between the United States and China, but also between Britain and China.

On the third trading day of the week in the UK, as in many EU countries and the EU as a whole, the publication of business activity indices in services is scheduled. This area is now more important from the point of view of restoring any economy, since it is this area that has suffered most from the "coronavirus crisis". It continues to suffer even now, when most of the restrictive measures have been lifted in Europe. People are still afraid of the "coronavirus", which means they do not lead an active social life, which negatively affects the service sector, which directly depends on the social activity of the population. According to experts' forecasts, business activity in all EU countries will continue to grow, which will mean the recovery of the service sector. But in the United States, there will be a fairly important ADP report on changes in the number of people employed in the private sector for July. According to forecasts, the number of employees may grow by 1.5 million, although this figure is now closely linked to the unemployment rate and applications for unemployment benefits, the number of which has started to grow again in recent weeks. The Markit and ISM US business activity indices may be worse than the forecast values, as the "coronavirus" continues to rage in the United States, unlike in European countries.

However, we believe that the technical factor is now in the first place. We believe that in the near future the moving average line will be overcome, which will provoke the formation of a new downward trend. All the negative from overseas traders played back, now it's time to "remember" that everything is not good in the UK.

And we certainly should not forget about the scheduled summing up of the Bank of England's meeting on Thursday. On the one hand, traders do not expect anything supernatural from the British regulator. On the other hand, there are always possible surprises, especially against the background of talk in recent months that, allegedly, the Bank of England may lower rates into negative territory. Andrew Bailey himself said that this option is being considered and carefully analyzed by the bank's economists. Thus, on Thursday, the mood of traders may either change or strengthen, which is unlikely, since it is unlikely that the Bank of England will change its policy in the "dovish" direction. Thus, everything so far suggests that the British currency will continue to fall in price.

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The average volatility of the GBP/USD pair continues to remain stable and is currently 113 points per day. For the pound/dollar pair, this value is "high". On Wednesday, August 5, thus, we expect movement within the channel, limited by the levels of 1.2955 and 1.3181. Turning the Heiken Ashi indicator upward will indicate a possible resumption of the upward movement of the pair.

Nearest support levels:

S1 – 1.3000

S2 – 1.2939

S3 – 1.2878

Nearest resistance levels:

R1 – 1.3062

R2 – 1.3123

R3 – 1.3184

Trading recommendations:

The GBP/USD pair continues its downward correction on the 4-hour timeframe. Thus, today it is recommended to wait for the completion of the correction and resume trading for an increase with the goals of 1.3123 and 1.3184. Short positions can be considered no earlier than fixing the price below the moving average with the first goals of 1.2939 and 1.2878.

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Overview of the EUR/USD pair. August 5. The only chance of Donald Trump in the election and the US dollar in the future is

4-hour timeframe

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Technical details:

Higher linear regression channel: direction - upward.

Lower linear regression channel: direction - upward.

Moving average (20; smoothed) - sideways.

CCI: 2.8309

The EUR/USD currency pair started moving upward after trying to overcome the moving average line yesterday. However, already in the US trading session on Tuesday, it again rushed down. As we said earlier, now is a very favorable time for the US dollar to continue strengthening. There are several factors in favor of this. First, technical. The euro currency has been growing for almost a month and during this time there was not a single significant correction, only small pullbacks. Therefore, the pair needs to adjust in any case. Secondly, it is fundamental. Despite the absolutely destructive state of America now, when the country was swept by 4 crises at once, the euro currency has risen in price over the past three months by 12 cents, which is a lot in any case, against any fundamental background. For example, during the collapse of the pair in mid-March, when the markets bought the dollar without paying attention to anything, only 8 cents were passed down. Thus, we believe that the euro currency is currently overbought and the market requires consolidation. All this leads us to the conclusion about the further movement of the pair's quotes down.

The fundamental background of Tuesday was almost absent. No important macroeconomic reports were published on this day in either the US or the EU. Thus, traders only had to track various "second-plan" news and analyze them. However, in the first place now in any case remains "technique". Therefore, while the euro/dollar is preparing for a new round of corrective movement, we suggest discussing important and significant topics for the US currency in the long term.

In our humble opinion, the future of America now depends on who wins the election on November 3. We have repeatedly said that the research of the last three months shows a clear advantage of Joe Biden over Donald Trump. The gap in political ratings is from 8% to 14%, which is a lot, given that the election is about 3 months away. However, experts say that everything can still change. In order to understand what can help Trump win the election, you need to understand what does not suit American voters in the activities of Trump as President. And here, unfortunately for the President, the list is quite extensive. The first and most important is "coronavirus". The epidemic has completely engulfed the United States, and the country is leading the world in terms of both the number of diseases and the number of deaths from the virus. Naturally, the American people blame the President and the current government for everything. And he blames it quite reasonably, because it is Trump who owns the phrase at the very beginning of the pandemic that "the virus will not cause significant harm to Americans". A little later, Trump said that "the virus will disappear miraculously in April or May". These words misled Americans and now the country has the highest rates of mortality and morbidity. As we can see now, in August, Trump's predictions did not come true, so it is clearly not worth it to participate in the show of psychics. The second thing that does not suit Americans is the economic situation of the country and unemployment. It is clear that the second point depends entirely on the first. And if there were no "coronavirus", there would not be 11% unemployment. According to the latest estimates, about 20 million people lost their jobs in the country. And all of them need to pay benefits to avoid mass riots on this ground as well. However, the government at the same time needs to revive the economy, and to do this, people need to return to work. To do this, the Republicans propose to lower the "coronavirus allowances" for unemployment benefits, and Americans immediately begin to criticize politicians, since not everyone wants to lead an active social life at a time when about 60-70 thousand people are infected every day in the country.

In general, for the three remaining months, Trump needs to urgently solve the problem of the collapse of the economy by 33% in the second quarter, urgently resuscitate it, as well as the problem of the epidemic. We believe that it will not be possible to restore the economy in three months. This is almost 100% and this has been repeatedly said, for example, by the head of the Federal Reserve, Jerome Powell. And he knows and understands exactly what the economic recovery after the largest collapse in the history of the country is like. Thus, Trump can only bet on one thing. For the coronavirus vaccine. And it seems that Trump has chosen this strategy in interaction with voters for the next three months. First, the American President resumed "coronavirus briefings". Second, Trump has begun to take the pandemic seriously. Third, with the slightest decrease in the number of cases, Trump declares that the epidemic is receding. Fourth, he continues to repeat that the death rate in the United States is one of the lowest in the world. Fifth, he regularly repeats, like a mantra, that the vaccine against "coronavirus" is in the final stage of development. Sixth, Trump removed from the limelight the country's chief epidemiologist, Anthony Fauci, who regularly gave interviews in which he refuted everything the president said, further undermining the credibility of his words. Now Trump "sees signs of improvement in the epidemiological situation" and believes that "the virus has begun to recede". And this is despite the fact that the number of infections continues to grow in at least 15 states, and in the rest there is a slight drop in the virus's contagiousness. Regarding the creation of a vaccine, Trump said the following: "We expect the vaccine to be available by the end of the year, well ahead of schedule. We are very close to completion." Many political scientists and experts believe that Trump can put pressure on the FDA to have a certain number of doses available before November 3, as well as on the Department of Health and Human Services to speed up the process of developing a drug against COVID-2019. If Trump really gets the vaccine before November 3, then he will have the strongest trump card, since the president will clearly attribute the success of doctors to himself, saying that it was because he paid due attention to the "coronavirus" that American companies and scientists developed the drug. And the US dollar will definitely get the support of traders, since this will mean a potential victory over the epidemic and the key to this victory will be in the hands of America. However, we should not forget that 157 vaccines are currently being developed in the world, so not only the United States can become the owners of the vaccine.

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The volatility of the euro/dollar currency pair as of August 5 is 100 points and is characterized as "high". Thus, we expect the pair to move today between the levels of 1.1681 and 1.1881. The upward turn of the Heiken Ashi indicator will signal the end of the downward correction within the framework of the still continuing upward trend.

Nearest support levels:

S1 – 1.1719

S2 – 1.1597

S3 – 1.1475

Nearest resistance levels:

R1 – 1.1841

R2 – 1.1963

Trading recommendations:

The EUR/USD pair continues to adjust to the moving average. Thus, at this time, it is recommended to continue to consider the possibility of opening purchases with the goals of 1.1841 and 1.1881, but to do this, you need to wait for the Heiken Ashi indicator to turn upward. It is recommended to open sell orders no earlier than when the pair is fixed below the moving average line with the first target of 1.1597.

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