Control zones for USDCAD on 08/27/20

The downward movement remains a medium-term momentum, since the pair failed to gain a foothold above the WCZ 1/2. Today, the pair is trading at a monthly low, which may lead to a growth in demand. The appearance of a buy pattern will allow you to enter a long position within the formed accumulation zone.

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Working within the flat implies searching for favorable prices at the borders of the range. The goal for long deals is the current week's high.

To continue the fall, today's trading will have to close below the weekly CZ. This will allow you to look for opportunities for new sales tomorrow. The pair is trading within the monthly volatility zone, so strengthening the Canadian dollar is a priority and has a good potential.

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

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

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

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Trading idea for Gold

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Worsening relations between United States and China led to another price jump in gold, and the day ended with a strong absorption pattern on the daily chart.

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Price stopped just below 1962, but it may increase even more if we follow the Elliott Wave theory.

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Thus, take profit on the breakout from 1962, as long positions are only profitable until the quote passes yesterday's low.

This follows the strategy of the classic Price Action and Stop Hunting techniques.

Of course, controlling the risk is also important, so as to avoid losing profit.

Good luck and have a nice day!

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Indicator analysis. Daily review on GBP / USD for August 27, 2020

Trend analysis (Fig. 1).

The market may continue to move upward from the level of 1.3209 (closing of yesterday's daily candle) with the target at the upper fractal 1.3267 (red dotted line). In case of breaking through this level, the upward trend may continue with the next target at the historical resistance level of 1.3310 (blue dotted line).

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Figure: 1 (daily chart).

Comprehensive analysis:

- Indicator analysis - up;

- Fibonacci levels - up;

- Volumes - up;

- Candlestick analysis - up;

- Trend analysis - up;

- Bollinger lines - up;

- Weekly chart - up.

General conclusion:

Today, the price may continue to move upward from the upper fractal 1.3267 (red dotted line). In case of breaking through this level, the upward trend may continue with the next target at the historical resistance level of 1.3310 (blue dotted line).

Another possible scenario is from the level of 1.3209 (closing of yesterday's daily candle) the price may begin to move down with the target at the support level of 1.2984 (black bold line). Upon reaching this level, an upward rollback is possible with the target of 1.3207 - an 85.4% pullback level (blue dashed line).

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Analytics and trading signals for beginners. How to trade the EUR/USD on August 27? Plan for opening and closing trades on

Hourly chart of the EUR/USD pair

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The EUR/USD pair continued to move up along the upward trend line on Thursday night trading. Just from the bottom of this line. Let us remind novice traders that this line was crossed yesterday, so the trend changed to a downward one. We mentioned in the evening review that the main thing is that the price does not pass the previous two highs (1.1844 and 1.1850). It passed the first one last night, but not the second. Moreover, it rebounded off the 1.1850 level, and for a better visualization of what is happening, we built a horizontal line passing through both peaks. Thus, formally, the downward trend is not broken and it could resume moving down from the current price values. Moreover, the MACD indicator has already turned down, that is, it has generated a sell signal. At the same time, we understand that the pair is not trading very well at this time and is not very convenient to reach. The movement of the last few days falls more under the definition of a flat than a trend. Therefore, we advise novice traders to not forget about placing a Stop Loss order above that same horizontal line.

The calendar of macroeconomic events for the European Union is empty again on August 27. Meanwhile, the Economic Symposium will take place in the United States, which many traders have been waiting for from the very beginning of the week. By and large, today we are only interested in the speech of Federal Reserve Chairman Jerome Powell, which is scheduled for 14:00 London time (but may start a little earlier or later). Therefore you can trade without looking back at this event until almost the very evening. The US will also publish annual data on GDP, claims for unemployment benefits and indices of personal consumption expenditures on this day. The last two reports are unlikely to be reflected on the chart, the GDP report was already published about a month ago and this is just the second edition. That is, we will see the same -33% in the second quarter, which was announced a month earlier. Accordingly, most likely, all macroeconomic reports for today will not cause a reaction from traders. Going back to Powell's speech, he can give a regular talk, since this is just an economic forum where many academics and central bankers will share their views on monetary policy. This is not an event where Powell will report on monetary policy or have to make any decisions. Thus, it is possible that Powell will not report anything interesting today. However, we do not recommend that novice traders skip this event.

Possible scenarios for August 27:

1) It is not recommended to consider buying the pair at this time, since the price has settled below the upward trend line. For long deals, the pair can use the horizontal line that passes through the 1.1850 level. If the quotes gain a foothold above it, it will be possible to buy the euro with targets at 1.1881 and 1.1903. At the same time, we remind you that all the movements of the last few days are very much reminiscent of a flat, in which it is not recommended to trade, especially for beginners.

2) But we recommend opening sales at this time, since the price rebounded off the 1.1850 level. Thus, the targets for selling are set around the 1.1788 level or slightly lower. Given the current volatility of the EUR/USD pair, we do not expect a one-way movement of more than 50 points. It is recommended to set the Stop Loss level above the 1.1850 in order to protect yourself from a possible change in the pair's direction.

On the chart:

Support and Resistance Levels are the Levels that serve as targets when buying or selling the pair. You can place Take Profit near these levels.

Red lines are the channels or trend lines that display the current trend and show in which direction it is better to trade now.

Up/down arrows show where you should sell or buy after reaching or breaking through particular levels.

The MACD indicator consists of a histogram and a signal line. When they cross, this is a signal to enter the market. It is recommended to use this indicator in combination with trend lines (channels and trend lines).

Important announcements and economic reports that you can always find in the news calendar can seriously influence the trajectory of a currency pair. Therefore, at the time of their release, we recommended trading as carefully as possible or exit the market in order to avoid a sharp price reversal.

Beginners on Forex should remember that not every single trade has to be profitable. The development of a clear strategy and money management are the key to success in trading over a long period of time.

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Will J. Powell's speech become historic?

Markets are waiting for J. Powell's video-conference speech at the Jackson Hole. Most of them consider that it will be a historic speech and that it can change the entire monetary policy of the past 40 years.

What should we expect from Powell's speech?

The speech of Fed's chief, Jerome Powell, is expected to be the highlight of discourse that started two years ago on the need to conduct a broad review of the regulator's strategy, tools and methods of communication.The market participants are very optimistic that the Central Bank will significantly change its outlook about the current inflation rates. There are rumors that the so-called average inflation will be targeted, and that it will be proposed to raise the overall inflation level above the 2.0% mark that was never reached before. Adopting average inflation targeting would be contrary to what the Fed did in the 1980s and early 1990s. But then the regulator initiated high interest rates, which negatively affected the economy. As a result, the necessary decision was reached, aimed at overthrowing high inflation. However, there is a reverse process – high risks of deflation can ruin the economy that has already suffered from COVID-19.

Although it is hard to tell whether Powell will discuss such plans, we can expect him to say that the Central Bank will stick to the most flexible policy until there is an improvement in inflation and employment. Moreover, he will most likely try not to shock the market and thus, not lead to continued growth in the yield of treasuries, which continue to increase. If this process is not stopped, the price of servicing the state dollar will rise in the future and the dollar will strengthen, which will become a problem for the successful competition of American producers in the global market.

Therefore, it can be anticipated that Powell will remain careful with his words and any specific plans.

How will the markets react to the speech of Powell?

Powell's balanced position will let the markets be calm. Yields on treasuries will decline again and positive dynamics will continue in the stock markets. But for the US dollar, in this case, it will be under pressure in the currency markets, since there are a lot more negative factors about its rate than positive ones. Of course, these are significant stimulus measures that have greatly increased the dollar supply in the financial system, which leads to its weakening. In addition, the market has developed stable dynamics of its fall, following the growing demand for risky assets.

Conclusions

In conclusion, Powell's speech will most likely cause the volatility to increase before and during his speech, but the general trend that has prevailed in recent months will continue. But if he still decides to take extreme measures, then his speech will really become "historic".

Forecast of the day:

The EUR/USD pair is consolidating in a narrow range of 1.1785-1.1850. If Powell does announce a major change assessing the "average inflation", then this may support the dollar, which can decline to 1.1785 and further below 1.1700. On the contrary, the lack of clear signals on this topic will most likely cause the pair to rise to 1.1955.

The AUD/USD pair gains support amid the continuation of trade deals between the US and China. The price, overcoming the level of 0.7279, will open the way to 0.7320.

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EUR/JPY Price Movment On August 27, 2020

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The EUR/JPY pair is now moving towards 126.11 as the prime target. If the bullish momentum is strong enough, then 126.43 will serve as the secondary target. This movement has been already confirmed by the hidden divergence between the price with the Stochastic Oscillator (brown line) as long as this pair not retrace downwards and closes below the 125.24 level. If this happens, the bullish scenario will be automatically canceled.

(Disclaimer)

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Indicator analysis. Daily review on EUR / USD for August 27, 2020

The pair traded downward on Wednesday and tested 1.1779 - a 23.6% pullback level (red dotted line). After this, the market went up, closing the day almost at the opening price. Today, the price is likely to continue to move up. Economic calendar news for the dollar is expected at 12:30, 13:10, and 14:00 UTC.

Trend analysis (Fig. 1).

The market may continue to move upward from the level of 1.1831 (closing of yesterday's daily candle) with the target at the historical resistance level of 1.1912 (blue dotted line). From here, the price may continue to move upward with the next target at the upper fractal 1.1967 (red dotted line).

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Figure: 1 (daily chart).

Comprehensive analysis:

- Indicator analysis - up;

- Fibonacci levels - up;

- Volumes - up;

- Candlestick analysis - neutral;

- Trend analysis - up;

- Bollinger lines - up;

- Weekly chart - up.

General conclusion:

The price may continue to move upward from the level of 1.1831 (closing of yesterday's daily candle) with the target at the historical resistance level of 1.1912 (blue dotted line). From here, the price may continue to move upward with the next target at the upper fractal 1.1967 (red dotted line).

Another possible scenario is after moving up and testing 1.1851 - a 14.6% pullback level (red dashed line), the price may begin to move down with the target at 1.1779 - a 23.6% pullback level (red dashed line). If this level is broken down, the next target will be at the support level of 1.1697 (black bold line).

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Analysis and trading recommendations for the EUR/USD and GBP/USD pairs on August 27

Trading recommendations for EUR / USD on August 27

Analysis of transactions

A bearish mood arose in the euro after reports on US durable goods revealed a sharp increase in orders. It led to a 30-point decrease in price on the EUR / USD pair yesterday, from a price level of 1.1804.

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Today, trading will be affected by the upcoming speech of Fed chairman Jerome Powell, who will talk about the Fed monetary policy. If his statements turn out to be soft, the US dollar will weaken, and the euro will resume its rise in the market.

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  • Set long positions from 1.1848 (green line on the chart) to 1.1887, as upcoming news on the US labor market may set off a price increase in the EUR / USD pair. Take profit at a price level of 1.1887.
  • Meanwhile, short positions may be opened at 1.1823 (red line on the chart) to 1.1776, but only do so before Fed chairman Powell gives his speech. Take profit at a price level of 1.1776.

Trading recommendations for GBP / USD on August 27

Analysis of transactions

Long positions set from the level of 1.3161 bought more than 50 points of profit yesterday, mainly because buy transactions in the pound subsequently led to a rapid growth of the currency in the market.

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Today, the pound may continue to rise, but this will happen only after the speech of Fed chairman Jerome Powell. As mentioned earlier, if the monetary policy stays soft, the US dollar will weaken, and risk assets such as the pound will rise in the market.

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  • Open long positions from 1.3225 (green line on the chart) to 1.3270 (thicker green line on the chart), and take profit at the level of 1.3270.
  • Set short positions at 1.3180 (red line on the chart), as a breakout from which will lead to a larger decline in the pair to the support level of 1.3122. However, such will only happen if Fed chairman Powell announces new stimulus measures for the US economy. Nonetheless, the target profit is a price level of 1.3120.
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Technical Analysis of GBP/USD for August 27, 2020

Technical Market Outlook:

The GBP/USD pair has broken out of the local narrow consolidation zone and made a local high at the level of 1.3222. The immediate technical support is seen at the level of 1.3183 and 1.3169. If the weekly high located at the level of 1.3264 is violated, then the next target is seen at the level of 1.3283, but the long-term target for bulls is still located at 1.3518. The zone between the levels of 1.3264 - 1.3077 on GBP/USD pair is now a clear battle zone between bulls and bears, so the winner will determine the next move of GBP.

Weekly Pivot Points:

WR3 - 1.3388

WR2 - 1.3323

WR1 - 1.3185

Weekly Pivot - 1.3117

WS1 - 1.2973

WS2 - 1.2907

WS3 - 1.2796

Trading Recommendations:

On the GBP/USD pair the main, multi-year trend is down, which can be confirmed by the down candles on the monthly time frame chart. Nevertheless, the recent rally form the multi-year lows seen at the level of 1.1404 has been successful and the trend might be reversing. 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 towards the key long-term technical support is seen at the level of 1.1404.

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GBP/USD: plan for the European session on August 27. The persistence of pound buyers fuels will to grow. COT reports. Bulls

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

Yesterday, as never before, there were a lot of profitable signals for the pound, both to buy and sell at the end of the day. Let's deal with them and see where it was necessary to enter the market. On the 5-minute chart, you see a test of support at 1.3115, which triggers an immediate market reversal to the upside. I paid attention to this level all throughout yesterday. But even if you did not manage to buy the pound from this level, you had a great chance to enter long positions after a breakout and setting GBP/USD above the resistance of 1.3170, which is also clearly visible on the chart. Testing this area after a breakout from top to bottom formed a good entry point. But even if you missed this, it was always possible to sell the pound from the resistance of 1.3218, which I also paid attention to in yesterday's reviews. Now let's take a look and think about what we can do today. The US dollar may continue to weaken since Federal Reserve Chairman Jerome Powell will hold an important speech today. The bulls need a breakout and settle above the resistance of 1.3218, which will open a direct road to the high of 1.3260, but the 1.3316 level will be the long-term goal, which is where I recommend taking profits. It is not bad to look at long deals in case GBP/USD falls to the support area of 1.3170, where a false breakout along with testing the moving averages, which are now on the buyers' side, forms a good entry point into long positionsin anticipation of the pound's growth. If bulls are not active at this level, it is best to postpone purchases until the major support of 1.3115 has been tested, counting on a correction of 30-40 points within the day.

You also need to take note of the Commitment of Traders (COT) reports for August 18, where the growth of long positions was recorded again, as well as the reduction of short ones. The COT report indicates that short non-commercial positions decreased from 59,874 to 47,806 during the week. On the contrary, long non-commercial positions increased from the level of 48,053 to the level of 54,310. As a result, the non-commercial net position became positive and reached 6,504, against – 2,821. This suggests that the market trend has changed and buying the pound when it declines become more attractive and interesting from an investment point of view.

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

Bears need to try to prevent a breakout of the 1.3218 resistance, which buyers of the pound have prepared. An unsuccessful consolidation above this range and returning under it in the first half of the day forms a good entry point for selling the pound while expecting to return and fall to the support of 1.3170, where the downward movement may slow down. Settling below this range forms a more powerful bearish wave that can return the pair to the 1.3115 area, where I recommend taking profits. In case sellers are not active at the 1.3218 level, it is best to defer short positions to the highs in the area of 1.3260, or sell GBP/USD immediately on a rebound from a major new resistance of 1.3316 based on the correction of 20-30 points within the day.

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Indicator signals:

Moving averages

Trading is carried out above 30 and 50 moving averages, which indicates a continuation of the upward trend for the pound.

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

Bollinger Bands

Growth will be limited by the upper level of the indicator around 1.3245. In case of a decline in the pair, support will be provided by the lower border of the indicator at 1.3135.

Description of indicators

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

Technical Analysis of EUR/USD for August 27, 2020

Technical Market Outlook:

The EUR/USD pair has failed to rally above the short-term trend line resistance and after the local high was made at the level of 1.1850 the market reversed again. The next target for bears is seen at the level of 1.1755 and 1.1710. In order to make a new high, the bulls will have to break through the short-term trend line resistance seen at the level of 1.1850 and keep moving up towards the next target seen at 1.1908 - 1.1915. The key short-term technical support is located at the level of 1.1720 and 1.1710. The larger time frame trend remains up.

Weekly Pivot Points:

WR3 - 1.2107

WR2 - 1.2031

WR1 - 1.1883

Weekly Pivot - 1.1825

WS1 - 1.1682

WS2 - 1.1616

WS3 - 1.1470

Trading Recommendations:

On the EUR/USD pair the main trend is up, which can be confirmed by 8 weekly up candles on the weekly time frame chart and 3 monthly up candles on the monthly time frame chart. This means any corrections should be used to buy the dips. The key long-term technical support is seen at the level of 1.1445. The key long-term technical resistance is seen at the level of 1.2555.

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EUR/USD: plan for the European session on August 27. Euro buyers looking for a breakout of 1.1842. COT reports. Fed Chairman's

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

A good long entry point formed yesterday afternoon, pushing the European currency back to its weekly highs. Let's take a look at the 5-minute chart. You can see how the bulls are forming a false breakout in the support area of 1.1787 and are quickly regaining control of the market, thereby leading the pair to its growth by 50 points up to the high of 1.1842, which is where the main struggle will take place today. The hourly chart also clearly shows how the bulls did not allow the closing price to fall below the 1.1787 level. As a result, from a technical point of view, nothing has changed for either of them. Trading remained in the side channel of 1.1787-1.1842, from which an exit is required. The best scenario is to wait until the pair falls to the major support of 1.1787. Forming a false breakout in that area will be a signal to open long positions while counting on a recovery to a high of 1.1842. However, an equally important task for the bulls is a breakout and settling at the 1.1842 level, as this will lead to a complete reversal of the downward correction and also open the way to the high of 1.1884. The resistance of 1.1920 will be the long-term goal of the buyers, where I recommend taking profits. But for such an active growth, we need good eurozone macroeconomic data, which will not be released today. Federal Reserve Chairman Jerome Powell's speech may help the euro grow. His ultra-soft tone on monetary policy is sure to weaken the US dollar's position. If buyers are not active in the support area of 1.1787 when the pair decreases, it is best to postpone purchases until last week's low has been updated in the area of 1.1755, or you can open long positions immediately for a rebound from the support of 1.1714 in anticipation a correction of 20-30 points within the day, since the market is still under the bears' control.

It is also worth recalling that the Commitment of Traders (COT) reports for August 18 marked a reduction in long non-commercial positions from the level of 266,078 to the level of 259,244, while short non-commercial positions also decreased from the level of 66,327 to 62,301. Given that the closing of long positions turned out to be much larger, as a result, the positive non-commercial net position sharply fell to 196,943, compared to 199,751 a week earlier. However, such changes did not seriously affect the balance of power in the market, and most likely the demand for the euro will return, after a slight correction of the US dollar.

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

Sellers of the euro will try to break below the support of 1.1787. Settling below this level forms a good entry point into short positions while we count on continuing the downward correction to the area of last week's low at 1.1755, where I recommend taking profits. Support for 1.1714 will be the long-term goal. But do not disregard the bulls' attempts to return to the market, which pulled the pair quite close to the 1.1842 level. It is best to open short positions from it only after forming a false breakout. If bears are not active, the market can quickly switch to the side of buyers. In this case, I recommend selling EUR/USD immediately on a rebound from the high of 1.1884, counting on a correction of 20-30 points within the day. In case the euro actively grows Powell's speech, it is better to wait for the high of 1.1920 has been updated and sell the euro from there.

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Indicator signals:

Moving averages

Trading is carried out in the area of 30 and 50 moving averages, which indicates a small market uncertainty with further direction.

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

Bollinger Bands

A breakout of the lower border of the indicator around 1.1790 will increase pressure on the euro. A breakout of the upper border of the indicator in the 1.1850 area will lead to an upward correction.

Description of indicators

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

Technical Analysis of BTC/USD for August 27, 2020

Crypto Industry News:

The rise in cryptocurrency prices since March has been accompanied by a wave of cryptojacking attacks, according to new research published by the cybersecurity company Symantec.

According to the company, there was a 163% increase in browser-based cryptojacking in the second quarter of 2020. Previously, cryptojacking saw a sharp decline since March 2019 due to the closure of the mining script maker CoinHive.

Symantec points out that the growth in the last quarter coincided with the rise in the value of Bitcoin and Monero, two cryptocurrencies often mined by cybercriminals who rely on browser-based cryptocurrency malware.

Cryptojacking saw a period of high activity from September 2017 to March 2019, becoming one of the most widespread forms of cyber attacks at the time. In 2019, the CoinHive project reportedly became economically unprofitable. According to the announcement, the mining service ceased operation on March 8, 2019, and among the reasons for the shutdown, developers noted a 50% drop in hash rate after the last Monero hard fork.

Technical Market Outlook:

The BTC/USD pair keeps trading inside of a descending channel. The recent rally only hit the 50% Fibonacci retracement seen at the level of $11.431. The bulls keep trying to bounce from the oversold market conditions as they do not want to lose the $11,000 support. The nearest technical resistance is seen at the level of $11,484, which is the rally high and the level of $11,220 will act as a support from now. The key short-term technical support is seen at the level of $11,062. The weekly time frame trend remains up.

Weekly Pivot Points:

WR3 - $13,245

WR2 - $12,828

WR1 - $12,122

Weekly Pivot - $11,728

WS1 - $11,022

WS2 - $10,628

WS3 - $9,978

Trading Recommendations:

The weekly trend on the BTC/USD pair remains up and there are no signs of trend reversal, so buy orders are preferred in the mid-term. All the dynamic correction are still being used to buy the dips. The next mid-term target for bulls is seen at the level of $13,712. The key mid-term technical support is seen at the level of $10,463.

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

Technical Analysis of ETH/USD for August 27, 2020

Crypto Industry News:

The People's Bank of China plans to use its digital currency at the 2022 Winter Olympics in Beijing.

According to a media report, Sun Guofeng, head of the PBoC's monetary policy department, said the bank did not have a schedule to introduce digital currency. However, according to Sun's statement, the PBoC will likely launch it ahead of the 2022 Winter Olympics as they plan to use it at an international sporting event.

The news comes as China is ramping up pilot projects for the digital yuan. Currently, China's central bank is testing its digital currency in Shenzhen, Suzhou, Xiongan and Chengdu. The bank also planned to introduce a digital currency for pilot tests in other regions, including Beijing, Tianjin, Hebei, and the Greater Bay area of Hong Kong.

A recent official statement from the bank also noted that the digital yuan was only tested for small retail transactions. Debunking rumors about the impossibility of converting digital currency into banknotes, the central bank also clarified that digital yuan is legal tender that users can convert into banknotes at a 1: 1 ratio.

While there is still too little information on the Chinese digital currency to say anything about its launch and use cases, it is fairly obvious that the bank is making rapid progress towards its introduction.

Technical Market Outlook:

The ETH/USD pair could not make it to the $400 and was rejected at 50% Fibonacci retracement of the last wave down located at the level of $389.66. The market reversed and now is approaching the intraday technical support is seen at the level of $375.62. If the level of $369..58 is clearly violated, then the next target for bears is seen at the level of $362.30. The nearest technical resistance is seen at the level of $391.73. All the bigger time frame charts looks very bullish and the up trend should be continued after the correction is completed.

Weekly Pivot Points:

WR3 - $491.79

WR2 - $470.70

WR1 - $424.12

Weekly Pivot - $402.20

WS1 - $357.21

WS2 - $333.72

WS3 - $286.54

Trading Recommendations:

The weekly and monthly time frame trend on the ETH/USD pair remains up and there are no signs of trend reversal, so buy orders are preferred in the mid-term. All the dynamic corrections are still being used to buy the dips. The next mid-term target for bulls is seen at the level of $500. The key mid-term technical support is seen at the level of $364.95.

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Forecast for EUR/USD on August 27, 2020

EUR/USD

The euro's attempt to attack the lower limit of the uncertainty range of 1.1710-1.1905 was aggressively suppressed yesterday, the candle formation of the daily chart turned out to have an extended lower shadow. The signal line of the Marlin oscillator is now trying to return to the downward trend zone, but the euro will try to reach the upper limit of the range until its last strength.

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The price settled above the MACD line on the four-hour chart, and Marlin is growing in the zone of positive values. The euro has become noticeably stronger over the past three days. It is likely that the 1.1905 level will be recovered, perhaps with a small and short-lived exit of the price moving higher. This scenario does not contradict the main plan for a medium-term decline in the euro.

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Forecast for AUD/USD on August 27, 2020

AUD/USD

The Australian dollar gained 38 points on Wednesday, as it reached the bullish target of 0.7240. The price tried to go higher in today's Asian session, but the aussie had been preparing for this growth for a long time and lost some of its potential. The signal line of the Marlin oscillator began to move down. It is likely that the next target of 0.7296 will not be reached.

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The price will start falling in the medium-term as the price moves below the MACD indicator line (0.7182) and settles below it. The first target is still at 0.6975. But since the price has significantly moved away from it over the past five days, the sub-goal will be 0.7075.

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The price develops above the balance and MACD indicator lines on the four-hour chart. Marlin is in the growth zone, but turns down, which shows the weakness of the growing trend. If there is a strong desire for the price to rise, it can still do so with the Marlin oscillator going down, so it is possible for the current price to increase by around 20-30 points. In general, we are waiting for initial conditions to be present for the price to go down.

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Forecast for USD/JPY on August 27, 2020

USD/JPY

The dollar-yen pair rebounded off the MACD line on the daily chart, slightly falling short of the downward line of the price channel, which is the main target. Now it is at the 106.65 level. The Marlin oscillator of the daily timeframe remains in the growth zone and this keeps the chance of reaching the target level until the end of the week. The deadline is on Monday.

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The price reverses from the balance indicator line on the four-hour chart. The Marlin oscillator, whose signal line turns from the border with the decline zone, helps to reverse the upward trend. The zero line of the indicator is an independent level of support and resistance. The price leaving the MACD line above the 106.35 level confirms the intention to keep the price growing.

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Hot forecast and trading signals for GBP/USD on August 27. COT report. Pound met an obstacle on its way - the 1.3217 level

GBP/USD 1H

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After a whole day of treading between the Senkou Span B and Kijun-sen lines, the GBP/USD pair continued to move up and approached the upper line of the descending channel on August 26, which, in fact, is directed more sideways than down. Nevertheless, there was a rebound from its lower line, so traders can count on an upward movement. Senkou Span B and Kijun-sen lines, which are strong on any trend movement, present no danger to market participants at this time. A price rebound from the first resistance level of 1.3217 or the upper line of the channel can trigger a reversal of the downward movement within the same channel. The British currency will continue to grow only if the price closes above the descending channel.

GBP/USD 15M

Both linear regression channels turned upward on the 15-minute timeframe. Therefore, we now have an upward trend in the short term. The latest Commitments of Traders (COT) report for the British pound, which came out last Friday, was very predictable. In the period from August 12 to 18, non-commercial traders reopened Buy-contracts (5,880 units), and closed Sell-contracts, in total 2,232 units. Thus, the net position for this category of traders has grown again, by as much as 8,000 contracts, which is a lot for the pound. Actually, until August 18 inclusive, the pound continued to grow against the US currency, so the data from the COT report perfectly reflects what was happening on the market at that time. As for the period of August 19-25, for which a new COT report will be released tomorrow, during this time the British currency has fallen in price by about 150 points, which does not provide any good reason to expect that professional traders have begun to close Buy-contracts or open Sell-positions. Most likely, the new COT report will not show significant changes in the mood of large traders.

No fundamental background for the GBP/USD pair on Wednesday. The only report of the day - orders for durable goods in the US - was generally ignored by traders, although it could have provoked the dollar's growth. No interesting information from the UK at all. Now, on the last two days of the week, traders will be watching speeches by Federal Reserve Chairman Jerome Powell at the Jackson Hole Symposium (Thursday) and also Bank of England Governor Andrew Bailey at the same event (Friday). Perhaps these speeches will help the quotes in leaving the side channel. Although the price for the EUR/USD pair is also moving within a sideways channel, so we can say that everything is logical, the two main pairs correlate well. It makes no sense to talk about the long-term prospects of a particular currency now, since it is necessary for the flat to end in both major pairs. The fundamental background is now diverse and it is not clear which of the factors will start to have a strong impact on this or that currency.

Based on the above, we have two trading ideas for August 27:

1) Buyers have become a little more active in recent days. However, now they need to overcome the upper line of the descending channel and the resistance level of 1.3217 in order for the British currency to continue to rise in price. In this case, we will recommend continuing to buy with the target of 1.3346. Take Profit in this case will be about 100 points.

2) Bears can let go of the pair again. If quotes go above the descending channel, then sales will cease to be relevant. You can sell the pair if a rebound occurs from the 1.3217 level, targets will be at the Senkou Span B line (1.3132) and the lower channel line. For greater confidence, you can wait for the price to settle below the Senkou Span B line. Take Profit in this case will be from 60 to 140 points.

Explanations for illustrations:

Support and Resistance Levels are the levels that serve as targets when buying or selling the pair. You can place Take Profit near these levels.

Kijun-sen and Senkou Span B lines are lines of the Ichimoku indicator transferred to the hourly timeframe from the 4-hour one.

Support and resistance areas are areas from which the price has repeatedly rebounded off.

Yellow lines are trend lines, trend channels and any other technical patterns.

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Hot forecast and trading signals for EUR/USD on August 27. COT report. Indistinct movement continues. All eyes on Jackson

EUR/USD 1H

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The euro/dollar pair continued absolutely indistinct trading just below the Senkou Span B line on the hourly timeframe on August 26. The price settled below the Senkou Span B line, which provided good chances for the pair to move to the 1.1712 support level, which is also the lower the border of the sideways channel, in which the pair has been trading for more than a month. However, despite this fact, the bears continued to show weakness and refused to sell the pair. Thus, the euro/dollar pair has spent the last few days in a narrow price range with a width of only 100 points. The price settled above the Senkou Span B and Kijun-sen lines, and even this fact did not make it possible for traders to seriously count on strong growth.

EUR/USD 15M

Both linear regression channels reverse every day on the 15 minute timeframe as the pair is constantly changing direction. In general, it is flat. The latest Commitments of Traders (COT) report was released last Friday. According to this report, non-commercial traders were extremely calm during the reporting week (August 12-18). During this period, the "non-commercial" category of traders, which is considered the most important, closed 4,500 Buy-contracts and 4,500 thousand Sell-contracts. Thus, the net position for this category of professional players has not changed at all. And along with it, the mood of traders has not changed either. Thus, the COT report still does not give any grounds to assume that the upward trend has ended. Even if we take into account the fact that the pair fell by 200 points in the period from August 19 to 21, it still does not change anything. During the current upward trend, which has been forming for three months, the pair has already dropped by 200 points. This value continues to remain small, since the pair's overall growth during this period was about 1200 points. Throughout the current week, the pair has been in an absolutely incomprehensible movement and certainly this cannot mean that the mood of large market participants will change. The last three trading days of this week will not be included in tomorrow's new COT report, but even without them, it is clear that serious changes are not expected from it.

Yesterday's fundamental background for the EUR/USD pair was expressed through a single report from overseas. Durable goods orders in the US turned out to be significantly higher than experts predicted. However, the dollar could not extract any dividends from this report. The complex fundamental background in America continues to drive bears out of the market. We do not expect important publications and events from the European Union today. The market will focus on the Economic Symposium in Jackson Hole, at which the Federal Reserve Chairman Jerome Powell is set to give a speech. US Q2 GDP reports, jobless claims and personal consumption spending indices are unlikely to cause a serious market reaction. Especially after an equally important report was ignored today.

Based on the above, we have two trading ideas for August 27:

1) Bulls as a whole continue to take profits on previously opened deals and do not intend to return to the market with new long deals of the euro in the near future. The pair continues to trade below the Senkou Span B line, but cannot continue to fall. Thus, in order for the upward trend to resume, the quotes must return to the area above the range of 1.1886-1.1910. In this case, we will recommend buying the euro with the target at the resistance level of 1.2051. Take Profit in this case will be up to 110 points.

2) Bears have finally seized the initiative in the market, but they do not have big dividends from this. It all depends on the bulls now, who continue to take profits on long positions. Selling the pair can be seen with the target at the support area of 1.1702-1.1727, if the price manages to stay below the Senkou Span B line (1.1835), but you can see how the quotes are moving down. In this case, the potential Take Profit is 70-80 points.

Explanations for illustrations:

Support and Resistance Levels are the levels that serve as targets when buying or selling the pair. You can place Take Profit near these levels.

Kijun-sen and Senkou Span B lines are lines of the Ichimoku indicator transferred to the hourly timeframe from the 4-hour one.

Support and resistance areas are areas from which the price has repeatedly rebounded off.

Yellow lines are trend lines, trend channels and any other technical patterns.

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

Overview of the GBP/USD pair. August 27. Jerome Powell's performance at Jackson Hole.

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: 141.0856

The British pound continues to trade in a "swing" mode. For the third time in the last few days, the bears failed to overcome even the Murray level of "6/8"-1.3062, not to mention the latest local lows located near the Murray level of "5/8"-1.3000. Thus, the situation for the pound does not change at all. After the third unsuccessful attempt to overcome the level of 1.3062, sellers gave up and a new round of upward movement of the pound/dollar pair began. At the moment, the quotes have already gone above the moving average and now the main question is: do the bulls want to start a new stage of the British currency's rise? As we have repeatedly said, the economic situation in the UK is not much better than the US, however, what can we do if the flow of negativity from the States does not stop, and market participants simply do not want to invest in the dollar now? By the way, not least because of the upcoming elections. It seems that America is now in a complete fog of uncertainty. It is not clear how the election will end. And it is the answer to this question that determines the future of America. Many experts agree that Donald Trump will not simply leave the post of President of the United States. Many political analysts believe that Trump can simply refuse to leave the White House, claim that the election was rigged, and demand through the court a new vote in the states where he is defeated. Thus, it is not enough that America is covered by a severe economic crisis. It is completely incomprehensible when to wait for a way out of it, since 40-50 thousand people continue to be infected daily from the "coronavirus", the country was covered with a new "wave" of rallies and protests associated with the new racist scandal and the Black Lives Matter movement, and the political the crisis is visible to the naked eye. This is how things are, and we can't blame traders for not wanting to invest in the dollar.

Meanwhile, the family of Donald Trump seems to have decided to adopt the main feature of its head and start making pretentious statements. At the Republican Party convention, unexpectedly for many, the first lady of the country Melania Trump made a speech, who said that her husband loves his country, does not hide it, "Therefore, he is the best choice of Americans, since his activity aims to improve the lives and health of the American population." It is difficult to comment on the statement of the first lady of the United States. Donald Trump completely failed to fight the epidemic and did not attach any importance to the COVID-2019 virus at all during the first months. Now, the US ranks first in the world in the number of infections and deaths from the "Chinese virus". And re-election to a second term clearly concerns him more than "the lives and health of Americans", whom he wants to quickly return to work so that the economy begins to recover. Therefore, Melania Trump's statement looks inappropriate, and YouGov can add her speech to the 20,000 times when Trump himself tried to mislead with his comments. "Donald will not stop fighting the coronavirus. He will continue to search for effective treatment methods and work on creating a vaccine," the first lady said. I would like to note that Donald is not working on creating a vaccine. Doctors are working on creating a vaccine, and Donald recently did not want to listen to these very doctors, offering Americans a treatment for malaria. Not to mention the story of Anthony Fauci, the country's chief epidemiologist, who daily denied everything Trump said about the "coronavirus".

In the UK, it's quiet and smooth. No new events or incidents. Boris Johnson remains silent and does not comment on the failure of the next seventh round of negotiations on the relationship between Britain and the European Union after Brexit. This week, there will be speeches by Andrew Bailey (Bank of England Chairman) and Jerome Powell (Fed Chairman). Perhaps their rhetoric will help the currency pair to leave a very narrow price range. But there is little hope of that. It seems that traders are now trading based on the general fundamental background, which generally remains not in favor of the US currency. This is why the dollar is not getting more expensive, although at least a correction has been brewing for at least a month. Based on this, we believe that the upper limit for the British currency is now located near the Murray level of "+1/8"-1.3245 or slightly higher. For a stronger rise in price, it is still necessary that traders receive fundamentally new information.

On Thursday, August 27, in America, in Jackson Hole, the annual economic symposium will be held, which will bring together representatives of central banks and economic scientists, who will read reports and make speeches on current problems of monetary policy. Jerome Powell will also speak at this symposium. However, given that this symposium is not a meeting of the Fed, it is unlikely that Powell will make really loud statements. Most likely, it will be limited to general phrases and information that has already been known to everyone for a long time. In addition, there will be several publications of macroeconomic reports in the United States, while in the European Union, the calendar of macroeconomic events is empty. Thus, it is recommended that traders pay more attention to non-technical factors. From the Murray level of "+1/8"-1.3245, for example, a rebound is very likely, which can even be used to open short positions. Fixing the price below the moving average can also serve as a signal for shorts. At the same time, we should not forget that the upward trend continues, since both channels of linear regression are still directed upward.

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The average volatility of the GBP/USD pair is currently 128 points per day. For the pound/dollar pair, this value is "high". On Thursday, August 27, thus, we expect movement within the channel, limited by the levels of 1.3086 and 1.3342. Turning the Heiken Ashi indicator downward will indicate a possible new round of downward movement.

Nearest support levels:

S1 – 1.3184

S2 – 1.3123

S3 – 1.3062

Nearest resistance levels:

R1 – 1.3245

R2 – 1.3306

Trading recommendations:

The GBP/USD pair is always trying to start a new downward trend on the 4-hour timeframe, however, it is still fixed above the moving average. Thus, today, it is recommended to stay in the longs with the goals of 1.3245 and 1.3306 until the Heiken Ashi indicator turns down. It is recommended to trade the pair down with the goals of 1.3086 and 1.3062 if the price returns to the area below the moving average line.

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Overview of the EUR / USD pair. August 27. Washington does not want to aggravate the conflict with China now.

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: 33.3612

For the EUR/USD pair, the third trading day of the week was calm again. Market participants do not yet find reasons for more active trading. Maybe because they do not see any grounds for it or maybe because they are afraid of buying the euro currency at such high levels. We deliberately do not talk about the reasons for market participants' refusal to buy the US currency, since there are still few fundamental reasons for such a strategy. Thus, yesterday, the pair's quotes worked out the moving average line and rebounded from it, trying to resume the downward movement. However, "resume the downward movement" is a very loud word. Still, in the last three months, during which the euro has grown by 12 cents, the US dollar has not been able to adjust by more than 2 cents, which is very little. Taking into account the fact that the last week did not update local highs, that is, the upward trend was put on pause, during this time the pair again went down no more than 200 points. Thus, we can make a clear conclusion that over the past month, there has been extremely weak demand for the US currency, bears remain extremely weak and do not want to actively buy the US dollar. We can even assume that bears do not buy American currency at all. Just from time to time, the bulls reduce part of the long positions, which leads to small pullbacks. The COT report fully confirms our hypotheses and shows that since June 24, the number of buy-contracts for non-profit traders has increased from 180 thousand to 262 thousand, and the number of sell-contracts has decreased from 78 thousand to 62 thousand. Thus, the bullish mood of professional players is evident.

As for the fundamental component, it is also quite difficult to say something new. Recently, a convention of the US Republican Party took place, at which Donald Trump was officially nominated for the post of US President. However, no one doubted this, so it is difficult to call this message important news. The talks between Robert Lighthizer and Chinese Secretary of State Liu He turned out to be no negotiations at all, but a banal discussion of the implementation of the "first phase" of the trade agreement. However, according to other information, China does not fully comply with the terms of the deal, but either Washington is satisfied with this (the world is still raging epidemic and economic crisis), or the White House simply does not declare this, fearing even more tension in relations with Beijing. In this issue, we should understand the entire essence of the confrontation between Beijing and Washington. The United States, which is used to acting from a position of force, threat and imposition of its own opinion, simply cannot back down and, for example, give in to China. Let's consider a hypothetical situation: China does not fulfill the terms of the deal or fulfills them, but not in full, and it is not profitable for the States to further aggravate relations with China, since their economy already lost 33% in the second quarter. What should I do in this case? Pretend that everything is fine and continue to maintain the appearance of war and confrontation with China. Therefore, Washington continues to impose unnecessary and uninteresting sanctions against certain Chinese officials and companies because of the "Hong Kong issue", because of the "Uighur issue" and other equally "fake" reasons. As a result, the press creates the appearance that the countries continue to be in a state of conflict, and the leaders of these countries and Foreign Ministries continue to regularly accuse each other of all mortal sins. In practice, it is not profitable for either of them to stop trading and impose new sanctions. The States that actually initiated the trade war could afford such actions in 2018. Now there isn't. But Trump can't say to China, "Hey, guys, this is a global crisis, let's temporarily put our conflict on hold, continue when it's over." Therefore, all the threats of Donald Trump that have been voiced recently can be safely divided into 8. Or 28. Washington will not stop trading with China. The White House is not going to completely stop cooperation with Beijing. Because this will threaten the United States with huge losses, first of all.

Other important topics for the US dollar are also put on pause. The fate of the new 1-trillion or 3-trillion stimulus package is still unclear. This package should have been passed a month ago, but Democrats and Republicans have not been able to agree on it. And there is no new information about this. Either the negotiations are continuing, or the parties have decided to put them on pause too.

But in some cities of the United States, mass protests and rallies again broke out under the same social movement "Black Lives Matter". We have already written about a new incident between the police and a black man in Wisconsin. Today, it became known that after the bullet wounds, Jacob Blake was alive, but at the same time his whole body was paralyzed. The town of Kenosha, where everything happened, was immediately engulfed in riots, arson and clashes with the police. Donald Trump has already responded to this event and wrote on Twitter: "The Governor should call the national guard to the state and end the problem as soon as possible." As we can see, Trump has not learned any lessons from his previous mistakes. He is still ready to disperse all the protesters with the help of the national guard, which is likely to further incite the protesters against him. Not to mention a new possible drop in ratings.

Macroeconomic statistics on Wednesday were only in the States. The report on orders for durable goods was quite strong. The main indicator grew by 11.2% in July, the indicator excluding defense and aviation orders – by 1.9%, the indicator excluding defense orders – by 9.9%, and the indicator excluding transport orders – by 2.4%. All four indicators were stronger than their forecasts. However, the US dollar did not get any special benefit from this report. Thus, we once again state the fact that traders continue to ignore most of the macroeconomic reports.

Based on the current technical picture, it is absolutely impossible to assume what will happen tomorrow or in a week. In fact, the flat is now maintained in the 200-point range. And on the 18th, we just saw an unsuccessful attempt to break out of the channel of 1.17-1.19. If we do not take into account the events of August 18-19, the euro/dollar pair continues to trade strictly between the levels of 1.1700 and 1.1900 for more than a month.

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The volatility of the euro/dollar currency pair as of August 27 is 78 points and is characterized as "average". Thus, we expect the pair to move today between the levels of 1.1748 and 1.1904. The reversal of the Heiken Ashi indicator downwards signals a new round of downward movement.

Nearest support levels:

S1 – 1.1719

S2 – 1.1597

S3 – 1.1475

Nearest resistance levels:

R1 – 1.1841

R2 – 1.1963

R3 – 1.2085

Trading recommendations:

The EUR/USD pair is trying to continue its downward movement and is located slightly below the moving average. Thus, today it is recommended to open new long positions with the goals of 1.1904 and 1.1963, only if the pair returns to the area above the moving average line. Since the price is now below the moving average, it is recommended to trade lower with the goals of 1.1748 and 1.1719. Further downward movement will be possible only after confident overcoming of these goals.

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

Comprehensive analysis of movement options for EUR/USD & GBP/USD (H4) on August 27, 2020

Minute operational scale (H4)

Current options for the development of movement for EUR/USD & GBP/USD (H4) on August 27, 2020.

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Euro vs US dollar

The development of the movement of the single European currency EUR/USD from August 27, 2020 will depend on the development and direction of the breakdown of the range:

  • resistance level of 1.1830 - the initial line SSL of the Minuette operational scale fork;
  • support level of 1.1810 - the final Shiff Line of the Minute operational scale fork.

A breakdown of the support level of 1.1810 at the final Shiff Line Minute will direct the development of the EUR/USD movement to the borders of the equilibrium zone (1.1790 - 1.1720 - 1.1655) of the Minute operational scale fork.

A breakdown of the resistance level of 1.1830 on the initial SSL Minuette line will make it possible to continue the upward movement of the single European currency to the borders of the 1/2 channel Median Line Minuette (1.1860 - 1.1890 - 1.1920) with the prospect of reaching the lower limit of ISL38.2 (1.1967) of the equilibrium zone of the Minute operational scale fork.

We look at the EUR/USD movement options from August 27, 2020 on an animated chart.

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Great Britain pound vs US dollar

The development of the movement of Her Majesty's currency GBP/USD from August 27, 2020 will be due to the development and direction of the breakdown of the boundaries of the 1/2 Median Line channel (1.3180 - 1.3210 - 1.3240) of the Minuette operational scale fork - details of working out the borders of this channel are shown on the animated chart.

If the support level of 1.3180 breaks at the lower border of the channel 1/2 Median Line Minuette, the downward movement of GBP/USD can be resumed and will be directed to the borders of the equilibrium zone (1.3105 - 1.3070 - 1.3035) of the Minuette operational scale fork and channel 1/2 Median Line (1.3060 - 1.2980 - 1.2900) of the Minute operational scale fork.

If the resistance level of 1.3240 breaks at the upper border of the 1/2 channel, the Median Line Minuette will make it relevant to update the local maximum of 1.3266 and reach the control line UTL (1.3325) of the Minuette operational scale fork.

Details of the development of the GBP/USD movement from August 27, 2020 are shown on the animated chart.

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

Formula for calculating the dollar index:

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

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

Euro - 57.6 %;

Yen - 13.6 %;

Pound - 11.9 %;

Canadian dollar - 9.1 %;

Swedish Krona - 4.2 %;

Swiss franc - 3.6 %.

The first coefficient in the formula brings the index value to 100 on the starting date - March 1973, when the main currencies began to be freely quoted relative to each other.

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

Comprehensive analysis of movement options for the main currency pairs EUR/JPY & GBP/JPY (H4) on August 27, 2020

Minute operational scale (H4)

The current situation on the interaction of the main currency pairs with each other - options for the development of the movement of EUR/JPY & GBP/JPY (H4) on August 27, 2020.

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Euro vs Japanese yen

The development of the movement of the EUR/JPY currency pair will continue from August 27, 2020, depending on the development and direction of the breakdown of the 1/2 Median Line channel boundaries (125.35 - 125.65 - 125.95) of the Minuette operational scale fork - the markings of the movement within this channel are shown in the animated chart.

Breakdown of the lower border of the channel 1/2 Median Line Minuette - support level of 125.35 - option to continue the downward movement of EUR/JPY to the borders of the channel 1/2 Median Line Minute (125.00 - 124.35 - 123.70) with the prospect of reaching the upper limit of ISL38.2 (122.70) of the equilibrium zone of the Minute operational scale fork.

If the resistance level of 125.95 breaks at the upper border of the channel 1/2 Median Line Minuette (125.95), the upward movement of EUR/JPY will be directed to the initial line SSL Minute (126.30) and the boundaries of the equilibrium zone (126.70 - 127.20 - 127.70) of the Minuette operational scale fork.

We look at the EUR/JPY movement options from August 27, 2020 on an animated chart.

analytics5f46931e163b8.jpg

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Great Britain pound vs Japanese yen

The movement of the GBP/JPY currency pair from August 27, 2020 will develop depending on the development and direction of the breakdown of the 1/2 Median Line channel boundaries (139.80 - 140.18 - 140.55) and equilibrium zones (140.18 - 140.55 - 141.00) of the Minuette operational scale fork - the markup of the development of the specified levels is shown on the animated chart.

A breakdown of the lower border of the channel 1/2 Median Line Minuette - support level of 139.80 - will direct the downward movement of GBP/JPY to the goals:

  • initial line SSL Minuette (139.00);
  • LTL Minuette control line (138.80);
  • local minimum 138.23.
  • with the prospect of reaching the boundaries of the 1/2 Median Line channel (137.20 - 136.25 - 135.30) of the Minute operational scale fork.

If the upper limit of ISL61.8 of the balance zone of the of the Minuette operational scale fork is broken - resistance level of 141.00, the upward movement of this cross-tool will continue to the goals:

  • warning line UWL38.2 Minute (141.50);
  • ultimate line FSL Minuette (142.30);
  • UTL Minuette control line (143.05).

Details of the development of the GBP/JPY movement from August 27, 2020 are shown on the animated chart.

analytics5f46933811e72.jpg

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

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